Comprehensive Café Business Plan for Sydney, Communication Master

This comprehensive business plan outlines the establishment of a café in Sydney, Australia, detailing all aspects from initial concept to financial projections. The plan begins with an executive summary, business philosophy, and product description, focusing on a variety of coffee beverages and bakery items. It includes thorough market research, analyzing geographical and demographic data, and conducting primary research to understand consumer preferences. The plan addresses competition, market segmentation targeting office workers, students and housewives, and analyzes potential locations. The organizational plan covers ownership choices (partnership), personal needs, and hiring strategies. The marketing plan proposes product offerings, pricing policies, promotional strategies, and location considerations. Finally, a financial plan is included to project the financial viability of the café. The plan emphasizes quality service, competitive pricing, and a customer-friendly environment to ensure business success.

Running head: MASTER OF COMMUNICATION
Master of Communication
Name of the Student:
Name of the University:
Author’s Note

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Table of Contents
Part One: Introduction.....................................................................................................................3
A: Executive Summary................................................................................................................3
B: Business Philosophy/ Mission Statement...............................................................................3
C: Product or Service Description...............................................................................................4
D: Self Analysis...........................................................................................................................5
Part Two: Marketing Research........................................................................................................6
E: Secondary Research................................................................................................................6
F: Primary Research....................................................................................................................7
G: Competition............................................................................................................................7
H: Market Segment Analysis.......................................................................................................8
I: Analysis of Potential Location.................................................................................................8
Part Three: Organizational and Personal Plan.................................................................................9
J: Ownership Choices..................................................................................................................9
K: Personal Needs........................................................................................................................9
L: Hiring Strategies....................................................................................................................10
Part Four: Marketing Plan.............................................................................................................10
M: Proposed Product or Service................................................................................................10
N: Proposed Pricing Policies.....................................................................................................10
O: Proposed Promotional Plan...................................................................................................11

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P: Place......................................................................................................................................11
Part 5: Financial Plan.....................................................................................................................11
Reference.......................................................................................................................................14

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Part One: Introduction
A: Executive Summary
The business plan which is developed shows that owners wants to open a café business in
the Sydney region of Australia. The business would be offering a variety of beverages and
bakery products to the customers so that the demand for the business is further enhanced. The
business would also focus on quality service and aim to create an amicable environment so that
the customers are satisfied with the business. The owners aim to open a partnership form of
business so that the risks are diversified and business is properly managed. This would also help
the owners in managing the finances of the business. The business would also invest
significantly in marketing and advertisement so that the café can build a brand name for itself in
the market. The business plan would also include a financial plan for the new business which is
being established.
B: Business Philosophy/ Mission Statement
The business of Café Supreme would be planning to an open a café business in the
Sydney region of Australia so that maximum customers can be served. The mission of the
business is to offer the best quality of coffee along with some bakery products at a reasonable
price. The main focus of the business is to serve as many customers as possible and ensure that
the customers are satisfied with the products which are offered to them. The business would also
be offering a suitable environment to customers so that they can enjoy their beverage and snacks
in peace (Brinckmann et al. 2018). The management of the company plans to offer supreme
quality in terms of products which is offered by the business.

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C: Product or Service Description
Café Supreme would be offering different variety of coffee beverages so that the business
can cover the needs of different customers. Some of the common café products which would be
offered by the restaurant are expresso, café latte, cappuccino, Café Americano, while flat, long
black. The products which would be offered by the café are quite popular in Sydney especially
Latte. In addition to beverages, the café would also offer its own bakery products which would
also attract customers to the business. Café Supreme would be successful in the market as it
would meet the needs of daily coffee addicts and office employees and provide them a place
where they can meet up in peace for any informal meeting or for just a hang out.
The business would try to keep the prices of the product low in comparison to the market
so that the customers finds it reasonable place to enjoy their café. The business would be
following the market trends in setting the prices of different beverages which is offered by the
business.

