1. Chado
The tea bar : sit-down only tea lounge that serves everything
from an hour-long high tea course to ethnic-tinged tea
snacks, as well as premium teas
Prepared by Christina Jung
2. EXECUTIVE SUMMARY
Chado is an unique tea bar that offers everything from an hour-long high
tea course to ethnic- tinged tea snacks as well as premium organic
handmade teas. Christina Jung, the owner is a certified chef graduated
from reputable Santa Barbara city college culinary arts program and also
holds 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 down
service rising about 15% to about 1,500 shops. Most of working America
has accepted the idea of expensive hot beverages as affordable luxuries,
thanks to the marketing efforts of Starbucks, Seattle‟s Best, and so on. At
the same time now that fancy coffee drinks are so widely accepted, savvy
consumers 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 startup
costs.
3. MISSION STATEMENT
Our goal is to provide the finest premium teas, educational taste flights.
and complementary cuisine in a exotic environment in a relaxed and fun
atmosphere 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 Barbara
market 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 of
operation
4. KEYS TO SUCCESS
• Strong culinary background of the owner and her solid tea
knowledge.
• Product Quality. We sell only the finest whole-leaf, organic loose
teas, authentic cuisine and sophisticated sweets.
• Excellent Customer Service. Each customer will be treated as would
an honored guest in our homes.
• No direct competition.
• Enough working capital to survive the first year as we build a
customer base.
• Unique and exotic tea drinking experience (vs getting a bag of lipton
tea (aka „dusk‟) at Starbucks)
• Educational value (We will teach customers how to taste/smell and
compare variety of teas and some basic knowledge of tea including it‟s
health benefits.
5. DESCRIPTION OF TARGET MARKET
While we anticipate a split between locals and tourists, all members of
our target market are between the ages of 25 and 60, and have a
moderate to sizable disposable income.
MARKET ANALYSIS
We will provide the upper-middle class locals and tourists who are tired of
american coffee shop scenes, are looking for different experience of calm
and vitality, also who are health conscious with a place to
socialize, indulge themselves with fine tea and complementary cuisine
and sweets in an exotic environment. People in Santa Barbara is more
health conscious than any other cities in America and they will be glad to
pay the price to experience the finest and only the best tea tasting
experience along with our educational taste flights.
6. COMPETITIVE ANALYSIS
KEY STRENGTH
•We are the only full scale teahouse in 20 miles
•We have arranged competitive distribution contracts with high-end tea growers
around 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, Moorish
service, English service, Chinese service, Japanese service, Korean service, Tibetan
service)
•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 cup
or 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 health
benefit.
7. 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 restaurants
including, 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)
8. KITCHEN & FOH DESIGN
Exotic and somewhat asian inspired design. It will have tea tables with floor
sitting as well as regular table and chairs made of natural dark wood and
tasting bar. Kitchen will be equipped with Refrigerator, freezer, oven, grill
top, salamander, water filter, water boiler, 3-compartment stainless steel
sink with depth to wash large pans
sink, ice maker, tea pots, tea brewing timer, tea pot warmer, walk ins and
reach ins. SCHEME
COLOR
• Red, Burgundy, dark brown, grey, natural brown, Bamboo
9. FIANCIAL PLAN I
STRATUP 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 & beverage
MONTHLY ESTIMATED FIXED & VARIABLE COST
Rent: $12,000
Payroll : $ 12,500
Insurance: $670
Maintenance: $1,500
Loan: $19,000
Food cost: $8,300
BREAKEVEN POINT: $54,892
10. FIANCIAL PLAN II
SALES ASSUMPTIONS
Our top financial priorities in the first three years are repaying our long-term
loan, paying our employees fairly, covering our expenses on time, and
generating a modest profit.
