Economic and Legal Aspects of Establishing a Coffee Shop in Whales, UK

Desklib provides past papers and solved assignments for students. This essay analyzes the legal and economic aspects of starting a coffee shop in the UK.

ASSESSMENT - SHORT ESSAY
Name of the Student-
Student’s Id-
0

Table of Contents
Abstract............................................................................................................................................2
Brief.................................................................................................................................................3
Relevant laws...................................................................................................................................3
Three key economic concept...........................................................................................................4
References........................................................................................................................................7
1

Abstract
A coffee shop is to be started, and all the factors that will affect the startup of that coffee shop
will have to be considered. While opening a coffee shop, the owner needs to know about all the
related matters that will affect the profit of that business. A perfect location will have to, and the
shop opener should be aware of all the competitions that he or she will have to face while
opening the shop. The perfect market analysis will have to be done to know the things that need
to be included in the new project. For starting the business, it is essential to be aware of all the
relevant laws that will affect the day-to-day working of the company.
2

Brief
XYZ coffee shop will be set up in “Whales” UK, near to the office area. The shop will provide
all types of coffee at a cheaper rate than the coffee shops near that place. The shop will also try
to bring some new schemes for the customers. Opening a shop will need a thorough reading of
the legislation prevalent in that area. The new organic rule in the coffee industry will affect the
coffee shop; the fair trade is also one of the regulations that will have to be followed. There are
many coffee shops available it is an important thing to consider that the coffee, which this shop
will provide, will be cheaper than the others will.
Relevant laws
In whales, there are no as such separate laws set up by the state, local or federal government. All
the laws related to the start up of new business usually falls under the Intellectual Property
Acts and all the other acts set up by the federal government. The state government usually deals
with the Tax related issues. There have been significant rules being set by the government in
relation to the coffee industry in the country. The new organic rule is affecting the coffee
industry (Jang, Kim and Lee, 2015). The new organic rule is going to change the coffee
industry, as this will be increasing the customer's cost. Organic coffee refers to coffee farming
where the coffees are grown without prohibited synthetic substances. The experts in the coffee
industry say that organic coffee rule adversely affects the coffee industry. They further assume
that the concept of organic coffee is West Coast so it influences will be greater on the east coast
(Willer, Lernoud and Kemper, 2018). The implication of this rule will increase the financial load
from 4 per cent to 17 per cent (Brack, 2017). As this coffee shop will be a startup, so it will have
to face more challenges than the other does with already established coffee shops. Use of the
organic coffee will also increase the customer’s faith upon the quality of the product. The
National Organic Program (NOP) sets up the regulations, which is known as the rules.
The Fair Trade Coffee rule is that rule which has been laid down by the federal government
for making the certified coffees, which are produced within the fair trade standard (Boys and
Hooker, 2015). The Fair trade rule is revolving around the two base rules they are- transparency
and the respect for greater equality in the International trade. The fair trade partnership is
3

contributing to sustainable development as they are offering a better condition for trading to the
farmers of coffee beans. It is because of the fair trade organisation that producers are being
suppor6ted positively; this organisation also provides a sustainable environment for coffee beans
farming. Fair-trade International (FLO) is running the certification scheme in the Fair Trade
Organization (Chiang, 2018). There is an appropriate fee paid by the coffee shop owners for the
use of the fair trade logo. The fair trade logo gives the customers confidence that the product has
met with the fair trade requirements. The customers now are more likely to use trusted products.
Coffee is something, which almost everyone needs in their life and if they get the coffee that is
recognised by the fair trade than what can be better than that. The fair trade logo does not restrict
the sellers from charging the particular amount fixed by them.
The IRS identification number has to be taken from the federal government. The IRS
identification number will help in payment of state as well as local taxes. The coffee shop owner
before starting up their business needs to register with the federal government in order to get
the federal identification number, as it will be used in Tax related matters (Tucker, 2017). The
IRS identification number is the first step of getting the license. Any person who wants to start a
small business needs to get a license from the state government, and if they are not provided with
the license, then they cannot start their business. Another step in understanding the permit for the
beginning of the coffee shop license is the sellers permit. For starting of any restraint or the
coffee shop, the seller needs to get the seller permit. Then there is worker compensation
insurance under this the employers are required to get the coverage done for their employee
even if they have only one employee. For the opening of the coffee shop the shop owner will
have to get the food safety certification. The product that the shop will deliver to their customer
will have to pass the test by the Food Safety Certification exam. When the shop passes this test,
then they are given with the certificate, which is applicable for the coming five years.
Three key economic concept
Resources - For starting of the coffee shop, it is essential to know all the resources that will be
needed for the new coffee shop. When there is a startup in any field, it is essential to know, all
the funds that the person has and what can he or she do with that much fund. Suppose the fund
for starting the new coffee shop is, decidedly less than the first thing that they will have to
4

