Coffee Shop Business Plan

cocoa goal java break off is resolute to become a daily necessity for topical anaesthetic hot chocolate addicts, a out to dream of as you try to escape the daily stresses of feeling and just a comfortable place to meet your friends or to call for a book, all in one. With the ageing demand for game-quality gourmet drinking chocolate berry and great service, burnt umber floriculture go out capitalize on its law of proximity to the University of operating theater campus to build a core group of repeat customers. chocolate coating depart cater its customers the top hat prep ared burnt umber berry in the state that go out be complimented with pastries, as well as free books that its patrons layabout read to enjoy their visit. The company get out operate a 2,300 true foot coffee bar within a walking outer space from the University of Oregon campus. The owners have secured this location finished a three-year lease with an excerption for extending. The have in any case provided $140,000 of the required $170,000 start-up funds. The remaining capital leave behinding be obtained through Bank of America commercial loans.The company is expected to grow sales revenue from $584,000 in FY2001 to $706,000 in year three. As Java socialisation leave behind strive to maintain a 65% down-to-earth profit margin and reasonable operating expenses, it will see bread profits grow from $100,000 to $125,000 during the said(prenominal) period. 1. 1 Objectives Java Cultures objectives for the first year of operations are Become selected as the outdo New Coffee Bar in the discipline by the local restaurant guide. Turn in profits from the first month of operations. take hold a 65% gross margin. 1. 2 Keys to Success The keys to success will beStore figure that will be both visually attractive to customers, and designed for fast and efficient operations. Employee training to insure the best coffee dressing techniques. market placeing strategies ai med to build a solid standpoint of loyal customers, as well as maximizing the sales of high margin products, such as espresso drinks. 1. 3 Mission Java Culture will make its best effort to create a crotchety place where customers can socialize with each other(a) in a comfortable and relaxing environment while enjoying the best brewed coffee or espresso and pastries in town.We will be in the business of helping our customers to rationalize their daily stresses by providing piece of mind through great ambience, at ease location, friendly customer service, and products of consistently high quality. Java Culture will invest its profits to increase the employee satisfaction while providing stable grant to its destinyholders. Company outline Java Culture, an Oregon limited liability company, sells coffee, other beverages and insect bites in its 2,300 firm feet premium coffee bar located move up the University of Oregon campus.Java Cultures major investors are Arthur Garfield an d James Polk who cumulatively own everywhere 70% of the company. The start-up loss of the company is assumed in the amount of $27,680. 2. 1 Company Ownership Java Culture is registered as a Limited Liability Corporation in the state of Oregon. Arthur Garfield owns 51% of the company. His cousin, James Polk, as well as Megan Flanigan and Todd Barkley hold tiddlerity put on the line in Java Culture, LLC. 2. 2 Company Locations and Facilities Java Culture coffee bar will be located on the ground beautify of the commercial twist at the niche of West 13th alley and Patterson Street in Eugene, OR.The company has secured a one-year lease of the lazy 2,500 substantial feet premises previously occupied by a copper salon. The lease contract has an option of renewal for three years at a fixed rate that Java Culture will penalise depending on the fiscal strength of its business. The floor plan will complicate a 200 square feet back office and a 2,300 square feet coffee bar, which wi ll include a seating area with 15 tables, a kitchen, reposition area and two bathrooms.The space in the coffee bar will be approximately distributed the following way1,260 square feet (i. e., 55% of the total) for the seating area, 600 square feet (26%) for the production area, and the remaining 440 square feet (19%) for the customer service area. This property is located in a commercial area within a walking distance from the University of Oregon campus on the corner of a major thoroughfare connecting affluent South Eugene neighborhood with the wide awake downtown commercial area. The commercially zoned premises have the necessary pissing and electricity hookups and will require only minor remodeling to accommodate the espresso bar, kitchen and storage area.The coffee bars open and clean interior design with modern wooden decor will convey the quality of the served beverages and snacks, and will be in-line with the establishments positioning as an eclectic place where slew can relax and enjoy their cup of coffee. The clear windowpane displays, through which passerby will be able to see customers enjoying their beverages, and remote electric signs will be aimed to grab the attention of the customer traffic. Products Java Culture will aim its customers the best tasting coffee beverages in the area.This will be achieved by using high-quality ingredients and strictly following preparation guidelines. The store layout, carte listings and securities industrying activities will be focused on maximizing the sales of higher margin espresso drinks. A languish with the espresso drinks, brewed coffee and teas, as well as some refreshment beverages, will be exchange in the coffee bar. Java Culture will also assign its clients pastries, gnomish salads and sandwiches. For the gourmet clientele that prefers to prepare its coffee at home, Java Culture will also be selling coffee beans.The menu offerings will be supplemented by free books and magazines that customer s can read in spite of appearance the coffee bar. 3. 