Feasibility Study of a Coffee Shop

Topics: Coffee, Espresso, Coffee preparation Pages: 14 (4027 words) Published: May 8, 2013
Executive summary
1.1 Objectives
1.2 Keys to Success
1.3 Mission
Company Summary
2.1 Company Ownership
2.2 Start-up Summary
2.3 Company Locations and Facilities
3.1 Product Description
3.2 Sales Literature
Market Analysis Summary
4.1 Market Segmentation
4.2 Target Market Segment Strategy
4.2.1 Market Needs
4.3 Industry Analysis
4.3.1 Competition and Buying Patterns
Strategy and Implementation Summary
5.1 Competitive Edge
5.2 Sales Strategy
5.2.1 Sales Forecast

Management Summary
6.1 Management Team
6.2 Management Team Gaps
6.3 Personnel Plan
Financial Plan
7.1 Important Assumptions
7.2 Projected Cash Flow
7.3 Projected Profit and Loss
7.4 Projected Balance Sheet

Executive Summary
Espresso room coffee bar is determined to become a daily necessity for local coffee addicts, a place to dream of as you try to escape the daily stresses of life and just a comfortable place to meet your friends or to read a book, all in one. With the growing demand for high-quality gourmet coffee and great service, Espresso room will capitalize on its proximity to the Xavier’s college, Mumbai campus to build a core group of repeat customers. Espresso room will offer its customers the best prepared coffee in the area that will be complimented with pastries, as well as free books that its patrons can read to enjoy their visit. The company will operate a 2,300 square foot coffee bar within a walking distance from the Xavier’s college, Mumbai. The owners have secured this location through a three-year lease with an option for extending. They have also provided ₹ 7,560,000.00 of the required ₹ 9,180,000.00 start-up funds. The remaining capital will be obtained State Bank of India loans. The company is expected to grow sales revenue from ₹ 31,536,000.00 in financial year 2014 to ₹38,124,000.00 in year three. As Espresso room will strive to maintain a 65% gross profit margin and reasonable operating expenses, it will see net profits grow from ₹ 5,400,000.00 to ₹ 6,750,000.00 during the same period.

1.1 Objectives
Espresso room’s objectives for the first year of operations are: * Become selected as the "Best New Coffee Bar in the area" by the local restaurant guide. * Turn in profits from the first month of operations.

* Maintain a 65% gross margin.

1.2 Keys to Success
The keys to success will be:
* Store design that will be both visually attractive to customers, and designed for fast and efficient operations. * Employee training to insure the best coffee preparation techniques. * Marketing strategies aimed to build a solid base of loyal customers, as well as maximizing the sales of high margin products, such as espresso drinks.

1.3 Mission
Espresso room will make its best effort to create a unique place where customers can socialize with each other in a comfortable and relaxing environment while enjoying the best brewed coffee or espresso and pastries in town. We will be in the business of helping our customers to relieve their daily stresses by providing piece of mind through great ambience, convenient location, friendly customer service, and products of consistently high quality. Espresso room will invest its profits to increase the employee satisfaction while providing stable return to its shareholders.

Company Summary
Espresso room, an XYZ limited liability company, sells coffee, other beverages and snacks in its 2,300 square feet premium coffee bar located near the Xavier’s college, Mumbai campus.  Espresso room’s major investors are Dishit Sugand and Juhie Sugand who cumulatively own over 70% of the company. The start-up loss of the company is assumed in the amount of ₹ 1,494,720.00. 2.1 Company Ownership

Espresso room is registered as a Limited Liability Corporation in the state of Maharashtra. Dishit Sugand owns 51% of the company. His sister, Juhie Sugand, as well as Jayesh Sugand and Mohnish Sugand hold minority stakes in Espresso room, LLC 2.2 Start-up...
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