Sandwich Shop Business Plan
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Executive Summary
Business Overview
The Brown Bag Sandwich Shop is a startup business located in Fort Lauderdale, Florida. The company is founded by Stacy Grimes, a chef who has years of experience at preparing exciting and delicious meals for hundreds of clients during the ten years she was employed at a popular restaurant in the city.
Nancy holds a degree from the Culinary Institute of America degree in culinary education. Her experience, in addition to ten years as a senior chef in a local restaurant, includes a cooking experience at the James Beard House with well-known master chefs. She has an affinity for fresh, local and organic foods that can be built into reasonably-priced, nourishing meals that are totally enjoyable. This affinity led to her decision to launch The Brown Bag Sandwich Shop in the heart of Fort Lauderdale on Las Olas Boulevard.
Product Offering
The following are the services that The Brown Bag Sandwich Shop will provide:
- Fresh meals that are served in-house or artfully packed into a “brown bag”
- Locally sourced, organic ingredients
- Restaurant artwork that demonstrates the fun and beauty of food
- Nutritional information offered with every meal
- “Grandma’s Kitchen” comfort food menu offerings
- Light, bright and airy restaurant environment
- Reasonably-priced meals and menu offerings
Customer Focus
The Brown Bag Sandwich Shop will target residents of Fort Lauderdale. The Brown Bag Sandwich Shop will also target food lovers who seek organic, locally-sourced ingredients. The Brown Bag Sandwich Shop will target professionals who seek portable lunches that are delicious and reasonably-priced. The Brown Bag Sandwich Shop will focus on professional groups within the city who are seeking catering services for events.
Management Team
The Brown Bag Sandwich Shop will be owned and operated by Stacy Grimes. She recruited two of her associates from her years of restaurant experience; Tommy Einstein, a sous chef associate who will take the role of Senior Chef in the Brown Bag Sandwich Shop, and Candace Livingstone, a former assistant restaurant manager, who will take the role of Restaurant Manager.
Nancy holds a degree from the Culinary Institute of America degree in culinary education. Her experience, in addition to ten years as a senior chef in a local restaurant, includes a cooking experience at the James Beard House with well-known master chefs. She has an affinity for fresh, local and organic foods that can be built into reasonably-priced, nourishing meals that are totally enjoyable. This affinity led to her decision to launch The Brown Bag Sandwich Shop in the heart of Fort Lauderdale on Las Olas Boulevard.
Tommy Einstein, a former sous chef associate, will take the role of Senior Chef in the Brown Bag Sandwich Shop. His background includes six years as a sous chef in a large restaurant in Fort Lauderdale that specializes in fresh seafood and organic ingredients.
Candace Livingstone, a former assistant restaurant manager, who will take the role of Restaurant Manager, specializes in the administration and operational side of the restaurant business. Her background includes a degree in business administration from the University of Florida.
Success Factors
The Brown Bag Sandwich Shop will be able to achieve success by offering the following competitive advantages:
- Friendly, knowledgeable, and highly-qualified team of The Brown Bag Sandwich Shop
- Restaurant artwork that demonstrates the fun and beauty of food
- Nutritional information offered with every meal
- “Grandma’s Kitchen” comfort food menu offerings
- Light, bright and airy restaurant environment
- The Brown Bag Sandwich Shop offers the most reasonably-priced organic, locally-sourced, and delicious meal choices.
Download the Sandwich Shop business plan template (including a customizable financial model) to your computer here <–
Financial Highlights
The Brown Bag Sandwich Shop is seeking $200,000 in debt financing to launch its The Brown Bag Sandwich Shop. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and marketing costs. The breakout of the funding is below:
- Office space build-out: $20,000
- Office equipment, supplies, and materials: $10,000
- Three months of overhead expenses (payroll, rent, utilities): $150,000
- Marketing costs: $10,000
- Working capital: $10,000
The following graph outlines the financial projections for The Brown Bag Sandwich Shop.
Company Overview
Who is The Brown Bag Sandwich Shop?
