Australian Membership Coffee Café Business Plan

This business plan outlines the idea for Australian Membership Coffee Café, a coffee shop that offers unlimited coffee through monthly and annual subscriptions. The plan covers the motivations for the business, market potential, target audience, marketing strategy, and financial projections. The café aims to attract a large customer base through its unique business model and luxurious lounges.

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

AUSTRALIAN MEMBERSHIP COFFEE CAFÉ 7
employees who take coffee. Therefore, the business has the perspective of serving many
customers within a month and annually (Kannaiah, 2015).
Market target
The coffee shop targets business people who need a place to relax and discuss trade
deals. The coffee shop gives the businesspersons a good environment to effectively talk and
transact business in the luxurious coffee lounges. The other group targeted include students
who attend the colleges in Sydney. The students take coffee in the morning before classes and
in the evening after classes. The shop offers the special services tailored to the student’s
needs by offering morning and evening coffee. The employed persons also fall into the target
group due to the need for a place to relax and interact while taking coffee. The coffee shop
responds to the need by making a luxurious lounge where customers relax over a cup of
coffee (Maloney, 2015).
Industrial analysis
The market has many customers, which is an advantage to the business. The many
clients will ensure that the shop sells a lot of coffee and has a large number of members. The
market size is large in Sydney compared to other regions, which make the location of the
business suitable for success (Mandviwalla, 2015).
The market has an increasing number of customers over the years, which the customer
could tap. The introduction of the subscription for an unlimited amount of coffee will change
the market for coffee with other shops adopting the idea. The subscription follows a trend in
the market, which the customers require a personal touch and a sense of belonging to the

AUSTRALIAN MEMBERSHIP COFFEE CAFÉ 8
coffee shop. The coffee shop through the subscription will cultivate a sense of belonging to
the customer (Mankiw, 2017).
Customer composition
The customers targeted involve both genders male and female. Both genders have an
equal liking for coffee and represent potential customers. Additionally, most of the targeted
customers have the age of 25-60 years, which is the age that includes the students in colleges,
employees and business people. The students fall at the age of 25-30 and require different
services from the other customers, the students like coffee in the morning before classes and
in the evening after classes. Therefore, the shop should avail the special services to the
students. The other group is 30-60, which involves the business people and employees. The
age group of 30-60 also require specialised services to cater for the specific needs (Marone,
2013).
The shop will offer very special services to all the groups to ensure the total
satisfaction of the customers for example selling coffee to students at discounted prices. The
discounts will lead to the students developing a loyalty to the shop and the willingness to buy
coffee at the shop repeatedly. Additionally, the business and employee group will have a
special lounge to relax and transact business over a cup of coffee. The lounges will ensure no
disturbance and high levels of privacy, especially for the businesspersons. The service will
attract new customers and help retain the already existing. Additionally, the café will special
and customized blends of coffee to the different customers since the customers have the
ability to make own coffee using the coffee makers at the shop. Therefore, the customers will
have a say in the taste and brand of coffee berries to use the making of coffee (Mizrahi,
2010).
Additionally, the subscriptions for unlimited coffee will enhance the customer
retention rate for the shop. The customers will have a personal touch and a sense of belonging

AUSTRALIAN MEMBERSHIP COFFEE CAFÉ 9
to the café due to membership and customized services. Therefore, the cafe will retain and
make new customers through the operations (Mizrahi, 2010).
Business model
The business deals with the sale of coffee and snacks to customers who pay a
subscription fee to earn membership at the hotel. Additionally, the business also sells coffee
to customers without membership, which is usually at a high cost compared to members. The
business provides customized coffee to the customers depending on the requirements that the
members fill in the registration form. Furthermore, the café has luxurious lounges where the
customers relax when drinking coffee. The café also has an online platform where the
customers place orders and have coffee delivered (Monanghan, 2011).
The value of the business lies in the annual and monthly membership fees paid by the
members. The fee is renewable after the expiry of the subscription. Additional, sources of
revenue are the delivery of coffee to the customers, which usually carry an added transport
cost. The transportation fees and the membership fees translate to the profits of the coffee
shop. However, the shop has expenses such as the payment of employees, buying coffee
inventory, replacing broken utensils and cutlery and cleaning expenses. The business aims at
maintaining higher revenues compared to expenses to make a profit during a financial year
(Monanghan, 2011).
Marketing strategy
The coffee shop will use various marketing techniques to stay remind, persuade and
inform customers. The methods used aim at putting the shop at the top of competition by
having a wide customer base. Additionally, the café tries to give better services to customers
as compared to other shops in Sydney (Mizrahi, 2010).
Advertising

