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Express Espresso

Express Espresso is a specialty coffee shop that opened in March of 2006. The owner of this specialty coffee is Todd Sylvester. He was raised in Connecticut and he received a bachelor degree from Franciscan University in theology. After graduation, he married and worked several job. In one of these jobs, he was a recording artist of a small Nashville record company. Todd comes from an Entrepreneurial family, and he had wanted to open a business for a number of years. He worked several jobs He first wanted to open a pizza place, but he thought that a pizza restaurant would be too troublesome. He and his wife Angele decided to open a coffee shop because they thought it would be a great family business. They also saw the business as a place where they could teach their kids business and management skill. Express Espresso is in the specialty coffee industry. The majority of the people making large profits are either chains or large distributors. The largest and most well known specialty coffee chain is "Starbucks". They made more than $6.3 billion in revenues in 2005. Another specialty coffee business is "Peet's Coffee & Tea". This is one of the oldest coffee shops, having opened the first store in 1966. In 2006, they had 111 stores, with revenues of $175 million. This is an industry that began somewhere around the 1970's. Then by 1979, there were 250 specialty coffee shops. That number has risen to nearly 15,000 shops by 2002, with retail sales over $10 billion by 2005. The specialty coffee industry serves a number of different beverages. The leading beverages were espresso-based beverages, followed by drip-brewed coffee beverages, and cold and iced coffees were the third most popular drinks in 2004. Express Espresso is located in Mobile Alabama. It is situated across the street from the University of South Alabama (South). The business draws from the student body of 13,000 student and the faculty and staff. The restaurant has only been open for 12 and Todd has tried to follow his vision and has set the coffee shop up as a place where customers can find comfort. He has set the store up to be comfortable a relaxing, he even lets student use the Wi-Fi and do homework while also letting teachers grade papers there without purchasing anything. Express Espresso also has some problems and challenges to overcome. The first problem that they are facing is increased competition from coffee shops that are being planned or that are already being built. Next are the challenges that Express Espresso must overcome. The coffee shop has only been open for 12 weeks, and even with the increased competition, Todd wants to open another location in the downtown area. This could be complicated to do with the new coffee shops in tow and they do not know how all the new coffee shops will affect the original Express Espresso. SITUATION ANALYSIS

TARGET MARKET
The target market for the original Express Espresso is the students, faculty, and staff at the University of South Alabama. These are non-traditional students, who are older than student at most traditional universities. Todd believes these customers to have an income of about $45,000. The target market for the proposed location in midtown would be young professional who worked in mid-town. The income level of these professional is not known. PRODUCT

Todd wanted to keep the products pure, or traditional, so the coffee shop does not sell regular drip coffee. The menu consists of hot drinks, iced drinks, iced blended drinks. The hot drinks are lattes, mochas, cappuccino, espresso, hot chocolate, and Americano. The iced drinks are lattes, mocha, and teas. The iced blended drinks are Frappes, and smoothies. All these drinks come in small, medium, and large sizes. To add more sales the store also has teas, pastries, T-shirts, and coffee mugs. PRICE

When it was time to set a price for his products Todd researched the prices that the other coffee shops were charging. He...
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