Business Plan for a Cafeteria

This business plan discusses the opening of a cafeteria in a university in London, including SWOT analysis, PEST analysis, STP model, 4Ps, competitors analysis, financial information, and controlling and monitoring.

Business plan for a
cafeteria
Table of Contents

INTRODUCTION ..........................................................................................................................3
MAIN BODY ..................................................................................................................................3
Business Plan Overview .............................................................................................................3
SWOT Analysis .........................................................................................................................3
PEST Analysis ...........................................................................................................................4
STP Model .................................................................................................................................5
4ps...............................................................................................................................................6
Competitors analysis...................................................................................................................7
Financial information..................................................................................................................7
Controlling and monitoring.........................................................................................................7
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business is a ongoing legal entity which create their own value through specific idea and
innovation. To create a good brand image, every business need a appropriate and working idea
which helps to maintain the goodwill of the business. Business consider all the continuous
activities like manufacturing, production , development, promoting an delivering activities. The
main purpose of this report to prepare a business plan so that company can easily optimise their
target value. For this report, a business plan prepare related to the hospitality industry. The name
of business plan consider as a “ Marshmallow in Beans” cafeteria which shall be plan to open in
University in London. This report mainly deal with the business planning of new cafeteria and
also analyse SWOT analysis and PEST analysis so that internal and external strengths and
weakness identify and this report also conduct porter's five force model to understand the
competition level.
MAIN BODY
Business Plan Overview
Business is a continuous process and with the help of specific and creative idea any one
can establish a good business. Business can be open in many ways like public, private, non profit
organisation. This report mainly deals with the private business that is a new start ups which will
plan to open by 2 partners so this business plan comes under partnership firm. In partnership
business, both owners are responsible for the growth and decline of the business and both will
divide profit and responsibilities in a equal manner. The name of new business plan is “
Marshmallow in Beans” cafeteria which will plan to open in university of London.
SWOT Analysis
Strengths Weakness
 Cafe will provide healthy food which
helpful in boos the the immune system
of people.
 Cafe will provide excellent services to
their customers.
 Cafe will serve organic products in
 New in market so it will difficult to
establish brand image.
 Lack of resources.

form of fast food.
Opportunities Threats
 Cafe will attract large number of people
to their low price products.
 Cafe will provide high quality products
in pocket friendly cost .
 Cafe will expand branches on other
areas.
 Competition level will be the big threat
for cafe.
PEST Analysis
To analyse the influence of external factors its important to conduct the external macro
factor analysis with the help of PEST analysis. The description of this analysis as per
Marshmallow in Beans cafeteria are given below- Political Factors -In this factors, all the taxes, trade regulations and trade policies affect
the business. Marshmallow in Beans cafeteria is a new business plan so that its
mandatory to analyse the impact of political factors on new business. Mainly political
factors affect the new business because of some changes in country situations because of
Brexit and Covid. Economical Factors – These factors consider the economic growth and some changes in
country economic policies. Marshmallow in Beans cafeteria need to focus on each and
every movements of economy like recessions and changes in price regulation. Social Factors – These factors can affect the perception of people so that Marshmallow
in Beans cafeteria need to analyse these factors very carefully. These factor leads the
changes and discrimination as per the culture, religion, demographical and geographical
areas. So its necessary to prepare a working strategy according to the people buying
behaviour and their tasty and choices.
 Technological Factors – In this time, any business can build their strong bran image and
position in a very short time through advancement of technologies. Marshmallow in
Beans cafeteria need to use latest technologies to establishment of their business and

beside this cafe also use online channels and media to promote their cafe products and
services. Which will give positive impact in the success of cafe.
STP Model
This model is essential for the target market. The discussion of this model as per the
Marshmallow in Bean cafeteria are discussed below-
Illustration 1: STP Model, 2018
 Segmentation – This is consider as a first step of this model, in this step Marshmallow in
Beans cafeteria need to divide the market in to many groups so that cafe easily consider
all the customers which comes under specific groups and criteria. Cafe divide all the
categories of people as per their requirements and segment the market. Targeting- In second step of this model. Marshmallow in Beans cafeteria need to focus
on their target customers which segmented in various groups. Cafe mainly target younger
people whom like fast food and also distribute their market as per the people age. Cafe
target young students and staff members who basically belong to the middle age groups.

