FRO YO AT YO DOOR A Frozen Yogurt Experience December 10, 2015 Abdulkarim Alnamlah, Brett Albers, Brittney Fuchs, Gaolee Yang, Lindsey Dickhut Introduction Have you ever spent a hot summer day outside, and heard the distinct music from nearby that meant the ice cream truck was coming? Our business "Fro-Yo at Yo Door" combines the ice cream truck with a frozen yogurt twist. We have created a similar business on wheels that sells frozen yogurt to fulfill those hot weather cravings without having to drive somewhere to get it. Similar to a frozen yogurt location, we will have an assortment of flavors for our customers to choose from. There will be self serve dispensers on the outside of the 3 operating trucks. We are allowing our customers to grab a bowl or cone, and dispense their favorite flavor or flavors of frozen yogurt. As you know, no frozen yogurt treat is complete without its toppings. That's why we will also provide a variety of additional toppings for our customers to top off their creations to cater to their specific cravings. Business Plan These trucks will drive around the cities of the Greater Milwaukee Area, including, bordering cities such as New Berlin, Brookfield and Wauwatosa. The trucks will focus largely on traveling through neighborhoods to ensure that we are satisfying all of our customers. Since Wisconsin experiences the four seasons throughout a calendar year, we will only be up and running during the summer-like months: May through September. In our off months, we will not be out of business; our trucks will pack up and head down south (much like the migration of senior citizens). During the months of October through April our trucks will provide business in Houston, Texas. In Texas, our main customer will still be families in neighborhoods, but there is potential for us to tap into the tourist market at festivals and events. It's important to mention that frozen yogurt can limit us and our potential market, thus, we have dealt with this problem by serving two locations, targeting their seasonal market. We are seeking $250,000 for 25% stake in our company. This money will go towards purchasing the trucks that will drive around and sell our products. Right now, we have a facility where we are able to store our inventory and trucks during our closed . This will allow us to keep a greater amount of inventory on hand at this facility if we were to run out in the trucks. Any additional money left over after will go towards purchasing inventory to stock our facility, as well as looking into additional flavors of frozen yogurt that we can think about purchasing in the future. Our unique selling proposition is that we offer convenient, flavorful frozen yogurt and desserts to our customers on their neighborhood streets. We will change our flavors on a regular basis. Instead of continuing to restock the same flavors of frozen yogurt when one runs out, we will introduce new flavors. This will allow our customers to taste a variety of flavors at their convenience. We will keep the traditional vanilla and chocolate frozen yogurt flavors on the trucks at all times. Our business will bring the self-serve frozen yogurt to our customers’ neighborhoods. We will also offer a variety of toppings for our frozen yogurt, which will change periodically to introduce new items to our customers. Once we have established what our customers like, we will tailor our flavors and toppings to their wants. We believe in listening to our customers to better meet their needs. Market and Target Customers Our market for this product targets families. Family’s lives are constantly busy and we want to bring their favorite treats to them. The demand for frozen yogurt and desserts is high, so we believe we will be able to capture that demand with our mobile business. We aim to capture our customer's attention by offering healthy desserts and the option for all customers to personalize their frozen yogurt goodness. Our company is very satisfied with meeting the needs of our customers through the sales of neighborhoods, but there is possibility in the future for tapping into the tourist and festival market to increase sales. We will also create an inviting atmosphere with comfortable tables and chairs for customers to sit at and enjoy the frozen yogurt and desserts. Yogurt eaters today come in all shapes and sizes, colors and creeds. Consuming yogurt is a phenomenon that has stormed the Wisconsin area and has found success during the summer months. The largest consumers of frozen yogurt are those ranging between the ages of 18 and 34. Younger generations (those between 18 and 24) grew up with frozen yogurt, thus, they