Abstract
Singapore's rapid economic development and the improvement of the quality of urban life and life rhythm speeding up, coffee leisure this elegant, fashionable and romantic recreational way of life more and more get the favour of people, coffee, became one of the world's three largest drinks, many investors see the great business opportunity, we according to the market analysis SWEET Coffee Shop is going to emerge.
Table of Contents
1.0 Executive Summary............................................................................................3
1.1 Mission.......................................................................................................3
1.2 Keys to Success..........................................................................................3
1.3 Objectives...................................................................................................3
Chart: Highlights......................................................................................4
2.0 Company Summary............................................................................................4
2.1 Start-up Summary.......................................................................................5
Chart: Start-up..........................................................................................5
Table: Start-up...........................................................................................7
3.0 Services...............................................................................................................8
4.0 Market Analysis Summary................................................................................. 8
4.1 Market Segmentation..................................................................................8
Table: Market Analysis.............................................................................9
Chart: Market Analysis(Pie).....................................................................9
4.2 Target Market Segment Strategy.................................................................9
4.3 Service Business Analysis.........................................................................10
4.3.1 Competition and Buying Patterns.....................................................11
5.0 Strategy and Implementation Summary.............................................................12
5.1 Competitive Edge.................................................................................... ..12
5.2 Marketing Strategy.................................................................................... 12
5.3 Sales Strategy..............................................................................................13
5.3.1 Sales Forecast.....................................................................................13
Chart: Sales Monthly...........................................................................14
Chart: Sales by Year............................................................................14
Table: Sales Forecast...........................................................................14
6.0 Web Plan Summary ............................................................................................15
6.1 Website Marketing Strategy........................................................................15
6.2 Development Requirements........................................................................15
7.0 Management Summary.......................................................................................15
7.1 Personnel Plan.............................................................................................16
Table: Personnel........................................................................................16
8.0 Financial Plan......................................................................................................16
8.1 Important Assumptions................................................................................16
Table: General Assumptions......................................................................17
8.2 Break-even Analysis....................................................................................17
Table: Break-even Analysis.............................................................................17
Chart: Break-even Analysis.............................................................................17
8.3 Projected Profit and Loss.............................................................................18
Chart: Profit Monthly.......................................................................................18
Chart: Profit Yearly...........................................................................................18
Chart: Gross Margin Monthly...........................................................................19
8.4 Projected Balance sheet ...............................................................................19
1.0 Executive Summary
SWEET Coffee Shop with elegance style is given priority to open the new
leisure cafe. in line with "high quality coffee, good service" the idea to promote
coffee spirit and culture. Cafes provide first-class coffee and almost fir satisfy all the need of the customer. SWEET Coffee Shop in line with develop the
responsibility of coffee culture features a selection of coffee house coffee culture.
1.1 Mission
Our Coffee shop not only provide classic coffee, such as Mocha, Blue Mountains, Jamaica gourmet coffee, fancy coffee, but also refreshments, such as all kinds of Chinese tea, a variety of milk tea, health tea, juice, snacks, etc. We can also provide coffee without caffeine if the customer need to. Our coffee is not instant, but hand-mill immediately, taste good. Coffee shop provide the lowest price and the best service. the four "first class" are our goal ( first class service, first class environment, first class products, first class reputation), and make the shop become a paradise of the residents. We also prepared umbrella near the entrance whether the weather conditions.
1.2 Key to Success
l A superior-tasting product backed by a unique quality store
l A relaxing, upscale interior design
l Prime site selection with an upscale affluent population, year-round tourist activity, heavy pedestrian traffic by the site, a dynamic student population and a concentration of local businesses
l Ongoing, aggressive marketing
l Highly trained and friendly staff
l Multiple revenue streams including gift items, gift baskets and coffee gift/frequency cards in addition to coffee, pastry, chocolates, tea, juice, water and soft drinks
l A dynamic website with online sales capability
1.3 Objectives
l Sales of $600,000+ the first fiscal year, $750,000+ the second fiscal year and $1 million the third fiscal year?
l Achieve a 15% net profit margin within the first year and 30% by FY3
l Achieve a total net profit of $150,000+ in FY1 and $200,000+ by FY3
l Be an active and vocal member of the community, and provide continual re-investment through participation in community activities such as the Chamber of Commerce and financial contributions to local charities and youth organizations
l Create a solid concept in the industry and track performance in order to begin expanding to other markets within six months
Highlights
2.0 Company Summary
(1) Project name: SWEET Coffee Shop
(2) The business scope: The majority of residents
(3) Type of industry: Retail
(4) Project investment: $250,000
(5) Location: Tiong bahru Plaza
(6) Project Overview: To provide customers with convenience ( coffee, tea, various snacks), to provide part-time job for college students, and offering quality service to satisfy people who are pursuit spiritual needs in the city.