AUSTRALIAN MEMBERSHIP COFFEE CAFÉ 10
The business uses advertisements using television and radio to reach the customers.
The advertisements happen during favourite radio and television shows to capture a large
audience. The adverts show the location of the shop, the interior designing and testimonials
of satisfied customers. The adverts intend to create an impression on the customers, which
increases the curiosity of visiting the coffee shop. Furthermore, the adverts communicate the
benefits of paying the membership fees to the customers (Nicolas Bacon, 2010).
Internet advertising
The café uses social media platforms such as Facebook and Instagram to market the
products. The café posts images and videos of the products on Facebook and Instagram
where the customers’ view, share the messages and give comments. Additionally, the
company uses the opinion shapers on social media to market the products. The online
marketing develops customer goodwill and loyalty, which translates to increased sales for the
shop (Nigel Slack, 2010).
Posters and billboard marketing
The coffee shop has erected billboards in Sydney for the customers to view and
understand that the shop exists. The billboards show an image of a satisfied customer seeping
coffee at the shop. The posters also attract customers by using colourful pictures and sweet
messages. The shop puts posters at strategic points such as bus stops to ensure that many
people get the message. The billboards and posters attract all customers to the shop by using
the attractive messages and eye capturing images. Additionally, the posters give a short
description of the membership and the high-class services offered at the shop (Noe, 2014).
Operations strategy

AUSTRALIAN MEMBERSHIP COFFEE CAFÉ 11
The café has many processes that happen to satisfy the customers and earn revenue.
All the operations concentrate on quality assurance to ensure that the customers do not
complain about poor services and products (Perks, 2017).
Production process
The café sells coffee prepared by the employees to customers. The café uses coffee
making machines to prepare the coffee for customers. The machines require high expertise to
customize the client’s coffee since each customer has different tastes. Furthermore, the shop
needs to maintain a certain blend of coffee taste, which identifies with the brand. The shop
has a transparent production method since the customers also participate in the process. The
customers with the help of attendants prepare coffee according to own specifications (Rajesh
K. Singh, 2010).
Suppliers
The shop has a group of trusted suppliers who provide high-quality coffee. The coffee
is usually graded and checked properly to ensure high-quality standards. The suppliers
deliver the coffee to the shop constantly when ordered to avoid shortages. The supplies have
to uphold high-quality standards to avoid compromising on the quality of the coffee.
Therefore, the shop only qualifies suppliers after a long process of vetting to ensure that the
ability to deliver the right quality (Ralph M. Stair, 2015).
Plant and equipment
The café has the equipment to assist in the delivery of services to the customers. The
equipment includes coffee making machines, which the attendants use for preparing coffee
for the customers. Additional, equipment includes cutlery and utensils, which the customers

AUSTRALIAN MEMBERSHIP COFFEE CAFÉ 12
use to take coffee at the café. The lounge also has extra equipment, which, include leather
seats and television screens to offer customer luxury (Robert J. Anderson, 2015).
Software and communication
The café has a unique computer-based method of communicating externally to
customers and internally within the employees. The employees communicate through an
internal communication network where messages move through handheld walk talkies. The
gadgets ensure quick communication from one client to another which allows quick response
to the customers’ needs. Moreover, the shop communicates externally using the café’s
website where the customers place coffee orders and the deliveries happen immediately. The
website conveys messages such as increases or decreases in the membership fees, any special
events happening at the shop and discounts available for coffee. Additionally, the café
reaches the customers through portals developed for the members after paying the
membership fees. The portals allow the members to place orders, give comments and raise
complaints and apply for various fun activities at the shop (S.K Breja, 2011).
Time of operation
The shop operates on a 24-hour basis to ensure customers get products at any time of
the day without failure. The attendants work at the café on an eight-hour shift basis to prevent
fatigue among the employees. Therefore, the customers can place orders at any time of the
day without fear of not receiving the products (Singleton, 2017).
The quality plan
The shop has a clear plan to maintain quality and boost customer satisfaction. The
shop begins to maintain quality at the raw materials delivery point. The delivery point
ensures that only high-quality coffee delivery occurs at the shop, which will result in the
required blend and taste. The other quality checkpoint happens when preparing the coffee
where only qualified employees prepare the coffee for the customers. The employees ensure

