Innovation and Entrepreneurship: Café Rose Business Plan

This report presents a comprehensive business plan for establishing a café named "Café Rose" in London, UK. It begins with an executive summary outlining the café's objectives, which include achieving a 20% profit margin and creating a comfortable social environment for customers near The London Eye. The plan details the café's ownership structure as a partnership, its marketing strategies, and financial projections, including startup costs, operational expenses, and anticipated revenue. The report then delves into the business idea development, encompassing market analysis (population density, youth demographic, purchasing power, and tourist location), industry analysis (competitive landscape and trends), operational details (location, interior design, and ambiance), SWOT analysis (strengths, weaknesses, opportunities, and threats), and financial requirements, providing a holistic overview of the café's potential for success.

INNOVATION AND ENTREPRENEURSHIP

Table of Contents
INTRODUCTION.................................................................................................................................3
TASK 1.................................................................................................................................................3
Develop a Business Plan for Café in UK...........................................................................................3
TASK 2.................................................................................................................................................5
Explain the Business Idea development of the Café Rose on the basis of Market analysis, Industry
Analysis, Operational details, SWOT analysis and Financial Requirement.......................................5
CONCLUSION.....................................................................................................................................7
REFERENCES......................................................................................................................................8

INTRODUCTION
Innovation is referred to conversion of an idea or approach into action. Innovation is
often considered as a successful exploitation of ideas commercially. An innovation deals
with adding value or sometimes creating it by improving already existing goods or services or
by developing the goods or services of value that are new in the market and have not been
into existence in the market. Innovation is a creative process for which the ideas can occur
from inside the business as well as outside the business. The ideas presented by employees or
in houses designer can be termed as innovation from inside the business and ideas introduced
by suppliers, customers, media, researchers etc. are termed as innovations from outside the
business (Bouwma-Gearhart, Carter and Mundorff, 2021).
The report revolves around the Business Plan for a Café in UK. The report consists of
a business plan and various business Idea development process such as market analysis,
Industry analysis and so on.
TASK 1
Develop a Business Plan for Café in UK.
A business plan varies from one person to another. A business plan is based upon
various aspects such as type of business and location of the business. A business plan consists
of various topics such as an executive summary, company description, market analysis,
restaurant design, location etc. The report consists of a business plan of a café named Café
Rose (Huang and Zhao, 2021).
Executive summary
The business plan focuses on the opening of a café named “Café Rose” which is
located in London surrounded by famous tourist locations such as The London Eye. The main
objective behind establishing the café is to earn a profit of approximately 20%. The café aims
to provide a location and atmosphere to their customers where they find themselves
comfortable in socializing with each other and on the other hand have a relaxing atmosphere.
The café will be operated under a partnership. The menu of the café will include varieties of
coffee, flavored tea and snacks in order to match the taste of their customers.
Introduction of the café
The café is located in London by the name of “Café Rose”. The café will be
developed while keeping in mind the preferences of people in UK. The café is located in the
surroundings of the tourist location “The London Eye”. The café aims to provide a location
and atmosphere to their customers where they find themselves comfortable in socializing
with each other and on the other hand have a relaxing atmosphere by soft music in the cafe.
The café will be well stocked with the popular books and magazines to attract the book
lovers. The café will be operated under a partnership. The menu of the café will include
varieties of coffee, flavored tea and snacks in order to match the taste of their customers.

Objectives
The main objectives of the business behind café Rose are-
 To establish at least 3 branches of the café in the different locations of the city which
have a dense foot fall.
 To gain at least a profit of 20% with operation in the business (Huang, 2021).
 To maintain and establish a wide and loyal customer base.
Aim
The aim behind establishing the location is to provide a location and atmosphere to
their customers where they find themselves comfortable in socializing with each other and on
the other hand have a relaxing atmosphere by soft music in the cafe. The café will be well
stocked with the popular books and magazines to attract the book lovers. In order to establish
a wide and loyal customer base, it is important to consider the feedbacks from the customers.
Ownership
Café Rose is established under a partnership type of business. The stakes of the café
are held by the two friends who are in partnership. The partners will split their responsibilities
and shares in the profit as per the partnership deed. The partnership will help them in having
a proper management of the business.
Marketing
The motive of the business is to establish the café among the popular eateries in the
town. In order to achieve the target the partners will focus on the basic and the digital
marketing techniques. Also the café could introduce some special offers with limited time
period to attract the customers towards the café (Li, 2021).
Finances
The cost in establishing the business is expected to be 150 thousand dollars. It is
assumed that every customer spends at least 50 Euros on an average in the café and an
average meal costs for 5 Euros. Also the café aims to serve at least 200 customers on daily
basis. Apart from this the business aims to hire a minimum staff of two cleaners, a manger, 5
kitchen staff and at least 5 waiting staff. So accordingly the staff salary costs up to 500
thousand Euros. The annual revenue from the daily visitors is estimated to be 1,500,000
Euros. After deducting all the necessary expenditures from the revenue the profit is aimed to
be of 550,000 Euros for the first annum.

