Executive Summary
Jimmy’s Fro-Yo is a frozen yogurt shop based in Manhattan, New York. The company is focused on providing the public with an immersive frozen yogurt experience. We provide a wide variety of tasty frozen yogurt flavors that include ingredients such as chocolate, nuts, bananas, dippings, and fruits.
We also serve non-dairy yogurt to accommodate our growing vegan customer base.
With 26 different fro-yo flavors, we've been able to establish ourselves as one of the most diverse yogurt shops in our area.
Given that our frozen yogurt shop is located within 2 miles of Times Square, we get ample foot traffic daily. This has allowed us to serve both locals and tourists all year round. We believe that our location and lack of competition will continue to result in higher profit margins YoY.
Our analysis of the market indicates that there will be a surge in competitors over the next few years. This is mainly due to the rising interest in frozen yogurt.
Since we first opened shop 6 years ago, we've generated just under $1,500,000. Our sales forecasts indicate that we'll double that over the next 4 years. We've attributed this to our ambitions to open a second shop, extend our operating hours, and invest significantly in our marketing.
We're seeking an investment of $700,000 to help us grow our business and achieve an annual growth rate of at least 7%.
Jimmy's Fro-Yo is seeking $75,000 in start-up or growth capital to fund operations, marketing, and staffing in the first 12 months.
Financial highlights:
| Metric | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Revenue | $340,000 | $490,000 | $660,000 |
| Gross margin | 58% | 58% | 58% |
| Net profit / (loss) | $26,800 | $64,700 | $108,000 |
Company Overview
Jimmy's Fro-Yo is a frozen yogurt shop founded by Jimmy Falcone, operating as a LLC. Headquartered in Manhattan, New York, USA, Jimmy's Fro-Yo was established to serve the growing demand for specialist services in this sector.
Mission: To deliver exceptional value to our customers through expertise, reliability, and a commitment to continuous improvement.
Business objectives:
| Period | Target |
|---|---|
| Year 1 | Establish brand, acquire initial client base, achieve operational break-even |
| Year 2 | Expand service offering, grow revenue by 50%, hire additional staff |
| Year 3 | Establish market position, target new geographic or demographic segments |
Jimmy's Fro-Yo was founded by Jim Black in 2013. The company is registered as an LLC in the state of New York.
Jim has a background in the hospitality industry, having worked as both a waiter and hotel manager. This set a solid foundation for him as he learned a great deal about how to interact with customers and manage members of staff.
Jimmy's Fro-Yo is largely popular in Manhattan. Having been nominated for the coveted Restaurant and Bar Award, our yogurt shop has cemented itself as a leader in the industry, beyond the borders of the United States.
Our yogurt shop business has also been mentioned in over 10 publications.
Market & Customer Analysis
According to Data Bridge Market Research, the frozen yogurt market is worth around $8 billion. Data Bridge also forecasts that the industry will reach at least $10 billion over the next 4 years.
This indicates that the market is in a state of growth. Our team has a similar outlook on the growth of the market. We've experienced the consistent growth of the frozen yogurt shop market firsthand. Although our main competitors are few and far between, we've continued to invest significantly in our marketing to remain relevant in the Manhattan Fro-Yo market.
Various trends have emerged in the industry. There's a rising increase in the demand for organically produced frozen yogurt. This in combination with vegan frozen yogurt has become increasingly popular. By offering these frozen yogurt products we've established ourselves as a forward-thinking company.
Last but not least, having a clear understanding of who our target customers are has allowed us to serve their needs more effectively. Our sales and marketing team has prioritized increasing customer loyalty to retain our place in the market.
We’ll go into more detail about our target customers in the next part of our document.
Customer analysis:
As Jimmy’s Fro-Yo has grown, we've tapped into various customer segments.
The area of Manhattan and its surrounding areas has a vast number of families, students, and singles who are interested in experiencing new food offerings. Manhattan is especially vibrant and has many establishments that complement our frozen yogurt shop.
