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business plan to start a coffee shop in little

Business plan to start a coffee shop in little India restaurant

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2016 2017 all rights reserved no part of this

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2016 2017 all rights reserved no part of this 1

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table of contents

Table of Contents

1.0 INTRODUCTION ....................................................................................................................................... 5

2.0. PROJECT OVERVIEW ............................................................................................................................... 5

3.0 SCOPE ...................................................................................................................................................... 7

4.0 HISTORY .................................................................................................................................................. 7

5.0 ROLE OF THE PROJECT MANAGER AND PROJECT TEAM ........................................................................ 7

6.0 PURPOSE OF THE PROJECT ...................................................................................................................... 9

7.0 RESEARCH METHODS .............................................................................................................................. 9

8.0 FINDINGS AND ANALYSIS ........................................................................................................................ 9

9.0 LIST OF COFFEE SHOPS IN NEWZEALAND ............................................................................................. 31

BIBLIOGRAPHY ............................................................................................................................................ 41

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1 0 introduction

1.0 INTRODUCTION

The purpose of the project is to set up a traditional Indian base coffee shop in Porirua, New Zealand. Coffee continued to

be a popular beverage choice among New Zealanders while burgeoning café culture has gained international recognition

(Euromonitor International, 2015). According to the Euro monitor data (2013), the amount of coffee consumed by New Zealand per

capita (per person on average) was 1.3 kg with 47th (1.3kg per capita) place under top 50 countries (Caffeine Informer, 2015). In

2012, café shops remained an Independent accounting for an 85% of value share but due to the introduction of chain outlets, the

share declined (Euromonitor, 2014). Therefore, Little India is one of the famous best Indian restaurants in Wellington region aimed

to open the coffee shop as their part of restaurants. Due to fulfill the purpose of this project, the project team was planning to make a

business plan for provide the guidance to Little India in Porirua city of Wellington region. The project team made different competitor

analysis to gather the data.

Porirual, is a city located in the Wellington Region of the North Island of New Zealand with population 51,720 (June 2013)

(Census Porirua, 2015; Porirua City Council, 2015). There are six coffee shops in Porirura (Trip Advisor, 2015) includes Café

Kaizen, Groundup Café, Peppermill Deli and Café, Charlies Café, Butler’s coffee shop, Ruby Café, and Café Mondo. However,

these shops are based on Australia / New Zealand but not on Indian base coffee restaurants. The researcher family comes from

Punjab region of India, hence the researcher interested to open a new coffee shop as Indian base. Secondly, this business plan

aimed to open its coffee shop in Little India restaurant. Although Little India has several branches, the project is restricted only to

Porirua branch. There are two reasons to choose this branch. Firstly, since it’s the first trial for Little India restaurant to introduce a

separate entity for coffee shop and secondly, Porirua is a quiet and multicultural society of people.

2.0. PROJECT OVERVIEW

The term ‘Project management’ refers to the application of tools, skills, knowledge and applied techniques to project

activities due to meet the requirement of the project. It covers planning, making the project plan into action, and estimating

performance and progress (Watt, 2015). In line with this, this project team makes the planning, execute the work into action and

progress and performance was estimated. A project is a group of activities undertaken to meet one or more specific objectives.

These objectives could include solving a problem, building or upgrading a system or product, launching a product or service,

implementing a strategic plan, changing a process, or one of many other unique efforts. Hence, this project team also fixed specific

objectives in terms of made a business plan to set up coffee shop in Porirua. This report provided the details of competitors include

list of coffee shops found in Newzealand and their qualities, and then found out different analysis such as competitor analysis,

SWOT, PESTLE, Porter’s five force analysis and provide the marketing plan for opening a new coffee shop. Further this report

explained the different tasks of project members in completion of whole project. The below figure depicted the project life cycle to

complete the project

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figure 1 project life cycle to complete

Figure 1: Project life cycle to complete successful project

Definition

Project Rules

Planning

Project plan

Execution

Project Goal

Complete

Closeout

Format

Closure and

Time

Source: Adopted from Perkins et al. (2003)

The team members have splitted into two groups and made different business analysis. Based on the analysis report, the

coffee made strategies to open their new shop in Newzealand. To start up any new business there is a necessary to understand the

triangulation for arraign success, this was shown in below figure.

Figure 2: Triangulation model of business firms

Scope

Quality

Cost

Schedule

Source: Adopted from Watt (2015)

This model support project management as well as business, in both perspective, scope is very important to analyse the

present and future trend while cost is necessary to start up and success of any project business these was attain by proper

schedule, hence it is most significant one. For instance, scope increases; cost and time also increase proportionately. This business

analysis report provide market, financial and better business plan to Little India coffee shop.

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3 0 scope

3.0 SCOPE

During the past few decades, the coffee revolution was increased in Newzealand. The higher the popularity of coffee has

prompted a growth industry with new cafes and coffee roasting outlets springing up all over the country. Nowadays, coffee making is

very competitive especially to make good cup of coffee (Newzealand, 2015). The Little India coffee shop aimed to provide friendly,

comfortable and caring environment where the customers would receive quality coffee with Indian base taste and aroma at a

reasonable price. Variety of choices would provide to the customers to meet the wide needs of the society in terms of cultural and

demographics such as Filter coffee (Indian variety), regular coffee, smoothies, espressos, long black, lattes, piccolo latte, affogato,

espresso con panna, cortado, fluffy, macchiato, cappuccinos, and all sorts of tea, and soft drinks. In addition, the selection of vessel

would be glass, bowl, mug and cup with type of milk varied from regular, full cream, semi-skimmed, skimmed, or skinny, soy and

number of shots (Newzealand, 2015). The beans used are made out of dark roasted coffee beans (70-80%) and chicory (30-20%).

The current trend in coffee shops in Newzealand reflected coffee shop can be opened from 6.00AM to 4PM including Sundays.

The project would assists Little restaurant to open Coffee shop on delivered date with the aim to achieve break even costs within 2

years of investment. Secondly, the project would also deliver all manuals and financial budget assists also aim to open other five

branches in next five years across the little restaurants in New Zealand receive the café of choice Award. In order to prepare the

business plan for little India coffee shop, the researcher used secondary data. This data comprises of company websites, annual

reports of Newzealand, journal articles, case studies etc. with respect to stating a coffee shop business in Newzealand.

The scope of the project consists of identification and documentation of project specific goals, deliverables definitions

and planning appropriate costs, and task and deadline for the project within the given time frame.

Defining the clear scope would ensure that all the team members understand the project clearly before start.

4.0 HISTORY

Sukhi and Jonna Gill have initiated the firm with a small dairy with fish and chip shop, in Ravensbourne just outside

Dunedin. Yet, later their Sukhi’s parents visited they decided to add few Indian dishes to the fish and chip shop. However, the added

dishes received enormous response from New Zealand population. However, they could not able to cope up the demand with a

single electric stove struggling. This initiation and welcome for Indian dishes decided to open a New Zealand Indian restaurant. The

first Little India restaurant was opened in 1991. The restaurant had Indian flavors especially Punjab region of North India. They used

recipes from the Kitchen of Sukhi’s Grandmother Premjit Kaur Gill where she involved in training of chef’s of Little India’s restaurant

in her own kitchen in Chandigarh. With her training, chef’s could replicate the legendary Indian food dishes of North India, the

Punjab. Kitchen has traditional tandoors with a clay pot fired by charcoal and offer naans and meat in their authentic flavor (Family

Times, 2015).

The food of little India have provide proper dietary supplements include Gluten free breads and other couple of dishes.

Further food is vegan and dairy free along with warm and inviting atmosphere and also little India accommodate romantic dinners for

two to large group of people. Moreover, little India provide online ordering and door delivery system (Otago Daily Times, 2007; Little

India, 2012). Beyond the good scope of restaurant, Little India planned to open a new coffee shop along with restaurant. This would

help for further success of Little India.

5.0 ROLE OF THE PROJECT MANAGER AND PROJECT TEAM

For successful completion of any project that depends upon the role of project managers as well as their team members

work. According to Milosevic et al. (2011), the role of project manager ensures that the project is delivered on time, to budget and to

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the required quality standard within agreed

the required quality standard (within agreed specifications). Further project manager ensures that the project is effectively resourced

and manages relationships with a wide range of groups (including all project contributors). The Project Manager is also responsible

for managing the work of consultants, allocating and utilising resources in an efficient manner and maintaining a co-operative,

motivated and successful team (GLA, 2015). Moreover, project manager is responsible for accomplishing the project objectives

within the constraints and also take care of project outcome (success or failure) (Leadership Champs, 2008).

Project managers roles and responsibilities are described as follows: Managing and leading the project team; Developing

and maintaining a detailed project plan; Recruiting project staff and consultants; Detailed project planning and control; Managing

project scope and change control and escalating issues where necessary; Providing status reports to the project sponsor; Liaises

with, and updates progress to, project board/senior management; Final approval of the design specification; Recording and

managing project issues and escalating where necessary; Managing consultancy input within the defined budget; Managing co-

ordination of the partners and working groups engaged in project work; Resolving cross-functional issues at project level; Managing

project deliverables in line with the project plan; Managing project training within the defined budget; Definition and management of

the User Acceptance Testing programme; Monitoring project progress and performance; Working closely with users to ensure the

project meets business needs; Providing regular status reports to the IPSC Programme Board; Managing project evaluation and

dissemination activities; Identifying user training needs and devising and managing user training programmes (Milosevic et al.,

2011; Haughey, 2015; Srivastava, 2015; Sun, n.d.).

