3. 2
Executive Summary
Yo2Go is London, Ontario’s first personalized yogurt parfait shop, specializing in products that
offer its consumers a healthy snack alternative. The business model compliments the “healthy
lifestyle” that has become increasingly popular in recent years. Yo2Go differentiates itself from
the competition by providing a healthy product that customers can customize to suit their specific
needs. The storefront will be located at the Hylands Centre at the intersection of Richmond Street
and Fanshawe Park Road. The expectation is to enter the already established frozen yogurt
market, and appeal to customers with a distinguishable health-oriented approach. The primary
long-term goal for Yo2Go is to open a second location in Talbot Village after the third fiscal
year. Additionally, franchising the business and releasing new product lines are also distinct
possibilities.
Yo2Go’s established target market includes males and females aged 35-54 that live and work in
the urban area surrounding the Yo2Go location. These individuals emphasize the importance of
quality and nutrition more so than any other age group, and Yo2Go has the optimal product to
meet these needs. Yo2Go offers the ideal product to meet consumers’ demand for healthy
alternatives, and will provide the business with the opportunity to serve a large portion of the
market in the foreseeable future. These current conditions paired with the growing health craze
presents Yo2Go with an excellent environment to commence operations.
Revenue will be entirely generated from in-store sales. Based on customer desires for optimal
nutritional value, sales will be primarily driven by the purchasing of lower and non-fat yogurt
options. A low weighted average variable cost of 35.27% is largely a consequence of all
ingredients being bought in bulk and this fact, in tandem with competitive pricing, will translate
to a steady and satisfactory stream of revenue.
Diverse marketing strategies will be employed to market Yo2Go’s product to its target audience
within the local community. This includes common promotional methods such as Facebook and
Canada Post mail-outs, but is further enhanced by a partnership with Rev3K’s personalized
fitness facility and a stamp card reward system. Each approach comes at a relatively minimal
cost and as a whole will only account for a 7% allocation of the total fixed cost cash budget.
Operations will largely drive the success of Yo2Go and the vast majority of these operations will
take place day-to-day in-store. The focus will be to efficiently accomplish all tasks related to
running the business while simultaneously maintaining a superior level of customer service.
Extensive training will be mandatory for all employees to ensure that the products and customers
interactive experience are meeting Yo2Go’s high quality standards. All managerial
responsibilities such as supervision and training of employees will be allocated to the owners.
Intensive training will take place prior to the first day of the business’ grand opening, in order to
ensure the staff is capable of operating Yo2Go competently.
Ultimately, financial projections have indicated the likelihood of success, and therefore Yo2Go
is a feasible venture. Expected net income after the third year of operations is estimated to range
between $67,769 and $118,226, leaving the owners of Yo2Go optimistic about the future of the
venture. Market permitting, retained earnings will be allocated towards meeting long-term goals
and the future expansion of the business.
4. 3
Venture Description
Yo2Go specializes in providing a variety of high quality yogurt, as a healthy alternative to other
snacks. The company aims to integrate sustenance into a delectable snack, giving customers the
best of both worlds. With the rising awareness of health, people are more conscious about their
consumption of foods. In addition to a variety of toppings, the wide range of yogurts gives
customers an amalgam of options to create the best-personalized healthy parfait. Customers are
able to mix any yogurt base with toppings as they please, thus encouraging consumer
involvement and interaction, creating a unique store experience.
Goal/Objectives
Yo2Go’s vision is to encourage healthy lifestyles by providing yogurt for everyone in a positive
and fun atmosphere. The company hopes to begin operations in April of 2016 before the
projected busy summer months. The owners’ aim is to increase their network base within the
food and health industry, while gaining entrepreneurial experience for future potential ventures.
With a long-term goal to expand operations to additional locations, Yo2Go’s owners aim is to
create a self-sustaining business, so their primary responsibility will be overseeing the operations
of the company as a whole in the future. The owners hope to earn a cumulative salary of $60,000
each year. In addition, the organization has a financial goal of making a $10,000 profit for the
first year. With this goal, the organization aims to increase profits by 30% each year and pay off
the bank loan as soon as possible. Achieving these objectives will demonstrate that Yo2Go is
able to generate a profit, and establish itself as a key figure in the competitive market. A
thorough quantitative and qualitative analysis has been executed to portray Yo2Go’s steps in
achieving the company’s goals.
5. 4
External Analysis
Political
Since Yo2Go is a self-service food store, the organization is subject to Canadian laws and
regulations. Yo2Go will incur licensing fees (Exhibit 14), since the business is opening a brand
new location. Registration of a business name costs $601
and is required by Service Ontario1; this
registration is valid for five years. Since Yo2Go will be providing food, it is also subject to food
inspections by the Canadian Food Inspection Agency2
at a cost of $895/year. Therefore, it is
essential that Yo2Go products are produced in a clean environment, and all employees are
following proper health regulations implemented by Health Canada, as outlined in the operations
manual (Exhibit 1). Due to a change in political government, small business taxes will reduce
from 11% to 9%3
thus reducing costs for the company. Furthermore, Trudeau’s pledge to cut the
middle class income tax rate from 22% to 20.5%3
will result in an increase of disposable income
for a large portion of Yo2Go’s target market.
Social/Economics
Market trends demonstrate a promising future for Yo2Go over the next 10 years. On average,
Canadian households spend $7,980 per year on food, which is roughly 13.6% of their total
expenditures4
. Of this food expenditure, 2.7% was spent on alternative food sources in 2012, but
increased to 3.3% in 2014. Therefore, as time progresses consumers are more willing to spend
more money towards a healthier option5
. 20.7% of Canadians would like to adopt a healthier
lifestyle6
. The trends are moving in an upward motion and align with the company’s vision
providing a great opportunity for Yo2Go to enter the market.
6. 5
Technological
Currently advanced food technology is not necessary for Yo2Go’s operations as the yogurt will
be simply refrigerated and served. Yogurt dispensing machines will not be utilized as Yo2Go
only has five yogurt types available. They are extremely expensive for the little convenience they
provide and are therefore unnecessary.
Industry Analysis
Yogurt is very popular in North America, with 58% of individuals consuming yogurt in 2014.7
This statistic has changed minimally over the past 4 years, with the most significant difference
being a 2% increase from 2013 to 2014.7
Based on these past statistics, yogurt is a staple food for
the majority of the population’s diet, and is not vulnerable to trending out of popularity. In
addition, yogurt stores generate $1.9 billion in revenue in the US alone, a booming industry that
is still growing rapidly in both America and Canada.8
Therefore, it is promising for Yo2Go to
launch the product during this time as the market is expected to continue to grow rapidly.
Competitive Analysis
Supermarkets
Supermarkets offer a variety of options for fresh and quality ingredients. They import these from
wholesalers or directly from manufacturers. Supermarkets such as Metro, Loblaws, and Sobeys
carry brands that consumers recognize and prefer, however, Yo2Go provides the convenience of
not having to prepare the ingredients by offering a product that is readily available. Although
Yo2Go’s prices are relatively higher in comparison to consumers who purchase their own
ingredients to create yogurt parfaits, consumers that choose Yo2Go can enjoy the convenience of
7. 6
not having to buy ingredients in bulk. Supermarkets focus on the variety and prices of their
products, leaving Yo2Go with the advantage of providing convenience and self-service.
