Coffee Shop Business Plan


Coffee Shop Business Plan


Opportunity

Problem

Not only do people living near the University of Oregon want coffee, tea, pastries or snacks, they also need a place to relax, have a group discussion or just sit and read. It is now available near the University of Oregon campus. However, it is too crowded and does not provide the right combination of factors.

Solution

Java Culture coffee bar is determined to become a daily necessity for local coffee addicts, a place to dream of as you try to escape the daily stresses of life and just a comfortable place to meet your friends or to read a book, all in one.

Market

Java Culture will target university students and faculty, as well as people working in coffee bars near their offices. According to our market research, these are the most likely customer groups to buy gourmet coffee products. Since gourmet coffee consumption is universal across different income categories and mostly depends on the level of higher education, proximity to the University of Oregon campus will provide access to the targeted customer audience.

Competition

Java Culture’s direct competitors will be other coffee bars located near the University of Oregon campus. These include Starbucks, Cafe Roma and The UO Bookstore.

Why Us?

Good coffee, pastries, additional tea options, very welcoming atmosphere.

Expectations

Forecast

As shown below, we plan to grow as derived from our sales forecast. We aim to maintain an industry-standard 60% gross profit margin and reasonable operating expenses, and to produce reasonable profits in the second and third year.

Financial Highlights by Year

You will need financing

The owners will invest $140,000 and take out a bank loan for $30,000 to cover the start-up expenses and assets needed plus deficient spending in the early months.

$27,000 is the start-up cost.

  • Legal costs for obtaining licenses, permits, and accounting services total $1,300
  • Marketing promotion expenses for Java Culture’s grand open were $3,500. Flyer printing (2,040 copies at $0.04 each) was also included in the total of $3,580.
  • ABC Espresso Services paid $3,000 to consultants for their assistance with setting up the coffee shop.
  • The total premium for insurance (general liability, workers&#8217’s compensation and property accident) is $2,400
  • Pre-paid rent expenses for one month at $1.76 per square feet in the total amount of $4,400.
  • Renovation of the premises in the amount $10,000
  • Other expenses include stationery (500 USD) and phone/utility deposits (2500 USD).

These expenses will be incurred before launch, so they take their place in our financial projections as negative retained earnings of $27,680 at the end of the month before we begin. The balance sheet shows this number.

The necessary start-up assets, which are $143,000

  • Cash in the bank totaling $67,000. This includes enough cash to pay employees and owners salaries of $23,900 in the first two months, and cash reserves for three months (approximately $14,400 per month).
  • Initial inventory of $16,000 which includes:

    • Coffee beans (12 regular brands, five decaffeinated ones) #8211 $6,000
    • Coffee filters, baked goods, salads, sandwiches, tea, beverages, etc. – $7,900
    • Retail supplies (napkins, coffee bags, cleaning, etc.) – $1,840
    • Supplies for office &#8211: $287
  • Equipment for the total amount of $60,000:

    • Espresso machine – $6,000
    • Coffee maker &#8211, $900
    • Coffee grinder #8211 $200
    • Food service equipment (microwave, toasters, dishwasher, refrigerator, blender, etc.) – $18,000
    • Storage hardware (bins. utensil rack. shelves. food case.) #8211 $3,720
    • Counter area equipment (counter top, sink, ice machine, etc.) – $9,500
    • Servier area equipment (plates and glasses, flatware, etc.) – 8211; $3,000
    • Store equipment (cash registers and security systems, signage, ventilation, etc.) #8211; $13,750
    • Office equipment (PC, fax/printer, phone, furniture, file cabinets) – $3,600
    • Other miscellaneous expenses – $500

Funding for the company comes from two major sources–owners’ investments and bank loans. Arthur Garfield & James Polk have contributed $70,000 & $30,00, respectively. All other investors have contributed $40,000, which brings the total investments to $140,000. The two bank loans of $30,000 each were used to pay the remaining start-up expenses and assets. A $10,000 loan for one year and a $20,000.00 loan for five years provided the rest. Both loans were secured with the Bank of America. Thus, total start-up loss is assumed in the amount of $27,000.

These amounts appear in the balance sheet one month prior to opening. Paid in Capital is what the $140,000 investment looks like. The $27,000 expenses show up as negative retained earnings. Assets and liabilities are both there. Financial standards dictate that this happens.

