Individual Business Plan Report for Plush Cafe in London, UK

This business plan report is for Plush Cafe, a new cafeteria business in London, UK. The report covers market and industry analysis, business details, location, and more. The objective of the company is to earn a profit of 15% after paying taxes and to develop the cafeteria into a location where customers can mingle with others in a relaxed and comfortable setting while enjoying the best coffee in town. The report also discusses marketing strategies and the use of technology in the business.

Individual business
plan report

Contents
Executive summary..........................................................................................................................1
INTRODUCTION...........................................................................................................................2
MAIN BODY...................................................................................................................................2
Business plan.........................................................................................................................2
CONCLUSION..............................................................................................................................13
References:.....................................................................................................................................14

Executive summary
The business plan is prepared which is focusing on opening café with the name of plush café
which is located at River Thomas, London, UK. The objective of the company is to earn profit
by 15% after paying the taxes. The goal of the planned café is to make the greatest possible
efforts to develop the cafeteria into a location where customers can mingle with others in a very
relaxed and comfortable setting while enjoying the best coffee in town. To match the fascination
of UK clients, the products contain a variety of appetisers as well as flavoured tea. This plan
offers segmentation and targeted pitches in order to promote the product in a way that maximises
sales. It also goes through brochures, billboards, and advertising as marketing tools.
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INTRODUCTION
To start the company by an entrepreneur business plan is prepared which states an written
document that assists in defining how the business basically starts defining an objective and
ways for achieving them. This act as roadmap for the organisation from marketing, financial and
operational standpoints. The business plan is an important document which is used by external
and internal audience of company. This is also used in order to attract investment before
company establishes proven track record. This is a fundamental document which any start-up
business needs to place. The business plan is of four types which involves operational plan,
strategic plan, tactical plan, and contingency plan (Frederick, W.A., 2021). The effective plan
helps in guiding from each stage of starting and managing business along with helps in funding
or bringing new business partners. The business plan is prepared by the entrepreneur which is
planning to open a cafeteria by the name of Plush Cafe where people can visit to feel relax from
the stress of daily life and socializing with friends & loved ones with cup of coffee. To prepare
the business plan it consists of several elements such as business details, market and industry
analysis, sales & marketing strategy and many more.
MAIN BODY
Business plan
The business plan is prepared for the new start-up of business by the entrepreneurs as
there are lot of opportunity existing in the market. In market people needs and preferences
changes as they explore to have something new which can be offered to them different from
other existing brands. The opening of cafeteria comes under the industry of food and beverages
which comprises of several cafes, restaurants, fast food joints, catering business, food
transportation and many more. The working in this industry ranges from packaging to
preparation, transportation and serving food or beverages. The cafeteria is restaurant which is
also known as canteen is type of food service (Geraldo, and Gama, 2019). It is self-service
restaurant where customers select several dishes from the open counter display. To open a
cafeteria provides an opportunity to the entrepreneur as this is can be a profitable business if
planned and done in correct way. The customers like to going out with families, friends and
office parties as customer enjoys coffee, espresso, tea. Further restaurant products represent
opportunity for people to buy and take home. The offering of delivery services and take-out
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helps in meeting needs of people which is another opportunity for the Plush Cafe can be
successful in long run. In context to Plush Cafe business plan is prepared which consider the
several elements that are mentioned below-
Business details
This provides an overview of the business by involving what business is about, offering
to consumer and in what way it is different from the others in same industry. The business is of
Cafeteria with the name of Plush Cafe located in London, UK. This is going to be establish in
such location were more of customer can be attract to visit and offering great ambience so that
quality time can be spend. In attractive manner it will be developed so that people visiting place
can have a view. For the customers magazines will be made available who are interested in
reading while having cup of coffee, tea or some snacks. There is also provision for live music for
music loving customers. The flooring will do with Italian marble. To establish successfully it has
objective of achieving gross profit nearly 15% after paying taxes, to strive towards maintaining
stipulated gross margin nearly 45% or more (Hanák, and Grežo, 2020).
