Business Plan: Discovery Bar Café

This assignment focuses on the development of a comprehensive business plan for 'Discovery Bar Café'. It includes conducting market research to understand customer expectations and preferences. The analysis also delves into the financial aspects of the venture, outlining starting funds, additional funding requirements, and projected expenses. Detailed information about legal fees, marketing costs, employee salaries, and other operational expenditures is presented.

Concept Plan
Business Concept for Discovery Bar Cafe

Concept Plan
Contents
1.0 Introduction..............................................................................................................................................3
2.0 Objectives................................................................................................................................................4
3.0 Market Research......................................................................................................................................5
4.0 Target Market/Customer..........................................................................................................................5
5.0 Marketing.................................................................................................................................................6
6.0 Human Resource......................................................................................................................................7
7. 0 Operations – Using the Business Model Canvas....................................................................................8
8.0 Legal Issues............................................................................................................................................11
9 Financial....................................................................................................................................................12
10.0 Risks, Contingency and Exit Strategies...............................................................................................14
Bibliography................................................................................................................................................16
13.0 Appendix..............................................................................................................................................17

Concept Plan
1.0 Introduction
The Discovery Café bar is a small business modelled after a modern café bar. This is a 24-hour
service offering a relaxation joint for meetings, dates, and recreation. Designed with a restaurant
and bar sections, the service specializes in offering beverages. Inspired by a fun, relaxed and
unique atmosphere, this is a full service café with regular performance on weekends. Situated in
Rhodes Italy, its location is a tourist hot spot with a good number of foreign customers seeking
leisure and fun. The Café provides a scrumptious menu for its customers. Using pricing and
promotional strategies, the company is set to start as a small business with a reliable growth
strategy (Zikmund, et al., 2013). The region also has a youth population with young revelers
hence it targets the university, employed and business communities.
Using adopted mind mapping tools, the café design develops a market plan, operational
strategies, financials and market research. These are critical for creating value propositions and
business sustainability (Bocken, Short, Rana, & Evans, 2013). The business adheres to the legal
framework in Greece, industry regulations and it has company laws to govern its operations. The
product delivery and an employee of 9 the café bar has a mission of providing quality services to
its target customers. Driven by passion for service, its vision statement is “ Quality service at the
best price”. The value based business is driven by company objectives. The use of business
design software was more resourceful.

Concept Plan
Figure 1: Small business concept adopted from Jarrard (2018)
2.0 Objectives
Discovery Café Bar is a service-based business that also serves products. Targeting a sizeable
audience, it has the following objectives:
 To provide a comfortable place where customers can have a bite and enjoy a drink
 To offer simple entertainment to the target group
 To ensure the success of the business through reduced cost of operation
 Provide quality and reliable customer services
 To offer services that cater for the customer needs
 To provide quality entertainment and marketing for business growth
 To cater for employee needs for business sustainability
 Offer management strategies that enhance quality across its departments

Concept Plan
3.0 Market Research
The bar and café business is worth millions. Inspired by global brands like Starbucks, Discovery
Café seeks to start a unique service that connects with the customer within the new location
(Verhoef & Lemon, 2013). In order to understand the market, it was necessary to design a
market research. Using both primary and secondary data, the brand was able to design a concept
based on the gaps in the market and consumer demand. The brand location is strategic because it
takes advantage of a popular old house next to a museum attraction. The building design takes a
green approach with energy efficiency and environment friendly installations (Kats, 2013).
Profitability is important but this business takes a value-based approach that incorporates both
tangible and non-tangible benefits. The demand for a comfortable coffee house is high in the
region and customers are searching for the best experience. The quality of foods and drinks is
also critical and the business adopts a sales driven model for profitability. This type of approach
helps the company to improve progressively.
Target consumers in the business are wide. The business has an option to choose customers
based on their age factor, income levels, occupational and entertainment needs (Ostrom, et al.,
2015). In order to ascertain the customer perception the brand carries out a market research based
on key segments for value proposition, business growth and customer experience themes. The
appendix shows questionnaires used in the development of the business plan. The result shows
customers prefer services with a compete p
4.0 Target Market/Customer
Discovery café targets two categories of customers-the youthful population in Rhodes and the
visitors. From market research, this region is a tourist hub with frequent visitors. These are
tourists from different parts of the globe. The café bar is a multilingual operation and it hires

