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Just as people equate the word “computer” with industry giants like Apple and Windows, you could create a business that's nearly synonymous with the word “daiquiri.” These frozen, fruity rum-based drinks are favorites among a wide audience: College kids, adults and senior citizens can all be found enjoying a daiquiri. However, this potentially lucrative business requires several considerations before any umbrella is placed in a drink.
Assess your product strategy. Do you want to use a cart to set up a daiquiri stand on, say, the raucous streets of New Orleans or the sandy beaches of California? Or do you just want to haul around equipment and cater to wedding receptions and other events? You could also set up an upscale bricks-and-mortar daiquiri café in a college town. Each possibility comes with a variety of costs that extend beyond blenders, syrup and produce.
Develop an extensive list detailing expenses, such as rent or food cart permit, daiquiri machines, insurance, liquor license, food permits, salaries and wages. As explained in the book “The Everything Guide to Starting and Running a Restaurant,” alcohol has a wide profit margin with respect to food, but it carries added liability. Author Ronald Lee warns that liability for any problems due to intoxicated customers can be placed on your business.
Target your business to the appropriate demographic and recognize the seasonality of your product. An example: Few college students in Minnesota desire a daiquiri in December, so you could consider owning a beverage cart to operate during the warmer months instead of renting a space in town year-round.
Brainstorm other unconventional methods of selling daiquiris, such as catering frat parties (provided all students are of legal age), selling recipe books and staging daiquiri classes for bachelorette parties.
Create daiquiri recipes and develop a product line. Make daiquiris using a variety of flavors and fruits. Get comfortable with making daiquiris by using basic recipes, and then proceed with experimentation. Blend different fruits together, like bananas, strawberries, oranges, lime, pineapple, mango, coconut and others. Also experiment with syrups. Meticulously document all ingredients and amounts used. Experiment with nonalcoholic daiquiris to cater to kids at events like college football games.
Devise creative names for your concoctions to assist with brand name recognition. Given the plethora of unique alcoholic beverage names, like a “Beam me up, Scotty” and a “Bunratty Peg,” you should have fun with this part of the business. One idea is to choose names that correlate with your company name. If your company name is Sun Devil Daiquiris, then you could name your drink creations "The Whirling Devil” or “Devil in Georgia.”
Advertise your business. Hire college students to issue fliers of your daiquiri business. Issue “buy one, get one free” coupons and promote your services in the city newspaper. Also, use the Internet to post events like daiquiri classes in wedding forums and sorority websites. Make ancillary products to sell or distribute, like plastic cups, witty T-shirts and crazy drinking straws which bear your company’s logo.
Because getting your license can take months, apply for your alcohol permit as early as possible.
Since 2008 Catherine Capozzi has been writing business, finance and economics-related articles from her home in the sunny state of Arizona. She is pursuing a Bachelor of Science in economics from the W.P. Carey School of Business at Arizona State University, which has given her a love of spreadsheets and corporate life.