B P (B) SKS : Usiness LAN Coffee Usiness Plan THE Coffees Takbeer Ascade Plaza Jorraypull Lahore
B P (B) SKS : Usiness LAN Coffee Usiness Plan THE Coffees Takbeer Ascade Plaza Jorraypull Lahore
B P (B) SKS : Usiness LAN Coffee Usiness Plan THE Coffees Takbeer Ascade Plaza Jorraypull Lahore
(DATE)
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TABLE OF CONTENTS
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6.0 Organization and Management.......................................................................................22
6.1 Organizational Structure..............................................................................................................................22
6.2 Management Team......................................................................................................................................22
6.3 Management Team Gaps.............................................................................................................................22
6.4 Personnel Plan.............................................................................................................................................22
6.5 Board of Directors.......................................................................................................................................23
7.0 Financial Plan....................................................................................................................23
7.1 Important Assumptions...............................................................................................................................23
7.2 Start-Up Costs.............................................................................................................................................24
7.3 Source and Use of Funds.............................................................................................................................25
7.4 Break-Even Analysis...................................................................................................................................26
7.5 Projections...................................................................................................................................................26
7.5.1 Projected Profit and Loss........................................................................................................................26
7.5.2 Projected Cash Flow...............................................................................................................................28
7.5.3 Projected Balance Sheet..........................................................................................................................29
7.6 Business Ratios...........................................................................................................................................29
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1.0 Executive Summary
The SKS coffee will be a one of a kind coffee house located in takbeer arcade plaza at jorray
pull near askari 10. The 500 square foot coffee shop will be located in the newly constructed
Market takbeer arcade plaza at joraypull near askari 10. The anchor tenant, the Price Chopper
grocery store, has already taken occupancy and the excellent location brings more than 1000
shoppers weekly.
The sks coffee aptly named for the aromatic brown liquid that will fill the cup, fills the void of
original cafes in the market area, stands out from its corporate peers with their fast food concepts
and fast services. The sks coffee is the alternative to fast food/commercial/coffee shops and
offers a much calmer, civilized coffee experience. There are no televisions in the café, the
background music is subtle and work from local artists will hang on the walls.
The café is well appointed with overstuffed leather chairs and sofas in a library like setting. The
café is reminiscent of times gone by – yet is cutting edge technologically with WIFI and state of
the art machines.
The sks coffee measures its financial success in terms of increased market share and in earnings.
This is a tremendous opportunity! The keys to success will be the ability to offer quality coffees,
take advantage of its small size, and reliance on an outstanding staff. In order to achieve these
goals, the café will offer some the area’s finest beans from local distributors. Because of its
small size, the café can enjoy larger margins in the form of lower overhead. The cafe will hand
select baristas and offer salaries comparable to the chains. In turn the employes will be trained to
cross-sell, and sell the higher margin products.
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1.4 Keys to Success
The sks coffee stands out from the competition. Below are their Keys to Success:
2.1 Ownership
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now a days .we will provide our customers a relaxing environment..we will also provide
them a wifi facility .we provide them an airconditioned coffee shop in a very reasonable
rate .
3.0 Products/Services
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In the event that one of the aforementioned specialty suppliers cannot meet their needs, the
following national suppliers can both provide all of the food-service products that they
require. In addition, the following wholesalers will supply the café with general restaurant
supplies:
Ampack ltd Karachi pakistan
Fari traders ltd Karachi pakistan
Additional future services will include in-store sales for home purchase as well as an
online store.
The website will have an option to purchase prepaid gift card program – Prepaid gift cards
not only provide immediate cash, but also reduce credit card transaction charges and draw
new customers to the business.
4.0 National publications and organizations recognize jorraypull for its business
environment and livability.
Drive
Competitive Landscape
Consumer taste and personal income drive demand. The profitability of individual
companies depends on the ability to secure prime locations, drive store traffic, and deliver
high-quality products. Large companies have advantages in purchasing, finance, and
marketing. Small companies can compete effectively by offering specialized products,
serving a local market, or providing superior customer service. Specialty eateries, which
include coffee shops, are labor-intensive: average annual revenue per worker is about
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50000. Coffee shops compete with businesses such as convenience stores, gas stations,
quick service and fast food restaurants, gourmet food shops, and donut shops. (First
Research)
Within 5 miles of the subject, are 37 businesses involved in the coffee industry,
including chains, restaurants, and tea houses reporting annual revenues in excess of
$54 million. Of these 37 businesses, 20 are Starbucks coffee shops capturing $35.7
million in revenues or 66% of the market share. An additional 8 coffee houses are
franchises capturing $9.7 million represent 18% of the market share. The
comparables – those closely held coffee shops/cafes that will compete for the
subject’s business represent $8.3 million in annual revenues or 15% of the total
market.
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Gloria Jean's Coffees was founded by Gloria Jean Kvetko in 1979 in Chicago, USA.
Gloria Jean's Coffees began as a small coffee and gift shop in Chicago USA which now
has over 110 locations throughout the US.
Buttler’s chocolate café:
Butlers Chocolates is an Irish owned manufacturer of luxury chocolate and
chocolate products. Founded by Ms. Bailey-Butler in 1932, it has been
owned by the Sorensen family since 1959. Butlers Chocolates is an Irish
chocolate producer and operates from a custom built production facility in
North Dublin and in Pakistan too. It produces a wide range of confectionery
products including chocolate assortments, truffles, fudge, toffee, chocolate
bars and seasonal novelties. The company has also created a chain of
Butlers Chocolate Cafes.
