One of the major problems with conventional ice cream shops is the poor transition of sales into the winter months. For years traditional shops have had to find other sources of income or have had to drastically change their targets as the seasons change. Hot Snowballs is an ice cream shop with an additional coffee shop included that will ease the struggle of growing a new business through the colder months. The International Dairy Foods Association has determined that after August the sales for ice cream decline dramatically, and then rise again beginning in March (International Dairy Food Association). I have always had dreams of running a small business and I also have a passion for coffee and ice cream. Growing up, my parents shared their …show more content…
There will be an estimated $40,000 in equipment, including industrial freezers and ice cream making machines, as well as a service counter for the customers to observe and test their flavors (Bush Refrigeration; Appliances Heaven). An additional $10,000 is set aside for coffee makers and blenders to provide the ability to make quality coffee and other warmed beverages for the customers to enjoy. This eats up approximately half of our starting sum, but it is also the most expensive portion of the process. Renting a smaller building is the most realistic way for this type of starter business to test the waters and see if it has the potential to grow. It is pointless to spend a large sum of money on a building in the beginning stages if you don’t even know how successful your business will be. $2,000 per month will be set aside to cover rental costs and should sufficiently cover the size of the building and utility bills we incur. In order to bring the building up to shape and remodel it, we are setting aside $15,000 along with an additional $8,000 for furnishings and exterior landscaping and design (Seating Experts). Labor for four employees over the course of a month working at $10 dollars per hour places labor costs at approximately $6,400. The initial purchase of materials will be another huge purchase for Hot Snowballs. The ingredients for ice cream must be bought separately and then assembled on site. The coffee beans and other materials can be ordered and then prepared as is on site. This cost is estimated at $5,000 to gather all the initial ingredients and materials. Hot Snowballs marketing campaign will launch with two billboards and a social media sponsored ad and will have an initial budget of $8,000. This leaves us with a $5,600 cushion to use wherever necessary or to cover legal fees
Next I will need to find out the yearly net income from the investment. This will be gross ticket sales minus the total expenses. Deer Valley expects 300 skiers per day for 40 days at $55.00 per ticket, giving us $660,000 in ticket sales. In order to figure the total expenses I need to separate the fixed and variable expenses. Fixed expenses are those that will be there everyday the lodge is open regardless of the number of skiers. The Lodge is open 200 days per year and the cost of running the new lift is $500 per day for the entire 200 days giving us $100,000 in fixed costs. Variable costs are the expenses based on the number of customers. There is an additional $5 expense per skier per day associated with the new lift. If there are 300 skiers multiplied by $5 each multiplied by the 40 days that they are expected to be on the lift, we will have $60,000 in variable expenses. Fixed costs of $100,000 plus the variable costs of $60,000 will give us $160,000 in total expenses. The gross ticket sales of $660,000 minus the total expenses of $160,000 give us a yearly net income of $500,000.
Hannah’s Ice Cream is an ice cream business located on Elgin’s Beach main street at one of Lake Huron’s finest beaches. Before the original business owner and founder, Hannah, retired; this business was a thriving enterprise well admired by its local community. Equivalently important, it also established itself to become an icon in the town and its success was due to several factors. First factor: Hannah established an ethical workplace in which her employees were treated fairly and appropriately. To emphasize, her workers were paid more than minimum wage, they were provided with incentives, and they had the right voice their ideas on weekly improvement meetings. Additionally, most of her staff were teenagers and most of her customers were
3-31. What would be the advantages of buying a Cold Stone Creamery franchise as opposed to starting a business from scratch?
Business Problem and Recommended Solution Intrigued by the opportunity to own his business, Larry Brownlow must decide whether a distributorship opportunity with Coors is a worthy venture. To aid Larry in his decision, the following pages provide an assessment of this business opportunity. With a limited research budget of $9,500 (p.143), careful selection of reports was essential to obtain both the necessary data to project profitability (e.g., revenues, cost of sales, other expenses, Coors projected market share, retail pricing data) and to provide a qualitative, consumer-focused perspective that would give these quantitative projections a solid foundation. Considering the given financial background, if Larry does not go forward with this investment, we assume he will choose to continue earning annual income from his trust at $40,000 per year (p.143). However, if he goes forward with the investment, he will cash in on the entire trust and take a significant financial risk.
