Cafesprit Business Plan

Contents The Overture The Summary Our Products & Services The Market Analysis Our Strategy & Implementation The Financial Plan The Demographic Report Contacts

The Overture 1.1 Café D’esprit Objectives Café D’esprit is destined to become a daily gathering place for local

coffee enthusiasts,

a relaxing

place to

health/wellness aficionadas,

meet

your

friends and/or

and

businesses

Café D’esprit’s objectives for the first year of operations are: •

Become selected as the "Best New Cafe in the area" by the Local DISH.

associates. Café D’esprit is also a great destination for those who may need a place to dream as they escape the daily stresses of life, while they read a book, flip through the pages of a magazine, or even surf the internet.

•

Turn in profits beginning the first month of operations.

•

Maintain a 65% gross margin.

1.2 Café D’esprit Keys to Success With the growing demand for high-quality, healthy gourmet foods,

beverages,

and

great

service,

Café D’esprit

will

capitalize on its proximity to the ___________________________ to

Café D’esprit keys to success will be: •

A store design that will be both visually attractive to guests, and designed for fast and efficient service.

build a core group of repeat guests. Café D’esprit will offer its guests the best prepared _______________________ in the area

•

preparation techniques.

that will be complimented with _________________, as well as ________________________

that

its

patrons

can

____________________ to enjoy their visit.

Employee training to insure the best food and coffee

•

Marketing strategies aimed to build a solid base of loyal guests, maximizing the sale of high margin products, as well as offering catering and delivery services.

The company will operate a _______________ square foot coffee bar

within

a

walking

distance

from

_____________________________. The owners have secured this location through a ________________ lease with an option for extending. The have also provided $__________________ of the required $_______________ start-up funds. The remaining capital

1.3 Café D’esprit Mission Café D’esprit will make its best effort to create a unique place where guests can socialize with each other in a comfortable and relaxing environment while enjoying the best brewed coffees and other foods in town.

will be obtained through ___________________________ ___________________________________________________________.

We will be in the business of helping our guests to relieve their daily stresses by providing piece of mind through great

The company is expected

to

grow

sales revenue from

$_________ in FY2011 to $__________ in year three. As Café D’esprit will strive to maintain a 65% gross profit margin and reasonable operating expenses, it will see net profits grow from $_________ to $_________ during the same period.

ambience, convenient location, friendly guest service, and products of consistently high quality. Café D’esprit will invest its profits to increase employee satisfaction while providing stable return to its shareholders.

o

The Summary

•

square

feet

French

bistro

themed

cafe

located

near

______________________.

o •

Premises remodeling in the amount of $_____________.

•

Other

1.

__________________________

2.

__________________________

3.

__________________________ and

4.

___________________________ who jointly own over _____%

expenses include internet and Wi-Fi o

deposits of $______________. o The required start-up assets of $________________ include: •

Operating capital in the total amount of $_____________,

of the company. The start-up loss of the company is assumed in the amount of $_______________.

$______________ for the first two months and cash

includes employees and owner's salaries of

reserves

•

the state of California. _________________ owns _____% of the

o

___________________ hold minority stakes in Café D’esprit, LLC.

o

2.2 Start-up Summary The start-up expenses include:

o

Legal expenses for obtaining licenses and permits as well

Café D’esprit in the amount of $_____________, as well as other advertising expenses totaling $_____________ for the grand total amount of $______________.

•

Consultant fees of $___________ paid to ________________

o

first

three

months

equipment

(plates,

glasses,

Store

equipment

(cash

register,

security,

Office

equipment

(PC,

fax/printer,

phone,

of

operation

Other miscellaneous expenses - $________

Funding for the company comes from two major sources-owners' investments and _______________. The major owners, ____________________, ___________________, and ______________, have contributed $__________, $__________, and $__________ respectively.

Coffee beans (____ regular brands and _____

All other investors have contributed $____________, which brings

decaffeinated brands) - $___________

the

Coffee filters, baked goods, salads, sandwiches,

$___________ needed to cover the start-up expenses and assets

tea, beverages, etc. - $_____________

came from _______________________. Thus, total start-up loss is

Retail supplies (napkins, coffee bags, cleaning,

assumed in the amount of $______________.

total

investments

to

$_____________.

