carbon the soda bar business plan

A Concept By:Ankur Naik, Joche Angbazo, John Coates,

Natalie Costa, and Sam Griffith

2 | Carbon: The Soda Bar

IntroductionDescription of ConceptMission StatementConsumer and Market AnalysisPro Forma FinancialsMarketing Plan Pricing and Position Strategy Menu Interactive Interface Marketing Materials Social Media Strategy Additional ContentStore Design Interior ExteriorConclusionBibliography

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IntroductionRemember the times as a kid when you tried to make your own soda, walking up to the giant soda machine and moving through the line, adding every flavor to your cup before sitting down for your meal? What if we told you that we could bring that childhood creativity back into your life? Carbon is a soda bar meant for the millennials. With an assortment of syrups lining the wall, customers are encouraged to create their own blend while enjoying the social aspects of a bar.

Our team consists of five students at the University of Maryland, College Park. Leading our team is Ankur Naik, who is a senior Marketing major. He can be contacted at [email protected], or 301-518-0982. The rest of our team is made up of:

• Samantha Griffith, a junior Marketing and Supply Chain Management double major ([email protected])

• John Coates, a junior Marketing and Operations Management & Business Analytics double major ([email protected])

• Joche Angbazo, a junior Marketing major ([email protected])• Natalie Costa, a junior Marketing major ([email protected])

Together, we feel that the “make your own” idea of Carbon will reconnect everyone’s love of soda with the “I did it myself” mentality all millennials love.


Description of ConceptCarbon will encourage consumers to take soda making into their own hands. When you enter Carbon, the walls will be lined with soda syrup dispensers, with a button meting out a full shot, half shot, or quarter shot. Customers can combine soda flavors from a wide variety of soda syrups — from simple classics such as cherry, cola and lime to more exotic flavors such as saffron, lavender and chutney. These soda syrups are made naturally, using only authentic ingredients, essential oils, natural flavorings and cane sugar. Once the customer has poured two shots worth of syrup into their cup, they can then go to the “carbonation station” where they will add the carbonated water and bring their soda to life. This will consist of various levels of carbonation, from heavy carbonation to light carbonation. There are also tables where consumers can sit and mingle, with an open and spacious environment encouraging conversation amongst guests. Shareable bar items will be served as well.

All payment will be done through “scan-cards” that consumers will be given once they enter the store. They will use this card to touch pads on the tables (for food orders) or a cup dispenser (for soda mixes) to receive their items. These purchases are recorded on the card and before leaving, the customer must return their card and pay the balance.

Customers will pay once to receive a cup in which they can pour unlimited soda during their current stay. The cup will be priced at a flat $4 rate which is priced to be competitive to the costs of premium drinks at similar locations. Due to the fresh and natural ingredients used, we believe consumers will be willing to pay this amount for the sodas. Due to the relatively low cost of producing a simple soda syrup mix, this will give us significant profit potential. If consumers wish to receive a new cup, they can put their used cup into a slot to receive a fresh new cup at no additional charge.

Consumers will choose Carbon not only because of the fun and childlike concept, but because of the experience that the lounge provides. It is no doubt that the millennial generation is one that enjoys expanding their social network, as they grew up with the rise of Facebook, Twitter, and Instagram. Carbon allows consumers to kickback, relax, and tap into their inner childlike sense of carefree exploration and experimentation, as well as share in this experience while building a community. This is a combination that our competitors simply cannot match.


Our concept for the soda bar is timeless because soda has and will continue to be a large part of consumers’ daily diet. Our new spin on the age old product will allow consumers to continue to enjoy soda in a fresh and innovative way. Coupled with the bar experience, Carbon is a mixture of new tastes and new experiences which will keep millennials coming back for more.

Mission StatementOur mission at carbon is to create a social atmosphere where adults can kick back, relax and enjoy the great taste and healthy spin on customized soda.


Consumer and Market AnalysisPrimary ResearchWe conducted a survey through the website survey monkey. Over 10 days we received 92 total responses. We received 64 responses from women and 28 from men. While the response varied from 18-years-old to 74-years-old, most of the responses were from people between 18 to 24-years-old, which is the age group of our target audience.

From our survey we were able to see that people do still drink soda, with about 50 percent of the participants stating that they drink a carbonated beverage either a couple times a week or a couple times a month. When asked what the most important characteristic of soda is, the majority of our sample said that they value the quality of ingredients that go into creating the drink. At Carbon, we are creating soda that is naturally made, which goes hand in hand with the quality that our target market is interested in purchasing. This information shows that we have an actual market that will want our beverages.

