Group Assignment – Espresso Patronum

Completed By

Evneet Kaur
Nisarg Kumar Patel
Inderjit Singh
Oves
Karen
 i. Case Discussion

The Biz Café case presents information on the starting situation with your café and some of
the issues you will be facing. Below are a few guide questions to consider as you read the
case. Be prepared to discuss these as well as other questions in class.

1. Where is the cash for start-up coming from? What will you have to pay for before opening the
cafe? How much will you have left?

Jane Valdez have given 25000 $ loan at an interest rate of 10%.

Deposit 2500
Equipment 6000
Furniture 4000
Inventory 700
Insurance 500
Total 13700
Cash in Hand 11,300

2. Fixed costs, or overhead, are expenses that are the same no matter how much product you
sell. Identify the fixed costs for your cafe, estimate the monthly amount for each, and calculate
the monthly total.

Rent 2000
Employees 3600
Advertisement 2800
Coffee 350
Total Fixed Cost 8750

3. Assume you make $2.50 on each cup of coffee. How many cups will you have to sell to cover
the fixed costs you calculated? Based on the case, how many do you expect to sell?

Number of cups to be sold = Total fixed cost/$2.5

= 8750/2.5
= 3500 cups per month

4. Sales may be slower than expected when you start out. What can you do to stimulate demand?

Well there are certain factors which are responsible to stimulate the demand.
1. Research your market – Understand your target audience.
2. Provide special promotions and discounts for the first month and store starting discount
3. Have your own USP give some special ambience to people so that they get attracted to visit you.
4. Make customer retention strategies – give feedback forms to improve any customer or functional
issues.

5. How many servers would you need to hire if you are open 10 hours a day, Monday to Friday,
and want two servers working at all times?
We would need around 12 workers having 2 managers working all time if we are working for 50 hours
a week, where each server will be allotted around 5 hours.
6. Given estimated sales of 2,000 medium cups of coffee for the week, how much coffee should
you buy?
For around 2000 cups of coffee based on the simulation we need to buy around
2 cups = 0.1 pounds
2000 cups = 64 pounds

ii Café Name Selection (entered on the day the Biz Café simulation begins to
activate full access)

One of your first decisions is the selection of a name for your café. Choosing your café name
should be a creative process provoking a wide range of thoughts and ideas within your group.
Your name will be how people identify your café and should communicate something about
what you intend to provide. For instance, are you aiming for a high-end image? Perhaps
something trendy? Who are your target customers? What would be appealing to them? Is your
name easy to remember? Does the café name work well in a logo design? These are the kinds
of questions you should be considering when choosing a name.

7. Brainstorming and Competitor Scanning. Your team should come up with five potential names
for your café and list them below. Do not use the names of any cafés that are in your locality.
List the five
names your group chose.

1. Blue Bird Coffee

2. Espresso Express
3. 9 ¾ Café
4. Cauldron Cafe
5. Espresso Patronum

8. Gathering Feedback. The next step is to talk to some of your potential customers about your
choices and see their reaction. Interview at least five students or friends who are not in your
class. Is your name distinctive and easy to remember? What image and benefits does it
convey? You may want to try out some marketing ideas that include the name to provide more
context for the interview. List some of the feedback you received about each name. Did any of
the results surprise you?

1. Blue Bird is a very common name does not differ you from other people, sounds like a cozy place but
doesn’t determine the type of café.
2. Espresso express – Does not have a unique element maybe make it like a themed café.
3. 9 3/4 is an imaginative name but everybody might not understand the reference in first go as a
potterhead.
4. Espresso Patronum – Clever choice even if the people are not aware of the Harry potter they will not
feel that they are missing out on something.

9. Your Final Choice. What name did you choose and why? Enter that name in the start-up
decisions in the simulation. Remember that your instructor may rate the names, which could
impact your success in the marketplace. Choose wisely!

Our final choice was “Espresso Patronum,” which gives a blend of coffee culture and popular pop
culture that will never fail to excite people of different age groups, may it be children or young adults.
Themed places excite adults who are bored to go to their regular takeaway places. In a competitive
market, it is always good to give something different than ordinary for a kick start
 iii. Logo Design (uploaded to the Biz Café simulation)

A company logo provides a visual representation of your brand in the market. It is used in
advertisements, in promotions, and for many other marketing purposes. This assignment
gives you the opportunity to be creative in designing a logo for your café. Some things to keep
in mind when designing a logo:

Consider that a logo is used in a variety of circumstances, such as websites, ads, packaging,
storefronts, and maybe even clothing items. Make it versatile - scalable to different sizes, yet
still readable and recognizable. Your logo ideally should look good in both black & white and
colour.

