Starbucks In Iceland Business Plan Paper

Starbucks in Iceland

prepare a forecast of sales units by SKU count, forecasted in one 12 month cycle, profit anticipated and a break-down of COGS vs. SGA expenses on a broad level

here is an example of establishing Chick-Fil-A in India

Sales Potential

The forecast of sales are based on multiple factors. The population in New Delhi is 21.75 million people. Of that, 80 percent of Metropolitan Indians eat fast food at least once a week (Kashyap). So, 80 percent of 21.75 million is 17.4 million, and let’s estimate that our company gets a little less than 1 percent of the market share. 0.9 percent share of wallet is 156,600 meals per month.

12 months of 156,000 meal is 1,879,200 total sales in the first year. The average amount of a Chick-Fil-A meal is $7.00, and comes out to $13,154,400 in revenue. Purchases during the year is $1,860,000 (U.S.average revenue per store with an account of 30% cost-to-sales ratio in food industry, times 2 for higher foot traffic). Advertising comes out to $40,000 (73.1 million in total spending in 2015 divided by approximately 2200 stores, equals $33,000 plus extra revenue in new location) (Wohl). Rent is derived from estimates near Connaught Place (1,655 per month for 12 months equals about 20,000 (commercial).

Income Statement

For the Year Ended December 31, 2019

Financial Statements in U.S. Dollars


Gross Sales

$ 13,154,400.00

Less: Sales Returns and Allowances

Net Sales

$ 13,154,400.00

Cost of Goods Sold

Beginning Inventory

$ 100,000.00

Add: Purchases

$ 186,000.00

Inventory Available

$ 196,000.00

Less: Ending Inventory

$ –

Cost of Goods Sold

$ 196,000.00

Gross Profit (Loss)

$ 1,119,440.00



$ 40,000.00

Charitable Contributions

$ 50,000.00


$ 20,000.00

Contract Labor

$ 10,000.00

Employee Benefit Programs

$ 250,000.00


$ 78,00.00

Legal and Professional Fees

$ 10,000.00

Licenses and Fees

$ 5,000.00


$ 2,000,000.00


$ 20,000.00


$ 10,000.00


$ 2,400.00

Corporate Income Tax (40%)

$ 3,427,600.00


$ 200,000.00

Total Expenses

$ 6,052,800.00

Net Operating Income

$ 5,141,600.00

Other Income

$ –

Gain (Loss) on Sale of Assets

$ (750,000.00)

Interest Income

$ –

Total Other Income

$ (750,000.00)

Net Income (Loss)

$ 4,391,600.00

$4,391,600 dollars is an above average profit margin that is attributed to two reasons. First, because of the large population in New Delhi (21.75 million people). And secondly, because the rent and utilities in New Delhi are much cheaper in the United States. We used rent estimates from properties near Connaught Place, a high traffic area in New Delhi. Connaught Place is a large global business hub, perfect for introducing a first Chick-Fil-A store. The projected profit is above the average ($3.1 million dollars) of Chick-fil-As in the United States.

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