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Coffee Shop Feasibility Study

Introduction to Business Presents:. Coffee Shop Feasibility Study . ~ Summary of Findings~. Vision Statement Company Objectives Products and Services Market Analysis Marketing Strategy Competitive Advantage Operations Management Team Members

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Coffee Shop Feasibility Study

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  1. Introduction to Business Presents: Coffee Shop Feasibility Study

  2. ~ Summary of Findings~ • Vision Statement • Company Objectives • Products and Services • Market Analysis • Marketing Strategy • Competitive Advantage • Operations • Management Team Members • Funding: Start-Up Costs, Pro-Forma Cash projections

  3. ~Vision Statement~ • Thunderstruck Java will provide a morning beverage service so students are settled, focused, and ready to learn. • If demand is as expected, TJ’s will generate enough cash to fund a more ambitious café environment in the future, providing a social and calm atmosphere to start the day • for the students, by the students

  4. ~Company Objectives~ • Sell morning beverages • Make Money • Expand if possible • Morning coffee/lounge experience • Student bonding • Students on time! • Settled and ready for the day • Thunderstruck Java=Authentic LEARNING • Real business experience to reach curricular goals

  5. ~Products and Services~ • Provide a morning experience: • Beverages • Hot chocolate • Coffee • Tea (Chai?) • Cappuccino • Possibly food in the future • Donuts or bagels • Cinnamon rolls (Foods class creations?) • Fruit and/or whole grain options

  6. ~The Market~ • Middle School (12-14) • Hot chocolate primarily • High School (14-18) • Strong demand for • Cappuccino • Hot Chocolate • Coffee/Chai tea

  7. ~Survey results~ • Student Comments • out of 304 surveys returned: • 152 positive comments • 12 unfavorable comments • Frequency • From 1 to 5 times per week • Reasonable assumptions over time • Graphs of beverage preferences

  8. ~Marketing Strategy~ • Announcements • Print • Posters • Flyers on Lockers • Web • High School Home Page • Facebook? • Promotional Ideas • Discounts: (good grades or grade improvement?) • Buy a permanent cup for cheaper refills?

  9. ~Competitive Analysis~ • Direct: • The Depot • Norm’s BP • Kafe Beans • Subway • SandBur Corner • ScandyCenex • Scandy Bakery • Indirect: • IGA • Crystal Café • Home

  10. ~Competitive Advantage~ • More convenient • Lower costs • Higher profit margin • Motivated sales staff • Possible future: A comfortable socializing place in the morning will attract ongoing student patronage

  11. ~Operations~ • Purchasing: Webstaurant or Sysco • Supplies: Drink Mixes, Cups, Condiments • Inventory control part of learning experience • Staffing • Quality Customer Service • Volunteer Business Students: various possible incentives • Equipment • Karma 456 Post-Mix Cappuccino Dispenser • Compact Size, 3 Flavor capability • Pour-Over design, can convert to water hook-up • Reasonable Price • See Specifications • Facilities • Ticket Booth Area… for now!?

  12. ~Source of Equipment/Products • Pamasco, supplier of KARMA 456 • Webstaurant Store: • French Vanilla, good reviews • Fat-free/Sugar-free option? • Hot chocolate • Chai tea • Cups/lids • SYSCO food service: costs are unclear but potentially favorable

  13. ~Equipment Proposed~ • Pour-over design • Thunderbird! • Easily converts to water line • Grows with company • Light enough to: • Sell at Football game • Basketball games • Track meets

  14. ~Management Team~ • Student managers and student accountants • Mrs. Scott • Workers • Students from high school business classes • Co-Op Students • Schedule:3 Days/Week • Preparation/Clean Up 7:15 to 8:25 • Open Doors At 7:30 • Close Doors At 8:15

  15. ~Finance~ • Start-Up costs: • Equipment: • KARMA 456 $1,458.17 • Coffeemaker 0 • Initial Supplies: • Mixes: $ 234.00 • Coffee/tea/creamer 60.00 • Cups/lids 99.98 • Shipping 100.00 • Total $1,952.15

  16. ~Finance~ Revised • Cash Flow Projection: (Conservative!) • 25 customers/day • $25.00 Gross Sales • -12.25 Cost of Goods Sold (.49/cup*) • $12.75 Net Profit/day 180 days of school, x $12.75 = $2,295 Profit 2011-12 (excludes events) • *Cost per cup: supplies from Sysco • Cup/lid: 13 cents + Mix: 33-36 cents = Total 46-49 cents

  17. ~Growth Plan~ • Future products and services • food, possibly bagels and or other morning food • more drink options, different flavors • Expansion • location • size • Extend hours • Consider paid positions, Co-Op employees • Growth of Business Ed. Department

  18. ~Potential Barriers~ • Wellness Committee • Fat-free, Sugar free options • Scheduling • Incentives to student workers, managers • $ Credit for educational trips? • Grade, extra credit points? • Work experience for applications, scholarships

  19. ~Contingency Plan~ • Sell to IS Club for permanent home at Football Field • Sysco: “no charge” machine • Either way, Board’s investment is covered in year one.

  20. ~Thank You!~ • We appreciate your consideration!

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