The

Smoothie Shop
At Thyme Caf
Michelle Garvie, Bree Koetzner, Katie Kovage
May 1, 2014









Executive Summary
There is a growing trend of health-conscious eating and fitness-minded behaviors on the campus of Russell Sage College, and
the need is presently not being capitalized on by any service that is currently available to the students, faculty and staff. The
Smoothie Shop is determined to meet the needs of these urbane customers by providing made-to-order, healthful smoothies.
The Smoothie Shop will build a core group of repeat customers by bringing customizable, fresh and frozen fruit smoothies with
no added sugars or preservatives to the health-minded individual. The Smoothie Shop will provide the best drinks to satisfy our
consumers need for fresh, fast, and healthy options on campus with an array of delicious smoothies.
The standard smoothie offered will consist of a base, either dairy or non-dairy yogurt or milk combination and two to three fruit
additions. There will be options of add-ins available at an additional cost. All smoothies are promised to be low in added sugars,
customizable, can serve as a meal replacement, low in calories, and have an aura of health to them.
The Smoothie Shop will be operated in Buchman Pavilion where the soda fountain once stood in Thyme Caf. This space is a
98.3 square foot bar in the central area of student gathering and eating. We have secured this location through a two-year
lease with the college with the option for it to be extended upon The Smoothie Shop being successful. With this two-year lease,
they have also provided half of our funding totaling to be $20,441.65 dollars. The remaining cost will be covered by capital
obtained through a bank commercial loan.
The company sales revenue will come from customers purchasing our smoothies. Each smoothie will cost a typical customer
about $5.00 but assuming that 30% of our customers will purchase an add-in for an additional $0.30, making the average check
$5.30. The price can be increased with the options for customers to purchase add-ins to boost the nutritional value of the
overall smoothie. We expect about 728 customers to purchase a smoothie each week, giving us weekly margin of $1,972.88.
The weekly margin has the potential to increase with future marketing and promotion tactics.

Market Analysis
1.1 Mission
The Smoothie Shop is an innovative food company that is dedicated to providing high quality, reasonably priced customizable
smoothies that are made with only natural ingredients. The partners of the Smoothie Shop view us as not only partners with
the company but partners with our customers, our employees, our community, and our environment as well. We aim to
become a go-to place for the students, faculty, and staff of Russell Sage College that allows them to find a quick and healthy
meal or snack. Our goal is moderate growth, annual profitability, and maintain cutting edge, healthy products tailored to our
customers wishes.
1.2 Objectives
The Smoothie Shops objectives for operations upon opening are:
Provide the student, faculty, and staff of Russell Sage College with a delicious smoothie at a reasonable and fair price.
Develop a smoothie menu that has the ability to cater to individuals needs.
Use only natural ingredients to respect our clients dietary preferences and the environment.

1.3 Keys to Success

The keys to success will be:

An operation that will offer a welcoming and friendly environment with fast and efficient service.
An operation that offers completely customizable items based solely upon customers preferences and needs.
A well trained staff that is knowledgeable about food safety, food allergies, and diet preferences.
Marketing strategies that focus on building and maintaining a loyal client-customer relationship.

1.4 Competitor Analysis

Direct Competitors:
Starbucks
594 New Loudon Road Latham, NY 12110
(518) 783-4544
www.starbucks.com
Market and Segment

Customers are of all different ages; male and female

Target those who live, work, or pass through the Latham area
Customers are those who typically enjoy coffee, smoothies, tea, bakery items, and sandwiches

Product

Offers different flavors and varieties of coffee, tea, and smoothies

Offers different sandwiches, and bakery items
Smoothies come in chocolate, orange mango, and strawberry
Smoothies are made with fruit and added protein and fiber

Place

Caf with a casual and relaxed atmosphere

Inside and outdoor seating with modern tables and chairs
Has a fireplace to add to the feeling of being at home

Brown, tan, and green color palette for a warm feeling

Price

Smoothies: $4.25

Promotion

Seasonal flavors
Coupons and special deals
Starbucks reward card

Summary

Strengths: Various locations with a relaxed atmosphere

Weaknesses: Can seem as expensive to some shoppers if being bought frequently
Compete with The Smoothie Shop because Starbucks is a well-known brand that offers a variety of products that
attract a wide variety of consumers. Starbucks is a convenient stop for those wishing to get their coffee,
smoothie, and food all at once. They are a main competitor because they are located about 5-10 minutes from
campus with healthy options and may be more convenient for customers.

