Business Plan For Sunday Rockers Cafe

Market Segmentation

Sunday rocker Cafe (SRC) is a startup coffee and bakery House located in New South Wales. SRC will try to create a loyal customer base with the high quality of products at a competitive price. Target segment of SRC would be medium to higher income group, local populations and tourists (Schaper, Volery, Weber & Gibson, 2014).

The Idea of the opening of the coffee house is to fulfill the demands of the consumers, which is increasing day by day, ensuring that quality standards are fulfilled and citizens can get a high-quality product at best price and can contribute to the Australians economy. Coffee is one of the basic ingredients of Australian, whatever may be the scenario or occasion people love to drink coffee.

SRC will be focused on good quality of coffee, espresso and pastry products at a modest price to meet the customer expectation and attract more local natives and tourists.

• The high quality of products
• Competitive pricing

SRC is incorporated in the state of New South Wales. It is owned and possessed by its two partners. Mr. Dale has an expertise in finance and administration & Mr. John has an expertise in sales and marketing.SRC proposes to run two full-time baristas and four-part time pastry to manage customer service and daily operations for smooth running.

The goals of the cafe are to earn considerable revenue and to generate healthy business and operational environment, where both the customers and employees are cured with self-worth and respect. The goals are divided into the short-term and long-term.

  Short-term goals are:

• Contact or coordinate with advertising consultant for two months to help in analyzing and capitalizing, the customers buying trends.
• Spend months learning the main rivalry and brainstorm on the products cafe serve and they do not, that will help to highlight the unique points about the products of café.
• The next goal is customer service goal in which free coupons or discounts offer will be provided to the customers who take time to respond.

Long-term goals are:

• Increase rush to the café site by minimum forty five percent by the end of the recent fiscal year.
• Building the image of café within the public through public outreach developments is the main long-term goal of business.
• Become chosen as the “Best New Innovative Coffee” by the native restaurant guide.
• Sustain 50 percent gross margin.

SRC proposed a different variety of products such as coffee and espresso, which belong from superior Columbian grown imported coffee beans. SRC would be catering all the needs of the customers and each coffee would be made unique and would see for smallest details.

SRC will be an espresso-based coffee house such as:

• Cappuccino

Cappuccino offers a luxurious texture with strong espresso flavor. It will be provided with more skills and concentration. The major thing in cappuccino is frothing the foam to silky excellence as the milk steams, which SRB take excessive attention to attain.

• White Chocolate Mocha

There is no better way to, experience the profligate white chocolate rather than in this delicious beverage. The white chocolate mocha will be present in a creamy taste with elegant taste.

• Caramel Macchiato

This includes rich vanilla flavored syrup, milk that is freshly steamed with a icing of velvety ironic foam with a finish of buttery caramel drizzle. Most of the people are passionate about the signature beverage. We will try to present a better experience.

• Vanilla Latte

Product and Service Offering

Vanilla latte is one of the delicious parts of espresso. It will present with creamy steamed milk and classic vanillas syrup, which make the latte more delicious.

Market Research

There are certain sources, which were used to prepare business plan such as statistics of Australian Bureau, Small Business Advisory Network of NSW, meetings with several business enterprise centers and business brokers in New South Wales, through brief surveys (Burns, Bush & Sinha, 2014).  

• Industry analysis – Australian coffee Industry is experiencing a strong growth over the past five years 2019-2020, as Australians remain addicted to coffee. Australia is among the few countries wherein prompt consumption of coffee is very high. Moreover, the coffee lovers are extremely attracted in the roots and tastes of the products. Consumers are keen to know the foundation of coffee beans and the interest of the customer is utilized in the tactical plans of most of the companies. Revenue of Industry is estimate to increase by an annualized 2.7% over the five years through 2019-20, to reach $5.0 billion. It embraces estimated growth of 4.2% in 2015-16. Growth will be determined by trends towards health consciousness, finest eating, and decent consumerism. The presence of a small coffee business, which is owned by individuals, will continue to mark their existence. Growing demand of coffee will support development in both business and its culture (Knox, 2016).
• Competition – Small coffee business owners are estimated to overlook the industry over next few years. Big chains will find difficulties in establishing themselves due to high competition at competitive price points. Small business is able to give a better ambiance and high quality which even is making it more difficult for big chains. With the high demand for coffee, business will focus on increasing the profits by cutting down on wages and bringing different offers which attract consumers more. Few competitors are as follows:  -Kraft Heinz, Starbucks, Nestle, Coffee Beanery, Coffee Republic, Dunkin’ Donut, Luigi Lavazza (Leigh & Triggs, 2016).
• Seasonality – In Australia, it is estimated that individuals are consuming an average of 9 cups of their brew of choice a week. The consumption of hot coffee is dropping by 12% during the summer month and picking back up in autumn and winter (Connell, Page & Meyer, 2015).
• Potential strategic alliance – SRB mainly focus on the efforts on searching a small number of strategic alliances and offering complimentary coffee, snakes and catering services to local businesses for their grand opening and special events. Furthermore, offering coffee, food to the local car dealership to give away to customers taking cars for a test drive (Ricco & Hultberg, 2018).

