Table of Contents

1. OVERVIEW OF “ EXPERIENCE CAFÉ"........................................................................... 4

2. BACKGROUND OF THE PROBLEM..................................................................................5

3. THE PROPOSED SOLUTION..............................................................................................5

3.1 BRIDGING THE GENERATIONAL GAP........................................................................................6

3.2 HOST FOR DIFFERENT CULTURAL EXCHANGES........................................................................7
3.3 SOCIALIZING ARENA FOR EXECUTIVES....................................................................................7
4.EVIDENCE TO JUSTIFY PROBLEM................................................................................................8
4.1 INCREASING DEMAND FOR EXPERIENTIAL VENUES..................................................................8
4.2 SOCIAL ISOLATION AND THE NEED FOR COMMUNITY SPACES..................................................8
4.3 DESIRE FOR TECH-FREE ZONES...............................................................................................9
4.4 MULTICULTURAL INTERACTION...............................................................................................9

5. THE BUSINESS MODEL......................................................................................................... 9

5.1 VALUE CREATION...................................................................................................................10

5.1.1 UNIQUE EXPERIENCE OFFERING.................................................................................................10
5.1.2 DIVERSE ACTIVITIES..................................................................................................................10
5.1.3 COMMUNITY BUILDING...............................................................................................................10
5.2 VALUE DELIVERY:..................................................................................................................11
5.2.1 LOCATION AND ACCESSIBILITY...................................................................................................11
5.2.2 QUALITY SERVICE.......................................................................................................................11
5.2.3 MARKETING AND OUTREACH......................................................................................................12
5.3 VALUE CAPTURE....................................................................................................................12
5.3.1 PRIMARY REVENUE STREAMS.....................................................................................................12
5.3.2 MEMBERSHIP PROGRAMS............................................................................................................12
5.3.3 PREMIUM PRICING STRATEGY.....................................................................................................12
5.3.4 MERCHANDISING.........................................................................................................................13

6. THE MARKET SIZE AND TARGET CUSTOMERS............................................................ 13

6.1. AGE DISTRIBUTION AND DEMOGRAPHIC DIVERSITY.............................................................13

6.1.1. ELDERLY POPULATION...............................................................................................................14
6.1.2. FAMILIES WITH CHILDREN.........................................................................................................14
6.2 ECONOMIC PROSPERITY AND CONSUMER SPENDING..............................................................14
6.2.1. YOUNG ADULTS AND MILLENNIALS:..........................................................................................14
6.3. TOURISM INDUSTRY...............................................................................................................15
6.3.1. TOURISTS...................................................................................................................................15
6.4 URBAN LIFESTYLE AND SOCIAL TRENDS................................................................................15
6.4.1. WORKING PROFESSIONALS.........................................................................................................15

7. THE COMPETITION............................................................................................................. 15

7.1. THEMED RESTAURANTS AND CAFES......................................................................................16

7.2 CULTURAL AND ARTISTIC VENUES.........................................................................................16
7.3. COMMUNITY CENTERS AND SOCIAL CLUBS...........................................................................16
7.4. COFFEE SHOPS AND TRADITIONAL CAFES.............................................................................16

8. PROJECT COST ESTIMATE................................................................................................ 17

8.1 INITIAL SET-UP COSTS:..........................................................................................................17

8.1.1 PROPERTY LEASE/RENTAL..........................................................................................................17
8.1.2 RENOVATION AND THEMED DÉCOR.............................................................................................17
8.1.3 FURNITURE AND EQUIPMENT......................................................................................................18
8.1.4 INITIAL INVENTORY.....................................................................................................................18
8.1.5 PERMITS AND LICENSES..............................................................................................................18
8.1.6. TECHNOLOGY AND POS SYSTEMS.............................................................................................18
8.1.7 INITIAL MARKETING AND BRANDING.........................................................................................18
8.1.8 LEGAL AND PROFESSIONAL FEES................................................................................................18
8.2 OPERATIONAL EXPENSES (MONTHLY)....................................................................................19
8.3 TOTAL FUNDING REQUIREMENT.............................................................................................19

REFERENCE..............................................................................................................................20

APPENDIX................................................................................................................................. 21
 1. Overview of “ Experience Café"

