Marketing Plan for Coffee Shop.

August 30, 2017 Marketing

Marketing plan for coffee shop. I would like to propose a marketing plan for opening a coffee shop in the city of Moscow. Over the past two or three years, a coffee shop in Russia managed to grow in a socio-cultural phenomenon: at once there was like a house of cards, the Soviet culture of consumption of coffee. The drink was no longer just a utilitarian morning stimulant and has a satellite pastime very European style: the windows from floor to ceiling, special atmosphere, soft music, dozens of varieties of coffee.

However, besides all this, coffee is a business not only successful, but also has today a huge potential for development. No special studies and assessments of the market in Moscow stores to date has not been – in the press figure slipped to 10 million dollars, but experts believe that these data should be multiplied by at least two. The most interesting thing that the threshold for entry into this market and now is quite low: in Moscow, a city with more than ten millionth populations, working a little over 100 coffee houses.

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Specifics of the situation are that the number could double, while you read this magazine: now the market has several network operators, and is constantly expanding its presence in the capital, is also aware of the plans a few more networks to start an active expansion. Reasons for networkers choose this format are clear: it is advertised brand, uniform standards of service, a close range of each institution network, the ability to reduce costs through bulk purchasing and a simpler solution to the problem of recognition of the brand.

Despite the fact that non-network “individuals” to open coffee shops and more difficult in the financial and organizational sense, their share in the capital market is also growing. It has its advantages: any possible error in a “single” coffee can be effectively contained and eliminated, while the network structure. In this case, its removal might require significant effort and investment.

Virtually all of a hundred people working in Moscow stores located in city centre, the solution is obvious, but due to apparent lack of free space on the first floor, which leads to amusing oddities: some streets cafes located opposite each other, and in other areas as needed to take a few quarters, to drink a cup of “cappuccino”. However, here is not so simple: not enough to win the premises on the prestigious street, to automatically become a successful – proof that some half-empty coffee shop in the most central that neither is “prime time”. Here are some basic things, like the subway station nearby, but there are subtleties.

So, choosing a place for coffee, you need to pay attention to the presence in front of a space – the area, a wide pedestrian street. Attendance badly affected by the narrow sidewalks, and the flow of cars in front of the windows, as well as unsightly structures of concrete and glass for windows. Unlike, for example, conventional restaurants, comfort and atmosphere of coffee shops can not build solely from the interior, must take into account a large number of external factors. In a survey of the population, I have come to the conclusion that the main visitors of coffee in the evening – students and young working people aged 16 to 25 years.

It is also interesting that, according to observers, 20-30% of the tables in the evening engaged in exclusively female company. In the daytime, a significant portion of visitors are yuppies in ties – is becoming fashionable to hold business meetings in a quiet, not noisy coffee shops. In the near future the situation may change, but right now, about to open their own restaurant in downtown Moscow, it is worth trying to place it near the university, a beauty salon or a few large office buildings.

May be not without interest the British experience – there network coffeehouse opened their mini-branches directly into the foyer of the office centres. Coffee boom in Moscow ends today in the city centre. Come to the sleeping areas no one, no one has yet solved. This is his explanation: it is obvious that it was not in the potential number of visitors per square meter – in the marginal new buildings are millions. Nevertheless, it is not necessary that people be happy entering the cafe, located in the centre will do the same, while at his residence.

Intuitively, the existence of such a phenomenon understood by many, but the words to describe the nature of the potentially low attendance stores in residential areas is difficult. However, no mystery in it, just use the standard marketing tools. To formulate success factors for coffee at a choice location, it is necessary to realize the functional purpose of the coffee shops to understand who the main visitors to coffee shops are, establish the reasons for the visit and the expectations of clients.

Extensive market research to ensure an acceptable accuracy on these factors, Russia has not carried out, and use the western calculations on similar topics can be used only in extremely limited range. Nevertheless, based on such methods as observation, analysis of secondary information, expert and sample surveys of visitors, I got some very interesting information. The most common presentation and the association can be divided into two main categories: the first group refers to an elusive atmosphere that accompanies this type of article.

