Consolo, Joseph | Marchelletta, Hope | Suresh, Jaimin

BUSINESS PLAN
BIZ CAFÉ
 TABLE OF CONTENTS

EXECUTIVE SUMMARY...........................................................................................................2

BUSINESS DESCRIPTION........................................................................................................3

MARKET ANALYSIS...............................................................................................................4

MANAGEMENT AND OPERATIONS..........................................................................................5

MARKETING.........................................................................................................................6

FUNDING AND FINANCIAL PROJECTIONS................................................................................7

APPENDIX............................................................................................................................8

1
 EXECUTIVE SUMMARY

According to the National Coffee Association, 62% of people drink coffee daily, up from 57% in
the previous year. Despite the ubiquity of coffee shop chains, there are many single owner or
local small chain shops that are thriving, thanks to the growing “buy local” movement. Located
in the Downtown Area of Collegetown, OH, on Main Street, BIZ CAFÉ aims to cater towards
the businessmen, students, and local residents in the downtown shopping area. With a $25,000
start-up loan at 10% interest to manage the coffee shop, the team will be paying back the entire
loan with interest by the end of that one year to Jane Valdez (our investor).

Our coffee shop will hire two full-time managers to work weekdays; one will be required to
always be on site from one-hour before opening and one-hour after closing. If we decide to open
on the weekends, then a third manager will be required. Efficiency of the managers depends on
how much we pay and how we manage staff. Managers are employees that earn a working
minimum salary based on forty hours per week. Furthermore, we will make sure that all
employees are paid the same salary, respectively, in order to maintain equality.

To effectively reach clientele, our team will set a budget of 500 dollars to initially market the
café. Advertising and promotions will be focused online with web listings and mobile ads while
simultaneously running the ’50 cent off a cup of coffee’ promotion. These promotional strategies
will efficiently market the opening of the café. Once the café is thriving, adjustments will be
made to the marketing budget. 

2
 BUSINESS DESCRIPTION

According to the National Coffee Association, 62% of people drink coffee daily, up from 57% in
the previous year. Other statistics from the study include the largest one-year increase in past-
day espresso—jumping from 18% to 24%; and more than half of all cups of coffee consumed in
the past day were gourmet—59% in the past year vs. 46% five years ago.

The largest chain specialty coffee shops are Starbucks, Dunkin’, Tim Hortons, Costa Coffee, and
McCafé. Despite the ubiquity of these coffee shop chains, there are many single owner or local
small chain shops that are thriving, thanks to the growing “buy local” movement.

BIZ CAFÉ is located in the Downtown Area of Collegetown, OH, on Main Street, not far from
the business school and on the downtown pedestrian mall. With a $25,000 start-up loan at 10%
interest to manage the coffee shop, the team will be paying back the entire loan with interest by
the end of that one year to Jane Valdez (our investor).

Our marketing strategy is to cater towards the businessmen on their way to work or for a meeting
place; students going between classes and at night; and local residents finding the shop a great
place to meet friends or relax while they are downtown shopping.

3
 MARKET ANALYSIS

Based on market research, according to the National Coffee Association, 62% of people drink
coffee daily, up from 57% in the previous year. This is due to the fact that more of the younger
generation seem to be looking for a ‘coffee high’. Bill Murray, NCA president and CEO said, “A
steadily growing taste for gourmet varieties is also driving a wider trend toward specialty
beverages.” It was also reported that espresso has the largest percentage increase as it went from
18% to 24% compared to the previous year, and more than half of all cups consumed in the past
day were gourmet- 59% in the past year whereas five years ago it was at 46%.

Starbucks is the largest chain specialty coffee shop, having more than 26,000 locations
worldwide. Dunkin’ follows having 12,000 locations. Tim Hortons is third with around 4,500
locations. Costa Coffee is fourth having 3,400 coffee locations. Finally, McCafé, owning
around 1,300 locations. Even though coffee chains are popular, coffee shops owned by sole
traders and local small chain shops especially due to Fairtrade using locally sourced ingredients.
Not only do small coffee shops provide high quality coffee for a reasonable price, but also act as
a place to network and socialize, which attracts additional consumers.

This comes in handy as one potential location is on Mainstreet which is not far from the business
school and is on the downtown pedestrian mall. Students will be able to go to the coffee shop
between classes or after school as a place to relax after a long day. This location will also attract
those around the local pedestrian mall, which after a long day of shopping, customers will be
able to come to the coffee shop to regather some energy used.

The store front would be between the ‘Salamanca Restaurant’ and ‘RC Fox Women’s Clothing’,
a high-end independent retailer. The coffee shop would also be near ‘Readerwise Booksellers’
an independent bookstore which has been in business over twenty years. Based on the
information we gathered; this is an upscale neighborhood. A high-end design whilst maintaining
a low price. By doing this we will be catering to everyone in the area such as those at the fashion
boutique store and the students studying at the local business college.

4
5
 MANAGEMENT AND OPERATIONS

Our coffee shop will hire two full-time managers to work Monday through Friday. One manager
will be required to always be on site from one hour before the shop opens until one hour after the
shop closes. If we decide to open on the weekends, then a third manager will be required.

Also, the efficiency of the managers depends on how much we pay them and how we manage the
staff. Managers are employees that have a salary and work a minimum of forty hours per week.
Furthermore, we will make sure that all employees are paid the same salary, respectively, in
order to maintain equality.

6
 MARKETING

In efforts to effectively reach potential clientele, our team will set aside a budget of 500 dollars
to initially market the café. Our advertising and promotions will be focused online with web
listings and mobile ads. We plan to simultaneously run the ’50 cent off a cup of coffee’
promotion with the online ads. This promotion, along with the online advertisements and flyers,
will efficiently market the opening of the café. Once the café becomes profitable, adjustments
will be made to the marketing budget. 

7
 FUNDING AND FINANCIAL PROJECTIONS

Predicted Sales of Medium Cups of Coffee

Week Price Cup Sales Per Week 6-Week Revenue

1 $3.40 850 $2,890

2 $3.40 950 $3,230

3 $3.40 1020 $3,468

4 $3.40 1050 $3,570

5 $3.40 1100 $3,740

6 $3.40 1150 $3,910

Total $20,808

8
APPENDIX

9
10