COLLEGE OF BUSSINESS AND ECONOMICS

DEPATMENT –MARKETING MANAGEMENT

COURSE –ENTREPRENURSHIP

COURSE CODE MGMT3291

GRROUP ASSIGNMENT

NAME ID NO

1. ERMIAS NASIR 125/10

2. ABDULMALIK ZAKIR 015/11

3. ASTER ASMARE 369/10

4. BEZUNESH BERIHUN 123/10

5. DAMANI AYANA 130/11

SUBMITTED TO MR.ALEMAYEHU

SUBMISSION DATE: 3/12/2013 E.C

One love cafeteria

Business
Plan
2 02 1 - 2 4

One love

Sabian dire dawa

(251) 359-3153

Onelovecafteria@gmail.com

https://one love.com
Table Contents
Table Contents ................................................................................................................................................................ i
Executive summary ....................................................................................................................................................... ii
1.2 Organizational information .....................................................................................................................................1
1.3 Business description .................................................................................................................................................2
1.4 Ownership description .............................................................................................................................................2
1.5 Vision .........................................................................................................................................................................3
1.6 Mission .......................................................................................................................................................................3
1.7. Objectives .................................................................................................................................................................3
1.7.1 Short term objective .............................................................................................................................................3
1.7.2 Long term objectives ...........................................................................................................................................3
1.8 Industry analysis .......................................................................................................................................................4
1.9 Analysis of Competitors ...........................................................................................................................................4
1.10 SWOT analysis ........................................................................................................................................................5
1.10.1 Strength..............................................................................................................................................................5
1.10.2. Weakness ..........................................................................................................................................................5
1.10.3 Opportunities .....................................................................................................................................................5
1.10.4 Threats ...............................................................................................................................................................5
1.11 Management plan .................................................................................................................................................6
1.11.1 Staffing Plan ......................................................................................................................................................6
1.12 Production plan.......................................................................................................................................................7
1.13 Target customers ....................................................................................................................................................7
1.14 Marketing plan .......................................................................................................................................................7
1.14.1 Product Strategy ................................................................................................................................................7
1.14.2 Pricing Strategy .................................................................................................................................................8
1.14.3 Promotion Strategy ............................................................................................................................................8
1.14.4 Place Strategy ....................................................................................................................................................8
1.15 Positioning ...............................................................................................................................................................8
1.16 Financial plan ..........................................................................................................................................................9
APPENDIX....................................................................................................................................................................14

i|Page
 Executive summary
One love cafeteria is a new business that proposes to open in dire dawa city ( sabian) in September
1 2014. It will be owned by one love family who are the member of group three and kibret
wendemagegehu Based on our agreement We will share profit or loss based on ratio derived from
our capital contribution, any type of risks or uncertainties will be shared among partners ,any one
would like to go out of the business will leave the venture by taking his equity.
Establishing this cafe has beneficiary in maximizing the welfare of the society from the
perspectives of creating employment opportunities, generating income for owners, creating suitable
place for uses recreational purpose etc. the vision of one love cafeteria is becoming the foremost
cafeteria in dire dawa city and to be number one choice of customers by creating superior value for
customers through creating a satisfying, long term relationship with customers.one love cafeteria
has a mission of serving its customers in a best manner.gnerally one love cafeteria has objectives
of being successful in shorter time horizon.
The industry of cafeteria business is characterized by intense competition from well experienced
competitors.one love cafeteria will target different segments of customers differently based on each
groups difference. The business will follow low price strategy or penetration strategy inorder to
build market share. The business will emphasise on low priced promotional tools in order to avoid
higher cost and the business will use simple distribution strategy due to financial constraint. One
love cafeteria is a new business that will sell coffee, donuts, soup and sandwiches fast foods,
dinners, coffee, tea, cappuccino, frozen cappuccino, and homemade cookies and brownies, and
other related activities.
Owners will work full time in the business and we will employ an additional four full time
positions. Ermias will be the general manager of the business and other owners perform several
activities in the business. One love cafeteria will be seeking funding for the amount of 106,000.00
from oromia credit and saving institution .if the business worked well as planned it will return that
money within 6 years. The owners of the business will contribute 106000 birr at the start-up of the
business and they will get share based on their capital contribution. Total revenues in year one will
be 200,100.00 with a net profit of $17,140.00 so that it’s very attractive to gain such amount profit
by covering costs associated with the business.

