Hospitality Business Plan: Cafe Mocha House Start-up in Melbourne

This comprehensive business plan details the launch of "Café Mocha House," a coffee shop in Melbourne, Australia. It outlines the business's structure, management team, and the diverse range of products and services, including specialty coffee drinks and food items. The plan includes a thorough market analysis, identifying target customers and key competitors, alongside a SWOT analysis. Furthermore, it sets forth the company's vision, mission, and strategic goals, focusing on sales growth and profitability. The document provides detailed financial projections, including start-up costs, balance sheet forecasts, profit and loss statements, cash flow analysis, and a break-even analysis. It also addresses operational considerations, sustainability plans, risk management, and legal compliance. The report concludes with answers to specific project-related questions, providing a holistic view of the business's potential and strategic direction.

Running head: HOSPITALITY
Café Mocha House
Name of the Student
Name of the University
Main Business Address: 4b/Lorimer St Shop No: 10
ABN: 60004685604
ACN: 008456123

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Table of Contents
Business Plan Summary.............................................................................................................4
The Business..........................................................................................................................4
The Future..............................................................................................................................5
The Finances..........................................................................................................................6
The Business:.............................................................................................................................6
Products and Services:...........................................................................................................6
Registration Details:...............................................................................................................7
Business Premises..................................................................................................................8
Organizational Chart..............................................................................................................9
Management and Ownership..................................................................................................9
Key Personnel......................................................................................................................10
Product/ Services..................................................................................................................12
Innovation............................................................................................................................13
Insurance..............................................................................................................................13
Risk Management.................................................................................................................14
Legal Considerations............................................................................................................15
Operations............................................................................................................................15
Sustainability Plan................................................................................................................16
The Market...........................................................................................................................17
The Market...............................................................................................................................17
Market Research:.................................................................................................................17
Market Targets:....................................................................................................................18
Environmental/Industry Analysis:.......................................................................................19
Your Customers:..................................................................................................................20
S.W.O.T Analysis:...............................................................................................................23
Your Competitors:................................................................................................................25
Advertisement and Sales:.....................................................................................................28
Sales and Marketing Objectives:..........................................................................................29
The Future................................................................................................................................31
Vision statement...................................................................................................................31
Mission statement.................................................................................................................31
Goals/objectives...................................................................................................................32
Action plan...........................................................................................................................33
The Finances............................................................................................................................34
Key Objectives & Financial Review....................................................................................34
Financial Objectives:............................................................................................................34

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Finance Required:................................................................................................................35
Assumptions:........................................................................................................................35
Start Up Costs:.....................................................................................................................35
Balance Sheet Forecast:.......................................................................................................36
Profit and Loss forecast:.......................................................................................................37
Expected Cash Flow:............................................................................................................39
Break-Even Analysis:...............................................................................................................40
Project 1:..................................................................................................................................42
Answer to Question 1:..........................................................................................................42
Answer to Question 2:..........................................................................................................42
Answer to Question 3:..........................................................................................................43
Answer to Question 4:..........................................................................................................44
Answer to Question 5:..........................................................................................................45
Answer to Question 6:..........................................................................................................45
Answer to Question 7:..........................................................................................................46
Answer to Question 8:..........................................................................................................46
Answer to Question 9:..........................................................................................................47
Answer to Question 10:........................................................................................................47
References:...............................................................................................................................49

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Business Plan Summary
The Business
The business relates to the start-up of a small coffee shop named “Café Mocha
House”. The ABN and ACN of the business are 60 004 685 604 and 008 456 123
respectively. The proposed business will be situated in Melbourne near Port Phillip area. The
trading of the business will commence from FY 2019 (1st July 2019). The list of the business
owners for the coffee store is listed below as follows:
 CEO and Non-Executive Director- Noah Smith
 Regional Manager- Jack Waugh
 Financial Manager- Thomas Waugh
 Marketing and Administration Manager- Jackson Gillespie
 Quality Control Professionals Regional Head- Williams Devin
The relevant experience of the owners is stated as follows:
1. Noah Smith (BEng, FIEA, FAICD, 53)- Mr. Noah has an extensive experience of
the global strategic approach of doing business. Noah was Managing Director and
Chief Executive Officer of a Burger Chain from 2005 until 2015. During the career of
23 years Noah had gained a significant experience of the retail business segments
across all regions of Australia.
2. Jack Waugh (BSc (Geology), PhD (Chemistry), 60)- Mr. Jack is having more than
30 years of experience in a restaurant business in Australia.
3. Jackson Gillespie (MBA, BE, FAICD, 65)- Mr. Jackson has an wide-ranging
experience of creating synergies in industrial and mining companies for more than 12
years.

