Mayonnaise, like ketchup, has a federal standard of identity, and it shapes the product line before the first jar. To be called mayonnaise, it has to be an emulsion of vegetable oil, at least 65% by weight, an acid, vinegar or lemon or lime juice, and egg yolk in some form. So an eggless "vegan mayo" can't use the name, and a light version with less oil can't either; both need names of their own. Spices are allowed, except saffron and turmeric, and nothing that makes it look yolkier than it is. The kitchen rule matters as much: under the FDA Food Code, which states adopt in their own versions, mayonnaise made in a food establishment uses pasteurized eggs, since it isn't cooked. The plan below follows six products, priced for shops, markets, restaurants and a plant-based spread. In the example, a Baltimore mayonnaise maker starts with $26,000, ends its first year about $2,800 ahead before the owner's pay, and makes about $2,500 a month at full speed. Below is each part of the plan, the first year month by month, the startup budget, and a free template.
The short version
- Describe the business in a paragraph: the flavors, who buys, where, the goals.
- Mayonnaise: at least 65% vegetable oil, vinegar or citrus juice, and egg yolk. Anything else needs another name.
- No saffron or turmeric, and nothing that fakes a yolk color.
- Use pasteurized egg yolks; mayonnaise isn't cooked.
- An eggless spread can sit beside it; call it what it is, not mayonnaise.
- Have a process authority or lab check the recipe and shelf life before you sell to shops.
- TaroStack makes each batch from its recipe, with the egg yolk lot it used. More below.
Part 1: the business description
Fells Point Mayo Co., a made-up mayonnaise maker in Baltimore, Maryland, writes:
Fells Point Mayo Co. makes small-batch mayonnaise in a shared commercial kitchen: classic mayonnaise in 12-ounce jars, garlic aioli and chipotle mayonnaise in 8-ounce jars for local shops, jars at markets and online, gallon tubs for sandwich shops, and an eggless plant-based spread. In its first year it aims to sell about 2,400 jars a month.
Part 2: what the standard lets you call mayonnaise
| Product idea | What's in it | Called mayonnaise? |
|---|---|---|
| Classic | 75% sunflower oil, pasteurized yolks, white wine vinegar, lemon juice, salt, mustard | Yes |
| Garlic aioli | The classic with garlic | Yes: garlic counts as a spice or flavoring |
| Chipotle | The classic with chipotle | Yes: a spice that doesn't fake a yolk color |
| Turmeric mayo | The classic with turmeric | No: turmeric isn't allowed; dropped |
| Light version | 45% oil | No: under 65% oil; not made |
| Plant-based spread | Oil and aquafaba, no egg | No: no egg yolk; sold as "plant-based spread" |
Fells Point weighs the oil into every batch at 75%, well over the line. The aioli's label reads "Garlic Aioli Mayonnaise", keeping the standard's name. The turmeric idea went, and the eggless spread carries its own name on the label. How every ingredient is listed is in ingredient list order.
Part 3: the rules
Mayonnaise is the emulsified semisolid food made from vegetable oil, vinegar or lemon or lime juice, and egg yolk-containing ingredients, with not less than 65% vegetable oil by weight; the vinegar or juice is at least 2.5% acid; salt, sweeteners, spices other than saffron or turmeric, and natural flavorings that don't give a yolk-like color are allowed (21 CFR 169.140). In a food establishment, pasteurized eggs or egg products replace raw eggs in foods such as mayonnaise that aren't cooked (Food Code 2022, 3-302.13). Whether a shelf-stable jar falls under the acidified foods rules depends on the recipe and process, which is in acid food vs acidified food. This is general information, not legal advice.
