Comprehensive Business Plan: Molly Cafe on the River Thames

This business plan outlines the establishment of Molly Cafe, a service cafeteria located near the River Thames and the Eye of London. The plan details the cafe's aim to provide a comfortable, environmentally-friendly space for socializing. It includes a PEST analysis evaluating the external environm...Read More

Business Plan of
Molly Café

Table of Contents
INTRODUCTION ..........................................................................................................................1
OVERVIEW OF PROJECT............................................................................................................1
MAIN BODY...................................................................................................................................2
PEST Analysis to Evaluate External environmental..............................................................2
Introduction to Principles of Business Finance......................................................................3
Marketing Plan Using 4P's.....................................................................................................4
SWOT Analysis......................................................................................................................4
Competition and Competitive Advantage..............................................................................5
Target Market.........................................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES ...............................................................................................................................7

INTRODUCTION
A business plan is a descriptive, authentic and explanatory document that suggests about
a business ides or plan and how it could be successful. Molly cafe will be a service cafeteria that
will be established beside river Thames near the Eye of London. The business will be developed
keeping in mind the views to develop a cafe where people could feel comfortable, near to
environment and socialise with friends over a cup of tea. A coffee shop business plan includes
information regarding competitors, target market and pricing strategy. The report will cover an
explanation of business plan of Molly Cafe. The report will include overview of business plan,
evaluation of external environment and what finances the business plan will require. Further, this
report will cover marketing plan and SWOT analysis of the business. The report at the end,
explains competition and competitive advantage using analysis of market and target customers.
OVERVIEW OF PROJECT
For the purpose of opening a cafe which will be nomenclature as Molly Cafe, beside the
river Thames. The location of its establishment would be a tourist location of London, at the Eye
of London. Thereby this business plan will include and represent the aim of the cafe towards
opting great efforts and strive towards establishing a cafeteria that is in reach of maximum
customers. The place will thrive to engage opportunities of socialising with others and provide
relaxing, enjoyable, comfortable and green environment to offer best mood relaxation in the
town. The business will develop three or four drive through locus and one mobile cafe and home
delivery options by the beginning of the 5th year. The company will be a Limited corporation and
it will be established as joint venture partnership. The company will market its products in a way
that sales optimisation could be achieved, along with the proper segmenting and targeting of
most beneficial customers. It will present its brochure, with the help of online and social media
marketing as a tool to cover a larger area and public. The cafe will provide customers with free
of cost Wi-Fi, reading options and 3D visual graphics with the help of augmented reality screens.
The business plan will include mood relaxation areas in the cafeteria where people could achieve
ecstasy with the help of soothing music and visual-graphics. The summary of upcoming finances
and expenses in years and revenue generation will also be given in the business plan. The
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business plan will evaluate and estimate the production ability, marketing efficiency, sales and
growth of the business.
MAIN BODY
To reach the heights of success in the Cafe business the company needs to focus on its
marketing to enhance its business plans (Bertassini and et. al., 2021).
PEST Analysis to Evaluate External environmental
The PEST analysis consists of certain set of equipment that helps to identify the exterior
environment of the business. To determine the external factors that could affect the business of
Molly Cafe are given below: Political Environment: The UK government have no interferences with the new start-ups
and the authorities also supports the growth of new businesses (Chernev, 2020). In this
scenario the start-up would need adequate permissions of the government and authorities
as it would be established near a water body. The Molly Cafe owners should consider
evaluating those political requirements and rules to be followed in order to get accurate
permissions to start their business establishment process. Economic Environment: The economic factors plays crucial role in establishment of a
company. The economic conditions such as exchange rates, inflation-deflation, market
economy, could affect the running of a business (Cielo and et. al., 2021). The Molly Cafe
should consider on continuously observing the income levels of people to offer its
products at optimum rates. With proper economic study, the cafe could make better
relationship with its customers and create urge for their cafe. Social Environment: Social influences such as trends, tastes and lifestyle of people are
the factors that could affect the running of the business. The activities of Cafe heavily
depend upon the tastes and preferences of the customers. The Cafe owners should
continuously focus on changing trends and tastes of people to provide customer
satisfaction. The business would get competitive advantages if its owners figure out the
changes in trends, which could help them to improve business strategy as early as
possible.
