A Daiquiri shop or restaurant is a business that prepares and serves different flavors of Daiquiri and other drinks. Daiquiri is a family of cocktails whose main ingredients are rum, citrus juice (typically lime juice), and sugar or other sweeteners. A wide variety of alcoholic mixed drinks made with finely pulverized ice are often called frozen daiquiri.
These drinks can also be combined and poured from a blender, eliminating the need for manual pulverization and producing a texture similar to a smoothie. On larger scales, such drinks are often commercially made in larger machines, and come in a wide variety of flavors made with various alcohol or liquors.
Steps on How to Start a Daiquiri Shop
Table of Content
Conduct Market Research
If you are considering starting a Daiquiri shop, you would need reliable market research to be able to maximize profits from the business. The first step in the market research process is to develop market-based research questions in line with your overall business goal and objective.
In this regard, you should source information that will help you maximize your business, information that will give you a clue on what your potential market will be looking out for from a Daiquiri shop, and also help you operate your Daiquiri shop with less stress ad more profit.
a. Who is the Target Market for Daiquiri Shop?
- Facility managers
- Event Planners
- Tourists
- Everyone who resides in the location where you intend to sell your daiquiri cocktail.
b. Is Daiquiri Shop a Profitable Business?
Yes, the Daiquiri shop is a profitable business. Rear Admiral Lucius W. Johnson, U.S. Navy medical officer introduced Daiquiri cocktail to the Army and Navy Club in Washington, D.C. and the drink became quite popular.
c. Are There Existing Niches in the Industry?
No, there are no existing niches when it comes to Daiquiri shops, but a Daiquiri shop may decide to specialize in unique flavors such as;
- Strawberry Daiquiri – a blender drink of puréed whole strawberries, rum, cane sugar, and lime juice
- Old Rose Daiquiri: strawberry syrup and rum along with two teaspoons of sugar and lime juice
- Mulata Daiquiri: rum mixed with either coffee or chocolate liqueur and with fresh lime juice and sugar syrup
- Hemingway daiquiri (Hemingway Special) – or papa doble – two and a half jiggers of white rum, juice of two limes and half a grapefruit, six drops of maraschino liqueur, without sugar.
- Avocado daiquiri – regular daiquiri with half an avocado.
- Strawberry daiquiri by Rey del Mojito
- Banana daiquiri – regular daiquiri with half a banana.
d. Who are the Major Competitors?
- Voodoo Queen Daiquiri Dive
- Daiquiri Explosion
- The Daiquiri City
- Daiquiri Shack
- New Orleans D & W
- Candy Shack Daiquiri
- Nawlins D-Shop
- Blends Daiquiri Lounge
- Big Easy Daiquiris
- KC Daiquiri Shop Bistreaux
- Bayou Daiquiris
- The Daiquiri Depot
- Daiquiri Daddi Cafe.
e. Are There County or State Regulations or Zoning Laws for Daiquiri shops?
Yes, there are county or state regulations and zoning laws for Daiquiri shops. Players in this industry are expected to work with the existing regulations governing such business in the county or state where the business is domiciled.
It is important to state that in the United States, government agencies and departments routinely grant variances to rules and regulations. Often, you only have to fill out a short form. In other cases, your request may have to be publicly heard before your city council, zoning board, or other body. Please check with your zoning or planning department to find out what options are available to you.
f. Is There a Franchise for Daiquiri Shop?
Yes, there are franchise opportunities for Daiquiri shops, and here are some of them;
- Eskimo Hut – Daiquiris & Margaritas To-Go Franchise
- Wet Willies
- Daiquiri Express Franchise.
g. What Do You Need to Start a Daiquiri Shop?
- A Feasibility Report
- Business and Marketing Plans
- Business Licenses and Permits
- Restaurant Facility
- Insurance
- EIN (Employer Identification Number)/Federal Tax ID Number.
- A Corporate Bank Account
- Employees
- Commercial Kitchen
- Fruits, Ingredients, and Packaging Materials
Memorable Business Name ideas for Daiquiri Shop
- Frito© Daiquiri Shop, Inc.
- Danny Beck® Daiquiri Restaurant, LLC
- Jay© Daiquiri Shop, Inc.