Panera Bread
601 Troy-Schenectady Road
Latham, NY 12110
(518) 783-5980
www.panerabread.com
Market and Segment

Customers are of all different ages; male and female

Target those who live, work, attend school, or pass through the Latham area
Customers are those who enjoy bagels, sandwiches, soups, smoothies, and pastries

Product

Offers different bagels, sandwiches, coffee, smoothies, pastries, soups, salads and tea
Smoothies come in superfruit power smoothies, green smoothie, wild berry, mango and strawberry
Smoothies are typically low fat or fat free made with low fat yogurt and may have ginseng added

Place

Caf like setting with a orange, tan, green, and maroon color palette creating a peaceful atmosphere
Has a fireplace to contribute to the home like feel
Area is well lit and have traditional tables and chairs, booths and comfortable chairs for relaxing

Price

Fat-free superfruit power smoothie: $4.29

Low-fat strawberry, wild berry, or mango smoothie: $4.09
Low-fat green power smoothie: $4.19

Promotion

MyPanera program: when becoming a member you get exclusive offers, coupons, and free items
Coupons and special deals

Summary

Strengths: Uses fresh ingredients and offers low fat and healthy options
Weaknesses: Prices are higher than fast food places
Compete with The Smoothie Shop because they are appealing to the more health conscious people. Panera offers
a place to eat that offers healthier options at a higher quality. All of their products are made fresh daily and have
minimally processed products. Being only about 10 minutes away and offering smoothies Panera becomes a
direct competitor. Panera offers a variety of food and drinks so it may be a deciding factor to consumers.

Mr. Smoothie
1 Crossgates Mall Road
Albany, NY 12203
(518) 218-1001
mrsmoothie.com
Market and Segment

Customers are of all ages; male and female

Target customers who enjoy smoothies
Customers are those who shop or work at Crossgates Mall

Product

Offers smoothies of various flavors including strawberry, peach, mango, banana, carrot, blueberry, peanut
butter, etc.
Can combine two different flavors in one smoothie
Smoothies can be made low calorie and low fat

Place

Small smoothie kiosk in the upper level of the mall

No tables and chairs, it is very casual

Price

Small: $3.75
Medium: $4.15
Large: $4.55

Promotion

No promotions

Summary

Strengths: Uses fresh ingredients and offers a variety of flavors

Weaknesses: No seating area for customers and location is only a small kiosk
They are a direct competitor from The Smoothie Shop because they offer healthier options, for example, their
smoothies are made with fresh ingredients and no artificial additives. They also have a large variety of
smoothies and show their fresh ingredients by displaying them on the counter. Being only about 20 minutes
away from campus and having offering a more variety of smoothies, students and faculty may be more opt to go
to the mall for their smoothie.

Indirect Competitors:
Jamba Juice
Brueggers Bagels-Crossroads Plaza
263 Boston Post Road
Orange, Connecticut 06477
www.jambajuice.com
Market and Segment

Customers are of all ages; male and female

Target those who live, work, or go to school in the Orange area
Customers are those who enjoy fruit smoothies

Product

Offers different types of fruit smoothies: classic smoothies, whole food nutrition smoothies, all fruit smoothies,
fit n fruitful smoothies, fruit and veggie smoothies, functional smoothies, and creamy treats
There are various flavors of each type; examples are aloha pineapple, banana berry, peach pleasure, strawberry
wild, etc.
Items are made with fruit, fruit juice, sherbet, and frozen yogurt

Place

Green, pink, and orange color palette for a fun environment

Has metal tables and chairs with seating inside and outside
Operation is full of colorful signs and menus to create an excitable area

Price

Smoothies come in three sizes: sixteen, original and power

Classic smoothies (Sixteen): $4.29
Original: $4.99
Power: $5.69

Promotion

JambaCard
$2.99 smoothie specials
Jamba Inside Rewards

Summary

Strengths: Establishment offers different types of smoothies and a wide variety of flavors
Weaknesses: The largest size is fairly expensive
They are an indirect competitor because although there are not a lot of locations near Troy, NY if customers visit
a Jamba Juice and come back to our establishment they may be seeking a more variety of flavors which could put
pressure on The Smoothie Shop to expand the menu.

