Business Plan for a Specialty Cafe in Saudi Arabia: MEDI369

This business plan details the establishment of a specialty cafe in Jeddah, Saudi Arabia, catering to health-conscious consumers. The cafe will offer a range of healthy options, including wheat bread, salads, yogurts, and various coffee beverages with alternative milk options. The plan includes market research highlighting the increasing demand for healthy food and coffee in Saudi Arabia, target consumer analysis, a SWOT analysis, and competitor analysis. It outlines the cafe's operations, product descriptions with pricing, and marketing strategies. Furthermore, the plan provides financial projections, including start-up costs, pricing structure, and sales objectives, along with future planning, vision, mission statements, and references. The cafe aims to differentiate itself by offering low-calorie, healthy options in a market where obesity is a growing concern.

Running head: BUSINESS PLAN OF SPECIALITY CAFÉ IN SAUDI ARABIA
Business Plan of Specialty Café in Saudi Arabia
Name of the University:
Name of the Student:
Authors Note:

1BUSINESS PLAN OF SPECIALITY CAFÉ IN SAUDI ARABIA
Executive Summary
The specialty cafe in Saudi Arabia will offer its consumers with various healthy product meals
such as wheat bread, salads, yogurts along with several milk based coffee including skim, low
fat as well as lactose free milk for lactose intolerant consumers. The cafe will sell its coffee
beverage healthy complementary side dishes through its store situated in Jeddah region of
Saudi Arabia. In consideration to the market statistics that obesity in Saudi Arabia is high and is
constantly increasing, the new specialty café will focus on offering its target health conscious
consumers with low calorie content healthy meal and coffee beverage options. The marketing
and advertising strategies that will be implemented by the new Café in Saudi Arabia will be
focussed on developing a strong reputation within the Jeddah locality that can further attract a
large number of highly loyal consumers.

2BUSINESS PLAN OF SPECIALITY CAFÉ IN SAUDI ARABIA
Table of Contents
Business Name and Description......................................................................................................4
Registration Details and Domain Name......................................................................................4
The Business....................................................................................................................................5
Products and Services..................................................................................................................5
Business Operations....................................................................................................................5
Products Description and Price...................................................................................................5
Licences or Insurance..................................................................................................................6
Equipment including Payment Options.......................................................................................6
The Market and Finances................................................................................................................7
Market Research..........................................................................................................................7
Target Consumers........................................................................................................................7
SWOT Analysis.............................................................................................................................7
Competitor Analysis.....................................................................................................................8
Start-Up Costs..............................................................................................................................9
Pricing Structure........................................................................................................................10
Marketing Strategy........................................................................................................................10
Advertising and Marketing........................................................................................................10
Promotion, Justification and Cost..............................................................................................11
Sales and Marketing Objectives................................................................................................12
Unique Selling Position..............................................................................................................12
Sales and Distribution Channels................................................................................................13
Future Planning..............................................................................................................................13

3BUSINESS PLAN OF SPECIALITY CAFÉ IN SAUDI ARABIA
Vision.........................................................................................................................................13
Mission Statements...................................................................................................................13
Objectives..................................................................................................................................13
References.....................................................................................................................................15
Appendix........................................................................................................................................16
Balance Sheet Projection...........................................................................................................16
Profit and Loss Projection..........................................................................................................17
Cash Flow Projection.................................................................................................................19

4BUSINESS PLAN OF SPECIALITY CAFÉ IN SAUDI ARABIA
Business Name and Description
Registration Details and Domain Name
In order to establish a specialty café in Saudi Arabia, registration and the domain name
for the business will be attained through getting approval from three local councils:
Ministry of Commerce, Online Method
 Registration will be attained for commercial record that will take time of three minutes
 Selecting a trading name such as “Roaster speciality café” and the approval from the
council will be attained through e-mail on the name. The domain name that is selected
for the business is “www.roaster/specialtycafe.sa.com”
 After approval fess of $ 120 each year will be paid
Chamber of Commerce, Online Method
 Cafe name“Roaster speciality café” will be registered
Civil Defence, Online Method
 Registration of the café and location that will have photos of the shop and rental
contract attached. To attain an approval the shop will be visited at least twice and the
shop will be approved after it is declared safe within 1 month (Alsos, Clausen, Hytti and
Solvoll 2016).
Final registration of the business will include contacting ministry of commerce and the
registration of the business in the Jeddah region of Saudi Arabia will be approved after:
 Conducting medical tests of all the employees
 Approval of meals provided with its ingredients and calorie contents

