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A Sample Frozen Yogurt Business Plan Template


Ice Cream / Frozen Yogurt Business Overview
The Frozen Yogurt Stores and Ice Cream industry has come a long way and it is still
evolving with loads of ice cream and yogurt makers bringing in creativity in terms of flavors
and packaging into the industry. Ice creams and yogurts have been around for many years
(since the invention of fridges and deep freezers and can be found in various flavors in all
the countries of the world including Iceland and countries in the Polar Regions.
Yogurts and Ice creams are generally consumed by almost everybody in our planet as such,
anyone who chose to establish a frozen yogurt business in any part of the world especially
in tropical regions or countries in the equator is sure going to get good returns on his or her
investment as long as they are doing the right thing when it comes to setting up a business
and effectively running the business.
Close watcher of the Frozen Yogurt and Ice cream industry can categorically state that the
industry experienced rapid growth from 2010 to 2015. Of course the growth is facilitated by
consumers increasing health consciousness and the introduction of tart-flavored frozen
yogurt. Going forward, health concerns and the expected change in consumption patterns
will continue to drive industry growth from 2015 to 2020.
It is on record that many players in the Frozen Yogurt Stores industry were able to
successfully beat the economic downturn and grow strongly over the last five years, as tart
frozen yogurt became one of Americas favorite frozen desserts. The tart variety of yogurt,
which to some extent has sour taste similar to that of traditional Greek-style yogurts, has
been popular since Pinkberry introduced the flavor into the market in 2005.
No doubt, the increasing popularity of the dessert has enabled the speedy franchise growth
of well-known brands in the industry like Yogurtland, Red Mango and Menchies, which has
made this industry one of the foodservice sectors biggest success stories of the past
decade. The frozen yogurt and ice cream industry has remained resilient even as other food
segments waned during recession period
Statistics has it that there are roughly three hundred and sixty one (361) standard registered
and licensed frozen yogurt store businesses in the United States and they can be found in
all states, in major cities and remote rural areas in the U.S. The industry is responsible for
employing about 17,608 people. The industry is known to rake in about $2 Billion annually
with a growth rate of 18.2 percent.
If you are contemplating starting your own frozen yogurt business in the United States, you
should ensure that you carry out a thorough market survey and feasibility studies. States in
the southern region in the United States such as Texas and Illinois et al can be ideal for a
frozen yogurt business simply because of the climatic condition / weather there. If you get
some key factors wrong before starting your own frozen yogurt business, then you are likely
going to struggle to stay afloat.

Frozen Yogurt Business Plan Executive Summary


Pleasant Taste Frozen Yogurt Stores is a leading frozen yogurt store business that will be
based in Dallas Texas, USA that covers a wide range of clients both domestic and
corporate clients. We are a unique frozen yogurt brand because we do not just sell different
flavors of frozen yogurts et al but we will also sell our franchise and offer consultancy
services in line with our area of business.
Pleasant Taste Frozen Yogurt Stores is established by the awarding winning food
nutritionist Dr. Fiona Quest who has B.Sc.in Food Science Technology and a Masters
Degree in Business Administration (MBA). She has a robust experience in the food and
confectionaries business having worked both in the public sector and the private sector prior
to starting her own business Pleasant Taste Frozen Yogurt Stores in Dallas Texas.
Because of our corporate business goal of becoming the top 3 frozen yogurt store in the
United States of America, we are willing to go the extra mile to invest in some of the finest
professionals we can find and also we have set plans in place to acquire the best of
equipment when it comes to setting up a standard frozen yogurt plant. Our cold rooms are
customized to fit into the kind of ideas we have of how a first class frozen yogurt store
business should look like. When it comes to hygiene, we have put plans, process and
structures in place that will ensure that we are always at the top of game when it comes to
that. We have been able to secure permits from all relevant departments in Texas.
Pleasant Taste Frozen Yogurt Stores is set to redefine how frozen yogurt store business
should be run, not just in Dallas Texas, but also in the whole of the United States of
America. Which is why we have put plans in place for continuous training of all our staff at
regular interval and also liaising with stake holder in the industry to contribute our quotas in
the way frozen yogurt and ice cream making equipment should be designed and fabricated
to meet the ever changing demand of the industry.
No doubt the demand for frozen yogurts and ice creams et al is not going to plummet any
time soon, which is why we have put plans in place to continue to explore all available
market around the cities where our frozen yogurt stores are going to be located and ensure
that we create a wide range of distribution channels via franchising. With that, we know that
we will be able to maximize profits in our business.
Our strongest selling point at Pleasant Taste Frozen Yogurt Stores is the unique taste of
the different flavors of frozen yogurts that we sell. There is hardly any customer that will
taste any of our products who would not want to come back and make more purchase we
take delight in welcoming repeated customers over and over again.
Pleasant Taste Frozen Yogurt Stores will at all time demonstrates her commitment to
sustainability, both individually and as a firm, by actively participating in our communities
and integrating sustainable business practices wherever possible. We will ensure that we
hold ourselves accountable to the highest standards by meeting our clients needs precisely
and completely. We will cultivate a working environment that provides a human, sustainable
approach to earning a living, and living in our world, for our partners, employees and for our
clients.
Our plan is to position the business to become the leading brand in the frozen yogurt store
industry in the whole of Texas, and also to be amongst the top 3 frozen yogurt brand in the
United States of America within the first 10 years of starting our business. This might look
too tall a dream but we are optimistic that this will surely come to pass because we have
done our research and feasibility studies and we are enthusiastic and confident that Dallas
Texas is the right place to launch this type of business before spreading to other cities all
across The United States.

Our Product and Services


At Pleasant Taste Frozen Yogurt Stores we deal in all forms and flavors frozen yogurts, we
are an establishments that primarily prepare, serve / sell frozen yogurt and other frozen
yogurt-based items, as well as toppings.
As part our strategy to create multiple sources of income in line with our core business
concept, we will run a consultancy service and trainings. Our intention of starting Pleasant
Taste Frozen Yogurt Stores is to make profits from the industry and we will do all that is
permitted by the law in the US to achieve our aim and ambition.
Here are some of our products and services;

Selling traditional frozen yogurt


Selling tart frozen yogurt
Selling smoothies made from frozen yogurt
Selling yogurt parfaits
Selling toppings and other yogurt-related food items
Consultancy Services
Trainings
Our Vision Statement
To be amongst the top 3leading frozen yogurt companies in the United States of America
before our 10th anniversary.

