Comprehensive Cafe Business Plan: Market, SWOT, and Future Plans

This report presents a detailed business plan for establishing a new cafe in Waterloo, south of Sydney. The plan begins with an executive summary and table of contents, followed by an introduction outlining the report's structure. The discussion section delves into market research, analyzing the cafe culture in Sydney and the chosen location's potential, including a SWOT analysis that identifies strengths, weaknesses, opportunities, and threats. It covers target marketing, competitive analysis, and advertising strategies. The plan also includes a vision statement, mission statement, goals, objectives, and an action plan. The cafe aims to pioneer ripple coffee art, target students, and expand its business. The report concludes with references and a bibliography, providing a comprehensive overview of the business strategy for the cafe.

Running head: BUSINESS PLAN FOR THE CAFE
Business plan for the Cafe
Name of the student
Name of the university
Author Note

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Executive summary
The aim of the report is to prepare a business plan for setting up a new Café. The report has been
divided into multiple parts while the first part of the report deals with the market research in
order to analyze multiple factors affecting the setting up of the new business. While the next part
deals with the issues of SWOT analysis. This analysis is conducted to understand the internal and
external environmental factors. The last part of the report deals with the mission, vision and
future plans for the new business. This report is presented for the purpose of recommendations
while setting up the new business and it is expected to serve the purpose.

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Table of Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................3
Market research & SWOT analysis.............................................................................................3
Target marketing..........................................................................................................................4
Competitive analysis....................................................................................................................5
Advertising and sales...................................................................................................................5
Vision statement..............................................................................................................................6
Mission statement............................................................................................................................6
Goals and objectives........................................................................................................................6
Action plan.......................................................................................................................................7
Conclusion.......................................................................................................................................7
References and bibliography...........................................................................................................8

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Introduction
Starting a new business requires consideration of multiple issues and this report is aimed
at analyzing the various factors for setting up the new business. This report is divided into
several arts and its part is dealing with different issues. This business plan is constructed for the
new café, South of Sydney. This requires a detailed analysis of the factors important for this
business.
Discussion
Market research & SWOT analysis
The decided location for the café is R 102/5 Sam Sing Street, Waterloo, NSW, south of
Sydney. It is important to conduct market research in order to find out the probable issues and
threats, opportunities in the market before installing the new business. Through the analysis
conducted, it has been found that the Sydney has been placed for the café culture for decades,
people have to like towards relaxation and when it comes to choosing one option, the desirability
of a café is high. Hence, starting a new café at this place would be having positive implications.
However, it is important to conduct a detailed analysis of the internal and external factors to
derive the risk and opportunities attached to it.
It is to be argued that this business will have successful growth because the concept it has
come up with which is unique. The riddle coffee will be delivered at the café. Moreover the
staffs employed at the café are experienced in the market and they have a sound knowledge of
operating café business for years. This helps to gain the confidence of the people as people
choose to opt for places which they are accustomed to. It is also important to note that the

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location is very close to the university which will help to have a larger crowd mostly of the
university students. Lastly, it is important to note that the products are bio-degradable and
environment-friendly which is a concern for many visitors. However, it is not to deny that there
are or risk attached to it. Rather there are certain market risks which are to be considered before
starting this new business (Armstrong et al. 2015). Firstly, it is to be kept in mind that this is a
completely new business and there are chances of failure. It is also limited only to the food
varieties and does not specialise in any other beverages. It will be taking time to establish itself
in the market as any new business takes time to get acceptance from the people. There are
specific threats in the market like the chosen place already has quite many cafes, and people
might feel uneasy buying from a new shop. However, this is not to rule out that there are not
many opportunities for the new business. It has been found out that the uniqueness of the product
will help draw customers to it, it will help to create job opportunities for the locals and
individually this business will expand in the existing market. Considering the risk analysis of the
same, it is to be argued that risk associated with factors like staffing, increase in rent or increase
in cost in likely: however, it is unlikely to have a higher chance in issues like an economic
downturn or food positioning. It is also necessary to have an industry analysis before starting the
new business since it will be providing a detailed analysis of the risk and future growth
associated with it (Barringer 2015).
Target marketing
According to the Australian Bureau Statistics of 2016, it is estimated that the population
has a stable growth and the economy is in an excellent state to run a new business. Moreover,
Sydney already enjoys a strong coffee culture which will work as an added advantage for the
new market (Fahy 2015). Hence, it could be argued that there are chances of higher revenue