While Team members played a major role in project completion. However, their roles are varied depending on the type of

project includes provide functional expertise in an administrative process; Documentation and analysis of current and future

processes/systems; Defining requirements for reporting and interfacing; Work with users to ensure the project meets business

needs; User training and Identification and mapping of information needs (JISC infonet, 2015; Inviqa, 2015; Commonwealth of

Australia, 2011; Smart Cities, n.d.),. However, most important relationship between project managers and their team members is

communication. Communication has been defined as the sharing of information while project communication is sharing of projected

related communication (Project Communication Handbook, 2007) with the aim to create proper understanding between and among

the team members and its organization. The purpose to reach understanding and removes doubt, emphasises the meaning of

planning and at best involves all participants around the same round table (IDRC, 2011). Communication may involve two or a

group of people and can be verbal or written, face to face, or some medium such as telephone, email, and videoconference (Gido &

Clements, 2011). However, depending on the importance of the information to be discussed, communication mode can be chosen

(Jalava & Virtanen, 2000). Understanding the communication process is the first step in terms of who is involved, what is being

communicated, when the information is communicated, how the information id distributed and who will provide the information being

communicated (Project Communication Handbook, 2007). A lack of communication within the team members would lead to failure

of the project and creates significant loss to the firm (Gido & Clements, 2011).

Further the primary purpose of the meeting of project managers is to solve the problems faced by the team members.

There is a possibility that team members might face challenges while implementing the project, therefore any problem faced by the

member need to call for the meeting without waiting for a future review. This meeting support to understand the team difficulties and

to share their experience, to discuss their achievements and further proceedings, solutions for the problems on frequent basis such

as weekly once. This has been done through three ways, one through constant phone and email communication. However, last

would be a direct meeting, but this was done be subjected based on the availability of team members. Hence, the present report

team members and project managers must follow the roles and responsibilities for the success of this project.

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6 0 purpose of the project

6.0 PURPOSE OF THE PROJECT

The purpose of the project report is to provide the business plan for setting up of traditional Indian base coffee shop in

Porirua city. Based on this report analysis, Little India makes plan to set up the coffee shop along with their own restaurant. This

report provide the details of their competitors, their quality of coffee, strength, weakness, opportunities and threats, further give the

financial plan and marketing strategy to build a new coffee shop. This plan gives an idea for little India to make their business

strategy as scopeful and ethically. Further this report gives a layout design for build their coffee shop.

7.0 RESEARCH METHODS

The present report used secondary data collection methods. This method analyses different sources like reports of

websites, journal articles, annual reports, library books, encyclopedia, newspapers/magazines etc. Research method used to collect

the data in this report is Internet. Internet searching is a vast but extremely disorganized information source. By using internet

source it is necessary to use different keyword searching. The team members make different keywords for searching purpose1.

Internet search is the practice of searching information by using several websites2, 3 This report used this technique to analyse the

details of business plan report for making a new coffee shop. Further analyses the coffee shop details like competitors, strength and

weakness of the industry, population description, quality of coffee in Newzealand. Hence, this report used secondary data it has

several advantages includes time saving (Ghauri, 2005);accessibility, money saving, creating novel insights and feasibility,4

8.0 FINDINGS AND ANALYSIS

The crucial step in the research on innovative products and ideas regarding the needs and expectations of the customers

is planning a marketing strategy. The main aim of this chapter provides the marketing plan to set up a traditional Indian base coffee

shop in Porirua, New Zealand. With the help of the data collected through secondary research as well as with the study on

customers, profits, expenses involved and competitive firms, the researcher developed a marketing strategy for the venture. Based

on the investigations of McDonald (2002); Shilbury et al. (1998); Lancaster and Massingham (1996); and Kotler (1997), the

researcher adopted an eight step process in this study. In this research the following steps have been adopted: (a) Initially, the

researcher has determined the mission statement of the firm (b) Then business goals of the coffee shop have been set. (c) Then

market environment has been analyzed (4) In order to assess the market environment the researcher has analyzed the external

environment wherein the firm contends and the internal environment of the Indian base coffee shop itself. (5) Then SWOT analysis

has been conducted (6) Following the SWOT analysis, marketing goals has been set. (6) After this step, marketing strategy has

been developed and detailed plans have been framed. (7) Finally, the marketing plan has been reviewed.

1 hox_05_data+collection,primary+versus+secondary.pdf

2 https://books.google.co.in/books?id=lh-b-

jXSO1QC&pg=PA471&lpg=PA471&dq=Internet+search+is+the+practice+of+searching+information+by+using+sever

al+websites.&source=bl&ots=8VRW4IXOoc&sig=jQpa_2R-

Y42M7_dI7pYLbj64IbI&hl=en&sa=X&ved=0CC0Q6AEwA2oVChMI3tOTpMvfyAIVpOimCh2CYg52#v=onepage&q=Int

ernet%20search%20is%20the%20practice%20of%20searching%20information%20by%20using%20several%20web

sites.&f=false

3 http://mediasmarts.ca/tipsheet/how-search-internet-effectively

4 http://xaperezsindin.com/2013/12/11/advantages-and-disadvantages-of-secondary-data-collection/

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figure 1 marketing plan followed in this report

Figure 1: Marketing Plan Followed in this report

Source: Adopted From Kotler (2009)

SITUATION ANALYSIS

Both micro and macro environments are assessed in the situation analysis. Investigation of the factors associated with both

external and internal environment of the firms and the influence of these factors on the performance of these firms is the major

purpose of this situation analysis. The market environment can be assessed at two levels. In this assessment, the characteristics of

both external and internal environment are included (Kotler, 1997).

PORTER’S FIVE FORCES (MACRO) ANALYSIS FOR COFFEE SHOPS IN NEWZEALAND

Porter's five forces analysis is a framework for industry analysis and business strategy development. It draws

upon industrial organization (IO) economics to derive five forces that determine the competitive intensity and therefore

attractiveness of a market. The competitive advantage and position of a firm can be analysed and evaluated with the help of Porter’s

Five Forces Analysis. The following table illustrates the Porter’s Five Forces Analysis for coffee shops in Newzealand.

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table 1 porter s five forces analysis for coffee

Table 1: Porter’s Five Forces Analysis for coffee shops in Newzealand

Threat

of

There are a number of coffee shops in the area of Porirual city from the Café

High

substitutes

Kaizen, Groundup Café, Peppermill Deli and Café, Charlies Café, Butler’s coffee

shop, Ruby Café, and Café Mondo who provide stiff competition. It is essential

that the little India observed the nature of coffee habituals and their trends and

culture to attain success in Newzealand. Threats can be overcome by focussing

on price and providing pleasing service.

Rivalry

among

Medium

Many coffee shops conduct different competitions frequently among their

existing

customers.

competitors

Further to overcome their competitors few shops provide different items such as

serving salads, sandwiches, baked goods and other snack items along with coffee

to attract their consumers (Laffare, 2015).

Independent operators continued to dominate the landscape of cafés/bars in New

Zealand, making up a value share of 86% in 2014, which has not changed over

the review period (Euromonitor, 2015).

When industries are growing revenue quickly, they are less likely to compete,

because the total industry size is also growing. The only way to grow in slow

growth industries is to steal market-share from competitors.

Fast industry growth positively affects New Zealand Coffee Market (Wiki wealth,

2014d).

Few competitors mean fewer firms are competing for the same customers and

resources, which is a positive for New Zealand Coffee Market (Wiki wealth,

2014j).

Bargaining power

When there are a large number of substitute inputs, suppliers have less bargaining

Low

of suppliers

leverage over producers.

This is due to competition among substitutes. Greater competition positively

affects New Zealand Coffee Market (Wiki wealth, 2014g).

When critical production inputs are similar, it is easier to mix and match inputs,

which reduces supplier bargaining power; a positive for New Zealand Coffee

Market (Wiki wealth, 2014a).

The easier it is to switch suppliers, the less bargaining power they have. Low

supplier switching costs positively affect New Zealand Coffee Market (Wiki wealth,

2014h).

When exit barriers are low, weak firms are more likely to leave the market, which

will increase the profits for the remaining firms. Low exit barriers are a positive

for New Zealand Coffee Market (Wiki wealth, 2014c)

Bargaining power

When buyers are less sensitive to prices, prices can increase and buyers still buy

Low

of buyers

the

product.

Inelastic

demand

positively

affects New

Zealand

Coffee

Market. When customers cherish particular products they end up paying more for

that one product. This positively affects New Zealand Coffee Market (Wiki wealth,

2014i). When there are large numbers of customers, no one customer tends to

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have bargaining leverage limited bargaining

have bargaining leverage. Limited bargaining leverage helps New Zealand Coffee

Market (Wiki wealth, 2014f)

Threat

of

New

If strong brands are critical to compete, then new competitors will have to improve

Medium

Entrants

their brand value in order to effectively compete.

