Cappuccino Cafe: Coffeeshop Business Plan
The Cappuccino Café is a new coffee shop in the uptown Middleburg district.
The café will be known for over 20 flavors of cappuccino, coffee and coffee
based products. In addition, light snacks and sandwiches will be offered to
accompany the cappuccino and coffee based products. The café
establishment will play modern music for ambiance and provide free wireless
internet access for patrons to attract professionals in the nearby business
areas. The mission of Cappuccino Café is to provide high quality products
and services in a warm and inviting environment.
This free business plan from ExploreStartups.com We provide this free
coffeehouse business plan as a template for you to use when creating your
own coffeeshop business plan.
Outline for Coffee Bar Business Plan
1. Executive
Summary
2.
Company
3.
4.
Products
The
Industry,
Summary
and
Competition
Services
and
Market
5.
Marketing
Plan
6.
Operating
Plan
7.
8.
9.
Management
Goals
and
Financial
Strategies
Plan
10. Appendix
Business Plan Executive Summary by Jeremy Reis on Wednesday,
February 14, 2007
1. Executive Summary
The Cappuccino Café is a new coffee shop in the uptown Middleburg district.
The café will be known for over 20 flavors of cappuccino, coffee and coffee
based products. In addition, light snacks and sandwiches will be offered to
accompany the cappuccino and coffee based products. The café
establishment will play modern music for ambiance and provide free wireless
internet access for patrons to attract professionals in the nearby business
areas. The mission of Cappuccino Café is to provide high quality products
and services in a warm and inviting environment.
The café will serve a variety of cappuccinos and coffees, including gourmet
blends and espresso. The cappuccino flavors will include vanilla,
gingerbread, eggnog, peppermint, spearmint, cinnamon, French toast, and
crème Brule among many others. Other available beverages, such as soda
and juice, will also be available. The café will also search deli-style
sandwiches with the freshest ingredients, muffins, scones, croissants, and
other tasty treats.
1.1 Business Opportunity
History has proven that new business ventures fail at an astounding rate. In
addition, the coffee shop industry is a highly competitive and it is often
difficult for a new coffee shop to survive. Coffee shops require a prime
location to take advantage of the proximity of key customers such as
business persons in a metropolis or students in a densely populated college
town. The Cappuccino Café will take advantage of this business opportunity
by being located on the corner of 15th Street and Main Street in the
Financial District. This corner is directly in the center of the business district
with no other coffee shops within a 4 city block radius. In addition, 4
education institutions are located in the city and 2 of them are located
directly in the business district.
The Cappuccino Café will serve flavored cappuccinos, coffee products,
sandwiches, beverages and treats. The café will also offer free wireless
internet connectivity.
Businesspersons taking a break from work or having an impromptu meeting
can take advantage of the proximity of the café. Students can quickly jump
online to research assignments while they enjoy one of the numerous
flavored cappuccinos provided.
1.2 Café Description
The unique theme of the Cappuccino Café will bring expectations of an
upbeat, cozy, and friendly atmosphere. The café's floor plan and furnishings
have been designed to ensure these expectations are met.
The Cappuccino Café will be located in ground floor of the E-Sception
corporate office building. The space is currently designed for a book store,
but will be remodeled with a glass storefront. The interior will be unique,
offering a high, decorative ceiling. The common area will have wooden
coffee tables surrounded by plush chairs and sofas. On the walls, wooden
tables with standard chairs will allow patrons to setup laptop computers and
spread out paperwork. The walls will be painted in a warm color scheme to
enhance the relaxed atmosphere. The walls will be decorated with artwork
from local artists. The floor plan will provide 3000 square feet of usable
space inside in addition to some corner seating outside.
The Cappuccino Café will provide an upscale atmosphere, but with
competitive coffee prices. Menu items will range from $2.00 to $8.00.
Below is draft of the floor plan as it will look upon remodel completion:
Business Plan Executive Summary (continued) by Jeremy Reis on
Wednesday, February 14, 2007
1.3 Current Business Position
The Cappuccino Café will be a Limited Liability Corporation (LLC), to be
founded March 2004, with plans to move into the newly renovated ground for
space of the E-Sception corporate office building. The owners, Kevin and
Jane Whittaker, have several years of restaurant industry experience, and
plan on opening for business May 1, 2004. They will supply a cash
investment of $24,800 in order to secure additional financing and be the coowners/operators/managers.
