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Tea Bar & Fusion Café
“Together we shine”
Kaia Anderson, Sarah Macias, Adrian Avila, Erika Wang, Michael Ahn
i
Table of Contents
Table of Figures............................................................................................................................. ii
Introduction................................................................................................................................... 1
Summary of Report................................................................................................................... 1
Company Background.............................................................................................................. 1
Mission and Objectives............................................................................................................. 2
Products/Services ...................................................................................................................... 3
Menu........................................................................................................................................... 5
Market & Competition................................................................................................................. 7
Dining ......................................................................................................................................... 7
Location...................................................................................................................................... 7
Competition Analysis................................................................................................................ 8
Industry Characteristics........................................................................................................... 8
Healthy Food.......................................................................................................................... 8
Tea........................................................................................................................................... 9
Young Clientele...................................................................................................................... 9
Unique Environment ............................................................................................................. 9
Study Space ............................................................................................................................ 9
Marketing Strategy..................................................................................................................... 10
Goal........................................................................................................................................... 10
Survey....................................................................................................................................... 10
Consumers................................................................................................................................ 14
Food Options............................................................................................................................ 14
Development Plan.................................................................................................................... 15
Funding .................................................................................................................................... 17
Overall Business Implementation Schedule.......................................................................... 17
Critical Risks/Problems.............................................................................................................. 18
Location.................................................................................................................................... 18
Commercial Leasing ............................................................................................................... 18
ii
Poor Profits.............................................................................................................................. 19
Financial Projections............................................................................................................... 19
Conclusion ................................................................................................................................... 21
Works Cited................................................................................................................................. 22
Appendix...................................................................................................................................... 24
Table of Figures
Figure 1: Sacramento Location at The Sofia (Sactown Magazine) ................................................ 1
Figure 2: Chico Location at Forest Avenue (Airbnb)..................................................................... 2
Figure 3: Entrees, Appetizers, and Drinks (TBar Instagram) ......................................................... 3
Figure 4: Red Hibiscus Tea (TBar Instagram)................................................................................ 4
Figure 5: Tea Options (TBar Instagram) ........................................................................................ 4
Figure 6: London Broil Wrap (TBar Instagram)............................................................................. 4
Figure 5: Tea Bar & Fusion Café Food Menu (TBar Menu).......................................................... 5
Figure 6: Tea Bar and Fusion Café Tea Menu (TBar Menu) ......................................................... 6
Figure 7: Comparison of San Luis Obispo Competition ................................................................ 8
Figure 8: Likelihood of Visiting TBar in San Luis Obispo (TBar Survey).................................. 10
Figure 9: Amount Willing to Spend on Lunch (TBar Survey) ..................................................... 11
Figure 10: Off-Campus Study Space (TBar Survey).................................................................... 12
Figure 11: Healthiness (TBar Survey) .......................................................................................... 13
Figure 12: Age (TBar Survey) ...................................................................................................... 14
Figure 13: Fusion Bowl (TBar Website) ...................................................................................... 15
Figure 14: Raspberry Crush Freeze Oolong Tea (TBar Website) ................................................ 15
Figure 15: 857 Monterey Street Lease Floor Plan (LoopNet) ...................................................... 16
Figure 16: 857 Monterey Street Lease Details (LoopNet)............................................................ 18
Figure 17: Financial Statement..................................................................................................... 19
1
Introduction
Summary of Report
The purpose of this report is to bring the logistics, statistics and qualitative data of why San Luis
Obispo would benefit from implementing the already established restaurant Tea Bar & Fusion
Café, also frequently known as TBar. This restaurant would bring a healthy dining option to the
area as well as a unique setting for people to come and join within the community. Discussed in
this report will be the reasoning and logistics to how and why this restaurant will be profitable
and a positive contribution to the people of San Luis Obispo. This proposal was chosen based off
the success of the other chain stores located in Chico and Sacramento, California, both of which
are near and in college towns.
Company Background
Current owners, husband and wife, Shelley and Lance Blanshei, opened their first Tea Bar &
Fusion Café location in 2004. Since then, their franchise has grown to three locations. The first
two are located in the Northern California college town of Chico. In September 2018, the third
location opened up in Midtown, Sacramento. After 15 years of business, the tea based café has
grown into a small chain, expanding to areas other than in Chico.
