Butcher Shop Business Plan Template

Butcher Shop Business Plan Template

If you want to start a butcher shop or expand your current butcher shop, you need a business plan.

The following Butcher Shop business plan template gives you the key elements to include in a winning Butcher Shop business plan.

You can download our butcher shop business plan template (including a full, customizable financial model) to your computer here.
 

Sample Butcher Shop Business Plan Template

Below is a butcher shop business plan example with each of the key sections to help you write a butcher shop business plan for your own company.

I. Executive Summary

Business Overview

[Company Name] is a new butcher shop located in [insert location here]. Our mission is to provide local residents with the best high-quality cuts for a moderate price. More than ever before, people are demanding better quality meat that isn’t significantly processed. [Company Name] will offer many options that fit the bill, including steak, ham, and poultry.

Products Served

[Company Name] will sell several types of meats. Some popular options available on our initial menu include:

• Steak
• Poultry
• Beef
• Ham
• Deli meats
• Sausage

Though not on the initial menu, [Company Name] may offer seasonings and rubs for sale in the future.

Customer Focus

[Company Name] will primarily serve the residents who live within a 5-mile radius of the shop. The demographics of these customers are as follows:

• 42,547 residents
• 10,582 office workers
• Average income of $52,000
• 45% married
• 52.4% in professional occupations
• Median age of 37 years

The demographics show that [insert location here] is a town of hard-working middle-class folks in need of high-quality, reasonably priced meats for their meals. To accommodate this demographic, we will offer family-sized packages and deals and keep all of our products at a moderate price.

Management Team

[Company Name] is led by [Founder’s Name], who has been in the butcher business for [X] years. Though [Founder’s Name] has never run a butcher shop himself, he has worked for butcher shops for [X] years and spent most of the time as a trainer and manager. As such, [Founder’s Name] has an in-depth knowledge of the butcher business, including the operations (e.g., running day-to-day operations) and management (e.g., staffing, marketing, etc.) sides of the industry.

Success Factors

[Company Name] is uniquely qualified to succeed due to the following reasons:

• There is currently no butcher shop in the neighborhood we are entering. In addition, we have surveyed the local population and received highly positive feedback saying that they explicitly want to frequent our business when it launches.
• Our location is in a high-volume area and will thus be highly convenient to a significant number of passersby each day.
• The management team has a track record of success in the butcher business.
• Butcher shops are proven businesses and have succeeded in communities throughout the United States.
• Meat is something that almost everyone consumes and is always in demand.

Financial Highlights

[Company Name] is currently seeking a total funding of $420,000 to launch. Specifically, these funds will be used as follows:

• Shop design/build: $200,000
• Equipment, software, and supplies: $100,000
• Working capital: $120,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even

Top line projections over the next five years are as follows:

 

II. Company Overview

Who is [Company Name]?

[Company Name] is a new butcher shop located in [insert location here] that sells high-quality meats to local residents.

[Company Name] was founded by [Founder’s Name]. While [Founder’s Name] has been in the butcher shop business for some time, it was in [month, date] that he decided to launch [Company Name].

While driving around [insert location here] one day, he realized there was a lack of quality butcher shops in the [insert specific neighborhood] area. He recognized this as an exciting business opportunity that would serve the local residents. Before incorporating his business, he surveyed nearby residents and workers and found that many would be excited about the opportunity to frequent a neighborhood butcher shop, especially if it focused on quality and moderate pricing.

[Company Name]’s History

After getting the results of the survey, [Founder’s Name] found a potential retail location and incorporated [Company Name] as an S-Corporation on [date of incorporation].

The business is currently being run from [Founder’s Name]’s home, but once the lease on [Company Name]’s retail location is finalized, all operations will be run from there.

Since incorporation, the company has achieved the following milestones:

• Found a retail location and signed a Letter of Intent to lease it
• Developed the company’s name, logo, and website located at [website]
• Created the initial menu
• Determined equipment and inventory requirements
• Began recruiting key employees with experience in the butcher industry

[Company Name]’s Products/Services

Below is a list of [Company Name] products that will be on the initial menu:

• Steak
• Chicken
• Beef
• Ham
• Roast Beef
• Deli meats
• Sausage

In the future, [Company Name] will also create unique seasonings and rubs for sale as well.

