Gregarious Cafe: Business Plan, Strategy & Market Development, UK

This report presents a comprehensive business plan for Gregarious Cafe, an organic cafeteria in London, UK, targeting health-conscious consumers. The plan outlines the market entry strategy, leveraging a licensing approach for minimal initial investment and high returns. It includes a SWOT analysis, identifying strengths in high-profit margins for organic products and weaknesses in high initial investment costs. A PESTLE analysis examines political, economic, social, technological, legal, and environmental factors impacting the business. The STP analysis focuses on demographic segmentation, targeting middle and high-income groups with a focused marketing strategy. The business model canvas highlights key partners, activities, resources, value propositions, customer relationships, channels, customer segments, cost structure, and revenue streams. The marketing strategy employs the 7Ps, emphasizing vegan and vegetarian options for health-conscious customers. The financial plan ensures the cafe's sustainability and growth in the competitive London market. This business plan aims to provide a roadmap for Gregarious Cafe's success in the UK organic food market.

Entrepreneurship and Business
Development

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Introducing business idea and market entry strategies..............................................................3
Presenting the rationale for launching the business....................................................................4
Determining the micro and macro factors present in the business environment........................4
Business canvas model................................................................................................................7
Marketing strategy and Market growth strategy.........................................................................8
Value chain..................................................................................................................................9
Competitive analysis of Gregarious Cafe.................................................................................11
Financial plan............................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Business plan refer to a written document which provide all the information related to the
business objective, activities which used to obtain in the future aims & goals in effective manner.
This process enables a marketer to reach at expected results and generate web traffic excellently.
The current presentation will be based on Gregarious cafe, which will fall under the category of
leading best service in the London, United Kingdom. This can be an organic cafeteria which has
all the food related to obsessed people, diabetic patients and for those who are health conscious.
The study will define market entry strategy of a company, application of Pestle analysis, STP
analysis, SWOT analysis and justify effective market research through competitive analysis with
other cafes. Furthermore, it will explain the approaches of value chain. Lastly, Business model
canvas will represent the firm values, position and infrastructure, finances and Customers.
MAIN BODY
Introducing business idea and market entry strategies.
Product or service: The idea will be opening of a Gregarious cafe which will offer a variety of
food items such as vegan breakfast, organic porridge, scrambled egg toast, spinach sandwiches
etc. and drinks items such as orange, pear, aloe Vera apple juices to a large number of people
living in and around UK.
Target market: The targeted segmented would be upper and middle class income groups.
Special attributes: Major focus will be providing those food items which are organic and are
healthy as well as less harmful for the customers.
Values: By providing premium quality organic products and respecting all the opinions given by
the customer.
Location: The firm will be located in UK and will aim to expand globally through various online
mediums.
Involvement: It will include the workers, owners, suppliers, distributors etc.
Marketing strategies: There are various types of marketing strategies which can be used to start
up any business and the one adopted for this cafe would be the licensing strategy which would
allow to use the property in the target country (Ristevska-Jovanovska, 2018). Also, this strategy
requires little investment initially but it provides high rate of return to the future. Licensing will

help to reach new markets with minimum risks and without any trade restrictions as the licensee
is usually 100% locally owned.
Presenting the rationale for launching the business
In the current era of increasing health awareness among the UK people, this cafe is
opened to provide range of organic product items for obese, diabetic and other health related
problems people. With the current lifestyle among UK people the obesity is believed to be risen
to 30% by the end of year 2030. To avoid such cases this cafe will provide the best customer
experience by providing all its product items that are healthy and are not easily available in the
UK market through its competitors. Further, all the products will be free from toxic chemicals
and so it will not affect the human health in any form which will help in creating the awareness
and also attract new customers which are necessary for the growth of the firm. Moreover, the
organic food products provided will be better in taste than those who contains artificial flavors.
Determining the micro and macro factors present in the business environment
The micro analysis of the market will be done on the basis of SWOT which identifies the
strength, weakness and opportunities which are internal to any organization and will also identify
external factors will affect the organization. Some of them for the gregarious cafe is been
presented as follows.
SWOT analysis
Strength
 For the organic products in the market
high margins of profits can be achieved
(Vlados and Chatzinikolaou, 2019)
 The amount of risk is very low as
compared to other market options.
 Environment friendly products can
cause less pollution to environment.
Weakness
 There is limited flexibility in pricing
and as a result prices of the product
cannot be changed easily.
 Cost of investment is very high in
initial stages.
 High inventory costs are involved in
purchasing the raw materials and this
can increase the production costs.
 Opportunities
 New stores will be opened in nearby
Threats
 Changes in the government regulations

