Coffeerito Cafe: Comprehensive Business Model Proposal

The assignment is a comprehensive business proposal for "Coffeerito Cafe," a planned cafe in Hobart, Tasmania, designed as a family-run business with a barista station and a wine craft beer bar. The report outlines the business concept, vision, and mission, focusing on delivering high-quality beverages with an environmentally friendly approach. It details product and service offerings, including a wide range of coffee drinks and complementary items, along with a startup inventory cost breakdown. The proposal includes a competitor analysis using Porter's Five Forces, assessing supplier and buyer power, competitive rivalry, and threats of substitution and new entry. A market analysis examines consumer habits and employment statistics in the food service industry, while the marketing mix covers product, pricing (penetration, value-based, and premium), promotion (advertising and discounts), and place (Hobart, Tasmania). An operational plan, SWOT, PESTEL, organizational structure, and ecosystem analysis are included, along with a financial plan and conclusion.

BUSINESS MODEL
PROPOSAL

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Business concept:.........................................................................................................................1
Vision and mission......................................................................................................................1
Product and services:...................................................................................................................2
Competitor analysis.....................................................................................................................2
Market analysis:...........................................................................................................................5
Marketing mix...........................................................................................................................10
BUSINESS CANVAS MODEL....................................................................................................13
OPERATIONAL PLAN................................................................................................................17
SWOT........................................................................................................................................17
PESTEL.....................................................................................................................................19
Organisational structure:............................................................................................................23
Ecosystem analysis:...................................................................................................................26
FINANCIAL PLAN......................................................................................................................27
CONCLUSION..............................................................................................................................30
Ecosystem analysis of business and competitors.......................................................................31
REFERENCES..............................................................................................................................31