Strong brands positively affect New Zealand Coffee Market. … "Strong Brand

Names Are Important (New Zealand Coffee Market)" has a significant impact, so

an analyst should put more weight into it. This statement will lead to an increase in

profits for this entity. This qualitative factor will lead to an increase in costs (Wiki

wealth, 2014k). It takes time and money to build a brand.

When companies need to spend resources building a brand, they have fewer

resources to compete in the marketplace. These costs positively affect New

Zealand Coffee Market (Wiki wealth, 2014b).

High switching costs make it difficult for customers to change which products they

normally purchase, due to costs.

High switching costs positively affect New Zealand Coffee Market (Wiki wealth,

2014e).

Source: Adopted from Kotler et al. (2008)

SWOT ANALYSIS

SWOT analysis is useful as it helps to identify the market position of particular company5. In this study, SWOT analysis

helps to identify the strength, weaknesses, opportunities and threats of coffee market in order to understand their market position in

global market. Strength helps to gain the advantage by utilizing the resources of the organisation and weaknesses supports to

understand their disadvantage to gain market advantage and increase their profit volume (Baker, 2007, 143). On the other hand,

opportunities help to utilize the strength of the company and it helps to recover the upcoming threats.

Below is the SWOT analysis of the coffee market in Newzealand

5 http://riccentre.ca/wp-content/uploads/2012/01/Session-1-Takeaways-Guidlines.pdf

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figure 2 swot analysis

Figure 2: SWOT Analysis

• Relaxed environment, large product range,

buying power good and pricing is lower

S-Strength

• Non sterile dining environment, low wage

staff, clunky websites

W-

Weakness

• Market development, business and product

development

O-

Opportuni

y

• Environmental effects, market demand and

obstacles

T-Threats

Strengths

In Newzealand, Cafés/bars offer a relaxed environment to their consumers, similarly the selected place for the new coffee

shop is Porirua also an pleasant environment for consumers.

Coffee shop in New Zealand provides large range of extensive coffee related products6.

Coffee shop in this country is well-established in their competitive market specifically in Porirua city is well-established

market place for business developers.

In this sector, buying power of customers is better and pricing is lower (New Zealand Trade and Enterprise, 2014).

Coffee in this country are reasonable price and almost a lot of home based products used in many restaurants7

Little India have existing customers who are frequently came to the restaurant may be regular customers of their new

coffee shop

Weakness

In Newzealand, Cafés/bars provide non-sterile dining environment, compared to many fast food outlets which tend to look

and operate all the same.

Coffee shop employees have lack of product knowledge especially low wage staff

The websites used by coffee shops are clunky and also consumers faced problem in searching menus and other

verifications.

Nowadays, technology development attained a major position in all the sectors, especially in Newzealand, majority

(around 70 percent) (Research New Zealand, 2015) of them used smartphones however, coffee shops failed to provide

advertisement and their menu details in tablets and smartphones.

6 http://www.thecoffeecompany.co.nz/

7 https://www.newzealandnow.govt.nz/living-in-nz/money-tax/comparable-living-costs

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opportunities

Opportunities

In Newzealand, Porirua city is better market, business and product development place and provide convenience to all

type of customers.

Porirua city provide a dynamic, strong, regional centre with sustainable and vigorous economy (Porirua City Council,

2014).

Little India may create new opportunities like promoting and initiating new strategies such as giving a "coffee of the

month" and special discounts for frequent customers. Likewise some other coffee shops promote the same for their

growth.

Coffee shop list out both short-term and long-range goals so that shop can anticipate logistical needs for all aspects8.

Some physical growth, such as opening a larger or additional location, may be in the works and therefore Little India

should plan ahead for what is needed to reach those goals.

Some existing customers of Little India may interested to drink coffee, therefore retaining the existing customers provide a

better opportunity for Little India (Belcher, 2015).

Provide job opportunities for many unemployed and catering peoples9

Threats

External trouble

Competitors action

Other local cafes

PESTLE ANALYSIS

The coffee industry could understand its surroundings with the help of PESTLE analysis. This analysis will also be helpful

to frame a suitable marketing plan.

8 http://www.ashpfoundation.org/leadershipprimer/Primer19.html

9 http://www.ilo.org/wcmsp5/groups/public/---ed_emp/---

ed_emp_msu/documents/publication/wcms_195535.pdf

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figure 3 pestle analysis

Figure 3: PESTLE analysis

Source: The Marketing Environment (modified from Marketing Planning 2010, 6510)

Political Aspects

The political factors affecting business are often given a lot of importance. Several aspects of government policy can

affect business. All firms must follow the law. Managers must find how upcoming legislations can affect their activities. Changes in

the government policy make up the political factors. Newzealand has a unique and more sophisticated legal, financial and marketing

strategic field of business. With strong and stable commercial and political free market environment11,12 for secure place to start and

invest for any business13.

Economic Aspects

As in economic perspective, Porirua city which was found in Wellington region is the suitable place for starting a new

business. This region acts as government hub and the world's southernmost capital city and also provide most educated workforce

in New zealand. According to the report of Infometrics, (Wellington City Annual Economic Profile 2014) showed a GDP growth rate

per employee is 29.2% while household income was $59,23014. Further in business perspective, this country attained best rating in

2012 was found in business lis15t. Hence, this plan recommended that Porirua is the best place in economic point of view.

10 Model 1pdf

11

https://books.google.co.in/books?id=ZRD6gMj2XRkC&pg=PA444&lpg=PA444&dq=political+environment+Porirua+

new+business&source=bl&ots=xm7lPmSy6I&sig=oUkU9MqIrxKNF-

oVX_Uu9MnMJeY&hl=en&sa=X&ved=0CCwQ6AEwAmoVChMI8pXgt4biyAIVqNymCh3ObQwe#v=snippet&q=politic

al&f=false

12 http://www.whitireia.ac.nz/AreasOfInterest/Business-Management/Pages/BusinessandManagement.aspx

13 http://www.wellingtonnz.com/business/business-environment/business-landscape/

14 http://www.wellingtonnz.com/business/business-environment/business-landscape/

15 https://www.newzealandnow.govt.nz/investing-in-nz/opportunities-outlook/economic-overview

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Page 15 of 43

social aspects

Social Aspects

The nation pays much attention to education and employment facility as their national priorities.16 At a social level, New

Zealanders are also currently grappling with issues of national identity, biculturalism, multiculturalism, family and behavioural

dysfunction and cohesiveness. However, Marsden research report provided the details of social and cultural benefits in

Newzealand17. Though, new knowledge creation has a very strong value proposition for the use of public funds in this country18.

Hence, in social perspective, our present report recommends that New Zealand is a best place to the social benefits.

Technological Aspects

New Zealand's tech sector is diverse and advanced. It’s a breeding ground for innovation and competes successfully on

the world stage. Technology is increasingly enhanced as the base of economic and social development strategy. New Zealand’s

information and communications technologies (ICT) sector is diverse, covering all aspects of life include payments, wireless

infrastructure, digital content, telecommunications, geospatial, agricultural technology, health IT and food and beverages sector19

Legal

In legal perspective of Newzealand showed there are no specific payroll tax, no social security tax and no capital gains

tax. However, this country has a low-compliance and competitive tax system. Further, New Zealand has a tax-deductible business

expenses (covers research and development) and recoverable Goods and Services (GST) tax (similar to VAT) and depreciation.2021

Moreover, New Zealand has a stable and internationally competitive economy. A wide range of free trade agreements, pro-

competitive regulation, an efficient tax code, an open political system and the absence in almost all sectors of import tariffs or

Government subsidies, have given rise to an efficient, globally competitive economy that facilitates both domestic and foreign

investment. Hence, legal system of Newzealand is very strong to build a new business.

Environment

In environmental perspective, overall country has stable, secure, proximity and genuine environment hence few

companies have interested to start up their business in Newzealand.22Therefore to set up the coffee shop in this country is highly

suitable.

Consumer Market Analysis

Geographic Segmentation

As porirua city is a lifestyle city of choice, a great place for families with a prosperous and dynamic business and

economic sector23. Porirua environment has greater competitive environment, make sure accurate and focused strategies to set up

16 http://www.wellingtonnz.com/business/business-environment/business-landscape/

17 http://www.royalsociety.org.nz/expert-advice/papers/yr2011/development-and-research-in-new-zealand/

18 http://www.royalsociety.org.nz/expert-advice/papers/yr2011/development-and-research-in-new-zealand/

19 https://www.newzealandnow.govt.nz/work-in-nz/nz-jobs-industries/information-technology-jobs

20 https://www.sbc.org.nz/__data/assets/pdf_file/0004/99490/Part-1-The-Social-Role-of-Business.pdf

21 https://www.nzte.govt.nz/en/invest/new-zealands-investment-advantage/

22 https://www.nzte.govt.nz/en/invest/new-zealands-investment-advantage/

23 http://www.pcc.govt.nz/DownloadFile/Publications/Economic-Development-Strategy/Porirua-City-Economic-

Development-Strategy-2009-19

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Page 16 of 43

coffee shops in this city hence it is a good

coffee shops in this city. Hence it is a good place for starting a new coffee shop in this region24. Further almost all coffee shops are

working in Monday-Sunday with the time of 7.30-11.00 pm in this city.