Jane Whittaker has managed several restaurants in the Chicago area. She
was kitchen manager at Chez Rene for 2 years and general manager at The
Red Tiger Bar and Grill for 3 years. Jane has proven herself as a leader in
providing quality products with exceptional service. Throughout her 7 years
of restaurant industry experience Jane has excelled in training Employees
and "doing more with less" in order to trim labor costs.
She knows what it takes to be successful, and is prepared to spend the time
necessary to make the café a success.
Kevin Whittaker will be the assistant manager. Kevin comes highly
recommended. He has been an assistant manager for the Web Cafe in
Chicago for over 3 years.
The café will be a sit-down coffee shop with wi-fi connectivity. The café will
serve a variety of flavored cappuccinos, coffee products, beverages,
sandwiches, and treats to local customers.
1.4 Financial Potential
The Cappuccino Café will be profitable in its first year. The traffic from the
local library, the corporate workers in the building it operates from, and from
the busy streets will ensure a successful venture. A modest loan from the
Whittaker's parents and favorable terms from the SBA will prove to be
beneficial as the Cappuccino Café grows and prospers.
The Cappuccino Café will have sales of $533,764 in its first year of
operation. Years two and three will have sales increases of 10%, resulting in
sales of $576,551 and $622,575, respectively. Operating expenses are
$304,136 for year one, $327,694 year two, and $353,326 year three. The
results for the first three years of operation are net income of $36,521 for the
first year, $42,356 for the second year, and $47,819 for year three.
Below is a summary of income and expenses for the Cappuccino
Café's first three years of operation:
A 10% growth is justified by the lack of coffee shops in the area, and
because of the traffic from the library. It is also assumed that as the building
apartments are filled, more traffic will be present in the coffee shop.
Below is a graph displaying the Cappuccino Café's financial position
during its first three-year period:
1.5 The Request
The Cappuccino Café is seeking $35,000 in startup capital to combine with
$24,800 invested by its founders. The startup funds will be used to purchase
furniture, fixtures, equipment, inventory, and provide working capital.
Coffee Shop Business Plan Company Summary
2. Company Summary
Jane Whittaker has managed several restaurants in the Chicago area. She
was kitchen manager at Chez Rene for 2 years and general manager at The
Red Tiger Bar and Grill for 3 years. Jane has proven herself as a leader in
providing quality products with exceptional service. Throughout her 7 years
of restaurant industry experience Jane has excelled in training Employees
and "doing more with less" in order to trim labor costs. She knows what it
takes to be successful, and is prepared to spend the time necessary to make
the café a success.
Kevin Whittaker will be the assistant manager. Kevin comes highly
recommended. He has been an assistant manager for the Web Cafe in
Chicago for over 3 years.
The Cappuccino Café will be a Limited Liability Corporation (LLC) that will
serve the uptown Middleburg district. The Cappuccino Café offers flavored
cappuccino and other coffee products, snacks and free wi-fi service for
checking email and surfing the web. The
Cappuccino Café will take advantage of this business opportunity by being
located on the corner of 15th Street and Main Street in the Financial District
in ground floor of the E-Sception corporate office building.
2.1 Company Ownership
The Cappuccino Café is an Illinois LLC with two members, Kevin and Jane
Whittaker.
Kevin is a 35% member and will provide back office experience. Jane is a
65% member and will be responsible for day to day operations and
management.
2.2 Company History
The Cappuccino Café is a new venture formed as an LLC this year. Jane is
a 65% member and will be responsible for day to day operations and
management. Bill is a 35% member and will provide back office experience.
2.3 Start-up Summary
The startup plan will be in three phases: company formation & funding, shop
build-out, store launch.
The company formation and funding phase is approximately 40% completed.
The LLC has been formed and partial funding has been raised by the
founders of the Cappuccino Café. Additionally funding is required to
complete the remaining phases of the startup plan.
The coffee shop build-out portion of the startup plan will be the most capital
intensive.
Currently, the shop location is a former coffee shop, so some of the build-out
required for an empty location is not required. However, certain key areas
such as flooring, paint, and furniture require improvements prior to opening.
The final phase of the start-up plan is to launch the store. The launch will
coincide with a marketing plan to include local advertising, in-store events,
and free drinks to local business owners. With a community room area
above the shop, marketing to local businesses and organizations to hold
meetings in the shop will increase business dramatically.
2.4 Company Locations
The Cappuccino Café's primary place of operation will be located on the
corner of 15th
Street and Main Street in the Financial District in ground floor of the ESception corporate office building. The address will be 368 Main Street. This
quaint downtown area provides a lot of foot traffic and has Middleburg
Community College to the south.
