Gourmet Café Business Plan: A New Venture Proposal

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BUSINESS IDEA DEVELOPMENT: GOURMET CAFÉ
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BUSINESS IDEA DEVELOPMENT: GOURMET CAFE
Table of Contents
Introduction......................................................................................................................................3
New Venture Proposal.....................................................................................................................3
Development of Innovation Roadmap.............................................................................................4
Advocacy.........................................................................................................................................5
Experimentation...............................................................................................................................6
Feedback..........................................................................................................................................7
Reflection.........................................................................................................................................7
Development from the Original Idea...............................................................................................8
Feasibility and Viability..................................................................................................................9
Conclusion.......................................................................................................................................9
References......................................................................................................................................11
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BUSINESS IDEA DEVELOPMENT: GOURMET CAFE
Introduction
In the modern globalised world, the importance of entrepreneurship and new business ventures
have significantly increased. The main idea behind the business ventures is to develop a business
idea that would be able to provide value and contribute to the society while at the same time
solving their problems and meeting the needs of the people (Maravilhas, Melo, and Oliveira,
2018). The following study aims to ideate a new venture proposal with its own business
concepts, which is the Gourmet Café, which is a coffee shop based in London. The study also
aims to evaluate and analyse the different aspects of the business idea.
New Venture Proposal
The New venture proposal is one of the important components for an innovative business in an
effective an efficient manner. This study consists of new venture of opening a coffee shop in
London. According to the proposal, the coffee shop will be opened in London since the effective
consumer segments can be targeted in London. The Coffee shop will be opened in London and
the name of the coffee shop will be Gourmet café. The main Unique selling proposition of the
new venture is that a wide range of diverse flavor of exotic coffee shall be served in the coffee
shop to target the a wide range of consumers form millennial to the older generation in an
effective manner (Cornelis et al.,2015). The different exotic flavor likes the coconut coffee,
green mountain coffee and roasted coffee will be served in the Gourmet Coffee shop. Moreover,
regular coffee like cappuccino, latte and creamy coffee, ice coffee shall be present in the
Gourmet café to attract the young consumers. As it is seen that in London Instant coffee has
almost 20 % more market than traditional coffee.
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BUSINESS IDEA DEVELOPMENT: GOURMET CAFE
Moreover, the new venture will include a good supply chain management where exotic brewed
coffee from Brazil and Ethiopia will be done in an efficient manner. Additionally with coffee,
there will be items of snacks like sandwich, patty and different pies that should enhance the
business proposition in a prominent manner. The major concept is that the Café will be based on
theme of Friendship. Live music will be displayed in the café and there will be standup comedy
show to lighten the stress of the consumers. There will be no Wi-Fi, as the atmosphere of the
café will be based on sense that is more realistic and not on virtual world. The virtual world is
affecting the psychological state of the individuals at present so the there will be realistic homely
vibes in the café so the consumers feel relaxed and can be happy.
Development of Innovation Roadmap
The innovation Roadmap for the Gourmet Café using the business canvas model is:
 Key Partners: The key partners for the Gourmet Café would include the suppliers for all
the materials as well as the goods and the staff members.
 Key Resources: The key resources would be the coffee products, other food items and
snacks, and human resources such as the staff members.
 Key Activities: The key activity of the Gourmet Café is to provide the customers with
rich exotic coffee as well as other varieties of coffee.
 Value Propositions: The Gourmet Café would provide a friendly environment to the
customers without any interruptions while at the same time providing coffee and snacks.
 Customer Relationships: The Gourmet Café would aim to establish a friendly and
positive customer relationship.
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BUSINESS IDEA DEVELOPMENT: GOURMET CAFE
 Channels: The channels of Gourmet Café would be their physical coffee shops in
London as well as their official websites and social media sites.
 Customer Segments: The customer segment for Gourmet Café would consist of people
of age groups preferably from the ages of 15 to 75.
 Cost Structure: The cost structure for the Gourmet Café would consist of the cost of the
resources, the cost of the services such as electrical services and maintenance of the
shops, and the cost of the staff members, which would be an estimated £200,000.
 Revenue Streams: The Gourmet Café is expected to generate revenue through their
services and sales of their food and coffee. It is also expected that the revenue generation
would be able to increase by 35% by the end of the first year.
Advocacy
The pros and cons of the business idea of Gourmet Café are:
Pros
 The Gourmet Café would be able to provide different types of coffee such as instant
coffee, ground coffee, latte, cappuccino, and many more with different variety of flavors.