Demographics

In Newzealand, the coffee culture is great specifically country’s coffee is one of the best in the world reported by CNN25.

Their love for Flat Whites has been contagious as down under's trademark drink is rapidly growing in popularity across the world. A

nation full of caffeine addicts, it has a variety of cafes, each with its own distinct attraction. Certainly a paradise for coffee lovers!

Cadbury World understood the craze for coffee among the Kiwis and opened the first branch of their chocolate cafes in the

country26. The customers are allowed to use their creativity to come up with personalized orders from a host of Cadbury products.

Auckland given a stable coffee story wall, few coffee shops like Havana filtered coffee, choch-cherry pie in Newzealand provide true

taste of coffee27. According to Thomson and Schiess (2010) the following are the demographics details of caffeine exposure coffees

or tea used by Newzealand people. These figures are favourable for the growth of the industry:

Table 1: Demographics details of coffees consumption in New zealand

S.No

Description

Status

1.

Total coffee habitual

1500

2

Day-wise

82%

3.

Gender-wise

Males-2.4 cups

Females-1.9 cups

4.

Age group

Cups/ day

Age-wise

20s

1.8

30s

2.0

40s

2.2

50s

2.4

60s or older

2.4

Source: Compiled from Author 2015

Psychographics segmentation

Zagat conducted its third annual National Coffee Survey and released the results last week. Nearly 1,500 respondents

weighed on their coffee habits. Of those who said they like coffee, 82 percent admit to drinking it daily. Males drink on average 2.4

cups of coffee per day, while women consume 1.928,29. Coffee consumption appears to increase with age, and the number of cups

per age range found in the survey is as follows:

• 20s: 1.8 cups per day

• 30s: 2.0 cups per day

24 http://www.pcc.govt.nz/DownloadFile/Publications/Long-Term-Council-Community-Plan-2009-19/PCC--421159-

v1-LTCCP_2009-19_CEO_PCC_Poriruas_Economic_Future_30_October_08

25 http://edition.cnn.com/2014/09/29/living/how-to-make-pour-over-coffee-eatocracy/

26 http://www.newzealand.com/in/article/new-zealand-heaven-and-haven-for-coffee-lovers/

27 http://www.newzealand.com/in/article/new-zealand-heaven-and-haven-for-coffee-lovers/

28 http://ktar.com/story/97950/national-survey-sheds-light-on-coffee-consumption-trends/

29 http://zagat.blogspot.in/2015/02/national-coffee-trends-revealed.html

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40s 2 2 cups per day

• 40s: 2.2 cups per day

• 50s: 2.4 cups per day

• 60 or older: 2.4 cups per day

Respondents said they are increasingly purchasing coffee outside of the home — up 8 percent from 2014. Men are more

likely to purchase a cup of joe from a smaller chain or single location coffee house (23 percent) as opposed to a large national chain

(20 percent). The average price respondents said they pay for a coffee-based drink is $3.28, compared to $3.05 last year and $2.98

in 201330. Thirty percent of men said they prefer a regular cup of coffee, while 14 percent said espresso. Most males (57 percent)

prefer not to add sweetener, while 14 percent said they choose raw sugar. Nearly half of the male respondents said they like their

coffee black (42 percent), but when it comes to adding another ingredient, 20 percent said half-and-half is their top choice31.

Behavioral segmentation

Globally, coffee lovers have differed especially women and men. Women also prefer lattes type of drink while male prefer

a regular cup of joe and prefer black. All coffee drinkers quaff, on average, just over two cups a day. And if buying at a coffee shop,

coffee lovers payed a lot for that java: about $3.28 a drink, up 30 cents in one year. These findings, from Zagat’s recently released

third-annual coffee survey, are drawn from 1,486 respondents nationwide. The survey found consumption increases by age. Coffee

lovers in their 20s drink on average 1.8 cups a day, versus those in their 30s (2), 40s (2.2), and 50s and 60s (2.4). Other highlights:

48 percent of the participants buy coffee from a coffee shop, while 42 percent make their own at home or at work; 52 percent don’t

add sweeteners (if a sweetener is used, raw sugar is preferred over granulated sugar and Splenda); respondents say the price of a

cup of coffee is too high at $3.67 for regular coffee, and $5.07 for barista-prepared drinks32. Further people expected proper service

quality from coffee shops.

Competitor and market trend

Entry into this industry is fairly limited as its takes a large infrastructure, a great deal of support, and a few amount of

investment to create a coffee shop.

Industry trend

It is identified in Newzealand cafes/bars including Independent operators continued to dominate the landscape of

cafés/bars, making up a value share of 86% in 2014, which has not changed over the review period. Further those people are strong

in bars/pubs and cafés, where individualism and uniqueness are positive attributes for patrons looking for a special atmosphere to

have a meal and/or drink33. In particular, these independent operators are strong in rural or country towns which tend to have a local

pub, where people tend to gather, and a number of independent cafés, which are usually frequented at lunchtime34.

30 http://ktar.com/story/97950/national-survey-sheds-light-on-coffee-consumption-trends/

31 http://ktar.com/story/97950/national-survey-sheds-light-on-coffee-consumption-trends/

32 https://www.bostonglobe.com/lifestyle/food-dining/2015/03/10/women-want-lattes-men-want-

espresso/hoHpIlI03UFxoH7xsfFfTP/story.html

33 http://www.clickpress.com/releases/Detailed/730514005cp.shtml

34 http://www.euromonitor.com/cafes-bars-in-new-zealand/report

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figure 2 growth of coffee industry in newzealand

Figure 2: Growth of coffee industry in Newzealand

50

45

41

37

40

Share market value

35

30

25

25

18

20

15

10

5

0

2011

2012

2013

2014

Year-wise

Source: Adopted from 35, 36

Competitors

Though, Porirua city is a strong, dynamic, regional centre, built on sound infrastructure and with a vigorous and

sustainable economy37. They are more number of coffee shops in Newzealand and especially in our selected city Porirua have lot of

coffee shops at around 80 shops38. Especially some of the shops like Café Kaizen, Groundup Café, Peppermill Deli and Café,

Charlies Café, Butler’s coffee shop, Ruby Café, and Café Mondo who provide stiff competition. All the existing cafes provide

excellent customer service, delicious different types of cafes and reasonable price.

Competitive edge

Unique attraction, first of its kind in the targeted area

Our Target Audience ranges from adults to older people. The coffee shop has various kind of activities targeting

all age groups and professionals

Majority of the cafes are comes under the part of restaurant used trained professionals. However, our Little India

provides traditional Indian base coffee.

35 http://www.wares.co.nz/feature-stories/february-2013/coffee-culture-a-market-that-s-full-of-beans

36 http://www.euromonitor.com/coffee-in-new-zealand/report

37 http://www.pcc.govt.nz/Business/Support-for-Business/Porirua-City-Council---Economic-

Development/Developing-an-Economic-Development-Strategy

38 https://www.google.co.in/webhp?sourceid=chrome-instant&ion=1&espv=2&ie=UTF-

8#q=list+of+coffee+shops+in+Porirua+city&tbm=lcl&start=80

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slide20

Little India provide compact, family-owned fixture offering familiar Indian dishes in a relaxed environment and their

service was good and the restaurant was clean39

Marketing strategies

Target market

Porirua is a major target market. The total population of this city is 51,717 people among this female population (26,814)

are higher than male (24,906). The maori population are majorly found in this city. The residents of this area are occupied dwellings

(17,013) according to the census report 201340. After getting established in this area, the firm will be expanded to other locations in

order to provide convenience to the customers.

Product strategies

The opening of traditional Indian base coffee shop is a destination for Little India. Product itself should have some special

characters, the author’s café is a traditional Indian base café, and therefore some products (coffee beans) from India will be the

special product in this café. Little India will use Indian coffee beans for their coffee production. In India, the export of coffee is about

4.5 percent across different parts of the world41. Traditionally, India has been a noted producer of Arabica coffee but in the last

decade robusta beans are growing substantially due to high yields, which now account for over 60 percent of coffee produced in

India. The domestic consumption of coffee increased from 50,000 tonnes in 1995 to 94,400 tonnes in 200842. As of 2010, between

overseas43.

70%

and

80%

of

Indian

grown

coffee

is

exported

The

most

commonly

used

coffee

beans

are Arabica and Robusta grown in the hills of Karnataka (Kodagu, Chikkamagaluru and Hassan), Kerala(Malabar region) and Tamil

Nadu (Nilgiris District, Yercaud and Kodaikana44l). They are multiple types of coffees are prepared by worldwide specific to New

Zealand are discussed in next section.