The

remaining

2.3 Café D’esprit Location and Facilities

Office supplies - $__________

o

Espresso machine - $________

o

Coffee maker - $________

o

Coffee grinder - $________

o

Food

service

equipment

the _________ square feet premises currently occupied by a coffee shop. The lease contract has an option of renewal for (warmers,

toasters,

_________ years at a fixed rate that Café D’esprit will execute depending on the financial strength of its business.

Storage hardware (bins, utensil rack, shelves, food case) - $________

o

commercial building at _________________________ in Newport Beach, CA. The company has secured a _______-year lease of

dishwasher, refrigerator, blenders, etc.) - $_______ o

$__________.

the

Equipment for the total amount of $___________:

Insurance (general liability, workers' compensation and property casualty) coverage at a total premium of

area

Café D’esprit will be located on the ground floor of the •

for help with various business related services.

•

Serving

etc.) - $__________

as the accounting services totaling $_____________.

Marketing promotion expenses for the grand opening of

chairs,

Start-up inventory of $________________, which includes:

company. ________________, as well as _________________ and

•

for

(approximately $_____________ per month).

2.1 Company Ownership

•

(tables,

furniture, file cabinets) - $________

which

Café D’esprit is registered as a Limited Liability Corporation in

equipment

ventilation, signage) - $________

services at $_____________ along with phone and utility

Café D’esprit's major investors are:

area

flatware) - $________ o

start-up

Cafe

centerpieces, sofa, chairs, etc.) - $________

per square feet for the total amount of $_____________.

Café D’esprit, a California Limited Liability Company, sells coffee, other beverages and foods in its _________________

Pre-paid rent expenses for one month at $___________

Counter area equipment (counter top, sink, ice machine, etc.) - $________

The floor plan will include a _______ square feet back office and a _________ square feet café area, which will include a seating

area with _______ tables, a counter, storage area and _______

Our Products & Services

bathroom(s). The space in the café will be approximately distributed the following way--______ square feet (i.e., ____% of the total) for the seating area, ______ square feet (_____%) for the production area, and the remaining _____ square feet

Café D’esprit will offer its guests the best tasting coffee beverages and foods in the area. This will be achieved by using high-quality ingredients and by following strict preparation guidelines.

(_____%) for the guest service area.

The cafe layout, menu listings and marketing activities will be This property is located in a commercial area within walking distance from ____________________, __________________, and ______________________ which sit on a major thoroughfare connecting the affluent ______________ neighborhood with the

focused on maximizing the sales of higher margin foods and drinks, which can be affordably priced. Along with espresso drinks, brewed coffee and teas, other healthy refreshment beverages will be sold including iced drinks, frozen drinks and smoothies.

busy commercial area.

and electricity hookups and will require only minor remodeling to accommodate the café theme envisioned. Café D’esprit's French bistro styled interior design along with its bistro styled exterior decor will convey the quality of the served beverages and foods, and will be in-line with the establishment's positioning as an eclectic place where people can relax and enjoy their

Café D’esprit will also offer its guests fresh breads, pastries, small salads, wraps and Panini sandwiches. For its gourmet clientele that prefers to prepare its coffee at home, Café D’esprit will offer its own private label brand of ground or unground coffee

poured over cubes of ice in a cup. Frozen drink are prepared by

displays, through which

passerby’s will be able to see guests enjoying their beverages, bistro styled exterior decor will be aimed to grab the attention of

it together with ice cubes to form the final frozen beverage.

And, smoothies will be prepared with the area’s best fresh fruits and vegetables that can be combined with yogurts, fresh juices and even protein supplements to add an extra power kick.

beans. Menu offerings will be supplemented by complimentary books, magazines, Wi-Fi and music that guests can enjoy while at the cafe.

Café D’esprit will demand proper preparation techniques as a paramount standard of its total quality services platform. A minor deviation from the amount of coffee in the shot, the size

total experience, as opposed to just a cup of coffee and a

the guest traffic

taking the espresso, fruit or vegetable drink and serving it

taking the espresso, fruit or vegetable based drink and blending

The commercially zoned premises have the necessary water

simple snack. The clear window

fresh fruit and vegetable based. Iced drinks are created by

3.1 Café D’esprit’s Product Description The menu of Café D’esprit will be built around espresso-based coffee drinks such as lattes, mochas, cappuccinos, etc. Each of the espresso-based drinks will be offered with whole, skimmed, or soy milk. Each of these coffee beverages is based on a 'shot'

of the coffee particles, the temperature of milk, etc., will affect the quality of the prepared drinks. This is a scenario that will not be accepted at Café D’esprit, but rather careful attention will be paid to every drink or food product prepared and served to the guests of Café D’esprit.

of espresso, which is prepared in espresso machines by forcing heated water through ground coffee at a high pressure.

Espresso shots are then combined with steamed milk and/or other additives like cocoa, caramel, etc., to prepare the espresso-based beverages.