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Figure 1: (Average price of Coffee products in Australia)
Source: (Statista. 2019)
The business would be keeping the prices of per cup of coffee depending on the type of
coffee to an average rate of $ 4 per cup and the management expects that it would be able to sell
200 cups per day. This would be increasing as the name of the business spreads and the
management also anticipates that sales would enhance due to the quality of the products which
the business will be offering.
D: Self Analysis
The new café business would require experience and a good tactical mind in terms of
managing the business which is possessed by me. I have appropriately analyzed the market of

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Australia and therefore have knowledge regarding any new operations of a business. In addition
to this, I understand as a customer what people wants from a café business and what are there
expectation. In addition to this, the business would also require quality staff for meeting the
operational needs of the business and ensure that revenue is generated.
Part Two: Marketing Research
E: Secondary Research
Geographical Data
As per the survey results of 2017, Australia is considered to be one of the leading
producer of coffee and the people in Australia are great coffee addicts. The area of Sydney is one
of the most popular city which is situated in Australia and accounts for almost 20% of the
population of the entire continent. It is therefore for this reason that the location is the most
appropriate for opening a café business (Brink 2018). The region is also one of the major tourist
attractions and therefore the management of Café Supreme can attract such customers as well for
generating more revenue from operations of the business.
Demographic Data
The data which is available regarding the demography of Australia in terms of coffee
market shows that Australian coffee market can be considered to be one of the biggest in the
world, reaching a revenue greater than 1.4 billion U.S. dollars in 2017. Another important
statically results show that an average Australian consumes 1.92 kilograms of coffee on a daily
basis. The age group of the customers are mainly from the working class and even the students.
In terms of revenue generation also, the coffee business contributes significantly as $ 1.5 billion
was generated from the coffee industry (Statista. 2019). Therefore, there is an appeal to the

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business and the owner want to open a café business in Sydney location in order to generate
more revenue and also conduct the operations smoothly.
F: Primary Research
In order to appropriate take the decision regarding the new business, survey needs to be
conducted in order to estimate that the market conditions are appropriate for a business or not.
The owner has decided to conduct a survey in order to get a better idea of the taste and
preference of the consumers. The management of the company would also need to apply
targeting strategies so that the business is able to target segments or group of consumers from
which the business would be generating maximum revenues (Bui 2015). In addition to this, the
business would also be analyzing the trends of other café businesses which are operating in the
region so that the management can improve their own operations and offer better services to the
customers.
G: Competition
One of the major factors which determines the survival of a new business in the market is
the level of competition which is faced by the business. The Australian market has significant
demand for coffee products which makes the level of competition in the market high. The
management of Café Supreme needs to consider such an aspect before formulating strategies for
combating the same and generating appropriate revenue from operations (Burns 2016). The main
competitors of the new business would be cage or restaurants selling similar products in the
market. Café Supreme would be offering best quality of products at a reasonable price which
would give the business an edge over the competitors. Plus, the management also intends to
develop an environment where people can enjoy their snack and beverages in peace. The

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management of the company expects that in terms of quality, the business would be able do
better than most of café business which are operating in the market.
The business also would be offering discounts on multiple beverages choices of
customers in order to bring about a uniqueness in the operational structure of the business (Burns
& Dewhurst 2016). This would help the business to attract more customers and also combat the
competitive pressure in the long run. In its start-up, Café Supreme wants to focus on quality and
price and develop a niche so that the business can survive initially from market pressure.
H: Market Segment Analysis
The market segment analysis is considered to be important as this provides the businesses
an idea regarding which customers or group of customers needs to be targeted. The management
of Café Supreme has decided that it would targeting office workers, domestic housewives and
students as research shows that such groups are the main consumers for coffee products in
Australia. The business would be keeping different types of coffee in the menu list mainly to
serve different group of customers (Scarborough 2016). The office workers are natural addicts to
coffee as this helps them to get their concentration right and removes any signs of sleep.
Normally the choice of office workers would be black coffee and expresso. Students on the other
hand normally like to have latte and cappuccino as a coffee option. Therefore, it was for these
reasons that the management of Café Supreme has decided to target such customers in order to
enhance the revenue which is generated by the business.
I: Analysis of Potential Location
In a business, the location plays a vital factor in attracting the customers and also
ensuring that proper environment is created for the customers. As per the owner, the location of