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 Legal Environment: The legislation has special resolutions and rules regarding the
settlements and buildings that are established near the locations that are near water bodies
(Ferri and Ricci, 2021). The legalities of Molly cafe would require to fulfil licensing,
obtaining business permit for using of the total land for establishing cafe in that location.
Therefore, the business need to evaluate the legal requirements and comply with them all
to continue smooth working of their business.
Introduction to Principles of Business Finance
Business finance refers to a statement that shows how much cost would be incurred in
starting a business (Gacek And et. al., 2021). In order to successfully establish and operate the
Molly cafe, the total costs in starting the business should be well evaluated. The estimated cost of
the business would be nearly £150 thousand that would be obtained from various sources of
business finance such as owner funds and bank loans. The objective of this cafe is identified as
achieving 15%, after interests and taxes, to strive towards continuing stipulated gross-margins of
closely 50% or more. Owner's Funds: For setting up of the Cafe business, major source of finance would be
owners fund in a joint partnership (Isaiah, 2021). The owners would be investing £60
thousand and $50 thousand respectively.
 Funds from Other Sources: The remaining amount of total investment i.e. £40 thousand
would be raised through a loan from bank.
Allocation of Business Finance
The capital investment in the business would be £60 thousand to successfully set up the
cafeteria and carry out its fixed costs for upcoming two months. £15 thousand would be required
to obtain licensing and adequate permissions to carry out the businesses along with inauguration
and promotion campaign. Further requirement would be of £10 thousand to entrench stationary
and raw materials and its insurance. The use of £45 thousand would be done to bring in the
inventory and technology to make the area comfortable for the public. This would include
equipment and technology required to carry coffee making business. The office workplace would
require $5 thousand investment to set computers and billing counters. The remaining fund of £15
thousand would be kept as reserves to be used in the times of need.
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Marketing Plan Using 4P's
The marketing mix is the combination of product, price, lace and promotion mix of the
product that helps to market the product effectively. The marketing mix of Molly Cafe is given
below: Product: The Molly cafe would provide the customers with tea, coffee and beverages
with unique tastes and with different flavours. The products would include breakfast
bunch of cafeteria including pizza, brownie and milk bread twister. The product and
services would include environment and relaxation therapy rooms as well (Levin, 2020). Place: Molly Cafe is established in bank of river Thames near the eye of London. The
place is near to the mainstream location where a huge mall stands and near to the best
tourist attraction destination in London. Price Promotion: The price for the product would not be too low, nor too high because
too high prices or too low prices may reduce the interest of customers to try the cafe
products. (Mercer and Harms, 2020).
 Promotion: The company would use social media and online marketing of its products as
well as emails and its own site to promote its products. The promotion would include a
grand opening with the help of well known social media by keeping a full coverage of
opening ceremony of the cafe to promote it.
SWOT Analysis
It is a framework used to identify strength, weakness, opportunities and threats of the
business. This will help Molly cafe to understand its business better and identify its areas of
growth. Moreover, it helps the owners to analyse current market situations and to devise a
successful market strategy for future. Strength for the business: It is an internal factor of the organization which determines
what unique selling points does a business has, that satisfy your customers better than
your competitors. There are certain factors which can be fruitful for the business such as
reasonable pricing, unique and healthy beverages and cocktails, ambiance and soothing
aura of the place (Salek, 2021). Weakness for the business: As this is another internal factor which can prevent the
business from having successful outcomes (Shakeel and et. al., 2020). There are certain
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factors which can limit its growth, for instance, poor customer service, unjustified higher
prices and many other factors can have impact on the business. Opportunities for the business: These are the external factors which are favourable for
the business. The business has opportunities of creating customers as it would be
established at a prime location near to a tourism hum. The cafe could achieve
concentration of people towards it because of regular movement of people in that area.
 Threats for the business: These are the unfavourable factors which could harm the
growth of the business (Shams and et. al., 2021). These factors may raise the prices of
Cafe products, or if the existing competitors lower down their prices the company may
face problems to sustain in the market.
