A Business Plan for a Coffee Shop (Essay Sample)

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Business Plan for a Coffee Shop
Executive Summary
The Star Dubai Coffee Shop is set to become the latest fad in the trendy coffee and pastries business. The coffee restaurant is determined to provide the best, brewed coffee for residents of Deira, West Dubai. The restaurant is designed to be a hub for university students, techies, young corporate and anyone in need of a revitalizing cup of coffee. The company will capitalize on its ideal location next to Deira town square to reach a wide array of customers. Free Wi-Fi, trendy seats and couches, lofty spaces, excellent furniture, speedy service and high grade coffee and pastries are some of the efforts made in ensuring that the Star Dubai Coffee Shop gets a consistent stream of repeat customers.
The company seeks to employ highly certified and qualified waiters to form a dynamic and energetic employee team. Faisal AL Ali, the managing director and co-founder of the business, heads the team. Kurang is best-suited for this position owing to his vast experience in the industry of hospitality and qualifications in business management. The founders of the shop have identified a strong niche for providing coffee and pastry services in the Deira area. This niche is based on the rapidly growing number of university students from Univeristy of Dubai, growing number of techies from technology start-up companies and young employees from nearby companies.
In terms of competition, Star Dubai faces little competition since there is only one other coffee shop in town. However, there exist several bars, ice-cream parlors, juice shops and coffee from home. Our main product is coffee, and thus individuals who prefer to brew their own coffee at home are a big loss of market for our business. We plan to overcome the impediments by running a campaign that seeks to change the perception of individuals about coffee. The business of selling coffee is mainly selling a lifestyle that exhibits luxury and comfort. From our research, we concluded that the residents in Deira have enough disposable incomes to live a comfortable life that includes taking coffee in restaurants, on the move, instead of kitchen-brewed home coffee.
Analysis of opportunity
The need to invest in a coffee shop, in Deira is driven by strong demand for high quality gourmet coffee and relaxation environment in the surrounding neighborhood. Deira borough is constituted by a large number of students from the nearby Univeristy of Dubai, techies from the large number of technology start-ups in the area, young employees from nearby offices and residents of the suburban borough. This population constitutes an ideal market for high quality gourmet coffee. Students and techies are attracted to the establishment by free Wi-Fi, a relaxed environment with soothing music and little bites.
Industry analysis indicates that the coffee culture in Middle East Region is steadily growing at 3% over the last five years. In 2012, the retail coffee industry was pegged at nearly $5 billion, with gourmet coffee taking up 40% of the total sales (2 billion dollars). The gourmet coffee lifestyle has been quickly adopted in Middle East Region due to the long, cold winters. The rising incomes and improved standards of living have enabled individuals to afford comfortable lives in suburbs such as Deira.
The main rivals and competitors in the coffee business are alternative drinks. The availability of substitutes such as; ice-cream parlors, fresh juice restaurants, milk bars, alcohol-based pubs and home-brewed coffee are a threat to sustainability of the coffee business in Deira. As a beverage, almost any possible drink can substitute coffee. Home-brewed coffee poses a challenge by diminishing the market served by Star Dubai Coffee Shop. However, our establishment seeks to only provide the best, high quality gourmet coffee, but also a relaxing environment for socializing. This could be ideal for coffee dates, small parties, coffee on the go for employees and an ideal working space for techies who work from any location.
Analysis of the context
The operations of a business may be influenced by factors that are indirect under the control of management. These factors are known as external factors and comprise of; political, economic, technological and socio-cultural factors.
Star Dubai Coffee Shop operates in a societal setting that is guided by rules and regulations. For a business to operate smoothly, it must adhere to the political and legal framework that affects its industry. Our business is classified as a food establishment and falls within the jurisdiction of the Food Standards Agency. The business is expected by local county government to maintain better standards of sanitation and hygiene as detailed in under the Food Standards Act of 1999. The Food Standards Agency is burdened with the responsibility of protecting public health and other consumer interests regarding food and drinks. Star Dubai Coffee Shop plans to follow the rules set out in the Food Standards Act of 1999, Dubai Union legislation on food, Codex Alimentarius and other relevant organizations.
The economic environment of Star Dubai Coffee Shop may be impacted by changes such as new tax legislation, changes in economic growth, changes in disposable incomes of consumers and expenses such as price of raw materials, labor and capital inputs. In our market research, we studied other factors such as technology and socio-cultural beliefs and established that they have little impact on the coffee business. Technology is only impacted in terms of cost-efficiency of our operations and attracting youthful customers to our establishment.
The global environment is largely in favor of the coffee business. Global trends indicate uptake in amounts of gourmet coffee and accompanying pastries. The gourmet coffee lifestyle is quickly spreading in Middle East Region and other continents, thus placing our business right in the middle of a revolutionary tide. The growing world middle class is spearheading the gourmet coffee lifestyle thanks to their growing disposable incomes.
Description of the business
A managing director, YagneshKulung, subordinated by two full-time professional baristas and four waiters, head the Star Dubai Coffee Shop. Additional employees will be hired as and when the demand arises.
Our initial market strategy is to focus on attracting customers and then retaining them with our high quality beverages and services. Establishing a loyal customer base is important in order to ensure repeat sales. The nature of our establishment and its ideal location is expected to sell itself in terms of the quality and description of customers. The marketing campaign will be run through social media, flyers, radio advertisements, and a grand launch at the venue.
Our marketing campaign seeks to price our products competitively and within the range of other major global competitors such as Starbucks, Java and Dorman's Coffee. The coffee sold at such establishments is priced at a premium that signifies high quality of the product and the accompanying experience. The first week after our launch will provide half-priced coffees for our first ‘exploratory' customers. The price will be re-instated to the normal price in the second week after a rigorous marketing and advertising campaign.
Star Dubai Coffee Shop is focused on producing high quality, gourmet type espressos, lattes, mochas and cappuccinos. These espresso-based beverages are offered with whole, low-fat, skimmed or soy milk as per the directions of our consumers. The beverages are flavored with additives such as cocoa, caramel, thyme, lemon, and cream. Our highly trained baristas will ensure that the coffee is professionally prepared to ensure that the taste is perfect.
Our competitive edge over substitutes and other similar businesses is the ability to provide high quality gourmet coffee in different flavors within a pleasant environment that is suitable for socialization, working, and relaxation needs. T...