Movie theatres, restaurants, malls, and parks are in abundance in Manhattan. Our close proximity to Times Square gives us access to a wide range of customers in different age groups. For this reason, we've positioned ourselves as a family-oriented establishment.
This has allowed us to attract children as young as 3 years old to adults over 80 years of age. This broad customer segment is either reliant on their parents/guardians or earns at least $7,000 per annum.
Given our expansive customer segmentation, we must offer a wider range of frozen yogurt flavors than our competitors. Many of our older customers demand frozen yogurts that have no preservatives and low sugar levels. In contrast; children consume almost 75% of our chocolate-flavored inventory.
A comprehensive knowledge of our customers’ preferences has resulted in them becoming increasingly loyal. Our ongoing analysis will enable us to attract and retain our target customers.
Once you've formulated a profile of your ideal customers, it's time to delve into the methods you'll be implementing to promote your business and meet your sales targets.
Competitor analysis:
| Competitor | Strengths | Weaknesses |
|---|---|---|
| Pinkberry | Established brand, wide reach | Higher price point, less personalised |
| Menchie's Frozen Yogurt | Strong marketing, national presence | Generic offering, less specialist focus |
| TCBY | Competitive pricing | Lower service quality, limited expertise |
Frozen Yogurt Shop's competitive edge: Specialist expertise, personalised service, and a clear focus on the underserved segment of the market set us apart from the established players listed above.
SWOT analysis:
| Positive | Negative | |
|---|---|---|
| Internal | Strengths: Specialist expertise; experienced founder; strong client relationships; differentiated positioning | Weaknesses: Limited brand recognition as a new entrant; single location; reliance on founder capacity in early years |
| External | Opportunities: Growing market demand; underserved niche segments; digital marketing reach; referral network growth | Threats: Established competitors with greater resources; economic downturn reducing discretionary spend; regulatory changes |
Sales & Marketing Plan
We've gone through extensive measures to develop and execute a set of sales strategies that have helped us achieve our sales goals.
Since we introduced loyalty cards we've experienced a 13% increase in sales. This in combination with our monthly discounts has improved our sales performance significantly. Ultimately, this sales strategy has improved our customer retention.
Manhattan is a fairly affluent area. According to CBS News, the collective wealth of Manhattans exceeds $3 trillion. In addition, 1 in every 24 New York-based residents has millionaire status. Manhattan is also one of North America’s most coveted tourist attractions.
These insights have had an impact on our approach to pricing. We're able to charge relatively high prices for Jimmy’s Fro-Yo since our target market is made up of individuals who have disposable incomes or at least come from wealthy backgrounds.
By keeping track of the results of our sales and marketing results we were able to establish the effectiveness of our strategies. Thus helping us make any necessary improvements and alterations.
Let's hone in on the marketing strategies we've made use of to complement our sales plan.
Additional marketing notes:
Our marketing strategy is heavily based on social media marketing. We've experienced an increase of 12% in sales ever since we invested in social media ads. Currently, our digital ad spend is $72,000 per annum, meaning we're able to reach an audience of at least $4,000,000 YoY.
An extension of our social media marketing strategy involves building strategic relationships with brand-fit influencers who will help us become an authority in the industry. These influencers are likely to already be followed by our target customers.
We've enlisted food influencers such as Caitlin Greene (@starinfinitefood), Jonathan Cheban (@foodgod), and Ella Mills (@deliciousyella). All of which have a combined following of over 1 million followers across all platforms.
Jimmy's Fro-Yo leverages its digital media following to host engaging events monthly. This not only helps us spread the word about our business but also results in sales.
We discarded our traditional marketing efforts 4 years ago. For starters, we realized that running ads in the New York Times was costing us almost 74% more than running a social media ad. Also, our stellar reputation led to a significant amount of word-of-mouth marketing in any case.
