Coffee Shop Business Model Canvas

This assignment focuses on developing a business model canvas for a new coffee shop venture in Australia. It examines the coffee market, customer preferences, and segments the target audience (teenagers and young working professionals). The analysis utilizes the Business Model Canvas framework to outline key aspects such as value proposition, customer relationships, channels, revenue streams, key activities, resources, partnerships, and cost structure. The aim is to provide a comprehensive model for launching a successful coffee shop based on market demand and customer insights.

Running Head: Business Planning 1
Business Model Canvas for New Venture

Business Planning 2
Contents
Introduction......................................................................................................................................3
New business venture......................................................................................................................3
Pricing factor................................................................................................................................4
Business model................................................................................................................................4
Key partners.................................................................................................................................5
Key activities................................................................................................................................6
Key resources...............................................................................................................................6
Value proposition.........................................................................................................................6
Customer relationships.................................................................................................................7
Channels.......................................................................................................................................7
Customer segments......................................................................................................................7
Cost structure...............................................................................................................................8
Revenue streams..........................................................................................................................9
Conclusion.......................................................................................................................................9
References......................................................................................................................................10
List of figures
Figure 1: Business model canvas...................................................................................................4
Figure 2: Key activities..................................................................................................................6
Figure 3: Customer segments.........................................................................................................8

Business Planning 3
Introduction
Entrepreneurship is crucial for starting a new business venture in the market. Today,
entrepreneurs are focusing on starting the business at the global level for getting more and more
profit. Entrepreneurs develop and generate new ideas for the business venture at global level.
There is well known that the idea of business is the starting of the business procedures. A new
business idea is helpful the entrepreneurs to discover various chances and capability to start up
the new venture beneficially (Dudin, 2015). So, this report focuses on the new business idea for
the new venture in the market. The report is focused on the new business venture of a café along
with the effective business model. New business start-up is based on the business model canvas
which is very effective for the success of business venture. Basically, this report is all about
running a new and creative coffee shop and meets the needs and requirements of the customers
in the Australian market. Objective of this report is to understand the role of business model
canvas based on the analysis of market information and essential aspects (Toor & Dhir, 2011).
New business venture
This report describes a new business venture i.e. a café. Name of this café would be
Culture Coffee Bar. There are many coffee shops in Australia but the current coffee shops only
meet the basic demand of the customers i.e. demand for the coffee and various drinks. In other
words, consumers generally go to the coffee shops as they do not have time to prepare coffee. In
many shops, there are no specialists for retaining the consumers. Their sets of choices are simple
including fundamental food items such as packed drinks and refreshments and iced coffee. Some
coffee shops try to improve the effective image by providing some additional services such as
live music and games but they are not enough to improve the image and to retain the customers.
So, by analyzing the enormous demand of the customers in the market, Culture Coffee
would spend huge amount of capital in creating positive image of the café. For this manner,
company would focus on creating relaxing atmosphere for the customers along with the core
products of food, beverages and other services. Because of the value of time in the current time,
the café would offer the service of free delivery of the products so that the consumers can enjoy
the products in office timings also. By this service, café would be able to maximize its ability to
diversify itself among the customers in the coffee market.

Business Planning 4
Pricing factor
Like other coffee shops in Australia, main revenue for Culture Coffee shop would come
from the drinks and coffee for meeting the needs of the customers. Along with this, café will
offer many different beverages to the customers. So, price of the products would be set as the
high level pricing but affordable for the customers in the industry. Apart from the drinks and
coffee, the customers will also get variety of products i.e. snacks, food, cakes and live music
nights in café.
Business model
Based on the business model canvas theory, this model will be applied in the new
business venture along with its nine building block structure. This model would effectively able
to achieve the goals and objectives of the company. The applied business model in the Culture
Coffee bar will be the presentation of the services of the company. The business model will
provide the understandings of who company serves, what activities it is carrying out, from where
it will get its suppliers and how to minimize the cost to generate more profit in the business
(Osterwalder & Pigneur, 2010). So, for the café Culture Coffee Bar, the business model canvas is
described below.
Figure 1: Business model canvas

Business Planning 5
Key partners
First and important part of the business model canvas is identifying key partners for the
café. Culture coffee bar will always focus on the food safety to achieve sustainable development
in the market. For this manner, company would make reliable partners. Company would make
partners to the leading coffee brand in Australia to get fresh and healthy products. To design the
furniture, a furniture company would be second partner (Filet, 2013).

Business Planning 6
Key activities
There would three major activities of the café for achieving growth and success in the
market. Those key activities are marketing, selling and supporting. In the marketing activities,
there would be drinks and food preparations, delivery of food and cleaning and decorating café.
Selling activity would include training, sales call and advertisements on various platforms i.e.
magazines, newspapers, and Facebook. Support activity would include hiring people for the
administrative work and outsourcing brands and singers for café.
Figure 2: Key activities
Key resources
For achieving significant growth and success, there are two most essential resources i.e.
value proposition and activities which including well skilled employees and inside design of the
café. The employees and staff of the café will be trained in the in the proficient manner so that
they can serve the customers in the better way. They will wear professional uniforms and have
the knowledge of foreign languages. Further, company will also invest in the furniture and
interior design of the café to build up an Australia style coffee shop for the entertainment and
enjoyment. This would create a positive image of café among the mind of consumers
(Gavrrilova, 2014).
Value proposition
From the perspective of the potential customers, café will provide such atmosphere that
will be enjoyed by the customers. Customers could enjoy variety of beverages i.e. drinks, fast
foods and cakes served by the trained employees and staff in the café. Café will provide such
atmosphere which would make the customers relax after hectic schedule of work or study.
Further, Café will provide various quiet spaces where businessmen can make their meetings and
appointments. Along with this, café would also conduct some live music nights to generate more

