Business Plan coffee Business plan the S PDF

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Business Plan for a Coffee shop...

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BUSINESS PLAN (COFFEE BUSINESS PLAN) THE

SKS COFFEES

(TAKBEER ASCADE PLAZA JORRAYPULL LAHORE)

(DATE)

Use and Reprint Rights for Your FAST Business Plan Template This template has been written to include instructions for creating your final business plan. You are free to edit and use the material within your organization. However, please do not distribute this template online or elsewhere publically without explicit permission from us.

TABLE OF CONTENTS 1.0 Executive Summary...................................................................................................................4 1.1 1.2 1.3 1.4

2.0

Business Objectives.......................................................................................................................................4 Mission Statement.........................................................................................................................................4 Guiding Principles.........................................................................................................................................4 Keys to Success.............................................................................................................................................5

Company Description.........................................................................................................5

2.1 2.2 2.3 2.4

3.0

Ownership.....................................................................................................................................................5 Legal Form....................................................................................................................................................5 Start-Up Summary.........................................................................................................................................5 Location and Facilities..................................................................................................................................6

Products/Services................................................................................................................7

3.1 3.2 3.3 3.4

4.0

Products/Services Descriptions.....................................................................................................................7 Competitive Comparison...............................................................................................................................7 Product/Service Sourcing..............................................................................................................................9 Future Products/Services...............................................................................................................................9

Market Analysis..................................................................................................................9

4.1 4.1.1 4.1.2 4.1.3 4.1.4 4.2 4.3 4.3.1 4.3.2 4.3.3 4.4

5.0

Marketing Strategy and Implementation.......................................................................17

5.1 5.1.1 5.1.2 5.1.3 5.1.4 5.3 5.4 5.5 5.5.1 5.5.2 5.5.3 5.5.4 5.5.5 5.6 5.6.1 5.6.2 5.8 5.9 5.10

6.0

Industry Analysis.........................................................................................................................................10 Market Size.............................................................................................................................................11 Industry Participants...............................................................................................................................11 Main Competitors...................................................................................................................................12 Market Segments....................................................................................................................................14 Market Tests................................................................................................................................................15 Target Market Segment Strategy.................................................................................................................16 Market Needs..........................................................................................................................................16 Market Trends.........................................................................................................................................16 Market Growth........................................................................................................................................17 Positioning...................................................................................................................................................17 SWOT Analysis...........................................................................................................................................18 Strengths.................................................................................................................................................18 Weaknesses.............................................................................................................................................18 Opportunities...........................................................................................................................................18 Threats.....................................................................................................................................................18 Unique Selling Proposition (USP)..............................................................................................................19 Competitive Edge........................................................................................................................................19 Marketing Strategy and Positioning............................................................................................................19 Positioning Statement.............................................................................................................................19 Pricing Strategy.......................................................................................................................................20 Promotion and Advertising Strategy.......................................................................................................20 Website....................................................................................................................................................20 Marketing Programs................................................................................................................................20 Sales Strategy..............................................................................................................................................20 Sales Forecast..........................................................................................................................................21 Sales Programs........................................................................................................................................21 Milestones...................................................................................................................................................21 Table 5.8 Milestones....................................................................................................................................22 Exit Strategy................................................................................................................................................22

Organization and Management.......................................................................................22 2

6.1 6.2 6.3 6.4 6.5

7.0

Organizational Structure..............................................................................................................................22 Management Team......................................................................................................................................22 Management Team Gaps.............................................................................................................................22 Personnel Plan.............................................................................................................................................22 Board of Directors.......................................................................................................................................23

Financial Plan....................................................................................................................23

7.1 7.2 7.3 7.4 7.5 7.5.1 7.5.2 7.5.3 7.6

Important Assumptions...............................................................................................................................23 Start-Up Costs.............................................................................................................................................24 Source and Use of Funds.............................................................................................................................25 Break-Even Analysis...................................................................................................................................26 Projections...................................................................................................................................................26 Projected Profit and Loss........................................................................................................................26 Projected Cash Flow...............................................................................................................................28 Projected Balance Sheet..........................................................................................................................29 Business Ratios...........................................................................................................................................29