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the café would be in Sydney as the business wants to tap into the high population and tourist
which are attracted to the place.
The business would be situated in a free building so that a peaceful environment can be
created and the location would be taken on rent initially for the short run period. The owner
would prefer if the location is close of some offices so that the employee can be attracted. The
business aims to attract office workers and students and therefore appropriate location is very
important for enhancing chances of making revenues from operation. The owner also plans to
keep a portion of the front vacant so that scooters, bikes and cycles can be parked in the area.
Part Three: Organizational and Personal Plan
J: Ownership Choices
The business of Café Supreme would be a partnership form of a business as there are two
owners who would be contributing equal percentage of capital for investing in the operation of
the business. The liabilities and risks of the business would also be shared equally by the
partners. This option has been selected by the business in order to avoid the complex process of
setting up a company and there are also lower risks in comparison to a sole proprietorship form
of business. The owners want to register the company as a partnership and it would also provide
better management of the operations of the café.
K: Personal Needs
The business would be managed by the manger who will be appointed by the owners of
the business for day to day management of the operation. The major decisions regarding the
operational process would be taken by the owners. The business would also be requiring
cleaning staffs and waiters who would looking after the needs of the customers. There would

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also be some executive members who would be responsible for the cash management under the
supervision of the manager of the business (Uhl & Gollenia 2016). The manager of the business
would be executing important decisions which are taken by the owners of the business.
L: Hiring Strategies
The owners of business plans to hire experienced individuals who have some experience
in working in a café or a restaurant. The employee would be hired on the basis of their flexibility
and personality to handle customers. The customers need to have a friendly environment so that
the name of the business can be promoted. The salary of thee employee would be based on the
average pay in different cafes which are operating in the same region.
Part Four: Marketing Plan
M: Proposed Product or Service
The management of Café Supreme plans to introduce various types of coffee products
such as expresso, café latte, cappuccino, Café Americano which are popular in Australia. The
variety would help the business to meet the needs of different types of customers. In addition to
this, the business would also offer bakery products such as cookies, cream bread, sandwiches. In
addition to this, the business would also focus on providing appropriate service and every staff
member would ensure that the customers are happy with the environment and ambience of the
café.
N: Proposed Pricing Policies
The business would like to keep the prices of the product low in order develop a niche
environment whereby the business can meet competitive pressure without damaging its own
revenue. As per the expectation of the management, the markup on the costs would be kept in the

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range of 5% -10% so that the final price is still affordable by customers. This would increase
when the demand for the business increases and the café has established its name in the business.
The business would offer discount to customers for ensuring that the customers are attracted to
the business (Vurro & Perrini 2018). The business would be aiming to make a name for itself in
the market and would not be going for profits initially.
O: Proposed Promotional Plan
The owners plan to properly advertise the products and the café in all there medium so
that awareness can be spread regarding the restaurant. The business would be promoting the
business in social media as well since the aim of the management is reach out to as many
customers as possible.
P: Place
As per the owner, the location of the café would be in Sydney as the business wants to
tap into the high population and tourist which are attracted to the place. The owner needs the
place to be quite so that the customers can enjoy their coffee in peace. The business plans to
introduce home delivery or office delivery up to a certain distance after a period of one years if
the business is successful.
Part 5: Financial Plan
Financial Analysis
The financial analysis of the business start-up was done with the help of financial
projections that were done for the company for a sum of three-years of time frame. In this three
year of time frame there were various expenses and revenues that would be earned by the
company and the same has been taken into consideration.