Business Model Canvas for a Novelty Cafe in Melbourne

This report details a Business Model Canvas (BMC) for a novelty cafe in Melbourne, Australia, with an investment of $10,000. The BMC outlines key partnerships with investors, suppliers, and franchisees. Key activities include cafe interior planning and cuisine development for both humans and pets. Key resources encompass financial resources, construction materials, skilled staff, and legal requirements. Customer segments include walk-in and corporate clients, with a focus on a unique experience for dog owners. The value proposition centers on coffee quality, barista skills, dog-friendly hospitality, and special activities. Channels involve marketing and post-sale customer engagement. Customer relationships emphasize excellent service for both humans and dogs. Revenue generation strategies include various pricing models, afternoon specials, loyalty programs, and dog-related discounts. The cost structure considers price and value-driven factors. The report references several academic sources to support the BMC's components.

Running head: BUSINESS MODEL CANVAS
Business model canvas
Name of the student
Name of the university
Author note

1BUSINESS MODEL CANVAS
The report consists of the setting up of the business model canvas that is based on the
launching of the novelty café. The budget of the setting up the café is high. The total amount
of investment of setting up the café is ten thousand dollars. The café is set up in Melbourne in
Australia. The café follows the business model canvas. This includes the aspects like the key
partnership required in the café. The other aspects are key activities, value propositions, key
resources, the relationships with the customers, the channels through which the advertisement
can be done. It also includes the revenue streams, cost structures and the customer segments.
The café is set for not only for the humans but it is designed for the pets of the people
as well. The unique concept is designed with the aim of giving the pleasure of having food
with the pets as well. In the café and the restaurant the pets are usually not allowed. This café
is built in such a way that the people can bring their dogs along with them.
Key partnerships
There are three partners or the stakeholders of the café. The café holders are the
investors of the café. The three partners have equal share in the café and the profit is divided
into the three partners. This includes their suppliers, franchisee holders and distributors
(Leschke, 2013).
Key activities
The key activities include the planning of the setting up of a good interior of the café.
A place needs to be set in the café which is suitable for the humans as well as the dogs. The
setting of the cuisine which is suitable for the humans as well as the dogs should be included
in the strategy (Leschke, 2013).

2BUSINESS MODEL CANVAS
Key resources
The key resource for the novelty café is the financial resources, the construction
material required for the café. It further includes some good cooks who know to cook all
types of cuisines that are required in a café. It also requires the setting up of cuisine which is
suitable for dogs as well. It includes the further resources like the solving of the legal matters
like the issue of the license that is needed for the setting up the café. The café needs resources
like the sitting arrangement of the dogs and the arrangement of special activities for the dogs
(Voigt, Buliga & Michl, 2016).
Customer segments
To have a customer segment it is essential for the café to have a distribution channel.
This will include the walk-in customer, catering company. The walk-in customer of the café
will include the flying customers. The unique feature of the café will increase the walk-in
customers of the café. The café needs to form strategy to supply the corporate breakfast. This
will let the café have some value brand recognition (Voigt, Buliga & Michl, 2016).
Value proposition
For the walk-in customers of the café shop it is required for them to focus on the type
of coffee, on the machine, on the skill of the barista, the hospitality should be offered towards
the dogs of the owners as well and some special activities should be planned. The special
activities like some games and there should be a special activity area for the dogs. The
cuisine should have some special dish of bones for the dogs (Traganos, et al., 2015).
Channels
The café needs to be more just providing a way of getting the product to the customer
through the value distribution channel. It includes the advertisement of the café through the

3BUSINESS MODEL CANVAS
marketing channel and to keep a potential touch with the customers after the sale (Matsumae,
& Burrow, 2016).
Customer relationship
The café should be able to win the new customers ad they should be able to keep the
existing ones. The café should provide the customers with proper hospitality. Since the café
allows the individuals to bring their dogs in the café they must treat the dogs important and
they should lend good behavior to the dogs of the owners as well (Martins, Rindova &
Greenbaum, 2015).
Revenue generation
This includes the café must monetize the business. It should be done in certain ways
like the use of heap of pricing models from the fixed price, or through auctions, to volume
discounts and the demand sensitive pricing. The café must go beyond the cost of a cup of
coffee to consider afternoon specials, loyalty reward programs, special discounts for the dogs,
the renting out of the machines (Leschke, 2013).
Cost structure
The cost structure of the café includes the price driven factor which includes the
competition on price with the rival cafes. The café wants to keep the price of the menu lower
than the other cafes so that they can attract more customers. It also includes the value driven
cost. It includes the concentration of the non price factors such as the brand, service, quality
and uniqueness (Ferro, et al., 2017).

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References
Ferro, C., Ferro, C., Padin, C., Padin, C., Svensson, G., Svensson, G., ... & Høgevold, N. M.
(2017). Validating a framework of stakeholders in connection to business
sustainability efforts in supply chains. Journal of Business & Industrial
Marketing, 32(1), 124-137.
Leschke, J. (2013). Business model mapping: A new tool to encourage entrepreneurial
activity and accelerate new venture creation. Journal of Marketing Development and
Competitiveness, 7(1), 18-26.
Martins, L. L., Rindova, V. P., & Greenbaum, B. E. (2015). Unlocking the hidden value of
concepts: a cognitive approach to business model innovation. Strategic
Entrepreneurship Journal, 9(1), 99-117.
Matsumae, A., & Burrow, K. (2016). Business model generation canvas as a method to
develop customer-oriented service innovation. In Serviceology for Designing the
Future(pp. 551-565). Springer Japan.
Traganos, K., Grefen, P. W. P. J., den Hollander, A., Turetken, O., & Eshuis, R. (2015).
Business model prototyping for intelligent transport systems: a service-dominant
approach. Beta Wroking Papers, Eindhoven University of Technology.
Voigt, K. I., Buliga, O., & Michl, K. (2016). Business Model Pioneers: How Innovators
Successfully Implement New Business Models. Springer.