Rooftop Cafe Business Plan: Analysis for Rooftop Cafe - Melbourne

This business plan for Rooftop Cafe, a proposed hospitality venture in Melbourne, comprehensively outlines the business's structure, market analysis, and financial projections. The report includes an executive summary, detailing the business's objectives, mission, and offerings. It incorporates PESTEL and SWOT analyses to evaluate the external and internal factors affecting the cafe. A detailed market analysis identifies target customers and competitors, while the financial section presents startup costs, balance sheet forecasts, profit and loss projections, cash flow statements, and a break-even analysis. The plan also covers operational aspects, including key personnel, product and service offerings, risk management, legal considerations, and a sustainability plan. The cafe aims to provide a unique dining experience with a focus on quality food and service, targeting a specific demographic in a competitive market. The plan emphasizes strategic planning, innovation, and financial prudence to ensure long-term sustainability and success.

ROOFTOP CAFÉ: BUSINESS
PLAN

BUSINESS PLAN SUMMARY
According to Ekanem (2017), a business plan can be defined as the written document which
specifies details relating to the manner in which company’s objectives will be accomplished
relating to sustaining as a viable business. Further, it provides the information to the reader
regarding what, where, why and how the company will attain its goals as well as the
individuals involved in same. (Cole, 2014). Present report emphasizes on the business plan of
Roof Top Café. The report comprises three essential segments of a business plan, i.e.
Business, Market and Financial perspectives. The fundamental purpose of the current
business plan is to assess the business as whole comprehensively and to make contemplation
regarding the areas of issues.
With the assistance of plan owner or executive can get the analysis of every factor of
business, it also discloses problems which were obscured previously along with areas from
which the profit can be generated. It can be concluded from Porter Analysis that café will
face tough competition from existing café and restaurant. Further, the threat of market entry
and substitute is too high in this case as it not that tough to initiate café business. The main
strength of Roof Top Café is the availability of best view and best quality of food and service.
The financial perspectives of café represent that it is going to have an increasing trend of
sales and appropriate profits. Further, as management is keeping a watch on all the operation
on a continuing basis, thus it will succeed in resolving the issue at its initial stage and will be
able to sustain for a long period.

Table of Contents
The Business..............................................................................................................................5
Overview................................................................................................................................5
Business Structure..................................................................................................................5
Organization Chart.................................................................................................................6
Key Personnel........................................................................................................................6
Products and Services............................................................................................................7
Innovation and Insurance.......................................................................................................8
Risk Management...................................................................................................................8
Legal Considerations..............................................................................................................8
Sustainability Plan..................................................................................................................9
The Market.................................................................................................................................9
Market Research.....................................................................................................................9
Market Targets.......................................................................................................................9
Environmental/ Industry Analysis..........................................................................................9
SWOT Analysis...................................................................................................................11
Competitors Analysis (5 Porters Analysis)..........................................................................11
Advertising and Sales...........................................................................................................12
The Future................................................................................................................................12
Vision statement...................................................................................................................12
Mission statement.................................................................................................................12
Goals/objectives...................................................................................................................12
Action plan...........................................................................................................................13
The Finance s...........................................................................................................................14
Key objectives & financial review.......................................................................................14
Assumptions.........................................................................................................................15

Start-up costs........................................................................................................................15
Balance Sheet Forecast........................................................................................................17
Profit and loss forecast.........................................................................................................17
Provisional Cash Flow Statement........................................................................................18
Break-even analysis.............................................................................................................19
References................................................................................................................................22

THE BUSINESS
Overview
The business idea which has been adopted in the present case is of the hospitality industry
that is the café named as Rooftop Cafe. The café has not yet been registered thus proposed
name of the business has been provided. Café will be opened next year near Christmas in
Melbourne.
Business Structure
The business will be initiated through two partners. Thus the partnership business structure
will be followed in order to operate the transactions of business. The partners of “Rooftop
Café” are Mr Adam and Mr Smith. Both the partners are having appropriate experience in the
hospitality industry as they have been part of this industry from the last ten years. Both the
partners have worked in different know cafés of Australia. Mr Adam is known for his
management skills,and on the other hand,Mr Smith is known for being a master of tasting and
cooking. Even Mr Smith has also been awarded as best chef in the restaurant in which he
worked previously.

