Cafe Delicious Business Plan: A Coffee Shop with a Library

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BUSINESS ESSENTIAL
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Executive Summary
At the business essential study, a separate idea regarding opening a business has been
evaluated. The name of the proposed business is Cafe Delicious and the organisation is
going to bringing on separate value proposition by opening a separate library that will be
linked with the coffee chop. The main value of the business idea is to provide free
library service towards the consumers of coffee so that they can enjoy their spare time.
In addition to that, the company will be located beside Roehampton road so that the
business idea can attract students as their primary target consumer.
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Table of Contents
Task 1.............................................................................................................................. 3
Part A............................................................................................................................3
Part B............................................................................................................................3
Task 2.............................................................................................................................. 5
Task 3.............................................................................................................................. 7
Part A............................................................................................................................7
Part B............................................................................................................................9
Task 4............................................................................................................................ 10
Reference list................................................................................................................. 12
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Task 1
Part A
The business idea is related to opening a coffee shop along with small library near
the University of the Roehampton and the name of the business is Cafe Delicious,
under hospitality industry. The specific geographic location of this coffee shop will
be at SW15 4PU, Roehampton Lane, London. In this business, customers will get the
opportunity to have coffee, snacks and read their favourite books for passing their time.
This idea will be successful as university students and professors will be the regular
customers. Moreover, it is going to plan to build a good library and customers can enjoy
this library service with their snacks and coffee. No such extra charge will be taken from
the customers and in the cafeteria, available WIFI connection will be provided for
providing best experience to the customers.
At present, it is found people prefer to read class novels, stories, magazines in time of
having coffee and in this time, no such cafeteria is found out in Roehampton Lane, who
provides this kind of facilities. Moreover, kids do not want to read storybooks and their
parents try to attract them in a various way (Joglekar et al., 2017). After noticing this
kind of incidents, the plan of cafe Delicious will be able to meet the needs of the
customers. The customers of various age groups, who love to read with coffee or
snacks, can visit this place and will be able to gather a good experience.
Cafe Delicious will provide offline and online both service to the customers, however,
in context of online service, they will enjoy the food service except the library service. In
order to place the online order, they can email to the specific mail id along with address.
Coffeehouse and the British Library will be the main competitors as they are famous
in London according to their services.
Part B
In order to operate business in a successful manner, it is necessary to set the business
goal and objectives, Cafe Delicious has also set their objectives, which are followed by-
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 To provide best quality coffee and snacks to the customers along withn unique
taste
 To create an attractive collection of books, magazines and novels
 To provide quick service to the customers for increasing profitability as quick as
possible
 To generate around 40% of profit within 6 months after establishing the business
All objectives are related and relevant to the business as it is found that good quality
products help to attract the customers towards the outlet. The taste of coffee should be
unique and this objective will help to increase the number of customers. On the other
hand, as booklovers will be the target customers, good collection of books needs to be
arranged and it will help the cafe to earn reputation and popularity quickly. The last
objective related to development of profitability will help the cafe to maintain their
services properly and by using the profit, continuous development in their products will
be introduced in future.
The company will follow the limited liability structure, which is the part of partnership
legal structure. In this structure, partners will have to contribute specific amount of
money in order to run the business successfully (Eisenberg, 2017). Apart from the
partners, others can also contribute money in this business and they will be considered
as the shareholders. For example, Coffeehouse and Bould Brothers Coffee are the
example of ventures, which follow this liability structure and it is observed that it assists
to reduce their risks in the market. Therefore, Cafe Delicious will follow this legal
structure in order to earn benefit from the market.
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Task 2
Elements Factors Analysis
Political  Political stability was
reduced slightly,
which was around
0.26%
(theglobaleconomy.c
om, 2017)
 The declination of
FDI (Foreign Direct
Investment) in last 6
years is not
monitored (ft.com,
2019)
It is known to all that
political stability helps the
company to operate their
business successfully in the
new market (Roberts,
2018). Though, political
stability is slightly reduced,
Cafe Delicious will not face
any kind of political issue
during business operation
and they can use FDI
strategy in order to
generate their business
capital. Thus, in future, they
can open branches in
different locations and they
will be able to run two
businesses such as cafe
and library separately.
Economical  In 2019, 1.8%
growth of GDP is
noticed
(tradingeconomics.c
om, 2019)
 3.9% people are
unemployed as per
the assessment of
2019
The GDP growth rate
indicates the economic
stability of the country and
economic status of UK is
quite good (Cepni and
Guney, 2019). Therefore,
Cafe Delicious will not face
cash flow related issue in
their business. On the
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(tradingeconomics.c
om, 2019)
contrary as 3.9% people
are unemployed, this will be
the opportunity to reduce
unemployment rate of the
country.
Social  Around 95 million
cups of coffee are
sold in a day in UK
(independent.co.uk,
2019)
 Education rate is
high
As coffee consumption rate
of people in a day is high, it
will be the profitable idea
for Cafe Delicious to open
their outlet. Moreover, as
people are educated and
the cafe will be situated
near the Roehampton
University, library service
with coffee will attract the
customers easily. Thus, it
can be expected that Cafe
Delicious will be able to
establish their business
successfully in the
competitive market.
Technological  Around 90% of
people in UK use
internet (ons.gov.uk,
2019)
 Research and
development sector
(R&D) helps to
introduce innovation
in the business
It is noticed that people
prefer to get unique idea in
their business and
technological advancement
helps to achieve it
accurately. As around 90%
of people use internet, Cafe
Delicious will provide
online cafe service in order
to increase their sale.
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Unique coffee machines will
be used in order to provide
unique taste to the
customers. However, as it
is their start-up, online
library service will not be
provided.
