Coffee shop business plan assignment

1. An Assignment
on
Department of Management
Jashore University of Science & Technology
Coffee Shop Business Plan
Course Title: Entrepreneurship Development
Course Code: MGT-3103
Submitted By:
Group Name: “Fusion”
Session: 2017-18
3rd
year 1st
Semester
Department of Management
Jashore University of Science &
Technology
Jashore-7408
Submitted To:
Mohammad Awal Hossen
Assistant Professor
Department of Management
Jashore University of Science &
Technology
Jashore-7408
Date of Submission: 15/03/2020

2. Group Member’s List
No. Name Designation ID No. Registration
No.
1. Shiab Hossen Gaddafe Leader 172109 1721723
2. Md. Fuad Hasan Khan Member 172105 1721719
3. Mst. Irin Sultana Jhilik Member 172113 1721727
4. Chhanda Baidya Member 172119 1721732
5. Md. Humaon Kabir Member 172123 1721736
6. Fatema Jannat Chumki Member 172127 1721740
7. Md. Abdul Aziz Member 172131 1721744

3. Shop Name: Rose Coffee Shop
Address: in front of JUST, Ambottala Bazar, Jashore
Phone Number: +019877…
Date: 15/03/2020
Website: rosecoffeeshopbd.com
Facebook: Rose Coffee Shop
Instagram: rose_coffee_shop
Coffee Shop
Business Plan

4. Table of Contents
Section No. Title of Contents Page
1 Executive Summary 1
2 Industry Analysis 3
3 Business Description 4
4 Market Analysis & the Competition 6
5 Sales & Marketing Plan 7
6 Ownership & Management Plan 11
7 Operating Plan 11
8 Management Team & Organization Structure 12
9 Financial Plan 13
10 Appendices & Exhibits 15

5. 1
Section 1: Executive Summary
Rose Coffee Shop is determined to become a daily necessity for local coffee addicts, a place to
dream of as you try to escape the daily stresses of life and just a comfortable place to meet your
friends or anybody. With the growing demand for high-quality gourmet coffee and great service,
Rose Coffee Shop will capitalize on its proximity to the JUST campus to build a core group of
repeat customers.
Rose Coffee Shop will offer its customers the best prepared coffee in the area. We plan on
serving the highest quality coffee and snacks in a trendy, comfortable atmosphere. Our
convenient location and excellent customer service should build a steady repeat customer base.
Our main products will be higher margin gourmet coffee products such as espressos,
cappuccinos, lattés, and a variety of snacks, juices, tea, soft drinks, ice-creams and some fast
foods.
Strategically located within easy walking distance from the university campus, schools, colleges,
we intend to cater to students, young office workers and teachers by providing plenty of seating
space and superior customer service with a trendy vibe.
Owners Mr. X and partner Mr. Y each have more than a decade in the food service industry,
including management experience.
In the immediate area, our competition consists mainly of fast food vendors such as City Café,
Adda Cafe, Central Cafeteria of JUST. We plan on capturing the upper end of the local coffee
market by serving gourmet, nonmachine-made coffee products and others at reasonable prices.
Along with our superior atmosphere and great customer service, we intend to target sophisticated
coffee consumers.
The location we have selected has 1,000 square feet of space, room for an outdoor patio, and
requires minimal renovations. The space has been vacant for several months and the owner is
motivated to rent the space.
To start Rose Coffee Shop, we need around tk. 5,00,000 as start-up cost.
Our business model projects that our shop will generate over tk. 2,10,000 in revenue in its first
month of operation and at a gross margin of 65%. Going forward, we expect to pass the break-
even point and become profitable near the end of our second year.
We will hire experienced and skilled managers as well as other human resources to run our
coffee shop business.

6. 2
• Objectives:
Rose Coffee Shop’s objectives for the first year of operations are:
➢ Become selected as the “Best New Coffee Shop in the area” by the local restaurant guide.
➢ Turn in profits from the first month of operations.
➢ Maintain a 65% gross margin.
➢ Achieve a handsome net profit.
➢ Create loyal customers.
• Key to Success:
The keys to success will be:
➢ Store design that will be both visually attractive to customers, and designed for fast and
efficient operations.
➢ Employee training to insure the best coffee preparation techniques.
➢ Marketing strategies aimed to build a solid base of loyal customers, as well as
maximizing the sales of high margin products, such as special coffee, tea & drinks.
➢ Highly trained and friendly staff.
➢ A dynamic website with online sales capability.
• Mission:
Rose Coffee Shop will make its best effort to create a unique place where customers can
socialize with each other in a comfortable and relaxing environment while enjoying the best
brewed coffee, tea, snacks, juices, drinks etc. in town. We will be in the business of helping our
customers to relieve their daily stresses by providing piece of mind through great ambience,
convenient location, friendly customer service, and products of consistently high quality. Rose
coffee Shop will invest its profits to increase the employee satisfaction while providing stable
return to its shareholders.

