DEBRE TABOR UNIVERSITY

Department of Computer Science

Project ON

Café business plan:

Group Assignment

SUBMMITED By: GROUP-II STUDENTS

NAME ID
1.MELKAMU
ABERE..........................................................................................OO55/0
7
2.FANAYE
YIRGA….......................................................................................0037/07
3BITEW
WUBTE ............................................................................................0017/
07
4.REDIET
TILAHUN.....................................................................................0063/07
5.BETHELHEM
WASIE....................................................................................0201/07
6.BIZUAYEHU ANIMUT…………………………………2325/08
7.TSEGANESH ABEBAW………………………………….0219/07
Submitted to :Mr Yigermal
Submitted date: dec 2009
Content of table:
I. Introductory Page
A. Name and address of business
B. Name(s) and address(s) of principles
C. Nature of business
D. Statement of financing needed
E. Statement of confidentially report
II. Executive Summary
III. Industry Analysis
A. Future outlook and trends
B. Analysis of competitors
C. Market segmentation
D. Industry forecasts
IV. Description of venture
A. Product(s)
B. Service(s)
C. Size of business
D. Office equipment and personnel
E. Background of entrepreneurs
V. Production Plan
A. Manufacturing process (amount sub contracted)
B. Physical plant
C. Machinery and equipment
D. Names if suppliers of raw materials
VI. Marketing Plan
A. Pricing
B. Distribution
C. Promotion
 D. Product forecasts
E. Controls
VII. Organizational Plan
A. Form of ownership
B. Identification of partners or principal share holders
C. Authority of principals
D. Management-team background
E. Roles and responsibility of members of organization
VIII. Assessment of Risk
A. Evaluation of weakness of business
B. New technologies
C. Contingency plans
IX. Financial Plan
A. Pro forma income statement
B. Cash flow projections
C. Pro forma balance sheet
D. Break-even analysis
E. Sources and application of funds
X. Appendix
A. Letters
B. Market research data
C. Leases or contracts
D. Price lists from suppliers
 I. Introductory
The following document is a sample of a finished business plan. In our final plan, we
have the opportunity to elaborate on those ideas in our outline that we feel are most
integral to our business. In composing we business plan, we can follow our outline as
loosely or closely as we choose. For instance, in the sample plan, the Executive
Summary, which is the last section of the Business Planning Wizard, is presented first in
order to emphasize the most impressive features of the business. Our goal in composing
a finished business plan is to construct the most comprehensive, thorough document
possible, in order to attract investors and to confirm that you have taken the time to
explore as many potential issues for your business as may arise.
Java coffee shop is registered as limited liability corporation in Debre Tabor city. It is a shop located in
Debre Tabor university specifically in “farta” lounge that sells coffee and other beverage. Java coffee
shop’s major investors are Melkamu, Bitew,Fanaye, Bethelihem, Bizuayehu,Rediet. All of the this group-
2 own equal present of the shares.

a. Name and address of our business

Name and address of our business is café business plan and its address in Debretabor city

Specialy in ’’farta’’ .

b. Name and address of principles

The Russet Cup is committed to values such as excellence, passion, quality, integrity and
leadership which allow them to navigate challenges and provide for future opportunities.
These core beliefs start with their commitment to their products and their employees.

c. Nature of business
The Russet Cup rewards excellence and cherishes loyalty. The café will work with its
employees to build strong businesses and a secure future.
d. Statement of financial needed
The Russet Cup measures its financial success in terms of increased market share
and in earnings. With a total local market of 100,000 birr, this is a tremendous
 opportunity! The keys to success will be the ability to offer quality gourmet coffees,
take advantage of its small size.

e. Statement of confidentially report

The Russet Cup is committed to its products and employees which they believe is
the recipe for market success.