Business Planning 7
activities for the potential customers. By all these activities, customers will have new experience
with the relaxing place (Sinfield, Calder, McConnell & Colson, 2011).
Customer relationships
It is well known that effective relationship with the customers is very important for the
success of the business. In terms of the importance of the relationship with the customers,
Culture coffee café will plan to provide coupons and VIP cards to the customers so that they
would get for their allegiance towards the products (Mason, 2015). The VIP cards with the
special offers will be distributed to the loyal customers who would come at least once in the
week. Further, less regular clients will also receive 10 to 25% off coupons and discounts. It is
believed that this strategy would be helpful in maintaining customer loyalty and improve the visit
facility (Teece, 2010).
Channels
In terms of distribution of products, there would be two ways to use the products of café
i.e. in store and delivery of products. Café will suggest the customers to visit on the store and
order their products. This would generate opportunity for the café and employees to provide
better quality experience to the customers. Further, if the customers are busy and demand for
their desired products, then free delivery service or delivery with the extra charges would be
provided to transport the products to the customers’ hand. The time of the services can be
shortened as much as possible to provide guaranteed quality products (Burns, 2014).
Customer segments
The potential customers for the café will be identified based on the age and profession. In
terms of the age of potential customers, the café would serve the customers from 15 years old
upwards. Further, in terms of profession, the consumers are differentiated from the students,
employees, businessmen and performers. The reason is that the students spent lots of time
hanging around in the coffee shops after their schools and colleges. Further, employees and
businessmen have high and middle income and they are highly demanding for the coffee shops
where they can settle down, make their activities and enjoy the drinks. Located in Australia, the
café would be oriented towards providing services to the artists who make high income and need
quality products (Fifield, 2012).

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Figure 3: Customer segments
It should be noted that the target customers have different styles and habits. It is observed
that in the age of 15 to 22, there are students of high schools, colleges and universities. Although
these people are not earning money but they get money from their parents so these consumers
have high demand of coffee after their school and colleges. The customers will be approached by
the internet and social media platforms. Other target customers are the employees and business
people who are working full time to create their money. These customers are willing to pay for
their desired product. These customers will be attracted by the TV commercial, internet and
magazines. Further, there are artists who will be attracted by the company. Advertisements in
newspapers and magazines will be helpful and effective to approach those customers (Armstrong
& Cunningham, 2012).
Cost structure
The cost of the rent would be responsible for the crucial part of the operating cost of the
company. Along with this, there are other operating costs including raw material, staff,
outsourcing and marketing of the products. These costs would be estimated in the financial part
of the café.

Business Planning 9
Revenue streams
Key revenue stream of this new venture would be generated by the purchases of the
customers i.e. beverages and varieties of coffee such as Espresso, Flat White, Macchiato,
Americano, and Cappuccino which are the core products of café. Along with this, café will also
collect the amount of revenue by the event of live music on every weekend. Further, there will be
additional services i.e. appointing or meeting area which would be free of charge. It is expected
that the customers segments i.e. teenagers having age of 15 to 22 and working people having the
age of 22 to 40 would bring about 35% to 45% out of total revenue. Meanwhile, 10% revenue
from the customers having age above 40 would also be generated (Baraban & Durocher, 2010).
Conclusion
This report focuses on the importance and role of the business model canvas in the new
business venture. From the above discussion, it is observed that new venture of café needs to
prepare its business model canvas for getting high level of growth in the market. There are nine
blocks in the business model canvas and all the blocks have significant role in the success of the
new venture. Main objective of this report is to create a new business venture and formulate
business concepts with the business model canvas theory. Second objective was to provide the
overview of how the business model canvas would be helpful to achieve the desired goals and
objectives in the new business venture. This report provides brief overview about the coffee
market and the requirements and preferences of the customers. Based on the analysis, target
market is decided for the café. Business model canvas is the important part of the study to
analyze the detail of the company along with the understanding about the new venture. In
conclusion, this report provides the theoretical information on formulating the business model
for new business venture of coffee shop based on the huge demand of the coffee in the
Australian market.

Business Planning 10
References
Armstrong, G., & Cunningham, M. H. (2012). Principles of marketing. Australia: Pearson
publication
Baraban, R. S. & Durocher, J. F. (2010). Successful Restaurant Design. USA: John Wiley &
Sons
Burns, P. (2014). New venture creation: a framework for entrepreneurial start-ups. USA:
Palgrave Macmillan
Dudin, M. N. (2015). The Innovative Business Model Canvas in the System of Effective
Budgeting: Asian Social Science. 11 (7). 290-296
Fifield, P. (2012). Marketing strategy. (2nd). Berlin: Reed educational & publishing Pvt Ltd
Filet, E. (2013). Conceptualising Business Models: Definitions, Frameworks and Classifications:
Journal of Business Models. 1 (1). 85-105.
Gavrrilova, T. (2014). Modern Notation of Business Models: Visual Trend: Foresight-Russia. 8
(2). 56–7
Mason, H. (2015). Trend-Driven Innovation: Beat Accelerating Customer Expectations. John
Wiley & Sons
Osterwalder, A. & Pigneur, Y. (2010). Business Model Generation. New Jersey: John Wiley &
Sons
Sinfield, J. V., Calder, E., McConnell, B. & Colson, S. (2011). Corporate Strategy: How to
identity new business models. MITSloan Management Review.
Teece, D. J. (2010). Business Models, Business Strategy and Innovation. Long Range Planning.
43. 172-194
Toor, T. P. & Dhir, T. (2011). Benefits of integrated business planning, forecasting, and process
management: Business Strategy Series. 275-288