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growth for the company at a rate of 2.2% over the next few years. Since the business would be
based on pioneering in ripple coffer which has the capacity of serving over 200-250 customers a
day, the objective set for the business is the expansion of the same over other locations of
Australia.
The target market for this has been decided to be the residents and the localities of
Waterloo, mostly the people between the age group of 25 and below. The employees working at
the offices nearby are another target for the company lastly the university students of the nearby
colleges and university has been set as the targeted customers for the new café.
Competitive analysis
This is to be noted that there are potential threats in the market in terms of competitors
who have specialized in the type of food and beverages for example; the Baby Coffee Co is one
such group who has a larger customer base due to their proximity to the university. The “Cuppa
Flower” which has eye catchy interior décor with a large variety of offerings and shares large
popularity among the university students because of their social media reaches. Hence, it could
be argued that there are potential threats in the market in terms of the existence of other cafés;
however this does not rule out the possibility of having a profitable business for this new cafe.
Advertising and sales
Since advertising and sales are the most important part of the marketing which drives the
customers to the café, this has been ensured that the new business has a robust system of
advertisement and promotional strategies (Key et al. 2017). The primary thing to be ensured is
that the images used for are of high quality and customized according to the demand and the
requirement (Tuten et al. 2017). The second most important issue for the promotion and

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advertisement is a use of social media like one Instagram page for the newly added discount
price and special discount for the weekdays to be aired since it is it is the easiest way to reach to
the customers.
Vision statement
The long term vision of the business is to expand this business beyond the chosen
location. It is also to create the healthy, economically viable place for the community which
beliefs in creativity and uniqueness. Its core values are to build trust among the people of the
high quality food at a feasible rate to serve the people better.
Mission statement
The mission is to serve the local residents and the students’ food and beverages. It is to
cater to the people with the busy lifestyles and who have less time to travel long for a little
relaxation and it ensures future growth of the new business by opening multiple outlets into
different parts of the country after the initial success at one particular location.
Goals and objectives
This business is focused on achieving these smart objectives like to be the pioneer in
ripple coffee making art in the area if Sydney. It is aimed at serving over 200 to 250 customers
every day and earns a net profit margin of 10% every month and increases it gradually with time.
The third most important objective is to reduce the cost by 5% at a period of thirty days and to
reduce the cost of waste by 10.

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Action plan
The most important of all the future action is the investment in the business. Hence, it
will be ensured that the lucrative business opportunities and future invests are willing to invest in
the business. It will be ensured that the art of ripple coffee making is mastered over time since
this uniqueness of the café is their mastery of making ripple coffee. This business is expected to
explore the option of developing a new application where the customer can choose their
customized coffee art which will be helpful in enhancing customer satisfaction.
Conclusion
Starting a new business requires a strategic analysis of the factors that will determine the
success or failure of the business. This report aimed to analyze the factors responsible for
installing a new business. This new business is planned to be café which is specialized in selling
food and a special type of beverage. This report made a strategic analysis of the internal and
external factors, target marketing, a risk of the industry, their vision and mission of this new
business.

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References and bibliography
Armstrong, G., Kotler, P., Buchwitz, L.A., Trifts, V. and Gaudet, D., 2015. Marketing: an
introduction.
Barringer, B.R., 2015. Entrepreneurship: Successfully launching new ventures. Pearson
Education India.
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Fahy, J. and Jobber, D., 2015. Foundations of marketing.
Gürel, E. and Tat, M., 2017. SWOT ANALYSIS: A THEORETICAL REVIEW. Journal of
International Social Research, 10(51).
Hopp, C. and Greene, F.J., 2018. In pursuit of time: Business plan sequencing, duration and
intraentrainment effects on new venture viability. Journal of Management Studies, 55(2),
pp.320-351.
Key, T.M. and Czaplewski, A.J., 2017. Upstream social marketing strategy: An integrated
marketing communications approach. Business Horizons, 60(3), pp.325-333.
Kotler, P., Burton, S., Deans, K., Brown, L. and Armstrong, G., 2015. Marketing. Pearson
Higher Education AU.
Morgan, N.A., Whitler, K.A., Feng, H. and Chari, S., 2018. Research in marketing
strategy. Journal of the Academy of Marketing Science, pp.1-26.

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Phadermrod, B., Crowder, R.M. and Wills, G.B., 2019. Importance-performance analysis based
SWOT analysis. International Journal of Information Management, 44, pp.194-203.
Tuten, T.L. and Solomon, M.R., 2017. Social media marketing. Sage.