Bakery Business Plan Template Example 1 PDF

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CONFIDENTIAL

Yum Yum Cakes

From%Grandma'฀s%Kitchen%to%you!

Business Plan%

Contact Information Yum Yum Cakes [email protected] http://yumyumbakery2014.wix.com/yumyumbakery 355 A San Fernando Street San Jose, California 95113, United States

Yum Yum Cakes

Table of Contents Executive)Summary)....................................................................................................................)1! Who)We)Are).........................................................................................................................)1! What)We)Sell).......................................................................................................................)1! Financial)Summary)............................................................................................................)1! Yum))Yum)Cakes).........................................................................................................................)3! Company)Overview)...........................................................................................................)3! Management)Team).............................................................................................................)4! Location)................................................................................................................................)4! Mission)Statement)..............................................................................................................)5! Vision)Statement).................................................................................................................)5! Objectives).............................................................................................................................)5! Strengths)&)Core)Competency).........................................................................................)5! Products)and)Services).................................................................................................................)7! Products)and)Services)........................................................................................................)7! Marketing)Plan)............................................................................................................................)8! Market)Overview)................................................................................................................)8!

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Yum Yum Cakes

Target)Market)Segmentation)............................................................................................)8! Market)Trends).....................................................................................................................)9! Growth)Potential)&)Opportunities).................................................................................)9! Barriers)to)Grow)................................................................................................................)10! Measures)to)Overcome)Barriers).....................................................................................)10! Changes)in)Technology,)Government)Regulation)&)Economy)...............................)11! Market)Segmentation)&)Demographic)Profile)...........................................................)11! Competition).......................................................................................................................)12! Competitive)Analysis).......................................................................................................)13! Niche)...................................................................................................................................)15! Strategy)and)Implementation).................................................................................................)16! Milestones)..........................................................................................................................)19! Operating)Plan)...........................................................................................................................)20! Business)Responsibilities)of)Proposed)Site)................................................................)20! Production)Overview).......................................................................................................)20! Production)Costs)...............................................................................................................)20! Location)..............................................................................................................................)21!

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Yum Yum Cakes

Quality)Control).................................................................................................................)22! Customer)Service)..............................................................................................................)23! Purchase)&)Service)Options)...........................................................................................)23! Inventory)Control).............................................................................................................)24! Business)Hours)..................................................................................................................)24! Legal)Environment)...........................................................................................................)25! Employees)&)Contractors)................................................................................................)27! Inventory)............................................................................................................................)27! Suppliers)............................................................................................................................)27! Credit)Policies)...................................................................................................................)28! Financial)Plan)............................................................................................................................)28! Budget).................................................................................................................................)30! Cash)Flow)Assumptions)..................................................................................................)32! Loans)and)Investments)....................................................................................................)32! Financial)Statements)................................................................................................................)34! Balance)Sheet).....................................................................................................................)37! Cash)Flow)Statement)........................................................................................................)39!

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Yum Yum Cakes

Appendix)....................................................................................................................................)42! Revenue)Forecast)..............................................................................................................)42! Budget).................................................................................................................................)45! Loans)and)Investments)....................................................................................................)51! Profit)and)Loss)Statement)...............................................................................................)53! Balance)Sheet).....................................................................................................................)60! Cash)Flow)Statement)........................................................................................................)65!

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Yum Yum Cakes

Executive Summary Who We Are Yum$Yum$Cakes$is$a$bakery$in$the$downtown$region$of$San$Jose,$CA;$serving$the$local$ student$and$professional$population.$Established$in$June$2014,$the$business$is$operating$ a$storefront$as$well$as$a$catering$kitchen,$specializing$in$event$cakes,$breakfast$and$ lunch$packages.$ The$company$seeks$to$expand$business$by$opening$a$production$unit$$in$Alum$Rock,$ and$expand$the$existing$bakery$into$a$DineJIn$and$Take$Out$Restaurant.$ Yum$Yum$Cakes$will$be$referred$to$as$YYC$here$on.$

What We Sell Yum$Yum$Cakes$offers$freshly$baked$products$such$as$breads,$cakes,$cookies,$cupcakes$ and$pastries,$as$well$as$sandwiches,$soups$and$salads$along$with$beverages.$$ With$the$opening$of$the$restaurant,$we$will$be$able$to$offer$a$fullJfledged$menu$catering$ with$a$variety$of$cuisines$through$the$day.$

