Espresso Culture Café Business Plan
Document Type:Business Plan
Executive Summary 3 A1. Identification of the Business 3 A2. The mission of the Company 3 A3. Business Goals 4 A4. Keys to Success 4 B. Market Strategy 13 D1. Ps of the marketing mix 14 D2. Price List for different types of espresso, cocoa, tea, and snacks 15 D3. Promotional Strategy 17 D4. Sales Forecast: 18 E. This location is ideal for a coffee house business since there are many students, passersby, tourists as well as local business people. A2. The mission of the Company Espresso Culture Café is designed to provide an exceptional atmosphere to customers where they can enjoy high-quality coffee, tea, pastries as well as other beverages and snacks. Other than that, it is a place meant to host customers allowing them to interact and socialize in an accommodating environment.
The coffee house will aim at providing the best customer service possible, great aura and consistent quality products in one of the best locations available in Oakland at genuinely affordable prices. Company Summary B1. Industry History When people are in the mood of socializing, interacting, sharing ideas and exchanging news the often visit coffee shops to also have some peace of mind and enjoy a relaxed atmosphere. Initially, coffee shops had been places of gossip activity, economic discussions, and venues for making or finalizing business deals. In the 17th century, coffee houses gradually developed to become places where people would get together and conduct activities such as writing, exchanging perspectives on different opinions, conduct the business activity and transactions and most important venues of relaxing while even reading.
It is also observed that due to the lack of services such as postal addresses in the earlier days, coffee shops acted as mailing addresses since most people visited the coffee shops on regular occasions. McCosker & Wilken, 2018) B2. Legal Form of Ownership Espresso Culture Café is set to be a limited liability company in Oakland California which will be selling coffee, tea, chocolate as well as snacks and other beverages in its premium coffee bar. The major investor of the organization is Sovannvichet Kim, who own 60% of the organization cumulatively. Other stakeholders of Espresso Culture Café include Paul Berlin and Jonny Markel who hold minority stakes. B3. Also, when setting up the coffee shop, a developmental plan is as necessary as its approval from the local council and therefore among the legal issues that will be put into consideration.
B4. Management Structure The general manager of Espresso Culture Café will have the following roles and responsibilities; The general manager's main task is to be generally in charge of the operations and most importantly the staff. He or she will be required to report to one of the owners of the business- Mr. Sovannvichet Kim. For example, in the finance department and the human resource department, it is the role of the Human resource management to ensure that the company conducts a well structure employee selection so that the right personnel will be employed by the company to handle the finances and enhances strong internal control system. On the other hand, there must also be a link between the management, marketing department and the government through compliance of statutory rule that pertains café operation.
Compliance to legal requirement will not only ease the management work but it will also reduce legal fees that will be charged to the company as a result of non-compliance hence this will reduce company projected income. Marketing team need also to be strong and comply to all marketing requirements so that it won’t incur more cost in marketing and less responses in the market. B5. Therefore, Espresso Culture Café will be a great establishment that will help continue the tradition of coffee shops and coffeehouses. Its establishment will be at a proximity to the Patten University and will, therefore, target its students and faculty over and above the rest of the population in Oakland that consists of a large workforce and teenagers.
In addition, coffee shops are considered as a convenient meeting point, study location and relaxation venue which leads to developing a consistent clientele. With the help of a research undertaken on the market, indications are that the above-named members of the population in Oakland will suit our business as customers. Espresso Culture Café is also considerate of people from different income categories and takes care of that in the price listings. Industry Analysis The success of the business of coffeehouses is evidenced by how Starbucks and McDonalds have developed to large and renowned worldwide organizations. Presently there are more than 15,000 coffeehouses in the United States and this figure is expected to soar even higher in the future due to the rising number of coffee drinkers.
This industry has grown steadily over the years despite there not being a significant rise in overall sales. However, the business does not require heavy investment capitals, and this helps the industry to indicate high-profit margins assisted by the low operating costs. Currently, there are more than 160 million drinkers of coffee in the United States as analyzed by the report from the National Coffee Association. which is a negative and slow growth rate. The negative growth rate was evidenced as a result of increased level of government consumption. increase in government consumption indicates that there is an increase level of tax levels which led to a reduction in company’s profits generated. Over the last five years, spending on vacation has increased more so in skating and climbing which therefore has attracted more people hence this has increased the value of sales.
