Tuesday, May 21, 2019

Coffee Cafe Business Plan Essay

Caf Vancouver is a freshly hot chocolate shop at Granville and Robson Street in Vancouver Downtown. The hustle and bustle of downtown select a quiet, fast-paced life make people feel tired, we want our nodes to relax while tasteing a coffee berry. Caf Vancouvers afternoon team leave behind make the ruff effort to create a unique place where customers freighter get together with each other in a comfortable and relaxing purlieu while enjoying the best-brewed coffee or espresso and breakfast style treats in town. We volition be in the business of percentage our customers to relieve their daily stresses by providing pause of mind through great ambience, convenient place, friendly customer profit, and products of consistently high quality. We welcome guests of in all ages we atomic number 50 guarantee each guest to enjoy high-quality coffee. Vancouver Downtown has many companies, offices and shopping centers, with a strong customer base and revenue opportunities. Meanwh ile, 365 days a year we depart throw no holiday leave, to make sure that we have opportunity to serve guests at any time. We in addition have a pragmatic management team.Head is the General bus he has a degree in Economics from the Russian Far Eastern University, and has to a greater extent than six years of induce in business routines. He is the general manager, and a cafe investor. Team1 supervisor is Supervisor1 with four years of broad experience head for the hillsing at coffee shops and restaurant industry. Team2 supervisor is Supervisor2 he has 2 years of experience in the restaurant industry. We provide training for up to three months, including lodge culture, coffee brewing, food safety, and so on. All employees of our company pull up s recurrences be headspring-trained and enthusiastic moderator. The monetary position of the company is essential to develop the companys financial data, including investment, net derive and so on. After the financial position and profitability assessment, in three years of operation, we expect to have profit of about 818,700 dollars (net profit after tax), with average annual net profit of 272,900 dollars leave behind give adequate supporting for our company. Comp ard with other coffee brands in the industry, we expect to grow faster. In the long-term, we forget consider opening new cafes in antithetic locations throughout Canada. The Company and IndustryBusiness goalsCoffee is more(prenominal) than a crapulence however, it is a memory, anticipation, and a lifetime of consoling moments of modest enjoyment woven into our lives. Coffees success as a beverage undoubtedly owes both to the caffeine it harbors and to its sensory pleasure. Coffee lovers come to associate the kinetic lift of the caffeine with the richness and aroma of the beverage that delivers it. Our Business goal is to make our customers return to the simple concept of coffee, gently enjoying every cup of coffee. We ar planning to open t wo stores in the Vancouver area within three years.The companyMission statementWe want our customers to return to the simple concept of coffee, quietly enjoying every cup of coffee.Vision StatementTo grow the business and protect the rapid development of the enterprise.The IndustryAlthough Canada does not have the proper climate for outgrowth coffee, Canadian- ground firms do import raw materials for processing and resale into domestic and export markets. Coffee manufactured for retail and Food assistance markets has been an important part of food and beverage processing in the country for many years. Coffee is the most hot hot beverage in Canada with a total of 14 billion cups consumed annually. An estimated 64% of Canadians drink coffee each day, which is equal to 6.8 kilograms of green coffee or 12.7 pounds of roasted coffee per head, with 86% of adult coffee drinkers consuming the beverage in the morning or for breakfast. In-home continues to be the dominant place for consump tion with just over half of Canadian consumers (51%) drinking coffee at home.Among adult coffee drinkers, the share of cups (80%) of traditional coffee made at home is eight times higher than the share of cups purchased from the market (11%).57% of coffee purchased at coffee shops. The coffee is to a fault the top beverage in the Canadian Food dish category. Canada has a highly developed away-from-home coffee market and is second only to Italy in highest component of total cups of coffee consumed outside the home. Other consumer demands include information on the origin/source, and locally grown, fair-trade, organic, and green coffee products. The coffee industry has been quick to suffice to this lucrative market, worth about $650 million a year in Canada. Products and ServicesThe Caf Vancouver will proudly offer its customers the best tasting coffee and tea beverages with breakfast style treats in the area. Our highly trained staff with a passion and talent combined will provide the best customer service in competition. The friendly and polite staff will also provide a cozy environment for customers to make them feel home, and every staff instalment will be required to give million dollar smile to our customers. In future, we will be looking forward to train our employees in promote customer and coffee-making services. The products we offer will taste better than anything in the competition. This will be achieved with the high quality ingredients and products, by strictly believing in providing quality.The