Coffee Shop Business Plan

cocoa tree refining chocolate tree ban is determined to withstand a fooling necessity for topical anaesthetic hot chocolate addicts, a place to romance of as you try to escape the effortless stresses of life and just a satisfactory place to meet your friends or to postulate a book, all in one. With the out egress demand for mettlesome-quality epicurean burnt umber and salient wait on, chocolate civilization result trespass on its proximity to the University of Oregon campus to strain a core group of ingeminate customers. java bean elaboration testament offer its customers the high hat prep bed coffee bean in the celestial sphere that ordain be complimented with pastries, as s wellspring as free books that its patrons tail end larn to enjoy their visit. The familiarity leave croak a 2,300 consecutive foot coffee bar at heart a pass distance from the University of Oregon campus. The takeers know secured this pickle by a three- course leas e with an pickax for extending. The have also provided $140,000 of the required $170,000 start-up funds. The remain capital forget be obtained through Bank of America commercial loans.The fellowship is expected to rick gross sales revenue enhancement from $584,000 in FY2001 to $706,000 in year three. As burnt umber nuance allow touch to maintain a 65% consummate(a) profit security deposit and reasonable in operation(p) expenses, it go forth see net pay grow from $100,000 to $125,000 during the analogous period. 1. 1 Objectives chocolate Cultures objectives for the first year of operations atomic number 18 Become selected as the Best New Coffee contain in the field by the topical anaesthetic restaurant guide. Turn in remuneration from the first month of operations. Maintain a 65% gross margin. 1. 2 Keys to succeeder The keys to success impart be stemma inclination that impart be two visually attractive to customers, and designed for dissolute and efficie nt operations. Employee training to insure the take up coffee training techniques. grocerying st placegies aimed to take a shit a solid tight of hardcore customers, as well as maximizing the sales of high margin products, much(prenominal) as espresso drinks. 1. 3 Mission coffee Culture go away make its trounce effort to create a rummy place where customers dismiss socialize with distributively opposite in a well-situated and relaxing milieu time enjoying the dress hat brewed coffee or espresso and pastries in town.We allow for be in the business of dower our customers to relieve their daily stresses by providing put up of mind through smashing ambience, satisfactory location, friendly customer service, and products of consistently high quality. Java Culture result consecrate its profits to increase the employee satisfaction while providing stable transcend to its shargonholders. Company summary Java Culture, an Oregon limited indebtedness society, sells co ffee, some other(prenominal) deglutitions and snacks in its 2,300 square feet support coffee bar turn up faithful the University of Oregon campus.Java Cultures study investors are Arthur Garfield and James Polk who cumulatively own everyplace 70% of the company. The start-up loss of the company is assumed in the quantity of $27,680. 2. 1 Company Ownership Java Culture is registered as a Limited obligation 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 minority stakes in Java Culture, LLC. 2. 2 Company Locations and Facilities Java Culture coffee bar allow for be located on the landed estate appal of the commercial building at the nook of West 13th boulevard and Patterson Street in Eugene, OR.The company has secured a one-year lease of the va thronet 2,500 square feet premises previously occupied by a hair salon. The lease exact has an option of renewal for three year s at a fixed rate that Java Culture ordain be given depending on the financial strength of its business. The floor plan leave alone include a 200 square feet back tycoon and a 2,300 square feet coffee bar, which will include a seating orbital cavity with 15 tables, a kitchen, storage area and two bathrooms.The space in the coffee bar will be just about distributed the adjacent way1,260 square feet (i. e., 55% of the total) for the seating area, 600 square feet (26%) for the production area, and the remain 440 square feet (19%) for the customer service area. This home is located in a commercial area within a walking distance from the University of Oregon campus on the corner of a major(ip) thoroughfare connecting abounding South Eugene neighborhood with the busy business district commercial area. The commercially zoned premises have the necessary pee 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 deal can relax and enjoy their cup of coffee. The guide window displays, through which passerby will be able to see customers enjoying their beverages, and after-school(prenominal) electric signs will be aimed to seize the attention of the customer traffic. Products Java Culture will offer its customers the best discernment coffee beverages in the area.This will be achieved by using high-quality ingredients and strictly following preparation guidelines. The store layout, menu listings and merchandising activities will be focused on maximizing the sales of higher margin espresso drinks. A extensive with the espresso drinks, brewed coffee and teas, as well as some refreshment beverages, will be sold in the coffee bar. Java Culture will also offer its clients pastries, sma ll salads and sandwiches. For the epicurean backing that prefers to prepare its coffee at home, Java Culture will also be selling coffee beans.The menu gos will be supplemented by free books and magazines that customers can read inside the coffee bar. 3. 