GEB2112 Business Plan: Skyview Cafe Project for Lourdes White Org

This document presents a comprehensive business plan for Skyview Café, a new café business in New York City, focusing on beverages and breakfast options. It includes a company history overview, a business and industry profile analyzing market size, expected growth, and competitive landscape, particularly against major players like Starbucks and Dunkin' Donuts. The plan details a cost leadership business strategy, SWOT analysis, and competitive strategies to attract customers with high-quality products at competitive prices. Furthermore, the marketing strategy targets local residents, office workers, and students, emphasizing product differentiation through quality and occasional complimentary offerings. The plan also touches on future product options, patents, trademarks, and the importance of effective promotion through various media channels. The financial plan, management team description, and operational plan are to be followed by pro-forma financial statements, assumptions, and the purpose of financing. Desklib offers similar solved assignments and resources for students.

Running head: BUSINESS PLAN
Business Plan
Name of the Student:
Name of the University:
Author’s Note

1
BUSINESS PLAN
Table of Contents
Business Plan Phase 1......................................................................................................................2
Business Name and Idea..............................................................................................................2
Company History.........................................................................................................................3
Business and Industry Profile......................................................................................................3
Market Size and Expected Growth..........................................................................................3
Relative economic and competitive strength of major competitors........................................4
Business strategy - Needed to meet and beat the competition.................................................5
Business Strategy Description of the product or service.............................................................6
Desired image and position in the market...............................................................................6
SWOT Analysis.......................................................................................................................6
Competitive Strategy...............................................................................................................7
Description of the product or service...........................................................................................8
Patent or trademarks-...............................................................................................................8
Future product options.............................................................................................................8
Business Plan Phase 2......................................................................................................................8
Marketing strategy.......................................................................................................................8
Business Plan Phase 3....................................................................................................................10
Financial Plan............................................................................................................................10
Description of Management Team........................................................................................10

2
BUSINESS PLAN
Plan of Operation...................................................................................................................12
Pro-Forma Financial Statement.............................................................................................13
Assumptions..........................................................................................................................15
Purpose of Financing.............................................................................................................15
Reference.......................................................................................................................................17

3
BUSINESS PLAN
Business Plan Phase 1
Business Name and Idea
The main purpose of the business plan is open a café business which would be providing
different form of beverages as well breakfast options. The name of the business would be
Skyview Café which would be situated in the centralized part of New York city so that the
business is able to offer its products to the customers who are residential as well as office
workers. The market of US is highly favorable for opening a business which would be focusing
on proper quality of beverages and breakfast options (Burns. and Dewhurst 2016). The business
plan would be showing analysis of the marketing trends as well as operational plan which the
business would be following for the purpose of enhancing the sales of the business. The business
plan would further be including financial plan so that appropriate estimate can be made available
regarding the budget which is available for the business.
Company History
The café and beverage industry has been significantly successful in the market which is
mainly due to the demand for such kinds of products in the market. The different types of
beverages which includes normal coffee, cappuccino, café latte and black coffee are regular
products which are in demand on a daily basis (McKeever 2016). In addition to this, the food
trends show that people in the region like coffee and related beverages on a daily basis.
Therefore, the nature of the industry suggest that the business of Skyview café can generate
appropriate amount of revenue from the operations of the business.

4
BUSINESS PLAN
Business and Industry Profile
Market Size and Expected Growth
Coffee is a fundamental part of food culture in the United States and around the world,
and it's especially prevalent in offices, schools and Universities. The industry has undergone
significant changes over the years and more is expected in the coming future. It is to be also
noted that different types of cafes are opening up which are providing different types of coffee
such as coffee cola drinks, nitro coffee and several other varieties (WebstaurantStore. 2020). The
market is highly competitive in nature as there are not only the big players such as Starbucks
who are operating in the market but also small businesses are always coming up. A graphical
representation of the revenue which the café businesses is able to generate in USA environment
is shown in the graph below:
Figure 1: (Revenue Trends anticipated for café business)

5
BUSINESS PLAN
Source: (Statista. 2020)
The above trends show that there is a good chance for the business of Skyview Café can
effectively utilize the favorable marketing conditions so for enhancing the overall revenue which
can be generated. The growth rate which the café industry has reached in last 12 months is at the
rate of 3.8% and the same is anticipated to grow further (Statista. 2020). A recent survey reveals
that café market has grown to $ 45.4 billion in terms of valuation which suggests that there is
significant opportunity for a business to expand their operations and grow (beveragedaily.com.
2018).
Relative economic and competitive strength of major competitors
The economic conditions of USA are favorable and therefore it is appropriate to proceed
with a café business considering all other factors are favorable. One of the main factors which
can impact the business is the level of competition and the same can impact the revenue which
the business is able to generate. The three main competitors which occupies maximum shares of
US Market in coffee focused chains are Starbucks, Dunkin’s Donuts and Tim Hortons and in
combination all three of these chains occupies around 68.1 % of the total market shares of the
industry.
The business of Starbucks is the leader and its main strength which can be identified is
the innovative processes and techniques which is used by the company for the purpose of
pleasing the customers and in combination to this the business also enjoys a strong brand name.
In addition to this, the supply chain function of Starbucks is the most brilliant in all of the
industry which makes it most efficient (Blackburn, Hart and Wainwright 2013). The businesses

6
BUSINESS PLAN
of Dunkin’s Donuts and Tim Hortons also enjoys a proper brand name which makes their
products appropriate.
Business strategy - Needed to meet and beat the competition
The senior officials of Skyview café need to formulate a proper strategy so that the
competition can be dealt with in a proper manner. The management of the company intends to
follow a cost leadership so that the products which are offered by the business is lower than that
of its competitors (Hiduke and Ryan 2013). The business also intends to accumulate all the
resources from local markets in bulk quantities so that costs can be reduced effectively. The
management of the company also needs to appropriately market and promote the products which
is being offered.
Business Strategy Description of the product or service
Desired image and position in the market
The business effectively needs to properly build a positive image in the market so that
products and services can be properly market. The business is planning to create a niche
environment for itself in the market so that the business is able to survive in market in
competitive situations (Lidstone and MacLennan 2017). The competitive positioning of the
marketing is high and therefore the management of the company needs to take appropriate steps
for ensuring that the business survives in the market.

