An empanada business is a business that specializes in crafting and selling empanadas, a popular dish consisting of dough filled with various ingredients, typically meat, vegetables, cheese, or fruits.
Empanadas are often baked or fried and are enjoyed as a snack or meal in many Latin American and Spanish-speaking countries.
The business model can vary, from small-scale operations run by individuals or families to larger enterprises with multiple locations or distribution channels.
The Empanada business is a subset of the culinary and food services industry; and available data shows that the food service industry is the largest retail employment segment in the world.
In the United States, sales of food and beverages are over $700 billion and over $1.2 trillion when combined with retail food supermarkets.
Steps on How to Write an Empanada Business Plan
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Executive Summary
Chloe Edgar® Empanada Café, Inc. is a dynamic culinary venture set to revolutionize San Francisco’s food scene with its innovative approach to traditional empanadas.
Situated in the heart of San Francisco, the café aims to offer a diverse menu of empanadas, blending classic flavors with inventive twists, catering to a wide range of palates.
At Chloe Edgar®, we prioritize quality ingredients sourced locally whenever possible, ensuring freshness and authenticity in every bite.
Our menu features a variety of empanadas, including traditional favorites like beef and chicken, as well as vegetarian and vegan options to accommodate dietary restrictions and preferences.
Beyond empanadas, our café offers a selection of sides, beverages, and desserts, creating a comprehensive dining experience for our customers.
With a focus on exceptional customer service and a welcoming atmosphere, Chloe Edgar® Empanada Café, Inc. strives to become a beloved culinary destination in San Francisco.
Through strategic marketing efforts and community engagement initiatives, we aim to establish strong brand recognition and build a loyal customer base.
By staying true to our commitment to quality, innovation, and inclusivity, we envision Chloe Edgar® Empanada Café, Inc. as not just a restaurant but a cultural hub where food lovers can gather, indulge, and explore the vibrant world of empanadas.
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Company Profile
a. Our Products and Services
Chloe Edgar® Empanada Café, Inc. offers a diverse menu of empanadas, blending traditional Latin American flavors with innovative twists.
Our selection includes classic options like beef and chicken, as well as vegetarian and vegan choices, catering to various dietary preferences.
We prioritize quality, sourcing fresh, local ingredients whenever possible. Beyond empanadas, our café provides a range of sides, beverages, and desserts to complement the dining experience.
With a focus on exceptional customer service and a welcoming atmosphere, we strive to create a culinary destination where patrons can explore and savor the rich tapestry of empanada flavors.
b. Nature of the Business
Our empanada café will operate with a business-to-consumer business model.
c. The Industry
Chloe Edgar® Empanada Café, Inc. will operate in the culinary cum food services industry.
d. Mission Statement
At Chloe Edgar® Empanada Café, Inc., our mission is to celebrate the rich cultural heritage of Latin American cuisine by offering a diverse selection of empanadas that blend traditional flavors with innovative twists.
We are committed to sourcing high-quality, locally sourced ingredients to ensure freshness and authenticity in every bite. Through exceptional customer service and a welcoming atmosphere, we aim to provide a unique culinary experience that delights our patrons and fosters a sense of community.
e. Vision Statement
Our vision at Chloe Edgar® Empanada Café, Inc. is to become a beloved culinary destination in San Francisco, renowned for our inventive approach to empanadas and commitment to quality and inclusivity.
We aspire to create a vibrant and welcoming space where food lovers from all walks of life can gather to indulge in flavorful empanadas and explore the diverse culinary traditions of Latin America.
f. Our Tagline (Slogan)
“Savor Tradition, Taste Innovation at Chloe Edgar® Empanada Café, Inc.”
g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)
Chloe Edgar® Empanada Café, Inc. will be formed as a Limited Liability Company (LLC).
h. Our Organizational Structure
- Chief Chef (Owner)
- Restaurant Manager
- Human Resources and Amin Manager
- Accountants (Cashiers)
- Chef (Cooks)
- Kitchen Assistants
- Waiters and Waitress
- Cleaners
i. Ownership/Shareholder Structure and Board Members
- Chloe Edgar (Owner and Chairman/Chief Executive Officer) 52 Percent Shares
- Ruth Brown (Board Member) 18 Percent Shares
- Monica Richards (Board Member) 10 Percent Shares
- James Daniels (Board Member) 10 Percent Shares
- Lisa Greene (Board Member and Secretary) 10 Percent Shares.
