Tana Cafe

Business plan on tana

caffe
Tazeb Abriham
IDUGR/7651/13
Section 7
Advisor:-Ins. Ousman S.
Date, AAU, Addis Ababa

Tana caffe
TABLE OF CONTENTS page No
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 1.0 Executive

Summary................................................................................................................. 3
1.1 Business Objectives .....................................................................................................................1.2
Mission Statement..........................................................................................................................4
1.3 Guiding Principles............................................................................................................................5
1.4 Keys to Success................................................................................................................................5
2.0 Company Description ............................................................................................................. 5
2.1 Ownership .........................................................................................................................................5
2.2 Legal Form........................................................................................................................................6
2.3 Start-Up Summary .........................................................................................................................6
2.4 Location and Facilities ...................................................................................................................7
3.0 Products/Services ................................................................................................................ …..7
3.1 Products/Services Descriptions .....................................................................................................7
3.2 Competitive Comparison ...............................................................................................................7
3.3 Product/Service Sourcing...............................................................................................................7
3.4 Future Products/Services...............................................................................................................7
4.0 Market Analysis ....................................................................................................................... 8
4.1 Industry Analysis ..............................................................................................................................8
4.2 Market Needs...................................................................................................................................8
4.3 Market Segments ............................................................................................................................8
5.0 Marketing Strategy and Implementation ............................................................................. 9
5.1 SWOT Analysis ................................................................................................................................9
5.2 Strengths ...........................................................................................................................................9
5.3 Weaknesses......................................................................................................................................9
5.4 Opportunities ...................................................................................................................................10
5.5 Threats ..............................................................................................................................................10
5.6 Strategy Pyramid.............................................................................................................................10
5.7 Positioning Statement ....................................................................................................................10
5.8 Pricing Strategy ...............................................................................................................................10
5.9 Promotion and Advertising Strategy...........................................................................................11
6.0 Management summery ...............................................................................................…………11
6.1Personnel Plan..................................................................................................................................12
7.0 Financial Plan........................................................................................................................... 13
7.1 Important Assumptions .................................................................................................................13
7.2 Start-Up Funding ...........................................................................................................................13
7.3 Projected Profit and Loss..............................................................................................................15
7.4 Projected Cash Flow......................................................................................................................16
7.5 Projected Balance Sheet.........................................................................................................…….16
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 7.6BusinessRatio...................................................................................................................................16
8. Appendix ....................................................................................................................................…….17
9. Summary ……....................................................................................................................................17
10. Key term.......................................................................................................................................….18

11. Founder of the plan.......................................................................................................................19

Table of Project Summary

PROJEC Tana cafe Business Plan

T NAME
Project Objectives Create a quality-based service that
exceeds customers' expectations,
and increases the number of repeat
clients serviced by at least 30% per
year, through superior performance
and word-of-mouth referrals.

Project servic delivery Capacity The cafe is expected to serve for about 54
customers per day.

product Types Food items

Hot drinks
Soft drinks
Snacks
Project’s Area coverage Robe and the surrounding dwellers
To provide Arada residents and visitors
with an upscale cafe service and
Features of the project specializing in a combination of quality,
authentic food items from around Bahir
dar
Project Implementation and Commencing Date Mid of 2013 E.C

Project Place Bahir dar

Project Promoter Tana cafe

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 1.Executive Summary
Tana Cafe will be a one of a kind of hotel located in Bahir dar
Ethiopa, It was found Bahir dar that is provides the service(,soft
drink, snack, hot drinks ,etc..)

The Cafe features a full menu of moderately priced ‘comfort‘food.

The Tana cafe is owned and operated by Mr.Tazeb Abirham, he
is 100% owner of the Tana cafe

In Tana Cafe there are televisions, chair, glass, spoon, plate, sitting
areas, with comfortable services and etc.

Tana Café measures its financial success in terms of increased

market share and in earnings. With a total local market of
10,000 birr per Months this is a tremendous opportunity!

Tana Café is committed to its products and employees which they

believe is the recipe for market success. This café want to
increase the total revenues of the business per year the café
manager imagine that the business will be changed into large
and more attractive because it has good income per months.

1.1 Business Objectives

The primary objectives of the business plan for Tana café are listed below:
To increase revenues by 5% in Year 1, and by 10% by Year 2 ,and 20% in year 3

Achieve a profit margin of 5.2% in Year 1 and 6.90% by Year 3 and 7.5% in year 3

To be the number one Choice café around Bahir dar University area and punctual café that
makes it different café from other café.

