Business Plan for The Café Place

This business plan outlines the details of The Café Place, a cafe offering healthy food options and a gallery and bookshop. It includes information on the products and services, business premises, organization chart, and anticipated demand. The plan also discusses the market position, unique selling proposition, and pricing strategy.

Business Plan

BUSINESS PLAN SUMMARY
In the report business of café is proposed to be purchased which already running in profit
and is viable in nature. Total investment of £115000 will be made in the business. This amount
will be used to acquire café and renovation of same. There are some of risks like elevation in
price of raw items, failure to comply with rules which may heavily affect business. On these
fronts specific attention need to be paid. Entire business will be insured and employee’s
insurance will also be done in the business. Upper class and health conscious people will be
targeted in the business. Gallery and book shop will be in café which will make it different from
rivals. Serving of healthy food item will be major USP of the business. Such kind of things are
expected to make business more competitive.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
BUSINESS DETAILS.....................................................................................................................1
Products/services: .......................................................................................................................1
BUSINESS PREMISES..................................................................................................................2
Business location.........................................................................................................................2
ORGANISATION CHART.............................................................................................................2
Workers compensation:...............................................................................................................8
Public liability insurance: ...........................................................................................................8
Professional indemnity: ..............................................................................................................8
Business assets:...........................................................................................................................8
Business revenue: .......................................................................................................................9
Production process....................................................................................................................10
Suppliers ...................................................................................................................................10
Plant and equipment..................................................................................................................10
Inventory...................................................................................................................................10
Technology................................................................................................................................10
Trading hours............................................................................................................................10
Communication channels..........................................................................................................10
Payment types accepted............................................................................................................11
Credit policy..............................................................................................................................11
Warranties and refunds.............................................................................................................11
Quality control..........................................................................................................................11
Membership and affiliations.....................................................................................................11
Sustainability plan.....................................................................................................................11
Community impact and engagement.........................................................................................11
Risk constraints.........................................................................................................................11
Sustainability milestone target..................................................................................................12
Market research.........................................................................................................................12

STP of The Cafe Place..............................................................................................................17
SWOT analysis .........................................................................................................................18
Industry analysis........................................................................................................................18
The future.......................................................................................................................................20
Vision statement........................................................................................................................20
Mission statement......................................................................................................................20
Goals/objectives........................................................................................................................21
Action plan................................................................................................................................21
Succession plan..............................................................................................................................21
Planned succession type...........................................................................................................21
Successor details.......................................................................................................................21
Succession timeframe................................................................................................................21
Restrictions................................................................................................................................21
Proposed organization chart......................................................................................................21
Key personnel change table......................................................................................................22
Skill retention strategies............................................................................................................22
Training programs.....................................................................................................................22
Registration transfers................................................................................................................22
Change of business structure.....................................................................................................22
Other transfer............................................................................................................................22
Contract legal document...........................................................................................................23
Buy sell agreement....................................................................................................................23
Will/testament...........................................................................................................................23
Current insurance......................................................................................................................23
Contingency/ risk management tables......................................................................................23
Current market value.................................................................................................................23
Sale details................................................................................................................................23
Taxation ....................................................................................................................................23
The finances...................................................................................................................................23
Financial objectives...................................................................................................................23

Finance required........................................................................................................................24
Assumptions..............................................................................................................................24
Start-up cost..............................................................................................................................24
Balance sheet forecast...............................................................................................................24
Profit and loss forecast..............................................................................................................24
Expected cash flow...................................................................................................................25
Break even analysis...................................................................................................................26
CONCLUSION..............................................................................................................................27
REFERENCES..............................................................................................................................28

