Candy Store
The Sweet Tooth
765 Main St.
Mount Pleasant, MI 48858
Zuzu Enterprises
Candy is a special treat that plays an important role in cultural traditions, seasonal celebrations and family occasions here in the U.S. and around the world. Candy is also associated with childhood, a simpler time filled with fun and happiness. But, it can be hard to find old fashioned bulk candy storesthat carry all your favorite childhood memories; we serve this niche and offer the best candy supply along with gourmet popcorn, nuts, and Ashby's Ice Cream. The Sweet Tooth will sell candy for all occasions and offer specialty packaging, gifts, and combinations to suit any need and desire.
EXECUTIVE SUMMARY
Candy is a special treat that plays an important role in cultural traditions, seasonal celebrations and family occasions here in the U.S. and around the world. Candy is also associated with childhood, a simpler time filled with fun and happiness. But, it can be hard to find old fashioned bulk candy stores that carry all your favorite childhood memories; we serve this niche and offer the best candy supply along with gourmet popcorn, nuts, and Ashby's Ice Cream. We sell candy for all occasions and offer specialty packaging, gifts, and combinations to suit any need and desire.
The Sweet Tooth is a family-owned business, owned and operated by the Bernard family. We proudly serve the wonderful community of Mount Pleasant, Michigan and are thankful for great families and customers that support small businesses.
INDUSTRY ANALYSIS
The confectionery industry has fared well in recent years, both during the height of the recession and its aftermath. In 2014, the U.S. Retail Confectionery Industry is generated $34.5 billion in retail sales. Among more than 300 product categories across the store, confectionery is growing faster than 184 other categories, with 92 of those showing declines, according to the National Confectioners Association (NCA). Over the 52 weeks through Nov. 1, 2015, confectionery kept in lockstep with the total store growth of 3.2%, with a dollar sales growth of 3% for combined chocolate and non-chocolate items. This trend of strong sales and tempered growth is expected to continue for the coming years.
Chocolate is one of the most popular and widely consumed products in the world, with North American countries devouring the lion's share, followed by Europe. Chocolate sales in the United States account for the majority of sales in the industry—more than 60%—with $21.1 billion inPage 8 | Top of Articlechocolate sales generated in 2014; this number increased 2.9% from the previous year. During this time, premium chocolate sales grew by 11%. Dark chocolate sales increased 8% in 2014, but milk chocolate remains the largest chocolate segment in the United States. Premium and dark chocolate are the strongest segments of the market in the United States in terms of growth, though not market share. This growth over the last decade has been driven in large .
Candy StoreThe Sweet Tooth765 Main St.Mount Pleasant, MI 488.docx
1. Candy Store
The Sweet Tooth
765 Main St.
Mount Pleasant, MI 48858
Zuzu Enterprises
Candy is a special treat that plays an important role in cultural
traditions, seasonal celebrations and family occasions here in
the U.S. and around the world. Candy is also associated with
childhood, a simpler time filled with fun and happiness. But, it
can be hard to find old fashioned bulk candy storesthat carry all
your favorite childhood memories; we serve this niche and offer
the best candy supply along with gourmet popcorn, nuts, and
Ashby's Ice Cream. The Sweet Tooth will sell candy for all
occasions and offer specialty packaging, gifts, and combinations
to suit any need and desire.
EXECUTIVE SUMMARY
Candy is a special treat that plays an important role in cultural
traditions, seasonal celebrations and family occasions here in
the U.S. and around the world. Candy is also associated with
childhood, a simpler time filled with fun and happiness. But, it
can be hard to find old fashioned bulk candy stores that carry
all your favorite childhood memories; we serve this niche and
offer the best candy supply along with gourmet popcorn, nuts,
and Ashby's Ice Cream. We sell candy for all occasions and
offer specialty packaging, gifts, and combinations to suit any
need and desire.
The Sweet Tooth is a family-owned business, owned and
operated by the Bernard family. We proudly serve the wonderful
community of Mount Pleasant, Michigan and are thankful for
great families and customers that support small businesses.
INDUSTRY ANALYSIS
The confectionery industry has fared well in recent years, both
during the height of the recession and its aftermath. In 2014, the
U.S. Retail Confectionery Industry is generated $34.5 billion in
2. retail sales. Among more than 300 product categories across the
store, confectionery is growing faster than 184 other categories,
with 92 of those showing declines, according to the National
Confectioners Association (NCA). Over the 52 weeks through
Nov. 1, 2015, confectionery kept in lockstep with the total store
growth of 3.2%, with a dollar sales growth of 3% for combined
chocolate and non-chocolate items. This trend of strong sales
and tempered growth is expected to continue for the coming
years.