The "Experience Café" is a novel, themed destination that offers a unique blend of cultural,
historical, and social experiences. Designed as a tech-free zone, it aims to bridge generations,
ethnicities, and cultures through interactions in an environment that mimics various eras,
themes and cultures. The café is not just about food and drinks; it's an immersive journey
through time and space, fostering genuine conversations and connections.
This approach effectively transforms the café into a time capsule, offering a journey through
different historical periods and cultural landscapes. The absence of technology encourages
patrons to engage in genuine, face-to-face interactions, fostering a sense of community and
connection often lost in today's digital-dominated world. The café not only serves food and
beverages but also becomes a hub for cultural exchange and learning, with activities and
games inspired by history, art, and global cultures. These interactive elements are designed to
provoke thought, stimulate conversation, and facilitate a deeper understanding and
appreciation of the diverse tapestry of human history and culture. The Experience Café thus
represents a unique blend of culinary and cultural exploration, aiming to create a space where
people can disconnect from their digital lives and reconnect with each other and the rich
narratives of the past.
 2. Background of the Problem

Fig-1
In the context of Singapore, a bustling city-state known for its technological advancement
and cultural diversity, the Experience Café addresses a multifaceted social challenge.
Singapore's unique demographic landscape is marked by a significant generational gap and a
growing number of elderly citizens as in fig-1 experiencing loneliness due to limited social
interactions . In the year 2023 the number of elderly is stated to grow by one in every four
person(Varley, 2022). This problem is further compounded by the younger generation, many
of whom are growing up as single children and, in the absence of siblings, often miss out on
vital life skills that are typically nurtured through early social interactions. Additionally, the
fast-paced lifestyle of Singapore's professionals leaves them with limited opportunities to
socialize and meet new people, leading to a sense of isolation despite living in a densely
populated urban environment (Goh, 2021). Singapore Singapore being a hub for trade ,
commerce and tourism attracts different nationalities with the willingness to explore and
learn different cultures.

3. The Proposed Solution

The Experience Café can be used as a solution to many of the social challenges Singapore is
facing and would face in the future. Singapore saw a record rise of more than 476 suicide
deaths due to mental health related concerns (Karve, 2023).
The Experience Café seeks to bridge these generational and social gaps. For the elderly, it
offers a welcoming space to interact with younger generations, potentially alleviating feelings
of isolation and loneliness. It provides an avenue for them to share their stories, wisdom, and
experiences, enriching the social fabric of the community. For the younger generation and
single-child families, the café serves as a platform to engage in real-life social interactions,
learn essential life skills, and develop empathy and understanding through diverse
interactions.
Moreover, Singapore's position as a melting pot of cultures, hosting residents and expatriates
from various nationalities, presents a unique opportunity for cultural exchange. The
Experience Café can act as a cross-cultural hub where people from different backgrounds
come together, fostering a deeper understanding and appreciation of global cultures. This
aspect is particularly beneficial in a cosmopolitan city like Singapore, where embracing
multiculturalism is key to social harmony(Julínková, 2017).
In essence, the Experience Café in Singapore is not just a business venture; it's a social
enterprise aimed at enhancing community bonds, promoting cultural exchange, and
addressing the challenges posed by the city's unique demographic and social landscape. By
creating a tech-free, interactive environment, the café encourages people from all walks of
life to connect, share, and learn from each other, thereby enriching the communal experience
and addressing critical social needs in a modern urban setting. How the café brings about a
social change can be seen below.

3.1 Bridging The Generational Gap

The Experience Café seeks to bridge these generational and social gaps. For the elderly, it
offers a welcoming space to interact with younger generations, potentially alleviating feelings
of isolation and loneliness. It provides an avenue for them to share their stories, wisdom, and
experiences, enriching the social fabric of the community. For the younger generation and
single-child families, the café serves as a platform to engage in real-life social interactions,
learn essential life skills, and develop empathy and understanding through diverse
interactions.
 Fig-2

3.2 Host for Different Cultural Exchanges

Singapore's position as a melting pot of cultures, hosting residents and expatriates from
various nationalities, presents a unique opportunity for cultural exchange.Fig-2 is a typical
day in café where people of different walks of life share ideas. The Experience Café can act
as a cross-cultural hub where people from different backgrounds come together, fostering a
deeper understanding and appreciation of global cultures. This aspect is particularly
beneficial in a cosmopolitan city like Singapore, where embracing multiculturalism is key to
social harmony.