INTRODUCTION
A business plan is referred to as the written document which tends to focus on effectively describing the nature and type of the
business (Lehijoki, 2019). The business plan is also considered to be very useful in effectively carrying marketing and sales strategy
which helps in predicting the financial background in order top effectively predict the projected profit and loss statement. This study
will focus on effectively determining the business plan with the range of products and services offered by the company. This study
will focus on effectively focus on creating a market research and also helps in predicting the finances and future requirements of the
particular business plan. This study also creates risk management analysis and helps in evaluating the succession plan.
The Café Place is a cafe which tends to offer great coffee, fine tea, healthy and nourishing bite rich in protein low in fat. The
Café Place is located in Port Melbourne. It tends to offer various healthier options on the menu in order to create gallery and
bookshops.
BUSINESS DETAILS
Products/services:
We are selling beverages and food and plan to expand our customer base by offering an expanded (healthier options) menu and
create a gallery and bookshop. The products offered by the The Café Place mainly comprise of Entree, organic stir grill bowls, triple
Tacos, Flat bread pizza, EL Mexican Quesadilla, vegan and corn soup, Mediterranean egg soup, Pesto egg sandwich, Omlet, Crisp
bacon, healthy shakes, iced tea, hot drinks and beverages, fresh fruit juice, grilled tofu, bowl of sprouts, scrambled eggs, French toast,
spinach and mushroom sandwich, etc. There are various range of services within which an organization tends to carry out the business
operations mainly constitutes of vending, serving customers, marketing, advertising, managing finances, etc. in order to provide high
quality products and services to the Café Place. The anticipated demand is high for the particular range of products and services
because people are shifting towards health eating habits in order to improve their performance which leads to higher growth (Saito,
2018). There is high demand in organics, biodegradable packaged and organic food which results in attainment of high operational
goals.
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Currently the business is profitable, and we anticipate a growth in demand as we establish two more essential components of
our business model i.e. a gallery and bookshop which we believe will be popular with tourists from the nearby cruise ship terminal.
BUSINESS PREMISES
Business location
The Café Place is located on Bay street in Port Melbourne with appealing street frontage and a high volume of passing
pedestrian and vehicular/public transport traffic. Whilst we will plan to rearrange the current layout to facilitate the introduction of the
gallery and bookshop, we anticipate the size/space of the current premises being adequate. The appropriate size or space which is
required for the Café Place is around 1200 to 1600 sq. feet. This is considered to be an appropriate size for the comfortable seating of
around 60 to 80 customers on an average. Café Place is established in the Melbourne city in Australia, which in turn helps in catering
large number of customers from across the globe (Broderick, 2017). It is located near a tram station and international shipping
terminal, both of which are major landmarks in Port Melbourne. This way it helps in easily attracting the target customers towards the
cafe.
The Café Place is nestled amongst a thriving hub of retail outlets, restaurants and cafes. The retail traffic is consistent and
especially busy on weekends and holiday periods.
Buy/lease:
The premises for The Café Place are currently leased and we plan to negotiate a new lease term, initially for 3 years with an option to
extend to 5 years. We are currently dealing with an agent and plan to use the current lease agreement as a template with a few minor
variations to accommodate the changes we are going to introduce i.e. provisions for the establishment of the gallery and bookshop.
As the café is currently operating, the approvals are already in place in relation to the having a commercial kitchen etc.
2

ORGANISATION CHART
Organization chart is considered to be as an effective process which is very useful in graphically shoeing relation of one
official with another. It is very useful in showing relationship of one department over another.
Management & ownership
Names of owners:
Warwick Renton
John Lyons
Details of management & ownership:
The Café Place will be run by the CEO of the company. The key responsibility is to implement the mission, vision and
objectives of the cafe. The CEO of the company tends to focus on providing overall direction in order to attain organizational goals
and objectives. The CEO of the company also focuses on taking several corporate decisions and tends to focus on overall managing
operations and resources of the company (McMurray, Cross and Caponecchia, 2019). The CEO also tends to focus on evaluating the
success of the cafe in order to attain organizational goals and objectives.
As business partners, we will be running the business. We will both be involved in the day to day
running/operations/management of the business. The business share between the partners is 50%/50%.
My strengths lie in the more strategic and administrative management side of things and my role will be to oversee all aspects,
operation and management of the business. John’s strengths lie in the staff management side and his role will be to focus on the day
to day (primarily staffing, customer service, managing artists, menu format and options) operations and we have drafted/signed a
partnership agreement.
3

Experience:
Both business partners have general business management experience running a drone photography company for 7 years. I have
considerable management experience running a national union (8 years), formerly working as an airline pilot (20 years) and also
having experience in large scale event management (Sydney Royal Easter Show - 3 years).
John has management experience in running an Airbnb business (10 years) which also involves catering and organising entertainment
for small events. John has considerable management experience working as the Industrial Manager of a national union (8 years) and
working as an airline pilot (40 years).
Key personnel
Job Title Name Expected staff turnover Skills or strengths
General Manager Mr Warwick Renton 3 year’s experience in the industry
Well-developed management and people
skills
Business Manager Mr John Lyons 10 year’s experience in the industry
Well-developed management and people
skills
Cook Mr Bill Smith 10 years cooking experience in various
cafes and restaurants. Well-developed
cooking and organisational skills
4