Frozen Yogurt Franchises
Even though Yo2Go offers a unique product, frozen yogurt franchises such as Menchies, Yogen
Fruz, and Yogurty’s are the company’s direct competitors. For example, Menchies strives for
efficiency, fun, and health.9
They offer a custom blend of frozen yogurt flavours and a variety of
toppings such as candy, fruits, and syrups. Since Yo2Go offers organic and healthy toppings,
consumers will choose YoGo when they are looking for a healthy snack. Although Menchies
advertises their product as a healthy alternative to ice cream, Yo2Go will be an alternative to
Menchies for people who find Menchies too high in sugar content. Menchies targets children and
people looking for a sweet dessert9
, giving Yo2Go an advantage with the primary target group of
consumers aged 35-54.
Food Chains
McDonald’s and Tim Horton’s are Canada’s most popular food and beverage franchises. They
offer consumers a variety of foods for meals and snacks, including on-the-go fruit and yogurt
parfaits at a low cost. These franchises are considered to be indirect competitors. Consumers who
desire a quick ready-made snack would normally opt for the above options. Consumers now
have the option of an on-the-go snack that is cost effective, customizable to their preferences,
and a healthier alternative.
Competitive Advantage
Yo2Go’s competitive advantage is their ability to provide customizable yogurt parfaits in a
convenient manner. Customers will choose Yo2Go to enhance their healthy active lifestyles. In
8. 7
addition, consumers who do not wish to buy ingredients in bulk will prefer going to Yo2Go
where there are a variety of ingredients and toppings readily prepared and available.
Consumer Analysis
Identifying Customers
The market research analysis reveals that yogurt preference is highest for those aged 35-54.10
Specifically, 30% of this age group considers themselves to be yogurt “enthusiasts”, while 22%
considers themselves “health-aware”10
. Therefore, the primary target market will be adults aged
35-54, as this age group demonstrates the most interest in a yogurt snack and a healthy lifestyle.
Customer Needs
Customers strive for quality healthy foods at a convenience, and statistics show that
33% of consumers are snacking on healthier foods, and 60% wish there were healthier snack
options11
Yo2Go meets these consumer needs as they fill the gap that currently exists in the
market. A survey conducted shows that potential customers are willing to spend $6-$10 on a
snack such as a yogurt product (Exhibit 2), and Yo2Go has responded by pricing the product
within this range. Statistics show that individuals would prefer a customizable yogurt parfait over
an alternative fixed option (Exhibit 2), implying that a large majority of existing yogurt
consumers would potentially purchase this product as well. Traditionally, customers purchase the
ingredients for their yogurt parfait in bulk and individually. With Yo2Go as an option,
consumers can personalize their parfaits with ingredients that are already prepared for them. As
shown in the survey, consumers look for variety when making their parfait, therefore Yo2Go will
offer a wide range of toppings to satisfy this need (Exhibit 2). This product simultaneously
satisfies consumer demands. The customer will have to adjust their routines nominally to acquire
9. 8
the benefits of this product by visiting Yo2Go rather than a grocery store or another similar
snack establishment.
Marketing
Place
Yo2Go’s is located at Unit 103, 1737 Richmond Street, London, ON N5X 3Y2. This is situated
at the Hylands Centre, which is at the corner of Richmond Street and Fanshawe Park Road. This
plaza comprises of SportChek, Goodlife Fitness, and Combine Centre12
, which are all stores that
promote healthy active living, and align with Yo2Go’s vision. Due to its prominent location,
consumers are likely to visit the store. Yo2Go’s location is situated in an area with established
residential neighbourhoods. Currently, over 3,800 families live in the area stretching from
Sunningdale to Masonville – with the average annual income for this area being over $60,000.25
This demonstrates that a market with a steady income exists in the area and creates an
opportunity for Yo2Go to meet these potential customer’s needs. Currently in the Sunningdale
area, residential homes are being developed by Corlon Properties13
. This company made their
phase 1 and 2 lots available to the public since the spring of 2012 and a catholic elementary
school is expected to open nearby as well (Exhibit 3). With the growth of this community,
Yo2Go is expecting an increase in customer flow within the next three years.
Price
Customers have a choice between 4-cup sizes, however the parfait cost will be calculated by a
pricing of $2.99 per 100 grams. This is an all-inclusive price, meaning any additional toppings
plus the yogurt base will be combined and weighed to generate the final cost for each customer’s
specialized Yogurt Parfait. For a full breakdown of pricing, refer to Exhibit 10 for Yo2Go’s in
10. 9
store menu. The target market is not considered to be price sensitive, as it will primarily be
comprised of families who have established a steady net income.25 Yo2Go believes that the
primary market will have a concrete disposable income, and be willing to spend their income on
a premium product as a healthy alternative to other snacks. With the added benefit of the stamp
cards, there is an incentive for consumers to consistently visit Yo2Go in order to earn a $5 credit
to their next purchase.
Product
Compared to other frozen yogurt franchises, Yo2Go’s product is lower in calories, and higher in
nutrients14
. Yo2Go satisfies the diverse tastes of the target market by giving consumers the
option of an assortment of condiments to choose from including: fresh berries, oats, dark
chocolate, and honey. Market trends demonstrate that there will be a continued interest in yogurt
due to its healthy aspect within the upcoming years.15
Therefore Yo2Go will serve Plain, non-fat
0% Greek yogurt, low fat plain 2% yogurt, no fat 0% plain yogurt, vanilla Greek yogurt, and
non-fat vanilla Greek yogurt. Four cup serving sizes will be offered including a small (200g),
medium (350g), large (500g), and family size (700g).
Promotion/Advertising
Yo2Go’s marketing budget is set at $8500 per year. The company feels this is a workable budget
capable of fulfilling Yo2Go’s marketing and promotional objectives. Included in our marketing
plan is a cost-free partnership that Yo2Go has established, advertisements through stamp cards,
Canada post mail outs of informative pamphlets, Facebook presence, and the company’s website.
These promotional strategies will enhance Yo2Go’s brand image and help expand future
customer growth.
11. 10
Rev3K
Rev3K is one of the most well known fitness facilities in London and has an established client
base that fits the age range of the company's desired target market. Yo2Go has established a
mutually beneficial partnership with Rev3K at no additional cost (Exhibit 11). The personal
trainers have agreed to recommend Yo2Go’s product along with promotional materials
(Exhibit5). Through personalized training regimes and programs such as the Biggest Loser,
trainers will work with their clients achieving their fitness goals by setting up nutrition plans.
