Business Plan for Black Eye Cafe in London

This business plan discusses the financial and operational viability of the Black Eye Cafe, a new coffee shop in London. It includes information on the target market, competition, pricing strategy, advertising and promotion, ownership and management plan, and financial projections.

Business plan

Executive summary
Business plan includes the document which represents different aspects of starting up new
project within market. It helps the entrepreneur to analyse feasibility and viability off new
ownership. The black eye cafe is a new coffee shop started in London. This report discuss is
about business planning which will provide financial as well as operational viability of this cafe
in market.

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Business plan for potential investors...............................................................................................3
Problems in café..............................................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
The new business plan started by the owner is argosy naming the black eye. This is a cafe
situated in Kennington Lane, London and it provides high quality coffee to the customers. There
is a relaxing and meditating environment at this cafe. It will provide people to spend their leisure
time in peace.
MAIN BODY
Business plan for potential investors
The black eye coffee house is basically made for all the coffee lovers of London. This cafe
is planning for serving the highest quality coffee along with snacks in a comfortable and trendy
atmosphere. There will be peaceful environment provided two people so that they can work,
enjoy with friends and family and be happy. The location for this cafe is Outstanding as it is
situated in the prime area of London. There is excellent customer service will be provided for
building steady customer base. The owners are very excited to provide good service to
customers. The owners are being into food service industry since many years. They know how to
manage the customer service in a food sector. The main product which are provided in the cafe
will be government coffee products like cappuccino, latte, espresso and variety of snacks. The
speciality in dishes will be French fries provided by this cafe. They will be dry fried or air fried
and will be having less cholesterol. The cafe situated in the war easy walking distance from
University, nursing college and some of the office complexes. It will help in catering these
students and young office workers with plenty of seating space. Customer service with a trendy
vibe will be effectively provided in this area. This area is also immediate area with less fast food
vendors. There is need of managing the food supply effectively for impressing customer At
every point.
This cafe will be capturing the customers I by providing government, non machine made coffee
products at affordable prices. This will attract a lot of customers to have attraction towards the
new cafe. The location selected for the cafe is 2000 square feet of space, there is also room for an
outdoor ratio. There is no need of more renovation. This space has been vacant for several
months and now owner is motivated for offering a four year lease with an year free. It is decided
that sales revenue of this cafe will be increased from 2000 dollars in first six months. In order to
reduce the operating expenses, there will be two principles for load which will include on site on

a full time basis and of site links (BAKHSHI, 2016). There will be also reduced staffing costs,
supervision as well as maintenance of quality control.
This cafe requires or start up funding for one Lac dollars for renovation, lease cost, furniture and
equipments. The principals have one Lac dollar in cash and are going to obtain rest of them from
investors.
In order to provide loan, it is important for all the investors to know what exactly coffee industry
business is going to earn. This scenario for the black eye coffee cafe is mentioned below:
The coffee industry
It is the scenario of London that millennials have overtaken baby boomers. These people are
more social and mobile than the previous generations. People are more willing to have coffee
with friends in a trendy and public location. This has increased popularity of coffee shops and
cafes. According to this statistiques of London, there are following indications which are made
for coffee shops:
 There is rise in government coffees popularity across diverse demographics
 In UK, people consume more than 500 million cups of coffee per day
 The retail sales of coffee exceeds $50 billion per year
Position of the black eye cafe in industry
Kennington Lane is an affluent area which is having wide range of students and young
professionals. This is an ideal location for coffee shops and cafes. Students and young
professionals are more prone towards coffee and snacks that is why this is the right place for
introducing the café (Bhadury and et.al.,2017). According to the market research conducted by
this cafe, it is analysed that eight out of 10 people of London consume four cups of coffee per
week.
The competition
There is high competition of this coffee shop with immediate areas having two more coffee
shops which are at a substantial parking area. But one of them is not offering free Wi-Fi. This is
a key point which is used by us in cafe in order to attract the customers.
Unique feature of the black eye cafe
Marketing strategy of the black eye cafe is to cater high quality products and great service to
young professionals and students. The main objective is to make these customers happy so that
they can spend plenty of seating indoors in the cafe and enjoy their time. The main aim of this