Waitperson Ms Kerrie Tuncks 2 years customer service/waitering
Experience. Good customer relations
skills.
Waitperson Mr Tom Hung 2 years customer service/waitering
experience. Good customer relations
skills
Required staff
Required staff Skills and capabilities
Server The server must have effective communication
skills, customer service skills, high energy,
persistent, basic mathematics skills and team
work capabilities (Bilsland and AUSTRALIA,
2016).
Manager The manager must have excellent customer
service skills, effective interpersonal skills,
consumer awareness, problem solving skills,
communication skills, etc.
Hosts The host must possess professional skills,
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multitasking skills, high degree of energy,
customer service skills, etc.
Dishwasher Compliance with food safety procedure, time
management skills, ability to walk or stand for
at least 8 hours.
Kitchen porter Cleaning task skills, uploading equipments,
cleaning crockery, collecting and washing pans
and pots (Saito, 2018).
Job Title Quantity Expected staff turnover Skills necessary Date required
Warwick Renton will perform the general/office management duties. The human resource management of the company will
hire one host and one manager for The Café Place. The host must be hired till 21st Jan 2020 and the manager must be hired by 23rd of
Jan 2020. The host must have 2 to 3 years of experience. The skills necessary for the host are professional skills, multitasking skills,
high degree of energy, customer service skills, etc. The manager of the company will also hire manager who have experience of
around 5 to 7 years in a hospitality industry. The skills necessary for the manager are customer service skills, effective interpersonal
skills, consumer awareness, problem solving skills, communication skills, etc.
Recruitment options
The recruitment option selected for hiring the prospective staff i.e., hosts and managers can be hired through advertisement in
the local newspaper and advertisement on online social media platforms (Berendsen and Beckett, 2019).
Training programs
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Training programs carried out by the Cafe Place is mainly linked with the leadership training, time management training,
communication and soft skills training, quality training, etc. in order to improve the competency skills of employees within an
organization.
Skill retention strategies
The Cafe Place will focus on maintaining the physical and online documentation of the staff which in turn helps in stating
which task are to be performed by whom and what are their responsibilities in order to achieve set goals and objectives. The
responsibilities are effectively communicated to the staff members by emphasizing on carrying on regular meeting and face to face
communication. Internal process like on the job training and also tends to focus on giving them real time situation in order to
continuously keep a check on skills of the staff within the organization.
Products/services
Product/Service Price [Price including GST]
Entree $30
EL Mexican Quesadilla $20
Spinach and mushroom sandwich. $18
Pesto egg sandwich $25
Flat bread pizza $35
Triple Tacos $20
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Coffee $2
Soft drinks $1
Water $2
Market position
The Cafe Place are considered to be the budgeted goods in the market where they tend to focus on attaining competitive
position in the market (Lehijoki, 2019). The price set for the products and services are considered to be at competitive which helps in
maintaining effective market position.
Unique selling position
The Cafe Place have a competitive edge because it tends to offer high quality healthy food which is rich in protein and low in
fat. It tends to offer organic foods according to the needs of the customers.
Anticipated demand:
The customers of the Cafe Place visit the place every 1 to 2 weeks on an average. This in turn results in higher operational
goals, sales and profitability for the business.
Pricing strategy:
The pricing strategy is very useful in establishing the best price for the set products and services (Broderick, 2017). Economy
pricing strategy is an effective approach which helps in setting price of the products at a bare minimum in order to attain higher
profits.
8

Value to customer
The customers of the Cafe place consider products and services offered by the company as necessary which helps them to
remain fit and healthy.
Growth potential:
The anticipated growth in the future is by 8% every year because customers living of standard is changing and they are moving
towards more healthy eating habits.
Innovation
Research & development (R&D)/innovation activities
The Cafe place will carry out complete market research to introduce new healthy innovative and tasty products and services to
the customers (Montero and Balacuit Jr, 2018). The Cafe place will innovate their menu by offering range of healthy products.
Intellectual property strategy
The Cafe place will comply with intellectual property rights and will create a patent on their signature dish of the chef.
Insurance
Workers compensation:
Cafe has worker compensation insurance for the employees. It has employees above the threshold limit. It has taken insurance
in national employees insurance for compensation of employees in event of death or injury while working in the cafe.
9