7. 3
Section 2: Industry Analysis:
Coffee Market in Bangladesh 2020
Recent survey of coffee shows that coffee has become most popular beverage in Bangladesh.
Coffee provides health benefit including (Increase energy levels, burn fat, improve physical
performance etc.) because it contains several important nutrients, including riboflavin, pantothenic
acid, manganese, potassium, magnesium and niacin. Everybody takes coffee for its usefulness. So,
the coffee industry is increasing day by day all over the country.
Coffee Market in front of Jashore University of Science and Technology
As it is a university area, many people stay hare all the time including Teachers, Students,
employers and others. Here industry size, Sales and growth rate are increasing day bay day.
Here,
Industry size is given in number who produces coffee. And every 1 is 1 coffee producer. Growth
rate are given in percentage. And every 1 is 10%. Sales are given in taka. And every 1 is 2lakh.
It is a figure of coffee market in front of Jashore University of Science and Technology. So, it is
a great scope for establishing coffee shop here.
0
1
2
3
4
5
6
7
8
9
10
2016 2017 2018 2019
industry size
growth rate
sales

8. 4
Section 3: Business Descriptions
Logo & Tagline
Name: Rose coffee Shop
Type of business: partnership
Location: In front of Jashore University of Science and Technology, Chaugachha road, Jashore.
Mission: “Our mission is to make our customers happy.”
Vision: “we want to lead the coffee shop market.”
Current status: Startup
Legal status: Trade license application has been submitted.
Background History
10-February-2020 we want to take a cup of coffee. Then we went in front of Jashore University of
Science and Technology. We had gone café-adda to take coffee. We had order chocolate cold
coffee that charged BDT 80. The quality of coffee was below average and was not comfortable
sets facilities. It was extra noisy environment and too much dusty. For those we think we will
establish a coffee shop in front of Jashore University of Science and Technology.

9. 5
List and price of products
Items price Items price
Hot coffee 40 Tea 10
Cold coffee 50 Iced tea 25
Americano 120 Milk tea 20
Cappuccino 100 Green tea 20
Rose Special hot coffee 80 Fruit juice 60
Hot chocolates 110 Falooda 80
Coffee frappe 120 Lemonade 50
Hand brew 120 Cake per pound 300
Ice coffee 70 Mocktails (fruits) 130
White chocolate coffee 120 Milkshake 100
Dark chocolate 90 Soft drinks 20
Rose special chocolate 120 Coconut juice 50
Startup cost
Advanced rent 50000
Equipment (coffee machine, coffee mill, air condition, water
treatment and cash registers)
220000
Lighting, music painting and decorating 60000
Furniture 140000
Suppliers fee 20000
Advertising 5000
Utility cost 5000
Total 500000

10. 6
Section 4: Market Analysis and the Competition:
As our coffee shop is located at the area of Jashore University of Science and Technology, our
target customers are students, teachers, their family and officers .This kinds of customers has the
desire to spend money if they get an opportunity to prefer a coffee or snacks in a friendly and
quarrel less environment. In our varsity area there is no high quality-full coffee shop and the
distance between the city and campus is 8 kilometers. For this reason, the people get little scope
to spend quality time with taking coffee. It is our plus point, because the window of opportunity
is yet opened.
In this market, we get three strong competitors. These are City Caffe, Adda Ghor and Baikal. If
we can start our shop, we will be the boss of the market. The reason is that our coffee shop will
be maintained by varsity student specially, by the students of department of Management. The
employee will be more skilled quality –full and smart than competitors. They can provide the
best service to the customers.
We do SWOT analysis in the market and find the following:
Our strengths:
• We will sale coffee in reasonable price.
• We can reach on customer taste and preferences.
• We are capable to provide wide variety of coffee and drinks.
• We will ensure best decoration and peaceful environment inside the coffee shop.
• We will provide Wi-Fi facility.
Those points make our coffee shop unique.
Our weakness:
• Excessive startup cost
• Starting new business
• We have no reputation.
By giving more advertisement we can lead the coffee market. Our product quality and service will
bring reputation in a short time.
Our Opportunities:
• Job opportunities for many students who want to do the part time job.
• No need for going main city to take coffee.

