business plan for a frozen food company

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How to Start a Frozen Food Business

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Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on April 7, 2022 Updated on March 13, 2024

Investment range

$6,550 - $13,600

Revenue potential

$130,000 - $390,000 p.a.

Time to build

Profit potential

$39,000 - $156,000 p.a.

Industry trend

As people stay home more, frozen foods are booming, with the market experiencing impressive double-digit growth. So if you have some real culinary skills, or just a few recipes you’ve always to share with the world, you could start your own frozen food business and grab a share of this thriving market. 

But succeeding will take more than just ideas. You’ll need to understand what you’re getting into from an entrepreneurial perspective. Luckily, this step-by-step guide details everything you need to know about launching a successful business.

Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.

Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services .

Step 1: Decide if the Business Is Right for You

Pros and cons.

Starting a frozen food business has pros and cons to consider before deciding if it’s right for you. 

• Hot Market – Frozen foods are growing in demand
• Flexibility – Run your business from home
• Creative Path – Experiment and create new recipes
• Manufacturer Needed – Finding a white-label manufacturer is challenging
• High Startup Costs – Inventory and other items are pricey

Frozen food industry trends

Industry size and growth.

• Industry size and past growth – The global frozen food industry was worth $256.46 billion in 2021 after growing nearly 11% the previous year.(( https://www.fortunebusinessinsights.com/frozen-food-market-104138 )) 
• Growth forecast – The global frozen food is expected to grow more than 50% by 2028. 
• Number of businesses – In 2022, 567 frozen food production businesses are operating in the U.S.(( https://www.ibisworld.com/industry-statistics/number-of-businesses/frozen-food-production-united-states/ )) 
• Number of people employed – In 2022, the US frozen food production industry employs 97,383 people.(( https://www.ibisworld.com/industry-statistics/employment/frozen-food-production-united-states/ ))

Trends and challenges

Trends in the frozen food industry include:

• Millennials are driving much of the growth of the frozen food industry, demanding frozen meals made with premium ingredients.
• The American Frozen Food Institute predicts that growth will continue in the industry due to innovations in foods that meet specific dietary needs, such as plant-based foods and immunity-boosting foods. Frozen foods for the weight-conscious, such as Lean Cuisine, are also popular.
• The fastest growing frozen food categories are seafood, poultry, and appetizers.

Challenges in the frozen food industry include:

• Safety concerns with the manufacturing of frozen foods make it imperative for new frozen food businesses to thoroughly investigate their manufacturing partner. 
• Supply chain issues surrounding organic ingredients are causing delays in production for some frozen food manufacturers. 

Consumer spending

• Average consumer spend – The average person in the US spends $53.81 on frozen meals annually.(( https://www.statista.com/statistics/253730/us-expenditure-on-frozen-meals/ ))
• Potential customer base – 72% of consumers in the U.S. consume frozen foods.(( https://affi.org/frozen-foods-are-a-pandemic-powerhouse/ ))

How much does it cost to start a frozen food business?

Startup costs for a frozen food business range from $6,500 to $13,000. Costs include your initial inventory, a commercial-grade freezer, and shipping supplies.

When you start your business, you can take two different approaches. You could order a small number of your products (the smallest your manufacturer will allow) so that you have samples. Then you can go to local grocery stores and pitch your product to see if they will order the product to stock. This can be a challenge since the freezer aisle is the most competitive aisle in the grocery store. However, if you can achieve this, you can have your products shipped directly to the stores and you don’t have to hold inventory.

Your other option is to sell directly to customers online, in which case you will need to order a stock of inventory from your manufacturer and store it in a commercial freezer. Packaging frozen food for shipping is challenging and expensive, but this is probably the best way to start selling your products faster. Later, once you’ve proven that people will buy your products, you can pitch it to grocery stores citing your proven track record.

How much can you earn from a frozen food business?

Prices for your products will depend on what you’re making. These calculations will assume an average sales price of $5. Your profit margin after manufacturing and shipping supply costs will be about 30%.

In your first year or two, you could work from home and sell 500 items per week, bringing in $130,000 in annual revenue. This would mean $39,000 in profit, assuming that 30% margin. If you land contracts with grocery stores, sales could climb to 1,500 products a week. Without the cost of shipping supplies, your profit margin could rise to around 40%. With annual revenue of $390,000, you’d make a tidy profit of $156,000.

What barriers to entry are there?

There are a few barriers to entry for a frozen food business. Your biggest challenges will be:

• Finding a reliable manufacturer
• The competition from large frozen food companies

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Step 2: hone your idea.

Now that you know what’s involved in starting a frozen food business, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

Research frozen food businesses online to examine their products, price points, and what sells best. You’re looking for a market gap to fill. For instance, maybe the local market is missing a gourmet frozen dessert business, a premium frozen fish company, frozen whole grain waffles, frozen concentrated soups or frozen vegan pizzas.  

You might consider targeting a niche market by specializing in a certain aspect of your industry, such as frozen meats in creative recipes, or frozen vegetables with a spicy twist.

This could jumpstart your word-of-mouth marketing and attract clients right away.

What? Determine your products or services

You can design your recipes and specialize in certain foods or create a variety of recipes. It’s probably best to start with just a few products to test the market.

How much should you charge for frozen food?

Prices vary based on the types of products you’re offering. Check the prices of similar foods to make sure that you’re competitive. You should aim for a profit margin after manufacturing and shipping supply costs of about 30%.

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market will depend on the types of products you offer, but generally it will be a very broad and diverse market. You should spread out your marketing efforts to include sites like TikTok, Instagram, and Facebook.

Where? Choose your business premises

In the early stages, you may want to run your business from home to keep costs low. But as your business grows, you’ll likely need to hire workers for various roles and may need to rent out a distribution facility. You can find commercial space to rent in your area on sites such as Craigslist , Cr e xi , and Instant Offices .

When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm a Frozen Food Business Name

Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “frozen food” or “frozen meals”, boosts SEO
• Name should allow for expansion, for ex: “Frozen Delights” over “Frozen Desserts”
• Avoid location-based names that might hinder future expansion
• Use online tools like the Step by Step Business Name Generator . Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these.

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Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Frozen Food Business Plan

Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:

• Executive Summary: A concise summary of the frozen food business plan, highlighting key points such as market opportunity, competitive advantage, and financial projections.
• Business Overview: An overview of the frozen food business, including its mission, vision, and the specific niche or target market it aims to serve.
• Product and Services: Detailed information about the range of frozen food products and services offered, emphasizing unique selling points and quality.
• Market Analysis: An examination of the frozen food market, including trends, customer needs, and potential growth, providing a foundation for the business strategy.
• Competitive Analysis: Evaluation of competitors in the frozen food industry, identifying strengths, weaknesses, opportunities, and threats to strategically position the business.
• Sales and Marketing: A plan outlining how the business will promote and sell its frozen food products, including pricing, distribution channels, and promotional strategies.
• Management Team: Introduction of key individuals involved in the business, highlighting their expertise and roles in ensuring the success of the frozen food venture.
• Operations Plan: Details on how the frozen food business will operate, covering aspects such as sourcing ingredients, production, packaging, and distribution.
• Financial Plan: A comprehensive financial overview, including startup costs, revenue projections, and profit margins, providing a clear picture of the business’s financial viability.
• Appendix: Additional supporting documents, such as market research data, resumes of key team members, and any other relevant information that enhances the frozen food business plan.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to frozen food businesses. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your frozen food business will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have.

Form Your LLC

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Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN.

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans : This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans : The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants : A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and Family : Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding : Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal : Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best option, other than friends and family, for funding a frozen food business. You might also try crowdfunding if you have an innovative concept.

Step 8: Apply for Frozen Food Business Licenses and Permits

Starting a frozen food business requires obtaining a number of licenses and permits from local, state, and federal governments.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits.

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more.

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your frozen food business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account.

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability : The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property : Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance : Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation : Provides compensation to employees injured on the job.
• Property : Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto : Protection for your company-owned vehicle.
• Professional liability : Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP) : This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.

You may want to use industry-specific software, such as marginedge , Prime , or acctivate , to manage your costs, inventory, invoicing, and payments.

• Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero . 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial. 

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using website builders . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

For your frozen food business, the marketing strategy should focus on highlighting the quality, convenience, and variety of your frozen products. Emphasize the freshness retained through freezing, the health benefits of your products, and the ease they bring to meal preparation. If applicable, showcase any unique or specialty items, such as organic, gourmet, or ethnic foods. Here are some powerful marketing strategies for your future business:

Kickstart Marketing

• Professional Branding : Your branding should convey quality, freshness, and convenience. This includes everything from your product packaging and logo to your online presence and marketing materials.
• Direct Outreach : Network with grocery stores, supermarkets, and specialty food stores to introduce your products. Attending food expos and trade shows can also be beneficial for building industry contacts and gaining visibility.

Digital Presence and Online Marketing

• Professional Website and SEO : Develop a website that showcases your product range, nutritional information, and any unique selling points. Use SEO best practices to optimize your site for search terms related to frozen foods, healthy eating, and quick meal solutions.
• Social Media Engagement : Utilize platforms like Instagram and Pinterest for visually appealing product showcases, and Facebook and Twitter for sharing customer testimonials, recipes, and food preparation tips.

Content Marketing and Engagement

• Food Blog : Share blog posts featuring recipes using your products, tips for healthy eating, and the benefits of frozen foods.
• Email Newsletters : Keep your customers informed about new product launches, special offers, and recipe ideas through regular newsletters.
• Video Content : Create engaging cooking shows or recipe videos that demonstrate how to use your products to make delicious meals.

Experiential and In-Person Engagements

• Product Sampling : Offer product tastings at grocery stores or food festivals to let potential customers experience the quality and taste of your products firsthand.
• Participation in Food Expos : Showcase your products at food expos and trade shows to reach a broader audience and network with industry professionals.

Collaborations and Community

• Partnerships with Food Bloggers and Influencers : Collaborate with food bloggers and influencers to review and promote your products, reaching a wider and more diverse audience.
• Community Involvement : Sponsor local events or engage in community projects, aligning your brand with health and wellness initiatives.

Customer Relationship and Loyalty Programs

• Loyalty Rewards Program : Implement a loyalty program that offers discounts or special deals to repeat customers.
• Referral Incentives : Encourage word-of-mouth marketing by offering incentives for customers who refer friends and family.

Promotions and Advertising

• Targeted Online Advertising : Use digital advertising platforms to target audiences interested in quick, healthy meal solutions and specialty frozen foods.
• Retailer Promotions : Work with retailers to offer in-store promotions, discounts, or featured product placements.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your frozen food business meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire.

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your frozen food business could be:

• Gourmet frozen vegan pizza you have to taste to believe!
• Where’s breakfast? It’s ready in five minutes! 
• Freshly frozen vegetarian delicacies 

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a frozen food business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in frozen foods for years and can offer invaluable insight and industry connections.

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in frozen foods. You’ll probably generate new customers or find companies with which you could establish a partnership. 

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a frozen food business include:

• Distribution Center Workers – package foods for shipping
• General Manager – ordering, inventory management, accounting
• Marketing Lead – SEO strategies, social media

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run a Frozen Food Business – Start Making Money!

Ready to join the frozen food renaissance? Frozen foods are a booming industry, so now’s the perfect time to get in on the action. You just need a unique concept and great recipes, and you can find a manufacturer to do your production and packaging. Frozen food is a business that has the potential to grow fast, so your frozen food brand could become a household word!

You’ve got the entrepreneurial know-how, now it’s time to start putting those recipes together and putting your frozen food business on the road to success.

• Frozen Food Business FAQs

Yes, a frozen food business can be profitable. You just need great products and a reputable manufacturer. You can start by selling online, and eventually get contracts with grocery stores to stock your products.

Packaging frozen food for sale requires special considerations to maintain the quality and safety of the products . The packaging materials should be suitable for freezing, such as polyethylene or polypropylene, and should be able to protect the food from freezer burn and moisture.

The packaging should be sturdy enough to withstand handling and shipping, and the products should be kept frozen during transit. Dry ice or gel packs can be used to maintain the temperature during shipping.

Effective marketing strategies for promoting a frozen food business include showcasing the quality and taste of the products through eye-catching packaging and appealing food photography. Utilizing social media platforms such as Instagram and Facebook to share photos, recipes, and promotions can also help build brand awareness and engage with potential customers. 

Training should include topics such as proper handling, storage, thawing, and cooking techniques. It’s also important to train employees on how to identify and respond to food safety hazards, such as cross-contamination and temperature abuse. 

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• Decide if the Business Is Right for You
• Hone Your Idea
• Brainstorm a Frozen Food Business Name
• Create a Frozen Food Business Plan
• Register Your Business
• Register for Taxes
• Fund your Business
• Apply for Frozen Food Business Licenses and Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Run a Frozen Food Business - Start Making Money!

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Frozen Food Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Food Industry » Cold Room & Frozen Foods

Are you about starting a frozen food business ? If YES, here is a complete sample frozen food business plan template and feasibility report you can use for FREE .

Sincerely, if you are interested in the food industry, the frozen food sector is a good one to give consideration especially if you live in a city. Indeed there are many things you can market in this industry such as fruits, vegetables, meat, chicken, turkey, fish, candy etc.

If you plan to start this business, you need to conduct a market research to understand what the people in your locality need. The major reason for starting a frozen food business is to meet the frozen food needs of your target market by selling to them at a profit and also satisfying their needs.

The success of a frozen food business solely depends on developing a product that holds up well when it is frozen and also developing a business infrastructure that can package, hold and deliver frozen food.

Also it is important to note that marketing frozen food involves standing out in a fiercely competitive environment because retail freezer space is limited and expensive to maintain.

A Sample Frozen Food Business Plan Template

1. industry overview.

It has been estimated that the global frozen food market size exceeded USD 250 billion in 2015. This is because busy lifestyle coupled with shifting preferences among consumers towards ready to cook meals owing to convenience and hygiene has remained a key driving factor for the overall industry.

Compared to the fresh ones, these products contain maximum vitamins and minerals. It is believed that this is because freezing preserves the products for extended periods without any preservatives and prevents microbial growth that causes food spoilage and massive disposal.

It has been discovered that online purchase of frozen food is gaining popularity across developed nations, and this will have a positive influence on the overall industry over the next eight years. These facts will also help in increasing the shelf life of fruits and vegetables.

Also, availability of commercial and industrial freezing is further expected to boost the industry’s growth. It is important to note that the large unorganized industry participants, particularly in China and South East Asian countries, face great challenges regarding their price offerings and product quality as compared to large multinational corporations.

Also high maintenance and logistics costs are believed to pose a hindrance for the industry participants over the forecast period and years. It is believed that the market for fruits and vegetables will continue to enjoy increased momentum as the leading manufacturers help in commercializing the benefits of fruits & vegetables as part of healthy diet.

Due to their busy lifestyle, the consumers nowadays want to get rid of the fresh vegetable concept. As a result, the processors are indulging themselves in innovating garnished, spiced and seasoned fruits and vegetables, which can tantalize the taste buds of consumers.

2. Executive Summary

Cistus and Daniella Morgan have been very relevant in the food industry for decades. Both opened their first restaurant in New York City in 1996 and their second in Ontario Canada in 2005.  They have been praised for the quality of many of the items on their menu and they have attained a special notoriety for their desserts.

After years of request for their flavoured whipped cream toppings, they have decided to start marketing these products separately from the restaurants. They have also developed several recipes for flavoured whipped cream topping. This unique couple has developed wonders like chocolate, raspberry, cinnamon almond, and strawberry.

These flavoured dessert toppings have been used in the setting of their two restaurants over the past 10 to 15 years, and have been produced in large quantities for their unique customers.  The estimated shelf life of the product is 21 days at refrigeration temperatures and up to six months when frozen.

We at ColdFoods Inc. plan to market the product in the frozen state in 8 and 12-ounce plastic tubs.  We also plan to have the products available in six ounce pressurized cans.

We believe that special attention has been given to developing an attractive label that will stress the freezing nature of our products. We believe that the distribution of our unique product will start in the local south-eastern Oklahoma area.

We at ColdFoods believe that our business has an established name and reputation in this area, and product introduction should encounter little resistance. Adequate research and projections show that the company will have both a positive cash flow and profit in the first year.

3. Our Products and Services

Cistus and Danielle Morgan have developed several recipes for flavoured whipped cream topping which include chocolate, raspberry, cinnamon, almond, and strawberry.  It is believed that these flavoured dessert toppings have been used in the setting of their two restaurants over the past 10 to 15 years, and have been produced in large quantities.

We at ColdFoods Inc. intend to serve our customers with cold dessert and seafood. We at ColdFoods Inc. currently provide numerous seafood products to restaurants in South Eastern Oklahoma. We also plan to focus on popular seafood selections that will bring customers into the store. ColdFoods Inc. will have the following retail products:

• flavoured whipped cream topping
• Chopped Potatoes
• Jumbo Fresh Gulf Shrimp
• Alaskan King Crab
• Florida Lobster
• Sea Scallops
• Fresh Gulf Fish Fillets
• Yellowfin Tuna

4. Our Mission and Vision Statement

• The mission at ColdFoods Inc. is to provide the residents and visitors of Oklahoma with an upscale store that offers seafood and flavoured whipped cream topping delicatessen specializing in a combination of quality, authentic, hard to find, grocery items from around the world.
• Our vision at ColdFoods Inc. is to offer customers the best product prices on the highest quality frozen foods.

Our Business Structure

We at ColdFoods, understand and believe comfortably that the connection and workforce we employ should be structured with enough room for creativity, and pay should be commensurate with the amount and quality of work completed.

ColdFoods Inc. will not be departmentalized and every decision made in the company will be done in accordance with the company mission. Our workers will be given explicit tasks based upon their creativity, knowledge, and social ability.

We hope to fulfill all our goals and visions, which is why we have chosen designated portfolios to employ right from the beginning. They are;

General Manager

Head of operations

Admin and Personnel Manager

• Nutritionist

Sales and Marketing Officer

Accountants/Cashiers

Waiters/Waitress

Drivers/Distributors

Security Officers

5. Job Roles and Responsibilities

• His in charge of overseeing all other executives and staff within the organization.
• He is tasked with board of directors and other executives to determine if company is in accordance with goals and policies.
• Charged with encouraging business investment.
• He also promotes economic development within communities.
• He is in charge of directing the organization’s financial goals, objectives and budgets.
• Implement the organization’s guidelines on a day-to-day basis.
• Preside over quality control.
• In charge of hiring, training and terminating employees.
• In charge of developing and implementing strategies and set the overall direction of a certain area of the company or organization.
• Provide visionary and strategic leadership for the organization.
• Collaborate with the board of directors to develop the policies and direction of the organization.
• He makes sure that the members of the Board of Directors have the information necessary to perform their fiduciary duties and other governance responsibilities.
• He also provides adequate and timely information to the Board to enable them to effectively execute its oversight role.
• Direct staff, including organizational structure, professional development, motivation, performance evaluation, discipline, compensation, personnel policies and procedures.
• In charge for managing the daily activities in the store
• Makes sure that the restaurant facility is in very good shape and conducive enough for customers
• Connects with third–party providers (vendors)
• In charge of supervising and training new staff members
• Reports to the General Manager
• Settles all customer complaints and inquiries
• Creates budget and reports for the fast food
• Any other duty as assigned by the General Manager
• In charge of overseeing the running of HR and administrative tasks for ColdFoods Inc.
• Monitor office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Stays updated on job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
• Builds the reputation of ColdFoods Inc. by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments.
• State job positions for recruitment and managing interviewing process
• Organize staff induction for new team members
• In charge of training, evaluation and assessment of employees
• In charge of arranging travel, meetings and appointments
• Oversee the smooth running of the daily office activities.

Nutritional Consultant

• In charge of evaluating clients nutritional needs
• In charge of providing nutritional counseling and advice to clients
• Tasked with creating a clinical nutrition treatment plan for a client
• In charge of educating the public on nutrition issues
• Researching the effects of nutrition on health and fitness
• Consulting with a team of healthcare practitioners on nutritional management for a client
• Oversees external research and coordinates all the internal sources of information to retain the organizations’ best customers and attract new ones
• Creates demographic information and analyze the volumes of transactional data generated by customer purchases
• Understand, prioritizes, and reaches out to new partners, business opportunities et al
• Understand development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
• In charge for supervising implementation, advocate for the customer’s needs, and communicates with clients
• Create, executes and evaluates new plans for expanding  sales
• Keep all customer contact and information
• Represents the company in strategic meetings
• Aid to increase sales and growth for the business
• In charge of preparing financial reports, budgets, and financial statements for ColdFoods Inc.
• Provides financial analyses, development budgets, and accounting reports; analyses financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• In charge of financial forecasting and risks analysis.
• Understand cash management, general ledger accounting, and financial reporting
• In charge of developing and managing financial systems and policies
• In charge of administering payrolls
• Ensuring compliance with taxation legislation
• Take care of all financial transactions for ColdFoods Inc.
• Serves as internal auditor for the organization
• Quickly attends to customers in a friendly and professional manner
• Make sure that unoccupied tables are always set and ready for customers
• Draws out chairs for customers as they arrive
• Takes care of any other duty as assigned by the general manager  
• Delivers customer’s orders on time
• Delivers correspondence for the shop
• Runs errand for ColdFoods Inc.
• Any other duty as assigned by the floor/line manager
• In charge of cleaning the business facility at all times
• Makes sure the toiletries and supplies don’t run out of stock
• Makes sure that both the interior and exterior of the business facility are always clean
• Handles any other duty as assigned by the general manager
• In charge of protecting the agency and it’s environs
• Controls traffic and organize parking
• Give security tips when necessary
• Patrols around the building on a 24 hours basis
• Presents security reports weekly

6. SWOT Analysis

We at ColdFoods Inc. understand that managing a business is not an easy task which is why we had to contract a well know consultancy firm to aid us with our SWOT Analysis.

This firm was employed to extensively go through our business concept and critically examine the prospect and the success of our company. They did a good job and we believe that the results they actualized was after thorough research. Below is the summary of the SWOT Analysis done for ColdFoods Inc.

It is believed that the strength of ColdFoods Inc. rests on the fact that we have a lot of products and services to offer to the citizens of Oklahoma. It is believed that our niche idea has been inculcated with so many mouthwatering delicacies, but just the idea of singling it out makes it our strength in the industry.