Freshens
Airport, Terminal E, Gates E6
3200 East Airfield Drive
DFW Airport, TX 75261
www.freshens.com
Market and Segment

Customers are of all ages; male and female

Targets those who use the DFW airport

Product

Fruit Smoothies: Caribbean Craze, Strawberry Kiwi, Citrus Mango, Tropical Pineapple, Strawberry Squeeze, and
others.
Offers low calories, high protein, and energy smoothies
Offers options to add boosters such as protein, mega energy, xtreme lean, focus, and green tea to smoothies

Place

Purple, orange, and green color scheme to attract customers

No seating, small stop and go store in airport

Price

Regular smoothie: $3.89

Large smoothie: $4.89
Additional boosters: $0.59 each

Promotion

No current promotion

Summary

Strengths: Freshens make their smoothies fresh and customers can add different boosters to fit their needs.
Weaknesses: Adding a variety of boosters can increase the smoothie price tremendously
They are an indirect competitor because they do not have many locations near the Sage campus however if any
future customers are traveling and pass through the DFW airport and receive a free booster with their smoothie,
it may put pressure on The Smoothie Shop to do the same.

1.5 Customer Feedback Analysis

Objective: The purpose of soliciting feedback on the healthy eating options on campus is to discover customer
satisfaction and expectations, evaluate the consumer perceptions of the Sage Dining Services shortcomings, and
determine if the customers would like to see an all-natural, made-to-order fruit smoothie bar implemented on
campus. Our goal is to provide the customers of the Sage community with healthful eating options driven by
customer choice, to increase the customers overall satisfaction in the healthy eating options available at Sage,
and to market ourselves as a purveyor of customer-centric healthy eating, increasing the desirability of the Sage
Dining Services to current and future students, faculty and staff.

Target Market Segment: The target market segment of this survey is students, faculty and staff currently using
the McKinstry Dining Services, Thyme Caf, or Lucilles, and students, faculty and staff who have used the dining
services in the past, but may not do so currently. The students will most likely be undergraduate students living
on campus with a meal plan, and undergraduate and graduate students living on or off campus without a meal
plan. The faculty and staff may or may not have any type of meal plan.

Methods of Feedback: Feedback will be solicited through a survey and through comment cards placed at each
station of the dining hall (e.g. pizza station, salad bar, etc.). The survey method will allow us to gather
demographic, preference and satisfaction information, and discover what the Sage communitys perceptions of
the healthfulness of the dining options are, and what it wishes to see in the dining services. The comment cards
will allow us to see how the existing services meet or fall short of customers expectations of healthy eating, and
what they would prefer to see instead. These comments will be coded for expectations, preferences and
perceptions, and compared to the survey questionnaires to determine true expectations of Sage diners, and
what if any difference in preferences they exhibit in the abstract (survey form) and in the practical (comment
cards while choosing food).

Feedback Solicitation Plan: Feedback will be solicited through a questionnaire survey given out at McKinstry
Dining Hall, Thyme Caf and Lucilles Caf at various dining hours, once during breakfast (starting 9:00 AM)
once at lunchtime (starting 12:00 noon) and once at dinner (starting 6:30 PM) for one week. This will enable us
to determine what segments of the Sage population use which dining option (meal swipes or a-la-carte), and
when, and their overall satisfaction with the healthy food choices offered by campus dining. Optimally, each
survey time would give us fifteen responses for a total of 45 from each dining location per day, for a grand total
of 135 each day. This is a very optimistic number, and it is possible that we would only get ten responses at each
time, for a total of 90 from all eateries throughout the day. While not optimal, 90 per day (or 630 per week)
would be an acceptable number to work with.

Expected Results: We expect that the overall level of satisfaction in the healthy eating options of the Sage dining
services will be rather low, and that the customers will list fresh, wholesome and natural ingredients as
desirable and ideal. We expect that they will express that the current food choices offered on campus do not
meet their needs for healthy options, and that they would need to see more options for fruit and healthy treats in
order to become more satisfied diners. We expect that the diners would like to see more control over their food
options, especially with regards to the healthy food choice options, and that they would like the Sage dining
services to provide them with a way to meet their needs for healthy eating in a personal way. We expect that the
Sage community does not feel that they have any control over their healthy food options, and that this leads to
less satisfaction.

We expect that a made-to-order smoothie bar would meet the needs of the Sage community for a healthy dining
option. We expect that the Sage community would have to see a variety of fruit and add-in options for smoothies
in order for them to feel as though their personal health food preferences would be met. We expect that the Sage
dining community would have to see protein, energy and superfood supplements as add-ins in order to feel as
though their need for customization had been met. We also expect that the Sage community would express that
there would need to be comparable options for those with dietary restrictions, in order for the smoothie bar to

meet the needs and expectations of truly healthy and customizable eating options on campus.

