Detailed Business Plan for Le Café Coffee Shop in Australia

This business plan outlines the establishment of Le Café Coffee Shop in Australia, detailing its mission to provide high-quality food, drinks, and services in an eco-friendly and cozy environment. The plan covers various aspects including the company's history, mission, and objectives, along with a detailed marketing plan encompassing market analysis, competitive advantages, target market selection, and marketing strategies. It also includes an operational plan addressing company structure, key employees, production, and risk management. Furthermore, the plan provides financial projections, including expected and worst-case scenarios, and outlines sources and uses of funds. The coffee shop aims to offer a variety of coffee and non-alcoholic beverages, three-meal facilities, and a unique ambiance with art gallery-like walls and open-mic events to attract a diverse customer base. The plan emphasizes competitive advantages, strategic options, and a focus on customer satisfaction through quality products and services. The business model chosen is Mass Appeal Model to facilitate the customers by preventing them to wait in long queues to get their coffee.

Name of your business
Le café coffee
Name of the student:
Name of the university:
Authors note

BUSINESS NAME
Business Plan
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Dated: _________
Copy #___ of ___ printed
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EXECUTIVE SUMMARY
The coffee shop will supply the customers to have good quality food and services at an affordable
price. It will provide eco-friendly and cozy surroundings to its visitors. It will have several items
so that the customers are supplied with many choices. Varieties of coffee will be offered to the
customers besides coffee; it will also provide different types of nonalcoholic drinks and juice. It
will also provide three times meal facilities, including snacks. The infrastructure of the coffee
shop will have a cozy and eye-catching surrounding. The coffee shop will be divided into different
segments, there will be a comfortable sofa at one side of the coffee shop, and another side will
have a table and chairs. Soft music will be played for the customers and also books shelves will be
there with different themes. On some special days, there will be open-mic and poetry making
competition on these special days there will be a ticket system to avoid chaos on the main day.
The walls of the coffee shop will reflect as an art gallery. The building of the coffee shop has
parking lord. The kitchen and bathroom will require little maintenance. The people living around
the coffee shop incur a high income there income line is always above its consumption line. The
coffee shop will have 4546 square feet of the area as the times passes it can expand the coffee
house into a restaurant according to the situation.
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TABLE OF CONTENTS
EXECUTIVE SUMMARY.............................................................................................................2
THE COMPANY AND THE PRODUCT.......................................................................................4
Company History, Mission and Objectives.............................................................................4
The New Product or Service...................................................................................................4
MARKETING PLAN......................................................................................................................4
Market Situation..........................................................................................................................4
Market Size, Market Niches, and Growth prospects...............................................................4
Current and Potential Rivals and Substitutes..........................................................................4
Our Strategic Advantages............................................................................................................5
Initial Competitive Advantages...............................................................................................5
Sustainable Competitive Advantages......................................................................................5
Strategic Options and Alternative Chosen...................................................................................5
Alternative Business Models Considered................................................................................5
The Business Model Chosen....................................................................................................5
The Target Market Selected....................................................................................................5
Marketing Strategies...................................................................................................................5
Product Design Strategy.........................................................................................................5
Pricing Strategy......................................................................................................................6
Promotion Strategy.................................................................................................................6
Distribution Strategy...............................................................................................................6
Warranty, Packaging, and other Marketing Strategies...........................................................6
OPERATIONAL PLAN..................................................................................................................6
Company Structure and Ownership........................................................................................6
The Top Management Team...................................................................................................6
Other Key Employees, Associates, and Relationships............................................................6
Production and Operations..........................................................................................................7
Production Plan......................................................................................................................7
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Logistics of Component Supplies, Inventories, and Distribution.............................................7
Research and Development.........................................................................................................7
Future Products and Services.................................................................................................7
Future Geographic Markets....................................................................................................7
R&D Facilities and Personnel................................................................................................7
Risk Reduction Strategies...........................................................................................................7
Risks Perceived.......................................................................................................................7
Pro-active and Re-active Risk Strategies................................................................................7
Exit and Harvest Strategies.........................................................................................................7
FINANCIAL PLAN........................................................................................................................8
Underlying Assumptions and Summary Financials.....................................................................8
Expected Case Scenario..........................................................................................................8
Worst-Case Scenario..............................................................................................................8
Sources and Uses of Funds.....................................................................................................8
Conclusion..............................................................................................................................9
APPENDICES...............................................................................................................................10
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THE COMPANY AND THE PRODUCT
Company History, Mission and Objectives
Company History:
Le café coffee has been named as an Australia Company for a coffee shop. It is
located in Australia and has various branches in different parts of the world. An
experienced group of people manage the team. It is a Private Limited company. The
company’s main focus is to satisfy the customers and fill their needs and demands. The
main target group of the Company are all the various types of people and mainly the high
class standard people.
