Juice/Smoothie Bar Mini Chain in Nigeria with about 30% ROI

There is a burgeoning demand for health savvy juice bars and a premium cocktail lounge among urban dwelling Nigerians in the highly populated cities of Lagos and Abuja.

This is a business plan and proposition for establishing either one or a chain of 3 Juice Bars and Cocktail lounges under the name “BUSHMAN’S HUT”. Bushman’s Huts shall be located in the 2 major urban cities of Nigeria; Lagos and Abuja. These Bushman’s Huts are actually going to be comprised of 3 sub-sections located within the same location or building. These are namely, The Juice/Smoothie Bar, a Cocktail bar and a grill. The proposition is for an equity investment of $1,000,000 for establishing a single Bushman’s Hut in Abuja and another $2,000,000 to establish 2 more in Lagos. However, the decision lies upon the investor to either finance the establishment of just one, 2 or all 3 of the Bushman’s Huts to form a chain in both Lagos and Abuja with a view to expansion into other major urban cities in Nigeria like Port Harcourt, Benin, Enugu etc.

After due diligence, this investment will be in the guise of a trust financing model where we handle the setup and management of the business with annual 60% net income returns of about $277,228.9 (a 27.7% ROI) to the investor. This figure totals to about $1,386,144.5 in return in 5 years from an initial investment of $1,000,000.

It is however pertinent to note that this projected income in the cash flow statement are reduced sales figures which could in anticipated reality be higher whereby the investor is able to recoup the initial capital and make profit in less than 5 years. After the initial period of 5 years when the investor has accrued the aforementioned investment equity capital and profits, it is the proposition that the partnership structure will change into one in which the investor is entitled to 50% in net income for the remainder of the life of the business enterprise.

i. Absence of a competitive juice bar/cocktail lounge: One of the major opportunities for this proposed business enterprise lies in the absence of any major competitive juice bar/cocktail lounge franchise in Nigeria. This therefore implies that much of the effort will be channeled into perfecting the product and service instead of fighting competition. Additionally, as hitherto stated, there is an already identified and existing demand for such a juice bar and cocktail/shisha lounge and with Bushman’s Huts entering the market, we will be the first of such a kind in Nigeria.

ii. Already existing and burgeoning demand: It is exciting to note that market research and live market experience has identified an already existing and burgeoning demand among the working class and youthful demographics in Nigeria for a juice bar and a cocktail lounge in line with the globalization-induced westernization of the Nigerian social life. Young, educated and enlightened Nigerians see such social life and ‘hangout’ spots in movies, music videos and on social media and yearn for such but the unhappy reality in most cases is that such places are not usually found in Nigeria unless one travels abroad. We intend to bring such ‘good life’ home to urban dwelling Nigerians and fulfill this demand which holds an immensely lucrative potential.

iii. Massive customer base: Nigeria is the most populous black nation in the world with a population of about 150 million people. This creates an immense opportunity for any business or investor and with the collective population of Lagos and Abuja averaging about 22 million people it is apparent that the customer base for the proposed Bushman’s Huts is excitingly massive and appealing; ripe for investment.

Bushman's Huts shall be focused on meeting the burgeoning demand for a health oriented juice/smoothie bar divergent from the normal fast-food eateries which take after the McDonalds format of serving weight-gaining and sugar-filled foods. Ours will be a bar with a difference in serving appealing but health-savvy natural fresh fruit based products and healthy food choices served with a touch of class which makes the customer a king for a small premium.

Additionally, there is no cocktail/shisha lounge or bar in Nigeria at the moment because most of the bars that serve cocktails are usually beer bars that try to incorporate cocktails but these are not well patronized by cocktail aficionados as these bars do not have a well delineated or clear cut image and service image for this niche market. This is where we shall come in by exploiting this void and cashing into the popular demand.

Seed capital for establishing either one, two or three outlets of the mini chain. Please find details in attached business plan

After due diligence, this investment will be in the guise of a trust financing model where we handle the setup and management of the business with annual 60% net income returns of about $277,228.9 (a 27.7% ROI) to the investor. This figure totals to about $1,386,144.5 in return in 5 years from an initial investment of $1,000,000. It is however pertinent to note that this projected income in the cash flow statement are reduced sales figures (worse case scenarios) which could in anticipated reality be higher whereby the investor is able to recoup the initial capital and make profit in less than 5 years. However, after the initial period of 5 years when the investor has accrued the aforementioned investment equity capital and profits, it is the proposition that the partnership structure will change into one in which the investor is entitled to 50% in net income for the remainder of the life of the business enterprise. Additionally, the investor has the holistic capacity to carry out independent audits at the end of every business year.