The Russian Ice Cream market is worth $ 500 million, with Ice Fili as the market leader. The industry concentration, determined by the market share of the four largest firms in a sector is low for Russian ice-cream industry. It indicates that the industry is highly fragmented and competitive. The industry has experienced a low growth rate of ~ 3.5 % for the last two years and the other factors influencing the overall market size, like the population and the per capita consumption of ice cream have been stagnant over the years. The external factors like the shrinking frozen-foods imports market coupled with low entry barriers caused increase in the number of new entrants into the ice-cream market.
o The remaining $125,000 up front charge would not be owed until ICEDELIGHTS provided one acceptable location and the lease was signed
...alented young managers in this area need to be aggressively obtained for long term growth. For a quick fix, this service should be outsourced to handle current needs. Distribution channels need to improve as well. Currently, competitor’s products are easily found at major retail channels. Nestle is in the position to gain a strong hold on the home dessert market for ice cream. Ice-fili needs to compete more aggressively in this portion of the market. In addition franchises and fast food chains should be targeted for partnerships or joint ventures so Ice-Fili’s ice cream can grow in association with a post meal dessert opposed to simply impulsive snack purchases. A key avenue to explore is an Initial Public Offering. This would generate enough funds to continue capital investment in technology desperately needed as well as promoting international market growth.
To prevent the separation of senior couples, there should be a variety of health care providers hired at the same health facility that can handle the different level of care the seniors may need. Also have the choice of home care taker that can provide care to seniors in their own home instead of placing them into home care. Another proposal is to build more residential care that allows couples to live together even though they may not require the same care because for them being together is a priority as
In this project I ran a lemonade stand for 30 days. I had a rough beginning, but as the game went on I began to learn about what the customers wanted. I made a net profit of $83.11 dollars. I figured out that I needed to make sure I didn't buy too much ice, or it would melt and I'd be wasting money on ice. I ended the game with a 100% in satisfaction, and popularity. I figured out the temperature had a correlation with the demand of lemonade. If it was hot, people wanted more ice, and were willing to pay more money for a cup of lemonade. If it was cold, people did not want much ice in their lemonade, and didn't want to pay much for a cup. The customers were more willing to buy a cup of lemonade if it had a good balance
Krispy Kremes's strong brand name, highly differentiated products, high-volume production capability and multi-channel market penetration strategy has worked well. With each new store opening there are lines waiting at the door all night to experience the Krispy Kreme quality. In Denver, more than 3000 people stood in a line extending for more than three city blocks on opening day. They have production areas in full view and a neon light that lights up when "Hot Donuts" are actually coming off the line. Krispy Kreme makes customers feel good about indulging. Even Krispy Kreme's name brings a smile to people's faces.
Starbucks is the world’s largest coffee roaster and retailer of specialty coffee in the world. We have enjoyed great dividend returns over the past 5 years, and our growth has been on the rise. We are currently saturating the US market, while the emerging markets of developing countries offer many possibilities for growth and increased revenues. In our US market we should look at offering more items on the menu that complement our long-standing tradition of pleasing our customers. Exotic Juices, and snacks served with the same service could add a nice margin to the bottom line. In addition, the ability to offer a drive through service for the consumer that loves fine coffee but does not have the time to stop and visit should be on our “trial” market plan for the next few years.
The name of my café is star bean cafe. Every year approximate 50,000 to 80,000 student and 10, 0,000 visitor are entered in New Zealand so that my main goal are those students and as well as local people and commercial people.
The origins of ice cream go way back to the 4th century B.C. In the 13th century, Marco Polo learned of the Chinese method of creating ice and milk mixtures and brought it back to Europe. It became a fashionable treat in Italy and France.
The coffee shop industry is an ever growing field with innumerable advantages for both owners and consumers. With 50% of the American population having at least one cup of coffee each day, and each having an average of 3.1 cups a day, there is no denying the major role of coffee shops. Coffee shops alone account for $12 billion of the $18 billion United States coffee market. While there are still threats that come with coffee shops, the opportunities are endless.
ice cream belonging to the premium category. Based on our analysis, we have identified two major