The Comfort Cafe

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  • Topic: Coffee, Coffeehouse, Expense
  • Pages : 6 (1271 words )
  • Download(s) : 72
  • Published : January 14, 2013
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Objectives
* 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.
Vision
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.
Start-Up
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.

Products
* 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
Drive-Thru
* 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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