Coffee Shop Business Plan

August 5, 2017 Business

Java Culture java saloon is determined to go a day-to-day necessity for local java nuts, a topographic point to dream of as you try to get away the day-to-day emphasiss of life andA merely aA comfy topographic point to run into your friends or to read a book, all in one. With the turning demand for high-quality epicure java and great service, Java Culture will capitalise on its propinquity to the University of Oregon campus to construct a nucleus group of repetition clients.

The company will run a 2,300 square pes java saloon within a walking distance from the University of Oregon campus. The proprietors have secured this location through a three-year rental with an option for widening. The rich person besides provided $ 140,000 of the needed $ 170,000 start-up financess. The staying capital will be obtained throughA Bank of America commercial loans.

The company is expected to turn gross revenues gross from $ 584,000 in FY2001 to $ 706,000 in twelvemonth three. As Java Culture will endeavor to keep a 65 % gross net income border and sensible operating disbursals, A it will seeA net net incomes grow from $ 100,000 to $ 125,000 during the same period.

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1.1 Aims:

Java Culture ‘s aims for the first twelvemonth ofA operations are:

Become selected as the “ Best New Coffee Bar in the country ” by the local eating house usher.

Bend in net incomes from the first month of operations.

Keep a 65 % gross border.

1.2 Keys to Success:

The keys to success will be:

Shop design that will be both visually attractive to clients, and designed for fast and efficient operations.

Employee preparation to see the best java readying techniques.

Marketing schemes aimed to construct a solid base of loyal clients, every bit good as maximising the gross revenues of high border merchandises, such as espresso drinks.

1.3 Mission

Java Culture will do its best attempt to make a alone topographic point where clients can socialise with each other in a comfy and restful environment while basking the best brewed coffeeA or espresso and pastries in town.

We will be in the concern of assisting our clients to alleviate their day-to-day emphasiss by supplying piece of head through great atmosphere, convenient location, friendly client service, and merchandises of systematically high quality. Java Culture will put its net incomes to increase the employee satisfaction while supplying stable return to its stockholders.

2.0 Company Summary:

Java Culture, an Oregon limited liability company, sells java, other drinks and bites in its 2,300 square pess premium java saloon located near the University of Oregon campus.A Java Culture ‘s major investors are Arthur Garfield and James Polk who cumulatively own over 70 % of the company. The start-up loss of the company is assumed in the sum of $ 27,680.

2.1 Company Ownership:

Java Culture is registered as a Limited Liability Corporation in the province of Oregon. Arthur Garfield owns 51 % of the company. His cousin, James Polk, every bit good as Megan Flannigan and Todd Barkley hold minority bets in Java Culture, LLC.

2.2 Company Locations and Facilities:

Java Culture java saloon will be located on the land floor of the commercial edifice at the corner of West 13th Avenue and Patterson Street in Eugene, OR. The company has secured a annual rental of the vacant 2,500 square pess premises antecedently occupied by a hair salon. The rental contract has an option of reclamation for three old ages at a fixed rate that Java Culture will put to death depending on the fiscal strength of its concern.

The floor program will include a 200 square pess back office and a 2,300 square pess java saloon, which will include a seating country with 15 tabular arraies, a kitchen, storage country and two bathrooms. The infinite in the java saloon will be about distributed the undermentioned manner — 1,260 square pess ( i.e. , 55 % of the sum ) for the seating country, 600 square pess ( 26 % ) for the production country, and the staying 440 square pess ( 19 % ) for the client service country.

This belongings is located in a commercial country within a walking distance from the University of Oregon campus on the corner of a major thoroughfare linking flush South Eugene vicinity with the busy downtown commercial country. The commercially zoned premises have the necessary H2O and electricity hookups and will necessitate merely minor reconstructing to suit the espresso saloon, A kitchen and storage country. The java saloon ‘s unfastened and clean interior design with modern wooden decor will convey the quality of the served drinks and bites, and will be in-line with the constitution ‘s placement as an eclectic topographic point where people can loosen up and bask their cup of java. The clear window shows, through which passer-by will be able to see clients basking their drinks, and outside electric marks will be aimed to catch the attending of the client traffic.

3.0 Merchandises:

Java Culture will offer its clients the best tasting java drinks in the country. This will be achieved by utilizing high-quality ingredients and purely following readying guidelines. The shop layout, menu listings and selling activities will be focused on maximising the gross revenues of higher border espresso drinks. Along with the espresso drinks, brewed java and teas, every bit good as some refreshment drinks, will be sold in the java saloon. Java Culture will besides offer its clients pastries, little salads and sandwiches. For the epicure patronage that prefers to fix its java at place, Java Culture will besides be selling coffee beans.