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1.0 Executive Summary The SKS coffee will be a one of a kind coffee house located in takbeer arcade plaza at jorray pull near askari 10. The 500 square foot coffee shop will be located in the newly constructed Market takbeer arcade plaza at joraypull near askari 10. The anchor tenant, the Price Chopper grocery store, has already taken occupancy and the excellent location brings more than 1000 shoppers weekly. The sks coffee aptly named for the aromatic brown liquid that will fill the cup, fills the void of original cafes in the market area, stands out from its corporate peers with their fast food concepts and fast services. The sks coffee is the alternative to fast food/commercial/coffee shops and offers a much calmer, civilized coffee experience. There are no televisions in the café, the background music is subtle and work from local artists will hang on the walls. The café is well appointed with overstuffed leather chairs and sofas in a library like setting. The café is reminiscent of times gone by – yet is cutting edge technologically with WIFI and state of the art machines. The sks coffee measures its financial success in terms of increased market share and in earnings. This is a tremendous opportunity! The keys to success will be the ability to offer quality coffees, take advantage of its small size, and reliance on an outstanding staff. In order to achieve these goals, the café will offer some the area’s finest beans from local distributors. Because of its small size, the café can enjoy larger margins in the form of lower overhead. The cafe will hand select baristas and offer salaries comparable to the chains. In turn the employes will be trained to cross-sell, and sell the higher margin products. 1.1

Business Objectives The primary objectives of the business plan for SKS coffee are below:  To increase revenues 5% in Year 2 and 10% by Year 3  Achieve a profit margin of 5.2% Year 2 and 6.90% by Year 3  Be the Café of Choice in the Overland Park area and recipient of the Best Coffee house Award

1.2

Mission Statement The SKS COFFEE is committed to its products and employees which they believe is the recipe for market success.

1.3

Guiding Principles The sks coffee is committed to values such as excellence, passion, quality, integrity and leadership which allow them to navigate challenges and provide for future opportunities. These core beliefs start with their commitment to their products and their employees. The sks coffee rewards excellence and loyalty. The café will work with its employees to build strong businesses and a secure future.

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1.4

Keys to Success The sks coffee stands out from the competition. Below are their Keys to Success:   

Great Products – providing exemplary products at market prices – will make customers want to return again and again Hire Quality Baristas – Pay employees rates similar to the larger chains with opportunities for long term careers and opportunities for advancement with long term plans to open a second facility Convert Customers to Connoisseurs - Only 40% of the nations coffee drinkers consume premium ground and whole bean coffee – this will aid in continued growth

2.0 Company Description The sks coffee will be a coffee house / café located in the takbeer arcade plaza at jorraypull near askari 10 located in the Lahore city, the cozy café will be located in the newly completed Takbeer arcade plaza . The café will serve coffees, espresso and drip coffee, lattes, and smoothies. The simple pastry offerings may vary with seasonality but the primary line will be muffins, breads, cookies, scones, and rolls. All pastries will be supplied daily by a local bakery. The café will be operated by our own. The café will be open for business Monday – Thursday 710, Fridays and Saturdays 7-11 and closed Sundays. 2.1

Ownership

2.2

Legal Form The sks coffees will be formed as an S-Corporation wholly owned by

2.3

Start-Up Summary The sks coffees will have seating for 40 patrons.. The site consists of 500 square feet of leased space, a coffee bar, and a storage room in back. To be used as a restaurant, this storefront needs to be plumbed and wired appropriately. Painting, new floors, and countertops are also needed. A custom coffee bar needs to be built. With materials bought on sale and volunteer labor the coffeehouse equipment will consist of two commercial espresso machines, air pots and urns, a commercial blender, commercial brewer, top loading coffee bins, barista syrups, cold drink dispenser, frothing equipment, a commercial refrigerator, microwave and stainless steel prep bar. The cost for the equipment is. The furniture will consist of leather couches, and chairs (purchased at auction), coffee tables, bookcases, and window treatment. The artwork will come from local artists and will be sold on a consignment basis. The books were secured via donations. Total cost to furnish is . Other startup expenses will be dishes, furniture, rent deposit, and marketing.