Figure 1: Sacramento Location at The Sofia (Sactown Magazine)
2
Figure 2: Chico Location at Forest Avenue (Airbnb)
The brand first began because the owners “wanted to do something unique and exciting with
tea,” (“Our Story”). Still to this day, co-owner Shelly Blanshei states, “we want to make it more
fun and a little more modern,” when comparing their company to other traditional tea shops
(Chau). They describe their environment as a non-alcoholic bar which sounds like an oxymoron,
but it is what makes them unique.
Due to the company’s unique business model, it is difficult to compare to other places but that
just shows that the owners have truly accomplished their starting goal of doing something
different. TBar can be described as a restaurant, café, or bar. Customers can decide to visit TBar
for lunch, (non-alcoholic) drinks, or snacks. Although the focus of the establishment is on the
variety of tea drinks, they are known for their healthy fusion bowls and wraps as well. TBar even
differentiates itself from itself by offering slightly different menus in the two different cities that
it is located in.
Mission and Objectives
Tea Bar & Fusion Café was created to be something unique. The goal of the food and beverage
establishment is to provide a “fusion of flavors,” not only with their “fresh take on a 5,000-year-
old beverage,” but on their healthy food options as well (“Our Story”). Following the original
reason for creating TBar, the team is committed to “serving tea that is unique, flavorful, and fun”
(“Build a Better Community”). They want people to “come in and join the tea revolution” (“Our
Story”).
With the motto, “together we shine,” TBar is committed to doing their part in building a better
community. Part of the values held by the restaurant company is to give back to local nonprofits,
teams, and organizations. To adhere to this value, one of the Chico locations has Thursday
Takeover Nights, which means 20% of the night’s proceeds are given back to the participating
3
organizations (“Build a Better Community”). Additionally, TBar wants to show their
appreciation for teachers and offers daily discounts for teachers.
Tea Bar & Fusion Café does not only want to be a restaurant physically located in a community
but a positive member of the community. It is important to provide healthy food and a wide
variety of tea options but it is really about meeting the triple bottom line. TBar is made to be a
positive influence for the customers, community, and environment.
Although Tea Bar & Fusion Café does have plastic food and beverage to-go containers,
customers have the option of staying at the restaurant to eat where their meal will be served on a
reusable plate and their drink will be in a glass cup. TBar is doing what they can in order to
reduce waste without sacrificing convenience for their customers.
As a potential new member of the San Luis Obispo community, TBar will provide a fun yet
tranquil place for students to eat, drink, study, and hang-out. The restaurant offers free Wi-Fi but
promotes being present and in the moment with each other.
Products/Services
Tea Bar & Fusion Café is a restaurant based in Chico, California just a few blocks down from
California State University, Chico. Behind the business was the idea that people have always
enjoyed tea but it has always been a traditional and average experience. To bring a new
experience the founders decided to take tea to the next level and incorporate it into different
types. From sparkling teas “Sparkle Me’s” to frozen teas “Freeze Me’s” there is a variety for
whatever mood one is in. The owner explained TBar in an interview as “We are changing the
paradigm of tea. A tea house is something seen as quiet, sedate and serving esoteric teas. We are
the antithesis of that. TBar is energetic. We have tea tenders instead of bartenders” (Anderson,
Sacramento Business Journal). Beyond tea, TBar offers a variety of food options including
bowls, wraps, appetizers, all with a healthy flare. Aside from the in store experience, TBar also
offers catering for businesses, schools, parties, etc., which allows them to reach beyond their
doors and involve them into the community.
Figure 3: Entrees, Appetizers, and Drinks (TBar Instagram)
4
Figure 4: Red Hibiscus Tea (TBar Instagram)
Figure 5: Tea Options (TBar Instagram)
Figure 6: London Broil Wrap (TBar Instagram)
5
Menu
Figure 7: Tea Bar & Fusion Café Food Menu (TBar Menu)
6
Figure 8: Tea Bar and Fusion Café Tea Menu (TBar Menu)
7
Market & Competition
One of the primary factors of any shop is the price of their products. Tea Bar & Fusion Café
offers exceptional prices for the quality of their beverages and foods. Something that is lacking
in San Luis Obispo is the presence of a true café or restaurant that is dedicated to tea. There are
plenty of coffee shops, but for the non-coffee drinkers, TBar would be a perfect source of
caffeine or a tasty beverage in place of coffee.