Mission:
The Company provides a comfortable as well as a friendly atmosphere where the
people receive a good quality of entertainment, food and services at affordable prices. It
usually offers customers the best and innovative coffee at best and considerable price. In
coffee shop, customer’s expectation are always high. Like others company, this company
is also want to increase their customers by offering a good quality of coffee.
Objectives:
 The coffee shop maintains an outstanding and high quality of food and service.
 The Company provide a cover charge without any first-rate live entertainment.
 The Company offer discount coupons.
 They are used and maintain a customer mailing list
 To make sure that the environment is amicable for the customers.
 To the increase sales, advertisements should be done every month.
 Provide necessary training to all the new employees
 Meeting to be held every month to avoid all the problems and conflict.
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 Proper staffing should be there to avoid duplication of work.
 Design the service and kitchen area to be efficient.
 To provide a proper working environment for the employees.
 To provide a suggestion box to the customer, so that their perspective can be taken
care off.
 Encourage creativity
 Performance incentives
The New Product or Service
Coffee shop offers to their customers a variety of options and people can select their
coffee, juice with their desires. The price of the coffee is depend upon the quality of the materials.
But moreover, it will guarantee a lesser amount than that of the competitors. The coffee shop will
provide a first class service, cold and hot beverage, they are related suppliers, include the whole
bean and flavor syrups, fruit smoothies, ground coffee, jet teas, fresh backed and concentrated
milk. The coffee shop will provide a good quality of products that will be enables the full service
to espresso stands and coffee shops. Finally, they are personally researched each and every coffee
sampled, and then offer to ensure the quality of the coffee (Lee & Lee, 2017).
The essential key components of the business is not only the products, is equally depends on
the service. In addition to the full time service delivery, there are important types of service
elements that are also offered to the customers:
 To help the customers and increase the sales development, there is advertising and
creation of creative promotions (Hyra, 2015).
 Designing the customers marketing materials including pre- purchased beverage,
promotional posters, printed banners, reader boards and punch cards.
 Training and routine maintenance equipment (Alsos, Carter & Ljunggren, 2014).
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MARKETING PLAN
Market Situation
Market Size, Market Niches, and Growth prospects
The size of the market for the coffee shop is divided into two groups. The first group
consists of the desire customers that already created in graphic and to be on the station of coffee
shop. In case of second group are consider to prefer the custom artwork that is to be placed on
their coffee shop.
Current and Potential Rivals and Substitutes
Since 1987, dynamics changes in the industry rivalry and substitutes within the specialty
of the coffee shop industry. Previously Starbucks the most renowned coffee industry used to
compete with minor coffee retailers but as the time has passed now it competes with the coffee
retailers who are specialized in the field of coffee and earning the second position after Starbucks.
Our Strategic Advantages
Initial Competitive Advantages
 Employees belonging to the coffee are well mannered, knowledgeable and very helpful.
Employees who are the well-mannered will make feel the customers satisfaction and
comfortable, because in many times customers do not know much about the coffee.
 Offering the free Wi-Fi to the customers. By providing a free internet, so many coffee
shop owners are providing the smartphones and laptops to stay there customers as long as
possible and turn of the sip of more coffee. Some of the peoples are like to work and
while drinking hot coffee.
