Executive Summary
This report aims at drafting a
business plan structure for launching a café (inside a shopping mall) by the
name of Go Getter, in one of the major shopping district of Australia – Bondi
Junction, New South Wales.
The suggested legal structure of the
business is sole proprietorship. The format is preferred as it is inexpensive
and easy to operate also it provides a lot of flexibility in day to day
business operations, personal touch and quick decision making and implementation.
However, this structure will expose the café company to the risk of unlimited
liability and competing café’s following more formal structures such as Limited
Liability Companies will enjoy more stake holder’s confidence when compared to
a proprietary concern. The business owner’s plan is to overcome the risks of
unlimited liability by purchasing suitable insurance plan/s; and to establish
trust among stakeholders by committing to ethical business practices and
keeping operations as transparent as possible.
The business aims to build a competitive
advantage by establishing itself in one of the prime shopping centres, thereby
exposing itself to a carefully selected target market (by establishing in a
particular centre which is frequented by a particular type of population) –
ensuring early exposure to the right type of prospective client by leveraging
on the reputation of the shopping centre.
Café Go Getter will retain customers and
ensure their loyalty by servicing quality products suited to the customer’s
need, providing quality service and forging personal relationships with the
client. This along with efficient operations and appropriate employee
motivation, will determine the long term profitability of the café.
Go Getter has a mission statement that will
serve both its short term and long terms needs. It reads, Go Getter will
endeavour to continually delight its customers with tasty, unique and healthy
food/drink options focussing on customer enjoyment, employee satisfaction and
fostering of personal bonding with all stakeholders. The vision statement of
the café is, to revolutionalise the café business by providing offerings which
are healthy, tasty and appropriately priced – focussing business growth through
stakeholder satisfaction. The café will embrace values such as, customer first,
inclusive growth and personalisation to achieve the objectives mentioned under
the mission and vision statement.
The following sections provide a brief of
the various concerns of an upcoming start up which includes draft marketing,
operations and financial plan.
Marketing Plan
Go Getter’s goal/objective is to provide an
ever evolving menu of healthy yet tasty food options, with the fastest service,
the best quality and in the most ‘appetising’ ambience.
The café will ensure this by employing a
dexterous cook; one who understands that people do not want to consume
unhealthy fats or other harmful food ingredients but, also do not want to
sacrifice on the taste. Other operational staff such as waiters and bill desk
clerk will be motivated to be efficient and prompt in servicing customers.
Lastly, close attention will be paid to cleanliness and hygiene, and the
management will ensure that the restrooms, floors, furniture and kitchen
equipment are in the best of sanitary conditions always.
Target Market
The target market of Go Getter café will
consist of the following groups:
1.
Business Owners and Workers
A lot of businesses are established in the
area. Usual activity start early mornings when the workers/tradesmen arrive
thus, by opening up early Go Getter can retain loyalty of such working class
which is on the go and needs time to unwind at various intervals during the
day.
2.
Shoppers/ Tourists
Another major target group will be the
shoppers and tourists that frequent the mall. Tired after shopping middle aged
females usually look for a place to unwind and indulge in socialising.
3.
Local population
Another major target population will be the
local population. These will be young adults between the age of 18-35
frequenting the Bondi beach area or studying in various educational institutes
in the vicinity.
Competitor Analysis
Being established in one of the major
shopping districts of the nation, Go Getter will face competition from
different quarters.
1.
Organised fast food chains like
Dunkin Donuts, McDonald’s will hold superiority over the café due to their
goodwill and influence, long operational hours (24 hours in some cases) and a
wide brand recognition. However, Go Getter will score better in terms of full
service format, personal attention and healthier food options.
2.
Local café’s will be a
competition in terms of their pre established clientele. However, it has been
observed that such café’s have failed to distinguish themselves in the fields
of quality service, tasty as well as healthy food and hygienic environments;
which will precisely be the unique selling proposition of Go Getter.
Macro environment factors influencing business prospects
1.
Economic
Economic growth in the recent times has put
a lot of disposable income in the hands of the ultimate consumer. This has
definitely shown in the growth of shopping districts such as Bondi Junction (as
such places thrive on consumption spending). This puts Go Getter in an
advantageous position to benefit from the financial freedom of the general
populace.
2.