II. Executive summery

The Russet Cup will be a one of a kind coffee house / café located in debretabor city. The Russet
Cup, aptly named for the aromatic brown liquid that will fill the cup, fills the void of original cafes in
the market area, stands out from its corporate peers with their fast food concepts and fast services.
The Russet Cup is the alternative to fast food/commercial/coffee shops and offers a much calmer,
civilized gourmet coffee experience. There are no televisions in the café, the background music is
subtle

The Russet Cup measures its financial success in terms of increased market share and in earnings.
With a total local market of 10,000 birr, this is a tremendous opportunity! The keys to success will
be the ability to offer quality gourmet coffees, take advantage of its small size. In order to achieve
these goals, the café will offer some the area’s finest gourmet beans from local distributors.
Because of its small size, the café can enjoy larger margins in the form of lower overhead.

III. Industry analysis

a. Future outlook and trends
Unique products (specialized roasts, local ingredients, locally themed or named
drinks, custom drinks by the‘star’ barista, etc.)
Games, puzzles, mind benders and other activities that encourage customers to
linger over their coffee
Hosting or sponsoring local events (entertainment, readings, book clubs, etc.)
Using technology to creatively compete in marketing with the big chains — services
like FourSquare, Yelp, and Google Places can increase visibility in the local market.
Delivering amazing service from knowledgeable baristas — spend lots of time
training staff and utilize online services like the American Coffee & Barista School
Selling coffee-related items (and track down any co-marketing opportunities with a
local community college or other student-related group in the area)

b. Analysis of competitors
Consumer taste and personal income drive demand. The profitability of individual companies
depends on the ability to secure prime locations, drive store traffic, and deliver high-quality
products. Large companies have advantages in purchasing, finance, and marketing. Small
companies can compete effectively by offering specialized products, serving a local market, or
providing superior customer service. Specialty eateries, which include coffee shops, are labor-
intensive: average annual revenue per worker is about 50,000 birr. Coffee shops compete with
businesses such as convenience stores, gas stations, quick service and fast food restaurants,
gourmet food shops, and donut shops.
c. Market segmentation
The Russet Cup is targeting the three top segments of the population representing
more than 39% of the population in the Debretabor population and university
students:

d. Industry forecasts
The sales forecast assumes a conservative 5% increase in revenues during Year Two
and 10% increase in Year Three. The following chart shows estimated sales over the
next three years.

IV. Description of venture

a. Products/Services

The Russet Cup’s primary offering is gourmet roasted coffees with such varieties such as
mocha, carmelicious, white mocha, candy bar latte, and brewed coffee. Complementing
the coffee will be a smoothie line including wild berry, strawberry, peach, mango and
lemonade. Rounding out the simple menu line will be pastries obtained with an outside
supplier, freshly made and delivered daily. The pastry offerings may vary with seasonality
but the primary line will muffins, breads, cookies, scones, and rolls.

a. Size of business
The Debretabor coffee shop industry includes about 3 stores with combined
annual revenue of about 5000. Major companies include Coffee, International
Coffee & Tea (The Coffee Bean & Tea Leaf), Pet’s Coffee, and Starbucks

b. Office equipment and personnel

Initially the café will hire 1 manager, 2 baristas, and 1 part time servers. In Year 2, the
café plans to hire 1 additional full time barista.

Table : Personnel Plan

Position Year 1(birr) Year 2(birr) Year 3(birr)
Manager 70000 8000 8500
Full baristra 5000 5500 6000
Full baristra 5000 5500 6000
Total 17000 19000 20500
 c. Background of entrepreneurs
The primary background of the business plan for Russet Cup are below:
 To increase revenues by 5% in Year 2 and by 10% in Year 3
 Achieve a profit margin of 5.2% in Year 2 and 6.90% by Year 3

V. Production Plan
a. Manufacturing process (amount sub contracted)
First we prepaire the coffee powder by mortar.
We boil the water and add the powder , spice and sugar
We wait for some minute and supply to our customer.
b. Physical plant
Coffe
Sugarcane
Spice tree
c. Machinery and equipment
Boiler ………….5000birr
Stove ………7000birr
Phermooth…….1000birr
Mortar…………1000birr

d. Names if suppliers of raw materials

Coffee
Cup
Chassis
Coffe pot
Spice
sugar
VI. Marketing Plan
The café will also rely on signage and draw to its location. Price Chopper brings 3
shoppers weekly to its location.