Keep it simple: Remember this is how people identify your brand, so don’t clutter your logo
with unnecessary images and text.

Try to make a connection between your product and your logo that will make sense to your
target customer.

You may use any graphics program to design the logo, but the submitted logo must be in
electronic format - specifically GIF, JPEG or PNG. You can post your logo from the CREATIVE
tab within the simulation.

iv. Business Plan

Planning is essential in any business. This assignment is designed to help your team develop
a basic “game plan” that can help you to make decisions as well as to reflect on the decision-
making process. Use the guide questions below to write a business plan describing who you
are, what market your business will serve, and how you will ensure success. Use the context
of BizCafé for your plan, and be sure to address all major decision areas. Limit your plan to
two pages total.

10. Company Description: Who are we?

Espresso Patronum is a Harry Potter themed magical café and lounge located in the heart of the city.
Our cauldron gives an enchanting experience filled with the aroma of freshly brewed coffee potions,
the warmth of friendly faces and the sparkle of beautiful imaginative fiction. Our team of devoted
wizards and witches are committed to make you spellbound.

11. Market Analysis: What market are we serving?

Espresso Patronum Café caters to a diverse audience seeking for more than just a cup of coffee.
Whether you are seeking discerning coffee or a place to sit with your valentine, a student seeking
wake up call in between classes, a young professional in need of a creative space or a family looking
for an outing our café serve all different stratas of people are considered when we stir a cup of coffee.
12. Management and Operations: How will we run the business?
Our team will manage and deliver the best coffee at your table within no time. Our organisation will
cater two full time managers and certain servers working part time and full time. Well equipped staff
so that no one has to work over time and feel stressed. Quality controls and feedback checks would
be done at weekly basis to ensure best coffee to all the customers without compromising the quality.

13. Marketing: How will we market our business?

Based on the simulation there are many marketing platforms available such as different slots on
radios and advertisements through offers such as discounts and buy 2 for 1, you can also post your
advertisement on the menu board.

14. Projections: Where do you expect the company to be after three months?
Coffee is around a 10 billion dollar business in Canada it has mass scaling hence there are low
chances for such businesses to fail and doom into bankruptcy. If the feedbacks and calculations go
right we will be able to increase the revenue by 6 times by the end of 3 months.

v. Forecasting

Forecasting sales so that you hire enough staff and purchase the right amount of products
can be one of the more difficult tasks in running your business. At the beginning of the
simulation, the only hint you have of demand potential is a similar shop that sells about 1,000
cups daily. Whether your café reaches or exceeds that number will depend on your ability to
forecast and manage growth.

15. When you first start, you can expect sales to be well below 1,000 cups daily. What is your
projected net cash flow if you expect to sell 300 medium cups of coffee daily (Monday - Friday)
at $3.50 per cup and have expenses of $6,000 for the week?

Based on the above data

Projected or Estimated cash flow = Expenses – Revenue
6000 – 300*3.50
6000 -1050 = 4950

16. In BizCafé, what decisions can you make to increase demand in the early stages of your
business? What other decisions will you have to consider to manage growth?

In BIzCafe, On week one we increase the capacity of servers by increasing 3 servers and in total 13
servers for the 2nd week. So estimated cup sales reach around 2120 because we use full time from 7
AM to 11 PM. Servers capacity is one of the main reasons for our cafe because it also increases the
cost, on the other hand, it helps to grow revenue quickly. We also use the same marketing strategy
for next week because it increase sales. Increase the order of coffee, and increase wages by $0.75
per hour to encourage servers.

17. Estimate the amount of coffee you will need to purchase to have enough to meet demand
projected in the table below. Recall that each shot of espresso takes about 7 grams, or 1/64 lb.
of coffee.

Sizes Shots per Cup Weekly Projected Demand (cups) Coffee Required
 Small 1 1,200 18.75 pounds

Medium 2 1,000 31.25 pounds

Large 3 650 30.4 pounds

Total 80.4 pounds

Given the cafe hours, projected daily demand, and server productivity, estimate the number of
part-time servers you will need to meet demand for each scenario.