ii | P a g e
 1.2 Organizational information

Organizational information

Business name – one love cafeteria

Address – dire dawa
Kifle ketema (sub city) – sabian
Email address- onelovecafeteria@gmail.com
Type of business- partnership business
Telephone number
Post No
Owners
1. Ermias Nasir
2. Abdulmalik zakir
3. Aster asmare
4. Bezunesh berihun
5. Kibret wendemagegnehu
6. Damani Ayanna

1|Page
 1.3 Business description
One love café is a new café with an expectation to open in September 1 E.C 2013 at the heart of diredawa
(sabian), and expected to give a standardized café service in dire dawa. It is a partnership business that is
owned by ermias, abdulmalikaster, bezunesh, damani, lelisa. The owners of the business are graduates from
Wolkite University in marketing. We will specialize in fast foods, dinners, coffee, tea, cappuccino, frozen
cappuccino, and homemade cookies and brownies, and other related activities. In dire dawa city there are
many cafes that give services to their customers but they cannot still satisfy the need and want of the customer
in terms of both quality and quantity. In order to maximize customer satisfaction and to maximize our profit
we have decided to open a café in dire dawa city. Our target customers are university students, lecturers,
couples, families and strangers. One love cafe expected to serve this area well. This plan offers financial
institutions an opportunity to review our vision and strategic focus. It also provides a step-by-step plan for
the business start- up, establishing favorable sales number, gross margin and profitability. Establishing this
cafe has beneficiary in maximizing the welfare of the society from different perspective. Some of them are,
 Increase the income of the owners
 It creates employment opportunity
 It satisfies the need of the customer(quality and quantity) within a reasonable price
 It provide better place for younger’s in spending their time.
 It contributes for the development of the surrounding area (good sync view).

In general these business increases the welfare of society and this business does not result any environmental
pollution, since it have very low by- product and if any (is use as food for cattle’s especially for pig farms
found in genda boye kebele).

1.4 Ownership description

The partnership named as one love cafeteria is owned by ermias, aster abdulmalik,damani, bezunesh kibret, who
are graduates of wolkite university. Instead of being employed by government we have decided to start our own
business by contributing initial amount of money required to start the business. Before choosing the venture that
we have selected now we had tried to assess various business and cities (towns) for our business. From among the
owners of the business ermias came from eastern Ethiopia told us about dire dawa city, about the community, about
the business activity undergone in the area,etc.this information provided by him helped us an ice breaker .based on
this information we assessed various aspects of the business and we have decided to enter into cafeteria business

2|Page
 1.5 Vision

 To be become the foremost cafeteria in dire dawa city and to be number one choice of
customers by creating superior value for customers through creating a satisfying, long
term relationship with customers.

1.6 Mission

We will serve with a perfect product at a very reasonable price. We will also be a meeting place
for every individual that want to use cafeteria service. We will create an atmosphere conducive to
creative expression and promote the creative process. It will provide a completely sophisticated,
sensual, yet casual dining and/or coffee house experience for the many dire dawa communities and
visitors who visit the city's.

1.7. Objectives
Our business has two main objectives for the first three years of operation:

1.7.1 Short term objective

 Solving the market problem of the area by addressing or supplying of better and quality product to
the customers.
 Providing a better quality of cafeteria service to increase our customers satisfaction
 Achieving the average estimated sales per year.

1.7.2 Long term objectives

Expanding our marketing and advertising in Ethiopian to increase our customer base from other regions
3|Page
 • To expand the existing business area and starting another similar business in a unique Midtown
destination of other areas in side our country.
• To create better job opportunity for people
• To improve equality and performance of our employees
• To generate the maximum profit by assuming any risk and challenges.

1.8 Industry analysis

To summarize one love Café falls in an industry group which comprises establishments primarily engaged in
providing food services and preparing and serving non-alcoholic beverages intended for immediate consumption.
The growth itself is not overly surprising though, as coffee is the most popular beverage consumed by Ethiopians.
The cafeteria business does not show signs of slowing down. With new innovations such as flavorings and additives,
it should continue for some time. Their concepts range from typical fast food/chain venues to expensive fine dining
establishments. However, the predominating nature of the immediately surrounding restaurants and cafeteria is
casual/upscale.To summarize, although this industry is quite crowded already, the fact that it is the fastest growing
industry in its market gives it quite a lot of potential to be successful. Especially, because it incorporates many other
factors that seem to be growing in popularity such as it being an establishment that features an activity, and sources
its products ethically. Nationally, the industry is quite large, for example in dire dawa there are many cafeterias, we
can found cafeterias in average almost 400 meter apart in dire dawa despite this the communities who live in dire
dawa city are known for their relaxed (they don’t care about tomorrow they spend larger sum of money on a day to
day basis) so that this can be taken as an advantage. We hope our customer will be attracted by our service in
addition to this they may be attracting by my systematized customer approach, building, chairs, tables, glasses and
strategic placement.