areas of the UK to enhance the
customer base.
 Markets can be expanded globally
through various online platforms like
developing the websites where goods
can be delivered easily at the homes
(McKenzie, 2017).
 In different markets prices of the
products can be changed easily
according to that country policies.
and laws can impact the working of the
organization.
 Duplication of the products is possible
when there is high competition in the
market.
 Organic food market is less popular
than other markets as a result people
will not fully support the use of organic
products.
PESTLE analysis
Political factors
Various factors such as government rules, regulations, trade restrictions, tax policies etc
affect the business activities of any firm. In case of quoted firm these factors can be of great
value when government makes changes in various agriculture policies to encourage the produce
of organic food crops (Casañ, Alier and Llorens, 2021). Moreover, if tax rate becomes higher
than the goods will be sold at higher rates which will create the negative impact on the firm.
Further if there are trade restrictions than the firm cannot trade freely and there will be fewer
chances of the firm to spread its business in other regions.
Economic factors
Factors such as unemployment rate, inflation, economic recession etc can affect the
operations of the new start up business. If the labor cost is increased than all firms have to
comply these rules and change the wage rates which will increase the final product cost and this
will have negative impact on the growth of the business. Moreover, economic stability in the
country can proved positive for the quoted firm as it will help in increasing the sales of the
product.
Social factors
The eating habits of people have been changed over the period of years as they are more
focused on consuming healthier products. They look for those products in the market which are

better for the health (Social factors affecting the business-PESTLE Analysis, 2015). Other factors
such as trends, attitudes, ethics etc also affect the buying habits of the consumers for example
increasing obesity problems in UK people will make them use those products which are good for
health. Therefore, such factors will have a positive impact on the quoted firm as it is producing
only those goods which have less calorie and are high in nutrients.
Technological factors
Changes in technology will involve the use of less labor and produce goods on larger
scale (Kozubikova and Kotaskova, 2019). In today era this factor may have the positive impact
as the firm can introduce its own websites to sell the goods online to a larger number of
consumers living outside and in nearby UK areas.
Legal factors
Factors such as company laws, environment laws, employment laws etc have to be
complied fully by the firms so that no problems can be occurred in the future and work can be
performed smoothly. It may create negative impact on the firm if laws are more of complex
nature and various formalities have to be fulfilled.
Environmental factors
While producing goods the firm needs to ensure that it does minimum harm to
environment and resources are not being misused. These practices may have positive impact on
the firm as less noise, land, air pollution will not only improve the environment but will also
create a positive image of the firm on the consumers and increases the customer loyalty.
STP analysis
It is the three step model that examines the segment, targeting, positioning of the product
and communicates its benefits to various customer segments.
Segmentation:
Segmenting the market is very essential to target the right masses of people and for this
purpose the quoted firm will use demographic segmentation which includes division on various
basis such as:
 On the basis of age, it would be around 18-40 years.
 Gregarious cafe would focus on both genders male and female.
 Firm will be targeting working individuals, students, professionals etc.
 Will focus mainly middle and high income groups.