5BUSINESS PLAN OF SPECIALITY CAFÉ IN SAUDI ARABIA
The Business
Products and Services
The specialty cafe in Saudi Arabia will offer its consumers with various healthy product
meals such as wheat bread, salads, yogurts along with several milk based coffee including skim,
low fat as well as lactose free milk for lactose intolerant consumers. The unique value added
services along with products will offer the café a competitive advantage as barely any cafe in
Jeddah do not offer such varieties in milk used for making coffees. Moreover, healthy beverages
and healthy meal options will be offered by the Café and the main product of the café shop will
be coffee. For this reason the benefit of consuming coffee will be indicated in the beverage
menu along with offering consumption recommendations as per WHO standards (Baim 2016).
Business Operations
The manager of the specialty café will be responsible for managing daily operations. The
café will also have operations like ordering inventory, dealing with suppliers, developing
marketing strategies and daily duties of preparing food and serving them to consumers. The
baristas will be in charge of coffee preparation and other 2 employees will handle consumer
orders and offering table services (Burns and Dewhurst 2016).
Products Description and Price
In consideration to the market statistics that obesity in Saudi Arabia is high and is
constantly increasing, the new specialty café will focus on offering its target health conscious
consumers with low calorie content healthy meal and coffee beverage options. The menu that
will develop will include calorie content and nutrients included in each dish. The café will offer
vegetarian options and along with the food product menu indicated in the table below it will
also include a product for children “Babyccino” that will be made of milk foam and chocolate
powder on top. The competitive value added aspects of the products will be that it will offer
low energy dense coffees fur consumer wellbeing (Chang 2017).
Product Description Price Range
Coffee (skim, low fat, lactose free milk) $3 - $5
Bread based food products $2 - $6

6BUSINESS PLAN OF SPECIALITY CAFÉ IN SAUDI ARABIA
Yogurts of various flavours $5 - $7
Salads with various nutrient values $2- $6
Licences or Insurance
The licenses along with the insurances that will be acquired by the specialty café before
setting up its business in the Jeddah region of Saudi Arabia are indicated below:
 Business license that is most important for the owner to attain that is a government
issued license
 Food service license
 Employee Identification Number
 Food handlers permit
 Certain insurances will be attained for smooth operations of the café such as public
liability a product liability insurances, employee liability and stock insurances (Hou,
Huang, Tsai, and Lo 2015).
Equipment including Payment Options
The equipment that will be used in the speciality café in Saudi Arabia is indicated below:
 Food Resources:Necessary kitchen tools, cutleries along with fresh foods
 Coffee Equipment:The café will have 1 espresso machine “La Marzocco 3GP LINEA”, 2
coffee grinders “Anfrim”, 6 portafilers, alternative brewing achiness like batch brew, V60,
cold drip and aero press
 Staff:The café will employ 4 baristas and 2 employees in the kitchen and one manager
 Other Equipment:A cashier machine will be maintained along with I pad, tables, chairs
and furniture
 Payment options: The consumers visiting the café will be provided with the payment
options such as through cash or any type of online payments (McKeever 2016).

7BUSINESS PLAN OF SPECIALITY CAFÉ IN SAUDI ARABIA
The Market and Finances
Market Research
From the market research on Saudi Arabia coffee shop industry it is evident that coffee
consumption has attained tremendous growth at a rate of 2.5% in Saudi Arabia over the years.
The total sales recorded for coffee beverages were around $7.5 Billion in the year 2017
(McKenzie 2017). The warm climate of Saudi Arabia is very influencing for consumption of the
cold coffee beverages. Moreover, the consumes of the nations are also observed to face the
concerns related with obesity and overweight because of which they are shifting towards low
calorie food consumption lifestyle. The coffee consumers in the Jeddah region are observed to
be in favour of well-brewed and strong coffee beverages in a soothing environment (Rachmasari
2017).
Target Consumers
The new speciality café will be suitable for the age group from 12 years old and older
unless they have any medical condition. The specialty café is also for the target consumers
those are vegetarian and the consumers those are gluten and lactose intolerant. The target
consumers will belong to low and middle income level group that cannot afford a highly priced
coffee beverage (Rockas 2019). Focused on the preferences of these consumers the new café
will set average prices for its exceptional quality and healthy coffee beverages. The meal
offered will be light, simple and of affordable prices that is mostly suitable for the people and
families residing nearby Jeddah region. In attaining huge base of these target consumers, the
new café business will attempt to position itself as best coffee shop in Jeddah and gradually it
will open other businesses through opening other branches within the other localities of Saudi
Arabia.
SWOT Analysis
Strengths
 The café is not limited to the location
of the coffee bar but also offers variety
of coffee beverage options along with
Weaknesses
 The perceived business weakness is
that the Café is a start-up on a small
scale with just a single outlet. Fir this