INTRODUCTION
“Coffeerito Cafe” have been planning to refurbishing a previously existing shop to convert it into a café. It has been determined
by the professionals that there would be a barista station as well as a wine craft beer bar. It has been proposed by the professionals that
they will initiate this set-up in Hobart Tasmania. It will be a family run business and owned as a personal property. In the present
report, to set up this business plan on which there would be consideration of several factors such as vision and mission, product and
services, market, competitors, operational efficiency as well as financial health of firm in promoting this business concept.
Business concept:
“Coffeerito Cafe” has been based on delivering the best quality of beverages in the café with the concept of Barista station and a
wine craft bar. It has been stated by the professionals that the barista station would operate business on shift basis on which people
will take away their drinks plus there is no seating available, for the wine craft bar there will be availability of seats.
Moreover, it has been planned that “Coffeerito Cafe” will function between 07.30-16.30 with considering all the legal terms and
legislation stated in Hobart. It will be approached towards bringing the green, environmental friendly as well as sustainable business
approached which would be beneficial for society. The target consumers for this café will be nearly resident families, school students
and general public. It has been estimated by the professionals that, this concept would be effective in controlling the costs of a cafe as
well as generating proper amount of revenue.
Vision and mission
Vision: To become a best café for coffee lovers in Hobart, Tasmania with the variety of beverages presented in market.
Mission:
 To achieve the best market reputation and creating identity in environment.
 To expanding the business by its product scope and also in numbers of consumer
 To maintain Gross profit margin more than 60% per quarter.
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Product and services:
There are wide of range of varieties which have been decided by the professionals at “Coffeerito Cafe”. Therefore, several types
of coffees and related beverages would be effective in leading the business for reaching consumer satisfaction. Its has been estimated
by the professionals that the start-up inventory would costs them on the basis of estimated cost of ingredients such as:
Coffee beans 4000
Coffee filters, baked goods, salads, sandwiches, tea, beverages etc. 5500
Retail supplies 1700
Office supplies 300
Expresso machine 5000
Coffee maker 1200
Grinder 700
Other equipment 1600
Camel milk 2500
Total cost 22,500
Competitor analysis
There are various competitors which will affect the operational practices for “Coffeerito Cafe”. However, this will have negative
impacts on the growth and profitability of the business in terms of creating a business identity in the market. Rivalries affects the
profitability of the business as per the changes in product lines, prices as well as convenience to the consumers (Brinckmann and Kim,
2015). To attract the large number of buyers in café, on which “Coffeerito Cafe” must implicate various techniques to be undertaken
by them. It will be helpful as if the business must implicate the below listed model to analyse the competition stated in market
environment.
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Porter’s Five Forces
Figure 1 Porter's five forces
(Source: Porter’s Five Forces of Competitive Position Analysis, 2013)
Suppliers power: This cost of assessment based on how a business would be affected by the suppliers. Thus, in the case of
rare product line on which variety of raw material are being required by a business which would have risen the bargaining power of
suppliers. They will charge higher rates in supplying such products. “Coffeerito Cafe” is being planning to serve the camel milk coffee
in the market which is the rarely being used by any coffee shop (Watson and McGowan, 2018). Thus, arranging camel milk would be
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a big task for the businesses and which would affect its cost structure. Thus, in this case the coffee shop is having higher threat of
supplier’s power.
Buyer power: It is based on the number of buyers are interested in the product line. However, there will be threat of losing the
consumers as they can switch to the most convenient business in terms of location, costs and quality of services ( Ghezzi and et.al.,
2015). “Coffeerito Cafe” will have medium rank of challenges which would affect the business in not retaining adequate targeted
aims.
Competitive rivalry: There are large number of competitors stated in Hobart which would challenge business functioning of
“Coffeerito Cafe” such as Villino coffee, Shoebox, café, Beaujangles café coffee shop etc. Thus, the consumer backup as well as
public attraction towards such coffee shops is comparatively higher which would affect the firm in managing the operational activities
(Yu and Wiklund, 2015). Moreover, there would be various numbers of competitors which are being stated in South Hobart such as
Ginger brown cafe, Rivulet cafe and McQuarrie street food store.
Threat of Substitution: There will be treat to a business on we basis for having the similar products and services as well as
having duplicates which would affect the consumer interests. Consumers are price sensitive as well as their satisfaction is balance
between the quality as well as costs of the services which are they enjoying (Rosati and Conti, 2016). Thus, to maintain such ration on
which a business is required to state cost effective prices as well as making reliable quality of production in market. “Coffeerito Cafe”
will have threat of number of substitutes such as tea and other beverages which would change interest of consumers in switching
organisation.
Threat of new entry: There have been influences of various entries for the new entries which would create barriers for the new
entries stated in the market. “Coffeerito Cafe” there have been implications of regulations, taxation as well as trade policies
(Brinckmann and Kim, 2015).
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Market analysis:
By considering the consumer interest and habit of consuming caffeine on which analysing the rate of coffee have been
consumed under the various cities of Australia can be determined and undertaken such as:
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Illustration 1: Employment level by industries in Hobart
(Source: Employment by Industry, 2019)
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In accordance with the above presented statistics which is reflecting the number of employees has been engaged in the
operational process which are serving the state best employment opportunities. However, in this case the food services business is
presenting the employment as 4679 as per the statistical ascertainment in 2016. therefore, they contribute 27.6% of employment in the
state. On the basis of which it can be said that Coffeerito cafe would have adequate growth and profitability which would result in
better operational management as well as retaining the qualitative growth in environment
Moreover, there can be influences of various number of competitors which would have impacts on managing the operations and
making corrective actions to be undertaken by the business professionals. In South Hobart, there are rivalries which would challenge
the business in undertaking the operational efforts and making corrective
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Figure 2 Small business statistics in Southern region of Hobart
(Source: SMALL BUSINESS STATISTICS, Greater Hobart-Southern Region, 2018)
In accordance with the southern region in Hobart there have been various number of small businesses which were operating and
contributing in the economy. In this case, accommodation, cafes and restaurants which are rapidly raising and contributing in the
society. In terms of revenue as well as employment rate the hospitality businesses are one of the most successful industries in the
economy.
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Marketing mix
Product- The product menu of “Coffeerito Cafe” will include Espresso-based drinks like cappuccinos, lattes, mochas etc. Each
of the coffee drinks will be served with skimmed, whole or soy milk (Watson and McGowan, 2018). Espresso shots will be mixed
with the milk and other additions such as caramel, cocoa etc. Further the menu will include the basic flavors like Cold Coffee with
chocolate ice-cream, coffee with cinnamon stick, hot coffee, Black coffee and Sugar free French Vanilla coffee cream.
Products Ingredients
Expresso It is a concentrated drink which is consists of brewed quantity of approx. 1- 1*1/2 ounce. It has a smooth,
velvety crema and intense aroma texture. It has been served in a pre-heated espresso cup.
Cappuccino This recipe has been prepared with considering the traditional aspects such as 1/3rd part espresso, 1/3rd part
steamed milk and 1/3rd foam in a cup. It will have garnishing of ground chocolate, cocoa powder, cinnamon
or nutmeg. For adding flavours on which there would be addition of quality coffee syrup as Monin to taste.
Mocha: This is the easiest recipe which is highly preferred in the market. Thus, it consists of ingredients such as 1
cup hot coffee, 1/4th cup of milk any percentage, 1 tablespoon (5g) unsweetened cocoa powder, 1
tablespoon heavy cream, 1-2 tablespoon granulated sugar to taste and whipped cream for toppings.
Latte It is a double shot of expresso which have been mixed with approximately 5 oz of steamed milk and there is
no addition of foam. It will be served inn a large latte cup that will consist of 9-12 oz of quantity.
Camel milk coffee This has been determined as the special recipe for “Coffeerito Cafe” which will be consisting the various
ingredients such as 2 cups of camel milk, 1 tsp vanilla extract, 1/s tsp honey, 1 tbsp cinnamon, ½ tsp ground
nutmeg, ¼ tsp ground ginger and cloves and cardamom.
Pre-bought slices These are the slices of bread such as toast which would be served among consumers. It will have variety of
preparations such as garlic bread, toasts and in various flavours as per consumers desire.
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