Business Plan Report for Marshmallow in Beans Cafeteria, London, UK

This report presents a comprehensive business plan for 'Marshmallow in Beans,' a cafeteria planned for the University of London. It begins with an overview and then delves into crucial aspects such as a SWOT analysis, PEST analysis, and the STP model to understand the market and target customers. The report details the 4Ps of the marketing mix, analyzes competitors using Porter's Five Forces, and provides financial information including cash flow projections. It concludes with a summary of key findings and strategic recommendations for the cafeteria's success, supported by relevant references. The plan focuses on providing healthy fast food options to attract students and staff, while addressing potential threats and leveraging opportunities within the competitive hospitality industry.

Business plan for a cafeteria

Table of Contents
 INTRODUCTION
 Business Plan Overview
 SWOT Analysis
 PEST Analysis
 STP Model
 4ps
 Competitors analysis
 Financial information
 Controlling and monitoring
 CONCLUSION
 REFERENCES

INTRODUCTION
Business is a ongoing legal entity which create
their own value through specific idea and
innovation. To create a good brand image, every
business need a appropriate and working idea
which helps to maintain the goodwill of the
business. Business consider all the continuous
activities like manufacturing, production ,
development, promoting an delivering activities.
The main purpose of this report to prepare a
business plan so that company can easily optimise
their target value. For this report, a business plan
prepare related to the hospitality industry.

Business is a continuous process and with the help of specific and creative idea
any one can establish a good business. Business can be open in many ways like
public, private, non profit organisation. This report mainly deals with the private
business that is a new start ups which will plan to open by 2 partners so this
business plan comes under partnership firm. In partnership business, both owners
are responsible for the growth and decline of the business and both will divide
profit and responsibilities in a equal manner. The name of new business plan is “
Marshmallow in Beans” cafeteria which will plan to open in university of
London.
Business Plan Overview

SWOT Analysis
Strengths Weakness
 Cafe will provide healthy food which helpful
in boos the immune system of people.
 Cafe will provide excellent services to their
customers.
 Cafe will serve organic products in form of
fast food.
 New in market so it will difficult to establish
brand image.
 Lack of resources.
Opportunities Threats
 Cafe will attract large number of people to
their low price products.
 Cafe will provide high quality products in
pocket friendly cost .
 Cafe will expand branches on other areas.
 Competition level will be the big threat for
cafe.

PEST Analysis
To analyse the influence of external factors its important to conduct the external macro
factor analysis with the help of PEST analysis. The description of this analysis as per
Marshmallow in Beans cafeteria are given below-
 Political Factors -In this factors, all the taxes, trade regulations and trade policies
affect the business. Marshmallow in Beans cafeteria is a new business plan so that its
mandatory to analyse the impact of political factors on new business. Mainly political
factors affect the new business because of some changes in country situations because
of Brexit and Covid.
 Economical Factors – These factors consider the economic growth and some changes
in country economic policies. Marshmallow in Beans cafeteria need to focus on each
and every movements of economy like recessions and changes in price regulation.

STP Model
This model is essential for the target market. The discussion of this model as per the
Marshmallow in Bean cafeteria are discussed below-
 Segmentation – This is consider as a first step of this model, in this step
Marshmallow in Beans cafeteria need to divide the market in to many groups
so that cafe easily consider all the customers which comes under specific
groups and criteria. Cafe divide all the categories of people as per their
requirements and segment the market.
 Targeting- In second step of this model. Marshmallow in Beans cafeteria need
to focus on their target customers which segmented in various groups. Cafe
mainly target younger people whom like fast food and also distribute their
market as per the people age. Cafe target young students and staff members
who basically belong to the middle age groups.

4psMarketing mix is a tool which comprises of various roles and objectives that are needed in order
to set a new product in the market when the organisation tries to develops new product there is a
need of certain elements which are kept in record before entering in a new business. As a new
business plan is opening a cafeteria named Marshmallow in beans cafe in London university
that the marketing mix for that is mentioned below:
 Product- As there are usually a crowd of youngsters so the staff and their team has decided to
make some product which will attract their age group and also helps them to give some healthy
food so the Marshmallow in beans coming up with innovative idea of providing healthy fast
food which is made with all organic material. This will seek the interest of the youth and at the
same time will not affect their health like normal junk.
 Price- Team is being trying to keep their prices at average so that will not affect the customers
pocket and makes them to shift towards their cafe as it will cover students and youths and
usually customers attracts to the prices with low cost and more varieties.

Competitors analysis
To analyse the competition level and how to take competitive advantage so its mandatory for Marshmallow in Beans
cafeteria to apply Porter's Five Force model. The explanation of this model are given below-
Threat of new entry – The force of new entries are very high for Marshmallow in Beans cafeteria because there is
high competition in hospitality industry so cafe will face the threat of new entries and new business also.
Bargaining Power of Buyer - The bargaining power of buyers force will be high for the Marshmallow in Beans
cafeteria because buyer have a choice to purchase cafe organic fast food products or switch to other brand products.
Marshmallow in Beans cafeteria will attract their customers with high quality organic food and charge low price.
Bargaining Power of Supplier - Marshmallow in Beans cafeteria will face the low bargain power of their suppliers
because there are many suppliers available in the market so cafe have a choice to switch their supplier and purchase
those from those suppliers who will provide good quality with lower price.

Financial information
Particulars January February March April May June
Sales 3500 4600 4700 5200 6200 6500
Other income 1500 2500 2600 2650 2000 2200
Total inflows 5000 7100 7300 7850 8200 8700
Cash Outflows
Variable cost:
Materials 450 500 530 650 740 830
labour 490 540 580 750 820 940
Other variable cost 200 250 260 340 420 520
Fixed cost:
Rent 1000 1000 1000 1000 1000 1000
Salaries 800 800 800 800 800 800
Other fixed cost 200 250 250 360 320 320
Net cash flow 1860 3760 3880 3950 4100 4290
Cash flow considers as net amount of cash equivalents and cash which is transfer inside or
outside of company operations. It is prepare by a company in order to identify their financial
position in market place. Every organisation estimate and try to enhance their profit as
compare to their part year profit. Cash flow statement of Marshmallow in Beans cafeteria is
given below:-

CONCLUSION
As per this report it can be said that for the success of business it’s important to
make a effective business plan. This report deals with the new start up and also identified
some strategies so that company easily build their market. This report discussed about the
strengths and weakness of the new business and analysed the macro external environmental
factors through PEST analysis. This report also discussed about the Porters five force model
so that company understand how to take competitive advantage at marketplace

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