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Appendix 4: Sample Business Plan
CYBER CAFÉ BUSINESS PLAN
JEDI CAFÉ
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TABLE OF CONTENT
1. Executive Summary
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2. Company Summary
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3. Services
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4. Market Analysis
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5. Marketing Strategy
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6. Management Summary
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7. Financial Plan
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1. Executive Summary
Jedi Café, a cyber café located in Happy Valley, Hong Kong Island, offers a perfect spot for the public in social gathering and leisure. It provides customers free access to the Internet as well as an area for to meet together in a casual environment under an economical manner.
The business intends to obtain finance from external equity in the amount of USD61,540, for which the application will be for commencing work on shop renovation, equipment purchases,
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3.3 Technology
Jedi Café will invest in high-speed computers to provide its customers with a fast and efficient connection to the Internet. The computers will be reliable and fun to work with. Jedi Café will continue to upgrade and modify the systems to stay with current technologies.
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4. Market Analysis
Jedi Café is facing the opportunity of being the pioneer in the Happy Valley cyber café market. The consistent popularity of coffee, combined with the growing interest in the Internet, has been proven to be a winning concept in other markets and will produce the same results in Happy Valley.
4.1 Market Segmentation
Jedi Café’s customers can be divided into two groups. The first group is familiar with the Internet and desires a progressive and inviting atmosphere where they can get out of their offices or bedrooms and enjoy a great cup of coffee. The second group is not familiar with the Internet, yet, and is just waiting for the right opportunity to enter the online community. Jedi Café’s target market falls anywhere between the ages of 15 and 70. This extremely wide range of ages is due to the fact that both coffee and the Internet appeal to a variety of people. In addition to these two broad categories, Jedi Café’s target market can be divided into more specific market segments. The majority of these individuals are students and business people. See the Market Analysis table below for more specifics.
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.
The reason the investigation was conducted was to gauge what was both good and bad about the new café opening, what needs to be changed in order to increase efficiency at work and any legislative laws involved.
Puffers will be a coffee house/restaurant located in the Bundoora Square Plaza. The coffee house will offer a variety of choices to the customers. Coffee and tea of all sorts will be offered. The choices of coffee will range from espresso to latte, from regular flavor to raspberry-mocha. The teas will range from English to flavored varieties. Juice, soda, and non-alcoholic beverages also will be available. The breakfast menu will feature croissants, muffins, bagels, donuts, French pastries, fruit filled crepes, etc. Except for the crepes, the baked goods will be purchased from The Works. Lunch and dinner will feature sandwiches, salads and seven different soups. In hot weather, a variety of cold soups will be offered. In addition, Coffee Circus will feature a vast array of appetizers. These will include artichokes (Both stuffed and served with butter); stuffed mushrooms; mini loaves of bread served with your choice of a bowl of pesto, or green chile, etc. Desserts will consist of cheesecakes (some fat-free), pastries, pies, fresh fruit and cheese. The interior design of the building will focus on projecting a relaxed
Tupinamba Café, in Dallas, specializes in authentic, mouth-watering Tex-Mex cuisine with dishes named as creatively as they are crafted, in its welcoming restaurant. The alas calientes spicy chicken wings with ranch dipping sauce and the crispy mini beef flautas make excellent starters for sharing. Some of Tupinamba Café’s specialty entrée dishes include the chicken or beef puff tacos, the 12th man strip steak served with nachos, an enchilada, guacamole and beans and the West Texas pancake-style enchiladas stuffed with meat, cheese and fried egg, covered with chile sauce. Tupinamba Café also has vegetarian options, such as fajitas, as well as the vegetarian café burrito bowl.
JavaNet Internet Café is the first of its kind located in Eugene, Oregon. The goal of the company is to broaden the community’s accessibility to affordable Internet through social interaction and entertainment. JavaNet is the creation of University of Oregon graduate Cale Bruckner. Cale has business degrees in both Marketing and Management. His level of expertise also includes product development, product marketing, team management, resource allocation, human resources management, and business content development. Cale wrote the business plan for JavaNet Internet Café in 1995 and is currently the vice president of Product Development for Palo Alto Software Incorporated.