3.3 Socializing Arena for Executives

The Experience Café presents itself as an ideal sanctuary for busy executives seeking to
unwind and escape the pressures of the corporate world. In this unique setting, professionals
can shed their work personas and immerse themselves in a world rich with historical and
cultural diversity, far removed from the stress of office life. Here, in a tech-free zone, they
find an opportunity to reconnect with simpler pleasures by engaging in genuine
conversations, participating in interactive cultural activities, or simply enjoying a moment of
solitude savouring a cup of artisanal coffee in a 1950s American diner setup, or finding
tranquillity in a Japanese tea room, the Experience Café offers a multitude of environments
conducive to relaxation and rejuvenation. It's not just a café, but a retreat within the city,
where executives can pause, reflect, and engage with others, turning it into a socializing arena
that perfectly balances the art of relaxation with the charm of cultural exploration.

4.Evidence to Justify Problem

The Justification can be proved by empathizing with the problem where the potential
customers identified should be studied. This includes conducting surveys on the necessity of
this venture and their willingness to participate . The Modern trends needs and wants of the
different target groups could be made from general observations , reports , studies conducted
by government organizations and bodies.
To demonstrate that customers will be enthusiastic about the Experience Café and willing to
pay for its offerings, we can draw upon various data sources, reports, and studies that
highlight relevant trends and preferences. Further explanation based on data can be
interpreted as follows.

4.1 Increasing Demand for Experiential Venues

Studies in Singapore have shown a growing consumer preference for experiences over
material goods, especially among younger generations like millennials and Gen Z. More of
the millennials prefer to spend money on a desirable experience or event over buying
something desirable. It is also noted that large number of senior citizens spend quality time
outdoors in large gatherings such as malls and fancy restaurants along with their peer group.
This shows their desire to socialize and willingness to meet at new venues. (Dutta &
Naumov, 2020).

4.2 Social Isolation and the Need for Community Spaces

With the increasing prevalence of social isolation, particularly among the elderly and young
adults, there is a growing need for community spaces. The hospitals and clinics in Singapore
highlight the importance of social interaction for mental and physical health of the senior
citizens and the youth. This is justified by the mental health assessment conducted on routine
visits of aged and young adults(Goh, 2021).

4.3 Desire for Tech-Free Zones

Research indicates a rising awareness of digital fatigue from constant use of mobile phones
and personal computers has paved way to a desire for tech-free spaces. According to several
survey, a significant percentage of people expressed a need for breaks from technology to
improve mental health and interpersonal relationships(Karve, 2023). This has been noted
highly among the cooperate professionals and students who wish to meet spend time in
traditional café to unwind themselves.

4.4 Multicultural Interaction

Singapore's status as a multicultural hub creates a natural interest in cross-cultural

experiences. According to the Singapore Tourism Board, the city-state's multicultural heritage
is one of its key attractions for the high influx of tourist into the country(Overview, n.d.).
Most travellers look for an unique experience of new learnings of cultures and traditions
which these cafes can offers. consumers visiting Singapore are willing to pay a premium for
unique dining experiences that offer more than just food, including themed environments and
interactive spaces(Johnny, 2023).

5. The Business Model

The business model is made from defining the scope to further ideate and come up with
solutions through brainstorming sessions studying smaller similar models of cafés ,
restaurants and theme parks(Rayna & Striukova, 2016).
The business model is essential in showing how value can be created ,delivered and
captured. business model is essential as it serves as a comprehensive blueprint for a
company's operations, strategy, and financial planning. Refer table 1 in the appendix. It
outlines how a business intends to generate revenue, deliver value to customers, and achieve
sustainable growth. This model is crucial for guiding decision-making, managing resources
efficiently, understanding market positioning, and communicating the company's value
proposition to stakeholders.
Essentially, it provides a structured plan for how the business will function and thrive in its
market, making it an indispensable tool for both startups and established businesses aiming
for success and longevity(Rayna & Striukova, 2016).