The Community College provides a steady flow of students throughout the
day. In addition, the business persons in the office building will add to the
number of patrons.
This will be the primary location of the business. There are no plans to open
additional locations within the first 3 years of operation.
Coffee Shop Products and Services
3. Products and Services
As the only coffee shop inside of a 5 block radius of the E-Sception
corporate office building, the Cappuccino Café will offer a vital service to the
area. Sandwiches, coffee, and treats will entice all to come for something
different. In addition, the multiple flavors of cappuccino will provide a novel
twist to the most popular drink in America (Coffee is the #1 drink in the
country, surpassing even water). All of the sale items combined with the free
wi-fi will provide business people, as well as locals, the opportunity to dine,
drink, and surf all at the same time. The patrons will be able to stop before
work for a pick-me-up, over lunch to fill the daily void, or for dinner for a
wonderful meal. Food and drinks will be offered for dine-in or take-out.
Local vendors will supply all food. Seattle's Best Coffee will provide all coffee
supplies.
Multiple food and beverage distributors are available in the greater
Middleburg area.
The Cappuccino Café will serve coffee product orders at the register and
deliver them to the patron's table when time is needed to prepare the order.
3.1 Product Overview
The Cappuccino Café will offer many items that would not be made at home.
From the gourmet Seattle's Best coffee to the bagel sandwiches, the
Cappuccino Café will offer something different for all tastes. Daily
cappuccino specials will be offered, featuring a different blend and flavor
each day. The house specialty will be a Spicy Cinnamon
Extra Foam Giant Cappuccino and the cafe will feature a half slice of the
famous Cheesecake Factory cheesecake.
Follows is a list of Seattle's Best Coffee selections that will be served
at the Cappuccino Café:
Beach House Blend (TM) Coffee
Organic Twilight TM SWISS WATER® Decaf
Seattle's Best Blend ® Coffee
Henry's Blend ®
Tazza d'Oro ®
Post Alley Blend ®
Saturday's Blend ® Coffee
6th Avenue Bistro ® Blend
Portside Blend ®
Post Alley Blend ® - Decaf Coffee
Grand Central Blend
Organic/Shade-Grown Tierra Verde
100% Kona Coffee
Jamaican Blue Mountain Coffee (8 oz.)
Seattle's Best Blend ® - Decaf
Costa Rican Coffee
Guatemala Coffee
The Cappuccino Café 9
Colombian Coffee
French Roast Coffee
Italian Roast Coffee
Fair-Trade Certified® Organic French Roast
Organic/Shade-Grown Blue Water TM
Organic/Shade-Grown Sumatra
Organic/Shade-Grown Breakfast Blend
Hazelnut Creme Coffee
Irish Creme Coffee
Irish Creme Coffee - Decaf
Swiss Chocolate Coffee
Vanilla Nut Coffee
© 2002 Seattle's Best Coffee, LLC - Terms of use
Cappuccino and Coffee will be sold in three sizes, with prices ranging from
$2.00 to $5.00. Flavors will be available at an additional charge of $0.50.
Espresso, cappuccino, mocha, and other specialty drinks will be available in
two sizes and will cost $3.75 and $6.50.
Follows is a list of Cheesecake Factory cheesecakes that will be served
in the Cappuccino Café:
ORIGINAL NEW YORK STYLE
FRESH STRAWBERRY
WHITE CHOCOLATE
RASPBERRY TRUFFLE®
FRESH BANANA CREAM CHEESECAKE
CHOCOLATE SILK AND SATIN CHEESECAKE
TIRAMISU CHEESECAKE
CHOCOLATE MOUSSE CHEESECAKE
VANILLA BEAN CHEESECAKE
TRIPLE CHOCOLATE CHIP
KAHLUA COCOA COFFEE CHEESECAKE
PASSION FRUIT PINA COLADA
DULCE DE LECHE CARAMEL CHEESECAKE
WHITE CHOCOLATE CHUNK MACADAMIA NUT
CHOCOLATE TUXEDO CREAM CHEESECAKETM
DUTCH APPLE CARAMEL STREUSEL
BROWNIE SUNDAE CHEESECAKE
CHOCOLATE PEANUT BUTTER COOKIE-DOUGH CHEESECAKE
KEY LIME CHEESECAKE
LEMON RASPBERRY CREAM CHEESECAKE
CHOCOLATE RASPBERRY TRUFFLE®
GERMAN CHOCOLATE CHEESECAKE
CHOCOLATE CHIP COOKIE-DOUGH CHEESECAKE
STICKY CHEWY CHOCOLATE PECAN CHEESECAKE
LEMON MOUSSE CHEESECAKE
SOUTHERN PECAN CHEESECAKE
CHOCOLATE PECAN TURTLE
CHERRY
BLUEBERRY
ADDITIONAL SEASONAL SELECTIONS
Cheesecake will be sold by the half slice. Prices range from $2.75 to $4.00.