TASK 2
Explain the Business Idea development of the Café Rose on the basis of Market analysis,
Industry Analysis, Operational details, SWOT analysis and Financial Requirement.
The business Idea development of any business is based upon various aspects such as
the market analysis of the business, Industry analysis, SWOT analysis of the business,
financial requirement of the business along with the basic operational details. The Business
Idea Development for the Café Rose is explained below-
Market Analysis
The analysis of market helps in studying the trends in the market. It helps in analyzing
and predicting the profit that can be earned from a particular business with the help of the
surroundings. The aspects which help in deriving the market analysis are explained below-
 Densely populated area- If the café is established in a densely populated are the
chances for having a huge footfall is more as compared to footfall in the sparsely
populated areas. The cafes in these areas have customers at almost every time of the
day (Ma, 2021).
 Teenage population- The youth population in the specific area of the café plays a huge
role in increasing revenues of the café. The cafes usually witness youth customers
who meet for casual hangouts or for discussing various projects and having a quality
time together. The café situated in the area with more youth is likely to have more
revenue.
 Purchasing power- If the cafes are situated in the area where the people have a high
purchasing power, they tend to spend more which will somehow increase the revenue
of the café.
 Tourist location- The café will be established in the location which has tourist
throughout the year. This tends to attract customers for the café and adds to the
benefits for the café ( Sendra and Ferreira, 2021).
Industry Analysis
Industry analysis is a business tool that helps the organization to understand their
position of the business in the market while comparing them with the competitors. The
industry analysis helps in understanding the future threat for the organization. It also helps in
detecting future scope and opportunities for the organization. The industrial analysis can be
derived from the different patterns of buying behavior and the completion in the market. The
pattern that is witnessed by the cafes and restaurant is mainly dependent upon the latest
trends and the reputation of the business in the market. Customers when buying the product
focus upon the price and quality of the product. Hence if the business of the Cafe Rose
wishes to expand it profits and business then they must emphasize on the quality of their
products in order to satisfy their customers. The food quality, ambience and the service must
be too good in order to receive positive feedbacks from the customers.

The competitors are the ones who belong to the same industry and deal in same
products and services. There are various competitors for the Café Rose in the food industry. It
is a huge task for the Café Rose to tackle with the competitors (Xin, 2021).
Operational Detail
The Café Rose will be established in the area of dense footfall in London situated near
the popular tourist place of London, The London Eye. The location provides a majestic view
to the visitors. The reason behind the dense footfall in the location is the existence of the
shopping complexes in the surrounding. Apart from the shopping purpose, people visit here
to spend a quality time with their near and dear ones. Hence this location is most suitable for
establishing the café in London. People in London have a huge interest in conducting
experiments for taste and hence they keep trying new cafes and their famous delicacies in the
city.
The café will be established with high class interiors in order to attract the photogenic
customers. The colour of the walls will kept in order to provide a soothing effect to the
customers that help them in having relaxation and peace of mind. The café will have a soft
music being played to have soothing effect and it will also have a separate books section
which will include various popular books and magazines in the ambience of the café (Yıldız,
Yumuk and García-Fernández, 2021).
SWOT Analysis
STRENGTH-
 The cafe has a unique interior and
taste in town.
 It is close to area with tourist
attractions.
 It is surrounded by high footfall.
 It has good transportation
connectivity.
 The café runs on the idea of low
operating costs which leads in earning
higher profit.
 The café attracts book lovers along
with the food lovers.
WEAKNESS-
 The café has no customer base at
present.
 The cost will be higher at the time of
establishment of the café and it will
require a huge investment.
 There owners have no experience in
the food industry or for running the
business.
 The cage has no brand equity
established as of now.
OPPORTUNITIES-
 The café has the ability to attract
customers from the tourist location.
 The café could expand its menu by
providing different cuisines.
 The café has an opportunity to expand
its business in form of various
branches in the areas with high
footfall.
 The café can try its best build good
brand image.
THREATS-
 The café has threats from its
competitors in the market.
 The change of trends in the industry
is also a threat to the café.
 Change in preference of the customer
or unavailability of the desired
product is also a threat to the café.

Financial Requirements
Every business requires finance or money in order to set up a business. Arrangement
of finances is a very hectic task in the start of the business as we need to make people trust
our business plan and its probability of success. The café needs to arrange its finances in
order tackle with the expenditures which are essential in order to operate the business.
The cost in establishing the business is expected to be 150 thousand dollars. It is
assumed that every customer spends at least 50 Euros on an average in the café and an
average meal costs for 5 Euros. Also the café aims to serve at least 200 customers on daily
basis. Apart from this the business aims to hire a minimum staff of two cleaners, a manger, 5
kitchen staff and at least 5 waiting staff. So accordingly the staff salary costs up to 500
thousand Euros. The annual revenue from the daily visitors is estimated to be 1,500,000
Euros. After deducting all the necessary expenditures from the revenue the profit is aimed to
be of 550,000 Euros for the first annum (Zheng, 2021).
CONCLUSION
It can be concluded from the above study that development of a business plan is very
important before the establishment of the business. The planning helps in proper execution
and avoiding the chances of challenges in the operation of the business. The study revolves
around the business plan of Café Rose which will be situated in London and the business idea
development which affect the operation or establishment of the café.

REFERENCES
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Huang, Y., 2021, February. Research on the Application of Computer Technology in
Innovation and Entrepreneurship Education. In Journal of Physics: Conference Series
(Vol. 1744, No. 4, p. 042095). IOP Publishing.
Li, D., 2021, February. Research on Innovation and Entrepreneurship of Business Education
in Colleges and Universities Based on Computer Big Data Mining Technology. In
Journal of Physics: Conference Series (Vol. 1744, No. 3, p. 032053). IOP Publishing.
Ma, X.L., 2021. Research on the integration of entrepreneurship education and professional
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Sendra, D. and Ferreira, A.M., 2021. CraftDesign for entrepreneurship, social innovation and
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Xin, G., 2021, April. Research on Curriculum System of Electrical Engineering Based on
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Yıldız, K., Yumuk, E.D. and García-Fernández, J., 2021. Why should we need innovation in
sports management?. In Innovation and Entrepreneurship in Sport Management.
Edward Elgar Publishing.
Zheng, Z., 2021. Research on the Operation and Guarantee Construction of Innovation and
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Contemporary Educational Research. 5(2).