Financial Summary The$business$was$started$largely$by$owners'฀$funds.$It$plans$to$fund$its$expansion$ through$a$loan$purchase$from$Bridge$Bank.$ The$funds$are$mainly$required$to$open$a$production$unit$and$expand$the$existing$ bakery$into$a$dineJin$and$a$takeout$restaurant.$ The$initial$growth$of$the$bakery$from$the$time$of$opening$till$midJAugust$is$positive.$ The$bakery$has$seen$a$lot$of$storefront$customers$as$well$as$many$catering$ opportunities.$The$business$takes$a$down$turn$during$the$next$three$months$but$with$

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Yum Yum Cakes

the$proposed$expansion$in$January$2015,$the$business$will$bounce$back$with$stronger$ profits$and$gross$margins.$ From$the$graph$below,$we$see$that$the$company$is$breaking$even$in$FY2015.$In$FY$2016$ and$FY2017,$there$is$a$sustained$Net$Profit$Margin$of$25J35%$and$revenue$is$greater$ than$1$million.$

Financial Highlights by Year

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Yum Yum Cakes

Yum Yum Cakes Company Overview Yum$Yum$Cakes$is$a$startup$specialty$bakery$launched$in$June$2014$near$downtown$ San$Jose.$This$bakery$will$serve$a$community$of$employees$from$the$surrounding$ businesses$and$students$attending$the$nearby$universities.$This$downtown$district$is$a$ very$popular$destination$because$of$the$tech$museums$and$SAP$arena,$for$weekenders,$ tourists$and$game$lovers.$ The$company$is$a$$traditional$bakery,$baking$a$large$variety$of$cakes,$cupcakes$and$ cookies,$sized$to$customer$requirements.$The$bakery$specializes$in$creating$and$ designing$cakes,$cupcakes$and$cookies$for$various$life$events$as$well$as$corporate$ functions.$All$our$products$are$prepared$fresh$everyday$with$locally$grown$ingredients.$ The$company$is$registered$as$a$general$partnership$with$four$partners$who$will$be$ jointly$and$severally$liable$for$the$debts$of$the$company$with$their$entire$property.$ Ms.$Usha$has$extensive$experience$in$finance$and$management$and$served$as$a$vice$ president$of$finance$in$Alien$foods$and$also$has$culinary$experience.$Ms.$Pavithra$ brings$in$culinary$experience$from$all$around$the$world$with$education$in$the$same$ field.$She$has$more$than$ten$years$of$experience$and$served$as$executive$chef$in$some$ worldJrenowned$restaurants.$Ms.$Anne$Lise$brings$in$marketing$and$sales$experience$ and$has$served$as$an$executive$president$with$Adora$Foods.$Ms.$Arya$also$brings$in$ culinary$experience$with$an$academic$background$in$culinary$field.$She$has$served$as$a$ restaurateur$for$the$past$eight$years$and$has$experience$in$world$cuisine.$$ The$company$plans$to$expand$operations$and$business$by$increasing$the$current$ production$with$a$dine$in$and$take$out$restaurant.$This$plan$covers$all$aspects$with$ respect$to$the$expanded$business.$Current$business$reports$are$provided$separately.$

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Yum Yum Cakes

Management Team The$bakery$is$owned$and$managed$by$four$young$women$who$have$had$previous$ experience$in$the$Food$Industry.$ Usha,$Finance$Advisor$&$Baker$ • Manages$the$financial$aspect$ • Helps$in$daily$menu$decision$ • Coordinates$with$the$wholesale$dealers$ Pavithra,$Baker$&$Advertising$ • Head$Baker$ • Helps$in$advertising$and$marketing$the$business$ • Helps$in$daily$menu$decision$ Anne$Lise,$Sales,$Marketing$&$Decorator$ • Manages$the$sales$and$marketing$ • Chief$decorator$of$the$baked$goods$ • Helps$in$daily$menu$decision$ Arya,$Cook$&$Manager$ • Head$Cook$ • Manages$Store$front$ • Helps$in$daily$menu$decision$

Location Yum$Yum$Cakes$is$currently$located$in$A$San$Fernando$Street,$San$Jose,$very$close$to$ universities$and$businesses.$This$serves$as$one$of$the$best$location$for$a$bakery$as$it$ attracts$a$lot$young$college$adults$as$well$as$employees$from$companies$around.$The$

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Yum Yum Cakes

bakery$is$strategically$located,$bringing$in$a$lot$of$tourists$who$visit$museums$or$attend$ events$at$the$nearby$arena.$ We$will$convert$our$existing$location$to$a$complete$store$front$as$we$have$$identified$a$ seller$for$another$bakery$site$where$we$plan$to$move$our$production$operations.$This$ will$be$our$main$production$unit$(PU)$for$the$bakery$and$for$corporate$customers.$

Mission Statement To$provide$our$customers$with$grandma’s$recipes$with$a$modern$twist$to$satisfy$the$ taste$buds$of$the$previous,$current$and$the$future$generations$with$a$dash$of$excellence,$ a$pinch$of$quality$and$a$scoop$of$creativity$by$a$team$of$passionate$individuals.$

Vision Statement To$be$the$best$friendly$neighborhood$bakery$with$a$vision$to$become$the$reference$for$ best$cakes$around$which$our$neighbors$gather$to$celebrate$all$their$lifetime$events$or$ just$in$the$mood$to$have$a$sweet$treat.$$

Objectives 1. 2. 3. 4.

