Sandwich Shop Business Plan Template
If you want to start a Sandwich Shop business or expand your current Sandwich Shop, you need a business plan.
The following Sandwich Shop business plan template gives you the key elements to include in a winning Sandwich Shop business plan.
Sandwich Shop Business Plan Example
I. Executive Summary
Business Overview
[Company Name] located at [insert location here] is a new sandwich shop that provides healthy sandwiches, paninis and prepared salads. The sandwich menu includes cold subs, hot pressed sandwiches and modern interpretations of classics. Other offerings include homemade salads, such as Egg Salad, Chicken Salad and Tuna Salad.
The shop will bake all of its bread on site, daily and all sandwich toppings will be organic and sourced locally.
Products Served
Below is [Company Name]’s initial menu categories:
- Cold Subs
- Hot Sandwiches
- Daily specials
- Homemade salads
- Side Items- Chips, fries and pasta salad
Customer Focus
[Company Name] will primarily serve the residents who live within a 10-mile radius of our sandwich shop and workers within a one mile radius. The demographics of these customers are as follows:
- 71,362 residents
- 1,420 workers (who do not live the neighborhood)
- Average income of $65,000
- 52% married
- 48% in Mgt./Professional occupations
- Median age: 33 years
Management Team
[Company Name] is led by [Founder’s name] who has been in the food service business for [x] years. In her tenure in the food industry, she acquired an in-depth knowledge of restaurant operations and marketing. [Founder] graduated from the University of ABC where she majored in Business and received a certificate in food service management.
Success Factors
[Company Name] is uniquely qualified to succeed due to the following reasons:
- There are currently no sandwich shops in the community that offer the quality and selection that we do. 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 traffic 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 restaurant business.
- The sandwich shop business has proven to be a successful business in the United States.
Financial Highlights
[Company Name] is seeking a total funding of $230,000 to launch its shop. The capital will be used for the following:
- Restaurant design/build and equipment: $100,000
- Working capital: $130,000 to pay for Marketing, salaries, and lease costs until [Company Name] reaches break-even
Topline 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 sandwich shop that provides healthy sandwiches, paninis and prepared salads. The sandwich menu includes cold subs, hot pressed sandwiches and modern interpretations of classics. Other offerings include homemade salads, such as Egg Salad, Chicken Salad and Tuna Salad.
The shop will bake all of its bread on site, daily and all sandwich toppings will be organic and sourced locally.
[Company Name]’s History
[Company Name] was founded by [Founder’s Name]. While [Founder’s Name] has been in the foodservice business for 8 years, it was in [month, date] that he decided to launch his/her own sandwich shop. The founder was inspired to open the shop when he discovered that a high percentage of people would choose sandwiches over any other lunch item and in [Location], there is only one shop that specializes in sandwiches, so he/she felt like it was the perfect market opportunity.
Since incorporation, the company has achieved the following milestones:
- Developed the company’s name, logo and website
- Created the menu
- Determined equipment and inventory requirements
- Began building relationships with farmers and suppliers
[Company Name]’s Products/Services
Below is [Company Name]’s initial menu categories:
- Cold Subs
- Hot Sandwiches
- Daily specials
- Homemade salads
- Side Items- Chips, fries and pasta salad
III. Industry Analysis
The Sandwich shop industry has performed very well over the past few years and is projected to continue to grow at an annualized rate of 3.4% over the next five years. The Sandwich Shop ndustry will continue to benefit as the economy improves, employment stays strong and consumers begin to spend money on luxuries, such as restaurant dining, more often. During this period, consumer spending is expected to increase at an annualized rate of 1.8%. Additionally, demand for sandwich and sub shops will increase as companies expand their healthy menu options. Aggressive international growth will also reinvigorate major franchises’ overall revenue.
Key industry drivers include:
– Consumer spending- When consumer spending is high, consumers will be more likely to spend money on dining out at sandwich and sub shops.
– Healthy eating index-This is a comparative advantage for healthier sandwich and sub store franchises. Consumers are more aware of the health issues associated with fatty foods and are increasingly going out of their way to avoid them.
– Consumer Confidence Index- Changes in consumer confidence have a significant effect on household expenditure on discretionary items, including purchases made at sandwich shops.
IV. Customer Analysis
Demographic Profile of Target Market
[Company Name] will serve the residents of [company location] and the immediate surrounding areas as well as those who work in [company location].
The precise demographics of the town in which our retail location resides is as follows:
| Wilmette | Winnetka | |
|---|---|---|
| Total Population | 26,097 | 10,725 |
| Square Miles | 6.89 | 3.96 |
| Population Density | 3,789.20 | 2,710.80 |
| Population Male | 48.04% | 48.84% |
| Population Female | 51.96% | 51.16% |
| Target Population by Age Group | ||
| Age 18-24 | 3.68% | 3.52% |
| Age 25-34 | 5.22% | 4.50% |
| Age 35-44 | 13.80% | 13.91% |
| Age 45-54 | 18.09% | 18.22% |
| Target Population by Income | ||
| Income $50,000 to $74,999 | 11.16% | 6.00% |
| Income $75,000 to $99,999 | 10.91% | 4.41% |
| Income $100,000 to $124,999 | 9.07% | 6.40% |
| Income $125,000 to $149,999 | 9.95% | 8.02% |
| Income $150,000 to $199,999 | 12.20% | 11.11% |
| Income $200,000 and Over | 32.48% | 54.99% |
Customer Segmentation
We will primarily target the following customer segments:
- Young adults: The sandwich shop will attract young adults looking for a spot to meet up and hang out with their friends.