Also the experience and expertise of our founding teams makes our business the venture to beat in the industry. The connections we have set already make us invisible and strong.

After our extensive research in the industry, it was noted that our business location might serve as a weakness to us. It went further to acknowledge that the district we have chosen in Oklahoma is the centre hub of the city and will be filled with businesses trying to offer most of the services we offer.

• Opportunities

The world has gotten to the point where every Dick and Harry wants healthy foods such as fruits, vegetables, meat, chicken, turkey, fish, candy etc. -to remain healthy. They also want to save time and stress and get their frozen foods instead of cooking or butchering them. All this are opportunities which our SWOT Analysis noted are available to us.

Our SWOT Analysis also noted that the major threat we will be facing is the fact that we are going to be competing against already existing business in Oklahoma. It is believed that these businesses will come after us with all they have got. This will won’t be easy for a new entrant in the industry.

7. MARKET ANALYSIS

• Market Trend

We have been made to understand that changing lifestyle is expected to help the industry demand. Our products include fruit, vegetables, fish & seafood, potatoes, a variety of meat products, soups, ready meal products and others. Other products commonly include bakery related items.

It is relevant to note that Frozen ready meal emerged as the leading product segment and accounted for over 30% of the total market in 2015.

Indeed frozen ready meals products are expected to witness significant growth owing to their increased popularity on account of hygiene and timely preparation. Also, the rising population of women workforce is expected to be a key element that would assist growth  in future years and also provide a boom the industry.

We also believe that frozen potatoes are expected to exhibit the fastest growth at an estimated CAGR of 4.7% from 2016 to 2024. We all know that these have a high nutritional value and are also delicious in nature. Also, potatoes are mostly gluten free and are considered a carbohydrate source in a balanced diet.

We all know that the global frozen food market is highly fragmented that involves both multinational corporations and domestic companies, and in recent years manufacturers have chosen new freezing technologies to preserve the nutritional content and also reduce any material loss in the  industry.

8. Our Target Market

Without further waste of time and resources, our main target markets are:

• People who live and work in Oklahoma, who are looking for quality ingredients needed to prepare their favourite international cuisine.
• Surrounding businesses looking for a tasty meal for their customers and staff.
• International and domestic travellers visiting Oklahoma.
• Families looking for quality, affordable, home cooked meals to take home and prepare for their families with ease.
• People looking for a comfortable environment in which to enjoy a cup of coffee, read a book, or just shop.
• People looking for high quality, unique gifts and kitchen supplies.
• Each market segment consists of people who either live, work, or vacation in the Oklahoma. Each market will be seeking an establishment that will meet their desire for authentic, healthy food, quality service, and a pleasant atmosphere.

Our competitive advantage

Outlined and explained below are the various advantages we have over our competitors in the industry. We have plans to make use of it judiciously, and take over the industry completely.

We at ColdFoods Inc. believe that Location is critical to success.  This is why our store needs to be on Main Street or just off Main Street so we can take advantage of walk-by and drive-by traffic. Our management also noted that we also need adequate parking to make shopping at our store convenient for drivers.

• Convenience

We have also noted that Oklahoma residents and visitors are willing to pay a little bit more for good food and the convenience of being able to get what they want without having to travel out of town or order over the internet.  Our customers will purchase our food because it is authentic, frozen and fresh.

• High Quality

We at ColdFoods Inc. by focusing on high quality international food and frozen delicacies will draw customers from the competition, as well as create a local market that has not existed before in Oklahoma. If the prices are reasonable and the food is good, we will have growth through repeat business.

9. SALES AND MARKETING STRATEGY

• . Sources of Income

We at ColdFoods, intend to market our entire products in its frozen state in 8 and 12-ounce plastic tubs.  We also intend to have the products available in six ounce pressurized cans.  We at ColdFoodsInc. currently provide numerous seafood products to restaurants in Oklahoma.

Our market’s new public retail outlet in ColdFoodsInc. will focus on popular seafood selections that will bring customers into the store. We plan to make profits by offering the following products;

10. Sales Forecast

The projection below is a very conservative ColdFoods Inc. sales forecast for the next three years. We anticipate actual sales will be much higher after the renovation, but we want to plan for other contingencies.

• First Year-: $420,000
• Second Year -: $1,200,000
• Third Year -: $3,000,000
• Marketing Strategy and Sales Strategy

We at ColdFoods Inc. believe we have an established name and reputation in this area, and product introduction should encounter little resistance.  Not less than 27 businesses in this area have indicated that they are willing to carry and sell our products.

Their letters of intent and endorsement are included and can be presented on request. We at ColdFoods, intend to participate in the “Made in Oklahoma” Demonstration Program administered by the Oklahoma Department of Agriculture and Demo Foods in Oklahoma City.

We believe that this program will enable ColdFoods Inc. to introduce Whipped Dream into the Oklahoma City metropolitan area under more favourable market conditions by showing the people how unique our products are.

We at ColdFoods Inc. also intend to enter the grocery and specialty markets in the Tulsa area in 2018.  We will also rely heavily on in-store displays and demonstrations in south eastern Oklahoma stores, as well as those in Tulsa and Oklahoma City.

Our management have noted that we will demonstrate our flavoured topping in conjunction with fresh fruit during warmer months, and as a topping on gourmet coffee and hot chocolate in the cooler months, which we believe will bring us closer to our prospective customers.

We have also given special attention to developing an attractive label that will stress the gourmet/specialty nature of the products.

11. Publicity and Advertising Strategy

We at ColdFoods, understand and believe that every individual living in the united states is a potential customer and all our potential markets will experience growth. We also believe that our publicity and advertising to a particular sector of the population will lead to an expansion in overall market growth.

We at ColdFoods, plan to implement a strong sales publicity and advertising strategy, which is why we have partnered with Fidelity Communications, an advertising firm that specializes in business advertisements and many other advertising strategies, to help us with boosting the image of ColdFoods Inc.  It has been agreed that we will leverage or do the following to boost our corporate identity in the market;

• It was agreed that ColdFoods, will pay Fidelity Communications $60,000 to determine the needs of the surrounding population and the best way we at ColdFoods Inc. can meet those needs with promotions, literature and other marketing programs.
• Our promotional campaigns will be partially outsourced to Fidelity Communications because of their expertise on the field
• Our advertising will be consistent with Fidelity Communications being a well known advertising brand
• Fidelity Communications and our sales team will work together to inform customers of new products, to encourage an image of community involvement for ColdFoods Inc., and to limit environmental impact

12. Our Pricing Strategy

Indeed ColdFoods Inc. is a frozen food venture established to serve the needs of the people and to keep them healthy. We at ColdFoodsInc. plan to encourage impulse buying, which we believe is paramount if we are to maintain a flexible pricing strategy.

Our pricing strategy at ColdFoods Inc. will be based on competitive parity guidelines. We are not in business for a trial and error design but as a venture with hopes and promises, which is why we won’t be exceeding our competitors’ prices by more than 10%, and if a customer sees a price elsewhere for less, we will give it to them for that price.

Our Unique and experienced management understands that the prices we keep will tell a lot about our brand. Our plan is to bring to the people of Oklahoma products that are innovative and not available elsewhere in the region, which will be marked up to meet the demand curve.

We are not afraid of premium pricing premium products. We believe that our unique products will be priced slightly above the industry average.

• Payment Options

Just like our SWOT Analysis noted, our business location is a very important competitive advantage that we possess. We believe that it will be difficult for our competitors to match our business location. Our experienced management have ensured that we bring payment options that are unique and will make the payment for the service we offer very easy for our customers.

We have also partnered and registered with the necessary financial institutions in the country and we hope to make use of that relationship. Our bank account numbers will be made available on our website and promotional materials so that it will be easier for clients to make payments when necessary.

• Payment by via bank transfer
• Payment via online bank transfer
• Payment through point of service machines
• Payment via check
• Payment via bank draft
• Payment via mobile money
• Payment with cash

13. Startup Expenditure (Budget)

It’s our hope at ColdFoods Inc. to build a business that will grow moderately, with a positive cash balance. We have plans to build a classic business that will invest residual profits into company expansion and personnel. Being prepared and serious, we have estimated that our advertising and consulting costs will go up in the next two years.

We believe that new entrants in the industry are always operating with negative profits through the first two years. We at ColdFoods, hope to avoid that kind of operating loss by knowing our competitors, our target markets, industry direction, and the products we sell. Outlined below are the ways we expect to spending our start-up cost;

• The Total Fee for Registering the Business in Oklahoma: $750.
• The budget for insurance, permits and license: $5,000
• The Amount needed to acquire a suitable Facility for 6 months in Oklahoma (face lifting of the facility inclusive): $75,000.
• The Cost for the purchase of furniture and gadgets (fridges, TVs, Sound System, tables and chairs et al): $20,000.
• The Cost for Equipment (Standard commercial oven, shelves, Proof boxes, Baking Sheets and Racks, Work Tables, Sinks, Slicers, Scales et al): $15,000
• The Cost for inventory : $600,000
• The Cost of Launching a Website: $600
• Our marketing and publicity budget – $200,000
• The cost for our opening party: $5,000
• Additional Expenditure (Business cards, Signage, Adverts and Promotions et al): $5,000

From our detailed analysis above, we will be needing $926,350 to start ColdFoods Inc. We have also put plans in place to be able to raise the funds and capital.

Generating Funding/Start up for ColdFoods Inc.

Just like we stated in the executive summary, Cistus and Daniella Morgan are the founders and sole owners of ColdFoods both of this unique individuals have had extreme experience in the industry and understand how it functions.

They will also be the sole financiers of the business which is why have restricted the sourcing of the start – up capital for the business to just three major sources.

• Generate part of the start – up capital from personal savings and sale of stocks
• Generate part of the start – up capital from friends and other extended family members
• Generate part of the capital from the bank (loan facility).

Note : Cistus and Daniella Morgan have been able to raise $600,000 ( $500,000 from personal savings and $100,000 from friends and family as soft loan ), and we are at the final stages of obtaining a loan facility of $400,000. We have verified all the necessary procedures to actualize or get our startup cost.

14. Sustainability and Expansion Strategy

It is important to note that while careful planning was involved in setting the strategic goals for ColdFoods Inc., we have decided to set a zone of acceptability for meeting sales and financial objectives.

We believe it is unique to state out rightly that a 10% negative deviation from expected sales and projected returns on assets will be accepted and rearranged. But if the sales objectives and returns on investment are less than 90% of projections, certain actions will be taken to remedy the situation.  These actions include:

• In case of unacceptable sales levels during the first year

We at ColdFoods Inc. will combat this problem by doubling in-store promotions of our products in our different stores.  We will also personally arrange and carry out these promotions on weekends at peak shopping times. And if the sales do not increase within one month of the in-store promotions, we will advertise in the weekly shopping circulars of the stores for one month. This we believe will remedy the situation effectively.

• In case of unacceptable sales levels in Oklahoma City and Tulsa

Our Publicity Consultancy firm believe that after 6 months of marketing products in these two metropolitan areas, sales will be evaluated and analyzed, and if doesn’t meet acceptable sales levels, we at ColdFoods, will consider contracting with more local marketing specialists in Oklahoma City and Tulsa to carry out the in-store promotions and push the products to the stores in other to boost our brand awareness.

We believe that this contractual relationship will be based upon sales commissions (to be determined by the Fidelity Communications and ColdFoods Inc.), thereby providing incentive for them to generate sales for our business.

• In case unacceptable business liquidity

We at ColdFoods are always trying to consider all possibilities. In a severe case that the business lacks liquidity, we at ColdFoods Inc. will examine our accounts receivable procedures to make sure that payment periods are just and that payments are being received in a timely manner, this is to ensure transparency and effectiveness.

Also, our cash flow projections at ColdFoodsInc. will be reviewed to ascertain if unforeseen cash layouts/expenses are undermining the financial health of our business venture.

• In case of unacceptable returns on equity

In a case where returns on assets and owners’ equity fall below acceptable levels, we at ColdFoods Inc. will first examine and compare the per-unit costs of production and marketing with sales prices, to ascertain certain distribution prices and level. If the margins are too thin, a price increase for products sold in specialty/gourmet shops will be considered.

But because established non-flavoured substitutes already exist at lower prices, the lost sales resulting from a price increase may make this option unsuitable for products sold in general food stores.  We at ColdFoods Inc. will therefore assess opportunities for minimizing production costs and examine different marketing/distribution alternatives, to boost returns.

Check List/Milestone

• Business Name Availability Check: Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts various banks in the United States: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of All form of Insurance for the Business: Completed
• Conducting href=”https://www.profitableventure.com/steps-write-feasibility-study-report/” target=”_blank” rel=”noopener noreferrer”>feasibility studies: Completed
• Leasing, renovating and equipping our facility: Completed
• Generating part of the start – up capital from the founder: Completed
• Applications for Loan from our Bankers: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing/Promotional Materials: Completed
• Recruitment of employees: In Progress
• Purchase of the Needed software applications, furniture, office equipment, electronic appliances and facility facelift: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business (Business PR): In Progress
• Health and Safety and Fire Safety Arrangement: In Progress
• Establishing business relationship with banks, financial lending institutions, vendors and key players in the industry: In Progress

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BUSINESS STRATEGIES

How to start a frozen food business

• Jeremy Greenbaum
• Aug 11, 2023
• 11 min read

If you have a passion for food, a deep understanding of the culinary industry and a desire to turn your love for cooking into a business, starting a frozen food business can be an exciting and fulfilling venture. In this guide, we'll walk you through the process of starting a frozen food business, from developing your concept to creating a professional business website and provide you with valuable insights to help you succeed in this dynamic industry.

The frozen food industry has experienced significant growth in recent years, driven by changing consumer lifestyles, convenience and an increased focus on healthy and quality food options. Starting a frozen food business allows you to tap into this thriving market and offer products that cater to the needs and desires of consumers looking for convenient and delicious frozen meals. It can also be a great extra way go make money as a chef.

What is a frozen food business?

A frozen food business involves producing, packaging and selling a variety of frozen food products. This type of business includes frozen meals, snacks, desserts, vegetables, fruits and more. The key is to identify a niche or business idea within the frozen food industry that aligns with your interests, expertise and target market.

Why start a frozen food business?

The frozen food industry offers numerous opportunities for entrepreneurs to establish successful businesses. Here are some compelling reasons to start a frozen food business:

Growing market: The demand for frozen food continues to rise globally as consumers seek convenient and time-saving meal options without compromising on quality and nutrition. The growing market presents ample opportunities for innovative businesses to thrive.

Convenience and accessibility: Frozen food provides convenience to consumers, allowing them to have quick and easy meals without the need for extensive preparation. With busy lifestyles becoming the norm, frozen food offers a solution for those looking for convenient and delicious meal options.

Health and nutrition: The majority of people want to eat healthy and are seeking healthier options even in the frozen food category. By focusing on high-quality ingredients, nutritious recipes and catering to specific dietary preferences or restrictions, you can tap into the growing demand for healthier frozen food options.

Diverse target market: Frozen food appeals to a wide range of consumers, including busy professionals, families, students and individuals with specific dietary needs. By targeting specific segments within the market, such as plant-based meals, gluten-free options or international cuisines, you can cater to the unique preferences of different consumer groups.

Can a frozen food business be profitable?

A frozen food business can be profitable, but the exact profitability can vary based on several factors including your location, product selection, pricing strategy, distribution channels, and operational efficiency. You'll need to really understand the cost of starting a business in your chosen industry. In order to ensure a profitable business you'll want to focus on:

Offering a diverse range of frozen products, including meals, vegetables, fruits, meats, desserts and specialty items, can attract a wider customer base and increase net profit and sales potential.

Profit margins in the frozen food industry can vary depending on the type of product and your sourcing costs. Some products might have higher margins due to their uniqueness or premium quality.

Setting competitive yet profitable prices is crucial. Pricing too high might deter customers, while pricing too low might impact your profitability. Consider your production costs, distribution expenses and market rates.

Consider the costs of cold storage facilities or freezers. Efficient storage management helps reduce waste and spoilage.

Let's consider an example of a frozen meal business:

Cost to produce a frozen meal: $3.50

Selling price per frozen meal: $6.00

Monthly sales : 1,000 meals

Monthly Revenue : $6.00 * 1,000 = $6,000

Monthly Cost: $3.50 * 1,000 = $3,500

Gross Profit : $6,000 - $3,500 = $2,500

Gross Profit Margin : ($2,500 / $6,000) * 100 = 41.67%

This example demonstrates a gross profit margin of approximately 41.67%. Keep in mind that this is a simplified and hypothetical scenario and does not account for additional expenses such as operating expenses , marketing, packaging and distribution.

To accurately assess the profitability of a frozen food business, you need to conduct a comprehensive financial analysis that considers all expenses and revenue streams.

Starting a frozen food business requires careful planning, research and execution. Here are several essential steps to guide you through the process:

Define your frozen food business concept

Create a business plan

Secure financing

Obtain licenses and certifications

Set up your production and packaging infrastructure

Develop and test your frozen food recipes

Establish distribution channels

Build your brand and market your frozen food business

01. Define your frozen food business concept

Clarify your vision and identify the specific niche or segment of the frozen food industry you want to focus on. Determine whether you want to offer frozen meals, snacks, desserts or specialty frozen food products. Research your target audience, competitors and market trends to refine your concept and identify unique selling points.

02. Create a business plan

Develop a comprehensive business plan that outlines your goals, target market, competitive analysis, food marketing strategies , business entity type and structure and financial projections. Your business plan will serve as a roadmap for your frozen food business and help you secure financing if needed. Consider including the following sections:

Executive summary : A concise overview of your frozen food business concept statement , mission and key objectives.

Market analysis: Identify your target audience, analyze their preferences and assess the competitive landscape.

Product offering: Describe the specific frozen food products you will offer and how they meet the needs of your target market.

Marketing and sales strategy: Outline your marketing and promotional tactics to reach and engage your target audience.

Financial projections: Develop a financial forecast, including startup capital and costs, operating expenses, revenue projections and profitability analysis.

03. Secure financing

Determine the financial resources required to start and operate your frozen food business. This may include funds for production equipment, packaging materials, marketing, distribution and operational expenses. Explore ways to raise money for your business such as loans, grants or seeking investors to secure the necessary capital.

04. Obtain licenses and certifications

Register your business and ensure compliance with all necessary licenses and certifications required to operate in the food industry. This may entail obtaining a business license, health permits and food handling certifications to guarantee that your frozen food products meet the highest safety and quality standards. Additionally, consider pursuing relevant certifications such as HACCP (Hazard Analysis Critical Control Point) or GMP (Good Manufacturing Practices) to demonstrate your commitment to food safety and hygiene.

05. Set up your production and packaging infrastructure

Depending on your chosen frozen food business model, you'll need to set up the necessary production and packaging infrastructure. This may include:

Production facility: If you're producing frozen food products in-house, you'll need a commercial kitchen or production facility that complies with local health and safety regulations. Obtain the necessary permits or licenses and equip your facility with the required equipment and storage facilities.

Packaging and labeling: Invest in appropriate packaging materials that ensure the quality and integrity of your frozen food products. Consider incorporating sustainable packaging options to align with consumer preferences. Ensure compliance with labeling requirements, including ingredient lists, nutritional information and allergen warnings.

06. Develop and test your frozen food recipes

Develop recipes for your frozen food products that align with your target market's preferences and dietary needs. Focus on using high-quality ingredients, creating unique flavors and maintaining nutritional value. Conduct thorough recipe testing to ensure the taste, texture and quality of your frozen food offerings.

07. Establish distribution channels

Develop a distribution strategy to ensure your frozen food products reach your target market efficiently. Consider the following options:

Retail partnerships: Collaborate with local grocery stores, specialty food retailers or online marketplaces to stock your products. Build relationships with retailers and negotiate favorable terms to secure shelf space.

Direct-to-consumer: Set up an online store or partner with online platforms to sell your frozen food products directly to consumers. Start making a website using a small business website builder like Wix to showcase your products, accept orders (for this you can also consider building an eCommerce website to sell online via an e Commerce model) and facilitate shipping or local delivery.

08. Build your brand and market your frozen food business

Invest in branding and marketing initiatives to create awareness, attract customers and build brand loyalty. Consider the following strategies:

Brand identity: Develop a unique brand identity that reflects your frozen food business's values, mission and target audience. Design a memorable logo, establish a cohesive visual identity and craft a compelling brand story.

Online presence: Create a professional website using a website builder like Wix to showcase your frozen food products, share your brand story and facilitate online orders. Utilize social media platforms, content marketing and search engine optimization (SEO) techniques to enhance your online visibility.

Influencer partnerships: Collaborate with influencers, bloggers or food enthusiasts who align with your brand values. Arrange for them to try and review your frozen food products to reach their followers and build credibility.

Sampling and demos: Participate in local food fairs, community events or farmers' markets to offer samples of your frozen food products. Engage with potential customers, gather feedback and generate word-of-mouth marketing.

Tips for managing a frozen food business effectively

Effectively managing a frozen food business is essential for its long-term success. Here are five key steps to manage your frozen food business effectively:

Develop a clear organizational structure: Define roles and responsibilities within your frozen food business to ensure smooth operations. Assign tasks, establish reporting lines and create a transparent communication framework. Clearly communicate expectations, goals and performance metrics to your team.

Prioritize quality and food safety: Maintain stringent quality control measures throughout your frozen food production process. Ensure compliance with food safety regulations, conduct regular quality checks and monitor your suppliers to guarantee the integrity and safety of your products.

Build strong supplier relationships: Develop relationships with reliable suppliers who provide high-quality ingredients and packaging materials. Establish mutually beneficial partnerships to ensure a consistent supply of materials and negotiate favorable terms.

Implement efficient inventory management: Efficient inventory management is crucial in the frozen food industry to minimize waste and optimize production. Implement inventory tracking systems, monitor stock levels and establish reordering thresholds to ensure a continuous supply of ingredients and packaging materials.

Adapt to evolving consumer trends: Stay informed about emerging consumer trends, dietary preferences and market demands. Continuously innovate your frozen food offerings to cater to changing consumer needs and preferences. Leverage consumer feedback and data analytics to make informed business decisions.