Servers Servers
Hours Daily Projected Server Productivity
Required per Required per
Open Demand (cups) (cups per hour)
Hour Week

10 am to
290 14 3 3
08 pm

09 am to
360 12 3 4
09 pm

07 am to
1,200 15 10 10
11 pm

18. Why might you have a problem serving 1,000 cups of coffee per day if your espresso maker is
a Duo?
 Well we have bigger machine at the starting so we can increase capacity easily when we needed and
if we have duo espresso machine then it halves the productivity and we face huge lose in revenue
generation. We push our full strength to make huge revenue on estimated needs and capacity.

vi Staffing
Managing your café’s staff is an important part of meeting your business objectives. In the
simulation, you need to decide how many employees to hire and how much to pay them. Your
decisions will affect the customer service, employee turnover, and financial results of your
café.

19. Your store starts with two full-time managers, and there must be at least one manager on site
from an hour before the shop opens until an hour after closing. If you are open from 7 am to 11
pm, Monday through Friday, how many hours will each manager have to work?

The store is open from 7 a.m. to 11 p.m., and from one hour before opening until one hour after
closing, a manager must be present. Accordingly, the managers have a total of eighteen hours of
work per day to cover (7 am to 11 pm plus one hour prior to opening and one hour following closing).

The following would be the computation for each manager's hours:

18 hours a day × 5 days a week

Therefore, in order to cover the store's Monday through Friday operating hours, each manager will
need to put in about 45 hours per week of work.

20. Managers can wait on customers, but you will need to hire part-time servers to provide good
customer service. If you are open 16 hours daily (M-F), how many servers will you need to
employ in order to have one server working at all times? Remember that servers work about
10 hours per week.

The store would need to figure out how many server hours are needed each day and divide that total
by the average number of hours each server works each week if they were running a 16-hour-a-day,
Monday–Friday store and trying to have at least one server working at all times.

To find the total server hours needed per day:

16 hours/day x 5 days/week= 80

Now, dividing the total server hours by the average hours each server works per week (assuming 10
hours per week per server):

80 hours/week
10hours/week per server

=8 servers

21. Assume there are two servers and one manager on staff all day, and the shop is open from 8
am to 8 pm. Calculate the daily service capacity if the average server can serve 15 cups of
coffee in an hour, and the manager can serve 4.

Therefore:
 Service capacity per hour for servers:

2 servers x15cups/hour/server=30cups/hour

Service capacity per hour for the manager:

1manager x 4cups/hour/manager=4cups/hour

the daily service capacity:

34cups/hour x 12hours/day = 408cups/day

Therefore, the daily service capacity with two servers and one manager on staff, where each server
can serve 15 cups of coffee in an hour and the manager can serve 4 cups in an hour, would be 408
cups per day.

22. What factors will improve employee productivity? What might limit the service capacity of your
café?

Factors improving employee productivity:

Clear communication and expectations.

Training and skill development.

Positive work environment.

Fair compensation and incentives.

Limiting factors on service capacity:

Insufficient staffing.

Equipment breakdowns or inefficiencies.

Poorly organized workflow.

Lack of employee motivation or engagement.

Inadequate training or skills.

23. Managers are paid a weekly salary, while servers are paid an hourly wage. In addition to
employee compensation, the employer is responsible for payroll tax equal to 7.5% of
compensation. Complete the following table to calculate the weekly compensation and payroll
tax paid by the employer.

Payroll Tax
Employee Type Quantity Wages Compensation
@7.5%

Manager 2 $600 / $1200 $90

 week

Servers 15 $10 / hour $1500 $112.50

Total $2700 $202.50

24. What would be the impact of an increase in the minimum wage to $15 an hour for the payroll in
question 5?

PayrollTax
Employee Type Quantity Wages Compensation
@7.5%

Manager 2 $600 / week $1200 $90

Servers 15 $15 / hour $2250 $168.75

Total $2700 $258.75

vii. Recruiting and Selection

One of your most important jobs as manager of the café is to recruit and select the best
employees. In this assignment you will write a help-wanted ad for servers and create a set of
interview questions to screen applicants for the position.

25. Write an ad to attract potential servers to work for your café. Keep your advertisement 100 to
200 words long, and be sure it is suitable for both print and online job listings.