Public liability insurance:
Cafe has also taken public liability insurance for the third party damages in terms of injury and death. The insurance is taken
for injury from consuming cafe products.
Professional indemnity:
Cafe do not have any professional indemnity insurance for the legal allegation suffered as result of the professional advice.
Though cafe will be providing for reasonable compensation for damages caused from advice.
Business assets:
Cafe has insured all the expensive assets of the cafe separately and an overall insurance for the cafe house in event of fire or
other damages. Insurances is also taken for the inventory and assets in case of theft. All the assets of cafe are insured from single
insurance company this has provided reduced premiums.
Business revenue:
Cafe has taken insurance for the loss of revenues in the event of situations that are out of control. These includes strikes, power
failure (food in fridges/freezers being ruined) or such similar cases where cafe cannot make money by selling its products.
Risk management
RISK LIKELIHOOD IMPACT STRATEGY
Financial risk Likely High The management of
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the company should
focus on developing
an effective financial
plan and focus on
tightly sticking to the
budget plan.
Compliance risk Unlikely Medium Must focus on
complying with every
law and regulation and
must continually
update with the new
laws (Montero and
Balacuit Jr, 2018).
Strategic risk Likely High The cafe must focus
on periodic risk
assessment and also
tends to focus on
segregating business
task and curtail
complexities.
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Legal considerations
Food safety act 1990 applied on the business firm because it will provide edible and café items to the customers in its premises
(Food standards act 1999., 2018). Food standard agency is the institute that oversee whether food serving firms or cafes are making
available quality of edible items to the people. In case of failure to comply with such kind of rules penalty can be imposed on café.
Some of the legislations that are in the UK that can be followed in the cafe business are given below.
 Food standard act 1999
 Food safety act 1990
 Food safety order 1991
Operations
Production process
There will be machines to prepare hot and cold coffee. In order to prepare remaining items relevant equipment will be used. Like in
order to prepare fast food sandwich machine, microwave, juicer and toaster machine will be used.
Suppliers
Coffee bin traders will be supplier in the business. Apart from this, those who trade in bakery products will also be suppliers. Those
that deal in bread, milk, vegetables, fruit and bakery products will suppliers in the business.
Plant and equipment
Cooking utensils and machines will be used to prepare food items and coffee. At the premises varied items will be prepared by using
items like ovens, utensils machines, fridge, sandwich machine, microwave, tables and chairs. Apart from this there will reception desk
and point of sale machine.
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Inventory
Inventory for entire week will be kept in a storeroom onsite. By doing so quality of edible items will be ensured. As part of inventory
bread, fruit, dairy product, cake beverage, vegetable, non vegetarian items, flour and cooking oil as well as spices will be stored in
storeroom.
Technology
Latest technology updated machine will be used to prepare coffee and edible item. Advance freezer will be used to keep edible
item fresh. Point of sale machine will be there on the reception desk. Apart from this, there will be printer machine, computer and
Xero accounting package as well as online menu which will be available on website from where one can place order.
Trading hours
7.30AM to 9 PM (Mon-Fri) and 8AM to 10pm (Sat and Sun) Cafe will be closed on Christmas day
Communication channels
Social media and personal contacts, telephone, website
Payment types accepted
Credit card, debit card and online payments as well as cash will be accepted.
Credit policy
Items will not be sold on credit basis.
Warranties and refunds
No warranty and refund because on edible items no warranty is issued by any café.
13

Quality control
In order to ensure good quality inventory will be purchased on weekly basis and will be kept in freezer. Frequent inspections of
raw produce and finished menu items will be completed daily. Use-by dates will be checked daily.
Membership and affiliationsAffiliation with local gym offering 10% discount on all food and beverage items.
Sustainability plan
Environmental/resource impacts
Business can negatively affect environment. For example during preparation of items at cafe lot of waste is generated and it contains
poly bags and other waste items. Such kind of items if not processed properly then harm natural environment. Thus, efforts will be
made to dispose waste.
Risks/constraints
Due to waste of the products natural environment around the cafe will be polluted.
Community impact and engagement
In order to avoid risk instead of poly bags paper bags will be used and awareness will be spread among people about waste. By
doing so impact on society will be minimized.
14

Risk constraints
Due to consistent damage to natural environment Government can take strict action against business firm.
Sustainability milestone target
CFL bulbs will be used instead of tube light to control electricity waste. Apart from this, 60% use of water will also be reduced
The Market
Market research
The questionnaire is asked in which 50 members are randomly selected to determine their views
1. do you think that every cafe should include healthy food option in their menu?
 Strongly agreed
 Agreed
 Neutral
 Disagreed
 Strongly disagreed
2. How frequently you visit The Cafe Place?
 Regularly
 Twice in a week
 Once in a week
 Once in the month
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3. Employees of The Cafe Place are friendly and courteous?
 Yes
 No
4. Which of the following you like to add in The Cafe Place?
 Bookshop
 Gallery
 healthier option in menu
 All of these
5. Which promotional strategy do you think will help to promote the business?
 Social media
 Direct marketing
 Selling
 advertisement
Theme 1:
do you think that every cafe should include healthy food option
in their menu? Respondents
Strongly agreed 32
Agreed 8
Neutral 3
Disagreed 4
16