8BUSINESS PLAN OF SPECIALITY CAFÉ IN SAUDI ARABIA
exceptional consumer service and
ambience of the coffee shop (Ward
2016).
reason it might have a limited space for
store expansion if need arises.
Opportunities
 The speciality café will be located in
Jeddah that is one of the busiest
regions of Saudi Arabia offering
unlimited opportunities to sell coffee
beverages and healthy snacks.
 Increased possibility of attaining
consumer visibility in the location and
the quality and variety offered can
increased base of repeat consumers
Threats
 One of the treat is increasing
competition from other coffee shop
and new entrants in the locality. New
entry with healthy options can pose a
threat (Hou, Huang, Tsai, and Lo 2015).
Competitor Analysis
From the market statistics it has been gathered that there exist 25 established snacks
and coffee shops in the Jeddah region that offers several coffee beverages and snack options as
per the taste preferences of the Saudi Arabian consumers. Certain renowned multinational
coffee shops also exist in the locality that can provide fierce competition to the new café such
as Starbucks and FCafe Roma (Hou, Huang, Tsai, and Lo 2015). However, the new speciality café
will attain competitive advantages over them as the competitors offer high energy drinks based
on caramels, high-fat creams with high calorie and low nutrient values. On the other hand, the
new cafe will offer healthier food options in the locality at affordable prices.
Competitor
Company
Established Date Value to
Consumers
Strengths Weaknesses
Starbucks 31st March, 1971 Best in the
industry fur
offering
exceptional quality
Renowned global
brand name,
broad global
supply chain and
Premium pricing
that pushes way
price sensitive
consumers and

9BUSINESS PLAN OF SPECIALITY CAFÉ IN SAUDI ARABIA
Arabica coffee
beans highly
preferred by its
consumers
extensive
diversification
through
subsidiaries
generalised
standards for most
of its products
FCafe Roma 19th April, 2010 Exceptional and
unique aroma of
freshly brewed
coffee that is
provided in high
quality to
consumers that
has increased their
preference
towards its
products
High distribution
and availability,
exceptional
advertising
strategies and
prospering brand
name
Increased
dependence on
costly raw
materials and its
product line is not
wide
Start-Up Costs
Summary Statement
Sources of Capital
Owners' and Other Investments $6,027,500.00
Bank Loans $5,000.00
Other Loans $90,000.00
Total Source of Funds $6,122,500.00
Start-up Expenses
Bldgs / Real Estate $50,500.00
Leasehold Improvements $22,000.00
Capital Equipment $67,000.00
Location / Admin Expenses $76,000.00

10BUSINESS PLAN OF SPECIALITY CAFÉ IN SAUDI ARABIA
Opening Inventory $0.00
Advertising / Promo Expenses $6,000.00
Other Expenses $50,000.00
Total Start-up Expenses $12,516,500.00
Pricing Structure
The product pricing strategy that will be followed by the new specialty café in Saudi
Arabia will be complementary pricing based on which the prices for products offered re set and
indicated in the table below. Following this pricing strategy the café will charge the lowest price
in comparison to its business rivals for its main product that is coffee (Hou, Huang, Tsai, and Lo
2015). Moreover, in order to compensate the price of the sides will be kept a bit high than the
competitors. This strategy will be followed as low priced items will tract consumers and once
they visit they tend to order slightly higher priced complementary snacks with their coffee
beverages.
Product Description Price Range
Coffee (skim, low fat, lactose free milk) $3 - $5
White breads $2 - $6
Yogurts $5 - $7
Salads $2- $6
Marketing Strategy
Advertising and Marketing
The marketing and advertising strategies that will be implemented by the new Café in
Saudi Arabia will be focussed on developing a strong reputation within the Jeddah locality that
can further attract a large number of highly loyal consumers. Marketing a coffee shop in the
nation will need highly reliance on the “Word-of-mouth” advertising along with encouragement
of personal recommendations from the target consumers. In-store promotional strategy of the
café will be offering loyalty card to target consumers that will be given and free coffee will also

11BUSINESS PLAN OF SPECIALITY CAFÉ IN SAUDI ARABIA
be provided after every 10 coffees consumed by a consumer (Hou, Huang, Tsai, and Lo 2015).
Other promotional materials that will be used include flyers, consumer referrals and cross-
promotions by means of other businesses in the society. The cafe will promote its offerings
through employing certain social media promotional channels such as Facebook, Twitter and
Instagram that are mostly used by Saudi Arabian residents. The social media pages of the café
will include engaging content on its store design, food and beverage preparing details along
with promotional videos on healthy consumption habits. Moreover, the advertising and
marketing strategy of the new cafe will also consider implementing loyalty and incentive
programs in-store for attaining competitive edge over rival’s strategies (Burns and Dewhurst
2016). For instance, the café can consider offering complementary healthy snacks with the
coffee beverages in the initial months of its business when consumers spend certain amounts,
possibly increasing the value of free food offerings with growing years.
Promotion, Justification and Cost
 Website Domain Name and Content- The domain name that is selected for the business
is www.roaster/specialtycafe.sa.com and the content that will be included in the
company’s website will be its store location, images of the store ambience and food
offerings along with descriptions of the services and menu along with discounts offered
by this new café.
 Logo Development and Business Cards- The logo that will be displayed before the shop
name and in the business cards of the business is indicated in the figure below.
 Social Media Presence- The cafe will promote its offerings through employing certain
social media promotional channels such as Facebook, Twitter and Instagram that are
mostly used by Saudi Arabian residents. The instagram videos will include consumer
experiences in the coffee shop and their enjoyable experiences in the state that can