(7) Business purpose: Our coffee shop offering cheap and fine, fashion and leisure service to satisfy customer.
2.1 Start-up Summary
Our costs are an estimated $225,000 and $25,000 for opening inventory and operating capital. Future stores should cost no more than $175,000 to build out since many of the costs incurred here will not have to be repeated later.
The Start-up requirements, below, include $77,000 of short and long-term assets.
Long term assets: $62,000
Short-term assets: $15,000
4.2 Target Market Segment Strategy
Our coffee is the development direction of can make most know, know us around the goods, and also come in consumption. For this we will do: high quality coffee, in a cafe, the composition of the coffee must be strong force, no matter what kind of coffee, if in the formulation of higher prices on, or have coffee, poor quality of are not complete enough, or coffee stock levels are not enough wait for a phenomenon, immediately affect sales, natural more not easy to the increase of fixed customers. At the cafe on business, not only should face the competition within the region cafe, more to face various store competition, so "coffee beauty" became the shop the foundation of success. Commodities as a whole strategy, for cafe character, also be need often take seriously. Such as business plan, coffee procurement, coffee development, inventory management, and even the logistics of goods business, and other comprehensive all the goods related activities, all is the strengthening of the goods with cafe force have a close relationship. Excellent service, The most direct, is the service personnel in the cafe and guest when, want to have grace posture, and pay attention to clothes, make-up and instrument; The reception customer, want to have the appropriate expressions, attitude, a few appropriate response. All the waiter should have rich coffee knowledge, timely for customer explained, and also have the ability to discuss. Also, shop decoration of internal facilities, attractive and aesthetic feeling of a bar display, and shop lighting, to effectively use, and further strengthen advertising media publicity effect, and provide all kinds of service facilities. Our goal is to develop our store in this area of the faithful consumer.
4.3 Service Business Analysis
Singapore's rapid economic development and the improvement of the quality of urban life and life rhythm speeding up, coffee leisure this elegant, fashionable and romantic recreational way of life more and more get the favour of people, coffee, became one of the world's three largest drinks, many investors see the great business opportunity, we according to the market analysis SWEET coffee shop is going to emerge.
The company buys the founding of the customer requirements for coffee and accessories, to meet the rapid development of coffee good tea the demand of the market, the use of investment to buy coffee raw material grinding solutions to cook instruments, solve the time-consuming grind coffee and most rely on imports, the price is expensive, influence people generally consumption level.
The company pays attention to the short-term goal and the long term strategic, medium and long-term objectives will be expanded products field, of all kinds of drinks, and a variety of cake and other food, health food, tea and coffee as the core of the diversified management group company.
Beverage industry forecast coffee will continue to explosive growth, annual growth rate over the next 10 years will be as high as 35% above. Thus we can imagine, coffee market development space is enormous
In 2010, the food & beverage (F&B) services industry comprised about 6,200 establishments,
an increase of 3.8 per cent compared with 2009. The industry employed some 91,300
workers, or an average of about 15 workers per establishment.
4.3.1 Competition and Buying Patterns
l Starbucks Coffee
l O' Coffee Club
l Coffee Bean & Tea Leaf
Competition is dominated by the presence of Starbucks, fast becoming the "McDonalds" of the specialty coffee industry. Other major chains are Caribou Coffee, Peet's Coffee & Tea, Coffee Bean & Tea Leaf, Seattle's Best, Gloria Jeans and Diedrich Coffee. All of these chains are considered "clones" of Starbucks. Few vary much from what is perceived as a proven formula for success.
FACT: The coffeehouse business has grown every year since 1982.
FACT: Not a single coffeehouse chain has failed during the past 20 years.
Despite major economic recessions, terrorist attacks and two wars over the past two decades, the specialty coffee industry has grown every year. One industry observer said, "When times are good the coffeehouse industry is great. And when times are bad the coffeehouse industry is great."
Young people under the legal drinking age are one of the fastest-growing segments of the coffee drinking market. Coffeehouses provide them with a much-needed place to meet with their friends.
Entertainment on weekend nights draws a young group of enthusiastic customers. The surge in interest in coffee drinking among young people assures a diverse, receptive, sophisticated customer base now and in the future.
Older adults also enjoy the fact that for the relatively modest price of a cup of coffee and snack, they can meet with their friends, relax or work. Instead of going to a bar and paying for an alcoholic drink or a restaurant where a meal usually comes with a hefty price tag, the coffeehouse is an intimate yet inexpensive venue.
5.0 Strategy and Implementation Summary
Strategic Assumptions:
- People want a better-tasting coffee drink
- Coffee drinkers want a more inviting coffeehouse environment
- Coffee drinks are considered an affordable luxury
- The coffeehouse industry is largely unaffected by the economy and world events
5.1 Competitive Edge
A significantly higher quality, better tasting coffee product.