Our Mission Statement


To build a frozen yogurt business that will meet the needs of all our customers and potential
customers in the regions / cities where we have our outlets and to sell franchise all across
the United States of America and Canada.

Our Business Structure


As part of our plan to build a top flight Frozen Yogurt Company in Dallas Texas, we have
perfected plans to get it right from the onset which is why we are going the extra mile to
ensure that we have competent employees to occupy all the available positions in our
company.
The picture of the kind of frozen yogurt stores business we intend building and the goals we
want to achieve is what informed the amount we are ready to pay for the best hands
available in the frozen yogurt stores industry as long as they are willing and ready to work
with us to achieve our business goals and objectives.
Below is the business structure that we will build Pleasant Taste Frozen Yogurt Stores;

Chief Executive Officer


Plant Manager
Food Technologist
Human Resources and Admin Manager
Sales and Marketing Officer
Accountants / Cashiers
Casual Workers
Drivers / Distributors
Customer Service Executives
Cleaners
Roles and Responsibilities
Chief Executive Officer CEO (Owner):

Increases managements effectiveness by recruiting, selecting, orienting, training,


coaching, counseling, and disciplining managers; communicating values, strategies, and
objectives; assigning accountabilities; planning, monitoring, and appraising job results;
developing incentives; developing a climate for offering information and opinions;
providing educational opportunities.
Creating, communicating, and implementing the organizations vision, mission, and
overall direction i.e. leading the development and implementation of the overall
organizations strategy.
Responsible for fixing prices and signing business deals
Responsible for providing direction for the business
Creating, communicating, and implementing the organizations vision, mission, and
overall direction i.e. leading the development and implementation of the overall
organizations strategy.
Responsible for signing checks and documents on behalf of the company
Evaluates the success of the organization
Plant Manager

Responsible for overseeing the smooth running of the distillery plant


Part of the team that determines the quantity of drinks that are to be produced
Map out strategy that will lead to efficiency amongst workers in the plant
Responsible for training, evaluation and assessment of plant workers
Ensures that the steady flow of both raw materials to the plant and easy flow of
finished products through wholesale distributors to the market
Ensures operation of equipment by completing preventive maintenance
requirements; calling for repairs.
Ensures that the plant meets the expected safety and health standard at all times.
Human Resources and Admin Manager

Responsible for overseeing the smooth running of HR and administrative tasks for
the organization
Updates job knowledge by participating in educational opportunities; reading
professional publications; maintaining personal networks; participating in professional
organizations.
Enhances department and organization reputation by accepting ownership for
accomplishing new and different requests; exploring opportunities to add value to job
accomplishments.
Defining job positions for recruitment and managing interviewing process
Carrying out staff induction for new team members
Responsible for training, evaluation and assessment of employees
Oversee the smooth running of the daily office and factory activities.
Food Technologist

Responsible for the production of all the flavors of yogurts produced by the company
Ensures that the organization follows due process as it applies to the nature of
business we are into
Serve as the quality assurance officer of the organization
Sales and Marketing Manager

Manage external research and coordinate all the internal sources of information to
retain the organizations best customers and attract new ones
Model demographic information and analyze the volumes of transactional data
generated by customer purchases
Identify, prioritize, and reach out to new partners, and business opportunities et al
Responsible for supervising implementation, advocate for the customers needs, and
communicate with clients
Develop, execute and evaluate new plans for expanding increase sales
Document all customer contact and information
Represent the company in strategic meetings
Help increase sales and growth for the company
Factory Workers

Responsible for carrying out all casual or unskilled jobs in the plants
Responsible for operating sealing and packaging machines
Handles any other dusty as assigned by the plant manager
Accountant / Cashier
Responsible for preparing financial reports, budgets, and financial statements for the
organization
Provides managements with financial analyses, development budgets, and
accounting reports; analyzes financial feasibility for the most complex proposed projects;
conducts market research to forecast trends and business conditions.
Responsible for financial forecasting and risks analysis.
Performs cash management, general ledger accounting, and financial reporting
Responsible for developing and managing financial systems and policies
Responsible for administering payrolls
Ensuring compliance with taxation legislation
Handles all financial transactions for the organization
Serves as internal auditor for the organization
Distribution Van Drivers:

Delivers customers orders promptly


Runs errand for the organization
Any other duty as assigned by the sales and marketing executive and plant manager
Client Service Executive

Ensures that all contacts with customer (e-mail, walk-In center, SMS or phone)
provides the client with a personalized customer service experience of the highest level
Through interaction with customers on the phone, uses every opportunity to build
clients interest in the companys products and services
Manages administrative duties assigned by the store manager in an effective and
timely manner
Consistently stays abreast of any new information on Pappy J & Sons Liquor Store
products, promotional campaigns etc. to ensure accurate and helpful information is
supplied to students when they make enquiries
Cleaners:

Responsible for cleaning the store facility at all times


Ensure that toiletries and supplies dont run out of stock
Cleans both the interior and exterior of the store facility
Any other duty as assigned by the restaurant managers
Frozen Yogurt Business Plan SWOT Analysis
Because of our drive for excellence when it comes to running a frozen yogurt stores
business, we were able to engage some of the finest business consultants in Dallas Texas
to look through our business concept and together we were able to critically examine the
prospect of the business and to access ourselves to be sure we have what it takes to run a
standard frozen yogurt company that can compete favorably in the frozen yogurt stores
industry.
In view of that, we were able to take stock of our strengths, our weakness, our opportunities
and also the threats that we are likely going to be exposed to in Dallas Texas and even in
the United States of America as a whole.
Here is a preview of what we got from the critically conducted SWOT Analysis for Pleasant
Taste Frozen Yogurt Stores;

Strength:
Our strength lies in the fact that we have a wide range of frozen yogurt flavors that can meet
the needs of a wide range of customers. We have state of the art facility and equipment that
has positioned us to meet the demand of products even if the demand tripled over night or if
we have a massive order to meet and emergency need.
Another factor that counts to our advantage is the background of our Chief Executive Office;
she has a robust experience in the industry and also a pretty good academic qualification to
match the experience acquired which has placed her amongst the top flight professionals in
the United States of America. We are not ignoring the fact that offering consultancy services
and running a standard and accredited training center is definitely going to count as a
positive for us.