The Brown Bag Sandwich Shop is a newly established, full-service sandwich shop restaurant in Fort Lauderdale, Florida. The Brown Bag Sandwich Shop will offer the most delicious, cost-effective, and nutritious meals in Fort Lauderdale and the surrounding communities. The Brown Bag Sandwich Shop will provide a comprehensive menu of meal choices that range from naturally fresh gourmet to hometown favorites for a variety of customers and their taste preferences. Their full-service approach includes a comprehensive array of menu choices.
The Brown Bag Sandwich Shop will be able to serve every meal with a high level of professionality. The team of professionals are highly qualified and experienced in The Brown Bag Sandwich Shop and are eager to meet the requests of their clients. The Brown Bag Sandwich Shop removes all headaches and issues of those who are seeking naturally delicious, fresh, and organic food choices. The Brown Bag Sandwich Shop creates the solution for every diner seeking nutritious meals, prepared with foods that will support optimal health overall.
The Brown Bag Sandwich Shop History
The Brown Bag Sandwich Shop is owned and operated by Stacy Grimes, a chef who has years of experience at preparing exciting and delicious meals for hundreds of clients during the ten years she was employed at a popular restaurant in the city. Nancy holds a degree from the Culinary Institute of America in culinary education. Her experience, in addition to ten years as a senior chef in a local restaurant, includes a cooking experience at the James Beard House with well-known master chefs. She has an affinity for fresh, local and organic foods that can be built into reasonably-priced, nourishing meals that are totally enjoyable. This affinity led to her decision to launch The Brown Bag Sandwich Shop in the heart of Fort Lauderdale on Las Olas Boulevard.
Since incorporation, The Brown Bag Sandwich Shop has achieved the following milestones:
- Registered The Brown Bag Sandwich Shop, LLC to transact business in the state of Florida.
- Has a contract in place for the restaurant office and staff lounge that will occupy 10,000 square feet.
- Reached out to numerous former restaurant clients and associates to spread the word of the launch of the restaurant.
- Began recruiting a staff of ten, including office personnel to work at The Brown Bag Sandwich Shop.
The Brown Bag Sandwich Shop Services
The following will be the services The Brown Bag Sandwich Shop will provide:
- Fresh meals that are served in-house or artfully packed into a “brown bag”
- Locally sourced, organic ingredients
- Restaurant artwork that demonstrates the fun and beauty of food
- Nutritional information offered with every meal
- “Grandma’s Kitchen” comfort food menu offerings
- Light, bright and airy restaurant environment
- Reasonably-priced meals and menu offerings
Industry Analysis
The organic restaurant industry is expected to grow over the next five years to over $123 billion.
The growth will be driven by an increased awareness of choosing organic ingredients and meals.
The growth will be driven by a growing interest in healthful, nutritious meals.
The growth will be driven by an increase of consumers who seek organic meals.
The growth will be driven by an increase of consumers who seek portable meals for consumption any time of day.
The growth will be driven by a continued interest in eating meals that are considered “good-for-you comfort foods.”
Costs will likely be reduced as locally-sourced, organic ingredients become more readily available and can move into the mainstream of the American diet.
Download the Sandwich Shop business plan template (including a customizable financial model) to your computer here <–
Customer Analysis
Demographic Profile of Target Market
The Brown Bag Sandwich Shop will target residents of Fort Lauderdale. The Brown Bag Sandwich Shop will also target food lovers who seek organic, locally-sourced ingredients. The Brown Bag Sandwich Shop will target professionals who seek portable lunches that are delicious and reasonably-priced. The Brown Bag Sandwich Shop will focus on professional groups within the city who are seeking catering services for events.
The precise demographics for The Brown Bag Sandwich Shop are:
| Total | Percent | |
|---|---|---|
| Total population | 1,680,988 | 100% |
| Male | 838,675 | 49.9% |
| Female | 842,313 | 50.1% |
| 20 to 24 years | 114,872 | 6.8% |
| 25 to 34 years | 273,588 | 16.3% |
| 35 to 44 years | 235,946 | 14.0% |
| 45 to 54 years | 210,256 | 12.5% |
| 55 to 59 years | 105,057 | 6.2% |
| 60 to 64 years | 87,484 | 5.2% |
| 65 to 74 years | 116,878 | 7.0% |
| 75 to 84 years | 52,524 | 3.1% |
Customer Segmentation
The Brown Bag Sandwich Shop will primarily target the following customer profiles:
- Residents of Fort Lauderdale, Florida
- Diners seeking organic, locally-sourced ingredients and nutritious meals
- Diners seeking healthful “comfort foods” at reasonable prices
- Professionals seeking catering sources for events
Competitive Analysis
Direct and Indirect Competitors
The Brown Bag Sandwich Shop will face competition from other companies with similar business profiles. A description of each competitor company is below.