5.1 Value Creation

The Value would be created for the business by the following activities.

5.1.1 Unique Experience Offering

By providing a tech-free environment filled with culturally and historically themed rooms,
the café creates a unique experience that combines dining, education, and social interaction.
This distinctive setting fosters genuine connections, cultural exchange, and a break from the
digital world. This is especially beneficial to those who wish to detox from technology and
those professionals who are looking for some leisure during their hectic sessions.

5.1.2 Diverse Activities

Offering a range of activities like board games, workshops, and cultural events adds value by
enhancing the customer experience and appealing to various interests. This also builds the
firm's reputation to attract prospective customers and gain further revenue. These recreational
programmes are specially welcomed by youngsters due to their fondness to participate in
events and games.

5.1.3 Community Building

Facilitating a space for community engagement, especially catering to the needs of different
age groups and cultural backgrounds in Singapore, creates societal value beyond mere
commercial gains. They can act as a venue for social interactions building relations among
different communities and cultures in Singapore due to its multicultural mix. This brings a
reputation of fostering cross cultural linkage among people.
5.2 Value Delivery:

Value can be delivered for the business by the following activities

5.2.1 Location and Accessibility

Situating the café in a central, easily accessible location in Singapore such as Bugis ensures
that it is convenient for a broad range of customers, from local residents to tourists to reach
the location. Those visiting this café would look forward towards ease of travel between
places to the café. Furthermore having big malls and other attractions would attract more
customers to visit the café regularly.

5.2.2 Quality Service

Fig-4

Providing high-quality service, from the culinary offerings to the activity facilitation, ensures
a memorable experience for guests. Fig-4 is that of a latte and croissant. The guest would be
looking forward to experiencing unique memorable experiences in Singapore which is offer
nowhere . This unique experience could be arranged by this café as per the needs and wants
of the target group.
5.2.3 Marketing and Outreach

Effective marketing strategies, including social media outreach, partnerships with cultural
organizations, and community events, help in reaching the target audience and
communicating the unique value proposition of the café.

5.3 Value Capture

5.3.1 Primary Revenue Streams

The Sales of Food and Beverages would be The primary revenue source .The sale of food and
beverages, with a menu that reflects the diverse themes of the café would be attractive to the
target group. There would be a significant activity fees Charged for certain special activities
or workshops conducted at the café . The revenue from hosting private events, cultural
evenings, or corporate gatherings would also be included.

5.3.2 Membership Programs

Offering membership options that provide benefits such as discounts, priority booking for
events, or exclusive access to certain areas or activities. There will be discounts to students
and elderly as they are the primary target group to capture more revenue. Furthermore
coupons and vouchers would be issued for regular customers.

5.3.3 Premium Pricing Strategy

Given the unique experience, a premium pricing strategy can be justified, aligning with the
value provided to the customers. This would help the café cater better to its customers who
are willing to attain better service and experiences from the café.
5.3.4 Merchandising

Selling themed merchandise and cultural products can provide an additional revenue stream
while enhancing the overall theme and experience. This may include souvenir’s from the café
and merchandise like t-shirts, stationary and coffee cups suited to the needs of the customer.

6. The Market Size and Target Customers

Fig-5

Analyzing the market opportunity for the Experience Café in Singapore involves considering
several factors unique to the city-state's socio-economic and cultural landscape:

6.1. Age Distribution and Demographic Diversity

With a mix of youth, working adults, and a growing elderly population, the café can cater to
varied age groups, each seeking different experiences from social interactions to cultural
exploration , Singapore's population is a blend of different ethnic groups, with Chinese,
Malay, Indian, and other communities(Overview, n.d.). Refer Fig-5 for demographics of
Singapore .This cultural diversity presents an opportunity to attract a wide array of customers
interested in experiencing different cultural themes.

6.1.1. Elderly Population

Interests: Community engagement, reminiscing about the past, and social interactions.
Motivation: Alleviating loneliness, connecting with younger generations, and enjoying a
sense of belonging.
Behavior: Interested in venues that are welcoming, accessible, and provide opportunities for
meaningful interaction.