She described roughly as follows: “cosy, romantic, soft music, dim lights. ” Respondents were also asked to respond to the culture of a country may include visits to coffee shops. The issue has caused unexpected difficulties, but by its results became the leader of France. In other words, latent association, at least part of the visitors are in the range of their ideas about the coffee culture in France – interesting information for network marketers, as one that replicate the style of the American Starbucks.

The latter, incidentally, are beginning to tire and consumers – this explains the success of Moscow’s “niche” expensive coffee “Aristocrat” and “Donna Clara. ” Problems outlying residential districts no less problems than overpopulated and mired in constant traffic centre. Old shabby houses, disgusting work of utilities, proximity to markets and unsanitary significantly greater than in the centre, the concentration is not always sober, angry at life and the power of the characters – not the most pleasant neighbourhood.

Obviously, the logical course would be open in these areas are not “coffee for the rest” with chairs and a dozen kinds of cakes, leaving them the prerogative of the central streets, while the other type – the utilitarian “coffee for breakfast, which drops into before work or during lunch time for espresso and a sandwich. This niche in Russia almost a hundred percent empty, and the cost of opening such establishments is much lower – for example, can restrict the rental is much more compact space. In addition, the outlying areas of low social level – not all of Moscow.

Now under active construction of expensive housing, in fact – the whole new areas with planned infrastructure, which would fit perfectly utilitarian stores. However, owners of coffee houses here have a hard time: as a rule, suitable for opening a catering places are “scored” well before the end of construction, for them to fight. To do this to anyone especially now do not want: long, troublesome and uncertain it worth it. Nevertheless, niche utility stores are beginning to be filled: the last opening in shopping centres and airports, where they engaged exclusively networkers.

There is a feeling that the players are just beginning to grope for this part of the business – understanding its appeal and potential (as in Moscow, major shopping centres are opening almost weekly), the proposal will quickly catch up with demand. Taste of figures is clear that the choice of location for the coffee – just the first step. Curious situation today is stored on the equipment market: price dispersion in the same model at different retailers is relatively small, the same mind staying with a half-dozen manufacturers are considered the best Italian brands.

Among the major names are here – La Cimbali (in Italy for the performance and reliability of these machines are referred to as “cash cows”), Faema, Franke, Rancilio. There is a choice between automatic, semi-automatic machines to brew coffee and super coffee-machines. Experts recommend using semi-automatic – in terms of price / quality ratio to date is the ideal solution for a small coffee shop, practically does not require the supervision of the bartender who made the coffee.

As far as super coffee-machines that can cook up to 240 cups of coffee per hour, and prices that start from 8,000 dollars, then use them in smaller stores is unlikely to be justified – the equipment will be commonplace to stand idle and will pay off soon. In coffee-machines, however, are indisputable advantages. Sergey Pichugin, senior manager of sales department of Ionia, which specializes in the supply of Italian coffee and equipment, notes that “the best coffee-machine is a complete process control coffee and automatic accounting of supplies and sales. “

When selecting hardware should pay attention to the number of groups – simply put, how many cups can be filled with a drink at the same time – and the capacity of the boiler (where everything is simple: the more the better). The price level for each of the above items today about the following: semi-automatic with one group capable of servicing a small cafe – 1 500-2 500; machine with two or three groups – 2 500-5 000. Tea is the most expensive and important pieces of equipment, under the model selected grinder (300 – $ 700) and water compressor (about 200 dollars), all the rest – showcase, refrigerator, etc. Total cost of 3 000-4 000. More about 7 000-10 000 dollars will be spent on equipment pastry shop, but without it you can do, purchasing desserts from outside vendors. Of course, there is no limit to perfection: there is a huge amount of extra bar equipment such as chillers for milk and dryer for cups. Says Sergei Pichugin, much still depends on the qualifications of the bartender, for example, “if not pre-heat the cup, foam in a cappuccino quickly melted – you get a low-quality drink. Ioinia, incidentally, offers consumers a system Trade-In, in which the used coffee machines from any manufacturer and in any state with a surcharge on the new changes. In addition, equipment is available to rent, is it worth 50-200 dollars a month depending on the type of machine. The price includes delivery and installation of equipment, personnel training, advertising support (cups, saucers, etc. ) and a 20% discount on coffee beans. In addition, according to Sergey Pichugin, 20% of the amount of rent for a year “fixed” for a client – a sort of savings fund, which is a credit redemption equipment.

