Australian Membership Coffee Café Business Plan

AUSTRALIAN MEMBERSHIP COFFEE CAFÉ 1
Australian membership coffee café
Name of student
Name of institution
Name of instructor
Date

AUSTRALIAN MEMBERSHIP COFFEE CAFÉ 2
Contents
Australian membership café...................................................................................................2
Motivations of the business.....................................................................................................3
The context of operations........................................................................................................3
Market potential.......................................................................................................................3
Market target............................................................................................................................3
Industrial analysis....................................................................................................................3
Customer composition.............................................................................................................3
Business model..........................................................................................................................3
Marketing strategy...................................................................................................................3
Advertising................................................................................................................................3
Internet advertising..................................................................................................................4
Posters and billboard marketing............................................................................................4
Operations strategy..................................................................................................................4
Production process...................................................................................................................4
Suppliers....................................................................................................................................4
Plant and equipment................................................................................................................4
Software and communication..................................................................................................4
Time of operation.....................................................................................................................4

AUSTRALIAN MEMBERSHIP COFFEE CAFÉ 3
The quality plan........................................................................................................................4
Resource requirements............................................................................................................4
Financial projections................................................................................................................6
Start-up costs............................................................................................................................6
Balance sheet.............................................................................................................................6
Profit and loss statement.........................................................................................................7
Expected cash flow for the first five months..........................................................................8
Sources of finance.....................................................................................................................8
Value estimation.......................................................................................................................8
Action plan for the setup year and the following two years.................................................8
References...............................................................................................................................10

AUSTRALIAN MEMBERSHIP COFFEE CAFÉ 4
Australian membership café
The business idea relates to coffee café that serves high-quality coffee for the
customers. The coffee uses an innovative method, which the customers pay a monthly or
annual subscription fee. The fee allows the customers to access unlimited coffee at the café.
Customers can enjoy the coffee at all times of the day and bring loved ones or friends to the
café for coffee. The subscription caters for the member’s coffee and allows the discounts for
other persons accompanying the member. Members also enjoy free deliveries to the places of
work and home at a small fee or on paying for a membership package that includes the
delivery (Baack, 2017).
The coffee shop has a luxurious lounge where the customers relax while taking coffee
as sweet music plays. The lounge has leather seats and big screens where the customers can
watch favourite TV shows and games. Additionally, the customers can also participate in
preparing own coffee using the coffee making machines available in the lounge. The purpose
of the lounge is to give the customers a home like experience that increases the customer’s
satisfaction (Chalmers Brother, 2015).
The business location is in Sydney due to the large population of coffee lovers.
Therefore, the café has a great potential for many customers, which is necessary for
increasing the sales revenue. The business requires funds to buy the equipment such as coffee
makers, utensils and cutlery, leather seats, TV screens, paying rent and other expenses.
Additionally, the business requires human labour experienced in the coffee industry.
Moreover, the labour should have high hospitality skills to ensure that the customers get the
best experience at the coffee shop (Ferrell, 2017).

AUSTRALIAN MEMBERSHIP COFFEE CAFÉ 5
The membership coffee café exploits a huge market gap of coffee lovers. Most
persons love drinking coffee, which accounts for most of the expenditures due to the
payments made for each cup of coffee. Therefore, a coffee shop where the customers
subscribe monthly and annually for an unlimited amount of coffee proves very economical to
the coffee lovers. The café will exploit the inability of other coffee shops to assure customers
of unlimited coffee and discounts for friends. Additionally, most of the customers like the
feeling of belonging and attachment to a coffee shop, which most coffee shops in Sydney
have not availed. Therefore, the shop has the ability to capture a large customer base and high
revenues from the sale of coffee through membership (Giovani J.C, 2010).
Motivations of the business
The starting of the business arises from various motivations necessary to make the
business successful. The main motivation is a great desire to have an enterprise that
generates cash inflow and serves the customers’ needs. The desire comes from knowledge
gathered in business studies and research in the coffee industry, which assists to identify the
gaps café operations. The desire gives the urge to get into the coffee industry with new ideas,
which will change the running of coffee cafes (Gregory G Dess, 2015).
Furthermore, the need to tap into the huge market of coffee lovers motivates the
business plan. Sydney has a large population made up of students, workers and
businesspersons. The various persons require a place to relax and talk business or go for
coffee dates. Therefore, the persons create a great chance for the success of a coffee business
especially one, which offers unlimited coffee at a small subscription fee. The coffee shop
business plan also aligns with the motivation of financial independence by practising hobbies.
The business is in line with my hobby of collecting coffee berries and discoveries new tastes
of coffee, which comes handy with the business. The coffee business requires creativity in the
coffee tastes and brands to beat the competition (Grunig, 2013).

AUSTRALIAN MEMBERSHIP COFFEE CAFÉ 6
The context of operations
The business operates in an uncertain environment with a lot of competition,
opportunities and risks. The business operates in an environment with a huge opportunity for
growth and becoming a strong brand above other coffee cafes. The opportunity arises from
the opportunity to develop new unique coffee blends, which customers cannot find in other
shops. Additionally, the availability of luxurious and spacious lounges allows the coffee café
to attract customers. Most of the coffee cafes do not avail such relaxing lounges for the
customers, which means that the business plan will result in great success. Additionally, the
idea of a coffee shop that operates on monthly and annual subscriptions will tap great
clientele due to the cost-saving advantage to the customer (James Michael Stewart, 2015).
However, the shop faces the risk of failure due to the stiff competition in the coffee
industry posed by established brands such as Starbucks. The established brands operate
efficiently at low costs compared to the new business plan due to the lack of already
established customer loyalty. Additionally, the big brands have the finances to market and
develop an appeal to the customers. The ability to market allows the competing brands to
attract many customers, which leaves the shop with a few customers. The business plan also
faces huge costs at the start-up stage, which could result in the increase in the subscription
fees and the prices of coffee. The high prices could result in customers preferring other cheap
coffee brands (Johansson, 2010).
Market potential
The business has the potential to attract approximately 500 members in a month. The
number represents a huge sales volume for the coffee shop within a month, which translates
to a more sales revenues. The dense Sydney population is capable of availing such numbers
of customers. Sydney has a mixed population made up of business people, students and