Description of the products

Little India coffee bar would offer two products coffee beverages and pastries in the comfortable environment. Coffee

beverages will be the main product sold by the cup in three sizes. Further, Little India would offer its customers the best-prepared

coffee in the area that would be complimented with pastries, as well as free playing Indian games such as chess, ludo through this

people can enjoy them visit.

39 http://www.littleindia.co.nz/

40 http://www.stats.govt.nz/Census/2013-census/profile-and-summary-reports/quickstats-about-a-

place.aspx?request_value=14344&tabname=

41

http://agritrade.iift.ac.in/html/Training/ASEAN%20%E2%80%93%20India%20FTA%20%20Emerging%20Issues%20f

or%20Trade%20in%20Agriculture/Coffee%20Export.pdf

42"Coffee Data". Coffee Board of India. Retrieved2010-10-05.

43Waller, J. M., Bigger, M., Hillocks, R.J. (2007). Coffee pests, diseases and their management. CABI. p. 26.ISBN 1-84593-129-7.

44

http://agritrade.iift.ac.in/html/Training/ASEAN%20%E2%80%93%20India%20FTA%20%20Emerging%20Issues%20f

or%20Trade%20in%20Agriculture/Coffee%20Export.pdf

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types of coffee

Types of coffee

S.No

Types of coffee

Products description

1.

Flat white

one third espresso, two thirds steamed milk with a touch of swirled froth

2.

Espresso / short black

basis for all coffee styles, espresso is full-flavoured, fragrant, with a velvety

body and lingering after-taste; single serving in a demi-tasse (small cup)

3.

Macchiato

a single or double espresso shot, just stained with frothed milk

4.

Long black

single serving of espresso, with the same amount of hot water added;

served in large cup filled to just under the top, or sometimes with the water

provided separately

5.

Cappuccino

regular espresso with equal parts steamed milk and foam, sprinkled with

chocolate or cinnamon

6.

Caffe latte

regular espresso, topped with hot milk and little or no froth

7.

Mochaccino

one third each of espresso, steamed milk, cocoa

8.

Ristretto

(‘restricted’) is 15-20ml of espresso, the essence of coffee

9.

Piccolo latte

miniature latte made with ristretto and 70ml of steamed milk; delicate

flavoursome drink

10.

Affogato

espresso served over ice-cream

11.

Espresso Romano

espresso served with a twist of lemon

12.

Latte macchiato

steamed milk with espresso on the side

13.

Espresso con panna

espresso topped with a dash of whipped cream

14.

Cortado

Spanish version of the piccolo served in a 60ml demitasse cup

15

Fluffy

for kids, a demi-tasse filled with foamed milk, sprinkled with chocolate and

served with marshmallow on the side and a small chocolate fish.

16.

Plunger Coffee

Water just off boiling is poured over coarsely ground coffee, and the

mixture is stirred to break up the floating coffee grounds so that they sink.

The mixture is then allowed to steep for 2 to 4 minutes. The mesh filter is

then plunged slowly to the bottom, pushing the grounds with it. The coffee

may then be poured.

17.

Stovetop

Traditional Italian method of producing espresso-style

18.

Americano

Double shot topped with hot water leaving room for milk or cream.

19.

Irish Coffee

this type of coffee is brewed with whiskey, sugar, and a thick layer of

cream on the top

20.

Vienna

strong espresso together before whipped cream is added as a substitute

for milk and sugar

21.

Mochachino

A ‘mocha’ is just a latte with added chocolate powder or syrup, as well as

sometimes being topped with whipped cream

22

Babycino

warm milk in a small cup and topped with milk froth and chocolate powder

Source: Adopted from 45, 46,47, 48

45 http://media.newzealand.com/en/story-ideas/new-zealands-dedicated-coffee-culture/

46 http://www.robertharris.co.nz/coffee-101/tips-and-tutorials/types-of-coffee/

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competitive advantage

Competitive advantage

Competitive advantage is based on core competence. But that’s not all. Core competence is what a company does well,

but competitive advantage is what makes company’s product/service better than others in the customer’s eyes. The competitive

advantage of Little India is based on their service and quality of the drink. Further Little India would give comfortable and pleasant

environment such as unique attraction under one roof with proper amenities and is affordable, first of its kind in the targeted area all

these would be seen good and relevant in the customer’s eyes. Thus, this can be seen as a competitive advantage.

Place strategies

Place refers to provide a location where customers can easily access the products. The location where a business takes

place will affect customer’s perception on product (Blythe et al. 2010, 19249).

Location

Little India restaurant found in Wellington region, where it is located in the Mungavin Homestead, one of Porirua's most

historic old homes, now owned and restored by the local council is selected to open a new coffee shop50. Little India is a very

attractive place in the coffee bar of the growing demand for services fluently being opened where people can come and drink only

coffee not only in itself but also would feel cool. This is because a lot of shops in Porirua, but not such a quiet place where people

can come and feel great feast. The second is that the coffee bar was already being opened the restaurant. The resulting two

different industries would benefit from each other. Although with no prior reviews on Dine Out, the restaurant has actually been

open for three years and is reached via an attractive driveway up from the road through trees and bush. It has two spacious high-

studded dining areas, one seemingly kept for larger groups and the other reserved for smaller ones. That is one reason why the

coffee bar in a small part of being opened. Inside the coffee bar on the left as you enter the restaurant, which would be in the range

of 1800 square meters. Little India coffee bar is owned and operated by Jugnu gill. He has a background in the food industry

because he started his firm with small chip and fish shop outside Dunedin in 1991. Numerous customers come to the coffee bar

which is the goal of Little India; as the client is the people living in the surrounding area such as Cannons creek, Ranui heights,

Waitangirua, Aotea, Ascott park, Mana, Plimmerton, Whitby, Elsdon, Titahi bay.

47 http://www.canstarblue.co.nz/food-drink/coffee-shops/coffee-types-explained/

48 https://www.quora.com/What-are-all-the-different-types-of-coffee-drinks

49 Model 1 pdf

50 http://www.littleindia.co.nz/wellington-porirua

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figure 7 little india dunedin 9016 new zealand

Figure 7: Little India - Dunedin, 9016, New Zealand

Source: Adopted from 51

Layout

The traditional Indian base coffee shop is a concept that is being designed after consideration of individual feedback and

market potential. After verifying the square metre of their restaurant, the below concept plan was developed for Little India coffee

shop.

51https://www.google.co.in/maps/place/Little+India/@-

45.8734226,170.5030975,17z/data=!3m1!4b1!4m2!3m1!1s0xa82eac0d62c2cef1:0x7e646ae977505943

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the planned coffee shop is divided into three

The planned coffee shop is divided into three sections; one is service area; secondly reception and thirdly waiting lounge.

Service area

This section will be the attraction to retain the customers by providing efficient service quality. One area of this section will

be occupied by kids and adults for playing games.

Reception

This section will be the centre piece of attraction and the main piece around which entry of customers in coffee shop. The

reception area will be set up with colourful designs and higher level of interior decorations. Receptionists will have good skills and

knowledge to attract the customers by providing the details whatever asking the customers.

Waiting Lounge

This section also plays a key role in coffee shop for providing relaxation and waiting option for customers. This section will

support the customers for reducing the stress of waiting of long time with full enjoyment by giving some magazines and other new

articles, general knowledge books etc. For Kids will provide toys for playing and other cookies for their happiness.

Hours of Operation

Coffee bar will be open seven days a week, but weekend special the shop will be open until late night which is fine

according to a market strategy. The opening duration of Little India coffee shop is from 7.30 hours to 11.00 hours from Monday to

Sunday. It is operational of Sundays too and if required, the duration can be stretched. Start-up procedures are the responsibility of

the day manager who reports to work an hour prior to opening hours in order to begin the start-up procedures. Prime operating

hours go on from 2100 hours to 0000 hours on Friday and all weekends – Saturday and Sunday, totalling up to 156 hours in a

month.

Seasonality trends

For coffee shop, almost all the seasons will be possible. Specifically, summer and autumn seasons will be suitable for

coffee lovers to frequently drink. Others seasons will be possible to drink but revenue will be yield higher at summer and autumn

seasons. The coffee shop will reach the target population by providing weekly e-Blasts to an emailing list, weekly newsletters, local

newspapers advertisements and posters in local businesses.

Price strategies

Price not only brings income to a company, but also gives the quality image. People tend to consider that a higher-priced

product also refers to a high quality product (Blythe. et al. 2010, 192). Price influences marketing positioning52. The appendix –A

table given the price strategy for different coffees:

52 Model 1

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slide25

S.No

Name of the coffees

Price

1.

Flat White

$3.70 to $6

2.

Americano

$3.90 to $6

3.

Latte

$4.10 to $7

4.

Cappucino

$4.10 to $7

5.

Café Mocha

$4.90 to $7

6.

White Chocalate Mocha

$4.90 to $7

7.

Caramel Macchiato

$4.90 to $7

8.

Caffe Breve

$2.20 to $6

9.

White Chocalate mocha

$3.75 to $ 4.75

10

Freshly Brewed Coffee

$1.85 to $ 2.45

11.

Cinnamon Dolce Latte

$3.65 to $4.65

12.

Skinny Vanilla Latte

$3.45 to $4.65

13.