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SWOT Analysis
a. Strength
- Offering a diverse range of empanadas with innovative twists sets Chloe Edgar® Empanada Café apart from traditional eateries, appealing to a broad audience seeking culinary exploration.
- Sourcing locally and prioritizing freshness ensures superior taste and authenticity, enhancing customer satisfaction and loyalty.
- Situated in the heart of San Francisco, the café benefits from high foot traffic, increasing visibility, and attracting a diverse customer base.
- Chloe Edgar®’s commitment to celebrating Latin American culinary heritage creates a distinctive brand image, fostering customer trust and loyalty.
- Providing exceptional service in a welcoming atmosphere enhances the overall dining experience, encouraging repeat business and positive word-of-mouth referrals.
b. Weakness
- While empanadas are the café’s specialty, a lack of extensive menu options may limit the appeal to customers seeking varied dining experiences.
- Reliance on locally sourced ingredients may lead to seasonal limitations, potentially affecting menu consistency and availability.
- San Francisco boasts a vibrant culinary scene with numerous dining options, posing a challenge for Chloe Edgar® Empanada Café to stand out and attract a steady flow of customers.
- Despite strong local branding efforts, Chloe Edgar® Empanada Café may face challenges in achieving widespread recognition and competing with established eateries in the region.
- The café’s success relies heavily on efficient supply chain management and staffing, with any disruptions potentially impacting product quality and customer service.
c. Opportunities
- Exploring catering services, food delivery partnerships, or franchising opportunities can expand Chloe Edgar® Empanada Café’s reach beyond its physical location, tapping into new markets and revenue streams.
- Introducing new empanada flavors, sides, and beverages can cater to evolving consumer preferences and attract a broader customer base, enhancing competitiveness and customer satisfaction.
- Engaging with local communities through events, partnerships, and social responsibility initiatives can strengthen brand loyalty, foster customer relationships, and generate positive publicity.
- Investing in digital marketing, social media engagement, and online ordering platforms can increase visibility, attract tech-savvy customers, and streamline the ordering process.
- Partnering with local businesses, cultural organizations, or chefs can create unique collaborations, special events, or limited-time offerings, driving excitement and drawing in new customers.
i. How Big is the Industry?
The specialty food industry, which encompasses products like empanadas, and other fine foods, has been expanding steadily. According to the Specialty Food Association’s State of the Specialty Food Industry report in 2020, the specialty food industry in the United States reached approximately $158.4 billion in sales in 2019.
While this figure encompasses various specialty food categories, empanada products play a significant role in the overall market.
ii. Is the Industry Growing or Declining?
The empanada industry is experiencing growth, driven by increasing consumer interest in artisanal, high-quality food experiences.
Demand for empanadas has risen as they become popular choices for gatherings, events, and casual dining. The trend of supporting local and sustainable food practices has further fueled the industry’s expansion.
While challenges such as competition and economic fluctuations exist, overall, the empanada industry is on an upward trajectory.
iii. Future Trends in the Industry
Future trends in the empanada industry point toward increased demand for diverse and innovative flavors, catering to evolving consumer preferences for unique culinary experiences.
Embracing health-conscious options, such as gluten-free or plant-based empanadas, aligns with the growing interest in healthier eating habits.
Furthermore, technological advancements may drive the adoption of online ordering platforms and delivery services, providing convenience and accessibility to a wider customer base.
Embracing sustainability practices, such as sourcing locally and reducing food waste, also aligns with the industry’s future trajectory towards eco-conscious dining options.
iv. Are There Existing Niches in the Industry?
No, there are no existing niche ideas when it comes to the empanada café line business because the business is a niche restaurant business and a subset of the restaurant industry.
v. Can You Sell a Franchise of Your Business in the Future?