The objective is also to develop 3to 5 cafes on more locations. The basic aim of plush
cafe is to use best efforts in developing cafeteria into place where customer can have opportunity
to socialize with others in relaxing and comfortable environment. For the proper functioning of
cafeteria, the talented employees will be selected so as to assist customer by offering them
customer friendly services and quality products. To make the push cafe successful there are some
key measures that needs to be consider by cafeteria such as establishing in such way to make it
eye catchy, offering of beverages and food in good quality along with entertainment in terms of
music. Developing of low-cost incurring quality marketing strategies in order to generate
awareness & knowledge regarding cafeteria among people for having loyal customer base. The
cafe will hire well and experienced chefs so that there can be preparation of delicious, quality
and customer demanding food and beverages. Along with this, manager is entitled for warm and
heartiest welcoming of customers to have smooth and proper functioning of Plush Cafe.
Location
In context to business location defines to place where firm decide to site its operations
which puts an big impact on cost and revenue. The business is required to decide the best
location by considering the factors of customers, staff, cost and support services. The location of
push cafe will be located on the banks of River Thames with a majestic view of London Eye,
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UK. In such area there is presence of renowned shopping complexes which makes the place
active with people who visit in shopping complexes for the purpose of shopping. There is also
availability of sitting places on banks of river Thames as several people visits to spend their
quality time and enjoys majestic views (Hopp, and Greene, 2018). This place is chosen because
of huge crowd in this area which easily will helps in attracting the customers as people of UK are
very keen for conducting experiments with tastes and variety of delicacies. The establishment of
cafeteria at such prime location will motivate people to visit there for spending some quality time
with near and dear ones over coffee and quality foods which is served in cafeteria along with this
it is also entitled for providing comfortable and relaxed ambience which in turn will allow the
owners of cafeteria to maintain adequate fu8nctioning and business sustainability.
Market and industry analysis
The market analysis is quantitative and Qualitative assessment of market which consider
market size in terms of volume and value, customer segments & buying patterns, competition
etc. The analysis helps in providing information regarding industries customer and more
variables. The industry analysis is tool which facilitates company understanding of position
relative to other companies that is producing similar products & services.
In the growing market segment plush cafe has launched the new cafeteria business along
with in economic there are downturns which disrupt the business in UK but the demand for
cafeteria is increasing. The establishing of business in this market success can be measure by
considering factors of high affluent population as the cafe is been located at high populated area
and also on sightseeing area. The students and office goers are considered as major customer for
the plush which leads to high sales and policy of company can change the mindset. The plush
cafe has particular target market and responds to fulfil desire of target market (Hou, and et.al.,
2021). The company will maintain customer feedback in order to known its success as customers
are satisfied or not with products. The company also takes the market research to have the
understanding of market trends. There are some customers who likes to visit cafe in evening
time, several continental foods are demanded by customers now, preferring flavoured coffee.
According to the customer the company will find customers at what time they enter. It will target
to every group of member middle and upper level. There are several factors involved in the
market which can affects the cafeteria that involves analysis of macro environment. In Macro
PESTEL analysis is considered which can affect the business performance and productivity.
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PESTEL Analysis refers to a tool which is used by the marketers to analysis the macro
(external) environmental factors that have an impact on a company. It can help to determine the
validity of product & services and also define new product development. There are six factors
which is used to analysis the information about the business direction. PESTEL Analysis on
Plush Cafe can be explained as follow-
 Political: Political factors refers to the elements which includes such as taxations
policies, restriction changes in trade and government stability. Business will affected in
future if there is any changes in these elements. Plush cafe has carried off various
adjustments in the respective markets it is present in. Over the past few years, United
Kingdom and other economies of the world have transformed their regulations regarding
the entry and exit of the cafeteria functioning in the local market (Katz, J.A., 2018).
 Economic: Economic factors refers to the rates such as interest, inflation, unemployment,
income levels of disposable, GDP and etc. The execution of Plush Cafe is closely
correlative to the economic action of the United Kingdom's economy. Furthermore, the
development in the past decades is stacked upon the increasing globalization and utilizing
general resources to provide in the global markets.