Part 4: products and what each earns
| Product | Price | Variable cost | Contribution | Margin | A month at full speed |
|---|---|---|---|---|---|
| Classic mayonnaise, 12 oz, to shops | $4.75 | $2.30 | $2.45 | 51.6% | 900 |
| Garlic aioli, 8 oz, to shops | $4.50 | $2.10 | $2.40 | 53.3% | 500 |
| Chipotle mayonnaise, 8 oz, to shops | $4.50 | $2.15 | $2.35 | 52.2% | 300 |
| Jars at markets and online | $9.00 | $2.70 | $6.30 | 70.0% | 400 |
| Restaurant gallon tub | $28.00 | $14.20 | $13.80 | 49.3% | 50 |
| Plant-based spread, 8 oz, to shops | $4.75 | $2.40 | $2.35 | 49.5% | 300 |
Variable costs are oil, pasteurized yolks, vinegar and flavorings, the jar, lid and label, and card fees and shipping supplies where they apply. In the example, oil is most of the ingredient cost, so a change in the price of sunflower oil moves every margin at once. At full speed the business sells $14,300 a month and keeps $8,025, 56.1%.
Part 5: the first year, month by month
Fixed costs are $5,550 every month: shared kitchen time ($1,500), cooler space ($350), part-time help ($2,400), insurance ($150), market fees ($300), the website and software ($100), marketing ($400), lab tests ($150), and other costs ($200). Sales start at 35% of full speed:
| Month | Sales | Profit | Cash, year to date |
|---|---|---|---|
| 1 | $5,019 | −$2,734 | −$2,734 |
| 2 | $6,006 | −$2,180 | −$4,914 |
| 3 | $7,150 | −$1,538 | −$6,451 |
| 4 | $8,294 | −$896 | −$7,347 |
| 5 | $9,309 | −$327 | −$7,674 |
| 6 | $10,296 | $228 | −$7,446 |
| 7 | $11,154 | $710 | −$6,736 |
| 8 | $12,012 | $1,191 | −$5,545 |
| 9 | $12,741 | $1,599 | −$3,946 |
| 10 | $13,442 | $1,994 | −$1,953 |
| 11 | $13,885 | $2,241 | $289 |
| 12 | $14,300 | $2,475 | $2,764 |
The year's sales are $123,608 and the profit $2,764, before the owner's pay. The business breaks even at about $9,890 of sales a month, in the sixth month; the lowest cash point, −$7,674 in month 5, fits inside the $8,000 of working cash with $326 to spare, so a slower start would need more.
Part 6: the startup budget
| Item | Example |
|---|---|
| High-shear mixer | $6,000 |
| Reach-in cooler | $3,000 |
| Process review and shelf-life testing | $2,500 |
| Jars and lids, first order | $2,500 |
| Label design and first labels | $2,500 |
| Licenses and permits | $800 |
| Market display | $700 |
| Working cash | $8,000 |
| Total to start | $26,000 |
The $18,000 before working cash is earned back in a little over seven months at full speed. A sauce with a different standard is in ketchup business plan.
Get the template
Download the mayonnaise business plan workbook. Four sheets: your products, each with its price, variable cost and units a month at full speed; the first year, month by month, with sales ramping up, profit, cash, the first profitable month and the lowest cash point; your fixed costs; and the startup budget. It's an ordinary Excel file with no macros, and it works in Google Sheets, LibreOffice and Numbers.
Where this stops working
The plan counts jars. The kitchen has to know more: which carton of pasteurized yolks went into which batch, that each batch hit 75% oil, and which shops got it, and an egg product recall would start there.
How TaroStack does it
TaroStack makes each batch from its recipe, with the egg yolk lot it used.
Recipes by weight. The classic is a recipe by weight, so the batch record shows the oil at 75% of the total, and the cost of a jar follows the price of oil.
Batches by lot. Each batch takes oil, yolks and jars off stock by their lots, and gets its own lot and best-by date.
Recalls. If a yolk supplier recalls a lot, one report shows every batch that used it and every customer who got those jars.
| The job | Notebook | In TaroStack |
|---|---|---|
| Oil share in a batch | Worked out on paper | From the recipe by weight |
| Which yolk carton went in | Not recorded | Batches by lot |
| Who got a batch | Invoices | One recall report |
Recipes, batches and recalls are on every plan, from $49 a month. The first 30 days are free, with no credit card. If you'd like a hand setting up, ask, and we'll do it with you.