Chloe Edgar® Empanada Café, Inc. has plans to sell franchises soon and we will target major cities with thriving niche restaurant markets in the United States of America.
d. Threats
- Fluctuations in the economy, consumer spending habits, and inflation rates can impact discretionary spending on dining out, potentially affecting Chloe Edgar® Empanada Café’s revenue and profitability.
- Adherence to food safety regulations, health codes, and licensing requirements presents ongoing operational challenges and potential legal risks for the café.
- Dependencies on local suppliers and seasonal ingredients expose Chloe Edgar® Empanada Café to risks of supply chain disruptions due to factors like weather events, transportation issues, or supplier shortages.
- Intense competition from established eateries, food trucks, and emerging culinary trends in San Francisco poses a threat to Chloe Edgar® Empanada Café’s market share and profitability.
- Shifts in dietary trends, health consciousness, or cultural preferences may impact demand for traditional empanadas or the café’s menu offerings, requiring agile adaptation to evolving consumer tastes.
i. Who are the Major Competitors?
- Boca Empanadas
- Patty’s Empanadas
- 787 Coffee
- Empanada Dada
- Que Chevere Empanadas
- Empanada Kitchen
- Bon Empanadas
- Empanada Queen
- Luna Empanadas
- Empanada City
- Empanada Mama
- Nuchas Empanadas
- La Sonrisa Foods
- Empanada Guy
- Bolado Clothiers & Empanadas
- 5411 Empanadas
- Gaucho Empanadas
- Empanada Loca
- Chifles & Empanadas
- Del Sur Empanadas.
ii. Is There a Franchise for the Empanada Café Business?
No, there are no franchise opportunities for the empanada business.
iii. Are There Policies, Regulations, or Zoning Laws Affecting the Empanada Business?
In the United States, county and state regulations, as well as zoning laws, can significantly impact empanada businesses. Food establishments are subject to health and safety regulations set by local health departments or state agencies.
These regulations typically cover food handling, storage, preparation, and sanitation standards to ensure public health and safety.
Additionally, businesses may need to obtain permits or licenses to operate legally, which can vary depending on the jurisdiction.
Zoning laws also play a crucial role in determining where empanada businesses can operate. Zoning ordinances designate specific areas for different types of land use, such as residential, commercial, or industrial. Businesses must comply with zoning regulations to ensure they are located in permitted areas.
Furthermore, empanada businesses may encounter additional regulations related to food safety inspections, food labeling, and employee health requirements. Compliance with these regulations is essential to avoid fines, penalties, or even closure of the business.
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Marketing Plan
a. Who is your Target Audience?
i. Age Range: Primarily young adults and professionals aged 18 to 45, seeking flavorful and convenient dining options.
ii. Level of Education: While diverse, the target audience likely includes individuals with at least a high school education, with many having college or higher degrees.
iii. Income Level: Middle to upper-middle-income earners, capable of spending on dining out as a regular indulgence.
iv. Ethnicity: While our cuisine celebrates Latin American flavors, our target audience is ethnically diverse, including individuals from various cultural backgrounds interested in exploring international cuisines.
v. Language: English-speaking primarily, with multilingual staff accommodating diverse language needs.
vi. Geographical Location: Residents and visitors of San Francisco, particularly those in neighborhoods with vibrant culinary scenes and high foot traffic.
vii. Lifestyle: Our target audience includes busy professionals, students, tourists, and food enthusiasts seeking delicious and convenient dining options. They value quality, flavor, and cultural authenticity in their dining experiences.
b. Advertising and Promotion Strategies
- Deliberately Brand All Our Vans and Trucks.
- Tap Into Text Marketing.
- Make Use of Bill Boards.
- Share Your Events in Local Groups and Pages.
- Turn Your Social Media Channels into a Resource
- Develop Your Business Directory Profiles
- Build Relationships with players in the culinary cum food services industry.
i. Traditional Marketing Strategies
- Marketing through Direct Mail.
- Print Media Marketing – Newspapers & Magazines.
- Broadcast Marketing -Television & Radio Channels.