place is to make people meet their friends and families and relax by having great Cup of coffee.
This opportunity provided for enabling students and other business professionals to readily
communicate with the business activities or school activities respectively.
Market analysis and competition
The target market is thoroughly evaluated and analysed before starting the idea of this cafe.
There is enough demand for the coffee and snacks in the area which is making the coffee
business a viable idea (Chung, 2020). The comparative analysis consists of assessments of
competition regarding the ways by which coffee business can compete within the sector. There is
proximity for schools as well as office complexes that the main target market are the business
professionals and college students. Both these categories are a heavy consumer of tea, coffee and
snacks. That is why this business is a viable idea. The customer survey conducted in recent years
demonstrates that there is high demand of high end coffee shop in London. That is why serving
outdoor seating and available parking will increase the number of customers of this cafe.
Pricing strategy
This cafe is focusing upon speciality coffee including cappuccino, espresso, mochas and many
more. That is why the profit margins are much higher than our regular coffee shop. In order to
analyse this, let’s consider price of a regular coffee which will not include the usage of trip
machines that is why each Cup will be solved in half price of the espresso coffee. The pricing is
competitive with higher end of market. Customers are happy for paying top prices for great Cup
of coffee.
Sales
The black eye coffee cafe is offering counter service in a professionally developed and designed
cosy and inviting interior space (Danila, 2019). There is interior seating with a mixture of
smaller individual tables for providing people are comforttable zone. The exteriors seating costs
for a weatherproof table and chairs are available with sun shade umbrellas. This cafe will open
from 6:30 AM to 9:00 PM on weekdays and 7:00 AM to 9:00 PM on weekends. This cafe will be
accepting cash, credit and debit and also Apple Pay and Amazon pay.
Advertising and promotion
It is very important for the cafe to meet the customers and potential customers. That is why
advertising and promotions are to be conducted for attracting more number of customers. For
minimising costs and connecting with customers the advertising used by the black eye cafe

includes poster on local campus of University, website, small videos and photos on Facebook,
Instagram and Twitter. This cafe is also going to start loyalty cards which are very effective and
these are basically used for custom design rewards for promoting the business.
Ownership and management plan
The ownership structure
The black eyes cafe is private Corporation which is registered in London. this cafe is owned by
two brothers. The management is handled by both of them. As these people have experience in
food service management that is why they are going to provide trained and professional service
to customers.
External resources and services
A design service naming Milford Is contact for managing the interior design of premises. Their
counting services are managed by the owners.
Operating plan
The physical requirements of business include equipment’s, retail space, supply needs, Labour,
inventory all these will be included in operating plan. For this cafe, there is requirement of
custom facilities, specialised equipment, supply chain and multiple employees.
Facilities
The premises will include 2000 square feet of indoor space in a well maintained and modern
area. There is 500 square feet of outdoor space which is providing lockup racks for bicycles.
Owner is responsible for recycling, trash collection and pest control as well as security.
Problems in café
There are basically 3 problems which have been existing in the competition with the present
area:
 Inconsistent product: there are few discerning customers who are reluctant for becoming
regular patterns of a coffee Shop that is providing high quality coffee and snacks.
 Lack of patio seating: there are several people who prefer to consume the beverages and
food outside on a sunny or rainy day.
 Lack of parking: it is not easy to attract customers when there is lack of parking area.
It is evaluated that the local customer base consists of approximately 5000 students from do
universities., 200 University staff and 700 to 800 business professionals and office workers. Both

these sectors are having solid attendance and expanding the population. The local business
market is strong and it has been relatively unaffected by the economic downturns.
The existing competition is minimalizing the lower grade beans and inexpensive equipment’s
others are thinking in inconsistent product quality (Doležel, 2017). It has also increased the
number of dissatisfied customers. In context of the black eye cafe, it is seen that these service
providers are passionate about coffee and they intend for focusing upon serving the highest
quality coffee to the customers. This cafe source is premium beans and snacks for maintaining
the freshness and healthiness of the product. This cafe is using top of the line espresso machine
and other associated equipment. It also provides barista with professional trained people. By
focusing upon consistency, quality and great customer service, this cafe will be able to achieve
customer loyalty.
Staffing : there is two full time and four to six part time barista’s which are hired for this new
cafe. These are trained professionals and they know how to increase customer satisfaction level.
Department employees are sourced from local postsecondary institutions (Gomes and Silva,
2020). There are regular duties and responsibilities assigned to them in order to complete their
cafe work. For increasing employee loyalty, a bonus and profit sharing system is provided in the
cafe.
Equipment
Commercial grade espresso machine and espresso grinder are the two basic equipments which
are involved in this cafe. The owners are presently negotiating purchased of several used
commercial equipments from previous restaurant owners. These include glass door fridge,
dishwasher, storage bins and microwave. The maintenance contract for equipment is negotiated
with a local vendor.
Supplies
The cafe is negotiated an agreement with the local coffee wholesaler for supplying premium
government Colombian espresso beans. These will be used in providing coffee to customers.
Others of drinks, milk, juices and fruits will be sourced from a local shop nearby.
Financial plan
It is the most important section of the business plan. There is need to have debt financing and
attracting the investors. The financial plan includes the areas where business will grow and be

