THE HOT SPOT

A Student Store Enterprise

A Model For Managing

Student Stores

December 2005

MARKETING EDUCATION

Student Store Guidebook

Prepared by:

Patricia J. Verdun

Graduate Studies

University of Idaho

December 2005

December 2005

Table of Contents

Introduction i

C H A P T E R 1 :

THE STRUCTURE AND MODEL OF THE

STUDENT STORE

Purpose of the Hot Spot 1

Structure of the Student Store 1

Hot Spot Vendors 2

Location of the Student Store 3

State Regulations 3

C H A P T E R 2 :

THE ORGANIZATIONAL STRUCTURE AND

STUDENT RESPONSIBILITIES

The Student Store Job Descriptions 4

Store Manager 4

Business Managers 5

Till Counters 5

Employees 6

The Hot Spot Organizational Chart 8

CHAPTER 3:

POLICIES AND PROCEDURES

Store Security 9

Hours of Operation 10

Manager/Employee Behavior Code 10

Returns and Adjustments 11

Cashier Over rings and Voids 11

Absences and Tardiness 11

Grounds for Dismissal 12

C H A P T E R 4

GETTING STARTED

Creating A Business Plan 13

Tracking and Organizing student’s 14

Businesses

FORMS 14

End of the Week Business Checklist 15

Student Manager Application 16

Business Expense Report 17

Business Sales Report 17

Business Forecast 18

Summary 19

December 2005

Introduction

This guide to running a student school store is modeled after “The Hot

Spot” currently in operation at Southridge High School located in Kennewick,

Washington. This model can be easily adapted to meet the needs of any two-year

marketing program at the high school level. Many high school programs in the

State of Washington operate student ran stores with different and unique

characteristics that have made them successful, but the underlying goal for all

programs is that the marketing students must be ones who operate the store. As

the coordinator it will be your role to guide the student “managers”, but it is the

sole purpose for the student “managers” to make the day to day managing and

operating decisions.

In addition, the facilities of the store need to be realistic to present

meaningful experiences to the students. The activities of the store should be

planned around and made parallel to actual business conditions. A student store

laboratory provides the following benefits to the students:

1. An actual business atmosphere to apply marketing theory and principles

learned in the classroom.

a. Training in display

b. Forms of business operations

c. Financing a business

d. Cashiering

e. Purchasing and pricing

f. Advertising

g. Inventory control

h. Security

December 2005

i. Salesmanship

j. Housekeeping

2. An opportunity to supplement, reinforce, and enhance the knowledge, skills

and attitudes required for careers in marketing.

3. The development of business like procedures and attitudes in students.

4. The development of student leadership and management skills.

5. Goods and services at reasonable prices for school faculty and the student

body.

Considering the state and national emphasis on competency-based,

individualized instruction in education, the ideal learning situation is one that

develops the student into an independent learner with the teacher acting as the

“manager” of learning rather than as a lecture. The unavoidable abstract nature

of many concepts in marketing and distribution, the interests and aptitudes of

many of the students, and other related considerations all stress the need for

creating hands-on learning opportunities in the classroom.

It is the intent of this guide to help create similar learning opportunities

for marketing students in various schools and classrooms. In this handbook, you

find operational guidelines, as well as, documentation forms currently used at The

Hot Spot that can be modified to fit your programs needs.

T H E H O T S P O T

1

The Structure and Model of the

Student Store

Purpose of the Hot Spot

The Marketing Education program at Southridge High School is designed as a

three-part program consisting of classroom instruction, DECA, and the student store

lab. The incorporation of the student store is an important part of the Marketing

curriculum for our Business Academy students; the main function of the store is to act

as an educational lab where the concepts of the Marketing Education curriculum can be

put into practice. In the business academy, the operations of the Hot Spot is

introduced and implemented at the sophomore level while the management of the Hot

Spot is implemented at the Junior/Senior level.