These nutrition plans will include a recommended weekly intake of Yo2Go’s products. As
demonstrated in Exhibit 6, Yo2Go is conveniently situated between the two Rev3K locations
providing convenience and accessibility for all Rev3K and Yo2Go customers. Rev3K’s mission
statement, which outlines the importance of training the individual and their body to understand
what foods will keep them healthy, directly correlates with the company’s product16
Stamp Cards
The Yo2Go stamp cards are a promotional strategy that encourages customers to visit the store
again. As shown in Exhibit 7, it is a stamp card that will be given to customers that make a
purchase at Yo2Go. Customers will receive a stamp for every purchase over $5 and when the
customer reaches their 10th
stamp, they will receive a store credit of $5 for their next purchase.
This urges the customer to come back to the store and collect stamps. Lastly, with this card, it
also acts as a print advertisement. When customers are reminded of their previous purchase at
Yo2Go, they will be motivated to visit Yo2Go to obtain their 10th
stamp. VistaPrint will print
1000 stamp cards for the grand opening of the store at a total cost of $120 per year (Exhibit 2).
12. 11
Canada Post Mail-Outs
Yo2Go will be mailing 6x9 inch informative pamphlets (Exhibit 5) delivered by Canada Post. A
3-kilometer radius has been established to reach a total of 10,312 houses located in
neighbourhoods that contain a high density of the desired target market (Exhibit 8). This allows
the company to effectively target a large number of potential customers and filter out the
neighbourhoods containing a low percentage of the target market. Mail outs will be conducted
semi-annually, once prior to the grand opening and again 6 months later. This raises awareness
of the brand and helps the venture gain recognition within the surrounding community. The cost
of this promotional plan, which includes printing and delivery service costs, will amount to
$3,402.96 per mail out ($6,085.92 per annum) (Exhibit 17). The company believes this
promotion will reach the greater London area.
Facebook
A thorough research revealed that the Facebook age demographic from 34-55 years had the
highest user base of 31.1% in 201417
. This increase in Facebook usage provides a viable avenue
for Yo2Go to reach its target market. The company will reserve the ability to specifically target
an audience by age and gender in the location they desire. By allocating $9.00 a day from the
company budget ($2,285 per annum) the company will have a potential reach of 76,000
impressions within a 20-mile radius of the Yo2Go location. It is estimated that the Facebook
advertisement will have an estimated daily reach of 6,900 men and women from the ages of 34 to
55 years of age. This demonstrates that Facebook is essential to the company’s marketing
campaign as the advertisements are effectively reaching a large portion of the target market.
13. 12
Website
The website will managed by Ms. Chan free of cost. (Exhibit 13) The website will allow
customers to use an online platform to access promotional offers, contact information, hours of
operations, and to give their feedback and suggestions. Having a noticeable online presence
ensures that customer service extends past the shop and into the customers’ homes.
Operations
Equipment
Since Yo2Go is a self-serve yogurt store, yogurt will be accessible in a refrigerated topping bar.
The refrigerated pan, model RM3, purchased from Turnkey Parlour (Exhibit 14) at a cost of
$3919, which includes shipping and the $75 border brokerage fee, as the equipment is being
shipped from North Carolina. Yo2Go requires two refrigerated bars, one for the yogurt and one
for the toppings. Running Yo2Go will require refrigerators to preserve the extra yogurt in a cold
environment. The refrigerator includes a 1-year warranty and has an estimated delivery time of
approximately 4-10 days. Since there will be some toppings that can be kept at room
temperature, the company will also be purchasing extra containers to store these toppings.
Yo2Go will invest in yogurt scoops, condiment scoops, knives, and other utensils. To maintain
the cleanliness of Yo2Go, a dishwasher will be purchased to keep the scoops and other utensils
clean daily. Furthermore, Yo2Go will need to purchase scales to measure the weight to calculate
the price of every customer’s personalized yogurt parfait. An efficient point of sale system to
ensure accurate sales and maintain inventory count will also be necessary. This point of sale
system should include a cash register and be compatible with Visa, MasterCard, Debit, and Cash.
To ensure that the store complies with the Health and Promotion Act, owners will contact the
14. 13
Middlesex-London Health Unit to perform an inspection before the store opening.18
Two tables
and six chairs will also be utilized, giving customers the option of dining in-store.
Suppliers
Yogurt will be purchased in bulk from Skotidakis and the company will restock Yo2Go’s yogurt
products once every week.19
The company has negotiated a reasonable price for the base yogurts
with Skotidakis (Exhibit 16), and the price of the yogurt includes the delivery costs.19
The
toppings will be purchased from Yupik at $11.80/100 grams. (Exhibit 16). Delivery is free of
charge and Yupik will deliver toppings to the store once every two weeks.20
Suppliers are chosen
based on lowest cost to ensure that Yo2Go will provide quality products at a profitable price.
Operations Manual
The manual includes instructions for the operations in the store (Exhibit 1). The operational
manual ensures the standardization of the store policies and employee expectations. All
employees will be required to read through the manual and agree to the policies by filling out a
contract. In addition, Yo2Go’s operational manual will provide standards that meet the Ontario
Food and Safety Protocol and the Ontario Food Premises Regulation under the Health Protection
and Promotion Act21
, which indicate the standards for food temperature, food handling,
sanitation, dishwashing, and personal hygiene practices. To ensure workplace safety, information
on Workplace Hazardous Materials Information System (WHMIS) and the Employment
Standards Act (ESA) will also be included. The manual will allow the owners to have established
standards that apply to Yo2Go’s day-to-day operations, and act as a resource for employees and
owners to turn to.
15. 14
Human Resources
Human Resource Capabilities
Yo2Go believes that a store manager will not be necessary due to the sales operations. Instead
the co-owners of the Yo2Go establishment will take on these managerial responsibilities. The
company’s unique interactive process of creating custom parfaits results in customers requiring
very little assistance from staff. Ms. Chan’s experience with web design and proficiency in
editing programs, such as Photoshop and Illustrator, is an invaluable asset to Yo2Go’s
marketing. Mr. Fuca’s profound knowledge and insight of the fitness industry can provide
suggestion to Yo2Go’s ongoing operations. Mr. Fuca will also develop the appropriate
advertising strategies to establish a customer clientele. In addition, both owners have adequate
knowledge in accounting and finance, thus they will handle Yo2Go’s financial recording for
ongoing operations. Although both owners lack the experience in dealing with direct food
service and possess minimal experience with retail sales, the operation style of Yo2Go can
accommodate such disadvantages due to the high customer autonomy in the sales process.
Resumes for both owners can be found in (Exhibit 12). The trained part-time staff will help
support the owners in the overall operations of the business, as they will be taking on the more
menial tasks of Yo2Go’s store operations.
Ownership Management
Yo2Go will operate as a Canadian Privately-Controlled Corporation (CPCC) as it is owned by
Canadian residents and not publicly traded. Being a CPCC, the business will be eligible for the
federally offered small business deduction,22
reducing corporate income taxes. Ms. Chan will be
responsible for designing the promotional material and the website. Mr. Fuca will handle the
hiring of employees and various other administrative duties, including managing the finances
16. 15
and advertising strategies for the Yo2Go company. The roles of both owners will be to oversee
the main operations of the business, without being heavily involved in the hands-on aspect of
day-to-day processes. The owners’ presence will provide a leadership role for employees and
ensure optimal customer satisfaction during day-to-day operations.