Chocolate is one of the most popular and widely consumed
products in the world, with North American countries devouring
the lion's share, followed by Europe. Chocolate sales in the
United States account for the majority of sales in the industry—
more than 60%—with $21.1 billion inPage 8 | Top of
Articlechocolate sales generated in 2014; this number increased
2.9% from the previous year. During this time, premium
chocolate sales grew by 11%. Dark chocolate sales increased
8% in 2014, but milk chocolate remains the largest chocolate
segment in the United States. Premium and dark chocolate are
the strongest segments of the market in the United States in
terms of growth, though not market share. This growth over the
last decade has been driven in large part by an increasing
awareness of the health benefits of these types of chocolate.
Non-chocolate candy sales also increased at a rate of 2.1%, with
sales reaching $10.4 billion. Top performers in non-chocolate
candy segment in 2014 include:
· Fruity candy
· Sour candy
· Gummies
· Bites/minis
· Taffy
Gum was also a significant seller during this time, with gum
sales generating $3.1 billion in U.S. retail sales in 2014; 84% of
all gum sales are sugarless.
Seasonal candy is candy that has unique seasonal packaging,
shapes, colors or flavors for religious, cultural and perhaps
3. especially the “Hallmark” holidays. It accounts for more than
$7.2 billion each year, or about 21 percent of annual sales.
Confectionery is a seasonal powerhouse for U.S. retailers,
growing nearly 8.5 percent during the Valentine's Day, Easter,
Halloween and Winter Holiday seasons in 2014 over 2013.
Some of the sales trends that drove the market growth in 2015
were:
1. Chewy candy. For several years, chewy candy has led the
growth in non-chocolate with high single-digit and even double-
digit growth. These gains are driven by significant levels of
product innovation in terms of new and bold flavors
(particularly in sour), fun shapes and packaging. Chewy candy
is not only a growth leader, but also the largest sub-segment
within non-chocolate.
2. Mints. In the past year, mints have seen consistent dollar
growth around 4% to 5%, perhaps directly tied to the nation's
intrigue with spicy and flavorful foods.
3. Gourmet/premium chocolate. The premium segment has been
on fire with double-digit growth for several years now, and 11%
for the most recent 12 months. This includes higher-end
chocolate with organic claims, chocolate with very
high cocoa percentages, and also products from countries such
as Germany or Belgium. We also see a rise in the share of
premium that focuses on GMO-free, fair trade, etc.—even
though this very much remains a niche segment to date.
4. Fun and daring flavor combinations. Tied to the premium
trend is a sub-trend of creating and infusing fun and daring
flavor combinations—particularly enjoyed by millennials. These
are things like hot red peppers, bacon, lavender and ginger that
give a new twist to an old favorite.
5. The infusion of nuts/dried fruits. According to the NCA
survey among 1,400 shoppers, 41% purchase chocolate with
fruits and nuts when looking for better-for-you alternatives.
Actual dollar sales back up these claims with chocolate infused
with hazelnuts up 9%, almonds up 4 percent and dried fruits (a
much smaller segment) up 56%.
4. 6. Minis featured in re-sealable packaging. Resealable packages
have been tremendously popular with a CAGR (compound
annual growth rate) of more than 10% across the globe. They
allow people to enjoy a little treat and easily share with others.
They also address the on-the-go convenience that is a rising
requirement among shoppers. The retail value sales of shareable
bags/boxes grew by more than $1.0 billion over 2009 to 2014,
and is expected to continue to grow at a similar rate over 2014-
2019.Page 9 | Top of Article
7. Dark chocolate. According to the NCA survey, 70% of
shoppers will at least occasionally switch to dark chocolate as
an alternative to milk chocolate. Actual sales figures saw dark
chocolate sales grow by more than 9%. But even within dark
chocolate, the market is slowly shifting from dark to darker:
57% of shoppers said they will shift up to a higher cocoa
percentage when looking for healthier-for-you alternatives.
No matter the type of candy, one thing remains clear—unique
products and consumption experiences are keeping consumers
coming back for more.
Sales Outlets
The largest channel for confectionery is grocery at 22 percent of
total confectionery sales, followed by mass merchandise outlets,
convenience stores, club stores, drug stores, confectionery
stores, and value/dollar stores. The specific breakdown
includes:
Grocery stores, 22%
Mass merchandise outlets, 21%
Convenience stores, 16%
Club stores, 13%
Drug stores, 9%
Confectionary stores, 5%
Value/dollar stores, 4%
However, online sales are growing, especially with seasonal,
specialty, or hard-to-find candies. 30 percent of shoppers have
purchased candy online, up from 24 percent in 2014 and 21
percent in 2013. Online purchases are made from the following
5. outlets:
· 44 percent from an online candy store
· 29 percent from an online retailer that also sells candy
· 10 percent from a grocery store with an online presence
· 16 percent from some other online outlet
· The primary reason for online purchases is simple: consumers
are going after what they want that they don't find on local store
shelves.
