Grand Cafe Business Plan: Launching a Coffee Bar in Chisinau, Moldova

This document presents a comprehensive business plan for Grand Cafe, a coffee bar located near Moldova State University in Chisinau, Moldova. The plan details the executive summary, company objectives, keys to success, mission statement, and company summary, including ownership and start-up details. It covers market analysis, segmentation, and target market strategies, as well as competitive analysis and buying patterns. The plan outlines marketing goals, competitive advantages, sales strategies, and financial analysis, including breakeven analysis. Grand Cafe aims to provide high-quality coffee and a relaxing atmosphere, targeting university students and local residents while maintaining profitability and customer satisfaction. The plan includes detailed financial projections, start-up requirements, and funding sources, highlighting the company's strategy for success in the competitive coffee market.

Business plan 1
Student’s name:
University:

Business plan 2
Executive summary
The coffee bar is determined to be a daily need for the Local Coffee addicts, for Chisinau,
Republic of Moldova. This coffee bar is known as Grand Cafe. It is a place where one can
escape the daily stress of life and meet friends or relax and read the book, all at one place.
With the rising demand of high quality, coffee and high quality service, The Grand Cafe will
capitalise on the proximity to the Moldova State University Campus to create a group of
repeat clients. Grand Cafe will offer the clients with best prepared coffee in the region that
will be complemented with free books and pastries so that the visitors enjoy their visit.

Business plan 3
Executive summary.............................................................................................................................2
Introduction.........................................................................................................................................4
Objectives.........................................................................................................................................4
The keys to success..........................................................................................................................5
Mission.............................................................................................................................................5
Company Summary.............................................................................................................................5
Company ownership........................................................................................................................5
Start-up summary...........................................................................................................................6
Company location and facilities..........................................................................................................9
Products..........................................................................................................................................10
Sales and marketing......................................................................................................................10
Market Analysis Summary...............................................................................................................11
Market Segmentation....................................................................................................................11
Target Market Segment Strategy.................................................................................................12
Industrial analysis.............................................................................................................................12
Competition....................................................................................................................................12
Buying Pattern...............................................................................................................................13
Strategy and Implementation...........................................................................................................13
Generic strategic formulation.......................................................................................................13
Marketing goals.............................................................................................................................13
Formulating targeting strategies..................................................................................................14
Competitive Edge...........................................................................................................................14
Sales Strategy.................................................................................................................................14
Sales Forecast.....................................................................................................................................15
Tools and equipments....................................................................................................................16
Licensing........................................................................................................................................16
Employees......................................................................................................................................16
Management Team....................................................................................................................16
Financial Analysis..............................................................................................................................17
Breakeven analysis........................................................................................................................17
Conclusion..........................................................................................................................................18
References..........................................................................................................................................19

Business plan 4
Introduction
The business will operate at 2300 square foot coffee bar within a walking distance from the
Moldova State University. This location has been secured by the owner by 3 years of lease
and there is an alternative to extend as well. The needed start-up funds are of €170,000 out of
which €140,000 have already been provided. The balance capital will be taken as a
commercial loan from the local bank.
The cafe is anticipated to enhance the sales revenue from €584,000 in financial year 2018 to
€706,000 in the third year. Since Grand Cafe will strive to hold up a 65% of gross profit
margin and the appropriate operating expenses therefore it is expected to get net profits
expand from €100,000 to €125,000 in the same duration.
Source: own expectations
Objectives
Grand cafes objectives for the initial year of operations are:
- to be selected as the best new coffee bar in the region by the local cafe guide,
- to become profitable from the first month of operations (Ghandour, 2014),
- to uphold 65% of gross margin

Business plan 5
The keys to success
Grand Cafe the keys to success will be:
- the marketing strategies focusing on building a solid base of loyal clients along with
maximization of sales of high margin items like espresso (Cebano et al. 2018),
- training the staff members for ensuring the best coffee preparation methods,
- The store design that will be appealing to the clients and laid down for quick and
efficient operations.
Mission
Grand Cafe will put in the best efforts for creating a unique location where the clients can
socialize with one another in a relaxing environment along with the excellent brewed coffee
or espresso in town (Bridonneau, 2015). The customers will get help in relieving the daily
stress by getting Peace of mind by convenient site, great ambience, friendly customer service
and high quality of drinks. The investment of profits will be there for increasing the employee
satisfaction and generating constant returns for the shareholders.
Company Summary
The Grand Cafe will be a limited liability organisation selling coffee, snacks and other
beverages in the 2300 square feet premium coffee bar situated besides the Moldova State
University in Chisinau. The main investment will be done by XXXX and YYYY who
cumulatively will be owner of 70% of the company. The start-up loss of the organisation is
expected to be €27680.
Company ownership
Grand Cafe is registered as a limited liability Corporation in the state of Chisinau. xxx
possesses 51% of the company with his cousin YYYY and ZZZZ holding minority state in
The Grand Cafe LLC.

