Do you want to open a salad bar as a franchise and have you already chosen your brand and done your market research? You must now write a business plan to obtain financing for your business creation project. Here are the 5 steps to follow to write the business plan for your franchise salad bar.
Present the team and the creation of the salad bar project
Bankers first follow and finance a project manager before financing a project. They must actually verify what is designated by “man/project adequacy”. This is why the first part of a salad bar franchise business plan, like any business plan, is always a presentation of the project and the teams behind it.
In the case of a salad bar, franchisors, for their part, often expect candidates to be sensitive to nutrition, health, wellness and the environment.. And with good reason, since salad bars are part of the healthy food market, these questions are at the heart of the project.
But whether on the franchisor’s or the banker’s side, an attraction for environmentally responsible activities that contribute to well-being is not enough : you still need to have the necessary skills to manage a restaurant and its team.
It is therefore it is always preferable to have experience as a manager and/or manager of a profit center.
Here’s what you should include in this first part of your franchise salad bar business plan:
- Your professional background and experience as well as your skills;
- The motivations that led you to open a salad bar.
This last part especially gives you the opportunity to introduce your market research.
Introduce local market research
The salad bar franchise you have chosen has a legal obligation to give you a general state of its market before you sign the contract. You can therefore use this general market condition to introduce this part of your salad bar business plan.
However, if you have followed the criteria in our article entitled “Choose your salad bar franchise”, you know that the study of the local market necessarily precedes the choice of brand: it is actually necessary to choose the salad bar franchise that is best adapted to the catchment areato its socio-demographic characteristics as well as to the already established competition.
So you have to keep showing why you have chosen the brand you have chosen in your catchment area. And this, regardless of whether it is generalist, specialist, organic, conventional, classic or exotic.
The purpose of this part of your business plan is to demonstrate the relevance of establishing a new salad bar in the targeted catchment area. And this, knowing that salad bars cater to an urban, active, young clientele and dynamic, with a strong purchasing power of preference.
- Does the target catchment have enough leaders?
- Is there a university campus in the target catchment area?
- What is the average household income in the target catchment?
- Who are the competitors (placed in the healthy segment)?
This first approach makes it possible to determine the revenue potential of the healthy restaurant. For the second time, it is also necessary to present the room or at least the targeted establishment area if the room has not yet been selected. And this to demonstrate the potential of this location in terms of traffic and socio-demographic characteristics of users.
Highlight the commercial and communication strategy
In franchising, the commercial strategy as well as the national communication strategy of the salad bar is determined by the chosen brand.. This part of the business plan for your salad bar is therefore a transcription of the franchise’s positioning and strategy.
However, you must also specify the local communication strategies that you plan to put in place, especially to ensure a good start to the activity.
- Event tastings (on the street, in companies or higher education institutions, etc.);
- Introductory promotional offers;
- Communication on social networks;
- Sponsorship system;
- Distribution of flyers;
Local communication is actually a privilege of the franchisee and not the franchisoreven if the latter can help guarantee success for the members of his network.
Demonstrate the economic model and financial forecasts
Like the communication strategy and the commercial strategy, the financial model of a franchise salad bar is the brand’s. However, the reality will largely depend on the rates negotiated with local suppliers, the size of the investments made to furnish the restaurant’s premises, as well as the catchment area.
This is why you need to take data from your local market research, your financing plan as well as your sales forecasts to cross them with data from the franchisor to develop, in consultation with the latter, realistic financial forecasts that will serve both to convince your banker and serve as a guide, a management tool to manage your salad bar.
- Investments to be made;
- Financial plan;
- Cash flow plan for the first year;
- Forecast balance and profit and loss statements for the first three years.
Here are the essential accounting documents to complete the business plan for your franchise salad bar.
In this part, you will demonstrate how to monetize your salad bar.
Write the summary
Finally, write an initial summary of your franchise salad bar project: this is the executive summary. Clear, concise and complete, it summarizes in a few lines the main points of your business plan, to which it forms the introduction, to seduce the banker and make him want to read the rest. That’s kind of the pitch for your salad bar project.