The cupcake shop (TCS) is a specialty beverage and caupcake retailer. TCS uses a system that is different from conventional beverage and food service industry providers. TCS will provide hot and cold beverages and specialty cupcakes in a convenient, original and time-efficient way. TCS provides its customers the choice of acustom-blended espresso drink, freshly brewed coffee, or other beverage and specialty fresh cupcakes. TCS is offering a high-quality option to the fast-food, gas station, or institutional coffee. The Cupcake shop offers its clients the finest hot and cold beverages, specializing in specialty cupcakes, and other fresh-baked custom pastries. In addition, TCS will offer soft drinks, fresh-specialty coffee and other confections. The Cupcake Shop will focus on two markets:
The Daily Commuter- someone traveling to/from work, out shopping, delivering goods or services, or tourist visiting the mall. The Captive Consumer- someone who is in a restricted environment that does not allow convenient departure and return while searching for refreshments, or where refreshments stands are an integral part of the environment. The Cupcake Shop will penetrate the Mall consumers and captive consumer markets by deploying Kiosk facilities and Mobile Cafes in the most logical and accessible locations. In addition to providing a quality product and an extensive menu of delicious items, to ensure customer awareness and loyalty, as well as good publicity coverage and media support, we will be donating up to 1.5% of revenue to local charities. The Cupcake Shop financial picture is quite promising. Since TCS is operating a cash business, the initial cost is significantly less than many start-ups these days. The process is labor intensive and TCS recognizes that a higher level of talent is required in order to succeed in this challenge industry. The financial investment in its pastry chef will be one of the greatest differentiators between it and TCS's competition. For the purpose of this pro-forma plan, the capital expenditures of facilities and equipment are purchase thru initial capital or lease. There will be minimum inventory on hand so as to keep the product fresh and to take advantage of price drops, when and if they should occur. The Cupcake Shop anticipates the initial combination of investments and short term financing of $112,000 to carry it without the need for any additional equity or debt investment, beyond the purchase of equipment or facilities. This will mean growing a bit more slowly than might be otherwise possible, but it will be a solid, financially-sound growth based on customer request and product demand. The Cupcake Shop chooses to become an original and different version of conventional cofee shops such as Starbucks and Tim Hortons. The balance sheet estimates a Net Worth of $1,075,969 for the third year, cash balances of $773,623 and earnings of $860,428, based on 13 Drive-thrus and four Mobile Cafes, it is not unrealistic to put a market value of between $4 and $9 million on the company. At present, such companies are trading in multiples of four to 10 times earnings, and it is simple mathematics to multiply the success of TDP by the number of major and smaller metropolitan areas between the mountain ranges of the United States. 1.1 Objectives
The Cupcake Shop has established three firm objectives it wishes to achieve in the next three years: 1. Three Kiosk/Mobile locations by the end of the third year. 2. Gross Margin of 45% or more.
3. Net After-tax Profit above 15% of Sales.
The cupcake shop Mission is three-fold, with each being as integral to our success as the next. • Product Mission - Provide customers the finest quality cupcakes and pastries in the most efficient time. • Community Mission - Provide community support through customer involvement. • Economic Mission - Operate and grow at a profitable rate through sound economic decisions....