Time Capsule

Cafeteria and workspace

Prepared for :
PhD Truong Minh Chuong

Entrepreneurship (IM1021)
20
286 Ly Thuong Kiet St., Ho Chi MInh City, ST
22
www.timecapsule.com
 Time Capsule School of Industrial Management, SIM, HCMUT

About Us
Time Capsule - Cafeteria and workspace aims to be a neighborhood store-front catering to
local professionals, students from local universities, and retired individuals that enjoy a
friendly, welcoming atmosphere. With their simple yet sophisticated menu, Time Capsule
prides itself in pouring up a delicious cup of coffee while providing extraordinary customer
service.
Their business model is easily adaptable into most locations as they serve up coffee and
wonderful place for consumers of all budgets and backgrounds.

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286 Ly Thuong Kiet St., Ho Chi MInh City, ST

www.timecapsule.com
Time Capsule School of Industrial Management, SIM, HCMUT

Tabl of content

Tabl of content ................................................................................................................................................. 3

Executive summary ..................................................................................................................................... 4
Overview ......................................................................................................................................................... 4
Mission statement ..................................................................................................................................... 5
Opportunity ...................................................................................................................................................6
Market ...............................................................................................................................................................6
Differentiation ..............................................................................................................................................6
Description of Products / Services .................................................................................................. 7
Company Overview ....................................................................................................................................... 7
Legal Description ....................................................................................................................................... 7
Future Goals ..................................................................................................................................................8
Exit strategy ...................................................................................................................................................8
Marketing and Sales plan ..........................................................................................................................8
Marketing Plan ............................................................................................................................................8
Sales plan ........................................................................................................................................................9
Key to success ..............................................................................................................................................9
Competitive analysis .................................................................................................................................. 10
Current Alternatives ............................................................................................................................... 10
Management team ...................................................................................................................................... 11
Key Assumption ............................................................................................................................................ 12
Financial Projection .................................................................................................................................... 12
Income statement................................................................................................................................... 12
Cash flow statement .............................................................................................................................. 13
Balance sheet ............................................................................................................................................. 14
Milestones ......................................................................................................................................................... 14
Exit strategy ..................................................................................................................................................... 15

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Time Capsule School of Industrial Management, SIM, HCMUT

Executive summary
Overview

We are choosing the F & B field to start our business, more detail is to
start a workspace and cafeteria chain named Time Capsule. But first,
we will open just one coffee shop to collect more data and check the
possibility of opening a coffee chain. Surrounding our school does not
have enough coffee shops or working space for students to stay in. We
figure that it is such a good chance to start a coffee shop combined
with a coworking space for students and employees.
The start-up expenses of 250.000.000 VNĐ include:

● Legal expenses for obtaining licenses and permits as well as the

accounting services totaling 30.000.000 VNĐ.

● Marketing promotion expenses for the grand opening of Time

Capsule in the amount of 30.000.000 VNĐ and as well as flyers
printing (500 flyers and vouchers at 3.000 VNĐ per copy) for the total
amount of 31.500.000VNĐ.
● Consultants fees of 50.000.000 VNĐ paid to setup services
(vietblend.vn) to help set up the coffee bar and training barista.
● Insurance (general liability, workers’ compensation, and property
casualty) coverage at a total premium of 30.000.000 VNĐ.
● Prepaid rent expenses for one month in the total amount of
80.000.000 VNĐ.
● Premises remodeling and decorating in the amount of 80.000.000
VNĐ.

These previous expenses will be needed before the launch. Moreover, the
required equipment and start-up assets will take:

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Time Capsule School of Industrial Management, SIM, HCMUT

● Cash in the bank is a total amount of 80.000.000 VNĐ, which includes

enough to cover the salary for the employees and managers in the
first 2 months, and cash reserves, which is about 300.000.000 VNĐ for
operation in the first 3 months.