Additionally, the survey shows that the best form of advertisement to reach our target market is through family and friends, social media, and television. This information helped us to create a social media and marketing plan that will adequately reach our target market. Lastly, the survey gave us a better idea of what type of food to serve at the restaurant. Pizza was mentioned 21 times, hamburgers 20 times, chips 8 times, and sandwiches 3 times. We will use this information to construct a menu of items that will properly compliment our carbonated beverages.

Amount of People that Drink Carbonated Beverages


Foods that Complement Carbonated Beverages

The Most Effective Modes of Advertising (ranking)


Secondary ResearchWhen studying the market and target consumer for a soda bar, there isn’t really a comprehensive database available because, not many people have created a soda bar. Therefore, in our analysis, we used the coffee and snack shop industry to understand how our idea would compare in the marketplace because, both coffee and snack shops also serve primarily caffeinated beverages with food as an addition. Coffee and snack shops typically have an eat-in lounge style environment and typically only serve small portions of foods alongside their beverage options.

The target consumer for Carbon is a millennial, aged 21-35, with a high disposable income. According to Mintel, young adults aged 18 - 30 are delaying marriage and having children, which is allowing them to spend more on eating out. “Consumers are spending more on luxuries such as eating out, but still desire convenient and affordable food options.” Additionally, per capita coffee consumption is expected to grow by .4% from 2014 to 2019. This, though not directly related to soda, reflects an expected increase in caffeine consumption by consumers. In 2013, 76.8% of spending in coffee and snack shops came from the top 60% of incomes, and 61.3% came from the top 40%. This highlights the need to target high income demographics and be located near those consumer bases as they are the high spenders in the market. Overall, white-collar workers in high-income, urban locations will be the primary drivers of growth and the primary focus for Carbon.

When it comes to Millennials, the most important aspect of a product is the price. Millennials tend to lean towards something that costs less than something that is better quality, due to the higher debt and lower incomes the generation as a whole faces. Recent trends also suggest that Millennials are more health obsessed than other generations. They look to eat healthier foods and drink healthier drinks, while also exercising regularly. Mintel expects that the Healthy Eating Index, a measure of how healthy consumers are eating,will increase by 2.6% from 2014 to 2019.

When it comes to deciding what brand to buy, millennials look for brands with a strong social media presence. According to Forbes, millennials look at blog reviews before deciding to make a purchasing decision, as well as value brands that interact with them through social media. Instead of just having a minimal social media presence, millennials want brands to actively interact with their consumers. Forbes also states that millennials want to be a part of the creation process of the products they purchase and consume.

As stated previously, the market research for a soda bar does not exist, but we were able to use the coffee and snack shop industry as an analog due to the similar business models. The coffee and snack shop industry has had annual growth of 4.3% from 2010 to 2015 and has projected


growth of 2.7% from 2015 to 2020. The “demand for coffee and snack shops has increased at a faster rate than most segments of the food service sector as consumers seek convenience at an affordable price” compared to sit-down restaurants and other kinds of establishments. One of the fastest growing segments within the coffee and snack shop industry has been so called “3rd wave coffee shops.” These shops offer high quality espresso and other coffee based beverages at higher prices. These beverages are branded as artisanal products and are lauded over for their high quality of flavor and ingredients. They typically have higher priced menu options concerning other beverages and food. This relates to Carbon because it shows that there is a market available for high-quality, craft beverages. Carbon’s main market will be focused around this idea — an artisanal, high-quality product that uses healthy ingredients and tastes great, all for just a bit extra in price. Concerning in-store operations, the coffee industry has seen that the implementation of technology greatly increases the user experience. Consumers can use apps to pre-order, they can use tablets in-store to speed up the buying process, and they can use a holistic app to track spending and gain rewards. This integration of technology into the buying process allows the coffee shops to provide a more encompassing purchasing experience, meaning the consumer has purchasing options at every touch point in their daily lives (typically a combination of good location, take-home products, and on-the-go mobile compatibility). Carbon will have a high technological component in the buying process with our easy to use touch cards and iPads. Common success factors for coffee and snack shops are a clear market position, effective cost controls, high profile locations, healthy food options, and a good supply of employees. Competition is typically based on location, food quality and consistency, style and presentation, food range, variety, and service. Though there are typically little barriers to entry, rent is high than usual and there are significant barriers to success (staying open for longer than 2-3 years).