This would be helpful, as 77% of the coffee drinkers in London prefer instant coffee to
ground coffee while others prefer latte and cappuccino with some rare and exotic
preferences for mountain coffee, coconut green, Ethiopian dark coffee, and many more
(Zhou et al., 2018).
 The Gourmet Café is designed with an environment that would be compliant with the
preferences of the customers of varying age groups. It has been found that while
millennials drink less coffee compared to older generations, however, they contribute to
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50% of the coffee consumption, with generation X contributing 25%, and the rest from
age groups of 55 and above (Loftfield et al., 2018). However, one of the common traits
between all generations is that they prefer to have coffee in a relaxed environment, which
the Gourmet Café provides.
 The Gourmet Café is able to provide entertainment in the form of comedy shows, live
musical performances, book launch events, and many more. It has been found that 85%
of the coffee drinkers in the UK prefer to have some sort of entertainment services within
the coffee shops (Zhou et al., 2018). As such, the environment and atmosphere of the
Gourmet Café would be able to cater to their needs by providing entertainment.
Cons
 The Gourmet Café has neither Wi-Fi connection nor any television, which is a part of its
concept and theme about friendship where the customers would have coffee and
communicate with others without using any digital device. However, this can be an issue
as most coffee shops have Wi-Fi connections and television. It has been found that 45%
of the millennial coffee drinkers prefer to use Wi-Fi connections or watch television in
coffee shops (Poole et al., 2019). As such, this can pose a problem for the business if the
customers were to go to other coffee shops for Wi-Fi connections and television.
Experimentation
The business idea is tested as experimentation where the Gourmet Café is established as a coffee
shop within London in a crowded area in order to attract customers. The Gourmet Café would be
able to keep the prices of the coffee products low but profitable, however, the premium rare
exotic coffee prices would be kept high as they are unavailable in the coffee shops of London.
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BUSINESS IDEA DEVELOPMENT: GOURMET CAFE
Moreover, it would help to generate profitability and high revenues for the customers. The
Gourmet Café is kept in operation within the market for a month to gather the feedback
pertaining to the flaws and issues in the shop from the customers.
Feedback
From the gathered feedback of the customers, it has been found that the customers loved the
theme and concept of Gourmet Café coffee shop and especially the rare exotic varieties of coffee
that are served in the café. On average, the number of customers who visited the shop was from
80 to 100, which helped ensure that the predicted revenue generation and profitability of the
company would come to be true. While the customers were able to provide positive reviews, the
customers were also able to give some feedback on the issues they faced. These were:
 Lack of spacing within the Gourmet Café coffee shop made it problematic for the
customers to sit comfortably. It also affected the number of customers that the coffee
shop can accommodate at a single time.
 The inefficiency of the staff members caused delays in the orders of the customers which
affected the customers’ valuable time.
 Lack of variety among the snacks provided by Gourmet Café coffee shop was also a
problem for the customers as many customers preferred to have snacks that many other
coffee shops provided such as cake, muffin, chips, biscuits, and many more.
Reflection
The main theme of the Gourmet Café is to create a friendly atmosphere for the consumers in an
effective manner by serving a wide range of coffee from freshly brewed to instants coffee. The
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exotic coffees like coconut green coffee, and Brazilian coffee should help in developing a taste
for the consumers. Moreover, according to the feedback from the consumers seating arrangement
is one of the major issues that should be taken care in an efficient manner. A compact interior
design with comfortable table arrangement and centre place should be provided for the
performance of the life bands and stand up comedians and book release in an efficient manner.
According to the market needs, it is seen that in London, consumers are used to instant coffee but
there is a high demand for the brewed and traditional coffee as well. This may help in
enhancement of the business by almost 10 % (Bryson and MacKerron, 2016). Moreover, the
exotic flavors like Brazilian bean coffee and Ethiopian coffee should help in developing taste for
exotic coffee that should help in establishing competitive edge over the other café in a prominent
manner. The implementation of this plan should be done with effective collaboration with the
coffee supply chains in London so that cost effective exotic traditional coffee may be supplied to
the consumers.
