Business Plan for Jake's Coffee House

This business plan outlines the proposed new business idea for Jake's Coffee House, including an evaluation of the external environment, discussion of competition and competitive advantage, and suggestions for the target market. It also includes a budget and break-even analysis.

Business Plan
1

Contents
Overview of proposed new business idea....................................................................................3
Evaluation of external environment by using PESTLE framework............................................5
Discussion of competition and what the competitive advantage is.............................................7
Suggestion for proposed target Market........................................................................................9
REFERENCES..............................................................................................................................11
2

Overview of proposed new business idea
Jake’s coffee house is based on the new business idea that will be go to place for coffee
lovers. Therefore, it will make a plan to sever the highest quality coffee with snacks in a trendy
and provide comfortable atmosphere.
Another way, it will focus on the innovative thing in the business related herbal coffee,
which will attract more consumers because of Covid-19 in global world. Due to Covid-19, many
consumers are preferred to choose online delivery services so that Jake’s coffee house will
implement innovative idea to provide the product delivered in homes, offices etc. In this way,
Jake’s coffee house will provide the herbal coffee facilities in customer’s location. Jake’s coffee
house will excellence consumer service in order to build a steady repeat customer base.
Therefore, it will be proposed this kind of innovative idea within Jake’s coffee house (start-up
enterprise).
Main products will be considered higher margin such as gourmet coffee items related to
lattes, cappuccinos and variety of snacks. In recently, it has been rapidly increasing the healthy
issue due to Covid-19 (Fichter and Tiemann, 2020). Thus, it is always maintain a proper hygiene
and include healthier alternative.
Strategically Jake’s coffee house will be located in prime areas or place. It became easier
for delivered the product services within few minutes. It intend to cater to young employees by
giving the better options. Workers are mostly very schedule that needs to give order in their
offices. At that time, Jake’s coffee will track the location for consumer and delivered the item in
proper manner.
Objective- The purpose of innovative business idea is to increase the demand of start-up
enterprise. In order to obtain financing and help them to define who, what and how new business
ideas. In this way, it will clear way to cut plan and operations Map.
3

Key to success- There are certain kind of key success in the Jake’s coffee house business as
follows:
 Product quality- Owner of Jake’s coffee house think that consumer will appreciate food,
coffee based beverage. They must have to maintain high quality and value. In case,
identifying the any kind of inventory and make sure that it will turns over before serve
better good services.
 Marketing- it will need to target the potential audience who have early use service. while
the enterprise is located in central or accessible in prime location. Many people have been
introduced as neighbourhood surrounding and easily measured other competitors.
Evaluation of external environment by using PESTLE framework
Coffee enterprise is age old drink that is becoming very popular across the global world.
Originally made from mixture of various kind of coffee beans and hot water. This kind of
beverage can be found in different forms. it is one of become integral part of human society in
which increases demand according to the market trends (Capuerro, 2020). By using Pestle
framework, Jake’s coffee house enterprise will identify the external environment for
organization.
Political Factor- while primary production of coffee bean in different countries such as
South America, Asia. These are biggest consumer based of product which is located in Europe.
Before establishing a Jake’s Coffee house, which are highly dependent on the international trade
and operate. But at some point, Jake’s coffee house will faced the disagreement between
consuming geographies consumption and manufacturing. Due to political instability, it will be
increasing the production cost or price.
Economic Factor- In currently, growth of potential consumer income across the global
world. In this way, it allowed beverage to take as premium roles which have increasing profit
margin. Jake’s coffee house will implement innovative idea in their business regardless herbal
coffee product. It enable them to view coffee as healthy and affordable for every people. Thus,
4

