COFFEE SHOP BUSINESS PLAN

CHAPTER I BUSINESS CONCEPT A. PRODUCT DESCRIPTION AND BENEFITS The set of choices of the coffee shop will be built around espresso-based coffee drinks such as lattes, mochas, cappuccinos, etc. Each of the espresso-based drinks will be offered with whole, skimmed milk. Each of these coffee beverages is based on a 'shot' of espresso, which is prepared in the espresso machine by forcing heated water through ground coffee at high pressure. Such espresso shots are combined with steamed milk and/or other additives like cocoa, caramel, etc., to prepare the espresso-based beverages. Besides coffees, we offer teas, mixed sodas, frozen coffee beverages, pastries, and other baked goods. Proper preparation techniques are of paramount importance for such drinks. A minor deviation from the amount of coffee in the shot, the size of the coffee particles, the temperature of milk, etc., can negatively affect the quality of the prepared drink. B. PURPOSE OF THE BUSINESS When starting a new business, writing a business plan is an important first step to getting started. A business plan will lay out the direction for our entire Business called Coffee shop By planning what we are going to do we will be establishing a framework and will be able to tick off items from our steps "to do" list as we go along. This is an extremely effective way to manage any tasks that we have. Starting and managing a business takes motivation, desire and talent. It also takes research and planning. The process of developing a business plan will help us to think through some important issues that we may not have considered yet. Our Business plan will become a valuable tool as we were set out to raise money for our business. The purpose of the coffee house does sometimes take on the purpose of the centre of society A Coffee Shop is a fine business but we must know how to avoid the blunders. Attending a seminar first before proceeding.
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COFFEE SHOP BUSINESS PLAN

The coffee shop business is now booming, with almost everyone hanging out or meeting someone at a coffee shop, do some works, read a book, entertain, or simply to just pass some time, you will find many things in the coffee house in the name of creativity. You may be able to do stand up or many coffee houses have readings or art displays; it can be a wonderful place for some much need inspiration.The demand for this service is steadily increasing A coffee shop is also a nice addition to a food service facility. This is intended to outline the start-up of the business Coffee shop The business plan has a two-fold mission. One is to obtain financing. The other is to help define the who, what, where, when and how for the business so that the business will have a clear cut plan and operations map. The goals of the business are to provide a substantial income and to create a business and working environment where both the customer and employee are treated with dignity and respect. The coffee house will offer a variety of choices of products to the customers, because The customer is a foundation of a business and keeps it in existence. C. VISION, MISSION, GOALS, AND CORE VISION

MISSION Our Coffee presents a quality cup of coffee at a reasonable price with the very best of customer service. Inspire and nurture the human spirit one person, one cup and one neighbourhood at a time. Our mission will be guided by these 5 principles: 1. Provide the best quality food, beverage and retail products available 2. Create a positive, dedicated, upbeat work environment by treating all employees with respect, dignity, honesty and loyalty 3. Create a warm, inviting, welcoming atmosphere for our customers 4. Develop and promote a loyal, passionate customer base 5. Offering free Wi-Fi internet

GOAL
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COFFEE SHOP BUSINESS PLAN

This research was made to enable to have bright ideas in regards to establishing such business whether small or large scale, in order to achieve and gain profits from what business wherein you endeavor. Objectives Keeping a high standard of food quality and service Maintaining a friendly comfortable atmosphere Provide monthly ads in neighbourhood publications Offer discount coupons Acquire and use a customer mailing list

CORE Take initiative in finding better ways of doing things that will save time and money. Trimming down the line and fresh in the specialty coffee industry. Keep an open and good communication with all staff members. Smile and have fun! We are independent coffee shop with the fair treatment of the small-scale coffee farmers who produce the excellent organic Fair Trade coffee enjoy daily. This is the reason to purchase the coffee from crop to Cup coffee purveyors, who work with a collection of micro-sized coffee farmers in Africa and South America. All of our coffee is organic Fair Trade with the sole exception of our decaf-through the latter is organic. We prepare and service the best quality coffee and we are privileged to serve the highly esteemed student of the University to offer. We take pride in our coffee selection confident, once you taste our coffee, you will see little reason to patronize coffee chain which offer a comparatively product. We offer goods such as our muffins and brownies which are baked in-house daily. All of our food items are of highest quality, being skillfully prepared by knowledgeable staff, food order and never held stationary under heat lamps. Beverages are carefully selected to complement the high quality of coffee to offer.

