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• Dream coffee bar is determined to become a daily necessity for local coffee addicts, a place to dream of as you try to escape the daily stresses of life and just a comfortable place to meet your friends or to read a book, all in one. With the growing demand for highquality gourmet coffee and great service, Dream will capitalize on its proximity to the M.D.University to build a core group of repeat customers. Dream will offer its customers the best prepared coffee in the area that will be complimented with pastries, as well as free books that its patrons can read to enjoy their visit. The company will operate a 4,500 square foot coffee bar within a walking distance from the M.D.University
Total investment is of 100 crore in the project and the company is expected to grow sales revenue from Rs.584,0000 in FY2013 to Rs.706,0000 in year three. As Dream will strive to maintain a 65% gross profit margin and reasonable operating expenses, it will see net profits grow from Rs.1,00,0000 to Rs.1,25,0000 during the same period. 8000000
4000000 3000000 2000000 1000000 0
gross margin net profit
year 1 year 2 year 3
• Turn in profits from the first month of operations.Objectives • Become selected as the "Best New Coffee Bar in the area" by the local restaurant guide. • Maintain a 65% gross margin. .
• Marketing strategies aimed to build a solid base of loyal customers. such as espresso drinks. . • Employee training to insure the best coffee preparation techniques.Keys to Success • Store design that will be both visually attractive to customers. and designed for fast and efficient operations. as well as maximizing the sales of high margin products.
convenient location. We will be in the business of helping our customers to relieve their daily stresses by providing piece of mind through great ambience. friendly customer service. . Dream will invest its profits to increase the employee satisfaction while providing stable return to its shareholders. and products of consistently high quality.Mission • Dream will make its best effort to create a unique place where customers can socialize with each other in a comfortable and relaxing environment while enjoying the best brewed coffee or espresso and pastries in the bar.
a private company. Dream's investors are Rahul and Aadil who invested 100 crore for the startup of the company.500 square feet premium coffee bar located near the M. sells coffee.University.Company Summary • Dream. .D. other beverages and snacks in its 4.
. Rahul & Adeel are the equal partners of the company.Company Ownership • Dream is registered as a private Corporation in the state of Haryana.
0000. • Insurance premium of Rs. • Marketing promotion expenses for the grand opening of Dream in the amount of Rs.1.00.30.5.2. • Consultants fees of Rs.555 per square feet in the total amount of Rs.000 paid to ABC Espresso Services for the help with setting up the coffee bar.24997500.000 flyers at Rs.Start-up Summary • Legal expenses for obtaining licenses and permits as well as the accounting services totaling Rs. • Other start-up expenses including stationery (Rs. .300000000 and as well as flyer printing (100. • Construction and infrastructure expenses of Rs.50.0000.500000.100000) and phone and utility deposits (Rs.5 per copy) for the total amount of Rs.000).3000000. • Land expenses at Rs.00.500.000.
The required start-up assets of Rs.) .000 .15150416 per month). etc.75451250.00.000 • Other utilities 10.00.150902500 include: Operating capital in the total amount of Rs.10.00. baked goods. which includes: • Coffee beans (12 regular brands and five decaffeinated brands) Rs.30000000 for the first two months and cash reserves for the first three months of operation (approximately Rs. . tea.Rs.000 • Coffee filters.20. cleaning.37725625. coffee bags. etc.60.000 • Retail supplies (napkins. sandwiches.00. salads. Start-up inventory of Rs.Rs. beverages. which includes employees and owner's salaries of Rs.
food case) . sink.2000000 Serving area equipment (plates.Rs. etc. fax/printer.7625625 . refrigerator. etc.Rs. shelves. ventilation.10000000 Other miscellaneous expenses .3000000 Storage hardware (bins.Rs. • • • • • • • • • • Equipment for the total amount of Rs. ice machine. glasses. phone. toasters.5000000 Store equipment (cash register. flatware) .Rs.1000000 Food service equipment (microwave.) Rs.Rs. signage) .Rs.Rs.) . utensil rack. dishwasher.2000000 Coffee grinder .100000 Office equipment (PC. 37725625: Espresso machine .3000000 Coffee maker . blender. furniture. security. file cabinets) Rs.4000000 Counter area equipment (counter top.Rs.