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4. Williams Devin (CBE, MA, 64)- Mr. Thomas is having an extensive experience in
the fields of energy, governance and sustainability. The overall experience is
considered as 34 years.
The products and services offered by “Café Mocha House” are listed as follows:
Drinks Menu
The coffee store will offer Brewed Coffees with the use of full range of selection of
Whole Beans. The espresso drinks will be considered in terms of large variety of the espresso
drinks like Standard Espresso, Macchiato, Cortado, Cappuccino, Au Lait, Latte, and Mocha
espresso. Café Mocha House will also offer variety of Cold Brewed Iced Coffee. However,
the speciality items will include one of a kind Café Mocha served with whipped cream and
hot chocolate.
Food Services
In the breakfast services some of the main products will be seen to be included as
items such as Bagels, Muffins, Croissants, Scones, Coffee Cake and Egg Sandwiches. The
lunch items of the coffee store will be further seen as Turkey Gobbler Sandwich, Chicken
Club Sandwich and Tofu Salads. Café Mocha House will also offer large range of desserts
which are depicted as Cookies, Coconut Macaroons, Gluten Free options, Brownie bars,
cakes and pies from local bakeries.
The Future
Vision Statement
Café Mocha House will provide high quality and accessible coffee and food products
with an augmented focus towards college students and working professionals. The coffee
shop establishment is also aimed at offering high quality evening experience with ample patio

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space for the residents of Melbourne. Some of the other factors of the business is aimed at
driving development of the business as per featuring affordable and cosy ambience of coffee
which will be able to focus on long term retunes for the business.
Goals/Objective
The important objectives of the business need to be considered as per following
points:
 Increasing the sales of the of the company by more than 1.5 million during the first
FY
 Reaching the monthly sales target of more than $ 300000 by the completion of the
initial four months of the operations
 The cultivation on the target and net profit of the business needs to be seen with an
increment of 14% (Johnston 2017).
The Finances
The start-up expense will account for the various types of the finance required for the
business. These are depicted in terms of Legal, stationery, consultants, insurance, brochures
and equipment expenses. The depiction of the overall start-up funds for the business will be
seen with $ 200000. Some of the other sources of the money will be considered with the
planning of the long-term bank loan.
The Business:
Products and Services:
The products and services offered by “Café Mocha House” are listed as follows:
Drinks Menu

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The coffee store will offer Brewed Coffees with the use of full range of selection of
Whole Beans. The espresso drinks will be considered in terms of large variety of the espresso
drinks like Standard Espresso, Macchiato, Cortado, Cappuccino, Au Lait, Latte, and Mocha
espresso. Café Mocha House will also offer variety of Cold Brewed Iced Coffee. However,
the speciality items will include one of a kind Café Mocha served with whipped cream and
hot chocolate.
Food Services
In the breakfast services some of the main products will be seen to be included as
items such as Bagels, Muffins, Croissants, Scones, Coffee Cake and Egg Sandwiches. The
lunch items of the coffee store will be further seen as Turkey Gobbler Sandwich, Chicken
Club Sandwich and Tofu Salads. Café Mocha House will also offer large range of desserts
which are depicted as Cookies, Coconut Macaroons, Gluten Free options, Brownie bars,
cakes and pies from local bakeries.
Registration Details:
Business Details
Business Name: Café Mocha House
Date Registered: 1st July, 2019
Location Registered: Melbourne, Australia
Business Structure: Sole Trader
ABN: 60004685604
ACN: 008456123

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GST: Café Mocha House is registered under the Good and Services Tax and the registration
date is 1st November 2018.
Domains Name: www.cafemocha.com
Licenses and Permits: The owner of Café Mocha House needs a Food Business License from
the local council for operating in the food service industry. For serving the meet related
products to the customers, the management of Café Mocha House needs to fill in an
Application for Accreditation from Safe Food Production Queensland. In addition, the café is
needed to comply with certain legislations; they are Food Safety Act 2006, Food Production
(Safety) Act 2000, Fire and Rescue Service Act 1990, Food Act 2006, Local Government Act
2009, Retail Shop Leases Act 1994, Sale of Goods Act 1896, Vocational Education, Training
and Employment Act 2000, Water Supply (Safety And Reliability) Act 2008 and Work
Health and Safety Act 2011 (ablisfiles.business.gov.au 2018).
Business Premises
The new coffee shop will be located in the area of Port Philippe, Melbourne,
Australia. This is an excellent location for a coffee shop with an easy five minutes driving
distance. The presence of many schools, colleagues and offices can be seen in this area that
will help the café with the opportunity to attract every kind of customers. The aim of the
management of the new café will be to make the sitting arrangement for 50 people and thus,
the size of the coffee shop will be 1750 to 1800 square feet.
The owner of the new coffee shop will hire the shop in the Port Philippe area for rent
on the basis of the agreements for three years. As per the agreement, the rent will be $2500
per month.