6.1.2. Families with Children

Interests: Family-friendly activities, educational experiences for children.

Motivation: Spending quality time together, providing children with learning opportunities
outside of school.
Behavior: Seeking venues that are safe, engaging, and offer activities for all ages.

6.2 Economic Prosperity and Consumer Spending

Singapore's strong economy and high GDP per capita income suggest a market with
significant disposable income, which bodes well for businesses offering premium
experiences. There is a trend towards experiential spending in Singapore especially among
youngsters, with consumers increasingly seeking unique and meaningful experiences over
material goods.

6.2.1. Young Adults and Millennials:

Interests: Seeking unique experiences, socializing, and networking.

Motivation: Digital detox, authentic cultural experiences, and creating memories.
Behavior: Willing to spend on experiences that offer novelty and Instagram-worthy moments.
6.3. Tourism Industry

As a major tourist hub, Singapore attracts millions of visitors each year. The Experience Café
can capitalize on this by offering tourists a unique cultural experience that complements other
attractions in the city. The tourism industry also provides an opportunity to introduce
international visitors to the unique concept, potentially aiding in global brand recognition.

6.3.1. Tourists

Interests: Unique local experiences, understanding Singapore’s culture and history.

Motivation: Exploring something different from typical tourist attractions.
Behavior: Looking for memorable experiences that capture the essence of Singapore.

6.4 Urban Lifestyle and Social Trends

In a bustling city like Singapore, places that offer a break from the fast-paced lifestyle and an
opportunity for relaxation and socialization are highly valued. With the pervasive use of
technology, there is a growing trend towards digital detox, where people look for
opportunities to disconnect from digital devices and engage in real-life interactions.

6.4.1. Working Professionals

Interests: Networking opportunities, relaxation, and a break from the hectic work
environment.
Motivation: Limited time for socialization, seeking convenient and enriching experiences.
Behaviour: Prefer locations that offer a peaceful respite after work.

7. The Competition

In assessing the competitive landscape for the Experience Café in Singapore, it's essential to
recognize the diverse range of businesses that could serve as potential competitors. These
competitors fall into different categories, each presenting unique offerings that overlap with
aspects of the Experience Café's concept:

7.1. Themed Restaurants and Cafes

Those establishments that offer unique dining experiences, often with specific themes such as
historical, cultural, or modern. The provide a competitive edge as these venues appeal to
customers seeking novelty and a break from the norm. They are key Competitors as they
directly compete in offering unique, immersive dining experiences, which is a core aspect of
the Experience Café.

7.2 Cultural and Artistic Venues

Museums, art galleries, and cultural centres that host various cultural events and activities.
They provide a competitive edge as these venues offer authentic cultural and educational
experiences. They are key competitors as they cater to the cultural enthusiasts and history
buffs, which are significant target segments for the Experience Café.

7.3. Community Centers and Social Clubs

Examples: Local community centers and clubs offering spaces for socializing and activities.
Competitive Edge: These places are community-focused, often offering a sense of belonging
and various social activities. They become key competitors as they attract individuals seeking
community engagement and social interaction, particularly among the elderly and families.

7.4. Coffee Shops and Traditional Cafes

Mainstream coffee chains and independent cafes provide a competitive edge as convenience,
familiarity, and a casual environment for socialization and relaxation.They act as a key
Competitor as they are frequented by working professionals, students, and others for casual
meet-ups, posing competition for the basic café aspect of the business(Dutta & Naumov,
2020).
Understanding this competitive landscape is crucial for the Experience Café to differentiate
itself and offer a unique value proposition. While these competitors present challenges, they
also highlight the diverse interests of the target market in Singapore, ranging from dining and
cultural experiences to socializing and digital detox. The Experience Café can leverage this
understanding to refine its offerings, ensuring they are distinct and complementary to what's
already available in the market(Julínková, 2017).

8. Project Cost Estimate

The purpose of detailed estimation requires the prototype or a model which can be tested in
actual circumstances to gather learnings and feedbacks as to how this entire business can be
refined to cater to the needs of the customer while generating profit.
Estimating the funding required for the Experience Café in Singapore involves considering
various start-up and operational costs (Admin_Heysara, 2022).