 Social: Social factors are those factors which include demographics trends such as size,
age, cultural like behaviour towards consumer policy. The Current trends of society is
more social. Every person wants peace and rest in their life so for society the Plush Cafe
is the best solution for them where they can visit with their friends & family and can
spend their quality time with them and enjoying
 Technological: This factor is one of the most important factors for this analysis. Which
involves the innovation and growth of the technology in the industry. In order to improve
business growth several technologies are used and adopt various computersied machines
in order to process business flow of smoothly (Kittikhajorn, D., 2020). The plush cafe
uses packing water for their products along with several types of cooking oven are used
by them such as microwave, sandwich maker, coffee maker etc. When a corporation uses
technology to prepare meals, they can save time and employ fewer people. As a result,
the organisation has benefited greatly from modern technologies.
 Legal: Legal factors refers to the changes of laws. Guidelines for health and care, safety
guidelines of women and etc. The plush café is required to comply with all rules and
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regulations in order to have smooth functioning of business and ensures that labour laws
are effectively implemented. The company also ensures to attend the complaints of
customers.
 Environmental:Environmental factors refers to the disasters, changes in weather
pollutions, food etc. This factor involves everything that changes by the environment
which can affect the health. In context to plush café the awareness of climate change has
increased and government imposes several regulations for reducing carbon foot print. The
fluctuation sin monsoons lead to fluctuations in production of coffee. The Plush café will
encourage its partners to follow environmental rules (Márquez, R.F., 2022).
Industry analysis of plush cafe helps in understanding its position as this belongs to small
business. It provides the understanding to business organisation regarding future threat and also
observe the future scope and opportunities of company in context to plush cafe. To keep
competitive with competitors it also understands the demand of raw material. The company can
take use of porters five force model for analysing industry in context to Plush Cafe which
benefits company in knowing their potential in market. This model is used for identifying and
analysing competitive forces that helps in shaping the industry and can be applied to any
segment of economy for understanding the level of competition within industry and enhances
long-term profitability.
 Competition in industry- In the market there is high competition as there are higher
number of competitors. For the plush café it has high threat of rivalry which makes
difficult for maintain high profitability. There exist three types of competitors such as
direct competitors who are producing the same product. Indirect competitors who are
producing similar types of products from different category. Replacement competitors are
those who produces different product from different companies (McCardell, S., 2018).
 Potential of new entrant into industry- To set Cafeteria it requires moderate level of
investment, which makes an easy for the coffee industry to enter. The economies of scale
is another factor which is established once the production and operations are achieved
efficiently. To enter into industry, plush café is required to understand customer needs.
The risk is low for the new entrant.
 Power of suppliers- This address how the suppliers easily drive the cost of inputs. The
power of supplier is low as Plush café needs raw material for offering the quality
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products and coffee to its customers. if supplier will charge the high price, then it can
switch to another supplier who will offers quality raw material on low prices. The
company can put its input cist lower and enhances the profits when there are several
suppliers or low switching cost between rivals (Moro Visconti, R., 2019).
 Power of customers- This is related to ability which customer drives prices lower prices.
The power of customer is high as there prefer to busy products at lower prices and with
the trends there is change in their needs and preferences. The success of Plush café will
depend on how many customers it is having and how much it would cost to find new
customers. With the small independent customer, the company can increase its
profitability by charging higher prices.
 Threat of substitute products- In the industry there is availability of substitutes in
similar products which is a risk for the plush café. The low switching cost is easy for
customer to shift their loyalty from one brand to another. The Plush café will charge
premium price form customers who have focus on quality and amazing dinning in
experience.
Product and service description
The product or service is description about the offering of product which is offered by
company and why it is unique and why customers should buy them. The product is tangible
which is put in market for its acquisition, attention & consumption whereas the service is
intangible which arises from the output of one or more individuals. The plush cafe will have the
main focus on the offering customer beverages which are best in taste by using high quality
ingredients and proper process of preparation (Nicolò, D., 2018). In order to increase the sales of
beverages which is severed to customer the effective marketing strategies will be developed. The
owner of Plush Cafe will consider to provide customer different flavours of tea & beverages
along with pastries, Sandwiches and Salads. The plush cafe is established as cafeteria cum
family-based restaurant in which menu will contain various listings such as breakfast, soups,
salads, Sandwiches, grilled items, beverages and many more that looks eye catchy and order can
be made by customers.