- Local workers: Approximately 2,300 individuals work within a quarter mile of our location and we expect a fair portion of these individuals to frequent us for lunch.
- Shoppers: With our location on a traditional main street, shoppers will visit when they tire from walking or are in need of lunch while shopping.
- Families: Our shop will be a family-friendly spot that offers a kid’s menu. This is perfect for family lunch outings.
V. Competitive Analysis
Direct & Indirect Competitors
Sammy’s Subs
Sammy’s Subs is a franchise restaurant chain that specializes in hot sub sandwiches. The company was founded in 1994 and has since grown to over 1,000 locations in 35 states. The menu features classic sub selections like meatball, Italian, Turkey club and ham and cheese. Sides include macaroni salad, potato salad, chips and fries.
Beach Subs
Beach Subs is a submarine sandwich franchise that was founded in 1956. Beach Subs began franchising in 1987 and now has a presence in 33 states. Beach Subs differentiates itself from other restaurants by offering higher-quality ingredients at a slightly higher price point. Their selections include organic and farm to table ingredients and their meats contain no preservatives or hormones. In addition, the company offers cold-pressed juices, made onsite.
Stacked
Stacked is a franchise sandwich shop that was founded in 1983. Stacked’s menu has a focus on simplicity, with only a limited number of meats, cheeses and breads for customers to select. The company’s philosophy is quick service and basic ingredients. All sandwich ingredients are locally sourced and breads are made in-house, daily. Stacked has been one of the fastest-growing chains in terms of store numbers and total network sales in the United States over the past five years.
Competitive Pricing
| 6 inch sub | Classic Sandwich | Hot Sandwich | |
|---|---|---|---|
| Sammy's | $6.99 | $4.99 | $7.99 |
| Beach Subs | $4.49 | $4.99 | $6.99 |
| Stacked | $5.99 | $4.99 | $7.49 |
Competitive Advantage
[Company Name] enjoys several advantages over its competitors. These advantages include:
- Variety: [Company Name] offers both classic and unique sandwich options, as well as homemade salads and daily specials, which will attract a wide audience.
- High Quality Ingredients: [Company Name] will work with the best local farmers for its meat and vegetables and take special care to help the community.
- 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 15 years, [Founder’s Name] knows all of the local leaders, newspapers and other influencers. As such, it will be relatively easy for us to build branding and awareness of our sandwich shop.
VI. Marketing Plan
The [Company Name] Brand
The [Company Name] brand will focus on the Company’s unique value proposition:
- Offering a variety of good quality sandwiches
- Homemade selections including bread and salads
- 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 residents and individuals working within a 10-mile radius and living within a one mile radius of its shop. 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 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, radio stations, and sponsor community events in order to gain brand awareness.
Sampling
[Company Name] employees will initially provide sandwich samples to passersbys to enable them to taste the quality of our flavors.
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 sandwich 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.
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:
Service Functions
- Food preparation
- Order taking and fulfillment (for take-out and eat-in)
- Customer service
- Maintenance personnel
Administrative Functions
- General & administrative functions including legal, marketing, bookkeeping, etc.
- Product procurement
- Hiring and training staff
Milestones
[Company name]’s long term goal is to become the number one sandwich shop in the [city]. We seek to the standard by which other providers are judged.
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:
| Date | Milestone |
|---|---|
| [Date 1] | Finalize lease agreement |
| [Date 2] | Design and build out [Company Name] |
| [Date 3] | Hire and train initial staff |
| [Date 4] | Launch [Company Name] store |
| [Date 5] | Reach break-even |
VIII. Management Team
Management Team Members
[Company Name] is led by [Founder’s name] who has been in the food service business for [x] years. In her tenure in the food industry, she acquired an in-depth knowledge of the ins and outs of opening a restaurant before she started [Company name].[Founder] graduated from the University of ABC where she majored in Business and received a certificate in food service management.
Hiring Plan
[Founder] will serve as [Company name]’s manager. In order to launch the sandwich shop, we need to hire the following:
- Kitchen Staff (3)
- Cashier (3)
- Manager (1)
IX. Financial Plan
Revenue and Cost Drivers
[Company Name]’s revenues will come from its food sales. The Company will have eat-in and takeout 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 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 $230,000 to launch its shop. The capital will be used for funding capital expenditures, salaries, marketing expenses and working capital. Specifically, these funds will be used as follows:
- Restaurant design/build and equipment: $100,000
- Working capital: $130,000 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:
| Number of customers per day | Per location |
|---|---|
| FY 1 | 100 |
| FY 2 | 120 |
| FY 3 | 140 |
| FY 4 | 165 |
| FY 5 | 190 |
| Annual Lease ( per location) | $60,000 |
| Yearly Lease Increase % | 2.50% |
5 Year Annual Income Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
| Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
| Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
| Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
| Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
| Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
| Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
| Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
| EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
| EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
| Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
| PRETAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
| Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
| Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
| NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
| Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
5 Year Annual Balance Sheet
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
| Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
| Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
| Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
| Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
| TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
| Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
| Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
5 Year Annual Cash Flow Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | |||||
| Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
| Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
| Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
| CASH FLOW FROM INVESTMENTS | |||||
| Investment | ($246,450) | $0 | $0 | $0 | $0 |
| Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
| CASH FLOW FROM FINANCING | |||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 |
| Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| SUMMARY | |||||
| Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
| Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
| Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