High-quality service with a reasonable price.

The creation of an exclusive, stylish, innovative environment that

will distinguish Tana Café from other café.

The creation of a comfortable and casual environment that will

bring people with different interests and backgrounds together
for socialization

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1.2 Mission Statement
The Tana café is committed to its products and employees which
they believe is the recipe for market success
It provides the high-quality food and beverages in a comfortable
environment.
People from different backgrounds will come to enjoy the exclusive,
stylish, and innovative environment that Tana Café offers.
1.3 Guiding Principles
The Tana café 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.
It rewards excellence and cherishes loyalty. The café will work with
its employees to build strong businesses and a secure future.
1.4 Keys to Success
The Tana café stands out for the competition. Keys to Success are listed as follow:

Great Products – providing exemplary products at market prices – will make

customers want to return again and again
Hire Quality Barista’s – Pay employees rates similar to the larger chains with
opportunities for long term careers and opportunities for advancement with long
term plans to open a second facility
Convert Customers to Connoisseurs-only 50% of Tana café is consumed
byAddis Ababa university students- this will aid in continued growth means
other are consumed by local community.

Café Description
Tana Cafe will be a one of a kind cafe house / café located in Bahir
dar Ethiopia ,in around Bahir dar University.

The café is provides the service: like hot drink, soft drink, food and
snacks for customers.
The café is owned and operated by Mr.Tazeb with several years’
experience running and managing.
The café will be open seven days per weeks.

2.1 Ownership
The Tana cafe will be owned 100% by Mr.Tazeb, his a student of Addis Ababa University.
In the university, he worked in a campus coffee house for four years and then
he take entrepreneur course then he decided to start him own individual
works.
1.Tazeb Abriham (manager of Tana
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 caffe)
2.Meron Regasa (chief )
3.Yordanos Aychiluhm (Casher)
4.Siraw Esubalew (waiter)
2.2Legal Form
Our services and processes cannot be patented or trade-
marked. We are currently incorporating Tana café
Services.
2.3 Start-Up Summary
Tana café will have seating for 80 patrons (customer) and it consisting dining room, a cooking
room, two restrooms, and a storage room in back. To be used as a restaurant, this storefront
needs to be plumbed and wired appropriately.

Start-up expense details:

Ser. Types Unit of Qua. Unit Total cost
No. equipment measurement cost
1 Glass Dozen 8 120 960 birr
2 Spoon Dozen 9 36 324 birr
3 Plate Dozen 9 216 1944 birr
4 Bench 1 50 50 birr
5 Chair 10 80 800 birr
6 Shelf 1 60 60 birr
7 Pocket(baled) 4 40 160 birr
8 Container/box 15 40 600 birr
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 9 Table 15 50 750 birr
10 Machine 2 4000 8000 birr
11 Refrigerator 2 3000 6000 birr
12 Knife 3 16 48 birr
13 Pan(filter) 1 500 500 birr
Total cost ………………………… …..... ………. 20196
birr
All these goods are kept properly as possible but when the damage occurred on
any goods, it replaced by its allocated budget.

2.4 Location and Facilities

Tana café located at infront of Bahir dar University in on the main road and because of this
the café is located on suitable place for market

3. Products/Services
3.1Products/Services Descriptions
Tana café provides a lots of service for customer like
Hot drink like (tea, espriss, coffee, babuna, qishir, Safi).
Soft drink like (Coca-Cola, sprite, Fanta, Miranda,etc).
Food like (beyaynet, pasta, raise, macaroni, fir-fir, bread,) and
different snacks
3.2Competitive Comparison
The research methodology is based on unique cafes in the greater metro
area and omits larger chains or franchises. The finding several three unique
competitors. They are located around this café
i.e. they are not far more than one kilometer from this café those are
Amsale bar
Bahir dar café
Network café.
Among this competitor Tana café is the most attractive in terms of both quality
and quantity of service.
3.3Product/Service Sourcing
Tana caffe will negotiated the supplier agreements with several local food-service whole
sellers.
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This café has good and regular relationship with the suppliers of the row materials such as
milk, flour, potato, tomato and many more as planned.
In the event that one of the aforementioned specialty suppliers cannot meet their needs, the
national suppliers can provide all of the food-service products that they require.
3.4Future Products/Services
The Café houses traditionally have not been considered ‘kid’ friendly. To
overcome this hurdle, the selam café has long term plans (3years) to open a
2nd café. Additional future services will include in-store sales for home
purchase.