1.9 Analysis of Competitors

Our competitors have an experience in this market cafeteria business) since they are worked for a long period
of time than us. The other strength of our competitor has greater financial capability. We have identified the
major competitors as businesses who provide services that overlap with our own, and are located in dire dawa
the same geographical location as the one love Café. Specially we have identified the following businesses as
competition: adimas, bereket, kegna, selam ,sifan and others. We suspect that our biggest cafeteria competitor
will be Selam, It is a large cafeteria with major reputation. Because of the fact that it is well known as a quality
and consistent company, they have gained a lot of customer loyalty. In addition to all of this, they are also
capable of investing a lot of resources into developing their products, marketing, and loyalty programs.
4|Page
Competing with them will prove to be difficult, as it is evident that their resources and company experience
will be difficult to compete with, especially as a small startup company. They all sell quality and ethically
sourced specialty coffees, and provide their consumers with a full bistro menu that includes breakfast,
sandwiches, and pastries. They will be strong competitors as they provide much of the same products as we
do, and in addition they attract consumers who want to buy local. They are all already established in dire
dawa, and because of that they will have loyal customers, especially because they have well aligned their
product offerings with the current consumer demands. Despite the strong competition that we have clearly
outlined, we believe that our unique value proposition will help us to work our way into the market and gain
a profitable amount of market share

1.10 SWOT analysis

1.10.1 Strength

 quality of food and service with a reasonable price, and its

 skilled manager who is familiar with knowledge of managing a ventures
 Owners who are graduates of BA in marketing and familiar with the way of creating satisfying relationship.

1.10.2. Weakness

No variation on menu or service it provides. Most of its activities like the menu are limited and provided by
cafeterias located nearer to us. Lack of sufficient finance to operate in bussiness and also lack of experience
that might be necessary to build a base.

1.10.3 Opportunities

 The diredawa’s demographics support the need for a unique cafeteria. Additional opportunities to
target the active and use age group. A small slice of a much bigger pie is the goal. Larger share of
peoples who live in the city are coffee drinkers. Encouraging coffee drinkers to become coffee
connoisseurs is the key to continued growth.
 Know The city is to some extent changing due to restarting of the rail way service from addis until
dire dawa and dijbouti .this will cause the flow of larger number of customers to the city
 The existence of dire dawa university can be considered as an opportunity due to it may provide large
number of customers and so on

1.10.4 Threats

5|Page
  Will there be increasing of tax
 Existence of strong competitors in sabian
 Current political and other conditions in the city

1.11 Management plan

One lofe cafeteria is a partnership bussiness.ermias, abdulmalik, aster, kibret, bezunesh,damani, lelisa are
the founders of one love cafeteria.The enterprise, being small at its startup, requires a simple organizational
structure. Implementation of this organizational form calls for the entire owners, to make all of the major
management decisions in addition to monitoring all other business activities.
 Thus, Mr., ermias nasir is the manager of this business,

 Miss Damani will be the vice manager of the venture

 Miss Aster has a practical experience that is related with cooking things, she will coordinate the activities
performed within the cithchen.

 Mr.kibret is good in accounting course so that he will record the financial activities of the business

 Miss Bezunesh and Mr.abdulmalik are good in their communicating skill so that they will became a
waiter

 Owners will work full time in the business

1.11.1 Staffing Plan

One love cafeteria at its startup will employee four individuals who will assist with food preparation,
performing the baresta activities, customer service or waiters (two of them) order
Name Sex Activity

Mr A Male Baresta

Mr B Female Cooker

Mr C Female Waiter

Mr D Femae Waiter

6|Page
 1.12 Production plan
NO Type of product Amount in Unit price Annual
unit per unit selling price
1 Coffee 3720 10 37200
2 Donutes and pastries 1475 20 29500
3 Cake sales 664 25 16600
4 Soup and sandwich 2936 25 73400
5 breakfast 785 40 31400
6 others 490 25 12000
Total sales for the year 200100

1.13 Target customers

The typical customers are students of dire dawa university, employees, business peoples, and etc. Consumer
researchers have found that uses are main consumers of cafeterias service because their need for affiliation,
to spend time with friends they favor such type of place. In our marketing strategy we will elaborate on
segmenting and serving various groups of customers in unique way.