Between 2016 to 2021 there will be a projected increase in the growth rate to a rate of 4. • Within the first few months of operation, Espresso Culture Café intends to install high-speed WI-FI to act as one of the unique selling points. • Since one of the target market population is students from around Oakland center, we intend to avail live music at specific times and days of the week and we shall also consider closing later in the night so as more customers avail themselves. Weaknesses • One of the main weaknesses of this business idea is that the owners will require to invest a large amount of capital particularly in covering the costs of startup and salaries to the workers. Patience will be required to accept that profits will indeed come by later.
• This business will be started initially on a small-scale basis and the location in which we are situated in will make it difficult to expand, in case the need arises. D. Market Strategy D1. Ps of the marketing mix Product in the marketing mix of Espresso Culture Café The product mix from Espresso Culture Café constitutes a range of products from coffee flavors to snacks designed to appeal to our target audiences. In addition, the weather conditions throughout the year are put into consideration for instance where in the winter, cappuccino is available in plenty. Latte, expresso and Americano flavors are also available to suit our middle-class customers and drinks such as lemonade are available for our younger clients such as students.
D2. Price List for different types of espresso, cocoa, tea, and snacks Item name Cost-Regular size ($) Cost- Large size ($) Espresso 2. Ristretto 2. Macchiato 2. Cappuccino 2. Lungo 2. Doppio 3. Ovaltine 3. Spice Cocoa 3. Chocolate Cocoa (white) 3. Sales Forecast: Aug Sept Oct Nov Dec Jan Feb Mar April May June July Beverages 4750 5970 7220 10670 13040 12830 13690 14750 15850 15550 15960 16770 Snack items 1250 1130 1350 1275 1390 1265 1195 1200 1152 1290 1295 1170 Coffee beans 590 550 630 570 850 625 523 600 630 580 545 655 Total sales 6590 7650 9200 12515 15280 14720 15408 16550 17632 17420 17800 18595 For the first year of doing business, it is expected that Espresso Culture Café will host an average of 55 customers a day who spend approximately $5 a day. These statistics were reached through a survey done in nearby coffee shops which will offer competition throughout the existence of our shop. It was observed that the surrounding shops which offer similar products and services have a customer traffic of around 200-500 customers who spend an average of $5 in one day.
Espresso Culture Café also expects to reach and maintain the said figures once it starts doing business. It is also projected that sales revenues will increase at an average of 10% on an annual basis once the business establishes itself and the customer traffic to also increase to over 200 customers per day in future. weekly Business owners Convening frequently through regular staff meetings to address issues at hand. weekly Manager and staff Milestone The milestone table shows the starting and ending dates of the task that is stated in the monitoring plan. The project is assumed to begin from 1st august 2018 and run to 14th September 2018 and it will be represented on the following table. Task start date Days to completion Task 1 1-Aug 12 task 2 8/14/2018 14 task 3 9/7/2018 21 task 4 9/21/2018 14 task 5 9/30/2018 7 task 6 10/2/2018 4 task 7 10/14/2018 12 G.
Financial report G1: Financial projections The business got off to a slow start as expected since it had to deal with competition and adjusting to a new environment. • Advertising, travelling, maintenance and utilities expenses will fluctuate based on the sales and also other factors affecting the projection. G2: Financial Position The expectations of a business are usually very high, but the actual performance is witnessed once the business starts to operate. Though with patience and tolerance as well as good management, a business grows to fulfill the potential that had been forecasted when establishing the business. The first two months of operations by Espresso Culture Café indicated that losses had been incurred but as the days went by, profits were realized.
These losses were attributed to a slow start by the business where brand exposure was not an adequate and proper establishment of consumer behavior was not present. References Analysis, C. GRIN - Coffee Shop Industry - A Strategic Analysis. Retrieved from https://www. grin. com/document/111348 An, K. Marketing Plan. McCosker, A. Wilken, R. Café Space, Communication, Creativity, and Materialism. Retrieved from http://journal. In Business Model Pioneers(pp. Springer, Cham.
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