ChadoThe tea bar : sit-down only tea lounge that serves everythingfrom an hour-long high tea course to ethnic-tinged teasnacks, as well as premium teasPrepared by Christina Jung
EXECUTIVE SUMMARYChado is an unique tea bar that offers everything from an hour-long hightea course to ethnic- tinged tea snacks as well as premium organichandmade teas. Christina Jung, the owner is a certified chef graduatedfrom reputable Santa Barbara city college culinary arts program and alsoholds America Tea Master Certification.The American tea market is growing rapidly. Tea sales have increased 65%over the last fifteen years, with the number of tea rooms offering sit downservice rising about 15% to about 1,500 shops. Most of working Americahas accepted the idea of expensive hot beverages as affordable luxuries,thanks to the marketing efforts of Starbucks, Seattle‟s Best, and so on. Atthe same time now that fancy coffee drinks are so widely accepted, savvyconsumers are looking for new, healthier and more unique treats to enjoy.The owners are investing $50,330 of their own money into the business.Chado is seeking an additional 10 year loan of $190,633 to fund our startupcosts.
MISSION STATEMENTOur goal is to provide the finest premium teas, educational taste flights.and complementary cuisine in a exotic environment in a relaxed and funatmosphere of Santa Barbara.OBJECTIVES• To operate a successful tea tasting lounge in Santa Barbara• To obtain a minimum of 200 regular customers in the Santa Barbaramarket the first year of operation.• Achieve first year sales of $190,000.• Maintain an average gross margin of 58 percent.• To produce a reasonable net profit by the end of the third year ofoperation
KEYS TO SUCCESS• Strong culinary background of the owner and her solid teaknowledge. • Product Quality. We sell only the finest whole-leaf, organic looseteas, authentic cuisine and sophisticated sweets. • Excellent Customer Service. Each customer will be treated as wouldan honored guest in our homes.• No direct competition.• Enough working capital to survive the first year as we build acustomer base.• Unique and exotic tea drinking experience (vs getting a bag of liptontea (aka „dusk‟) at Starbucks)• Educational value (We will teach customers how to taste/smell andcompare variety of teas and some basic knowledge of tea including it‟shealth benefits.
DESCRIPTION OF TARGET MARKETWhile we anticipate a split between locals and tourists, all members ofour target market are between the ages of 25 and 60, and have amoderate to sizable disposable income.MARKET ANALYSISWe will provide the upper-middle class locals and tourists who are tired ofamerican coffee shop scenes, are looking for different experience of calmand vitality, also who are health conscious with a place tosocialize, indulge themselves with fine tea and complementary cuisineand sweets in an exotic environment. People in Santa Barbara is morehealth conscious than any other cities in America and they will be glad topay the price to experience the finest and only the best tea tastingexperience along with our educational taste flights.
COMPETITIVE ANALYSISKEY STRENGTH•We are the only full scale teahouse in 20 miles•We have arranged competitive distribution contracts with high-end tea growersaround the world.•Our interior design(where it will have exotic and cozy deco with floor sittings)•It will offer exclusive tea service (food & tea pairing of each countries, Moorishservice, English service, Chinese service, Japanese service, Korean service, Tibetanservice)•We are not at the crowded mall like Tevana.•We are not regular coffee shops where they sell low quality (dust) tea in a mug cupor paper cup.•We are the only place where you can taste tea inspired cuisine and pastry.WEAKNESS•We must take customers away from existing tea stores and coffee drinking habit.•We have to focus on educating the public about quality premium tea and it‟s healthbenefit.
