Gary’s New York Bagel Shop

Towson SquareTowson, MD

Principles: Gary Spector

Date: December 12, 2011

Executive Summary

The Four C’s

Customer: My business will mainly be targeting the college students in

Towson, but my business is not exclusive to them by any means. There are also

many families that live in Towson, so they will also be target customers for my

business.

Consideration: My business is offering a cheap, easy to get, delectable meal. It is

very simple I am bringing the New York style bagel down to Towson for this

community to enjoy.

Connection: The four P’s is the most efficient to break down my connection.

Product: My business is selling a variety of bagels. I will also be selling breakfast

sandwiches, which is bacon/ham, egg, and cheese on the customers’ choice of bagel.

I will also be selling a variety of drinks with the bagels.

Place: My business will be place right in the center of Towson. This is a good place

because there aren’t many competitors in the area. Also like I said college students

would be my main customers, and since bagels are cheap my target customers

should be easy to reach with price.

Promotion: To promote my business I will simply put flyers around the town and

campus, and I will also try and sponsor events in the area. I’m also word of mouth

helps promote my business.

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Price: Bagel at my business will go for seventy-five cents a bagel and an additional

fifty cents for any spread, and the breakfast sandwiches will go for three dollars and

fifty cents.

Company Description

My business is bringing the New York style bagel to Towson, that’s what will

separate me from the competition. My prices will also be better then the

competitions and this will also give me a step on my competitors. I am giving my

customers the New York bagel experience. The great taste of my bagels will bring in

the business for my business. Also with the breakfast sandwiches customers will be

drawn to be store because it is a quick, easy, hardy meal. My business will make

money from people who are on the move and hungry. At first to market and

promote my business I am just going to post flyers around town and on campus.

With the great taste of my bagels I am sure word of mouth will also do plenty of

promoting for me.

I am very aware of diversity in the world today and the importance of it. I

will make sure that diversity is recognized by all of my employees and in my

marketing.

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Table of Contents

The Business Opportunity and Market Niche 1

The Company 5

Competitive and Industry Analysis 8

Marketing Plan 11

Operational Plans and Requirements 12

Human Resource Plan 13

Business Structure and Regulatory and Legal Requirements 15

Bibliography 17

The Business Opportunity and Market Niche

Business Opportunity

For my business opportunity I’m looking to open a bagel shop. My main

reason for choosing this business is that I look at bagels as a convenient snack, meal,

whatever you want to call it, and I haven’t seen any real bagel shops in Towson.

When I say real bagel, I mean a classic New York City water bagel, which are bagels

made in water from New York City. The reason the bagels from there are so good is

because the water they are made in gives them their famous taste. My idea for

selling this delicious food choice is I would have a store front in town where the

bagels are made and people would come in and buy the bagels right there. This is

the set up of almost every bagel shop I know of up in northern New Jersey and New

York and it seems to work extremely well for them.

The Four C’s of Business Opportunity

In the four C’s I am going to go over who my customers are, what my

considerations for the business are, my connection to the business, and my

commitment.

Customer: Towson, being a college town my main consumer would be college

students. Bagels are a cheap, filling, and quick meal it sounds like the perfect meal

for any college student. So outside of college students my business can sell to

anybody else who is also looking for a similar meal.

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Consideration: Bagels are a cheap, easy to get, delicious meal. There’s nothing not

to like about it. Personally I think bagels are one the best foods to have because of

all the things I have just said and it’s a meal you could have at anytime of the day.

Sure bagels are looked at more as a breakfast food, but I wouldn’t say it’s just a

breakfast food at all. The bagels I would be selling would be New York City style

bagels and that’s what I want the customers to experience when the get a bagel from

my bagel shop, a real NYC bagel.

Connection: I’m going to break down my connection into the four P’s below.

Product: Out of my bagel shop clearly I would be selling bagels, but that wouldn’t be

it. I would also sell a variety of drinks, soda’s, juices, and coffee. Another food

product I could sell along with a variety of bagels would be a muffin.

Place: I have noticed that there are several open storefronts in Towson so I would

start my business out of one of those. I believe Towson is a good place to start my

business because like I said I haven’t seen any bagel shops in town and I believe a

bagel is a meal that college students would eat often because if all the reasons I

mentioned earlier.

Promotion: To promote my business I would post flyers around campus and the

town and depending on how much money I have to start I would try to sponsor

events on campus as well.

Price: I would sell my bagels for the same price as I get them at home. It would be

seventy-five cents for a plain bagel and fifty more cents for a spread. You can also

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order a bagel with bacon/ham, egg, and cheese, which would cost three dollars and

fifty cents.