AUSTRALIAN MEMBERSHIP COFFEE CAFÉ 13
that the customers get customized coffee tastes and brands to avoid complaints. The servers
at the shop also maintain quality by giving customers high-quality treatments when taking
coffee at the shop. The attendants offer quick responses to the customer needs and maintain a
friendly relationship with the customers (Suranovic, 2010).
Resource requirements
The café requires a place of operations, which accommodates the equipment and the
customers. Other resources include capital to buy the equipment, employee workers, buy
inventory, pay rent, market and pay for other emerging expenses. The café also requires
human resources experienced in the making of coffee and able to offer high-quality services
to the customers (William Stallings, 2012).

AUSTRALIAN MEMBERSHIP COFFEE CAFÉ 14
Financial projections
Start-up costs
(Monanghan, 2011)

AUSTRALIAN MEMBERSHIP COFFEE CAFÉ 15
Balance sheet
BALANCE SHEET FORECAST [Year 1] [Year 2] [Year 3]
Current assets
Cash 1000 900 1500
Petty cash 400 300 700
Inventory 800 700 1000
Pre-paid expenses 600 500 600
Fixed assets
Leasehold 700 700 800
Property & land 1000 900 1100
Renovations/improvements 100 100 100
Furniture & fit out 300 200 200
Vehicles 800 700 1200
Equipment/tools 500 400 600
Computer equipment 300 300 300
More… 500 450 700
Total assets $7000 $6150 $8800
Current/short-term liabilities
Credit cards payable 100 90 150
Accounts payable 200 250 300
Interest payable 70 100 200
Accrued wages 100 150 300

AUSTRALIAN MEMBERSHIP COFFEE CAFÉ 16
Income tax 70 100 400
More… 600 700 800
Long-term liabilities
Loans 1000 2000 3000
More… 1840 760 1650
Total liabilities $3980 $4150 $8800
NET ASSETS $3020 $2000 $2000
(Monanghan, 2011)

AUSTRALIAN MEMBERSHIP COFFEE CAFÉ 17
Profit and loss statement
(Monanghan, 2011)

AUSTRALIAN MEMBERSHIP COFFEE CAFÉ 18
Expected cash flow for the first five months
EXPECTED CASHFLOW
[YEAR]
Jan Feb Mar Apr May
OPENING BALANCE $0 $195 $1040 $1335 $2630
Cash incoming
Sales 1000 1500 1000 2000 1200
Asset sales 0 100 300 250 200
Debtor receipts 200 400 100 100 90
Other income 100 150 300 150 200
Total incoming $1300 $2345 $2740 $3835 $4320
Cash outgoing
Purchases (Stock etc.) 70 70 70 70 70
Accountant fees 60 60 60 60 60
Solicitor fees 50 50 50 50 50
Advertising & marketing 40 40 40 40 40
Bank fees & charges 20 20 20 20 20
Interest paid 10 10 10 10 10
Credit card fees 15 15 15 15 15
Utilities (electricity, gas,
water) 50 50 50 50 50

AUSTRALIAN MEMBERSHIP COFFEE CAFÉ 19
Telephone [phone]
Lease/loan payments 40 40 40 40 40
Rent & rates 70 70 70 70 70
Motor vehicle expenses 80 80 80 80 80
Repairs & maintenance 70 70 70 70 70
Stationery & printing 40 40 40 40 40
Membership & affiliation fees 50 50 50 50 50
Licensing 30 30 30 30 30
Insurance 100 100 100 100 100
Superannuation 70 70 70 70 70
Income tax 90 90 90 90 90
Wages (including PAYG) 80 80 80 80 80
More… 30 30 30 30 30
Total outgoing $1105 $1105 $1105 $1105 $1105
Monthly cash balance $0 $200 $300 $100 $150
CLOSING BALANCE $195 $1040 $1335 $2630 $3065
(Monanghan, 2011)
Sources of finance
The business will get money from various places convenient to the owner. The
decision to use money from the various sources come after researching for the best and
affordable finances. The business will get money from loans offered by business
development banks. The banks offer loans after reading the business proposal and identifying