ORGANIZATION CHART Owner (Christina Jung)She is a certified chef graduated from SBCC culinary arts program and also holds American Tea Master Certification. She worked at a pretigious restaurantsincluding, Bouchon , Epiphany and San Ysydro Ranch and developed tea infused recipes for Rishi Tea Company. She beholds 2 BAs in Graphic Design and English and has worked in advertising industry for several years. 1 Head Chef (TBD) 1 Accountant/1 FOH manager(TBD) 1 Cook(TBD) 3 Servers(TBD) 1 Busser/1 Dish washer(TBD) Lawyer and advisory board (TBD)
KITCHEN & FOH DESIGNExotic and somewhat asian inspired design. It will have tea tables with floorsitting as well as regular table and chairs made of natural dark wood andtasting bar. Kitchen will be equipped with Refrigerator, freezer, oven, grilltop, salamander, water filter, water boiler, 3-compartment stainless steelsink with depth to wash large panssink, ice maker, tea pots, tea brewing timer, tea pot warmer, walk ins andreach ins. SCHEME COLOR• Red, Burgundy, dark brown, grey, natural brown, Bamboo
FIANCIAL PLAN ISTRATUP COST$50,000 Site buildout (venting, decoration, etc.)$20,000 Kitchen Equipment$15,000 Dining Room (tables, chairs, glasses, silverware, etc.)$8,000 First year insurance (with no vehicles)$75,000 First 6 months wages for staff (not including yourself)$72,000 First 6 month rent$25,000 First 3 months of food & beverageMONTHLY ESTIMATED FIXED & VARIABLE COSTRent: $12,000Payroll : $ 12,500Insurance: $670Maintenance: $1,500Loan: $19,000Food cost: $8,300BREAKEVEN POINT: $54,892
FIANCIAL PLAN IISALES ASSUMPTIONSOur top financial priorities in the first three years are repaying our long-termloan, paying our employees fairly, covering our expenses on time, andgenerating a modest profit.Sales growth will be aggressive the first 18 months as we sharpen ourmerchandise assortment, size scales, and stock levels to better meet ourcustomer‟s requirements. We anticipate a sales increase of roughly 10%during our second year of operation.Marketing expenses are budgeted at approximately 3% of total sales.We will invest residual profits into reducing debt.MARKETING• Aggressive PR in local community-lndependnet, edible SB. Local foodfestivals• Online markeing – facebook, tweeter, online shopping• Special events- free tea tasting events,
PRODUCT AND SERVICEMore than 60 kinds of organic loose leave teasOur tea-tenders will know the best brewing temperature and time for each of the 60 kinds of teas we offer. These includestraight black teas such as Assam, Ceylon, Darjeeling and Keemun, blends like Chai, Earl Grey, and our own creations, like“Blood orange Pu erh tea” a „coconut oolong‟ blend. We will also offer a range of green teas, which are becoming morepopular with the proliferation of local sushi restaurants. Our no-caffeine herbal infusions range from flavored rooibus to fruitblends and medicinal brews (chamomile, ginseng, etc.).Tea : Food Pairing MenuPairing will be created according to the origin of country of the tea served = Moorish Service, Enlgish service, Chineseservice, Korean Service, Japanses Service, Russian Service, Indian Service,Each service will be consist of a Pot of tea andtheir authentic plates of sumptuos cuisine.Sweet TreatsExotic and creative variety of tea-inspired dessert and pastries. Based on market research, we believe that up to 2/3 of oursit-down clientele will order a cookie, piece of cake, scone, muffin, or savory croissant with their tea. Not offering such treatscould lose us customers.Tea tasting flightAt the bar, tasting flights of tea are offered for an educational comparative of white, green, oolong, red and black teas. Rareaged pu-erhs and competition-winning oolongs are just some of the premium teas from key producing nations - China,Taiwan, Japan, India and Sri Lanka.GiftsWe offer variety of loose tea for purchasing. Also Tea pots, tea cups, tea tins, books about tea, and many tea relatedaccessories will be for sale.ExperienceWe will offer rejuvenating and exotic experice to the customers. along with education about tea. It will soon be SantaBarbara‟s favorite chill-spot. For Chado, serving highest quality teas and sumptuous complementary cuisine is an art and avehicle for the greater good. Making people feel good, feel healthy and attain happiness is our bottom line. And challenging
