Starting a Coffee Shop in London: Market Analysis and Financial Feasibility

Business

Table of Contents
INTRODUCTION...........................................................................................................................3
Product/Service Selected.................................................................................................................3
Justification of the value of the opportunity being developed.........................................................3
An assessment of the external environment in relation to the opportunity.....................................4
An analysis of limiting and enabling factors in relation to the exploitation of the opportunity......7
A consideration of the major functional elements of the business including Production,
Marketing and Financial Strategy/Plan...........................................................................................7
Projected profit and loss..............................................................................................................9
Projected balance sheet................................................................................................................9
Conclusion.....................................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
New business ideas help an entrepreneur to increase profits and sales. In this report, a new
business is initiated. It is a coffee shop which will start in London. There is market analysis and
financial feasibility in this report.
Product/Service Selected
The new service presented in this report is coffee shop that will be started in London. Starting a
coffee shop can be done in three ways:
 Invest in a franchise. Try a franchise to get started on a pre-built corporate plan, where
the majority of the big business decisions can be made for you. For a premium, you will
be given a turnkey company in a region determined by the franchise provider.
 Purchase an entire business. Another choice for obtaining a turnkey operation is to
purchase a shop that is for rent or in need of renovation. Finding a viable enterprise for
sale, on the other hand, is no simple feat.
 Start from the beginning. Starting a company from the ground up takes the most time and
resources, but it still has the most stability and opportunities for profit.
Justification of the value of the opportunity being developed
The Coffee Roaster's key goal is to have appropriate demand development and make strategic
adjustments based on the needs and analysis of the café. They want to specialize in the industry
to ensure that their coffee services in central London are of the highest quality. So that they can
distribute it around various zones and expand the demand in the future.
Keys to Success - There are a variety of ways and keys to success that can assist in the formation
and completion of a company's fundamental structure (Bhadury and et.al.,2017). It may be linked
to the growth and needs of local addicts, as well as an attempt to provide a daily break that is
fundamentally linked to successful growth and accomplishment of the caliber.
Both of them are very costly and are linked to potential development and achievement. However,
none of them give their customers an appropriate method or environmental advantages.
Furthermore, customers at Coffee Roaster will come in and sit without paying any additional
fees, which is beneficial for attracting more customers and ideal for the company's responsible
improvements (Heo, Kang and Kim, 2018). The coffee roaster's industry competitors will help
them adopt more competitive tactics to develop long-term growth plans, which can help the

owner maintain the business for a longer period of time. It will be beneficial for them to analyse
demand growth and profit in the café and make effective decisions.
There are a slew of highly successful and growing rivals for the café, including CaffeNero, Art
Southwark Café, Plam Vaults, and Biscuiters. Both of them are closely linked to productive
growth and accomplishment in the café sector, and they attract the majority of the important
customers who are crucial to the new café's success.
Both of them are very costly and are linked to potential development and achievement. However,
none of them give their customers an appropriate method or environmental advantages.
Furthermore, customers at Coffee Roaster will come in and sit without paying any additional
fees, which is beneficial for attracting more customers.
An assessment of the external environment in relation to the opportunity
The pestle analysis is a framework which is used by the businesses to identify the force of macro
environment factors which can affect the working of the company. In context to a coffee shop it
is illustrated thereunder
• Political- It is concern with the political scenario and background of the state where the
business operates. In relation to a coffee shop, the main political factor that can affect it is the
pandemic of COVID-19 because it resulted in national lockdown due to which there is change in
working styles and policies and the businesses have also been affected. So the coffee shop does
not have more opportunity in today's time.
• Economic- It determines the performance of the economy which can directly affect
functioning of company. In relation to the coffee shop, any rise in the inflation rate can affect the
price of the offering of the coffee shop. This may result in losing the customers or even failure to
attract them.
• Social- It includes those factors that scrutinises social environment of a market. The
coffee shop is one of the most preferable place for the millennials so the demand for its offering
may tend to rise, thereby giving good business to the coffee shop.
• Technological- It involves those factors that relates to innovation in the technology which
may cause the impact on operations of industry. The coffee shop uses such equipment’s that are
technologically advanced such as coffee machines, etc. which helps it do serve the customers
with enhanced services, thereby giving them better customer experience.