AUSTRALIAN MEMBERSHIP COFFEE CAFÉ 20
the ability to repay the loan. Therefore, the owner will take the business plan to the bank for
qualification of a loan (Terje Slatten, 2009).
Additional sources of finances include personal savings and borrowings from friends.
The finances fill the financial gap left after securing bank loans. The borrowing from friends
and personal savings represent a source of finance that does not accrue interest. Additionally,
the personal savings does not require that the owner make payments (Suranovic, 2010).
Value estimation
The business values at approximately 8450 dollars, which counts for the asset
including assets, plant and equipment of the business. The café requires finances to buy the
assets, which will ensure that the business runs successfully. The available funds collected
from personal savings and borrowing from friends add up to 5000 dollars. Therefore, the
3450 dollars deficit should come from the investors. The investor’s funds will go towards
buying more assets and paying rent for the business premises. The investor will get a
percentage of the business shares in exchange for the investment finances. Additionally,
investors will earn dividends from the profits earned by the business. The investor has the
option of withdrawing finances through the sale of shares to another investor or to the
business. In the event of winding up the business, the investors will receive a refund of the
amounts invested (Terje Slatten, 2009).
Action plan for the setup year and the following two years
During the set-up year, the business will establish operations in Sydney. The café will
also strive to make customers by cultivating for customer loyalty and informing of the
population about the existence of the shop. Additionally, the business will get the most
qualified employees to offer high-quality services to the customers.

AUSTRALIAN MEMBERSHIP COFFEE CAFÉ 21
In the next two years, the business will establish as a strong brand able to beat the
competition in the market. Moreover, the café will pay the loans owed to various parties and
pay the dividend to investors holding shares (Tyler Cowen, 2014).
References
Baack, D. (2017). Organisation behaviour (2nd ed.).
Chalmers Brother, V. K. (2015). Leadership Excellence. New Possibilities Press.
Ferrell, O. M. (2017). Marketing Strategy. Texas: South-Western Cengage Learning.
Giovani J.C, R. S. (2010). International Journal of Operations. Operations and Production
Management.
Gregory G Dess, G. M. (2015). Strategic Management: Text and Cases. McGraw-Hill
Education.
Grunig, J. (2013, 9 27). Excellence Theory. Retrieved from Excellence Theory Website:
http://excellencetheory.wordpress.com
James Michael Stewart, M. C. (2015). Certified Information Systems Security Professional.
Sybex.
Johansson, J. K. (2010). Global Marketing Strategy. Wiley Online Library, 1(1), 5.
doi:10.1002
Kannaiah, D. S. (2015). Consumer Perception on Online Shopping. Journal of Marketing
and Consumer Research.
Maloney, J. (2015, July 20). Entrepreneur. Retrieved from Entrepreneur Website:
https://www.entrepreneur.com
Mandviwalla, M. (2015, March 19). Fox School of Business . Retrieved from Fox School of
Business Website: http://www.community.mis.temple.edu
Mankiw, G. (2017). Principles of Economics (8th ed.). South-Western College Pub.

AUSTRALIAN MEMBERSHIP COFFEE CAFÉ 22
Marone, F. (2013). Fault Lines in Global Jihad: Organisational, Strategic and Ideological.
Mizrahi, J. (2010). Fundamentals of Writing for Marketing and Public Relation. New York:
Business Expert Press.
Monanghan, P. (2011). Sustainability Accounting. Management and Policy Journal.
Nicolas Bacon, T. R. (2010). The Human Resource Management. Sage.
Nigel Slack, S. C. (2010). Operations Management. Madrid, Spain: Pearson.
Noe, H. (2014). Human Resource Management. Mcgraw Hill Education.
Perks, R. (2017). Quality Control Systems and Customer Satisfaction at Tesco. Retrieved
April 21, 2018, from Uk Essays: acdemic.mintel.com
Rajesh K. Singh, S. K. (2010). Management Research Review.
Ralph M. Stair, G. W. (2015). Fundamentals of Information Systems. Course Technology.
Robert J. Anderson, W. A. (2015). Mastering Leadership. Newyork: Wiley.
S.K Breja, D. B. (2011). The TQM Journal.
Singleton, R. A. (2017). Approaches to Social Research. Oxford University Press.
Suranovic, S. (2010). International Trade: Theory and Policy. Washington: Saylor
Foundation.
Terje Slatten, M. M. (2009). Managing Service Quality.
Tyler Cowen, A. T. (2014). Modern Principles: Macroeconomics (3rd ed.). Worth Publisher.
William Stallings, T. C. (2012). Business Data Communication. Pearson.