Commitment: Since I don’t know anything about making bagels I would hire

experienced people to do that and I would look into learning how to make bagels my

self. I would focus on promoting the business and bringing in customers. The

reason I would like to open a bagel shop besides thinking it’s a good opportunity is

that bagels have always been a part of my life growing up in northern New Jersey

out side of New York City. Having bagels as a breakfast on Sundays is basically a

tradition for my family.

Description of Customers:

As of 2009 Towson has a population of 21,051 people, there are 7,227

households and 3,363 of them are families. The population of Towson is rising at an

annual rate of .5 percent. In Towson 81.8 percent of the population is White, 11.1

percent is Black, 4.6 percent is Asian/Pacific, and 3.4 percent is of Hispanic origin.

Towson has a relatively young population with 87.5 percent be older then 18.

Sixteen percent of the population is between the ages of 15 and 19 years old, 17.1

percent is between the ages of 20 and 24, 18 percent is between 25 and 44 years

old. The median age of Towson is 32 years old. In 2009 31.8 percent of Towson

was earning 50,000 to 99,999 dollars per year. Outside of that 38.8 percent of the

city is making less then $49,999 per year and 29.5 percent is making more the

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$100,000 per year. For spending potential Towson is above average by a good

amount in every category, but for most importantly they have a 141 in the dine

out/carry out area which would be good for my business.

Community Sourcebook of Zip Code Demographics23rd EditionCopy write © 2009 ESRI

Buying Motives:

People are going to want to but my product because there are no other

bagels in the area that will taste as good and they are also cheap. It’s a higher

quality bagel for a cheap price. If someone needs to go get a quick meal then they

can just stop buy my bagel shop and their quick meal for a cheap price. For the kind

of business I’m running I don’t think their needs to be other buying motives.

Diversity Considerations Affecting the Market:

Being a bagel shop I don’t believe there is any diversity with gender, race, or

and other kind of diversity out there. It’s just a place to get a quick cheap snack,

meal, cup of coffee, or maybe just a drink. With that I don’t think is and type of

diversity that would affect my business in any way.

Environmental Conditions

I’ve noticed that Towson doesn’t have a lot of parking and this lack of parking

could put some potential customers away. Based on the Community Sourcebook of

Zip Code Demographics the population in Towson is above average in dinning out

which could help my business.

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Location:

The Company

Vision

To become the best bagel shop outside of the New York City area by using

techniques and the water from that area. With offering a bagel the quality of the

ones up in New York aspirations are to bring that great tasting bagel into another

part of the country.

Mission Statement

To sell incredible tasting bagels for a low price in a quick order, grab, and go

fashion. To give all of my customers a good experience with no hassle. To provide a

comfortable atmosphere for all of my employees and customers. By maintaining

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these objectives this business will succeed and will be a contributing part of the

Towson community.

Company Background

This is a business start up so there is no company background up to this

point in my business. As for knowledge of running a business I have a little insight

from talking to my father who owns his own business, but outside of that this is just

a start for me.

Description of Business Model

My business is different from the competition because I will be providing a

New York bagel. I know that providing a better tasting bagel will set me a part from

the competition in the area. Another aspect that will set me a part from the

competition will be my prices. I have looked at the competitions prices and they are

more expensive then any bagel I have ever gotten at home. I think the reason for

this is the lack of competition in the area, so I will be selling bagels for the proper

price, and not over charging my customers. A plain bagel will be seventy-five cents,

to add any spread on to a bagel will cost the customer an additional fifty cents. If the

customer wants a breakfast sandwich (bacon/ham, egg, and cheese) that will cost

them three dollars and fifty cents. Having lower prices and better tasting bagels will

definitely set me apart from the competition.

Product/Service Description

What I am offering to the customer is a New York City Bagel experience.

They have the reputation of being the best bagels in the world and I would have to

agree with that. The bagels my business provides will bring that great New York

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bagel taste down to Towson. I am also offering bagel breakfast sandwiches to my

customers; bacon, egg, and cheese or ham, egg and cheese on a bagel of your choice

would be the options for the sandwiches. My business is also going to offer a variety

of drinks. I will be providing sodas, juices, water, and freshly made hot coffee.

Business Issues and Responses

The first business issue I will go over is health insurance reform. Being such

a small business it really isn’t in my best interest to offer health care for my

employees. The “insurance exchange” from the new health care wont be put into

effect until 2014, so when that time comes around I would consider offering health

care based on the wellness of my business and the extra costs it would require me to

pay. Not offering health care to my employees could make the search for employees

a little more difficult, but at this stage in my business I need to keep costs to a

minimum.