4.0Market Analysis
The main goal of this business is to make a profit by providing
services. To achieve this however, certain requirements have to
be met,
What is the average price?
How can a profit be achieved?
What does the market want?

We have carefully priced our product, take care to insure we remain competitive but also turn
a good profit. Tana café have been researched, both generally and locally.
Our competitor research has encompassed pricing, sampling their product and experience,
customer service and observing their businesses in term of item soled.
4.1 Industry Analysis
The restaurants industry within the Bahir dar is set to increase by 15% per year as
the population increase from time to time the industry also increased to accomplish
the customer need and wants.
4.2 market needs
The community around Bahir dar University needs a cafe since there is a small
amount of cafe’s present in this area.
When there is few café the society will not successful, so that the café user will
thanks this café.

4.3 Market segmentation

Since our cafe is situated in Bahir dar city in Ethiopia, Therefor we can state and use
the population pyramids to predict the amount of Customers that would be suitable
for our market, by looking at the Average growth and applying this to the market, we
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can predict how many customers we will get.

As we can see, mainly the age groups between 15 and 40 have the largest growth. This
is our main target market; therefore we can make an estimated growth of about 1.7%
customers per year. We make an assumption of around 505 customers a year, mainly
being university

Market analysis
Potential customers growth Year 1 Year 2 Year 3
University students 3% 500 550 700
Community 2% 250 300 320
Seniors 4% 600 740 800
Trader 1% 100 150 200
Others 0% 600 600 600
Total 2.48% 2050 2340 2620

5.0 Marketing Strategy and Implementation

Tana café has the following main strategies :
The first strategies focuses on attractive of the user by
providing good service in terms of both quality and
quantity

The Café will fill the great avoid providing originality in a sea
of facsimile. The café’s baristas will be extremely
knowledgeable and offer assistance in any purchase while
simultaneously providing customers with outstanding
service.
5.1 SWOT Analysis
The SWOT analysis examines the café’s strengths and weaknesses that need to be
addressed. Further, this section examines the opportunities presented to Café as
well as potential threats.

5.2Strength
The owner has firsthand experience, in operating and starting
new cafe,
It provides seven day per week services
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 It provides both quality and quantities of user items
It provides good and service in moderate price
5.3Weaknesses
Besides the strengths each company/business has its own weaknesses. Weakness can
lead to a decrease of a company's success and development.

It is not provides Wi-Fi for the users

At a time it is not invite more than 80 users

5.4 Opportunities
As any other organization Tana café has its opportunities. Having certain
opportunities offers an organization a possibility to expand their turnover.

It provides a job opportunity for the people those who have no

job
The Addis Ababa population which is requiring access to the
café services is slowly increasing. This increase of café
users should offer the café a chance to expand the business.
The possibility of a rising demand in the market. This raise
would be the outcome of the growing popularity under the
inhabitants.

5.5 Threat
Tana cafe will be one of a few cafe located in the city of Addis Ababa around the
university.
However the café will face certain threats which can cause a
Slight decrease in its popularity in the market.

The increase of cafe’s at a local scale. When the consumers get

the opportunity to choose from a variety of offers the
amount of customers will probably decrease.

5.6 Strategy Pyramid

In the short-term, a number of promotions and activities are
planned around launch of the business to create awareness.
Tana café will have a contest offering 20 bottomless mugs and will publicize this
promotion via poster advertising, as well as countertop displays.
In addition, during its first year of operations the Tana café will pass out a limited
number of coupons for a free cup of coffee, tea, milk, etc.
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To prospective customers visiting the café center.

5.7 Positioning Statement

It is truly one of a kind coffee house offering outstanding
gourmet coffees and blends, served by enthusiastic and
knowledgeable baristas, in a warm, relaxed environment.
Tana cafe have position statement “Refresh your mind in
Tana café”
5.8Pricing Strategy
Tana café 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.

5.9 Promotion and Advertising Strategy

Tana café Business will be promoted as the small business support customers for café
solutions, and “REFRESH YOUR MIND IN TANA CAFE”
Here are some of the ways we will promote our service:
Local newspaper advertising (3,000)
Community bulletin boards (free)
Opening specials promoted through hand-bills and flyers (400)
Direct sales
Direct mail (1,600)
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 Store front signage (included in leasehold improvements)
Frequent user program (see sales discounts in financial
statements)
Total cost for advertising and promotion: 5,000 birr in the first year

6. Management summary

Tans cafe itself does not require a lot of employees. Therefore the organizational
structure isn't too complicated. In this section the intended future organizational
structure is further explained.