- OOH Marketing – Public Transit like Buses and Trains, Billboards, Street shows, and Cabs.
- Leverage direct sales, direct mail (postcards, brochures, letters, fliers), tradeshows, print advertising (magazines, newspapers, coupon books, billboards), referral (also known as word-of-mouth marketing), radio, and television.
ii. Digital Marketing Strategies
- Social Media Marketing Platforms.
- Influencer Marketing.
- Email Marketing.
- Content Marketing.
- Search Engine Optimization (SEO) Marketing.
- Affiliate Marketing
- Mobile Marketing.
iii. Social Media Marketing Plan
- Start using chatbots.
- Create a personalized experience for our customers.
- Create an efficient content marketing strategy.
- Create a community for our target market and potential target market.
- Gear up our profiles with a diverse content strategy.
- Use brand advocates.
- Create profiles on the relevant social media channels.
- Run cross-channel campaigns.
c. Pricing Strategy
Chloe Edgar® Empanada Café, Inc. will adopt the following pricing strategies:
- Cost-Plus Pricing
- Value-Based Pricing
- Competitive Pricing
- Dynamic Pricing
- Bundle Pricing
Please note that our pricing strategy is based on a careful analysis of the costs and profitability of the business, as well as the needs and preferences of the target customer base.
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Sales and Distribution Plan
a. Sales Channels
Chloe Edgar® Empanada Café, Inc. utilizes multiple sales channels to reach its customers. The primary channel is our physical café location in San Francisco, strategically situated to attract foot traffic and serve as a culinary destination.
We will also offer online ordering through our website and third-party delivery platforms, providing convenience for customers who prefer takeaway or delivery options.
Catering services are also available for events, parties, and corporate functions, expanding our reach beyond the café’s physical confines.
These diverse sales channels ensure accessibility and flexibility, catering to the varied preferences and lifestyles of our customer base.
b. Inventory Strategy
Chloe Edgar® Empanada Café, Inc. employs a dynamic inventory strategy to maintain freshness and meet customer demand. We prioritize sourcing locally whenever possible to ensure the availability of high-quality and seasonal ingredients.
Our inventory management system tracks sales data and forecasts demand patterns, allowing for efficient stock replenishment and waste reduction. We will also maintain a diverse selection of ingredients to accommodate menu variations and special dietary preferences.
Regular inventory audits and supplier evaluations ensure consistency in product quality and availability. By optimizing inventory levels and minimizing waste, we strive to enhance customer satisfaction and operational efficiency.
c. Payment Options for Customers
- Credit card
- Debit card
- Cash
- Mobile payment (e.g., Apple Pay, Google Pay)
- Contactless payment
- Gift cards
- Online payment (e.g., PayPal, Venmo).
d. Return Policy, Incentives and Guarantees
At Chloe Edgar® Empanada Café, Inc., we prioritize customer satisfaction with our comprehensive return policy, incentives, and guarantees.
Return Policy:
We offer a hassle-free return policy for any unsatisfactory purchases. Customers can return unused items within a specified timeframe for a full refund, exchange, or store credit, provided they present a valid receipt.
Incentives:
To express gratitude to our loyal customers, we offer various incentives such as loyalty programs, discounts for repeat purchases, and referral bonuses. These incentives encourage customer engagement and foster long-term relationships with our brand.
Guarantees:
We stand behind the quality of our products and services with solid guarantees. If customers are not fully satisfied with their dining experience or encounter any issues with their order, we guarantee prompt resolution and strive to exceed their expectations with exceptional customer service.
By implementing these policies, incentives, and guarantees, Chloe Edgar® Empanada Café, Inc. aims to ensure a positive and rewarding experience for every customer, fostering loyalty and trust in our brand.
e. Customer Support Strategy
Chloe Edgar® Empanada Café, Inc.’s comprehensive customer support strategy is put in place so that we can provide exceptional service and ensure customer satisfaction.
We will establish clear communication channels, such as phone lines, email, and social media platforms, to facilitate quick and responsive interactions with customers.
Aim to respond to customer inquiries, feedback, and complaints on time, demonstrating attentiveness and a commitment to addressing their needs.