Operating Plan
Personnel Position Duty Ryan May Cashier
- Manning the cash register to process sales
- Providing general customer service where necessary Judy Price Supervisor
- Scheduling shifts and overlooking staff
- Dealing with gross customer complaints Harry Stones Waiter
- Serving our frozen yogurt products whilst maintaining health and safety standards Rose Franklin Housekeeper
- Ensuring our frozen yogurt shop is clean at all times
- Working closely with the inventory manager to ensure we have an adequate amount of cleaning products Joyce Bryant Store Manager Managing all aspects of our business are running smoothly: from inventory management, customer service, banking, and daily operations Eugene Levy Kitchen Manager
- Preparing our frozen yogurt products
- Overseeing the other kitchen staff
- Working closely with the housekeeper to guarantee the kitchen area is clean
Management Team
We have a highly competent and experienced management team that has a distinct interest in the frozen yogurt industry. This collective passion for our business has not only allowed us to meet our goals but also motivated our entire team to excel in their respective roles.
CEO, Jim Black
Jimmy's Fro-Yo was founded by Jim Black, and he currently serves as the company's CEO. Jim's lack of a tertiary qualification hasn't hindered him when it comes to building a budding frozen yogurt business. His dedication and work ethic have allowed him to become one of the most revered individuals around Times Square.
CFO, Connor Dreary
Connor is our trusted bookkeeper and is the longest-serving member of the business' management team besides Jim Black. He has over 25 years of experience in the financial sector and holds a qualification at Colorado State University. His main responsibilities include drafting our budgets, sales forecasts, and operating expenses.
HR Manager, Lucy Greene
Lucy Greene is a well-established human resources manager who was nominated for a Global Recognition Award in 2016. This recognition has made her a coveted professional in her field. Her main responsibilities involve the recruitment and training of staff. She's also responsible for addressing any disciplinary actions whenever necessary.
CMO, Gil Summer
Our head of marketing is Gil Summer, a communications graduate from Howard University. She’s proficient at building a powerful brand identity and building social media engagement. She's also talented at graphics design which makes her a full-stack marketing manager.
Financial Plan
Projected Profit or Loss Statement
Year 1 Year 2 Year 3 Sales $90,000 $170,000 $300,000 Direct Cost of Sales $20,500 $30,000 $82,000 Production Payroll $0 $0 $0 Other $0 $0 $0 Total Cost of Sales $20,500 $30,000 $82,000 Gross Margin $69,500 $140,000 $218,000 Gross Margin % 77% 82% 73% Operating Expenses
Sales and Marketing Expenses
Sales and Marketing Payroll $20,000 $40,000 $40,000 Advertising/Promotion $800 $1,000 $1,000 Travel $0 $0 $0 Miscellaneous $500 $500 $500 Total Sales and Marketing Expenses $21,300 $41,500 $41,500 General and Administrative Expenses
General and Administrative Payroll $20,000 $40,250 $100,250 Sales and Marketing and Other Expenses $0 $0 $0 Depreciation $1,000 $1,000 $1,000 Dues and Subscriptions $200 $200 $200 Professional Fees $300 $300 $300 Rent $2,000 $2,000 $2,000 Software Purchases $0 $15,000 $0 Insurance $2,000 $2,000 $2,000 Telephone and Internet Access $2,000 $2,000 $2,000 Utilities $400 $400 $400 Miscellaneous $0 $0 $0 Payroll Taxes $500 $1,200 $3,000 Other General and Administrative Expenses $0 $0 $0 Total General and Administrative Expenses $28,400 $64,350 $111,150 Other Expenses:
