…..MASTER OF BREAKS
By:
Ahmed Jawwad
Faisal Aldhuwaihi
Grace Shalah
Jebreen
een
Luca Filippone
• A love for Coffee.
• Accustomed To High Quality.
• In search of a cozy place to hang out, relax and study with friends.
• Looking for these things, we turned the idea into an
opportunity!
• Our Vision: To create a chain of cafeterias within all
universities in the state of Texas.
• Our Mission: To serve the best Italian coffee and provide
students, faculty and staff with a clean and comfortable
environment to study, meet up and relax at The University of
Dallas campus.
The SURVEY gave us important information about:
• Consumption of coffee beverage among students.
• Food preference among UD population
• Purchase ability of students.
• UD Students &Staff Population
• Current Student population (2600), Enrollment
Fall 2014 1380 Undergraduate; 1,220
Graduate.
• Faculty and staff members: (139 full time, 200
estimated part time members).
• All the new potential students studying in the
Gupta College of Business
•
U.S. daily coffee consumption 61%.
•
Young coffee drinkers between ages of
18-24 have increased coffee
consumption.
•
The same trend has appeared for adult
coffee consumers from ages 25-39
years of age.
•
More than three quarters of American
adults drink coffee.
•
Quarter of American coffee consumers
drink gourmet coffee daily.
Source: National Coffee Association
• Now that we have the numbers to prove that our Cafeteria
would be successful, it’s time to create a beautiful design for
the new space!
• What colors do we want to use?
• What kind of a feel do we find the most appealing for studying,
meeting up with a friend, working or anything else that
students and others on campus do daily?
• Serving Italian Coffee
• Hours Connected With Library
(7a.m.-1.am.)
• New Building
• European Environment
• New Products Not Yet Available On
Campus
(Crepes)
Strengths
• Premium Italian Coffee.
• Hours of operation are consistent with The
University of Dallas library.
• Socialize and study in one place.
• Bringing Italian and European experience; value
and culture to the University of Dallas.
• Niche Market.
• La Tazza is not an established business.
• Low start up capital.
• The founders of La Tazza do not have any prior
experience.
• Limited exposure in the state of Texas.
•
Popularity of coffee drinking among students, faculty and
staff at The University of Dallas.
• Adding more value to the already established University of
Dallas.
• Customers from surrounding areas within walking
distance.
• The new building.
• Create new jobs.
• People at The University of Dallas who may not enjoy the taste.
•
People at The University of Dallas who have become
accustomed to services at The University of Dallas.
• On campus competition.
•
Understanding of the true European culture transmitted through the
founders.
•
Original recipes for espresso and its derivatives.
•
A new way for students, teachers, and faculty to meet up,
hang out and study at The University of Dallas.
Per Unit Cost For One Cup of Coffee
Items
2% Milk
Coffee
Chocolate Powder
Whipped Cream
Cup
Total Cost price
Selling Price
Competition Price
(Starbucks)
Usage (oz)
10
2
1
1
1
Price
$0.21
$0.24
$0.13
$0.11
$0.05
$0.74
$2.99
Buy and sell
Selling
Cost Price Price
Regular Muffins
$0.35
$2
Snacks (Chips)
$0.15
$1.25
Croissants
$0.25
$1.25
Cookies
$0.17
$1
Cinnamon Rolls
$0.35
$2.70
Cheese Danish
$0.35
$2.70
Per Unit Cost For One Crepe
Piece Of Cake
$0.30
$1.25
Items
Usage (oz) Price
Cup Cake
$0.35
$1.25
Eggs
Flour
Vanilla
Salt
Butter
Sugar
2% Milk
Total Cost
Selling Price
3
8.80
2
2
1.40
2
10
Bottled Water
$0.10
$1.25
Orange Juice
$0.50
$1.50
Fruit Basket (Mixed Fruit) $0.50
$1.25
Donuts
$0.25
$1.25
Salad
$1.50
$3
Sandwiches
0.25
3.25
$4.66
$0.24
$0.28
$0.24
$0.02
$0.22
$0.09
$0.21
$1.30
$2.99
Average Selling Price
$1.78
Break Even Analysis
Break Even for Coffee Per Customer
Year
104,148
Month
8,679
Day
289
Break Even For Crepes Per Customer
Year
104,148
Month
8,679
Day
289
Break Even Per Customer
Year
42,843
Month
3,570
Day
119
Cost for one person
$7.76
Number Of
Customers
From August
To April
Average Day
Number Of
Customers
From May to
July
Good Day Total
Average Day
Good Day Total
Number Of
Customers Per
Day
275
Number Of Days 22
350
8
90
22
110
8
Sales Per Month
$21,724
$$15,362
$6,828
Sales For 9
Months
Total Sales For
One Year
$46,939
$68,663
$617,970
$11,095
$33,284
$651,254
Income Statement form 2016 to 2020
Growth
Revenue
COGS
Gross profit
Expenses
employees salaries
rent expense
utilities
supplies Expense
Depreciation Expense