Pro Forma FinancialsCash Flow Year 1 Year 2 Year 3

Revenue $1,001,368 $1,144,420 $1,287,473Cost of Goods Sold $330,451 $377,659 $424,866

Gross Profit $670,916 $766,762 $862,607Operating Expenses:

Office Supplies $5,000 $6,000 $7,000Labor $315,000 $315,000 $315,000Lease $71,496 $71,496 $71,496Utilities $15,000 $15,000 $15,000Advertising $50,000 $50,000 $50,000Insurance $6,000 $6,000 $6,000Permits $5,000 $5,000 $5,000

R/D for Soda $2,000 $2,000 $2,000Tech Licenses $1,000 $1,000 $1,000General SG&A $10,000 $12,000 $15,000

Operating Profit $190,420 $283,266 $375,111Capital Expenditures:

Construction/Renovation $450,000 $20,000 $- Tables/Furniture $50,000 $2,000 $- Tablewear $60,000 $5,000 $- Intial Food Costs $10,000 $- $- Tech Initial Outlay $10,000 $2,000 $- Grand Opening $20,000 $- $- Office Supplies $10,000 $- $-

Net Income -$419,580 $254,266 $375,111Net Cululative Income -$165,314 $209,797Breakeven Timeline 2.44 Years


Marketing PlanPricing and Positioning StrategyWhen the customer comes into Carbon to order soda, the cup will be priced at a flat $4 rate which is priced to be competitive to the costs of premium drinks at similar locations. Due to the fresh and natural ingredients used, we believe consumers will be willing to pay at this price for the sodas. If consumers wish to receive a new cup, they can put their used cup into a slot to receive a fresh new cup at no additional charge.

The pricing of our finger food and appetizers will be between 5 and 15 dollars depending on the food that is ordered. We want to serve food that not only complements soda but also uses farm fresh meats and produce.

The Menu PriceMargherita Pizza $12 add meat $15Chicken Fingers $7Sliders (beef or turkey) $15Hummus and Vegetables $10Potato Wedges $5Sweet Potato Fries $7Nachos $8 add meat $10Chicken Wings $7 / $9

Interactve InterfaceIn order to add to the overall ambiance of our bar and to take advantage of the benefits that technological advances has brought about, Carbon will be using an iPad to create an interactive meu experience for those in the bar. Each seating area will have an iPad, where individuals will be able to look at the different food and drink options. Rather than have a server for each table, Carbon is giving its customers the freedom to look over the menu and place an order without the feeling of a server pestering him.


When the customer sits at the table, he will be greeted with an iPad that says “Welcome to Carbon The Soda Bar.” From here, the customer will be able to login to his account if he has saved mixes, checkout the menu and access our free in house wi-fi.To access the menu, the customer has two options. One labeled “SODA” and the other labeled “EATS.” In the “soda” section, the customer can check out all the different mix options we have and put it together virtually if he doesn’t feel the need to try out the mixes and knows exactly what he wants.

In the “eats” sections, we will list the different food options that we offer. Because this is a bar that stresses the community atmosphere, all of our food options are equivalent to appetizers that are made to share. We kept our options small to not bog customers down with the extended list of flavors we offer. When a customer opens the eats option, a screen with our 8 different appetizers and an option to return to the soda screen is displayed. When a customer clicks on a menu item, it is enlarged on a sidebar with a picture, description, and price of the item.In order to show that we value our community and their feedback we also list reviews on the food as well as the most recent drink pairings a customer had with the item. Only customers who have bought the item can rate the item and leave their choice mix pairing. This feature allows customers to share ideas with their peers and try new mixes.


From there, the customer can either add the item to his/her cart and continue shopping, or he/she can go into a quick check out if you only want one thing. The customer can input credit card information at the table or go to the cashier who can pull up his/her order and thus the customer have the option to pay with card or cash. Once the order has been placed a server will then bring the customer’s order to the table.

Marketing MaterialsThere are a lot of marketing materials involved in getting our customers to want to come into Carbon. Our marketing materials consist of flyers, banners and website promotions. We will have flyers hung up around the DC area to generate interest in our soda bar. We will also have a large banner hung over our storefront to excite people about our grand opening date and the specials we have to offer. Our website will include the flavors of soda we have to offer, our food menu, the events and specials we have coming up throughout the month and a customer interaction portal where customers can comment on their favorite flavors, mixtures and tell us about their experience at Carbon.