Sales growth will be aggressive the first 18 months as we sharpen our
merchandise assortment, size scales, and stock levels to better meet our
customer‟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 food
festivals
• Online markeing – facebook, tweeter, online shopping
• Special events- free tea tasting events,
11. PRODUCT AND SERVICE
More than 60 kinds of organic loose leave teas
Our tea-tenders will know the best brewing temperature and time for each of the 60 kinds of teas we offer. These include
straight 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 more
popular with the proliferation of local sushi restaurants. Our no-caffeine herbal infusions range from flavored rooibus to fruit
blends and medicinal brews (chamomile, ginseng, etc.).
Tea : Food Pairing Menu
Pairing will be created according to the origin of country of the tea served = Moorish Service, Enlgish service, Chinese
service, Korean Service, Japanses Service, Russian Service, Indian Service,Each service will be consist of a Pot of tea and
their authentic plates of sumptuos cuisine.
Sweet Treats
Exotic and creative variety of tea-inspired dessert and pastries. Based on market research, we believe that up to 2/3 of our
sit-down clientele will order a cookie, piece of cake, scone, muffin, or savory croissant with their tea. Not offering such treats
could lose us customers.
Tea tasting flight
At the bar, tasting flights of tea are offered for an educational comparative of white, green, oolong, red and black teas. Rare
aged pu-erhs and competition-winning oolongs are just some of the premium teas from key producing nations - China,
Taiwan, Japan, India and Sri Lanka.
Gifts
We offer variety of loose tea for purchasing. Also Tea pots, tea cups, tea tins, books about tea, and many tea related
accessories will be for sale.
Experience
We will offer rejuvenating and exotic experice to the customers. along with education about tea. It will soon be Santa
Barbara‟s favorite chill-spot. For Chado, serving highest quality teas and sumptuous complementary cuisine is an art and a
vehicle for the greater good. Making people feel good, feel healthy and attain happiness is our bottom line. And challenging
12. SAMPLE MENU
TEA SERVICE (FOOD & TEA)
M oorish Service
Halloumi & 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 chill
out beneath the star ry desert night.Your candle-clasping harem will soon follow.A tea ser vice that
evolved from the ancient nomadic Berber tribes in Africa 18
English Service wit h a 3- T iered Plat t er
S 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 18
Chinese Service
S 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 wheel
its 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 18
Paleolit hic T ea Service
Kale and Carrot S alad (drizzled with our tangy sesame dressing), Steamed Beets, Choice of Wild
Smoked S almon, Braised Tofu, or S moked Duck. S erved with Seasonal Selection of Tea Before
there were grains, there were just wild-foraged veggies and animals.A carb-fr ee tea ser vice 18
Japanese Service
Tofu or Smoked S almon Maki Bowl, S oup & Ryokucha (Brown Rice Green Tea) Wakame seaweed
salad with sesame-miso dr essing, seasoned brown rice, steamed kale with tangy sesame dressing,
toasted nori, seasonal soup 18
Russian Service
Tarragon-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 Russian
tea from the samovar. S what it does for you. S
ee tart with our zavarka, dilute it with a tad of hot
water and add milk and sugar 28
Indian Service
Tofu 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 of
Ganesh over a cup of our steaming homemade organic chai 18
13. SAMPLE MENU
TEA
W H IT E. . . . . . . . . . . . . . . . . . . . . . . . .
Bai Mudan, jade cloud, S ilver needle, ancient moonlight, peach bloosom, White buds, Plum berry,
White tea rose,Wild rose,White Peony
GREEN . . . . . . . . . . . . . . . . . . . . . . . . .
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) Hekisui
Matcha.A heavenly, cloud-like froth ser ved straight or desser t like with hot soymilk
Jasmine 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, Ginseng
oolong, Qungxin winter orchid oolong, coconut oolong. J oolong, Plum oolong
ade s
BLACK. . . . . . . . . . . . . . . . . . . . . . . . .
Golden Yunna, Keemum, S econd fluh D rheel in Earl grey, Ceylon single estate, S
a g, oom, Lapsang
Souchong, 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
14. Preparing for tea master certification…it looks like
some kind of drug house…heehee