a. Pricing
The Russet Cup primarily utilizes competition based pricing. The café does not utilize
coupons and discounts (other than opening promotion) because they believe that the most
valuable customer demographic of daily coffee consumers is not influenced by discount
programs or coupons.
b. Distribution
 The Russet Cup utilizes a focus strategy on its market. By specifically targeting three primary
position they can cater specifically to their needs such as Senior Market (age 45+), Newly Hired
Employees, Young Families

.
c. Promotion
Online Advertising - The Russet Cup will advertise regularly on popular social media
sites, such as Facebook. Compared to traditional print advertising, this is a cost
effective tactic that will allow them to reach prospects in a highly targeted way (e.g.,
based on criteria such as age, gender, geography, etc.).
Web Site - the Russet Cup will develop a simple Web site, which will provide basic
information about the business, the menu, and links to their presence on the
aforementioned social media channels.
Radio Advertising - During the first six months of operation, and during the busy
holiday shopping season, the business will advertise on local radio stations.

d. Product forecasts
We will expect our product is very nice and it will attractive the users or customers.
e. Controls
Our plan is controlled by group-2
VII. Organizational Plan
a. Form of ownership
The Russet Cup will be owned 100% by Owen by group 2 student. When we are
graduate in Debretabor University we will start. During high school we worked as a
waiter in a local hospital coffee shop that purchased its beans from a local roaster. In
addition to being an avid coffee drinker himself, this job allowed him to learn about the
business first-hand.

b. Identification of partners or principal share holders

The share holder are
1 family
2.whole teams or group our itself

c. Authority of principals
Should be respective each other
all workers arrive on time on the working area
should give good supplier for customers and soon
d. Management-team background
We are universities student we will graduate in dtu in next year and also after graduate
We start this business plan with in team
e. Roles and responsibility of members of organization
Should be responsible man to achieve our goal
And also we have to hard worker and we have different responsibility
1. managemet
 2. raostering
And different responseblities included
VIII. Assessment of Risk
a. Evaluation of weakness of business
The weakness of this our business is may customer deficiecy
b. New technologies

1. Boiler
2. Stove
3. Phermooth

c. Contingency plans
For emergency
For different accident
For compenticy case
IX. Financial Plan
a. Pro forma income statement

Pro forma profit Year1 Year2 Year3

Income
Total income 100000 150000 200000

b. Cash flow projections

The statement of cash flow shows the incoming and outgoing cash of the business.

Pro forma cash flow Year 1(birr) Year 2(birr) Year 3(birr)
Beginning cash balance 10,000 30,000 60,000
Cash flow
Incoming from flow sales 70,000 80,000 90,000
Accounts receivables - - -
Total inflows 70,000 80,000 90,000
Total cash outflows 67,000 65,000 70,000
Operating cash balance 30,000 60,000 70,00

c. Pro forma balance sheet

Table Pro Forma Balance Sheet

Profoma balance sheet Year 1 Year 2 Year 3

Asses
Current assess
Cash 4000 5000 6000
Amounts receivable 0 0 0
 Inventory 0 0 0
Equipment 2000 2000 2000
Prepaid expenses 1000 1000 1000
Other current 2000 2000 2000
Total current assess 9000 10000 11000

d. Break-even analysis

net Net Fixed Variable Total Cost Total

Units Revenue Cost Cost profit
0 0 40,000 0 40,000 -40,000
1000 5000 40,000 1000 41,000 -35,000
3000 10,000 40,000 1000 42,000 -23,000
8000 20000 40000 2000 44000 3000
10000 25000 40000 1000 45000 37000
20000 30000 40000 2000 47000 85000
6000 110000 40000 2000 49000 100000

e. Sources and application of funds

Source fund Birr

Owners injection 3000
Commercial loan 2000
Family 50000
Toltal source fuds 100000

X. Appendix
a. Letters

b. Market research data

c. Leases or contracts
d. Price lists from suppliers