Staffing
Owners will be in charge of the management and training of part-time staff. All training of staff
will be completed prior to opening day in order to ensure operations run smoothly. Prior to their
initial shift, staff will be trained on proper cleaning procedures and how to operate the topping
bar. Since the company will be using a point of sale system, staff will have to be trained on how
to make credit and Interac sales.23
To ensure that the business is engaging in secure quality
assurance practices, owners will be teaching employees how to operate the safe as well as
maintain a minimum balance of $300 in the cash float at all times. As the organization develops,
management will consider different needs and requirements that are necessary to meeting future
changes in firm requirements.
Part-time employees will earn a wage of $11.25 as subject to the Ministry of Labour standards24
.
Four part-time staff will be hired and scheduled for approximately 20 hours a week per employee
(Exhibit 9) Daily operations will always require one owner and one part time staff associate per
shift. A normal shift will consist of one part-time employee whose responsibilities will entail
operating the cash register and refilling the topping bar. The owner on site will assist with store
functions when not overseeing bookkeeping and other managerial responsibilities.
Staff working morning shifts will be required to display the yogurt and condiments in a
presentable manner as well as setting up of the cash register. At close, employees will be trusted
with store maintenance including cleaning of the topping bar and washrooms, closing the
17. 16
register, and ultimately ensuring that the store is prepared for the next day’s operations. Each
owner will be dedicating approximately 60 hours a week at the store. (Exhibit 9). As Yo2Go
raises more capital, the owners will be able to reduce their hours worked and hire additional part
time staff. Through the owners’ heavy involvement, they can manage operations and take a more
involved role when working with the part-time employees. This will also help build a strong
employer-employee relationship and ensure that operations are meeting quality assurance
standards.
Finance
Initial Investment
Yo2Go’s start up cost includes expenses necessary to build a business efficient in its day-to-day
operations. These expenses include the following items:
· Topping bar: for yogurt and toppings
· Refrigerator: to store and keep all the ingredients fresh
· Non-commercial Dishwasher
Additionally, our initial investment includes office items, prepping supplies, and signage costs.
All social media and website management will be managed by the owner, Christina Chan, free of
charge. Thus, the total initial investment will be $50,000. (Exhibit 14).
Capital Financing
In financing Yo2Go’s operations, the company will be approved for a $50,000 bank loan from
The Royal Bank of Canada. This bank loan will come with a long-term obligation of 10 years.
The company’s goal is to pay the remaining balance of the bank loan as quickly as possible.
Thus, by the end of the second year of operations, the bank loan should be fully paid off.
18. 17
(Exhibit 19) In the case of Yo2Go being unable to meet the forecasted sales goal, the business
will focus on paying off the bank loan before recognizing profits. With the bank loan paid off in
such a short period of time, it demonstrates the efficiency of the business, which gives Yo2Go a
better image for future investors.
Income Statement Analysis
Yo2Go’s income statement reveals that the company will have an expected low-end profit of
over $1,871.67 during the first year of operations (Exhibit 18). Even though Yo2Go is expected
to earn a profit they will need to take into consideration the competitive market in which they
will be entering. By the end of the first year, Yo2Go is expected to obtain a 5% – 7% market
penetration. With increase in brand image over time, Yo2Go owners believe that this percentage
of market penetration will increase in the coming years. A few of the company’s largest expenses
include rent, payroll, and sales discount. The payroll includes both the owners’ salaries and the
part-time employees’ wages. As demonstrated in Exhibit 21, sales will be growing on average at
23.2% while payroll and rent expense remains stagnant. This exponential growth in sales will
compensate for these large expenses. The promotional stamp cards offered by Yo2Go are the
primary contribution for the sales discount account. As such, customers receive a $5 discount for
every 10th purchase. For this cost, the company accounted for a 6% redemption rate for this
promotion. Yo2Go expects that this number will increase as brand image improves over time. In
terms of the company’s largest inflows, Yo2Go believes that most customers will purchase the
product at a weight range of 350 grams to 700 grams; this accounts for 59% of the total sales.
(Exhibit 18) Yo2Go anticipates that this is amount is consistent with what the target market
prefers as proven in survey results found in Exhibit 2. These sales projections are based on
19. 18
conservative sales forecasts, and the owners will consistently monitor the ongoing revenue and
expense figures while adjusting statements accordingly.
Sales Forecast Methodology
The company performed a thorough demographic analysis in the London area in order to
determine projected sales volumes25
. There are a total of 366,150 people in London and 28%
(103,095 individuals) of the population falls into the company’s target market range of ages 34-
5426
. About 2.7% of the target market lives in the Masonville area, which is equivalent to an
estimated 2,786 individuals (Exhibit 22). According to Stats Canada, the average percentage of
the market captured through yogurt sales is approximately 6%-9%27
Yo2Go believes that it is
more appropriate to have a conservative market penetration rate, so the company feels that a low
of 5%-7% more accurately reflects the company’s potential customer outreach throughout the
three years (Exhibit 17). For the high, Yo2Go will be using Stats Canada’s result for the sales
projection.
According to the survey, 60% of the respondents stated they would purchase snacks over 3 times
each month (Exhibit 2) which is consistent with the company’s consumer behaviour research
results. For consumers in the surrounding area and the rest of the London area, the frequency is
once per 2 weeks and once per 2 months respectively.28
The respondents of the survey showed strong preferences towards purchasing snacks with a price
range of $6-$10, which is equivalent to the pricing of Yo2Go’s medium size of 200g-350g.
Therefore, when calculating the projected sales, the company used these statistics to determine
the final value. Taking the number of people reached from the market penetration rate and
multiplying it by the purchase frequency, results in Yo2Go’s projected annual volume of yogurt
parfaits sold. Using this value, it was multiplied by the average grams purchased and then
20. 19
multiplied by $2.99 per 100 gram for the first year-end sales of a low $224,123 and high
$240,929 (Exhibit 23).
Fixed Costs
The bulk of the company’s fixed costs are comprised mainly of salaries and wages, rent, and
marketing efforts, with corresponding proportions of 67.64%, 22.38%, and 6.91% (Exhibit 15).
In order to provide the convenience of always being accessible to consumers, Yo2Go has long
hours of operation resulting in large salaries and wages expenses. Rent is a large cost as well
because the location of Yo2Go is in a high traffic area. To effectively launch the company,
Yo2Go incurs large marketing expenses to ensure that it creates brand recognition and exposure
in the market. Various equipment and kitchen tools will also be required to effectively operate
the business (Exhibit 15). In accordance with the Bureau of Economic Analysis Depreciation
Estimates29
, fixed assets will be amortized using the straight-line method as demonstrated in
Exhibit 14.
Variable Costs
The costs for the yogurt itself are broken down with prices corresponding to those of Skotidakis.
