Business Plan for Split Beans Cafe

This business plan discusses the details of Split Beans Cafe, a new coffee house opening in Oxford Street, London. It covers the market analysis, competitor analysis, marketing and pricing strategies, and financial requirements. The cafe aims to attract customers with its unique combination of live streaming of sports matches and musical bands, along with a variety of cuisines.

BUSINESS PLAN

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY ..................................................................................................................................3
The Business Detail.....................................................................................................................3
Macro-Environmental Overview................................................................................................3
Market & Industry analysis.........................................................................................................4
Competitor analysis.....................................................................................................................6
Marketing & Pricing Strategies...................................................................................................6
Operations Plan...........................................................................................................................7
SWOT Analysis..........................................................................................................................7
Financial requirements................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
A business is an entity which undertakes commercial activity in order to earn profit and
make its presence in the market. The goodwill of the business is dependent on how the enterprise
is working in the market. A newly start up business needs requisite resources to achieve its
objective by battling the competition prevailing in the market. For doing so, it must come up
with some new creative and innovative idea in order to fulfil the needs and wants of the
customers (DeNoble and Zoller, 2017). This report shall illustrate a new business idea which is a
Cafe in the main street of London. The name of the business of Split Beans cafe with an
innovative idea of having couches to stream live match and musical band. This business plan
shall cover all the factors which may affect its working in the new market.
MAIN BODY
The Business Detail.
Split Beans Cafe is a new coffee house which will be opening at the Oxford Street,
London. As London is known as the most beautiful and highly visited tourism place, the food
and beverages are the limelight of it. This restaurant shall have a speciality of live streaming of
the musical band and the sport matches which can be enjoyed by the people by having a sip of
coffee and the food. The Split beans cafe shall have the multi cuisine which will cover India,
Continental, Italian, Mexican and other cuisines in order to attract the customers with different
preferences. The Cafe targets the
Macro-Environmental Overview
The macro environment of the Split beans cafe shall be done with the help of the model
which is called the PESTEL analysis. It is a tool which is used to analyse the macro environment
factor which includes the following factors (Gabler and et. al., 2017). In context to Split Beans
cafe, the PESTEL analysis is illustrated below- Political- As Split Beans cafe is being newly launched in the city of London, it is
important that it must overlook the political stability and environment so that it does not
face any hardship. Economic- The cafe is being opening in a tourist hub which is London. It is important
that it have economic stability in the country where it is going to operate and invest. For
the business to grow and succeed, it is important that it must have economic stability and

have sufficient resources to adopt the economic changes like inflation, fluctuation in
foreign exchange and many other. Social- The needs and preference of the people changes every now and then. Every
customer comes from different background and culture so its preference is also different.
For satisfying all customers with different preference, the Split beans cafe provides
multiple cuisines. Technological- The market where the business operates nowadays are all technological
driven in order to work with the same pace as other competitors are doing. The Split
beans cafe have advanced technology equipments which will help it to serve the
customers quickly and easily. This will also help in serving the customers with best
experience. Legal- In order to ensure smooth running, it is important to comply with all legal rules
and regulations. The split beans cafe must ensure that it comply with food and hygiene
regulations sop that they do not face any hardships.
 Environmental- As people have nowadays become environmental conscious so to attract
the potential customers, it is important that Split beans cafe comply with environment
regulations so that it cannot face any consequences. The plastic packaging must be
prevented in order to take care of the environment.
Market & Industry analysis
In order to identify the target market and segment them, a STP model is being used. It is
the segmentation, targeting and positioning model which identifies the target market by
segmenting them into common groups and position them in the eyes of the customers.
Segmentation is the process of grouping the whole market into groups on the basis of
common characteristics (Galai, Hillel and Wiener, 2016). In context to the Split beans cafe, the
cafe is segmented on the basis of demographic factor which includes gender, age, etc.
Targeting is a process to identify the attractive segment audience from the whole market.
In context to Split beans cafe, the target market shall be youth and middle aged people of the age
18- 40 who shall enjoy the cup of coffee and various cuisine by enjoying the live musical band
and sports matches.
Positioning is referred to as the process which involves positioning the business in the
minds of the customers (Hopp and Greene, 2018). The Split beans cafe shall position itself by