The bill of fare offerings will be supplemented by free books and magazines that clients can read inside the java saloon.

3.1 Product Description:

The bill of fare of the Java Culture java saloon will be built around espresso-based java drinks such as lattes, mochas, cappuccinos, etc. Each of the espresso-based drinks will be offered with whole, skimmed, or soy milk. Each of these java drinks is based on a ‘shot ‘ of espresso, which is prepared in the espresso machine by coercing het H2O through land java at high force per unit area. Such espresso shootings are combined with steamed milk and/or other additives like chocolate, caramel, etc. , to fix the espresso-based drinks. Proper readying techniques are of paramount importance for such drinks. A minor divergence from the sum of java in the shooting, the size of the java atoms, the temperature of milk, etc. , can negatively impact the quality of the prepared drink.

3.2 Gross saless Literature:

Two 1000 circulars will be distributed in the next vicinity, on the University campus, at the promenades and in the selected office edifices within two hebdomads prior to the gap of Java Culture. Subsequently, free post cards with Java Culture indorsement will be printed to increase the company visibleness among the frequenters.

4.0 Market Analysis Summary:

U.S. java ingestion has shown steady growing, with gourmet java holding the strongest growing. Coffee drinkers in the Pacific Northwest are among the most demanding 1s. They favor well-brewed gourmet java drinks and demand great service. Eugene, OR, with its broad and outgoing public and long rainy winter, has traditionally been a great topographic point for java constitutions. Java Culture will endeavor to construct a loyal client base by offering a great savoring java in aA loosen uping environment of its java saloon located near to the hustling University of Oregon campus.

4.1 Market Cleavage:

Java Culture will concentrate its selling activities on making the University pupils and module, people working in offices located near to the java saloon and on sophisticated adolescents. Our market research shows that these are the client groups that are most likely to purchase gourmet java merchandises. Since gourmet java ingestion is cosmopolitan across different income classs and largely depends on the degree of higher instruction, propinquity to the University of Oregon campus will supply entree to the targeted client audience.

The chart and table below outline the entire market potency ( in figure of clients ) of epicure java drinkers in Eugene, OR.

Java Culture will provide to people who want to acquire their day-to-day cup of great-tasting java in a relaxing atmosphere. Such clients vary in age, although our location near to the University campus means that most of our patronage will be college pupils and module. Our market research shows that theseA are spoting clients that gravitate towards better savoring java. Furthermore, a batch of college pupils consider java bars to be a convenient perusal or meeting location, where they can read or run into with equals without the necessity to pay screen charges. For us, this will supply a alone possibility for constructing a loyal client base.

4.2.1 Market Needs:

General tendency toward quality among U.S. consumers decidedly plays an of import function in the recent growing in gourmet java. Additionally, such factors as desire for little indulgencies, for something more alien and alone, supply a good merchandising chance for java bars.

4.3 I Industry Analysis:

Coffee ingestion has shown a steady 2.5 % growing rate in the United States over the last decennary. In 1994, entire gross revenues of java were about $ 7.5 billion with gourmet java stand foring 33 % ( or $ 2.5 billion ) of that. The retail java industry is booming in the U.S. Pacific Northwest. The local clime, with a long rainy season, is really contributing for the ingestion of hot non-alcoholic drinks. At the same clip, hot dry summers drive people into coffeehouse to order iced drinks. Further, java has truly become a portion of the life style in the Pacific Northwest. Its spoting java drinkers are in favour of well-prepared, strong coffee-based drinks, which they can devour in aA relaxing environment.

4. 4 Competition and Buying form:


Harmonizing to the 1997 Oregon Food service Statistics ( NAICS 72 ) , Eugene had 45 established bite & A ; non-alcoholic drink bars ( NAICS 722213 ) with entire gross revenues of $ 14.2 million. Among other constitutions that offer coffee drinks to their clients are most of Eugene ‘s limited- and full-service eating houses. Java Culture ‘s direct rivals will be other java bars located near the University of Oregon campus.

These include Starbucks, Cafe Roma, The UO Bookstore, and other Food service constitutions that offer java. Starbucks will decidedly be one of the major rivals because of its strong fiscal place and established selling and operational patterns. However, despite of Starbuck ‘s entrenched market place, many clients favor smaller, independent constitutions that offer cozy atmosphere and good java at low-cost monetary values. Cafe Roma is a good illustration of such competition.

