Business Plan: Deline Cafe in Melbourne, Australia - Detailed Analysis

This document presents a detailed business plan for Deline Cafe, a new coffee shop proposed to be established in Melbourne, Australia. The plan outlines the business's structure, products (espresso-based coffee beverages, pastries, and sandwiches), and target market, which includes consumers who enjoy gourmet coffee. It details the business's registration, premises, organizational structure, management, and key personnel. The plan also covers marketing strategies, including low-cost advertising and social media promotion. Furthermore, it includes a vision and mission statement, along with specific goals and financial projections, such as securing a loan and achieving a 65% gross profit margin. The plan also includes a SWOT analysis, competitor analysis, and risk management strategies, along with operational details like production processes, suppliers, and technology used, providing a comprehensive overview of the proposed business venture. The document is contributed by a student to be published on the website Desklib. Desklib is a platform which provides all the necessary AI based study tools for students.

1Running head: BUSINESS PLAN
[ ]
[Your Name]
[Your Title]
[Deline Cafe]
[Main Business Address]
ABN: [ABN 13 784 556 001]
Business Plan
Prepared: Date Prepared

2BUSINESS PLAN
Table of Contents
1. Business Plan Summary..............................................................................3
1.1. The Business...............................................................................................................3
1.2. The Market.................................................................................................................4
1.3. The Future..................................................................................................................4
1.4. The Finances...............................................................................................................5
2. The Business..............................................................................................5
2.1. Business details..........................................................................................................5
2.2. Registration details.....................................................................................................5
2.3. Business premises.......................................................................................................6
2.4. Organization chart......................................................................................................6
2.5. Management & ownership.........................................................................................7
2.6. Key personnel.............................................................................................................8
2.7. Products/services........................................................................................................9
2.8. Innovation.................................................................................................................10
2.9. Insurance...................................................................................................................10
2.10. Risk management...................................................................................................11
2.11. Legal considerations...............................................................................................12
2.12. Operations...............................................................................................................12
2.13. Sustainability plan..................................................................................................14
3. The Market.............................................................................................. 15
3.1. Market research........................................................................................................15
3.2. Market targets...........................................................................................................15
3.3. Environmental/industry analysis..............................................................................16
3.4. Target customers......................................................................................................16
3.4. S.W.O.T. analysis.....................................................................................................17
3.5. Competitors..............................................................................................................18
3.6. Advertising & sales..................................................................................................22
4. The Future............................................................................................... 24
4.1. Vision statement.......................................................................................................24
4.2. Mission statement.....................................................................................................24
4.3. Goals/objectives.......................................................................................................25
4.4. Action plan...............................................................................................................25
5. The Finances............................................................................................26
5.1. Key objectives & financial review...........................................................................26
5.2. Assumptions.............................................................................................................26
5.4. Balance sheet forecast..............................................................................................28
5.5. Profit and loss forecast.............................................................................................29
5.6. Expected cash flow...................................................................................................30
5.7. Break-even analysis..................................................................................................30
5.8. Supporting documentation........................................................................................30

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1. Business Plan Summary
1.1. The Business
Business name: Business name selected for the new coffee shop business is Deline
Café that will be situated in Melbourne, Australia.
Business structure: The new coffee shop business will be situated in Melbourne. For
setting up the business, the new coffee shop will initiate its business as a company. Operating
as a company Deline Café will have three functioning groups in the firm including
production, sales along with marketing and administrative group.
ABN: Deline Café’s ABN number will be ABN 13 784 556 001.
Business location: The new coffee shop business will be situated in Melbourne,
Australia.
Date established: The date on which the business will be set up is on 5th March, 2018.
Business owner(s): The business owners of the Deline Café are James Polk who will
hold 51% shares and Todd Megan who will have minority shares in the company.
Relevant owner experience: James Polk has 10 years of experience as a head chef in
a renowned Australian restuarnat and has attained food championship trophy in Australian
food festival.
Products/services: Deline Café will offer expresso-based coffee beverages including
mochas, lattes, cappuccinos, etc. Such coffee beverages will be prepared as per the tastes and
preferences of the target consumers in Melbourne. As the consumers prefer perfectly brewed

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quality coffee, the café will maintain efficient preparation techniques in preparing such
beverages.
1.2. The Market
Target market:
The target market of Deline Café includes consumers those prefer gourmet coffee
along with enjoying exotic and unique coffee flavors. The company offers variety of coffee
beverages as per the demands of the target market. The target consumers prefer enjoying
better tasting coffee that belongs to every age group. However, as the coffee shop will be
situated beside a university majority of its consumers will be students and faculties.
Marketing strategy: Deline Café will develop a marketing strategy that will employ
low cost advertising strategy. The promotional campaigns include drive-time radio and
bulletin relationships with schools and charities. Distinctive logo of “Deline Café” with a
flower blooming in a pot symbol will be the unique promotional strategy that will indicate
happy and conspicuous ambiance. The marketing strategy of Deline Café is focused on
promoting the value proposition of the new café through social media and hoardings in the
nearby universities.
1.3. The Future
Vision statement:
Deline Café will have a vision in generating an exceptional place where the customers
might socialize with others in a relaxing and comfortable surroundings. The café will have an
intention to make people enjoy freshly brewed espresso and coffee in the town.
Goals/objectives:

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Deline Café has set certain objectives that it considers to be addressed in the first year of
the business:
 Maintaining a gross margin of 65%
 Attain profits from the initial month of the business operation
 To position itself as the “best new coffee shop in the locality”
1.4. The Finances
The new coffee shop will attain funds through obtaining loan of $ 230, 000 from the
bank. Deline Café expects 65% gross profit margin and anticipates that its net profit will grow
from $507,304 to $ 666, 672 in two years.
2. The Business
2.1. Business details
Products/services Deline Café will offer expresso-based coffee beverages including
mochas, lattes, cappuccinos, etc. The coffee shop will also prepare pastries and sandwiches of
different flavors. Such coffee beverages will be prepared as per the tastes and preferences of
the target consumers in Melbourne. As the consumers prefer perfectly brewed quality coffee,
the café will maintain efficient preparation techniques in making such beverages.
2.2. Registration details
Business name: Business name selected for the new coffee shop business is Deline
Café that will be positioned in Melbourne, Australia.
Trading name(s): Deline Café is the proposed trading name for the new coffee shop
Date registered: The date on which the business will be set up is on 5th March, 2018.