notice will cover coffee, steeped oddment teas, espresso latte and beverages, classic hot beverages, cold beverages, espresso on ice, sweet baked dandys, yogurt, and grilled sandwiches and wraps. The Caf will be offering innocent(p) books magazine, daily newspaper publisher and WI-FI for eating in clients to make them feel entertained and relaxed. By keeping in mind the importance of internet, we will provide upper berth WI-FI for our customers. in that respect will also be four televisions at display in the caf, which will be playing channels on popular demand. During the convention working hours of our caf thither will always be entertaining music playing for our customers. In future, we will be updating our product and services with the popular demand. With the business plan there is a menu minded(p) below which will provide further details about the products we will offer.MARKET outlineCoffee business in recent years has been a bright spot for those who want tostart-up their own business. While there are a enactment of other businesses out there many categories facing poor sales, negative balance sheets but coffee cafes are continuing to show strong growth. Its very clear that Canadians love coffee continues throughout the year.Target marketThe place for our Caf Vancouver business is located at the intersection of Robson Street and Granville Street, which is in the downtown and one of the best locations for our coff ee-house for opening up our cafe. Downtown is the main part of Vancouver and remains busy all throughout the year. According to our research we found that there is year round tourist activity all across Vancouver plus there are lots of businesses nearby our place. Robson Street is famous for its shopping stores all over Canada. In target market, we will target people from young to senior citizens. At the intersection, there are magnificent auto and pedestrian concern by the place which will give some customers each day. There are busiest areas and Sky train stations near to our place so we can attract local people or travelers passing through Downtown.Market size and trendsAccording to the census 2009 The Robson Street is regarded as a 3rd BIA (business profit area) in Vancouver. The retail and service business is really higher on Robson street because of its popularity and there are 29% eating and drinking places on the Robson street. The retail business is 69% on Robson and 24% in the rest of Great Vancouver. It is one of the biggest shopping destinations in Vancouver. As the target market for our product and service is mainly tourists, local residents, business people, and students. There are 79,140 residents and 145,000 daytime employee bases population density is triple than Vancouver average. The growth for the market had increased from last year because of the groundwork lots of people emigrated there because of business opportunities. According to the census there are 39 commercial properties and 222 businesses on the Robson Street. By targeting all market segments, Caf Vancouver will not focus on one segmentof market like for many other coffee shops. Caf Vancouver will avoid these barriers in business with a customer mix of all segments and in coming years we expect to increase our market share in coffee business.CompetitionCaf Vancouver will unequivocally place itself in the most competitive area of Vancouver downtown. The place chosen for a cafe has competitors such as Blenz coffee, Starbucks, cafe crepe, Tim Hortons, Waves coffee, 7 eleven and Davids tea. It will be challenging to compete with well-established business, but cafe will give most delicious products at very reasonable bells. Our prime competitors (see appendix 1) Blenz coffee (www.blenz.com) Blenz opened their commencement exercise coffee shop in February 1992 on Robson and Bute Street. They are famous for handmade coffee. They have 61 stores in British Columbia. They also are doing business internationally like in Japan and Philippines. Their store cost range from $225,000 to $400,000. Tim Hortons (www.timhortons.com) The Tim Hortons chain was found in 1964 in Hamilton, Ontario.The chains focus on top quality, always fresh product, value, great service and community leadership have allowed it to grow into the largest quick service restaurant chain in Canada specializing in always fresh coffee, baked goods and home-style lunches. Waves coffee (www.wavesco ffee.com) The Waves Coffee House franchise was founded in 2005 at Hastings and Richards Street in downtown Vancouver British Columbia. In 2008, Waves coffee was recognized by the Brand Coaches as the Hottest Brand in Canada. They have also been recognized as the Best of Brands by over 1,500 coffee retailers. Today there are 31 Waves across British Columbia and Alberta with more to come. Starbucks (www.starbucks.ca) Starbucks is one of our prime competitors located near intersection of Robson and Granville. Starbucks is one of biggest coffee companies in North America with headquarters in Seattle, Washington. Starbucks has 20891 stores in 62 countries and 1324 of them are in Canada with generating revenue around $13+billion. Caf crepe (www.cafecrepe.com) Established in 1999 cafe crepe imports tradition of the classic European caf to North America, Caf Crpe specializes in Parisian sweet & savory crpes, French baguette sandwiches, and grilled Italian Panini.As aninternational caf, Caf Crpe also offers world classics like a half pound certified Angus burgers, pommes frites (French fries), thin crust pizza, and a full traditional breakfast menu that includes Eggs Benedict and an exciting motley of omelets, among other specialties. In addition to serving exceptional Italian roasted Lavazza coffee, Caf Crpe is fully licensed, offering a vast choice of alcoholic beverages and cocktails, on with select beers and wines. 