Table of Contents

1. Introduction.................................................................................................................................2
2. Marketing Feasibility..................................................................................................................3
3. Organizational Feasibility...........................................................................................................7
4. Basic Financial Requirements..................................................................................................10
5. Socio-Economic Impact.............................................................................................................11
6. Conclusion..................................................................................................................................12
References..........................................................................................................................................13

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 1. Introduction
According to Pew Research, youngsters have surpassed gen x as the biggest surviving
generation system. Youngsters are more sociable and active than past generations, preferring
to meet up with friends for coffee in chic, public settings, which is boosting the growth of
high-end cafes. According to the statistics, coffee is becoming more popular among people of
all ages. Coffee is consumed more than 600 million cups each day in the United States, with
annual retail sales exceeding $47 billion. As an outcome, Esspressit is concentrating on
providing coffee shops with workstations as a substitute to typical coffee shops with only
seats and tables for meals. Under the cover of a single proprietorship, this system will serve
the working population and students in the United States (IBIS World, 2020). After 2021, the
company will open its doors. We have $140,000 in cash on hand, so the first capital
investment will be $170,000, and we will experience a loss that will gradually decrease as our
coffee gets more well-known in the market.

We will need little money during the start-up period, but if we need more money for
development, we'll be able to get it from a bank, the government, or through partnerships
after the firm is up and running.

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 2. Marketing Feasibility
2.1. Business Environment Analysis & Customer Demographics

Coffee consumption has increased at a constant 2.5 percent per year in the United States
during the previous decade (Buzby & Haley, 2007). This rate is only anticipated to increase
on its current course, with a faster growth rate projected in the next years. Furthermore, the
US has more than 157 million workforces. Most of them work 9 – 5 for a week and it is
making their routines hectic.

Figure 1: (Source: National Coffee Association)

Esspressit is a collaborative endeavor that brings together key stakeholders such as coffee
drinkers and workers to explore and construct the future of work and leisure, starting with
coffee. The United States is a prosperous country with a large population of young
professionals, making it an excellent marketplace for a coffee business like Esspressit Coffee
Shop. Individuals in this neighborhood can spend and thus are inclined to buy on working
leisure, premium coffees, and snacks.

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Since this world's population is shifting toward work, the coffee industry has fully welcomed
the debut of leisure. As a result, a spate of investors is rushing to the work and sit coffee
company, demonstrating that there will be a huge need for leisure work-setting in our culture.
The coffee business includes work and sitting activities, and enterprises in this industry serve
their clients, who are mostly working individuals.

The coffee business has shown constant growth in the five years running up to 2020. The
need for conventional work-setting alternatives was spurred by concerns about the future of
the workforce (Morris, 2019). Additionally, the uncertainty of coffee consumption
fluctuations throughout the world drove the coffee industry to seek alternatives.

During this period, increased worker awareness drove coffee shops to encourage workers to
sit and work, which helped the industry directly. Research and development expenditures are
high because the industry is still in its infancy.

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 2.2. Products Offered

With a work-and-sit service model, Esspressito will cater to the demands of all consumers.
We will provide working individuals and students with a work environment in addition to
coffee to draw the customer's desired attention. With a simple espresso machine, all espresso
will be prepared black, and the chef will fulfill the customer's requests for what customers
wish in their cup. There'll be coffee suggestions on the list to assist clients who are new to the
world of coffee.

2.3. Competition Analysis & Competitive Advantage

When it pertains to sales volume and consumption, the cities of the United States are a pretty
competitive market, with over two dozen different coffee shops in the city of 116,000
inhabitants. Starbucks and Panera Bread will be the major competitors, as both are chain
restaurants with vast resources and well-known brands (Olshan, 2013). But, none of them is
providing work and sit setting for the customers.

2.4. Pricing Strategy and Competitive Pricing

We want to concentrate on specialty coffees such as espresso, cappuccinos, and mochas,

which have significantly better profit margins than normal coffee. We shall not utilize drop
machines to charge a greater premium for normal coffee. However, every cup would be
single-served using a coffee filter, ensuring that each cup is fresh and tasty at all times.