Whole cheesecakes will be available for purchase in a price range of $25.00
to $50.00. Other treats will also be available, such as bars, scones, muffins,
and cookies.
Competitive Analysis & Suppliers and Inventory by Jeremy Reis on
Wednesday, February 14, 2007
3.2 Competitive Analysis
The key competitors to the Cappuccino Café are Starbucks in Greenpoint,
The Coffee Bean, Joe's Cafe, Cyber Cafe, and Rick's Cafe. Follows is a
breakdown of the local competition:
Starbucks in Greenpoint
The Starbucks in Greenpoint is located at 151A Nassau Ave. Greenpoint, IL.
Their hours of operation are from 7 a.m. to 8 p.m. Monday through Friday,
Saturday from 10 a.m. to
4 p.m. They offer specialty coffees in a cozy atmosphere. They partner with
T-Mobile to provide access to Wi-Fi for a monthly or per day fee to their
patrons.
The Coffee Bean
The Coffee Bean is located at 435 7th Ave, Park Slope, Middleburg, IL. Their
hours of operation are from 9 a.m. to 10 p.m. Monday through Friday,
Saturday from 10 a.m. to
10 p.m. They offer specialty coffee and a limited, pre-prepared, sandwich
menu.
Joe's Cafe
The Joe's Cafe is located at 500-A Elmont Road, Elmont, IL. Their hours of
operation are from 7 a.m. to 9 p.m. They serve specialty food, and offer an
espresso bar.
Rick's Cafe
The Rick'sCafe is located at 273 Lafayette St., Middleburg, IL (Between
Lafayette and Prince St. in the Highpoint residential district). Their hours of
operation are from 8:30 a.m. to 10 p.m. daily. They offer Timothy's World
Famous Coffee as well as baked goods.
3.3 Suppliers and Inventory
Jane Whittaker will purchase all food items locally. Baked goods will come
from Burke
Supply Company, GIlbert , IL. Fresh meats, cheeses, and vegetables will be
purchased through Foodsource Distributors, Middleburg IL. Other food items
will be purchased through Nick Penachio Company, Inc., Chantilly, IL. Jane
spent many hours researching and negotiating the best prices with these
distributors.
Follows is a list of food distributors that will be used for the
Cappuccino Café:
Burke Supply Company
Bldg. 293 Flushing & Cumberland
GIlbert, IL
Foodsource Distributors
1303 Randall Ave
Middleburg, IL
Nick Penachio Company, Inc.
240 Food Center Drive
Chantilly, IL
Jane spent countless hours taste-testing various brands and types of coffee.
After much personal deliberation, Jane decided that the Cappuccino Café
would exclusively sell
Seattle's Best Coffee, distributed by Seattle's Best Coffee, Seattle, WA.
Quality, taste, deliverability, and price were all factors in Jane's decision.
Follows is the contact information for Seattle's Best Coffee:
Seattle's Best Coffee
413 Pine Street, Suite 500
Seattle, WA 98101
Beverages will be purchased through the Coca-Cola bottling company of
Chicago. Coke was chosen as the beverage to sell because of price, taste,
and quality of service provided by the local distributor.
Follows is the contact information for Coca-Cola Bottling Company:
Coca-Cola Bottling Company
4824 Mercer Street
Chicago, IL 60603
Jane didn't waste any time deciding where she would get her cheesecake.
She has loved the Cheesecake Factory cheesecake since she had her first
piece in San Diego, CA.
Follows is the contact information for the Cheesecake Factory:
Cheesecake Factory
1504 Old Country Road
Westbury, NY 11590
The Cappuccino Café will need to purchase $5,000 in inventory to start the
business, and then will purchase according to sales because inventory is a
function of sales.
The Industry, Competition, and Market
4. The Industry, Competition and Market
Currently, there are over 32,210 coffee shops in over 149 countries, with
over 20,000 in the U.S. alone. The state of Illinois is home to 3512 coffee
shops. The trend is that the traditional coffee cafe will be replaced with
cafe's that offer more customer friendly tools, such as wi-fi and other websurfing tools worldwide. Jane is ahead of the competition in the Middleburg
district and the Cappuccino Café will be on the cutting-edge of technology.