Strongly disagreed 3
Theme 2
How frequently you visit The Cafe Place? Respondents
Regularly 5
Twice in a week 35
17
32
8
3
4
3
Strongly agreed
Agreed
Neutral
Disagreed
Strongly disagreed

Once in a week 10
Once in the month 0
Theme 3
Employees of The Cafe Place are friendly and courteous? Respondents
Yes 45
No 5
18
Regularly
Twice in a week
Once in a week
Once in the month
0
5
10
15
20
25
30
35
5
35
10
0
Column B

Theme 4
Which of the following you like to add in The Cafe Place? Respondents
Bookshop 5
Gallery 5
19
Yes
No
0 5 10 15 20 25 30 35 40 45
Column B

healthier option in menu 5
All of these 35
Theme 5
Which promotional strategy do you think will help to promote
the business? Respondents
20
55
5
35
Bookshop
Gallery
healthier option in menu
All of these

Social media 38
Direct marketing 5
Selling 4
advertisement 3
Findings: from the above, it is interpreted that majority of the respondents are In favor that The Cafe Place should use innovative
products i.e. add healthy products, bookshop and gallery in their existing business so that more customer will attract. Further, it is also
21
Social media Direct marketing Selling advertisement
0
5
10
15
20
25
30
35
40 38
5 4 3
Column B

interpreted that most of the users visit cafe twice in the week which reflect company have strong goodwill in market and when these
new option are added then company may easily use social media as a promotional strategy.
STP of The Cafe Place
Market targets
In order to sell the healthy products, The Cafe Place wants to sell the products in the market in the define time-frame which is
based on yearly targets
Your customers
Segmentation: The Cafe Place segment its market by using demographic criteria in which firm target business man who may easily
work overnight in the cafe. Further, under demographic, the young age (18-40), gender (both male and female), income (high and
middle class people) are also used to segment the people (Brace, 2018). such that the target people or the key customer of the
company will be Happy couples in which cafe provide a romantic and sophisticated atmosphere which encourage people to visit.
Another is, family as it provide healthy food option in its dinner and lunch. Next will be tourist because its location is based in mid of
city and then its target people are high end singles who will attract with cafe's décor and layout in which they spend their time by
reading books (Tulung and Ramdani, 2018).
Targeting: Cafe Place uses focused and concentration targeting in which the firm is actually discover the concentration
resources that helps to meet the defined market. In this, the company also focused to provide best healthy products in low and
reasonable rates as compared to other competitor to increase the demand.
Positioning: the Cafe positioning will be high because it provide hygienic food and positive and family ambiance to their customers.
Moreover, Cafe Place also provide low range of products as compared to other company that helps to retain their customers.
Customer management
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As the target market of the restaurants is families and happy couples and in order to keep the customer coming back, it uses feedback
sheet in which customer will easily put their views that help to determine what needs to be added or remove from cafe. For that,
quoted restaurants will also introduce customer service standards and also follow particular code of practice.
SWOT analysis
Strength Weakness
 Cafe Place has a strong financial
performance.
 Always add innovative product in its
operation (Yang and et.al., 2017).
 Uses digital marketing tool for the
promotions
 Did not have skilled employees
 did not continuously take feedback of
the customers
Opportunities Threats
 May added new services in its business
such that bookshop, galleries
 By analysing customer need, may
added healthier products in its menu
 Strong competition in market
 Changing customer taste and
preference.
Environment/ Industry analysis
To determine the industry, PESTLE analysis is used which helps to examine external environment of the company. This is as
mention:
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Political Factor: Sudden change in the tax reform and health regulation of the country will creates direct impact upon the
business performance. Such that health grading system in a city is always changes and at that time, cafe should be up to code to
receive high graded and cope up with political factor (Mooi, Sarstedt and Mooi-Reci, 2018).
Economic Factor: It deal with changing currency and stability of economy of country. For that, if there is an inflation rate,
then cafe has to increase the rate of offered services and as a result, it creates opposite impact upon cafe. In order to deal with this, The
Cafe Place offer discounts so that they will attract range of customers.
Social Factor: now a days, people become health conscious and they all prefer to take healthy food and that is why, by
analyzing the need of customers, The Cafe Place should also add healthier food option in their menu so that variety of customers may
easily attract the range of customers (Li, 2016).
Technological Factor: There is a rapid technology advancement which also affect the industry and that is why, The Cafe
Place should also adopt new techniques so that it will cope up with this factor. For instance, it may use Toast POS and QuickBooks
Online for their management and accounting and as a result, it also increase the profitability as well.
Legal Factor: this factor deal with the regulatory authorities and laws, but The Cafe Place comply with the equality Act,
Employment Act and Data Privacy act, as a result, it will help to perform the business in smooth manner ( Ind, Iglesias and Markovic,
2017).
Environmental factor: The Cafe Place also comply with Sustainability Act in which it make sure that cafe did not uses those
steps which creates harm to the environment and it will also start growing indoor plants and take care of cleanliness so that customers
may also easily reach to the place.
Your competitors
Ruby Diner, Sprout Wholefood, Hunter's roots, Fresh is good, Serotonin Eatery, etc. are considered to be the key competitors
in Melbourne Australia. The Cafe place can improve and maintain competitive position by offering range of high quality meals which
are beneficial for the health of the individual (McMurray, Cross and Caponecchia, 2019).
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Advertising, promotion and sales
Advertising & promotional strategy
Advertising &
promotional strategy
Cost ($) Target Targret date
Digital marketing
strategy
$1500 The customers will
target customers who
are preferred towards
healthy eating habits.
The targeted
customers will be aged
between 23 years to 65
years of age.
30th January
Print media
advertisement
$250 Consumers who focus
on carrying healthy
eating habits.
28th February
Giveaway $200 To target customers
who are eating jink
and must be attracted
towards healthy eating
habits.
31st March
25