11. 7
Our Threats:
• The city café, cafeteria, cafe-adda and local tea stall is the main treat of our business.
• Government rules and regulation is another threat.
By our marketing strategy and taking trade licenses we can dissolve those threats very easily
A comparison of employee, price, quality and estimated revenue is given bellow in the table:
Business City Caffe Baikal Adda Ghor Rose Coffee Shop
Employee 8 10 10 6
Price Low High High Average
Quality Average Low average High
Estimated annual
revenue
2,00,000 2,20,000 1,80,000 2,00,000
As the new comer of the market, for the first year we earn less revenue than the competitors but
gradually we will be able to earn a handsome amount.
Section 5: Sales and Marketing Plan
There are some ways how we intend to entice customers to patronize our coffee shop, including
advertising, promotion, pricing strategy, sales, and service. They are given below.
Our Product Offerings:
The existing competition uses lower grade beans, inexpensive equipment, and does not properly
train staff — resulting in inconsistent product quality and dissatisfied customers.
At Rose Coffee Shop, we are passionate about coffee and intend to focus on consistently serving
the highest quality product by:
• Sourcing premium beans and snacks and maintaining freshness at all times.

12. 8
• Using a top-of-the line espresso machine and related equipment.
• Providing baristas with professional training.
By focusing on quality, consistency, and great customer service, we will build a steady repeat
customer base.
Pricing Strategy:
As we intend to focus on specialty coffees including espresso, cappuccinos, mochas, etc. as the
profit margins are much higher than regular coffee. To command a higher price for regular coffee,
we will not use drip machines. Instead, each cup will be single served using a coffee press so that
every cup is up-to-the-minute fresh and delicious.
Our pricing will be competitive with the higher end of the market. We believe that customers will
be happy to pay top prices for a great cup of coffee.
Each day of week will be assigned a discount drink. It will start 10%to 40
Sales:
We will be offering counter service in a professionally designed, cozy, inviting interior space.
Interior seating will be a mix of smaller individual tables for intimacy, and longer, bench-style
ones for larger groups. Exterior seating will consist of weatherproof tables and chairs with
available sunshade umbrellas. We intend to be open from 9.00 a.m. to 9 p.m. everyday.
In addition to cash, credit, and debit, we also will be accepting Apple Pay for purchases.
Advertising and Promotion:
To minimize costs and connect with our customer demographic, most of our advertising will be of
the digital variety. We intend to aggressively promote our products using the following methods:
❖ Posters on the local campus billboards
❖ Our state-of-the-art website
❖ Daily specials announced on Facebook, Instagram, and Twitter
❖ Open mic nights: Every mic night our shop will hold open mic nights. This will be
the most effective methods by this way our exact customer will come and also bring
new customer to our shop. That will boost our shop.
Statistics demonstrate that loyalty cards are highly effective, and Rose Coffee Shop will use a
custom-designed rewards card to promote repeat business.

13. 9
Service description:
An important component of our is not just our product but our service. To deliver service some
followings elements we will offer to our customer that are.
➢ Routine equipment maintains and training.
➢ Customer design marketing methods such as punch cards, pre purchases beverage cards
etc.
➢ Distribute a monthly newsletter featuring the latest coffee trends
How we attract our customer they are given below:
1)Look at our pricing:
Is it competitive or not? It should be justified by us.
2) Start a loyalty card scheme:
This is a trick used by many businesses but rarely will you find a coffee shop indulging in this
scheme. But you can design simple matt-finish business cards with boxes to stamp.
3) Make use of social media:
Social media is by far the most powerful marketing tool all businesses are making use of. It is
cheap and quite easy to use. But the trick here is to get active and engaging.
A successful social media strategy normally has a professional input behind it. Facebook, Twitter
and Instagram. Are the best source for us to do it.
4. Refresh the look:
A cup of coffee has the power to refresh and reenergize a dull customer. But before the customer
even orders for a cup, he/she should be excited to be at your shop. The best way to ensure that
happens is to refresh the look of your shop.
5. Build a community:
As you try to appeal to new customers, it is also important that you consider your different
audience segments. If your shop needs that business traffic, offer a business special or brag about
the free Wi-Fi on offer.
6.Get more electrical outlets: If your Coffee shop is surrounded by students or if you have free
Wi-Fi, it only makes sense if you install electrical outlets for your customer