Next I will talk about sustainability. I will do my best to make my business a

“green” business. To do so along with having a garbage can in the store there will

also be a recycling bin right next to it. For the social aspect of sustainability I want

my business to be a part of the community in Towson. To do so I will be open to

sponsoring events that people have. This will not only make me part of the

community, but it is also a good way for me to get my name out there.

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Competitive and Industry Analysis

Identification and location of Competitors

In Towson there are two main competitors with my business, Towson Hot

Bagels, and Einstein Bros. Bagels.

Towson Hot Bagels

Einstein Bros. Bagels

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Strategy, Financial and other Capabilities of Competitors

Towson Hot Bagels

For Towson Hot Bagels this business brings in a little less then $500,000 for

their yearly revenue. On staff Towson Hot Bagels has around one to four people on

staff at a time. Other then a bagel business Towson Hot Bagels also list themselves

as a deli which will be something difficult for me to compete with, but I am having

my business focus on the bagel quality more than anything. Another thing my

business will have to cope with in the beginning is that Towson Hot Bagels is a

known business in the town already, so that will be something my business will

need to overcome in the early stages.

Einstein Bros . Bagel

The annual revenue brought in by Einstein Bros. Bagels is between $500,000

and one million dollars. They carry between ten and nineteen people on their staff

at a time. Also like Towson Hot Bagels, Einstein Bros. Bagels also has its name out

there already some my business will need to overcome that for this business as well.

In my opinion though the biggest issue for me to compete with is that Einstein Bros.

Bagels in literally on the Towson University campus. By being on campus they are

easily the most convenient bagel store for Towson students. I’m not too worried

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about that because Einstein Bros. Bagels is almost exclusive to Towson students

where my business will also provide to the locals who live in Towson. So while

taking some off my business just by convenience I will still be serving a larger

market, which includes Towson students.

Competitive Requirements in the Industry

In theses times it seems nearly impossible for any business in any field to run

with out a website. So with that building a website for my business will be a

necessity for my business to compete. To compete clearly I will need to advertise

my business to the community, which I will be doing simply will flyers and word of

mouth at first.

Identification of Trade Groups and Trade Publications

For trade groups I identified two that I should be aware of, the National

Restaurant Association, and the Restaurant Association of Maryland, Inc. With

these to trade groups my business gets represented nationally with the National

Restaurant Association and recognized within the state with the Restaurant

Association of Maryland, Inc.

As for trade publications I was able to find many in that area. There is Food

Management, Restaurant Finance Monitor, Restaurant Hospitality, Nations

Restaurant New, Food Service, and there are many more outside of that. Each of

these publications gives advice and insight on how to make your restaurant a

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successful one. Whether it’s giving advice on ways to save money or how to

advertise in a more effective way.

Marketing Plan

Description of Products and Prices

What I am selling in my business is very simple, bagels. There will be a

variety of bagel to choose from. Just to name a few of them, plain bagel, poppy seed

bagel, sesame seed bagel, and whole-wheat bagels, which will be priced at seventy-

five cents apiece. As I mentioned earlier customers can also order bacon/ham, egg,

and cheese sandwiches that will cost three dollars and fifty cents.

Distribution of Products

The distribution process for my business will simply be having customers

coming into the store. It’s nothing complicate at all just like many businesses in the

food trade my customers will just be coming into my store, ordering, and receiving

my product right there.

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Operational Plans and Requirements

Identification of Facility location and Necessary Equipment

Equipment/ Supplies Prices

Dough Mixer $5,000

Bagel Kettle $2,000

Bagel Divider $7,500

Oven $12,000

Display Refrigerator $1,100

Two counter top induction cookers $300

Display Case $4,000

Cash Register $300

Sodas/juices $22/case

Water $15/case

My business will be located in Towson Square on York Road. This is a good location

because it is in a visible spot, for customers to see my business and it is closer to

Towson University then Towson Hot Bagels. That makes it a good location because

my bagel shop will be more convenient then theirs. Necessary equipment is

equipment to make bagels and something hot to cook eggs on. The equipment

needed to make bagels is a dough mixer, a kettle, a bagel divider, and an oven, and I

will have two countertop induction cookers to cook the eggs. Other equipment my

business will need is a display refrigerator for the drinks, a display case for the

bagels, and cash register.

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Costs

Below is a chart showing the prices of my equipment and supplies.

Flour $26/bag

Salt $2/can

Start-up Costs

To start up my bagel business it will cost me approximately $44,500 and this

including rent for my business place in Towson Square came out to $12,000.