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4.2 Market Tests
Research from Yelp, FourSquare, and GooglePlaces, indicates the Overland Park market is
in need of a new local café. The locals have been clamoring for the current private shops
to improve service and/or reduce prices to keep pace with larger chains and franchises,
thus providing a unique niche for the right entrant.
While employed by a national restaurant chain, Mr. Jones was constantly directing patrons
to offsite coffeehouses for those seeking that final dessert and cup of coffee prior to
finishing their evening. This is the reason he ultimately began seeking the location for his
coffee house.
Most adult coffee drinkers said their lifelong habit began during their teenage years. In fact,
54% said they began drinking coffee between 13 and 19. Another 22% reported their coffee
cravings started between the ages of 20 and 24. This means that 76% of adult coffee
drinkers began drinking coffee by the time they were 24. So, despite the large amount of
marketing and advertising directed at the younger age groups, savvy coffee shop owners
will not forget to cater some of their offerings to the adult and senior market. (National
Coffee Drinking Study).
The SKScoffees will offer a unique experience for coffee aficionado by offering a quiet
and cozy yet sophisticated cafe and offer a sense of refinement and peace in an otherwise
hectic and fast paced world. While other coffee shops cater to convenience with drive
throughs or loud music venues late into the night, itwill stand apart from its competitors
with its quiet yet soothing ambience, capturing a truly unique (and much needed) market
niche
.
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4.3.2 Market Trends
Unique products (specialized roasts, local ingredients, locally themed or
named drinks, custom drinks by the‘star’ barista, etc.)
Games, puzzles, mind benders and other activities that encourage
customers to linger over their coffee
Hosting or sponsoring local events (entertainment, readings, book clubs,
etc.)
Using technology to creatively compete in marketing with the big chains
— services like FourSquare, Yelp, and Google Places can increase visibility in the
local market.
Delivering amazing service from knowledgeable baristas — spend lots of time
training staff and utilize online services like the American Coffee & Barista School
Selling coffee-related items (and track down any co-marketing opportunities with
a local community college or other student-related group in the area)
4.4 Positioning
The SKS will position itself as a local coffee house or a ‘suburban’ coffeehouse providing
a sanctuary for those in the ‘burbs’ without the hassle of having to drive downtown
By charging similar prices as the large chains – the service and quality of the
product will commensurate with the price
The SKS coffees is genuinely unique place to gather and meet friends, and enjoy
coffee
Amenities such as free WIFI, chess games, comfy overstuffed chairs, create a
relaxing environment
The market does not need a café offering fast food breakfasts or another after
hours bar
The SKS coffees will position itself as the alternative to the chain/franchise/fast
food coffee house.
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5.0 Marketing Strategy and Implementation
The Russet Cup will provide a quiet and relaxing environment to enjoy gourmet roasted coffee
and smoothies and an opportunity to visit with friends, catch up on one’s email, or read a chapter
of a book. The Café will fill the great void providing originality in a sea of facsimile, corporate
coffee shops. The café’s baristas will be extremely knowledgeable and offer assistance in any
coffee purchase while simultaneously providing customers with outstanding service.
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5.1 SWOT Analysis
The SWOT analysis examines the café’s strengths and weaknesses that need to be
addressed. Further, this section examines the opportunities presented to Café as well as
potential threats.
5.1.1 Strengths
Based on its smaller size, the fact that it is not a franchise, the SKS coffees
is a unique coffee shop concept unlike any other in the market.
The owner has firsthand experience, in operating and starting new
restaurants,
Handpicked baristas will bring professionalism and enthusiasm to the
shop.
5.1.2 Weaknesses
Franchises are the easiest way and often the safest conduit to start a café; the
café will not have the backing of one of these established entities.
The SKS coffees has a minimal budget and is competing against larger and
more established coffeehouses for market share.
Opportunities
The jorraypull bazaar demographics support the need for a unique coffee
shop.
Additional opportunities to target the active and recently retired target market
and 45 years+ age group.
A small slice of a much bigger pie is the goal. Only 40 percent of the nation’s
coffee drinkers are consuming premium ground and whole bean coffee.
Encouraging coffee drinkers to become coffee connoisseurs is the key to
continued growth.
5.1.4 Threats
The Morning Glory Coffee shop is currently for sale; should another
independent purchase this café, it could pose significant threat to market
share.
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In addition, during its first year of operations the coffee shop will pass out a limited
number of coupons for a free cup of coffee to prospective customers visiting the
shopping center.
Young Families
The third targeted markets, younger families, often find that coffeehouse are not ‘kid’
friendly. The company has long term plans to create a combination coffee shop / play area
so that parents and caregivers will have a place to meet with other adults while the children
can enjoy the bounce houses, slides and indoor playground equipment.
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that the most valuable customer demographic of daily coffee consumers is not
influenced by discount programs or coupons.
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sales and customer service training to make each transaction active, rather than
passive. Sales contests will emphasize high margin items or cross selling
5.7 Milestones
Listed below are the milestones for the SKS coffees
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5.8 Table 5.8 Milestones
Milestone Date
Secure occupancy Overland Park location Completed
Tenant improvements and build outs Mar 20XX
Purchase furniture and décor Apr 20XX
Assemble and hire barista team May 20XX
Advertise on local radio station / mail fliers May 20XX
Open for Business Jun 20XX
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6.0 Financial Plan
The financial plan will cover the following:
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6.2.1 Projected Profit and Loss
The estimated profit and loss for the SKS coffees are as follows:
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Table 7.5.1 Pro Forma Profit and Loss
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6.2.2 Projected Cash Flow
The statement of cash flow shows the incoming and outgoing cash of the business.
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