Confectionery business plan

Investments: from 4,000,000 rubles

Payback: from 1 year

The trade in high quality food has significant market potential. Interest in this commercial niche is growing. Consumers are dissatisfied with the quality of products in hypermarkets. Many would gladly take the opportunity to buy food at affordable prices from a small eco-shop. But for such a business to be profitable, you need to organize it correctly. Let's consider how to do this using the example of a city with a population of 500 thousand to a million people.

Business concept and target audience

In the beginning, such a commercial activity is unlikely to be highly profitable. After all, the cost of natural products without all kinds of additives is, on average, twice as high as those purchased for mass consumption. But the progressive increase in the number of peasant farms and the low cost of delivery from local producers contribute to the profitability of the business. In addition, such shops are not available in all cities, which will stir up buyers' interest in the new outlet.

The main idea is to sell environmentally friendly and healthy food with the lowest possible markup. The target audience of buyers - men and women from 23 years old, promoting a healthy lifestyle. There are usually more shoppers in these stores than shoppers, but there is now a trend towards equilibrium as interest in healthy eating grows.

The peculiarities of such commercial activities include:

• The emphasis is not on quantity, but on quality. At the beginning, the assortment of the store may be small, but the quality characteristics of the products should be ideal.
• No non-certified items. Everything must be confirmed by documents - veterinary permits, quality certificates, laboratory and nutritional studies.
• The products of the store must be grown in natural conditions - no GMOs, artificial additives and other "joys" of the mass consumer. The more natural, the better.
• Products should be divided into categories, and a plate should be attached to each with an indication of useful qualities and contraindications.

Those who have already implemented this business idea believe that most of the products offered in a health food store should have a maximum shelf life, since such a demand as in hypermarkets is difficult to achieve at first.

What will it take to open an eco-shop?

What's so attractive

Food is one of the basic human needs. Due to the richness of life, less and less time is allocated for cooking at home, more and more often there is a need to eat in a public place.

Even in times of crisis, there is a demand for delicious food, as people want a holiday.

This area is of interest to a businessman of any level. Its format can be completely different. This allows people with any size of capital to find their niche.

What to do

Desire is not enough to become a successful restaurateur. You should start your project from the planning stage.

You need to analyze your abilities, skills, abilities and the amount of capital that can be invested. The results of the analysis must be compared with the direction that you want to do. If you have enough money for a mobile refrigerator with ice cream, experience in this industry is minimal, then you should not think about opening a premium restaurant. For the project to be liked by consumers, it is important that it differs from many similar ones. Advantages can be in quality, price, additional services, unusual service format, interesting design. you need to work in accordance with the law. In addition to registering a legal entity, you must obtain a package of permits. The list of them depends on the specifics of the institution. When planning to open a catering outlet, it is important to think over its advertising. The modern world makes it possible to abandon ineffective standard methods of promotion and actively use the Internet and social networks. Perhaps you should invite some popular bloggers to rate the new restaurant and write reviews on their pages. Young audiences usually listen to recommendations and enjoy visiting new fashionable places.

Funding

It is not necessary to start a business solely with your own money. If the idea is interesting and promising, it will not be difficult to find an investor. You can use the financial assistance of the state. To do this, you need to familiarize yourself with the support programs for young entrepreneurs available in each region. If the cafe opens under a franchise, you can apply for a bank loan.

Business from scratch

The scale of the project depends on the desire and capabilities of the entrepreneur. The profitable point of catering should be located in a passageway and correspond to the financial capabilities of the population.

The main establishments of this type are:

• restaurant ;
• cafe;
• point in the mall.

Brief Investment Memorandum

At present, the food industry is one of the most promising and quickly recouped.

In the modern world, the main resource is time. Therefore, most people simply do not have the opportunity to cook themselves, as this is a long and laborious process. It follows that the delivery of meals to offices is becoming more and more popular. Many workers today prefer healthy and balanced meals.

This type of business is attractive for its relatively low investment costs, which can be returned in the first months of the project.

It is more expedient to start such a business in a city with a population of over 1 million people.