4.1 The Coffee Shop Industry
The Cappuccino Café will be competing in the restaurant/food service
industry. Along with the many food and beverages that will be served, the
Cappuccino Café will offer free wi-fi.
The restaurant/food service industry is growing at astounding rates.
According to the
National Restaurant Association's Industry Forecast, restaurants produce
approximately
4% of the U.S. GDP (gross domestic product). This total is expected to rise
steadily over the course of the next 10 years. Within eight years, it is
expected that the average family will spend more than half of their food
budget on pre-prepared food.
4.2 Primary Competitors
COMPETITION
The following cafes will be direct competitors to the Cappuccino Café:
Starbucks in Greenpoint
The Starbucks in Greenpoint is located at 151A Nassau Ave. Greenpoint, IL.
Their hours of operation are from 7 a.m. to 8 p.m. Monday through Friday,
Saturday from 10 a.m. to
4 p.m. They offer specialty coffees in a cozy atmosphere. They partner with
T-Mobile to provide access to Wi-Fi for a monthly or per day fee to their
patrons.
The Coffee Bean
The Coffee Bean is located at 435 7th Ave, Park Slope, Middleburg, IL. Their
hours of operation are from 9 a.m. to 10 p.m. Monday through Friday,
Saturday from 10 a.m. to 10 p.m. They offer specialty coffee and a limited,
pre-prepared, sandwich menu.
Joe's Cafe
The Joe's Cafe is located at 500-A Elmont Road, Elmont, IL. Their hours of
operation are from 7 a.m. to 9 p.m. They serve specialty food, and offer an
espresso bar.
Rick's Cafe
The Rick'sCafe is located at 273 Lafayette St., Middleburg, IL (Between
Lafayette and Prince St. in the Highpoint residential district). Their hours of
operation are from 8:30 a.m. to 10 p.m. daily. They offer Timothy's World
Famous Coffee as well as baked goods.
All competitors offer coffee, sandwiches and treats, however, none of them
offer free
wi-fi. The Cappuccino Café offers all of the above with pleasant service!
The Industry, Competition, and Market (continued)
4.3 Market Size and Growth
The following information has been provided by the U.S. Census:
Population, 2001 estimate:
Middleburg - 1,337,928
Illinois - 19,011,378
Population percent change (April 1, 2000-July 1, 2001):
Middleburg - 0.4%
Illinois - 0.2%
Population, percent change (1990 to 2000):
Middleburg - 10.7%
Illinois - 5.5%
Land area, 2000 (square miles):
Middleburg - 42
Illinois - 47,214
Persons per square mile (2000):
Middleburg - 31,729.8
Illinois - 401.9
The Middleburg district in Illinois is one of the largest counties in the U.S.
With almost 32,000 people per square mile so all businesses have the
potential of filling various needs. The Cappuccino Café is no exception. With
the growth rate expected to rise, the
Middleburg will provide an ever-growing resource of people for the
Cappuccino Café.
Source: U.S. Census (July 15, 2003)
4.4 Customer Profile
The primary target market for the Cappuccino Café will be the local business
people.
Area buildings are filled will office personnel, approximately 250,000
employed within two square miles. These business people will frequent the
Cappuccino Café before work for a cup of coffee, at lunch for a tasty
sandwich, and after work for a treat and to check their email and surf the
web.
Secondary target markets for the Cappuccino Café are the people who
frequent the library, Middleburg Community College students, and the
tenants of the E-Sception corporate office building. The community college
has over 20,000 students. The library averages over 700 visitors daily, and
the E-Sception corporate office building, with 16 companies leasing space,
will average 600 employees.
It is well known that people with higher expendable income frequent coffee
shops.
Follows an estimate of the median household income for Middleburg County:
Middleburg County:
Estimate - $25,750
90% Confidence Level - $23,404 to $28,084
Source: U.S. Census (July 15, 2003)
Although $25,750 is below the median for the state, most of the employees
that work around the Cappuccino Café are well above this level. The
majority of the employed people in the area commute from within Middleburg
metro area.
Coffeeshop Marketing Plan
5. Marketing Plan
The Cappuccino Café will build its marketing plan around the four P's of
marketing. They are:
Price - The Cappuccino Café will be known for its competitive prices for food
and Internet service.
Product - The Cappuccino Café will offer a wide variety of food, beverages,
and treats.
Only the highest quality items will be sold.
Place - The Cappuccino Café will be located in the E-Sception corporate
office building. A great place for food, fun, and entertainment.
Promotion - The Cappuccino Café will be promoted in a variety of ways.