2.5. Advertising and Promotional Strategies

The majority of our advertising will be digital to cut costs and communicate with our target
demographic. We plan to promote our products aggressively using the following strategies:

 Billboards on local campus billboards with posters

 Our cutting-edge website
 Promotions are announced every day on Facebook, Instagram, and Twitter

According to statistics, loyalty cards are extremely beneficial, and Esspressit will drive repeat
business with a custom-designed rewards card.

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 2.6. SWOT Analysis

Strengths Weakness
 Offering work and sit setting to the  The startup cost is higher
working individuals and students.  Less brand equity
 Unique concept  The brand is not renowned
 Owner Operated

Opportunities Threats
 Ability to attract customers  Other cafes
 Ability to appeal to different markets  Uncertain market growth
as well  The rise in the cost of coffee beans
 Ability to expand
 Building brand equity

2.7. Market Research

Our target market will be younger generations and working individuals. Esspressit will be
concentrating all its aspects of its business on the local millennial consumers as a
consequence of the younger generation being called the biggest payers on coffee products
outside the household. This included a huge proportion of web ads, such as those on
Facebook, Instagram, Youtube, and other social media sites. Esspressit will also put a strong
emphasis on staying in touch with clients by establishing an online presence on platforms like
Facebook, Instagram, and Snapchat, as well as maintaining a coffee and coffee-related blog.

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 3. Organizational Feasibility
3.1. Organizational Structure & Chart

3.2. Job Description with Corresponding Salary Appreciation

 General Manager

Job Description: The General manager will be responsible for:

 Managing the coffee shop's day-to-day activities
 Bookkeeping, keeping records, and making deposits are all things that need to be done.
 Customers and staff have problems that need to be solved.
 Supervising the shop's cleanliness and upkeep
 Employee recruitment and training
 Changing the menu to keep the flow of customers going
 Keeping track of inventories, placing orders, and receiving deliveries
Salary: $8,000
 Assistant Manager

Job Description: The Assistant Manager will be responsible for:

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  Establishing workflow protocols based on the General Manager's guidance and overseeing
staff throughout day-to-day duties
 With escalating situations, giving customer support
 Managing a workplace's entire workflow
 Recruiting and training new waiters and baristas
 Establishing workflow protocols based on the General Manager's guidance and overseeing
staff throughout day-to-day duties
Salary: $4,000

 Bookkeepers

Job Description: Bookkeepers will be responsible for:

 Payroll and payment of outside food and supply accounts are responsibilities; time cards
are checked.
 Ensure that workers are documenting their hours according to their schedules and that
financial reporting, general ledger entries, and record payments and adjustments are all
completed every month.
 Payroll and payment of outside food and supply accounts are responsibilities; time cards
are checked.
Salary: $3,600

 Kitchen Manager

Job Description: The kitchen manager will be responsible for:

 Responsible for the general operations of a coffee shop's kitchen, including ordering food,
planning menus, and overseeing personnel to ensure the kitchen department operates
smoothly and conforms with safety laws.
Salary: $4,000

 Servers/Waiters

Job Description: They will be responsible for:

 Serves food and refreshments to customers cheerfully and courteously.
 Provides information to aid in the choosing of meals and beverages.
 Ordered options are presented in a timely and effective manner.
 With a positive attitude, maintains the eating ambiance.
Salary: $2,000

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  Bartender

Job Description: Bartenders will be responsible for:

 Encourages consumers to drink more coffee by enlightening them.
 making and serving a wide range of coffee beverages
 Customers are greeted by assessing their coffee preferences and requirements.
Salary: $2,000

 Miscellaneous

Job Description: Miscellaneous Staff will be responsible for:

 Keeping the workstation and manufacturing floor clean.
 Following the standards and criteria.
 Putting the finishing touches on things and washing utensils.
 Maintenance and operation of machinery and manufacturing line equipment
Salary: $1,000

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 4. Basic Financial Requirements
4.1. Assumptions
The company's owners have contributed enough finances to serve as start-up capital, and
management will strive to maintain a continuous cash flow through attracting repeat
customers. Esspressit's profits are expected to treble in the next 18 months. During the same
time frame, it will seek to maintain a gross margin of 68 percent.