My Backyard Garden
My Backyard Garden specializes in locally-sourced, nutritious meals for breakfast and lunch. The restaurant serves up to 24 customers at a time, focusing on the quality of meals served versus speed of service. Fresh brewed coffee, homemade pastries and other gourmet foods are offered, along with hearty vegetarian and vegan selections. The restaurant is open from 6 am to 11 am, serving customers breakfast and lunch specialties.
My Backyard Garden is owned and operated by Dennis and Carolyn Deiner, both experienced chefs who together have twenty years of restaurant experience and who focus on vegetarian and vegan specialties. They have been in business for six years and are seeking a franchise agreement to launch their restaurant into a national chain.
The Lunch Bunch
The Lunch Bunch is located in a suburb about fifteen miles from Fort Lauderdale. The restaurant opens at 11 am and serves lunch until 3 pm on a 5-day-a-week basis. The owner is Katrina Vorhees, a former waitperson at a large restaurant in the suburb area, who served luncheon meals for five years at her place of former employment. The Lunch Bunch is a favorite place for lunch by the residents of the area, who frequently walk to the restaurant for lunchtime meals.
The Lunch Bunch serves “American fare” meals that exemplify those of childhood years, such as “Grilled Peanut Butter with Honey” and “Toasted Ham on Rye” sandwiches. Customers also enjoy the homemade desserts that complement the entrees, such as “Homemade Ice Cream Sandwich” and the favorite “Hot Lava Cupcakes.”
Fresh Bites Sandwich Shop
Fresh Bites Sandwich Shop is a two-year old lunch restaurant located in Fort Lauderdale, Florida. The shop holds up to 15 customers at a time, while focusing on fresh ingredients in every meal served. Fresh Bites Sandwich Shop is owned and operated by Tami Goodson, a former assistant restaurant manager for eleven years who is now launching this small lunch spot in a retail mall environment.
Fresh Bites Sandwich Shop will offer simple meals based on known preferences of the residents of Fort Lauderdale. This will include favorites such as Cuban sandwiches and other specialties that are beloved of Floridians. The sandwich shop will focus on fast service and lunchtime meals that can be quickly prepared and served to maximize the number of customers who can be served during the lunchtime hours.
Download the Sandwich Shop business plan template (including a customizable financial model) to your computer here <–
Competitive Advantage
The Brown Bag Sandwich Shop will be able to offer the following advantages over their competition:
- Friendly, knowledgeable, and highly-qualified team of The Brown Bag Sandwich Shop
- Restaurant artwork that demonstrates the fun and beauty of food
- Nutritional information offered with every meal
- “Grandma’s Kitchen” comfort food menu offerings
- Light, bright and airy restaurant environment
- The Brown Bag Sandwich Shop offers the most reasonably-priced organic, locally-sourced, and delicious meal choices
Marketing Plan
Brand & Value Proposition
The Brown Bag Sandwich Shop will offer the unique value proposition to its clientele:
- Highly-qualified team of skilled employees who are able to provide an array of delicious meals while offering excellent service.
- Restaurant artwork that demonstrates the fun and beauty of food
- Nutritional information offered with every meal
- “Grandma’s Kitchen” comfort food menu offerings
- Reasonable pricing for organic, locally-sourced meal options.
Promotions Strategy
The promotions strategy for The Brown Bag Sandwich Shop is as follows:
Word of Mouth/Referrals
Stacy Grimes has built up an extensive list of contacts over the years by providing exceptional service and expertise for her clients. Clients from her former restaurant will follow her to her new company and help spread the word of The Brown Bag Sandwich Shop.
Professional Associations and Networking
The Brown Bag Sandwich Shop will extensively network through community and city organizations and professional groups, offering the potential of catering services. Discounts and packages will be offered for various functions and events, particularly during the first six months of business.