To expand the CupCake Café brand the franchise owners will establish a café in his or her city. Our goal is to compete in our industry by providing a quality product with a limited number of stores. To ensure franchise owners will succeed we will offer support from the beginning to the grand opening and beyond. We will assist the new owners with location selection, negotiating a lease agreement, design, layout, construction, purchasing equipment, training, marketing, support during the grand opening, and ongoing marketing and day-to-day operation support (Gigi’s Cupcakes, 2010).
Service Business Analysis:The retail coffee industry in the U.S. has recently experienced rapid growth. The cool marine climate in southwest Washington stimulates consumption of hot beverages throughout the year. Coffee drinkers in the Pacific Northwest are finicky about the quality of beverages offered at the numerous coffee bars across the region. Despite low competition in the immediate area, JJB will position itself as a place where customers can enjoy a cup of delicious coffee with a fresh pastry in a relaxing environment.
The company location is based at Penang, Butterworth Sunway Carnival Mall. The facilities such as free Wi-Fi, comfortable sofas and chairs, dimmed light and quiet relaxing music will help the customers to relax from the daily stresses and will differentiate Starbucks Coffee shop from incumbent competitors. To speed up the customer service, at least two employees will be servicing clients. Meanwhile one employee will be preparing the customer’s order, the other one will be taking care of the sales transaction.
A vital aspect involved in any business, especially a new business venture, inclusive of the hospitality industry, is the determination of the market via a thorough Market Analysis. Thus, before A Little Taste of Texas Café formulates the sales, as well as, the marketing strategies, they must establish the market the café serves, as well as, the need they fulfill in the market. According to Brault (2014), a business such as A Little Taste of Texas Café dictates the acquisition of the knowledge experienced through a market analysis by establishing what the customer seeks, in addition to the most beneficial mode to utilize in the product offering in a profitable manner. This in turn provides a manner to evaluate the business, in addition to projecting
Starbucks positions itself as a place college students can hang out, study, write term papers and meet people. A Starbucks appeal to this consumer directly through introducing technology as soon as it comes available, focusing on social networking and actively cultivating a “cool” image. The young adult audience grows 4.6 percent each year (O’ Farrell).” However, the majority of the advertising is catered to Adults around the ages of 25 to 40. Adults seem to prefer a pick me up first thing in the morning on their way to work. Most Starbucks today have a drive thru to make it faster to grab and go.
Collect customer e-mail addresses, to inform them of the dates of new releases pertaining to their music of interest and of up-coming events and promotions
As a well-established coffee retailer and over 35 years of success, Starbucks is at the maturity stage in the product life cycle. It is in this stage that Starbucks needs to shift gears and focus on marketing program modifications by increasing the number of customers and customer visits (Kotler, 2009, pg. 185). While improving service will attract first-time customers and retain current ones, further marketing modifications will need to be made if it wants to continue to grow. More advertising, distribution, sales promotions, and personal selling are a few of the ways to modify the marketing program.
Starbucks provide a large in store seating with free wi fi and a take-out service which only a few retail shops offer. The main target customers for Starbucks are office workers, with enough income, whom are able to afford the high prices of their products (Gaudio, 2003). The company has worked hard to establish itself as the brand leader with its branding as the most frequently drank coffee and noticeable brand logo. Introduction of promotions like the Starbucks Card, allows a more convenient way for a person to pay for your drinks and earn rewards for your purchase (Starbucks Coffee Company, 2011). Furthermore, in‐store promotions accompanied by new products and amenities like free internet use are all strategies that Starbucks use to maintain their position in the market (Vasudha, 2011).
In the premium foods and coffees industry, there are substitute products. According to Mary Coulter, the best way to evaluate this threat is to ask whether other industries can satisfy the customer need that this industry is satisfying (Coulter). Other beverage industries can satisfy the customer's need for a drink, and other food industries can satisfy the customer's need to eat. There are obviously good substitutes to Broadway products and the threat is high. This is why it is very important for Broadway Cafe, to innovate and differentiate. By providing free Wi-Fi in the Cafe and marketing signature food products from the famous old recipes of Grandfather, Broadway Cafe can create different image than its competitors.
Executive Summary..................................................................................................................................3 Market Segmentation ...............................................................................................................................4 Methods of Segmentation................................................................................................................4 Lifestyle Segmentation in the Specialty Coffee Market ..............................................................5 Segments