We will implement a customer relationship management system to track customer interactions, preferences, and history. This allows staff members to provide personalized service, anticipate customer needs, and tailor experiences based on individual preferences.
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Operational Plan
Chloe Edgar® Empanada Café, Inc. executes a meticulous operational plan to ensure smooth day-to-day operations and exceptional customer experiences.
This plan encompasses various aspects, including staffing, supply chain management, and quality control. We maintain a well-trained and motivated team of kitchen staff and front-of-house personnel to deliver prompt and friendly service.
Our supply chain is carefully managed to guarantee the availability of fresh, locally sourced ingredients and minimize waste. Quality control measures are implemented at every stage of food preparation to uphold our commitment to excellence.
a. What Happens During a Typical Day at an Empanada Café Business?
- The business is open for the day’s work
- The restaurant serving area and kitchen are cleaned and ready for the day’s business
- Food ingredients are purchased, washed, and ready for use or cooked
- Customer’s orders are taken and they are served or their orders are delivered to them
- Cashier collects cash and reconciles accounts for the day
- Administrative duties are carried out
- The store or warehouse is restocked when required.
- The business is closed for the day.
b. Production Process
Empanadas are prepared by first making the dough, typically a mixture of flour, water, salt, and sometimes fat, kneaded into a smooth consistency. This dough is then rolled out and cut into circles or squares, depending on the desired shape and size of the empanada.
Next, a savory filling is prepared, which can vary widely but often includes meats, vegetables, cheeses, and spices. The filling is placed in the center of the dough, and the edges are folded over and sealed, creating a pocket or half-moon shape.
Finally, the empanadas are baked or fried until golden brown and crispy, resulting in a delicious handheld treat enjoyed worldwide.
c. Service Procedure
At Chloe Edgar® Empanada Café, Inc., our service procedure is designed to provide a seamless and enjoyable dining experience for our customers.
Upon arrival, guests are warmly greeted by our attentive staff and guided to their seats. Our menu, featuring a diverse selection of empanadas and accompaniments, is presented with detailed descriptions to assist in decision-making.
- Orders are taken promptly, and customers can choose from dine-in, takeaway, or delivery options.
- While waiting for their food, patrons are offered beverages and complimentary amenities to enhance their experience.
- Once orders are prepared, they are served with care and attention to detail, ensuring satisfaction and delight with every bite.
d. The Supply Chain
Chloe Edgar® Empanada Café, Inc. maintains a robust and efficient supply chain to ensure the availability of high-quality ingredients for our empanadas.
We prioritize sourcing locally whenever possible, establishing partnerships with trusted suppliers to procure fresh produce, meats, spices, and other essential ingredients.
Regular communication and collaboration with our suppliers enable us to maintain consistency in product quality and availability.
Our supply chain management includes meticulous inventory tracking and forecasting to prevent stockouts and minimize waste.
By optimizing our supply chain, we uphold our commitment to freshness and excellence, ensuring that every empanada served reflects our dedication to quality and customer satisfaction.
e. Sources of Income
At Chloe Edgar® Empanada Café, Inc., our primary sources of income stem from multiple revenue streams. The foremost source is direct sales from our café, where customers dine in and purchase empanadas, sides, beverages, and desserts.
We will also generate income through online orders via our website and third-party delivery platforms, catering services for events and parties, and merchandise sales such as branded apparel and accessories.
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Financial Plan
a. Amount Needed to Start Your Empanada Business?
Chloe Edgar® Empanada Café, Inc. would need an estimate of $350,000 to successfully set up our empanada café in the United States of America. Please note that this amount includes the salaries of all our staff for the first month of operation.
b. What are the Costs Involved?
- Business Registration Fees – $750.
- Legal expenses for obtaining licenses and permits – $2,300.
- Marketing, Branding, and Promotions – $2,000.
- Business Consultant Fee – $3,500.
- Insurance – $3,400.
- Rent/Lease – $125,000.
- Other start-up expenses including, commercial satellite TV subscriptions, stationery ($500), and phone and utility deposits ($1,800).