Weakness:
The fact that we are setting up a frozen yogurt business in a city with other frozen yogurt
plants might likely pose a challenge for us in breaking into the already saturated market in
Dallas Texas. In essence our chosen location might be our weakness. But never the less,
we have plans to launch out with a big bang. We know with that, we will be able to create a
positive impression and we have a proper handle when it comes to building on already
gather momentum.

Opportunities:
The opportunities available to us are unlimited. Loads of people consume frozen yogurts on
a daily basis and all what we are going to do to push our products to them is already
perfected. There are also loads of people who would want to learn how to produce frozen
yogurt and they will readily find our government approved frozen yogurt and ice cream
highly ideal for them to fulfill that goal.
Threat:
The threat that is likely going to confront us is the fact that we are competing with already
established frozen yogurt stores in Dallas Texas and also there are other entrepreneurs
who are likely going to launch similar business within the location of our business. Of
course, they will compete with us in winning over the available market. Another threat that
we are likely going to face, is unfavorable government policies and of course economic
downturn. Usually economic downturn affects purchasing / spending powers.

Frozen Yogurt Business Plan MARKET ANALYSIS


Market Trends
When it comes to frozen yogurt and ice cream et al, everyone will quite agree that the
market trend changes from time to time. Frozen yogurt stores are seriously researching and
creating flavors and varieties that will keep them afloat in business. Any frozen yogurt store
owner who wants to remain relevant in the scheme of things in the industry must be willing
to explore the frozen yogurt world; he or she must be able to come up with a product that
taste unique from what is available in the market.
Another trend is that some frozen yogurt stores have gone beyond only selling their
products in their stores to taking it out to people in parks, sport centers and public places
through vans and mobile food trucks. Some frozen yogurt stores have even gone ahead to
start retailing their products to the public through vending machines; it is one of the
strategies that is helping them gain a huge market share.

Our Target Market


When it comes to frozen yogurt, there is indeed a wide range of available customers. In
essence, our target market cant be restricted to just a group of people, but all those who
love frozen yogurts and those who would want to try it out.
In view of that, we have conducted our market research and we have ideas of what our
target market would be expecting from us. We are in business to engage in wholesale
distribution and to retail a wide range of frozen yogurt flavors to the following groups of
people;

Households
Children
Corporate Executives
Government Officials
Business People
Celebrities
Military Men and Women
Sports Men and Women
Students
Tourists
Everyone who resides in our target locations.
Our Competitive Advantage
Our aim of starting a frozen yogurt store business is to build a business that can grow within
the first 10 years of establishing the business to be listed amongst the top 3 frozen yogurt
stores in the United States of America. With that in mind, we have been able to come up
with competitive strategies that will help us compete favorably in the industry.
We are going to be one of the very few frozen yogurt stores in Dallas Texas with vending
machines in various locations in the city.
Another competitive advantage that we have is the vast experience of our management
team, we have people on board who are highly experienced and understands how to grow
business from the scratch to becoming a national phenomenon. So also the wide varieties
of frozen yogurt flavors et al that we produce, our large national distribution network and of
course our excellent customer service culture will definitely count as a strong strength for
the business.
One thing is certain, we will ensure that we open our outlets in various cities in the United
States of America and also sell our franchise. With that our brand will be well communicated
and accepted nationally.
Frozen Yogurt Business Plan SALES AND MARKETING STRATEGY
Sources of Income
Pleasant Taste Frozen Yogurt Stores is established with the aim of maximizing profits in
the frozen yogurt stores industry in the United States of America and we are going to go all
the way to ensure that we do all it takes to sell a wide range of frozen yogurt flavors to a
wide range of customers.
Pleasant Taste Frozen Yogurt Stores will generate income by selling the following
products;

Selling traditional frozen yogurt


Selling tart frozen yogurt
Selling smoothies made from frozen yogurt
Selling yogurt parfaits
Selling toppings and other yogurt-related food items
Consultancy Services
Trainings
Sales Forecast
It is important to state that our sales forecast is based on the data gathered during our
feasibility studies, market survey and also some of the assumptions readily available on the
field. Below are the sales projections that we were able to come up with for the first three
years of operations;
First Year-: $150,000
Second Year-: $450,000
Third Year-: $800,000
N.B: This projection is done based on what is obtainable in the industry and with the
assumption that there wont be any major economic meltdown and the arrival of a
competitor in same location as ours within the period stated above. Please note that the
above projection might be lower and at the same time it might be higher.
Frozen Yogurt Business Plan Marketing Strategy and Sales Strategy
Before choosing a location to launch Pleasant Taste Frozen Yogurt Stores and also the
kind of frozen yogurt flavors to produce, we conduct a thorough market survey and
feasibility studies in order for us to be able to be able to penetrate the available market in
the cities where we intend positioning our business.
We have detailed information and data that we were able to utilize to structure our business
to attract the numbers of customers we want to attract per time and also for our products to
favorable compete with other leading frozen yogurt brands in Dallas Texas and the whole
of the United States of America.
We hired experts who have good understanding of the frozen yogurt stores industry to help
us develop marketing strategies that will help us achieve our business goal of winning a
larger percentage of the available market in Dallas Texas and throughout the United
States of America.
In other to continue to be in business and grow, we must continue to sell our products to the
available market which is why we will go all out to empower or sales and marketing team to
deliver our corporate sales goals.
In summary, Pleasant Taste Frozen Yogurt Stores will adopt the following sales and
marketing approach to sell our wide range of frozen yogurt flavors;

Introduce our frozen yogurt brand by sending introductory letters to residence,


merchants and other stakeholders both in Dallas Texas and in other cities in the United
States of America
Open our frozen yogurt plant with a party so as to capture the attention of residence
who are our first targets
Engage in road show in targeted communities from time to time to sell our products
Advertise our products in community based newspapers, local TV and radio stations
List our business and products on yellow pages ads (local directories)
Leverage on the internet to promote our frozen yogurt brands
Engage in direct marketing and sales
Encourage the use of Word of mouth marketing (referrals)
Frozen Yogurt Business Plan Publicity and Advertising Strategy
Despite the fact that our frozen yogurt plant is a standard one with a wide range of flavors
and products that can favorably compete with other leading brands in the United States, we
will still go ahead to intensify publicity for all our products and brand. We are going to
explore all available means to promote Pleasant Taste Frozen Yogurt Stores.
Pleasant Taste Frozen Yogurt Stores has a long term plan of opening outlets in various
locations all around the United States of America and also to sell our franchise which is why
we will deliberately build our brand to be well accepted in Dallas Texas before venturing
out to other cities in the United States of America. As a matter of fact, our publicity and
advertising strategy is not solely for selling our products but to also effectively communicate
our brand.
Here are the platforms we intend leveraging on to promote and advertise Pleasant Taste
Frozen Yogurt Stores;