1.14 Marketing plan

1.14.1 Product Strategy

The one love cafeteria primarily offering coffee and tea products, donat and pastries, cakes, soup and
sandwiches, fast foods, etc .At the one love Café, we strive to provide an environment in which individuals
have access to the resources that allow them to express their creativity. The majority of cafés follow a similar
model that consists of providing hot beverages and a cozy space. At the Creative Café, however, our goal is
to enhance the customer’s traditional café experience by adding a truly valuable element to one’s otherwise
run of the mill experience. The way in which we choose to separate ourselves from our competitors is centered
on allowing the consumer to expand their minds through art, as well as, meaningful conversation with other
7|Page
creative individuals. Our goal is to establish an image of acceptance and friendliness. We wish to be seen as
a place people can go where they are not only included, but where they can make lasting bonds and
friendships. To achieve this, we must brand ourselves in an appropriate fashion. At the Creative Café we will
advertise the fact that we are not only a unique business to others. We believe branding ourselves in a socially
responsible manner will be attractive to our target markets.

1.14.2 Pricing Strategy

At The one love Café, our pricing strategies will consist of cost-plus pricing ensuring we make a reasonable
margin. We will also incorporate competition based pricing for certain products, to ensure that our beverage
prices will be comparable to other upscale local cafés. That being said, we also have a goal to enhance our
local community. A certain portion of our profits will be donated to local charities and organizations in dire
dawa city. We feel as though our target market would greatly appreciate this generosity. This in turn would
promote brand loyalty, setting us up for a promising future with a substantial loyal customer base.

1.14.3 Promotion Strategy

Promotion is the communication between the company and the consumer. In order to make the market aware
of your product offering, you must create a promotion strategy that will inform, persuade and remind
consumers about your product. Without this, consumers would most likely be unaware of your existence,
regardless of how great your product or service might be. We will use advertising to reach large groups of
people in the dire dawa region. Because we are just starting out and our budget is not very large, we will avoid
expensive advertising channels such as television, and stick to Medias such as newspaper and radio (haramaya
FM 98.8). More specifically we will buy advertisements in the paper, which is local paper that comes out
monthly and is placed in locations all over dire dawa city.

1.14.4 Place Strategy

In general the value delivery network is made up of everyone involved in getting the product to the consumer.
For the one love Café, this network, as well as the distribution strategy will be relatively simplistic due to the
small size of the company. For our business we have suppliers who give us, the company, the products we
need to serve our customers. This means that we are a level one channel as there are no intermediaries between
our company and our consumers. We will take a closer look at the three components of our value delivery
chain. The local coffeehouse/cafe market

1.15 Positioning

8|Page
Positioning refers to the process of making target markets aware of your points of difference. It is
essentially how a company and its products are defined in the minds of the consumer relative to the
competitors. Because of the importance of positioning in the success of a business, we put a lot of thought
into choosing how we would position ourselves in the minds of our two target markets. For middle-aged
educated adults we decided to display our use of local, and ethically sourced products. We also wanted to
position ourselves as the best in the market, and imply that we would guarantee their satisfaction. To do this
we will use the following positioning statement:
➔ for a hardworking and educated adult, the importance of cafeteria service is not to be underestimated.
That’s why at the one love Café we only use the finest, locally sourced ingredients, to deliver you the
satisfaction you deserve.
➔For romantics we chose to demonstrate our unique environment, and the creative activities that we offer
as an alternative to nightclubs. We also wanted to position ourselves as a local business as this resonates
well with this target market. The position statement is as follows:
➔ At the one love Café we understand the importance of creating memories for young and adults.