Organization Chart
Figure 1: Organization Chart of Roof Top Cafe
Key Personnel
The key personnel of the café will be the two partners, general manager and assistant
managers. The strategies and policies will be developed by the partners. Further, they will be
discussed with managers and changes will be made accordingly. The staff which will be part
of the café will be as follows:
Executives Quantum
Chief Executives (GM) 1
Subordinate managers 2
Kitchen manager 1
Bartenders 1
Servers 5
Bar Backs 1

Chef and helpers 3
Prep 2
Dishwashers 2
Appropriate guidance will be provided to employees who will comprise the manner of
dealing with issues relating to consumers, welcoming customers and providing other services.
Meetings will be conducted at reasonable periods in order to discuss the issues faced by
management.
Products and Services
The following products and services will be provided by Rooftop Café:
Products:
 Mains: Rooftop Café Breakky (a speciality of the cafe), Seafood Platter, Chicken
Parmigiana etc.
 Starter: Garlic Bread, Natural Oysters, Tomato Salad.
 Wraps: Smoked Salmon, Falafel
 Burger: Grilled vegetarian Burger, Chicken Burger, Beef Burger.
 Pizza: Margherita, Garlic Prawn, BBQ Chicken
 Pasta: Risoto, Spaghetti Marinara, etc.
 Salad: Moroccan Lamb Salad, Chick Quinoa Salad
 Beverages:
o Cold Drinks: All flavour
o Wine: White wine and Red Wine.
o Cocktails: Mojito, Dalquiri, Aperol Spritz.
o Bear.
o Tea and Coffee.
 Desserts
Services: Roof Top Café will also provide services relating to the organization of small
gatherings, parties and events. Special offers will be provided along with the additional order
in order to provide an enhanced level of customer level satisfaction. It will also provide
growth to the business.

Innovation and Insurance
Roof Top Café will indulge innovative concepts in the product as well as services. For
instance, the products provided by the café will be transformed in accordance with the choice
of the customer. Additional flavours will be provided so that customer can have drinks and
other eatables of their choice. Moreover, customized toppings option will also be available so
that customer has a feeling that they are prioritized and satisfied to a significant extent. While
organizing small gatherings and parties also management will assure that
Risk Management
With accordance to Wolke(2017), it plays a very important role in the survival of the
business,especially for restaurants and cafes. The reason behind same is that there are
chances of catching fire in the kitchen. For the same common safety measures will be
developed in Roof Top Café; which are introducing sprinkler systems and monitored fire
direction alarms. Further, checking fire extinguishers on a regular basis will be done along
with providing training to employees relating to the manner of utilizing fire extinguisher.
Along with this, there is automatic temperature fitting cut-out switches to stop deep fryer
appliances from overheating. In order to do the same, deep fryers are fixed with separate
exterior cut-out switch which is non-adjustable along with apparatus which can be returned
manually. Moreover, the cut-out switches detach the deep fryer from energy supply when
cooking oil or fat arrives at the maximum temperature fixed. Fryers are checked monthly by
an expert in order to avoid accidents in the cafe.
Legal Considerations
Legal considerations of Rooftop cafe are zoning regulations which define the kind of
business that an owner can have in a specific location. Further, Cramer (2017) specifies that
zoning potential for a property comprises residential, industrial, leisure, manufacturing and
agricultural. Moreover, the type of business structure is also important for opening a new
business since it influences the constituents for example financial responsibilities are
allocated, comprising taxes and debt(Glassie, 2016). It is significant for the cafe to be
licensed by controlling jurisdictions, whether it is in the city, nation or state. Thus same will
be compiled by the café. Further, all the regulations and laws will comply in order to avoid
fines and other penalties relating with same.

Sustainability Plan
It is stated by Gordon and Brezinski(2016),that, the sustainability plan of an organization
comprises the development of strategies in order to sustain for a longer period. The
sustainability plan of Rooftop cafe mainly emphasizes planning relating to the availability of
types of product and services. Thus, the focus will be made on cooking the food items
according to the type of season, for example, offering more types of soups in the winter
season. Preparing the menu according is significant to attract the consumers. Further,
Morden(2016) asserts that sustainability does not end with the menu. So, required training
will be provided to the employees regarding the manner of treating the consumers. Since the
finest way of transferring information to consumers is through employees. Along with this,
the cafe will break the objectives in two main parts that are which are to be achievable in
short period of time and which are to be achievable in future so that it becomes easy to attain
pre-determined objectives.
THE MARKET
Market Research
Market research has been accomplished by Roof Top Café in order to assess the existing size
and latest trends and practices in the hospitality industry. Further, the target customer (or
target groups of customers) has been analyzed for ascertaining their choice and taste. Even
the extent of the competitiveness and future threats have been assessed so that planning or
strategy can be developed in order to reduced the negative impact of expected threat.
Market Targets
The main market target is Melbourne which is the hub of cafes and restaurants. Further, the
customer target group of Rooftop Cafe is the individuals of age between 25-30. The reason
behind the same is since people of this age group are very busy in their work. Thus they are
usually outside and not at homes. Further, as per the study of Jeston (2014), this type of food
is liked by youth generation mostly. Thus, the same have been targeted significantly.
Moreover, the main competitors of Rooftop Cafe are Kinfolk, Axil Coffee Roasters, Seven
Seeds and Frankie Walter Peta. In order to attract the consumers, it is very important to assess
the services provided by competitors so that the business can give more superior services.
Environmental/ Industry Analysis
PESTEL Analysis