Targeting
The one which will be adopted by the Gregarious cafe would be focused marketing
strategy as company may target just one segment with the single marketing mix (Hult and
Ketchen, 2017). This is suitable for a company because it is a startup company with the limited
resources. Also, this strategy is not suitable for large organizations as they cater to the large
number of audience.
Positioning
The firm will expand the market using various products which are different from its
competitors and increase its sales in future through continuous innovation and creativity like
introducing more varieties of healthy organic products that does not exist in the market (Lopatin
and et.al., 2019). It will also use various sales and promotion activities to establish the image of
product in the market.
Business canvas model
This the model which is in the form of template to identify the firm values and can also
be revised also during the period of time (Ojasalo and Ojasalo, 2018).
Key partners
 Distributo
rs
 Suppliers
Key activities
 Selling
variety of
organic
food
products
Value
propositions
 High
quality of
healthy
foods
items
Customer
relationships
 Dedicated
assistance
Customer
segments
 Mass
markets
Key resources
 Raw
materials
 Human
resources
 Machines
and
equipment
’s
Channels
 Online
methods
 Nearby
outlets of
UK

Cost structure
 Fixed cost : rent, salaries,
taxes
Revenue streams
 Food selling
 Media products and services
Marketing strategy and Market growth strategy
The market strategy for the chosen cafe is determined through 7ps of marketing mix such
as product, price, place, people promotion, packaging and positioning. It helps company to
defining the key issues that directly or indirectly affect the product.
Product- Gregarious cafe will offer a wide number of food and drink options. The main
categories of this cafe will be cakes, breakfast, pastries, lunch, filter coffee & teas, fresh fruits
and cold brew. All the products will be vegan and vegetarian food which can be perfect for
diabetic people, health conscious people, obsessed people and for those who used to take organic
food items. This reflects that company deals with the efficient and effective products.
Price- The company follow the price skimming strategy because sometimes it needs to
lower down the prices due to change in competition and market conditions (Kurnianto and
Ramdhani, 2019). Cited firm will follow this pricing strategy to charge the best possible amount
for the particular products from its customers.
Place or distribution- This company will be established in the London, UK. The
location of the Cafe will be in a busy and market area where people go for shopping. This place
can be access easily to the public with ample parking space (Fichter and Tiemann, 2020). It will
also partner with online food delivering services such as Uber eats, just eats etc. in the cities of
UK.
Promotion- Gregarious cafe will promote their cafe by advertising through social media,
because nowadays social media is one of the best possible to reach the people in a very less time.
It can be provided the discounts and offer services on weekends and combo of sandwiches and
coffee to attract the customers.
People- The key people of the company are CEO, board of director, Suppliers, Buyers,
employees and customers.
Physical evidence: The various elements of physical evidence for the company are logo,
brand, store furniture, brochures, uniforms and employee dress code and the customers.

Process: The process of keeping the customers happy by speedy billing services and easy
acquirement of product in its cafe. Firm will achieve this by employing competent staff and
paying attention to customer grievances and addressing issues.
Value chain
Value chain based on the primary and secondary activities of business. Primary activities
are directly related to the goods and services. The secondary activities are included with
enhancing the efficiency of the product to obtain strong competitive advantages surrounded by
peers.
Primary Activities of Cafe-
Inbound Logistics- The company appointed finest quality of raw material such as coffee
beans, bread, Fruits and vegetable etc. Coffee beans will have imported from directly from the
producers in Africa, America, Asia and Latin (Kano, 2018). In case of beans that will be
procured from the buyers of other cafes. Then, all the raw material will send to the logistic
company, so they can easily export the product.
Operations- Operation is the important process of the company to converting raw
material into finished goods. To add value in the product it changes input into output. Such as
coffee beans converted into Coffee as a drink (De Bruin and et.al., 2020). Bread and vegetable
will change into sandwiches.
Outbound Logistics- The storage and distribution of the company is to retail locations,
that are important because there is no presence of intercessor in product selling for this cafe.
Also, this type of products is mostly sold in the stores and cafes.

