Smoothie Barcelona Smoothie Juice Bar Business Plan Business

Smoothie Bar-celona Smoothie & Juice Bar Business Plan

Business Proposal • Smoothie-bar, named Smoothie Bar-celona, selling a variety of mixed and instantly prepared, 100% natural fruit juices and Smoothies to take away. • The target group is composed of health conscious consumers looking for convenient fast-food alternatives • The healthy benefits and tastes of our juices are the core of our organization and will be transmitted through our efficient service. Copyright © 2012 Smoothie Bar-celona. All Rights Reserved.

The Business Vision • “To be perceived as the provider of the most delicious, convenient and healthy grab and go alternative in Barcelona”. Mission • “To provide a healthy, tasty and refreshing experience with our 100% natural fruit juices and smoothies to take away. To serve and satisfy the nutrition needs of health conscious consumers through the high quality of our products. We contribute to make Barcelona a healthier city. ” Copyright © 2012 Smoothie Bar-celona. All Rights Reserved.

Industry Analysis Five forces: • Smoothie industry is in a growing stage, with few

Secondary Research Consumer Trends: • Constant growth rates of the juice market in Spain! • Soft drink market in Spain will rise up to 9 billion euros • “Resilience of health products during the recession to customers´ desire to maintain their health / wellness habits while avoiding risky cheaper options” • “Growing demand for “easy health” (convenience) in the shape of functional foods” • “Widespread consumer interest in products positioned as health-boosting” → preventative care • “Health benefits are driving sales of functional foods and beverages”→ value-added-products Copyright © 2012 Smoothie Bar-celona. All Rights Reserved.

Primary Research Survey Results (90 respondents) • Positive attitude towards Smoothies / freshly made natural juices • High demand – not saturated / growing market • Accepted by the target group / health-conscious people perceived as healthy fast-food alternative (tourists and short/long-term residents) Main reasons for not consuming: • Doubts on quality / No confidence in cleanliness • Too expensive • Not available (in the variety that I would like them) Copyright © 2012 Smoothie Bar-celona. All Rights Reserved.

Target & Strategy • “Smoothie Barcelona’s customers are likely to be followers of a healthy type of lifestyle. Additionally and as a result of the scarce restrictions that the product has in terms of age, gender and benefits, a secondary will be the tourists that come to city and young professionals that are adopting new trends”. Low Cost Strategy Differentiation Coffee Beer Regular sodas Water Packed fruit juices Soft drinks Yogurt Energetic drinks Light sodas Vitamins 100% Natural fruit juices to grab and go Mass “Traditional consumers of drinks” Niche “People in the healthy living trend. ” Copyright © 2012 Smoothie Bar-celona. All Rights Reserved.

Positioning + Aligned with healthy trend Smoothi e Barcelona Cheap Expensive - Aligned with

Strategy • Focused Differentiation Strategy • Strategically increase the number of locations within a short time-frame, expanding the reach, making the products more available to the consumers. • Take advantage of economies of scale • Strong brand management • In comparison to the first store, the following kiosks are small in size, investment and running costs, and are flexible and easy to set-up. Copyright © 2012 Smoothie Bar-celona. All Rights Reserved.

Competitive Advantage • Excellent value-for-money we offer to our customers • Superior product quality and positioning combined with a price lower than that of the competition • Cost control and Economies of Scale • Diversified menu • Unique high traffic location • Clear shaped image and brand experience aligned to healthy lifestyle concept Copyright © 2012 Smoothie Bar-celona. All Rights Reserved.

Promotion • Brand proposition: “Smoothie Barcelona is the most convenient, fresh and tasty option to nurture and energize your body and immune system at a reasonable price”. Promotion: • Sampling • Flyers • Bonus / Loyalty Cards • Homepage • SEM / SEO • Newsletter • Sweepstakes • Alliances Copyright © 2012 Smoothie Bar-celona. All Rights Reserved.

Homepage www. . com Copyright © 2012 Smoothie Bar-celona. All Rights Reserved.

Operations Value chain: Human Resources Accounting & Finance Procurement Reception, storage and quality control of fruits and other raw materials Inbound logistics Preparation of of Smoothies Packaging ing. Maintenance Mainten ofance facilities of facilities. Operations Marketing Customer Service Sales Copyright © 2012 Smoothie Bar-celona. All Rights Reserved.

Initial Investments • The main investment required to start the business is composed by the following aspects: • 2 nd Store: 31. 787 € • 3 rd Store: 34. 966 € Copyright © 2012 Smoothie Bar-celona. All Rights Reserved.

Operations • Processes / Diagram path Copyright © 2012 Smoothie Bar-celona. All Rights Reserved.

Operations • Project Management Copyright © 2012 Smoothie Bar-celona. All Rights Reserved.

Organizational Structure • Months 1 -6: Shareholders will also work in the operation activities of the business • After 6 th month: Incorporation of a General Manager plus two assistants • After two years: Incorporation of a Assistant Manager plus one Assistant for the second kiosk. Copyright © 2012 Smoothie Bar-celona. All Rights Reserved.

Financial Plan • Capital Structure First store: Initial investment 41, 780€ Working Capital 28, 220€ Monthly Loan Payments 1, 216. 88€ Loan for 2 nd store 32, 000€ Annuity for 3 rd store Copyright © 2012 Smoothie Bar-celona. All Rights Reserved.

Break-even Analysis • Contribution margin: 2, 75 € • To reach a positive cash flow in a yearly basis, Smoothie Barcelona has to sell at least 37. 634 units or 131. 718€ Copyright © 2012 Smoothie Bar-celona. All Rights Reserved.

Financial Plan Sales Forecast 1 store + 1 kiosk Copyright © 2012 Smoothie Bar-celona.

Profit and Loss Accounts Copyright © 2012 Smoothie Bar-celona. All Rights Reserved.

Risk Analysis Project Valuation • The valuation indicates that the project is economically feasible

Ratio Analysis • Financial ability to pay its short term debts. • Big part of the liabilities that are accounted at the end of each year is assign to the concept of dividends payables. • The assets are more productive every year. • The business is generating enough profits to finance its own expansion Copyright © 2012 Smoothie Bar-celona. All Rights Reserved.