social media platform and different marketing campaigns so that it can attract large potential
customers.
By targeting the customers of young and middle aged, the business shall grow as it
provides such product and services which are found at one common place. The food, beverages,
live musical band and sports matches all under one roof is a perfect combination which will help
Split beans cafe to grow and succeed in the market.
The industry where this business shall operate is the hospitality sector where the
competition is high. Porters five forces is a tool which helps in analysing the industry and take an
insight of the competitors (Jukova and et. al., 201). In context to Split beans cafe, the analysis of
Porter's five forces is discussed below- Threat of new entrants- It is concerned with the new entrants which may erode the
profitability of the business. The power of this force is moderate as this Split beans cafe
is a combination of products and services which will definitely attract more customers
and new entrant may not be able to come up with this unique combination. Threat of substitute- It is concerned with the close substitute which is existing in the
market. The power of this force in context to Split beans cafe is low as the customers will
get all dishes according to their preference and the unique service will add a cherry to the
cake. Bargaining power of suppliers- It involves the easiness of the suppliers to drive their
prices up. In context to Split beans cafe, the power of this force is high as the business is
newly start up which have fewer option to deal with so their impact is high. Bargaining power of customers- It involves the easiness of the purchasers or buyers to
increase or decrease the prices. In context to Split beans cafe, the power of this force is
moderate as the competition exist in the hospitality industry but this business offers best
high quality product and service which will help to lower the impact of this force on the
business.
 Competitive rivalry- It is concerned with the capability and number of competitors which
exist in the market. The power of this force is moderate as there are end number of
competitors in the market in this industry but the combination of multiple cuisine and live
musical band will help in making distinction between the Split beans cafe and its
competitors.

Competitor analysis
The competition in the hospitality industry and specifically in food and beverage sector is
quite high where there are numerous competitors which exist in the market. The competitors of
Split beans cafe are discussed below-
kaffeine is a cafe situated at just 5 minutes away from the Oxford Circus. It is just 5
minute walk away. The cafe serves amazing coffee and is inspired from the culture of the
Australia and the New Zealand. The location of the cafe is that such point which attracts large
customers and they pay their visit. The cafe offers sit in service and takeaway. It has limited
menu and amazing coffee (Katz, 2018).
Terry's cafe is situated in London which is back with all covid- 19 norms. It offers unique
food items and coffee keeping in mind the needs of the customers. The cafe is opened from
Wednesday to Sunday for limited time. The loyal customers feel they offer the best and
delightful food to them.
Split beans cafe is situated at the Oxford street of London where the customers can easily
be attractive as it is one o the busiest roads in the city. This cafe is a unique combination of the
coffee, multiple cuisines and the live streaming of sports match and musical band. All these
things are provided under a single roof and is differentiated from its customers on the basis of its
taste and the quality. This combination shall attract the customers and the tourist from all around
the world.
Marketing & Pricing Strategies
In order to analyse the marketing and pricing strategy of the Split beans cafe, the
marketing mix tool shall be used. It is a strategy which helps the business to achieve the
marketing objectives (Tipu, 2019). This strategy will help in knowing the marketing and pricing
strategy of the Split beans cafe. The 7Ps of marketing mix in context to Split beans cafe is
discussed below- Product- It is the item which the business serves its customers. The Split beans cafe shall
offer multiple cuisines to its customers which have a unique service of live musical band
and sports streaming. Price- It is the value which the customers shall pay for availing the product or the
service. The Split beans cafe shall have the competitive strategy in order to work with the