Economic Impact
The confectionery industry directly employs 55,000 people in
the United States, and more than 400,000 jobs in agriculture,
retail, transportation and other industries rely in part on the sale
of confections for their livelihood. For every job that is created
in confectionery, another seven are supported in related
industries, which means that candy drives a multiplier effect of
1:7, or an impact of 700 percent. The confectionery industry has
a direct economic impact of $35 billion on the U.S. economy.
MARKET ANALYSIS
Target Market
Demographics
Mount Pleasant is the county seat of Isabella County which also
includes the communities of Shepherd, Rosebush, Blanchard,
Winn, and Lake Isabella. It was established in 1831. The
population of Isabella County is roughly 68,000 with Mt.
Pleasant, the biggest city, having a population of more than
26,000.
Page 10 | Top of Article
Top employers in the area include Central Michigan University,
Soaring Eagle Casino and Resort, McClaren Central Michigan,
Bandit Industries, Morbark, and Delfield.
Demographics of the population include:
· Population: 26,060
· Median age: 21.8 years
· Mean travel time to work: 13.5 minutes
· Population density: 3,371
· The population density in Mount Pleasant is 3242% higher
6. than the Michigan average
· The median age in Mount Pleasant is 45% lower than the
Michigan average
· 57% of the population earns more than $25,000/year, which is
high when the number of students in the area are factored into
the figure
City Amenities
The city of Mt. Pleasant features a safe, relaxing environment
that offers a small-town feel with all the activities and
attractions of a city twice its size. From dining and golf, to
canoeing to skydiving, Mt. Pleasant has something to offer for
everyone. Area amenities include:
· 15 area parks
· Historic downtown shops and dining
· Central Michigan University
· Five golf courses in Mount Pleasant and dozens more within a
short drive
· The Soaring Eagle Casino and Resort, with fine dining and
top-rate concerts
· The Ziibiwing Center of Anishinabe Culture and Lifeways
· Canoeing, kayaking and tubing on the 80-mile-long Chippewa
River
· The Michigan Vietnam Memorial
· A skate park and splash park
· Central Michigan Skydivers
· Many local festivals, including the Maple Syrup Festival, the
Craft Beer Festival, Applefest, and the Summer Concert series.
Analysis
What this means is that there is a large population in a
relatively small area, making a large potential market for the
products offered by Sweet Tooth. During the academic school
year, approximately 20,000 students live on campus; during the
summer months, this number may be smaller, but this is when
the tourist season picks up. The facilities at Central Michigan
University host many different conferences and meetings,
bringing many into the area. Still others visit the city to partake
7. of the many golf courses, parks, and water sports on the
Chippewa River. Mount Pleasant is the perfect place to sell the
sweets and treats offered by The Sweet Tooth.
Competition
Mount Pleasant is rife with restaurants, bars, bakeries, and
cafes, but there are no direct competitors in the confectionary
business. While other retailers such as supermarkets and
convenience stores offer candy for sale, no retailer offers the
exact extent and breadth that The Sweet Tooth provides. We
will become a destination for unrivaled, tasty treats that can't be
found elsewhere.
Page 11 | Top of Article
PERSONNEL
The Sweet Tooth is owned and operated by the Bernard family,
including Rosa and Herman Bernard. Their children, Henry and
Isabelle, will work at the store some evenings and weekends.
Additional staff will be hired to work the store, especially when
the Bernards are working the farmer's market or local festivals.
Rosa Bernard has 26 years’ experience in the service industry,
including such roles as cashier, merchandiser, and manager. Her
duties over the years included sales, creating displays, training,
scheduling, and ordering. Her vast experience will prove
invaluable to the venture.
Herman Bernard is an experienced Accountant with his own
company. He is curtailing his involvement in that endeavor,
leaving the day-to-day business to his well-trained staff. He will
continue to own the company, but will serve only in a limited
capacity as advisor so that he may devote his time and attention
to the new retail business. His experience in accounting and
owning his own business is essential to the success of The
Sweet Tooth.
PRODUCTS
The Sweet Tooth will offer a complete line of candy, gourmet
popcorn, nuts, and ice cream.