Concept Plan
workers with cultural diversity skills (Hair, 2015). Most of the customers speak English but a
good number are French, Spanish and Italian speaking. The brand targets a customer base of 500
people per week as it starting point with projections for growth. Each customer cliché has
preferences for service and product quality and Discovery has a responsibility of meeting this
need.
Customer segmentation helps Discovery café to focus on specific customer needs based on their
differences (Christopher, 2016). The first segment of youthful clients is the main category
classified in:
 Students ( Rhodes college and its affiliates)
 Working class ( Young 20-35 year olds)
 Business communities ( Young business people )
The next group focuses on tourists visiting ancient Greece sites across the region. The two
revenue streams form the framework for sales strategies and key business activities that make the
company a success.
5.0 Marketing
The 7 Ps of marketing provide a perfect model for Discovery Café Bar approach. These represent
the product, place, promotions, process, and the physical evidence of the bar (Lovelock &
Patterson, 2015). Products offered at the café include snacks for both vegetarian and meat lovers.
The café or coffee segment specializes in different types of hot and cold beverages. The bar
section is exclusively designed to target the alcohol drinkers and night revelers. Using digital
marketing strategies of social media, Discovery Café captures the target groups in their cliché.

Concept Plan
Student groups, alumni groups, business and working group sites have direct links for
appropriate advertising.
A multimedia approach to marketing is ideal because the target group is techno savvy and
delights in the visual elements. Word of mouth advertising is effective through special service
promotions to engage the new customer and maintain loyal customers. Pricing strategies include
a cost structure for each segment and quality products and service segments (Osterwalder &
Pigneur, 2010). The marketing process considers a sales forecast and Discovery identifies key
areas of focus for customer segments, and optimization of key resources. The design of the
location gives the physical evidence of the business for appropriate.
6.0 Human Resource
The figure below shows the structure for a business model for a human resource management
plan. Headed by the manager, there are two supervisors, a customer service head, a bar tender
and waiter for the restaurant and bar segment (Martin, et al., 2013). The HR strategy used
revolve around the global strategic human resource management. This is a contemporary HR
model for its functions and practices, which advocates for human capital management
approaches (Armstrong, 2006). Since the café targets a culturally diverse consumer group.

Concept Plan
Figure 2: HR structure for Discovery café
7. 0 Operations – Using the Business Model Canvas
The business canvas below gives a summary of Discovery’s business model. The key partners
are the business owners who have shares and capital investments in the company. This have a
passive management role in the business. Operations cover key business activities featuring the
café and bar service functions. The value proposition in this case is has a focus on people hence
customer experience is critical. Pricing strategies and quality direct the delivery process. The
target customer needs features the need for the following:
 Convenience of location
 Quality products
 Comfortable seats
 Timely services
 Customer care
Manager
Supervisor
( Cafe area)
Head of
kitchen
Waiter
Cashier
Supervisor
( Bar area)
Customer
service Bar tender
Cashier

Concept Plan
 Friendly customer experience
 Environment friendly designs
Figure 3: Discovery Business Canvas
Key Partners
 Directors
Key Activities
 Cafeteria
 Bar
services
Key Resources
 Coffee
and tea
suppliers
 Banking
services
 Marketin
g points
Value
Propositions
 Costs
 Customer
experienc
e
 Timely
services
Customer
Relations
 Demand
focused
 Target
segment
s
Channels
 Express
services
 Bar
location
 Café
store
 online
Customer
Segments
 College
students
 Working
group
( Young
age)
 Business
communit
y