Additional tips for promoting your frozen food business

Your business isn't going to sell itself. Here are several specific steps you can take to promote your frozen food business:

Build your brand: Your logo, color palette brand messaging and what you name your business are all vital to establishing an effective and cohesive brand. Make sure your branding is consistent across all platforms, including your site, marketing materials and social media, will help establish trust and recognition among potential clients. If you’re looking for some branding help, consider using Wix’s logo maker and business name generator to get your creative juices flowing. Be sure to check out these food logo ideas and food business name lists for inspiration.

Showcase your unique selling points: Highlight the unique aspects of your frozen food products, such as high-quality ingredients, innovative flavors or sustainable packaging. Communicate these selling points through your website, social media channels and marketing materials.

Utilize social media: Leverage social media platforms like Instagram, Facebook and Pinterest to showcase mouthwatering images of your frozen food products. Share recipes, cooking tips and creative serving suggestions to engage with your audience and inspire them to try your products.

Partner with influencers and bloggers: Collaborate with food influencers, bloggers or cooking enthusiasts who have a strong online presence. Arrange for them to create and share recipes using your frozen food products, providing exposure and reaching their followers.

Offer sampling opportunities: Organize sampling events at local grocery stores, farmers' markets or community events. Provide samples of your frozen food products to allow potential customers to taste and experience the quality and flavors firsthand.

Develop strategic partnerships: Partner with complementary businesses, such as meal kit services, fitness centers or health food stores, to cross-promote your frozen food products. Offer special discounts or promotions to their customers and reciprocate by featuring their products in your marketing efforts.

Other benefits of starting a frozen food business

Starting a frozen food business comes with several benefits that make it an attractive entrepreneurial opportunity:

Product longevity: Frozen food has a longer shelf life compared to fresh food, allowing for greater flexibility in production and distribution. This can help reduce waste and ensure that your products are readily available to meet consumer demand.

Scalability: As your frozen food business grows, you can scale up production and distribution to meet increasing demand. With proper planning and infrastructure, you can expand your operations and reach new markets, both domestically and internationally.

Product innovation: The frozen food industry offers opportunities for creativity and product innovation. You can experiment with different recipes, flavors and packaging options to stand out in the market and cater to changing consumer preferences.

Operational efficiency: Frozen food production often involves batch production and standardized processes, which can result in operational efficiencies and cost savings. By optimizing your production and supply chain, you can maximize profitability and maintain consistent quality.

Challenges of running a frozen food business

While starting a frozen food business has numerous benefits, it also comes with its own set of challenges:

Quality control: Maintaining the quality of frozen food products is crucial for consumer satisfaction and brand reputation. Proper storage, packaging and transportation are essential to preserve the taste, texture and nutritional value of your frozen food offerings.

Regulatory compliance: The frozen food industry is subject to various regulations and food safety standards. It's important to understand and comply with these regulations to ensure the safety and integrity of your products. This may include obtaining necessary licenses, adhering to labeling requirements and implementing proper hygiene and sanitation practices.

Distribution and logistics: Managing a frozen food supply chain can be complex, especially when it comes to maintaining the cold chain and ensuring timely delivery. Establishing relationships with reliable suppliers, distributors and transportation partners is essential for efficient and effective distribution.

Competitive market: The frozen food industry is highly competitive, with many established brands and new entrants vying for consumer attention. Standing out in such a crowded market requires unique product offerings, effective branding and targeted marketing strategies.

Starting a frozen food business in a specific state

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Don’t see your chosen state here? You can use the search bar in the Wix Blog to find all the information you need.

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Home » Food

How to Start a Frozen Food Business [Business Plan]

A frozen food store or frozen food shop is a retail outlet that sells different types of frozen food. Please note that the term frozen food refers to food items that are exposed to freezing temperatures to preserve them from decay. The most common frozen foods are fish, chicken, turkey, prawns, beef, et al.

Available statistics show that the frozen food market size was valued at $291.8 billion in 2019, and is estimated to reach $404.8 billion by 2027, registering a CAGR of 4.2% from 2020 to 2027. According to FFI, the share of Americans who consume frozen food daily or every few days rose from 35 percent in 2018 to 39 percent in 2020.

Steps on How to Start a Frozen Food Store Business

Conduct market research.

The first step in the market research process for your frozen food store business is to develop market-based research questions in line with your overall business goal and objective. In this regard, you should source for information that will help you maximize your business, give you a reliable clue of what your potential market will be looking out for from a frozen food store, and also help you operate your frozen food store with less stress.

a. Who is the Target Market for a Frozen Food Store Business?

• Restaurants and canteens
• Every business that makes use of frozen foods.

b. Is Frozen food Store Business a Profitable Business?

Yes, the frozen food store business is profitable and the industry is growing. Please note that the rise in CAGR is attributable to the increasing demand for frozen products from developing countries and also increased demand from the foodservice industry.

c. Are There Existing Niches in the Industry?

There is no niche area in the frozen food business because the frozen food business is a niche area in the supermarket and grocery stores industry.

d. Who are the Major Competitors?

• C&S Wholesale Grocers
• SuperValu Inc
• Sysco Corporation
• Babeth’s Feast
• American Frozen Foods
• Malincho Euro Market & Prestige Liquor
• Cruisin USA Frozen Custard
• Red Mango Frozen Food Stores
• CRF Frozen Foods
• Grocery Babu LLC.
• Carando Gourmet Frozen Foods
• India Bazaar Grocery Store
• SunOpta Frozen Foods
• Ajinomoto Windsor, Inc.
• R K Grocery
• Smith Frozen Foods
• High Liner Foods USA Inc
• Food City USA
• Freddy’s Frozen Custard & Steakburgers
• AppetizersUSA
• Dannon Co Inc

e. Are There County or State Regulations or Zoning Laws for Frozen Food Store Business?

Yes, there are county or state regulations and zoning laws for frozen food stores, and players in this industry are expected to work with the existing regulations governing such business in the county or state where their business is domiciled. In addition to that, it is important to state that in the United States, government agencies and departments routinely grant variances to rules and regulations.

Often, you only have to fill out a short form. In other cases, your request may have to be publicly heard before your city council, zoning board, or other body. Please check with your zoning or planning department to find out what options are available to you.

f. Is There a Franchise for Frozen Food Store Business?

Yes, there are franchise opportunities for frozen food store business, and here are some of them;

• MyMenu Franchise
• G.I. Friday’s Franchise
• Cool Factory Franchise

g. What Do You Need to Start a Frozen Food Store Business?

• A Feasibility Report
• Business and Marketing Plans
• Business Licenses and Permits
• A Good Shop facility
• EIN (Employer Identification Number)/Federal Tax ID Number.
• A Corporate Bank Account
• Wholesale supplies of different types of frozen foods
• Startup Capital

Memorable Frozen Food Business Names

• The Lords© Frozen Food Store, Inc.
• Bally Bronze® Frozen Food Store, LLC
• Organic© Frozen Food Store, Inc.
• Food Solutions® Frozen Food Store, Inc.
• Fresh Pot™ Frozen Food Store, Inc.
• Jenny Benson™ Frozen Food Shop, LLC.
• Monica Blaze© Frozen Food Store, LLC
• Nancy Moore® Frozen Food Store, Inc.
• Grace Foods© Frozen Food Store, Inc.
• Mother Theresa© Frozen Food Store, Inc.
• Susan Longjohn® Frozen Food Store, LLC
• Coast Line® Frozen Food Store, LLC
• Ewelina Victor™ Frozen Food Store, LLC
• Georgia Gusto© Frozen Food Store, Inc.
• Venessa Mcintosh® Frozen Food Store, Inc.
• Honduras Sisters™ Frozen Food Store, Inc.
• Celine Maxwell™ Frozen Food Store, Inc.
• Doris Kunde© Frozen Food Store, Inc.
• One Stop® Frozen Food Store, LLC
• Nelly Benson™ Frozen Food Shop, Inc.

Register Your Business

A. what type of business structure is best for frozen food store business.

Even though there are several options when it comes to the business structure of a frozen food store business, the one that most players in this line of business consider is an LLC. It is common to consider an LLC because providers want to protect themselves from lawsuits.

Please note that an LLC will need an EIN if it has employees or if it will be required to file any of the excise tax forms listed below. Most new single-member LLCs classified as disregarded entities will need to obtain an EIN.

b. Steps to Form an LLC

• Choose a Name for Your LLC.
• File Articles of Organization.
• Choose a registered agent.
• Decide on member vs. manager management.
• Create an LLC operating agreement.
• Comply with other tax and regulatory requirements.
• File annual reports.

c. What Type of License is Needed to Open a Frozen Food Store Business?

• General Business License
• Health and Safety Permit
• Food Handler’s Permit
• Zonal Permits
• Signage Permit
• Operational State Facility Inspections

d. What Type of Certification is Needed to Open a Frozen Food Store Business?

You don’t need any certifications to open a frozen food store.

e. What Documents are Needed to Open a Frozen Food Store Business?

• Business and liability insurance
• Federal Tax Payer’s ID
• State Permit and Building Approval
• Certificate of Incorporation
• Business License
• Business Plan
• Employment Agreement (offer letters)
• Operating Agreement for LLCs
• Insurance Policy
• Online Terms of Use
• Online Privacy Policy Document
• Contract Document
• Company Bylaws
• Memorandum of Understanding (MoU)

f. Do You Need a Trademark, Copyright, or Patent?

If you are considering starting a frozen food store business, usually you may not have any need to file for intellectual property protection or trademark. This is so because the nature of the business makes it possible for you to successfully run it without having any cause to challenge anybody in court for illegally making use of your company’s intellectual properties.

Cost Analysis and Budgeting

A. how much does it cost to start a frozen food store business.

To be truthful, the cost of starting a frozen food store varies significantly. But a standard frozen food store can cost anywhere from $30,000 to $100,000 depending on size, whether or not it will be a constructed cold room or just freezers. Your retail storefront will require another $50,000 investment minimum and your start-up supplies will run you another $10,000 to $50,000.

b. What are the Costs Involved in Starting a Frozen Food Store Business?

• Business Registration Fees – $750.
• Legal expenses for obtaining licenses and permits – $1,300.
• Marketing, Branding and Promotions – $1,000.
• Business Consultant Fee – $2,500.
• Insurance – $1,400.
• Rent/Lease – $15,000.
• Other start-up expenses include commercial satellite TV subscriptions, stationery ($500), and phone and utility deposits ($1,800).
• Operational Cost (salaries of employees, payments of bills et al) – $30,000
• Start-up Inventory – $5,000
• Store Equipment (cash register, security, ventilation, signage) – $1,750
• Furnishing and equipping the shop – $15,000
• Website: $600
• Miscellaneous: $2,000

c. What Factors Determine the Cost of Opening a Frozen Food Store Business?

• The size of frozen food store business
• The choice of location
• The required licenses and permits
• The type of facility
• The cost for branding, promotion, and marketing of the frozen food store
• The cost of equipping the frozen food store
• The cost of insurance policy covers
• The cost for registering the business
• Source of your supplies and ongoing expenses
• Cost of recruiting and training your staff
• The cost for the purchase and customizing of uniforms

d. Do You Need to Build a Facility? If YES, How Much Will It Cost?

No, it is not compulsory to build a new facility for your frozen food store, but if you have the required finance, it will pay you to build your facility. The truth is that building or reconstructing a facility will help you come up with a facility that will perfectly fit into your overall business goals and vision.

e. What are the Ongoing Expenses of a Frozen Food Store Business?

• Supplies (inventory expenses)
• Utility bills (internet subscriptions, phone bills, signage and software renewal fees et al)
• Maintenance
• Salaries of employees

f. What is the Average Salary of your Staff?

• Shop Manager (Owner) – $45,000 Per Year
• Merchandise Manager – $32,000
• Sales Boys and Sales Girls – $26,100 Per Year
• Security Guard -$24,000 Per Year

g. How Do You Get Funding to Start a Frozen Food Store Business?

• Raising money from personal savings and sale of personal stocks and properties
• Raising money from investors and business partners
• Sell shares to interested investors
• Applying for a loan from your bank/banks
• Source for soft loans from your family members and friends.

Write a Business Plan

A. executive summary.

Our frozen food store will be located in a fast-growing community in San Antonio, Texas. We have been able to secure a one-year lease of a vacant shop within the city’s largest shopping mall. We are fortunate to secure a facility with an option of renewal for 5 years at a rate that is favorable to us.

b. Products and Service

• Baked goods
• Fruits and fruit juices
• Other related grocery products.

c. Mission Statement

Our mission is to establish a frozen food store that will make available a wide variety of organic and non-organic frozen foods throughout the cities where we will establish our store.

Vision Statement

Our vision is to establish a standard frozen food store in San Antonio, Texas that will be a pacesetter in our city.

d. Goals and Objectives

The goals and objectives of a frozen food store are to provide a retail outlet where people can purchase a wide variety of frozen foods.

e. Organizational Structure

• Shop Manager (Owner)
• Merchandise Manager
• Sales Boys and Sales Girls
• Security Guard

Marketing Plan

A. swot analysis.

• Ideal location for a frozen food store business
• Highly experienced and qualified employees and management
• Access to finance from business partners
• Access to wholesale supplies of frozen foods.
• Financial constraints may restrict the publicity and branding of the business
• A new business that will be competing with well-established frozen food stores in the city.
• Inability to retain our employees at the teething stage of the business.

Opportunities:

• A rise in the number of people who want frozen foods within our market space (The surging popularity of healthy eating is expected to benefit the industry and attract new customers)
• Online market, new services, new technology, and of course the opening of new markets.
• Pandemics such as Covid19 (Revenue of the Frozen Food Wholesaling industry declined in 2020 amid the adverse economic effect of the COVID-19 pandemic.
• The arrival of a new frozen food shop within our market space
• Economic uncertainty
• Liability problems
• The U.S. Food and Drug Administration (FDA) could change its regulatory status and decide to enforce strict regulations that can strangulate new businesses like ours.

b. How Do Frozen Food Stores Make Money?

Frozen food stores make money by selling the following products;

c. Payment Options

• Payment via bank transfer
• Payment with cash
• Payment via credit cards
• Payment via online bank transfer
• Payment via mobile money transfer

d. Sales & Advertising Strategies

• Introduce your frozen food store by sending introductory letters alongside your brochure to households, restaurants, hotels, and other key stakeholders throughout the city where your frozen food store is located.
• Advertise on the internet on blogs and forums, and also on social media like Twitter, Facebook, LinkedIn to get your message across
• Create a basic website for your business to give your business an online presence
• Directly market your products.
• Join local frozen food store business associations for industry trends and tips
• Provide discount days for your customers
• Advertise our business in community-based newspapers, local TV and radio stations
• List your business on yellow pages ads (local directories)
• Encourage the use of word-of-mouth marketing (referrals)

Financial Projection

A. how much should you charge for your product/service.

There is no fixed cost for frozen food because there are different types of frozen foods (fish, chicken, turkey, prawns, beef, etc.

b. How Much Profit Do Frozen Food Store Business Owners Make a Year?

It depends, but available reports show that frozen food store owners make over $55,000 annually.

c. What Factors Determine the Amount of Profit to Be Made?

• The capacity of the frozen food store business
• The types of products retailed in the shop
• The location the frozen food store is covering
• The management style of the frozen food store
• The business approach of the frozen food store
• The advertising and marketing strategies adopted by the business.
• The number of years the frozen food store is in business

d. What is the Profit Margin of a Frozen Food Store Business Product/Service?

The profit margin of a frozen food store business is not fixed. It could range from 15 percent to 35 percent depending on the type of frozen food retailed in the shop.

e. What is the Sales Forecast?

Below is the sales forecast for a frozen food store business. It is based on the location of the business and other factors as it relates to such startups in the United States;

• First Fiscal Year: $120,000
• Second Fiscal Year:  $240,000
• Third Fiscal Year: $380,000

Set Up your Shop 

A. how do you choose a perfect location for frozen food store business.

• The demography of the location especially as it relates to people that eat frozen foods
• The demand for frozen foods in the location
• The purchasing power of businesses and the residents of the location
• Accessibility of the location
• The number of frozen food stores, grocery shops, and farm markets in the location
• The local laws and regulations in the community/state
• Traffic, parking and security et al

b. What State and City are Best to Open a Frozen Food Store Business?

• Manhattan, New York
• Pittsburgh, Pennsylvania
• Boston, Massachusetts
• Montclair, New Jersey
• Brooklyn, New York
• Chicago, Illinois
• Durham, North Carolina
• Los Angeles, California
• Green Bay, Wisconsin
• Dallas, Texas

c. What Equipment is Needed to Operate a Frozen Food Store Business?

• Deep freezer
• Weighing machine (Scale)
• Different sets of knives
• Cutting boards

Hire Employees

When it comes to hiring employees for a standard frozen food business, you should make plans to hire a competent shop manager (owner), merchandize manager, sales boys and sales girls, and security guard.

Launch the Business Proper

No frozen food store business opens its door for business without first organizing an opening party to officially launch the business. You can choose to do a soft opening if you are operating on a low budget or you can go for a grand opening party.

The bottom line is that with a proper launching of the frozen food store business, you will be able to officially inform people in your city that your frozen food store is open for business.

a. What Makes a Frozen Food Store Business Successful?

• Choose a good location and shop facility to launch the business
• Make sure your shop is stocked with different types of frozen foods
• Be deliberate with your marketing sales approach
• Encourage the use of word of mouth to promote your frozen food store
• Leverage on all available online and offline platforms to promote your frozen food store

b. What Happens During a Typical Day at a Frozen Food Store Business?

• The shop is open for the day’s work
• Goods are properly arranged in the freezer
• Walk-in customers are attended to
• Deliveries of orders are made
• Stocks are taken and reports are written and submitted
• The business is closed for the day.

c. What Skills and Experience Do You Need to Build a Frozen Food Store Business?

• Customer services skills
• Interpersonal skill
• Accounting and bookkeeping skills
• Business management skills
• Bargaining skill
• Work experience in a retail shop environment
• Experience in managing people
• Experience in business administration
• Experience in handling frozen foods and related grocery products.

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Frozen food is a rapidly expanding market as of early 2020, according to Food Industry Executive . This news make a business plan more necessary than ever to make sure the market is available for your frozen food items, as ample opportunity abounds. Whether you plan to sell frozen food locally or transport it to grocery stores across the country, a business plan also helps you determine how much money you need to build your business until it becomes profitable.

Product Description

Explain where the food you plan to sell comes from. If you want to freeze your own food, describe the farms from which you get produce or the manufacturers that provide the ingredients for your dishes. Describe how you’ll process, package and freeze the food. Mention any technology you plan to use to make the food taste fresh or eliminate inconsistent heating, such as special steaming or baking trays. If you plan to sell ready-made frozen food, describe the manufacturers from whom you’ll get your product, and explain the types of foods you plan to sell.

Equipment Required

Freezer space is a critical aspect of running a frozen food business, so explain how many freezers you plan to use to store your food until it’s ready to ship or be sold. If you plan to manufacture and freeze your own food, explain the process and what types of equipment you need to get fresh food into sealed packages ready for the freezer.

Manufacturing your own food means you must obey state and federal health and safety standards, so detail how you plan to handle the logistics of safely prepping, packaging and freezing the food. To sell food locally, describe the types of delivery vehicles you plan to use.

Industry and Targets

Take a close look at the industry, including the market for frozen food and who buys it. If you sell directly to consumers, explain the demand in your local area or the consumers willing to buy frozen food online. Selling to grocery stores and restaurants requires identifying the size of the businesses and the types of foods they buy. Study your competitors, including large companies that stock grocery stores with frozen food and companies that deliver locally. Mention trends that may affect your business, such as challenges to the market from health and nutrition entities that say fresh food is better.

Marketing Frozen Food

The marketing section of the frozen products business plan explains how you’ll sell your products. If you plan to package your own foods, explain how your packaging and label will persuade people to buy the food. This section also covers any promotions you plan to help people learn about your frozen foods and to help them buy the food, such as promotions through a retail store or website.

Talking to wholesale buyers at grocery stores or restaurants is another aspect of your plan to consider if you want to manufacture and sell your own frozen food. Some innovation in your frozen food marketing strategy can go a long way in a long-stagnant market, says Forbes .

Frozen Food Financials

Estimate the expenses for and profits from selling frozen foods for three years to find out how much money you need to get the business off the ground. Include the cost of equipment, such as freezers and delivery vans, in your expenses. Calculate the prices you plan to charge for your food, and determine how much you need to sell to keep your cash flow steady. Attempt a projection of your sales and growth, to demonstrate scale and profit are a reasonable goal.

• Food Industry Executive: 70% More Consumers Adding Frozen Foods to Their Carts
• Forbes: This Startup Wants to Make Frozen Food Cool - For Real

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Table of Contents

The estimated global frozen food market size was USD 392.4 billion in 2022 and it is projected to surpass around USD 612.28 billion by 2032 with a registered CAGR of around 4.6% from 2023 to 2032.

Restraining Factors

Cold chain logistics  is a crucial requirement for the storage of frozen food in all nations. Emerging nations still lack the infrastructure for cold chains and are unable to provide safe products to their citizens. Although these foods have a long shelf life, the lack of infrastructure results in wastage and a loss to the producers. Investments are low in developing nations due to the financial crisis, which is hindering the growth of cold chain businesses in this area. However, emerging nations have many lucrative funding opportunities due to the changing consumer preferences towards frozen foods and their increasing acceptance.

Nielsen Market Research Company reported that frozen and shelf-stable foods were prominent in shopping carts during the COVID-19 pandemic. Consumers stockpiled these food items, which helped to reduce the number of trips they needed to make to the grocery store. Nielsen data shows that frozen foods were in the top five food categories with significant sales growth from March to June 2020.

While some consumer purchasing habits, such as purchasing frozen products, may extend beyond the pandemic, other factors may also influence frozen food sales in the future. The impact of the pandemic on purchasing power, is not equal among consumer groups. Consumer groups that are financially impacted may adopt new shopping strategies. For instance, some may opt for more frozen foods over fresh foods to reduce costs. Besides pandemic impacts, frozen food is one of the most convenient ways for consumers to find meal solutions. In recent years, food manufacturers have focused on the frozen food category by developing more delicious and nutritious products. Given these facts, it is worth exploring frozen food sales trends in Alberta. Such analysis could help Alberta food processors in exploring potential opportunities in frozen food manufacturing.