3.2 Sales Literature Flyers, postcards, door hangers, and other printed materials will be distributed in the adjacent neighborhoods, at area malls and in selected office buildings within _______ weeks prior to the opening of Café D’esprit. Subsequently, the Café D’esprit

Other selections will include iced drinks, frozen drinks and smoothies. These beverages will either be espresso based or

website will be launched to increase the company visibility among its guest and other potential patrons as well.

The Market Analysis

that most of our guest clientele will be neighborhood resident,

4.3.1 Competition and Buying Patterns

office workers and people from the retail stores in the area.

Competition

U.S. coffee consumption has shown steady growth, with gourmet coffee having the strongest growth. Coffee drinkers on the West coast are among the most demanding ones. They favor well-brewed gourmet coffee drinks and beverages, along with other healthy food choices and excellent guest services.

Café D’esprit’s direct competitors will be other coffee bars Our market research shows that these are discerning customers that gravitate towards better tasting coffee and more healthy food choices. Furthermore, business-minded people consider coffee bars to be a convenient meeting location, where they can meet with peers in a relaxed atmosphere. For us, this will

Orange County, with its liberal and outgoing populace and

provide a unique possibility for building a loyal guest base.

located in or near the Newport Beach region. These include Starbucks Coffee Company, Peet’s Coffee and Tea, The Coffee Bean and Tea Leaf, Panera Bread, C’est Si Bon Bakery and other non-alcoholic food and beverage service establishments that offer coffee and other healthy food choices.

great weather, has traditionally been a great place for coffee establishments. Café D’esprit will strive to build a loyal customer base by offering great tasting coffee beverages and foods in a relaxing environment of its flagship site located at the ________________________________ in trendy Newport Beach, CA.

Starbucks and Peet’s will definitely be two of the major 4.2.1 Market Needs

competitors because of their strong financial position and

General trends toward quality among U.S. consumers definitely play an important role in the recent growth in cafes that cater to a more informed audience. Additionally, such factors as desire for small indulgencies, for something more exotic and

4.1 Market Segmentation

unique, provide a great selling opportunity for gourmet cafes.

established marketing and operational practices. However, despite their entrenched market position, many customers favor smaller, independent establishments that offer cozy atmosphere and good coffee at affordable prices.

Café D’esprit will focus its marketing activities on reaching the local business office clientele, people working in retail locations located close to the café site on sophisticated teens and college students and also on its notable natives and/or residents.

In an adjacent community of Laguna Beach, Café Zinc is a 4.3 Industry Analysis Coffee consumption has shown a steady 2.5% growth rate in the United States over the last decade. In 1994, total sales of coffee were

approximately

$7.5

billion

with

gourmet

coffee

representing 33% (or $2.5 billion) of that.

Our market research shows that these are the customer groups that are most likely to buy gourmet coffee and healthy food products. Since gourmet coffee consumption is universal across different income categories and mostly depends on the level of

The retail coffee industry is flourishing on the U.S. West coast. The local climate, with extended seasons of good weather, is very conducive for the consumption of hot non-alcoholic beverages.

higher education, proximity to the business, college and retail locations will provide access to the targeted audience.

At the same time, hot dry summers drive people into cafes to order iced drinks. Further, coffee, iced and frozen drinks,

4.2 Target Market Segment Strategy Café D’esprit will cater to people who want to get their daily cup of great-tasting coffee in a relaxing atmosphere. Such customers vary in age, although our location near a residential zone, but close to business offices and retail locations means

smoothies and healthy foods have all become a part of the cultural lifestyle on the West coast. Its discerning population is in favor of well-prepared foods and beverages, which they can consume in a relaxing environment.

good example of such competition. Estimates show that Starbucks holds the lion share of the market, but Café Zinc appeals to a majority of the local customers because of its authentic and organic appeal within the neighborhood. The remaining market share is split among other establishments.

Café D’esprit will position itself as a unique establishment that not only offers the best tasting coffees and foods but also provides a French style home-like, cozy environment, which conventional corporate establishments lack.

In keeping with our name, we will cater to our guest’s minds, bodies and souls, which will help us to infiltrate, saturate and dominate our unique share on this competitive market.

Buying Patterns

with other businesses in the community. At the same time, guest

Our Strategy & Implementation

The major reason for patrons to return to a specific gourmet cafe is a great tasting coffee, healthy/tasty food items, quality service and a pleasant atmosphere. However, as stated before, coffee and healthy food consumption is uniform across different income segments; Café D’esprit will market its product offerings at a more competitive price than its competition. We strongly

retention programs will be used to make sure our guests are Café D’esprit’s marketing strategy will be focused on retaining a

coffee establishment (which currently occupies the commercial space), developing a new stream of guests, persuading guests to stay longer and come back more often.

attractive setting, will help us build a strong base of loyal guests for decades to come.