Refer to Exhibit 16, for a full breakdown of each yogurt type’s unit cost. The yogurt serves as the
highest variable cost for the company since 75% of the parfait consists of yogurt. The
customized cups are used for brand recognition, and serves as the second largest variable cost
source at 10.20% (Exhibit 15). These cups will be purchased from The Cup Store and create a
professional image for the company30
. Yo2Go’s toppings will be purchased from Yupik, a family
business that offers a variety of high-quality and healthy ingredients. It is estimated that each
consumers’ individual parfait will consist of 25% toppings. Although the fresh fruit toppings
accounts for the largest variable cost of $7.75 per 100g, Yo2Go prides itself on fresh ingredients
21. 20
and 33% of survey respondents prefer fresh fruit toppings to the other toppings (Exhibit 2). With
Yo2Go’s aim to keep prices low and quality high, the company is able to yield a 64.63%
contribution margin to its revenue. This is a very strong contribution rate as it means that only
36% is contributing to the variable costs. The remaining amount will be allocated to paying off
the company’s additional expenses.
Cash Budget Analysis
An assessment of the first year low cash budget reveals that Yo2Go expects the highest cash
outflow of $48,667 during the first month of operations (Exhibit 17). This is primarily due to the
initial investment costs, which includes renovation costs, fixed assets, and inventory. To
accommodate such costs and cover the initial investment expenses, the owners of Yo2Go
decided to finance the company through a $50,000 bank loan (Exhibit 17). Most of the fixed
costs are spread evenly during the fiscal period, except for the marketing initiatives, which are
conducted semi-annually. Under the low-end sales projection, Yo2Go is expected to undergo 7
months of negative cash flow in the first year of operations while maintaining a positive cash
flow on-hand (Exhibit 17). March is anticipated to have the largest negative net cash flow, as the
company wants to repay the bank loan with all excess cash flow at the end of the year, to
minimize loan interest payable in the subsequent year.
Fixed costs in the first year high projection will remain the same as the low-end projection costs.
Yo2Go is expecting a higher cash inflow with regards to the higher brand exposure rate. The
increase in sales will generate more cash inflow resulting in two months of negative net cash
flow only. This is a positive observation for the company as it means that will be able to repay a
larger portion of bank loan. Interest rate and income tax payable will be paid off in the first
22. 21
month of the subsequent fiscal period, therefore there are no relevant accounts contributing to the
cash outflow in the first year of operations.
Under both the low and high scenarios of the sales projection, Yo2Go is predicted to continue in
sales growth and sustainable cash inflow in the second and third year due to the increase in brand
recognition, and customer base. However, the low-end projection reveals that Yo2Go will be
unable to fully repay the bank loan, as it will have an $8742 remaining balance, which will
consequently contribute to the interest payable in the third year (Exhibit 17). In the high-end
projection, the company will be capable of repaying the outstanding bank loan with a $30,765
net cash flow (Exhibit 19). The thorough assessment conducted of Yo2Go’s cash budget reveals
that there will be a $20,000 and $82,184 net cash flow in the low-end scenario, and a $30,765
and $154,565 net cash flow in the high-end scenario for the second and third year respectively
(Exhibit 17). This demonstrates a promising profitability and future in the market for the
company.
Balance Sheet Analysis
Yo2Go’s assets consist of a minimum cash float of $20,000, inventory, business license, fixed
assets, and renovations. The business license has an indefinite life as long as the business
incorporates year after year. The license renewal fees will be paid as an expense in the each of
the subsequent years. For fixed assets and renovations, Yo2Go used straight-line depreciation
with a corresponding useful life schedule. (Exhibit 15) The owners of Yo2Go decided to finance
the business through a bank loan from the Canada Small Business Financing Program at an
annual interest rate of 5.7% from the Royal Bank of Canada.31
The owners have decided to repay
the bank loan as quickly as possible with annual profits, while maintaining the minimum cash
float at the end of each fiscal year. By the end of the second year of operations, the bank loan
23. 22
will be paid off in full. At fiscal year end, the company is expected to close with two separate
accounts payables. The first will be the income tax payable from the previous fiscal year, and the
second will be the bank loan interest payable based on the outstanding balance at the fiscal year
end. Both accounts are expected to be paid off during the first month of the following 2017-2018
fiscal year. Additionally, there will be no dividends payable, as Yo2Go has not been financed
through equity thus far.
Breakeven Analysis
Yo2Go will be focusing on a conservative breakeven analysis; this is based on the low-end
calculations. As a result, the company will have a weighted average contribution margin of
64.73% with a fixed cost of $125,327.58. At the end of the first year, the company’s breakeven
sales will be $193,605.76, which will increase by 1.99% and 1.60% in year 2 and 3 respectively
(Exhibit 20). The projected sales necessary to cover Yo2Go’s fixed costs in the first year is
$224,123.87. The sales growth for the company will be an average of 23.2% for year 2 and 3.
The margin of safety in the first year will be 13.62% and will increase by 1.22% and 1.42% for
year 2 and 3 respectively. This number demonstrates that if sales projections were to decrease by
13.62%, the company will still be able to breakeven, which is incredibly promising as it
demonstrates a safety net for risk. In terms of the cash breakeven analysis, the company’s margin
of safety in the first year will be 15.01% and will increase by 1.10% and by 0.39% moving
forward. This is shown in Exhibit 20. This number demonstrates that if sales projections were to
decrease by 15.01%, the company can still cover the cash fixed costs.
24. 23
Contingency Plan
Sales Contingency
The company recognizes that there may be a deviation in its sales during the winter months. The
distribution of healthy food is not as convenient during this time as people are less willing to go
out to purchase a snack. Furthermore, yogurt is a cold snack, which may not be desirable for
some customers. As a result, customers will be less motivated to travel to Yo2Go. This is
anticipated to consist of a small proportion of the total customer base. The reasoning for this is
that the customer base is comprised mostly of health-oriented individuals, who will make the
effort to pursue healthier food options in order to maintain their healthy lifestyle. In order to
ensure as little deviation in sales as possible, the owners of Yo2Go will consider promotional
discounts over the winter months. These promotions are still yet to be finalized given that the
company needs concrete sales figures of the winter months before a decision is made.
Inventory Contingency
As part of the day-to-day operations, there is a constant use of fresh foods. Being a personalized
yogurt parfait shop the company has to ensure that customers’ are enticed by the freshness of the
ingredients that are offered. Due to this, a scenario could arise where the on-hand inventory
could be spoiled or the store may go out of power. If such an event does occur, the cash float on
hand would be used to purchase fresh new foods to act as an emergency inventory until the
owners can get in contact with Skotidakis or Yupik suppliers. As such, the decrease in the
company’s cash float will affect the year-end financials conservatively within the first two years
of operations. However, by the end of the third year Yo2Go will have a sufficient amount of cash
on hand to compensate for any unexpected complications. (Exhibit 18)
25. 24
Opportunities for Future Growth
Expansion
Yo2Go hopes to open new store locations within London and beyond. An example of a local
area to look at in the future would be Talbot Village, in the Byron and Lambeth area. This
geographic area offers a similar demographic to the current location, and the success of the
flagship store will serve as a model for future stores to come. Once this new location is open, the
owners will individually run separate locations. Expanding within London would be ideal in the
initial stages, as expenses and other variable factors would be consistent with the original store.