7
BUSINESS PLAN
SWOT Analysis
SWOT analysis is a tool which is used by the management for identifying the strengths,
weaknesses, opportunity and threats which is associated with the business. The different
elements of the tools which are listed below:
Strengths
 The business would be setting up its stores in New York City and therefore it would be
able to attract more customers from the market.
 The business also intends to offer diversity in its products which would be of the highest
quality so that more customers are attracted to the business.
Weaknesses
 The business might be facing financial situations in terms of liquidity position and
therefore the management might have to appropriate funds properly so that there is a
proper cash position for the business.
 The business would be required to properly manage the resources or else there would be
wastage of resources.
Opportunity
 The market is highly favourable as the café business is that the growth rate of café
industry has reached in last 12 months at the rate of 3.8%. This shows that Skyview café
can appropriately generate more revenue.
 The business has lot of opportunity to expand the operations of the business by opening
in new stores.

8
BUSINESS PLAN
Threats
 The café business faces significant competition and therefore the revenue of the business
can be impacted.
 The café business in US also faces adverse effects from regulations of government and
changes in inflation rates which would be increasing the costs of the business and impact
the profits.
Competitive Strategy
The competitive strategy which the café intends to implement would help the business to
effectively face competition in the market. The business intends to offer products at a lower cost
so that more customers are attracted to the market (McDonald and Wilson 2016). The business
would also be trying to promote the products and offer the best quality of products to the
customers.
Description of the product or service
The case would be providing different kinds of beverages which would be innovative and
would be comprising of all the popular drinks which are available in the market. In addition to
this, the café would also be providing different kinds of bakery products and breakfast options
which would be including both take away foods and dine in options for the customers.
Patent or trademarks
The patents or trademarks would be including the official logo which would be designed
by the business so that the business can build a brand image and name for itself in the market.

9
BUSINESS PLAN
The business also intends to take trademarks in future once the business starts its full-fledged
operations.
Future product options
The café business intends to diversify the product line which is offered and move to some
fast food options if the products which is offered by the business are successful in the long run
operations of the business. The business also intends to offer more products so that the revenue is
generated from diversified line and the business is able to expand as a brand.
Business Plan Phase 2
Marketing strategy
The target market of the café business would be office workers and domestic households
who are near the location of the store. There is a trend in USA that office workers like to have
some form of beverages in the morning depending upon their tastes and therefore it can be
anticipated that this would be generating revenue for the business in the long run. The business
would also be offering its coffee machines for offices once the business is established as a brand
in the market and this would further enhance the reach of the business in the market (Chaffey
and Smith 2017).
The customers which the business would be targeting would be mostly local residents
from houses and office workers who have their workplace close by. This would enable such
workers to grab a snack and beverage in the morning time and even come for mid-day snacks at
the time of break. Furthermore, students also like coffee and therefore the café would be
incorporating some of the favourite drinks of teens in the menu. The management of the café is
confident that the variety of the product which is on offer and low prices which is charged will

10
BUSINESS PLAN
be attracting most of the passer-byers and the same would be contributing to the overall revenue
which is made by the business (Parente and Strausbaugh-Hutchinson 2014). The strategies which
will be formulated would also be based on the requirements of the customers and the business
would be focusing on quality above all aspects.
One of the key marketing objectives which the management intends to implement is
effective promotion of the products so that the customers are aware of what is actually being
offered by the business (Kaurav, Paul and Chowdhary 2015). The business would be using the
television media and social media prominently for promoting the nature of operations for the
business. The management intends to allocate funds separately to marketing budget so that the
expenses of marketing can be effectively undertaken.
In order to differentiate the products of the café from its competitors, the business would
be charging lower prices and occasionally offer complementary items so that the business is able
to build a customer base for itself and thereby expand the revenue source of the business. The
business would also be focusing on the quality of the products which is being offered. The
business would be following a low pricing strategy so that it can survive in the competitive
environment and recover the costs of the business along with some profits. The interest of the
customers would be aroused when the business offers complementary food products in addition
to the normal coffee which would be contributing to the positive review of the customers. This is
an important step as the same would help the business to build a brand name for itself in the
market. The business needs to review the steps of the competitor as the maximum threat arises
from the competing businesses and therefore the management intends to focus on maintaining a
level of quality so that it can sustain customers and in addition to this, the management also
intends to follow benchmarking practices for managing the competition in the market.

11
BUSINESS PLAN
Business Plan Phase 3
Financial Plan
Description of Management Team
1. Positions
Key Personnel Staff
Position Name Experience Job Skill Set
Sales Manager Mark
Brown
48 months MBA in Marketing, Sales, 4 years of
Work related experience in marketing
work in KFC.
Operations
Manager
Harry Law 60 months 5 Years of work experience in fast
food retail chain.
Restaurant
Manager
Lucy
Brown
10-15 months 2 Years of work experience as Chef
and as a restaurant manager in NW
City.
Finance Manager Adam
Steve
36 months MBA from the University of
Melbourne and 3 Years of Work
Experience in finance field.