The student store also used as tool to support the activities of the DECA

chapter by providing a source of funding. Beyond these two considerations, the store

is a service to the student body and the school staff.

Structure of the Student Store

At the beginning of each school year, students in the Junior/Senior class select

a business from the following list to manage for the entire school year. One student is

selected as the Store Manager who will oversee the entire operation at the “Hot

Spot.”

The student store is made up of the following eight businesses:

Espresso Business: Mochas, Lattes, Cappuccinos, and Hot Chocolates

Chapter

1

T H E H O T S P O T

2

Smoothie Business

Coca-Cola Business: Minute Maids, Powerades, and Bottled Waters

Otis SpunkMeyer Cookies Business

Ice Cream Business

Hot Foods Business: Nachos, Pretzels, and Pizza Sticks

Snack Foods Business: Chips, Jerky, and Peanuts

Apparel Business: Shirts, Sweatshirts, Sweatpants, Bags, Lanyards, Hats,

Beanies, and Blankets

Depending on the size of the class, each business typically has two to three students

managing them.

Hot Spot Vendors

Cash & Carry No. 3 URM

525 North Fruitland

Kennewick, WA 99336

509) 582-8338

Cola-Cola Bottling Co.

1225 North Road 34

Pasco, WA 99301

(509) 547-6712

Sysco Food Service

504 North Naches Avenue

Yakima, WA 98901

(509) 249-5525

Island Oasis

141 Norfolk Street

Walpole, MA 02081

Toll Free Number:

1-800-777-4752 Weekdays, 9:00 am to

4:00 pm. Eastern Standard Time. Or

use our regular business number (508)

660-1176 Weekdays, 9:00 am to 4:00

pm. Eastern Standard Time.

T H E H O T S P O T

3

Location of the Student Store

It is been said there are three things in running a successful business: location,

location, location. It is critical for the success of any student store to be located in a

high-traffic area of the school. Ideally, the student store should be placed adjacent

to the school cafeteria for it’s central location and faster service. Another important

factor in location is the location of the classroom. Your student store should also be

close to your marketing class for easy access to and from the store during daily

operations.

State Regulations

Washington State requires all food workers to have food safety training before

handling food for the public. Food workers that have attended the food worker

training class and passed the Washington test on food safety basics are issued a Food

Worker Card (FWC).

Check your local health department as soon as the new school year begins

to schedule training for your students. The sooner your students are trained, the

sooner your store will be operational.

T H E H O T S P O T

4

The Organizational Structure and

Student Responsibilities

The organizational chart on page 8 shows the hierarchy of the various positions,

and to whom each employee reports. The instructor is ultimately responsible for all

decisions made, however, the student store manager hold meetings with the students

to make decisions regarding the operations of the store. Each student therefore has a

voice and an opportunity to initiate changes through the meetings.

The Student Store Job Descriptions

Store Manager

The student store manager will be in charge of and responsible for the total operations

of the school store. This person shall oversee the business managers and all store

functions. Below is a description of the duties:

Shall directly supervise all business managers.

Shall be responsible for the ongoing operations of the student store.

Shall train new employees with assistance from the instructor.

Shall oversee bookkeeping and inventory operations.

Shall fill out quarterly evaluations with the assistance from the business

managers.

Shall handle complaints

Chapter

2

T H E H O T S P O T

5

Shall inform the instructor of any problem area that may arise.

Shall conduct weekly meetings with all business managers.

Business Manager

The business managers are responsible for managing all aspects of their own

businesses as well as the following duties when “on duty” in the student store. Below is

a description of the duties:

Shall report to work on scheduled days.

Shall directly supervise all employees when “on duty” at the store.

Shall remain in the store the entire time it is open.

Shall dismiss employees at the end of the shift.

Has basic decision making authority.

Shall be responsible for all cashier duties when “on duty” at the store.

Shall order and purchase products as needed.