Example of Feed Back Questionnaire:

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.

Healthy Dining at Sage: Questionnaire

What is your idea of healthy dining offerings on campus?
What is your level of satisfaction with the healthy food choice options dining services offers on campus?
What would you have to see in the healthy food choice options to be a more satisfied diner?
How well do the healthy food choice options offered by the Sage dining services meet your expectations?
What healthy food choice options, specifically, do you expect to be offered from Sage dining services?
How adequately do you feel that the Sage dining services meet your healthy food choice needs, and why?
How customizable do you feel the Sage dining options are?
How well do you feel that your individual or personal preferences are met by the healthy eating options offered by
Sage dining?
If Sage dining services offered a made-to-order smoothie bar, would you feel as though your needs for healthy eating
choices on campus had been met?
What options would the made-to-order smoothie bar have to have for your healthy food choice needs to be met?
What add-ins, if any, would you like to see offered by this made-to-order smoothie bar?
If there was a made-to-order smoothie bar on campus, what elements would it have to have for you to frequent it?
What sort of rewards/loyalty system would you like to see the made-to-order smoothie bar have?
Tell us a little about yourself!
-Age, faculty/staff/graduate/undergraduate, full-time, part-time, commuter, living on/off campus, preferred place to
eat on campus

Example of Comment Card:

Company Summary
The Smoothie Shop, which will be located in Thyme Caf in Buchman Pavilion, will sell customizable smoothies in its 98.3
square foot counter bar style operation on the campus of Russell Sage College. The Smoothie Shop will be open from 8:00
a.m. to 5:00 p.m. Monday through Friday. These hours of operations would be well-suited for the high traffic periods of
the week, capturing a large portion of the market.
The operation will consist of two Vita-Mix Blending Station Advance smoothie blenders that will be programmable for
ease of use, additional blender pitchers to accommodate high volume of traffic if needed, and a Vita-Mix Rinse-O-Matic
sink setup for easy and efficient washing and sanitizing of the blender pitchers. There will be a refrigerator for the dairy
and non-dairy milks and yogurts, a chest freezer for frozen fruit, and a measured dispensing system for add-in powders.
2.1 Procurement Plan
When first opening operations, The Smoothie Shop would have acquire sweeteners, dairy and non-dairy milks and
yogurts, juice, and fruit to be on hand as staples. All items would be purchased through Sysco via a contract. The add-ins,
being the specialty items that they are, will be purchased from two reputable vendors, without a contract. These vendors
are Bulk Supplements and The Vitamin Shoppe. From Bulk Supplements we would obtain the whey powder, spirulina and
caffeine while the hemp, vegetable protein powders, green tea power, cocoa powder, and the wheatgrass powder will be
purchased from the Vitamin Shoppe. These items will be purchased in large quantities instead of contract due to the fact
that the serving size is relatively small and buying the add-ins on contract is not necessary. In addition, not having a
contract for our add-ins will allow us to change which add-ins the business has on hand based on the changing
preferences and desires of the customers. This will allow the business to grow and change along with the health desires of
future customers.
2.1 Proposed Starting Inventory
The Smoothie Shop will have a starting inventory comprised of the items found in Appendix 1. The proposed starting
inventory cost is $893.93 which is the cost of the fresh and frozen fruit, the dairy and non-dairy yogurt and milks, the
sweeteners and the add-ins.
2.2 Proposed Starting Investment
The estimated starting investment needed for this business venture is comprised of the three following pieces; the
renovations, the equipment, and the initial marketing strategies. While marketing will be a yearly component of the
business, the startup marketing is separate.
Equipment: $4,621.53
Item

Number

Cost Per Item

Total Expense

Vitamix Blending
Station Advance

$495.00 $ 990.00

Vitamix Blender
Pitcher

$80.00 $ 160.00

Vitamix Rinse-o-Matic

$159.39 $ 159.39

Casio SE-S700 Cash

Register

$59.99 $ 59.99

Unitech MS240 Credit

Card Reader

$60.49 $ 60.49

Avantco HF14 14 cu. ft.

chest freezer

$433.99 $ 433.99

Avantco Hanging
Basket

$21.99 $ 109.95

Danby Compact
Refrigerator

$434.75 $ 434.75

Avantco CFD-1RR
Standing Fridge

$1,279.00 $ 1,279.00

Regency 16-guage
stainless steel drop-in
sink

$354.99 $ 709.98

Advance Tabco DI-1-

15-15 drop-in
handwashing sink

$223.99 $ 223.99

Marketing: $1,261.77
Marketing Tactic

Cost

Samples

$101.08

Loyalty Cards

$138.00

Coupons

$90.00 per month

Renovations: $35,000 (See Below)