After establishing a strong customer base in London, Yo2Go plans to penetrate into the Greater
Toronto Area.
Diversifying Yo2Go’s Product
Another form of growth in consideration would be to offer more combinations of yogurt parfaits
to customers. The most viable way of doing this would be to create special combinations of
parfaits specific to holidays. Examples would be pumpkin flavoured yogurts for Halloween or
chocolate for Valentine’s Day. These holiday-exclusives would only be available for a limited
time providing customers with an incentive to return to the shop. Yo2Go will continue to assess
consumer trends to adapt to any future changes in consumer preferences.
Franchising
To achieve Yo2Go’s goal of expanding in the future, franchising serves as a promising option for
the company. Franchising eliminates the need for the company to fund more locations internally,
as the investors will be required to cover all the start-up costs. This method of expansion would
be beneficial in that it would offer further brand recognition and revenue in the form of royalties.
Royalty figures would depend on the circumstances and would likely increase as more
26. 25
franchisees are established. However, Yo2Go must consider that the company would be at risk of
tarnishing of the company image and loss of complete control.
Decision
A comprehensive analysis of Yo2Go’s qualitative and quantitative factors reveals that the
company is a feasible venture. By emphasizing Yo2Go’s competitive advantages, Yo2Go will be
able to effectively compete in the market. In the low sales forecast, the business will still be able
to break-even, while providing the owners with a salary of $30,000 each. Profit is also expected
to increase by 30% annually, demonstrating a promising future for the company. The
promotional avenues chosen for Yo2Go will effectively reach the desired target market, and
result in a net sales figure of $224,123 to $240, 929 for the company during the first year. All of
the goals and objectives set forth are expected to be fulfilled, and will therefore establish Yo2Go
as a prominent organization in the ever-changing market.
Endnote
1
https://www.ontario.ca/page/business-name-registration
2
http://www.inspection.gc.ca/food/information-for-consumers/food-safety-
1
https://www.ontario.ca/page/business-name-registration
2
http://www.inspection.gc.ca/food/information-for-consumers/food-safety-
investigations/eng/1332299626115/1332299812611
3
http://www.torontosun.com/2015/10/23/trudeau-tax-changes-a-mixed-bag
4
http://www.statcan.gc.ca/daily-quotidien/150122/dq150122b-eng.htm
5
http://www.fitness.gov/eat-healthy/why-is-it-important/
6
https://www.kmrsoftware.net/netquestapp/pmbquickreports/default.aspx
7
http://academic.mintel.com.proxy1.lib.uwo.ca/display/745719/
8
http://clients1.ibisworld.com/reports/us/industry/ataglance.aspx?entid=4323
9
http://www.menchies.ca/frozen-yogurt-store-vision
10
http://academic.mintel.com.proxy1.lib.uwo.ca/display/714282/
11
http://www.mintel.com/press-centre/food-and-drink/a-snacking-nation-94-of-americans-snack-
daily
12
http://bentallkennedy.com/pdf/retail/Hylands_Centre.pdf
13
http://www.sunningdalehome.com/loc_meadowlands_faq.shtm
14
http://www.goodhousekeeping.com/health/diet-nutrition/a20979/frozen-regular-yogurt-1001/
15
http://academic.mintel.com/display/745700/?highlight#hit1
16
http://rev3k.com
28. EXHIBITS
Exhibit 1: Operational Manual
Operational Manual
Table of Contents
1. About Yo2Go
1.1 Company Mission Statement
1.2 Company Vision Statement
1.3 Company Products
2. Operations and Maintenance:
2.1 Organization Chart
2.2 General Housekeeping
2.3 Opening Procedures
2.4 Closing Procedures
2.5 Cleaning Procedures
2.6 Miscellaneous Store Procedures
2.7 Handling Typical Complaints and Problems
3. Human Resources
3.1 Job Descriptions
3.2 Contact Information
3.3 Suppliers
3.4 Schedules
3.5 Uniforms and
4. Crisis Management Plan
4.1 Crisis Management Team
4.2 Crisis Management Training
4.3 Fire, Robbery
5. Machines: Yogurt Machines
6. Inventory Procedure
7. Employee Hygiene and Training
7.1 Introduction
7.2 Procedures
7.21 Hygiene
Clothing
Grooming
Health Condition
7.22 Behaviour
Hand washing instructions
Sanitizing
7.23 Training
List of Employees and Positions require hygiene training
Training Material used to train employees
The Frequency of Employees
List of Employees that have received training
Record of Each employee’s training History
7.3 Monitoring and Follow-Up
7.4 Resources
7.5 Government Standards for Personnel Hygiene
8. Workplace Hazardous Materials Information System (WHMIS)
28
35. Christina Chan
146 Selwyn Rd, Richmond Hill, ON L4E 5E5
+1 (416)- 875- 0848
cchan833@uwo.ca
Summary of Qualifications
• Proficient in Microsoft Office: Word, Excel, PowerPoint, Access; Photoshop, Illustrator, Dreamweaver
• Ability to manage multiple social media platforms: Facebook, Twitter, Instagram
• Excellent verbal and written communication skills in English and Cantonese
Work Experience
Administrative Assistant, Brofort Inc. – July 2015- Aug 2015
• Followed up with clients with orders and satisfaction of products
• Reached out to potential clients through social media, targeting the retail industry
• Managed the inbound and outbound logistics of the company’s products and inventory
• Worked on a database to update the company’s purchasing orders
• Ensure the timely collection of accounts receivables
• Provided quality control support to ensure that products are standardized
Receptionist, IAQ Systems Incorporated; New York, New York — July 2013-Aug 2013
• Provided clients with information
• Scheduled and confirmed appointments for clients and customers
• Kept track and organized daily schedules
• Organized meeting minutes during weekly meetings
• Used spreadsheets to organize sales
Education
Candidate for Double Degree in Bachelor of Arts, Honours Specialization in Media Studies — Media,
Information, Technoculture, Honours Business Administration— Richard Ivey School of Business, Western
University Sept 2014 - Present
Ontario Secondary School Diploma, Richmond Hill High School, Richmond Hill, ON, June 2014
Extracurricular Activities
Leadership & Academic Mentorship Program 2.0: Peer Mentor- 2015-2016
• Provide social and academic support for students in second year of under graduate studies
• Lead students through social events and gatherings
• Provide students with information to get involved with all aspects of campus and Western University
Student Success Center
Southeast Asia Association: Marketing Executive – 2015-2106