Place adverts on both print (community based newspapers and magazines) and
electronic media platforms
Sponsor relevant community programs
Leverage on the internet and social media platforms like; Instagram, Facebook ,
twitter, et al to promote our brand
Install our Bill Boards on strategic locations all around major cities in the United
States of America
Engage in road show from time to time in targeted communities
Distribute our fliers and handbills in target areas
Position our Flexi Banners at strategic positions in the location where we intend
getting customers to start patronizing our products.
Ensure that all our staff members wear our customized clothes, and all our official
cars and distribution vans are customized and well branded.
Our Pricing Strategy
When it comes to pricing for products such as frozen yogurts, there are no hard and fast
rules, the prices depends on the size and packaging. Generally, the prize for frozen yogurts
and similar products like ice cream and confectioneries are affordable hence there is no
need to employ any detailed strategies when it comes to pricing.
In view of that, our prices will conform to what is obtainable in the industry but will ensure
that within the first 6 to 12 months our products are sold a little bit below the average prices
of various frozen yogurt brands in the United States of America. We have put in place
business strategies that will help us run on low profits for a period of 6 months; it is a way of
encouraging people to buy into our brands.

Payment Options
At Pleasant Taste Frozen Yogurt Stores, our payment policy is all inclusive because we
are quite aware that different people prefer different payment options as it suits them. Here
are the payment options that will be available in every of our outlets;

Payment by cash
Payment via Point of Sale (POS) Machine
Payment via online bank transfer (online payment portal)
Payment via Mobile money
In view of the above, we have chosen banking platforms that will help us achieve our
payment plans without any itches.
Frozen Yogurt Business Plan Start Up Expenditure (Budget)
When it comes to starting a standard frozen yogurt plant / cold room, one is expected to
spend the bulk of the start up capital on building the plant / cold room. Aside from that,
you are not expected to spend much except for purchasing distribution vans, paying of your
employees and utility bills.
This is the key areas where we will spend our start up capital;

The Total Fee for Registering the Business in Texas $750.


Legal expenses for obtaining licenses and permits as well as the accounting services
(software, P.O.S machines and other software) $1,300.
Marketing promotion expenses for the grand opening of Pleasant Taste Frozen
Yogurt Stores in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04
per copy) for the total amount of $3,580.
Cost for hiring Business Consultant $2,500.
Insurance (general liability, workers compensation and property casualty) coverage
at a total premium $2,400.
Cost for payment of rent for 12 month at $1.76 per square feet in the total amount of
$105,600.
Cost for construction of a standard cold room $100,000.
Other start-up expenses including stationery ($500) and phone and utility deposits
($2,500).
Operational cost for the first 3 months (salaries of employees, payments of bills et al)
$100,000
The cost for Start-up inventory (raw materials and packaging materials et al)
$80,000
Storage hardware (bins, rack, shelves, food case) $3,720
The cost for counter area equipment (counter top, sink, ice machine, etc.) $9,500
Cost for yogurt making equipment $20,000
Cost for store equipment (cash register, security, ventilation, signage) $13,750
Cost of purchase of distribution vans $50,000
The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone,
TVs, Sound System, tables and chairs et al) $4,000.
The cost of Launching a Website $600
The cost for our opening party $10,000
Miscellaneous $10,000
We would need an estimate of $500,000 to successfully set up our frozen yogurt business
in Dallas Texas. Please note that this amount includes the salaries of all the staff for the
first 3 month of operation.
Generating Funding / Startup Capital for Pleasant Taste Frozen Yogurt Stores
Pleasant Taste Frozen Yogurt Stores is a family business that is owned and financed by
Dr. Fiona Quest and Family. We do not intend to welcome any external business partner
which is why we have decided to restrict the sourcing of the start up capital to 3 major
sources.
These are the areas we intend generating our start up capital;

Generate part of the start up capital from personal savings and sell of stocks
Source for soft loans from family members and friends
Apply for loan from my Bank
N.B: We have been able to generate about $100,000 (Personal savings $80,000 and soft
loan from family members $20,000) and we are at the final stages of obtaining a loan facility
of $400,000 from our bank. All the papers and document have been signed and submitted,
the loan has been approved and any moment from now our account will be credited with the
amount.
Frozen Yogurt Business Plan Sustainability and Expansion Strategy
The future of a business lies in the numbers of loyal customers that they have the capacity
and competence of the employees, their investment strategy and the business structure. If
any of these factors is missing from a business (company), then it wont be too long before
the business close shop.
Pleasant Taste Frozen Yogurt Stores will ensure that all the factors listed above are
reinforced on a regular basis, we will continue to improvise with our products, come up with
pleasant and acceptable flavors and also we will engage in continuous capacity building of
our workforce. As a matter of fact, profit-sharing arrangement will be made available to all
our management staff and it will be based on their performance for a period of five years or
more.
We will make sure that the right foundation, structures and processes are put in place to
ensure that staff welfare is well taken of. Our companys corporate culture is designed to
drive our business to greater heights and training and re training of our workforce is at the
top burner.
Check List / Milestone

Business Name Availability Check: Completed


Business Registration: Completed
Opening of Corporate Bank Accounts: Completed
Securing Point of Sales (POS) Machines: Completed
Opening Mobile Money Accounts: Completed
Opening Online Payment Platforms: Completed
Application and Obtaining Tax Payers ID: In Progress
Application for business license and permit: Completed
Purchase of Insurance for the Business: Completed
Leasing of facility and construction of standard cold room: In Progress
Conducting Feasibility Studies: Completed
Generating capital from family members: Completed
Applications for Loan from the bank: In Progress
Writing of Business Plan: Completed
Drafting of Employees Handbook: Completed
Drafting of Contract Documents and other relevant Legal Documents: In Progress
Design of The Companys Logo: Completed
Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In
Progress
Recruitment of employees: In Progress
Purchase of the Needed furniture, racks, shelves, computers, electronic appliances,
office appliances and CCTV: In progress
Creating Official Website for the Company: In Progress
Creating Awareness for the business both online and around the community: In
Progress
Health and Safety and Fire Safety Arrangement (License): Secured
Opening party / launching party planning: In Progress
Establishing business relationship with vendors wholesale suppliers /
merchants: In Progress
Purchase of delivery vans: Completed