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 The main reason of the coffee shop is providing the customer obviously for coffee, but
some of the coffee shop are also selling the breakfast, sandwiches and croissants.
Sustainable Competitive Advantages
Coffee shop has a several essential strengths. The company is built some strong
sustainable of competitive advantages. The global network of coffee shop, strong brand image and
premium quality are its major strengths.
Strategic Options and Alternative Chosen
The Business Model Chosen
The Business model chosen has been the Mass Appeal Model. This type of model
is followed by most coffee shops. The model facilitates the customers by preventing them
to wait in long queues to get their coffee. It provides them fast services. It also provides
the customers with the same flavor and taste across all its franchises. This makes sure that
the expectations of the customers are fulfilled and encourage them visit again. Speed and
consistency play a great role in this type of business model. The friendly environment
allows the customers to relax at the shop with their close ones and spend quality time.
The Target Market Selected
The target market customer for the shop has been between 16 to 50 years old. Per year the
income level is between $25,000 and $150,000. The coffee shop is live in 3 miles. So they are the
white board collar workers with the expendable income (managers and professionals). The post
graduate work peoples are the target customer. So this industry has a target on the young youth
who especially a college student and as well as work in the corporate world (Noyes & Linder,
2015).
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Marketing Strategies
The important reason for its marketing strategies has been to provide the increasing
visibility of coffee shop that use to emphasizing individual customer’s ability to customize their
designs completely. Generally, the coffee shop will apply different locations in case of
communication their messages (Pakroo, 2018).
Product Design Strategy
It is a combination of all items and product lines that is offered by a particular seller for
selling to the buyer. Generally, the focus has been on the coffees that include mochas,
cappuccinos as well as espresso. Therefore, the margins of profit for the company is much higher
than the regular coffee that are generally available. The company has not made use of the drip
machines to high price of coffee. So that each and every cup of coffee is up to the minute
delicious and fresh. The company’s product design strategy would be competitive and by
including the higher end portion of the market. So that it can be believed that the customers are
willing and happy to pay the high prices for the good cup of coffee that they get (Randall, 2015).
Pricing Strategy
Pricing strategy is the art of converting the value of a product into quantitative terms to its
customers at a time. Pricing strategy is depend on the type of coffee people want. Because each
and every coffee has its specific taste. It also depend on the customer choice of taste, (Thongrawd
& Rittboonchai, 2018).because all the taste of coffee cannot be in each type of taste. It also
depend the location from where the customer is ordering their coffee (Thongrawd & Rittboonchai,
2018).So the pricing strategy is divided into two parts: price skimming and penetration pricing. In
price skimming the high initial price of the coffee and sometime price reduced the overtime. In
penetration pricing the lower initial price of the coffee.
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So the food price of coffee shop will be in the standard range and affordable price to other
coffee shops in the area. The cost of the food is determined not only the price of the area but it
also depends by the % of the actual price of the food. So the price of the coffee and food is based
on the set of %. Traditionally the coffee shops are keep the foods price ranging from 27% to 31%.
Promotion Strategy
The main purpose of promotion strategy is relating to marketing, use to emphasis the
visibility for coffee shop, with providing proper importance to the customers’ ability in case of
complete the customization of their own coffee shop. The coffee shop uses many different
location points to express and communicate those messages. So the promotion has been a process
for marketing communication to facilitate the informing, reminding and influencing of the
consumers or users in favor of our product and service provided. Promotion is considered as the
3rd element of the marketing mix. A promotion message has two basic purpose: persuasive
communication, tool of competition (Igou & Coe, 2016).
Distribution Strategy
A distribution or location strategy is a function that shows the possible values for a
variable and how often they occur. So the coffee shop will use the several different venues to
communicate this message (Bulut, Demirbas & Ferhatosmanoglu, 2014).
Warranty, Packaging, and other Marketing Strategies
In le café coffee shop the packaging includes all the activities of designing as well as
producing the container for the product. The main reason behind the marketing strategies is to
provide the increasing visibility of coffee shop that use to emphasizing individual customer’s
ability to customize their designs completely. Generally, the coffee shop will apply different
locations in case of communication their messages.
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