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Location(s) registered: The new coffee shop business will be situated in Melbourne,
Australia.
Business structure: Deline Café will operate its business as an established company
ABN: Deline Café’s ABN number is ABN 13 784 556 001.
GST: Deline Café will register itself for GST on 10th February, 2018
Domain names: The domain names that are considered to be registered for Deline
Café include DelineCafe.com.au and DelineCafe-Registration.com.au.
Licenses& permits: The licenses and permits that will be registered for the new
coffee shop business are registration with ABN, attaining licenses for hospitality service and
food handlers permit.
2.3. Business premises
Business location: The new coffee shop business will be situated in Melbourne. For
setting up the business, the new coffee shop will initiate its business as a company. The
company will relatively be a flat one as most of the employees are associated with production.
Operating as a company Deline Café will have three functioning groups in the company
including production, sales along with marketing and administrative group.
Buy/lease:Deline Café will take the ground floor of a residential complex in
Melbourne for lease in order to start a new coffee shop business.
2.4. Organization chart

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(Figure 1: Organization Structure)
Source: Authors Note
2.5. Management & ownership
Names of owners: James Polk and Todd Megan will be the business owners of the
newly established coffee shop “Deline Café”.
Details of management & ownership: The business owners of the Deline Café are
James Polk who will hold 51% shares and Todd Megan who will have minority shares in the
company.
Experience: James Polk has 10 years of experience as a head chef in a renowned
Austskian restuarnat and has attained food championship trophy in Australian food festival.
Todd Megan has more than 2 years’ experience to work as a manager in a renowned
Australian restaurant.
OwnerandsupervisorChefsCounterManagerTableattendentsAccountantandMarketing

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2.6. Key personnel
Current staff
Job Title Name Expected staff
turnover
Skills or strengths
Accounting and
marketing
manager
Stefen
King
[12-20 months] Qualifications in accounting and five
years of experience as marketing
manager
Head chef Brantley
Hoopers
[10-15 months] Qualification in hotel management
with 4 years of experience as chef
Counter manager Chris
Hooper
[9-20 months] Qualifications in accountancy with 3
years of experience as an accountant
Table attendants Rimi
Sanon
[12-18 months] Graduate in hotel management with 1
year experience as table attendant
Required staff
Job Title Quantity Expected
staff
turnover
Skills necessary Date required
Table
attendants
[4] [2-3 years] [Relevant qualifications in
hotel management with at
least 2 years’ experience.]
[10thNovember
2018]
Recruitment options

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Deline Café will recruit its staff through employing three recruitment options such as
advertising on local newspapers, online advertising and through employee referral programs.
Training programs
New staff recruited for the new coffee shop will be trained through offering a training
manual, training them to interact with consumers and through trading them regarding the
ways in which the coffee shop works at different levels.
Skill retention strategies
Skill retention strategies that will be used by Deline Café includes hiring retainable
employees, assigning work to employees that is suitable to their skills and by investing in line
managers.
2.7. Products/services
Product/Service Description Price
Gourmet Freshly brewed with cream [$10]
Sandwiches Will contain baked chicken and seasonings [$10]
Espresso Coffee with chocolate drizzling’s [$10]
Pastries With chocolate and lemon flavours [$10]
Market position: In comparison to its competitors, the products will be high end with
exceptional quality.
Unique selling position: Sustainably sourced and prepared with finest quality coffee
beans with free addition of flavors based on consumer’s demand.

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Anticipated demand: The demand for the coffee shop’s coffee beverages is deemed
to increase by 15% and food products by 20% at the end of the first year.
Pricing strategy: The new coffee shop will develop premium pricing strategy that
will justify the quality of its products.
Value to customer: The target consumers will perceive the company’s products as
luxurious and premium that can provide them superior experience of enjoying coffee of great
taste.
Growth potential: Increasing demands of espresso and gourmet coffee in Melbourne
will increase the growth of its coffee products in the upcoming years.
2.8. Innovation
Research & development (R&D)/innovation activities
Products and coffee brewing techniques will be innovated regularly for coming up
with innovative food products and new machineries in order to make coffee beverages of
better quality.
Intellectual property strategy
Deline Café will register its trademark for the company name and logo that will
provide the coffee shop with protection from risk of imitation without permission.
2.9. Insurance
Workers compensation: Deline Café will attain worker’s compensation insurance
through which it will make sure to offer wage replacement and medical benefits in case
employees are injured.

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Product liability: Deline Café will attain product liability insurance to safeguard the
business from damage or injury claims arising from its products.
Business assets: Deline Café will attain business assets insurance that will protect
assets of the new business including burglary cover and business interruption.
Business revenue: Deline Café will attain business interruption insurance that will
cover income loss of the business that is caused by disaster related business closure.
2.10. Risk management
Risk Likelihood Impact Strategy
Operational risk likely Medium Effective management must
be maintained along with
having effective quality
control and consumer
service.
Financial risk Likely High Adequate capital must be
maintained to pay owners
living expenses till the
business attains a profit
Market risk Likely High Market risks can be
managed through carrying
out market analysis that can
facilitate in determining
market potential