Caramel Flan Latte

$3.75 to $4.75

14.

Teavana® Oprah Cinnamon Chai

$3.65 to $4.65

Tea Latte

15.

Skinny Peppermint Mocha

$3.95 to $4.95

16.

Pumpkin Spice Latte (Limited Time)

$4.25 to $5.25

17.

Salted Caramel Mocha (Limited

$4.25 to $5.25

Time)

18.

Toasted Graham Latte (Limited

$4.25 to $5.25

Time)

Source: Adopted from 53,54,55

Promotion

With the help of the marketing strategies, the coffee shop must reach as many of their target population as possible.

Various telecommunication approaches such as Internet based advertising; Radio based advertising, commercial ads in TV, Mobile

advertising, Posters and flyers and in magazines and newspapers could be used to reach the target population.

i) Personal Selling

Maximum part of personal selling is done by the coffee shop via the box office and the internet as well. People wanting to

rent out the place for a searching suitable coffee shop details in internet regarding rate bands and availability. Since there are many

corporate offices and other private offices around the proposed location, the coffee shop will appoint two sales executives for

promotion purpose.

ii) Advertising & Public Relations

Several advertising initiatives are conducted by the coffee shop on the basis of the new openings and their promotion

strategy. Display posters are the most popular mediums and are often put up in local business areas. Different types of coffee

including menus will promote on the website a copy of which can be seen in this report in the supporting documents section.

53 https://www.zomato.com/auckland/starbucks-massey/menu

54 https://www.newzealandnow.govt.nz/living-in-nz/money-tax/comparable-living-costs

55 http://www.fastfoodmenuprices.com/starbucks-prices/

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newsletters are another advertising mode that

Newsletters are another advertising mode that contains calendar details of events and goings-on at the coffee shop. Besides this,

the coffee shop will also promote online advertising initiatives on their website by means of photographs, descriptions and present

promotions, and updated new varieties of coffee. Local newspapers as well as websites also cover the coffee shop details and carry

information about their menu and price details. Because of this, the reach of the publicity also spreads much wider (Google Ads,

Affiliate Marketing)

Sales Promotions

Adequate discounts are given by the coffee shop to local area residents and frequent visitors including offer in price rate

during the festival season and membership card for frequent visitors so as to increase sale.

Performance measures

In a sense, all coffee shop measure performance. They may do it systematically and thoroughly or on an ad hoc basis and

superficially, but they do it. The bottom line is that coffee shop have to track and monitor events to be able to know what they are

doing. According to Neely et al (1995) the level of performance a business attains is a function of the efficiency and effectiveness of

the actions it undertakes. Although there are several measures, the most widely cited is the balance score card which will be applied

to the present business model. The balance score card combines both financial and non-financial measures which can be grouped

into financial and non-financial measures. The set of measures can be grouped into four main perspectives which enable

supervisors to answer four important questions about their coffee shop.

The Financial Perspective:

The Financial Perspectivecovers the financial objectives of an coffee shop and allows supervisors to track financial

success and shareholder value. The primary financial objective of coffee shop is to ensure profitable growth and to manage

operating costs. The coffee shop plans on maximising the revenue growth and to keep reducing the operational costs per person or

customer. By doing so, the company can provide maximum success for their shareholders.

The Internal Business Perspective

The Internal Process Perspective covers internal operational goals and outlines the key processes necessary to deliver the

customer objectives. In the case of coffee shops largely depends on customer satisfaction and also is in line with the financial

perspectives of the organization. The coffee shop will keep customer service excellence as the key factor and will implement steps

to improve their level of service to the customers. Some of the measures that will be taken to ensure this are, recruit experienced

person or provide training for the current staff regularly to get their views and opinions and to educate and train them on serving the

customers better. In addition to this, another internal business process that will be implemented by the coffee shop is optimal asset

utilization. By ensuring that the equipments are maintained and serviced regularly, this in turn will help in maximising profits.

The customer perspective

In customer perspective covers the customer objectives such as customer satisfaction, market share goals as well as product and

service attributes. The coffee shop will keep in touch with the customers and will keep suggestion boxes and will earnestly review

them and incorporate as many of the customer’s suggestions.

The innovation and learning perspective

The learning and growth perspective covers the intangible drivers of future success such as human capital, organisational capital

and information capital including skills, training, organisational culture, leadership, systems and databases. The coffee shop will

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endeavour to keep learning from experience

endeavour to keep learning from experience of their competitors and to keep pushing towards introducing more innovative products

and innovative methods of carrying out the business operations.

Human resource management

Table: Roles and responsibility of employees in coffee shop

Source: Adopted from 56

Table: Roles and responsibility of the employees

Employee Designation

Roles and Responsibility

CEO

To ensure overall supervision of the running of the business and to

enact policies.

Managing Director

To aid the CEO and take a more hands on approach towards the

business operations and to ensure that policies are being maintained

and followed.

Head of training

To oversee employees well-being and to take care of them and also to

recruit more employees as required.

Financial controller

To keep an account of the financial transactions of the entire business

operations.

Reception and secretarial

To help the public in their queries and to be the face and voice of the

organization.

Admin and custom clearance

To maintain the overall equipment’s and other materials in coffee shop

Store Keeper

To maintain all the necessary products on the basis of manufacturing

date and also buy the necessary products for coffee shop

House Keeper

To maintain the coffee shop as clean and hygiene

Sales and delivery

To fulfil the customer satisfaction

Distribution and operation

To maintain the complete processing in production area and also fulfil

customer satisfaction

Source: Modified from 57

56 http://coffee-moments.com/aboutus.html

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health and safety policies

Health and Safety Policies

Health and safety will be taken very seriously by the management. Health and safety of both the employees as well as the

customers will be given paramount importance. The HR department will oversee the health and safety of all the employees. The

employees will be given proper time off every week. They will be given medical insurance on behalf of the organization. Furthermore

regular training workshops will be conducted for the employees. In the case of the visitors, health and safety warnings and labels will

be prominently displayed with clear and legible letters for everyone to see.

Capital resource plan

The most vital component of business planning is capital planning. The capital to be invested by the company is found to

highly influence the activities of that company. Land acquisition, construction of premises, stocks as well as display necessities of

the business are the major capital requirements. Overall capital requirements of the firm as well as the sources of the capital have

been discussed in the plan.

Objectives of the plan

To evaluate the overall capital funding requirements for the business.

To check the various resources of funds.

To allocate the available resources in an optimum manner to get the best results.

To check the repayment terms of the funds.

CAPITAL REQUIREMENTS

Some of the major expenses of the firms are:

Premises: The coffee shop is going to be open as one of existing restaurant of Little India at the major commercial location of the

city. Poriurua is the location of the coffee shop.

Land:

Building:

Equipments: A

Displays:

Store Equipments:

Website Development:

Planning regulations

The laws and regulations in terms of constructions have been discussed in this section.

Parking Space:

Financial plan

57 http://coffee-moments.com/aboutus.html

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various forecasted financial statements

Various forecasted financial statements of the business for the next five years have been given in the financial plan. This will be

helpful to assess the feasibility of the venture in financial terms. As this plan shows the flow of cash in the business, it is an

important component of business planning. The financial plan of the business will include the following:

Income Statement

Balance Sheet

Cash Flow Statement

Breakeven Analysis

Ratio Analysis

Investment Appraisal

Objectives of the plan

To check the financial feasibility of the venture.

To calculate the various financials of the business for the five years of the operations of business.

To calculate the profitability of the business with the help of Income statement.

To check the flow of cash in the business with the help of cash flow statements.

Start-up Expenses

The expenses in terms of getting license/permits to run entertainment ventures, product promotion and other miscellaneous

expenses will come under the category of start-up expenses

Risk and Mitigation plan

Risk and Mitigation plan is a part of overall business where the proactive risks of the business have been handled. The main

intention of this plan is to identify whether the risk may occur during the course of business and plan for the mitigation of the risk. As

per Blos et al (2010), risk management is often noted as anticipated process that addresses the issues which may cause risk to the

significant objectives of the business. Since this process could facilitate the study to recognize the practical risk and mitigation occur

during the course of business and hence it is considered as an important part in the business planning. The following are the

important objectives of the business plan.

OBJECTIVES OF THE PLAN

To determine the range of risks involved in business planning in respect to its possibilities of consequences.

To measure and assess the mitigation for the risk during the course of business.

To perform the risk reassessment at regular intervals.

To provide solutions for the issues faced by HRD of the firms

To check the customer’s feedback with respect to the firm products.

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analysis of the risks involved

ANALYSIS OF THE RISKS INVOLVED

Operations plan

Business Location and staff

Business Operations

Customer support service

Evaluation

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9 0 list of coffee shops in newzealand

9.0 LIST OF COFFEE SHOPS IN NEWZEALAND

List of coffee shops in Newzealand

List of coffee shops

S.No

Region

Coffee qualities and current status

Provide aesthetic and charming environment for

1.

Cosset

Mt Albert,

customers

Auckland

Excellent vegan food with tea and coffee

Fair trade and organic food

2.