Competition and Competitive Advantage
Every business has competitors in the market and same is with the Molly Cafe because in
the cafeteria business in the UK many Cafes already exists. The company has to be well aware
and warned of its competitors in the market. The company has many strong competitors who
covers a large market in the streets of London, such as Charlie's Bakery and Cafe, Little Wonder,
The London eye Cafe, London Cafe and many more. The company needs to find out the best
business strategies to overcome competition. The cafe should focus on making its product that
tastes best, looks most attractive to the customers and gratify their palate. This would help the
company to overcome competition within few months and gain high number of customers for
itself. The competition in the market is quiet high for the company in the business therefore,
Molly Cafe would lower their prices, adapt early to customer trends, provide flexible services,
etc. The company would offer discounted prices to students and people in groups to attract them.
Target Market
It is important to target the right customer that could be done after correct segmenting and
targeting of the market customers. A market has many business segments that it can enter, so the
company needs to determine that which group of customers it need to attract. The target market
can be affected by various other factors such as gender, age, income, behaviour and geographical
conditions. The Cafe would basically focus towards age and income factor of market
segmentation in London.
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Age Group
18 to 30 years
30 to 60 years
Preferences & Products
High caffeine intake either hot or cold. Product will be rich blend
of coffee.
Premium taste coffee, with low caffeine and sugar. Product will
be light blend coffee.
Income Level
Medium
High
Preferences & Products
Quality product at low costs. Product offered is regular coffee and
flavoured teas.
Premium high priced products and services. Mood relaxation
rooms along with premium coffee and unique servings.
CONCLUSION
In the recent years, the demand and competition for cafeterias serving food and beverage
industry has raised significantly. Keeping this fact in mind, more and more cafeterias and
restaurants are being opened to cater the rising demand of the customers. The people are always
eager to taste and gratify different delicacies that are available in the market. There are various
leaders in Cafe industry such as, London cafe, Charlie's, Little Wonder and many more.
Therefore, the owners of start-up cafes will have to look forward towards opting better
opportunities and methods to garner larger consumer segment. It has been obtained from the
report that the start-ups needs to be developed with the help of innovative and advanced
marketing methods to earn large market area. The report has stated about the overall
competitiveness of the business and how the start-ups could optimise their usage of funds and
obtain heights in the market.
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REFERENCES
Books and Journals
Bertassini, A.C. And et. al., 2021. Circular Business Ecosystem Innovation: A guide for mapping
stakeholders, capturing values, and finding new opportunities. Sustainable Production
and Consumption, 27. pp.436-448.
Chernev, A., 2020. The marketing plan handbook. Cerebellum Press.
Cielo, A. and et. al., 2021. Renewable Energy Communities business models under the 2020
Italian regulation. Journal of Cleaner Production, 316. p.128217.
Ferri, S. and Ricci, F., 2021. The Recovery Plan as a Strategic-Informative Tool Between Needs
and Opportunities. In Financial Strategies for Distressed Companies (pp. 107-136).
Springer, Cham.
Gacek, C. G. And et. al., 2021, April. Managing operational and environmental risks in the
strategic plan of a Maritime container port. In 2021 Systems and Information Engineering
Design Symposium (SIEDS) (pp. 1-6). IEEE.
Isaiah, P., 2021. The Entrepreneurial Plan: The Entrepreneur's Plan of Action. Pinto Isaiah.
Levin, R., 2020. Structuring Venture Capital. Wolters Kluwer.
Mercer, Z. C. and Harms, T. W., 2020. Business valuation: an integrated theory. John Wiley &
Sons.
Salek, T., 2021. The recipe for communicating change: Using Kitchen Nightmares to craft an
internal communication change plan. Communication Teacher, 35(2). pp.81-85.
Shakeel, J. and et. al., 2020. Anatomy of sustainable business model innovation. Journal of
Cleaner Production, 261. p.121201.
Shams, R. and et. al., 2021. Strategic agility in international business: A conceptual framework
for “agile” multinationals. Journal of International Management, 27(1). p.100737.
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