Key market players in the frozen Foods Market

• General Mills Inc (US)
• Conagra Brands, Inc. (US)
• Grupo Bimbo S.A.B. de C.V. (Mexico)
• Nestle SA (Switzerland)
• Associated British Foods plc (UK)
• Ajinomoto (Japan)
• Vandemoortele NV (Belgium)
• LantmannenUnibake International (Denmark)
• Cargill (US).
• Unilever (Netherlands)
• Kellogg Company (US)
• McCain Foods Limited (Canada)
• Kraft Heinz Company (US)

How to start a quick IQF business.

• Product research – Thoroughly research what types of frozen foods are in demand and what gaps exist in the market. Test recipes to find your niche.
• Food safety compliance – Ensure your facility, processes and products meet all food safety regulations. This is critical for building customer trust.
• Facility and equipment – You’ll need commercial freezer space and machinery suited for scaling production. Consider co-packing options initially .
• Recipes and packaging – Develop your recipes and source packaging materials approved for frozen storage and microwave/oven reheating.
• Distribution strategy – Decide how you’ll get products to customers – direct store delivery, broad-line distributors, online sales etc.
• Branding and marketing – Create a brand identity and promotional plan to engage customers and gain market visibility.
• Financial planning – Create realistic sales forecasts and budgets. Consider sources of startup capital like loans, grants or crowdfunding.
• Team building – Assemble key talent in areas like product development, operations, sales and financial management.
• Food safety program – Implement proper controls and recordkeeping for food safety, temperature control and supplier management.

Starting small and prioritizing food safety compliance will establish a solid foundation for your frozen food business.

Packing Equipment for Frozen Food

Lintyco  is a pioneer and leader in  automated Pouch Packaging Machines  and  end-to-end packaging systems . Lintyco’s innovative packaging solutions for food, pharma, and other applications are complemented by advanced solutions for  secondary packaging,  wrapping & cartoning, bulk packaging, and more. Whether you are looking for a new machine or a complete line, or if you just want to upgrade your current packaging machine, talk to Lintyco. As experts of the industry with over three decades of proven expertise, Lintyco will provide the optimal solution backed by excellent consultancy and support.

1. What Should I Consider in Terms of Food Safety and Compliance?

Answer: Ensuring your frozen food business complies with food safety standards is critical. This includes having proper storage, handling procedures, and using packaging materials that are suitable for frozen foods.

2.What Are the Initial Steps to Start a Frozen Food Business?

Answer: Starting a frozen food business involves identifying market demand, ensuring food safety compliance, selecting the right packaging and freezing technology, and developing a solid business plan that includes financial planning, branding, and distribution strategies.

3.What Should I Consider in Terms of Food Safety and Compliance?

4.How Can Lintyco Packaging Help in My Frozen Food Business?

Answer: Lintyco Packaging offers a range of automated packaging machines and end-to-end packaging systems that are ideal for frozen food businesses. Our expertise and technology can help streamline your operations and enhance product quality.

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Frozen Food Business Plan

• Description
• Executive Summary
• Products & Services
• Market Analysis

Marketing Plan

• Management Plan

Financial Plan

What you get with frozen food business plan package, i.- executive summary.

The frozen food industry is characterized by limited offerings of highly processed, unhealthy options with no attention to nutrient balance or portion size. For consumers with limited time, meal planning and nutrition education can be difficult. There is a need for frozen food products that offer quick and convenient meals, made with healthful, locally-sourced ingredients, without any artificial colours, flavours or preservatives. In addition, there is need for meal planning services and nutrition education. YumlyYa intends to address these needs by providing frozen meal solutions that are nutritionally balanced and perfectly portioned.

YumlyYa will provide quick, convenient, and nutritious meals made with locally-sourced, sustainably produced ingredients and free of artificial colors, flavors, and preservatives. Our meals will arrive frozen and are perfect portioned, providing the perfect balance of nutrition, taste, and convenience. We will also offer meal planning services and nutrition education to ensure that our customers, individuals and families alike, receive the maximum benefit from our meal solutions.

Target Market

YumlyYa is targeting busy consumers who are looking for convenient, healthy, and balanced meals. Consumers aged 18-35 with an income in the mid- to upper-range are our primary demographics, as they are the most likely to purchase and utilize our products and services. YumlyYa believes that these consumers are looking for better meal solutions, which align with their lifestyle, health goals, and spending habits. We have identified our main target market as millennials and Gen-Xers, who are open to new meal solutions and willing to spend more money on quality products and services. These customers are aware of the importance of good nutrition and are looking for convenient and affordable meal solutions.

Competition

YumlyYa will be entering a competitive market of frozen food products with an already established base of customers and suppliers. The current alternatives/ substitutes in the market include frozen food delivery services, local grocery stores and supermarkets, and meal preparation services. These competitors offer a variety of pre-prepared, frozen meals and snacks, frozen produce and produce with a long shelf life, as well as both online and in-store shopping options for convenience. As such, YumlyYa will need to distinguish its offerings from the competition in order to both capture and maintain customers.

Financial Summary

The financial plan for YumlyYa focuses on costs, sales, and profitability. Some of the key highlights of this plan include the following:

• Start-up costs are estimated to be under $50,000
• Revenue from sales is projected to be in the range of $1.5M - $2M in the first 5 years of operation
• Gross profit is estimated to be around 40% of total sales
• Net profit margins are expected to exceed 10% for the first five years of operations
• Break-even analysis indicates the operations become profitable six months into the start-up

Funding Requirements

YumlyYa requires initial funding of $750,000 to begin operations. This would be used to cover the costs of setting up the facility, purchasing and designing the packaging, designing and building the delivery infrastructure, hiring of personnel and their associated costs, marketing, and any other expenses associated with launching a business.

Breaking this down into more detail, the initial funding will be used to:

• Secure a commercial facility: $250,000
• Purchase equipment and material: $135,000
• Design and produce packaging: $50,000
• Set up and manage delivery infrastructure: $150,000
• Hire and train personnel: $100,000
• Marketing and advertising: $50,000
• Additional set-up costs: $75,000

We anticipate that this initial funding will be sufficient to begin operations, however additional funds may be required in the future in order to grow the business capabilities and reach.

Milestones and Traction

At YumlyYa, we have a clear roadmap to success, through a series of achievable milestones and objectives. We have already completed the initial business concept and researched the market, allowing us to confidently approach the development of our product range, building on a clear understanding of the needs of our target customers and the frozen food industry. We will continue to focus our efforts on making YumlyYa the leading provider in the frozen food space, delivering industry-leading convenience, nutritional value and sustainability.

To ensure progress towards our long-term objectives, we have established a series of short-term deliverables. Over the next three months, we will complete the development of our product range, and begin trial runs with a select group of customers. By the end of the six-month mark, we plan to have begun our full product launch and will commence regular meal planning service and nutrition education campaigns. Finally, we are confident that by the end of the twelve-month period, we will have secured a significant market share in the frozen food industry.

II.- Products & Services

At present, many people in the United States have busy lives and do not have the time to cook fresh, healthy meals for themselves. This leads to many individuals relying on unhealthy, processed foods and lack of proper nutrition. Consumers seek convenient meal solutions that are both delicious and healthy. Unfortunately, current store-bought frozen food offerings lack both quality and health benefits. They often use artificial ingredients and are loaded with excessive sodium, sugar and preservatives.

This need presents an opportunity: to provide convenient and nutritious meal solutions to busy individuals. YumlyYa seeks to provide quality, flavorful, and nutritionally balanced meals made with responsibly sourced ingredients, free of artificial coloring, flavors, and preservatives. We will provide meal planning services and nutrition education to ensure our customers have access to the information they need to make the best choices for their health.

YumlyYa will provide a comprehensive solution to the problem of providing convenient meal solutions. We will be offering pre-made frozen meals, from breakfast, lunch and dinner to snacks and desserts. All of our meals will be made with locally sourced and sustainably produced ingredients, with absolutely no artificial colours, flavours or preservatives, so you can be sure you are getting the very best in frozen meal solutions.

Additionally, we will be providing meal planning services and nutrition education, so you can make sure your meal solutions cover all the bases. Our meals will be nutritionally balanced and perfectly portioned, providing the ultimate convenience while still providing the essential elements of a balanced diet. Our meals are designed to make the mealtime experience enjoyable and straightforward.

Validation of Problem and Solution

With Americans spending more than $50 Billion annually on prepared foods, there is a clear demand for ready-to-eat meals. YumlyYa's meal solutions provide quick, convenient and nutritious options for busy professionals and families, as well as those with dietary restrictions. Additionally, our accessible meal planning services and nutrition education are tailored to meet the needs of our customers.

Our research has shown that customers are looking for convenience as well as nutrition and flavor. In response to these needs, we have developed a range of pre-made frozen meals using locally-sourced and sustainably produced ingredients. Our meals feature no artificial colours, flavours or preservatives, and are all nutritionally balanced and perfectly portioned, ensuring an enjoyable and healthy eating experience.

We have conducted focus group testing and conducted a survey of more than 400 customers in our local market. Our results demonstrate that there is a high demand for convenience and nutritious frozen meals, with a deep appreciation for locally-sourced, sustainably produced ingredients. We have also tested a range of fresh meals varieties that have been well-received, which bolsters our confidence in a successful launch.

Product Overview

YumlyYa is a frozen food company with pre-made meals for every occasion. We offer a selection of 10-20 locally-sourced, healthy, and sustainably produced meals. Our meals cater to all appetites and are prepared with no artificial colours, flavours or preservatives. Our portion sizes are perfectly balanced and nutritionally sound.

Our quick delivery service allows customers to have the convenience of a frozen meal straight to their door. YumlyYa also provides meal planning services and nutrition education to our customers, helping them make the most of their meals.

YumlyYa frozen meals provide a convenient solution to customers who are looking for quick and delicious meals on the go. Our meals are guaranteed to be fresh, healthy and satisfying. By using YumlyYa, customers can ensure their meals are of the highest quality and that their health is taken care of.

At the moment, the frozen food industry has a few key players in the US market. Many of our competitors offer pre-made frozen meals with a wide array of products and choices. However, few offer products with locally-sourced and sustainably-produced ingredients and free from artificial colours, flavours and preservatives. Additionally, many of our competitors offer little to no meal planning services, nutrition education or balanced portioning with their meals.

YumlyYa offers a unique advantage in the frozen food industry. We provide delicious and convenient meal solutions that are all-natural, wholesome and nutritionally balanced. We also offer meal planning services, nutrition education and perfectly portioned meals, making us a more comprehensive solution for those looking for convenient meal solutions.

We have already taken the necessary steps to establishing YumlyYa as the premier choice in the Frozen Food industry. Through careful planning and research, we have sourced the best, locally-sourced and sustainably produced ingredients. We have developed a proven cooking process to create nutritionally balanced and perfectly portioned meals. We have also secured funding to be used for developing and advertising the business.

Looking forward, we plan to use the latest technology and design to ensure fast delivery and easy storage for our customers. We will be developing an online and mobile platform to allow customers to order meals hassle-free. We are also working to build a meal planning service and nutrition education program.

Our roadmap to the future of convenience in the frozen food industry is clear, and we have already taken the first steps needed to achieve our ambitious aims.

III.- Market Analysis

Market segmentation.

YumlyYa plans to reach its target customers in the Frozen Food industry by assessing potential groups of customers separated by specific characteristics, including income level, geographic location, lifestyle, and nutritional needs. The analysis of the target market will enable the company to build an effective strategy to serve the needs of their customers and growth of the business.

The following table provides a breakdown of potential customers in the Frozen Food market based on the shared characteristics:

Target Market Segment Strategy

Our target market is busy working adults and adults living alone, who lack the time and knowledge to cook regular meals. These customers value convenience, efficiency, and great-tasting food, and are looking for a reliable frozen food provider that offers the highest quality ingredients and excellent customer service. We plan to focus our marketing efforts on adults between the ages of 25 and 50, reaching out to them through online campaigns, direct mail, and radio and television advertising.

Our customers are likely to be discerning buyers who want access to a wide variety of delicious and healthy frozen foods. We plan to provide customers with detailed nutritional information and highlight the quality of our ingredients, so they can make informed decisions about the food they purchase. Additionally, our customer service team will be available to answer questions and provide further information about our products.

Key Customers

Our frozen food business plan targets customer archetypes who are health and time conscious. They are motivated by convenience and value, and seek healthy and delicious frozen food options that are easy to prepare. These customers prioritize quality, nutrition, and affordability and value a wide variety of delicious options to choose from. Our key customers are busy people who are invested in their health, and are looking for food solutions that provide all of the above.

Future Markets

From the analysis of the current and potential markets, our frozen food business strategy is well positioned to capitalise on the existing needs of our customers. Our products will provide an affordable and convenient meal solution that keeps our customers happy and satisfied. To ensure that the business is at the top of our customers' minds, we plan to increase marketing efforts, particularly in the digital domain, to expand our reach and solidify our presence. We also plan to conduct research and development to create new flavours and meals, as well as explore new markets and product offerings.

The upside potential for our product remains significant in the long term, given the ever-increasing demand for convenient meal solutions. Ultimately, our strategy is designed to create a competitive and dynamic presence in the frozen food market, which will yield long-term returns in the years to come.

The frozen food market is becoming increasingly competitive as new companies are being established and others are expanding their reach. YumlyYa will be competing in the market with companies such as Nestle, Schwans, and Tyson, who are all well-known and established brands in the foodservice industry. Other national brands, such as Hungry Man, Amy’s Kitchen, Healthy Choice, and Unilever, are also looking to expand their presence in the market. In addition, a wide range of local companies are also emerging as players in the field.

The following table provides a breakdown of potential competitors in the frozen food market:

IV.- Marketing and Sales Plan

YumlyYa's marketing plan will focus on communicating the convenience and quality of our products to the Austin community and beyond. We will leverage multiple advertising channels, both traditional and digital, to reach our target audiences. Our goal is to create brand awareness and build an organic customer base.

YumlyYa plans to implement the following marketing strategies:

• Brand visibility through print and digital advertisements
• Promoting strategically planned events
• Online campaigns driving website and social media engagement
• Email campaigns targeting current and prospective customers
• Influencer outreach and collaboration

We anticipate investing in strategic partnerships and utilizing various digital marketing channels to increase brand presence. Our marketing budget will include a mix of digital and traditional media placements including television and radio commercials, print and digital magazine and newspaper ads, as well as social media and influencer collaborations. We will also be investing in content marketing to drive website traffic and increase brand recognition.

We estimate an advertising budget of approximately $20,000 for the first year. These funds will be allocated to the marketing channels listed above and will be revisited annually to ensure our marketing strategies are up to date and provide effective results. Our primary goal is to generate organic growth by creating a strong and lasting relationship with our customers and to ensure that our products meet and exceed their expectations.

A major component of our marketing and sales plan is our sales plan. We anticipate that, based on current market conditions, capacity, pricing strategy, and other factors, we could realize approximately 500 sales in our first year. We are confident that with effective marketing strategies, we can reach our goal or even surpass it. We will continue to monitor the changing market trends throughout the year to stay abreast of any emerging opportunities.

Location and Facilities

YumlyYa will be based out of Austin, Texas. Utilizing the vast natural resources of the Austin area, YumlyYa will source all of its ingredients locally, ensuring sustainability and freshness. The central location of Austin also provides easy access to our target customer base, allowing for quick and convenient delivery.

Operating costs for the business will be low to moderate. With our facility located in the Austin area, we will have access to a wide range of resources available to us, from production space to operation costs.

We will have the necessary equipment and facilities to prepare, store and transport our meals. Our production facility will be equipped with cutting-edge technology to ensure efficiency and safety. We will also have a digital presence to ensure customer convenience. All of our operations will follow the most stringent health and safety regulations.

Our frozen food business will be utilizing the latest cutting-edge technologies, to produce top-quality food and deliver a world-class service. Our operations will feature an automated production line, computerized tracking and inventory systems, and a fully integrated online ordering system. We will also be utilizing artificial intelligence to develop predictive analytics that will help us to optimize our processes. In addition, we will be investing in a state-of-the-art cold storage and transportation infrastructure to guarantee that our products remain at the highest quality and are delivered on time.

Equipment and Tools

Launching a successful frozen food business requires specialized equipment, including freezers, preparation equipment and packaging materials. An outline of the required equipment and associated costs is presented in the table below. All prices are estimations and subject to change.

V.- Management and Organization

Organizational structure.

Organizational structure is an important part of a successful business plan. It outlines how the business should be managed and how the roles and responsibilities of specific employees are defined. It also outlines how information flows between different levels and departments. The table below provides an overview of the organisational structure of our frozen food business:

Information flows from top to bottom, from the CEO to the customer service team. The CEO sets the company vision and delegates tasks to the COO and other department heads. The COO then oversees the operations and ultimately, delivers the service and product to customers. The financial and marketing managers monitor performance in their respective departments and report back to the CEO.

Management Team

We anticipate taking on high-level management roles within our company. We have identified the following potential candidates for these positions:

Management Team Gaps

At present, our frozen food business plan has identified several gaps in our management team. In particular, our team lacks knowledge and expertise in the areas of product development, marketing, and customer service. Although we have candidates in mind to fill these roles, they have not been fully vetted nor have their roles been completely defined. Furthermore, we are still in the process of hiring a Director of Human Resources to assist with the onboarding and orientation of new team members.

Personnel Plan

In order to run our frozen food business effectively, we will need to establish a team of personnel that possess the necessary skills and expertise. The table below outlines the potential positions we expect to have in order to run the business successfully.

Company History and Ownership

YumlyYa was founded by entrepreneurial cousins Ashley and Jason in 2021 to revolutionize the frozen food industry. They were both passionate and dedicated to creating healthy, delicious, and convenient meals for busy professionals and families. They had the vision to bring high-quality, pre-made frozen meals to households around the world. The company started off with a small store in Austin, Texas, where they designed and offered their products.

YumlyYa has grown from a small local business to a larger enterprise, thanks to the founders' dedication and hard work. YumlyYa is now a team of dedicated professionals and the business has expanded tremendously over the past few years. YumlyYa is still owned and operated by Ashley and Jason, who strive to bring their customers the best frozen meals available. They are committed to utilizing locally-sourced and sustainably produced ingredients as well as providing excellent customer service.

To ensure we maintain efficient management and organization of our frozen food business, we have created a detailed roadmap in a table format of specific goals and objectives that we plan to achieve. These goals and objectives will help us manage and steer our business towards success and future growth. The table below outlines the timeline for our business objectives, including our key milestones and each individual goal.

Key Metrics

Business performance and health can be gauged effectively by monitoring key performance indicators (KPIs). For a frozen food business, these may include revenue, customer engagement, and production efficiency. Track revenue to identify which products, suppliers, and markets are growth drivers while keeping a close eye on customer engagement to measure customer satisfaction. Finally, closely monitor production process efficiency to ensure that the products are being produced cost-effectively and meeting quality standards.

VI.- Financial Plan and Metrics

Sales forecast.

Projected sales for the next three years are outlined in the following table.

Frozen Food Financial Plan Key Inputs

When planning to open a frozen food business, it is critical to consider all necessary expenses before committing to this venture. Below are two tables that outline the expected startup costs and necessary operational expenses for the business.

Table 1: Startup Costs

Table 2: operational expenses.

This part of the business plan is where we present the three main financial documents of any startup: the income statement, the cash flow statement, and the balance sheet. All of these documents represent the financial health of our frozen food business, helping us to project expected income, expenses, and debt to better understand our profitability and vulnerabilities. With the help of these documents, we will be able to track our financial progress in the coming months.

The income statement is a summary of our earnings and expenses, providing a detailed look at our operating performance over a given period of time. The cash flow statement breaks down the sources of funds used to fund operations and investments, and shows our cash position at any given time. Finally, the balance sheet provides a snapshot of our financial health, summarizing assets and liabilities at a given point in time.

We will use these documents to plan out our expenses, track our progress, and ensure that we are staying within our budget. With a strong financial plan, we will have the resources necessary to make our frozen food business a success.

Frozen Food Financial Plan Profit & Loss Statement

Frozen Food Financial Plan Cash Flow Statement

Frozen Food Financial Plan Balance Sheet Statement

Our frozen food business plan requires personnel who understand the local market, who can assist in developing the business's operation strategies and bridge the gap between production needs and customer demands. To this end, we will recruit a team of professionals with experience in production, sales and marketing, customer relations, and more. Our personnel plan outlines how and who we intend to hire, what level of compensation will be offered, and how employees will fit into business operations.

We will hire a manager and a bookkeeper for the business. To optimize performance and oversight, the manager's primary responsibility will be to administer the daily operations, maintain tight expense controls, oversee inventory management, and ensure customer satisfaction. The bookkeeper will be charged with keeping financial records, managing invoices, paying bills, monitoring pricing, and tracking overall financial performance.

The compensation for these individuals will depend on their qualifications and experience. Additionally, there is the opportunity for yearly bonuses once the business has achieved a certain level of success. In terms of how employees will fit into business operations, the manager and bookkeeper will report directly to the business owner, but will have autonomy over the day-to-day operations.

We plan to hire additional staff as needed to assist in sales, marketing, customer service, and other tasks. As the business grows, we will review our personnel plan to ensure it still meets the needs of the business. In this way, our frozen food business plan can grow and succeed over time.

Capital Requirements and Use of Funds

Our frozen food business requires capital to get started and obtain the necessary equipment and supplies to launch the business. Based on our business model and growth projections, we will need to acquire approximately $500,000 of capital to get started. This capital will be used to purchase the needed equipment, supplies, and inventory to operate the business. Additionally, funds will be used for marketing and advertising activities to increase product awareness and drive sales. Lastly, funds will be used to cover operational costs and to pay salaries of initial employees.

We are currently seeking investors or lenders to provide us with the necessary capital for the business. We have established a clearly defined plan for how the capital will be used and have detailed explanations of the potential returns that our investors/lenders can expect to make. We are confident that our business plan presents a compelling long-term investment opportunity.

Exit Strategy

Our goal for the frozen food business is to create a successful, profitable enterprise that can be used to expand into various other markets. To achieve this end-goal, we will have planned exit strategies outlined from the onset. The options we have considered for exiting the business include acquisition, sell-off, transfer to a family member or employee, and IPO.

Our acquisition exit plan is designed to maximize the value of our business when acquired. We will determine the most advantageous timing for the sale, ensuring that the business and assets can be sold at a premium. Our sell-off exit plan is structured to monetize our business and assets at the most favorable terms. This plan allows us to realize profits quickly, while still maximizing the return to our stakeholders.