CHAPTER II MARKETING ASPECT A. TARGET MARKET

COFFEE SHOP BUSINESS PLAN

Customer is comprised in five target groups: Local residents Tourist Local business people Students Travelers passing through

B. DEMAND-SUPPLY ANALYSIS

Many have complained that Starbucks is way too expensive for coffee. At the same time, Starbucks has become one of the most sucessful businesses in the world. Now though with the current financial situation, people are cutting back thus demanding less or substituting other alternatives like McDonalds McCafe. This from the Wall Street Journal: Starbucks Corp. Chief Executive Howard Schultz said the coffee giant is ready to fight back against rivals claims that the companys coffee drinks are expensive and the notion it is losing share to cheaper coffee makers. As it reported a 77% drop in quarterly profit, the company on Wednesday also said it will adjust its pricing in some markets, raising prices of some of the more complicated drinks, while lowering those on basic drinks. For example, Starbucks will offer a grande size iced coffee for less than $2, shaving as much as 45 cents off the price, depending on the market. The moves come as Starbucks is struggling to attract and retain consumers in a recession. Starbucks said U.S. comparable-store sales fell 8% in its latest quarter as traffic fell 5%, and average transaction totals fell 3%. This is how competitive markets adjust prices to be the most efficient.

C. COMPETITORS
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COFFEE SHOP BUSINESS PLAN

In terms of popularity heres the top 5: 1. Starbucks 2. 3. Coffee Bean and Tea Leaf Bo's Coffee Club

4. Figaro
5. Hollys Coffee Shop

D. S.W.O.T ANALYSIS Strengths: Affordable price great ambiance strategic location of the coffee shop new functional facilities good quality service

Weaknesses: low walk-in customers few choices of menu lack of promotional strategy

Opportunities: possibilities of good profits quality variance of menu

COFFEE SHOP BUSINESS PLAN

higher walk-in customers big demand for the service Threats: entry of many competitors increasing cost of supplies competitors wide variety of menu

E. PRODUCT DIFFERENTATION AND COMPETITIVE ADVANTAGE At class on this week we had a discussion about the struggles Starbucks is having of late. In their quest to grow, Starbucks gave up some of what made the Starbucks experience special and their products, therefore, became less differentiated from the competition in pursuit of more market share and sales. The last few years have been especially difficult for them including the closure of hundreds of stores and now they find themselves exposed to attack by McDonalds, something that would have seemed unthinkable only a few years ago. Competitive advantage by constantly looking for new ideas, new products, as well as new experiences for guests. For example, the company hires designers to come up with artwork for commuter mugs. Starbucks forte is incorporating differentiated features such as their different flavored coffees that no other company offers. Market trends are constantly being monitored by star bucks as well. They study every citys personality and how their products can best fit into the community. F. PRICING Coffee is one of the favorite drinks consumed all over the world. There is a never-ending variety of drinks made from coffee, in both hot and cold form. With an increase of price at every commodity right now, the prices on coffee beans are rising too. ARABICA COFFEE BEANS

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COFFEE SHOP BUSINESS PLAN

Popularly used in any local coffee shops around Metro. These are raw and unroasted coffee beans. Sun dried and handpicked coffee beans. 100% Pure and Premium Arabica Coffee beans and Fresh green organic coffee beans grown in the clear mountain regions of the Philippines. Suitable for roasting and Private branding/label. Price cost ranges are follows:

Premium Arabica

Price: 172.00/Kilogram Minimum Order Quantity: 100 Kilograms Supply Ability: 1 Ton/Tons per Quarter Payment

Green organic arabica coffee beans

Price: Php 172.00/Kilogram Minimum Order Quantity: 100 Kilograms Supply Ability: 30 Metric Ton/Metric Tons per Year

Gross Annual Sales Less: Coffee beans Cost Gross Profit Less: Operating costs Rent Salaries Utilities, insurance overhead Owner salary Net Profit

P10,000,000 P5,800,000 420,000.00

625,000 1,520,000 400,000 1,400,000 _________ 3,945,000

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COFFEE SHOP BUSINESS PLAN

P255,000 G. DISTRIBUTION H. PROMOTION

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