Concept Plan
Cost Structure
 Segments
 Promotiona
l
Revenue
Structure
 On
location
store
 Online
service
delivery
( events
based)

Concept Plan
8.0 Legal Issues
In order to ensure smooth services the brand follows the appropriate procedures in business
registration and operations. Legal services include legal processes for hiring staff, business
advice and alcohol distribution laws. It is expected that Discovery Café complies with the labour
Laws in Greece as well as the special business regulations for alcohol distribution (White &
Hingson, 2013). Business law on both then online and on location operations are important.
Discovery needs to gain stakeholder confidence by sticking to the state and industry regulations.
The government has stipulated measures for equality in employment laws, corporate tax, human
rights and business regulations. Bribery is an anti-legal in the country and the brand needs to
follow patenting laws in line with the legal framework (Foreign & Commonwealth Office,
2017).
9.0 Financial
The cost structure shows the business startup funding with as shown below.
Incorporation fee
At the start up level, the business requires a registration fee of $120.
Share Capital
Each of the two business owners puts in $ 100,000 and each has a share capital of 40%. The
bank loan caters for additional costs including running capital.
Loans and Grants

Concept Plan
A loan of $150000 from Barclays Bank in Rhodes. Most of it caters for $9000 for expenses. The
business does not have any grants but has plans for future grants from small business support
services.
Income opportunities
Discovery has plans to boost its income through events. College students have occasional events
and hiring the bar and cafeteria for events provides a window of opportunity. Charges range from
$800 for a full day and $ 400 for half day. Other target consumers may also take advantage of
this offer for group and corporate events.
Assets
The company has $606000 in assets and the non-cash assets amount to $600,000 and cash in
hand required is at $20000 as shown in the Appendix. Fixed assets also include a second hand
van purchased at $4000 and an office space of $250 per month.
Expenses
Table 2 in the Appendix shows a breakdown of the expenses required at the start. This includes
marketing cost of $2000 for the launch and operational costs.
Assets
In addition, a list of the company startup assets is as follows. This shall grow as the company
grows to maturity.
Assets Amount ($)
Running capital 50000

Concept Plan
Inventory 56000
Current Assets 0
Long term Assets 500,000
Totals 606,000
Figure 4: Asset Plan
Other costs include the cost of building renovations and casual labour costs. The design is
affordable because it builds on an old design with slight changes to the building for its new use.
The entertainment section will cost more because of additional features including lighting and
soundproof effects. The seating design takes an old design but considers the customer target for a
youthful and cozy experience.
Projected Profits
In order to reach a break even, the company needs 500 customers on a weekly basis. Entry at the
café is free but price charges for services include VAT, product costs, and profits. The expected
cash flow is expected to cater for the expenses and provide returns for business management
(Rios, et al., 2013).
10.0 Risks, Contingency and Exit Strategies
Risk management is critical when setting up a café and bar business. These are situations beyond
control or sudden occurrences. Among the risks to consider are:
 Strategic risks of operations like industry collapsing
 Compliance risks like legal suits of non-compliance
 Financial risks of bankruptcy and mistakes at transactions

Concept Plan
 Operational risks like fire breakouts and poor administration plans
 Environmental challenges of unexpected weather disasters
At the start of the business, there are numerous risks especially the risk of business failure. This
call for exit strategies for leaving the business includes (McGrath, 2013). Since the business
starts with a loan, it has in place strategies to prevent bad credit. This includes forming mergers,
liquidation and closure. The café business also has in place a legal team of consultants to advice
on critical issues of managing the business in order to prevent conflicts of interest. There are
challenges managing a café area and the alcohol segment of the bar section.