5.1 Competitive Advantage
The main competitive advantage of the Cappuccino Café is its menu. No
other cyber café offers a full range of food, beverages, and treats to go along
with their connectivity. The
Cappuccino Café will offer only the best products and service to its
customers.
The Cappuccino Café's other competitive advantage is its location. Located
on the busiest intersection in the Middleburg district the corner of 15th Street
and Main Street, the café will derive substantial business from business
professionals.
5.2 Pricing
Jane has done extensive research regarding pricing for the Cappuccino
Café. She has polled local and regional cafes, as well as look at national
statistics on coffee and sandwich pricing. Through menu analysis (found in
the Appendix), Jane has planned her menu pricing accordingly. All prices
take into consideration the cost of material, 25% for food and 45% for
beverages.
Coffee will be sold in three sizes, with prices ranging from $2.00 to $5.00.
Flavors will be available at an additional charge of $.50. Espresso,
cappuccino, mocha, and other specialty drinks will be available in two sizes
and will cost $3.75 and $6.50.
Cheesecake will be sold by the half slice. Prices range from $2.75 to $4.00.
Whole cheesecakes will be available for purchase in a price range of $15.00
to $20.00.
Sandwiches will be sold for various prices, depending on the meat chosen. A
veggie sandwich will be the lowest priced sandwich at $2.50. The highest
priced sandwich will be the prosciutto and provolone on a wheat croissant. It
will sell for $6.75. All sandwiches are sold deli-style.
All soft drinks and juices will be sold for $1.25.
Coffeeshop Marketing Plan (continued)
5.3 Promotional Plan
The Cappuccino Café will be promoted in a variety of ways. The annual
budget allotment for advertising is $19,904 for the first year of operation.
These monies will be distributed as follows:
1. Fliers ($4,500) - Fliers will be printed monthly showing the nightly
specials. They will be distributed throughout the area on cars, handed out at
the library, delivered to the local office buildings, and posted on street signs
and other obvious places.
2. Print ads ($2,450) - The Cappuccino Café will run a bi-weekly ad in the
Chicago Tribune. This classified ad will introduce the Middleburg area to the
new cafe and tell hours of operation and location information. The ads will
cost $94.25 per run.
3. Billboards ($3,900) - The Cappuccino Café will utilize two billboards. The
first is on the corner of 15th Street and Main Street (on top of the E-Sception
corporate office building), and the second is on the busy I495 expressway,
approximately 3 miles from the cafe. The billboards will be rented for a total
of 7 times (four times for the billboard on top of the E-Sception corporate
office building, three times for the billboard on the I495 expressway), at a
cost of $557.14 per month.
4. Radio ($5,550) - The cafe will run many radio spots on local radio
stations. The ads will feature the daily coffee specials and will air during the
morning and afternoon drive times to capitalize on drive-by traffic.
5. Entertainment ($4,000) - The Cappuccino Café will feature local
entertainment every other weekend. The entertainers will provide music,
poetry, art, and dancing. These events will be promoted through additional
print and radio spots.
6. Web Presence ($5,000) - The Cappuccino Café will promote the
business and specials over the Internet through a web presence. The
website will be updated monthly to advertise specials and product offerings.
The Cappuccino Café will promote itself to its current customers by offering
discount memberships for frequent consumers. There will be buy 10 get one
free cards available for coffee, and two stamps will be given out for their
Two-Stamp-Tuesday" promotion.
The remaining advertising budget will be used to print membership and
frequent consumer cards.
5.4 Feedback
The Cappuccino Café will use two methods to measure customer
satisfaction. They include:
Comment Cards:
With each purchase, customers will receive comment cards to fill out. The
cards will have questions about quality, speed of service, attitude of the
employees, and overall satisfaction from the experience.
Personal Interviews:
On a daily basis, Jane will stop and speak with customers to ask them about
their food, drinks, and service. She will give out 25% off coupons to people
who give her "honest" answers.
Coffeeshop Operating Plan
6. Operating Plan
The Cappuccino Café will be located iin ground floor of the E-Sception
corporate office building, on the corner of 15th Street and Main Street,
Middleburg, IL 60603. The cafe will utilize the newly remodeled main floor of
the building, which has 3,000 square feet of usable space.
There is a substantial amount of start-up equipment that will need to be
purchased. Most will be financed with the SBA loan. Jane has secured local
vendors to supply food and beverages for the cafe and hired Kevin Whittaker
to be her assistant manager.
6.1 Location
The Cappuccino Café will be the first free "connected" cafe in the
Middleburg district.