are more common consumers. The most popular flavors are still vanilla and chocolate amongst frozen yogurt lovers. Sales for frozen yogurt have been driven by the youth. The great part about our business is that we know that we have a niche market under 18 that may not have access to a vehicle to get frozen yogurt. To overcome this obstacle, we will be driving to our young customers, since most of our younger consumers cannot drive yet. Another target market that our company wants to sell to is the health conscious. Compared to other frozen treats (dairy soft serve and custard), frozen yogurt offers a healthier and not overly sugared treat. Many individual enjoy soft serve frozen yogurt because it gives the individual more customizable options—decisions regarding serving sizes and toppings depend on the customer. Most of the time, soft serve frozen yogurt is not as sweet as other frozen treats, this makes it nearly impossible for customers to walk away with a product that is just too sweet (even with the added toppings). Market Competition For our company Fro Yo at Yo Door, our main frozen yogurt market competitors would be various local frozen yogurt stores. Among our competitors, a small list of these would include stores like Yo Mama!, MyYoMy! Frozen Yogurt, Yo Factory, Daddy Yo's Frozen Yogurt and CherryBerry SelfServe Yogurt Bar. Our competitors throughout the country would include established frozen yogurt franchises like Yogurtland, Pinkberry and also Orange Leaf. Although we have a number of store competitors in the frozen yogurt industry, our key market advantage against these stores/franchises listed would be that we are a frozen yogurt truck and will be able to reach our customers across the states to establish our company brand. More importantly, right now from current research there are no presence of successful frozen yogurt trucks operating throughout the greater Milwaukee area. With this, our company would plan to establish name recognition among locals and work our way through the country thereafter. We will purchase our cups, spoons, and machines from Nanci's Yogurt Distributor. 1000, 12-ounce cups will cost us $65. 1000 spoons will cost us $20. We will purchase 6 used machines at $6,000 per machine, equaling $36,000. Cielo - A Frozen Yogurt Company will be our supplier for frozen yogurt mixes. We will by the mixes in cases. Each case has 5 bags that make 360 ounces of frozen yogurt per bag. One case makes 1,800 ounces of frozen yogurt and will cost us $100. Ideally, we would like to purchase 12 cases right away, equaling $1,200. The flavors that we purchase will be determined on the basis of customer demand, after our initial start. To begin with, we will have vanilla, chocolate, watermelon, strawberry, raspberry and coconut frozen yogurt. Our napkins will be bought from 4imprint. We will have printed napkins with our logo on to increase the marketing of our business. We will purchase 2000 napkins for $300. We also plan to offer toppings for our customers to add to their frozen yogurt. They will be purchased from the Webstaurant Store, including: sprinkles, Oreo crumbles, gummy bears, nerds, M&M's and Reese's. We are allocating $3,000 to start with for toppings. As for employees, we will have 10 total employees with 2 working on each truck at a time. We will operate from 12-8pm each day, and may vary depending on festivals and other events. We will pay them $7.50 per hour, equaling $360 per day. Our employees must have a valid driver's license to work for us. We will order t-shirts from VistaPrint with our company logo on them. They will cost roughly $9.00 each, totaling about $100. We plan to market our business on social media because it is a free way to get our name out there. We will start with a Facebook page, and gauge our customers interest for additional social media sites. We will also have our name on our trucks so that our current and potential are repeatedly seeing our name when we visit their area. Festivals and other events will be another way for us to gain market share of frozen yogurt eaters. Marketing: Social Media, on our trucks, festivals A cash register will be another important part of our business. We will have one per truck, which will cost us $200 each. This equals $600. A credit card machine is also crucial, as some of our customers may not have cash readily available. This will be an attachment to the phone that is kept on each truck. The attachment will cost $30 each, equaling $90. The phone kept on each truck will cost us about $100 per month, a total of $300 for all three phones for our trucks. Credit card companies charge fees to accept their