Jasmine Teahouse in Simsbury is a new tea shop. Earl and Lady Grey are the owners of Jasmine Teahouse. They manage it as a Limited Liability Corporation. Earl Grey has managed a successful coffee shop in Maryland for five years. His passion and knowledge about teas will make it an easy transition to opening and running a teahouse. Lady Grey has three years of experience as an herbalist and four years as a Boston teatender. She is currently training to be a nutritionist; her knowledge of the health benefits of tea will help our marketing and sales efforts.
Jasmine Teahouse is able to offer hot and iced teas as well as pastries and premium chocolates. They also have loose teas that can be taken home or given as gifts. Lady Grey, a master teatender has taught Earl proper brewing techniques over the last four months. All teatenders will receive training in the proper storage, preparation, and serving of each type.
The American tea market is growing rapidly. Tea sales have increased 165% in the last 15 years. The number of tearooms offering sit down service has increased about 15% to approximately 1,500 shops. American interest in tea can be attributed to the growth of gourmet coffee shops all over the country in the same period. The marketing campaigns of Starbucks, Seattle’, Best and others have helped Americans accept the idea that expensive hot drinks are affordable luxury items. Fashion is constantly changing. With fancy coffee drinks so well-received, smart consumers are always looking for unique and new treats to enjoy. Starbucks estimates that 7% of its $12 billion annual sales currently come from tea.
Simsbury’s potential customer base is split between local residents, tourists, and around 100,000 per annum in all seasons. We expect to be able to generate sales to current tea drinkers who will quickly recognize the quality of our products. We will market to the larger, more diverse local communities that aren’t yet familiar with premium teas. This will highlight our ambience (cozy, intimate and luxurious), our prestige value (high prices and the sophistication of drinking a particular tea type), as well as our large selection of gifts (gift baskets. chocolates. loose teas. and tea accessories). It is important to have a prominent location and be associated with the charm of the town.
We don’t have any direct competitors. Dunkin’s Donuts or a local café cannot compete against our upscale approach. In fact, the nearest Starbucks can be found 5 miles away. Simsbury’’s growing wealth and gentrification are in our favor. As our upper-middle class customers seek new status markers as well as mini-luxury opportunities in a convenient, close location, we can help them achieve this.
Our accurate and conservative sales forecasts for the first year project sales above $190,000. These sales will continue to rise moderately through year 3. We expect a net profit of over $13,000 in the first-year, with steady growth in net worth through the future.
The business’s owners have invested $10,330 of their own funds. Jasmine Teahouse would like to obtain a 6-year loan of $53,633 for startup costs.
1.1 Mission
Our mission is to provide premium teas and chocolates in Simsbury CT. We do this by creating a fun and relaxed atmosphere.
1.2 Objectives
- Simsbury: To open a successful Simsbury tea and chocolate shop, one to two employees in the first year.
- To get at least 200 customers per year in the Simsbury marketplace within the first one-year of operation.
- Achieve first year sales of $190,000.
- Aim for a gross margin of at least 58 percent.
- To achieve a reasonable net profit at the end of the third consecutive year.
1.3 Keys to Success
- Experienced managers and owners. Earl and Lady Grey have years of experience in this and related industries.
- High Quality. We sell only the finest whole leaf loose teas, pastries or chocolates.
- Excellent Customer Service. We will treat each customer as if they were an honored guest in the home.
- No direct competition. We are your only teahouse in the 20-mile radius.
- Enough working capital to survive the first year as we build a customer base.
- Broad range of seasonal offerings. To meet seasonal variations in customer demands, we also offer hot teas.