Starting a Frozen Yogurt Business A


Complete Guide
Do you want to start a frozen yogurt smoothie shop? If YES, here is a complete
guide to starting a frozen yogurt business with NO money and no experience.
Okay, so we have provided you an in-depth sample frozen yogurt business
plan template. We also took it further by analyzing and drafting a sample frozen yogurt
smoothie marketing plan backed up by actionable guerrilla marketing ideas for frozen
yogurt businesses. In this article, we will be considering all the requirements for starting
a frozen yogurt business. So put on your entrepreneurial hat and lets proceed.
It cannot be argued that most people love frozen yogurt as a healthier substitute or
alternative to traditional ice cream cones, whether its peanut butter-flavoured and
sprinkled with chocolate chips, or a tart lemon flavour dusted with coconut shavings.
Frozen yogurt is a lucrative business you can start today that belongs to the profitable
ice cream industry, which generated revenues of $9.6 billion in 2009. There are no
federal standards for the manufacture of frozen yogurt; however, nearly half of all states
have begun to implement such standards. Between 2003 and 2009, this industry grew
by 16 percent.
If you are looking for a very lucrative business to start, you can begin to look at starting
a frozen yogurt business. This is because of the numerous benefits that is available to
anyone that wants to start this business. E4very day there are more and more people
looking at starting this business.
If you want to get in on the rapidly growing industry by opening your own frozen yogurt
store, just pay attention and continue reading. There are loads of information that will do
you a world of good.

Starting a Frozen Yogurt Business A Complete Guide


Industry Overview
Businesses in this lucrative industry include establishments that primarily prepare or
serve frozen yogurt and other frozen yogurt-based items, as well as toppings. This
industry has grown at a rapid rate over the five years to 2016. Driven by consumers
increasing health consciousness and the emergence of tart-flavoured frozen yogurt, it
has been estimated that industry revenue climbed extremely rapidly during the period.
Interesting Statistics About the Frozen Yogurt Industry
In the coming years, health concerns and consumption patterns will continue to drive
industry growth through the five years to 2020. However, industry revenue will grow at a
slower rate than in the previous five years as the industry flow towards saturation.
The Frozen Yogurt industry has minimal barriers to entry, with low entry costs and no
strong licensing requirements. However, industry competition and market awareness
can pose as a threat to potential entrants. Prospective entrepreneurs just like yourself
planning to enter this industry are not particularly constrained by the capital investment
required to open a frozen yogurt store.
But you can lease premises and equipment, furniture and fittings, which lower initial
capital costs, outlays and borrowings considerably. Entry can also occur through signing
a franchise agreement, where costs are relatively cheaper than other food
establishments.
The frozen yogurt industry is quickly approaching its limit. With so many stores
launching over the past five years, existing stores have experienced increased
competition and growth is expected to slow in the next five years as a result. It has been
estimated that the industry will grow at a tempered annual rate of 3.4 percent to reach
$2.1 billion in revenue by 2019.
Strong operators will continue to see reasonably good results, yet slower growth than in
previous years. Customer demand is still strong and the category has some room to
grow, but I sincerely believe its all about the best operators those who bring
something special to the experience.

