Coffee Shop Business Plan Example

Coffee Shop Business Plan

People near the University of Oregon need not just coffee and tea, pastries and snacks, but also a place to meet, have group discussions, or work. That is available near the University of Oregon campus, but often too crowded and not right for everyone.

Solution

Java Culture coffee bar will become a daily necessity for local coffee lovers. It will be a place to escape the daily stresses and meet friends or read a book, all in one.

Market

Java Culture will target University students and faculty, nearby office workers, and sophisticated teenagers. These are the customer groups most likely to buy gourmet coffee products. The proximity to the University of Oregon campus provides access to the targeted customers.

Competition

Java Culture’s competitors will be other coffee bars located near the University of Oregon campus, such as Starbucks, Cafe Roma, The UO Bookstore, and other food service establishments.

Why Us?

Java Culture offers great coffee, pastries, options for tea, a welcoming atmosphere, good wireless, desk space, comfortable chairs and tables, and a location close to the university campus.

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Expectations

Forecast

We plan to grow as shown in the chart below, taken from our sales forecast. We aim to maintain a 60% gross profit margin and reasonable operating expenses, and to produce profits in the second and third year.

Financial Highlights by Year

Financing Needed

The owners will invest $140,000 and take out a bank loan for $30,000 to cover start-up expenses and assets needed.

The start-up expenses of $27,000 include:

  • Legal expenses totaling $1,300
  • Marketing promotion expenses of $3,500
  • Consultant fees of $3,000
  • Insurance coverage at a total premium of $2,400
  • Pre-paid rent expenses of $4,400
  • Premises remodeling of $10,000
  • Other start-up expenses including stationery and phone and utility deposits

The required start-up assets of $143,000 include:

  • Cash in the bank totaling $67,000
  • Start-up inventory of $16,000
  • Office supplies and equipment
  • Store equipment

Total financing for the company comes from owners’ investments and bank loans. Two major owners have contributed $100,000 and all other investors have contributed $40,000. The remaining $30,000 needed came from bank loans.

Opportunity

Problem & Solution

Problem Worth Solving

People near the University of Oregon need a place to meet, work, and read. That is available near the University of Oregon campus, but often too crowded and not the right fit for everyone.

Our Solution

Java Culture will create a unique place where customers can socialize in a relaxing environment, while enjoying the best brewed coffee or espresso and pastries in town. We will provide great ambience, convenient location, friendly customer service, and consistently high-quality products.

Target Market

Market Size & Segments

The retail coffee industry has shown steady growth in the United States. The University of Oregon has a large student and faculty population, as well as a community of 200,000 people. Our main market will be students, faculty, staff, and nearby residents.

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Competition

Current Alternatives

Java Culture’s direct competitors will be other coffee bars located near the University of Oregon campus, including Starbucks, Cafe Roma, and The UO Bookstore. We will position ourselves as a unique coffee bar that offers great-tasting coffee and a cozy, comfortable environment.

Keys To Success

Keys To Success

The keys to success will be a visually attractive store design, employee training, and marketing strategies aimed at building a loyal customer base and maximizing sales of high-margin products, such as espresso drinks.

Execution

Marketing & Sales

Marketing Plan

Java Culture will position itself as a unique coffee bar where patrons can enjoy perfectly brewed coffee in an ambient environment. We will use strategic banners, fliers, customer referrals, cross-promotions, and loyalty programs to build our client base. We will also engage with customers through social media.

Sales Plan

Java Culture baristas will handle the sales transactions. All sales data will be logged and analyzed for marketing purposes.

Operations

Locations & Facilities

Java Culture coffee bar will be located on the ground floor of a commercial building at the corner of West 13th Avenue and Patterson Street in Eugene, OR. The premises will be remodeled to accommodate the espresso bar, kitchen, storage area, and seating area with 15 tables.

The location is within walking distance from the University of Oregon campus and is easily accessible to the community. The interior design will convey the quality of the served beverages and snacks.

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