Coffee Export Business Plan


Coffee Export Business Plan


Silvera & Sons roasts green Arabica coffee beans in Brazil. The beans are then exported to American specialty roasters. We will expand production capacity from 72,000/60kg bags per year to 120-160,000/60kg per year. Our coffee stands apart from other coffees. We only roast the top five percentage of Arabica coffee beans on the planet, in terms quality standards. Customers love this product because it allows them to differentiate themselves from specialty roasters. In the past six years, demand for our coffee has exceeded the amount we are able to supply and we have been forced to refuse requests for larger shipments.

In the first year, we expect growth of 30% and sales to exceed ($BRL) our expectations. In year three the plant will run at maximum capacity and based on the current price of coffee we expect excellent profits ($BRL). According to current importers, we have good indicators that the extra beans will be exported.

Our keys to success include:

  1. Establishing and maintaining relationships with American importers as well as Brazilian coffee brokers and wholesalers.
  2. In three years, bring the new facility to maximum productivity.
  3. Our profit margin will increase with the improved technology used in the new facility.
  4. Through targeted communications, we communicate effectively to customers and potential customers our position as a distinguished provider of Arabica beans of the highest quality in the world.

1.1 Objectives

Silvera & Sons aims at:

  • Increase production and sale from 78,000/60kg bags per year to approximately 100,000/60kg bags per year in the first year of operation at the proposed facility and reach maximum capacity of 120,000/60kg bags per year by year three.
  • Sales will increase substantially within the first year.
  • Establish strategic partnerships with 10-10 American importers at Los Angeles, San Francisco and Seattle.
  • The next three years will see an increase in gross margins.

1.2 Mission

Silvera & Sons Ltda seeks to serve coffee importers and enthusiasts by exceeding minimum acceptable quality standards and by providing the highest quality product at the lowest possible price. We value the relationships we have with our customers, both current and future, and want to show our appreciation by providing exceptional, guaranteed product quality, personalized service, and efficient delivery. Honesty and responsibility will be our commitment to Brazil and its customers.

1.3 Keys to Success

These are the keys to Silvera & Sons’ success:

  • Establishing and maintaining relationships with American importers as well as Brazilian coffee brokers, wholesalers and distributors.
  • Bringing the new facility to maximum production within three years of operation.
  • The use of better technology in our new facility will allow us to increase our profit margin.
  • Effectively communicating to customers and potential customers our position of a distinct provider of Arabica beans of the highest quality in the world.


Coffee Kiosk Business Plan


Coffee Kiosk Business Plan


Opportunity

Problem

You can find many types of coffees and caffeinated specialty drink that match the snacks we serve. Some prefer black and some prefer sweet, weak coffee. Some prefer green tea. Many people have traveled around the world and sampled many different cuisines. This makes it easy to determine what they like and don’t.

Solution

The Daily Perc serves the highest quality hot and cold beverages. They specialize in specialty coffees, blended drinks, and other custom-made beverages. TDP will also be selling soft drinks and fresh-baked pastries as well as confections. TDP will also offer beverages like hot apple cider and hot chocolate as well as frozen coffees.

Market

The United States of America is a very mobile country. The invention of the automobile allowed us to be more mobile and thrived. It has only gotten worse. America has over 250 million citizens, half of which are too poor or too old to drive an automobile. Yet, there are more licensed vehicles on the roads than people. Mobility has been a key component of our society’s existence.

Our market is made up of consumers who have busy schedules, a desire for quality, and disposable income. Even though they want to be able to relax in a luxurious coffee shop, sip on a special blended coffee beverage, and read the morning paper every day, they don’t always have the time. However, they still have the desire for the uniquely blended beverage as they hurry through their busy lives.

Concurrence

There are four general competitors in The Daily Perc’s drive-thru market. They are the national specialty beverage chains, such as Starbucks and Panera, local coffee houses–or cafes–with an established clientele and a quality product, fast food restaurants, and convenience stores. These outlets have a distinctive clientele.

The ‘#8220’ experience is what customers seek when they visit a Starbucks or local cafe. They desire to have the opportunity to &#8220/design&#8221 the coffee they order, to smell the freshly baked pastries, to listen to the soothing Italian tunes, to read the local newspaper, or to visit with their friends. It is a tranquil, slow-paced environment.

Customers at convenience stores or fast food restaurants are quite the opposite. They don’t have time to chat and will pay a lot for any beverage that the machine makes, so long as it’s fast. They pay for their gas and they are back on the road to work. They know the value of time, despite having the ability and taste to discern good from evil.

