Business Plan

Title: Craft Cafe

Advisor: Mr. Irfan Tariq

Submitted by Tayyaba Latif

Registration No# 002
Bs (BA) B-6 Semester- 5

COMSATS University Vehari Campus

Café to Promote Eastern Culture &
Handicrafts

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Contents
• Executive Summary……………………………………….4
• Vision Statement……………………………………….....4
• Mission Statement………………………………………...4
• Idea Generation…………………………………………...5
• Introduction…………………………………………….....5
• Management……………………………………………...6
• Location of Café………………………………..................6
• Description of project……………………….……………7
• Competitors…………………………………………….....9
• SWOT Analysis………………………………………….10
• Production Process……………………………………….11
• Financial Plan…………………………………………….16
• Market Consumption…………………….……………....16
• Code of Conduct…………………………………….....16
• Online Activities……………………………………….17
• Market Policy………………………………………….....17
• HR policies……………………………………….……...18
• Market Expansion Plans………………………………....19
• Other Socio-Economic Benefits…………………………19
• Appendix A……………………………………………..21
• Appendix B……………………………………………..22
• Appendix C……………………………………………..23

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 Executive summary

Now a day, westernization is dominating our cultural values a lot. Western lifestyle has
specially impacted the youth of our nation. Companies present their brands through western
styles fast food restaurants, coffee bars, juice corners etc. This is leading our generation away
from their cultural, religion and moral values. In this circumstances if we will not promote
our culture then that day is not far from us when we will lose our culture. The location of our
craft café will be in Gulberg at M. M. Alam road with ten million investments. For the
promotion of our real eastern culture in our society as well as in business world we shall
focusing on a cultural craft through coffee shop in which we will also promote our culture,
norms and rituals by physical appearance, operations and online stuff. Targeted craft café
market will be youth and families. We will develop our website i.e. www.cafecraft.com in
near future.

In our craft café management we will hire specially trained efficient and courteous
employees & chiefs will pay special attention to cleanliness and ensure you a quality meal
each and every time you will visit here. In Competitor’s edge our direct competitors will be
Roasters, Hot Fuzon, World Fashion Café and many more. We will also do SWOT
analysis to know Strength, Weaknesses, Opportunities and Threats. We will offer coffees,
different flavors in tea, cakes and biscuits etc. while in Special handicrafts Winds charm,
Vass, Jewellery box ,Candle stand, paintings, Soup cup, Coffee mug Handmade jewellery
etc. Our supplier of coffee will be Tetra Pak, Lahore, Hyperstar, Forteress Stadium and
Lahore, Pakistan etc. While In craft supplies will be came from Multan and Bahawalpur.

According to our marketing policy, our target markets will youth and families. We will
segment our market on the demographic bases (age, family size, income level etc) and
psychographic bases (social classes, life style etc.). We will use penetration satretegy for
pricing and We will use promotion pull strategy for promotion of our café. For this purpose
we will advertise on magazines, roads and in universities. In our HR policies we will identify
expectation and reward system for employees and we will also maintain Dress Code for the
Non Managerial Employees. We will also give other socio economic benefits like
Employment Opportunities, Benefits of Economies of Scale, Training and Manpower,
Saving Foreign Exchange, Raising Living Standard.

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 Vision Statement
Our vision is the promotion of eastern culture all over the pakistani economy by using
internet and physical outlets.

Mission Statement
As our mission is to promote eastern culture in cafés of Pakistan, here it would be
essential to highlight that the proposed café will give a cultural look and it would be similar to
that of the culture of each province of Pakistan. Moreover we will provide a platform for the
handicrafts in our café and we will also take online orders for the events decor and will prefer the
cultural look in decorating those events.

Idea Generation
Café is originated from western economies and that’s why it is promoting western culture
around the globe. This café culture is strengthening its root in our society. So our proposed
business plan of café is to promote eastern culture in our society. In handicrafts there involve
many varieties, by focusing one aspect that is very important. This aspect is what we make
decoration from wasted things. We use egg shells, extra bangles, pistachio peals, pieces of
strings, ice cream sticks, wasted bottles, x-rays, seeds of melon etc. We also make interior
decoration by using these things and some more as required. Moreover we promote handicrafts
through exhibit of that particular hand made things in a traditional way to extract the gone ability
of women’s in our society.

If we are running a business of restaurant and we want to make some decoration without
wasting money and also wanted to reduce cost of such things. We will utilize the waste of our
business to make interior decoration. In such a way we will save our cost, give a beauty and
attraction to our business which also becomes more profitable because such type of things you
cannot find anywhere.