In Ionia also say that when buying a coffee maker, should pay special attention to the possibilities offered by the seller repair and service – buying a cheap unreliable espresso machine, you can spend considerably more on its maintenance. As a result, the picture is paradoxical: a coffee shop today, you can open with an initial level of investment in the 30-40 thousand dollars (not including room rent, about this below), will pay off as investments, according to various estimates, and depending on various factors, 2-4 months. Shaped Klondike!

By the way, some coffee companies offer interesting trade: a small semi-automatic coffee maker is set free regular customers of large quantities of coffee beans. As to the latter, the pricing depends on the variety, country of manufacture and the current market situation, but the range of Russian wholesale price per kilogram of grain now 15-40 dollars a month average coffee shop requires no less than 20-30 kg. It is curious that the world price of grain is much higher: according to some reports, the formation of pricing policies for the Russian producers onsider the specifics of the growing market and are afraid to alienate its exorbitant prices. Alex Kadenko, manager of the regions specializing in sales of coffee beans and coffee company “Alef-coffee, however, are sceptical remarks that the reason for the low level of prices that importers of old Soviet habit of continuing to buy the cheapest grain, while the market is already quite willing to pay more for high-quality varieties. Regional economy We return briefly to the amount of initial investment.

According to Andrei Petrakov of “assessor”, in Moscow at least 100 000 dollars, with much of the money needed to rent premises: 800-3 000 dollars per sq m per year, depending on the location, the option to purchase will cost even more expensive: 1 000-10 000 dollars per sq m, again depending on geography. Now, attention! Opening a coffee shop in the regions above the amount of start-up costs can be divided into two. Substantially lower rental rates are very cheap furniture and unspoiled monstrous metropolitan staff salaries – except, importantly, absolutely pristine, empty market, where there are still no network system stores.

Again, Klondike – a huge gold mine, a market with zero degree of saturation, still waits for its explorers. Wait, however, will not last long – Alex Kadenko notes that regional orders for equipment already caught up with the capital and continue to grow rapidly. Such a trend from last year, during the same time, the market for regional sales of coffee machines increased significantly. “Regional entrepreneurs – said Kadenko – started well versed in the art, prefer a strong household average professional espresso machine in the price range of 1 500-3 000 dollars. “

Each region, however, has its own peculiarities: for example, must take into account climatic zone. In this regard, less expensive southern areas – where you can create a coffee shop in the form of fairly light construction with large windows, storefronts. It is obvious that the provision of a similar level of thermal comfort somewhere in Yakutsk will cost significantly more. In the oil-gas bearing areas of salary levels are comparable with Moscow. Somewhere in there own furniture production, somewhere they’re missing. Somewhere goods, equipment can be replaced by local, in other regions it will take from Moscow, and will cost more.

All this affects the final cost of organizing the coffee shop. Let us dwell on the numbers a little bit more. Rent in the regions on average 100-400 dollars per square meter per year, the redemption value – 300-1 000 dollars per sq m. Repair of one square meter space in the regions would cost approximately $ 100 (this is taking into account the replacement of electrical, plumbing, etc. ), but experience shows that turning to friends, you can use the services of disaster brigades – will be released in two to three times cheaper. Furniture

Organizing the coffee for 50-60 seats in the province can “equip” for 1000 dollars (without breakfast bar) – perfection, of course, no limit, and no one interferes with entrepreneurs to write design chairs directly from Italy, but still reasonable to use production of local furniture factories. A set of cups with a spoon (required pieces 200) sold in the region for 50-80 rubbles, sugar (60-80 pieces) – for 50 rubbles. On the equipment, however, is unlikely to save (see down cutting with generic figures). Alex Kadenko notes that transportation costs for delivery of its minimal.