 Positioning – This is last step of this model which shows that how Marshmallow in
Beans cafeteria can create strong position at the marketplace. Cafe can use social media
platforms and give advertisement in newspapers and magazines can helpful in positioning
of new business of cafe. Social media channels like websites, Facebook, Twitter are also
create good brand image of the cafe.
4ps
Marketing mix is a tool which comprises of various roles and objectives that are needed in order
to set a new product in the market when the organisation tries to develops new product there is a
need of certain elements which are kept in record before entering in a new business. As a new
business plan is opening a cafeteria named Marshmallow in beans cafe in London university that
the marketing mix for that is mentioned below: Product- As there are usually a crowd of youngsters so the staff and their team has
decided to make some product which will attract their age group and also helps them to
give some healthy food so the Marshmallow in beans coming up with innovative idea of
providing healthy fast food which is made with all organic material. This will seek the
interest of the youth and at the same time will not affect their health like normal junk. Price- Team is being trying to keep their prices at average so that will not affect the
customers pocket and makes them to shift towards their cafe as it will cover students and
youths and usually customers attracts to the prices with low cost and more varieties. Place- The cafe has been made in the university with a proper sitting zone and take away
facilities the team has also improvised the facility of giving online food delivery services
in hostels and nearby areas so the students may order and get food at any time when
needed.
 Promotion- The managers has made various teams for the promotions as there are social
media platforms where the Marshmallow in Beans has made their promotions on
university website with that on all the pages the team has also made a way in which they
offered certain coupons and discounts for customers with high pricing orders. This
technique is made to attract more students in that zone by providing more offers and
varieties.

Competitors analysis
To analyse the competition level and how to take competitive advantage so its mandatory
for Marshmallow in Beans cafeteria to apply Porter's Five Force model. The explanation of this
model are given below- Threat of new entry – The force of new entries are very high for Marshmallow in Beans
cafeteria because there is high competition in hospitality industry so cafe will face the
threat of new entries and new business also. Bargaining Power of Buyer - The bargaining power of buyers force will be high for the
Marshmallow in Beans cafeteria because buyer have a choice to purchase cafe organic
fast food products or switch to other brand products. Marshmallow in Beans cafeteria will
attract their customers with high quality organic food and charge low price. Bargaining Power of Supplier - Marshmallow in Beans cafeteria will face the low
bargain power of their suppliers because there are many suppliers available in the market
so cafe have a choice to switch their supplier and purchase those from those suppliers
who will provide good quality with lower price. Threat of substitution - Marshmallow in Beans cafeteria will face moderate level of
force from threat of substitute products. Cafe will provide healthy fast foods which
specially prepare with organic ingredients so that will give positive impact on cafe
marketing and if people will find good healthy food so they will not easily switch other
substitute products.
 Competitive in Industry – The threat of competition is really high for the Marshmallow
in Beans cafeteria because competition is evolving day by day. Cafe will plan and set
effective pricing policies of their products so that cafe will take competitive advantage.
Financial information
Cash flow consider as net amount of cash equivalents and cash which is transfer inside or outside
of company operations. It is prepare by a company in order to identify there financial position in
market place (R.A and Ullah, 2014). Every organisation estimate and try to enhance there profit
as compare to there part year profit. Cash flow statement of Marshmallow in Beans cafeteria is
given below:-
` (Amount in £)

Particulars January February March April May June

Sales 3500 4600 4700 5200 6200 6500
Other income 1500 2500 2600 2650 2000 2200
Total inflows 5000 7100 7300 7850 8200 8700
Cash Outflows
Variable cost:
Materials 450 500 530 650 740 830
labour 490 540 580 750 820 940
Other variable cost 200 250 260 340 420 520
Fixed cost:
Rent 1000 1000 1000 1000 1000 1000
Salaries 800 800 800 800 800 800
Other fixed cost 200 250 250 360 320 320
Net cash flow 1860 3760 3880 3950 4100 4290
Controlling and monitoring
Controlling and monitoring of new business is really essential. Marshmallow in Beans
cafeteria use some systems and activities like establish tracking system, prepare strategic plans ,
make product development plan, allot all the duties and responsibilities to each and every
workers and other staff, generate daily update about the buying and selling process will helpful
in easily monitoring and controlling all the regular activities of the business.
CONCLUSION
As per this report it can be said that for the success of business its important to make a
effective business plan. This report deal with the new start up and also identified some strategies
so that company easily build their market. This report discussed about the strengths and
weakness of the new business and analysed the macro external environmental factors through
PEST analysis. This report also discussed about the Porters five force model so that company
understand how to take competitive advantage at marketplace.

REFERENCES
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