Located on the corner of 15th Street and Main Street in downtown, the
Cappuccino Café will be situated in the most high traffic area of Middleburg.
The cafe will move into the newly upgraded E-Sception corporate office
adjacent to the local library.
6.2 Facility
The E-Sception corporate office building, an 1990's creation that will house
the
Cappuccino Café has been updated to facilitate new building codes and
improved technological devices. Vaulted ceilings add to the quaint charm of
the coffee shop. The cafe walls will be painted in warm tones to enhance the
calm environment of the coffee shop; however, the large pillars that hold up
the ceiling will be decorated with art from local artists. The furniture will be
shallow wooden tables and chairs with a glossy finish.
The cafe will utilize the main floor of the building, and cater to the office
employees and nearby students. The main floor has 3,000 square feet of
usable space.
Coffee Shop Operating Equipment and Vendors
6.3 Operating Equipment
In order for the Cappuccino Café to begin operations, there are many items
that will need
to be purchased. Follows is a list of items necessary to begin business:
3 Bunn-O-Matics - $7,500
3 Cappuccino Makers - $15,000
2 Computers - $1,600
Routers & Networking - $2,500
Printers & Misc. Hardware - $1,000
Furniture & Fixtures - $25,000
Counter & Kitchen Equipment - $7,000
Signage - $5,000
Flatware & Tableware - $2,500
Leasehold Improvements - $10,000
POS System - $12,000
Total Purchases - $89,100
See purchases list, in the Appendix, for more information on equipment
purchases.
6.4 Suppliers and Vendors
Jane Whittaker will purchase all food items locally. Baked goods will come
from Burke
Supply Company, GIlbert ,IL. Fresh meats, cheeses, and vegetables will be
purchased through Foodsource Distributors, Middleburg, IL. Other food
items will be purchased through Nick Penachio Company, Inc., Chantilly, IL.
Jane spent many hours researching and negotiating the best prices with
these distributors.
Follows is a list of food distributors that will be used for the
Cappuccino Café:
Burke Supply Company
Bldg. 293 Flushing & Cumberland
GIlbert ,IL
Foodsource Distributors
1303 Randall Ave
Middleburg, IL
Nick Penachio Company, Inc.
240 Food Center Drive
Chantilly, IL
Follows is the contact information for Cappuccino Café's coffee
supplier:
Seattle's Best Coffee
413 Pine Street, Suite 500
Seattle, WA 98101
Follows is the contact information for Cappuccino Café's beverage
supplier:
Coca-Cola Bottling Company
4824 Mercer Street
Chicago, IL 60603
Follows is the contact information for Cappuccino Café's cheesecake
supplier:
Cheesecake Factory
1504 Old Country Road
Westbury, NY 11590
Follows is the contact information for the Cappuccino Café's website
development and hosting supplier:
A1 Internet Hosting
3283 J Street
Chicago, IL 60603
Coffee Shop Operating Equipment and Vendors
6.5 Personnel Plan
Jane Whittaker has managed several restaurants in the Chicago area. She
was kitchen manager at Chez Rene for 2 years and general manager at The
Red Tiger Bar and Grill for 3 years. Jane has proven herself as a leader in
providing quality products with exceptional service. Throughout her 7 years
of restaurant industry experience Jane has excelled in training Employees
and "doing more with less" in order to trim labor costs.
She knows what it takes to be successful, and is prepared to spend the time
necessary to make the café a success.
Kevin Whittaker will be the assistant manager. Kevin comes highly
recommended. He has been an assistant manager for the Web Cafe in
Chicago for over 3 years.
Follows is a list of personnel needed per shift, and a breakdown of
costs per employee:
PERSONNEL PLAN:
Monday thru Thursday, two employees will be working from 7 a.m. to 11
a.m., three from 10 a.m. to 3 p.m., and two from 3 p.m. to 9 p.m., which
translates into 35 hours per day. Friday and Saturday will work the same;
however, the two employees closing will work until 1 a.m., which is 39 hours
per day. Sunday will require three employees all day; this equals 24 hours
for the day.
The personnel plan requires the following breakdown of employees,
the total hours they will work, and the cost for each:
1. One Manager @ $16 = 2,080 @ $16 = $33,280
2. Two Asst. Manager @ $13 = 4,160 @ $13 = $54,080
3. Seven Part-time @ $7.50 = 6,344 @ $7.50 = $47,580
Additional salaries and wages expenses will come from raises and bonuses
for productivity (all decided by management). Jane will be paid through
distributions.