Development from the Original Idea
The original ideas of the proposed venture is to establish Gourmet coffee shop were a wide
range of coffee starting form freshly brewed coffee to instant coffee will be served to the
consumers in an effective manner. According to the consumers the wide range of exotic coffee
like green coffee coconut green, are praised but varieties of the snacks need to increase. The
new developed plan includes a wide range of snacks that includes muffins, and cakes of different
flavors and along with the French fries there will be different kinds of chips so that consumers
may get more varieties of snacks. This may enhance the consumer’s base by almost 5 % (Merritt
and Gunter, 2015). Moreover, another important point according to the feedback is the interiors
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BUSINESS IDEA DEVELOPMENT: GOURMET CAFE
seating arrangement that need to be reconstructive in an effective manner. The interior of the
coffee shop should be planned in such a way that there should be sufficient room for seating and
performance stage should be designed at the centre so that it may be equally visible to every
consumers of the coffee shop. Furthermore, one of the vital points is the efficiency of the
workers serving the consumer should be up to the mark in the coffee shop. Capacity building
program of the servicing employee should be done.
Feasibility and Viability
The plan seems to be quite feasible as the cost of the manufacturing and formulation of the
supply chain management of the cafe seems to be around two hundred thousand pounds. The
investment might be gathered from government as a form of loans by giving the detailed
proposal. Moreover, in London, there is a good market of Coffee and since the supply chain
management is developed in an efficient manner to provide diverse range of coffee from brewed
traditional to instant coffee and ice cream coffee a wide range of consumer should be targeted.
Moreover, according to the market research it is being witnessed that live performance like
bands and stand up comedies has good market value and that may attract the consumers by
almost 10% (Grosso et al., 2016). Furthermore, effective collaboration with local bands and
stand up comedians is quite feasible in London and the cook may prepare exotic coffee available
in London in a prominent way.
Conclusion
The study mainly focused on the detailed development of coffee shop in London in an effective
manner. Moreover, the detailed proposal consisting the business canvas model has been
established. The prototype business plan has been implemented in the reality and the feedbacks
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BUSINESS IDEA DEVELOPMENT: GOURMET CAFE
from the consumers are gathered in an efficient manner. Moreover development based on the
feedback from consumers has been done. Feasibility and viability of the project has been
analysed.
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BUSINESS IDEA DEVELOPMENT: GOURMET CAFE
References
Bryson, A. and MacKerron, G., 2016. Are you happy while you work?. The Economic
Journal, 127(599), pp.106-125.
Cornelis, M.C., Byrne, E.M., Esko, T., Nalls, M.A., Ganna, A., Paynter, N., Monda, K.L., Amin,
N., Fischer, K., Renstrom, F. and Ngwa, J.S., 2015. Genome-wide meta-analysis identifies six
novel loci associated with habitual coffee consumption. Molecular psychiatry, 20(5), p.647.
Grosso, G., Micek, A., Godos, J., Sciacca, S., Pajak, A., Martínez-González, M.A., Giovannucci,
E.L. and Galvano, F., 2016. Coffee consumption and risk of all-cause, cardiovascular, and cancer
mortality in smokers and non-smokers: A dose-response meta-analysis.
Loftfield, E., Cornelis, M.C., Caporaso, N., Yu, K., Sinha, R. and Freedman, N., 2018.
Association of coffee drinking with mortality by genetic variation in caffeine metabolism:
findings from the UK Biobank. JAMA internal medicine, 178(8), pp.1086-1097.
Maravilhas, S., Melo, P. and Oliveira, S.R.G., 2018. Entrepreneurship and Innovation: The
Search for the Business Idea. In Handbook of Research on Strategic Innovation Management for
Improved Competitive Advantage (pp. 40-54). IGI Global.
Merritt, M.A. and Gunter, M.J., 2015. Coffee Drinking and Endometrial Cancer. Current
Nutrition Reports, 4(1), pp.40-46.
Poole, R., Ewings, S., Parkes, J., Fallowfield, J.A. and Roderick, P., 2019. Misclassification of
coffee consumption data and the development of a standardised coffee unit measure. BMJ
Nutrition, Prevention & Health, pp.bmjnph-2018.
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Zhou, A., Taylor, A.E., Karhunen, V., Zhan, Y., Rovio, S.P., Lahti, J., Sjögren, P., Byberg, L.,
Lyall, D.M., Auvinen, J. and Lehtimaki, T., 2018. Habitual coffee consumption and cognitive
function. Scientific Reports.
Zhou, C.D., Kuan, A.S., Reeves, G.K., Green, J., Floud, S., Beral, V., Yang, T.O. and Million
Women Study Collaborators, 2018. Coffee and pancreatic cancer risk among never‐smokers in
the UK prospective Million Women Study. International journal of cancer.
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