Print Advertising
A direct mail brochure will be sent to every resident in the Fort Lauderdale area, offering information regarding the launch of the shop and discounts on purchases during the first three months of business.
Website/SEO Marketing
The Brown Bag Sandwich Shop will fully utilize their website. The website will be well organized, informative, and list all the menu items that The Brown Bag Sandwich Shop provides. The website will also list their contact information and list their available meals that can be delivered. The website will utilize SEO marketing tactics so that anytime someone types in the Google or Bing search engine “sandwich shop company” or “lunch place near me”, The Brown Bag Sandwich Shop will be listed at the top of the search results.
Pricing
The pricing of The Brown Bag Sandwich Shop will be moderate and on par with competitors so customers feel they receive excellent value when purchasing their meals and services.
Operations Plan
The following will be the operations plan for The Brown Bag Sandwich Shop.
Operation Functions:
- Stacy Grimes will be the Owner and President of the company. She will oversee all staff and manage client relations. She has spent the past year recruiting the following staff:
- Candace Livingstone will take on the role of Restaurant Manager, who will manage the administration and operational side of the restaurant.
- Tommy Einstein who will take on the role of Senior Chef in the sandwich shop, overseeing meal preparation, menu creation and overseeing wait staff.
Download the Sandwich Shop business plan template (including a customizable financial model) to your computer here <–
Milestones:
The Brown Bag Sandwich Shop will have the following milestones completed in the next six months.
- 5/1/202X – Finalize contract to lease office space
- 5/15/202X – Finalize personnel and staff employment contracts for the The Brown Bag Sandwich Shop
- 6/1/202X – Finalize referrals for The Brown Bag Sandwich Shop
- 6/15/202X – Begin networking at community and association events
- 6/22/202X – Begin moving into The Brown Bag Sandwich Shop office
- 7/1/202X – The Brown Bag Sandwich Shop opens its doors for business
Management Team
The Brown Bag Sandwich Shop will be owned and operated by Stacy Grimes. She recruited two of her associates from her years of restaurant experience; Tommy Einstein, a sous chef associate who will take the role of Senior Chef in the Brown Bag Sandwich Shop, and Candace Livingstone, a former assistant restaurant manager, who will take the role of Restaurant Manager.
Nancy holds a degree from the Culinary Institute of America degree in culinary education. Her experience, in addition to ten years as a senior chef in a local restaurant, includes a cooking experience at the James Beard House with well-known master chefs. She has an affinity for fresh, local and organic foods that can be built into reasonably-priced, nourishing meals that are totally enjoyable. This affinity led to her decision to launch The Brown Bag Sandwich Shop in the heart of Fort Lauderdale on Las Olas Boulevard.
Tommy Einstein, a former sous chef associate, will take the role of Senior Chef in the Brown Bag Sandwich Shop. His background includes six years as a sous chef in a large restaurant in Fort Lauderdale that specializes in fresh seafood and organic ingredients.
Candace Livingstone, a former assistant restaurant manager, who will take the role of Restaurant Manager, specializes in the administration and operational side of the restaurant business. Her background includes a degree in business administration from the University of Florida.
Financial Plan
Key Revenue & Costs
The revenue drivers for The Brown Bag Sandwich Shop are the fees they will charge to customers for the meals and services they provide.
The cost drivers will be the overhead costs required in order to staff The Brown Bag Sandwich Shop. The expenses will be the payroll cost, rent, utilities, office supplies, and marketing materials.
Funding Requirements and Use of Funds
The Brown Bag Sandwich Shop is seeking $200,000 in debt financing to launch its sandwich shop. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print flyers and association memberships. The breakout of the funding is below:
- Office space build-out: $20,000
- Office equipment, supplies, and materials: $10,000
- Three months of overhead expenses (payroll, rent, utilities): $150,000
- Marketing costs: $10,000
- Working capital: $10,000
Download the Sandwich Shop business plan template (including a customizable financial model) to your computer here <–
Key Assumptions
The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.