Here's a detailed breakdown of the potential expenses:

8.1 Initial Set-Up Costs:

Cost Estimate: SGD 100,000 to SGD 80,000

8.1.1 Property Lease/Rental

Estimate : SGD 20,000

Securing a location in a prime area of Singapore. Costs will vary depending on size and
location.

8.1.2 Renovation and Themed Décor

Estimate : SGD 15,000

Customizing the interior to reflect different cultural and historical themes. This includes costs
for design, materials, and labour.
8.1.3 Furniture and Equipment

Estimate : SGD 10,000

Purchasing tables, chairs, kitchen equipment, and thematic props for each room.

8.1.4 Initial Inventory

Estimate : SGD 6,000

Stocking up on food supplies, beverages, and any other items necessary for the café's
operations.

8.1.5 Permits and Licenses

Estimate : SGD 2,000

Obtaining the necessary permits and licenses to operate a food and beverage establishment in
Singapore.

8.1.6. Technology and POS Systems

Estimate : SGD 4,000

Investing in a Point of Sale system, reservation management software, and other necessary
technology.

8.1.7 Initial Marketing and Branding

Estimate : SGD 5,000

Costs for branding, website development, social media setup, and initial marketing
campaigns to promote the launch.

8.1.8 Legal and Professional Fees

Estimate : SGD 2,000

Expenses for legal advice, accounting services, and other professional fees.

8.2 Operational Expenses (Monthly)

Estimate: SGD 15,000 to SGD 20,000

Depending on the size of the staff estimated to be five and the scale of operations.
Contingency Fund: 10-15% of the total initial set-up cost.

8.3 Total Funding Requirement

Estimate: 100,000-120,000 SGD( App)

This leads to a total initial funding requirement of approximately SGD 100,000 to SGD
120,000 considering all factors. It's crucial to approach this estimation with flexibility, as
costs can vary based on market conditions, specific location choices, and the scale of
operations. The funding could be sourced through a mix of equity financing, loans, and
potentially, grants or investments from cultural institutions or entrepreneurship support
programs in Singapore.
Reference

Admin_Heysara. (2022, October 18). How Much Does it Cost to Open a Cafe in
Singapore? Heysara Pte Ltd. https://heysara.sg/cost-to-open-a-cafe-in-
singapore/

Dutta, P., & Naumov, N. (2020, June 23). FOOD CULTURE: GASTRONOMIC
EXPERIENCES IN SINGAPORE. Journal of Gastronomy Hospitality and Travel
(JOGHAT), 3(1), 20–29. https://doi.org/10.33083/joghat.2020.27

Goh, H. (2021, August 27). Elderly people may feel lonely, isolated even while living with
family: Study. The Straits Times. https://www.straitstimes.com/singapore/elderly-experience-
social-disconnection-even-among-those-living-with-their-family-study

Johnny. (2023, November 19). Best Cafes To Work From In Singapore | Johnny Africa.
Johnny Africa. https://johnnyafrica.com/best-cafes-to-work-from-in-singapore/

Karve, A. (2023, July 2). Singapore Suicides Rise to Highest in Over 20 Years: Samaritans.
Bloomberg.com. https://www.bloomberg.com/news/articles/2023-07-02/singapore-suicides-
rise-to-highest-in-over-20-years-samaritans#xj4y7vzkg

Julínková, V. (2017, September 20). 5 Reasons Tourists Visit Your Speciality Cafe. European
Coffee Trip. https://europeancoffeetrip.com/5-reasons-tourists-visit-speciality-cafe/

Overview. (n.d.). https://www.population.gov.sg/our-population/population-trends/overview/

Rayna, T., & Striukova, L. (2016, April 25). 360° Business Model Innovation: Toward an
Integrated View of Business Model Innovation. Research-Technology Management, 59(3),
21–28. https://doi.org/10.1080/08956308.2016.1161401
Varley, K. (2022, September 28). Singapore’s Population Getting Older, Adding Pressure on
Social Spending. Bloomberg.com.
https://www.bloomberg.com/news/articles/2022-09-28/singapore-s-getting-older-adding-
pressure-on-social-spending#xj4y7vzkg

Appendix
Table-1