Sandwich Shop Business Plan

I. Executive Summary
II. Company Overview
III. Industry Analysis
IV. Customer Analysis
V. Competitive Analysis
VI. Marketing Plan
VII. Operations Plan
VIII. Management Team
IX. Financial Plan
I. Executive Summary
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customizable financial model) to your computer here.

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

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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

You can download our Business Plan Template (including a full,

customizable financial model) to your computer here.

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

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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%

 Wilmette Winnetka

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.
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V. Competitive Analysis
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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

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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 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

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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

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customizable financial model) to your computer here.

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

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customizable financial model) to your computer here.

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
Number of customers per day Per location

FY 2 120

FY 3 140

FY 4 165

FY 5 190

Average transaction $14.00

Annual increase in order price 5.00%

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 $151,200 $333,396 $367,569 $405,245 $446,7

A

Product/Service $100,800 $222,264 $245,046 $270,163 $297,8

B
 Year 1 Year 2 Year 3 Year 4 Year 5

Total Revenues $252,000 $555,660 $612,615 $675,408 $744,6

Expenses &
Costs

Cost of goods $57,960 $122,245 $122,523 $128,328 $134,0

sold

Lease $60,000 $61,500 $63,038 $64,613 $66,22

Marketing $20,000 $25,000 $25,000 $25,000 $25,00

Salaries $133,890 $204,030 $224,943 $236,190 $248,0

Other Expenses $3,500 $4,000 $4,500 $5,000 $5,500

Total Expenses & $271,850 $412,775 $435,504 $454,131 $473,2

Costs

EBITDA ($19,850) $142,885 $177,112 $221,277 $271,3

Depreciation $36,960 $36,960 $36,960 $36,960 $36,96

EBIT ($56,810) $105,925 $140,152 $184,317 $234,4

Interest $23,621 $20,668 $17,716 $14,763 $11,81

 Year 1 Year 2 Year 3 Year 4 Year 5

PRETAX ($80,431) $85,257 $122,436 $169,554 $222,6

INCOME

Net Operating ($80,431) ($80,431) $0 $0 $0

Loss

Income Tax $0 $1,689 $42,853 $59,344 $77,91

Expense

NET ($80,431) $83,568 $79,583 $110,210 $144,6

INCOME

Net Profit - 15.00% 13.00% 16.30% 19.40%

Margin (%)

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 $392,3

Accounts $0 $0 $0 $0 $0
receivable

Inventory $21,000 $23,153 $25,526 $28,142 $31,02

 Year 1 Year 2 Year 3 Year 4 Year 5

Total Current $37,710 $113,340 $184,482 $286,712 $423,4

Assets

Fixed assets $246,450 $246,450 $246,450 $246,450 $246,4

Depreciation $36,960 $73,920 $110,880 $147,840 $184,8

Net fixed $209,490 $172,530 $135,570 $98,610 $61,65

assets

TOTAL $247,200 $285,870 $320,052 $385,322 $485,0

ASSETS

LIABILITIES &
EQUITY

Debt $317,971 $272,546 $227,122 $181,698 $136,2

Accounts $9,660 $10,187 $10,210 $10,694 $11,17

payable

Total $327,631 $282,733 $237,332 $192,391 $147,4

Liabilities

Share Capital $0 $0 $0 $0 $0

Retained ($80,431) $3,137 $82,720 $192,930 $337,6

earnings
 Year 1 Year 2 Year 3 Year 4 Year 5

Total Equity ($80,431) $3,137 $82,720 $192,930 $337,6

TOTAL $247,200 $285,870 $320,052 $385,322 $485,0

LIABILITIES &
EQUITY

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 $144,69

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 ($54,811) $118,902 $114,193 $145,037 $179,24

Operations

CASH FLOW FROM

INVESTMENTS

Investment ($246,450) $0 $0 $0 $0
 Year 1 Year 2 Year 3 Year 4 Year 5

Net Cash Flow from ($246,450) $0 $0 $0 $0

Investments

CASH FLOW FROM

FINANCING

Cash from equity $0 $0 $0 $0 $0

Cash from debt $317,971 ($45,424) ($45,424) ($45,424) ($45,42

Net Cash Flow from $317,971 ($45,424) ($45,424) ($45,424) ($45,42

Financing

SUMMARY

Net Cash Flow $16,710 $73,478 $68,769 $99,613 $133,81

Cash at Beginning of Period $0 $16,710 $90,188 $158,957 $258,57

Cash at End of Period $16,710 $90,188 $158,957 $258,570 $392,38