RUNNING HEAD: Business Plan

Business Plan: South Central Java Laura Ewoldt The University of Southern Mississippi

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Table of Contents Executive Summary Business Description and Vision Potential Market Products and Services offered Organization and Management Marketing and Sales Strategy Costs Appendix 3 3 3 4 5 5 5 7

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Executive Summary The proposed business is South Central Java, which will be a specialty coffee and bakery shop inside South Central Regional Medical Center in Laurel, Mississippi. The coffee shop will serve made to order coffee drinks with a variety of types and flavor options. South Central Java will also offer a variety of pastries and dessert options. South Central Java will be located inside the South Central Regional Medical Center dining room. Business Description and Vision The mission of South Central Java is to serve high quality coffee to hospital employees and guests with a high rate of satisfaction so that employees who have a cup of specialty coffee in the mornings will have a great morning that will lead to a great day. South Central Javas slogan will be, great mornings, great days. The vision of South Central Java is to continue to grow the products and services that are offered based on customer preferences and to serve the hospital employees for years to come. Employees at South Central Regional Medical Center need to perform at their very best when interacting with patients. In order to do so, they must comfortable and attentive. Specialty coffee provided by South Central Java will allow employees to increase their work satisfaction and be prepared to provide quality service to each patient that they see. Potential Market The main customers of South Central Java will be the employees of South Central Regional Medical Center, which includes doctors, nurses, dietitians, food service workers, and many more. In addition, the products will be available to guests of patients in the hospital. Currently, employees can purchase drip coffee in the dining room, but specialty coffee is not

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available at the hospital. Because specialty coffee is not available in the hospital, the only competition will be other coffee shops that are located in Laurel, Mississippi. One weakness of opening a specialty coffee shop is the price of drinks will be higher than drip coffee that is already offered in the dining room; however, the drinks will offer a unique treat that should be worth the extra cost. Products and Services offered Specialty drinks that will be offered include lattes, cappuccinos, mochas, Americanos, and frappes. Drinks will be offered in a small, medium, or large. The small will be 12 ounces. The medium will be 16 ounces, and the large will be 20 ounces. The small will cost $2.50. The medium will cost $3.00, and the large will cost $3.50. A latte is a drink with a shot of espresso with mostly steamed milk and topped with milk foam. A cappuccino is a drink that is a sot of espresso with equal parts steamed milk and milk foam and topped with chocolate powder. A mocha is a drink with a shot of espresso, a small amount of hot chocolate and filled with steamed milk. An Americano is a drink with espresso and hot water. Finally, a frappe is a frozen, blended drink with a shot of espresso and milk. All of the drinks have the option to add flavored syrup for some added sweetness. The flavored syrup options include caramel, chocolate, vanilla, white chocolate, and hazelnut. The small drinks will come with two pumps of syrup. The medium will come with three, and the large will come with four. Any extra shots beyond those that come with each size will cost an extra $0.50. In addition to drinks, South Central Java will also offer pastries and desserts. The pastries and desserts that the dining room already offers will be offered through South Central Java as a way to market the items along with the coffee. It will also provide a place to display the pastries

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and desserts together. Pastries and desserts that are offered include various forms of doughnuts, cakes, pies, and cookies. Pastries and desserts will cost $1 each. Organization and Management South Central Java will be a part of the already established foodservice system. It will be located inside the dining room. The customers will have their coffee made for them and then pay for it at the cash registers, which are already placed so that customers can also purchase hot breakfast foods or other items if desired. The coffee shop will require one additional employee who would be trained to make each of the coffee drinks as well as help out in the dining room when needed. The employee will be under supervision of the dining room director and will be a part of the dining room team. Although the coffee shop will have its own name, it will actually be a part of the dining room. The name will serve to get customers and employees excited about introducing a new concept. Marketing and Sales Strategy The main focus of the marketing strategy will focus on employees of the hospital, as they are the target market for the new business. The marketing strategy will aim to get the employees excited and expectant of the new concept. The marketing department will help tweak the strategy and disseminate the information. Flyers will be created that will be hung in the hospital and sent in a hospital wide email that detail the new coffee shop and when it will open as well as some of the items it will offer (see appendix). The goal of the coffee shop upon opening will be to sell at least 100 drinks per day and at least 100 pastries or desserts per day. Costs Because South Central Java will be a part of the foodservice system, the startup costs are smaller than an individual business starting out. Requirements will include the purchase of new

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equipment and supplies as well as two additional employees. Equipment to be purchased includes an espresso machine, a refrigerator to hold milk and other cold items, and a threecompartment sink for dishwashing. An espresso machine can cost $600 or more. South Central Java will require one that will cost around $1000 in order to have a high quality machine that will produce that amount of coffee that will be needed. A one door, glass door refrigerator will cost approximately $1500 and will allow the storage of cold items as well as allow customers to see any desserts or pastries that are kept in the refrigerator. A three-compartment sink will cost approximately $400. The sink will not need to be large, as no large equipment will be washed in the coffee shop. Two new employees will cost the hospital approximately $960 every two weeks with each employee being paid the starting hourly rate of $7.50 and each working 32 hours per week. Supplies for the first month that are needed includes cups, cup sleeves, syrups, stirrers, and cup lids, which will cost approximately $500. A sample income statement for the startup month is located in the appendix.

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Appendix Marketing Flyer

South Central Java

Specialty Coffee Shop
Opening Summer 2014
Enjoy specialty coffee drinks made to order from your very own SCRMC Coffee Shop!

South Central Regional Medical Center

only at

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Income Statement South Central Java Income Statement Month One INCOME Small Drinks 25@$2.50 for 31 days Medium drinks 50 @ $3 for 31 days Large drinks 25 @ $3.50 for 31 days Desserts 100 @ $1 for 31 days Total income EXPENSES Espresso Machine Three compartment sink Refrigerator New employees Supplies Total expenses Net Profit $1,000.00 $400.00 $1,500.00 $1,920.00 $500.00 $5,320.00 $7,080.00 $ $1,937.50 $4,650.00 $2,712.50 $3,100.00 $12,400.00