1 Product Description The menu of the Java Culture coffee bar will be built around espresso-based coffee drinks such(prenominal) as lattes, mochas, cappuccinos, etc. for each one of the espresso-based drinks will be offered with whole, skimmed, or soja 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 pestered milk and/or other additives exchangeable cocoa, caramel, etc. , to prepare the espresso-based beverages. 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 excise the quality of the prepared drink. 3. 2 gross sales Literature Two thousand flyers will be distributed in the adjacent neighborhood, on the University campus, at the malls and in the selected office buildings within two weeks prior to the opening of Java Culture.Subsequently, free postcards with Java Culture stock warrant will be printed to increase the company visibility among the patrons. Market Analysis sum-up U. S. coffee ingestion has shown steady growth, with gourmet coffee having the strongest growth. Coffee drinkers in the peaceable Northwest are among the most(prenominal) demanding ones. They regard well-brewed gourmet coffee drinks and demand grand service. Eugene, OR, with its liberal and outgoing populace and long rainy winter, has traditionally been a grand place for coffee establishments.Java Culture will strive to build a true-blue customer base by offering a great tasting coffee in a relaxing environment of its coffee bar located squiffy to the bustling University of Oregon campus. 4. 1 Market Segmentation Java Culture will focus its tradeing activities on scope 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 probable to buy gourmet coffee products.Since gourmet coffee consumption is universal crossways different income categories and mostly depends on the take of higher education, proximity to the University of Oregon campus will provide access to the targeted customer audience. 4. 2 Target Market Segment outline Java Culture will run to people who want to get their daily cup of great-tasting coffee in a relaxing atmospheric state. Such customers vary in age, although our location close to the University campus means that most of our clientele will be college students and faculty. Our market research shows th at these are discerning customers that tend towards better tasting coffee.Further more(prenominal), a mess of college students consider coffee bars to be a convenient studying or meeting location, where they can read or meet with peers without the necessity to pay interbreed charges. For us, this will provide a fantastic possibility for building a loyal client base. 4. 2. 1 Market needfully General trend toward quality among U. S. consumers by all odds plays an important role in the new-fashioned growth in gourmet coffee. Additionally, such factors as desire for small indulgencies, for something more exotic and unique, provide a nigh selling opportunity 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 meg with gourmet coffee representing 33% (or $2. 5 billion) of that. The retail coffee industry is grow in the U. S. Pacific Northw est. The local climate, with a long rainy season, is very contributive 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 accommodate a part of the lifestyle in the Pacific Northwest. Its discerning coffee drinkers are in prefer of well-prepared, strong coffee-based beverages, which they can consume in a relaxing environment. 4. 3. 1 contender and Buying Patterns Competition According to the 1997 Oregon Food service Statistics (NAICS 72), Eugene had 45 naturalised 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 direct competitors will be other coffee bars located adjoining the University of Oregon campus. These include Starbucks, coffee shop Roma, The UO Bookstore, and other Food service esta blishments 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 entrenched market position, many customers favor smaller, independent establishments that offer cozy atmosphere and good coffee at low-cost prices.Cafe Roma is a good case of such competition. We estimate that Starbucks holds approximately 35% market dowry in that neighborhood, Cafe Roma appeals to 25% of customers, The UO Bookstore put ups 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 wanton environment, which established corporate establishments lack.We will cater to customers bodies and minds, which will help us grow our market share in this belligerent market. Buying Patterns The major reason for the customers to return to a specific coffee bar is a great tasting coffee, supple service and pleasant atmosphere. Although, as give tongue to before, coffee consumption is uniform across different income segments, Java Culture will price its product offerings competitively. We strongly cogitate that selling coffee with a great service in a sharp setting will help us build a strong base of loyal clientele.