Cookie Business Plan Template

Cookie Business Plan Template

If you want to start a successful cookie business or expand your current cookie business, you need a business plan.

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

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

 

Cookie Business Plan Sample

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

I. Executive Summary

Business Overview

[Company Name], located at [insert location here] is a new, up scale cookie shop focusing on providing organic, healthy and/or premium food products. Our product line fits nicely with health trends nationwide – while people still want cookies and baked goods, they want them to be as healthy as possible.

Products Served

[Company Name]will sell several types of cookies and cookie-related products. All products will use 100% all natural and organic ingredients. Several products will have regular and low-fat varieties.

In addition to cookies, [Company Name] will serve a variety of coffees and teas.

Customer Focus

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

• 27,827 residents

• Average income of $74,700

• 58.9% married

• 49.6% in Management/Professional occupations

• Median age: 38 years

In addition to this prime adult demographic for an upscale cookie shop, there are five elementary school, a middle school, and a high school. Students from these schools will be sure to frequent [Company Name].

Management Team

[Company Name]is led by [Founder’s Name] who has been in the cookie business for 20 years. While [Founder] has never run a cookie shop himself, he has taught baking classes as the local high school for 20 years and has worked part-time at bake shops throughout the region over the past 10 years. As such [Founder] has an in-depth knowledge of the cookie business including the operations side (e.g., running day-to-day operations) and the business management side (e.g., staffing, marketing, etc.).

Success Factors

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

• There is currently no upscale cookie shop in the community we are entering. In addition, we have surveyed the local population and received extremely positive feedback saying that they explicitly want to frequent our business when launched.

• Our location is in a high-volume area with little direct traffic, and will thus be highly convenient to significant numbers of passerby’s each day

• The management team has a track record of success in the cookie business.

• The upscale baker business is a proven business and has succeeded in communities throughout the United States.

• Market trends such as healthy and organic living support our business opportunity

Financial Highlights

[Company Name] is currently seeking $370,000 to launch. Specifically, these funds will be used as follows:

• Store design/build: $250,000

• 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], located at [insert location here] is a new, upscale cookie shop focusing on providing organic, healthy and/or premium baked goods. We also sell breakfast and lunch sandwiches, salads and soups, and serve a variety of coffees and teas.

[Company Name] was founded by [Founder’s Name]. While [Founder’s Name] has been in the cookie business for some time, it was in [month, date] that he decided to launch [Company Name]. Specifically, during this time, [Founder] took a trip to Fort Lauderdale, FL. During his trip, [Founder’s Name] frequented a cookie shop that enjoyed tremendous success. After several discussions with the owner of the cookie shop, [Founder’s Name] clearly understood that a similar business would enjoy significant success in his hometown.

Specifically, the customer demographics and competitive situations in the Fort Lauderdale location and in his hometown were so similar that he knew it would work. Furthermore, after surveying the local population, this theory was proven.

[Company Name]’s History

Upon returning from Fort Lauderdale, surveying the local customer base, and finding a potential retail location, [Founder’s Name] incorporated [Company Name] as an S-Corporation on [date of incorporation].

The business is currently being run out of [Founder’s Name] home office, 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 office space and signed Letter of Intent to lease it

• Developed the company’s name, logo and website located at www…

• Created the menu

• Determined equipment and inventory requirements

• Began recruiting key employees with experience in the cookie industry

Location

[Company Name]’s overall ambience will be inviting and trendy. The interior design will be relaxing with rustic charm and an overall calm, inviting air. Planning to serve the downtown Fort Lauderdale area, [Company Name] will be tapping into a prime market. The area is both a residential and commercial neighborhood in the central region of Fort Lauderdale. The area is known for its hip restaurants and clubs, and many notable people have made their homes there. The city is notably famous for its unique vibrant commercial corridors, dining, and eccentric nightlife focused on the downtown strip.

[Company Name]’s Products

Below is [Company Name]’s initial menu. All items will be 100% natural and organic. As you can see all items are classified under the following main categories:

1. Cookies
2. Coffee
3. Tea
4. Cookie Cakes
5. Cookie Sandwiches
6. Cookie Party Trays

Store Design

[Company Name] will develop a 2,500 square foot store whose key elements will include the following:

• Kitchen area

• Ordering counter

• Self-service coffee area

• Tables to comfortably seat 15 customers

• A play/informal eating area

• Restrooms

The retail location has 20 dedicated parking spots which should suffice even in peak hours.

[Company Name] plans to be open 7 days a week, from 7AM to 8PM. As demand dictates, we may extend or reduce our hours. Likewise, as demand dictates, we may offer delivery service.