Candy
Candy sold at The Sweet Tooth includes chocolate, novelty
8. candy, nostalgic candy, unwrapped (bulk) candy, and wrapped
candy. Some specific examples of these include:
· Taffy
· Rock candy
· Blow Pops
· Caramel apple suckers
· Tootsie Pops
· Dum Dums
· Slapsticks
· Gumballs
· Runts
· Jolly Ranchers—various flavors
· Pixy Stix
· Laffy Taffy—various flavors
· Jordan almonds—various colors
· Chocolate Ice Cubes
· Brachs—full line
· Jelly Belly—various flavors
· Bit-O-Honey
· Chick-O-Stick
· Gummy—bears, worms, sours, sharks, etc.Page 12 | Top of
Article
· Sour Patch
· Smarties
· Swedish Fish
· Hershey's Kisses—various colors
· M&M's—various colors
· Candy necklaces and rings
· Ring Pops
· Pop bottles
· Licorice
· Candy cigarettes
· Wax lips
Gourmet Popcorn
Gourmet popcorn is produced from corn grown locally as well
as other natural ingredients, including creamy butter, fresh
9. brown sugar, premium nuts, and crunchy pretzels. It is made by
a Michigan company, the Grand Rapids Popcorn Company,
which has been in operation since 1944.
Popcorn will be prepacked and offered in the following sizes:
Small ($3)
Medium ($6)
Large ($15)
Giant ($25)
The gourmet popcorn flavors for sale at The Sweet Tooth
include:
Apple pie
Bacon
Bacon cheese
Birthday cake
Blueberry
Bubblegum
Butter
Butter toffee
Butterscotch
Caramel
Caramel crunch—caramel and nuts
Caramel latte
Cheddar cheese
Cherry
Chili
Cinnamon
Page 13 | Top of Article
Dill
Grape
Green apple
Hot chocolate
Jellybean
Kettle
Midwest mix—caramel and cheddar
Monster Munch
Peach
10. Pepper
Pina colada
Pineapple
Rainbow
Raspberry
Root beer
Salt & vinegar
Sea salt caramel
S'mores
Spicy barbeque
Strawberry
Vanilla
Vanilla crunch—vanilla and nuts
White cheddar
White cheddar jalapeno
White chocolate crunch—pretzels and white chocolate
Ice Cream
The Sweet Tooth will exclusively feature Ashby's Sterling Ice
Cream. Ashby's has been making award-winning ice cream since
1984 for all foodservice outlets: restaurants, ice cream parlors,
food courts, college dining, caterers, and others. Ashby's
Sterling Ice Cream has won numerous awards for its quality,
with a perfect score for Vanilla; and in years past “Best New
Flavor” awards from the National Ice Cream Retailers
Association (NICRA), other awards came from the World Dairy
Expo, and the LA County Fair.
Ashby's has over 75 flavors to choose from. To begin, The
Sweet Tooth will limit selection to twelve flavors, including:
1. Butter pecan
2. Cookie dough
3. Majestic Milky Way
4. Moose TracksPage 14 | Top of Article
5. Chocolate peanut butter cup
6. Raspberry chip cheesecake
7. Eskimo Kisses
8. Superman
11. 9. Michigan Pot Hole
10. Strawberry
11. Vanilla
12. Scouts Honor mint cookie
Adjustments may be made depending on customer preferences.
If ice cream proves to be popular, a second cabinet may be
procured so that we could expand our offerings to include 24
flavors.
As a retailer exclusively offering Ashby's, we will receive
promotion ideas, dipping tips, training information, posters,
outdoor signs, flavor stickers, nutritional information, and other
promotional items. Cone holders, display units, menu boards,
and window decals will also be purchased for use in The Sweet
Tooth.
Other Products
A small selection of gourmet nuts will also be sold at The Sweet
Tooth, including roasted and candied almonds and pecans.
Candied varieties consist of butter toffee, cinnamon, and honey
toasted.
Gift tins are also available and can be comprised of any
customer preference, including popcorn, nuts, and/or candy.
Available tin sizes include:
· 6.5 gallon
· 3.5 gallon
· 2 gallon
· 2 quart
Pricing per tin will be based on the specific contents.
Party packs with custom colors—red, blue, yellow, purple,
green, brown, black, pink, white, and orange—can be made to
coordinate with any party or function, from graduation parties
to corporate gifts. Similarly, a candy/popcorn party buffet based
on color or other characteristics can be designed for any event.
School fundraising opportunities are also available, allowing
students to presell products to earn additional funds for the
school and small incentive prizes for themselves.