 

III. Industry Analysis

The butcher industry has done well over the past few decades and is expected to see continued success. Meat is a staple of the American diet, and there is no expectation that this will change anytime soon. According to Grand View Research, the meat market is expected to expand at an annual growth of 3.5% over the next five years, showing that there is still a strong demand for meat.

Furthermore, many Americans are nostalgic for neighborhood butcher shops. [Company Name] will provide this ambiance to every customer that walks in. No matter where they are from, each customer will feel like they are part of the neighborhood.

The only challenge to butcher shops is the increasing popularity of plant-based diets. As the world looks for ways to be healthier and more environmentally friendly, consumers are looking for food items that have a lesser impact on the Earth. To respond to this challenge, [Company Name] will provide plant-based meats in the future, but they are not on the menu yet.

 

IV. Customer Analysis

Demographic Profile of Target Market

[Company Name] will serve the community residents of [company location] and its surrounding areas.

The local community of [insert location here] is full of hardworking families looking for affordable meat options for their meals. Currently, most meat is bought at chain grocery stores which rarely offer quality selections. [Company Name] aims to be the friendly neighborhood butcher that can provide local families with a better quality selection of choice cuts.

Customer Segmentation

We will primarily target the following customer segments:

• Local workers: Thousands of individuals work within a half-mile radius of our location. Many of them will be looking for a quick stop to pick up meat for their dinner after work. [Company Name] can provide them with quick and friendly service that saves them from the hassle of going to the grocery store.
• Families: Meat is a staple food for many American families. Thousands of families live in the neighborhoods within a 5-mile radius of our shop, and we expect many of them to frequent us for all their meat needs.
• Middle-class residents: [Company Name] will market itself as the neighborhood butcher for middle-class residents. We offer affordable prices and all the staple meats that middle-class Americans enjoy for their meals.

 

V. Competitive Analysis

Direct & Indirect Competitors

The following shops are located within a 5-mile radius of [Company Name], thus providing either direct or indirect competition for customers:

Meyer’s Grocery
Meyer’s is a regional grocery store chain that provides residents with all their essential foods: meat, eggs, dairy, bread, etc. Established in 1979, this grocery chain has dominated the region, offering fair prices, a great selection of products, and an award-winning loyalty program. Furthermore, they are known for their great selection of cut meats, which keeps families coming back week after week.

Though we expect Meyer’s to continue to thrive, the reputation for its high-quality meats has been diminishing over the years. Local residents have noticed that the meat quality has changed, but the prices have continued to rise. Many families are looking for another location that offers great quality and variety of cuts. [Company Name] will be able to supply this demand.

Lester’s Butcher And Deli
Lester’s Butcher And Deli established itself in downtown [insert location here] in 2002 and has been a popular butcher for residents ever since. It offers a large selection of deli meats and cheeses for sale and has a small sandwich counter and sitting area that is open during lunch hours.

While Lester’s will continue to thrive, its location makes it inconvenient for residents to reach it. Families who just want to make a quick trip to get some meat each week must commute and find parking to reach Lester’s. [Company Name] is a much more convenient spot for the residents in the surrounding area.

Raleigh Hills Butcher Shop
Raleigh Hills Butcher Shop is a local butcher shop established in 1972. It offers a variety of high-quality meats, including beef, lamb, pork, and chicken. It specializes in quality and neighborhood convenience.

Though popular for its quality, Raleigh Hills Butcher Shop is often criticized for its high prices. It markets itself as a higher-end butcher shop that deters local middle-class families. [Company Name] will provide the same quality cuts that are much more affordable for weekly purchases.

Competitive Advantage

[Company Name] enjoys several advantages over its competitors. These advantages include the following:

• Ambiance: From day one, [Company Name] will offer a friendly and welcoming atmosphere that will make customers feel that they are part of the neighborhood (no matter where they are from). This will feel far more inviting than the corporate feel of local grocery chains.
• Affordability: [Company Name] will cater to working-class residents and therefore price our products accordingly. All customers will receive high-quality meats for an affordable price.
• Location: [Company Name] is located in [specific neighborhood], which makes it a convenient option for nearby residents. Local residents no longer have to commute downtown or deal with stress at the grocery store to purchase the best quality cuts.