14. 10
7. Plan seasonal events: If you are looking for the best way to encourage the fall spirit then you
should consider hosting a seasonal event at your shop. For instance, you can organize a craft
event or colouring contest for the children in the neighbourhood.
8: look at your lay out: Our coffee house lay out should be decorated beautifully.
How do we make unique from other shop?
They are given below:
• Business name - Give our coffee shop a unique name. Don’t make it a genetic
geographic name.
• Colours and ornaments - Make our coffee shop unique with the use of unique colours
and ornaments like picture etc.
• Sounds - Different styles of background music make a coffee shop unique as does the
use of TVs beaming in the news or live sporting events.
But coffee shop customers don't buy uniqueness as much as they buy better.
• Customization - customization is a management nightmare in terms of breath and
depth of training/hiring staff skills, unwieldy assortment items and service/pricing
confusion.
• Comfortable lounge-style seating - coffee shop rents are expensive and we need to
pack as many people as possible into the given space if we are going to remain
financially sustainable.
• Free Wi-Fi - being unique in this aspect is not good for our business. Because free Wi-
Fi attract people does not customer.
• Convenience - we should develop a reputation for being the most convenient coffee
shop in terms of ease of doing business, efficient customer flows and processes and ease
of ordering, service delivery and paying.
• Finest espresso coffee - be unique in the way that we make the best espresso coffee.
• Friendly/familiar service style - make our customers feel special. Learn their names,
their order preferences and as much as we can about their interests.

15. 11
Section 6: Ownership and management plan
Rose coffee shop is a private corporation registered in the state of taxes. The Business 100%
owned by X and Y.
Owners X and Y will co-manage the business, and at least one will be present at all the times
during open hours. Both owners have previous food service management experience and are
trained and experienced employees.
• External sources and services:
Zero Inch Interior Ltd will be contracted for the interior design for the premises. X and Y will
provide accounting services for the business. Local vendors will supply the raw materials of
coffee.
Section 7: Operating plan
Rose coffee shop that requires custom facilities, supply chain, specialized equipment and
multiple employees, the operating plan describe in details below:
Facilities:
The space of indoor is 1000 square feet in a modern, well maintained building in front of the
university. Approximately the outdoor space is 250 feet, with lock up racks for bicycles.
A four-year lease at 5000/month with a fifth year free, the building owner is responsible for trash
collection recycling pest control and security. Utilities (water, electricity, gas, internet phone) are
estimated to be 1000 per month. The previous tenant was a restaurant, and there are existing
kitchen and washroom facilities already in place. The previous tenant has offered to sell used
kitchen equipment at heavily discounted prices.
Staffing:
Two full-time and four to six part-time employees will be hired at standard wages. Employees
will be trained at a regional training academy. The two full time employees are previous
employees of the owners. The part-time employees will be sourced from the local post-secondary
institutions.
Owners and staff will share all regular duties including taking orders, making coffee, clearing
tables, restocking dishwashing, maintaining washroom facilities etc.
To increase employee loyalty a bonus/profit sharing system will be put in place.

16. 12
Equipment:
The following equipment will be purchased
• Automatic Drip coffee makers
• A high-quality espresso machines
• A coffee Grinder
• Refrigerator system
• Containers
• Pumps
• Oven
• Toasters
• Devices used or cooking
• Security system
Maintenance contracts for the equipment will be negotiated with local vendors.
Supplies:
We have negotiated an agreement with wholesalers to supply coffee beans with two-day
shipping. Milk, juices, soft drinks etc. will be sourced from the local vendors. Muffins, scones,
cookies and sandwiches will be supplied on a daily basis by Just baked in Jashore.
Section 8: Management Team and Organizational structure
Management team: Since, this is a small business. So, the management team needs less. If the Example
shows it is a coffee shop. So, there are enough 5-6 people. Though our management team is very good. They
perform the duties each of them very well. But still it even is sometimes seen that customers have trouble
understanding what kind of product? They want. So, we think hiring experienced manager who will advise us.
A full-time manager already works the daily operations at ROSE COFFEE SHOP. And the new experienced
candidate (Abduls Sitar, permanent manager at orient Coffee shop, Ashore and new part time job in ROSE
COFFEE SHOP, Jashore) he has been working three years at orient coffee shop and continuously doing this
job. The new manager responsibilities will include managing the staff, ordering inventories, dealing with
Suppliers developing a marketing strategy and perform other daily managerial duties. We believe that Our new
manager has this role.
Organization structure: This is a small coffee shop; more people will not be needed.
For example, if we see ROSE COFFEE SHOP having one manager who will observe everything,
two cooker and three waiters. One cooker is permanent and another cooker is part timer.

