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Foodservice Concept Business Plan
Alynna Melendez, Amina Ahmed, Ana Luiza Ligabo, Bethany Hogan, Spencer Mercer
HFT 2261 Restaurant and Food Service Management
Valencia College
Professor: Dr. Boris Prev
09/23/2022
Restaurant Project Part 1: Overview of the Business and Marketing Plan
Business Name and Description of Business
Frost Advisory will be an ice cream shop in Orlando, FL. The hours of operation will be from Monday to Thursday from 2:00 pm to 10:00 pm [BP1] and Friday to Sunday from 2:00 pm to 12:00 am. The business will be a Limited Liability Corporation, and its owners are Alynna Melendez, Amina Ahmed, Ana Luiza Ligabo, Bethany Hogan, and Spencer Mercer. The business is planned to be opened on June 15th, 2023.
Description of Product/Service
Frost Advisory will serve ice cream, shakes, and sundaes. The business will be an ice cream parlor. The decor will be elegant and themed, and it will be combined with high-quality flavors and ice cream products. The theme of our ice cream shop will be Florida State. Although our ice cream shop will not produce the ice cream, we will serve cones and create sundaes and shakes for our clients. We will purchase the ice cream from suppliers such as Ben & Jerrys, Haagen-Dazs, Edys, and Tillamook.
Our menu will be À la Carte Menu. Our prices will be fixed. Frost Advisory will start with 13 flavors of ice cream. The flavors will be vanilla, chocolate, strawberry, cookies and cream, salty caramel truffle, pistachio, birthday cake, mint chocolate chip, coconut, rocky road, butter pecan, coffee, and our house flavor The Sunshine State Sorbet. The Sunshine State Sorbet will be an orange and lemon flavor mix. We will offer plain cones, chocolate-dipped cones, and bowls for scoops. The toppings offered are rainbow sprinkles, chocolate sprinkles, peanut butter chips, chopped peanuts, sliced almonds, crushed Oreo, crushed butterfingers, graham cracker crumbs, chocolate drops, mini marshmallows, hot chocolate fudge, chocolate sauce, caramel sauce, marshmallow cream, and strawberry sauce. We are going to have two signature sundaes and two signature shakes. Sundaes and shakes will be exclusively developed for our shop.
Our service will be differentiated and recognizable by our customer service. Our service will be differentiated and recognizable by our customer service. Our service will start with welcoming customers and having a sincere smile that conveys positive energy and a tone of voice. The environment will be cleaned and organized. Our team will wear matching uniforms with our Ice Cream Shop logo.
The price range will be from $4.95 to $10.95, depending on whether our clients would choose a simple scoop or a sundae. One scoop will cost $4.95, a double scoop $5.95, and anything over a double scoop will be $1.00 extra per scoop. Sundaes will cost $10.95 and shakes $8.95, and an extra charge of $2.00 for our signature sundaes and shakes. Each topping will cost $0.50. The plain cones will be $1.00 extra, and the chocolate-dipped cones will be an additional $1.50. Our pricing was based on a comparative approach. The cost of ingredients must equal the predetermined food-cost percentage (Walker, 2017).
Marketing Plan
The marketing plan for this business will be mainly on social media, with some advertisements strung on billboards and radio ads throughout the local community. The billboard advertisements will have important information such as the location of the ice cream shop and popular items for sale; highlighting the Sunshine State Sorbet our signature flavor. The radio advertisements will be similar, having the location listed and fun details about the ice cream shop and its flavors and services. The main focus will be on social media. The Frost Advisory will have advertisements leading up to the grand opening of the shop, and throughout its business. It will also have events such as free birthday ice cream and 50% off of your purchase on national ice cream day. These events will be promoted and advertised throughout social media to gain a following and traction in the local community. By using social media, we can get in touch with our local community about events and promotions without having to go too out of our way to reach them!
Industry Conditions
IbisWorld (2022) states that the market size will increase by 0.5% in 2022. Measured by revenue, the industrys market size will be $5.1bn in 2022. Also, according to Modern Intelligence (2022), from 2022 to 2027, the industry is expected to register a compound annual growth rate (CAGR) of 2.87%. According to Morris (2022), the state of Florida is the fifth largest consumer of ice cream in the United States. First, to gain a competitive advantage, this industry invests in products with functional ingredients, organic herbal fillings, exotic flavors, and alcohol in the product formula. This industry is investing in low-calorie products as people are more concerned about eating healthily. Lastly, providing premium products with innovative flavors that meet consumer expectations drives market growth; hence why we must strive to do so.