6.1 Personnel plan

Tana-cafe requires just a handful of employees in order to function. Totally the Tana
cafe will count a staff of at least 8 person These 8 can be divided in two groups. At first
there will be 2 employee which will be spending his/her time to provide service (i.e.
cooking) for customers and 1supporter (command acceptor) of employees in café .

Shortly we can describes as this table

Year Personnel plan Monthly salary

1st year Employee 2 1000 birr
Supporter of employee 500 birr
1
Total 30,000 birr per year

Year Personnel plan Monthly salary

2nd year Employee 2 1200 birr
Supporter of employee 600 birr
1
Total 36000 birr per year

Year Personnel plan Monthly salary

3rd year Employee 3 1300 birr
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 Supporter of employee 2 800 birr
Total 66000 birr per year

7. Financial plan
The financial plan will cover the following:
Required Cost of Start-Up
Profit and Loss
Cash Flow
Balance Sheet
Financial Ratios

7.1 Important Assumptions

The sales forecast is conservative and assumes a 5% increase in Year 1, and a
10% in Year 2 and 20%in year 3.
Moderate ramp- up in staff over the 3 years forecast.
In general, Selam cafes have an 85% gross profit margin
In general Selam cafes have a 3% net profit margin

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7.2 Start-up funding

Ser. Product/service Unit quantity Unit Total

No. to be sold, price price
marketed/year
Year 1 Tea Cup 500 3 1500
Coffee cup 600 6 3600
Espress cup 500 6 3000
past 250 20 5000
Bread package 500 5 2500
Rise saxin 500 15 7500
Fanta saxin 50 250 12500
Coca-Cola 100 250 25000
Total sales 60600
Year 2 Tea Cup 800 5 4000
Coffee cup 750 6 4500
Espress cup 600 22 13200
past 400 25 10000
Bread package 800 8 6400
Rise saxin 700 20 14000
Fanta saxin 80 300 24000
Coca-Cola 150 300 45000
Total sales 121100
Year 3 Tea Cup 1000 6 6000
Coffee cup 800 7 5600
Espress cup 700 25 17500
past 500 25 12500
Bread package 1200 9 10800
Rise saxin 800 23 18400
Fanta saxin 90 400 36000
Coca-Cola 200 350 70000
Total sales 171400

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 7.3 project profit and Loss

For first year

Profit =Total sale – Total cost
=60600-(20196+30000)
=60600-50196
=10404 birr
For second year
Profit =Total sale – Total cost
=121100-36000
=85100 birr

For thirdy year

Profit =Total sale – Total cost
=171400-66000
=105400 birr

7.4 project Cash Flow

The statement of cash flow shows the incoming and outgoing cash of
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the business.
Cash flow Year1 Year2 Year3
Beginning cash 50,196 10,404 85,100
flow
Cash inflows
Income from 60,600 121,100 171,400
sales
Account - - -
receivables
Total in flow 10,404 85,100 10,5400
Total cash 50,196 36,000 6,600
outflow

7.5 Balance Sheet

Inventory at the end of the year amounted to 2,345. We want to

control our inventory levels very carefully. We will purchase only
what we need based on our sales projections and maintain a stock of
goods and supplies in the range of birr 2,000 – birr 2,500

7.6 Ratio Analysis

Ratio Analysis Year 1 Year2 Year 3

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Financial ratio
Quick ratio 0.35 1.40 2.76
Current ratio 0.56 1.64 3.11
Net sales 100% 100% 100%
Gross profit 82.34% 83.04% 94.2%

8. Appendix

Cash flow statement: is one of the financial statement which summarize the
inflow and out flow of the cash over the specified period
Balance sheet statement: is the financial statement which summarize the
business asset ,liabilities and owners quits
Loss and revenue statement : is the financial statement which summarize
the amount of revenue /expenses eared and expenses incurred over the
specified period

9. Summary

It is our goal to a expand business to provide business

services such as hot drink, soft drink and food service
for robe community.
In generally we went to increase our yearly profit by
25%.
Similarly we want to provides good service in terms of
both quality and quantity with moderate price

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10. Key term

Business plan
Personal entrepreneurial competencies (PECS)
Goal setting
Risk taking
Demand for efficiency and quality
Opportunity seeking and initiative
Persistence
Information seeking
Persuasion and networking
Commitment to the work contract
Systematic planning and monitoring
Independence and self confidence
Mission - Market area
Key objectives - Market size
Competition - Market trends
Cash flow - Start-up costs
- Operating costs

SWOT Analysis

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