cards. These fees cannot be determined exactly, so we will plan to allocate XXXX amount for these expenses. We will also need to take into the account cash register expenses, which will entail paper for the register and credit card, also ink. For these costs we are estimating an extra $52 dollars for the register. Miscellaneous overhead costs Fro Yo at Yo Door will have are licensing, insurance, and warehouse costs. We will allocate $10,000 towards Licensing, which will include licenses to serve food in Wisconsin and in Texas. Department of Health Licenses, drivers licenses for all employees who will be driving our vehicles. Another cost is insurance. We will be budgeting for $50,000 going towards our insurance costs. This will include business insurance, workers' compensation insurance, car insurance (for our truck), insurance on our building, and insurance for our frozen yogurt machines (those things cost an arm and a leg, there's no way we aren't insuring them). Our final miscellaneous cost will go to our warehouse. We are planning on renting out a warehouse. We are allocating $15,000 towards our first year of renting a warehouse. Fro Yo at Yo Door is all about the savings, so we will buy three gently used food trucks to run our business. Used food trucks in great condition usually run for prices between $17,000 and $20,000 dollars. We would like to put about $10,000 into each truck to customize and create the ultimate experience for our customers. We would like to do some advertising on our trucks as well. Additionally, we would prefer to have a nice sound system and lighting for the ultimate experience for our customers. Our total cost for our three trucks is estimated to be $80,500, Our gasoline costs are yet to be determined. Revenue We project to sell $300,000 in sales of frozen yogurt in the first 12 months. Below is an indication of how many ounces of yogurt we would need to sell to reach our sales goal. Our calculations however, do not include essential operating expenses like cost of gas, equipment, business licenses, permits, employee compensation, etc. (We will need to talk about this with the group). It will cost us under 10 cents per ounce of frozen yogurt. We will charge 40 cents per ounce of frozen yogurt and desserts will be 45 cents per ounce. That will allow us a $223,333.30 margin between the cost and price of our products. This margin does not include equipment, licenses, gas expenses, overhead, electricity and other raw materials. *Please note: the calculations below are for one truck. We are planning to have 3 operating trucks. Target time and kinds of special events Target times should be from 12pm to 8pm as 11 am coincides with the middle of the lunch hour and by 8pm the downtown rush comes to an end on week days. This proposed time would be considering that there were no special events going on that specific day. If a special event would require additional work hours we would adjust accordingly to be more accommodating to potential customers (Example: jazz in the park as it usually comes to a close at 9pm.) Special events to be catered to: We selected the special events below because we felt that these summer events attract all types of customers who are looking for a refreshing treat. The nice part about Fro Yo at Yo Door attending events is it cuts down on gas costs and it allows for us to serve a larger crowd. Festivals in Texas that we will like to attend is Houston's Oktoberfest, the World's Champion Bar-B-Que contest, Mardi Gras, and the Buffalo Bayou Regatta--All taking place in October through March. o PRIDEFEST: • • June 3rd - 5th at Henry W. Maier Festival Park. Fri, 3:30pm-Midnight, Sat, Noon-Midnight, Sun, Noon-Midnight. o POLISH FEST: • • June 17th - 19th at Henry W. Maier Festival Park. Fri, 3:30pm-Midnight, Sat, Noon-Midnight, Sun, Noon-Midnight. o MILWAUKEE US BANK 4th of JULY FIREWORKS: • July 3rd at Milwaukee Lake Front. o SUMMERFEST: • 2016 Date TBD at Henry W. Maier Festival Park. o BASTILLE DAYS: • July 14th - 17th at Cathedral Square Park & Surrounding Streets. o FREE French festival: • Festival hours are Thursday and Friday 11am-midnight and Saturday 10am to midnight, Sunday 11am to 9pm. o WISCONSIN STATE FAIR: • August 4th - 14th at Wisconsin State Fair Park Grounds. o JAZZ in the park: • • Thursdays June 2- September 1, 2016. Cathedral Square Park Downtown Milwaukee. o Annual City of Houston Thanksgiving Day Parade: • PARADE BEGINS AT 9:00 A.M. ON LAMAR AT SMITH. o Texas Renaissance Festival: • • October 10, 2015 - November 29, 2015. Recurring weekly on Sunday, Saturday. o Houston Whatever Fest: • • November 21, 2015 - November 22, 2015. Recurring