UNITY UNIVERSITY

Inter-office Memo
__________________________________________________________________________

Date : July 5, 2021

Ref. No : _________

To : Business Development
Unity University,

From : Enterprise Coordination

Subject : Re – Opening The Cafe Service :

We recall the direction given in the top management meeting held on June 14, 2021 regarding the
re – opening of a cafe service in Alamudi Campus, Gerji and Burayu.
We have worked through it and have proposed the issue as attached with this memo.
This is , therefore, to request your approval and notify to all concerned departments in the
implementation of the proposal.

With respects,

___________
Bedilu Assefa
Enterprise Coordinator

enc : 4 pages
 Date : July 5 / 2021

Re – Opening The Cafeteria Service

1. Introduction :

A request for cafeteria service , where tens of thousands of students and their instructors are around, is
an appropriate request that should be addressed.
As a result, re – opening the service with special arrangements and at least with a break even sales
could be a possibility that would address the demands of the students , and the staff.
With these thoughts in mind, the service is proposed to be re-opened with new arrangements, where
packed food and bottled soft drinks could be served in the Gerji campus , and the Burayu Cafeteria will
also be re- established with new arrangements.
The re – opening of the cafe services might allow the campus environment to be more friendly, and
students and other staff members will get a chance to benefit from the food and drink during their stay
in the campus.

2. Brief Description :

The services will be of two types. A cafeteria which can serve light foods and beverages at Burayu
campus , and a shop like service at Gerji , Alamudi camous , where simple packed food like chips,
biscuits , packed water and soft drinks will be sold .

2.1 The Burayu Cafeteria :-

As a start up , the Burayu cafeteria is proposed to give the serve with three employees ,
. A team leader , ( who will coordinate all the activities, and provides the local supplies )
. A cook
. A bartender.
Tea and coffee, soft drinks , packed water , light foods like spaghetti (pasta) , macaroni, sandwiches,
samosas , salads like bread with potato and the like , will be prepared for sale.
The customers are expected to include employees from the printing shop, the clinic , the pharmacy, the
stores division, the academy and others.

2.2 The Gerji Cafe shop :-

It will be a shop like sales service from a single selling point , where there will be no cooking
activities , and no dining area or seats. It will be like a-take-away service. Only packed food , like
different kinds of packed biscuits, chocolates, chips,Samosas, soft drinks and packed water , and the
like will be provided for sales.
Two employees will be assigned for the tasks, and they are :
. a lead sales person , who will be in-charge of the service ,
. an assistant

2
3. Work Station :

3.1 The Burayu Cafeteria :-

The previous cafeteria house with all its facilities , fittings and fixtures (the bar and the kitchen
equipment, furniture, kitchen utensil, and the like) is proposed for the service.

Since the cafeteria was closed down due to the COVID 19 , and was used for some other purpose , it
might need some repair and maintenance works. Furniture and equipment of the previous cafeteria
would be needed for the new arrangement. Other non- cafeteria materials which were stored in the cafe
and the kitchen during the closeouts , need to be moved out as early as possible .

3.2 The Gerji Cafe / Shop :-

The cash room of the previous cafeteria is proposed as an ideal place that could serve for the new
cafe/shop. There will not be any sitting arrangements for the customers . It will only serve as a take-
away service. Furniture from the previous cafeteria, like shelves, table and chair might be used for the
shop. The dining hall and the kitchen will remain closed till some other decision is made by top
management.

4. Staff :
As stated above in 2.1 and 2.2, all the employees needed for the two services are proposed to be
assigned from the previous employees and they need to be pulled out from their current assignments.
There is no need to hire new employees.

5. Operations :-

The cafeteria service at Burayu will be a limited service at the beginning, where light meals and non-
alcoholic beverages will be served and would be expanded along with the market demand.
The team leader will be responsible for the overall supervision and coordination of the cafeteria’s
operational activities. His tasks would include the purchase and supply of of perishable foods ( like
vegetables , meat , egg , bread) from the local market at Burayu.
The operation , in general , will include :-
• purchasing and storing raw food materials,
• preparing the food and the beverages,
• making the sales. (ie :-serving the customers).
Bulk purchases could be made by the Materials Management, as per the request of the cafeteria, and
fresh and perishable food items ( meat, eggs, vegetables, bread, etc) need to be purchased from the
local market at Burayu.
Arrangements as to how the supplies (food stuff and bottled soft drinks) will be provided and how the
sales will be conducted need to be worked out with the consultation of the Resources Management
Department and a clear procedure is expected to be laid down.
The Gerji shop’s operation will include purchasing , storing and sales only. All the supplies would be
provided by the materials management department.

3
6. Financial Issues :-

Although the cafes nature is profit oriented , the aim of the operation would be to work with low
operating costs, and towards to a break even operation.
The pricing method suggested would be a percentage mark-up pricing. Therefore, as a start-up, the
selling price is proposed as the food cost ( ie : the cost of materials used in producing the foods sold ,
the labor cost and the overheads ) , plus a mark-up of 30 % .

The start up price list of the major service is listed below.

Items Unit Current price Estimated Margin Proposed

measure average of food cost % selling
competitors price
1. Burayu Cafeteria :

1.1 Light Foods :

. Spaghetti (pasta)
. Macaroni
. Meat Sandwich
. Egg Sandwich
. Potato Salad (with bread)
. Samosa
. Chips

1.2 Beverages :
. Tea
. Coffee
. Soft drink
. Packed water

2. Gerji Cafe / Shop :

. Packed Biscuits
. >> Chips
. >> Chocolates
. Chewing gums
. Candies
. Soft drinks
. Packed water

4
7. Implementation :

Ones the proposal is approved, and a go ahead is instructed, an implementation plan will be made
and the work will start as per the plan.
The various departments , like the Resources Management and the Ancillary Service , are the major
stakeholders that play key roles in fulfilling the implementation plan .

With Respects,

5
6