In order to outperform competitors in this niche, before starting a business, it is necessary to conduct a thorough analysis and draw up a competent business plan.

Key principles of success:

• Attractive prices
• Healthy and high quality products
• Fast delivery
• A varied menu
• Balanced meals

The initial investment is 529,500 rubles.

The break-even point is reached for 3 months of work.

The payback period is from 14 months.

Average net monthly profit 48,000 rubles.

Russians eat a lot of sweets, the consumption of confectionery (CI) in our country is one of the highest in the world. In 2021, the average Russian consumed 25.2 kg of sweets. Sales volumes of confectioners have been growing since 2021 by 1-3% every year. You can make good money on this love, for example, by opening your own cafe-pastry shop, where you can not only serve customers, but also make sweets to order and for sale in stores.

In the material below, we will take a closer look at why this business is so promising, and give a ready-made business plan for opening a confectionery with approximate calculations of the return on business.

Confectionery Industry Outlook

The volume of production / consumption of confectionery in Russia is growing every year. According to the Association of Confectionery Industry Enterprises (ASKOND), sweets were produced in 2021 by 3.7% more than in 2021.The indicator is growing steadily after a slight drop in 2021.

Table 1. The rate of change in the volume of confectionery products in the Russian Federation in 2021-2021.

Change to the previous year

The data confirms the financial statements of the leading confectionery factories with brand chains, indicating an increase in revenue.

According to forecasts, the production of sweets in Russia will continue to grow in the coming years. This will be due to both growth in sales in the country and an increase in the share of exports abroad.

Market competition

The confectionery business is highly competitive. There are many Russian and foreign manufacturers working on the country's market.

Let's single out the main groups of competitors with which the new businessman will have to share the market.

Firstly, these are large confectionery factories, among which are well-known companies that have been operating since Soviet times. Their sweets are known and loved by Russians. Large companies sell finished goods in all regions of the country.

Secondly, regional confectionery factories operating in specific regions and regions.

Milk is a product that is in high demand. It is included in most dishes, used without additional processing. The capacity of the dairy industry market is about 720 billion rubles. Market potential based on consumption rates is significantly higher. It amounts to 1.7 trillion rubles. Product demand continues to be high even amid the 2021 pandemic. You will make good money by starting a dairy business from scratch.

Market Analysis

Milk is consumed raw, processed into cottage cheese, cheese is made, sour cream and cream are obtained. In January March 2021, the growth in the production of fermented milk products amounted to about 5%. The total volume was about 7 million tons. An increase is observed in the production of cream, ice cream, butter, and cheeses.

Dairy factories produce goods for domestic consumption and for export. Cooperation is conducted with China, Belarus, Georgia, Ukraine and Kazakhstan. The domestic market is mostly provided with whole milk and fermented milk products. These goods are practically not exported. This situation has arisen due to the short shelf life of products and high transportation costs. Cheese, powdered milk, milk fats and condensed milk are imported to the domestic market.

Urban residents are more likely to buy packaged milk. Shopping is done by women between the ages of 25 and 70. They purchase milk at least twice a week. Children and men also actively consume products, but they make purchases less often.

When buying a product, consumers pay attention to the shelf life, the appearance of the packaging, the fat content. Customers buy products that additionally contain fiber, probiotics and vitamins. The demand is growing for natural yoghurts, sour cream without vegetable components, and Russian cheeses.

The pandemic did not significantly harm the industry. In the first two months of the spring quarantine, demand for milk and derivatives increased. Then the situation stabilized. However, dairies cooperate not only with shops, but also catering organizations, food producers, state farms and farms. From their side, the demand has decreased.

The promotion of a healthy lifestyle has a positive effect on the market. Consumers monitor their health, adhere to proper nutrition. It involves the use of fermented milk products. Therefore, demand remains high.

Large players are mainly represented in the dairy business. These are large enterprises cooperating with shops and catering establishments.

The competition is quite high, but the local market is often not oversaturated. The client is more active in purchasing products manufactured nearby. This milk is fresher because it doesn’t take time to deliver it.