Deli Business Plan and SWOT Analysis

Deli Business Plan, Marketing Plan, How To Guide, and Funding Directory

The Deli Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start a Deli business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.

Your Business Planning Package will be immediately emailed to you after you make your purchase.

Product Specifications (please see images below):

  • Bank/Investor Ready
  • Complete Industry Research for the Industry
  • 3 Year Excel Financial Model
  • Business Plan (26 to 30 pages)
  • Marketing Plan (24 to 28 pages)
  • 425+ Page Funding Directory
  • PowerPoint Presentation
  • Loan Amortization and ROI Tools
  • Three SWOT Analysis Templates
  • How to Start a Business Guide
  • Easy to Use Instructions
  • All Documents Delivered in Word, Excel, and PowerPoint Format
  • Meets SBA Requirements

Delis are popular businesses given that they are able to provide low-cost food and beverage options to the general public. These businesses often operate in very high visibility retail centers and generate a substantial amount of foot traffic on a daily basis. Most financial institutions look to provide capital to delis given their highly predictable streams of revenue that are generated on a monthly basis. These businesses typically have ranging start up costs with the median cost being around $150,000 to start.

The gross margins generated by deli businesses can vary greatly depending on the specific type of product or service being offered. For food products, typically the gross margins range anywhere from 40% to 60%. For freshly prepared beverages gross margins are usually around 85% while sales of bottled beverages usually carry a 50% gross profit margin. Other packaged food items typically have gross margins ranging anywhere from 35% to 50%. Typically, the lowest grossing type of products in a deli are the sales of tobacco as well as lottery tickets if this is applicable to this type of business. Some delis offer tobacco products and lottery tickets as a method of driving traffic to the retail location on an ongoing basis. These businesses are generally able to remain profitable and cash flow positive in any economic climate given the fact that they offer a number of necessities to the general public. These businesses are not subject to potential automation risks that may be facing businesses in the future.

As stated above, financial institutions look to place capital with delis via a business loan or line of credit given their economic stability, large tangible asset base, large inventories, as well as the furniture, fixtures, and equipment. Of course, a deli business plan is going to be required and this document should feature a three-year profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and business ratios page. As it relates to industry research, delis throughout the United States generally in excess of $22 billion per year and provide jobs to more than 390,000 people. There are approximately 35,000 delis that are currently in operation throughout the United States. This is a mature industry and the expected future growth rate will be similar to that of the economy in general. During times of economic recession there is only a slight reduction in the amount of revenue generated by these businesses.

A deli SWOT analysis should be produced in conjunction with the business plan. As it relates to strengths, delis are almost always able to remain profitable and cash flow positive given the fact that they sell a number of in demand goods, food, and beverages at a low pricing point. These businesses typically have moderating operating costs and have moderate barriers to entry.

For weaknesses, the operating costs of these business can vary however they are usually considered moderate as discussed above. The underlying operating costs include having a high visibility retail location as well as maintaining an expansive inventory. Inventory spoilage is one of the downsides to operating a deli given that most of the food products available do have a limited shelf life. As such, an entrepreneur looking to start a new deli is going to have two maintain strict controls as it relates to their inventory acquisitions.

For opportunities, this is quite simple for deli business given that the ways that these businesses expand is typically through the establishment of additional locations. Additionally, many delis will seek to provide party trays and other small catering services in order to boost the revenues from their initial location. Outside of the development of subsequent locations, there is really not too much that a deli can do in order to boost revenues from their retail store.

For threats, the risk of automation is moderate for deli given that many supermarkets and similar convenience stores have begun testing some level of automated cashier service at these locations. However, for specialized products like freshly prepared sandwiches and beverages – this works the lease to be done by a human being. As such, the risk of automation is really not a major threat for delis for at least another 10 to 20 years.

A deli marketing plan also needs to be developed in order to make sure that the business is able to maintain a strong brand name within its local market. Foremost, many delis will distribute a number of flyers and coupons to the general public with a target market radius of 10 miles of the retail location. The target market radius for the deli may be lower in a major metropolitan area but it will typically encompass around 2 to 3 miles. These discounts, coupons, and flyers will provide incentive for individuals to come and try the new deli.

Beyond this type of print marketing, most delis to maintain an online presence so that people who are traveling or are quickly looking for a place where they can purchase food can find the business online. The delis website should showcase a location, menu, products offered, whether or not alcohol is sold, hours of operation, and contact information. This website should be listed among all major search engines so that it can be easily found by individuals that are searching on their phones or mobile devices for local eateries.

Many delis will also maintain profiles on platforms such as Yelp.com, TripAdvisor.com, FaceBook, and Google+. While it is not necessary to have a presence on social media for a deli business given that most people do not use those platforms to find these types of companies – it never hurts to boost the brand-name visibility of the business. Additionally, maintaining a presence on social media can help boost the visibility of the website among major search engines. However, if the owner decides to forego maintaining a presence on social media and there really should been no deleterious effect on the deli’s ability to generate revenues on a day-to-day basis.

One of the most important things to remember when developing a deli is that safe food handling procedures and protocols must be implemented into all aspects of the company’s operations. This is it one of the ongoing risks that are associated with delis, but through safe food handling procedures these risks can be kept to an absolute minimum. One of the nice things about delis is that they can expand their inventory offerings to include alcohol, phone chargers, toiletries, and other accessories people need on ongoing basis. These additional revenue centers can boost the visibility and profitability of the business during its first three years of operation.

Delis are one of the mainstay industries within the United States and they will continue to be popular in any economic climate given the products and services they offer. Delis are considered to be a strong’s and safe small business investment given the moderate gross margins generated from high-volume sales. The return on investment can be substantial for a deli owner that understands the needs of their local population and can provide outstanding customer service experience.