Business Report
INDEPENDENT COFFEE SHOP START UP
Executive Summary
This report is to demonstrate a new concept for an independent coffee shop and to explain the research approach that has been taken in order to achieve this.
A detailed requirement for this report will be as followed:
• Planning – a detailed step by step plan will be demonstrated in order to complete the actions required for this report.
• Development – Researching the aims and objectives as well as all the ethical and legal requirements.
• Findings – to carry out and analyse the market trends within the industry.
• Analysis – analyzing the findings in order to carry out recommendations for the development of the coffee shop.
This report will be the
…show more content…
Café culture is on the rice, showing £740 million was spent on just coffee alone in 2015 in the United Kingdom. (BCA) found that 80% of coffee consumers tend to visit a coffee shop weekly in comparison to 16% visiting on a daily basis. Coffee is growing in over 50 countries and (British Coffee Association) is now considered to be the second biggest export across the world.
This trend of consumers visiting independent coffee shops is evident in every city’s high street. Birmingham high street has many different types of coffee shops, however in recent years, independent coffee shops has been on the rice. This is due to consumer’s perception changing over time, with many consumers preferring the ‘quirky image’ and ‘comfortable atmosphere’ in comparison to the ‘old mainstream’ coffee shops.
A coffee shop is no longer a shop that sells only refreshments such as coffee and tea with cakes on the side. Though the (Definition) of a coffee shop is a ‘café serving coffee and light refreshments’, it is now seen as almost a small restaurant with a “Kitchen” to serve hot food and this can range from an all-day breakfast to sandwiches and or a desert parlour that can serve all types of deserts. More independent coffee shops have taken up the approach of appealing to their consumers in a more personal aesthetic than those of the mainstream coffee shops. It offers consumers a more personalised unique experience and with consumers more aware of new and improved
In our society, we can see many different kinds of social setting and one of the most common settings is coffee shop. Indeed, there is at least one coffee shop on each block. According to Coffee Association of Canada, the market size of coffee industry in Canada is more than 6.2 billion dollars. It shows that how big and important this social setting is. Among a lot of coffee shops, Starbucks, Tim Horton, and Second Cup are the biggest and the most popular franchisers in Canada. If the purpose of visiting coffee shop is only for coffee itself, they might have not been grown like these days.
Starbucks is looking at new overseas market and coffee shops around the world. However, many people find this expansion affecting their private life or interrupting them in an unwanted and annoying way and are scared of the Americanization of their culture. To prove these negative feelings towards their brand and in order for foreign customers to find more appealing, Starbucks needs to tell a story. The most attractive one being the story of the coffee bean, grown on an exotic island. Starbucks is taking on local aspects, like specific flavours and cultural habits, for example green tea Frappuccino in Asia, in order to distance themselves more from their American roots. In order to get rid of the negative image that American chains put local stores out of business, Starbucks is recruiting locals (Eline Van Lombeek, 2010,
The concept of the café was discovered in 1995 when the owner, Siddhartha, encountered a pub that also provided Internet access. Its customers were able to enjoy a drink and the accessibility of the Internet. He desired to take that business concept and apply it to Café Coffee Day. Siddhartha, the owner, wanted to be hands on with his company from growing the coffee beans to the hands on access of the business such as interviews, Siddhartha wanted to have full control and was able to cut costs in doing so. His cafés were able to purchase modern furniture and current machinery for a fair price. Additionally, he invested money in educating his employees to offer his customers top quality service. This business model was successful but when the access of the Internet became available in the household consequently they needed to find another technique to draw in the customer. Although the concept of the café was booming they wanted to design new ideas to draw in a new field of clientele.