● Start-up inventory of 50.000.000 VNĐ, which includes:

○ Coffee beans (6 regular brands and 3 decaffeinated brands) –
20.000.000 VNĐ
○ Coffee filters, baked goods, salads, sandwiches, tea, beverages,
etc. – 15.000.000 VNĐ
○ Retail supplies (napkins, coffee bags, cleaning, etc.) – 5.000.000
VNĐ
○ Office supplies for customers – 10.000.000 VNĐ
● Equipment for the total amount of 225.000.000 VNĐ:
○ Espresso machine – 50.000.000 VNĐ
○ Coffee maker – 1.000.000 VNĐ
○ Coffee grinder – 5.000.000 VNĐ
○ Food service equipment (microwave, toasters, dishwasher,
refrigerator, blender, etc.) – 100.000.000 VNĐ
○ Counter area equipment (counter top, sink, ice machine, etc.) –
20.000.000 VNĐ
○ Serving area equipment (plates, glasses, flatware) – 15.000.000
VNĐ
○ Other miscellaneous expenses – 10.000.000 VNĐ

Mission statement

We notice that the area surrounding our school does not have enough
workspace or cafeteria especially for working and studying purposes. The F
& B field, especially coffee shops, has a huge potential to make a profit. Time
Capsule will focus its marketing activities on reaching the University

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Time Capsule School of Industrial Management, SIM, HCMUT

students and faculty, people working in offices located close to the coffee
bar, and sophisticated teenagers.
Opportunity

Our market research shows that these are the customer groups that are
most likely to buy quality coffee products at an acceptable price. They also
want to have a place to study or work so there will be an option of charging
for staying for a long time. Since high-quality coffee consumption and
coworking space are universal across different income categories and
mostly depend on the level of higher education, proximity to the Ho Chi
Minh city University of Technology campus will provide access to the
targeted customer audience.
Market

People near the Ho Chi Minh City University of Technology need not just
coffee and tea, or pastries and snacks, but also a place to meet comfortably,
have a small or large meeting, or just sit quietly, work, and read. That is
available now near the University of campus, but too crowded too often, and
not the right combination of factors for everybody. So it is already a huge
and mature market. Moreover, we do not have to educate the customers.
The Time Capsule will primarily target the following customer profile:
● Bank and hospital employees. We have acquired numerous banks,
and hospitals, and their salary ranges are well over 10.000.000 VNĐ.
The primary customers live and work in those areas.
● University students: The two locations have become emerging hot
spots for local university students to reside and the neighborhoods
are techy and modern.
● Local residents: There are numerous other business professionals that
work and reside in those areas. There are law offices, stadiums, clinics,
post offices, and retail that are within walking distance.

Differentiation

Great coffee, pastries, additional options for tea, etc, a very welcoming
atmosphere, good wireless, desk space, comfortable chairs and tables, good

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Time Capsule School of Industrial Management, SIM, HCMUT

pastries, and a location close to the university campus. The waiters will be
trained carefully and create a nice atmosphere, serve the customers well,
and attach the customers to the shop. We can see that our advantages
which were created are just temporary so we must try our best to maintain
the quality of the shop. Moreover the updates or changing not only can
make the old customers interested in but also attract new customers to our
products. By that, we can protect our income or expand if in the nearest
future.
Description of Products / Services

Time Capsule workspace and cafeteria will try our best to create a unique
place where customers can comfortably work, study or even socialize with
others while enjoying the relaxing environment and trying the high-quality
products. We will be in the business of providing spaces and places for
customers to work, study, and organize a meeting combined with some
high-quality products such as drinks, and pantries. Most of our income will
come from time charging, for example, 40.000 VNĐ/ 3 hours/ customer. By
that, we can solve the problems of customers spending too much time in
the coffee shop with just one small drink.

We will invest most of our profit into stationery for customer usage, improve
employee satisfaction, and stable the operating system. The time capsule
will also provide meeting space or event space for 2 - 30 people. There are
also weekly and monthly package offers to the customers. All of these rooms
will have lots of utilities such as projectors, marker boards, presentation
screens, etc…

Company Overview
Legal Description

Time Capsule is determined to become the best workspace and cafeteria in

the local area, the ideal place to host a meeting, a necessity for studying, and
just a comfortable place to meet your friends. We can see that it was pretty
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Time Capsule School of Industrial Management, SIM, HCMUT

hard to find an ideal place to study near our school or to host a small
meeting with our clubs. Our team came up with this idea which can solve
most of the students' problems.
Future Goals

Our business idea is heading to be the best workspace brand in the city in
the next 3 years, providing the best service for every student or employee.
But firstly, in the first year, we need to recover the amount of money which
was invented before launching and opening 1 to 2 more workspaces and
cafeterias. Furthermore, we must maintain our service quality, and hold all
the managers and core team for further development. Because of all of this,
we very need some investors to invest their money or their experience to
build up our brand and make it develop rapidly.
Exit strategy

We can see that our company can grow very fast in the early stages.
However, to succeed in long-term business, we need your cooperation for a
long time period like at least 5 years. After that, you can exit easily with the
ideal interest for your investment or become part of our company. A
management buyout can be a good idea for both investors and founders if
we can give each other some huge benefits.