The following chart and table summarize the start-up assumptions assumptions 1E+09 800000000 600000000 assumptions 400000000 200000000 0 expenses investment assets .
..500 square feet premises to provide world class facilities to the customers. 1000 square feet (25%) for the production area. The space in the coffee bar will be approximately distributed the following way--2500 square feet (i. • The floor plan will include a 500 square feet back office and a 4. a kitchen. and the remaining 500 square feet (12. which will include a seating area with 50 tables.5%) for the customer service area. storage area and two washrooms(male/female).e.5% of the total) for the seating area.Company Location and Facilities • Dream coffee bar will be two storey building. The company has bought 4. 62.000 square feet coffee bar.
through which passerby will be able to see customers enjoying their beverages.University the busy commercial area.• This property is located in a commercial area within a walking distance from the M. and will be in-line with the establishment's positioning as an eclectic place where people can relax and enjoy their cup of coffee.D. and outside electric signs will be aimed to grab the attention of the customer traffic . The coffee bar's open and clean interior design with modern wooden decor will convey the quality of the served beverages and snacks. The clear window displays.
menu listings and marketing activities will be focused on maximizing the sales of higher margin espresso drinks. brewed coffee and teas. . Dream will also offer its clients pastries. For the gourmet clientele that prefers to prepare its coffee at home.Products • Dream will offer its customers the best tasting coffee beverages in the area. The store layout. small salads and sandwiches. This will be achieved by using highquality ingredients and strictly following preparation guidelines. Dream will also be selling coffee beans. as well as some refreshment beverages. • The menu offerings will be supplemented by free books and magazines that customers can read inside the coffee bar. will be sold in the coffee bar. Along with the espresso drinks.
Proper preparation techniques are of paramount importance for such drinks. which is prepared in the espresso machine by forcing heated water through ground coffee at high pressure. skimmed. the size of the coffee particles. A minor deviation from the amount of coffee in the shot. etc. can negatively affect the quality of the prepared drink. . etc. cappuccinos. Such espresso shots are combined with steamed milk and/or other additives like cocoa. mochas. caramel. the temperature of milk. to prepare the espresso-based beverages.. Each of the espresso-based drinks will be offered with whole. Each of these coffee beverages is based on a 'shot' of espresso. or soy milk.Product Description • The menu of the Dream coffee bar will be built around espresso-based coffee drinks such as lattes. etc..
at the malls and in the selected office buildings within two weeks prior to the opening of Dream.Sales Literature • One lakh flyers will be distributed in the adjacent neighborhood. on the University campus. . Subsequently. free postcards with Dream endorsement will be printed to increase the company visibility among the patrons.
University . with gourmet coffee having the strongest growth. Dream will strive to build a loyal customer base by offering a great tasting coffee in a relaxing environment of its coffee bar located close to the bustling M. .Market Analysis Summary • India’s coffee consumption has shown steady growth.D. Coffee drinkers in the North India are among the most demanding ones. They favor well-brewed gourmet coffee drinks and demand great service.
. Our market research shows that these are the customer groups that are most likely to buy gourmet coffee products. people working in offices located close to the coffee bar and on sophisticated teenagers. proximity to the M.University will provide access to the targeted customer audience. Since gourmet coffee consumption is universal across different income categories and mostly depends on the level of higher education.D.Market Segmentation • Dream will focus its marketing activities on reaching the University students and faculty.
The chart and table below outline the total market potential (in number of customers) of gourmet coffee drinkers Sales student & faculty teenagers office workers other .