• Designed promotional posters and logo for club’s marketing events
• Planned marketing campaigns to promote club events
• Contributed ideas to promote club awareness
• Scheduled marketing executives to ensure smoothness in promotional activities
University Student Council: Accessibility Committee: Marketing Manager – 2015-2016
• Planned an exhibition for awareness for International Persons with Disabilities Day
• Contacted and communicated with organizations interested in participating in the exhibition at the
University Community Center
• Designed posters and promoted the exhibition through different social media such as Facebook,
University Student Council website
• Provided students with information on how they can get involved and volunteer for the London
community with people with disabilities
Exhibit 12: Christina Chan
35
36. Joseph Fuca
18 Woodgate Place
London, Ontario
N6K 4A4
Home: 519-641-6720
E-mail: joeyf93@rogers.com
Objective
Continue with my education to get my degree in Honor Specialization Bachelors of
Health Sciences Degree
Attend Honors Business Administration at Ivey
To establish an education in business administration where I can use interpersonal
skills, knowledge and attitude necessary to pursue an entrepreneurial future
Education
Completed four years at Western University studying to receive my degree in Honor
Specialization Bachelors of Health Sciences in the spring of 2015
Completed four years of High School
Saint Thomas Aquinas Catholic Secondary School 9th -10th and first semester of
11th grade
Second semester of 11th-12th grade at National Sports Academy (Lake Placid, NY)
Achievements
Dean’s Honour List 2012-2013, and 2013-2014, 2014-2015
Frederick Douglass and Susan B. Anthony Scholarship Award to University of
Rochester (highschool)
Excellence in Science and Mathematics Scholarship Award to Lawrence Tech
(highschool)
Principal Platinum Award in Grade 9-10 at St. Thomas Aquinas and First semester
of 11th. Grade
Work Experience
Part-time Technician for Sport Chek, from 2011 – present
Robertson Building Systems (Summer Analyst – Summer 2015)
Robertson Building Systems (Inside Sales Associate/Shop Assistant – Summer
2014)
Worked at Nevada Bobs Golf (Summer of 2010)
Worked for 2 years at Hockey horizon doing hockey camps for younger players
(approx. three weeks per year)
Rick Martin School of Shooting, periodically
Volunteer Work
Volunteer as a Research Assistant at St. Joseph’s Hospital in the Cardiac
Rehabilitation Program, from June 2015 – present
Volunteer at Victoria Hospital in London, ON in the Preoperative Care Unit, since
September 2013 – present
Volunteered at Victoria Hospital in the ACE Unit under The Hospital Elder Life
Program (HELP), a proactive “comprehensive program of care for older hospitalized
patients in acute care which is designed to prevent delirium and functional
decline”, from 2012-2013
Volunteered at Victoria Hospital from 2011-2012 as a Volunteer Guide
Completed my volunteer requirements for high school by the first semester of 10th
grade
Volunteer with hockey camps during highschool
Exhibit 12: Joseph Fuca
36
50. Exhibit 21: Ratio Analysis
Ratio Analysis
2016 2017 2018
LOW HIGH LOW HIGH LOW HIGH
Profitability
Return On Investment(ROI)
Net Income 1,871.67$ 11,671.40$ 33,208.92$ 42,956.08$ 67,769.52$ 118,226.82$
Initial Investments 49,999.60$ 49,999.60$ 49,999.60$ 49,999.60$ 49,999.60$ 49,999.60$
ROI 3.74% 23.34% 66.42% 85.91% 135.54% 236.46%
Payback(years) 26.71382576 4.283940232 1.505607514 1.163970285 0.7377889 0.422912488
Return On Equity(ROE)
Net Income 1,871.67$ 11,671.40$ 33,208.92$ 42,956.08$ 67,769.52$ 118,226.82$
Owners'Equity N/A N/A N/A N/A N/A N/A
ROE N/A N/A N/A N/A N/A N/A
Stability
Net Worth To Total Assets N/A N/A N/A N/A N/A N/A
Liquidity
Current Ratio 10.47504719 10.86276581 13.02956535 18.59940982 27.89121483 28.98053327
Working Capital 24,315.48$ 24,407.07$ 24,818.61$ 35,623.11$ 85,872.47$ 155,876.68$
Efficiency
Fixed Assets Turnover 10.01736867 10.7685045 13.75319813 14.58443972 18.83495953 23.89890111
Growth Rate
Year 1 -Year 2 Year 2 - Year 3
Sales Low High Low High
24.06% 22.38% 22.34% 46.39%
Yo2Go
50
51. Exhibit 22: Sales Projection
Yo2Go
Sales Projection
Population of Target Market(males and females ages 35-54) 2786
Population of the four Surrounding Neighbourhoods 37129
Total Population of London(less 4 surrounding area) 326235
Total Population 366150
Year 1
2016 Low 2016 High
Percentage Captured Number Percentage Captured Number
Target Market (males and females ages 35-54) 5.00% 5015 7.00% 7021
Surrounding area 2.00% 17822 2.00% 17822
Rest of London 0.20% 3915 0.20% 3915
Total Yogurt Parfait sold 26752 28757
Year 2
2017 Low 2017 High
Percentage Captured Number Percentage Captured Number
Target Market (males and females ages 35-54) 6.00% 6018 8.00% 8024
Surrounding area 2.50% 22277 2.50% 22277
Rest of London 0.25% 4894 0.25% 4894
Total Yogurt Parfait sold 33189 35195
Year 3
2018 Low 2018 High
Percentage Captured Number Percentage Captured Number
Target Market (males and females ages 35-54) 7.00% 7021 9.0% 9027
Surrounding area 3.00% 26733 4.0% 35644
Rest of London 0.35% 6851 0.35% 6851
Total Yogurt Parfait sold 40605 51521
51
52. Exhibit 23: Sales Projection Calculation Demonstration
Yo2Go
Frequency :Target group at least 3 times per month
Surrounding area consumers: Once every two weeks
Total london area (less surrounding areas): once every 2 months
Sales Revenue (high) Yr1
0-200g
average:100
200g -350g
average:275
350g-500g
ave: 425
500g- 700g
ave:600
Over $21 Over 700g (700) 8% $41,993.23 $45,142.02
Grams
$11- 15 10.90% $37,054.03 $39,832.46
Price range Percentage Sales Revenue (Low) Yr1
$1 -5 34.80% 26752*0.348*2.99=$27,835.51 28757*0.348*2.99=$29,922.71
$16- 20 6% $26,395.74 $28,374.99
$6- 10 41.30% $90,845.35 $97,657.24
52
53. Appendix A: Bibliography
“A Snacking Nation”. Mintel. 13 Jan 2016. <http://www.mintel.com/press-centre/food-and-drink/a-
snacking-nation-94-of-americans-snack-daily>
“BEA Depreciation Estimates”. BEA. 21 Jan 2016.
<http://www.bea.gov/national/FA2004/Tablecandtext.pdf>
“Business name registration”. Service Ontario. 10 Jan 2016. <https://www.ontario.ca/page/business-
name-registration
“Canadian Attitudes Towards Healthy Living”. Vividata. 12 Jan 2016.
<https://www.kmrsoftware.net/netquestapp/pmbquickreports/default.aspx>
“Canadian Small Business Finance Program”. Innovation, Science and Economic Development Canada. 2
Feb 2016. <https://www.ic.gc.ca/eic/site/csbfp-pfpec.nsf/eng/h_la02855.html>
“Corporate Tax Advantages of the Canadian-Controlled Private Corporation” aboutmoney. 25 Jan 2016.
