Coffee Shop Business Project: Customer Preferences and Market Analysis

This research project investigates customer preferences in coffee shops, focusing on understanding the demands of teenagers and millennials to inform the establishment of a successful coffee shop. It includes both primary research, involving surveys of 100 students regarding their coffee, drink, and food choices, and secondary research analyzing the UK coffee shop market. The project identifies popular items like Mocha, Espresso, hot chocolate, Sprite, and smoothies, as well as preferences for cheese baguettes and ham ciabattas. It highlights the importance of home delivery and the inclusion of technological advancements like Wi-Fi and online ordering systems. The research also examines the strengths and limitations of the project, emphasizing the need for more extensive data collection and resources. Ultimately, the project aims to provide actionable strategies for a new coffee shop to meet customer demands and establish a strong market presence.

BUSINESS RESEARCH PROJECT
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Table of Contents
Task 1.1............................................................................................................................................3
Task 1.2............................................................................................................................................7
Task 2.1..........................................................................................................................................10
Task 3.1..........................................................................................................................................11
Conclusion.....................................................................................................................................12
Reference List................................................................................................................................13
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Task 1.1
Introduction
The research project is aimed to be carried out among the student subjects regarding the choice
of the food items that they prefer to avail whenever they visit a coffee shop, in order to
understand the demands and the requirements of the customers especially the teenagers and the
millennial population. This analysis would aid in the in the formation and inauguration of a
coffee shop that would cater to all the requirements and demands of the customers and thus,
would be able to firmly establish itself in the market.
The aim of this research project is to carry out a research among the students regarding their
choices of products that they prefer to avail, as per the demography and the income level of the
customers, when they visit a coffee shop. This survey would help in carrying out the market
research and understand the demands and requirements of the customers. The secondary research
that is aimed to be carried out in this research would also help in analyzing the external and the
internal factors affecting the coffee shop market in UK and thus, help in strategizing and
formulating policies for establishing a new coffee shop in the market.
The objectives of this research project can be enlisted as follows;
 To carry out a primary research regarding the choices and preferences of the customers
visiting the coffee shop
 To study the external and the internal environmental factors affecting the business of coffee
shops
 To analyze the strengths and weakness of the research project
 To amend the plans and implement the same, in order to aid effective formulation of
strategies for the coffee shop business
Research plan
Activity Timeframe
Deciding on the topic for the research project 1st week
Planning on the resources 1st week
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Preparing the questionnaire for the primary research 2nd week
Conducting primary research 2nd week
Deciding on the topics of secondary research 3rd week
Conducting secondary research 3rd week
Analysis of the primary research data 4th week
Analysis of the secondary research data 4th week
Framing the conclusion and the results of the report 5th week
Framing the strategies for the coffee shop proposed to
be opened based on the results of the data collected
6th week
Implementation of the new strategies and final
drafting of the report of the analysis conducted
6th-7th week
Gantt Chart
Activities Week 1 Week 2 Week 3 Week 4 Week 5 Week6 Week 7
Deciding on
the topic for
the research
project
Planning on the
resources
Preparing the
questionnaire
for the primary
research
Conducting
primary
research
Deciding on
the topics of
secondary
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research
Conducting
secondary
research
Analysis of the
primary
research data
Analysis of the
secondary
research data
Framing the
conclusion and
the results of
the report
Framing the
strategies for
the coffee shop
proposed to be
opened based
on the results
of the data
collected
Implementation
of the new
strategies and
final drafting of
the report of
the analysis
conducted
Possible sources
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The possible resources that would be required for this project can be enlisted as follows:
Resources Cost per unit/day No. of units/days Total cost
Overhead expenses to
be incurred during the
primary research
$6 7 days $42
Overhead expenses for
secondary research
$4 7days $28
Internet costs $20 Subscription of a
month
$20
Costs incurred during
analysis and framing of
the results
$3 15days $45
Total Cost $135
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Task 1.2
Carry out approved research project noting changes to plans following review
The primary research comprises of the research process in which the students are individually
surveyed for knowing their choices and preferences when they visit the coffee shops. The sample
population surveyed in this research project is 100 students. A survey questionnaire had been
prepared for the research, which consisted of 3 demographic questions, 7 questions regarding the
preferences and details of the students who participated in the survey. Since the questionnaire
contains details of the students participating in the survey, they need to be handled with care, in
order to protect the data from being shared without the consent of the participants. The details of
the primary research conducted can be enlisted as follows:
Question1 What do type of coffee do you normally buy in a COFFEE SHOP?
Options Number of respondents
Latte 15
Double Latte 12
Espresso 18
Double Espresso 6
Americano 7
Flat white 10
Mocha 20
Cappuccino 6
+Syrup 2
Go Large 4
Question2 What are the Specialty Hot Drinks that are preferred by the customers?
Options No. of respondents
Traditional English 22
Soup of the day 18
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Decaf 5
Hot chocolate 48
Elder Flower 7
Question 3 What are the Cold Drinks that are preferred by the students when they visit the
coffee shops?
Options No. of respondents
Coke 5
Water 7
Sprite 28
Diet Coke 14
Iced coffee 10
Smoothies 16
Shakes 15
Frozen Yoghurts 5
Question 4 What are the kind of baguettes that are preferred by the regular visitors at the
coffee shop?
Options No. of respondents
Cheese 45
Ham 10
Tuna 7
Tomato 38
Question 5 What are the kind of Ciabattas that are preferred by the regular customers?