daily. FRO YO AT YO DOOR A Frozen Yogurt Experience December 10, 2015 Introduction Have you ever spent a hot summer day outside, and heard the distinct music from nearby that meant the ice cream truck was coming? Our business "Fro-Yo at Yo Door" combines the ice cream truck with a frozen yogurt twist. We have created a similar business on wheels that sells frozen yogurt to fulfill those hot weather cravings without having to drive somewhere to get it. Similar to a frozen yogurt location, we will have an assortment of flavors for our customers to choose from. There will be self serve dispensers on the outside of the 3 operating trucks. We are allowing our customers to grab a bowl or cone, and dispense their favorite flavor or flavors of frozen yogurt. As you know, no frozen yogurt treat is complete without its toppings. That's why we will also provide a variety of additional toppings for our customers to top off their creations to cater to their specific cravings. Business Plan These trucks will drive around the cities of the Greater Milwaukee Area, including, bordering cities such as New Berlin, Brookfield and Wauwatosa. The trucks will focus largely on traveling through neighborhoods to ensure that we are satisfying all of our customers. Since Wisconsin experiences the four seasons throughout a calendar year, we will only be up and running during the summer-like months: May through September. In our off months, we will not be out of business; our trucks will pack up and head down south (much like the migration of senior citizens). During the months of October through April our trucks will provide business in Houston, Texas. In Texas, our main customer will still be families in neighborhoods, but there is potential for us to tap into the tourist market at festivals and events. It's important to mention that frozen yogurt can limit us and our potential market, thus, we have dealt with this problem by serving two locations, targeting their seasonal market. We are seeking $250,000 for 25% stake in our company. This money will go towards purchasing the trucks that will drive around and sell our products. Right now, we have a facility where we are able to store our inventory and trucks during our closed . This will allow us to keep a greater amount of inventory on hand at this facility if we were to run out in the trucks. Any additional money left over after will go towards purchasing inventory to stock our facility, as well as looking into additional flavors of frozen yogurt that we can think about purchasing in the future. Our unique selling proposition is that we offer convenient, flavorful frozen yogurt and desserts to our customers on their neighborhood streets. We will change our flavors on a regular basis. Instead of continuing to restock the same flavors of frozen yogurt when one runs out, we will introduce new flavors. This will allow our customers to taste a variety of flavors at their convenience. We will keep the traditional vanilla and chocolate frozen yogurt flavors on the trucks at all times. Our business will bring the self-serve frozen yogurt to our customers’ neighborhoods. We will also offer a variety of toppings for our frozen yogurt, which will change periodically to introduce new items to our customers. Once we have established what our customers like, we will tailor our flavors and toppings to their wants. We believe in listening to our customers to better meet their needs. Market and Target Customers Our market for this product targets families. Family’s lives are constantly busy and we want to bring their favorite treats to them. The demand for frozen yogurt and desserts is high, so we believe we will be able to capture that demand with our mobile business. We aim to capture our customer's attention by offering healthy desserts and the option for all customers to personalize their frozen yogurt goodness. Our company is very satisfied with meeting the needs of our customers through the sales of neighborhoods, but there is possibility in the future for tapping into the tourist and festival market to increase sales. We will also create an inviting atmosphere with comfortable tables and chairs for customers to sit at and enjoy the frozen yogurt and desserts. Yogurt eaters today come in all shapes and sizes, colors and creeds. Consuming yogurt is a phenomenon that has stormed the Wisconsin area and has found success during the summer months. The largest consumers of frozen yogurt are those ranging between the ages of 18 and 34. Younger generations (those between 18 and 24) grew up with frozen yogurt, thus, they are more common consumers. The most popular flavors are still