Now Brewing Great Opportunities at Espresso Patronum: Hiring Servers

Do you love coffee and have a strong desire to give great customer service? We are looking for
dedicated servers to join our expanding family.
Benefits for Employees:. training that costs money. Adaptable timetable. Prospects for growth and
development. discounts for food and drink for employees. On-site parking

Jobs and Their Responsibilities: Exhibit outstanding customer service while maintaining a kind and
welcoming attitude. Receive orders and accurately deliver them to the visitors. Uphold a tidy and well-
organized workstation. Work together as a team to guarantee a satisfying customer-focused
experience. Promote additional menu items and make informed suggestions.

26. Research places to post the ad in your locality. Identify three placement options that are
appropriate for your business. Which one will you select and why?

Options for Placement:. Local Community Bulletin Board: These can be found in coffee shops,
community centres, and grocery stores. Online job platforms such as Indeed and LinkedIn are utilized
to reach a wider audience that is actively looking for work. Aspiring professionals can post
advertisements on bulletin boards of culinary schools or community college career centres.
 Online job platforms and local community bulletin boards would be our combination of choice. This
dual strategy reaches a larger audience actively looking for work opportunities online and guarantees
visibility within the local community.

27. Once you have attracted several potential employees, how will you decide which one(s) to
select for your café? Identify three qualities that you consider most important for applicants to
the server position.
Requirements: Prior experience working in a café or in customer service is preferred.
understanding of coffee types and preparation techniques
Capacity to operate a cash register and accurately process transactions
Good interpersonal skills and a welcoming attitude
the ability to adjust to changing tasks and work in a fast-paced environment with flexibility

If you possess these three attributes, you will blend in flawlessly:

approach to problem-solving
Outstanding Client Care
Paying Attention to Hygiene

28. Create a set of five interview questions that you will ask potential servers.
1. Can you share an experience where you turned a challenging customer situation into a positive
one?
2. How do you handle multitasking during peak hours to ensure efficient service?
3. Describe a time when you collaborated with a team to enhance the overall customer experience.
4. How do you handle customer complaints or special requests?
5. What qualities do you believe are essential for creating a warm and inviting café atmosphere, and
how would you contribute to it?

viii. Physical Layout

The blueprint showing the design of the service counter, seating area, restrooms, storage,
etc.

What criteria did you use when designing the space? Identify 3 to 5 considerations.
The arrangement of physical elements significantly impacts operational flow and
productivity. Our design was meticulously crafted, with paramount consideration given to
customer satisfaction and comfort. Subsequently, we endeavored to create an optimal
ambiance, recognizing that a hospitable atmosphere is a pivotal criterion.
Safety and spaciousness were also key factors in our design considerations. A crowded
space, with individuals frequently colliding with furniture, is something we aimed to avoid.
Ultimately, the layout was conceptualized with these criteria in mind, ensuring a
harmonious and pleasant experience for our patrons.

Estimate the cost to renovate the shop using your design. Make sure you consider all costs
—including downtime while the construction is completed, employee compensation
during downtime, storage costs for inventory and equipment, etc.
The renovation was completed in 1 week and the cost of renovation is $5,000.
Compensation for employees: We have 16 servers and 3 managers. Total server hours:
16*10 = 160 hours a week. Managers are paid $890 per week.
The expected weekly earning of servers (160*$14.12) = $2259.20
Managers are expected to earn, (3*$850) = $2550
Total weekly remuneration/compensation = $4809.20

Approximately how many additional cups of coffee would need to be sold to pay for the
renovation? Does it make sense to do it? Why or why not?
Total renovation cost is $5000
The additional cups of coffee we need to sell to cover the cost of renovation are
$5000/$4.60(cost per coffee) = 1087 cups.
Our weekly sale is 3,133 cups that brings gross revenue per week to $14,311.30 (after
deduction coupon discount of $100.50). This can easily cover the cost of renovation.

Think about the last time you visited a local café. Describe how your layout differs from
that of the café you visited. What suggestions could you make to improve their design?
We explored Mystic Muffin Cafe. In comparison to Espresso Patronum, Aroma featured high
stools oriented towards the exterior, offering a scenic outlook through glass panels. Inside,
exclusive seating arrangements for four individuals were available. The outdoor seating,
adorned with cane furnishings and surrounded by seasonal blossoms, contributed to a
vibrant summer/fall atmosphere. Strategic placement of television screens behind the
counter facilitated menu display. Aroma not only offered an array of coffees but also
presented a diverse selection of culinary delights.
The furniture at Mystic Muffin, looked old and replacement should be considered. The
lighting seemed dull and didn't go with the furniture theme. Not having a washroom was
inconvinient for many customers and having one is recommended.