The space that The Smoothie Shop will be set up in is in the back space in Thyme Caf, where the soda fountain, water,
condiments and iced tea are set up. On this counter there are also trays and utensils which will have to be moved as well.
The trays, utensils and condiments will be moved to a small rack over closer to the sandwich station, for easy access for
the students interested in the deli items. The soda fountain and the iced tea will be moved around the corner, onto the
coffee counter, across from the pastry counter. There is enough room for the soda fountain and tea over next to the
coffees, with the sweeteners and other utensils moved to a rack on the wall. This is a good location for these drinks as the
Thyme Caf employees will be better able to keep an eye on the beverages and cut down on the possibility of theft. The
waters with fruit will be moved to the counter space in between the coffee brewing machine and the soup warmer.

The renovations themselves will involve reversing the direction that the doors open to allow for a second counter to be
installed. This is the counter where customers will order their smoothies, and where the cash register will be. In addition,
the current counter will be resized to allow for more room for the employees to work. A large storage fridge would be
placed in the left corner of the space, where the back-stock of yogurts, milks and fruit juices would be. A second fridge will
be installed below the back counter where the yogurts and milks currently being used for smoothie preparation will be
kept. This will reduce the opening and shutting of the large fridge, saving energy, and allow for the ingredients to be more
accessible during the rush times. There will be cabinets below the counters for dry storage. The blenders will be set up
between the fruit sink, at the left end of the counter, to the right of the storage fridge, and to the left of the dish washing
sink, set in the right-hand corner of the back counter. A large chest freezer would be placed along the wall with the doors,
and the frozen fruit will be stored in here. In addition to these physical changes, water will need to be piped for three
sinks the hand-washing sink, the dish sink and the fruit washing sink and electric will have to be run for the
refrigeration/freezer units. Wall mount lights will be added to give the space a gentler feel than the current overhead
lighting. The color scheme will be warm red/orange tones to create a welcoming atmosphere. (See Appendix 2)




2.3 Marketing Tactics

st
1 week free samples: During the first week of operations after the grand opening of The Smoothie Shop, we will
offer free samples of three types of smoothies; Berry Peach, Strawberry Fields, and Peachy Mango. Each customer
will be offered one free sample per visit each day. The sample size will be a 1 oz. cup. Samples will only be offered the
first week to try and recruit customers to come in and taste our smoothies.

Loyalty card: We will sell loyalty cards that will target our frequent customers. The loyalty card will be available for
purchase for $30.00 dollars each. The benefit of having this loyalty card is that once a month, upon the presentation
of the card the customer will receive a free featured smoothie, totaling up to be 11 smoothies as year (operation is
closed during December). The featured smoothie will be decided on by operation managers at the beginning of each
month.

Coupons: Through the first week of each month, The Smoothie Shop will give one coupon to each customer with
every purchase. The coupons must be used within the month that it was distributed. Only one coupon per person is
allotted. The coupons may vary each month. Examples of the coupons include and are not limited to, a free add in,
25% off total purchase, $2.00 dollars off your favorite smoothie, and so forth.


Financial Information
3.1 Marketing Cost
Samples: $133.77
Loyalty Cards: $138
Coupons: $90 per month

Samples: About 168 sample per day: $101.08 for the week, plus $32.69 for sample cups. Free samples will convince
about 50 people to purchase smoothies who otherwise would not. This will generate an additional $135.50.
Loyalty Card: We would print about 500 loyalty cards, which would cost about $138. If we sell 200 at $30 each that
would generate $6,000. We predict that the 200 people that bought the cards on average get 9 of their free
smoothies during the year that would cost us $4,662.00, with a profit of $1,338.00. If 100 of the people who bought
the loyalty cards purchase one additional smoothie each month in addition to their free one, that will generate
additional revenue of $271.00 each month.

Coupons: We will print about 500 coupons, which would cost about $90 a month. It will cost $990 to print coupons
for the 11 months we are open. For the first month if we give away coupons that give 25% off our customers
purchase, they will be able to purchase a smoothie for $3.19. Assuming that the incentive of coupons would entice
approximately 250 customers to purchase smoothies who otherwise would not have, we would make $150.00 in
profit from the smoothies purchased with the coupons, and $677.50 in profit from the smoothies purchased to obtain
the coupons. This is a total of $827.50 of additional profit each month, totaling $9,102.50 for the year. Accounting for
the cost of printing the coupons, the additional profit from the coupon promotion will be $8,112.50.