Introduction
The Cafe is a mean of bringing a group of people together to have fun and cultural
environment attract the group of people for purchasing our handicrafts to achieve our main
motive Our café will provide them a healthy cup of coffee to cover their demand for coffee. At
our cafe u can eat, drink, enjoy and our craft cafés cultural look fascinate them to purchase. You
can visit us with your friends and family and can enjoy meal without any hesitation of bold
surroundings as we bring a pure eastern environment.

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  Ladies portion for taking cafes things will be separately provided according to the
eastern culture.
 Our café will be specially decorated by handicrafts.

Target Market

The town is known for its upscale business centers, urban shopping centers, modern
restaurants and a major sports complex. It is also known as the hub of the contemporary fashion
and cuisine industry in Pakistan.

Gulberg
Area 43.20 sq.km

Population 570864

House hold size 7.1

No. of U.Cs 15

No. of roads 2500

No. of household 80404

Our website will be available on internet i.e. www.cafecraft.com and our Facebook page
i.e. www.facebook.com/cafecraft. For this purpose we will maintain our website and or a
suggestion book so that customer can give their comments about our café.

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 Description

Technical knowledge

As we are opening a new cafe, we have many competitors and to compete with them we
require trained staff. Cooking and serving both are the techniques. We will employ only the
trained chefs and servers. They must be capable of using coffee and tea machines effectively and
efficiently. The staff should be able to use computer technology and net service to interact with
customers and to get their feedback through electronic media.

Our Competitor’s

We are opening a new café, so we have to face some direct and indirect café. I have taken
some names of café from city Lahore that would be our direct competitor’s i.e.

 Cafés & Coffee Houses

 Cafe Rock
 Chez Nur Bistro
 Hot Fuzon
 Peeru's Café
 Roasters
 World Fashion Café Etc.

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 Indirect Competitors
Our indirect competitors would be
 KFC,
 McDonalds
 Hardees etc.

And as far as the competitive advantage is concerned, we are offering a comfortable family
environment with eastern culture. Moreover we are promoting handicrafts for decoration.

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 SWOT ANALYSIS

CAFÉ CRAFT

 First mover advantage for

eastern environment
 Unique taste and quality
Strengths products.
 Customer oriented products and
environment.
 Platform for handicrafts.

Less awareness.
Weaknesses High marketing cost.
No franchising chain.

 Family Entertainment.
 Upcoming Trend of culture
Opportunities promotion.
 Modernization

 Direct competitors.
 Bargaining power of suppliers
Threats
 Economic instability
 Potential Entrant

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 Production Process

We are offering coffee, different flavors in tea, cakes and biscuits etc. So our production process
revolves around all these things:

Coffee Cofee
Fiting The Adding The
Making Ready After
Filter Ingredients
Machine Sometime

Coffee Making Process

First of all we will need a good coffee that we are importing from England. Coffee
makers are used to make good coffee. After coffee filter have been inserted the in its appropriate
location, 1 level scoop of coffee for each cup is added. After that one cup of water for every cup
of coffee is added. The number of cups of water added should be equal to the number of scoops
of coffee that are added. After that the fresh milk is added in a suitable quantity. And coffee gets
ready for serving.

Cake Production Process

Ingredient Icing and

Blending Filling Baking
mixing toping

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 Raw Materials

Coffee powder, liquid milk, powder milk, green tea, tea, flour, east, ginger, cardamom ,
basil , lemon and orange peel, raisins, dates, currants, figs, apricots, cherries, citron (the
preserved rind of the citron fruit, which is similar to a lemon), and pineapple Nuts include
walnuts, pecans, almonds, and pine nuts; broken piece, fats, sugar, salt, Ammonium Bicarbonate,
butter, flavors , emulsifiers, invert syrups, dough improvers, additives etc.

Suppliers of Coffee

 Tetra Pak, Lahore

 Poultry Farm Shekhupura, Sharqpur - Shahdara Road, Pakistan
 Hyperstar, Forteress Stadium, Lahore, Pakistan
 Metro cash and carry, Defence and Thoker NiazBaig, Lahore, Pakistan

Supplier of Craft
 Multan and Bahawalpur

Market Potential
According to the market survey, 70% families want to visit these café but due to the
western environment they hesitate to visit these places. In remaining 30% majority of families
rarely visit these café s but they want that type of café which has an eastern and family
environment. So, on the bases of our survey, there is a good potential of market for our café. We
believe, we will lead a good business in future.