1 Product Description The menu of the Java Culture coffee bar will be built around espresso-based coffee drinks such as lattes, mochas, cappuccinos, etcetera Each of the espresso-based drinks will be offered with whole, skimmed, or soy milk. Each of these coffee beverages is based on a vista 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 tight milk and/or other additives like cocoa, caramel, etc. , to prepare the espresso-based beverages. priggish 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. 3. 2 sales Literature Two thousand flyers will be distributed in the neighboring(a) neighborhood, on the University campus, at th e malls and in the selected office buildings within two weeks preceding to the opening of Java Culture.Subsequently, free postcards with Java Culture endorsement will be printed to increase the company visibility among the patrons. Market Analysis Summary U. S. coffee consumption has shown steady growth, with gourmet coffee having the strongest growth. Coffee drinkers in the Pacific Northwest are among the most demanding ones. They favor well-brewed gourmet coffee drinks and demand great service. Eugene, OR, with its liberal and outgoing populace and long wet winter, has traditionally been a great place for coffee establishments.Java Culture will strive to build a loyal customer base by offering a great tasting coffee in a relaxing environment of its coffee bar located close to the restless University of Oregon campus. 4. 1 Market Segmentation Java Culture will focus its marketing activities on reaching the University students and faculty, people working in offices located close to the coffee bar and on sophisticated teenagers. Our market research shows that these are the customer groups that are most likely to vitiate gourmet coffee products.Since gourmet coffee consumption is universal across distinct income categories and mostly depends on the level of higher education, proximity to the University of Oregon campus will provide access to the targeted customer audience. 4. 2 Target Market Segment Strategy Java Culture will cater to people who want to get their daily cup of great-tasting coffee in a relaxing aviation. Such customers vary in age, although our location close to the University campus fashion that most of our clientele will be college students and faculty. Our market research shows that these are spot customers that gravitate towards better tasting coffee.Furthermore, a lot of college students bowl over coffee bars to be a convenient studying or meeting location, where they can read or meet with peers without the necessity to compensati on cover charges. For us, this will provide a unique possibility for building a loyal client base. 4. 2. 1 Market Needs command trend toward quality among U. S. deliverrs definitely plays an important role in the new growth in gourmet coffee. Additionally, such factors as desire for small indulgencies, for something more exotic and unique, provide a commodity selling hazard for coffee bars.4. 3 Industry Analysis Coffee consumption has shown a steady 2. 5% growth rate in the United States over the last decade. In 1994, total sales of coffee were approximately $7. 5 billion with gourmet coffee representing 33% (or $2. 5 billion) of that. The retail coffee industry is flourishing in the U. S. Pacific Northwest. The local climate, with a long rainy season, is very conducive for the consumption of hot non-alcoholic beverages. At the same time, hot dry summers drive people into cafes to order iced drinks.Further, coffee has really become a part of the lifestyle in the Pacific Northwe st. Its discerning coffee drinkers are in favor of well-prepared, strong coffee-based beverages, which they can consume in a relaxing environment. 4. 3. 1 contestation and Buying Patterns Competition According to the 1997 Oregon Food service Statistics (NAICS 72), Eugene had 45 established snack & non-alcoholic beverage bars (NAICS 722213) with total sales of $14. 2 million. Among other establishments that offer coffee drinks to their customers are most of Eugenes limited- and full-service restaurants.Java Cultures result competitors will be other coffee bars located abutting the University of Oregon campus. These include Starbucks, Cafe Roma, The UO Bookstore, and other Food service establishments that offer coffee. Starbucks will definitely be one of the major competitors because of its strong financial position and established marketing and operational practices. However, despite of Starbucks fix market position, many customers favor smaller, independent establishments that o ffer cozy atmosphere and good coffee at affordable prices.Cafe Roma is a good example of such competition. We estimate that Starbucks holds approximately 35% market share in that neighborhood, Cafe Roma appeals to 25% of customers, The UO Bookstore caters to another 10%, with the remaining market share split among other establishments. Java Culture will position itself as a unique coffee bar that not only offers the best tasting coffee and pastries but also provides home-like, cozy and comfortable environment, which established corporate establishments lack.We will cater to customers bodies and minds, which will help us grow our market share in this competitive market. Buying Patterns The major reason for the customers to return to a specific coffee bar is a great tasting coffee, quick service and winsome atmosphere. Although, as stated before, coffee consumption is uniform across different income segments, Java Culture will price its product offerings competitively. We strongly confide that selling coffee with a great service in a nice setting will help us build a strong base of loyal clientele.