consider is the amount of money they are paying as rent for the area where they have started the
business. The need for good space at low rent is significant when starting with the new business
plan. Having availability of the essential resources even at the low funds available is a technique
for starting a good business. Another valuable resource that the shop owner will need for starting
the new business is finding a perfect location. One of the most important resources in any
business is their human resource. If the staffs of the shop are hard working, and dedicated to their
work, then they will add to the profit of the business. It is very important to appoint staffs who
have good talent in making coffees. The shop owner should also add on their plans the schemes
that they will give to their staff in order to make an open environment for them.
Deciding of the menu- The coffee stand menu in any coffee shop determines the types of
equipment required for the opening of the coffee shop (Franko, 2018). The menu that the shop
will serve will attract the customers. It is essential for attracting customers that the menu should
be attractive. While deciding the menu, it is essential that the things that the shop owner needs in
their coffee shop need to be written down. The writing down of the menu does not only mean the
items that are required in setting up the menu it is also essential to write down all the ingredients
that are needed for the preparing of the coffee. While preparing the menu the basic things like
coffee, soda, tea, bagels, and the muffins needs to be included. The coffee stand menu needs to
be creative. While preparing the menu, proper research needs to be done regarding what are the
items being served in the nearby coffee shop and what can they add to be a little different from
them. A signature snack will have to be prepared that will mark the new shop’s name.
Planning- If any business needs to make money then there needs to be proper planning. Making
a plan will save time and if there is a proper, plan related to the business and plan helps in
stopping the mistakes which unplanned business might commit. The plans related to the coffee
shop includes the various issues like the place, fund, menu, resources, etc., there are so many
things that the shop owner needs to mark for making a plan that will provide an economic
benefit. Having a plan makes the business look good, and the plan will help in attracting more
customers. The first thing to start with the business plan is the marketing. The coffee hop- should
be included in the local search pages. The social media accounts should be included in the
advertisement process. When the customers find attractive pictures of any coffee shop in the
websites then they are attracted to visit that place.
5

While starting the business, the three critical economic keys will have to be considered, as that
will help in giving more profits. XYZ coffee shop will be made by keeping in mind the various
resources needed, funds and by setting up the proper business. If the business is being
established with a view to creating more profit, then the above given three important economic
concepts will have to be understood and followed accordingly.
6

References
Boys, K.A. and Hooker, N.H., 2015. Export Opportunities And Import Competition: Improving
The Understanding Of International Markets For US Organic Farm And Processed Products.
In Proceedings of the 2015 Organic Agriculture Research Symposium.
http://glenn.osu.edu/research/organic-food-policy/organicFoodPolicy-attributes/08-Boys
%20Hooker-OARS_Proceedings-%20final.pdf
Brack, D., 2017. International trade and the Montreal Protocol. Routledge.
https://www.taylorfrancis.com/books/9781315145303
Chiang, W.Y., 2018. Applying data mining for online CRM marketing strategy: An empirical
case of the coffee shop industry in Taiwan. British Food Journal, 120(3), pp.665-675.
https://www.emeraldinsight.com/doi/abs/10.1108/BFJ-02-2017-0075
Franko, P., 2018. The puzzle of Latin American economic development. Rowman & Littlefield.
https://books.google.co.in/books?
hl=en&lr=&id=YE1nDwAAQBAJ&oi=fnd&pg=PP1&dq=economic+concept+for+coffee+shop
+in+US&ots=j_h1LBT8gP&sig=4o_L4RUPkoFKTnngMcAfDg8OiJo
Jang, Y.J., Kim, W.G. and Lee, H.Y., 2015. Coffee shop consumers’ emotional attachment and
loyalty to green stores: The moderating role of green consciousness. International Journal of
Hospitality Management, 44, pp.146-156.
https://www.sciencedirect.com/science/article/pii/S0278431914001509
Tucker, C.M., 2017. Coffee culture: local experiences, global connections. Routledge.
https://www.taylorfrancis.com/books/9781317392255
Willer, H., Lernoud, J. and Kemper, L., 2018. The world of organic agriculture 2018: Summary.
In The World of Organic Agriculture. Statistics and Emerging Trends 2018 (pp. 22-31).
Research Institute of Organic Agriculture FiBL and IFOAM-Organics International.
http://orgprints.org/34674/1/willer-etal-2018-world-of-organic-summary.pdf
7