The cafeteria will offer several services to its customers such as air conditioning system,
incorporating dim lights which is developed by combining ambience of light and shadow. Sets of
four cushioned couches with a glass table in the centre will be considered for the customer
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seating arrangements. A coffee bar will be located in the cafeteria's centre, where guests will be
able to order various espressos and pastries. Separate, well-maintained washrooms will also be
available for both men and women (Patrocínio, M.A.R., 2021). A live band performing relaxing
music will be stationed in a designated area of the café because many consumers feel calm when
they hear soothing music, the creation of a musical environment will be considered. Several
customers enjoy reading magazines over a cup of coffee, a separate magazine corner will be
formed, comprising all of the recognised and customer-demanding periodicals. Employees that
have been properly trained will operate in the cafeteria, catering to the needs of the consumers
while giving courteous customer care.
USP and competitor analysis
The USP analysis refers to unique selling proposition which is the process through which
factors can be analysed and identified that is set by the business, product or service from that of
competitors. To attain competitive advantage the company develops unique identity. This
provides the advantage to push cafe in market as this offers something new which is not offered
by other brands. For the push cafe USP can be in form of high-quality product, speed of delivery
better experience, using of innovative technologies and pricing along with loyalty bonus. The
customer always prefers to make choices as there are several options available with them. The
strong USP helps in attracting the customers. The plush cafe is having unique selling point in
terms of superb location, providing music of live band and separate magazines corner. The plush
cafe offering good ambience with unique menu items and quality food & beverages with unique
in taste and good appearance. The USP for cafeteria is welcoming customers with smiles and
offering them better services (Peters-Destéract, L.C.M., 2020).
The competitor’s analysis defines the assessment of current and potential competitors’
strength and weakness. The analysis helps in understanding the market in which business is
operated and what are target audience. It is a strategy that involves research of major competitors
in order to gain insights for product, sales and marketing tactics. This also helps business in
identifying potential opportunities and to stay with industry trends by ensuring that product is
consistently meeting industry standards. For every business there exists competitors in market.
The Plush Cafe also has some competitors in the market that it must research and learn about, as
well as the opportunities that they present to customers. The plush cafe will develop some
business strategy for determining the areas of improvements in business. The cafe is also
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required to know the needs and demand of customers which is the key to success and fulfilling of
this leads to increase of economic growth of business. Customers, on the whole, want a low-cost,
flexible service with a high-quality product (Pok, and Leung, 2020). As a result, the company's
business planning strategy must be revised. To attract clients, the organisation must offer a
variety of discounts and incentives. They must have a plan that ensures clients are completely
satisfied. A company's sales and marketing approach must be improved. The most crucial aspect
of marketing is advertising. Customers will be attracted to the company if it conducts an
appealing launch programme. Attracting clients also requires attention to packaging and
branding. The company creates uniqueness in the packaging of its products. Customers have
been drawn in by the eye-catching packaging. The organisation must hire qualified staff who are
capable of managing the company effectively. To develop the business plan and compete with
competitor companies, the corporation must judge diverse consumer behaviour. The plush cafe
can have competitive edge over competitors by creating attractive and creative websites. To the
customer of rival, plush cafe can offer better opportunity which helps in attracting large customer
base.
Operation plan
This defines the milestones for success and strategic plan that will be put during the
operational period. The operational plans establish the activities and budgets which is link with
strategic plan of organisation and resources required to deliver them. The operation plan provides
the plan for resource allocation and in last while operation plan can be modified to reflect policy
decisions during budget development process (Putri, M.N., 2020). It provides the framework for
an organisation's day-to-day operations. The menu should be simple and appealing to customers
by selecting dishes that are relatively easy to serve. The plush cafe will outline the physical
requirements of business such as retail space, equipment, inventory and supply needs. In plush
cafe the employees will be hired for the day and night shifts in which some of them will chefs,
waiters and training will provide to them. The staff and owners will share the duties such as
taking orders, making tea/coffee, restocking, clearing tables maintain of wash room facilities etc.