Follows is a breakdown of annual personnel expenses for the
Cappuccino Café's first three years:
Year 1 - $163,705
Year 2 - $180,076
Year 3 - $198,083
6.6 General Operations
The Cappuccino Café will be open for operation the following hours:
Monday thru Thursday: 7 a.m. to 9 p.m.
Friday and Saturday: 10 a.m. - 1 a.m.
Sunday: 10 a.m. - 4 p.m.
Coffee Shop Management Business Plan
7. Management
Jane Whittaker has managed several restaurants in the Chicago area. She
was kitchen manager at Chez Rene for 2 years and general manager at The
Red Tiger Bar and Grill for 3 years. Jane has proven herself as a leader in
providing quality products with exceptional service. Throughout her 7 years
of restaurant industry experience Jane has excelled in training Employees
and "doing more with less" in order to trim labor costs. She knows what it
takes to be successful, and is prepared to spend the time necessary to make
the café a success.
Kevin Whittaker will be the assistant manager. Kevin comes highly
recommended. He has been an assistant manager for the Web Cafe in
Chicago for over 3 years.
Goals and Strategies - Coffeeshop Business Plan
8. Goals and Strategies
The Cappuccino Café will be successful. This business plan has
documented the feasibility of such a venture, and will result in acquiring the
proper financing to start the cafe. All industry trends, competitive analysis,
and financial reports support this fact.
8.1 Business Goals
Jane Whittaker has several goals for her first three years of operations. They
are as follows:
1. Achieve net income of $36,000 for year 1.
2. Achieve ending cash of $15,000 for year 1.
3. Grow sales to $622,575 by the end of year 3.
4. Pay off the loan from her parents in month 29.
8.2 Keys to Success
Jane Whittaker has identified 6 keys to success. They are:
1. Maintain low cost of goods and inventory.
2. Serve the highest quality food and beverages.
3. Offer the best and friendliest service.
4. Immediate market penetration.
5. Develop a strong team.
6. Do more with less.
8.3 Future Plans
Jane plans on paying off her debt as soon as possible. According to financial
projections, Jane will have enough extra cash by the end of year three to
pay off the rest of her debts by the fourth month of year four.
Financial Plan - Coffeeshop Business Plan
9. Financial Plan
The financial projections for the Cappuccino Café's are based on
conservative sales and industry standard expenses. These projections allow
for long-term loan repayment and adequate cash flow.
Below are the Cappuccino Café's projected annual sales:
Below are the Cappuccino Café's projected annual expenses:
In addition to above projected sales and expenses, the Cappuccino Café's
financials include the following assumptions:
Cash Investment: $24,800 from Jane and Kevin Whittaker
Renovation/Equipment/Purchases: $91,000
Loans from External Parties:
SBA loan: $50,000 @ 10.0% over 5 years
Loan from parents: $20,000 One-pay loan @ 5.0% due month 30.
Financial Plan - Coffeeshop
9.2 Explanation of Break Even Analysis
BREAK EVEN ANALYSIS
Income Analysis
Cash Analysis
Page 20 of 24
9.3 Explanation of Projected Profit and Loss
PROFIT & LOSS
Sales: Month 1 of $42,910 and an 8% annual growth rate (based on similar
sized concepts).
Cost of Sales:
Food: 25% of sales.
Beverages: 75% of sales.
Operating Expenses - Based On Industry Standards, Except:
Salaries & Wages Year 1 - $163,705, Year 2 - $180,076, Year 3 - $198,083
(add 16% payroll burden)
Advertising: Estimated to average 3.7% of sales, slightly lower than a new
restaurant.
Lease: Amount negotiated with owner of the E-Sception building.
Internet Access & Cable: Negotiated with local service provider.
9.4 Explanation of Projected Cash Flow
CASH PLAN
Other Expenses: Operating expenses
9.5 Explanation of Projected Balance Sheet
BALANCE SHEET
Inventory: Fixed at $5,000.
PPE: See Purchases List in Appendix (Initial balance of 91,000).
A/P: Inventory purchases.
Line of Credit: Not used.
Current Maturities & LT Debt: Loans from external parties:
SBA loan: $50,000 @ 10.0% over 5 years
Loan from parents: $20,000 One-pay loan @ 5.0% due month 30.
Business Plan Appendix by Jeremy Reis on Wednesday, February 14,
2007
10. Appendix
This section contains the following reports and supporting documentation:
• Income Projection
• Expense Projection
• Profit & Loss
• Balance Sheet
• Cash Plan
• Ratio Analysis