Mail out $800 To target gym freak,
fitness freak
individuals.
30th April
Media release $900 To target gym freak,
fitness freak
individuals.
31st March
Sales & marketing objectives
The Cafe place tends to have strong sales team who focus on improving their sales by using effective sales techniques like
direct mail, online and telephone services, etc. This will help in meeting the sales target or goal of the Cafe place which is increase in
sales of 8% every year with increasing target customers (Berendsen and Beckett, 2019).
Unique selling position
The Cafe place tends to offer organic foods and wide range of healthy food habits according to the customized needs of the
customers. Also the addition of a bookstore and gallery, sets the business apart from other cafes in the area.
Sales & distribution channels
Direct selling: The Cafe place will distribute the products directly from the cafe. The major advantage of direct selling is that,
it helps in determining the needs and demand of customers. It also helps in taking regular feedback.
Digital distribution through personal website: he Cafe place will distribute the products from online website in order to
deliver products on their door step (Bilsland and AUSTRALIA, 2016). The major challenge is delay in delivery of the food. In order
to mitigate this challenge the company focuses on hiring more staff in order to deliver food on time.
26

The future
Vision statement
Vision is to offer healthy and nutritious as well as delicious edible items to the people.
Mission statement
Mission is to make time to time changes in the same food item so as to identify best one.
Goals/objectives
Target is to increase demand of healthy and nutritious food item by 5% each month.
Action plan
Sustainability plan Responsible Target date
To prepare and serve nutritious
food item to the people
Owner 20th Jan 2020
To increase sale of nutritious
items by 10%.
Entire management team 20th Feb 2020 to 20th March 2020
27

Succession plan
Planned succession type
The succession will transfer the business and all the rights and obligations associated with cafe to the successor.
Successor details
The business will be transferred to spouse of proprietor and after them to the son of proprietor.
Succession timeframe
Business will belong to the spouse as long she live. On death of spouse it will be transferred to son.
Restrictions
Business could not be sold to other business without the consent of spouses. Any disarrangement or fraud will cause the transfer of
business to charitable institute. Business could not be transferred to son till the spouse is alive.
Proposed organization chart
The organisation will have the proprietors as the director of company. It will be followed by General manager for managing
the overall activities of business. After that will be Business Manager of Industry looking after the business management of cafe.
They will be followed by cooks. Service and waitering department will be looked after by the business manager.
28

Key personnel change table
Key personnel table will be including Director, General Manager and the Business Manager.
Skill retention strategies
Timely training and development programs for enhancing eh individual personality. Rewards and incentives for achieving the
targets and goals.
Training programs
Timely training programs will be held including seminars to develop skills and new innovative and creative ideas for
developing new skills. This will help in providing consumers with new insights and ideas.
Registration transfers
Registration transfer will have to be filed with legal registration authority of the jurisdiction within 30 days of transfer. The
transfer of registration will be made following the legal procedure given.
Change of business structure
Change of business structure will be made only on the approval of the director and managing director. Business structure will
be made after proper board meeting only if it is essential for the business improvements.
29

Other transfer
There will be no transfer of business ownership in future time period. However, with business growth power can be shared to
new one with change in organization structure.
Contract legal document
Contract of employment will be inked with employees that will work in the café.
Buy sell agreement
There will be not buy sell agreement, spouse will be successor.
Will/testament
On death of owner spouse will be successor.
Current insurance
Business will be covered by insurance.
Contingency/ risk management tables
Risk name Likelihood Impact Contingency plan
Management issue High High Same hierarchy will
be followed and
accordingly there will
be same distribution
of power and
responsibility.
Fight to acquire
power
High High Strict control will be
maintained on
employees.
30