17. 13
Section 9: Financial Plan
The final Section of our business plan presents a firm’s financial plan. Financial projections are estimates on
how a business may perform in the future. Developing a financial projection is one of the most important
process of any company or organization like our Rose coffee shop. It includes six (6) things or items. These
are given below:
i. Sources and uses of funds statement.
ii. Assumption sheet.
iii. Pro forma income Statement.
iv. Pro forma balance sheet.
v. Pro forma cash follows.
vi. Break even analysis.
Above these tasks are required to be analysis at our coffee shop and these are so much
important here. The details are given below about these…
➢ Sources and uses of funds statement: If we create our coffee shop first thing is the
which is a document that lays out specially how much money a firm needs, where the
money will come from and what the money will be used for.
A sample of the sources and uses of funds statement of” The Rose Coffee Shop” is
shown below:
Sources and uses of funds statement of new Rose Coffee Shop 2020
In this chart we can see that total start- up cost of “Rose Coffee Shop” is 5,00,000 tk.
Uses of funds Amount Sources of funds
Working capital 2,20,000 Bank credit
Facilities cost 1,20,2000 Owners capital
Equipment cost 100,000 Owners savings
Supplies and advertising cost 40,000 Home equity
Other start- up cost 20,000 Home equity
Total start- up cost 5,00,000

18. 14
➢ Pro forma of income statement: Generally, income statement records all the
revenues and expenses for the given period and shows whether our firm is making a
profit or loss. Income statement are typically prepared on a monthly, annually,
quarterly basis. a pro forma of income statement in monthly basis of “Rose coffee
Shop” are given below,
Income of “Rose coffee shop” in monthly basis 2020
Price & Revenue: Suppose, In our Coffee shop,
❑ Coffee: Tk. 40/- to 120/-(Depends on the flavor)
❑ Tea: Tk. 15/- to 30/- /-(Depends on the flavor)
❑ Soft drinks: Tk. 20/- to 70/- (Depends on the flavor)
Estimate sell 60 cups coffee, 20 cups tea & 25 soft drinks per day then,
Day Revenue: (60×60) +(20×20) +(50×25)
= 3,600+400+1,250
=5,250+1,750(others)
=7,000
Monthly Revenue: (7000×30)
=2,10,000
Employee pay:
Manager (1) = 8,000 per month
Cooker = 6,000 per month
Assistant cooker = 5,500 per month
Waiter (3) = (5,000×3) = 15,000
Total employee pay = 34,500
Government Taxes: Sales tax: Revenue×5%
=2.10,000×5%
= 10,500
Monthly operating cost: Salary + shop rent +Others cost+ raw materials
= 34,500+ 10,000+ 5,500+ 70,000
= 1,20,000

19. 15
Monthly profit: Total revenue – total cost
= 2,10,000- 1,20,000
= 90,000 tk.
Break-even point:
Our net income Per month 90,000/- and our business startup cost 5,00,000 /-
So, we will reach break-even point =500000 ÷ 90,000
= 5.5
We will reach BEP in nearly 6 months.
Section 10: Appendices & Exhibits
Throughout this business plan, there are important notes and tips about entering information into
the business plan spreadsheet template, formatting the business plan spreadsheet etc. If you have
any problem with these areas then check the following link:
https://www.thebalancesmb.com/a-coffee-shop-business-plan-
4153010https://www.bplans.com/sample-plans/coffee-shop-business-plan/
https://www.referenceforbusiness.com/business-plans/Business-Plans-Volume-04/Coffee-
https://legaltemplates.net/resources/business/coffee-shop-business-plan-sample/