The Comfort Cafe

Topics: Coffee, Coffeehouse, Expense Pages: 6 (1271 words) Published: January 14, 2013
* Thirteen Drive-thru locations and four fully booked Mobile Cafes by the end of the third year. * Gross Margin of 45% or more.
* Net After-tax Profit above 15% of Sales.
To be the preferred destination of beverage drinkers. Mission
* Provide customers the finest quality beverage in the most efficient time. * Provide community support through customer involvement. * Operate and grow at a profitable rate through sound economic decisions. Company Ownership

* Limited Liability Corporation.
* Initial investment of $ 425000.
* Initial Public Offering or Private Offering.
The majority of these funds will be used to build the first facility, pay deposits, and provide capital for six months of operating expenses, initial inventory and other one-time expenses. The Daily Perc anticipates the need for operating capital for the first few months of operation.

Company Locations and Facilities
The demographic and physical requirements for a Drive-thru location are: * Traffic of 40,000+ on store side.
* Visible from roadway.
* Easy entry with light if less than 30,000 cars.
* Established retail shops in area.

* Specialty Coffees & Custom blended Teas
* Select Domestic Soft drinks & Italian Sodas
* Fresh baked Pastries & Other confections
* Seasonal additions
- Hot apple cider (Fall)
- Hot Chocolate (Winter)
- Frozen coffee (Summer)

Competitive Comparison
Primary competition will come from three sources:
* National coffee houses such as Starbucks and Panera
* Locally owned and operated cafes.
* Fast food chains and convenience stores.
Two things will make TCC stand out from all its competitors * Provide products in the most convenient and efficient way available--either at one of the two-sided Drive-thru shops, or at one of the Mobile Cafes. * Significant benefit to the community through a possible 7.5% contribution to customer-identified charities, schools, or other institutions.

Market Analysis
Focus on two markets
-- Daily Commuter
-- Captive Consumer
Drive-thru -- > Daily Commuters
Mobile Café -- > Captive Consumers

Mobile Cafe
* 2,582 venues
* Captive Consumer potential of 2,582,000
* Approximate 2,500,000 commuters, visitors, vacationers in Metropolitian Area

* In addition - 1700 Corporate facilities

Market Trends
* Need for unique taste & customized coffee
* Time constraints of modern customers
* Sub-standard beverage sold
* High price

Market Growth & Industry Analysis
* Starbucks achieved $2.2 billion in sales with 3000 outlets * Anticipating $6 billion in revenue with 7000 outlets.
* International Brands like Folgers Maxwell house Safari reported higher sales and greater profits * 2.5 million commuters – 50% coffee drinkers
* Growth rate of 6% per year
Market Needs
* Busy Schedule
* Desire for quality
* Disposable Income
Buying Patterns
* National specialty beverage chains/ local coffee houses -- the "experience" of the coffee house. It is a relaxing, slow paced environment. * Fast food restaurants/Convenience Stores -- time is more valuable than good taste.

Marketing Strategy
* Drive-thru facilities in locations of very high visibility and great ease of access. * Low cost advertising/promotion campaign (drive-time radio). * Build relationships with schools, charities and corporations (word of mouth). * Media

Positioning Statement
For busy, mobile people whose time is already at a premium, but desire a refreshing, high quality beverage or baked item while commuting to or from work or school. Pricing Strategy
TCC pricing will be comparable to the competition, but with the value-added feature of immediate, drive-thru service and convenience. Sales...
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