vanilla and chocolate amongst frozen yogurt lovers. Sales for frozen yogurt have been driven by the youth. The great part about our business is that we know that we have a niche market under 18 that may not have access to a vehicle to get frozen yogurt. To overcome this obstacle, we will be driving to our young customers, since most of our younger consumers cannot drive yet. Another target market that our company wants to sell to is the health conscious. Compared to other frozen treats (dairy soft serve and custard), frozen yogurt offers a healthier and not overly sugared treat. Many individual enjoy soft serve frozen yogurt because it gives the individual more customizable options— decisions regarding serving sizes and toppings depend on the customer. Most of the time, soft serve frozen yogurt is not as sweet as other frozen treats, this makes it nearly impossible for customers to walk away with a product that is just too sweet (even with the added toppings). Market Competition For our company Fro Yo at Yo Door, our main frozen yogurt market competitors would be various local frozen yogurt stores. Among our competitors, a small list of these would include stores like Yo Mama!, MyYoMy! Frozen Yogurt, Yo Factory, Daddy Yo's Frozen Yogurt and CherryBerry Self-Serve Yogurt Bar. Our competitors throughout the country would include established frozen yogurt franchises like Yogurtland, Pinkberry and also Orange Leaf. Although we have a number of store competitors in the frozen yogurt industry, our key market advantage against these stores/franchises listed would be that we are a frozen yogurt truck and will be able to reach our customers across the states to establish our company brand. More importantly, right now from current research there are no presence of successful frozen yogurt trucks operating throughout the greater Milwaukee area. With this, our company would plan to establish name recognition among locals and work our way through the country thereafter. We will purchase our cups, spoons, and machines from Nanci's Yogurt Distributor. 1000, 12-ounce cups will cost us $65. 1000 spoons will cost us $20. We will purchase 6 used machines at $6,000 per machine, equaling $36,000. Cielo - A Frozen Yogurt Company will be our supplier for frozen yogurt mixes. We will by the mixes in cases. Each case has 5 bags that make 360 ounces of frozen yogurt per bag. One case makes 1,800 ounces of frozen yogurt and will cost us $100. Ideally, we would like to purchase 12 cases right away, equaling $1,200. The flavors that we purchase will be determined on the basis of customer demand, after our initial start. To begin with, we will have vanilla, chocolate, watermelon, strawberry, raspberry and coconut frozen yogurt. Our napkins will be bought from 4imprint. We will have printed napkins with our logo on to increase the marketing of our business. We will purchase 2000 napkins for $300. We also plan to offer toppings for our customers to add to their frozen yogurt. They will be purchased from the Webstaurant Store, including: sprinkles, Oreo crumbles, gummy bears, nerds, M&M's and Reese's. We are allocating $3,000 to start with for toppings. As for employees, we will have 10 total employees with 2 working on each truck at a time. We will operate from 12-8pm each day, and may vary depending on festivals and other events. We will pay them $7.50 per hour, equaling $360 per day. Our employees must have a valid driver's license to work for us. We will order t-shirts from VistaPrint with our company logo on them. They will cost roughly $9.00 each, totaling about $100. We plan to market our business on social media because it is a free way to get our name out there. We will start with a Facebook page, and gauge our customers interest for additional social media sites. We will also have our name on our trucks so that our current and potential are repeatedly seeing our name when we visit their area. Festivals and other events will be another way for us to gain market share of frozen yogurt eaters. Marketing: Social Media, on our trucks, festivals A cash register will be another important part of our business. We will have one per truck, which will cost us $200 each. This equals $600. A credit card machine is also crucial, as some of our customers may not have cash readily available. This will be an attachment to the phone that is kept on each truck. The attachment will cost $30 each, equaling $90. The phone kept on each truck will cost us about $100 per month, a total of $300 for all three phones for our trucks. Credit card companies charge fees to accept their cards. These fees cannot be determined exactly, so we will plan