Jake’s coffee house will consider both premium grade coffee sales but it dependent on the
current preference of consumers.
While there is also very strong surge towards team as consider alternative to coffee. In
recently, it will rapidly increasing the demand of coffee so that it help for Jake’s coffee house to
include innovation with business. Thus, launching a herbal coffee item during covid-19 situation.
Moreover, it also likely to keep remain maintain loyalty, trust among management and
customers.
Social Factor- in recent trends in society towards beverage is health conscious. Since,
coffee has been contained high amount of caffeine. That’s why, many people think or consider as
unhealthy drink. In this way, Jake’s coffee house will introduce as herbal coffee which includes
healthy raw materials in order to strong the immune system of people. it has leads to the demand
of herbal coffee in recent times. At some point, trends has been risen to decaffeinated item that
usually contain coffee seeds but with lower quantity of caffeine.
On the other hand, the demand for coffee based beverage such as herbal coffee, ice
cream. This primarily because of current social culture according to the choice of consumer in
different nations.
Technological Factor- Recently, advancement of modern technology has been a huge
boom to the coffee industry. Genetically, many engineers have been succeed to server a better
coffee drinkers around global world (Yrjölä, 2020). Additionally, include herbal ingredients
within coffee drinks which will be changing the regular taste of coffee. In order to maintain the
health and safety while improving immune system of human body. Modern technology has been
completely changing the preference for consumers. Jake’s coffee house will use digital
technology to track or monitor the location of client, delivered to the herbal coffee at homes,
office whenever client want’s.
In additional, consumer are now purchasing a coffee machine for homes and allows them
to brew coffee with most possible manner.
5

Legal Factor- Nowadays, many countries are placing a strict rules and regulation on the
large amount of caffeine that beverage can contain. That’s why, Jake’s coffee house will use
innovative idea in their business to provide herbal coffee and contain limited amount of caffeine
(Tran, 2020). It can help for consumer to increase their body immune system in proper manner.
Due to Covid-19, government also focused on the health condition for consumers while
providing the better facilities and services. In this way, it applicable certain laws which have
been placed in UK. As per demand of coffee in which remain to gain high advantage in global
world.
Environmental Factor- Jake’s coffee house will focus on the sustainable farming method
which become consider as major boon to the coffee beverage industry. Different kind of
irrigation land for coffee increase the various kind of hazardous situation or condition.
Sometimes, it is directly damage the environment. That’s why, it should include as modern
farming practices which is completely reduce certain kind of problem or issue.
Marketing Strategy
Jake’s coffee house will fortunate and try to access the current market research, gathered
large amount or information or data. Business owner has gained more knowledge of large
portion within potential marketplace (Mohd Yusof, 2020). It relatively identify both high and
low income groups which represent as prime opportunities for Jake’s Coffee house. Knowing
about the need or requirement of targeted group which will be maintained the demand of
consumer. Afterwards, it can easily targeted to fulfil all essential need or requirements.
Sale strategy-
Jake’s Coffee house will aim to provide the better quality for good and service according
to the demand. In recently, it will promote its innovative item in which attract more consumers
because they can build their immune system. Start-up will use different kind of sales strategy
such as pricing, which majorly attracts potential clients in UK markets. Usually, sales staff will
be concerned about the customer service and always ask client if they have identified everything
that they want.
6

On the other hand, Jake’s Coffee house will be using distribution channels such as
Facebook, Advertisement and twitter. These are considered the most important marketing
approaches that can easily targeting the potential consumers. Nowadays, large population have
been used the social media networks. That’s why, it become easier for enterprise to improve its
brand position within UK markets.
Discussion of competition and what the competitive advantage is
While there are currently situated into different coffee shops within the immediate areas or
place. It also provide the product delivery services to their potential consumers.
Jake’s coffee house Unique-
This is because when adopting innovative idea in which provide herbal coffee product
that will attract young workers. Who are becoming conscious about the health and safety, trying
to use herbal coffee and protect themselves from Covid-19 virus. Mainly a young worker are
going to the offices and interact with many peoples. At that time, Jake’s coffee house will
provide this kind of herbal coffee in their offices (HUTAŘOVÁ, 2020). This kind of innovative
idea will represent the uniqueness of Jake’s coffee house business in marketplace. By using
unique idea, Jake’s coffee house will gain more competitive advantage in market, Also maintain
a stable position effectively and efficiently.
Competitors-
In currently, there are different competitors to the Jake’s coffee house:
 Yi yang Café- it is one of the most interactive café and located into different areas.
Typically, originated from North Atlanta’s. Afterwards, it has been established different
branches but consider same theme in different café houses. Usually, this kind of
enterprise has provided the features as limited menu and regular way to offers hip-hop,
acid jazz and etc.
 New London café- it is another tough competitors which is located in the London, Also
provide the excellence extraordinary product and services. Nowadays, it will increase
7

