Market Analysis
There is a great opportunity for Scoops & Shots to be profitable and successful in its market conditions. There is an overall growth in the industry, a need for new opportunities in Hawaii, and potential for the business in the desired location, Ward.
Scoops & Shots has an interesting composition, one-part ice cream, one-part bar and lounge. In order to see the success of alcoholic ice cream, it is important to analyze the two different industries. Starting with the alcoholic portion, the bar and nightlife industry has seen growth in the past several years. According to IBISWorld Market Research, an organization that focuses on market research and industry forecasting, the bar and nightlife industry has grown 1.4 percent per year in 2009 to 2014. That growth is expected to increase to 2.1 percent per year in the following years until 2019. Although it is only a small percentage of growth, this is an attractive element for the business since the bar and nightlife industry has reached maturity in its life cycle stage, and the industry is resilient to withstand through the last recession. IBISWorld also indicates that there are no direct competitors, but competition is very high. There is no set corporate chain of bars to push Scoops & Shots out of the competition, but there are many bars located throughout the island which poses a threat. However, Scoops & Shots has an advantage by being able to distinguish itself through its unique products: alcohol infused ice cream.
The ice cream store industry has flatlined in the past several years. The current trend towards healthy eating and lifestyles has taken the focus from ice cream to frozen yogurt. CNBC reports that the ice cream store franchise revenue has dropped 4 percent from 2008 to 2013. Despite this drop, chains like Baskin Robbins’ have begun to pick up with a 1.9 percent growth in revenue in 2012 to 2013 after the recent slumps (McMillan 2014). The market is currently directed towards...