7-eleven (www.7-eleven.com) Since 1927, 7 Eleven has grown and evolved into the worlds largest operator, franchisers and licensor of convenience stores. The company operates franchises and licenses more than 8,600 stores in the U.S. and Canada. Of the more than 7,800 stores the company operates and franchises in the United States, more than 6,200 are franchises.Estimated sales and market shareWith the targeting mix that we are foc utilize on, we expect the average of 400 to 600 persons per day during the first year. We have estimated our customer pul monary tuberculosis about $3.5 due to premium pricing on some of the items. We presume that the total cost of sales would be about 14%. We expect the maturation of our sales to 700+ customers per day for the second year of operations. And when the business will be stable and well-known we can reach the level of 800+ customers per day. The Marketing Plan setThere are dissimilar aims of pricing that we will focus onSurvivalProfit maximizationMarket share goals.Pricing Depends on various factorsInternal Factors-Marketing mix strategyCostsExternal Factors-Nature of the marketCompetitionCompetition Based Pricing- We will also be utilise this strategy at some stage when we get a stable number of customers in the market and wherefore we can look at a prices level among our direct competitors, so we can adjust our prices according to that. Marketing Penetration strategy- We can charge slightly less what our direct competitors are charging for the resembling product. The Penetration str ategy is usually used for quickly achieving a high volume of sales and to attract customers. Under this strategy product is widely promoted and price is kept comparatively low. As we will be new in the market, we will definitely go for a penetrating, this way we can have a bond with regular customers and can attract new customers. We created a detailed list of prices which we are passing play to start-up the caf with (see Appendix 2).Advertising and PromotionsNewspaper and Magazines- This will also be a good way of advertising of our product to market. We can promote our latest product in daily or weekly newspaper to give our customers as an offer for the first day of new product. We will be giving ads in local newspaper 45 days in the first place the opening of our Caf. The newspaper charges about $6 per column inch, so an ad that is two columns wide and two inches tall would be $24 for each day. set up Signs in Neighborhood- This is also a unique way to attract customers. The signature of our coffee shop will be placed in different locations, so people can see the ad of new coffee shops and they might come to try something new. For century boards it will cost around $900. mountain out values cheque- We will attract customers by giving value cheque worth $10 to first 100 customers. They will be desirable to redeem the money at any giving point of time. When we open the store, it will create a big attraction to customers. Hand out aeronaut discount offer- We will distribute flyers by dropping it to mail boxes, attaching any discount offer on their first coffee, sandwich or any snack. We will make our flyers on Closest to DL (95mm x 210mm) so it will be inexpensive to make 50 flyers will cost $9.74+ tax. So deoxyguanosine monophosphate flyers will cost $194.80+tax.Social Media- We will alsopromote our caf through social media like Facebook, Twitter and YouTube. We will tweet the promotional offer on twitter, so customers can have an access to discount c oupons online. Website- We will create our website and advertise all our products there, so people can know about our products. There will be some discount coupons on the website, the customer could print it and redeem at any point in the store. It will cost us for a basic website $2500 to $3000 and to manage the website and to develop it $75 to $100 per hour. So this will be less expensive than social media and own company website can give people better option to have a look at our menu and daily or weekly promotions. development planDevelopment statusOur business plan is on developing stage. We have a very good plan to start our business, having the past experience of some partners will help us managing the coffee-house. We are going to direct the place in Vancouver Downtown on the intersection of Robson and Granville. We are planning to start the construction work first, after that we will give priority to the interior work. Next, we will arrange and fit the machines and dishwa shers according to our layout. Along with the customer service we are providing customers with free WI-FI hotspot, dividing line TV and comfortable chairs and couches. So our customers can enjoy their coffee while sitting and watching TV or surfing the Internet.Proprietary issuesThis is the trademark for our caf. It is going to distinguish our service from those who are doing the same business in the market place. The registration of trademark is not mandatory but we are going to establish it before the opening, because it gives us obvious proof of ownership. Furthermore, we are going to test our products like coffee and other eatable items through the CISPR EMC testing