Business plan 6
Start-up summary
The start-up expenditures involve:
- Marketing and promotion expenditures for the grand opening of Grand Cafe with the
amount of €3500 and flyer printing for 0.04 €per copy with mm flyers for the entire
amount of €3580.
- The legal expenditure to get licensing and permits along with the accounting services
with the total of €1300.
- The consultant fee of €3000 given to LMN espresso services for assistance in
establishing the company.
- Insurance coverage has the total premium of €2400 with the property casualty
insurance, worker compensation insurance, and general liability.
- The restructuring of the premises will cost to around €10000,
- prepaid rent expenditure for one month is €1.76 per square feet with the total cost of
€4400
- the remaining start-up expenditures involving stationery of €500 and phone bills and
utility services of €2500
The required assets for the start-up will be of €142320 involving:
- start-up inventory amounting to €16027 which means
o the office supplies of €287,
o retail supplies of €1840 including napkin, coffee back, cleaning material etc,
o coffee filters, salads, sandwich, beverages, baked items and tea etc will be of
€7900,
o the main ingredient would be coffee beans with 12 variety of brands and 5
decaffeinated brands costing to €6000
- The equipments for the business will be of €59170 which will involve:

Business plan 7
o coffee grinder of €200,
o coffee maker of €900,
o espresso machinery of €6000,
o food service equipments such as Blender, refrigerator, toasters, microwave,
dishwashers etc. costing to €18000,
o counter area equipments such as sink, ice machine, countertop, etc of €9500,
o storage hardware such as food cases, shelves, utensil rack, and dustbins will be
of €3720.
o The serving area will need flatware, plate, glassware and that would be of
around €3000,
o office equipments involve furniture, phone, pc, file cabinets, fax or printing
machines for €3600
o the store equipments involve signage, security, ventilation, cash register
costing to €13750 and the other miscellaneous expenditure will be of €500.
The finances of the company will be from two key sources that is investment from the owners
and bank loans. The two owners named as XXX and YYY have given a contribution of
€70,000 and €30000 respectively. The remaining investors give a contribution of €40000 so
the total investment made is €140000. the balance of €30000 for covering the expenditures of
start-up and buying assets came from two loans from the bank that is a long run loan of
€20000 that would be for 5 years and loan of €10000 for 1 year. These loans had been
secured by the Procredit Bank. Therefore the entire start-up loss is expected to be of €27 680.
The given chart shows a summary of the junctions and Expectations of the start-up along
with the information details in the tabular format as below:

Business plan 8
START-UP REQUIREMENTS
Start-up Expenses
Legal €1,300
Remodeling €10,000
Insurance €2,400
Other €2,500
Consultants €3,000
Brochures €3,580
Rent €4,400
Stationery etc. €500
TOTAL START-UP EXPENSES €27,680
Start-up Assets
Other Current Assets €0
Start-up Inventory €16,027
Long-term Assets €59,170
Cash Required €67,123
TOTAL ASSETS €142,320
Total Requirements €170,000
START-UP FUNDING

Business plan 9
Start-up Assets to Fund €142,320
Start-up Expenses to Fund €27,680
TOTAL FUNDING REQUIRED €170,000
Assets
Additional Cash Raised €0
Cash Requirements from Start-up €67,123
Cash Balance on Starting Date €67,123
Non-cash Assets from Start-up €75,197
TOTAL ASSETS €142,320
Liabilities and Capital
Liabilities
Accounts Payable (Outstanding Bills) €0
Other Current Liabilities (interest-free) €0
Current Borrowing €10,000
Long-term Liabilities €20,000
TOTAL LIABILITIES €30,000
Capital
Planned Investment
XXXX €70,000
YYYY €30,000
Remaining investors €40,000
Additional Investment Requirement €0
TOTAL PLANNED INVESTMENT €140,000
Loss at Start-up (Start-up Expenses) (€27,680)
TOTAL CAPITAL €112,320
TOTAL CAPITAL AND
LIABILITIES
€142,320
Total Funding €170,000

Business plan 10
Company location and facilities
The Grand Cafe will be situated on the ground floor of the commercial building at Alexei
Mareevici St 60, Chisinau. The company has God the vacant premises of 2500 square feet for
one year only which was earlier occupied by a hair salon. The choice is given in the lease
contract for renewing for the next 3 years with the predetermined rate that will be executed as
per the financial strength of the Grand Cafe. The property is situated in the commercial block
within the walking distance from the university and therefore it connects the area with busy
downtown commercial places. There is necessary water and electricity hook up and a little
restructuring is required for accommodating kitchen, storage space and espresso bar. The
clean and open interior design of the coffee bar will have modern utility his conveying the
quality of soft beverages and items along with the right mix of relaxing space for people
(Miller, 2012). There will be clear window display by which the password by can see the
clients enjoying their drinks and the electric signal will be displayed outside the coffee bar
with the books so that the customers traffic can be gained. 200 square feet will be allocated to
the back office and 2300 square feet will be allocated to the coffee bar find the seating area
will be of 15 tables with two bathrooms, one kitchen and one Storage Area. Seating area will
acquire around 55% of the entire area that is of 1260 square feet. The production area will be
of 600 square feet with the 440 square feet allocated to customer service.
Products
- The best tasting coffee beverages in the area with high quality ingredients with the
strict adherence to preparation guidelines (Coulton, 2011).
- Brewed coffee, espresso drinks with a few refreshments and beverages
- Pastries, small salads and sandwiches can also be offered.
- Coffee beans sold for the gourmet customers who want to prepare coffee at home
- Free books and magazines which can be read inside the coffee bar.

Business plan 11
Sales and marketing
2000 flyers distributed in the neighbourhood, campus of the university, commercial area,
malls, and chosen office buildings. On this will be done two weeks before the starting of the
Grand Cafe. After this the free postcards with the endorsement of the Grand Cafe will be
printed for increasing the visibility of the cafe among the users.
Market Analysis Summary
There are around 50,000 individuals who reside in Chisinau area and 10% of them usually
come to the Moldova State University. The forecast has been made by the past tourism and
therefore we are targeting 200 visitors daily.
Market Segmentation
The Grand Cafe will focus its marketing practic3s on reaching the university faculty and
students, people working in the commercial buildings near the cafe and the segment of
teenagers. The market research shows that these customer groups are who are expected to
purchase gourmet coffee items. The consumers of gourmet coffee are global and in all
income groups depending on education levels, so the nearness to the campus will give access
to targeted clients.
The chart underneath displays total potential of market (in terms of clients) of gourmet coffee
drinkers in the chosen area:

Business plan 12