Human Resource Plan

Number of Employees

Having such a small business I won’t need to hire many employees. For my

business I am thinking of having around four employees at the business each day so

in total eight employees. I figure I will have three working in the back making

bagels and pre-pairing sandwiches, and then one person to work the cash register.

Skill Requirements

I would like for at least three of my employees in the store at a time to know

how to make bagels. If all four of my employed persons know how to make bagels

that would be great, but I will only be looking to have three with that knowledge.

Knowing how to work the cash register will also be a skill requirement for my

employees. This way no mater what there is always someone there who will be able

to take care of the customers.

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Diversity Management

I want my business to have a good working environment and I feel in order

to have that all employees must be aware and comfortable with diversity. If all

employees aren’t I believe that having a good working environment would be

difficult to have. So I will be teaching my employees about diversity to make all of

them comfortable and aware of it.

Salary Levels

My employees who will be working in the back making and preparing the bagels will

be earning a higher salary then the employee who works the register on a daily

basis. However if that employee does know the preparation process of making

bagel that person will then earn a higher salary, not as high as my employees

making the bagels, but they will be earning more then they would otherwise.

Training Programs

I will be providing my own training program to my employees. My program

will include diversity awareness, how I expect customers to be treated, and how I

would bagels to be prepared. There will be a lot more detail on this when I actually

write my training program.

Evaluations and Performance Monitoring Procedures

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I plan on being at my business everyday so their performance will be

monitored everyday. Evaluations will be based on how well they are treating

customers and the quality of the bagels being made. Based on his or her jobs each

person will be evaluated differently.

Dismissal Procedures

In the unfortunate instance that I have to dismiss an employee I want it to

very clear-cut that they what they did was against business policy and they deserve

to be let go.

The list of things one can do in order to be dismissed isn’t a very long one,

and everything on it does cause for one to be dismissed from my business.

- Mistreating a customer

- Using unsanitary procedures to produce bagels or any other type of food

- Stealing from the business in any way

- Not accepting diversity in the work place

- Showing up for work late consistently

Business Structure and Regulatory and Legal Requirements

Form of Ownership

I will be running a solely owned business. I will be the only owner and the

only one in charge of my employees. As of now I have no plans of expanding my

business, it appears I will be the only owner of this business for some time.

Licensing, Zoning, and other Legal Requirements

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As anyone would imagine I can across quite a few legal requirements, way to

many to name all of them. I sure I came across a regulation for basically anything a

business might encounter. There are Health regulations, Employment regulations,

as in age limits of hiring employees, which is fourteen in the state of Maryland, Pay

day requirements, which is bi-weekly in Maryland. There is a minimum wage

regulation, which is seven dollars and twenty-five cents, sales tax requirement,

which is five percent. I will need to register for local, state, and federal taxing of my

business. For my business I will need to acquire a state permit to operate my

business. This isn’t even the half of them, but I covered what I would consider to be

“the main” regulations, even though every single one is extremely important.

Regulatory Authorities

Of course with all of those regulations there are several authorities in-charge

of these regulations. Just like the regulations I am just going to name a few of the

authorities of these regulations. There is the Maryland Department of Assessments

and Taxation, and the name is pretty self-explanatory here, they are in-charge of

assessments and taxations in the state of Maryland. The Maryland Department of

Labor, Licensing, and Regulation is in-charge of employment regulations, pay- day

regulations, and other regulations regarding employees and working. This

department also handles un-employment in the state of Maryland.

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Community Sourcebook of Zip Code Demographics23rd EditionCopy write © 2009 ESRI

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Towson Hot Bagelshttp://www.google.com/maps/vt/data=Ay5GWBeob_WIPLDYoIWcfVXxvZu9XwJ55OX7Ag,z38_Zaqwz6BbfoqOHp8PG0MtbDRWtljomfwCwudQ65xN-JzAz0ulfQNIrVwDK15qLuCdLkHlUIjhr-hLH2NL-BCfxRvGAVttKjc-fhvv4XmKOwk80W94FW0iXNk7KXM6iJRDfw

Einstein Bros. Bagelshttp://www.google.com/maps/vt/data=Ay5GWBeob_WIPLDYoIWcfVXxvZu9XwJ55OX7Ag,FYTgreGpYZLvcW8nD1ll4apZn4tVYlYZ9OBT27gFhM1vnrL0tX8BAPym0-vyyUICjOK0U_DD5-hf9IWeAJHerJ2iFsFo8E_cL6YC6_LaASFkqo6us1P0st6QvghD4nsyNNvS7A

Towsonhttp://www.kathmandu-kitchen.com/image/25273405.gif

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