Little Bird Unbakery

Ponsonby

Provide coffee using hazelnut milk

Tastiest and delicious healthy food along with raw organic

vegan, gluten free, soy and dairy free products58

3.

Queenies

Auckland

Refreshing menu with savoury delights include Turkish eggs

with chilli butter

Warm and welcoming atmosphere

Queenies is available for private dining Wednesday to

Saturday 5 till 10pm59.

4.

Teed St Larder

Auckland

Provide baked goods and perfect place

Make three beans coffee60

5.

Wai Kitchen

Waiheke

Given finest cafe with magic mix of elegance and casual

relaxation

House-smoked salmon with eggs, avocado and toasted local

bread61

Homemade pastry alongside an expertly made Three beans

Organic Fair Trade Coffee

6.

Cafe on Kohi

Kohimarama,

Provide lengthy menu and lovely beachy vibe

Auckland

7.

Takapuna Beach Café

Takapuna,

TBC is deservedly famous for its home-made gelato, its fish

Auckland

and chips, its baked goods, its almost bewilderingly large

breakfast menu (so many choices, so early in the morning!),

which features some of the best granola you’ll find anywhere

in the city, which is also true for its spicy eggs, its eggs

58 http://littlebirdorganics.co.nz/collections/unbakery

59 http://queenies.co.nz/evening/

60 http://www.teedstreetlarder.co.nz/

61 http://www.waikitchen.co.nz/

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benedict and half the rest of the lineup

benedict and half the rest of the lineup, and now it’s even true

for the cronut.

Yes, folks, the dangerous lovechild of doughnuts and

croissants was first introduced to Auckland at the Takapuna

Beach Cafe62

8.

St Heliers Bay Cafe & Bistro

St Heliers,

Supreme winner restaurants

Auckland

One of Auckland’s best new restaurants in the city lovely new

delights

It’s comfortable and sophisticated, a lovely place to sit and

watch the water, a happily busy hub for the suburb and a

repository of excellent service and some very good food

Provide hot and strong coffee63

Opening time is 7.00 am- 11.00pm

9.

Federal Delicatessen

The food is so good, we barely know where to start: salmon

latkes with crème fraîche and dill, a breakfast salad chock full

of haloumi, smoked fish hash, reuben sandwiches, matzo ball

soup — all stars in this food-lovers’ paradise

Opening time is 7.00 am-1.00pm64

Columbus65

10.

Porirua, Auckland

A highly recognised and trusted brand offering customers

exceptional coffee and chef-prepared food in a modern café

environment

Columbus Coffee is an exciting and unique company. We are

credited with kick starting the cafe culture in Auckland in the

mid nineties, Columbus Coffee set the standard that other

cafes have aspired to since.

We have opportunities throughout the country - both with

brand new cafes and to take ownership of existing cafes.

It takes a particular kind of person to be a Columbus Coffee

franchisee. We are looking for dedicated individuals who have

a passion for coffee and hospitality service66.

11.

Ortolana

Britomart,

Super-smart fitout, a menu created by Takapuna Beach

Auckland

Cafe’s Jo Pearson, breads and baking from The Store and

62 http://www.takapunabeachcafe.co.nz/

63 http://www.metroeats.co.nz/restaurant-reviews/st-heliers-bay-cafe-bistro-review/

64 http://thefed.co.nz/

65 http://www.franchise.co.nz/franchise-opportunities/611-columbus-coffee

66 http://www.franchise.co.nz/franchise-opportunities/611-columbus-coffee

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sweet treats from milse

sweet treats from Milse

Ortolana is one of Auckland’s truly great little seven-day, all-

day establishments.

Customers loved the soft eggs with mackerel and capers, and

the sago and lemon custard with dates is pretty cool too67.

7-11pm

The perfect place to drop in and refuel.

12.

Depot and Ima

Auckland

It’s chef Al Brown’s place and reflects perfectly his attitude

towards food: in season, beautifully cooked, to be enjoyed

with friends.

Opening time is at 11.00 amdaily and closed atSaturday 24th

Oct; Sunday 25th Oct; Monday 26th Oct

Most of the cooking is over charcoal or hard wood so there’s a

real succulence to the flavours.

Order a selection of small plates and pass them round. Try the

freshly shucked oysters.

Then there’s the wine list – small, but perfectly formed, with

many of Al’s top picks68.

6.30-3.00pm69

13.

Jaylons cake and coffee house

Porirua

14.

Bread & Butter

Ponsonby and

Bread & Butter is a bakery as well as a great cafe.

Grey Inn

With efficient friendly service and a solid menu, it’s especially

popular with mothers and their babies.

Sun-filled windows, big tables, easy parking and all that good

food and become very partial to the mushroom, ham and

cheddar omelette, and the walnut rye bread.

wheat-free sourdough

Leavened, yeast-free, dairy-free, and gluten-free bread, a

wide range of vegan breads as well as a large selection of

bread rolls including the famous German pretzel rolls

complete the range70

67 http://www.metroeats.co.nz/best-cafes/the-50-best-cafes-in-auckland-2013/

68 http://www.eatatdepot.co.nz/

69 https://www.zomato.com/wellington/jaylon-coffee-house-porirua-central/menu

70 http://www.breadandbutter.nz/about-us/

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slide34

15.

Federal & Wolfe

Auckland

It also offers a great range of ethically inspired menu and

counters options, and is staffed by seasoned professionals

who look after their customers superbly well. The bircher

muesli, which we’ve had with fresh pear, is quite possibly the

best in the city

8.30-4.00PM71

16.

Good One

Ponsonby,

Beautiful new fitout and delicious counter food supplied by

Auckland

Little & Friday

Good One just keeps getting better

Chemex, single-origin blends and the usual favourites72

The relaxed atmosphere urges you to pick out one of their

National Geographic Magazines and point out all the locations

you dream of visiting73.

17.

Little & Friday

Ponsonby,

Little & Friday remains the pinnacle in baked goods

Auckland

With boutique espresso and filter coffee, our whole range of

cabinet food and almost all of our menu available74

8-3.30

18.

Petit Bocal

Sandringham

French baked goods

Serving delicious breakfast, lunch and sharing plates for

dinner, as well as three to four mains on our evening specials

board. We are just a stone's throw from eden park, so a

perfect place for your pre-match meeting75

7-10pm

19.

Reuben cafe

Auckland

Ruben boasts a cabinet full of gorgeous sandwiches and

salads, including a huge selection of gluten-free options, and

pies and sweet things from Scratch Bakers76

Ruben Cafe has a friendly, modern atmosphere that makes it

easy to relax in the heart of this busy business district.

6.30-3.00pm77

71 http://www.heartofthecity.co.nz/dining/auckland-cafes/federal-wolfe

72 https://www.zomato.com/auckland/good-one-ponsonby

73 https://www.zomato.com/auckland/good-one-ponsonby

74 http://www.littleandfriday.com/#follow

75 http://petitbocal.co.nz/

76 http://parnell.net.nz/directory-listing/ruben-caf/

77 http://parnell.net.nz/directory-listing/ruben-caf/

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the coffee was the perfect temperature

The coffee was the perfect temperature for drinking and

20.

Scullery

Auckland

served with a lovely souvenir spoon which we thought was a

nice touch.

The food was some of the best brunch fare we've had in this

city. We ordered the spiced wagyu mince and forest

mushroom ragu but it was hard to decide as all the offerings

were interesting and enticing. Both our choices were generous

in their portions, the mince was nutty and subtly spicy. The

succulent mushrooms were soaked up by a thick slice of soft

bread - brunch perfection.78

21.

The Store

Britomart

Casual-yet-excellent dine-in experience and delicious

takeaway options

Beautiful food, consistently excellent coffee and trademark

friendly service79

22.

Toru

Ponsonby,

Delicious German/Irish concoction of corned beef, colcannon,

Auckland

sauerkraut and crème fraîche

tancy your poached eggs with soft polenta, bacon hock, goats’

curd and vine tomatoes

The service is excellent, and the menu is small and

wonderfully varied.

7.30-4.00PM80

23.

Atomic coffee roasters

Auckland

Latest single origin coffees, seasonal beverages and

espresso.

The café offers a menu of sumptuous brunch & lunch staples,

as well as an array of impressive grab-and-go food and sweet

treats81

24.

Dida’s food store

Auckland

The Dida's concept is perfectly encapsulated in this bright

open space full of bright, smiling faces, all eagerly meeting the

myriad needs of a city that knows its pickled onions from its

pitted olives.

Offer a dazzling array of local and imported deli delights, from

exciting, new products through to centuries-old traditional

ones, and dried goods and exotic condiments that will

78 http://www.nzherald.co.nz/lifestyle/news/article.cfm?c_id=6&objectid=11133594

79 http://britomart.org/restaurants-and-bars/the-store

80 http://toru.co.nz/gallery.aspx

81 http://atomiccoffee.co.nz/pages/cafes

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complement or form the basis of your next

complement or form the basis of your next culinary creation.

Have a beautiful breakfast or lunch, a sensational coffee, or

take home a fresh sandwich or gourmet meal: the options on

offer are as dazzling as the food itself.82

25.