Location
Frost Advisory will be located at 6550 International Dr #104, Orlando, FL 32819 in the MIC Plaza.[BP2] This location [BP3] is preferable to attract tourists and locals who come out to have a good time. Our shop will be located at the heart of International Drive whether you are coming from the south end of Irlo Bronson Highway or the north end on Oak Ridge Rd. The ice cream shop will start small at 500 square feet. [BP4] We will have only six tables with four chairs indoors and two tables with four chairs outdoors. Our ice cream shop will be themed. The theme will be Florida State. So, the ambiance will count on oranges, alligators, and the sun to harmonize the symbols of Florida State.
Customers
The customer demographics are significantly [BP5] large in the market for ice cream. The customers of an ice cream shop are very varied, regardless of schooling, age, sex, and economic class. However, the taste buds of each individual are different. Many individuals love this dessert, especially during hot weather, where this treat can cool you down. We plan as a business to reach as many families and individuals as possible, tourists or locals. We offer many different options for everyone, even those who dislike ice cream. We sell small desserts like cookies or brownies for those who still want a dessert, but not ice cream. For those who want to enjoy ice cream but like a vegan or lactose-free option, we sell ice cream specially made for that to accommodate their needs.
Competition
Our competitors are anyone who sells ice cream, sundaes, and shakes. Some ice cream shops within our direct competition in the International Drive area include Cold Stone Creamery, Haagen-Daz, and Edys Ice Cream.
SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. A companys strength is what makes the company strong. Our strength will be good quality products and services. We will have exclusive ice cream flavors and signature sundaes and shakes. Our biggest weakness will be competition from big brands and fast-food franchises, widespread in the region where we are located. Businesses such as Cold Stone Creamery, Haagen-Daz, and Edys Ice Cream are big brands in our businesss future location. Opportunities are situations that a business needs to take advantage of to position itself in the market. The Florida heat and vacation spirit will be opportunities to engage with guests homely. We will bring promotions that attract customers and tourists visiting the city. Another opportunity this ice cream shop could use is promoting vegan ice cream and ice cream for dogs. It is an excellent option for those looking for a dessert free of ingredients of animal origin and a perfect choice for those looking to treat their dogs. In addition to the vegan audience, water-based ice creams are options for people with allergies or lactose intolerance who are often unable to have ice cream because they feel unwell. Threats are situations that are beyond the entrepreneurs control. We will always be attentive to our business and clients behavior to control the threats.
Advertising and Promotion
Nowadays, social media (Instagram, Facebook, and Twitter) has a significant impact on the promotion of products. We will use social networks to promote add-ons, coupons, and new flavors of ice cream. We will post complete information about our specials, promotions, and products daily. In addition to social media output, one of the walls of the ice cream shop will have a green grass wall with a neon letter sign saying I scream, you scream, we all scream for ice cream! where our guests can take pictures and also share our location throughout social media.
We will create a loyalty program to bring customers who already visit the ice cream shop to keep coming back. For this, we will develop a punch-hole card where visits to the store can be counted. After every ten trips to Florida Advisory, the guest can receive a free two-scoop ice cream! This program will also allow guests to receive a free ice cream, sundae, or shake on their birthday or during their birthday week.
Another advertising and promotion aspect we can use as a business is the local billboards and radio advertisements to reach the local community or anyone in Orlando, Florida. As mentioned in the Marketing Plan section, many businesses utilize these to get more people closer to the company. We can advertise the grand opening, the new flavors, the signature Sunshine State Sorbet flavor, and any other products or services we might have. Advertising is the best way to get your business out there. [BP6]
Two metrics can measure the success of the marketing campaign. Those metrics are Customer Acquisition Cost and Return on Investment. Customer Acquisition Cost is the sum invested in obtaining new customers divided by the number of new customers. The Return on Investments analyzes the financial return acquired on the invested budget. We will explore those metrics to ensure that the campaigns bring results. It is necessary to be aware because digital marketing changes are constant.
References [BP7]
Ice Cream Market Size, Share Statistics. https://www.mordorintelligence.com/industry-reports/ice-cream-market.
Industry market research, reports, and Statistics. IBISWorld. (n.d.). Retrieved October 6, 2022, https://www.ibisworld.com/industry-statistics/market-size/ice-cream-stores-united-states
Ice Cream Stores in the US Market Size IBISWorld, https://www.ibisworld.com/industry-statistics/market-size/ice-cream-stores-united-states/.
Walker, John R. Restaurant Concepts, Management, and Operations, Yuzu, (8th Edition). Published by Wiley Global Education US, in 2017.
Morris, K. (2022, September 14). Here are the states that eat the most (and least) ice cream. Zippia Here Are The States That Eat The Most And Least Ice Cream Comments. Retrieved October 6, 2022 https://www.zippia.com/advice/states-love-ice-cream-most/