5.2.1 Sales Costs Food costs are assumed at 25% for coffee beverages and 50% for retail beans and other food items. Proximity to the business

believe that the combination of quality coffee along with healthy food choices coupled with great service in a nice,

coming back and spending more time at Café D’esprit.

good portion of the existing clientele base from the previous

office complexes will dictate certain sales predictabilities with Establishing

a

loyal

return

guest

base is of paramount

revenues slightly decreasing during the ‘after 5’ time of the day.

importance since this core of guests will not only generate most of the sales but this group of people will also provide favorable word of mouth referrals, which still is the most powerful form of marketing to date.

To offset this inevitability, Café D’esprit will offer catering services, delivery services and other creative means of serving and expanding on its guest clientele base to further build the Café D’esprit brand name.

5.1 Competitive Edge Café D’esprit will position itself as unique French styled coffee bistro where its patrons can not only enjoy a cup of perfectly brewed coffee, freshly baked breads, home styled made sandwiches,

but

also

spend

their

time

in

an

ambient

environment. Bistro style tables and chairs, comfortable sofas

Management Summary Café D’esprit is majority-owned by _________________________.

Short Bio on Owner #1 Short Bio on Owner #2 Short Bio on Owner #3

and chairs, diffused lighting and quiet relaxing music will help our guests to relax from the daily stresses and will differentiate Café D’esprit from incumbent competitors.

Because of the investor’s passion and desire to make this venture a success, they will be involved into the daily operations at Café D’esprit. However, in the near future, a professional

5.2 Sales Strategy Café D’esprit

baristas and

manager ($___________/yr) will be hired to oversee all the store servers will handle the sales

transactions. To speed up the guest services, at least two

operations. Also, two full-time baristas ($__________/yr each) will be in charge of coffee and food prep.

employees will be servicing guests. While one employee prepares the guest's order, the other one will be taking care of the sales transaction. All sales data logged on the computerized point-of-sale terminals will be analyzed for marketing purposes.

In order to build up its client base, Café D’esprit will use banners, postcards, flyers, utilize customer referrals and cross-promotions

Four more part-time employees will be hired to fulfill the staffing needs. In the second and third year of operation additional employees will be hired to handle the increased sales volume.

6.1 Management Team

Our Financial Plan

A full-time manager will eventually be hired to oversee the daily operations at Café’ D’esprit. The candidate (to be determined) will have had several years of managerial experience in the food services industry. This person's responsibilities will include managing the staff, ordering inventory, dealing with suppliers, developing a marketing strategy and performing other daily managerial duties. The person we choose for this role will have

Café D’esprit will capitalize on the strong demand for highquality gourmet coffee and healthy food items. The owners have provided the company with sufficient start-up capital.

Café D’esprit will maintain a healthy 65% gross margin, which combined with reasonable operating expenses, will provide enough cash to finance further growth.

the right experience for the job. A profit-sharing arrangement for the manager may be considered based on the first year

7.1 Important Assumptions 7.2 Projected Cash Flow

operational results.

As our data will show, Café D’esprit will maintain a healthy cash flow position, which will allow for timely servicing of any debt

6.2 Management Team Gaps Despite

the

owner’s

and

manager's

competencies,

the

and ample funds available for future development and growth.

company will retain the consulting services of FIFTHKING, the consultants who have helped to develop the business platform

7.3 Key Financial Indicators 7.4 Break-Even Analysis

for Café D’esprit.

With average monthly fixed costs of $___________ in FY2011 and This company has over twenty years of experience in business development and marketing and has successfully helped to launch hundreds of companies across the U.S., Canada, Central America, and The Caribbean. The consultants will be primarily

used

for

media,

marketing,

market

input

into

the

evaluation

opportunities for the Café D’esprit brand.

of

new

volume is around $___________ per month. As shown further, the company is expected to generate such sales volume from the outstart.

research,

advertising, franchising, and merchandising; as well as provide additional

an average margin of 65%, Café D’esprit's break-even sales

business

7.5 Projected Profit and Loss Annual projected sales of $_____________ in FY2011 translate into $____________ of sales per square foot, which is in line with the industry averages for an store of our size / market share. Overall, as the company gets established in the local market, its net profitability grows from _______% in FY2011 to _______% in FY2013.

7.6 Projected Balance Sheet The company's net

worth

is expected to increase from

approximately $_______________

by the end

approximately $_______________ in FY2013.

of FY2011 to

Contacts Café’ D’esprit Primary Intermediary Ms. Natasha Kazic Telecommunications: 949.922.0762