In addition, almost every Russian city, whose population is approaching 500 thousand inhabitants, there are branches in Moscow suppliers of equipment for coffee shops. The situation with the staff in the regional average is as follows: cook will cost $ 100-200 per month, pastry – about the same. Salary control starts from $ 300, the bartender – 150. $ 100 – the average regional wage barista (bartender, who specializes in the preparation of coffee), but in the province of the services until the last resort is not accepted.

Service waiters in the coffee shops, where they are provided in the regions are estimated at about $ 50 a month. Steep rapids Payback In all of these costs have to remember more about the offers important things. First, opening the institution in the region would almost certainly have to obtain a permit in the local administration that will result in a certain amount. Secondly, the coffee house today – a new genre for the regions, and in its promotion and advertising may also need funds.

First paragraph, the regional “administrative resource”, can not be discounted in any case – “work” with officials in local administration can count on the best places in the city center, and full cooperation. And vice versa: no land to the authorities, you can safely forget about the dream peacefully conduct their business. For the second time in the “Assessor” recommended: to hold out until the exit in return, have a financial “cushion” for three months – in other words, the above-mentioned amount of seed capital to be multiplied by three months the inevitable losses.

However, the threshold for recovery depends greatly on many factors. Andrei Petrakov adds: “In the poorest regions of the coffee shop can not pay off at all: a cup of coffee and cake,” pulling “together for 5-7 dollars, represent a third of the average local salary. ” And, we would add nothing but anger, potential buyers can not call. Reduce the prices dangerous – no matter how low or was today the entry threshold to regional coffee market, to work, and more at a loss can afford a few. To function properly, a coffee must serve a day about 200 people – the number f average and varies by day of week. In the calculations take into account that the lowest attendance – on Monday, then gradually increases until Saturday, where there is an average of 3-5-fold excess of Monday, Sunday attendance again falls into two or three. The average amount of the check in the regions can be estimated at $ 4. Total approximate revenue per day is 800 dollars a month – 24 000 dollars. Subtract from this rent and wages, taxes, etc. – The output will approximate profit forecast.

Or another figure: Sergei Pichugin of Ionia said that at a cost of a cup of espresso at 10 cents its average selling price in Moscow is 50 rubbles (profit anyone can count himself), whereas in the region – 25-30 rubbles. Also, of course, a serious figure, but the profitability of Moscow dream is not necessary. Above are the figures for the safe region in the poor, the market for catering is built as follows: expensive by local standards, restaurants, walks to the local elite, fast food and beer, and unsophisticated food for everyone else and rare inclusions of “wheel” of fast food from Shawarma and sausages.

Place for coffee in a consumer’s structure does not have enough – even being built according to the Moscow sample, and having attractive prices in these regions, they are empty in most “coffee primetime. ” Low start is obvious that the country should be ripe for coffee. Will be the proverbial middle class will be free money, a desire to spend time with a cup of properly brewed espresso – and formed a valuable business, industry. Now is the time the pilot regional projects. Determine go or no-coffee shop is quite difficult.

You need to look at the current level of development of regional restaurant market: if it is divided into at least three price categories and with the largest by volume – the average, this means that there are developed segment sufficiently democratic restaurants, so money is a substantial layer of the society, hence begins to appear middle class. All of this – a sure signs that the region’s time to open a coffee shop. In an effort to assess the attractiveness of the region could go the other way and focus on quality stationary fast food, in particular on a McDonald’s.

This network is very selective in choosing a new region for the establishment of a new object, and audience, “McDonald’s and coffee shops in some segments of visitors and the average amount of the check intersect. It makes sense to focus on the “beacon” of this kind – if in the region have begun to actively operate the capital structure of the network of restaurants, this could be viewed as a departing train whistle: if to hurry, we can catch it, if we really try, we can catch up.


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