By this business will have the perceptibility and reasonable products and services, which are critical to seizing the share of the market.

• SWOT analysis – This tool helps business to recognize the external and internal factors, which affect business in growth or failure. First two factors Strength and weakness in SWOT analysis are internal factors, which includes (experience, resource availability – financial resource). Opportunities and threats are the external factors for business (Brooks, Heffner & Henderson, 2014). These factors cannot be controlled which includes (political regulations, economic trends, market trends).

Strength – For the SRC, would be Location of the business, convenient for service class, Opening hours, Quality products and services.

Weakness – For the SRC, would be Stock (not enough storage space), new brand goodwill, Visibility in starting days.

Opportunities – For the SRC, buying the power of the service class individuals, Mouth publicity, Philanthropic work, Social media presence, offers which we are offering, Pricing of products.

Threats – For the SRC, Law & regulating authority, Established Competitors in the market.  An inconsistency in managing things at early stages.

Proper business planning will be done by the CEO, in which there will be the preparation of the detailed business plan, which covers all parts of activity in the cafe. Proper planning will be done to provide proper training to for two days to the staff (Chernev, 2015).  

SRC focuses on meeting the demands of local residents and tourist.

• Local residents – SRC wants to establish a huge market of local residents which will help to create a big network and it will provide the consistency to the business. Focused age group would be 25-35 years as they are young and energetic and most of them are service classed so it helps them to cool off in the café with coffee and can have business deals in café also.
• Tourists – SRC will be focusing on Tourists as well as in season it will boost the sales by 20-30% which will give more visibility of products and services. The brand name would be recognized in front of other individuals coming from different part of world (Scarborough, 2016).

The retail coffee industry has recently experienced rapid growth across the world. SRC wants to create a large and loyal customer base, which will help the business to grow and involves local residents, which will give strength in getting a competitive advantage. In addition, SRC will be attracting tourists traffic which will boost business by 25-30% of the revenues.

• Benchmarking – It covers, establishing the business in such a manner that it will lead to the example and can create or fulfill the requirements and to some extent exceeding the expectations.
• Social Media and other advertising- Choosing correct medium of marketing helps the business to make it more cost effective and doing the tie-up with different websites helps to boost the sales, for example, Food panda, uber eats, Zomato etc. It gives the visibility and creates a connection between the business and direct consumers. Customers can utilize the product and services and if any changes are required feedback could be taken and analysis can be done (Jaworski, 2018).

It is one of the critical aspects for any Coffeehouse to be at success growth. Therefore, our pricing will be strategic and when peak hours would not be there, more offers would be introduced to increase the sales. Different combination of snacks plus coffee would be there to make the offers more lucrative (Wensley, 2016).

Distribution is all about reaching the customers in some or another manner, which creates visibility and builds brand goodwill. Tie up with different distributors, sellers that can boost our sales. For example, Self-home delivery of products or Tie up with Food panda, Zomato, Uber eats and so on (Chang & Chen, 2015).

Marketing Strategy

Different strategies would be adopted such as “Happy hours” – wherein low sale in particular hours this offer would be applicable. “Ladies night” for every Wednesday. Loyalty discount would be provided to the regular customer their phone numbers will be kept in records, new offers would be provided to them, and extra discounts would be there for them. Free WIFI for all customers will boost the sales as they would be spending more time in Coffeehouse and more sales would be there (Baig & Rashid, 2016).

To evaluate the strategy of marketing, it will be measured on every eight-month basis by examining data of sale to check the performance of the cafe (Greene, 2018).