3.2 Menu Cost and Planning

The menu will consist of a standard set of smoothies, as follows:

Triple Berry (blueberries, raspberries and strawberries)

Peachy Mango (peaches and mango)
Mango Pineapple (mango and pineapple)
Jamaican (banana and pineapple)
Berry Peach (peaches, raspberries and banana)
Apple Country (sweet apple, peaches and pears)
Strawberry Fields (peaches and strawberries)
Berry Cherry (cherries, strawberries and blackberries)
Matcha Melon (honeydew melon, sweet apple and matcha green tea powder)
Kiwi Strawberry (kiwi, strawberries and banana)
Tropical Delight (mango, pineapple and papaya)
Chocolate Covered Cherries (bananas, cherries and cocoa powder)
Slushies (replace the yogurt and milk with fruit juice, and some of the frozen fruit with crushed ice for a refreshing
summer option)

The cost of the yogurt or milk base product for a smoothie is $0.98 while the cost of one serving of fruit ranges from $0.20-
$1.09 making the average $0.64. This means that the average smoothie has a cost of $2.33, as a smoothie is comprised of two
servings of fruit. The smoothies on the standard menu consist of the more expensive fruit but are paired with less expensive
fruits such as bananas to keep food costs low.

The full costing of the menu can be seen in Appendix 3.


3.2 Break Even Analysis
Fixed Costs:
Renovation: $17,500 (Total: $35,000, half paid by school)
Marketing: $1229.08
Equipment: $2,310.77 (Total: $4,621.53, half paid by school)
Labor: $41,863.68
Total: $62,903.53


Fixed Costs
$123, 340.25
Break Even =
Break Even =
= 23, 271.75
1 variable cost %
$5.30

Break Even =

$62, 903.53
2x15 weeks per semester + 2 weeks for summers session = 32 business weeks
. 51

Break Even = $ 123, 340.25

$23,271.75
= 728 smoothies needed to be sold each week
32 business weeks

728 smoothies needed to be sold

= 146 smoothies needed to be sold per day
5

In order to break even, over the course of the year, the business would need to sell 23,272 smoothies. To reach this
goal, 727 smoothies would need to be purchased each week for a total of 32 weeks. When broken down per day, 146
smoothies would need to be sold each day.

In order to see if this can be achieved, looking at the enrollment on the campus of Russell Sage is key. By the current
enrollment rate, there are plenty of potential customers to allow the business to break even during the first year.
- Undergraduates- 700
- Graduates- 150
- Faculty- 71
- Other employees- 120
- Total: 1040
3.3 Right Pricing

Our price for a typical smoothie is $5.30.

The average cost to make one of our smoothies is $2.59 making the average margin on one of our smoothies $2.71.
In and around the Troy area, there are numerous competitors that are also selling fruit smoothies. They offer different sizes,
some of which are smaller and some that are larger and thus more expensive. All of our competitors whom we examined make
their smoothies with a combination of yogurt, fruit juice, milk, and real fruit. Our smoothies are 20 oz. Our competitors, who
also sell a 20 oz. smoothie or similar size, sell their smoothies for about $3.89-$4.99. Our price therefore is typical and
reasonable.
The market for fruit smoothies is large. Fruit smoothies are a healthier and tasty option for consumers. It attracts many people
because of its nutrition and various flavors. People are becoming more health conscious and want to enjoy a product that is
delicious and healthy.
3.4 Measureable Results

Employee

Full Time
or Part
Time

Monday

Tuesday

Wednesday

Thursday

Friday

Total
Hours Per
Week

Transactions per Labor Hour (Weekly Transactions/Weekly Hours Scheduled): 6.28

Sales per Labor Hour (Weekly Revenue/ Weekly Hours Scheduled): $33.26
Labor as a Percentage of Sales (Weekly Hourly Labor with T&B/Weekly Revenue): 34%
Food Cost as a percentage of sales: 49%

These are the KRIs that we will track weekly to ensure that the margin is in line with our annual budget. By tracking these KRIs
weekly, we will be able to make changes quickly and efficiently to respond to the changing market.

Supervisor

Full Time

7:00 a.m.-
3:30 p.m.

OFF

7:00 a.m.-3:30
p.m.

7:00 a.m.-
3:30 p.m.

7:00 a.m.-
3:30 p.m.