Shall keep inventory stocked daily.

Shall record sales and expenses for their businesses weekly.

Shall develop and implement a business plan for their business.

Shall keep all records up to date.

Shall be responsible for the promotion and advertisement of their business

throughout the entire school year.

Till Counters

The till counters are responsible for verifying the daily till records to the cash

on hand and investigate any cash overage or cash shortages. Below is a description of

the duties.

T H E H O T S P O T

6

Shall count the money collected after the business day.

Shall record daily sales on the appropriate form and balance each register total

to the total on the Z tape.

Shall record daily deposits on the appropriate form and give to the Treasure to

deposit.

Shall report all shortages to the instructor and the store manager immediately.

In addition, you must submit the name of the person who was running the cash

register at the time of the shortage.

Employees

The employees are responsible for the

daily work duties in the student store. The

following are guidelines that are used for the

“workers” in the Hot Spot. Below is a

description of the duties:

Shall wash hands immediately upon

reporting for work duty.

Shall put on gloves if working at the hot foods station.

Shall fill the sink with hot soapy water.

Shall put bleach in white bin and put in middle sink.

Shall make sure coffee and cheese machines are on.

Shall fill the bucket with ice for smoothies.

Shall make sure dishes are clean and ready to use.

Shall take smoothie mix out of fridge and set up smoothie station.

Shall fill 10 nacho boats with chips and set on counter ready to add cheese.

Shall make sure products are not expired.

T H E H O T S P O T

7

Shall use the oldest products first.

Shall place smoothie mix in fridge at the end of the work shift.

Shall wash all dishes at the end of the work shift.

Shall wash smoothie blenders at the end of the work shift.

Shall wipe down the counters and dump leftover ice into sink at the end of the

work shift.

T H E H O T S P O T

8

The Hot Spot Organizational Chart

Student Store Manager

Managers Hot Foods

Snack Foods Businesses

Managers Otis Spunk Meyer

Ice Cream Businesses

Managers Espresso

Smoothies Cola-Cola Businesses

Instructor of Sophomore Class

Employees “Workers” at the

student store

Managers Apparel Business

Instructor of Junior/Senior

Class

T H E H O T S P O T

9

Policies and Procedures

A handbook, or manual, is important for every store and company. This format is

an easy, inexpensive way to communicate to your students the store’s procedures,

rules, expectation, goals and philosophy. It is the best way to make sure that a school

store is run smoothly and consistently. If a store manual is not available, a lot of time

is spent orienting each new student, and a lot more time explaining procedures over and

over to your current students.

Also, much time is spent reviewing or explaining every time an issue is

misunderstood, a privilege abused, or a policy changed.

It is recommended that the school principal read the entire handbook and

approve its contents before it is printed and shared with the store employees. This

process will aid in gaining administrative approval and assist in handling behavior

problems when they arise. It is also recommended that the manual be placed in a loose-

leaf binder. Then, when a change is needed, all that has to be done is to reprint the

section and replace it, rather than reprinting the entire manual.

As must be the case in every well-organized business, we have prepared a few

ground rules that must be observed to keep us working in the same direction. Rules are

necessary to assist us in providing the best possible service to our customers in the

most efficient, orderly and profitable way. This section includes store policies in place

at the Hot Spot.

Store Security

It is best to have an adult present at all times during store operations or when

students are in the store. Our school store uses a cash register so that no money is

left exposed at anytime, except when receiving payment or giving change to the

customer.

Chapter

3

T H E H O T S P O T

10

The school store must be locked when not open for business. All opportunities

for theft must be considered and preventative measures need to be taken. Only the

adult supervisor shall have a key to the school store at any given time. The school

store should never be unattended during business hours.

Hours of Operation

The Hot Spot operates during lunch hour from 11:30-12:10. The windows are

closed at approximately 12:00. Additional hours beyond the school day may be

required during special events and open houses.