2.4

Location and Facilities The new coffeehouse is located in the highly desirable new Takbeer arcade plaza, area at jorraypull near askari 10 lahore. The property is located in an excellent location it is a popular place near golf club .this bazaar is main bazaar where no coffee shop is available now a days .we will provide our customers a relaxing environment..we will also provide

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them a wifi facility .we provide them an airconditioned coffee shop in a very reasonable rate .

3.0

Products/Services

3.1

Products/Services Descriptions The sks coffee primary offering is roasted coffees with such varieties such as mocha, carmelicious, white mocha, candy bar latte, and brewed coffee. Complementing the coffee will be a smoothie line including wild berry, strawberry, peach, mango and lemonade. Rounding out the simple menu line will be pastries obtained with an outside supplier, freshly made and delivered daily. The pastry offerings may vary with seasonality but the primary line will muffins, breads, cookies, scones, and rolls.

3.2

Competitive Comparison The research methodology is based on unique coffee shops/cafes in the greater metro area and omits larger chains or franchises. The findings reveal eight unique competitors. Buttler’s chocolate café Gulberg lll Lahore. Café cosa nostra Gulberg ll Lahore Gloria jean’s coffees 25-A mian mehmood ali kasoori rd Lahore Masooms coffee and bake Mm alam road Walton Lahore

3.3

Product/Service Sourcing The SKS coffee has negotiated supplier agreements with several local food-service wholesalers and coffee wholesalers in karachi that have a reputation for quality and reliability:  

Dua impex international. Awam group of campanies In the event that one of the aforementioned specialty suppliers cannot meet their needs, the following national suppliers can both provide all of the food-service products that they

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require. In addition, the following wholesalers will supply the café with general restaurant supplies:  Ampack ltd Karachi pakistan  Fari traders ltd Karachi pakistan

3.4

Future Products/Services Young families which comprise the third largest market share in takbeer plaza, are often overlooked in the coffee market. Coffee houses traditionally have not been considered ‘kid’ friendly. To overcome this hurdle, the SKS coffee has long term plans (5 years) to open a 2nd coffee shop: A combination indoor play area / coffee bar. This concept allows parents and caregivers an opportunity to meet and relax with other adults while the children can enjoy the indoor playground amenities. Additional future services will include in-store sales for home purchase as well as an online store. The website will have an option to purchase prepaid gift card program – Prepaid gift cards not only provide immediate cash, but also reduce credit card transaction charges and draw new customers to the business.

4.0 National publications and organizations recognize jorraypull for its business environment and livability. Drive

4.1

Industry Analysis The coffee shop industry includes about 20,000 stores with combined annual revenue of about $10 billion. Major cafes include Gloria jeans coffee, buttler’s coffee shop ,masooms coffee and bake, café cosa nostra. The industry is concentrated: the top 50 companies generate more than 70 percent of sales. Coffee shops are part of the specialty eatery industry, which also includes retail outlets specializing in products such as donuts, frozen yogurt, and ice cream. Competitive Landscape Consumer taste and personal income drive demand. The profitability of individual companies depends on the ability to secure prime locations, drive store traffic, and deliver high-quality products. Large companies have advantages in purchasing, finance, and marketing. Small companies can compete effectively by offering specialized products, serving a local market, or providing superior customer service. Specialty eateries, which include coffee shops, are labor-intensive: average annual revenue per worker is about 50000. Coffee shops compete with businesses such as convenience stores, gas stations, quick service and fast food restaurants, gourmet food shops, and donut shops. (First Research) 7

Products, Operations, Technology Major products include beverages and food. Beverages include brewed coffee and tea; espresso drinks (cappuccinos, café lattes); cold blen...