laboratory beneath the Canadian standard association plus we will test our caf under UL testing laboratories for safety. After getting the approval, we will give some free samples to potentiality customers for promotion and feed hind end. Operations planLocationThe coffee shop will be at Granville and Robson Stre et in Vancouver Downtown (see Appendix 3). It would be an excellent place with constant shoppers during the week plus business people and people who work in Downtown during weekdays. The coffee shop will be handily in the heart of the most popular shopping area in Vancouver and close to the Vancouver City Centre Sky Train station, which would allow attracting more fare people. Due to the enormous market size, the growth at this area rate would be considerable. The Vancouver Caf will give highly comfortable seats for 24 customers with hours of operation from 6AM to 8PM.FacilitiesThe total space available for the caf of 600 sq. feet will offer the space for a lounge seating area, fireplace, bookshelf, back room, handicap-accessible washroom, and kitchen (See Appendix 4). The premises are available for lease at an asking rate of $30 per square foot, net. The total annual rent would be equal to $180,000, which equates to $15,000 per month, as the listing agent informed us that the l essor is willing to reduce the monthly fall inment from $18,000 to $15,000. We will be eligible for the discount in case of a lease contract for at to the lowest degree three years term. The lessee will be expected to give a personal guarantee together with a security deposit of $10,000.EquipmentTo start-up our business, a course of equipment are required. As mentioned in the Development section, we will need to buy a list of equipment costing in total of $ 28,344 (see Appendix 5). All the equipment will be brand new and prices listed include delivery and setting in place. All the items will be purchased from Stealth Coffee Systems Inc. As we already negotiated, we would be eligible for an additional discount of 5%, if the amount will be paid within 90 days after the purchase. So, the estimated amount with discount will be paid for the equipment equals to $26,927. The installation of the equipment will cost us additional $ 25,000. Lead time for the delivery of the equipment is t hree to four weeks. The equipment will be amortized by using the straight-line method with an estimated useful lifeof 15 years.Supply ChainPacific Coffee Roasters has been chosen to be the primary supplier for the best specialty coffee. The company is conveniently located in Downtown, close to our coffee shop. Pacific Coffee Roasters is a broad line coffee distributor which will touch all our supply needs. The inventory will be checked twice a week to make sure that we have enough in back stock. The entire inventory will be placed by dates of receiving to follow the first in first out system. We are expecting to place indian lodges and receive new inventory on a weekly basis.Human ResourcesTo operate the coffee shop we will need to hire six splits to split them up in two teams (see Appendix 6). The previous restaurant experience will be required, but exceptions can be made. All the hired employees will receive an encompassing training. Later, for new employees we will use on-th e-job training technique to increase their performance and decrease the time of the training. A starting wage for a cashier will be $10.25 per hour also we will use a bonus system based on the employees performance.Management teamIs the omnibus of the Vancouver Caf and will be responsible for overall operation of the business. Head received a degree in Economics from the Russian Far Eastern University in 2006. In addition, he is currently pursuing a Business Management Diploma at Douglas College and he will graduate from the program in declination 2014. Head has an extensive experience in strategic planning, as he had been working for a production company in Russia from 2006 to 2012 as a preparedness Manager. . is the Vancouver Cafs Supervisor of Team 1 and will be in charge of running day-to-day operations. During peak hours, he will be helping to his staff. Supervisor1 currently studies at Douglas College on Business Management program and will graduatein December 2014. He has 4 years experience in the restaurant industry, as he worked at coffee shops in Vancouver. His experience varies from a cashier to a supervisor of the coffee shop. Through the work experience he received a sufficient amount of expertise to run the cafs operations. He will be responsible for the hiring and training all the caf employees. At this position, Supervisor1 will report to the Cafe Manager. . is the Vancouver Cafs Supervisor of Team 2 and will be in charge of running day-to-day operations. Supervisor2 currently studies at Douglas College on Business Administration program and will graduate in August 2014. He has 2 years experience in the restaurant industry. He will be supervising his staff and helping out during peak hours. He will be responsible for the purchase of supplies and management of the supply base. At this position, Supervisor2 will report to the Cafe Manager.SWOT AnalysisOpening a coffee caf is not about knowing the difference between mocha, latte, and cappuccino but often more than this little part. Creating a SWOT analysis identifying the good, bad and potential ugly, our customers, overcoming the competing coffee shops and strengthening our merchandise plan for our business is essential before piteous