Social
With more economic freedom people have
certainly traded for less time in return. Leaving with very little skill or
opportunity to pamper themselves. Hence, requiring the services of a café like
Go Getter.
SWOT analysis
1.
Strengths
a)
Innovative and an ever evolving
menu with food options which are tasty and healthy.
b)
Hygienic ambience (restrooms,
dining area and kitchen included) as against a lot of competing local café.
c)
Personal touch in business
operations. Asking for consumer feedback frequently, adapting to changing
consumer tastes, encouraging inclusive growth of all involved and bonding with
all stakeholders.
d)
Convenient location, efficient
operations, cost control and structured management approach.
2.
Weakness
a)
Risks faced by small
proprietary organisations such as unlimited liability, limited management
expertise and limited availability of funds.
b)
Catering to specific tastes
only. Business standing the risk of being cornered into a niche market; hence,
access to limited market size.
c)
Small staff size which may not
be skilled enough to handle all business operations.
d)
Limited menu options due to the
limited resources available.
3.
Opportunities
a)
Increasing disposable income in
the hands of the consumer.
b)
Less time with people, forever
on the go and lacking skills to cook healthy and tasty meals.
c)
Opportunity to expand into
other shopping districts as well.
d)
Flexibility of format enables
modifying into other suitable business areas and increasing options on the menu
to attract a wider customer base.
4.
Threats
a)
Competition from established
food outlets such as Dunkin Donuts and McDonald’s, who have larger resources at
their disposal to oust any competition.
b)
Other cafes may modify their
format on similar lines and hence become competition to Go Getter.
c)
The initial success of the café
is based on the success of shopping mall itself. If the mall fails all the
shops in the mall will also fail.
d)
Economic downturn and
recessionary trends may reduce consumer spending on such luxuries as a café.
·
Appendix 1 –
Draft Menu
Marketing Strategies
Apart from an overall organisational
strategy regarding menu options, aesthetics and promoting theUSPs, the café
also has a marketing action plan to ensure its long term success and
profitability.
Marketing Action Plan
This plan will consist of three major
heads:
1.
Local population- The café
management will advertise in the dining section of the local newspapers as well
as distribute discount and promotional coupons to encourage repeated footfalls
from the local population.
2.
Tourists- Menu will be
distributed among lodges and hotels for the consideration of guests in such
establishments. Also, promotion will be done across internet platforms such as
social media and travel sites to come in to the notice of travellers.
3.
Others- Other parts of the
marketing action plan will be suitable pricing and using social media to gather
following for the café.
Monitoring and Evaluation plan
The success and growth of the marketing
plan will be monitored and evaluated regularly by certain measurable approaches
such as:
1.
Keeping track of number of
active followers on social media platforms,
2.
Affect on sales after a
particular marketing endeavour has been executed and,
3.
Obtaining feedback about the
marketing effort from sections of the target market.
Organisational Plan
The organisational plan of Go Getter will
consist of the following three heads:
1.
Facility and equipment
The café will have a seating capacity of 30
patrons at a time. The monthly rent is $1000 approximately and a lease of 10
years is available. The facility also has two washrooms, a storage space and a
kitchen space of 10*15 feet. Cost of furnishing and renovation will be $4000
approx.
The kitchen equipment will include an oven,
coffee maker, dishwasher and freezer. This equipment can be bought from the
used good markets and after driving a bargain total cost of appliances will be
approximately $25000.
2.
Human Resources
The staff at the café will be a bill desk
clerk, two waitresses and a cook (with a part time back up cook). The cook and
the bill desk clerk will report directly to the owner; while the waitresses
report to the bill desk clerk and coordinate orders between the customers and
the cook.
All employees will be periodically briefed
by the cooks on the menu options. Also employees will be cross trained in all
disciplines of the business to handle contingency situations.
3.
Supplies
The café management will procure all raw
materials from local market. However, items such as bakeries, confectionaries,
coffee powder and the like can be procured from reliable vendors rather than
engaging resources on production of such goods.
Finance Plan
The finance plan of the café will entail
three stages:
1.
Start up costs- This will
involve financing all launching costs pertaining to establishing of facility,
purchasing equipment and pre launch promotion. This will be provided from the
owner’s own savings brought forward as capital.
2.