<http://sbinfocanada.about.com/od/corporatetax/a/ccpcadvantages.htm>
“Fast Food Restaurants in Canada”. IBISWorld. 2 Feb 2016.
<http://clients1.ibisworld.ca/reports/ca/industry/default.aspx?entid=1980>
“Focus on Geography Series, 2011 Census”. Statistics Canada. 21 Jan 2016.
<https://www12.statcan.gc.ca/census-recensement/2011/as-sa/fogs-spg/Facts-csd-
eng.cfm?LANG=Eng&GK=CSD&GC=3539036>
“Food Safety Inspections” ML Health Unit. 21 Jan 2016. <https://www.healthunit.com/food-safety-
inspections>
“Frozen vs. Regular Yogurt?” GH. 13 Jan 2016. <http://www.goodhousekeeping.com/health/diet-
nutrition/a20979/frozen-regular-yogurt-1001/>
“Minimum Wage”. Ontario Ministry of Labour. 12 Jan 2016.
<http://www.labour.gov.on.ca/english/es/pubs/guide/minwage.php>
“North West London”. London Canada. 2 Feb 2016. <https://www.london.ca/About-London/community-
statistics/neighbourhood-profiles/Pages/North-West-London.aspx>
“Ontario Public Health Standards”. Ontario Ministry of Health and Long-Term Care. 21 Jan 2016.
<http://www.health.gov.on.ca/en/pro/programs/publichealth/oph_standards/foodsafety.aspx>
“Safety Investigations”. Canadian Food Inspection Agency. 10 Jan 2016.
<http://www.inspection.gc.ca/food/information-for-consumers/food-safety-
investigations/eng/1332299626115/1332299812611>
“Social Media User Statistics & Age Demographics for 2014”. JETSCRAM. 21 Jan 2016.
<http://jetscram.com/blog/industry-news/social-media-user-statistics-and-age-demographics-
2014/#sthash.WoYS4YgQ.dpuf>
53
54. “Survey of Household Spending, 2013”. Statistics Canada. 12 Jan 2016. http://www.statcan.gc.ca/daily-
quotidien/150122/dq150122b-eng.htm
“Trudeau tax changes a mixed bag”. Toronto Sun. 10 Jan 2016.
<http://www.torontosun.com/2015/10/23/trudeau-tax-changes-a-mixed-bag>
“US Specialized Industry Reports” IBISWorld. 17 Jan 2016.
<http://clients1.ibisworld.com/reports/us/industry/ataglance.aspx?entid=4323>
“Vision”. Menchies. 17 Jan 2016. <http://www.menchies.ca/frozen-yogurt-store-vision>
“Why Is It Important?”. President’s Council on Fitness, Sports & Nutrition. 12 Jan 2016.
http://www.fitness.gov/eat-healthy/why-is-it-important/
“Workplace Hazardous Materials Information System”. Health Canada. 21 Jan 2016. http://www.hc-
sc.gc.ca/ewh-semt/occup-travail/whmis-simdut/index-eng.php
“Yogurt and Yogurt Drinks”. Mintel. 12 Jan 2016.
<http://academic.mintel.com.proxy1.lib.uwo.ca/display/745719/>
“Yogurt and Yogurt Drinks”. Mintel. 12 Jan 2016.
<http://academic.mintel.com.proxy1.lib.uwo.ca/display/714282/>
“Yogurt and Yogurt Drinks”. Mintel. 12 Jan 2016.
<http://academic.mintel.com/display/745700/?highlight#hit1>
“Yogurt and Yogurt Drinks”. Mintel. 12 Jan 2016.
<http://academic.mintel.com.proxy1.lib.uwo.ca/display/714276>
”Neighbourhoods of sunningdale”. Sunningdale Home. 13 Jan 2016.
<http://www.sunningdalehome.com/loc_meadowlands_faq.shtm>
”Rev3K”. Rev3k. 10 Jan 2016. <http://rev3k.com>
54
55. Appendix B: Financial Costs Sources
Item Costs Useful
life
Sources
Open sign $40 10 http://www.staples.ca/en/Headline-Sign-Century-Series-Business-Hours-
Sign-14-x-13-/product_649267_2-CA_1_20001
Business
License
$295 and
$120 for
renewal
https://www.london.ca/city-hall/by-laws/Documents/business-licence-
L6.pdf
Topping
Bar
$3919 15 In conversation with
Tish Turbe
Sales Manager
http://turnkeyparlor.com/frozen-yogurt-topping-bar-rail-station/
POS
System
$987 5 http://www.expertmarket.com/How-Much-Does-a-Point-Of-Sale-System-
Cost
Refrigerato
r
$1807.99 10 http://www.costco.ca/.product.100161051.html?cm_sp=RichRelevance-_-
categorypageHorizontalTop-_-
PopularProductsInCategory&cm_vc=categorypageHorizontalTop%7CPopu
larProductsInCategory
Dishwasher
$5,874.87 10 http://www.costco.ca/Miele-Professional-G8066-Undercounter-
Commercial-Dishwasher-.product.100161630.html
Furniture(9
sets)
$2,421.00 14 http://www.walmart.ca/en/ip/93370-spectrum-dining-set/6000146303860
Desktop
Computer
$300.00 14 http://accessories.us.dell.com/sna/productdetail.aspx?c=ca&l=en&s=&cs=c
adhs1&sku=492-
BBMJ&dgc=ST&cid=3852&lid=5635587&acd=123088137920560&ven1
=s3OPbVFyM&ven2=,
Printer $79 15 http://www.staples.ca/en/Canon-PIXMA-MX532-Wireless-All-in-One-
Inkjet-Printer-Airprint-Duplex/product_577808_2-
CA_1_20001?kpid=577808&cid=PS:SBD:GS:n:n:SBD:58:21800&gclid=
Cj0KEQiA89u1BRDz8enExq7rvN0BEiQAaFCHm1OE3wq6jjZ5l-
rUMPmxMZ41aH-843Ikz9EHYyTkydoaAmEk8P8HAQ
Phone
$60 10 http://www.staples.ca/en/VTech-CS6649-DECT-6-0-Corded-Cordless-
Phone-with-Answering-System/product_725838_2-CA_1_20001
55
56. Prep. Table
$120 5 http://www.amazon.ca/Worktable-24-X-
Standard/dp/B010E9V3U2/ref=sr_1_12/182-6630029-
1849964?ie=UTF8&qid=1454886095&sr=8-
12&keywords=stainless+steel+prep+table
Marketing-
Mails Out
$6,085.92 Exhibit 15
Marketing-
Facebook
$9 a day http://jetscram.com/blog/industry-news/social-media-user-statistics-and-
age-demographics-2014/#sthash.WoYS4YgQ.dpuf
Food
Inspection
$895 http://www.inspection.gc.ca/food/labelling/food-labelling-for-
industry/nutrition-labelling/additional-information/restaurants-and-food-
service-establishments/eng/1409850385603/1409850437890
Name
Registratio
n
$60 https://www.ontario.ca/page/business-name-registration
Phone &
Internet
$60 www.bell.ca
Office
Supplies
$60 www.staples.ca
56