competitors and attract the potential customers and take over the market share of the
competitors. Place- The Split beans cafe shall have the physical cafe at the Oxford street and a take
away service for the customers too. It shall also welcome the online orders and serve
them with home delivery.
 Promotion- It includes the promotional tactics which the business shall undertake in
order to communicate its offering. The Split beans cafe shall promote their business on
social media platform where the youths are 24*7 available and by the traditional method
of advertisement through newspaper.
Operations Plan.
Operational plan for Split Beans cafe is on the basis of the preference of the consumers so
that the business can fulfil their demands by their replenishing dishes. The objective of the Split
Beans cafe is to offer a space to its consumers where they may come anytime and avail the
delicious cuisine. Hence, the Split Beans cafe's operational plan is compromised of such type of
services. From the variety of cuisines available on the menu of the cafe, the customers may order
from it and the employees of the cafe shall transform the dish into a reality. Moreover, the cafe
has its own conventional ovens and other equipments which gives the Italian food an authentic
taste of the Italy. This cafe shall be found by the tourist and people at the Oxford street of
London. The business shall also be expanded online where the customers can order multiple
cuisines from different nations and home delivery shall be given to all.
SWOT Analysis
Strengths Weaknesses
 The major strength lies in its menu
which offers multiple cuisines to attract
customers.
 The location of the restaurant is another
strength.
 As the business is newly launched, it
may face problem in capturing market
share.
 Sustainability is another weakness
where the cafe may face problem.
Opportunities Threats
 The cafe must offer such offers and  The major threat is competitors which

discounts which can attract customers.
 It shall come up with such marketing
activities which can promote business.
may become hurdle in capturing large
market.
 The political instability may become
another threat.
Financial requirements
Split Beans cafe is offering coffee and food items of different nations and its statement
of financial requirements has been illustrated below:
 Equipment’s = £ 2000.
 Furniture = £ 1500.
 Selling price per unit = £50.
 Fixed cost = £ 1500.
 Premises (will be acquired on rent) =
 Security deposit = £ 100.
 Advance rent for 1 month = £ 100.
 Estimated cost of sales = £10 per unit.
 Variable cost = £3 per unit.
It has been forecasted after analysation of the market trends and others factors too that might
impact the sales of the Split Beans Cafe where it can successfully generate the sale which is
equivalent to 200 units per month. On the basis of this forecasting, the cost statement is
illustrated below-
Particulars Calculation Amount
Sales £50*200 £10000
Less: variable cost £3*200 £600
Contribution Sales-variable cost £9400
Less: fixed cost £1500
Less: estimated cost of sales £10*200 £2000
Net profit £5900

From the above table, following is profitability and break-even analysis,
Break even analysis- It is that volume of the sales at which the business has no profit or no loss.
It is the neutral situation. To earn profits, the company have to surpass this point of sale
(TOMASSONI, 2019). In given case, break even point is:
Break even point = Fixed cost/ (selling point – variable cost)
= 1500/(50-3) = 31.91 units or 32 units (approx.)
Profitability analysis= From the above calculation, it is stated that, company is earning profit on
168 units (200-32). Therefore, profit is earned on these units only.
Net profit margin for the organisation = net profit / sales*100
= (5900/10000)*100 = 59%
CONCLUSION
It is concluded from the above report that businesses are the commercial activity which has a
single motive to earn profit. This business plan is regarding the opening of new cafe Split beans
cafe which shall be opened at the Oxford Street of London. The PESTEL analysis and porters
five forces will help the business to analyse its macro environment and the marketing mix shows
the marketing and pricing strategy. In order to analyse the micro environment, SWOT analysis
shall be used.

REFERENCES
Books and Journals
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Gabler and et. al., 2017. Developing an environmentally sustainable business plan: An
international B2B case study. Corporate Social Responsibility and Environmental
Management. 24(4). pp.261-272.
Galai, D., Hillel, L. and Wiener, D., 2016. How to create a successful business plan: for
entrepreneurs, scientists, managers and students. World Scientific.
Hopp, C. and Greene, F.J., 2018. In pursuit of time: Business plan sequencing, duration and
intraentrainment effects on new venture viability. Journal of Management
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Jukova and et. al., 2019. Planning a new business: typical mistakes of a business plan in the
service sector. Journal of Environmental Management & Tourism. 10(3 (34)). pp.441-
447.
Katz, J.A., 2018. The business plan: reports of its death have been greatly exaggerated. In Annals
of Entrepreneurship Education and Pedagogy–2018. Edward Elgar Publishing.
Tipu, S.A.A., 2019. Business plan competitions in developed and emerging economies. Journal
of Entrepreneurship in Emerging Economies.
TOMASSONI, M., 2019. Development of a business plan for the expansion of CESI's operations
on the IFI hydropower market.