Daniel Rothrock
Bobby Raggazino
Dustin Betz
Alexander Engler
Bachar Sayegh
Michael Easterbrook
The Problem: Downtown State
College
 Inconvenient
study locations
 Limited and uncomfortable seating
 Expensive textbooks
 Small tables designed for eating
 Many of the study areas close early
The Idea:

The Textbook Café
 A conveniently located lounge optimally
designed for all of a student’s schoolwork
and studying needs.
 Profits come from two sources
○ Textbook rentals (memberships)
○ Coffee sales.
Value Proposition:
The Textbook Café is the ideal study spot.

Location
o Available to a large portion of students.

Design
o Comfortable yet work oriented.

Purpose
o A place meant for studying with few distractions.

Modern
o An appealing style and desirable environment
People would prefer the Textbook Café.
A.
B.
C.
The book rental prices will beat the student bookstore.
The Coffee Prices will beat any coffee shop.
It’s the best option for studying and doing schoolwork.
Market Research
28,000 students live off-campus
 Completed research in the areas of:









Starbuck’s
Irving’s
Dunkin Donuts
Chronic Town
Cozy Thai
Dorms
Apartments
Abba Java
Concept Art
Design Features
Mobile Furnishings
 Interior Design

 Modern
 Minimalist
 Natural Lighting
Keurig
 Working Walls

3D Model
Electrical Cost Analysis
Total Average hours Total
Watts per year
Watt*Hours
Appliance/Application
Variable 1 Variable 2
Variable 3
Variable 3
Office Lighting (Lux)
Sq
Meters
Lumenocity Efficiency for
32W florescant Bulb
# of Bulbs Needed
450
Lumens for
Building (L)
371.61
55741.82
2827
20
640
3504
2242560
# of Appliances
Keurig
3
4,200
438
1839600
Laptop
50
5000
876
4380000
Cell Phone Chargers
50
750
876
657000
4000
24
96000
Misc.
Total Watt*Hrs
Price $.07/Wh per year
Price $.07/Wh per month
9215.16
645.0612
53.7551
Cost Projections
First off, how much will it cost just to get
started?
After calculating the cost of all materials for our café,
we estimated an initial cost of at most $50,000.
 $150,000 Loan
 $100,000 to operate with
Cost Projections

Cash Flow
Spreadsheet
○ Predicts Monthly
Financial Pattern
Cost Projections

Three Year Projection
Start Up (Jan ’12)
May ‘12
Dec ‘12
May ‘13
Dec ‘13
May ‘14
Dec ‘14
400
August
‘13
400
Estimated
Membership
(50 at startup)
Cash Balance
($100,000 Initially)
Profits
150
300
550
550
550
$69,122.50
$47,889
$54,311.50
$98,795
$82,273
$123,120.50
$172,382
-$30,877.50
-$52,111
-$45,688.50
-$1,205
-$17,727
$23,120.50
$72,382
 This is a best case scenario.
The Good
Market research demonstrates a
demand for a texbook cafe
 Operating at our estimated capacity
shows profitability
 Simple business model allows for easy
expansion

The Bad
Initial investments are high given the risk
 People like to keep textbooks for future
use
 Inability to check out books
 Potential e-reader growth
 Low return on investment

What next?