Options No. of respondents
HAM 42
Cheese, 33
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Tuna 12
Tomato 13
Question 6 What are the options that are availed by the customers regarding their
preferences?
Options No. of respondents
Take-in 30
Take out 22
Delivery 48
Question 7 what are the kind of other bites that are preffered by the customers?
Options No. of respondents
Cake 30
Croissant 28
Panini 22
Toasties 20
The results of the survey reveal the fact that most of the customers visiting the coffee shop
preferred Mocha and Espresso as compared to other varieties of the coffees that the shop deals
in. Hot chocolate is a favorite among the teenage and millennial population and thus the sales
proportions of these products are relatively higher as compared to other hot drinks served at
coffee shop Sprite and Smoothies are the two most preferred cold drinks. The popularity of
Cheese in baguettes and ham in Ciabattas were also discovered in this research project. In
modern times, most of the individuals prefer placing the orders via the social apps and media and
thus, home delivery is the most quickest and easiest path to be covered. Cake and Croissant are
the food that are popular among the people visiting coffee shops. Thus it can be effectively
concluded that the proposed coffee shop requires to provide for hot chocolates and certain other
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mandatory menus in the lists while arranging for delivering the products and services to the
customers.
The secondary research conducted on the coffee shop market in UK revealed the fact that this
market contributes to the economy of UK in a great way and the revenues generated from the
coffee shops amounted to almost 9 billion Euros in the year 2017 (Burgoine and Harrison, 2013).
There are coffee shops opening every now and then in the localities of the towns and the cities
and this has led to the formation of an enormous 20,000 outlets selling coffee and daily
consumables, all around the city (Charter and Keiller, 2016). By the year 2020, the revenue
generated should increase five times and the estimated number of outlets is expected to rise to
30,000 (Ferreira, 2017). The coffee shops are a part and parcel of the daily life and the demands
of the customers to avail an energizing cup of coffee on all parts of the day leads to the success
of these ventures (Morris, 2013). The coffee markets are also labile to the technological
innovations to be incorporated into the systems of the company and this, necessitates the
launching of technologically advanced systems and amenities at the coffee shops these days like
availability of Wi-Fi facilities and music systems (Nadiri and Gunay, 2013). The online presence
of the app and the providence of the services through the online means is also another
technologically advanced incorporation into the systems which drives the organizations to
success. The proposed Coffee shop should incorporate such advancements in order to be
successful in the market.
Task 2.1
Present, justify and evaluate their choice of, method to present the findings and completed
research project
The primary research helped in analyzing the choices of the customers and in studying their
expectations from the proposed coffee shop while the secondary research, executed by tallying
books and magazines yielded the fact that the external environment of the business also plays a
major role in deciding the success of the ventures. The findings have been represented with
respect to the number of respondents. The values of the respondents and their choices helped in
understanding the prevalent choices in the industry. The inclusion of the primary as well as the
secondary research ensured that all the factors and the analysis of the internal and the external
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environment was carried out effectively and efficiently and thus, guaranteed the conclusions
reached in the project.
Task 3.1
a)strengths and limitations of the project’s subject
The strengths of the subject are:
 The easy availability of the relevant information over the Internet sources
 The subject allowed for a very important study to be conducted in the Coffee Business
market
 The number of respondents (100 people), who expressed their views for arriving at the
correct conclusion
The limitations of the project are:
 The limited funds and resources available for conducting the research
 The inability to contact and interview more than 100 participants
 The limited time available for conducting the research
b)the extent to which the project met its aims and objectives
The aim of the project was to analyze the choice of the customers visiting the photos and
developing the proposed coffee business in a such way so that the shop is able to fulfill the
demands and requirements of the customers. The primary and the secondary research conducted
helped in gauging the external and the internal environmental factors affecting the business in the
coffee shop market and the strategies as well as the policies that can be formulated by the
administration in order to set up a successful and established business in the market. The
objectives of the project encompassed carrying out primary and secondary research effectively,
in order to understand the preferences of the customers as well as the factors affecting the
business, which has been successfully achieved in this business. The strengths and the limitations
of the research project undertaken has also been identified and stated, as per the requirements.
The results obtained from the primary and the secondary research has been used effectively to
amend the plans for the proposed business and frame appropriate recommendations at all stages.
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c) the plan and impact of their reviews of the plan
The plan had been proposed to set up a coffee shop catering to the requirements of the
customers, however the research helped in identifying certain factors that influenced the normal
operation of the business. It was found that the technological advancements played a significant
role in the establishment of the business and thus, recommendations were framed to include the
technologically advanced systems into the functioning systems of the proposed organization, in
order to meet the demands of the market more efficiently.
d)the presentation of findings
The most significant findings of the project can be enlisted as follows:
 Technological advancements needs to be necessarily incorporated into the coffee shop
market
 Most of the customers prefer Mocha and Espresso as compared to other varieties of the
coffees
 Hot chocolate is a favorite among the teenage and millennial population
 Sprite and Smoothies are the two most preferred cold drinks in the coffee shops, among the
youth as well as the teenagers and the millennial population
Conclusion
This research project helped in understanding the ways in which a research needs to be
conducted before starting off any business ventures. The factors that plays a major role in the
establishment of the project has also been studied. The details of the coffee shop market in UK
has been studied in detail and the values has been used for reaching effective conclusions and
plan for recommendations regarding the future systems that needs to be fitted in the working
models of the functioning as well as newly-established coffee shops.
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