Current market value
Current market value of café business is $100,000.
Sale details
Sales price require is at least $200000. Plan is to run business in the market for 20 years. If owner is alive then it will receive and
in case of death spouse will be entitled to receive proceeds.
Taxation
Capital gain tax will be charge in case business is sold to someone.
31

The finances
Financial objectives
Financial objective is to pay interest amount on time and to achieve growth rate of 10% each year on business profit.
Finance required
Loan of £100000 is required. 15% of total investment will be equity and 85% will be debt and extra monies from a Government
grant.
Assumptions
It is assumed that loan of £100000 will be required to buy café business and to renovate café.
Start-up cost
Start-up cost will be $115000 for purchase of cafe and $85000 will be used to buy good quality of furniture and machines as
well as equipments.
Balance sheet forecast
Table 1Projected balance sheet
2020 2021 2022 2023 2024
Assets
Café premises 100000 105000 110250 115763 121551
Bank 50000 52500 55125 57881 60775
Receivables 2000 2100 2205 2315 2431
Investment in securities 6000 6300 6615 6946 7293
32

Machine 750 787.5 826.875 868 912
Furniture and fixture 400 420 441 463 486
Total assets 159150 167107.5 175462.875 184236 193448
Liability
Payable 3000 3150 3308 3473 3647
Bank loan 20000 21000 22050 23153 24310
Owner equity 136150 142957.5 150105 157611 165491
Total liability 159150 167108 175463 184236 193448
Profit and loss forecast
Table 2 Projected income statement
2020 2021 2022 2023 2024
Revenue 2492622 2991146.416 3589375.699 4307251 5168701.006
COGS 747787 837520.9964 969131.4387 1119885 1292175.252
Gross profit 1744835 2153625 2620244 3187366 3876526
Expenses
Exterior refurbishment 30000 0 0 0 0
33

expenses
Fixtures 5000 4000 2000 3000 1000
Rent 36000 37800 39690 41675 43758
HR expenses 91440 96012 100813 105853 111146
Electricity expenses 700 735 772 810 851
Miscelleneous expenses 500 600 500 600 500
Interest 2600 2600 2600 2600 2600
Total expenses 166240 139147 143774.35 151938 157255
Net profit 1578595 2014478 2476470 3035428 3719271
Expected cash flow
Table 3 Units sold projected
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Entree
150
0 1575 1654 1736 1823 1914 2010 2111 2216 2327 2443 2566
EL Mexican Quesadilla
120
0 1260 1323 1389 1459 1532 1608 1689 1773 1862 1955 2052
Spinach and mushroom 120 1260 1323 1389 1459 1532 1608 1689 1773 1862 1955 2052
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sandwich 0
Pesto egg sandwich 900 945 992 1042 1094 1149 1206 1266 1330 1396 1466 1539
Flat bread pizza 900 945 992 1042 1094 1149 1206 1266 1330 1396 1466 1539
Triple Tacos 600 630 662 695 729 766 804 844 886 931 977 1026
Coffee 700 735 772 810 851 893 938 985 1034 1086 1140 1197
Soft drinks 800 840 882 926 972 1021 1072 1126 1182 1241 1303 1368
Water 900 945 992 1042 1094 1149 1206 1266 1330 1396 1466 1539
Table 4 Total projected sales or cash flow
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Entree 45000 47250 49613 52093 54698 57433 60304 63320 66485 69810 73300 76965
EL Mexican
Quesadilla 24000 25200 26460 27783 29172 30631 32162 33770 35459 37232 39093 41048
Spinach and
mushroom
sandwich 21600 22680 23814 25005 26255 27568 28946 30393 31913 33509 35184 36943
Pesto egg sandwich 22500 23625 24806 26047 27349 28716 30152 31660 33243 34905 36650 38483
Flat bread pizza 31500 33075 34729 36465 38288 40203 42213 44324 46540 48867 51310 53876
Triple Tacos 12000 12600 13230 13892 14586 15315 16081 16885 17729 18616 19547 20524
Coffee 156600 164430 172652 181284 190348 199866 209859 220352 231370 242938 255085 267839
Soft drinks 268200 281610 295691 310475 325999 342299 359414 377384 396254 416066 436870 458713
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Water 512400 538020 564921 593167 622825 653967 686665 720998 757048 794901 834646 876378
Break even analysis
Table 1Break even point
Fixed cost 36000
Variable expenses 1
Sales price 3
BEP 15603
Break even point indicate that total 15603 units need to be sold to cover all fixed and variable expenses.
Part 2
As part of elements of the business plan monitoring of marketing and inventory operations will be done. Marketing is done
through multiple channels like social media and mail etc. Through KPI performance of all these channels will be measured. KPI
prepared for inventory will assist manager in identifying whether raw items purchase used on time or their quality get degraded. KPI
related to inventory and marketing will be monitored weekly through data analysis systems like Tableau. Entire data will be entered in
to Excel sheet and same will be connected to Tableau by using which data will be analysed. Benchmark will be determined and if KPI
performance is above threshold level then performance will be considered good else bad. In this way results of the monitoring process
will be reviewed.
Advertisi
ng &
Budget$) Analysis time KPI Resource use Milestone
management
36