profitable in market. The income statement, cash flow statement and balance sheets are
mentioned below:
Income statements goal on these are the projected expenses, revenues as well as profits which are
involved in managing first year for a startup business. The cash flow projections provide
monthly anticipated revenue that can be generated by the expenses it is very important in order to
manage the cash flow and have a good credit risk (Heo, Kang and Kim, 2018). The balance sheet
includes summary of various liabilities, assets as well as equity for managing business at a
particular point of time. It is required that business should be operated daily and balance sheet is
maintained accordingly. Pensions, medical an income taxes are all applicable for incorporated
businesses and these are provided in retained or earnings.
The break even analysis provides information about what level off sales is required for meeting
the organisational profits and sales.
2020 2021 2022 2023 2023 2025
Non Current assets
Intangible assets 5,793 5,967 6,136 6,330 6,520 6,716
Tangible assets 52,812 53,396 56,028 57,709 59,330 61,223
Investments 10,693 11,013 11,333 11,685 12,035 12,396
69,298 71,377 73,518 75,723 77,996 80,335
Current assets
Stocks 28,571 29,328 30,311 31,220 32,157 33,122
Trade debtors 26,367 27,158 27,973 28,812 29,676 30,567
Short term deposits 13,779 15,222 15,679 16,139 16,633 17,133
Cash at bank and in
hand 13,632 15,071 15,523 15,989 16,368 16,962
83,339 86,879 89,386 92,170 93,936 97,783
Current liabilities
Bank loans and
overdrafts 9,610 9,898 10,195 10,501 10,816 11,131
Trade creditors 19,393 20,078 20,680 21,301 21,930 22,598
Other Creditors 678

698 719 731 763 786
Income tax payable 3,585 3,693 3,803 3,917 3,035 3,156
Other creditors
including tax and
social security
3,562
3,699 3,830 3,985 5,135 5,289
37,928 39,066 30,238 31,335 32,688 33,969
working capital 36,321 37,813 39,238 50,725 52,237 53,815
Total assets less
current liabilities 115,719 119,191 122,766 126,339 130,233 133,150
Non Current
Liabilities
Bank loans and
overdrafts 16,506 17,001 17,511 18,037 18,578 19,135
Other Liabilities 7,303 7,523 7,739 7,981 8,221 8,367
23,810 23,523 25,260 26,018 26,798 27,602
Provisions for
liabilities 8,093 8,337 8,587 8,835 9,110 9,383
Net assets 83,815 86,329 88,919 91,587 93,335 97,165
Capital and reserves
Called up share
capital 39,336 30,619 31,838 33,093 33,386 35,717
Reserves 1322 1,362 1,303 1,335 1,388 1,533
Retained earnings 33,057 33,339 35,679 37,050 38,361 39,915
Total equity 83,815 86,329 88,919 91,587 93,335 97,165
The required capital for starting the black eye cafe is $2,00,000. The contribution provided by
owner is 1 Lac and investors and family members are providing the other one Lac dollars. The

required amount will include loan from investors and family members will be paid after few
months. There is an acceptable exit strategy which can be used by this cafe is to sell the business
to another company (Houda, 2018).
The black eye cafe is a family business which is started by the two brothers in order to on
profit and money. This is a cafe which will provide high quality coffee to customers of London.
There is a friendly, comfortable atmosphere which will be provided to people. They will also
receive quality food, entertainment and service at affordable price. The following report is about
the business plan for investors. It includes the reasons why investors should provide loan to this
cafe. It includes market analysis and the strategies which are used by this cafe in order to operate
in market.
CONCLUSION
From the above discussion, it is concluded that before starting a business venture, there is
need to manage the financial funding as well as operational management in order to have a
successful business. It is also concluded that while managing the planning and risks associated
with business, there are few aspects which are followed including market analysis, financial
analysis, monitoring and control and many more. These provide help in managing the risks
associated with starting the cafe. For every entrepreneur, it is viable that they are controlling the
activities associated with business planning.

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