The design of our marketing materials will stay consistent. We will be using neutral tones with a pop of color when we show the sodas. We want the designs to showcase the minimalistic and rustic design of our stores while also bringing attention to the vibrant colors of our soda blends.

Washington DC is the location of many restaurants, so our goal is to make sure consumers come into our doors when they want a dining experience. We will accomplish this by gaining name recognition, creating a strong grand opening week, and creating a satisfying user experience.


Having name recognition is very important because it’s what makes people pick one brand over another. Therefore, before we open we will work hard on making sure people know who we are and where we are. We will do this through flyering in local neighborhoods, having a grand opening sign over our storefront to excite customers, and creating a social media presence so we can start growing our network and alert future customers about the opening and future events.

Nothing beats a good first impression, so that is something we really want to focus on when we open Carbon. We want to have a two weekend long event that creates that great first impression people value. In order to prepare, we will train the staff so they know exactly what’s on the menu, how the process works, and how to treat the customers. If everyone knows what they are doing then they can easily answer and questions a customer has and create a relaxing experience for them.

In order to have to opportunity to create a first impression, we need to get the customers inside the door. We want to open our doors on a Friday, because we believe that is the day were going to get the most amount of traffic. Opening day, we will have half off all food, soda samples outside the restaurant, and a local band or artist playing music at night. The half off food will bring millennials in because no one likes anything better than good, but cheap food. Then the music and samples will draw customers towards the restaurant. The next day, Saturday, we will have free soda the entire day. The free soda will let them try out the customization process free of charge, enticing them to sit and experience the rest of the Carbon experience.

The next weekend on Friday we will have a happy hour time between 4-7. During this time they can get our food half off. This will get customers to want to sit down and try our food. If this goes over well we will continue using this every Friday. Then, that second Saturday we will screen a film of a local artist. Since nothing goes better with soda then popcorn and candy, we will serve an unique assortment of candies and popcorn. This will not only attract people to come but show the public that we are apart of the community and want to help it thrive. Overall, the two first weeks of our opening will give customers an idea of our brand and give us name recognition.

The last step to our plan is to create a good user experience. The minute the customer walks in we want them to feel relaxed and at peace. The restaurant will have clean lines, good lighting, and comfy seating that lets customers relax and hang out with their friends. Then each weekend we will try to create events that interest our customers such as weekly happy hour, monthly movie screenings, local bands or artist playing, or local artist showcasing their artwork. Events like this will make Carbon known as a place where you can hang out and experience something new, which will urge customers to share their experience with friends and family through word of mouth or on social media.


The beauty of U Street, is that it has a very community like feel. We want to create a relationship with the businesses around us so that people will want to make a day or night out of their trip, instead of just stopping for a quick drink or going to a furniture store to redecorate their home. We want to work with the apparel stores, secondhand shops and furniture stores that make up U Street, to help us promote Carbon. To execute this, we will ask these stores to supply flyers and promotional cards or coupons in exchange for us doing the same for them. This will not only create a good relationship with us in the community, but will also expand our marketing to people who might have not known about us otherwise.

Social Media StrategyBecause Carbon is targeting the young adult or millennial population, we must have a strong social media presence in order to reach our audience where they already are. This generation is one that loves to stay connected with their peers no matter where they are, and the rise of Snapchat, Twitter, Instagram, and Facebook has helped foster that culture. Carbon has no choice but to capitalize on this avenue in order to hold a stake amongst our competition. Carbon has created a Twitter, Facebook, and Instagram page and while we are not on Snapchat yet, our store will have a Snapchat geofilter.


Carbon’s main effort will to get the most engagement from the young adult population through social media interaction. We will mainly use our Twitter for this purpose. Our Twitter @carbonsodabar will be a great way to let our consumers know of random sales promotions we will be having. This will include contest giveaways and special nights with discounted prices. One example of a Twitter push we will use is to have our customers tweet pictures of them enjoying their favorite mixes with the hashtag, #WhatsYourCarbon. We would choose the a few winners who will then win a $25 dollar gift card to our facility. This would get our customers connecting with each other and our staff members to share their unique soda mixes.

We will use our Facebook to foster more of a community feel within our customers. We will encourage our customers to use our Facebook page as a forum to communicate with each other and our staff. We would like our customers to use our Facebook as a way to ask questions to our staff concerning customer service issues because we want to be as transparent with our customers as possible. We believe so deeply in our product and concept that we are willing to have customers post their issues on our page. If there are complaints we want our customers to feel validated and understand that we are working on it.