- Drink Solutions® Daiquiri Shop, Inc.
- Drink King™ Daiquiri Shop, Inc.
- Green Thirst™ Daiquiri Shop, LLC.
- Cocktail Zone© Daiquiri Shop, LLC
- Drink Guys® Daiquiri Shop, Inc.
- Star Serve© Daiquiri Shop, Inc.
- Drink Life© Daiquiri Shop, Inc.
- Leafy Green® Daiquiri Company, LLC
- Grace Made® Daiquiri Shop, LLC
- Twenties Twenty™ Daiquiri Shop, LLC
- Creamy Taste© Daiquiri Shop, Inc.
- Sun Rise® Daiquiri Shop, Inc.
- Drinks and More™ Daiquiri Shop, Inc.
- Drink Depot™ Daiquiri Shop, Inc.
- Lauren King© Daiquiri Shop, Inc.
- Chil Serve® Daiquiri Shop, LLC
- Golden Cup™ Daiquiri Shop, Inc.
Register Your Business
a. What Type of Business Structure is Best for Daiquiri Shop?
Even though there are several options such as sole proprietorship, partnership, limited liability company (LLC), and corporation, when it comes to the business structure of a Daiquiri shop, players in this line of business consider an LLC.
It is common to consider an LLC because providers want to protect themselves from lawsuits. Please note that an LLC will need an EIN if it has employees or if it will be required to file any of the excise tax forms listed below.
b. Steps to Form an LLC
- Choose a Name for Your LLC.
- File Articles of Organization.
- Choose a registered agent.
- Decide on member vs. manager management.
- Create an LLC operating agreement.
- Comply with other tax and regulatory requirements.
- File annual reports.
c. What Type of License is Needed to Open a Daiquiri Shop?
- General Business License
- Zonal Permits
- Signage Permit
- Proof of ownership, proper identification, and vehicle license
- Proof of district-issued food manager identification card
- Food purchase record storage and record-keeping
- Depot, commissary, or service support facility meets vending unit operation needs
- Copy of license for the service support facility and/or a recent inspection report.
d. What Type of Certification is Needed to start a Daiquiri Shop?
You don’t need any certifications to start a Daiquiri shop.
e. What Documents are Needed to Open a Daiquiri Shop?
- DBA
- EIN
- Business and liability insurance
- Federal Tax Payer’s ID
- State Permit and Building Approval
- Certificate of Incorporation
- Food Handlers’ License
- Business License
- Business Plan
- Employment Agreement (offer letters)
- Operating Agreement for LLCs
- Insurance Policy
- Online Terms of Use
- Online Privacy Policy Document
- Contract Document
- Company Bylaws
- Memorandum of Understanding (MoU)
f. Do You Need a Trademark, Copyright, or Patent?
If you are considering starting a Daiquiri shop, usually you may not have any need to file for intellectual property protection or trademark. This is because the nature of the business makes it possible for you to successfully run it without having any cause to challenge anybody in court for illegally making use of your company’s intellectual properties.
Cost Analysis and Budgeting
a. How Much Does It Cost to Start a Daiquiri Shop?
The startup cost of a Daiquiri shop is not uniform, some factors can influence the cost. But basically, a Daiquiri shop will cost from $50,000 – $250,000 to start and that can easily go higher depending on your overall business goals and objectives.
b. What are the Cost Involved in Starting a Daiquiri Shop
- The total fee for registering the business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines, and other software) – $1,300.
- Marketing promotion expenses for the grand opening for $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of – $3,580.
- The cost for hiring a business consultant including writing a business plan – $2,500.
- Insurance coverage at a total premium – $2,400.
- Other start-up expenses – ($2,500).
- Operational cost for the first 3 months (salaries of employees, purchase of gas, payments of bills et al) – $60,000
- The cost for start-up inventory (fruits and ingredients, other drinks and packaging materials et al) – $5,000
- The cost of storage hardware (bins, rack, shelves, food case) – $3,720
- The cost for counter area equipment (countertop, sink, ice machine, etc.) – $5,500
- The cost for store equipment (cash register, security, ventilation, signage) – $3,750
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $10,000.