Manager/Employee Behavior Code

Here are a few general conduct rules actually practiced in business and is

expected of all Hot Spot employees while they are working in the school store:

Food and beverage are not to be consumed by employees while on a work shift.

Gum chewing is not allowed during your work shift.

Personal business is to be conducted prior to or after your work shift.

Schoolwork is not appropriate while you are working.

Maintain a businesslike behavior and attitude during your work shift. Any

activity identified as horseplay or behavior that is considered unprofessional will

not be tolerated.

Do not enter the working area until your work shift hour.

Keep yourself busy and productive during slow times. Ask your store manager if

there are other duties or chores that can be performed. Look for routine tasks

that can be done and do it without being asked. This is considered one of the

most important traits of a valued employee. Our most successful students have

been those that look for opportunities to contribute rather than wait to be told.

Loyalty to your school store operations and employer/employee relations is of

critical importance to all of our success. Each of us will subscribe to a code of

ethics and be accountable to each other for our actions. We need 100%

cooperation if we are to achieve our goals.

T H E H O T S P O T

11

Returns and Adjustments

A defined policy for returned merchandise used at the Hot Spot is outlined

below. Any business can be as restrictive ("All sales final") to as liberal ("Total

satisfaction guaranteed") as you decide. Some of the following guidelines for returns

should be considered for any student store.

All merchandise returns must have an accompanying sales receipt.

All returns must be made within 30 days.

No worn athletic wear will be refunded.

A Manager’s approval is required for all returns.

The purchases of sale or clearance merchandise are final; therefore, no refund

will be granted.

Cashier Over rings and Voids

If a cashier has an over ring/void, the store manager/supervisor must be

contacted immediately. The over ring or void slip/paperwork must be placed in the

register under the cash drawer.

Absence and Tardiness

Students shall sign-in when reporting to their work shift. It is imperative that

workers and managers find a replacement if they cannot make their scheduled shift.

If you do not show up for a schedule shift and arrangement made for another worker

to fill in, you will receive a NO SHOW on your work schedule. After three (3) NO

SHOWS you are fired and will receive a failing grade in class.

All business organizations succeed or fail depending upon the quality of the

organization personnel and the degree of “teamwork” they display. When one member

of the team is away from the job, everyone else must adjust and adapt accordingly. If

we plan and organize our operations well, the adjustment will be easy and the impact on

our operations will be minimal. However, if students establish patterns of absenteeism

and tardiness on a consistent basis, it puts an unfair amount of workload on everyone

else.

T H E H O T S P O T

12

Grounds for Dismissal from the Program

From time to time students will be dismissed from the program. This is rare as

expectations are outlined at the beginning of the school year and most students will

opt to dismiss themselves from the program if it is not good fit. The following

guidelines have been established at the HOT SPOT and are expressed in the Class

Expectations prior to the opening of the student store. The guidelines are as follows:

Conduct that is not consistent with the established code of conduct policies.

Evidence and conviction of dishonesty or theft.

Committing, or attempting to commit, deliberate damage to the store/class

property.

Excessive absences or tardiness. Three NO SHOWS to a scheduled work shift

during the course of the school year.

T H E H O T S P O T

13

Getting Started

Creating a Business Plan

Creating a business plan offers numerous and unlimited ventures for your

students. One of the most important foundations of our marketing education/DECA

program is to provide meaningful and realistic educational opportunities. Related

activities are virtually endless for the creative teacher as each topic in the business

plan offers numerous assignments that will provide a “real life” experience for your

students.

A realistic business plan will provide you and your students with great insight as

to the future success of your school-based enterprise. The business plan is a written

document that clearly defines the goals of each business in the Hot Spot and outlines

the methods for achieving them. A good business plan describes what the business

does, how it will be done, who has to do it, where it will be done, why it is being done

and when it has to be done. Most importantly, it will tell you if your student’s ideas

make sound fiscal sense (i.e., if it will be successful).

