Dessert Bakery Business Plan Dessert Bakery Business PlanThe Business Improvement District in Washington DC is in need of a new niche business that combines high-end gourmet freshly-made pastries with the quick service needs on the way to work or after dinner
We are a a quick-service restaurant where customers sit around a bar and watch their desserts being made. The show, as well as the dessert, is our main selling point.
Rutabaga Sweets focuses on local markets, with a special focus on restaurant and ice cream shop customers. Washington DC provides an excellent climate for our dessert bar as households there spend more money dining out than anywhere else in the country.
We have no specific direct competition, yet, but of course we also compete with everyone. Our competitive edge is our unique niche in an old market. Although restaurants, cafes, bakeries, ice cream shops, etc have an established position in the marketplace, none are quite like Rutabaga Sweets. We are offering the customers a completely new experience and far higher quality product. No where else will they find a professional chef preparing gourmet desserts right in front of them. The amazing popularity of the Food Network is proof of the public’s new-found interest in being a spectator in the kitchen.
Rutabaga Sweets is a hospitality company dedicated to providing high-quality desserts in a comfortable atmosphere for clients who seek a fun "gourmet" experience outside restaurants.
As shown in the chart below, we can become profitable by the second year. The heavy startup expenses create the loss for the first year.
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We’re looking for $300K total investment, us and close friends and family. Re realize this is not an opportunity for outside arms-length investors.
The locals in the Business Improvement District in Washington DC are in need of a quick service place that serves high quality desserts as a way of spoiling themselves. Celebrations, successes, birthdays, and other occasions need high quality bakery goods. The community also needs a place to gather and learn how to bake. We can add something very unique since our owner is a Cordon Blue chef and can share secrets so mom’s can bake their kids favorite birthday cake at home.
Rutabaga Sweets will hold true to its vision of being a new concept with an old fashioned feel in order to become a favorite spot for DC natives. As the reported national leader in money spent in restaurants, Washington DC is an optimal location for launching a new restaurant concept. Rutabaga Sweets also hopes to become a destination for the thousands of tourists, both American and foreign, who visit DC every year.
Rutabaga Sweets sells gourmet desserts coupled with exceptional customer service in a comforting atmosphere. Customers can dine-in and watch the chef create their dessert. We also offer carry-out to prepare our desserts at home or have a special cake for a celebration. And every month customers can join in the fun and take a cooking class taught by a Cordon Bleu trained chef.
Market Segmentation
Our market is divided into four different psychographics: Comfort Creatures, Celebrators, Soccer Moms, and Gourmet Wanna-bes. They represent groups of people sharing similar behavior patterns and reasons for patronizing Rutabaga Sweets.
Comfort Creatures are mainly white collar workers who are driven by success and prestige yet miss homemade comfort foods of their childhood. They may stop in on their own or bring clients in for a gourmet dessert experience.
Celebrators are just that – people celebrating special occasions. Birthday, anniversary, graduation, valentine’s day, etc., families and loved ones will gather at Rutabaga Sweets over sumptuous desserts and a festive atmosphere.
Soccer Moms actually encompasses all family members. Rutabaga Sweets is a gathering place where families are welcome and feel comfortable. "Moms" can come in for after school milk and cookies with their children and relax while we pamper the little ones. Or they can meet up with friends for our Tea Time – a little civilized time stolen in the midst of a busy day.
Gourmet Wanna-bes watch the Food Network and easily spend $50 for the latest cookbook. They’ll be the adventuresome diners at Rutabaga Sweets, as well as the first to sign up for our cooking classes.
Target Market Segment Strategy
We have specifically targeted segments of people with an appreciation for delicious desserts and a need for comfort and relaxation. Rutabaga Sweets is a haven for the busy & successful who want to treat themselves to something soothing and a little sinful! It doesn’t take a lot of time, yet is so rewarding. These people will value the high quality product presented without pretension. Our customers will also appreciate the fun and fast service – whether celebrating a birthday or stopping in before a concert at the MCI Center.
Although Rutabaga Sweets is opening up a new niche in the restaurant industry, there is no doubt that we are competing with a variety of similar businesses. We need to compete against the ideas that dessert is something that only follows a special dinner and needn’t be any better than a frozen cake. We want every day to be a reason to celebrate. And being able to watch your gourmet dessert be prepared by a chef is a treat that appeals to everyone.
While price may be a factor when competing against Ice Cream and Coffee Shops, these same consumers who are willing to pay five dollars for a latte or a scoop of ice cream are already conscious of a better quality product. We believe they will be equally as willing to spend a little extra for an extraordinary dessert in a warm and friendly setting.
The comfort factor also plays an important role in consumer decisions about sweets. Both the atmosphere and staff of Rutabaga Sweets excel at warm & friendly. And the menu will reflect "comfort food" desserts as opposed to intimidating desserts that resemble architectural collosi. We will use the highest quality products; sometimes paring the ordinary with the exotic, but we will always present our desserts in a unintimidating manner.
We have a very new niche take on a old idea, which means that we have no exact competition. We are the only ones doing this in the area. We have a Cordon Bleu trained chef that can share insights, give a show. Everyone loves the TV show "Iron Chef". We will give our customers a very quick show.
Our other advantages:
We are dedicated to using the highest quality ingredients and "the customer is always right" customer service. Our staff will be trained to help the customer get exactly what they want, a sinful delight. To encourage employees we will give recognition for outstanding service.
We will give baking lessons and be a place where the community can gather and learn and relax.
1.3 Keys to Success
Rutabaga Sweets’ marketing strategy will be education of the consumer and subsequent word-of-mouth. We will become known as a unique dining experience as well as a superior pastry shop. Customers will be reached through fliers, newspaper advertisements and special holiday promotions.
We will also reach our customers through social media. We will have a facebook page with our customer’s favorite desserts and recipes. Customers can send us their favorite deserts they made themselves on our instagram page. If our chef likes the idea she will make it, and bring the customer in to try our version free of charge. We will also talk to our customers and let our customers talk to us through twitter and linked in.
Location will also play a crucial role in marketing and promotion. The business will be located in high-traffic retail area in Washington, DC known as the BID. Washington DC’s Business Improvement District offers many incentives to businesses operating there. Additionally, there is the traffic that will come from being located near the MCI Center.
Rutabaga Sweets will target progressive and generally well-educated and affluent consumers who are interested in trying new products and experiences and are dissatisfied with the limited selection and lack of personal service found in grocery store bakeries, neighborhood cafes and ice cream shops and area restaurants.
We will have a facility with a store front large enough to have baking ovens and state of the art equipment. We will have counter space as well as a few tables for the customers to wait for their orders and watch our chef bake. The whole space will be open so the customers can watch. We have enough space to run a cooking class of 12 people.
We plan to manipulate our location in the Business Improvement District to our utmost advantage. Both tax incentives and high traffic due to the MCI Center will give us an edge as a new business. As the BID fills up with new businesses over the next few years Rutabaga Sweets will receive an added boost of increased traffic. Therefore, we are aggressively planning for a 50% increase in sales the second year of business.