We would also host events in our bar. For example, we would have certain themed nights or parties within the bar and we would create Facebook event pages for these occasions to raise awareness. This way our Facebook community will be able to let their friends know that they will be at Carbon,


which gives us more publicity as well as gives the customers another way to connect with new people who are just as excited about our product and bar environment as we are.

Instagram has emerged as a leading social media platform based purely on still and motion graphics. We will use our Instagram account, @carbonsodabar, to share the story of our unique bar and the people that we interact with every day. Connecting with our audience on Instagram is a great way to humanize the corporation and show that we are just as much a member of the community that we inherently created through the soda bar. On Instagram, we will be able to reveal new flavors and additions to the store as well as share the interactions that our customers have every day. We kept our Twitter and Instagram handles consistent in order to make the customers social media experience with us as simple as possible.Snapchat is the final social media platform we would like to start off with. While we don’t believe having a Snapchat account for Carbon will be effective at reaching our audience, we understand that the platform is a booming network where users are able to share their daily go-abouts and

check in with their friends on a daily basis. We will take advantage of this network by using the Snapchat geofilter feature for our bar. Snapchat allows users to upload pictures with different preset filters, based on their geographic location. We will create a snapchat filter that users will be able to access from our bar that will let their followers know they are spending their time at Carbon. Not only do users love using filters in order to enhance their photos, but using our filter will be a tool to spread the name and fun of Carbon to the community.


Additional ContentThese photos show how when customers visit our webste they’re greeted with our iconic logo and name. When they press enter, the screen animates with bubbles as they are transported to our home page. The final image is an example of what our menus will look like — simple and modern, they reflect the essence of Carbon.


Store DesignFor our store design we want to design a modern, relaxing atmosphere that also creates an easy user experience. Immediately when you walk in, you will be greeted by the person at the front desk. They will be able to answer any questions and also hand out the customer the “scan-card.” The customer will enter right into the soda section. Here they can get a cup and add their ice, flavors, and then their level of carbonation. After that, they will be lead to the seating area if they choose to stay. There will be a variety of seating options for customers to choose from, including, tables and chairs for guests that want a harder surface to hang out on and soft chairs and couches that lead to more comfortable experience.

Interior Design

Front Door


As for the actual design scheme of Carbon, we are going to rely on natural colors and textures. For the walls, we will use a cool gray color that will create a relaxing atmosphere, and allowing the colors of the soda syrups to pop. The floors will be a medium wood tone, which will provide warmth but be light enough to bounce off the light. Will have steel elements throughout the restaurant, like in the table and chairs, light fixtures, and exposed beams in the ceiling. This will create a cool and modern atmosphere. Additionally, will use dark brown leather for our couches and chairs which creates a family room feel. Lastly, we will install huge windows that let in as much natural light as possible. They will have the ability to move up during nice days in the spring and summer so guest can enjoy the fresh air or eat outside.

Image: Jane Kim Design This is our room of inspiration. It has exposed beams, natural walls, leather couches and medium wood tones


This photo shows an example of how we would install our windows. They are floor to ceiling windows, so that during the warm months they can be open and customers have the ability to walk in and out freely.

Image: Joe Fletcher


Exterior Design

Room for ExpansionIf a customer prepares a mix they want to save, they can go to our bottling station where they can take larger quantities of their specialized drink home. They can also build a profile with us to join our free membership list. By doing so, the customer will be able to pre-order their personalized mis to be picked up whenever it’s convenient. The bottle and mix will be branded as “(customer name)’s Soda” and serve as a customizable takeaway for them to drink whenever and wherever they choose. Customers hosting events at their own locations will also be given the opportunity to request orders of our sodas and have them delivered at an additional cost. We also will partner with local retailers should they choose to stock our healthier soda option in place of or in addition to the standard sodas.


ConclusionCarbon is the experience young adults have been craving, but just haven’t found yet. Our healthy and invigorating soda mixes will create a buzz in the popular U Street corridor, and our flavorful dishes will be a fun, social and delicious meal for all to share. From our modern and inviting atmosphere to our playful and fun eating experience, customers will find themselves coming back for more. Featuring live bands and community oriented events, Carbon will serve as a community gathering spot to have fun, socialize and get in touch with one’s inner kid. As we expand, Carbon can partner with local retailers to stock our soda on their shelves. Moreover, if customers like their mixes they can join our membership list and we can make their sodas for them to pick up whenever is convenient. Carbon is an idea that can spread across America, all it needs is a chance.


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