 

III. Industry Analysis

[Company Name]directly or indirectly competes with all food service providers nearby our store that offer similar products, mainly breakfast foods, breads, desserts, sandwiches and salads. Competition will come from supermarkets, restaurants, coffee shops, bakeries and other retail establishments. Direct competition will come from companies offering 100% natural, organic products like [Company Name].

Industry Statistics & Trends

According to a report, the cookie industry’s revenue was approximately $3.6 billion last year, with an estimated gross profit of 25.52%. Trends and data include:

• Health is strengthening as a food purchase mega factor, ranking third after-taste and price, and above convenience.
• Frequent shoppers tend to be less health-conscious than the rest of the population, but they are still health-conscious.
• Shoppers say they are buying more reduced-fat milk (+30%), whole-grain products (+29%), and yogurt (+19%).
• More than half of shoppers are trying to avoid trans fat, total fat and saturated fat. Frequent dairy, deli, and bakery shoppers are more concerned about trans fat than the average shopper, but less concerned about a reduced-fat claim on products.
• More than a third of shoppers say that the calorie content of foods is very important to them when they shop in the dairy, deli, and bakery departments. Frequent deli shoppers are the most concerned, with about 40% of full-service and a similar portion of self-service customers indicating they place great importance on calories.
• Frequent shoppers in the self-service deli and self-service fresh bakery are more likely to buy organic and natural foods.
• Seven in ten consumers tried to increase their consumption of whole grains last year.
• About half of frequent deli and bakery shoppers say it’s important for products in these departments to contain added nutrients, such as vitamins or fiber. Added nutrition is ranked even more important by frequent shoppers in the dairy and full-service deli departments.
• In-store bakery items such as cookies (e.g., bakeries in supermarkets) had annual sales increased to $20 billion.
• Sales of bread products have been positively affected by the demise of the low carbs trend, growth of whole grains and an increased interest in crusty bread products.
• There has been growth in the cookie sales. Declines were reported for bagels, pies and donuts.

 

IV. Customer Analysis

Demographic Profile of Target Market

[Company Name] will serve the those aged 18 to 35 in [company location] with above average income as well as those who work in [company location].

Customer Segmentation

We will primarily target the following four customer segments:

1. Soccer/stay-at-home moms: the town has a large population of stay-at-home moms who are active in the school and community. These moms often meet for lunch or coffee and [Company name] will provide a perfect place for them to congregate.
   1. We also expect mothers to take their children to [Company name] for after school and weekend snacks and meals.

2. Morning commuters: many local residents drive to neighboring towns or take the nearby train to work. [Company name] is conveniently located for these individuals to pick up coffee or a breakfast sandwich in the morning or pick up a sandwich in the evening.

3. Local office workers: approximately 5,000 individuals work in offices within a quarter mile of our location, and we expect a fair portion of these individuals to frequent us during the morning and lunch hours.

4. Students: there is a middle school and a high school in the town and the high school is within one half mile. Students from these schools will be targeted to frequent [Company Name].

 

V. Competitive Analysis

Direct & Indirect Competitors

The following retailers are located within a 2-mile radius of [Company Name], thus providing either direct or indirect competition for customers:

Joe’s Supermarket

Joe’s Supermarket is the town’s leading grocery store and has been in business for 32 years. Joe’s offers a wide array of all the products that you typically find in a grocery store.

Joe’s also has an in-house bakery. However, less than 10% of the products served in their bakery are made with organic ingredients. In addition, Joe’s offers little variety in their items. For example, they only offer 2 types of soups, 3 types of cookies, etc. [Company Name], on the other hand, offers numerous options for each product type.

Old Time Bakery

Old Time Bakery has been in business for 14 years. It offers a variety of baked goods, primarily cookies and desserts.

However, [Company Name] has several advantages over Old Time Bakery including:

• Old Time Bakery offers few products baked with organic ingredients
• Old Time Bakery does not offer sandwiches, soups or salads
• Old Time Bakery does not offer customer seating
• Old Time Bakery has little parking
• Old Time Bakery is located over one-quarter of a mile from us, and, as such, is less convenient for the office workers who work next to our store.

Freddy’s Deli

Freddy’s Deli is located four stores to the East of us. It has been in business for the past 21 years and enjoys great success, primarily due to its prime location (which we will also have).

Freddy’s primarily offers breakfast and lunch sandwiches and soups, some cookies and cakes, as well as a variety of packaged goods.

[Company Name] has several advantages over Freddy’s Deli including:

• Freddy’s Deli does not offer products, including pastries, sandwiches, soups and more, made with organic ingredients

• In our product categories, Freddy’s does not offer a wide variety of items.