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 Families Trend to Visit Café

2%

28%
families not visit café
families rarely visit cafe
70%
families regularly visit café

In this survey, this 2% includes young girls and boys of elite class families of city. Whose
are not consider culture and values in their lifestyle. So on the bases of our survey we think there
is a good market place and space for our café in the city.

Marketing Plan
Segmentation

According to our marketing plan, our target market comprises of youth and families. We
segment our market on demographic bases (age, family size, income level etc) and
psychographic bases (social classes, life style etc.).

Demographic segmentation

Demographic segmentation of our café is:

• Almost people of 18 to onward

• Middle and upper class.
• Gender is both males and females.
• Family size is 1+
• Family lifestyle is almost all.

Psychographic segmentation

Psychographic segmentation of our café is:

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• Social class- Upper and Middle class.

• Lifestyle is not specific.

• Personality is ambitious and authoritarian.

Product

We assure our customer that we will not compromise on quality and taste of our products.
We have superb coffee and different types of tea such as green and black tea. We also present
different kind of food items such as cakes, snacks etc. for our customers.

Price
According to the penetration satretegy of pricingour price is reasonable for customer, so
that middle class families can also visit our café and they can enjoy with their families. Our
pricing goal is profit earning as well as customer satisfaction.

Place

The location of our café would be in Gulberg at M. M. Alam road. Lahore's two major markets
both are located in Gulberg. The Main Market and Liberty Market are commercial hubs in
central Lahore, functioning as half bazaar and half shopping mall in appearance and layout.
Along the side of Main Market is the Canal Park Bazaar. Most of Lahore's major high-end
commercial districts are located within Gulberg, including M. M. Alam road, Gulberg Main
Boulevard, portions of The Mall Road Jail Road, Gaddafi Stadium and others.

Promotion

We use promotion pull strategy for promotion of our café. For this purpose we give
advertisement of our café on magazines, roads and in universities. We will distribute our
brochures in different places for the promotion of our café.

HR Plan
Management

In our café we will hire specially trained efficient and courteous employees and workers to build
an outstanding image of our café. Our chiefs will pay special attention to cleanliness and ensure
you a quality meal each and every time you visit here. And especially we will adopt electronic
devices to connect with our suppliers, for inventory management and resource planning. We will
maintain the IDR and ERP systems.

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Identify Expectations

Our managers will make their expectations very clear from the day an employee will be
hired. Managers should discuss all expectations for every job as well as every employee while on
the premises. For example, a manager can include the following in the list of expectations:

 Arriving to work on time

 Properly clocking in for and out of a shift
 Exhibiting proper cash handling practices
 Performing daily cleaning tasks
 Implementing customer service techniques

An employee manual or handbook will be included these expectations and policies for every café
employee. When the expectations and rules are clear, rewarding and disciplining employees is
easier and much more effective.

Reward System for Employees

Establishing a reward system can be very simple. When employees know the expectations,
they are able to perform accordingly and even exceed those standards. So, it increases the
satisfaction of the employee towards the work. For this purpose we will originated some rewards
for employees that is:

 Employee of the month award

 Special bonuses for special performance.

Dress Code for the Non Managerial Employees

The clothing and appearance of employees is a reflection of their professionalism and the
environment of our café. Employees will maintain a clean and well-dressed appearance while at
work. The required summer uniform for employees who interact with members will be:

For Man

 Black Suit
 Black shoes
 Red tie

For Woman

 Black Abayas
 Red scarf

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Dresses would be provided by the café management.

Special handicrafts available at our café

Every business wants to be successful with the aim of lowering the cost of interior decoration.
We use some handicraft in café decoration it is economical and looks more beautiful by giving
some cultural and antique touch to the café. Given is the list some handicrafts which are
available at café as well as online and will be provided you on demand.

Winds charm, Photo frame, Vass, Curtain, Jewellery box, Candle stand, paintings &
sceneries,Pouch, Cards, Soup cup, Coffee mug, Photo album, Napkin holder, Handmade
jewellery, Pencil box table mates, Wall papers and Key chains.

Market Expansion Plans

Initially we are opening one café in Lahore. But within 3 years we will raise this quantity
to 3 café in Lahore only. After that we will move to other cities of Punjab. Within 5 to 10 years,
we will have our café in other cities of Punjab such as Islamabad, Rawalpindi, Faisalabad and
Multan. So that our mission i.e. promotion of our eastern culture will be moved to its destiny.
We will also increase variety of our food items that will be served with tea or coffee.