To$establish$a$dineJin$and$a$takeout$restaurant.$ To$develop$a$strong$presence$in$the$community$needed$to$support$sales$goals.$ To$develop$a$full$menu$by$the$end$of$the$last$quarter.$ To$expand$production$to$increase$corporate$customer$sales.$

Strengths & Core Competency Our$company$strengths$and$competencies$may$be$summarize$as$follows:$ Our$business$is$operating$with$existing$customer$base.$We$have$a$brand$image$in$the$ local$area$built$over$the$last$few$months.$We$have$unique$family$recipes$that$ differentiate$our$products$from$others.$$

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Yum Yum Cakes

We$bake$our$own$products$that$assure$quality$and$taste.$Our$culinary$background$ covers$different$regions$of$world.$We$have$collective$industry$and$culinary$experience$ of$42$years.$

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Yum Yum Cakes

Products and Services Products and Services Corporate)Customers:$ •$$$$$$$Lunch$Catering$–$Sandwiches,$Salads,$Soups,$Bread$rolls,$Desserts$ •$$$$$$$Baked$Foods$–$Cakes,$Cupcakes,$Cookies,$Brownies,$Breads,$Savory$snacks$ Storefront)customers:$ •$$$$$$$Baked$Foods$–$Cakes,$Cupcakes,$cookies,$brownies,$pastries$ •$$$$$$$Freshly$prepared$Sandwiches,$Salads$and$Soups$ •$$$$$$$Beverages$(hot$and$cold)$ •$$$$$$$Special$Orders$–$Catering$for$parties,$Wedding$cakes$ $$ Our$bakery$will$focus$on$breakfast,$lunch$and$snacks$serving$from$a$customer$base$of$ local$employees,$students$and$arena$visitors.$ Our$brand$has$become$reputed$in$the$local$area$because$of$our$ability$to$provide$a$good$ balance$between$health$and$taste$at$reasonable$prices.$Our$expanded$business$will$ continue$its$commitment$to$healthy$foods,$and$differentiated$products$using$unique$ traditional$recipes$from$around$the$world.$

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Yum Yum Cakes

Marketing Plan Market Overview Facts)about)the)Bakery)Industry$ The$bakery$industry$in$the$US$includes$2,800$commercial$bakeries$with$annual$revenue$ of$$30$billion,$along$with$6,000$retail$bakeries$with$total$annual$revenue$of$$3$billion.$ The$commercial$side$of$the$industry$is$highly$concentrated,$with$the$50$largest$ companies$generating$75%$of$revenue.$On$the$other$hand,$the$retail$side$is$highly$ fragmented,$with$the$50$largest$companies$generating$around$15%$of$revenue.$In$the$ retail$industry,$most$companies$operate$just$one$facility.$For$companies$of$all$sizes,$ profitability$is$strongly$tied$to$the$efficiency$of$their$operations.$Large$bakeries$are$able$ to$reach$economies$of$scale$advantages,$while$small$bakeries$can$compete$by$offering$ specialty$goods$and$offering$superior$local$services.$

(Reference$J$americanbakers.org$J$A$website$For$American$Bakers’$association).$

Target Market Segmentation There$are$31$bakeries$and$cafes$within$the$5Jmile$radius$of$YYC.$ 8 CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.

Yum Yum Cakes

We$will$cater$to$corporate$clients$within$10Jmile$radius$so$we$can$prepare$and$deliver$ just$in$time$to$ensure$fresh$food.$ We$will$cater$to$storefront$and$restaurant$customers$during$normal$business$hours$ offering$breakfast,$lunch$and$snacks.$We$will$target$employees$of$businesses$and$ students$of$educational$centers$within$a$5Jmile$radius.$We$also$plan$to$attract$customers$ who$visit$the$arena$nearby.$

Market Trends Some)important)trends)Yum)Yum)plans)in)adopting:$ $a.$Consolidation:$YYC$will$only$be$concentrating$on$expansion$of$its$product$lines.$ b.$Automation:$Since$YYC$is$a$small$operator$it$cannot$afford$to$automate$its$ production$right$now.$ c.$Discounted)Resale:$This...