- Number of Customers Per Month: 1,500
- Average Revenue per Month: $75,000
- Office Lease per Year: $100,000
Financial Projections
Income Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Total Revenues | $360,000 | $793,728 | $875,006 | $964,606 | $1,063,382 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $64,800 | $142,871 | $157,501 | $173,629 | $191,409 | |
| Lease | $50,000 | $51,250 | $52,531 | $53,845 | $55,191 | |
| Marketing | $10,000 | $8,000 | $8,000 | $8,000 | $8,000 | |
| Salaries | $157,015 | $214,030 | $235,968 | $247,766 | $260,155 | |
| Initial expenditure | $10,000 | $0 | $0 | $0 | $0 | |
| Total Expenses & Costs | $291,815 | $416,151 | $454,000 | $483,240 | $514,754 | |
| EBITDA | $68,185 | $377,577 | $421,005 | $481,366 | $548,628 | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| EBIT | $41,025 | $350,417 | $393,845 | $454,206 | $521,468 | |
| Interest | $23,462 | $20,529 | $17,596 | $14,664 | $11,731 | |
| PRETAX INCOME | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Use of Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Taxable Income | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Income Tax Expense | $6,147 | $115,461 | $131,687 | $153,840 | $178,408 | |
| NET INCOME | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 |
Balance Sheet
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $30,000 | $33,072 | $36,459 | $40,192 | $44,308 | |
| Total Current Assets | $184,257 | $381,832 | $609,654 | $878,742 | $1,193,594 | |
| Fixed assets | $180,950 | $180,950 | $180,950 | $180,950 | $180,950 | |
| Depreciation | $27,160 | $54,320 | $81,480 | $108,640 | $135,800 | |
| Net fixed assets | $153,790 | $126,630 | $99,470 | $72,310 | $45,150 | |
| TOTAL ASSETS | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $315,831 | $270,713 | $225,594 | $180,475 | $135,356 | |
| Accounts payable | $10,800 | $11,906 | $13,125 | $14,469 | $15,951 | |
| Total Liability | $326,631 | $282,618 | $238,719 | $194,944 | $151,307 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| Total Equity | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| TOTAL LIABILITIES & EQUITY | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 |
Cash Flow Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | ||||||
| Net Income (Loss) | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 | |
| Change in working capital | ($19,200) | ($1,966) | ($2,167) | ($2,389) | ($2,634) | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| Net Cash Flow from Operations | $19,376 | $239,621 | $269,554 | $310,473 | $355,855 | |
| CASH FLOW FROM INVESTMENTS | ||||||
| Investment | ($180,950) | $0 | $0 | $0 | $0 | |
| Net Cash Flow from Investments | ($180,950) | $0 | $0 | $0 | $0 | |
| CASH FLOW FROM FINANCING | ||||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 | |
| Cash from debt | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow from Financing | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow | $154,257 | $194,502 | $224,436 | $265,355 | $310,736 | |
| Cash at Beginning of Period | $0 | $154,257 | $348,760 | $573,195 | $838,550 | |
| Cash at End of Period | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 |
Sandwich Shop Business Plan FAQs
What Is a Sandwich Shop Business Plan?
A sandwich shop business plan is a plan to start and/or grow your sandwich shop business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.
You can easily complete your Sandwich Shop business plan using our Sandwich Shop Business Plan Template here.
What are the Main Types of Sandwich Shop Businesses?
There are a number of different kinds of sandwich shop businesses, some examples include: Sub Sandwich Shop, Specialty Sandwich Shop, and Food Truck.
How Do You Get Funding for Your Sandwich Shop Business Plan?
Sandwich Shop businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.
What are the Steps To Start a Sandwich Shop Business?
Starting a sandwich shop business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.
1. Develop A Sandwich Shop Business Plan - The first step in starting a business is to create a detailed sandwich shop business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.
2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your sandwich shop business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your sandwich shop business is in compliance with local laws.
3. Register Your Sandwich Shop Business - Once you have chosen a legal structure, the next step is to register your sandwich shop business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.
4. Identify Financing Options - It’s likely that you’ll need some capital to start your sandwich shop business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.
5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.
6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.
7. Acquire Necessary Sandwich Shop Equipment & Supplies - In order to start your sandwich shop business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.
8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your sandwich shop business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.