Other Socio-Economic Benefits

 Employment Opportunities
 Benefits of Economies of Scale
 Training and Manpower
 Saving Foreign Exchange (Import Substitutes)
 Raising Living Standard

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 Financial Plan

CAFÉ CRAFT
PROPOSED BALANCE SHEET

CURRENT
ASSETS Rs. Rs. Rs. Rs.
Cash At Bank 500,000 545,000 606,800 655,004

Prepaid rent 1,200,000 1236000 1285440 1324003.2

Total Inventory 5,000,000 5,150,000 5,356,000 5,516,680

TOTAL CURRENT
ASSETS 6,700,000 6,931,000 7,248,240 7,495,687

FIXED ASSETS
Equipments&
machinery 1,303,000 1,327,090 1,360,174 1,385,979
Furniture &
Fixtures 656,300 660,989 667,429 672,451

NET FIXED
ASSETS 849,300 874779 909770.16 937063.2648
TOTAL ASSETS 9,508,600 9,793,858 10,185,612 10,491,181
LIABILITIES & STOCKHOLDERS' EQUITY

Accounts Payable 264650 272589.5 283493.08 291997.8724

Notes Payable 129,300 133179 138506.16 142661.3448

Bank Loan 1,600,000 1648000 1713920 1765337.6

TOTAL
LIABILITIES 393,950 405,769 421,999 434,659
OWNER’S EQUITY 9,114,650 9,388,090 9,763,613 10,056,522
TOTAL
LIABILITIES &
STOCKHOLDERS'
EQUITY 9,508,600 9793858 10185612 10491181

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 CAFÉ CRAFT
PROJECTED INCOME STATEMENT
5% 5% 5%
Growth Growth Growth
Jun-16 Jun-17 Jun-18 Jun-19
Sales Revenue 3000000 4500000 6750000 10125000
Less: Cost of Goods Sold 900000 1350000 2025000 3037500
Gross Profit 2100000 3150000 4725000 7087500
Less: Operating Expenses
Rent 300000 450000 675000 1012500
Salaries and
300000
Wages 450000 675000 1012500
Utility bills 300000 450000 675000 1012500
Miscellaneous expense 150000 225000 337500 506250
Total operating Expenses 1050000 1575000 2362500 3543750
EBIT 1050000 1575000 2362500 3543750
Interest 60000 90000 135000 202500
EBT 990000 1485000 2227500 3341250
Tax (20%) 198000 297000 445500 668250
Net Profit 792000 1188000 1782000 2673000

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 Appendix A
Details of Assets

1. Furniture and Fixtures :

Items Quantity Per unit cost Cost

Vass 10 3,50 3,500
Decorations - - 4,000
Table covers 10 1,000 10,000
Tables 10 4,000 40,000
Chairs 24 1,950 46,800
Fixtures - - 52,000
Total 156,300

Equipments:

Items No. Per unit Total

Cappuccino 2 Rs. Rs.
machines 25000 50,000
Baking plants 1 89,000 89,000
Tea makers 2 3,000 6,000
Oven 2 13,000 26,000
AC’s 2 195,000 390,000
Deep freezers 2 50000 100,000
Fridge 1 25,000 25,000
Computer 1 12,000 12,000
Cooking range 1 10,000 10,000
LCD 1 95,000 95,000
Total - -

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 Appendix B
Details of Salaries

Salaries expense:

Employee No. of Per Total cost

Workers employee
Chef 1 25,000 25,000
Assistant chefs 2 8,000 16,000
Receptionist 1 10000 10000
Waiters 3 7,000 21,000
Sweepers 2 6,000 12,000
Guard 1 8,000 8,000
Total 92,000

Partial Income Statement

For the month ended January 2015

Heads Rs.
Sales Revenue -
Less: Operating Expenses
Cost of goods sold -
Gross Profit -
Less: Non operating Expenses
Rent 100000
Salaries 92000
Wages 2000
Utility bills 30000
Miscellaneous expense 10000
Total non Operating Expense 234000

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 Appendix C
Details of Market Survey

Questionnaire
Age:
Gender:
Q1. How often do you hang out with your family?

a. Once a week b. Once a fortnight c. Once a month. d. Very rarely

Q2. How many times you visit café?

a. Once a week b. Once a fortnight c. Once a month. d. Very rarely

Q3. How many family members you have?

a. 2-3 b. 4-6 c. 7-9 d. above 9

Q4. What attracts you towards café?

a. Environment b. Eatables c. Management d. Staff Performance

Q5. With whom you enjoy visiting café?

a. Family b. Friends c. Both d. Alone

Any suggestions for improvement of Craft Cafe

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