Detailed Business Plan: Read & Drink Cafe near Bondi Beach

The business plan outlines the establishment of a Read & Drink (R&D) cafe near Bondi Beach, aiming to provide a relaxing environment for customers to enjoy coffee, pastries, and books. The plan details the cafe's objectives, including becoming the best local cafe and achieving profitability. It includes a business summary, ownership structure, startup expenses, funding sources, and a marketing strategy incorporating the 4Ps. A SWOT analysis identifies the cafe's strengths, weaknesses, opportunities, and threats. The financial plan is based on assumptions such as constant growth and improvement in cash flow. The plan concludes by highlighting the cafe's potential for success, considering all the factors. The assignment includes references to support the information.

BUSINESS PLAN
OF THE
READ & DRINK
CAFÉ

Read & Drink (R&D) café is considered as the place which fulfil
the daily requirements of the coffee addicts, as it is the place
which helps the customers in escaping their daily stress of the life
and also a comfortable place at where they can meet with the
friends and read a book at the same time.
There is an increase demand of the place which is peaceful and
where people can relax for some time for the purpose of releasing
the stress of their daily life.
It must be noted that, increasing demand of such culture inspire
the entrepreneur to set up the café with such unique things. R & D
will be established near the Bondi Beach, as it helps the business
in creating the wide range of customer groups on repetitive basis.
This café offers the best coffee in the area which is accompanied
with the pastries and also the free books of famous authors.
INTRODUCTION

R & D objectives related to the first year of operations are stated below:
R&D wants to become the best café in the relevant area in comparison of the
local cafes.
Turn on the profits in the 1st month of the operations conducted by the
business organization.
Café aims to maintain the gross margin of 60%.
Following are the key success attributes related to the café:
Design of the café is of such nature as it attracts the customers, and helps the
management in executing fast and efficient operations.
Training is given to the employees of the café for the purpose of ensuring the
best coffee preparation techniques.
Strategies related to the marketing is prepared in such manner as it helps
the café in creating strong base of the loyal customers, and also increase the
sales of those products which have high margin.
OBJECTIVES & KEYS TO
SUCCESS

This café mainly aims to create the unique place which
allowed the customers to get socialize with each other, as it
provides relaxing environment to the customers in which
they can enjoyed the best coffee and pastries in the town.
This café help the customers to relieve their stress on daily
basis, as it provides the peace of mind, convenient location,
good customer service, and high quality products.
MISSION

Business Summary: R & D is the sole trader business which mainly
offers coffee, different beverages and snacks to its customers in its
4500 Square feet café. As this café is established near the Bondi
Beach, because this the place where business can attract loyal
customers. Major investor of this business is Mr. Jack Rodrick, as
Jack is responsible for each and every thing of the business.
Amount for starting the business is estimated almost $40000. Mr,
Jack operated this business as the sole trader and legally
responsible for every activity of the business.
Ownership of the business: This business is operated as sole trader
by Mr. Jack Rodrick, and on the basis of sole trader business
structure, it is clear that Mr. Jack is responsible to control and own
the management of the business.
ABOUT BUISNESS

Following is the summary of the business expenses:
• Expenses of the legal natures mainly includes the amount related to
the licenses and permits, and it also includes the totalling of the
accounting services- $1500
• Expenses related to the marketing promotion expenses for the
purpose of grand inauguration of the café- $4000.
• Fees related to the consultancy, which is given to the XYZ
consultancy for the purpose of getting the help in establishing the
café- $5000
• Amount related to the insurance coverage in the form of total
premium- $2000
• Expenses related to the pre-paid rent amount are $ 7000.
• Some other miscellaneous expenses in this context include the
$1500.
EXPENSES RELATED TO THE
BUSINESS

Following are the start-up assets related to
business:
• Amount of the capital of the business includes
the $70000, and it also includes the cash
reserves for the starting first two months of
the operations.
• Start-up inventory of this café includes the
$15000.
• Equipment’s related to the business costs
almost $61000
BUSINESS ASSETS

Funding related to this business is arranged from
two different sources that are savings and
investments of the owner and loans taken from the
bank. Mr. Jack contributed almost 60% of the total
funds used in terms of initiating the business.
Other source of the business is the bank loan
which is almost 30% of the total funds used in
terms of initiating the business (Doug & Polly
White).
BUSINESS FUNDING

Café industry in the Australia shows the high growth in last
5 years, and reason behind this growth is the increasing
culture of the coffee. Growth related to the revenue in this
industry is expected to be annualized at 5.1% from last five
years.
This market is boosted because of number of reasons such
as positive attitude of the customers, increase in the
customer’s income, etc. All these things encouraged the
customers to visit the café. Revenue related to this industry
is amplified by almost 2.7% in year of 2017-18 which means
almost $8.3 million (IBIS, 2018).
MARKETING

There are number of competitors of R & D
café, and some of these are stated below:
• Local cafes
• McDonalds
• Star bucks
• Gloria cafe
COMPETITORS

Target Market: The main target customers of this business
are stated below:
• Students and faculties who required peace for studying
and working.
• Office employees.
• Teenagers who wants to get socialize.
MARKET ANALYSIS

Following are the strengths, Weakness, opportunities, and
threats related to the R&D café:
SWOT ANALYSIS
Strengths Weakness
Café offers different
variety of the coffee and
other beverages which
is accompanied with
delicious pastries.
Environment of this café
is relaxing and peaceful.
Café offers good
services to its
customers at reasonable
This business includes
high risk, as there are
number of competitors
in the business.
There are number
barriers in the
operations of this
business.