Marketing and sales- Gregarious cafe will invest more in the superior quality of the
products and also provides the high level of the customer services as compared to aggressive
marketing. Moreover, at the time of launching the company will also provide free sampling
nearby stores to attract customers.
Services- Business aims to build the customer loyalty through in-store services. The
signature retail objective of the company is to provide the unique and best experiences of the
organic food items. The service training plays a vital role in the value chain that makes it
offering unique.
Secondary activities of value chain
Infrastructure- This includes departments like, finance, management, legal, etc., which
will require to keep company’s stores operational (Milios and et.al., 2018). It can be assigned
store managers on-site that help to oversee the pleasing stores and well-designed praised with
good customer service provided by the dedicated team of employees.
Procurement- It is the possession of resources and inputs, for the firm. This includes
how a company obtains raw materials, thus, it includes finding and negotiating prices with
suppliers and vendors. This relates heavily to the inbound logistics primary activity, where an e-
commerce company would look to procure materials or goods for resale.
Human resources management: This includes all the activities such as recruiting,
hiring, developing, training and hiring of the employee who is able to fit perfect according to the
terms and condition of the cafes.
Technology: Company will adopt this technology which are directly or indirectly used in
the cafe. Such as, computer system for billing and managing the accounts, automatic Coffee
machine, Microwave etc.
Risk mitigation
While starting a new cafe the company have to face some risks which are as follows-
Financial constraints- At the time of start-up the company have to attain the problem of
the insufficient cash flow because there are very fewer investors who are going to invest in the
start-up. To overcome this risk cited firm will grant loan from various financial institutions.
Language barriers- It has identified that language barrier will be one of the most
common problem in UK (Putra and et.al., 2019). Especially in London there are various
language spoken in different accent, so it will be hard to communicate with customer. To

mitigate this problem organization will hire those employees who are comfortable in various
languages and used to communicate with various accent.
Lack of Resources– The start-up can be faced the risk in terms of financial resources,
human resources etc. and insufficient resources. This will be overcome by knowing about the
availability of team, avoid the unrealistic schedules.
Cyber security- All the information related to business are stored in installed systems,
hackers will be going to take advantages of loopholes within the systems. In order to overcome
this problem company, need to install some security and private networks like VPN (virtual
private network).
Competitive analysis of Gregarious Cafe
Basis Gregarious cafe Vantra Vegan Plant hub organic
Product Organic Product offers by
this cafe are spinach
sandwiches, wide range of
drinks, Glutton free dishes
and also provide food for
diabetic patients, and
obsessed people.
Vantra Vegan products
are Spicy kimchi, seaweed
noodles, basil soya lassi,
exotic power smoothies,
fresh juices etc.
This cafe offers glutton
and vegan free pizza and
pasta, vegan cuisine,
garlic bread etc.
Price The firm will use price
skimming strategy.
Price penetration strategy
followed by this cafe.
This is also used price
penetration strategy.
USP The highest quality. Lower prices The first ever.
Promotion Promotional strategies
followed by Gregarious
cafe food are social media,
hoarding etc.
Advertisement through
offering coupons, create
pamphlets.
Promote via sending gifts
to customers.
Financial plan

Particula
rs
Janua
ry
Febru
ary
Marc
h
April May June July Aug
ust
Septe
mber
Octo
ber
Nove
mber
Dece
mber
Cash
inflows
Opening
cash
inflow
10000 12000 67508 10972
8.48
186789 64892
6
70146
8.413
6
759
430.
461
8
81074
4.661
9
6849
56
69030
8.996
7397
49
Sales
revenue
10000 10500 56000 56900 58038 68493 74995 673
05
13246 1351
1
13781 1405
7
Other
income
3000 3000 3000 3000 3000 3000 3000 300
0
3000 3000 3000 3000
Total
cash
inflows
23000 25500 12650
8
16962
8.48
247827 72041
9
77946
3.413
6
829
735.
461
8
82699
0.661
9
7014
66.92
70709
0.134
4
7568
05.76
12
Cash
outflows
Material 2500 1575 8400 8535 8705.7 10273
.95
11249
.25
100
95.7
5
1986.
9
2026.
638
2067.
17076
2108.
5141
75
Labour 2000 2000 2000 2000 2000 2000 2000 200
0
2000 2000 2000 2000
Other
expenses
2200 2288 2380 2475 2574 2677 2783.
70184
1
289
5
3011 3131 3257 3387
Administr
ation
4000 4000 4000 4000 4000 4000 4000 400
0
4000 4000 4000 4000