- The cost of launching a website – $600
- The cost for opening party – $5,000
- Miscellaneous – $5,000
c. What Factors Determine the Cost of Opening a Daiquiri Shop?
- The size of the Daiquiri shop
- The choice of location
- The required licenses and permits
- The cost of hiring and paying a business consultant and attorney
- The cost for branding, promotion, and marketing of the Daiquiri shop
- The cost for furnishing and equipping the Daiquiri shop
- The cost for insurance policy covers
- The cost for registering the business
- Cost of recruiting and training your staff
- The cost for the purchase and customizing of uniforms
- The cost for the grand opening of the Daiquiri shop
d. Do You Need to Build a Facility? If YES, How Much Will It Cost?
Actually, it is not compulsory to build a new shop facility for your Daiquiri shop. This is so because the nature of the business makes it possible for you to rent or lease a facility.
e. What are the Ongoing Expenses of a Daiquiri Shop?
- Fruits, ingredients, and serving materials
- Gas
- Utility bills (internet subscriptions, phone bills, signage and software renewal fees et al)
- Salaries of employees
- Trucks maintenance
- Insurance
- Marketing costs
f. What is the Average Salary of your Staff?
- Chief Operating Officer (Owner) – $38,000 Per Year
- Manager – $30,000 Per Year
- Kitchen Staff – $26,500 Per Year
- Attendants – $26,100 Per Year
- Cleaners -$24,000 Per Year
g. How Do You Get Funding to Start a Daiquiri Shop?
- Raising money from personal savings and sale of personal stocks and properties
- Raising money from investors and business partners
- Sell shares to interested investors
- Applying for a loan from your bank/banks
- Source for soft loans from your family members and friends.
Write a Business Plan
a. Executive Summary
Drink Depot™ Daiquiri Shop, Inc. is a standard cocktail bar business that will be based in Fort Lauderdale – Florida, USA; a business that covers a wide range of clients. We are a unique daiquiri cocktail brand because we do not just sell different flavors of daiquiri drinks, but we will also engage in the sale of our franchise.
We will ensure in our daiquiri shop business pay major emphasis on the quality of fruits we use. We will get the organic fruits in bulk from trusted wholesale fruit suppliers who would give us the best quality imported flavors et al.
b. Products and Service
- Different flavors of Daiquiri
- Food and Snacks
c. Mission Statement
Our mission is to build a Daiquiri shop that will meet the needs of our customers in the regions/cities where we will cover and to sell franchises all across the United States of America and Canada.
Vision Statement
Our vision is to become one of the preferred choices for individuals and organizations when it comes to Daiquiri cocktail drinks in the whole of Fort Lauderdale – Florida.
d. Goals and Objectives
The goals and objectives of a Daiquiri shop are to prepare and serve healthy daiquiri cocktail drinks to patrons in a safe and friendly environment ideal for networking.
e. Organizational Structure
- Chief Operating Officer (Owner)
- Manager
- Kitchen Staff
- Attendants
Marketing Plan
a. SWOT Analysis
Strength:
- Excellent operational history
- Superb menu list
- Experience and trained professionals.
- Well-equipped shop facility.
- Excellent customer testimonials.
- Availability of different flavors of daiquiri cocktail drinks.
Weakness:
- The owner is new to large scale marketing
- Will need a loan to purchase the latest commercial kitchen equipment
- The owner is currently running the business solo
- Lack of economies of scale.
Opportunities:
- Growing outdoor activities
- Build upon existing clientele
- Online market, new services, new technology, and of course the opening of new markets.
- Increase in the numbers of families who would want to patronize daiquiri cocktails.
Threat:
- Loans diminish profitability until they are paid off
- The first year will be financially tight while we gain customers and pay off loans
- Competition in the area could increase
- Management of employees requires time, money, and efforts
- The regulatory department could change its regulatory status and decide to enforce strict regulations that can strangulate new business.
b. How Do Daiquiri Shops Make Money?
Daiquiri shops make money by selling different flavors of daiquiri cocktails, drinks, and snacks.
c. Payment Options
- Payment via bank transfer
- Payment with cash
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
d. Sales & Advertising Strategies
- Introduce your daiquiri shop brand by sending introductory letters to residents, park managers, and other stakeholders in and around the city you intend to cover.
