London Coffee House Business Plan - Offering Best Quality Products in a Soothing Environment

Business Plan

Introduction to Business Idea
The London Coffee House will aim to offer a soothing and calm environment for coffee lovers.
The cafe will aim to offer best in quality products to their customers with a calm and comfortable
environment. The cafe will work in order to provide highly satisfactory services to the customers
along with the high quality snacks and beverages. The focus will be upon providing satisfaction
to customers in order to have a wide and loyal customer base for the business. The London
Coffee House will be owned by John Cyrus who has a long term experience in the hospitality
industry. The main products that the cafe will provide are lattes, cappuccinos, espressos and huge
options of snacks to choose from. The cafe will also aim to provide healthy snacks options to
choose from, for the health freaks. The cafe will be established in 2000 square feet area with
various colleges and offices in the acquaintance. The cafe will aim to provide a soothing
environment with comfortable seating and satisfactory customer service to their customers
(Blackwell, 2017).
Key partners:
 The
London
coffee
house
will be
owned by
John
Cyrus.
 Coffee
emporiu
m that
will
supply
premium
coffee
beans.
Key activities:
 Providing
a
soothing
environm
ent with
comforta
ble
seating
and
satisfacto
ry
customer
service to
their
customer
s.
Value
propositions:
 Aim to
provide
high quality
products
with good
and
specialised
services to
the
customers.
 Ultrafast
high speed
Wi-Fi that
will help
the students
and
Customer
relationships:
 Better
customer
service
 Customer
satisfactio
n
 Offers to
attract
customers
Customer
segments:
 Urban
customers
of UK.
 Age group
of 15
years and
more.
 Students
or
working
profession
als
belonging
to the
upper
middle

 Basic
essentials
like milk,
breads,
fruits,
soft
drinks,
vegetable
s will be
supplied
by local
vendors.
 Bakery
products
like
cookies,
muffins,
croissant
will be
supplied
by the
Murphy
bakers.
business
personnel’s
to
communica
te and work
upon their
activities.
 Choose
between
indoors and
outdoor
seating.
 Offer a
soothing
and calm
environmen
t for coffee
lovers.
class and
rich
backgroun
d.
Key resources:
 Financial
resources
 Human
resources
 Physical
resources
include
building,
furniture,
fixtures
Channels:
 A direct
distributio
n channel
wherein
the cafe
will
directly
sell the
eatables to
its
customers
from the
cafe.
 No
middlemen
for its
sales and
distributio
n channel.
Cost structure:
3. Fixed cost £1500
4. variable cost £600
Revenue streams:
 Revenues will be generated through sale
of products.
1.0 Nature of the business
The cafe, The London Coffee House belongs to coffee industry in a specific manner. London has
a huge population of millennials and baby boomers who can be considered very social and
mobile. The population of these generation aim to prefer coffee with friends which can prove to
be of benefit for the business. The concept of outing and hanging out with friends over coffee has

been in trend among the teenagers and youngsters.
Location of the business
The address of the business is 22, Park Street, London.
The location of the cafe is blessed with a high density population of youngster and working
professionals that will help the cafe to generate continuous revenues at a high pace. The people of
the area are capable enough to spend huge amount on snacks and coffee (Cadena and et.al.,
2020).
1.1 What is the business offering (product/ service etc.)?
The cafe will provide various kinds of snacks and beverages as mentioned below.
Beverages Iced tea, cappuccino, Espresso, Coffee, variety of fruit juices and
variety of milkshakes.
Soups Variety of normal soups, mixed soups
Sandwiches Variety of vegetable and chicken sandwiches
pizza Variety of pizzas to choose from with various toppings and crusts
1.2 How is the business adding value to its potential customers?
The London Coffee House will aim to offer a soothing and calm environment for coffee lovers.
The cafe will aim to offer best in quality products to their customers with a calm and comfortable
environment. The cafe will work in order to provide highly satisfactory services to the customers
along with the high quality snacks and beverages.
1.3 Why is the business different from other existing ones?
The London Coffee House will aim to offer youngsters and working professionals with
specialised marketing strategies. The Cafe will aim to provide high quality products with good

and specialised services to the customers. The cafe aims to provide variety of seating to their
customers. The cafe provides an option to the customers to choose between indoors and outdoors.
The cafe provides an ultra-fast high speed Wi-Fi that will help the students and business
personnels to communicate and work upon their activities.
2.0 Market analysis
The market for cafes in the UK is most likely to grow as the people of UK are quite fond of
coffee. The market analysis is performed with the help of PEST analysis.
PEST Analysis
The PEST analysis allows to analyse the various external factors such as political factors,
economical factors, social factors and technological factors that may affect the functioning and
operations of the business. The PEST analysis of The London Coffee House is explained below-
Political factors
The political factors affecting the business of The London Coffee House are as follows-
 The uncertain situation over the Brexit impact on consumer and market behaviour which
is a political factor affecting the business of the organization.
 The free trade agreements can impact the business of the London Coffee House which
may lead to increase in the foreign competitors of the business.
 The increasing business rates might lead to the situation of unaffordable property costs for
the business.
 The political factors may increase the minimum wages and zero hour contracts of the
organization (Ferreira and Pinheiro, 2018).
 The labour availability and immigration of the business might decrease depending upon
the political factors.
 The instability in the political environment of UK will affect the businesses of the region.
Economic factors
The economic factors that might affect the business of the organization are discussed below-

 The market of the UK has been showing consistent uncertainty which will affect the
businesses of the region.
 The Economic KPI after the Brexit votes have resulted in being more pessimistic than
expected.
 The employment ratio of the region also affects the bushiness of the region. The people
with employment tend to spend more in comparison to the unemployed individuals.
 The value of the currency has decreased by 10 to 15% which has led to rise in the prices
of food and fuel (Genadinik, 2019).
Social factors
The social factors that might affect the business of the organization are discussed below-
 The changing trends in the business have forced the businesses to shift to the online and
digital modes of doing businesses.
 The brands which are highly trustable and relevant tend to be less affected by the
economic factors.
 In order to meet with the requirements of social factors the cafes need to cope with the
dynamics through the invention that will allow the business to perform well.
 The personalised nutrition among the customers is also a social factor that will affect the
performance of the business (HAN and Kang 2020).
Technological factors
The technological factors that might affect the business of the organization are discussed below-
 The technological factor is mainly dependent upon the cell phones in order to co-operate
with the running chores.
 The exposure of food services to the technology based organizations can also affect the
business of the various organizations.
 The social media has led to influencing of various brands and this may also affect the
business of The London Coffee House.
 The digital and online platforms tend to offer growth for the business organizations as it