Other Payroll $0 $0 $0 Consultants $0 $0 $0 Contract/Consultants $0 $0 $0 Total Other Expenses $0 $0 $0 Total Operating Expenses $28,400 $64,350 $111,150 Profit Before Interest and Taxes $19,800 $102,840 $225,410 EBITDA $19,800 $103,860 $226,430 Interest Expense $800 $3,632 $2,957 Taxes Incurred $0 $24,802 $56,540 Net Profit $19,000 $34,150 $65,350 Net Profit/Sales 21% 20% 22%
Projected Cash Flow Statement Cash Received Year 1 Year 2 Year 3 Cash from Operations
Cash Sales $90,000 $170,000 $300,000 Cash from Receivables $0 $0 $0 Subtotal Cash from Operations $90,000 $170,000 $300,00 Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0 New Current Borrowing $20,000 $0 $0 New Other Liabilities (interest-free) $0 $0 $0 New Long-term Liabilities $0 $0 $0 Sales of Other Current Assets $0 $0 $0 Sales of Long-term Assets $0 $0 $0 New Investment Received $0 $0 $0 Subtotal Cash Received $110,000 $170,000 $300,000 Expenditures
Expenditures from Operations
Subtotal Spent on Operations $48,900 $94,350 $111,150 Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $800 $0 $0 Principal Repayment of Current Borrowing $10,000 $10,000 $0 Other Liabilities Principal Repayment $0 $0 $0 Long-term Liabilities Principal Repayment $0 $0 $0 Purchase Other Current Assets $0 $0 $0 Purchase Long-term Assets $0 $0 $0 Dividends $0 $0 $0 Subtotal Cash Spent $59,700 $104,350 $193,150 Net Cash Flow $50,300 $65,650 $106,850 Cash Balance $19,000 $34,150 $65,350 Projected Balance Sheet Assets Year 1 Year 2 Year 3 Current Assets
Cash $90,000 $170,000 $300,000 Accounts Receivable $0 $0 $0 Other Current Assets $0 $0 $0 Total Current Assets $90,000 $170,000 $300,000 Long-term Assets $10,000 $9,000 $8,000 Accumulated Depreciation $1,000 $1,000 $1,000 Total Long-term Assets ($1,000) ($1,000) ($1,000) Total Assets $100,000 $179,000 $308,00 Liabilities and Capital
Current Liabilities
Accounts Payable $0 $0 $0 Current Borrowing $20,000 $10,000 $0 Other Current Liabilities $0 $0 $0 Subtotal Current Liabilities $20,000 $10,000 $0 Long-term Liabilities $0 $0 $0 Total Liabilities $20,000 $10,000 $0 Paid-in Capital $30,000 $30,000 $30,000 Retained Earnings ($20,000) ($30,000) $41,000 Earnings ($12,000) $44,000 $160,000 Total Capital ($2,000) $44,000 $231,000 Total Liabilities and Capital $18,000 $54,000 $231,000 Net Worth $80,000 $169,00 $308,000
Wrapping up the Frozen Yogurt Shop Business Plan Yogurt-a put in the hard work if you have any hopes of becoming a success in the frozen yogurt shop industry.
However, you'll still need a tip-top business plan in place to accelerate the growth of your establishment. Writing a business plan can be rather difficult if you don't have the correct structure in place.
You don't have that issue, though. We've covered all the steps needed to get the most out of your business plan. However, if you'd like some one-on-one help drafting your document, our talented team is available to get you ahead.
3-year profit & loss projection:
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Revenue | $340,000 | $490,000 | $660,000 |
| Product and food costs | $142,800 | $205,800 | $277,200 |
| Gross profit | $197,200 | $284,200 | $382,800 |
| Gross margin | 58% | 58% | 58% |
| Salaries and wages | $74,800 | $107,800 | $145,200 |
| Marketing and advertising | $27,200 | $39,200 | $52,800 |
| Rent and utilities | $48,000 | $48,000 | $50,400 |
| Other operating costs | $20,400 | $24,500 | $26,400 |
| Total operating expenses | $170,400 | $219,500 | $274,800 |
| Net profit / (loss) | $26,800 | $64,700 | $108,000 |
Break-even analysis:
- Estimated monthly fixed costs: $14,200
- Monthly revenue required to break even: $24,500
- Break-even is projected to be reached within the first 12–18 months of trading.