Developing a Sustainable Growth Business Plan: Forrest Cafe, London

This business plan details the launch of Forrest Cafe, a unique hospitality venture located in London. The plan covers various aspects including target customers (both B2B and B2C), competitive analysis, skills analysis, projected profit and loss statements, cash flow projections, and break-even analysis. It identifies key competitors such as Sizzles and Cafe Arena, and emphasizes the cafe's unique selling proposition: fresh food served in a jungle-themed environment with bamboo utensils. The plan outlines funding sources including personal investment, patient capital, and bank loans, and details the acquisition of necessary resources like kitchen equipment and furniture. Furthermore, it addresses the management information system required for smooth operations, focusing on point-of-sale systems and financial management. The vision for Forrest Cafe is to create a vibrant and enjoyable dining experience, with future plans including menu expansion and new branch openings.

Growth Sustainable
Business Plan

Executive Summary
This business plan is about starting a new cafe where all the resources that will be needed have
been discussed. Also the target customers along with competitors have been discussed. Projected
profit and loss and projected cash flow have been calculated. Sources of funding and
management information system needed are also been included.

Table of Contents
MAIN BODY...................................................................................................................................1
Proposed Future Business...........................................................................................................1
Customers....................................................................................................................................1
Competitors.................................................................................................................................2
Skills Analysis.............................................................................................................................2
Projected Profit & Loss...............................................................................................................2
Projected Cash Flow Statement..................................................................................................3
Break even...................................................................................................................................4
Sources of Funding.....................................................................................................................4
Plans for obtaining resources......................................................................................................4
Management Information System Required...............................................................................5
Vision..........................................................................................................................................5
REFERENCES................................................................................................................................6