 

VI. Marketing Plan

You can download our butcher shop business plan template (including a full, customizable financial model) to your computer here.

The [Company Name] Brand

The [Company Name] brand will focus on the Company’s unique value proposition:

• Offering a variety of high-quality meats and cuts
• Offering a convenient location that is easy to walk to from neighborhoods
• Providing excellent customer service
• Providing a welcoming environment

Promotions Strategy

[Company Name] expects its target market to be residents living within a 5-mile radius of the shop. The company’s promotions strategy to reach these individuals includes:

Direct Mail
[Company Name] will blanket neighborhoods and offices surrounding its locations with direct mail pieces. These pieces will provide general information on [Company Name], offer discounts, and/or provide other enticements for people to frequent the shop.

Public Relations
We will contact all local and area newspapers, radio stations, and television stations and send them a press release describing the opening and unique value proposition of [Company Name]. We will also invite local food bloggers/vloggers to promote our shop.

Advertising
[Company Name] will initially advertise in local newspapers and radio stations and sponsor community events to gain brand awareness.

Ongoing Customer Communications
[Company Name] will maintain a website and publish a monthly email newsletter to tell customers about new events, products, and more.

Pre-Opening Events
Before opening the butcher shop, [Company Name] will organize pre-opening events designed for prospective customers, local merchants, and press contacts. These events will create buzz and awareness for [Company Name] in the area.

Sampling
[Company Name] employees will initially give free food samples to passersby to enable them to taste the quality of our products and learn about us.

Social Media
Many promotional campaigns will be through social media, where we can customize the audience that will be able to see it. We will also maintain a solid social media presence to further engage with customers and get suggestions for how we can improve.

Pricing Strategy

Since [Company Name] will be marketing towards middle-class residents, [Company Name]’s pricing will be moderate, so customers feel they receive great value when frequenting the shop. We will aim to stay competitive with other local butcher shops and grocery stores.

 

VII. Operations Plan

Functional Roles

In order to execute [Company Name]’s business model, the Company needs to perform many functions, including the following:

Administrative Functions

• Marketing functions
• Bookkeeping functions
• Hiring and training staff
• Sourcing and storing meat and ingredients
• Customer service/payment processing functions

Butcher/Retail Functions

• Meat cutting, slicing, and preparation
• Ongoing menu creation and modification
• Customer service
• Order-taking and payment processing
• Restocking inventory
• Maintenance personnel

Milestones

The following are a series of steps that lead to our vision of long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:

 

VIII. Management Team

Management Team Members

[Company Name] is led by [Founder’s Name], who has been in the butcher shop business for [X] years. In his tenure in the butcher industry, he has acquired an in-depth knowledge of the ins and outs of running a butcher shop, including the operations and marketing sides of the business. He has trained dozens of employees and served as a manager for [X] years. Additionally, [Founder’s Name] recently graduated from [School], where he received a degree in Business and a certificate in Food Service Management.

Hiring Plan

[Founder’s Name] will serve as [Company Name]’s manager. In order to launch the butcher shop, we need to hire the following:

• Butchers (2 to start)
• Assistant Manager (1 to start)

 

IX. Financial Plan

Revenue and Cost Drivers

[Company Name]’s revenues will come from its food sales. The Company will have a large selection of high-quality meat offerings to cater to a broad spectrum of customers in its target market.

The major costs for the company will be food costs, staff salaries, and rent in a prime location. In the initial years, the company’s marketing spending will be high as it establishes itself in the market.

Capital Requirements and Use of Funds

[Company Name] is currently seeking $420,000 to launch. The capital will be used for funding capital expenditures, salaries, marketing expenses, and working capital. Specifically, these funds will be used as follows:

• Store design/build: $200,000
• Equipment, software, and supplies: $100,000
• Working capital: $120,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even

Key Assumptions

The following table reflects the key revenue and cost assumptions made in the financial model:

 
5 Year Annual Income Statement

 
5 Year Annual Balance Sheet

 
5 Year Annual Cash Flow Statement