We estimate that Starbucks holds about 35 % market portion in that vicinity, Cafe Roma entreaties to 25 % of clients, The UO Bookstore caters to another 10 % , with the staying market portion split among other constitutions. Java Culture will place itself as a alone java saloon that non merely offers the best tasting java and pastries but besides provides home-like, cosy and comfy environment, which established corporate constitution ‘s deficiency. We will provide to clients ‘ organic structures and heads, which will assist us turn our market portion in this competitory market.

Buying Forms:

The major ground for the clients to return to a specific java saloon is a great tasting java, speedy service and pleasant atmosphere. Although, as stated before, java ingestion is unvarying across different income sections, Java Culture will monetary value its merchandise offerings competitively. We strongly believe that selling java with a great service in a nice scene will assist us construct a strong base of loyal patronages.

5.0 Strategy and Implementation Summary:

Java Culture ‘s selling scheme will be focused at acquiring new clients, retaining the bing clients, acquiring clients to pass more and come back more frequently. Establishing a loyal client base is of a paramount importance since such client nucleus will non merely bring forth most of the gross revenues but besides will supply favourable referrals.

5.1 Competitive Edge:

Java Culture will place itself as alone java saloon where its frequenters can non merely bask a cup of absolutely brewed java but besides spend their clip in an ambient environment. Comfortable couch and chairs, dimmed light and quiet relaxing music will assist the clients to loosen up from the day-to-day emphasiss and will distinguish Java Culture from incumbent rivals.

5.2 Gross saless Scheme:

Java Culture baristas will manage the gross revenues minutess. To rush up the client service, at least two employees will be servicing clients — while one employee will be fixing the client ‘s order, the other one will be taking attention of the gross revenues dealing. All gross revenues informations logged on the computerized point-of-sale terminus will be subsequently analyzed for selling intents.

In order to construct up its client base, Java Culture will utilize streamers and flyers, use client referrals and cross-promotions with other concerns in the community. At the same clip, client keeping plans will be used to do certain the clients are coming back and disbursement more at the java saloon.

5.3 Gross saless Prognosis:

Food costs are assumed at 25 % for java drinks and 50 % for retail beans and pastries. Proximity to the University campus will order certain gross revenues seasonality with grosss somewhat diminishing during the school holiday periods.

The chart and table below outline our jutting gross revenues prognosis for the following three old ages.

6.0 Management Summary:

Java Culture is majority-owned by Arthur Garfield and James Polk. Mr. Garfield holds a Bachelor ‘s Degree in Business Administration from the University of ZYX. He ‘s worked for several old ages as an independent concern adviser. Previously, he owned the ABC Travel Agency, which he productively sold four old ages ago. Mr. Garfield has extended concern contacts in Beaver state that he will leverage to assist his new venture win. Mr. Polk has a Bachelor ‘s Degree in Psychology from the XYZ State University. For the last five old ages he has worked as a director of DEF Ristorante, a successful Italian eating house in Portland, OR. Under Mr. Polk ‘s direction, the eating house has systematically increased gross revenues while keeping a lower than mean degree of operating disbursals.

However, because of the investors ‘ other committednesss they will non be involved into the day-to-day direction determinations at Java Culture. A professional director ( $ 35,000/yr ) will be hired who will supervise all the java saloon operations. Two full-time baristas ( $ 25,000/yr each ) will be in charge of java readying. Four more parttime employees will be hired to carry through the staffing demands. In the 2nd and 3rd twelvemonth of operation one more parttime employee will be hired to manage the increased gross revenues volume.

6.1 Management Team:

A full-time director will be hired to supervise the day-to-day operations at Java Culture. The campaigner ( who ‘s name is withheld due to his current employment committedness ) has had three old ages of managerial experience in the decidedly industry in Oregon. This individual ‘s duties will include pull offing the staff, telling stock list, covering with providers, developing a selling scheme and execute other day-to-day managerial responsibilities. We believe that our campaigner has the right experience for this function. A profit-sharing agreement for the director may be considered based on the first twelvemonth operational consequences.

6.2 Management Team Gaps:

Despite the proprietors ‘ and director ‘s experience in the decidedly industry, the company will retain the consulting services of ABC Espresso Services, the advisers who have helped to develop the concern thought for Java Culture. This company has over 20 old ages of experience in the retail java industry and has successfully opened tonss of java bars across the U.S. Consultants will be chiefly used for market research, client satisfaction studies and to supply extra input into the rating of the new concern chances.

7.0 Fiscal Plan:

Java Culture will capitalise on the strong demand for high-quality gourmet java. The proprietors have provided the company with sufficient start-up capital. With successful direction aimed at set uping and turning a loyal client base, the company will see its net worth duplicating in two old ages. Java Culture will keep a healthy 65 % gross border, which combined with sensible operating disbursals, will supply adequate hard currency to finance farther growing.


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