SAMPLE MENUTEA SERVICE (FOOD & TEA)M oorish ServiceHalloumi & Veggie Kebabs, Mint S alad, Hummus, Roasted Eggplant, Greek Y ogurt, Herbed Crack-ers, Chevre-Stuffed Dates, Mint Tea Dismount your camel, unroll your rug, start the fire, and chillout beneath the star ry desert night.Your candle-clasping harem will soon follow.A tea ser vice thatevolved from the ancient nomadic Berber tribes in Africa 18English Service wit h a 3- T iered Plat t erS hiitake Mushroom or Wild S moked S almon Quiche, Cherry Oat S cone with Devonshire Cream& J Fresh Fruit Respect the Queen, spread clotted cream and drink strong black tea with milk am,and sugar. Back in the day in England, they attributed mysterious healing properties to tea.Actually,it was the boiled water that made everyone healthy 18Chinese ServiceS moked Duck (or Veggie) S tir-fr y, S quash Dumplings & Pu-erh tea“Nothing can have more uses than being. It is the emptiness of a wheel hub that gives the wheelits usefulness. It is because a cup is empty in the middle that it can be file w th te and is thus l d i a,useful,” —Lao Tzu 18Paleolit hic T ea ServiceKale and Carrot S alad (drizzled with our tangy sesame dressing), Steamed Beets, Choice of WildSmoked S almon, Braised Tofu, or S moked Duck. S erved with Seasonal Selection of Tea Beforethere were grains, there were just wild-foraged veggies and animals.A carb-fr ee tea ser vice 18Japanese ServiceTofu or Smoked S almon Maki Bowl, S oup & Ryokucha (Brown Rice Green Tea) Wakame seaweedsalad with sesame-miso dr essing, seasoned brown rice, steamed kale with tangy sesame dressing,toasted nori, seasonal soup 18Russian ServiceTarragon-Marinated Beets, S moked Fish & Horseradish, Devilled Egg with Caviar, Herbed Crack-ers, Fresh Fruit, Chocolate Brownie They say that Tolstoy fueled his creativity by drinking Russiantea from the samovar. S what it does for you. S ee tart with our zavarka, dilute it with a tad of hotwater and add milk and sugar 28Indian ServiceTofu Curry, Basmati Rice & Masala Chai Look to Ganesh, the elephant-headed Indian deity to ban-ish all obstacles in your path and to pave the way for unlimited wealth. Consider the potential ofGanesh over a cup of our steaming homemade organic chai 18
SAMPLE MENUTEAW H IT E. . . . . . . . . . . . . . . . . . . . . . . . .Bai Mudan, jade cloud, S ilver needle, ancient moonlight, peach bloosom, White buds, Plum berry,White tea rose,Wild rose,White PeonyGREEN . . . . . . . . . . . . . . . . . . . . . . . . .Ryokucha Genmaicha, J apanese matcha powder blended with roasted brown rice and sencha. Fu-kamushi S encha, Hand-Whisked Matcha (Traditional or Nouveau with Hot S weet Soymilk) HekisuiMatcha.A heavenly, cloud-like froth ser ved straight or desser t like with hot soymilkJasmine Pearl, Nishi S encha 1st Flush, Green Ecstasy, Gyukoro. Bcncha, Super green, Dragonwell,Earl green, J asmin green, Orange bloossom, Ojabe Gyokuro, S encha yuzu, Okabe mint green.OOLON G. . . . . . . . . . . . . . . . . . . . . . . . .Tai Cha No. 13, Baozhong Mango and buttered popcorn, Gui Fei Imperial, Rei Cheng “Gaba” ,Bai Hao (Taiwan) Bai Hao (Nepal) HongYueTwisted Aka“Ruby Black,” Blood orange oolong co-conut oolong, Bao hao premium, Bao Zhong, Cirton oolong, Iron Godndess of mercy, Ginsengoolong, Qungxin winter orchid oolong, coconut oolong. J oolong, Plum oolong ade sBLACK. . . . . . . . . . . . . . . . . . . . . . . . .Golden Yunna, Keemum, S econd fluh D rheel in Earl grey, Ceylon single estate, S a g, oom, LapsangSouchong, Lemongrass black,Yuzu Temeric Ginger,Wild berry black, coconut black, Golden needle,Golden Assam, Earl grey lavendar, Classic citrus black.H ERBA LS. . . . . . . . . . . . . . . . . . . . . . . . .Blueberry Rooibos, Masala Chai, S chizandra Berry, S Matcha S oy hake ThaiIced Tea, Hibiscus ice tea,Mystic Mint, J amaica Rooibos, Red Gingseng Recharge, S carlet blend ice tea
Preparing for tea master certification…it looks likesome kind of drug house…heehee