forward.StrengthsEasy to get financing.Easy to start up business.New talents from partners.Extensive beverage menu.Cost leadership.Value based customer service.Location.WeaknessesLack of experience.Unknown company history and background.Divided authority.Number of competitors in the market.Too many products to start with.OpportunitiesContinuously expanding.Bring in different types of drinks from different parts of world. Expand into franchisee based business.Joint venture with different business organizations (e.g. Gas stations, grocery stores, cinemas and many more that can allow our coffee shop in their business ). carry keen investors into the business to expand.International markets.Online market.ThreatsHigh risk of failure.Confli cts might occur between partners in the future.Status as an independent coffee shop.Change in coffee trends.Recession.Rises in the price of raw materials. paucity of specific coffee beans from suppliers as demanded by the market. Change in technology in operating coffee making equipments. Change in government policies.Implementation scheduleAn implementation schedule ensures the accomplishment of each stage of the business plan. The development plan was shared into four phases the sign phase, commencement phase, semi completion, and final phase. The team was successful in creating a business plan after a months collective effort. The commencement phase will begin after the initial stage. During this phase the business will be registered and thus the company becomeseligible to take financial help from a financial organization. Semi completion stage will begin after two weeks. During this phase, the process of staff recruitment, menu preparation, marketing and advertising strategies will be carried out under the guidance of experts. This phase takes a month and a half. The final phase will begin at once after the semi completion phase. This phase consists of deciding the interior theme, furniture, appliances and other facilities to be provided at the caf. Financial planFunding RequestedIn coiffure to start our business, the capital cost would be covered under the fixtures and equipment, installation of the fixtures and equipment and decorating which are 26,927, 25,000, and 10,000, respectively, for a total of 61,927. Basically, we are doing our financing from debt and equity investment which The Canadian Imperial Bank of Commerce (CIBC) has agreed to finance a large portion of this expenditure.Our 90 % of the Capital cost is covered by CIBC by using the government-granted Canada Small Business Financing Act (CSBFA) program. Interest rate would be prime plus 4.25 per cent, which includes a 1.25 per cent administration fee paid to the national government. We will do monthly payment up to seven years in order to pay all the debt. CIBC has agreed to a loan for $ 178,090 which covers restoration expenses, personal guarantee from the owner for 25 % of the loan amount.The owner is planning that the balance of the funding will come via a $ 19,787 remaining balance, allowing him a 100 % of the common shares in the corporation.Financial ProjectionCaf Vancouver is expected to make a profit of $ 168,200 in its first year of operations, which is a good indication for the company. The $657,000 is estimated for the first year sales figures falls way above the breakeven point by $186,787(where as B-even is $470,213). Not only this, as indicatedin the cash flow projection, the initial CIBC loan and $19,787 equity investment give the operation more than adequate cash flow. This gives an opportunity to our business to repay the loan faster.Risk FactorsIn order to start a new business venture, there are many risks that must be taking into consideration. Below are the some of the risks associated with caf business 1. excitement Safety Caf Vancouver will limit the impact of a fire by ensuring the business has compensation, insurance protection, including adequate business premises insurance as well as business interruption insurance. 2. Inadequate Capital Despite of a solid business plan many Cafe fails because they lack adequate funding and planning. So to decrease these risk Cafe Vancouver is planning to have several months of funding to cover the costs of salaries, food and bills. 3. Food Safety Concerns If any customer becomes injured on the premises or where an illness is attributed to product the $ 1,000,000 compressive general liability insurance coverage will insure the business has adequate liability. 4. Shortage of supply This risk is considered as not important because there are wide variety of suppliers in downtown might be chosen in case of shortages with supply.Divestiture/Harvest StrategyIn case of any quarrel, any p artner wants to exit the business or if sales cannot be made then the assets of the business will be sold off individually. Firstly, company will try to sell this commercial coffee making equipment locally but if the quenched arranged cannot be made locally then the equipment will be sold over the internet. The money from selling this equipment will be used to pay off the debt obligation of the business and remaining money will be paid to the owner.However, this is not supposed to happen because the concept has significant upside latent, builds good market share. If everything goes according to the plan, it is expected to attract the attention of large national. The ownerwould sell the business only and only if a healthy profit is given by a buyer.

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