Concept Plan
Bibliography
Armstrong, M., 2006. Human Resource Management Practices. 10th ed. s.l.:Kogan .
Bocken, N., Short, S., Rana, P. & Evans, S., 2013. A value mapping tool for sustainable business
modelling. Corporate Governance , pp. 482-497.
Christopher, M., 2016. Logistics & Supply Chain Management. UK: Pearson.
Foreign & Commonwealth Office, 2017. Overseas Business Riskl, Itally. [Online]
Available at: https://www.gov.uk/government/publications/overseas-business-risk-italy/overseas-
business-risk-italy
[Accessed 11 January 2018].
Hair, J. F., 2015. Essentials of business research methods ME. s.l.:Sharpe.
Jarrard, B., 2018. SME business plan mind map. [Online]
Available at: https://mindwerx.com/portfolio-items/sme-business-plan-mind-map/
Kats, G., 2013. Greening our built world: Costs, benefits and strategies. s.l.:Island Press.
Lovelock, C. & Patterson, P., 2015. Services marketing. s.l.:Pearson Australia.
Martin, B. C., McNally, J. J. & Kay, M. J., 2013. Examining the formation of human capital in
entrepreneurship: A metaanalysis of entrepreneurship eductaion outcomes. Journal of Business
Venturing , 28(2), pp. 211-224.
McGrath, R. G., 2013. The end of competitive advantage; how to keep your strategy moving as
fast as your business. s.l.:Harvard Business Review Press.
Osterwalder, A. & Pigneur, Y., 2010. Business model generation: A handbook for visionaries,
game changers and challengers. s.l.:John Wiley & Sons.

Concept Plan
Ostrom, A. L. et al., 2015. Service research priorities in a rapidly changing context. Journal of
Service Research, 18(2), pp. 127-159.
Rios, M. C., McConnell, C. R. & Brue, S. L., 2013. Economics, Principles, problems and
policies. s.l.:McGraw Hill.
Verhoef, P. C. & Lemon, K. N., 2013. Successful customer value management: Key lessons and
emerging trends. European Management Journal , 31(1), pp. 1-15.
White, A. & Hingson, R., 2013. The burden of alcohol use: Excessive alcohol consumption and
related consequences among college students, s.l.: Alcohol research current reviews.
Zikmund, W. G., Babin, b. j., Carr, j. C. & Griffin, M., 2013. Business research methods.
s.l.:Cengage Learning.

Concept Plan
13.0 Appendix
A. Market Research Questionnaire for Discovery Café Bar
1. What is your age group?
 Below 18
 18-24
 25-30
 Above 30
2. What is your current population?
 Student
 Employed
 Business owner
3. How often do you visit a café restaurant
 Twice in a week
 Once a week
 Less than once a week
 Never
4. What services do you look for in a café?
 Quality of service
 Affordability
 Customer experience
 All
5. What is your usual budget for a café bar service?
 $5-$10
 $10-$15

Concept Plan
 $15-$20
 More than $20
6. How often do you party at night?
 Twice a week
 Once a week
 More than once a week
 Hardly
7. Do you use both the drink section and café areas?
 Yes
 No
8. What kind of music do you enjoy at the bar
 Live
 Recorded
 Variety
 Instrumental/classic
9. What kind of offers do you find attractive in a bar?
 Discounts
 Special offers
 Special price offers
 Additional services
10. Which days do you consider special when visiting a café bar?
 Beginning of the week
 Midweek

Concept Plan
 End week
 Weekends
B. Results from the data collected on Customer expectations
Quality of Service Affordability Customer Experience Complete package
0
5
10
15
20
25
30
35
40
45
Number
Funding Costs for Discovery Bar Café

Concept Plan
Starting Funds Amount ( $)
Expenses fund 90000
Assets fund 606,000
Additional Funding 0
Total Fund 696000
Expected Expenditure for Discovery Bar Café
Expenses Amount in $
Legal fees 2000
Brochures 700
Consultants 1000
Debt service 5000
Insurance 1600
Licenses and tax fees 10000
Employees pay 20000
Launch Advertising 2000
Miscellaneous 1800