Starting a Frozen Yogurt Business Market Feasibility Research


Demographics and Psychographics
Everybody loves frozen yogurt: men, women, kids of all ages, grandmas and grandpas
you name it! Yogurt is a power-boosting protein and bone-building calcium. People eat
yoghurt for its sensational taste and its surprising health benefits. Before you plan and
open a frozen yogurt shop, you need to find out if there is a demand or desire for the
store in your chosen area.
You need to conduct surveys, either by going door to door yourself or by hiring a
research firm. Ask a range of people from all backgrounds, ages and genders in the
area how they feel about frozen yogurt. Examine income and employment statistics for
the region so that you know whether or not people will be able to afford to spend money
on your frozen yogurt.
List of Niche ideas in the Frozen Yogurt Business
One of the major decisions you will have to make when starting your frozen yogurt store
is to determine type of frozen yogurt business. Your frozen yogurt business may include
self-serve or full-service treats. Research your local market to identify market niches to
appeal to customers and learn about menu offerings and pricing scales. Niches you can
choose from may include.
Selling traditional frozen yogurt
Frozen yogurt wholesale manufacturer
Selling tart frozen yogurt
Selling smoothies made from frozen yogurt
Selling yogurt parfaits
Selling toppings and other yogurt-related food items
Open a yoghurt related website
The Level of Competition in the Frozen Yogurt Business
Americans may be more aware of their diets these days, but they certainly have no less
of a sweet tooth. Frozen yogurt, a hybrid between the traditional ice cream dessert and
the healthier (and hipper) yogurt based products, is an innovative way for customers to
have their cake, and eat it too.
Although the popularity of the frozen yogurt franchise industry suffered a decline in the
late 1990s, the category has been making a colossal comeback in the last decade, with
a new generation of flavours, toppings, and store settings leading the charge.
The Frozen yogurt shop sales growth was fuelled largely by popular national chains
such as Pinkberry, Red Mango and Yogurtland, which since 2005 have quickly
increased their U.S. location counts, with future overseas expansion expected in
markets including Asia and the Middle East.
The firm also predicted, however, that the number of U.S. frozen yogurt stores which
went from 983 in 2007 to more than 1,200 as of 2011 would shrink starting in 2017,
as the market becomes saturated and smaller players struggle to survive against
growing large national franchise companies.
List of Well Known Frozen Yogurt Brands in the United States
16 Handles
Chocolate Shoppe Ice Cream Company
Frosty Boy
Gojis
Golden Spoon
Handels Homemade Ice Cream & Yogurt
I Cant Believe Its Yogurt!
Jubili
Llaollao
Menchies Frozen Yogurt
Orange Leaf Frozen Yogurt
Pinkberry
Red Mango
Spoon Me Frozen Yogurt
Sweet Frog
TCBY
Tutti-frutti Frozen Yogurt
Wakaberry
YogenFrz
Yogoberry
Yogurtland
Yogurt Mountain
YoLo Frozen Yogurt
Yumilicious
Economic Analysis
It was reported in 2011 that annual U.S. revenue at frozen yogurt industry had reached
$1.59 billion. Revenue grew 5.9 percent annually in the five years through 2011 and
was expected to rise 2.4 percent annually over the coming five years.
It was also accurately reported that frozen yogurt servings in 2011 reached 128 million,
up 11 percent from the prior year. Independent operators and large franchise chains
have expanded their presence by introducing new flavours, toppings and self-service
formats.
According to the industry publication Franchise Times, yogurt businesses require initial
investments ranging from $330,000 to nearly $500,000 and averaging around $400,000.
Per-store sales volumes can range from $200,000 to more than $1.3 million annually;
as of early 2013, for example, they averaged $510,000 for Red Mango and $783,000 for
Yogurtland. With the self-serve element, labor costs at some shops can run lower than
20 percent of sales.
It seems that product introductions and expansion strategies of new major players in the
frozen yogurt industry are what has driven geographic store distribution. For example,
California is considered the domestic birthplace of tart frozen yogurt as thats where
originator Pinkberry is located. Three of the top four largest frozen yogurt franchises
also began in California and expanded throughout the state.
As such, California holds the highest percentage of froyo stores at 33.1 percent and is
the single reason why the West region has the highest number of frozen yogurt stores.
Following the West, the Mid-Atlantic region boasts the second largest number of
establishments, with New York holding 14.1 percent. The health-conscious and urban
market there is definitely to thank for the expansion to the East coast.
Meanwhile, the Southeast regions hot and humid climate has led to it landing the third-
largest number of frozen yogurt establishments, with Georgia and Florida leading the
way. The smallest share of frozen yogurt stores is in the inland and colder states of the
Plains and New England, which represent just 3.6 percent and 2.9 percent of total
establishments, respectively.
Is the Frozen Yogurt Business Worth Starting from Scratch or is Buying a
Franchise Better?
For the sake of this article, pursuing the franchise route is likely a better option at this
time. Signing on with a franchise that boasts an established brand with proven systems
can help jumpstart a business, especially when there are so many other frozen yogurt
shops vying for consumer dollars.
Plus, by becoming a franchisee, you will most likely be assigned an exclusive franchise
territory. While competition may still exist against other frozen yogurt stores, having your
own territory ensure you wont be rivaling franchisees of the same brand.
Most costs associated with starting a frozen yogurt shop come in the form of fixtures
and fittings, such as frozen yogurt machines (refrigerators and dispensers), display
shelving (including carts to store toppings), chairs and tables for customer seating, and
point-of-sale systems like cash registers and credit card machines.
Possible Challenges andThreats of Starting a Frozen Yogurt Business
Frozen yogurt serves as excellent alternatives to ice cream, especially to those looking
for healthier dessert options. Provide a variety of flavours, toppings and serving options,
such as edible cones or paper cups, to satisfy as many customers as possible. But
before you start this business, there are barriers which you might encounter and they
may include:
Choosing a suitable niche
Applying for permits
Purchasing inventory
Writing a business plan
Industry competition
Starting a Frozen Yogurt Business Legal Aspect
Best legal entity for a Frozen yogurt business
Several factors should be considered when choosing the best form of business
structure when starting your frozen yogurt business. The type of business structure you
choose can have an impact on multiple aspects of your business, including taxes,
liability, and your exit strategy.
In starting your frozen yogurt business, a LLC structure is strongly advised because
LLCs are simpler and more flexible. Unlike both types of corporations, LLCs dont
require a board of directors, shareholder meetings and other managerial formalities.
Entrepreneurs can divvy up the profits any way they choose, as opposed to
shareholders in corporations, who have to carve them up in proportion to their
percentage ownership in the company.
One benefit of this is that Entrepreneurs can entice talented employees with a share of
the profits, even if those employees didnt pony up their own equity in the beginning.
The LLC structure also gives tax-treatment flexibility.
An LLCs profits can be taxed as a corporate entity (a C corporation) or as a pass
through entity (an S corporation), meaning that the company avoids paying tax on both
corporate profits and the owners personal income. Most LLCs choose the pass-through
option. However, in some cases, LLCs can choose a C corporation tax structure and
save money by funnelling profits back into the business tax-free.
Catchy Business Names ideas for a Frozen Yogurt Business
Berrylicious
Cherry On Top
Youg
CUPS Yogurt Shop
Fricky Yogurt
Choosing the Best Insurance Policy for your Frozen Yogurt Business
Opening a Frozen yogurt business is not an inexpensive endeavour, and once you enter
the world of serving one of the most favourite comfort foods, you must protect it.
Protecting your and your investors interests through an Insurance Program is not just
necessary, it is vital. All kinds of risks are out there that insurance protect you and your
business from financial responsibility. These insurances may include:
Workers Compensation Insurance
Commercial Liability Insurance Coverage
Business interruption insurance
All Risk Equipment Insurance
Commercial Auto Insurance
Is Intellectual Property Protection Needed to Start a Frozen Yogurt Business?
The creation, exploitation and protection of intellectual property (IP) rights are
fundamental to the success of most retailers. In the Frozen yogurt industry, intellectual
property protection and Trademark are needed to serve as
Brand and image rights
Protection and registration of designs
Enforcement and dispute resolution
Anti-counterfeiting and piracy
Patents laws
Trade mark filing and opposition
Brand audits and watching services
Securing trademarks and passing off
Domain name strategies and disputes
Data and database rights
Competition law
Protection of technology and innovation
Advertising and marketing issues
Is Professional Certification Needed to Start a Frozen Yogurt Business?