32

Smoothie Tech
1

Part Time

9:00 a.m.-
5:30 p.m.

9:00 a.m.-
5:30 p.m.

OFF

9:00 a.m.-
5:30 p.m.

OFF

24

Smoothie Tech
2

Part Time

11:00 a.m.-
3:00 p.m.

12:00 p.m.-
5:30 p.m.

8:00 a.m.-12:00
p.m.

OFF

11:30 a.m.-
5:30 p.m.

19.5

Smoothie Tech
3

Part Time

OFF

7:00 a.m.-
12:00 p.m.

12:00 p.m.-5:30
p.m.

OFF

7:00 a.m.-
12:00 p.m.

15.5

Smoothie Tech
4

Part Time

2:00 p.m.-
5:30 p.m.

11:00 a.m.-
3:00 p.m.

OFF

1:00 p.m.-
5:30 p.m.

12:00 p.m.-
5:30 p.m.

17.5

Smoothie Tech
5

Part Time

OFF

OFF

12:00 p.m.-5:30
p.m.

11:00 a.m.-
4:00 p.m.

OFF

7.5

The annual budget is based on weekly transactions of 728 smoothies being bought at an average of $5.30 totaling weekly
revenue of $3,358.40. With the food cost percentage of 49%, the food cost budget is $1,890.62 and a general expense
percentage of 12%, the general expense budget is $463.01. This brings the total weekly cost to $2,353.62. The available weekly
budget is then $1,504.78. The total weekly hourly labor cost is $1,308.24. The weekly margin is therefore a profit of $196.54.
Annually this is a profit of $6,289.28. (See appendix 4)
Operations

4.1 Scheduling and Staffing
4.2 Job Descriptions

Smoothie Tech the duties of a Smoothie Tech involve: taking smoothie orders and ringing customer orders up on a
cash register; preparing made-to-order smoothies; washing, sanitizing and maintaining smoothie equipment; serving
smoothies to the patrons, and general customer service; setting up the smoothie bar and breaking down/cleaning the
smoothie bar. Smoothie Techs should be able to understand the importance of food safety protocol as it pertains to
food allergies, and should be able to become familiar with the menu and be able to answer customer questions. Fully
loaded hourly wage is $10.98 for all smoothie techs.

Full Time Supervisor- the duties of a Full Time supervisor include taking smoothie orders and ringing customer orders
up on a cash register; preparing made-to-order smoothies; washing, sanitizing and maintaining smoothie equipment;
serving smoothies to the patrons, and general customer service; setting up the smoothie bar and breaking
down/cleaning the smoothie bar. Supervisors should be able to understand the importance of food safety protocol as
it pertains to food allergies, and should be able to become familiar with the menu and be able to answer customer
questions. Supervisors should be able to manage a team and make sure all protocol and rules are being followed.
They also should demonstrate proper employee techniques as they are a leader during work hours. They should be
able to delegate task, monitor the teams performance, help with training and development, complete paperwork,
handle complaints and reporting to senior management. Fully loaded hourly wage is $12.06 for the full time
supervisor.

4.3 HAACP Plan

The following HAACP inspection (4.3a) will be carried out by the Supervisor twice a month to ensure that the facility is
up to par in various categories. Corrective action will be reported in the following table (4.3b) after results are
examined and all problems must be fixed within seven days of inspection.


4.3a table:

HACCP Assessment Inspection Form

Date:

Points Available

Points Received

Improvements Needed

Time:

Inspector:
Location:

Personal Hygiene:

Are gloves worn by employees?

Are employees wearing jewelry?

Are employees uniforms clean and worn

correctly? (Including proper shoes?)

Are employees hair restrained by a kitchen

hat or a hairnet?

Do employees look to be in good health?

Do employees wash hands?

Do employees know when to wash their

hands?

Are there wash stations near work areas?

Are wash stations stocked properly with

paper towels and soap?

Facility:

Is the facility well lit?

Is the facility ventilated properly?

Does the facility appear to be clean to the

eye?

Are surfaces clean (walls and floors)?

Are all items stocked for the customers?

(Napkins, straws, etc.)

Dry Storage:

Are items stored at the correct temperature?

(50 -70 F)

Are all items stored off the floor?

Is foo stored away from chemicals?

Is there a method of organization in place?

(FIFO: first in, first out)

Are all foods labeled?

Refrigeration & Freezers:

Are thermometers readily available and

visible?

Are temperatures appropriate?

Refrigeration: 0-5 C
Freezers: -18 or colder

Are temperature logs kept for both places?