The PESTEL analysis tool is used by an organization to analyze the macro – environment
factors which provide the necessary information in order to ascertain the areas which are
required to be focused in an essential manner:
Political
 Government Regulations relating to restaurant business are
to comply on a mandatory basis.
 Main emphasis should be made on assessing the approval
relating to serving alcohol.
Economical
 Inflation
 Volatility in currency rate.
Social
 Current Trends of Hospitality Industry
 Changing choice of the taste of people.
 Significance of culture.
Technological
 Indulging of innovative ideas in operations of the business.
 Acknowledging orders through an online portal.
Environmental
 Provision and regulations related to environmental law
(Bell, Bryman and Harley, 2018).
 Adopting Recycling procedure to the extent possible.
Legal  Compliance with Licensing requirement.
 Regulations relating to serving alcohol.

SWOT Analysis
Strengths
 The best quality of food
 Best service
 Awesome Top View
Weakness
 Recruiting and Retaining good staff.
 Management of financial resources
at the initial stage.
Opportunities
 The opportunities accessible under the
hospitality industry are infinite (Clegg,
Kornberger and Pitsis 2015).
 It can add to catering services to its
business.
Threats
 One of the most important threats
that every industry faces are their
competitor. In the same way, this
diligence have the big threat of their
established restaurants which serve
transnational food and apart from
this, it can be seen that regularly
there are new industrialists who are
interested in this industry.
 The next threat which is likely to
face is government policies;
particularly the difficulty comes
when they want to import the raw
ingredients which are not accessible
in Australia (Bullet al., 2016).
Competitors Analysis (5 Porters Analysis)
The threat to entrants – The threat of entry in this industry is high as initiating a restaurant
business does not require too high financial resources. Moreover, one gets appropriate chance

to present its potential in business through this. However, the advantage available to Roof
Top Café is its ambience and view at the top. Thus, appropriate chances exist for the
restaurant to sustain for a longer period.
Threat relating to substitutes – The threat of substitute in café is available at an extensive
level. The reason behind same is varieties of alternatives are available to the customers as
many other restaurants and cafés are available easily.
Power of buyers –With accordance to Hill, Jones and Schilling (2014), bargaining power of
buyers is strong as substitutes are available in a significant manner. Moreover, café can
decide price in accordance with the quality provided by them. Thus, higher charges can be
demand if the appropriate level of service is provided.
Power of suppliers – Roof Top Café management requires maintaining a healthy relationship
with a supplier in order to receive supplies within time as well as for getting information
relating to competitors. Thus, moderate bargaining power towards supplier exists in case of
Roof Top Café.
The rivalry between competitors – A great extent of rivalry exist between competitors, thus
due to same reason a variety of issues are to be faced at the initial stage of business by café.
Advertising and Sales
With accordance to Moriarty, et al.(2014), advertising refers to the broadcasting of
information by the non-personal method through paid media where the resource is sponsoring
company. Furthermore, to promote the cafe advertising is done on television, magazine and
newspapers. Effective advertising and marketing strategies will lead to an increase in sales.
People nowadays are more attracted through with social media so the online platform will
also be utilized in order to provide information relating to café.
THE FUTURE
Vision statement
Roof Top Café is committed to uniting to provide fresh and delicious food and beverages, as
we believe sustainability is not a lofty idea but a basic requirement.
Mission statement
The company will provide the preeminent service and taste in food to the customers, so that
prefer coming back. The product used for food will be of top quality as well as fresh. Further
emphasis will be made on hygiene as the organization is concerned towards the health of