Chief Executive Officer
(Owner)
Regional Manager Financial Manager
Marketing and
Administration
manager
Quality Control
Professional
Regional Head
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Organizational Chart
Figure 1: Organizational Chart
(Source: As Created by Author)
Management and Ownership
The names of the owners and the management members along with their experience
and qualifications are shown below:
 CEO and Non-Executive Director- Noah Smith (Owner)
 Regional Manager- Jack Waugh
 Financial Manager- Thomas Waugh
 Marketing and Administration Manager- Jackson Gillespie
 Quality Control Professionals Regional Head- Williams Devin
The relevant experience of the owners is stated as follows:
Noah Smith (BEng, FIEA, FAICD, 53): Mr. Noah has an extensive experience of the global
strategic approach of doing business. Noah was Managing Director and Chief Executive

9HOSPITALITY
Officer of a Burger Chain from 2005 until 2015. During the career of 23 years Noah had
gained a significant experience of the retail business segments across all regions of Australia.
Jack Waugh (BSc (Geology), PhD (Chemistry), 60): Mr. Jack is having more than 30 years
of experience in a restaurant business in Australia.
Jackson Gillespie (MBA, BE, FAICD, 65): Mr. Jackson has an wide-ranging experience of
creating synergies in industrial and mining companies for more than 12 years.
Williams Devin (CBE, MA, 64): Mr. Thomas is having an extensive experience in the fields
of energy, governance and sustainability. The overall experience is considered as 34 years.
It needs to be mentioned that Café Mocha House will be 100 percent owned by Noah
Smith and he is also the CEO of the new café.
Key Personnel
Job Title Quantity Expected
staff turnover
Skills necessary Date required
Store
Manager
1 2 – 3 Years the ability to work under
pressure in the peak
time, the ability to
handle critical situations,
must be able to make
required business
decisions, the ability for
understanding and
analysing the sales
figures, must have sense
of responsibility towards
the other members of the
store
5 years and above

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Job Title Quantity Expected
staff turnover
Skills necessary Date required
Baristas 2 2 – 3 Years Basic knowledge about
different types of
coffees, knowledge of
how to grind, process to
make espresso, skills for
milk steaming, pouring
and Latter Art,
knowledge about manual
and batch brewing, skills
to create recipe and skills
to maintain hygiene
5 years and above
Chef 2 2 – 3 Years The ability to make
different types of
sandwiches, skills of
creativity with the foods,
ability of multitasking,
motivational
5 years and above
Waiter 3 2 – 3 Years Must have effective
communication skill,
must be an active
listener, must be able to
multitask,
2 years and above
Cleaning
Staff
1 2 – 3 Years Must be able to work
autonomously, ability to
comply with the health
and safety criteria
2 years and above
The recruitment strategy will be provide advertisements in the local newspapers by
mentioning the required staffs for the café. In addition, there will be online advertisement for
the staffs and the recruitment will be done through employment agencies. There will not be
any specific training programs for the staffs as the requirement is to appoint the experienced
staffs. However, there will be an induction programs for all the new staffs that will involve
the explanation of the rules, regulations and policies of the company. The skill retention
strategy of the café will include the hiring of right people, implementation of effective system
for performance evaluation, effective handing of level of employee retention and turnover,

11HOSPITALITY
effective communication with the staffs for addressing their issues, implementation of
recognition programs and others (Jehanzeb and Bashir 2013).
Product/ Services
Product/Service Price
Standard Espresso $6
Macchiato $8
Cortado $9
Cappuccino $7
Au Lait $4
Latte $3
Mocha Espresso $4
Bagels $9
Muffins $12
Croissants $10
Scones $7
Coffee Cake $6
Egg Sandwich $7
Turkey Gobbler Sandwich $14
Chicken Club Sandwich $15
Tofu Salad $16
Cafe Mocha with Hot Chocolate and Whipped Cream $18
It can be seen from the above table that the new case will have products from high
end price to low end price. High-end customers can go for the specialist products of the case
like Cafe Mocha with Hot Chocolate and Whipped Cream or Tofu Salad; at the same time,
people can get the affordable foods and coffees from the café. This will provide the company
with the required competitive edge.