Marketing and Sales plan

Marketing Plan

The Time Capsule will position itself as a unique coffee bar where its visitors
can not only enjoy high-quality drinks but also feel very comfortable
spending time. A comfortable sofa, chairs, ideal tables, and a logical
arrangement can satisfy any type of teenager, student, or employer.

In order to build up its client base, Time Capsule will use some strategic
banners and fliers during the launch period, utilize customer referrals and

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Time Capsule School of Industrial Management, SIM, HCMUT

cross-promotions with other businesses in the community from time to

time, and loyalty programs that work with android and IOS and other
mobile phones, which is the preference of our market.

Our main thrust will be getting people to know, like, and trust us with
content and engagement on Facebook, Instagram, Snapchat, and Twitter.
We intend to maintain social media presences that are light on self-serving
promotional quasi-advertising content, and heavy on community
participation, content, and engagement.
Sales plan

Time Capsule baristas will handle the sales transactions. To speed up the
customer service, at least two employees will be servicing clients–while one
employee will be preparing the customer’s order, the other one will be
taking care of the sales transaction. All sales data logged on the
computerized point-of-sale terminal will be later analyzed for marketing
purposes. One employee should take his eyes on the customers while they
are spending time and help them immediately when they need it.

We will offer them some time packages or meeting room rent. For that, we
can expand our income as well as our profit. Organizing and decorating our
workspaces to their personal needs for different purposes.

With individual customers, a time package - 39.000 VNĐ/3 hours/person will

be offered so we can solve the problems if they spend too much time in our
shop using our resources.

Key to success

The keys to success will be:

● Store design that will be both visually attractive to customers, and

designed for fast and efficient operations.

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Time Capsule School of Industrial Management, SIM, HCMUT

● Some private rooms will be set up for customer special requirements

● Host some work-shops about technology, study, … for marketing

purposes
● Employee training to ensure the best coffee preparation techniques.
● Marketing strategies aimed to build a solid base of loyal customers, as
well as maximize the sales of high-margin products, such as espresso
drinks.

Competitive analysis
Current Alternatives

Time Capsule’s direct competitors will be other coffee bars located near the
Bach khoa university campus. These include The coffee house, Highland,
Phúc Long, and other Food service establishments that offer coffee.

Phúc Long will definitely be one of the major competitors because of its
strong financial position and established marketing and operational
practices. However, despite Phúc Long’s entrenched market position, many
customers favor smaller, independent establishments that offer cozy
atmospheres and good coffee at affordable prices. The coffee house is a
good example of such competition.

We estimate that The coffee house holds approximately 35% market share
in that neighborhood, Phúc Long appeals to 25% of customers, and other
convenience stores such as Circle K or Family mart have a major percentage
of customers, around 39% because most of them are students. Time Capsule
will position itself as a unique coffee bar that not only offers the best tasting
coffee and pastries but also a professional, ideal, cozy, and comfortable
environment, which established corporate establishments lack. We will
cater to customers’ bodies and minds, which will help us grow our market
share in this competitive market.

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Time Capsule School of Industrial Management, SIM, HCMUT

Management team
A full-time manager will be hired to oversee the daily operations at Time
Capsule. This person’s responsibilities will include managing the staff,
ordering inventory, dealing with suppliers, developing a marketing strategy,
and performing other daily managerial duties. We will carefully consider
whether the candidate has the right experience for this role. A profit-sharing
arrangement for the manager may be considered based on the first-year
operational results.

Other staff must have a good attitude, background, and good outlook to
take responsibility as cashier, barista, … All of these positions have their own
importance and affect a lot to any customer experience. All of these staff
must be well trained and ready for all situations.

Expected salary for each position:

First year Second year Third year

Manager (1) 180.000.000 VNĐ 200.000.000 VNĐ 220.000.000 VNĐ

Baristas (3) 300.000.000 VNĐ 330.000.000 VNĐ 363.000.000 VNĐ

Others employees (2) 192.000.000 VNĐ 220.000.000 VNĐ 242.000.000 VNĐ

Total 672.000.000 VNĐ 750.000.000 VNĐ 825.000.000 VNĐ

- Time Capsule Coffee Shop's main sources of income include its coffee
selection, bakery goods, extra time charging, and conference space
rentals. While still comparable with other coffee shops, the pricing will be
upscale.

