Corporate life in metropolitan cities is getting hectic day by day. Therefore, people are more interested to go out and spent some time which could enliven them. Besides this college / university students and young generation also want a relaxed environment where they could spend quality time with their friends & families. In this scenario, the scope and potential for ice cream & juice parlors is increasing.
This particular pre-feasibility provides the basic details for setting up a small ice cream & juice parlor in Pakistan, which will provide quality hygienic food products. The target market for this project will be middle and upper middle class residing in newly developed or under developed housing societies of metropolitan cities of Pakistan. The major product line of the proposed business includes Ice Cream, Juices, Milk Shakes and Coffee.
The proposed ice cream & juice parlor will purchase ice cream from different ice cream manufacturing companies in bulk (Party Packs) instead of producing its own. This will helps to reduce the initial capital investment, operational investment and also provide standardization in taste. Companies like Walls and Hico provide free of cost delivery of Party Packs (9.4 Litters) to different restaurants and ice cream parlors. The only machinery required for the said business is deep freezers, display freezer, coffee maker, blender and juicers.
Factors of Success of Ice Cream Juice Shop in Pakistan
Following are the factors critical for the success of this business venture:
- Formation of organizational system especially for operations department in order to maintain quality standards.
- Develop strong linkages with raw material suppliers for sourcing quality material on time couple with economical prices.
- Time management is very important in restaurant business. Order should be served on time without any delay.
- Good relations with the customers is key for repeat sales.
- Proficient Social Media marketing campaign through Facebook and Twitter is necessary in order to disseminate business info to maximum people. This will also allow the owner to get feedback from customers and provide interaction opportunity with customers.
- Pricing strategy and understanding the demand of customers.
- Location considerations for easy access of the customers.
- Induction of trained human resource for the handling of business operations especially in operations and sales.
- Shop interior and layout of products.
- Market intelligence is also very critical in order to have ‘know how’ about new happenings in market.
Areas Where Juice Shop / Ice Cream Parlor Should be Opened
All metropolitan cities of Pakistan like Lahore, Karachi, Islamabad, Sialkot, Faisalabad, Multan etc. are the potential areas for investment in this particular business. It is suggested to open this business in the commercial markets of newly developed areas. The trend of ice cream & juice parlors and coffee shops is intensively increasing in the big cities which motivates the investors to invest.
The target market for this particular business is the middle and lower middle economic class of metropolitan cities of Pakistan. The target age group is from young to middle age (i.e. 10 to 45 years) mostly as this segment is more interested to eat ice cream on regular basis. Besides this it is also recommended to target different universities and colleges in order to enhance the sales volume.
Machinery & Equipment Requirement for Juice Shop / Ice Cream Parlor
Following is a list of machinery & equipment that is required to start a juice shop / ice cream parlor in major cities of Pakistan:
- Display Freezer
- Deep Freezer (02 Door)
- Juicer & Blender
- Juicer for Citrus & Other
- Coffee Maker
- Water Dispenser
Operational Capacity of Ice Cream & Juice Shop
The total installed capacity of the project is assumed at 192 servings a day. The initial operational capacity of the project will be 80% with an annual growth of 2%. Maximum capacity utilization of the project is assumed at 95%.
Investment Required for Juice & Ice Cream Shop in Pakistan
Investment required to start an ice cream & juice shop in major cities of Pakistan is approximately PKR 2 million. All the figures in this financial model have been calculated for estimated sales of Rs.7.511 million in the year one. The capacity utilization during year one is worked out at 80% with 02% increase in subsequent years up to the maximum capacity utilization of 95%.
A detailed financial model has been developed to analyze the commercial viability of ice cream & juice parlor. Various costs and revenue related assumptions along with results of the analysis are outlined in this section. The projected income statement, cash flow statement and balance sheet can be studied in the pre-feasibility study of juice shop by SMEDA.