If you plan to start your own frozen yogurt business or if you are currently majoring in
marketing or information systems, you could benefit from earning a few certifications
which may include retailing certification. These certifications includes:
Customer Service and Sales Certification (CSCS)
Advanced Customer Service and Sales Certification (ACSSC)
Retail Management Certification (RMC)
certified food protection manager (CFPM)
Master Baking Certificate Program
Retail Business Credential (RBC)
List of Legal Documents Needed for a Frozen Yogurt Business
Knowing what licenses and permits your frozen yogurt business needs can be very
confusing when planning a new business. Each item requires time, energy and
paperwork to obtain the proper registrations. As unpleasant a task as it may be, dont
risk your business shutting down before it fully begins.
Conducting business without the proper licensing is a criminal offense in some states,
while others hand out hefty fines. Here are some legal documents needed for a Frozen
yogurt business.
Federal tax identification number
Business license
Food permit
Resale certificate
Certificate of occupancy
Insurance certificate
Alarm system permit
Writing a Business Plan for your Frozen Yogurt Shop
Firms that offer foods and snacks grow because of the demand for these products and
the Frozen yogurt business is sure one of the top five. Just as I already stressed, a
good number of people love frozen yogurt as a healthier alternative to traditional ice
cream cones; thus making the yogurt production business a profitable one.
If you have been looking to start a lucrative business of your own, a frozen yogurt
production company is a very good option to consider. Though the frozen yogurt
production business requires huge start-up costs, the business is very profitable, and
you would regain your investment quickly. It is paramount that you conduct research to
determine exactly what the public wants. This will also help you know if the frozen
yogurt business will thrive in your locality.
One of the keys to success in any business is finding out what customers want and how
they want it, and giving it to them the way they want it. During your research, you may
find some fascinating information that will help build your business. Maybe there is
untapped demand for certain varieties of frozen yogurt such as lactose-free frozen
yogurt or frozen yogurt made with local, free-range milk. As an intelligent entrepreneur,
you must investigate all opportunities, threats and possibilities
Writing a business plan will sure help you know your start-up and operation costs. It will
also give you some information into who your potential customers are, who your
competitors are, and how you can defeat your competition by developing your unique
selling points. A business plan will also help you make projections and realistic plans for
the future.
And it helps you define your specific expenses and how quickly you can build revenues.
If you have taken the pain to conduct feasibility study, then writing a business plan
would be a piece of cake because most of the work has already been done in the
research phase.
A Detailed Cost Analysis for Starting a frozen Yogurt Business
It is undeniably true that frozen yogurt is a very lucrative business with enough cash
flow; there are still some challenges that accompany the business. What makes you
successful in this business is your ability to tackle these challenges effectively. Outlined
below is the cost analysis of starting a large scale frozen yogurt business.
Equipment
5 machines @$12,500 each $62,500
1 two door refrigerators $2,000
1 two door freezer- $2,000
Topping display with sneeze guard, $2,500
POS System- $4,500
Other Kitchen equipment (hand basin, mop sink, 3 compartment sink) $1,500
Supplies- $1,000
Tables, chairs, TVs and Wi-Fi $5,000
Building costs
Build-out- $150,000
Signage- $5,000
Menu board- $2,000
Inventory- $4,000
Prepaid Expenses (lease deposit, utilities deposit, permits) $7,000
Professional Fees
Architect
Attorney
Accountant
Total 8,000
Insurance $5,000
Automobiles $25,000
Licensing $3,000
Grand Opening Promotion $3,000
Estimated Total- $293,000
From our well detailed cost analysis above, you will understand that it will cost
you $293,000 to start a large scale frozen yogurt business and $131,560 to start a
medium scale frozen yogurt business. A small scale frozen yogurt business is estimated
at $23,850.
Financing your Frozen Yogurt Business
If you have all the incentives you need, then you are good to go. But if you need
additional funds before you can kick start your frozen yogurt business, you will need to
approach an investor, the government, a bank, or some other loan-giving establishment.
This is where your business plan will have to become even more instrumental. If your
business plan is compelling and portrays a bright future for your business, then
investors would be willing to fund it. Ways of getting funds may include:
Raising initial capital from family and friends
Getting Capital from Angel Investors
funds from Venture capitalists
Taking your company public through IPO
Getting small business loans
Getting funds through Crowdfunding
Raise Funds through Mergers and Acquisitions
Finance your Business Expansion with Equipment Leasing
Choosing a Suitable Location for your Frozen Yogurt Business
The location of your business can in a very great way dictate its success or failure. You
have to a conduct research as to the best place to locate your business. Also, you need
to determine if your business would have a retail component. This can fetch you a large
volume of small profit sales, but you will need more investment costs.
Visit shopping malls, outdoor marketplaces, downtown areas and locations that receive
heavy foot traffic due to the proximity to restaurants, movie theaters, grocery stores and
local entertainment, such as theme parks or miniature golf courses. Choose a location
with ample counter and display space, room for seating, freezer space and a
commercial kitchen for preparing frozen yogurt and other items.
Starting a Frozen Yogurt Business Technical and Manpower Requirements
When starting your frozen yogurt business, you will need to get facilities such as a shop
or warehouse, a production factory, and an administrative office. You can either lease
these facilities or develop them on your own. But always consider that the latter option
would cost more. For a start, you must keep all your component facilities within one
location. You can separate them later when your business starts to expand.
You need to understand that you will need to purchase the major equipment and
material needed to run your frozen yogurt production business. You will need digital
scales for measuring frozen yogurt weight, self-serve machines, caddies for displaying
toppings, such as fresh fruit or crushed candies, freezers, warmers for fudge and
caramel sauce. Dont forget that you will also need standard business office items,
including a fax machine, telephone, credit card machine and register.
When starting your frozen yogurt business, you have to hire few staff. Hire the most
suitable and experienced individuals for each position, and give them the necessary
training they need to play their roles well. Nothing brings success faster than teamwork
and dedication.
The Production Process Involved in a Frozen Yogurt Business
Frozen yogurt usually is primarily made up of milk solids, some kind of sweetener, milk
fat, yogurt culture, natural or artificial flavourings, and sometimes natural or artificial
colouring. Milk fat make up about 0.556% of the yogurt. Added in quantities inversely
proportional to the amount of milk solids, the milk fat lends richness to the yogurt.
Milk solids make up 814% of the yogurts volume, providing lactose for sweetness and
proteins for smoothness and heightened resistance to melting. Cane or beet sugar
provides 1517% of the yogurts ingredients. In addition to adding sweetness, the sugar
raises the volume of solid ingredients in the yogurt, improving body and texture.
Animal gelatine and/or vegetable additives (guar gum, carrageenan, etc.) stabilize the
yogurt, reducing crystallization and heighten the temperature at which the yogurt will
melt. This stabilization makes sure that the frozen yogurt remains a smooth regardless
of handling or change in temperature.
Most yoghurt makers often use assembly lines specifically dedicated to frozen yogurt
production. The milk products and stabilizing agent(s) are added together and
homogenized. At 32 C, the yogurt culture is added. The mix remains at this
temperature until it sets and is ready for cooling.
After that stage, the mix is cooled at a temperature of 0 to 4 C. Once it has reached the
wanted temperature and viscosity, the yogurt is allowed to sit in aging tanks for up to
four hours. Sweeteners, flavourings, and colourings are then added, and the yogurt
mixture is cooled at a temperature of 6 to 2 C.
To create extra volume and smooth consistency, air is incorporated into the yogurt as
the mixture is agitated. When a considerate amount of air has been incorporated into
the product, the yogurt is rapidly frozen to avoid the formation of large ice crystals, and
stored in a cold place to be shipped. Frozen yogurt can be made in a soft serve freezer
in almost the same way as soft ice cream.
Frozen yogurt mix is sold in powder form that needs to be mixed with water or liquid
form ready to pour into a soft serve machine. A mix with high fat or low fat content can
be chosen, and the quantity of air introduced into the soft serve frozen yogurt is
variable. The greater the level of fat, the more air the yogurt can absorb; and the more
air that is introduced into the mix as it freezes, the creamier the product will taste.