Legal  Equality Act 2010
 Employment Act
1996 (cipd.co.uk,
2019)
 SQF (The Safe
Quality Food) and
FSMA (Food Safety
Modernisation Act) is
followed
(manufacturing.net,
2018).
Cafe Delicious will follow
legislations in order to
motivate their employees
and it will ensure that best
performance of employees
will help to provide
satisfaction to the
customers. Moreover, in
order to maintain the quality
of foods, SQF and FSMA
Act will be followed.
Environmental  Rate of the usage of
plastic is reduced in
order to save the
environment
Cafe Delicious will also
use paper bags in case of
packaging and thus they
will contribute to save the
environment.
Table 1: PESTEL analysis
(Source: Created by the learner)
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Task 3
Part A
The leadership as well as the management functionality of the coffee-cum-library Cafe
Delicious are willing to make a separate launching event for opening and offering their
products as well as services towards their target consumer base at certain extension.
The launching event will be designed in such a way that adhere some basic
components of attracting different types of people from different functional, educational
as well as cultural background. Therefore, in order to be successful at their launching
event, the leadership as well as the management department belonging from the
organisation is opted to conduct some form of social gathering (Ward, 2016). They are
doing it so that their potential consumer base will get to know with different perspective
of their prescribed business at certain extension. The launching event in going to take
place at their newly opened store and the key aim of the launching event is surrounded
of attracting potential consumers who have a greater taste in coffee.
Since the key goal of the organisation is to earn revenue from the first month of their
business start up, they need to attract people from the starting of their business
operation. Attractive as well as effective launching event is quite useful from the
perspective of attracting basic consumer base (Burns and Dewhurst, 2016). The
location will be at the place where they are going to open their newly restructured
coffee-cum-library. The launch event will take place at 11 A.M and it will run for 3-4
hours. Moreover, since it is quite inevitable that it is not possible for many personals to
visit a launching event at weekdays; the management department of the organisation
are willing to cater the launch event at the weekend. Moreover, since the coffee-cum-
library is willing to target students as their primary consumers, it is natural that they will
not be able to present at the launch event if that happens at weekdays.
This launch event will surely enhance the overall profile of the business by certain
extension since the visitors will get a brief idea regarding the architecture as well as
atmosphere of the coffee shop at their launch event. Therefore, the students will be able
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to know the fact that they can have free library service if they order coffee offline.
Moreover, the management department of the organisation will invite their shareholders
and other stakeholders for attending the launching event. Students will be invited by
visiting their university campus (McKeever, 2016). In addition to that, media personals
will also be invited at the launching event so that they can write journals about the
restaurant. It will also act as a marketing activity.
Part B
Required budget for completing the launch event has been illustrated below:
Elements needed Pricing Source
Decoration related
resources
€250 householdquotes.co.uk, 2019
Advertisement cost of the
launch event
€350 thedrum.com, 2019
Arrangement of tables and
chairs for sitting purpose
of 200 people
€6.80* 200 = €1360 ikea.com, 2019
Cost of employees for 4
hour. Six employees are
needed
(€10*6)*4 = €240 crunch.co.uk, 2019
Budget regarding the free
meal of guests
€6*200 = €1800 budgetyourtrip.com,2019
Cost of car parking slots €200 homesandproperty.co.uk,2019
Total Budget= €4200
Table 2: Budget of the launch event
(Source: Created by the learner)
Therefore, the estimated cost for completing the launching event has been estimated as
€4200.
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Task 4
Marketing objectives
 To provide satisfactory value towards the consumers upon their purchase of
coffee
 To provide competitive values for the coffee related items
 To maintain the integrity and ambiance of the coffee shop
 To maintain the quality of their coffee and beverages
Target Market
At the primary level, the coffee-cum-library is willing to target students as their basic
consumer base as students are generally willing to read a novel or some other books
while taking coffee at their spare time (McKenzie and Sansone, 2019). This is the key
reason why students have been chosen as the primary target market.
Marketing strategy
As of marketing strategy, the coffee-cum-library is willing to provide a discount for those
people who will intake coffee from that coffee shop at regular level. Moreover, additional
discounts will also be provided upon early seat booking. The management of the
company is willing to conduct online marketing as their target market is quite active at
different social networking sites. Moreover, consumer executive forum will also be
created where consumers can send their query. It will be functioned as a consumer
feedback system (McKenzie, 2015). Additionally, the company is also willing to take on
contemporary means of marketing such as television, magazine advertisement and
others as of their marketing strategy.
Marketing Mix
Marketing mix is comprised of seven different elements. Description of each element
from the perspective of Cafe Delicious has been illustrated below:
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Product- The Company will provide coffee and other beverages towards their
consumer base as of their product. Moreover, since they are willing to provide free
library service towards their consumers, it also falls under the product category.
Place- The coffee-cum-restaurant will open beside the Roehampton University as they
are willing to get connected with their primary consumer base. The exact place of the
company will be at SW15 4PU, Roehampton Lane.
Price- Since the company has targeted students as their primary consumer base, it is
inevitable that the cost should be lower than usual coffee shop. Moreover, the recent
competition at coffee related business is quite high. Therefore, the company is willing to
take on competitive pricing strategy.
Promotion- Both online as well as offline promotional activities will be taken into
consideration in respect to the coffee-cum-library. The management department of the
organisation will utilise social media marketing as well as television and print media
advertisement as of their promotional activities.
People- People who has quite good knowledge in coffee related industry will be chosen
as the key employees. Moreover, people with good communication skill will also be
preferred as the employee of the company.
Process- The consumers will get their desired coffee as well as beverage upon waiting
at the line. However, they need not to wait if they book tables previously.
Physical evidence- The Company will provide free library service towards their
consumer base as of their physical evidence. Moreover, their coffee related services
also fall under their physical evidence.
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