Are units clean?

Is there are method of organization within

the units?

Are all foods wrapped and labeled?

Are separate utensils used for each smoothie

being made? (Ex. different scoops for add ins,
different utensil for peanut butter, or milk)
Are the fruits washed properly before use?

Are there separate cutting boards for

different fruits?

Are employees knowledgeable of food

allergies?

Do employees change their gloves regularly

when preparing different smoothies?

Cross Contamination:

Time & Temperature Controls:

Are temperatures checked every 4 hours?

Cleaning and Sanitation:

Is the dishwashing station clean?

Are there buckets filled with corresponding

sanitations or soap for cleaning in the
kitchen?
Are wiping cloths stored in solutions while in
use?

Are the solutions mixed correctly and tested

for chemical concentrations?

Is there a compartment sink for cleaning?

Is the sink properly set up (rinse, wash,

sanitizing)?

If there is water in the sink, is it clean?

Utensil & Equipment Washing:

Are work surfaces clean to the eye?

Are work surfaces cleaned and sanitized

after each use?

Are drawers/shelves/racks/storing units

clean?

Are utensils and small equipment air-dried?

Are the utensils and equipment handled and

put away properly?

Is equipment washed after each use?

Is there a cleaning checklist to do daily or log

that is kept?

Purchasing/Receiving:

Does an employee check all items for dents

or damage before putting them away?

Do foods go straight to refrigeration after

being brought off the truck?

Do employees check truck refrigeration

temperatures?

Are foods separated appropriately on trucks?

Pest Prevention:

Is there evidence of pests present?

Is there a regular schedule of pest control by

a pest control operator?

Are all windows, doors, and screens in good

condition?

*A grade of 83/97 which is 85% is needed in

order to receive a passing grade.

Total Points Available:

Points earned:

Pass/ Fail Result:

97

Inspector Signature: Manager Signature:

4.3b table:
Critical

Hazard/

Corrective Action

Monitoring

Verification of

Control Point

Observed
Challenged

What

Who

How

Frequency

Completion

4.4 Product Flow Chart

The Smoothie Shop

HAACP Production Flow Chart
Frozen
Fruit, Ice

Fresh Fruit,

Dairy (Milk,
Yogurt)

Dry Goods (sugar, honey,

add-ins) and 100% juice
cans

Receiving

Freezer
Storage

Cooler Storage

Dry Storage

Preparation

Taken out of freezer when

needed:
- 2 cups of f ruit for simple
smoothie
- 1 cup of fruit for slushie recipe

Taking out of dry storage when needed:

- Sugar/honey is available as optional to
customer
-Add-ins are on request

Taken out of cooler storage when needed:

-1/2 cup yogurt needed for simple smoothie
-1 cup milk needed for simple smoothie
-1 cup 100% fruit juice needed for slushie recipe
-2 cups fruit needed for simple smoothie
-1 cup fruit needed for slushie recipe

Creation of smoothie

Given to customer

Potential Hazards

Critical Limits

Monitoring Processes

Corrective Action

Cross Contamination

Employees not changing

gloves, using dirty
equipment, not sanitizing
correctly, using wrong
scoops

The supervisor on duty

would do visual checks
every day to ensure that
procedures were being
followed

Staff Retraining

Misuse of TCS foods

Fridge/freezer
temperatures

The supervisor on duty

would check the fridge
and freezer logs to make
sure that temperatures
were being recorded
accurately

Staff Retraining

4.5 Recommended Future Actions

Comment cards and other customer feedback would influence how our business changes and what actions are taken. If the
business is a success and the sales of our smoothies are high, we could make additions to our shop. We could expand the
selection of our smoothies to include other flavors that our competitors may have but we dont. This could help satisfy our
customers by providing more flavors that they would like to see in the operation. If the demand is high for our product, we
could also possibly increase the prices of our smoothies. Increasing the prices of our smoothies would generate more revenue
and allow us to make further improvements and changes to our business. We could also purchase additional equipment if
needed to provide for the increased demand. Additional revenue would also enable us to do more marketing and promotions
to hopefully increase business further.

If business wasnt as successful as we would have wanted, we could also make some changes. We could change items that are
already on the menu or replace those with different flavors that the customer base may like better. We would find out this
information from customer comment cards. To draw in more customers we could lower the prices of our smoothies to entice
customers. In addition, we could spend more time and money on marketing and promotions. We could make more flyers and
advertise our business more. We could have special offers and additional coupons.