While we expect that Freddy’s Deli will continue to thrive based on its location and customer relationships, we expect that more and more customers will frequent [Company Name] based on the high-quality and organic ingredients we use and product selection.

Supermarket is the town’s leading grocery store and has been in business for 32 years. Joe’s offers a wide array of all the products that you typically find in a grocery store.

Competitive Pricing

Competitive Advantage

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

• Location: [Company Name]’s location is near the center of town, giving us access to commuters going and leaving the train station, local office workers, and passerby’s going to local shops. We also offer adequate parking making it easy for customers to patronize us.

• 100% Natural/Organic/High-Quality Ingredients: getting 100% Natural/Organic baked goods, soups, sandwiches and more in the local market is challenging if not impossible. No other retailer offers direct substitutes or competition for most of our products.

• Management: Our management team has years of business and marketing experience that allows us to market and serve customers in a much more sophisticated manner than our competitors.

• Relationships: Having lived in the community for 25 years, [Founder’s Name] knows all the local leaders, newspapers and other influencers. As such, it will be relatively easy for us to build branding and awareness of our cookie shop.

 

VI. Marketing Plan

You can download our Cookie 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 organic, high-quality food items including baked goods, sandwiches, soups, salads and more.

• Offering a convenient location that offers both eat-in or take-out options.

• Providing excellent customer service

Promotions Strategy

[Company Name] expects its target market to be individuals working and/or living within a 5-mile radius of each of its store. The Company’s promotions strategy to reach these individuals includes:

Direct Mail

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

Public Relations

We will contact all local and area newspapers and television stations to tell them about the opening and unique value proposition of [Company Name].

Advertising

[Company Name] will initially advertise in local newspapers and sponsor community events in order to gain awareness.

Sampling

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

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 store, [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.

Pricing Strategy

[Company Name]’s pricing will be moderate, so customers feel they receive great value when patronizing the stores.
 

VII. Operations Plan

Functional Roles

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

Administrative Functions

• General & Administrative functions including legal, marketing, bookkeeping, etc.

• Sourcing and storing ingredients

• Hiring and training staff

Kitchen Functions

• Food preparation

• Ongoing menu creation and modification

Store/Retail Functions

• Order taking and fulfillment (for take-out and dine-in)

• Customer service

• Janitor/maintenance personnel to keep the store clean

Milestones

[Company Name] expects to achieve the following milestones in the following [] months:

 

VIII. Management Team

Management Team Members

[Company Name] is led by [Founder’s Name] who has been in the cookie business for 20 years.

While [Founder] has never run a cookie shop himself, he has taught baking classes as the local high school for 20 years. Two courses that he taught included:

1. How To Bake Wedding Cakes
   • This course was designed to give students an overall understanding of baking wedding cakes. The student were taught to bake and decorate traditional and contemporary wedding cakes, and cakes for special occasions.

2. How To Bake Bread
   • This course was designed to give students an overall understanding of baking breads, and included four units teaching students to bake the following types of breads: Levain, baguettes, pain bordelaise; baguettes, bagels, flatbread; brioche, croissants, and challah; pizza, focaccia, ciabatta.

[Founder] has also worked part-time at bake shops throughout the region over the past 10 years. Specifically, he has worked for Giana’s Bakery where he has prepared all the cookies He has also trained several others in the art of creating commercial cakes and pastries.

[Founder] graduated from the University of ABC where he majored in Communications.

Hiring Plan

[Founder] will serve as the store manager. In order to launch our store, we need to hire the following personnel:

• Wait staff (2 full-time equivalents to start)

• Short-order cook (1 to start)

• Baking staff (1 to start)

• Assistant Store Manager (will manage cash register and other administrative functions)

 

IX. Financial Plan

Revenue and Cost Drivers

[Company Name]’s revenues will come from the sale of natural and organic food products to its customers.

The Company will have dine-in, takeout, and possibly delivery systems to cater to a broad spectrum of customers in its target market.

The major costs for the company will be food production costs and salaries of the staff. In the initial years, the company’s marketing spend will be high, as it establishes itself in the market.

Capital Requirements and Use of Funds

[Company Name] is seeking a total funding of $370,000 to launch its store. The capital will be used for funding capital expenditures, manpower costs, marketing expenses and working capital.

Specifically, these funds will be used as follows:

• Store design/build: $250,000

• Working capital: $120,000 to pay for Marketing, salaries, and lease costs until [Company Name] reaches break-even

Key Assumptions & Forecasts

Key Assumptions

5 Year Annual Income Statement

5 Year Annual Balance Sheet

5 Year Annual Cash Flow Statement