Target Market Segment Strategy • Dream will cater to people who want to get their daily cup of great-tasting coffee in a relaxing atmosphere. although our location close to the University campus means that most of our clientele will be college students and faculty. a lot of college students consider coffee bars to be a convenient studying or meeting location. where they can read or meet with peers without the necessity to pay cover charges. this will provide a unique possibility for building a loyal client base. . For us. Our market research shows that these are discerning customers that gravitate towards better tasting coffee. Such customers vary in age. Furthermore.
Market Needs • General trend toward quality among Indian consumers definitely plays an important role in the recent growth in gourmet coffee. . Additionally. for something more exotic and unique. provide a good selling opportunity for coffee bars. such factors as desire for small indulgencies.
7. which they can consume in a relaxing environment.5% growth rate in India over the last decade.Industry Analysis • Coffee consumption has shown a steady 2.5 billion) of that. The retail coffee industry is flourishing in the India. hot dry summers drive people into cafes to order iced drinks. is very conducive for the consumption of hot non-alcoholic beverages. coffee has really become a part of the lifestyle.2. Its discerning coffee drinkers are in favor of well-prepared. total sales of coffee were approximately Rs. strong coffee-based beverages. Further. with a long rainy season. .5 billion with gourmet coffee representing 33% (or Rs. In 1994. At the same time. The local climate.
Dream will price its product offerings competitively. coffee consumption is uniform across different income segments. . as stated before. Although. quick service and pleasant atmosphere.Buying Patterns • The major reason for the customers to return to a specific coffee bar is a great tasting coffee. We strongly believe that selling coffee with a great service in a nice setting will help us build a strong base of loyal clientele.
getting customers to spend more and come back more often. . Establishing a loyal customer base is of a paramount importance since such customer core will not only generate most of the sales but also will provide favorable referrals. retaining the existing customers.Strategy and Implementation Summary • Dream's marketing strategy will be focused at getting new customers.
Competitive Edge • Dream will position itself as unique coffee bar where its patrons can not only enjoy a cup of perfectly brewed coffee but also spend their time in an ambient environment. dimmed light and quiet relaxing music will help the customers to relax from the daily stresses and will differentiate Dream from incumbent competitors. . Comfortable sofas and chairs.
At the same time. Advertisements on TV. radio. one will be taking care of the sales transaction & rest will take care of the customers. at least 20 employees will be servicing clients--while 7 employee will be preparing the customer's order. All sales data logged on the computerized point-of-sale terminal will be later analyzed for marketing purposes. utilize customer referrals and cross-promotions with other businesses in the community. customer retention programs will be used to make sure the customers are coming back and spending more at the coffee bar. .Sales Strategy • Dream baristas will handle the sales transactions. • In order to build up its client base. Dream will use banners and fliers. To speed up the customer service.
A profit-sharing arrangement for the manager may be considered based on the first year operational results. dealing with suppliers. . The candidate (who's name is withheld due to his current employment commitment) has had three years of managerial experience in the definitely industry. This person's responsibilities will include managing the staff. developing a marketing strategy and perform other daily managerial duties. We believe that our candidate has the right experience for this role.Management Team • A full-time manager will be hired to oversee the daily operations at Dream. ordering inventory.
customer satisfaction surveys and to provide additional input into the evaluation of the new business opportunities. This company has over twenty years of experience in the retail coffee industry and has successfully opened dozens of coffee bars across the Indian Consultants will be primarily used for market research. . the consultants who have helped to develop the business idea for Dream.Management Team Gaps • Despite the owners' and manager's experience in the definitely industry. the company will retain the consulting services of ABC Espresso Services.
Financial Plan • Dream will capitalize on the strong demand for high-quality gourmet coffee. the company will see its net worth doubling in two years. With successful management aimed at establishing and growing a loyal customer base. which combined with reasonable operating expenses. Dream will maintain a healthy 65% gross margin. . The owners have provided the company with sufficient start-up capital. will provide enough cash to finance further growth.