Starting a Frozen Yogurt Business The Marketing Plan


Marketing strategies and ideas for a Frozen yogurt business
Attracting people to try a scoop of your delicious frozen yogurt is one of the most
important parts of establishing your frozen yogurt business. That simply means that
your marketing strategies must get to a variety of target markets, such as families that
want a cool treat on a hot day, employees from local businesses on their lunch break or
people strolling through the mall.
Once people start trying your frozen treats, implement strategies that will convince them
to return to your store, instead of going to your competitors yoghurt shop. Marketing
ideas for your frozen yogurt business may include
Host Events
Initiate Loyalty Program
Use the Social Media
Use the Press
Choosing the Right Pricing for your Frozen Yogurt Business
When it comes to the issue of pricing for products such as frozen yogurts, there are no
hard and fast rules or known price models, the prices will always depend on the size
and packaging. Generally, the prize for frozen yogurts and similar products like ice
cream and confectioneries are affordable hence there is no need to employ any detailed
strategies when it comes to pricing.
In view of that sincere fact, your yoghurt prices should conform with what that is
obtainable in the industry but it is your duty to ensure that within the first 6 to 12 months
that your products are sold a little bit below the average prices of various frozen yogurt
brands in the country. But you need to put in place business strategies that will help you
run on low profits for a period of 6 months; it is a way of encouraging people to buy into
your brand.
Strategies for Winning Competitors in the Frozen Yogurt Business
With the increasing competition in the frozen yogurt industry and stores coming up from
every corner, you have to make consumers aware of your shop. Each community is
different and some marketing tactics will work in some areas and others will not.
The key is to try different things and find what works for you. And remember that what
worked yesterday, might not work tomorrow. The only limit to your marketing is your own
creativity. Some ideas can be expensive, but there are plenty that are not.
School fundraisers with your local elementary school.
Coupon mailers.
Daily deal websites
Create a flavour contest
Loyalty programs
Group contest
Street marketing
Sponsor or advertise at local races
Social marketing
Cross market with local businesses
Online marketing
Increasing Client Retention in your Frozen Yogurt Business
Your Current customers are the best asset your frozen yogurt business can have. They
already know the brand, they know the products and they know their service. Focusing
your time and energy on these individuals as against always trying to find new
customers can be a powerful way to supercharge revenues for your frozen yogurt
business, especially over the holiday season. There are many ways to retain and
maintain your customers and make them to always want to come back. These ways
may include:
Friendly employees
Satisfy your customers
Patronage discount and coupons
Loyalty and reward programs
Be lenient
Gamification
Help desks and support systems
Customer feedback survey
Light personalization
Strategies to Boost Brand Awareness and Create a Corporate identity in your
Frozen Yogurt Business
Brand awareness and affinity serves several objectives for retail companies seeking to
increase sales in the marketplace and it can do same for your yoghurt business. A
brand awareness campaign needs to be flexible enough to grow with the business and
adjust if needed. Ways to promote brand awareness and create a corporate identity in
your frozen yogurt business may include:
holding an event
exhibiting yourself
sponsor something
create an experiential stunt
take to social media, organize a public relation campaign
invest in promotional merchandise
Join forces with other businesses etc.
Cementing a good corporate identity through good brand awareness strategies with a
little imagination and an understanding of your customer, the sky (and your budget) is
the limit when it comes to getting in front of your competitors.
Creating a Supplier/Distribution Network for your Yogurt Business
Supplier/Distributions networks are those important steps taken to move and store a
product from the supplier stage to a customer stage in the supply chain. Distribution is
an important factor that decides the overall profitability of your frozen yogurt business
because it directly impacts both the supply chain cost and the customer experience.
Good distribution can be used to achieve a variety of supply chain objectives ranging
from low cost to high responsiveness. The conventional distribution model has three
levels: the producer, the wholesaler and the retailer. In the Frozen yogurt business, the
direct distribution and supply should be the primary alternative distribution channel.
It means that you can be the producer and wholesaler thats if you make the Yoghurts,
and then sale to the end user to end the supply chain. But if you buy from a vendor,
then you are the wholesaler who in turn sells to the consumers. Setting up a good
supplier/Distribution Network will sure make your business lucrative and ways to do that
may include:
Contact wholesale food vendors to order frozen yogurt or the ingredients to
prepare frozen yogurt and other food products you plan to sell. Visit food vendor
websites to compare prices and delivery options. Schedule times for deliveries.
Make arrangements with suppliers of the raw materials and ingredients that you
will need. If possible, have more than one supplier for each ingredient, as this will
prevent a hiccup in your business if a supplier runs out of stock.
Pursue distribution deals with existing businesses, such as cafes, restaurants,
supermarkets, and snack stalls. Since you intend to produce yogurt, it goes without
saying that you must have your buyers ready, or no one would buy your product.
Conducting research to figure the number of ready buyers around you will help
you know the quantity of products to produce when you start full operation.
Tips for Running a Frozen Yogurt Business Successfully
To run your frozen yogurt business successfully, you must view everything from an
owners perspective. Is your frozen yogurt great? Do you offer the top frozen yogurt
flavours and rotate often? Is the staff motivated? Is the place clean, does it have good
music and is it a fun and positive experience for the customer?
Indeed no place is perfect, not even Disneyland, but trying your best to make your
business awesome. Things to consider may include:
Always be mindful of your quality
Try to create astonishing services
Create a comfortable atmosphere