MAIN BODY
Proposed Future Business
The proposed future business plan will be based on hospitality sector, where service will be
offered in a cafe. The name of the cafe will be Forrest Cafe and will be located at Wentworth street,
London. The services that the cafe will be offering are dine in, takeaway and delivery services. Also, the
products that cafe will be offering will be limited because the cafe is going to offer those products which
are in demand as well as in which it specialises. So the products that will be offered in food menu are
sandwiches, salads, cakes, soups, crisps nuts and other snacks. In drinks menu hot drinks, refrigerated
drinks, iced tea and coffees, milkshakes and smoothies, alcohol will be offered which will include coffee,
teas, hot chocolates, juices, mock-tails, cocktails and many more (Dahlstrom and Talmage, 2018 ).
The cafe will be offering its customers fresh food served with live music so that customers can
enjoy their food and drinks. The innovation that cafe will bring in the market will be based upon its décor
and how it will be offering food and drinks to the customers. So for it cafe will be decorated based on the
jungle theme where the sitting of the guests will be inside the caves and the lightings inside the caves will
be minimal. Also the food that will be served to the guests will be done by waiters wearing the costumes
of various animals. The utensils that will be used to serve the food to guests will be related to the theme
of forest only. The intellectual property rights that will be needed by the cafe will be trademark rights for
the name and logo of the cafe as the name is very unique and this kind of cafe is not there in the market
(Haseeb and et.al., 2019).
Customers
The target customers for the cafe will be both B2B and B2C. In B2B, those customers will be
targeted who are ordering the food online. Whereas in B2C customers that will be targeted will be on the
basis of customer characteristics such as intention, preferences and lifestyle. In intention those customers
will be targeted like customers coming in their lunch break, customers meeting with their friends and
family dinner. In preferences those customer will be targeted who loves nature as the concept of cafe is
based on it. In lifestyle the customers that will be targeted are the persons who loves food and music. The
end users of the business will be the couple, the foodies, families, the solo diner and the regulars. The
products of the cafe will be purchased by the targeted customers. The USP of this cafe will be that fresh
food served in cutlery made of bamboo. The customer needs that are met through our food and services is
that they get lots of option to choose from the menu and they seek experiences while spending time at the
cafe. The target market has been selected on the basis of the footfall of the customers. Evaluation of the
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business position in the market is essential. For the cafe, business evaluation has been done on the basis
of market size, urgency, pricing potential, uniqueness of offer and investment that will be needed.
Competitors
The competitors of the cafe will be Sizzles, Nora cafe, Trade, Peter's cafe, Cafe Arena, Cafe from Crisis
London, Arts Bar and Cafe, Unity diner and Cafe Lucas. The market share of all these cafes are nearly
equal as the footfall of the customers at these cafes are high. The customers will come to the cafe because
of its unique theme that is of forest and its a new concept where they will eat and enjoy sitting inside the
cave. Also, they will be eating in the bamboo utensils which is sustainable and environment friendly
(Lahti, Wincent, and Parida, 2018).
Skills Analysis
The skills that I have for developing and taking my business idea forward are communication, sales, focus
and business strategy. The skills that will be needed are all of them but new skills are also needed like
resilience skills and financial accounting skills. The communication skills will be needed because in order
to attract customers to the cafe, I need to communicate with them properly so that they get impress and
visit the cafe frequently. Sales skills will be needed to generate profit as the profit will be the main key for
the survival of the business. Focus skills will be needed so that I stay focus in the business if I suffer loss
also because I need to find out new strategy to attract the customers. Business strategy will be needed to
scale up my business that is to achieve high growth in my business. The skills where I lack will be
addressed through when I stay focus in my business to address resilience skills. For financial accounting
skills I will learn some basic accounts so that my business grows (Lam and Li, 2019 ).
Projected Profit & Loss
Particulars FY2022 FY2023
£ £
Revenue 250000 300000
Direct Costs 70000 85000
Gross Margin 180000 215000
Operating expenses
Salaries & wages 19000 22000
Employee related expenses 5000 6000
Rent 10000 12000
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Marketing 12000 15000
Total operating expenses 46000 55000
Operating Income 134000 160000
Interest incurred 900 500
Depreciation and Amortization 10000 10000
Income Taxes 3265 6400
Total Expenses 14165 16900
Net Profit 119835 143100
Projected Cash Flow Statement
Particulars FY2022 FY2023
£ £
Net Cash Flow from Operations
Net Profit 119835 143100
Depreciation and Amortization 10000 10000
Change in Accounts Receivable 0 0
Change in Inventory -5000 -2800
Change in Accounts Payable 0 0
Change in Income Tax Payable 2232 -116
Net Cash Flow from Operations 127067 150184
Net Cash Flow from Investing
Asset purchased -70000 -50000
Net Cash Flow from Investing -70000 -50000
Net Cash Flow from Financing
Change in short term debt -700 150
Change in long term debt -3000 -3500
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Net Cash Flow from Financing -3700 -3350
Cash at beginning of period 48000 52000
Net change in cash 53367 96834
Cash at end of the period 101367 148834
Break even
£
Fixed cost 41000
Sales price per unit 250
variable cost per unit 209
BREAKEVEN 1000
Sources of Funding
The options available for funding a cafe are through personal investment, patient capital,venture capital,
angels, business incubators, government grants and subsidies and bank loans. But the selection of source
of funding will be done on the basis that will be benefit to the business. Also, it will be done keeping in
mind to select two or three sources because putting eggs in one basket is not beneficial option. So the
sources of funding that are selected after evaluation are personal investment, patient capital and bank
loans. These sources are selected because in personal investment the capital will be put by the owner
only, in patient capital money will be loaned by friends and relatives and this will be safe because the
repayment can be done anytime. Bank loan is selected because getting funding through it is easy
(Neumeyer and Santos, 2018 ).
Plans for obtaining resources
The resources that will be needed are food storage bins, blenders, ovens, ice maker,software, contactless
ordering, furniture, refrigerator, food making utensils and utensils to serve food to customer. These
resources accept utensils and furniture will be purchased second hand. Furniture will be designed by the
designer according to needs of cafe. Utensils will be directly sourced from the manufacturer of bamboo
utensils.
Start up costs
Particulars £
Rent 10000
Renovation 20000
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Cafe equipment 15000
Software 8000
Wages 19000
Inventory and supplies 15000
Marketing expenses 12000
Total cost 99000
Management Information System Required
This is a cafe based business so management information system will be required for taking the decisions
by the managers. So information system needed will be point of sale system where smooth on boarding of
orders can be done by the managers and also the chef knows at time what order has been given by the
customers. This will also include payment via digital options like credit card. Communication system will
also be needed because to process the order on time that is communication should be flow on time
between front office and back office teams (Tolkamp And et.al., 2018). Financial management system
will also be needed so that inflow and outflow of cash can be managed properly. Also, through it
investment decisions can be taken wisely by the manager of the business.
Vision
The vision statement for the cafe will be to create vibrant and happy cafe where everybody enjoys food at
the cafe. The future of the business will be that as the footfall of customers will increase in the near future
than more option will be added in the menu and for it more chefs will be hired who are highly skilled.
Also, the branches of the cafe will be opened in other areas also with new concepts so that customers get
attracted (Turner, and Endres, 2017).
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REFERENCES
Books and Journals
Dahlstrom, T.R. and Talmage, C.A., 2018. Entrepreneurial skills for sustainable small business: An
exploratory study of SCORE, with comparison. Community Development, 49(4), pp.450-468.
Haseeb, M. and et.al., 2019. Role of social and technological challenges in achieving a sustainable
competitive advantage and sustainable business performance. Sustainability, 11(14), p.3811.
Lahti, T., Wincent, J. and Parida, V., 2018. A definition and theoretical review of the circular economy,
value creation, and sustainable business models: where are we now and where should research
move in the future?. Sustainability, 10(8), p.2799.
Lam, J.S.L. and Li, K.X., 2019. Green port marketing for sustainable growth and development. Transport
Policy, 84, pp.73-81.
Neumeyer, X. and Santos, S.C., 2018. Sustainable business models, venture typologies, and
entrepreneurial ecosystems: A social network perspective. Journal of cleaner production, 172,
pp.4565-4579.
Tolkamp, J.C.C.M. And et.al., 2018. User-centred sustainable business model design: The case of energy
efficiency services in the Netherlands. Journal of Cleaner Production, 182, pp.755-764.
Turner, S. and Endres, A., 2017. Strategies for enhancing small business owners' success
rates. International Journal of Applied Management and Technology, 16(1), p.3.
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