promotio
nal
strategy
Digital
marketing
strategy
$1500 Weekly Initiate checkout
to purchase
Marketing team
will monitor and
analyse data
If performance
decline below
level
advertisement will
be change to
uplift CR.
Print
media
advertise
ment
$250 Weekly Number of people
come in the store
on basis of
information
received from the
newspaper and
magazine.
Marketing team
will monitor and
analyse data
If sale decline on
this front
advertisement will
be made
aggressive
through offers.
Giveaway $200 Weekly Number of people
come in the store
on basis of
information
received from
Marketing team
will monitor and
analyse data
If sale decline on
this front
advertisement will
be made
aggressive
37

newspaper. through offers.
Mail out $800 Weekly Number of people
come in the store
on basis of
information
received mail
service.
Marketing team
will monitor and
analyse data
On weekly basis
new offers will be
send to customer
through mail to
manage customer
base through this
channel.
Media
release
$900 Weekly Number of people
come in the store
on basis of
information
received videos
advertised on
digital media.
Marketing team
will monitor and
analyse data
If performance
decline below
level
advertisement will
be change to
uplift CR.
Marketing team employees will be important stakeholder and on weekly basis meeting will be organized with them and accordingly
changes will be made in the strategy.
Template to review business plan
Activity Plan on Performance of Budget KPI KPI Resource System
38

track to
achieve
milestone
activity performance use failure
Serving order
to customers
No Satisfactory
only.
Expenses
are within
control.
Waiting
time of
customer
on table.
Partially No System
failed to
serve
customers
on time. In
order to
solve
problem
coordination
can be
promoted
between
employees.
Order
preparation
No Not up to
expected level.
Expenses
are within
control.
Time
decided for
each dish
in respect
to cooking
time.
Not No Training
can be given
to the
individual
so that it
can cook
39

food in
short time
period.
Purchase and
management
of raw
material
No Satisfactory
only.
Expenses
are within
control.
Time
within
which raw
items
consumed.
Partially No By
following
just in time
approach on
time raw
items can be
purchase
which lead
to low
inventory
holding
cost.
Marketing
operations
No Satisfactory
only.
Expenses
are within
control.
IC to
purchase,
Number of
clicks and
number of
purchase
by
Not No Each hour
and day
number of
purchase
through
various
sources will
40

individuals
getting
information
through
print and
electronic
media.
be evaluated
and
accordingly
expenses
will be
increased or
reduced.
Letter format
To
CEO of Café place
On analysis it is observed that area of non-performance is food serving time, food cooking time, purchase and management of raw
material and marketing operations. In these areas Café place is performing well. In order to identify issues response was received
from the customers and it is identified that chef takes a long time to cook food. Moreover, data related to inventory was checked and
value of items was computed that now degrade in quality and are not fresh. Threshold level that was set to measure chef performance
was take into consideration in order to identify whether it prepare food within set time period or delay happened. In order to measure
digital marketing campaign inhouse generated data is used to measure its effectiveness.
It is recommended that coordination must be promoted among employees so that cooked food can be delivered on time. Moreover,
one more chef must be in the business premises so that in short duration food can be cooked and served to the customer. Just in time
approach must be used and according to requirement fresh items must be purchased from the market. It is also recommended that time
to time metric must be evaluated so that on time marketing strategy can be changed to prevent loss on marketing campaign. Results
obtained through this report will help firm to innovate its business operations which will lead to customer satisfaction and higher
41

retention rate.
CONCLUSION
From the conducted study it concludes that, the Cafe place focus on delivering range of healthy food items to the targeted
customers of Melbourne, Australia. This study has effectively planned that, the financial plan and succession plan and marketing plan
is effectively carried out to attain organizational goals and objectives.
42

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