1.16 Financial plan

Balance Sheet Projections

Start up Year1 Year2 Year3

ASSETS
Cash 5000 12,733 8,790 $11,548

Term Deposit Equip. 19000 $30,000

Inventory 3000 3,000 4000 $3,000

Total Current Assets 8000 15,733 31,790 $44,548

Fixed assets
Sofas and chairs 150000 150000 150000 150000
Furnishings 12000 12000 12000 12000
Machinery 40000 40000 40000 40000
Office equipment 2000 2000 2000 2000
Total fixed assets 204000 204000 204000 204000

9|Page
 Less Acc Depreciation ____ 13200 26400 39,600

Net fixed assets 204000 190800 177,600 164400

TOTAL ASSETS 212000 206533 209390 208948

LIABILITIES & EQUITY

Current liability ___ ___ ____

Accounts payable ___ ___ ____
Long term liability
Loan from OCSI 106000 80500 56137 29885
Total long term liability 106000 80500 56137 29885
Total Liabilities 106000 80500 56137 29885

Share Capital 106000 108893 126033 153253

Retained earnings ___ 17140 27220 25810

Total Equity 106000 126033 153253 179063

TOTAL LIABILITIES & EQUITY 212000 206533 209390 208948

10 | P a g e
11 | P a g e
 One love café
Income Statements 3 Year

Year 1 Year 2 Year 3

Coffee Sales 37,200.00 41,000.00 42,000.00

Donuts & Pastries 29,500.00 33,000.00 33,000.00

Cake Sales 16,600.00 20,000.00 19,000.00

Soup & Sandwich 73,400.00 80,000.00 84,000.00

Continental Breakfast 31,400.00 35,000.00 37,000.00

Other sales 12,000.00 14,000.00 14,000.00

Sales 200,100.00 223,000.00 229,000.00

Cost of Goods Sold 60,030.00 66,900.00 68,700.00

Gross Profit 140,070.00 156,100.00 160,300.00

Operating Costs:

Insurance 2,000.00 2,000.00 2,000.00

Promotion 1,200.00 1,300.00 1,400.00

Rent 18,000.00 20,000.00 22,000.00

Wages 70,000.00 75,000.00 80,000.00

Wrapping Supplies 1,800.00 1,900.00 2,000.00

Utilities 3,000.00 3,100.00 3,200.00

Telephone 1,000.00 1,100.00 1,200.00

Propane 3,600.00 3,800.00 4,000.00

Interest 9,130.00 7,480.00 5,490.00

Total Operating Costs 109,730.00 115,680.00 121,290.00

Income 30,340.00 40,420.00 39,010.00

Minus Depreciation (13,200.00) (13,200.00) (13,200.00)

Net Income 17,140.00 27,220.00 25,810.00

12 | P a g e
 One love cafeteria
Cash flow statement
For three years

startup Year 1 year 2 year3

Opening Balance 5000 12733 28790
cash in

Income 140070 156100 160300

Owners contribution 106000
Loan from OCSI 106000
Total cash in 212000 140070 156100 160300
Cash out

Expenses 109730 115680 121290

Inventory 3000
Sofas and chairs 150000
Furnishing 12000
Machinery 40000
Office equipment 2000
Loan payment 17607 11630 12538
Total cash out 207000 127337 127310 118752
Closing balance 5000 12733 28790 41548

13 | P a g e
 APPENDIX
AGREEMENT FOR ONE LOVE CAFETERIA
This agreement for provision and supply of cafeteria service is made at on this August 2 day 2013 E.C
This agreement was made between the following individuals to undertake business together:
1. ERMIAS NASIR
2. ABDULMALIK ZAKIR
3. ASTER ASMARE
4. BEZUNESH BERIHUN
5. DAMANI AYANA
6. KIBRET WENDEMAGEGNEHU

Capital contribution
Contribution Share of profit
1. ERMIAS NASIR 31800 30%
2. ABDULMALIK ZAKI 21200 20%
3. ASTER ASMARE 10600 10%
4. BEZUNESH BERIHUN 21200 20%
5. DAMANI AYANA 10600 10%
6. KIBRET 10600 10%
WENDEMAGEGNEHU
total 106000 100%

Profit/loss sharing ratio-3:2:1:2:1:1 respectively

WHEREAS;
 All members listed above are individually and collectively liable for whatever thing happens
in the cafeteria (they are responsible for the loans, the actions of other parties etc.)
 Any member who would like to live the partnership can go out of the venture by taking his
equity. The remaining members can continue in the business by arranging new provision
14 | P a g e
  If any additional investment is required partners are responsible to provide the necessary assets

We have agreed with the terms and conditions of the partnership so that we have approved it with our
signature
1. ERMIAS NASIR ……………………………………………
2. ABDULMALIK ZAKIR……………………………………..
3. ASTER ASMARE ……………………………………….....
4. BEZUNESH BERIHUN ……………………………………
5. DAMANI AYANA…………………………………………..
6. KIBRET WENDEMAGEGNEHU …………………………

15 | P a g e