Marketing expense
Insurance expense
Repairs and
Maintenance
Total Expenses
Net Income Before Tax
Tax Expense
Net Income After Tax
1.15
1.05
1.03
1.02
2016
2017
2018
2019
2020
$650,134 100% $747,654 100% $785,037 100% $808,588 100% $824,760 100%
$72,558 11.16% $83,442 11.16% $87,614 11.16% $90,242 11.16% $92,047 11.16%
$577,576 88.84% $664,212 88.84% $697,423 88.84% $718,346 88.84% $732,713 88.84%
$244,296
$24,000
$6,000
$6,000
$10,000
$14,457
$6,000
37.58%
3.69%
0.92%
0.92%
1.54%
2.22%
0.92%
$256,511
$24,000
$6,000
$6,000
$10,000
$16,626
$6,000
34.31%
3.21%
0.80%
0.80%
1.34%
2.22%
0.80%
$282,803
$24,000
$6,000
$6,000
$10,000
$17,457
$6,000
36.02%
3.06%
0.76%
0.76%
1.27%
2.22%
0.76%
$291,287
$24,000
$6,000
$6,000
$10,000
$17,981
$6,000
36.02%
2.97%
0.74%
0.74%
1.24%
2.22%
0.74%
$297,113
$24,000
$6,000
$6,000
$10,000
$18,340
$6,000
36.02%
2.91%
0.73%
0.73%
1.21%
2.22%
0.73%
$650
0.10% $748
0.10% $785
0.10% $809
0.10% $825
0.10%
$311,404 47.90% $325,884 43.59% $353,045 44.97% $362,076 44.78% $368,278 44.65%
$267,465 41.14% $338,328 45.25% $344,378 43.87% $356,269 44.06% $364,435 44.19%
$93,613 14.40% $118,415 15.84% $120,532 15.35% $124,694 15.42% $127,552 15.47%
$173,852 26.74% $219,913 29.41% $223,846 28.51% $231,575 28.64% $236,882 28.72%
Statement of Cash flow from 2016 to 2020
2016
2017
2018
2019
2020
Net Income
$173,852
$499,914
$633,759
$750,334
$847,216
Depreciation
$10,000
$10,000
$10,000
$10,000
$10,000
$183,852
$509,914
$643,759
$760,334
$857,216
$(50,000)
$-
$-
$-
$-
$(50,000)
$-
$-
$-
$-
Cash Flow from Operations
Net Cash provided by Operating
Cash flow from investment
Purchase of equipment
Net Cash used by the investing activities
Cash flow from Financing activities
Stock Holder Equity
$170,000
Dividends
$(23,852)
$(100,000)
$(125,000)
$(150,000)
$(150,000)
Net Cash provided by Financing activities
$146,148
$(100,000)
$(125,000)
$(150,000)
$(150,000)
Net Increase / Decrease in Cash
$280,000
$409,914
$518,759
$610,334
$707,217
Retained Earnings From 2016 to 2020
2016
2017
2018
2019
2020
Beg/ Retain
$-
$150,000
$269,913
$368,759
$450,334
Net Income
$173,852
$219,913
$223,846
$231,575
$236,882
Dividend
$23,852
$100,000
$125,000
$150,000
$150,000
Pay Out Ratio
End of Retain $150,000
14%
45%
$269,913
56%
$368,759
65%
$450,334
63%
$537,216
Balance Sheet From 2016 to 2020
Assets
Cash
Inventory
Account Receivables
Pre-Paid Supplies
Pre-paid Rent
Prepaid Insurance
Long term Assets
Equipment
Accumulated Dep.
Total Assets
Liabilities
Account Payable
Salaries and Wages Payable
Other Payables
Total Liabilities
Common Stock Equity
Retaining earning
Total of Liabilities and Owner equity
2016
$280,000
$23,010
$3,742
$1,400
$2,000
$500
2017
$409,914
$25,471
$4,100
$2,300
$2,000
$500
2018
$518,759
$27,458
$3,900
$2,600
$2,000
$500
2019
$610,334
$27,421
$4,100
$2,400
$2,000
$500
2020
$707,217
$27,423
$5,341
$1,900
$2,000
$500
$50,000
$(10,000)
$350,652
$50,000
$(20,000)
$474,285
$50,000
$(30,000)
$575,217
$50,000
$(40,000)
$656,755
$50,000
$(50,000)
$744,381
$13,250
$17,402
$12,452
$21,919
$14,250
$22,208
$13,460
$22,962
$16,520
$20,645
$30,652
$170,000
$150,000
$350,652
$34,371
$170,000
$269,913
$474,284
$36,458
$170,000
$368,759
$575,217
$36,422
$170,000
$450,334
$656,756
$37,165
$170,000
$537,216
$744,381
• The quality of food at The University of Dallas is not up to par.
• There is no quality coffee provided for the students, faculty and
staff at The University of Dallas.
• La Tazza will provide students, faculty and staff a place to meet
up, socialize and work in an enjoyable environment.
•
•
•
• Covered area 161.46ft to 322.92ft
• plant and equipment
• Number
Items
Quantity
Price
Total
Tables
15
260
3900
• 2
Chairs
60
50
3000
• 3
Sofa
3
400
1200
• 4
leather chairs
6
200
1200
• 5
Cash register
2
500
1000
espresso machine
2
6000
12000
• 7
dish washer
1
1000
1000
• 8
credit card machine
2
125
250
• 9
Tablets and software
5
300
1500
• 13
Refrigerator small
2
150
300
• 1
• 6
• Number
• 10
Items
Microwave
• 11
Price
250
Total
500
Crepes Maker Machine 1
1000
1000
• 12
Refrigerator Big
1
2400
2400
• 13
Refrigerator small
2
150
300
• 14
Coffee counter
4
1500
6000
• 15
cups and saucers
100
12.5
1250
Decoration
1
5000
5000
Other equipment
1
8500
8500
• 16
• 17
Quantity
2
• we will open From 7 am tell 1 am = 18 houres a day = 9 houres a shift
• we will have 2 staff per shift one hour rate = $ 7.5 each
• we also goning to have a manager his salary will be $50,000 a year
• Wages and salaries
• hours salaries number cost per day cost per month
• staff 18 7.5 4 540 16200
• manager 9 15.4 1 138.6 4158