Daily operational costs- part
of this cost will be financed from start up capital until business breaks even.
Post that the daily operational cost will be met from revenue.
3.
Growth Fund- Once the business
establishes foothold, the business owner can think on lines of expanding
operations in terms of increasing facility size or launching operations in
other areas. This can be done by obtaining financing from venture capitalists,
obtaining loans from government institutions and banks or, by partnering with
organisations having enough resources, capabilities and common vision to meet
the needs of Go Getter’s growth.
·
Appendix 2-
revenue projection, cost and expenses, cash flow statement and income statements.
Additional Questions
1.
Leadership style
The café management will follow a democratic
leadership style, to promote an inclusive decision making and implementation process.
Bringing in diverse point of views and observations to the table promoting a
sound organisational and policy structure; as well as ensuring employee’s
willing participation by providing a sense of ownership to all individuals
involved.
2.
Monitoring and evaluating
progress
The monitoring process will be by the way
of keen observation of intangibles and immeasurable such as improvement in
employee participation or strengthening of relationships with customers.
However, quantifiable checks such as sales records and books of accounts will
be helpful in monitoring growth. Suitable measures can be implemented once deviations
are derived from evaluation of progress made over certain intervals.
3.
Strategic alliance
The business can seek to partner with
institutions which are already established in similar trade but their scope
does not come in conflict with that of the café. For example, Go Getter can
partner with certain real estate developers or hotel groups to establish an
outlet in the properties owned by such organisations.
Conclusion
The report has made an attempt to examine
the feasibility of a business idea of opening up a café in a shopping
mall/centre. A rough draft of the structure of the business has been
established by way of observation, analysing facts and extrapolating figures to
understand the dynamics of the café business.
The report promises hope for a success in
the field should due care is taken to mitigate risks and by understanding the
trends and factors influencing this proposed enterprise.
References
2.
http://www.bplans.com/cafe_bistro_coffeehouse_business_plan/executive_summary_fc.php#.UUVPxKVkQs8
Appendix 1
Drinks
1.
Flat White double shot of
espresso served with
2.
steamed milk and a thin layer
of froth
3.
Long Black two shots of
espresso served with a dash of hot water
4.
Iced Chocolate ice cream, milk
and homemade chocolate sauce
5.
whipped cream, Iced Coffee ice
cream, espresso and milk
6.
Iced Coffee drip coffee brewed
at double strength
7.
Iced Latte two shots of
espresso served with cold milk over ice
8.
Iced Chai served with cold milk
over ice, nutmeg and cinnamon
9.
Iced Mocha two shots of
espresso, homemade chocolate sauce, milk over ice
10.
Chocolate Milk homemade
chocolate sauce with cold milk
11.
Orangina
12.
Spring Water
13.
Perrier
14.
Coke/Diet Coke
15.
Stewarts Root Beer
16.
Root Beer Float
17.
Blue Water Coffee - Smoky
Cafe
18.
Espresso Belaroma, Manly Vale,
Sydney
19.
Espresso con Panna espresso
served with whipped cream
20.
Macchiato espresso served with
a dollop of froth
21.
Cafe Latte two shots of
espresso, steamed milk with a thin layer
of froth
22.
Cappuccino two shots of
espresso, steamed milk with lots of froth
Snacks/ Breakfast
1.
Egg & Cheese Roll – fried
eggs, cheddar cheese on a long roll
• w/bacon
• extra bacon
• turkey bacon
2.
Egg, Ham & Brie Sandwich –
Over medium egg, ham, tomato and
avocado served on honey wheat bread
• served on croissant
3.
Brekkie Platter – 3 eggs
(sunny, scrambled, hard or over-easy), bacon,
with honey wheat, brioche, or country white
toast
• w/turkey bacon
4.
Egg & Cheese Croissant
• w/ bacon
• w/ ham
• w/ turkey bacon
5.
Ham & Cheese Croissant
6.
Sweet Potato Fries – served
with sour cream and sweet chili sauce
7.
Hand Cut Potato Chip Fries
8.
Bagel with Cream Cheese
• w/ dill cream cheese
• w/ tomato
• w/ smoked salmon
• w/ butter
• w/ Vegemite
9.
Grilled Cheese
• w/ tomato
• w/ bacon
• w/ green apple and bacon
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