OPERATIONS
12. Equipment
The Sweet Tooth will need to procure the following equipment:
Ice cream dipping cabinet—$5,600
Candy storage/display bins—$10,000
Popcorn display racks (4)—$600
Page 15 | Top of Article
Display tables—$1,500
Utensils, trays, scoops, tongs, etc.—$500
Bistro tables and chairs (2 tables and 8 chairs)—$2,000
Store décor—$750
Storage shelves—$500
Cleaning supplies (buckets, mops, broom, towels, cleaners,
etc.)—$300
Cash register—$250
Phone—$100
Computer—$2,500
Printer/copier/fax—$750
Total—$25,350
The ice cream dipping cabinet chosen for the site is the True
TDC-67 67” Straight Glass Ice Cream Dipping Cabinet. It:
· Holds (12) 3-gallon ice cream cans in display area
· Holds (8) 3-gallon ice cream cans in storage
· Maintains temperatures between -10 and 8 degrees Fahrenheit
· Molded plastic skirt holds cans
· Magnetic shields prevent ice and frost build-up
· Cold wall refrigeration system with 3/4 hp compressor
· Glass sneeze guard protects food from airborne contaminants
The display tables, candy storage/display units, and popcorn
display racks will coordinate and fit the available retail space.
Opening Inventory (Consumables)
In addition to the equipment and store fixtures, The Sweet
Tooth must invest in various consumables. These include:
· Candy
· Gourmet popcorn
· Ice cream
· Ice cream cones
13. · Bowls
· Candy bags and ties
· Plastic utensils
· Napkins
Location
The retail storefront is located in historic downtown Mount
Pleasant, at 765 Main Street. It consists of 650 square feet,
which primarily consists of retail space. A small back room
includes a bathroom, storage/cleaning area, and office.
Page 16 | Top of Article
In addition to retail sales from this location, The Sweet Tooth
will sell prepackaged merchandise at the local farmer's market
during the spring, summer, and fall months. Local festivals will
offer still more opportunities to sell pre-packaged candy,
popcorn, and nuts. Both venues will provide awareness for the
retail location and encourage repeat business.
Once business is established, The Sweet Tooth will expand to
include online sales.
Hours of Operation
The Sweet Tooth retail outlet will be open according to the
following schedule:
Monday—Friday, 11am to 7pm
Saturday, 10am to 8pm
Sunday, 10am to 5pm
Payment
Payment is accepted in the form of cash, check, and credit
cards. Credit cards are processed through mobile technology
that is easily portable, an essential feature for farmer's markets
and festivals.
Associations
The Sweet Tooth is proud to be a member of the Great Lakes
Ice Cream and Fast Food Association
( http://www.glicffa.com/ ) as well as the Michigan Retailers
Association ( https://www.retailers.com ) and the Specialty
Food Association ( http://www.specialtyfood.com ). The local
Mount Pleasant Area Chamber of Commerce ( http://www.mt-
14. pleasant.net/ ) is another organization to which we belong. All
associations offer education and services to help guide, support
and grow our business.
GROWTH STRATEGY
Once The Sweet Tooth is well established, expansion is planned
to include an online sales presence. Online candy sales is a
growing market, especially with seasonal, specialty, or hard-to-
find candies. 30 percent of shoppers have purchased candy
online, up from 24 percent in 2014 and 21 percent in 2013, with
44% of shoppers purchasing candy from an online candy store.
The Sweet Tooth plans to garner its share of this growing
business, and build upon our customer base to offer online
orders and shipping services. This will play well for customers
who first experience our wares as college students who move
away upon graduation, as well as for tourists who want to order
items that they purchased while on vacation.
MARKETING
The Sweet Tooth will establish a website as well as a presence
on all social media outlets, including Facebook, Instagram,
Twitter, and Snapchat. Online-only specials will be posted
periodically, and new items and promotions will be featured as
well as gift tins, party packs, candy buffets, and seasonal
displays.
Printed materials including direct marketing pieces will be
developed and utilized prior to the grand opening. Flyers will be
printed and posted around campus, and
announcements/advertisements will be included in local papers.
Along with building signage and marquees, The Sweet Tooth
will be a highly visible new enterprise.
Source Citation (MLA 8th Edition)
Enterprises, Zuzu. "Candy Store." Business Plans Handbook,
edited by Joseph Palmisano, vol. 38, Gale, 2017, pp. 7-16. Gale
Virtual Reference
Library, http://link.galegroup.com/apps/doc/CX3649200009/GV
RL?u=minn4020&sid=GVRL&xid=0efe7fae. Accessed 20 Oct.
2018.