Listed below are components that are included in each business at the Hot Spot.

1. Executive Summary

2. Business Information

Type of Business

Mission Statement

Location

3. Industry, Market and Competition

Chapter

4

T H E H O T S P O T

14

Industry (size, growth, seasonality)

Target market

Customer buying behavior

Competition

4. Products and Services

Description of goods or services

. Executive Summary

5. Suppliers and Services

Suppliers

Services

6. Marketing Plan

Promotional mix

Calendar of promotions

Pricing policies

7. Management Team and Key Personnel

Managers

Advisors and other business professionals

8. Financial Plan

Projected start-up costs

Projected income and expenses for the year

9. Appendices

Perhaps the most important number in this section is the bottom line. Will your

students make a profit? Your student’s numbers should be realistic and credible.

T H E H O T S P O T

15

Obviously, the most difficult numbers to predict are your projected sales. Your

business plan should be complete, clear, neat, accurate and professional. It is a

reflection of you and your program. Planning is paramount to the success of any

business. If you don’t know where you are going, how will you get there?

Tracking and Organizing Businesses

Each Business has a binder that is kept in the classroom and is used only by the

managers of that particular business. In the binder, students keep their business plan,

sales records, expense records, inventory orders, and any other forms or

documentation necessary for their business. At the end of each quarter, the business

binders are submitted by review by the store manager and classroom instructor.

Forms

The following pages include forms that have been used for the Hot Spot and can

be used as a guide in creating your own.

T H E H O T S P O T

16

End of Week Business Check List

For the week ending _________________, 20____

Business: Otis SpunkMeyer Cookies

Managers:

Task Completed

Check Inventory ________

Record sales ________

Record Expenses ________

Update Business Binder ________

(Put sales & expense records in binder)

Order Product (if needed) ________

Weekly Sales $ _____________

Weekly Expenses $ _____________

Managers Signatures: ______________________________________

______________________________________

______________________________________

T H E H O T S P O T

17

STUDENT STORE MANAGER APPLICATION

Name:___________________________________________________________

Employment experience (list duties you have had on the job):

List other applicable skills and abilities that you posses:

School activities you have been involved in during high school:

List activities you will be involved in during this school year:

Are you willing to spend some of your personal time when required? Yes________

No_________

What is your class schedule for this year?

What is your current grade point average (GPA)? __________

What is your attendance record at school? _________ Absentness ________Tardies

List references: Name__________________________ Phone________________

Name__________________________ Phone________________

Why do you want to be a student store manager?

T H E H O T S P O T

18

Otis Spunk Meyer Expense Report

For the Week of _______________________

Date Vendor Products Amount Unit

Cost

Total

Cost

Total Weekly Expenses

Otis Spunk Meyer Sales Report

For the Week of _______________________

Day Date Cashier Sales Cash

Over

Cash

Under Waste

Monday

Tuesday

Wednesday

Thursday

Friday

Total Weekly Sales

T H E H O T S P O T

19

Revenue: (Merchandise sold)

Item Price x No of Units = Revenue

__________________________________________$____________*_____________ _____________

__________________________________________$____________*_____________ _____________

__________________________________________$____________*_____________ _____________

Total Projected Revenue $ ________________

Cost: (Merchandise purchased vendor quote or catalog, including shipping and taxes)

Item Price x No of Units = Revenue

__________________________________________$____________*_____________ _____________

__________________________________________$____________*_____________ _____________

__________________________________________$____________*_____________ _____________

Total Projected Costs $ ________________

THE HOT SPOT

BUSINESS FORECAST

Date___________________________

Business _________________________________________

Managers _________________________________________

_________________________________________

This is only an estimate of the profit to be made from this business.

Store Manager’s Approval:_______________________________________________Date___________________

Instructor’s Approval:__________________________________________________Date___________________

Expected Profit $_________________

(Total projected revenue minus total cost)