Selling price = 1.5 USD

Growth Demand = 2% each month

Current sales = 6000

4.2. Projected Monthly Sales

Prod Price Dem Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual
Sales
Coffee 1.5 2% 9000 9180 9364 9551 9742 9937 10136 10338 10545 10755 10971 11190 130,000

4.3. Business Expenses & Projected Income Statement

GreenSpread
Projected Annual Income statement
For the year ended 2021 - 2023
 
2021 2022 2023
   
Sales:   $ $ $
Total sale   130,000 166,420 199,667
Cost of goods sold   112,000 126,568 135,866
Gross profit   18,000 39,852 63,800
Operating expenses:  
Salaries   110,080 114,080 116,080
Security charges   12,400 12,400 12,400
Rent   124,000 125,200 126,460
Security Deposit   13,000
Modeling cost   11,500
Furniture   12,640
Crockery 1200
Air conditioners 12,000
Electricity charges 14,200 14,200 14,200
Selling, general, and
1800 1840 1882
marketing
Maintenance 1300 1300 1300

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 Other expenses 11,000 11,000 11,000
Total expenses 325,120 280,020 283,322
Income before income tax -307,120 -240,168 -219,522
Income tax 92,136 72,050 65,856
Net income -214,984 -168,118 -153,696

5. Socio-Economic Impact
5.1. Competitive Position & Business Contribution

Esspressit Coffee Shop's marketing approach is to appeal to the masses and fit and active by
providing high-quality items, excellent service, and ample indoor and outdoor seating. We
want to be the spot where you can join the chat with peers, unwind, and enjoy a delicious cup
of coffee. Students and businessmen will be able to interact and concentrate on education or
work tasks with ease thanks to superfast wifi. Increased consumer demand for functional
seating arrangements, as well as growing leisure concerns, are expected to support the overall
growth of the coffee industry. The fastest-growing segment of the beverage business is
expected to be modern coffee shops (Rotondi, 2020).

A key driver of their adoption is the growing demand for work and sit coffee shops in the
coffee industry. The market is expected to profit from lower prices for important raw
materials, such as coffee beans, which are utilized in the production of coffee varieties in
many nations. Restaurants, activity clubs, and bars are just a few of the businesses that
employ workers and sit structures. Work and sit environments are in high demand in the
activities clubbing business.

According to our consumer surveys, there is significant demand for a high-end coffee shop in
a convenient site that offers wonderful coffee and provides both seating areas and parking
(Wild, 2004). In a beautifully built, pleasant, attractive interior environment, we will provide
table service. Individual small tables for privacy and broader, bench-style tables for bigger
gatherings will make up the interior seating.

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 6. Conclusion
In conclusion, Coffee enthusiasts will flock to Esspressit Coffee Shop. We intend to serve
high-quality coffee and food in a modern, welcoming environment. Our handy location and
outstanding customer service should ensure that we have a continuous stream of return
customers. We plan to appeal to students and young office employees by providing lots of
seating space and great customer service with a stylish ambiance. We are strategically
positioned within reasonable commuting distance of the private university, medical
institutions, and a variety of business buildings.

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References
Buzby, J. C., & Haley, S. (2007). Coffee consumption over the last century. Retrieved
from https://www.ers.usda.gov/amber-waves/2007/june/coffee-consumption-over-the-last-
century/

IBISWorld. (2020). The Retail Market for Coffee Industry in the US. Available at:
https://www.ibisworld.com/united-states/market-research-reports/the-retail-market-for-
coffee-industry/

Morris, J. (2019). Coffee: A global history. London: Reaktion Books Ltd.

Olshan, J. (2013). America’s coffee cup is half full. Retrieved from:

https://www.marketwatch.com/story/americas-coffee-cup-is-half-full-2013-02-20

Rotondi, J. P. (2020). How coffee fueled revolutions—and revolutionary ideas.

Retrieved from: https://www.history.com/news/coffee-houses-revolutions

Wild, A. (2004). Coffee: A dark history. New York: W.W. Norton & Co.

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