to allocate XXXX amount for these expenses. We will also need to take into the account cash register expenses, which will entail paper for the register and credit card, also ink. For these costs we are estimating an extra $52 dollars for the register. Miscellaneous overhead costs Fro Yo at Yo Door will have are licensing, insurance, and warehouse costs. We will allocate $10,000 towards Licensing, which will include licenses to serve food in Wisconsin and in Texas. Department of Health Licenses, drivers licenses for all employees who will be driving our vehicles. Another cost is insurance. We will be budgeting for $50,000 going towards our insurance costs. This will include business insurance, workers' compensation insurance, car insurance (for our truck), insurance on our building, and insurance for our frozen yogurt machines (those things cost an arm and a leg, there's no way we aren't insuring them). Our final miscellaneous cost will go to our warehouse. We are planning on renting out a warehouse. We are allocating $15,000 towards our first year of renting a warehouse. Fro Yo at Yo Door is all about the savings, so we will buy three gently used food trucks to run our business. Used food trucks in great condition usually run for prices between $17,000 and $20,000 dollars. We would like to put about $10,000 into each truck to customize and create the ultimate experience for our customers. We would like to do some advertising on our trucks as well. Additionally, we would prefer to have a nice sound system and lighting for the ultimate experience for our customers. Our total cost for our three trucks is estimated to be $80,500, Our gasoline costs are yet to be determined. Revenue We project to sell $300,000 in sales of frozen yogurt in the first 12 months. Below is an indication of how many ounces of yogurt we would need to sell to reach our sales goal. Our calculations however, do not include essential operating expenses like cost of gas, equipment, business licenses, permits, employee compensation, etc. (We will need to talk about this with the group). It will cost us under 10 cents per ounce of frozen yogurt. We will charge 40 cents per ounce of frozen yogurt and desserts will be 45 cents per ounce. That will allow us a $223,333.30 margin between the cost and price of our products. This margin does not include equipment, licenses, gas expenses, overhead, electricity and other raw materials. *Please note: the calculations below are for one truck. We are planning to have 3 operating trucks. Target time and kinds of special events Target times should be from 12pm to 8pm as 11 am coincides with the middle of the lunch hour and by 8pm the downtown rush comes to an end on week days. This proposed time would be considering that there were no special events going on that specific day. If a special event would require additional work hours we would adjust accordingly to be more accommodating to potential customers (Example: jazz in the park as it usually comes to a close at 9pm.) Special events to be catered to: We selected the special events below because we felt that these summer events attract all types of customers who are looking for a refreshing treat. The nice part about Fro Yo at Yo Door attending events is it cuts down on gas costs and it allows for us to serve a larger crowd. Festivals in Texas that we will like to attend is Houston's Oktoberfest, the World's Champion Bar-B-Que contest, Mardi Gras, and the Buffalo Bayou Regatta--All taking place in October through March. o PRIDEFEST: • June 3rd - 5th at Henry W. Maier Festival Park. • Fri, 3:30pm-Midnight, Sat, Noon-Midnight, Sun, Noon-Midnight. o POLISH FEST: • June 17th - 19th at Henry W. Maier Festival Park. • Fri, 3:30pm-Midnight, Sat, Noon-Midnight, Sun, Noon-Midnight. o MILWAUKEE US BANK 4th of JULY FIREWORKS: • July 3rd at Milwaukee Lake Front. o SUMMERFEST: • 2016 Date TBD at Henry W. Maier Festival Park. o BASTILLE DAYS: • July 14th - 17th at Cathedral Square Park & Surrounding Streets. o FREE French festival: • Festival hours are Thursday and Friday 11am-midnight and Saturday 10am to midnight, Sunday 11am to 9pm. o WISCONSIN STATE FAIR: • August 4th - 14th at Wisconsin State Fair Park Grounds. o JAZZ in the park: • Thursdays June 2- September 1, 2016. • Cathedral Square Park Downtown Milwaukee. o Annual City of Houston Thanksgiving Day Parade: • PARADE BEGINS AT 9:00 A.M. ON LAMAR AT SMITH. o Texas Renaissance Festival: • October 10, 2015 - November 29, 2015. • Recurring weekly on Sunday, Saturday. o Houston Whatever Fest: • November 21, 2015 - November 22, 2015. • Recurring daily.
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