For this project, I have decided to open a coffee shop that serves regular and specialty coffee, and small pastry items that is located in a prominent neighborhood near a train station or a high foot traffic area. Coffee has become a popular beverage where it is not just needed in the mornings but throughout the day, whether they are on their way to work or just to sit and relax. I am a coffee drinker myself and it is uncommon to find a coffee place that has a warm, home feeling atmosphere. It is important to have one of these types of coffee shop in any neighborhood. My goal is to provide every customer coffee and pastry whether
It is evident that there are many things being fetishized in present day. Specialty coffee has been become increasingly popular since the 1980’s. As of 2001 27 million Americans consumed specialty coffee daily (Ponte 2002:1111). It can be said that Starbucks helped create the explosion and set the environment that it drew with
By 2003, the number of retail specialty coffee shops, cafes, kiosks, coffee carts, and roasters in the United States reached over 17,000, equating to nearly $9 billion in sales. According to the Specialty Coffee Association of America, 16 percent of adults in the United States drink coffee from one of these specialty outlets daily. (“Organo Gold”, 2008).
Costa coffee founded in 1971 in London, UK. Now, it has become the biggest top coffee shop chain in UK. However, Costa should be prepared for danger in times of peace. In this report, some suggestions will be proposed to improve Costa coffee’s marketing mix over the next three years. We begin with a brief description of the data we collected, then go on to analyses coffee shop market environment in UK; the next section looks at Costa coffee’s current statement of marketing mix, and finally we give recommendation of the marketing mix in the next year for Costa Coffee. Section 1 Primary research method Primary data was collected in the form of questionnaire with 15 questions, which was posted on the Internet. Also,
The main topic of this article is coffee shops in this day of technology. Faris gives an example of when a man approached him to tell him that the point of coffee shops was to have face to face conversations with others. Faris argues that coffee shops are places where people go to do what they like, if they enjoy
Now Imagine this a Cafe' where you go somewhere in your town or it could be far, depending on where its built. You walk into a Cafe'. You start to smell fresh sweet or regular pastries and coffee brews that are being made.
Upon opening a new coffee venture in Boston, it is first essential to assess the market and the industry in the city. Boston is one of the most popular, dense and busy cities in the United States. Its concentration of workers is increased, creating as such notable opportunities for companies, including coffee companies.
This coffeehouse would function like any other coffee shop; serving hot and cold beverages like a variety of teas and coffees, baked goods like cakes, muffins and cookies, sandwiches and wraps, all of which would be prepared fresh daily. The only twist would be a book lounge within the shop, where customers can enjoy a wide range of books for reading while savoring comfort food.
In conclusion, the Broadway Café faces a strong buying power and rivalry among competitors due to the large volume of shops offering the same products and services. The threat of new substitute products and alternatives is also high for the same reasons for buyer power. The Café also faces the threat of new entrants due to the lack of insignificant entry barriers. One upside is the relatively weak supplier power. The coffee industry is huge as stated above and vendors are more than ample. With this information we can conceive our business focus. The Broadway Café is best suit for a focused differentiation strategy. We plan to achieve
In general the coffeehouse industry in the United States was experiencing an increase in coffee consumption per capita due to the “Starbucks effect”. At this time Starbucks was operating approximately 20,000 stores in the United States and was living a fast expansion strategy worldwide.
The demand for coffee shops is born from the increased number of individuals seeking coffee brewed outside of the home. This creates a larger market for coffee shops. An increased amount of people are starting their mornings off by purchasing breakfast and a cup of coffee away from home (Tuttle 2014), more people are enjoying gourmet coffee (NCA National Coffee Drinking Trends 2015 Infographic), and younger generations are demanding more coffee and coffee drinks from coffee shops (Tuttle 2014, S&D Coffee and Tea inc. 2014, Statista 2015). Coffee shops must compete with at home coffee, work place coffee, and teas for the caffeinated beverage markets (LN 2015). Demand for coffee within different markets varies, and provides competition for coffee shops. Single cup coffee makers, increasingly qualitative instant coffees, and gourmet beans are all sources of competition that could satisfy the demand for coffee. However, coffee shops are becoming more ingrained in social
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.