If an acquisition or sell-off is not feasible, our exit plan includes an option to pass the business to an approved, trusted family member or employee. This approach protects the continuity of the business and its associated assets.

Finally, an initial public offering (IPO) exit plan is in place should the company seek to go public. This exit plan will be based on market conditions and the current state of the company. The goal of this option is to maximize value and mitigate risk for our stakeholders.

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Resources On Frozen Food

• Financial Model
• Value Proposition
• One-Page Business Plan
• SWOT Analysis
• Business Model

Marketing Plan

• Bundle Business Plan & Fin Model
• Description

Executive Summary

Products & services, market analysis.

• Management Plan
• Financial Plan

Frostbite Foods is addressing the need for convenient and sustainable food options for health-conscious individuals living in urban areas. With busy schedules, people are looking for quick and healthy meal solutions that do not compromise on taste. Additionally, consumers are increasingly concerned about the negative environmental impact of food production and transportation. Frostbite Foods' direct-to-consumer online marketplace offers a solution by providing high-quality flash-frozen meals and ingredients sourced from local farms and producers, reducing food waste and carbon footprint. Frostbite Foods' personalized customer service ensures a seamless experience for health-conscious individuals seeking convenient and sustainable food options.

Frostbite Foods aims to provide a solution for health-conscious individuals living in urban areas who are seeking a convenient and sustainable food option. Our direct-to-consumer online marketplace offers a variety of high-quality flash-frozen meals and ingredients sourced from local farms and producers. With menus that rotate weekly and personalized customer service, we strive to make it easy for our customers to maintain a healthy lifestyle without sacrificing convenience or taste.

Target Market

The target market for Frostbite Foods includes health-conscious individuals living in urban areas. These individuals are seeking convenient and sustainable food options that align with their dietary preferences and lifestyles. They are willing to pay a premium for high-quality, locally sourced ingredients and expect a personalized level of service from their food provider.

Frostbite Foods' target customers are likely to be young professionals, busy families, and fitness enthusiasts who prioritize healthy food options. By offering vegan, vegetarian, and paleo options, Frostbite Foods can attract a diverse customer base with varying dietary needs and preferences.

The direct-to-consumer online marketplace also caters to the busy lifestyles of urban residents who may not have the time or resources to shop for and prepare high-quality meals. Frostbite Foods provides a convenient solution without compromising on quality or sustainability.

Competition

Financial summary.

Key highlights of the financial plan are as follows:

• The company will require an initial investment of $1.5 million to start the business.
• Frostbite Foods will focus on building the online platform, sourcing ingredients, and building relationships with local farmers and producers.
• The company aims to break even within the first 2 years of operations.
• By the end of year five, the company expects to generate an annual revenue of $4.5 million.
• The company will seek additional funding to expand its operations throughout the US.
• The cost structure includes ingredient and production costs, website and operational expenses.

Funding Requirements

Our Frozen Food startup, Frostbite Foods, requires an initial investment of $1.5 million to start the business and prepare for operations. This investment will be used for the following purposes:

• Building the online platform
• Sourcing ingredients
• Building relationships with local farmers and producers
• Equipment purchases
• Salaries for initial hires
• Marketing and advertising costs

We plan to break even within the first two years of operations and generate an annual revenue of $4.5 million by the end of year five. To achieve this goal, we will seek additional funding to expand our operations throughout the US.

Milestones and Traction

As a startup, Frostbite Foods has several key milestones planned to ensure its success in the frozen meal market:

By hitting these milestones, Frostbite Foods is confident in its ability to establish a loyal customer base and become a leading player in the frozen meal market.

Problem Worth Solving

Frostbite Foods intends to solve the problem of limited access to healthy and sustainable food options for health-conscious individuals living in urban areas. The current food industry offers limited options for individuals who prioritize their health and the planet's sustainability while living in urban areas. Fast food and confectionery are easily accessible, but locally sourced, healthy and sustainable food options are not. The frozen meal participants typically rely on food with chemicals and preservatives, which significantly reduce the nutritional value of their product.

Frostbite Foods' goal is to provide a convenient and sustainable food option to individuals that seek to enhance their lifestyle, health, and atmosphere of their homes. Frostbite Foods will solve the issue of limited access to healthy and sustainable food options by providing flash-frozen meals and ingredients that are locally sourced and high-quality. This solution would provide maximum convenience to the customers, who would also get the assurance that the meals are healthy, fresh, and not tampered with.

Our Solution

Validation of problem and solution, product overview.

Frostbite Foods will offer high-quality, flash-frozen meals and ingredients sourced from local farmers and producers. Our products will cater to health-conscious individuals living in urban areas seeking a convenient and sustainable food option. We will provide a variety of vegan, vegetarian, and paleo options with rotating menus weekly.

Our flash-freezing process will ensure the freshness and taste of our meals and ingredients. This will allow our customers to enjoy locally sourced food year-round, even when certain produce is out of season. We will also provide personalized customer service to ensure that our customers are satisfied with their orders and overall experience with Frostbite Foods.

Our mission is to provide our customers with a convenient and sustainable food option without compromising on quality and taste. By partnering with local farms and producers, we aim to support our community while providing healthy and delicious meals.

There are several companies currently offering frozen meals and ingredients, however, Frostbite Foods differentiates itself by sourcing directly from local farms and producers. This allows us to offer higher quality, fresher ingredients while supporting local businesses. Additionally, our rotating weekly menus featuring vegan, vegetarian, and paleo options provide a broader range of choices for health-conscious consumers. Our personalized customer service also sets us apart, ensuring our customers feel valued and heard. Overall, Frostbite Foods aims to provide a unique and sustainable option for individuals seeking healthy and convenient meals.

Roadmap: Products & Services

At Frostbite Foods, we are committed to providing our customers with top-quality, locally sourced flash-frozen meals and ingredients. Here is a detailed roadmap of the steps we have taken so far, as well as our plans for growing our business:

As we continue to grow our business, we plan to expand our product offerings, increase our geographic reach, and seek additional funding to support our ambitious goals. Our team is dedicated to the success of Frostbite Foods and to providing our customers with the highest-quality frozen meals and ingredients on the market.

Market Segmentation

Our potential customer segments can be categorized based on specific characteristics:

Target Market Segment Strategy

Our frozen food business targets health-conscious individuals living in urban areas who prefer a sustainable and convenient food option. Our ideal customer is someone who prioritizes fresh and locally sourced ingredients, but may not have the time to shop frequently or prepare meals from scratch. By offering high-quality, flash-frozen meals and ingredients sourced from local farms and producers, we are able to provide a convenient and healthy food option for busy professionals and families.

Key Customers

Our ideal customer is a health-conscious urbanite who values quality, convenience, and sustainability. They are busy individuals who want to eat well without sacrificing taste or nutrition. They are active on social media and are enthusiastic about sharing their latest finds with their followers. They see our products as a way to support local farms and producers while still enjoying their favorite meals at home. They are the main advocates for our business, spreading the word about our products and services to their friends and family.

Future Markets

Based on the previous market analysis, our direct-to-consumer online marketplace for high-quality, flash-frozen meals and ingredients sourced from local farms and producers has significant growth potential. We plan to expand our customer segments to include busy, working families and individuals who prioritize convenience and healthy food options.

Additionally, we aim to partner with local gyms and fitness studios to provide pre- and post-workout meal options, catering to the growing population of fitness enthusiasts. Our business strategy of sourcing locally and providing personalized customer service sets us apart from traditional frozen food options and positions us for success in the future market.

Here is a table of potential competitors in the direct-to-consumer online marketplace for high-quality, flash-frozen meals and ingredients:

While these competitors offer similar value propositions, our focus on sourcing from local farms and producers sets us apart and allows us to appeal to customers who are specifically interested in supporting sustainable, local food systems.

Marketing and Sales Plan

Our marketing plan will first focus on building brand awareness and generating interest in our direct-to-consumer online marketplace. We will utilize targeted social media advertising and influencer partnerships to reach health-conscious individuals living in urban areas. We will also participate in local food festivals and events to showcase our products and engage with potential customers. Our advertising channels will include:

• Social media advertising: $5,000 per month
• Influencer partnerships: $3,000 per month
• Local event participation: $1,000 per month

Our goal is to generate at least 1,000 orders per month within the first year of operations.

Location and Facilities

Frostbite Foods will be headquartered in San Francisco, California, which is known for its progressive views on health and wellness. The company will initially operate as an online marketplace, eliminating the need for a physical storefront. However, the company may consider establishing a physical location in the future to provide an immersive experience for customers.

The costs of operation in San Francisco may be higher than other cities, but the city's reputation for health and wellness aligns with the company's values and customer segment. The online marketplace will be the primary channel for sales, reducing the need for high overhead costs associated with a physical location.

The main facilities required for Frostbite Foods will include a kitchen and storage space for ingredients and finished products. The company will source ingredients from local farms and producers, reducing transportation costs and ensuring fresh ingredients for each meal. The kitchen will be equipped with flash-freezing technology to preserve the quality and freshness of the meals and ingredients.

Frostbite Foods will utilize cutting-edge technology to provide a seamless online marketplace for customers to purchase flash-frozen meals and ingredients. The website will be designed to provide an easy-to-use interface, where customers can browse through the available meal options and place their orders directly. The website will be optimized for mobile and desktop access to ensure broad customer reach.

The company will also use technology to optimize its logistics and supply chain processes. This includes utilizing inventory management software to track ingredient availability and production levels, as well as implementing efficient shipping and delivery processes to ensure timely and fresh delivery of meals and ingredients to customers. The technology used will be constantly upgraded to ensure a streamlined and efficient online marketplace for the customers.

Equipment and Tools

Our direct-to-consumer online marketplace for high-quality, flash-frozen meals and local ingredients requires specific equipment and tools for sourcing, preparing, and packaging our products. Here is an outline of the required equipment or tools and the associated costs:

Our initial equipment costs will be a significant investment, but we believe that sourcing locally and flash-freezing our meals and ingredients will allow us to offer high-quality, convenient, and sustainable food options to health-conscious individuals living in urban areas. We plan to prioritize customer service and communication by offering personalized service through our online marketplace, and we anticipate revenue streams from the sales of our flash-frozen meals and locally sourced ingredients.

Management and Organization

Organizational structure.

Our direct-to-consumer online marketplace for high-quality, flash-frozen meals and ingredients is organized as follows:

Information flows from the customer support team to the COO and CEO, who make strategic decisions and communicate those decisions back down to the team. The CMO and CFO work in tandem with the CEO and COO to ensure efficient operations and sustainable growth.

Management Team

As a fast-growing frozen food business, we anticipate taking on high-level management roles within our company. We have a table of potential candidates with varying backgrounds and experiences who can bring unique skills to our team. The management team will be responsible for overseeing all aspects of the business, including sourcing, preparing, and packaging flash-frozen meals and ingredients, managing the online marketplace, and providing excellent customer service. We will prioritize hiring individuals with a deep understanding of sustainability, nutrition, and the local food economy, as well as those with experience in e-commerce, food service, and culinary arts. Our goal is to build a diverse team with a passion for providing high-quality, convenient, and sustainable food options to our customers.

Management team gaps

At this point in our frozen food business plan, we currently do not have candidates ready to fill the roles of logistics manager and marketing director. We are actively seeking candidates with experience in these areas to complete our management team.

Personnel Plan

Effective management and organization are crucial for the success of our direct-to-consumer online marketplace for high-quality, flash-frozen meals and ingredients. To ensure the smooth running of our business, we will require the following positions:

Company History and Ownership

Frostbite Foods is a new frozen food startup that is set to revolutionize the frozen meal market by offering convenient access to locally sourced, high-quality flash-frozen meals and ingredients. The company was founded in 2021 by a team of experienced business consultants who saw the need for a sustainable and healthy food option for health-conscious individuals living in urban areas.

The team brings a wealth of experience in business management, marketing, and entrepreneurship to the table, which has been instrumental in creating a business plan that is set to succeed. With passion and dedication, Frostbite Foods is on track to meet its business goals, establish a loyal customer base, and become a leading player in the frozen meal market.

The company is privately owned and operated by a team of skilled and experienced professionals who are committed to providing high-quality products and personalized customer service. The management team has a clear vision for the future of the company and is focused on delivering outstanding results for its customers and stakeholders.

Our management team has developed a detailed roadmap of specific goals and objectives that we plan to achieve in order to effectively manage and steer Frostbite Foods to success. The following HTML table format outlines our milestones:

Key Metrics

As with any business, it's essential to track key performance indicators (KPIs) that help measure the success and overall health of the company. Some important metrics to track for our direct-to-consumer online marketplace for high-quality, flash-frozen meals and ingredients might include:

• Sales volume and revenue
• Customer acquisition and retention rates
• Customer feedback and satisfaction ratings
• Website traffic and conversion rates
• Production costs and margins
• Growth in partnerships with local farms and producers

By regularly monitoring these metrics, we can make informed decisions to optimize our business model and ensure long-term sustainability and success.

Financial Plan and Metrics

Sales forecast.

Below is a breakdown of projected sales for Frostbite Foods for the years 2023, 2024, and 2025. The first column is for Sales Forecast broken down by product categories with the Total at the bottom, all the rest columns - for years.

We anticipate steady growth in sales over the next three years as we establish Frostbite Foods as a go-to source for health-conscious individuals seeking convenient and sustainable food options. The variety of menu options and personalized customer service is expected to contribute significantly to this growth.

Starting and operating a direct-to-consumer online marketplace for high-quality, flash-frozen meals and ingredients sourced from local farms and producers require certain expenses.

Startup Costs

Operational expenses (monthly).

By efficiently controlling our operational and startup expenses, we are committed to achieving profitability within the first year of operation.

Projected Profit and Loss

Our financial plan and metrics for Frostbite Foods aim to break even within the first two years of operations and generate an annual revenue of $4.5 million by the end of year five. Below is a profit and loss statement for the first three years of the business:

As seen above, we anticipate significant growth in revenue and profitability in the first three years of the business, with a net profit margin of 5% in 2023, and reaching up to 30% by 2025. We will continue to focus on cost management and revenue growth to ensure long-term sustainability and success.

Projected Cash Flow

Below is a projected cash flow statement for Frostbite Foods for the years 2023, 2024, and 2025:

The projected cash flow shows that Frostbite Foods will require an initial investment of $1.5 million to start the operations, but aims to break even within the first two years of operations and generate an annual revenue of $4.5 million by the end of year five. With a projected cumulative net cash flow of $5.6 million by the end of 2025, the company's financial plan is promising.

Projected Balance Sheet

Below is the projected balance sheet statement for the next three years (2023, 2024, 2025) for our direct-to-consumer online marketplace for high-quality, flash-frozen meals and ingredients sourced from local farms and producers:

We expect our assets to increase as we expand our product offerings and customer base. Our liabilities will also increase as we invest in new technology and infrastructure to support our growth. Our equity will come from initial investments, projected profits, and potential future funding rounds.

Initially, the direct-to-consumer online marketplace for high-quality, flash-frozen meals and ingredients sourced from local farms and producers will have a small core team consisting of a founder, web developer, and food preparation personnel. As the business expands, we plan to hire additional skilled personnel, including sales and marketing professionals, regional managers, and logistics personnel.

We will compensate our personnel with competitive salaries and benefits packages, including health insurance and retirement plans. Employee performance evaluations will be conducted regularly to provide feedback and foster growth opportunities.

Our employees will fit into our business operations by working collaboratively to ensure that our customers receive the highest quality products and service. Our team will be passionate and knowledgeable about local agriculture and food systems, and we will provide ongoing training and development to ensure they are equipped with the skills needed to deliver exceptional customer experiences.

Use of Funds

Below is a breakdown of how the $1.5 million initial investment will be used to start Frostbite Foods:

These funds will allow Frostbite Foods to establish a high-quality online marketplace, source and prepare locally sourced ingredients, and execute a successful marketing strategy to reach our target customers. The company aims to break even within the first 2 years of operations and generate an annual revenue of $4.5 million by the end of year five through continued investment and expansion.

Exit Strategy

Our exit strategy is not immediate and will depend on the future growth and success of the business. However, we envision a potential sale or acquisition by a larger player in the food industry who shares our values of sourcing locally and sustainably. Alternatively, we may consider passing on the business to a family member or employee who is passionate about continuing our mission and values.

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Frozen Yogurt Business Plan Template

Written by Dave Lavinsky

Frozen Yogurt Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their frozen yogurt companies.

If you’re unfamiliar with creating a frozen yogurt business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a frozen yogurt business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Frozen Yogurt Business Plan?

A business plan provides a snapshot of your frozen yogurt business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Frozen Yogurt Shop

If you’re looking to start a frozen yogurt business or grow your existing frozen yogurt company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your frozen yogurt business to improve your chances of success. Your frozen yogurt business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Frozen Yogurt Businesses

With regards to funding, the main sources of funding for a frozen yogurt business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for frozen yogurt companies.

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How to write a business plan for a frozen yogurt business.

If you want to start a frozen yogurt business or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component of your frozen yogurt business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of frozen yogurt business you are running and the status. For example, are you a startup, do you have a frozen yogurt business that you would like to grow, or are you operating a chain of frozen yogurt businesses?

Next, provide an overview of each of the subsequent sections of your plan.

• Give a brief overview of the frozen yogurt industry.
• Discuss the type of frozen yogurt business you are operating.
• Detail your direct competitors. Give an overview of your target customers.
• Provide a snapshot of your marketing strategy. Identify the key members of your team.
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of frozen yogurt business you are operating.

For example, you might specialize in one of the following types of frozen yogurt businesses:

• Brick and mortar : this type of frozen yogurt business is a traditional frozen yogurt shop that serves a variety of traditional flavors.
• Organic: this type of frozen yogurt business focuses on serving frozen yogurt made from all-natural ingredients and is usually made on-location.
• Non-dairy: this type of business will serve non-dairy versions of favorite frozen yogurt flavors. It is a favorite of vegans.

In addition to explaining the type of frozen yogurt business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of customers served, the number of bowls served with positive reviews, reaching X number of yogurt served, etc.
• Your legal business Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the frozen yogurt industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the frozen yogurt industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your frozen yogurt business plan:

• How big is the frozen yogurt industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your frozen yogurt business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your frozen yogurt business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals of all ages and families with children.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of frozen yogurt business you operate. Clearly, families would respond to different marketing promotions than a young college student, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other frozen yogurt businesses.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes grocery stores, restaurants, or farmers markets. You need to mention such competition as well.

For each such competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

• What types of customers do they serve?
• What type of frozen yogurt business are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide a variety of flavors?
• Will you offer products or services that your competition doesn’t?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a frozen yogurt business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of frozen yogurt company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide ice cream, beverages and snacks?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your frozen yogurt company. Document where your company is situated and mention how the site will impact your success. For example, is your frozen yogurt business located in a busy retail district, near a school, a mall, or purely online? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your frozen yogurt marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in local papers, radio stations and/or magazines
• Reach out to websites
• Distribute flyers
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your frozen yogurt business, including purchasing ingredients, making frozen yogurt, fulfilling customer orders, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to sell your Xth frozen yogurt, or when you hope to reach $X in revenue. It could also be when you expect to expand your frozen yogurt business to a new city.  

Management Team

To demonstrate your frozen yogurt business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing frozen yogurt businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a frozen yogurt business or successfully running a small restaurant.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you sell 5 frozen yogurt cones/bowls per day, and/or offer other revenue generators such as ice cream or beverages? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your frozen yogurt business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a frozen yogurt business:

• Cost of kitchen equipment and yogurt inventory
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your frozen yogurt location lease or a list of flavors you plan to offer.  

Writing a business plan for your frozen yogurt business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the frozen yogurt industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful frozen yogurt business.  

Frozen Yogurt Business Plan Template FAQs

What is the easiest way to complete my frozen yogurt business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your frozen yogurt business plan.

How Do You Start a Frozen Yogurt Business?

Starting a frozen yogurt business is easy with these 14 steps:

• Choose the Name for Your Frozen Yogurt Business
• Create Your Frozen Yogurt Business Plan
• Choose the Legal Structure for Your Frozen Yogurt Business
• Secure Startup Funding for Your Frozen Yogurt Business (If Needed)
• Secure a Location for Your Business
• Register Your Frozen Yogurt Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Frozen Yogurt Business
• Buy or Lease the Right Frozen Yogurt Business Equipment
• Develop Your Frozen Yogurt Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Frozen Yogurt Business
• Open for Business

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16 Ways How to Start a Profitable Frozen Food Business

Frozen foods are a segment of the food industry that is relatively new and have a lot of potential. With a growing demand for frozen foods, a vast potential market awaits tapping. However, like any business, starting a commercial frozen foods business requires careful planning and execution.

Starting a frozen food business requires thorough market research, solid business plans, and equipment. Companies must invest in high-quality equipment and ensure that employees are adequately trained to operate and maintain it while adhering to safety protocols.

Here we will point out some vital 25 tips for starting a successful frozen food business in this blog post.

1. Conduct a Market Research

Most people, especially in the first few stages of the frozen food business, need to consider market research before starting a frozen food business. However, you should conduct market research to understand your target market and competition.

You can conduct surveys or visits to view the frozen foods industry to understand demand and potential market size. This will help you identify market gaps and develop a unique selling proposition that sets you apart.

2. Develop a Business Plan

Frozen food businesses can use the right equipment and processes to produce high-quality products that meet consumer demand and contribute to a successful and profitable business. It is perfect to have a business plan at hand prepared for your frozen foods business. This plan should include your marketing strategies, product list, company profile, and financial projections. 

3. Invest in high-quality equipment

The equipment used in a frozen foods business is designed to efficiently and effectively produce, store, and transport frozen food products while maintaining their quality and safety. These machines are constructed using various components, including food processing equipment, refrigeration systems, conveyor belts, packaging machines, and many more.

Businesses must invest in high-quality equipment and regularly maintain and upgrade it to ensure optimal performance and minimize downtime. The equipment used for making frozen foods you are about to source will depend on some standard pieces of equipment used in a frozen foods business:

(a). Blast Freezer:

The blast freezer is revolutionizing the frozen food business industry. With its innovative technology, this freezer can rapidly freeze and store food products at temperatures lower than regular freezers. This allows for more efficient storage of frozen foods and longer shelf life. In addition, blast freezers are energy efficient, making them an economically viable option for businesses. Thus, these freezers are becoming increasingly popular among food businesses looking to maximize their storage capabilities and reduce costs.

