Hospitality Provision: Development of a XYZ Coffee Shop Business Plan

This report presents a business plan for a proposed XYZ coffee shop, focusing on its rationale, target market, and operational requirements. The plan identifies the young generation as the primary target market, driven by the increasing demand for coffee. It outlines the financial aspects, including funding from investors and bank loans, and details the product and service offerings. The operational requirements section covers recruitment and selection policies, emphasizing communication and interpersonal skills. Furthermore, it analyzes pricing strategies, advocating for penetration pricing to attract customers and increase market share. The report also highlights the importance of cultural diversity in staffing to improve customer relations. The conclusion emphasizes the significance of market research, pricing policies, and promotional activities for gaining a competitive advantage in the hospitality sector. The report includes references to relevant literature.

Hospitality Provision in Travel & Tourism Sector

TOC
 Introduction
 Rationale for a selected project clearly justifying decisions linked to target
Market
 development of plan for hospitality business including operational
requirements of the business
 Conclusion
 References

Introduction
 the present study also contain various steps to develop a plan that includes
operational requirement of the business organisation.
 It will explain its operational activities

3.1 Rationale for a selected project clearly justifying
decisions linked to target Market
 The idea of opening of a XYZ coffee shop is to increase sales and demand among young
generation as teens nowadays are more addicted to coffee to escape from the stress of life.
One of the major reason of opening coffee shop is that demand of this product is very high,
companies such as Starbucks is rising its ales day by day. Thus, if the firm enter into this
market then it would be better for business to get high revenues. Furthermore, it requires less
investment as compare to any other business thus, it is viable business idea.
 In addition to this the aim of XYZ coffee shop is to provide comfortable environment where customer can
receive quality food & beverage and entertainment in bundle at reasonable price . The coffee shop aims to
provide variety of coffee and non alcoholic drinks. Along with this objective of the coffee shop is to satisfy the
customer by offering quality.

Target Market
 Here the target customer will be students, as college going or high class students
like to spend time with friends and they prefer to go to any coffee shop. As it is
affordable for them and they can spend quality time with them.
 Thus, by targeting this group of people company can raise its sales to great extent.
The customer will live around 3 miles of the XYZ coffee shop .the education level of the
customer will be graduate or post graduate . The majority of the customer will be those who
loves to enjoy a relaxing atmosphere and games.

Cont..
 Funding: Apart from that, XYZ coffee shop needed £80000 that is funded by
3 members, in which owner is contributing £20000 and rest money will be
arranged by investors. Furthermore, bank loan will be taken so that long term
development need of company can be fulfilled (Leung, Xueand Bai, 2015).
 Product& service: It will offer all types of coffee products to consumers and
will provide them home delivery option as well.

3.2 development of plan for hospitality business including operational
requirements of the business
 XYZ coffee shop aims to establish in the market successfully by
offering high quality products to consumers.
 It will design is interior and exterior in such manner so that it gains
attention of buyers. there will be adequate parking space, proper
space between all consumers, facility for disable person etc.
Furthermore, music will be played all the time so that consumers feel
so great.
 As students are the major target market but it will provide coffee
products for old age people and other consumers as well. Professional
meeting can be held in the place that will help in attracting more
people towards the location.

Operational requirement to operate XYZ coffee shop includes
 Recruitment and selection policy – It is the process of differentiating
between applicants in order to identify those with the greater likelihood of
success in the job .
 The role of selection is important for two reason first is hiring best candidate
and second is fulfilling the vacancy so XYZ should hire candidate having
good personality .communication skill and influential skill so that staff
person can influence customer and make good coordination with customer.

Pricing policy-
 For XYZ co. Penetration pricing will be best which is the pricing strategy of
the company where companies sets low price for the product or services . This
pricing strategy will help XYZ coffee shop to attract new customer based on
low cost and will increase the market share of the coffee shop that will result
in increasing profit of XYZ.
 Thus penetration pricing is suitable for increasing demand for new product
which will discourage competitor to enter into new market . It is also an
appropriate strategy to become the market standard but before the
implementation of penetration pricing XYZ should be sure that it has
sufficient production and distribution at its place to meet the demand.
 On the other hand it can choose competitors parity pricing which is the policy
of the company to set price of the product equal to competitor.

Cont..
 Cultural diversity and conflict- XYZ should recruit employees who comes
from different region, that would help in understanding the behaviour of
customer with different culture which will help them in making a good
rapport with the guests and will reduce the language and culture related
barrier.
 Sometimes it is very difficult to understand the need of customer it may be
due to language barrier, so hiring of employees from different region is must.

CONCLUSION
 it can be concluded that for opening any new restaurant market research and
target customer should be pre planned .
 Also the new company or restaurant pricing policy and promotional activities
should be analysed to gain competitive advantage.

References
Law, R., Leung, R., Lo, A., Leung, D. and Fong, L.H.N., 2015. Distribution
channel in hospitality and tourism: revisiting disintermediation from the
perspectives of hotels and travel agencies. International Journal of Contemporary
Hospitality Management. 27(3). pp.431-452.
Bartlett, K. R., Johnson, K. R. and Schneider, I.E., 2016. Comparing strategic
human resource development approaches for tourism and hospitality workforce
planning. Journal of Human Resources in Hospitality & Tourism. 15(4). pp.440-
461.