An ambiance superior to all other coffeehouses in the area with upscale "Cote d'Azur" look. It features stained glass decorations, art glasswork, Mediterranean Riviera style furnishings and outdoor dining.
The only coffeehouse downtown to provide regular weekend evening entertainment.
A wider variety of popular drinks than our competitors, including flavored coffee drinks, tea, chai, cocoa, juice and Italian sodas. We have several drink options for people who don't drink coffee: tea, cocoa, juice and smoothies.
Our Internet website will include sales of whole coffee beans, tea, chocolates, gift items and gift baskets.
5.2 Marketing Strategy
Other coffeehouses rely almost entirely on word-of-mouth marketing to generate business. We will engage in an ongoing aggressive marketing program that will help us establish profitability quickly and set the stage for continual growth.
Our strategy will be to position Sweet Coffee Shop as the "Lexus" of coffeehouses, offering a high quality product and superb service in a superior environment.
5.3 Sales Strategy
Our sales strategy includes:
? Staff salaries that are 10% above the industry average in order to attract the best people
? Hiring for attitude so that we always have a friendly, enthusiastic staff to make customers feel welcome and appreciated; constant staff training to assure the best quality possible
? Sell coffee, gift baskets and glass artwork on our website
? Establish coffee service at local businesses
? Sell gift cards, frequency cards, pre-paid cards, and offer discounts to key groups
? Create an ongoing sampling program
? Conduct a consistent, aggressive marketing program
? Be an active member of the community; be visible at charitable functions
? Solicit customer feedback to constantly improve and streamline our operation
5.3.1 Sales Forecast
Conservatively, we are forecasting an average of 300 customers per day during the first year with an average guest check expenditure for all items of $4.10. This figure was arrived at by surveying the customer traffic at the nearest competing coffeehouses which have a range of 150 - 500 customers per day and an average customer expenditure of $4.10. We have estimated our customer expenditure to be slightly higher (2.5%) due to the premium price we will charge for some of our items. Total cost of sales is approximately 25%.
Sales Monthly
Sales by Year
6.0 Web Plan Summary
We will sell a number of items at our website, including:
- Whole beans
- Tea
- Cocoa mixes
- Chocolates
- Gift baskets
- Gift items
- Art glass
Special downloadable offers good at the retail stores will be posted from time to time on the website.
6.1 Website Marketing Strategy
Special PR will promote our gift basket business and the sale of our upscale design glass artworks.
We will host online "events" for our customers. For example, a visiting author may go online to chat with visitors to our website. Or we may support a charities' fund-raising activities. This will provide us with opportunities for media coverage.
6.2 Development Requirements
The maintenance of the site will be done by contracted outside consultants. As the website is expanded and improved, future development may include items such as tracking, newsletters, down-loadable menus, a coffee "chat" room and user Web pages. A technical resource may need to be contracted to build the trackable download and the newsletter capabilities.
7.0 Management Summary
We need more than 35 years experience in marketing/sales with special expertise in the retail sector, and will be responsible for the site development, construction supervision, marketing.
7.1 Personnel Plan
8.0 Financial Plan
· Sales growth will be a minimum of 15% annually, margins excellent, profits at approximately 20% - 25%, cash flow adequate.
· Marketing will remain below 5% of sales.
· The company will invest residual profits into financial markets or real estate.
· Future cash investments will use NPV projections to achieve maximum return with limited risk.
8.1Important Assumptions
?
l The resilience of the coffeehouse industry to negative national and world events will continue. Despite recession and war the coffeehouse industry has shown strong growth every year for the past two decades.
l The quality of national chains will remain the same or decline slightly rather than improve as they standardize their stores, increase automation of espresso drinks and mass-produce the roasting process.
l Coffee drinks will continue to be considered an "affordable luxury."
l 15% minimum sales growth rate over the next three years as Sweet Coffee Shop becomes well known.
8.2 Break Even Analysis
A break-even analysis table has been completed on the basis of average costs/prices. With fixed costs of $26,400 and $4.50 an average sale, we need approximately $35,000 per month to break-even.
Break Even Analysis
8.3 Projected Profit and Loss
We project high net profits starting in the first year. Our growth rate is based upon industry averages, factoring in the local conditions. We expect growth of 15% annually for the first three years before leveling off at the 800 - 900 customer per day average traffic rate.
First fiscal year gross revenues are expected to exceed $600,000 and after-tax net profits of approximately $99,000—increasing to more than $260,000 by the third fiscal year-end.
Our margins are very good. This is due in large part to the low direct cost of sales as well as the low operating costs in general for coffeehouses.
Higher staff salaries, owner/operator salaries, marketing costs and rent for a premium location depress profits but, conversely, they also ultimately contribute to higher earnings and profits.
Profit Monthly
Profit Yearly
Gross Margin Monthly
8.4 Projected Balance sheet