  (b). Commercial Ovens:

Commercial ovens are used in the production of many frozen foods right now. This product currently has a massive market, and the demand is increasing. The goods that are produced in ovens vary according to the product.

Commercial ovens are essential for any frozen foods business as they allow for efficient and consistent cooking of a wide range of frozen foods. Various commercial ovens are available on the market, each designed for different needs.

From convection ovens to deck ovens and blast chillers, the proper commercial range can help create delicious frozen food products with minimal effort and maximum efficiency whether baking frozen pizzas, heating frozen appetizers, or cooking frozen entrees, commercial ovens can help you do the job quickly and consistently.

  (c). Food Processor:

Food processors are a must-have item for any frozen foods business. They offer an array of functions and features to help prepare, cook, and pack frozen foods quickly and efficiently. Their versatility makes them essential in the production of quality frozen food products. With their ability to chop, blend, mix, knead, grind, and more – food processors are the perfect tool to save you time while producing high-quality products.

  (d). Packaging Machine:

Frozen food is already a booming business. However, the cost of packaging is a considerable hurdle for frozen food manufacturers. Packaging machines ensure food quality at a low price and with less waste. This can help businesses save money on packaging materials, reduce their carbon footprint and improve their employee health.

With the right packaging equipment, companies can provide their customers with high-quality frozen food products that are safe for consumption. Various packaging machines are available, including shrink-wrapping devices, bagging machines, and sealing machines. Additionally, these machines must be able to handle extreme temperatures and humidity levels to maintain the integrity of the product.

(e). Mixer: 

Mixer is a high-tech food mixer (freezer) designed to spin, mix, and cook food in the freezer without disturbing its temperature. It is the most convenient way of mixing frozen foods.

(f). Slicer: 

Slicer is an excellent tool for frozen foods businesses as it can help in slicing different types of frozen foods quickly and efficiently, saving time and increasing productivity. Slicers can cut frozen meats, cheeses, vegetables, and fruits, commonly used in frozen food products.

Using a slicer for the frozen foods business can also ensure consistent and uniform slices, vital for maintaining the quality of frozen food products. This can help in attracting more customers and building a loyal customer base.

(g). Scales:

Scales are a valuable tool for any frozen foods business. They can be used to weigh and portion frozen foods accurately, which is crucial for maintaining consistency in portion sizes and ensuring that customers get the correct amount per purchase.

(h). Refrigeration Units: 

Refrigeration units are indispensable to any food-related business. They provide a safe and efficient means of storing frozen foods at the optimal temperature to maintain freshness and quality. A refrigeration unit is suitable for every need, from walk-in freezers to reach-in fridges. With the help of modern technology, these units are becoming more energy-efficient and cost-effective, helping businesses save money in the long run.

Several types of refrigeration units are available, such as reach-in freezers, blast chillers, and walk-in coolers. Each class offers unique benefits for frozen food businesses looking for the most efficient and cost-effective solution.

  (i). Filling Machines:

Using a filling machine for frozen foods can also help reduce waste and increase profits by minimizing the amount of product wasted due to overfilling or underfilling. Filling machines are precision equipment that will accurately fill containers with the desired amount of output, which is essential for maintaining consistency and quality in frozen food products. Additionally, filling machines are designed to handle different types of packaging materials, which can provide more flexibility in packaging options.

(j). Freezer Shelving:

Nowadays, people buy frozen food items online. But many freeze at home and bring to the market too late. This means the product is not fresh and ready to use when bought. Thus, they have to be thawed before use and then resold again. Freezer Shelving is a must-have for this business. For commercial operation, it can't be installed at home. It may be difficult to install because of a lack of skilled installation staff or the high installation cost.

In outlets, freezer shelving can also be used to display frozen products to customers in an attractive and organized way. By arranging products visually appealingly, customers are more likely to be drawn to the products and make a purchase. Moreover, the product requires a professional installation service which takes time so that it doesn't get damaged or damaged during usage, just like other products in the market business.

(k). Labeling Machine:

A labeling machine labels frozen food products with important information such as product name, ingredients, nutritional information, and expiration date.

Labeling equipment plays a vital role in the frozen food business. It helps to accurately identify and track products, allowing companies to stay organized and efficient. Various labeling machines are available on the market, from basic hand-held label printers to automatic labelers that can include barcodes or RFID tags for easy product tracking. Whether you need labels for cases or individual items, this equipment can help your frozen food business run smoothly and efficiently.

(l). Water Treatment System:

A water treatment system is essential for maintaining the safety and quality of frozen food products. This system filters and purifies the water used in production, which helps remove contaminants, bacteria, and other pollutants. Investing in this vital equipment will pay off since a higher-quality product comes with fewer harmful substances that customers can enjoy.

 (m). Pallet Jacks:

Pallet jacks are an invaluable tool for the food industry, enabling the efficient movement of pallets of frozen products from one production area to another. This reduces manual labor and minimizes the risk of product damage during transportation. With their quick maneuverability and low cost, pallet jacks can help streamline operations while ensuring the safety and quality of food products.

  (n). Heat Sealer:

Heat Sealer is the perfect solution for keeping frozen foods fresh, delicious, and long-lasting. This innovative product uses heat-sealing technology to lock in flavor and preserve food for up to 12 months. Heat sealer can save time and energy on meal preparation. It can also eliminate potential food waste with its airtight seal. Anytime you're looking for a product to keep your frozen foods fresh and delicious, look no further than the Heat Sealer!

  (o). Metal Detectors: 

Metal detectors are one of the must-have essential requirements to have in the food industry. They are used to detect any metal contaminants that may be present in frozen food products. Doing this can help ensure the final product's safety and prevent potential consumer harm. By using these detectors, manufacturers can quickly and easily identify any metal particles that may have entered their production process, allowing them to take preventative measures and keep their food products safe for consumption.

After selecting the equipment you may use in your commercial frozen food business, you can continue with the rest of the setup plans below.

4. Choose a Location

Live in a cold climate? You are going to start a frozen foods business. The first step is choosing the location you want to operate from. Then consider the types of stores that will work for your business. You must have sufficient parking and access to loading docks if you use a warehouse.

A location with high foot traffic and easy accessibility is ideal, such as a strip mall or a busy street. You must ensure the site has adequate space for storing, displaying, and preparing frozen foods.

5. Choose Your Products

Once you have conducted market research and developed an ideal business plan, it is time to choose the products you will sell. Consider what types of frozen foods are in high demand in your area and what products you want to specialize in.

The type of equipment you will source may depend if you sell various frozen foods or focus on a specific niche, such as vegan or gluten-free products.

Once you have reviewed the right equipment for your frozen food business, you can move to the next plan below.

6. Find a Supplier

Compare prices from different suppliers before choosing the best one. Remember, you want a product that will last long enough to make the most money.

7. Source Quality Products

Frozen foods are an essential part of a health-conscious lifestyle. They provide an excellent option for those on the go and also those who want to lose weight and maintain their health.

However, many frozen foods are of low quality, or these products are bought from unreliable sources and damaged due to poor storage practices. It will help if you consider packaging and labeling your products, as this can affect their appeal to customers.

8. Invest in Marketing and Branding

A unique brand identity is crucial to branding your frozen foods business. It helps the brand stand out from competitors and becomes a point of discussion among your customers. You can invest in advertising, social media marketing, and promotions to create awareness and attract customers.

In today's digital age, having a solid online presence is essential for any business. This includes creating a website, social media profiles, and other digital marketing efforts to reach potential customers online. Consider offering discounts and promotions to encourage repeat business.

You can also use platforms like e-commerce marketplaces or online stores to sell your products. By developing a robust online presence, you can expand your retail reach and grow your customer base within your area.

Marketing and advertising are essential for promoting your frozen foods business and attracting new customers. DevelopingIt would help if you could partner with or outsource your marketing activities to promote your products. A comprehensive marketing plan that includes offline and online marketing strategies is necessary. could with outsource

9. Obtain Permits and Licenses

You must obtain permits and licenses to operate your frozen foods business legally. The requirements vary depending on your country or the locations of your physical store and the type of foods you sell. You can contact your local government offices or consult a lawyer to comply with all the necessary regulations.

10. Hire and Train Staff

When hiring good staff for your frozen foods business, you must ensure they are good at customer service and food safety. You should ensure they understand your business values and goals and are committed to delivering quality customer service.

8. Monitor and Adjust Your Business Strategy

The frozen food business is a growing and profitable industry. It will help if you keep your business growing at a steady pace. You need to monitor and adjust your business strategy as necessary.

This includes tracking your sales, profits, and expenses and changing your marketing and operational plans as required. Stay up-to-date with industry trends and customer preferences to stay afloat.

9. Provide Excellent Customer Service

Another viable way to build a loyal customer base and attract new customers is through word of mouth when you provide excellent customer service. Customers are indeed the lifeblood of any business, they say. Hence, it is crucial to train your employees and clients so that they can provide excellent customer service. Listening to customer feedback and promptly addressing concerns or complaints would be best.

10. Continuously Improve Your Products and Services

The frozen food industry faces a significant challenge as innovators seek new technologies and products. This includes sourcing new and innovative products, improving packaging and labeling, and exploring new marketing and sales channels.

You should develop a customer report plan that, if used effectively, can increase your business. By continuously improving your products and services, you can stay ahead of the competition and grow your business over time.

11. Implement Food Safety Measures

It is a known fact that frozen foods are exposed to extreme temperatures. These food items are stored in plastic bags subjected to high temperatures, leading to their degradation.

This includes proper storage, handling, and preparation of frozen foods. Keep an eye out to ensure your staff is trained in food safety practices and that your facility follows the proper health and safety regulations.

12. Manage Your Finances

Managing your accounting records can help spell success for your frozen foods business. You should keep accurate records of your receipts and expenses while creating a budget to help you manage your cash flow. Working with an accountant can help you make informed financial decisions.

13. Build Relationships with Suppliers

In the frozen foods industry, many suppliers deal with the production of frozen foods. Many of these suppliers could be more reliable and reliable in terms of communication. It would help to communicate regularly with your suppliers to ensure that the right products are delivered when needed.

14. Sustainability

Making decisions in this area can be challenging because many factors can bias one's decision-making. These factors include the production cost, the product's environmental impact, and the demand for resources such as oil.

Consider implementing sustainable practices in your business, such as using eco-friendly packaging materials, sourcing ingredients from sustainable suppliers, and reducing waste. You can also communicate your commitment to sustainability to customers through your marketing efforts.

15. Distribution and Logistics

Effective distribution and logistics are vital to ensure your products are delivered to customers promptly and efficiently. You should have a reliable transportation and storage system and work with reputable logistics partners to manage your supply chain.

16. Legal and Regulatory Compliance

Frozen foods can be a costly proposition for small businesses. The costs of purchasing, storing, and preparing frozen foods are substantial. This is where a legal/regulatory agency comes into play. Every country has food safety agencies or departments that regulate the food industry in the area.

These may include obtaining the necessary permits and licenses, complying with food safety and labeling regulations, and adhering to employment and labor laws. It's ideal for your new company to stay up-to-date on all the relevant rules and ensure your business complies.

In conclusion, a frozen food business can be profitable with proper preparation and execution. Many frozen food businesses have yet to see growth and profitability.

Entrepreneurs can establish a successful and sustainable business in the frozen food industry by conducting market research, creating a solid business plan, investing in high-quality equipment, and ensuring proper training and safety protocols.

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Frozen Food Business Plan

The success of a frozen food business depends on developing a product that holds up well when it is frozen and also developing a business infrastructure that can package, hold and deliver frozen food. In addition, marketing frozen food involves standing out in a fiercely competitive environment because retail freezer space is limited and expensive to maintain. A frozen food business plan should take into account these unique challenges while also charting a business model that can profitably produce and distribute the product.

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Research the target market for your frozen food product. Develop a clear sense of who would be interested in the product by taking into account how it will be enjoyed, what a customer would need to prepare it and how much it will likely cost at the retail level. For example, if you will be manufacturing affordable ice cream novelties, then your target market will probably be families with children. Use the information on sites such as Valueline.com to find additional information about consumer trends and market successes. Compare your product to other options available in your niche and identify selling points that would entice a consumer to choose your product over the competition.

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Document the expenses you expect to incur starting your frozen food business. Include startup costs such as food processor's licenses as well as the expense of outfitting or leasing a commercial kitchen. List the equipment you will need, including freezers, packaging equipment and delivery vehicles. Visit equipment dealers in your area and research prices for your equipment purchases. Also calculate variable costs such as the amounts you will pay for the labor and materials required to produce each batch. Create financial statements showing how much funding you will need and how long it will take and how much product you must sell to pay back the financing you receive to cover your startup costs.

Create prototypes of your frozen food product. The prototyping process should involve preparing samples, freezing them in the type of packaging you intend to use and then reheating them and consuming them as a customer would. This process is an opportunity to learn about your potential customer's experience with your product and make changes as needed. For example, if you will be making and selling a frozen dinner entrée but the different ingredients degrade into a homogeneous stew when the product is reheated, experiment with freezing some ingredients separately and adding them at a different stage in the freezing process. Describe the information you learn during this prototyping and development process in your frozen food business plan.

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How to Start a Frozen Food Business

by Andra Picincu

Published on 2 Nov 2018

Frozen foods are now available in more flavors and varieties than ever before. From frozen pizza to frozen fries, vegetables and exotic fruits, there are thousands of products on the market. Their quality and taste have improved, too. The global frozen food market is expected to reach $333.56 billion by 2023. Whether you want to switch careers, gain financial freedom or supplement your revenue, consider starting a frozen food business.

Research the Market

In 2017, the leading sellers of frozen dinners and entrees were Nestlé USA, ConAgra Foods and Birds Eye Foods. Other popular brands include Amy's Kitchen, Eggo, Iglo, Dr. Oetker and California Pizza Kitchen. Each specializes in one or more types of products, from ice cream to frozen pizza and desserts.

If you're considering starting a frozen food business, research the market and industry trends. See how each vendor performs and what products are in high-demand. Determine whether you're going to produce and sell your own frozen foods or purchase them from suppliers. Each option involves different costs and resources.

Create a Business Plan

What kind of food are you going to sell? Do you plan to prepare it yourself or buy in bulk from wholesalers? How much money are you willing to invest? Consider these things when writing your business plan.

For example, if you decide to prepare your own food, it's necessary to have or rent a commercial kitchen. With a homemade frozen food business, you'll save money on rent. However, you still need to invest in special equipment and comply with comply with food safety standards. This translates into higher costs.

Purchasing frozen foods from distributors or wholesalers is a more affordable option. If you choose this path, make sure you have a warehouse or another facility to store the products. Factor in the cost of rent, kitchen supplies, ingredients, utilities and marketing materials.

Determine whether you want to sell specific types of food or a little bit of everything. Let's say you're really good at making cookies, cakes or ice cream. In this case, you can start a business that specializes in frozen desserts.

Also, decide who you're going to sell to. Your target audience can include local stores, pubs or individuals. It all comes down to your budget and marketing goals. If you're on a budget, you can start a frozen food business from home and sell your products online. As your business grows, you can expand your operations and partner with local venues.

Apply for Licenses and Permits

After you register your business name and obtain a tax ID number, it's necessary to apply for certain licenses and permits. You will need a general business license, a food permit from your state health department, and food handling permits for yourself and your employees (if applicable).

Food permit requirements vary from one state to another. In general, this certificate is legally required for stores that sell packaged foods as well as for restaurants, food trucks and food vendors. However, if you sell minimally packaged foods, such as fruits and vegetables, you may not need this permit.

Also, make sure you comply with FDA’s regulations. You can find this information on the organization's official website or check the General Navigation Guide for Manufacturers of FDA-Regulated Products and Start-ups. To stay on the safe side, contact a local FDA Public Affairs Specialist and ask about the rules and regulations relating to your business.

Promote Your Frozen Food Business

Research your competitors and try to come up with something different. The frozen food market is competitive, so it won't be easy to stand out from the crowd. If you offer the same products as everyone else does, you may find it hard to make a profit.

Promote your frozen food business locally and online. Depending on your target audience, you can distribute flyers and brochures, contact local dining and food market venues or sell your products through distributors. You can also target specific groups of customers, such as vegans and vegetarians, fitness enthusiasts or specialty stores.

Don't bother with copy and paste.

Get this complete sample business plan as a free text document.

Food Preparation Business Plan

Start your own food preparation business plan

What's For Dinner?

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

What’s For Dinner? is an exciting, new business with a unique approach to helping people enjoy home cooked meals with their families. Customers will come to our Plano, TX location and prepare 12 meals that they pre-select from a menu in a party atmosphere. In two hours, they will have a month’s worth of meals to put in their freezer.

By focusing on our competitive edge (no direct competitors in the Dallas/Ft. Worth area), our customers, and their needs, What’s For Dinner? will increase sales to a point that exceeds $1.3M in three years.

What’s For Dinner? is owned jointly by Alan and Kim Kirby as an S Corporation. Alan and Kim have 15 years of experience in the food service and entertainment industries, as a party planner and personal chef, respectively. They know the kinds of food preparation available in the Collin County area. With two teenaged children, have experienced the frustration of trying to feed a whole family healthy food both cheaply and quickly. Alan’s existing contacts with local social and community groups, and Kim’s ongoing relationships with food distributors, specialty grocers, and high-end clients will all help to generate high sales from early in the first year.

What’s For Dinner offers several advantages to its target market:

• Relatively inexpensive meal preparation: ~$15 for a four-person meal.
• Fun, social, party atmosphere.
• Convenient: eat your prepared meals in your home, when you want.
• Saves time: no shopping, no prep, no clean up.
• For seniors, special menus and transportation assistance make meals easy.
• And, best of all, not having to decide “What’s For Dinner?”

The purpose of this plan is two-fold. The first is to acquire funding of $259,708. The second is to lay the foundations of the company’s vision, philosophy, and strategy, to ensure that we know where we are going and how to get there.

1.1 Mission

What’s For Dinner? is a specialized business that provides a variety of people with the opportunity to prepare health conscious, yet savory meals that can be frozen to take home and eat at a later time.  The purpose of this process is to both optimize the time investment needed to prepare the quality of meals that What’s For Dinner? will become known for, within the clients’ current schedules, and also for them to practice the proper health conscious behavior that has become the target lifestyle of a health deficient society.

What’s For Dinner? will provide a unique and distinctive service that will unite a party-like atmosphere with professional food preparation that will attract a growing repeat customer base.  What’s For Dinner? will allow families and busy professionals the ability to prepare a variety of meals quickly in a fun atmosphere, away from home, thus giving people more of what they are looking for – time.

Our goal is to be a self-sustaining corporate enterprise within 3 years from the company’s inception to begin expanding our menu offerings within 3 months and its location offerings within 4 years.  What’s For Dinner? will employ 4 individuals full time within 3 years, and will hit net profit goals of $100,000 by the end of its second year of existence.

In short, we will be in the business of helping our customers to relieve their daily stresses of what to fix their families for dinner by providing them with a great menu choice of meals that they will prepare.

1.2 Keys to Success

The keys to success in this business are:

• Creating a high level of customer satisfaction in our service and products, which will lead to customer retention each month. 
• Marketing: getting our name out to the public, primarily through an intensive marketing campaign driven by our customers (word of mouth) with a supplemental vehicle of standardized and conventional marketing tactics. 
• Great product quality and variety that will be used to aid in customer retention and growth. 
• Finances: as our customer base increases we will be better able to lower our supply costs by buying more in bulk through food service distributors.
• Variety of menus offered based on seasons, trends and customer preferences.
• Exceeding our customers’ expectations by offering them a higher quality of food for a competitive price.
• What’s For Dinner’s website will be an efficient and convenient place for customers to register and pay for parties.

1.3 Objectives

The objectives for What’s For Dinner? in the first three years of operation include:

• To exceed customers’ expectations for food service and food service products.
• To increase the number of clients served by 25% per year through superior service.
• To develop a sustainable start-up business that is profitable.
• To achieve an after tax net profit of $134K by year three.
• To achieve a net income of more than 10% of sales by the third year.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

What’s For Dinner? is a unique business where customers come to our Plano, TX location and prepare twelve pre-chosen meals that will be taken home and frozen until they are ready to cook and serve. All of the planning, shopping, food preparation and containers are provided with no worries to the customer. The meals will be prepared in a party like atmosphere where customers will have separate workstations to prepare their meals and have a good time with friends, both new and old.

Our goal is to provide our customers with home cooked meals that their families will enjoy, while saving them time and effort and relieve stress from that age-old question of What’s For Dinner?

The scheduling aspect of our company will be combination of a standard walk-up scheduling procedure, a phone messaging service and an intensive highly-interactive e-commerce website that will allow the customer to not only schedule parties but also to pay online, using standard secure technology.

2.1 Start-up Summary

The start-up expenses include:

• Rent expenses include a deposit and rent for one month at $28.75 per square foot for 1,854 square feet, in the total amount of $5,182.
• Utilities expenses for one month.
• Insurance deposit and first month.
• Sales & Marketing expenses including stationery, brochures, outdoor signage.
• Website development.
• Office, kitchen and janitorial supply expenses.
•  Leasehold improvements, including contractors fees and permits.

The required start-up assets of $50,000 include:

• Kitchen Equipment (long-term assets)
• Prep Tables (long-term assets)
• Cooking utensils
• Various Kitchen Utensils
• Computer and small business software

Please note that the long-term assets above will be depreciated using G.A.A.P. approved straight-line depreciation method.

The purpose of this business plan is to secure $259,708 in funding. This loan appears in the long-term liability row of the attached Start-up Funding table.

The following chart and table summarize the start-up assumptions.

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2.2 Company Ownership

What’s For Dinner? is a privately held Sub Chapter S-corporation. This allows for the protection allowed by the corporate legal structure combined with the “fall through” Generally Accepted Accounting Principals that will make personal financial sense to the corporations principle owners.  The principle owners of What’s For Dinner? are Alan and Kim Kirby; each owns a 50% stake in the company. This company operates under the jurisdiction of the State of Texas and the United States of America.

What’s For Dinner? will provide its customers with twelve home cooked meals that they will freeze until customers are ready to serve them. These meals will be chosen from a set menu designed weekly by us and the meals will be prepared in our location. All of the planning, shopping, food preparation, recipe directions and containers will be provided to help make it as easy as possible for our customers to enjoy their time at our establishment.