demand of product while improving the current business position. New London Café is to
capitalise on even greater needs for in both casual restaurant and coffeehouse experience.
Competition advantage-
It refers to the factors that allows a Jake’s coffee house to produce excellence goods and
service. In order to provide better or more cheaply herbal coffee item than its rivals. Sometimes,
it allow for enterprise to produce an entity to generate more sales and superior margin compared
with its market rivals.
Jake’s coffee house maintain a competitive edge in the different ways:
 The facility of prime location that can put into close with different offices, colonies and
houses. Therefore, it become easier for staff members to deliver herbal coffee within few
minutes.
 Jake’s coffee house will create as interactive infrastructure and allow them flexibility in
term of entertainment option, which make it attractive to large number of population.
Suggestion for proposed target Market
Jake’s coffee house will appeal to the other professionals which residing into targeted in
town neighbourhoods. Sometimes, it will focus on the young workers, who have concerned
about the health condition. Therefore, it will be adopting the herbal coffee in their diet to be
strong their immune system (Sudiartini, Astari and Dhani, 2020). Jake’s Coffee house enterprise
will meet the underserved need on the basis of people. Targeted audience are basically choose
herbal coffee item so that Jake’s coffee house will be segmented in properly.
The market segment is largely made up of young people between age of 25 and 40.
Sometimes, it including children, professionals and graduate.
The market segments are basically identified in the form of multiple groups that can live
closest to Jake’s coffee house. Targeted audience have been chosen this kind of Jake’s coffee
house because it provide the new product such as herbal coffee. In recent times, it is consider the
important item which help to protect against any kind of virus. Therefore, many consumers have
preferred to select them. Generally, the most attractive group such as young children, older
8

people and professional workers. Jake’s Coffee house will have a provide better facilities.
Targeted audience will need regular way to improve their own immune system. In this way, it
has been suggested to propose target audience young people between ages of 25 to 40 in UK
marketplace.
Budget
To estimate the overall budget for Jake’s coffee house is approximately
$165,658.
Break Even analysis
The following table or chart will show break even analysis for Jake’s coffee house business.
Figure 1
9

REFERENCES
Book and Journals
Capuerro, M., 2020. Make Sure Your Business Plan Has An Internet Marketing Plan. Comdig
Journal. 1(1).
Fichter, K. and Tiemann, I., 2020. Impacts of promoting sustainable entrepreneurship in generic
business plan competitions. Journal of Cleaner Production. p.122076.
HUTAŘOVÁ, M., 2020. A Business Plan for the Café and Shop Kristián (Doctoral dissertation,
Univerzita Tomáše Bati ve Zlíně, Fakulta humanitních studií).
Mohd Yusof, N.Q., 2020. Fundamentals of Entrepreneurship (ENT300) Business Plan (Coffee
Shop).
Sudiartini, N.W.A., Astari, A.A.E. and Dhani, Y.R., 2020. The feasibility study of coffee house
business opportunity in COVID-19 pandemic: a case study at kulo coffee shop
pemogan. International Research Journal of Management, IT and Social Sciences. 7(5).
pp.38-45.
Tran, K.S., 2020. Porevol Coffee Shop: Case Study Research in Management Strategy for a
University Students’ Star-up Business. Journal of Advanced Management Science Vol.
8(4).
Yrjölä, A.S., 2020. Business plan for Company Mumpa Oy: Conducting a business plan for a
company yet to be established.
10