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Time Capsule School of Industrial Management, SIM, HCMUT

- The cost drivers include its capacity to scale by selling local Vietnamese
coffee, salaries, and wages that are competitive with the market, and a
small menu that results in low supply costs.

Key Assumption
The key assumptions needed to arrive at the income and cost figures in the
financials are listed in the following table.

Number of customers per day: 115

Average menu item cost: 50.000.000 VND
Average Order per Customer: 60.000.000 VND
Average Time-Spending per Customer: 5 hours
Annual Lease (Per Location): 960.000.000 VND

Financial Projection
Income statement

1st year 2nd year 3rd year

Unit forecast 42 000 units 46 000 units 50 000 units

Revenues

Total 3 000 000 000 VND 3 300 000 000 VND 3 500 000 000 VND
Revenues

Expenses & Cost

Cost of goods 500 000 000 VND 600 000 000 VND 700 000 000 VND
sold

Lease 960 000 000 VND 960 000 000 VND 960 000 000 VND

Marketing 120 000 000 VND 80 000 000 VND 80 000 000 VND

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Time Capsule School of Industrial Management, SIM, HCMUT

Salaries 672 000 000 VND 750 000 000 VND 825 000 000 VND

Utilities 100 000 000 VND 110 000 000 VND 120 000 000 VND

Initial 465 000 000 VND 0 VND 0 VND

Expenditure

Total Expenses 2 817 000 000 VND 2 500 000 000 VND 2 685 000 000 VND
& Cost

Gross sales

2 500 000 000 VND 2 700 000 000 VND 2 800 000 000 VND

Pretax income

183 000 000 VND 800 000 000 VND 815 000 000 VND

Tax

Business- 2 000 000 VND 2 000 000 VND 2 000 000 VND
license tax

VAT 14 640 000 VND 64 000 000 VND 65 200 000 VND

Net Income

166 360 000 VND 734 000 000 VND 747 800 000 VND

Cash flow statement

1st year 2nd year 3rd year

Cash Flow From Operations

Net income 166 360 000 VND 734 000 000 VND 747 800 000 VND

Cash flow from investment

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Time Capsule School of Industrial Management, SIM, HCMUT

Upgrading -100 000 000 VND -120 000 000 VND -150 000 000 VND
equipment

Cash flow from financing

0 VND 0 VND 0 VND

Total cash flow 66 360 000 VND 614 000 000 VND 597 800 000 VND

Balance sheet

1st year 2nd year 3rd year

Assets

Cash 66 360 000 VND 614 000 000 VND 597 800 000 VND

Accounts 0 VND 0 VND 0 VND

receivable

Inventory 50 000 000 VND 80 000 000 VND 100 000 000 VND

Total assets 116 360 000 VND 694 000 000 VND 697 800 000 VND

Liabilities

0 VND 0 VND 0 VND

Milestones
Time Capsule aim to have at least 1 new location in next 12 months. The
following is our milestones needed to obtain our goal.

1/1/2023 Finalize Lease Agreement for Location #2

1/2/2023 Design and Build Out Underway for Location #2

1/3/202X Hire and Train Staff for Location #2

1/6/202X Grand Opening of Location #2

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Time Capsule School of Industrial Management, SIM, HCMUT

1/9/2023 Review Location #2 and finalize Lease Agreement for Location

#3

1/10/2023 Design and Build Out Underway for Location #3

1/3/2024 Hire and Train Staff for Location #3

1/6/2025 Grand Opening of Location #3

Exit strategy
If we can build up our business strong, become well-known and have a good
reputation in local or in the entire city. We could possibly sell it to some
foreign corporation or coffee chain. Trade selling is the most common way
to exit in this traditional business.

If our business can not succeed. Close the business, sell the physical assets,
restore the premises to their original condition and negotiate your way out
of obligations like lease commitments, if you can. With a much-reduced
value for your physical assets and the increased costs associated with
restoring the premises and likely costs associated with breaking a lease, this
exit strategy is not so much about making money but to escape the
situation as debt free as possible.

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