Our customers will prepare their meals in a fun, party-like atmosphere where they can relax, meet new friends or spend time with old friends while preparing dinners for their families for the next month.

The Key benefits our customers will receive from using What’s For Dinner? are:

• Spend less time in the kitchen
• Less money on groceries & eating out – it keeps you from being tempted to eat out
• Home style meals & better eating
• Able to sit down at the table together as a family – including conversation and socialization
• Clean up is easy, because prep is done outside the home, and all meals come in disposable containers
• Less time spent on grocery shopping
• In 2 hours you will have 12 dinners for you and your family
• We create the menus – order the ingredients – slice, dice, chop and prepare
• Social hour preparing dinners

Our menus and portion sizes are tailored for the group and individual customers. Seniors get added benefits, with diabetic, low-cholesterol, and low-sodium choices. Families can increase portion sizes for a small fee to accommodate more children or guests.

Market Analysis Summary how to do a market analysis for your business plan.">

The Dallas area’s meal preparation market is untapped. As a matter of fact, there is no other business of this kind in the Dallas/Ft. Worth area.  Though there are no exact replicas of our company there are some types of companies that we would have to consider to be indirect competitors.  These include such companies and service professionals as caterers and those that will come to your home and prepare meals for you to freeze.  What’s For Dinner?, at this time, has few direct competitors, with exception to area restaurants and your basic home cooking. At the inception of What’s For Dinner?, there will be no type of company like ours in the area, thus giving us the overwhelming competitive advantage of first entry. 

The What’s For Dinner? market is primarily in the Collin County area: Plano, Frisco, Allen and McKinney. We will be focusing on households in these areas that have more than one person. Primarily, those households whose income is over $50,000, with someone under the age of 18 living there.  As a secondary target market, we will market to the elderly population in the aforementioned areas. Initially, the greater portion of our customers will be busy, working class people and the growing group of single-parent families, but it will be of great benefit now and in the future to market our services to the highest growing population demographic – senior citizens.  

The following statistics were taken from Table DP-1 Profile of General Demographic Characteristics: 2000 for Collin County.

4.1 Market Segmentation

What’s For Dinner? has three distinct target populations:

• Family households with children under 18 years old. This group of people is generally busier than other families with their time split between work, home and their children’s activities. This group may be single parent households, which only adds to the stress resulting from lack of time, coupled with the need for proper meals for their children.  This provides them with a desire to provide their families with good meals and free time to enjoy being together.
• Family households with no children living at their home. This group has a need for our services, as hectic schedules, professional careers, and daily demands on time come up against the need for tasty, healthy meals.  Depending on their work and home situations this demographic could use our service to enhance their selection of meals all the while minimizing their time in the kitchen. This group does recognize the benefits of our service and want to enjoy making meals for themselves and socializing through our business.
• Senior and Elderly Citizens. This group (65 and older) is the fastest growing portion of the population, and needs our services for several reasons:
• A good portion of this group is simply unable to cook nutritious meals and does not have the knowledge or skills to continue to effectively maneuver themselves in the kitchen. 
• Many seniors do not have the time, energy, or means to make it to the grocery store. 

We will market several menus designed for the diet needs of the senior populace (diabetic, low cholesterol, low sodium), with pick-up and drop-off coordinated with a local senior-transportation center. All prep and measuring will be done beforehand, so they will need only to stir and combine ingredients. In addition to meeting their practical needs, we will create the social experience that this group consistently hunts for, and help them to enhance their lifestyle through a higher quality of health.

4.2 Target Market Segment Strategy

These target market segments were chosen based on their greater need for our services. Families with children are very busy, and they can end up spending a great deal on fast food and junk food because they don’t have time to cook healthy meals at home. Busy working couples and individuals without children are also busy, and may not have the skills or desire to plan and cook entire meals at home just for themselves; they can spend a lot on going out to eat. Seniors have special challenges in obtaining and preparing quality ingredients to feed themselves, including the loneliness of cooking for oneself. Options like “Meals on Wheels” are generally last-resorts, and many would prefer alternate food preparation arrangements, if any were available at a reasonable price – fixed incomes can be hard on the palate.

Our marketing strategies for all groups will emphasize our relatively inexpensive, fun, and easy approach to preparing healthy meals. We will vary our serving sizes, menu options, and level of preparation for each group; the family-size entree just right for a family of four makes no sense for a single individual. Different sized families have different needs, and it will be our goal to look to accommodate most family sizes through our variations in serving size.

4.3 Service Business Analysis

Our service is unique among Dallas meal preparation options. There are no direct competitors for What’s For Dinner? The closest competitors are personal chefs, who will come to your home and prepare your chosen meals for you and freeze them, at a very high price. Our target market segments cannot afford personal chefs.

Our indirect competitors are area restaurants. These include family-oriented, inexpensive diners and casual restaurants, as well as fast food and takeout. We will generally not be competing with upscale, adult-oriented restaurants, since those are “special occasion” locations, and do not fulfill local residents’ daily meal needs.

Our competitor restaurants compete on price, perceived convenience, and atmosphere. They succeed when they convince customers that going out to eat is an affordable “treat” that is easier and more pleasant than preparing meals at home. In truth, the restaurants with the lowest prices also offer poor quality food and atmosphere, and the struggle to get children ready, out the door, and have them behave in a restaurant setting can make these choices less appealing in families’ realities than in their imagination. For all customers, the time it takes to get ready, travel to a restaurant, order dinner, eat, pay, and get home make going out to a eat a full-evening’s commitment – hardly the convenience it claims.

With the introduction of What’s For Dinner? to the Dallas market, we will revolutionize the way that the community looks at cooking convenience. Our prices really are much lower than restaurant meals, with much higher quality meals. In addition, our “convenience” comes in two ways – preparing meals at a set time, outside the daily routine, so they are ready in advance, and eating and minimal clean-up right in the customer’s own home, which saves time and energy at the end of a long day.

4.3.1 Competition and Buying Patterns

Even though What’s For Dinner? has no direct competitors, we will set up our business as if we are entering an already aggressive and hostile market.  This is aimed at helping us to become successful through a constant drive for increased service model efficiencies and marketing effectiveness. We will strive to excel in customer service excellence, continuing our menu varieties and achieving the highest standards for our food products. As owners, we feel that word of mouth and customer retention are significant factors in our success. Our convenient locations, sanitary facilities, competitive pricing structure and honorable reputation will all play a part in satisfying our customers and increasing our clientele at an accelerating rate. What’s For Dinner? will focus on these factors and always strive to improve our business model and service offerings.  We will strive to be the very best in our industry and will not rest until we not only have the largest market share in our industry, but also have the most satisfied customers.

The buying patterns of our customer base will be affected by our initial meal prep party prices.  We have concluded through our exhaustive focus market groups that we could set our prices high, since there is no direct competitor, but we feel that to attract and retain customers and be able to steadily grow our customer base, so we should price ourselves at a lower level first. By setting ourselves at the lower end of our pricing range, we will not only gain the attention of the vast majority of our target markets, but we will also be able to start our revenue streams off with an upward growth pattern. The price that we will choose will be reasonable for our customers and be adequate for the business to maintain a gross margin around 25%.

Strategy and Implementation Summary

What’s For Dinner? will gradually gain market share in the four focal geographic markets (Plano, Frisco, Allen and McKinney) by leveraging its competitive edges. These edges are superior attention to detail in the local food service market, a revolutionary food-servicing outlook and excellent nutritional meals at competitive price. These advantages have been unavailable in this market for some time. We will market our services  with a targeted advertising campaign and networking.

5.1 Competitive Edge

What’s For Dinner? will begin with a critical competitive edge: we have no direct competitors in the Dallas/Ft. Worth area.  By being the first-mover and (for at least a while) the only service of our kind, we will have the initial market buzz that is normally reserved for the first company of its kind into a given market. Our positioning is very hard to match, but only if we maintain focus on our strategy, marketing, business development, and fulfillment of quality and customer service will we be able to continually grow and outpace the “copy-cat” businesses that are sure to follow our market lead. We are aware that the tendency to relax due to lack of competition could weaken our competitive edge. What’s For Dinner? will be operated as if our direct competitors were conducting the same service business that we are in and we will be looking for additional enhancements to our operating procedures from day one.

In addition to our unique positioning, we offer the following advantages to our customers:

• High quality meals
• Relatively low prices
• Time saving meal preparation
• Reducing mess in customers’ kitchens
• Reducing stress around meal prep
• Saving them from that perennial problem of deciding, “What’s for Dinner?”

5.2 Marketing Strategy

As a food service business, our main goal is to provide high quality food with excellent customer service.  Our challenge as a new company is to quickly establish a reputation for such quality among our potential markets. With this in mind, the initial focus of our marketing strategy will be to get our name and reputation out to the public to create “buzz.” Creating brand recognition for our new concept will be the first measurable milestone in our marketing strategy.

 This will be one of the most important factors when measuring success within the first couple of months after inception.  The basis for our ideology is simple; the more people that hear our name and become familiar with our services, the more people will use it. The marketing campaign will involve a targeted advertising campaign, different specials to entice the customers to try our business and a very intense networking campaign. All of these tactics will be used to help gain a loyal clientele aimed at fostering our happy customer base.

At start-up, we will begin a focused advertising campaign toward target segments in our geographical area. We will update our advertising campaign regularly to fill in gaps based on follow-up research: do people recognize our name? Do they know what we do? What is their impression of our services’ costs and quality?Marketing campaigns will work via:

• Local area newspapers that are viewed by our target market.
• Homeowner associations’, churches’ and specific groups’ newsletters.
• Direct mail advertisements/flyers to our target market purchased through a direct mailing company with lists specifically of our target market.
• Various flyers and pamphlets that will be available at many shopping centers and grocery stores throughout the area.
• Yellow pages advertisement.
• Dynamic website.
• Registered keyword searches that will lead to our website.
• Various Radio advertisements.
• Various event sponsorships.

What’s For Dinner? will also have a networking campaign that will start with the owner’s contacts and friends attending our first months’ meal prep parties. This will be the “word of mouth” campaign that will feature:

• Private parties with discounts for the host/hostess of the party. This will encourage them to invite 11 friends that will be introduced to our business and will be return customers.
• Special discounts to return customers when referring new customers.

5.3 Sales Strategy

In the food service business, as in any customer service intensive business, sales revenue is our lifeblood.  The way in which we present ourselves to our customers and deal with the public will determine the success of our business.  The food service industry is facilitated by repeat business and referrals. In order to continuously compete against other food providers, we need to enhance our repeat customer service business by making this our main sales focus. We cannot expect to have a satisfied customer by selling them one month’s of meals and then never seeing them again. We must make our sales strategy revolve around making the customer’s experience with us the best it possibly can, and further, making every effort to get our current customer base to visit us again.  It is much more expensive to get new customers than to keep the customers you already have. Our customers cannot stop eating, but they could stop using our services. We will be selling our service to our current customers each time they come, in order to have repeat business and new business through their word of mouth.

These are just a few of the ways we will sell to our customers to gain repeat business and word of mouth advertising:

• High levels of customer service; friendly, comforting and entertaining
• Good variety of menus from which to choose
• The best quality of foods and ingredients
• Creating a fun and social atmosphere for our customers, so they want to return
• Reminders at each party to sign up for the next month’s party, along with the next month’s menu and samples
• A follow up and reminder program for our current customers that will be done through email and mail.
• Focus a specific portion of our advertising campaign on getting our repeat customers to come back and visit us
• Allow our best repeat customers to get special quantity specific discounts.
• Enlist a comprehensive and highly interactive e-commerce initiative to help to accommodate our customer’s payment and scheduling options.

The What’s For Dinner? website will serve as a productive and consistent selling tool. Our website will be set up to explain what we offer and the many benefits customers will receive for using our meal prep services. The website will help “close the sale;” customers will be able to register for the meal prep party they would like to attend and accepting payments online. This will be our main source of registrations for parties. The ease of use allowed by the Internet will be key to driving our customer pipeline.  Our sales and marketing campaigns will help focus our customer traffic through our website, so that people can see how easy it will be to interact with our company. This element of efficiency will also help enhance our bottom line by allowing for a 24 hour customer service mechanism without having to keep a customer rep staffed all the time.

5.3.1 Sales Forecast

Through our research of other businesses like ours in Seattle, WA and Omaha, NE, we found that all of them quickly increased their sales over their first year. All of these researched companies went from their first month of 100 customers on average to over 1,000 customers within their first year of business. One company opened in Seattle against two other competitors and now has over 2,000 customers with three different locations.

We are optimistic that What’s For Dinner? will grow and prosper just as these other companies have, but we want to set reasonable forecasts for growth. We have therefore taken a conservative approach in preparing our Sales Forecast Table.

The following table and chart give a run-down on forecasted sales. We have forecasted that sales will increase each month with the exception of the summer months, when vacations and other seasonal activities may reduce purchases. Once we get our first few customers, our sales will increase through customer retention, and gaining new customers through networking. We expect sales to grow incrementally over the first year, reaching profitability by the fifth month of operation.

After the first year of operation, we expect sales to continue increasing, from 10% the first year up to 25% by the third year. As sales increase, we will make modifications to our facility and hire new employees to share in the work. Our proposed location allows room for expansion. Based on our research, and the size of our potential market, we expect to reach close to one million dollars in sales by the end of 2005.

Our direct costs of sales listed here are inventory used up in sales, including the meal ingredients and additional supplies, such as themed-party decorations, containers, napkins, and so on. Fixed operating expenses are listed in the Profit and Loss.

5.4 Milestones

The accompanying table lists important program milestones, with dates and budgets for each. The milestone schedule indicates our emphasis on planning for implementation.  What the table doesn’t show is the commitment behind it. Our business plan includes complete provisions for plan -vs. – actual analysis, and we will follow-up often to discover variances and course corrections.

What’s For Dinner? will have several milestones, including:

• Business plan completion. This will be done as a roadmap for the organization. This will be an indispensable tool for the ongoing performance and improvement of the company.
• Building set up.
• Our first meal prep party.
• Profitability.

Web Plan Summary

The What’s For Dinner? website will be the virtual business card, party scheduler and payment acceptance source all rolled into one. It will showcase our services and highlight the benefits of using our company.  The website will be a crucial portal for party scheduling, as well as having availability cross-referenced with party menus. Customers will also use this website to register for their parties and pay for them using PayPal, which accepts MasterCard, Discover Card, Visa, or e-checks.

6.1 Website Marketing Strategy

The What’s For Dinner? website will be a strategic and very important part of our marketing mix. It will be used as a marketing tool to attract new customers, and as a sales tool to schedule parties, select menus, and pay. We will be promoting our website in all marketing programs, including newspaper ads, yellow page ads, business cards and flyers. We will also purchase targeted key word searches to help potential customers find our website. In addition, our website will feature prominently on all napkins, packaging, and receipts which current customers bring home, making repeat business easy and convenient.

Our main internet strategy is to direct the majority of our potential clients to our website first, as the introduction to our services, prices, and availability. This will reduce the time necessary for staff to provide basic information over the phone, allowing them to answer customer questions and provide more details, once customers know who we are, what we do, and how we might help them.

To encourage customers to use the website, we will offering special discounts to those who register their parties with our website and pay online. Our website must be easy to access and navigate, and must answer every customer question we can anticipate. It must use a legitimate, well-respected security feature and a reliable payment method. If it is all these things, many of our repeat customers will be happy to save time by researching party options and scheduling them online.

Clearly, we expect website use to be highest among younger, internet-savvy customers. We anticipate that our senior customers will use phone and direct contacts for most scheduling and payment interactions.

6.2 Development Requirements

The What’s For Dinner? website will be developed with the technical resources of a local web design artist. He has designed websites for over 325 businesses, most with e-commerce capabilities. He is designing a database interface which will let us adjust the schedule and track click/sales ratios, and easily update menu offerings.

As the website development progresses, he will work with a local graphic artist we have hired to come up with the website logo and graphics. We are still researching hosting possibilities, but feel our needs will be best served by subcontracting out the hosting of the site and the technical back-end supporting.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

The What’s For Dinner? management team will initially consist of the founders/owners themselves, Alan and Kim Kirby. We do not anticipate the need to hire anyone else on a full time basis during the first year, because all of the services that a normal small business needs will be outsourced. These services include the e-commerce infrastructure, accounting, marketing, and legal services. We do plan to employ one part-time employee from the beginning to help with cleaning and dishwashing.

Alan and Kim have 15 years of experience in the food service and entertainment industries, as a party planner and personal chef, respectively. Until the second year, Kim will continue to work part-time as a personal chef for several couples in Plano, doing the prep work and menu planning for What’s for Dinner? in the mornings. Alan will host the majority of the parties, after having prepared test batches of every menu item with Kim. The owners anticipate possibly hiring local high-school students as sous-chefs in years 2 and 3; Kim’s experience with local restaurants has shown that these students can often do quite well, paid only minimally in exchange for professional restaurant and food preparation training. Alan’s existing contacts with local social and community groups, and Kim’s ongoing relationships with food distributors, specialty grocers, and high-end clients will all help to generate high sales from early in the first year.

Throughout the first two years we will conduct an aggressive cost analysis as to what our capabilities are as owners and with what activities we need assistance.

7.1 Personnel Plan

The following table summarizes our personnel expenditures for the first three years, with compensation increasing from $34K the first year to about $60K in the third. We believe this plan is a fair compromise between fairness and expedience, and meets the commitment of our mission statement. The detailed monthly personnel plan for the first year is included in the appendices.

Financial Plan investor-ready personnel plan .">

What’s For Dinner expects strong sales, based on research into our target market, similar businesses in other parts of the country, lack of direct competition, and the experience, reputations, and know-how of its owners/managers. By steadily repaying our long-term loan and holding down costs, we will generate a net profit midway through the first year and increase net worth dramatically by year 3. Our major fixed expenses are payroll and rent.

8.1 Important Assumptions

The financial plan depends on important assumptions, most of which are shown in the following table as annual assumptions. The monthly assumptions are included in the appendices. 

Three of the more important underlying assumptions are: 

• We assume a relatively strong economy, without major new recessions. Although an ailing economy would not allow us the growth that we anticipate, we believe that it would not drastically hurt the business because the service is economically feasible. The $175 session fee breaks down to $14.58 per meal – a deal hard to beat at even a fast-food restaurant for a family of four to six.
• We assume that our market needs will be seasonal, with a decrease in sales during the summer months.

8.2 Break-even Analysis

The following chart and table summarize our break-even analysis. With fixed costs of $10,520 per month at the outset (to cover payroll and other operating costs), and variable costs (inventory) at 74% of sales, we need to bill $41,167 to cover our costs. We do not expect to reach break-even until the sixth month into the business operation.

8.3 Projected Profit and Loss

What’s For Dinner?’s projected profit and loss is shown in the following table, with sales increasing from $10K the first month to close to $1.4M by the third year. We will reach profitability in the middle of our first year.

We are projecting very conservatively regarding cost of sales and gross margin. Our costs of sales are based on grocery store prices, which will decrease once we are to consistently able to buy our food in larger quantities from a food distributor. This will significantly lower our cost of sales, and increase our gross margin more than in this projection. We prefer to project conservatively so that we make sure we have enough cash.

The Sales and Marketing Expenses vary from the food preparation industry norms. Our Sales and Marketing Expenses will be to consistently maintain our advertising and promotions, while our biggest marketing will be word of mouth from our customers. We are budgeting for a high level of service from our website hosting company and payment processor, since the website is a key component of our Sales and Marketing Strategies.

 The detailed monthly projections are included in the appendices.

8.4 Projected Cash Flow

The following cash flow projections show the annual amounts only. Cash flow projections are critical to our success. The monthly cash flow is shown in the illustration, with one bar representing the cash flow per month, and the other the monthly cash balance. The annual cash flow figures are included here and the more important detailed monthly numbers are included in the appendices.

8.5 Projected Balance Sheet

The balance sheet in the following table shows managed but sufficient growth of net worth, and a sufficiently healthy financial position. Our negative net worth, due to borrowed capital for start-up, makes a significant increase by the second year, and becomes positive in year three. It is common for start-up businesses to have a negative net worth their first few years.

The monthly estimates are included in the appendices.

8.6 Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 2099, Food Preparation, are shown for comparison.

The following table outlines some of the more important ratios from the Food Preparation industry. The final column, Industry Profile, details specific ratios based on the industry as it is classified by the Standard Industry Classification (SIC) code, 2099.

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14 Frozen Food Business Ideas and How to Manage Successfully

For the sake of convenience, many people are turning to frozen food. Because of the pandemic, frozen food is more popular than ever. Some people prefer to avoid frequent grocery runs, while others prefer something simple. Here are frozen food business ideas and how to manage successfully, so keep reading to find out more.

14 Frozen Food Business Ideas

These are 14 frozen food business ideas you can start easily.

Read also: 5 Online Food Business Ideas and Tips for Beginners!

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Yogurts are a nutritious snack. Nutritionists typically recommend them as a healthy addition to daily diets. You can start a frozen yogurt business by purchasing a franchise of an existing yogurt business or by producing and selling your own yogurt. You can either open a walk-in yogurt restaurant where people can eat their yogurt while socializing, or you can supply your yogurts to local retail stores and supermarkets.

Chicken Products

People most commonly purchase frozen poultry products. This company sells pre-packaged chicken, turkey, chicken wings, filets, breasts, and other poultry products.

The next frozen food business in Philippines you try is selling seafood. Restaurants and hotels primarily use sea foods to prepare continental cuisines. Many people eat sea food at home as well. 

Chopped Potatoes 

In the frozen food industry, pre-chopped potatoes are also popular. This is a very simple business to start. All you need are industrial potato choppers, fresh potatoes, packaging materials, and preservatives.

Salads are also very nutritious. They are high in vitamins and minerals. Salads are consumed on a daily basis by a large number of people.

Fruit and Vegetables

Another frozen foods business idea is to make and sell mixed vegetables such as carrots, green peas, sweet corn, broccoli, spinach, and so on. Pre-mixed vegetables are very simple to prepare; no chopping or washing is required; simply open and use.

In most places, the ratio of vegans to non-vegans is higher. Many people eat various types of meat, and you can make a lot of money selling pork, beef, goat, gizzard, and even sausages.

Soups and Stews

You could also prepare and sell tasty stews, soups, and sauces that people can quickly heat and eat.