Dizengoff

Ponsonby,

Dizengoff offers consistently excellent food, coffee and

Auckland

service. It drowns in sunshine on a good day and is the perfect

spot both for Ponsonby people watching and getting away

from all that in a room upstairs. The mushrooms on toast is a

classic

26.

Kokako

Grey Lynn,

Strong advocates for Fairtrade and ethical procurement of our

Auckland

green beans and cocoa/sugar.

All Kokako Coffee and Drinking Chocolate has ‘third party

verification’ from both Fairtrade and Biogro NZ, to ensure it

meets stringent Fairtrade and organic certification

standards.83

Mon to Fri 7am – 3.30pm / Sat and Sun 7.30am – 4pm

27.

Eighthirty

Newton, Auckland

This ever-growing coffee empire has its headquarters on K’

Rd, where exposed brick and bikes decorate the walls.

Dedication to the perfect cup is evident through their great

baristas and freshly roasted beans, and also on offer are

counter food from Cool Food Catering and sweet treats from

The Caker’s Jordan Rondel, who bakes out the back84

Westmere

28.

Meola Kitchen

The counter food — check out those light and fluffy cinnamon

brioches — is especially good.

29.

Mimosa

Takapuna

Japanese inspired menu sourcing mainly organic and gluten

free ingredients

Sweet and savoury goods that accommodate almost any

dietary requirement85.

30.

Mojo

Newmarket

The Mojo Coffee Cart or Caravan is a great must have at any

event! Both are compact and have a sleek, functional design.

They are both fully contained units and provide Mojo’s

favourite blends of coffee, tea and hot chocolate.86

82 http://www.didas.co.nz/foodstore?location=jervois

83 http://kokako.co.nz/our-coffee-roastery/sustainability/

84 http://www.eighthirty.com/

85 http://www.cafemimosa.co.nz/

86 http://www.mojocoffee.co.nz/services/coffee-cart/

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slide37

31.

Monterey

Auckland

Monterey Cafe is a unique bar and restaurant located in the

heart of Spokane, making us headquarters for downtown and

downtown events! We're committed to helping our community

and have everything from delicious SoCal inspired pizzas and

salads 87

32.

Olaf’s Artisan bakery care

Auckland

There are plenty of chairs lined up neatly outside Olaf's

Artisan Bakery Cafe, even in winter. Upon each one sits a

carefully rolled little blanket, to keep those willing to brave the

weather nice and cosy while they sip on coffee and fresh air.88

33.

Richmond larder

Auckland

Richmond Larder is easy to overlook, nestled up next to the

very popular Ripe, but if you’re looking for a genuine cafe

experience, with great coffee, superbly attentive service and a

really nice back balcony to boot, the Larder is the place. As for

the super-tasty food, from baked beans to macaroons, they

make it all themselves

34.

Richmond Rd cafe

Auckland

Terrific food, highly trained staff and an elegant sophisticated

fitout89.

35.

Rosehip cafe

Auckland

Rosehip is one of the Hip Group’s oldest cafes, but don’t go

thinking any the less of it for that. It’s one of the few genuine

foodie gems in Parnell, a paragon of attentive service, and

while the menu’s good, the cabinets are so beautifully stocked

you may not want to look any further.

36.

Zomer

Takapuna

Located in the Beautiful Suburb of Takapuna Beach,

Zomer Cafe & Beach Club is a Casual

Dining Venue & a Place to Relax

With Family & Friends90.

37.

Zus and Zo

Auckland

Zus & Zo is a Charming Local Cafe Situated In a Sunny

Corner of Auckland's Herne Bay. Decisively Chic with a

Minimalistic Interior, We Offer the Perfect Place to Meet with

Friends or Mingle with the Locals on the Communal Table

Our Cuisine is Simple, Creating Wonderful Flavours, Using

Only the Finest Ingredients91

87 http://spokanemontereycafe.com/

88 http://www.olafs.co.nz/

89 http://www.richmondrdcafe.co.nz/

90 http://zomer.co.nz/about-us/

91 http://zusandzo.net.nz/index.php?page=about_us

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cafes for kids

Cafes for Kids

38.

Jam Organic Cafe

Auckland

Jam is off the main Hurstmere Rd strip in ever-improving

Takapuna and sprawls out onto the neighbouring Hurstmere

Green. Beautiful organic food graces both the counter and the

menu. A lovely brunch spot, great for children and nearly

unbeatable in the sunshine

39.

Catroux

Auckland

Catroux is a simple white Westmere room. A cabinet heaving

with delicious, nutritious bright salads, innovative panini's,

sticky pineapple and apricot glazed ham off the bone… plus

other daily creations.

We also offer delectable baked sweet treats and many healthy

treats; smooth strong Eighthirty coffee, green smoothies and

fresh juices.

The brunch menu changes with the seasons, providing

wholesome tastiness and exciting combinations.

We even have a sandpit and menu for the little people. It goes

without saying our bacon and eggs are free range.

We use specialty bread from Pukeko Bakery and make

everything onsite. We also supply our delicious food daily to

Eat 92

40.

Cereal Killa

Auckland

The price and portion was good and fair however many

elements of the meals were a let down.

The tomatoes look dried and have been standing out too long,

the haloumi was thick and undercooked and the potatoes

tasted quite nitrogenous.

Overall the food tasted fine but it wasn't fantastic due to little

composition problems.

Also misleading "pancake" was actually crepe. With carton

92 http://www.catroux.co.nz/

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bought custard taste 93

bought custard taste93

41.

Landreth & Co

Auckland

The food is tasty and quick, the coffee strong and fast.

42.

Raven & Cook

Auckland

Raven & Cook are looking forward to our new menu using the

new and exciting Spring arrivals.

First to herald the change is of course asparagus.

Usually a long way out in front at first as a luxury priced item,

as the supply has strengthened it’s now at a point where it can

be a staple.

Next comes a personal favourite, Artichoke. It’s inner leaves

can be torn off and lightly battered and served hot with aioli.

The stem along with the heart, once cleaned of the choke, can

be stuffed with anchovy and caper flavoured fresh

breadcrumbs, turned upside down and braised in olive oil...

yum94!...

43.

Ruby Red

Auckland

Ruby Red is the brightest spot in a charming little town centre.

It’s owned byHerald food writer Amanda Laird, who offers her

own take on fresh ingredients and tasty combinations. The

pies are very popular. As befits every suburban cafe, it’s

especially attentive to kids

Butlers Chocolate Café

44.

Porirua

Provide good experience to their customers

Tasty cafe was given

Suppliers relationship was good with customers

Delectable milk, dark and white speciality chocolate

assortments, Butlers Chocolates produce decadently creamy

toffee, velvety soft fudge, deliciously moreish chocolate filled

and solid chocolate bars, enticing milk chocolate truffles

delicately flavoured with famous liquors and delightful

seasonal collections at Christmas, Valentine’s Day, Mother’s

Day and Easter!95

45.

The coffee club

Porirua

Provide ‘excellent’ cup of coffee indulged at The Coffee Club

is a talented and trained barista, our world-class 'signature

blend', the perfect extraction and first-class coffee-making

equipment. With a welcoming and relaxed atmosphere on

93 https://www.zomato.com/auckland/cereal-killa-cafe-mount-eden

94 http://www.ravenandcook.com/

95 http://www.butlerschocolates.com/uk/about-us/who-we-are

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offer with every cup the only thing left

offer with every cup, the only thing left for you is to choose

your company96.

46.

Zampelles cafe

Porirua

Zampelle Italian restaurant offers a touch of old school with a

modern twist. The aim of our owner Anthony Zampogna, is to

provide a classic and enjoyable Italian dining

experience. Zampelle welcomes you to enjoy good food,

outstanding service and a relaxed atmosphere97.

Palmers Plimmerton

47.

Porirua

Cafe Mondo inside Palmers Plimmerton is a locally owned and

managed cafe with an excellent reputation for serving

delicious food and superb coffee. Mondo is a favourite with

family groups as the kids can safely enjoy the play area while

you relax with friends98.

48.

Muffin break

Porirua

Reputable, reliable and trusted café

Prepared fresh food and award-winning coffee99

49.

Café Kaizen

Porirua

Kaizen Cafe is a privately run cafe within the Pataka Complex

offering delicious quality food, from a light nibble to a full

blackboard menu.

Enjoy a fantastic coffee within Pataka’s wonderfully sunny

gallery atrium with views of our beautiful Japanese garden.

Kaizen Cafe is usually open from 10am until 4pm every day

except public holidays and other selected holidays100.

Provide delicious food and cafe101

50.

Peppermill Deli and Café

Porirua

11. RECOMMENDATIONS

12. CONCLUSIONS

13. GLOSSARY

14. REFERENCES

96 https://www.coffeeclub.com.au/our-menu/drinks/

97 http://www.zampelle.com.au/#who_we_are

98 http://www.palmers.co.nz/palmers-plimmerton/

99 http://www.muffinbreak.co.nz/franchise/

100 http://www.pataka.org.nz/venues/kaizen-cafe/

101 http://thepeppermill.co.nz/

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