Legal and License requirement

• Business name and legal structure

The Sunday Rockers Café is the partnership company. The structure of the company has already been registered and established with two partners:

Mr. Dale (50% partnership)

Mr. John (50% partnership)

• Operating laws and license

The cafe is required to register under the acts, which are explained below:

Workplace health and safety Act, 2011 (Cth) – The café require to make the environment healthy for employees and for the customers (Chan-Mok, J. O., Caponecchia, C., & Winder, 2014).

Partnership Act, 1892 (NSW) – The company is registered under the partnership act of New South Wales (Winship, 2015).

Competition and Consumer Act, 2010 (Cth) – The café require making the healthy competition under the act and taking care of the consumer as well (Taylor & McNamara, 2014).

In the coffee shop, Mr. Dale and Mr. John are the CEOs; Mr. Ronald is the Chief Operating Officer and one Chief Technology Officer.

• Dale is expertise in finance therefore, he would capable to establish strategic plans, forecast the future and govern or manage the budget.
• John is expertise in sale and marketing thus, he owns the marketing strategy, which also includes sales strategy.
• Ronald handles multipart operating details of the company. The COO takes care that the cafe can deliver the service gradually.
• Chief Technology officer plays a vital role in Sunday Rockers Coffee shop. CTO need to prepare the coffee that can mark it better.
• At the end coffee shop need eight waiters to ensure that one waiter is always assign to those customer who are in need,  three-house keeper, one accountant that handles the account details of the cafe.

The cafe needs a professional adviser to run the business more smoothly such as:

• Charted Accountant (CA) – One CA is required to handle the tax-related compliances.
• Lawyer – Not more than one lawyer is needed to handle the legal aspect of the café.
• Insurance Broker – The café require one broker to handle the installment of insurance-related work.
• Bank Account – There is a requirement to open the current account for the day-to-day transaction, therefore require coordinating with bank manager in the bank.

The cafe needs to secure the business because of uncertainty there will be a requirement for the insurance of the cafe, which covers the insurance of premises, public liability, professional indemnity, workers compensation. There is also the need to take certain precautions for the business property, equipment, and online security for the website, which covers back up of data regularly and stored off-site.

The Sunday Rockers Cafe has secured a one-year lease of the vacant that is 2,000 square feet. The properties formerly occupied by a hair salon. It is situated in a marketable area which is near from the university campus and covers the busy town commercial area.

The equipment required for the cafes are:

• Espresso machine
• Coffeemaker
• Coffee grinder
• Foodservice equipment such as, toasters, dishwasher, blender, microwave, refrigerator
• Counter area equipment such as a countertop, sink, ice machine
• Hardware for storage such as bins, utensil, shelves and food case
• Equipment of stores such as cash register, ventilation signage, security
• Office equipment such as PC, fax or printer, telephone, fittings and fixtures, and file cabinets
• Chair and tables

The espresso based milk prepare with the ingredient of skimmed or soymilk. The coffee will be concept on “Gun Shot” of espresso. Each of these coffee beverages is based on a ‘shot’ of espresso, which is equipped in the machine of espresso by forcing heated water through the ground coffee at high pressure. Such espresso shots are combined with the ingredient of steamed milk and/or other additives like cocoa, caramel, to prepare the espresso-based beverages.

Distribution Strategy

There are many risks associated with SRC coffee House as a huge investment is there so choosing the right equipment, right employees at right time can mitigate the risk factor.

Few risk factors, which cannot be ignored, are as follows: –

• Choosing a correct location  –  The Café owner, need to choose the location of SRC very carefully by analyzing the market and demand of the customers so that business can reach Breakeven point at earliest and profits can be maximized.
• Creating an ineffective layout for customers – Planning each detail to the core such as from where the customers will enter, wait and dine. Ambiance should be clean and tidy.
• Choosing correct equipment – Choosing the correct equipment, which is cost-effective and utilizes them accordingly so that unnecessary capital is not utilized under this head and profits can be maximized.
• Building an inefficient espresso workstation – We need to make sure that we are designing the correct layout of machines so that if peak hours is where the owner is able to fulfill each demand quickly.

Conclusion

Business is one of the most innovative deals by which an individual can show the creativity. The opening of café is not easy as it involves cost and infrastructure, the individual need to sure that, what they want to deliver and constantly try to invent the method, which the individual would be following. It gives a chance to create some new, which is always appreciated. The main motive if the cafe is to provide a high quality of product and service at competitive prices which gives value to the customer and will be creating a loyal customer base which in turns help in stabilizing the business and contribute towards the economy.

References

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