Frozen Food

You could also make money by selling pre-packaged frozen meals. Your target customers for this type of frozen business include bachelors and busy parents.

Sliced Onions

Many people dislike slicing onions because it causes tears in their eyes. These people cook their meals with pre-sliced onions. You can try sliced onions for small scale frozen food business.

Materials for Packaging

You can help other frozen food business owners in your area by selling and supplying frozen food manufacturing companies with frozen goods or other packaging materials, and starting a frozen goods business.

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Frozen Food Mobile Store

Another option is to start a mobile frozen food store to provide people with access to a variety of frozen foods without having to go to the grocery store.

Frozen Food Equipment

If none of the above businesses interest you, you could consider becoming a distributor or retailer of equipment for frozen food business, such as freezers, cold rooms, cutters, choppers, and all other necessary tools.

Provider of Fresh Farm Produce

Fresh foods are required to process frozen foods. You can start a business supplying fresh farm produce to frozen food manufacturers for use in the freezing process.

Read also: 12 Online Food Business Ideas, Start Your Own Business Now

How to Manage Frozen Food Business in the Philippines

Before determining your frozen food business names, it is better to know how to start frozen food business from home and manage it, first. 

Conduct Market Research

Unfortunately, “passion” and “gut feeling” are not sufficient reasons to start a frozen food business in Philippines. While it can be profitable, there are numerous factors at play that will influence the business’s suitability for your situation.

Knowing how to conduct market research will help you gain a better understanding of the venture’s suitability. Knowing your market will clear the fog of confusion about what businesses are profitable in the area and keep you from pursuing an entrepreneurial venture blindly. Try to find frozen food marketing ideas on the internet.

Evaluate Your Capital

The following step in determining how to start a frozen food business in the Philippines is to assess your capital when making business plan . Depending on the findings of your market research, you may need to stretch your budget or spend as little as possible while still earning competitively, as in many frozen food business plan samples .

A ₱5000 – ₱10,000 budget is sufficient to sell frozen food items to friends and coworkers if you prefer to test the waters and start small. You can keep your stock in your personal refrigerator and deliver frozen food orders to your workplace. You can also sell your items through a social media marketplace .

If your market research shows that opening a physical store is more feasible when starting a frozen food business, you will need a larger starting budget, typically a minimum of ₱100,000 depending on how much inventory you want to start with.

Look for Suppliers

If you do not intend to manufacture your own products, the next step in starting a frozen food business in the Philippines is to locate suppliers. Because frozen food is a large industry, finding suppliers is not as difficult. There are some exclusive perks you can get depending on the products and company you want to retail from.

Make Your Own Products

If you want to share an old family recipe with the rest of the world, you can always make your own products, such as homemade longganisa, ready-to-cook lumpia, and so on.

One advantage of creating your own product is that you can control the selling price as well as the cost of preparing each item. Another advantage is that you can supply to various retailers who want to sell your product.

Choose the Best Location

The challenges of frozen food business are choosing the best location to sell. Selling ready-to-cook frozen food is a common business in cities. Unlike in the provinces and villages, where raw and fresh food products are readily available, cities are filled with busy people looking for quick-cooked meals. 

However, this is not always the case; the point is, whether you sell frozen foods in rural or urban areas in the Philippines, a good location can make or break your business.

Frozen food is a profitable industry in the Philippines. And, in the right circumstances and with good empirical research to the business, it can be the key to your financial independence!

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Doing a frozen food business is profitable indeed, especially in this pandemic era, where people often staying at home and eat instant food. Therefore, if you start this type of business, don’t forget to set everything up first. Things such as managing products, stocks, orders, consumers’ chats, and more should be handled very well, and for these, you can use Gine Philippines ! Join Ginee Philippines now to help manage your online store easily!

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Sample Frozen Food Shop Business Plan

Do you need help starting a frozen chicken, turkey or meat center? If YES, here is a sample frozen food BUSINESS PLAN SAMPLE.

You do not need to focus on an abstract business idea in order to establish one. There are simple businesses you can consider.

However, you should go for those which you have the passion for. We are not going into a study of what type of business to do, but will concentrate on the frozen food business. This frozen food business plan sample was written with the inexperienced entrepreneur in mind.

The concept of frozen food has been around for a while, at least since the 1800s. Freezing food is a great preservation method that keeps your food fresh without adding preservatives or other additives.

This is because the microbes responsible for food spoilage cannot multiply at that freezing temperature. Commercially done, freezing food is actually a very profitable business to embark on.

FROZEN FOOD BUSINESS PLAN SAMPLE

Frozen food business involves sale of frozen food to customers. The most popular frozen food sold by those who run frozen food business is meat. This includes fish, beef, goat meat, chicken, turkey, pork among others.

Due to the freshness of the food that is retained when frozen, in addition to eliminating the stress of killing and getting fresh meat, most people opt for frozen food. This is why a business like this is highly profitable.

So, what does buying a frozen business for sale entail? What does it take to start a frozen food business, and how can you ensure it turns out really well and gives you high returns on investment?

Here is a sample business plan for starting a frozen foods shop.

Do Some Research

If you are interested in going into frozen food business, it does not hurt to do a little research on how to handle this business. You might be thinking, all I am doing is freezing stuff, why would I need training or research for that? But then, a frozen food business model involves way more than just freezing food for sale.

For example, fresh fish and chicken should not be frozen together as most customers do not like the smell. Another important aspect is how to know when the meat you are about to refrigerate is fresh or not, as it is always best to freeze while still fresh.

Have a Business Plan

The first thing to consider when starting a frozen food business is having a plan. Your plan helps you define your business targets and gives it direction. It sets things in place and how they should go, defines your marketing strategies, and the operations and management of your homemade frozen food business.

Raise the Needed Capital

The capital for your frozen food business should be the next thing to consider. It is important to note that you could start raising money for the items you absolutely need before buying others.

For example, a frozen food products supplier could budget for three freezers which do not have to be brand new, an alternative source of power (such as a generating set), scales for measurement, rent for the store you would use for your frozen food business (if you are renting) and of course, furniture, knives, chopping board and other necessary items.

Another important aspect to consider when it comes to frozen food business is the location. Now, most people feel a frozen food business would fare well in a location that has a constant supply of power. But then, this might not be the case as residents of such areas might buy in bulk and freeze themselves.

Another aspect to consider when it comes to location of frozen food business is the environment. People are always sensitive to the hygienic condition of a place where they buy food items. Hence, it is important your frozen food business should not be located close to swampy areas or dirty areas.

It should also be easily accessible in terms of parking spots, and then close to areas such as housing estates, shops, busy bus stops or a major road. Your location also determines the type of frozen food you would sell. In some areas, residents would prefer poultry while some would prefer beef and other forms of meat. This is all dependent on the residents on such areas.

Getting Supplies

The next thing you should concern yourself with when it comes to frozen food business, and that is where you get your supplies from. The best would be to get from a slaughterhouse. This is because, frozen foods are better off when they are frozen as fresh as possible and this is easily achievable if you can get your meat supply from a slaughterhouse .

You should also get your supplies from people who are reliable in order to avoid running out of frozen food to give to your customers.

Gaining Advantage

People have been into frozen food business for a long time and the only way you could make a break into it is when you have something that makes you stand out. You could decide to offer delivery services to clients with a little charge added to it. You could also offer discounts to long time customers and other benefits.

You could also take your frozen pizza food business online so that people can order frozen food online.

This is a good way to set your business on the right path as well as advertise your business.

So there it is, important things you need to know when it comes to starting frozen food business.

FROZEN FOOD BUSINESS PLAN EXAMPLE

Lots of businesses have folded up due to several reasons. One of the main reasons is the absence of a good business plan. This sample seeks to help you understand the process as well as offer guidance to enable you put together a solid plan.

• Executive Summary

The growing need for fresh and frozen foods has led to the opening of Food Preserve LLC. We are a business that seeks to redefine how foods are being stored and preserved in their fresh state and sold. We will be selling our products to our primary market in Jacksonville, Florida. This is only for the short term as we expand our frozen food business outlets across Florida and beyond.

Our products include a cold room with a supply of seafood, fish, and beef in addition to poultry products. Others will include dessert toppings, shrimps and more. We will be focused on serving a large market using large equipment such as industrial scale cold rooms among others.

• Our Products

While providing quality frozen products, we also will explore other frozen food services needed by our target market. We have a research team that is focused on developing these additional frozen food related services. Our products will include beef, shrimps, seafood, and dessert toppings. We will also have a rich supply of fish as well.

• Vision Statement

At Food Preserve LLC, we are focused on building a reputable frozen food brand. Our target is to grow our business through franchising. We will open our franchising arm 3 years into the establishment of the business. Our vision is to build a franchise that will be among the top 10 frozen food franchises in the state of Florida.

• Mission Statement

We are committed to providing only the best frozen products. We have a reputation to build and protect, hence, we are committed to achieving just that.

We are open to new ideas and innovations in customer service and will not spare the opportunity of achieving just that. This is where our research department will be most effective. They will be saddled with the responsibility of improving our product and service delivery.

Our frozen food business is capital intensive. This will require raising the needed amount for equipment purchase, rental and running costs among other things. To meet our financial needs, we will be accessing a bank credit. The sum of $500,000.00 is being sourced at a monthly interest rate of 1.5% with the principal payable in 5 years.

• SWOT Analysis

Our analysis has been revealing to say the least. We have made important discoveries about the state of health of our business. This knowledge has afforded us the opportunity of taking the right steps in streamlining our services to achieve maximum impact. What are these areas?

The frozen food businesses within the Jacksonville area are performing below their potential. This has resulted in weak competition. We are coming to provide a better deal within this area. Our determination to establish a strong brand is our greatest strength.

Location is important to business success. Our chosen location is not so great. Although it will mean lesser rent costs, patronage is not expected to attain its highest peak. The location of our outlet is considered to be very temporary as we are identifying some of the best possible places.

• Opportunities

The frozen food market in Jacksonville is not yet saturated. We see this as an advantage to expand. The best part is that research has shown a growing demand for frozen food products. We are using this information to capture the market.

In addition to this, other frozen food businesses within this area are relatively small.

Our seafood and fish products face the greater danger. This is because there has been a growing health concern over micro plastics ingested by sea animals. This has largely been blamed on the release of plastics into the sea. These are not biodegradable and find their way into our food chain which will eventually end up being consumed by humans.

This presents a health risk and could lead to a drop in sales. However this seems unlikely in the short term but a possibility.

• Sales Projection

People love frozen foods and this has created a large market. The demands has been analyzed and used in arriving at projected sales figures as shown by the chart below;

• First Financial Year $100,000.00
• Second Financial Year $300,000.00
• Third Financial year $500,000.00
• Competitive Advantage

We consider the frozen food businesses within the Jacksonville area as not being competitive enough. We are coming with a lot of enthusiasm and passion to change the way things are being done. We have identified major areas such as branding and quality of service as needing improvement.

Providing these in addition to a wide variety of products will enhance our chances of capturing the market.

• Sales and Marketing Strategies

For our marketing strategies to be effective, we seek to understand the frozen food needs of the market. We will be increasing the variety of our frozen food stock as well as providing adequate advertising. Also, fliers containing all our products and services will be distributed. This will be in addition to mounting our billboards at strategic locations.

• Target Market

We have a wide target market. As long as people live, they must eat. Therefore our target market will include households, restaurants, individuals, lovers, tourists, and residents of Jacksonville. We will expand our target market once we identify these as well as their needs.

There you have it! This frozen food business plan sample has disclosed several vital elements every plan must have. It is only for demonstration purposes and does not represent any real business. Using this, you can have a general idea of what your plan should look like.

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How To Start Frozen Food Business?

2022-06-10T06:13:03

By SolutionBuggy

The Indian frozen food business market valued at USD 1205 million in 2021 is expected to reach USD 1839 million by 2027. The frozen food business segment mainly comprises Ready To Eat foods , frozen fruits and vegetables, snacks, and non-vegetarian food products. Due to an increase in the working population, about 39% of young couples have admitted that they do not have time to cook which is recognized as the major market driver for the frozen food business. Additionally, proper refrigeration facilities in retail shops to store frozen food products is also one of the major market drivers of the frozen food business. The sudden outbreak of COVID-19 impacted the restaurant business and people shifted toward frozen foods . Now frozen foods have been accepted by people as they are convenient and easily available. Read on this blog and know how to start frozen food business.

Frozen Food Business Market Segmentation:

1) by product:.

Based on product type, frozen food business is classified as:

• Frozen Ready To Cook meals
• Frozen meat and seafood
• Frozen fruits and vegetables
• Frozen snacks
• Frozen dairy and dessert

2) By Distribution Channels:

Based on distribution channels, small scale frozen food business is segmented into:

• Supermarket
• Convenience stores
• Online channels

3) End Users:

By end users, frozen food business is categorized as:

• Foodservice providers (Hotels, Cafeterias, Restaurants)

Market Analysis Of Frozen Food Business:

• Frozen non-vegetarian products such as meat and seafood hold more than 80% of the frozen food market.
• The frozen vegetable segment holds the second largest market share.
• Frozen french fries and nuggets are the key products in the frozen snacks segment. Samosas, parathas, and kebabs are gaining more attention recently.
• In the frozen vegetable segment, peas are the most popular frozen processed vegetable having a 70% retail value share. Mixed green vegetables stand second having a 14% retail value share.
• North India accounts for 40 percent of the demand for frozen food.

Steps To Start Frozen Food Business:

1) market research:.

Before knowing how to start frozen food business , it is important to do market research . It helps you identify market gaps, challenges, opportunities, demand, potential threats, competition intensity, future growth, etc. Market research provides deep insights on target audience and assists you in taking the right decisions.

2) Business Plan:

Create frozen food business plan and choose your target audience for best results. For the small scale frozen food business, the urban population is the main target market. The best target audience will be working women, bachelors, college students, quick-service restaurants, grocery stores, etc. After formulating a business plan, it is important to implement it under proper guidance.

3) Location:

To succeed in the frozen food business , it is important to choose a good location. As the target audience is the urban population, It is necessary to have a frozen food factory in the center of the city to reduce transportation costs. As frozen foods have to be carried under suitable temperatures, industries have to pay more attention in choosing nearby location to urban areas.

4) Obtain Licences and Permits:

FSSAI license is mandatory to start any food processing business including frozen food business. Verification of nutrition charts is also crucial as consumers are becoming more health-conscious and paying more attention to nutritional details recently. Industries should apply for a trademark to make consumers identify their brand in this competitive market.

5) Machinery and Raw Materials:

Frozen food business should procure freezers, delivery vans, and food processing equipments mandatorily. As the demand for products will be fluctuating, manufacturers should be careful while ordering raw materials. According to a recent survey, 83% of manufacturers faced trouble due to the unavailability of raw materials because of disruption in the supply chain during the pandemic. Companies should analyse the data forecast and place a reasonable volume of order to reduce losses.

6) First Production Run:

The First production run should be performed to check the quality of the product and ensure the manufacturing process is optimal. Any errors found in the manufacturing process should be treated immediately. It is extremely important to note down the time required to manufacture a single piece of estimate number of pieces manufactured per day. Companies can choose either batch production or mass production.

7) Marketing:

Marketing of products is the most important step and right strategies have to be developed to capture a large market share. The rise of e-commerce platforms and D2C marketing has made it easy for frozen food industries to reach their target audience effectively. Developing the products according to the latest market trends and consumer demands will grab the attention of consumers and will be easier to market the products by small scale frozen food business owners.

Frozen Food Business Has Massive Growth Potential in Future Due To These Reasons:

• An increase in the number of working women having no time to cook.
• The rise in the youth population
• Growth in the tendency to experiment with a variety of food options.
• An increase in the number of nuclear families.
• The growing practice of younger population staying away from home for education or job.
• Declining culinary skills
• Rising disposable income of Indians.
• Need for convenience foods.
• Acceptance of frozen foods by gen-z consumers.
• Expansion in the e-commerce business has increased the demand for frozen foods.

Best Frozen Food Business Ideas:

• Frozen pizza base
• Frozen parathas
• Poultry products such as chicken nuggets, chicken wings, and fillets.
• Frozen french fries
• Frozen meals
• Frozen samosa
• Frozen cutlets
• Frozen snacks and bakery products
• Frozen sweets
• Frozen seafood
• Frozen kebabs

Cost of Starting Frozen Food Business:

Investment required to start the frozen food manufacturing business depends on;

• Type of product you have chosen
• Production capacity
• For export or for the domestic market
• Level of industrial automation

A small scale frozen food business requires a minimum investment of INR 50 lakh (Excluding land and infrastructure cost)

Export Opportunity For Frozen Foods Business:

India is known for exporting food products as there is a huge demand for Indian food items in other countries. Companies should get registered first and apply for an import export code and No-Objection certificate. Food products should contain the necessary information to make products acceptable in the international market. Frozen fruits and vegetables are the most exported frozen food products from India. United States, Brazil, Singapore, Japan, and middle east countries are the major importers of Indian food products. As India exports its food products to more than 80 countries, it has opened a plethora of opportunities for exporters. Agricultural and Processed Food Products Export Development Authority (APEDA) helps to export agricultural products. Due to huge export opportunity, frozen food business is considered as one of the most profitable manufacturing business ideas in India .

Documents Required To Export Food Products:

• Import-export license
• FSSAI license
• Product approval certificate
• Permit from the Ministry of Agriculture to export frozen fruits and vegetables
• Permit from the Ministry of Animal Husbandry to export frozen meat and poultry products.

Labeling Requirements For The Export Of Frozen Food Business:

Importance of NOC in Exporting Frozen Food Products:

It is mandatory to obtain NOC (No Objection Certificate) to export frozen food products. Without NOC, no person can export frozen food items. The documents required to apply for the No Objection Certificate are:

• Country of origin certificate
• Import-export code
• Bill of entry
• End-use declaration
• Food samples should have a good shelf life

Frozen Food Packaging:

Frozen food packaging requires special attention as the foods have to be stored under freezing temperatures. Packaging materials have to be chosen wisely to withstand low-temperature conditions. Some of the most popular frozen food packaging materials are metal cans, cardboard, wax coated paper, glass, aluminum, etc. Polyethylene (PE) shrink film is used widely as it can withstand temperatures upto -40 degrees. Packaging of food products not only provides protection but also helps consumers to identify your brand.

Types of Frozen Food Packaging:

1) primary packaging:.

In primary packaging, food will be in direct contact with the packaging material. The durability of packaging material should be good and must not become brittle at freezing temperatures and crack. Aluminum foil is the most popular primary packaging material for frozen foods.

2) Secondary Packaging:

Secondary packaging will be visible to consumers and hence it should contain the company name, logo, nutrition chart, etc. It should be air-tight to prevent air and moisture. Secondary packaging should be visually attractive to grab the attention of consumers

3) Tertiary Packaging:

Tertiary packaging is the third level of packaging and It plays an important role in bulk transportation of frozen food products. Corrugated boxes are used widely for tertiary packaging. It is mainly used in warehouses for shipping and is mostly not seen by consumers.

Top Players in the Indian Frozen Frozen Food Business:

a) Frozen Indian meals and curries:

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Nestle sales slump on weak North America demand for frozen food

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Swiss food giant Nestle reported slimmer sales than expected in the first quarter on Thursday, weighed down by weak demand for frozen pizza and snacks in North America.

Shares in the group fell following the publication of its earnings, which come as Nestle has recently faced scrutiny over the quality of its Perrier water and sugar levels in baby food sold in poorer countries.

Total sales fell 5.9 percent to 22.1 billion francs ($24.2 billion) in the first three months of the year at the group, whose brands range from Purina pet food to Nespresso coffee, KitKat chocolate bars and Gerber baby products.

Analysts surveyed by Swiss news agency AWP had expected sales totalling 22.3 billion francs.

Its organic sales growth -- which excludes currency fluctuations and acquisitions -- reached 1.4 percent.

The group's real internal growth (RIG), which takes into account both sales volume and product value, slumped two percent -- deeper than the 0.7 percent fall expected by analysts.

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The company said in a statement that sales performance was "impacted by soft consumer demand, particularly in North America, and the temporary supply constraints for vitamins, minerals and supplements."

Europe and emerging markets "more than offset" the decline in North America, it added.

"We had expected a slow start and see a strong rebound in RIG in the second quarter with reliable delivery for the remainder of the year," Nestle chief executive Mark Schneider said.

"A wide range of growth initiatives across the group are now starting to deliver," he said, noting that Nestle has "stepped up" commercial activity in North America, primarily in frozen food, which "lost ground" in the first quarter.

Nestle's RIG in North America was down 5.8 percent, said chief financial officer Anna Manz.

"Weakness in the US centered around frozen pizza and snacks, where we saw a combination of soft consumer demand, intense price competition and a reduction in retailer inventories in the quarter," Manz said.

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Water concerns

Nestle confirmed its annual forecast, aiming for organic growth of around four percent.

Shares in the group fell 2.8 percent on the Swiss stock exchange in afternoon deals.

"We will reach a turning point in the second quarter," Schneider said in a conference call.

"We are taking the right steps to accelerate growth and expect a much stronger performance starting from the second quarter," he added.

Nestle's first-quarter performance stands in contrast to those of rivals such as French group Danone, which reported rising sales volume last week.

British consumer goods giant Unilever reported an uptick in first-quarter sales on Thursday.

Nestle has also scrambled to ease any concerns over its Perrier brand after France's food safety watchdog recommended stricter monitoring of sites where Nestle extracts mineral water following the discovery of traces of "faecal" contamination.

The company has since said it has stepped up monitoring of the sites, and Schneider reiterated on Thursday that the group's water was safe to drink.

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He said Nestle was "working diligently with regulators in several countries where we operate" to "continue to assure absolute food safety and full conformity with local mineral water standards".

Last week, campaigners from Swiss organisation Public Eye said an investigation found that two of Nestle's best-selling baby-food brands marketed in developing countries contain high levels of added sugar.

"The negative news flow in recent weeks ... is raising concerns among investors," said Jean-Philippe Bertschy, analyst at investment firm Vontobel.

Patrik Schwendimann, analyst at Zurcher Kantonalbank, said "investor sentiment towards Nestle in recent months has never been so poor for more than 25 years."

He added that Nestle shares could rise sharply "if the news flow improves" but "Nestle must be able to show clear improvements in the coming quarters."

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Source: AFP