Crema Coffee Co aims to become a staple coffee shop near Gautam Buddha University, focusing on high-quality espresso-based drinks and pastries to attract students and local professionals. The business will operate from a leased 1800 square foot location, with startup funds sourced from personal investments and a bank loan totaling ₹8,28,500. It anticipates a daily sales target of 94 coffees to break even, ensuring sustainable operation and profitability.

1. Business Plan
For a
Coffee shop
BY ABHINAV TYAGI
PH-9971732636

2. Company profile
Company Logo
Company name- Crema Coffee co.

3. Startup Summary

4. About Crema coffee
Crema Coffee co is determined to become a daily necessity
for local coffee addicts and just a comfortable place to meet
friends or to read a book, all in one. With the growing
demand for high-quality coffee and great service, Crema
coffee will capitalize on its proximity to the Gautam Buddha
University campus to build a core group of repeat customers.
Java Culture will offer its customers the best prepared coffee
in the area that will be complimented with pastries, as well
as free books that its patrons can read to enjoy their visit.

5. Business plan
The company will operate a 1800 square foot coffee bar
within a walking distance from the Gautam Buddha University
campus. The owners have secured this location through a
three-year lease with an option for extending. They have also
provided ₹3,00,000 for start-up funds. The remaining capital
will be obtained through startup India loan scheme

6. Company ownership
The company is a limited liability partnership Abhinav
Tyagi owns 51% of the company. His cousin Anuj Tyagi
holds the other 49% stake in the company.

7. Startup ExpensesLegal expenses and accounting
services
₹1,00,000
Marketing promotion 1,53,000
Location rent ₹40,000
Premises remodeling ₹1,85,000
Consultants fees ₹1,00,000
stationery ₹3,000
utility deposits ₹10,000
TOTAL ₹5,91,000

8. Required start-up assets
Coffee beans ₹10,000
Retail supplies ₹7,000
Other supplies ₹80,500
Espresso machine ₹10,000
Coffee maker ₹5,000
Coffee grinder ₹3,000
Food service equipment ₹80,000
Storage hardware ₹10,000
Counter area equipment ₹20,000
Serving area equipment ₹15,000
Store equipment ₹30,000

9. Office equipment ₹80,000
Furniture ₹1,00,000
AC, TV ,fans ₹1,50,000
Other miscellaneous expenses ₹5000
TOTAL ₹6,07,500
Required start-up assets

10. Company Funding
Funding for the company comes from two major
sources-owners' investments and bank loans. Two
major owners have contributed ₹1,53,00 and
₹1,47,00 respectively. All other investors have
contributed ₹8,98,500, which brings the total
investments to ₹11,98,500.
A bank loan of ₹8,28,500 was taken from SBI under
the startup India scheme.

11. Products
The menu of the coffee shop 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 espresso, which is prepared in the
espresso machine by forcing heated water through ground
coffee at high pressure. Such espresso shots are combined
with steamed milk and/or other additives like cocoa,
caramel, etc., to prepare the espresso-based beverages. The
coffee shop will also provide with cakes , pastries , cookies
and other snacks .

12. Crema coffee will focus its marketing activities on reaching
the University students and faculty, people working in
offices located close to the coffee shop and on sophisticated
teenagers. market research shows that these are the
customer groups that are most likely to buy coffee products.
Since coffee consumption is universal across different income
categories and mostly depends on the level of higher
education, proximity to the University campus will provide
access to the targeted customer audience.
The chart and table below outline the total market potential
of coffee.
Market analysis

14. Personnel plan
The table below outlines the personnel needs of Crema
coffee co
Personnel Plan
Manager ₹35,000
Waiters ₹50,000
Cooks ₹39,600
Total People 7
Total Payroll ₹1,24,600

15. Sales
Coffee beverages ₹350,400
Coffee beans ₹87,600
Pastries, etc. ₹146,000
Total Sales ₹584,000
Cost of Sales
Coffee beverages ₹87,600
Coffee beans ₹43,800
Pastries, etc. ₹73,000
Subtotal Cost of Sales ₹204,400
Sales Forecast

16. Break even analysis
How Many Coffees Need to be Sold to Break Even?
To calculate the break even revenue for a coffee shop
business, the break even formula is used as follows:
Break even revenue = Fixed costs
Gross margin percentage

17. Break even analysis
• To Calculate the Gross Margin Percentage
Suppose the coffee shop sells coffee at ₹50.00
(excluding tax), and the variable cost of the materials
(coffee, milk, sugar, cups etc.) used to make the
coffee is ₹20.00, then the gross margin from each
coffee sold is given by:
Gross margin = Sales price – Cost =50.00 – 30.00 = 20.00

18. Break even analysis
• The gross margin percentage is then calculated by
dividing the gross margin by the selling price
Gross margin % = Gross margin
Selling price
= 20
50
= 40%

19. Break even analysis
• Suppose for example the total fixed costs are 1500 per
day, then the coffee shop break even analysis at a 40%
gross margin shows that:
Break even revenue = Fixed costs
Gross margin percentage
Break even revenue = 1500
40%
= 3750

20. Break even analysis
• This means that at ₹50.00 per coffee the
shop must sell 3750/40 = 93.75 coffees.
• So the coffee shop must sell 94 approx.
coffees each day at 50.00 per coffee, to
break even.

21. A presentation
By
Abhinav Tyagi