Mobile Cafes in campuses are not able to compete with fast food places, vending machines, company cafeterias, or other nearby eateries. In this environment, consumers want a quick, inexpensive, high-quality, and convenient refreshment that allows them to return to their work, class, or other activities.

Mobile Cafes are open to all vendors licensed to sell refreshments. Attendees to such events expect to pay a premium price for a quality product.

Why Us?

The Daily Perc offers the best in hot and chilled beverages. We specialize in specialty coffees, blended and other customized drinks. TDP also offers soft drinks, freshly baked pastries, and other confections. TDP will occasionally add hot apple cider to hot chocolate and frozen coffees.

Expectations

Forecast

The Financial Picture of the Daily Perc looks very promising. TDP is a cash-based company so the initial cost of starting a business is considerably lower than many other start ups. TDP understands the process is labor-intensive and that it requires a higher level talent. TDP’s competitive advantage will be its financial investment in its employees. Facilities and equipment must be financed in order to qualify for this pro-forma. These items will be capital expenditures, and they can be funded. It will be necessary to have a minimum amount of stock in order to maintain the product’s quality and to allow for price drops if and when they occur.

The Daily Perc expects that the initial combination investment and long-term financing will be achieved.

You can carry it without needing to invest any equity or debt. While this may mean that the company will grow slower than usual, it will still achieve solid financial growth, based on customer demand and product demand.

Financial Highlights by Year

You will need financing

Planned Investment

Partner 1 $20,000

Partner 2 $20,000

Partner 3 $20,000

Partner 4 $20,000

Partner 5 $20,000

Partner 6 $20,000

Partner 7 $20,000.

Partner 8 $20.250

Partner 9 $28,250

Partner 10 $21,250

Total of $221.950

Coffee Distribution Business Plan


Coffee Distribution Business Plan


The Coffee Warehouse is a new business providing high-quality, full service distribution of coffee, specialty beverages and beverage-related supplies to coffee houses and espresso stands throughout the Spokane and Northern Idaho market.

Steve and Jennifer Smith are the main owners. They have combined over 20 years of experience in sales and distribution. We are seeking additional equity capital for our investment. In addition, we are seeking a bank line to finance inventory and receivables. We have firm commitments to distribute several high-quality new age beverage products, and have verbal commitments from independent retailers throughout the Spokane and Northern Idaho market to carry our product. Within 30-60 days after finalizing financial arrangements, our first products will be distributed.

The Coffee Warehouse has sales projections of approximately $2229,000 per year. These numbers will rise to approximately 2,558,000 in Year 2 then to around $2,936,000 for Year 3. Our net profit is estimated at $283,000 for the first year. It will increase to $406,000 by Year 3.

Our business’ distinctive characteristics will include a combination of sales and distribution experience, management experience, and high-quality innovative products and outstanding customer service. The unique thing that sets us apart is the fact that we are the only full service distributor serving the specialty beverage and coffee industries in the Spokane/Northern Idaho markets. In addition, The Coffee Warehouse has an exclusive contract to distribute a new, groundbreaking product that would enable us to gain immediate access to a majority of the potential customer base.

1.1 Objectives

  • To establish and run a profitable coffee and new age beverage distributorship in Spokane/Northern Idaho. The first year will see three to five employees.
  • To obtain a minimum of 100 regular customers in the Spokane/North Idaho market the first year of operation.
  • In the first year, sales exceed $2,000,000
  • Maintain an average gross profit margin of 25 percent
  • To achieve a net profit of minimum $400,000 by year three.

1.2 Mission

The Coffee Warehouse intends to become a recognized distributor of specialty beverages and beverage-related supplies and services to coffee houses and espresso stands throughout Spokane and Northern Idaho.

The Coffee Warehouse plans to develop strong relationships with key customers so we will be viewed as indispensable partners, rather than just another supplier. We will work closely together with each customer to recommend the right product assortment for their retail store, appropriate stocking levels and pricing, display options, and promotional ideas to increase sales. Coffee Warehouse will collaborate with the manufacturers we represent to ensure that our customers receive the most innovative and interesting products. We don’t sell product. We also sell service.

1.3 Keys of Success

  • Innovative quality products
  • We offer personalized customer service, providing our customers with what and when they desire.
  • Only full service distribution company in the Spokane/Northern Idaho market.
  • Fully integrated programs that help customers increase sales via menu development, creative promotion, advertising, and custom-made marketing material.
  • Exclusive distribution rights to ground-breaking products not currently available in our market.
  • The combined experience of the principal owners bring upper office management skills, high levels of customer service, and over 20 years in distribution and sales management.