Coffee Shop Proposal Essay

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.

Coffee consumption in China is highly concentrated in large cities such as Beijing, Shanghai and Guangzhou. Also other cities like Wuhan coffee culture seems to expand. Recently coffee appeals to adventurous young, rich, and urban consumers. This is just because originally coffee is considered as a Western concept to most Chinese consumers. According to Subhuti (2003), the Chinese do not consume coffee because of its potential health value either in terms of modern medical data or traditional Chinese medical concepts. Rather, it has been consumed until now as part of the fascination with western culture that has grown during the past few decades. However the coffee culture is getting well known in China nowadays. Chinese

The specialty coffee industry had seen steady growth for years and the trend was expected to continue until at least 2015. Of the various segments within the specialty coffee industry, most of the growth was attributable to beverage retailers “Coffee and kiosks”. In 1979 there were approximately 250 specialty coffee retailers. The number quadrupled by 1989 to approx 1000 outlets, and it exploded to roughly 15000 by 2002. Nationally, specialty coffee sales totaled over $ 10 billion in 2005.

With 11,000 plus coffeehouses worldwide, it is evident that their strategy of being passionate about their customer relation and their devotion to delivering a quality product goes beyond culture and language.

Because of their substantial growth over two decades, they have spent a considerable amount of time defending their image. Their “clustering” strategy put many small coffee shops out of business and many consumers began to wonder if there really was a need

This paper focuses on presenting the steps for starting a coffee shop and ensuring its successful functioning. The paper presents an analysis of the target segment of customers and the coffee shop's specific features, continuing with the project's objectives. The paper sets few recommendations aiming at presenting ideas that will ensure the coffee shop's success in the medium term and long term. The results were positive, which means that opening a coffee shop with library will probably be a good idea and will be a good business investment.

The industry’s saturation is moderately high with a monopolistic competition structure. For new entrants, the initial investment is not significant as they can lease stores, equipment etc. at a moderate level of investment. At a localized level, small coffee shops can compete with the likes of Starbucks and Dunkin Brands because there are no switching costs for the consumers. Even though it’s a competitive industry, the possibility of new entrants to be successful in the industry is moderate. But this relatively easy entry into the market is usually countered by large incumbent brands identities like Starbucks who have achieved economies of scale by lowering cost, improved efficiency with a huge market share. There is a moderately high barrier for the new entrants as they differentiate themselves from Starbuck’s product quality, its prime real estate locations, and its store ecosystem ‘experience’. The incumbent firms like Starbucks have a larger scale and scope, yielding them a learning curve advantage and favourable access to raw material with the relationship they build with their suppliers. The expected retaliation from well-established companies for brand equity, resources, prime real estate locations and price competition are moderately high, which creates a moderate barrier to

People love to drink coffee. Coffee shops, independently owned or chains are every corner. Statistics show that people are taking more coffee every day. It is a very profitable business.

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

The success of Friend-Z 's, a regional based coffee house in the United States, is in its tenth year of business. The small business venture, which began as a cooperative college project, has grown into one of the best coffee houses on the college scene. Friend-Z 's success has sparked the interest of its partners to take their small business to the next level by expanding into the global market. Competing globally would allow Friend-Z 's Coffee House to take advantage of a larger customer base, opportunity to be a stronger competitor, and thrive in diverse environments. Friend-Z 's international business will increase their client base with every new opening. They are not restricted by location or tied a region with failing economics. Therefore, opening Friend-Z 's to the option of an online market. Friend-Z 's will be able to rise as a stronger competitor in the coffee market, especially in countries with fewer competitors. The presentation of the coffee house will be crucial for becoming comparable or communicating its uniqueness. Friend-Z 's existence in the global market opens up their business worldwide. This business move releases dependency on the local or regional market in the United States, reduces growth restraints, and allows movement from potential economic unrest. The advantages of Friend-Z 's beginning a global business are promising, but it would be wise to consider the possible negative factors before going global.

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.

Following is a sample business plan of a coffee retail chain. Although Mekong Capital is not demanding a similar standard, qualified business plans are expected to cover most aspects of the sample. More samples and information are available on Bplans website (www.bplans.com).

I would like to propose a marketing plan for opening a coffee shop in the city of Moscow. Over the past two or three years, a coffee shop in Russia managed to grow in a socio-cultural phenomenon: at once there was like a house of cards, the Soviet culture of consumption of coffee.

People want to get their daily cup of great-tasting coffee in a relaxing atmosphere. Such customers vary in age, although most of clientele are college students and faculty. My market research shows that these are discerning customers that gravitate towards better tasting coffee. Furthermore, many college students consider coffee bars to be a convenient studying or meeting location, where they can read or meet with friends without the necessity to pay cover charges. For Café , this will provide a unique possibility for building a loyal client base. In addition, location of all three Bon! Café in city located to most visited places by young

Coffee shop is the famous business in Cochin. Coffee or Tea bar is a daily requirement for the local coffee lovers, and it is a place to dream big things in life and to discuss among friends and relatives and just a comfortable place to meet your loved ones or to read a book, all alone. With the growing demand for high-quality tea or coffee and great service, The Melody Coffee shop will mainly focus on the institute of management studies in Cochin and other private institutes also. The kind of culture will offer its customers the best prepared coffee/tea in the area that will be served with a muffin and a sweet, moreover we will provide some free books that many more old customers can read and enjoy their visit. The shop will operate a 70 square foot coffee bar near to the entrance of the institute of management studies in the building. The identified place can be obtained for lease for 8 months and it is possible to get a nearly extension in the upcoming months and years. The start-up funding which is available with Mr. Hemant is INR 80,000/- and it is surely that the remaining amount of Rs 50000 will be incurred through some commercial loans from the Bank of Baroda. The business is expected to gain more and more profit that will be more than 150000 per year. Melody Coffee shop will try to maintain a high gross profit margin and reasonable operating expenses throughout the year.