- Operational Cost (salaries of employees, payments of bills et al) – $60,000
- Start-up Inventory – $25,000
- Store Equipment (cash register, security, ventilation, signage) – $2,750
- Furnishing and Equipping the Restaurant and Kitchen – $100,000
- Website: $600
- Opening party: $3,000
- Miscellaneous: $2,000
c. Do You Need to Build a Facility? If YES, How Much will it cost?
Chloe Edgar® Empanada Café, Inc. will not build a new facility for our empanada café; we intend to start with a long-term lease and after 5 years, we will start the process of owning (acquiring) our own facility.
d. Ongoing Expenses for Running an Empanada Business
- Rent or Lease Payments
- Utilities such as electricity, water, heating, and cooling.
- Cooking supplies such as dough, various fillings (meat, vegetables, cheese), spices and seasonings, cooking oil, baking trays, pastry brushes, sealing utensils, and packaging materials (boxes, wrappers).
- Equipment Maintenance and Repairs
- Employee Wages and Benefits
- Marketing and Advertising
- Insurance
- Licenses and permits such as food service permits and health department certifications.
- Miscellaneous Expenses such as accounting services, legal fees, point-of-sale systems, cleaning supplies, waste disposal services, and general maintenance costs.
e. Average Salary of Staff
- Chief Chef (Owner) – $65,000 Per Year
- Restaurant Manager – $40,000 Per Year
- Human Resources and Amin Manager $38,600 Per Year
- Accountants (Cashiers) $37,000 Per Year
- Chef (Cooks) – $40,600 Per Year
- Kitchen Assistants – $30,700 Per Year
- Waiters and Waitress – $30,000 Per Year
- Cleaners -$28,500 Per Year
f. How Do You Get Funding to Start an Empanada Business?
- Raising money from personal savings and sale of personal stocks and properties
- Raising money from investors and business partners
- Sell shares to interested investors
- Applying for a loan from your bank/banks
- Pitching your business idea and applying for business grants and seed funding from, the government, donor organizations, and angel investors
- Source for soft loans from your family members and friends.
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Financial Projection
a. How Much Should You Charge for your Product/Service?
The price of our product will be between $50 and $150.
b. Sales Forecast?
- First Fiscal Year (FY1): $450,000
- Second Fiscal Year (FY2): $550,000
- Third Fiscal Year (FY3): $800,000
c. Estimated Profit You Will Make a Year?
- First Fiscal Year (FY1) (Profit After Tax): 20%
- Second Fiscal Year (FY2) (Profit After Tax): 25%
- Third Fiscal Year (FY3) (Profit After Tax): 35%
d. Profit Margin of an Empanada Business
The ideal profit margin we hope to make at Chloe Edgar® Empanada Café, Inc. will be between 20 and 25 percent depending on the board’s size and material and the foods we are showcasing or serving.
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Growth Plan
a. How do you intend to grow and expand? By opening more retail outlets/offices or selling a franchise?
Chloe Edgar® Empanada Café, Inc. will grow our empanada café by first opening other restaurant outlets in key cities in the United States of America within the first five years of establishing the business and then will start selling franchises from the sixth year.
b. Where do you intend to expand to and why?
Chloe Edgar® Empanada Café, Inc. plans to expand to:
- San Francisco, California
- New York City, New York
- Honolulu, Hawaii
- San Jose, California
- Boston, Massachusetts
- Washington, D.C.
- Los Angeles, California
- Seattle, Washington
- Oakland, California
- San Diego, California.
The reason we intend to expand to these geographic locations is the fact that available statistics show that the cities listed above have the highest and thriving market for niche restaurants such as empanada café in the United States.
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Exit Plan
The founder of Chloe Edgar® Empanada Café, Inc. plans to exit the business via family succession. We have positioned structures and processes in place that will help us achieve our plan of successfully transferring the business from one family member to another and from one generation to another without difficulties.
The company has successfully developed a detailed transition plan to smoothly hand over responsibilities to the new successor.
This includes transferring ownership, training key personnel, and communicating with employees, customers, and suppliers about the change.