The plush cafe will bring some equipment’s such as espresso machine, grinder, dishwasher,
microwave and storage bins etc. To have products it will collaborate with suppliers to get soft
drinks, juices, cookies, milk, yogurt and many more. By ensuring that the business's competitive
plan of action is being used to help their products and facilities. These competitors use a social
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media strategy to influence consumers, then market their brand through promotions and search
engine optimization.
Risk and contingency plan
The risk plan is about something that helps in knowing how to handle risk of the project
which is faced in the business. The risk plan is developed by identifying the risk and evaluating
the potential risk, after those strategies are created to handle risk and continuously it is
monitored. In context to cafeteria of Plush café the business may face some risk while
establishing the business. the risk can be related to change in laws and regulations of government
imposed, change in customer needs and preferences, shortage of raw material, low margins and
profits, high operating costs etc. This risk can be measured by tapping into new technologies,
training the employees, maintaining facilities of cafeteria, and equipment’s etc.
The contingency plan defines the course of action which is designed fir helping the
organisation in response to event that might happen or may not happen (Rocafull Piqueras, M.,
2018). This also refer as Plan B which works as alternative action if things are not working
according to planned. This involves the guidelines with steps that is occurring in event and how
it can be handle. In context to cafeteria, plush café is always prepared for the unexpected events
and makes staff ready to tackle the challenges. This can be handled by firstly identifying risk and
prioritize them on basis of likelihood.
Sales and marketing strategy
A sales strategy is a plan for accomplishing a sales goal that directs a start-up’s sales
activities. The capacity to sell is at the heart of any company's success. A sales strategy is a
written plan for positioning and selling a product or service to qualified customers in a way that
differentiates it from competitors. The purpose of sales plans is to provide specified goals and
guidance to the sales staff. The sales of plush café can be increase by expanding the menu by
adding more food items and combos with special offering. The offering of customer loyalty
program can help in increasing sales. The plush café can increase its sales through brochures and
leaflets which can be developed and circulated among the people who are visiting that particular
area. It will de developed with beautiful pictures of cafeteria and with several facilities which
will be provided to customers.
Marketing strategy in this all businesses need a marketing plan since it defines how they
will discover new customers and advertise their products and services in order to increase
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revenues. This involves the marketing Mix of 4Ps which involves product, price, place and
promotion (TOMASSONI, M., 2019). The Plush café will offer several products related to
coffee and eatery to its customers. On the price this will offer products, based on premium and
discounts that can attract more customers. In place, plush café will be located at great place in
London where the crowd is more and offering will attract more customers. Along with this
several promotional techniques will be used by Plush café such as advertising, promotional
strategy, publicity, sales promotion and public relations etc.
Finance and funding plan
A financial plan is a document that details a person's current financial condition, long-
term financial objectives, and strategies for achieving those objectives. It's essentially a synopsis
of your company's current financials and projected growth. High-quality coffee and a friendly
work atmosphere have always been priorities at the Plush Cafe. The small-scale business was
established to provide customers with coffee and breakfast in order to encourage them to return.
The proprietor of the Plush Cafe has supplied sufficient financing for the businesses. In less than
two years, successful management will help the cafeteria double its net value. The profit and loss
statement, cash flow statement, and balance sheet are all prepared (Urevic, G.D., 2020).
Management team
A management team is a group of top executives who, along with the company's CEO,
determine the company's strategy and oversee its operations. A management team business plan
is a portion of a proposal that outlines the qualifications and experience of a company's
management team (Wimartanti, S.N., 2020). The goal is to demonstrate to potential investors
that the professional’s company has hired which are well-educated and experienced, making
them capable of leading teams.
CONCLUSION
From the above it has been concluded that business plan presents an overview that helps the
company in making success in UK. Plush Cafe will have to consider better investment options in
order to better meet the needs and desires of varied customers in terms of product pricing,
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customer economic situations, and other considerations. In order to attract a big number of
customers to the cafe and sample the different delicacies that will be served, the cafeteria's
owners will need to design considerably more imaginative marketing strategies. Furthermore,
product selection and pricing must take into account the financial circumstances of the clients.
Customers from all walks of life will be able to enjoy the delicacies being served.
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References:
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