- Open your daiquiri shop with a party to capture the attention of residents
- Advertise your daiquiri shop in community-based newspapers, local TV and radio stations
- List our business and products on yellow pages ads (local directories)
- Leverage on the internet and mobile apps to promote your daiquiri shop brands
- Engage in direct marketing and sales
- Deliberately brand your food truck
- Encourage the use of word-of-mouth marketing (referrals)
Financial Projection
a. How Much Should You Charge for your Product/Service?
Most Daiquiri shops charge based on the quantity of drink sold and it could range from $1 and above.
b. How Much Profit Do Daiquiri Shop Owners Make a Year?
It depends, but available reports show that on average, a Daiquiri shop should net more than $70,000 per year assuming steady clientele.
c. What Factors Determine the Amount of Profit to Be Made?
- The capacity of the Daiquiri shop
- The location of the Daiquiri shop is covering
- The management style of the Daiquiri shop
- The business approach of the Daiquiri shop
- The advertising and marketing strategies adopted by the Daiquiri shop.
- The number of years the Daiquiri shop is in business
d. What is the Profit Margin of a Daiquiri Shop?
The profit margin of a Daiquiri shop is not fixed. It could range from 25 percent to 55 percent.
e. What is the Sales Forecast?
Below is the sales forecast for a Daiquiri shop. It is based on the location of the business and other factors as it relates to such startups in the United States;
- First Fiscal Year: $220,000
- Second Fiscal Year: $380,000
- Third Fiscal Year: $450,000
Set Up your Shop
a. How Do You Choose a Perfect Location for Daiquiri Shop?
- The demography of the location
- The purchasing power of businesses and residents of the location
- Accessibility of the location
- The number of Daiquiri shops and cocktail outlets in the location
- The local laws and regulations in the community/state
- Traffic, parking and security et al
b. What State and City are Best to Open a Daiquiri Shop?
- Salt Lake City, UT
- Saint Joseph, MO
- Port Allen, LA
- Rock Hill, MO
- Atlanta, GA
- West Sacramento, CA
- West Chester, OH
- Austin, TX
- Westbrook, ME
- Idaho Falls, ID
c. What Equipment is Needed to Operate a Daiquiri Shop?
You will need juice extractors, fruit press, deep freezer et al. You will also need computers or laptops, internet facility, telephone, fax machine, and office furniture (chairs, tables, and shelves) amongst others and all these can be gotten as fairly used.
Hire Employees
When it comes to hiring employees for a standard Daiquiri shop, you should make plans to hire a competent chief executive officer (you can occupy this position), manager, kitchen staff, attendants, and cleaners.
Launch the Business Proper
In recent times, no Daiquiri shop opens its door for business without first organizing an opening party to officially launch the business. You can choose to do a soft opening if you are operating on a low budget or you can go for a grand opening party.
The bottom line is that with a proper launching of the Daiquiri shop, you will be able to officially inform people in your city that your Daiquiri shop is open for business.
a. What Makes a Daiquiri Shop Successful?
- Choose a good location, and a good menu to launch the business
- Hire only competent, hardworking, and trustworthy staff
- Throw an open house party before officially opening the Daiquiri shop
- Be deliberate with your marketing sales approach
- Encourage the use of word of mouth to promote your Daiquiri shop
- Leverage on all available online and offline platforms to promote your Daiquiri shop
b. What Happens During a Typical Day at a Daiquiri Shop?
- The business is open for the day’s work
- The facility and equipment are cleaned and ready for business
- Daiquiri cocktails and other drinks are prepared
- Customer’s requests are taken and they are attended to
- Marketing/website upkeep
- Supply ordering
- Administrative duties
- The business is closed for the day.
c. What Skills and Experience Do You Need to Build a Daiquiri Shop?
- Good culinary skills
- Good driving skills
- Customer services skills
- Interpersonal skill
- Business management skills
- Work experience in a cocktail shop or drinks and food industry
- Experience in managing people
- Experience in business administration
- Experience in handling relevant software.