Dining
Another factor that strengthens Tea Bar & Fusion Café compared to several local cafés in San
Luis Obispo is their lack of a dine-in menu. Most cafés in San Luis Obispo specialize only in
their coffee, making it a great place to relax and study at. However, if a customer were to get
hungry during their study session, they would have to leave their coveted spot at the café to go
elsewhere to get food. This would not be the case with TBar. TBar not only serves refreshing and
tasty beverages, but their exquisite, healthy, and affordable dining options are what sets them
apart from their competition. TBar serves Fusion Bowls and Wraps, consisting of a build your
own style, so that you may customize it to your own personal perfection. These bowls and wraps
are also only under $10, making it a cheap and healthy dining option during those long study
sessions. Most of the beverages are also ranged under $5, so for just $15, a quality and healthy
meal and beverage is easily obtainable. This is the biggest difference to most cafés in San Luis
Obispo, the price of TBar is a lot more affordable, considering how high quality and healthy the
options are at TBar.
Location
However, since Tea Bar & Fusion Café would be a new competitor to the scene, the only issue
for them would be finding an ideal location. All of the other cafés that are already established in
San Luis Obispo have very ideal locations due to their longevity in the city. That would be one
of the only hurdles that TBar would have to overcome, since they would have to find their own
land, and considering how valued land is in San Luis Obispo, it would be difficult for them to
find an ideal location for all audiences. Overall, once TBar finds a home, they would do an
amazing job in San Luis Obispo
8
Competition Analysis
The chart below depicts the average price of Tea Bar & Fusion Café and two of its potential
competitors, Scout Coffee and Bliss Café. The results show that for a glass of Tea, TBar may be
a bit pricier than its competitors, but it is due to the extensive amount of customization that TBar
allows in their teas. Their food prices are also much lower than those of Bliss, and Scout who
does not offer any legitimate food options. For a total meal, TBar shows that they depict the most
complete meal for the cheapest cost compared to its competitors. The prices below were found
from TBar Menu, Scout Coffee – San Luis Obispo, CA., and Bliss Café Menu.
TBar Scout Coffee Bliss Café
Average Price of
Tea
$3.75 $3 $3
Average Price of
Food
$8.50 N/A $12.50
Total Cost of Tea
and Food
$11.75 $3 with no food $15.50
Figure 9: Comparison of San Luis Obispo Competition
Industry Characteristics
Tea Bar & Fusion Café is a very unique establishment in the food and beverage industry. It is a
combination of characteristics found in many restaurants, bars, and cafés. The primary features
that tie TBar into its niche in the food and beverage industry are healthy food options, a variety
of tea beverage options, a young clientele, a unique environment, and study space.
Healthy Food
According to Forbes, all consumers, from Baby Boomers to Generation Z, want healthy
food and are willing to pay for it (Gagliardi). Due to the growing demand of healthy
options, the food and beverage industry is growing with many more healthy restaurant
choices. Tea Bar and Fusion Café entered the market at the right time to be a part of the
health-conscious movement. Additionally, the Tea Bar and Fusion Café survey conducted
showed that 85% of respondents consider themselves to be moderately to very healthy so
TBar
9
Tea
Tea is becoming an increasingly popular beverage option according to Statista. Current
tea revenue is 2,798 million dollars and the projected annual revenue for tea in the United
States is 3,105 million dollars in the year 2023 (Statista).
Young Clientele
According to survey conducted for this market research, 95.6% of the respondents in the
San Luis Obispo area were between the ages 18 and 24 (Ahn et al.). Since Tea Bar and
Fusion Café is currently only located in college towns, it is easy to say that a majority of
their clientele are in their early 20s.
Unique Environment
Due to the abundant amount of options that consumers have, many establishments are
trying to separate themselves from the competition. Restaurants, bars, and cafés are all
trying to differentiate themselves through creating various themes and overall
atmospheres. Eating out has become more about the experience than simply the meal
itself. Tea Bar & Fusion Café was created to be different and it does so with its extensive
tea menu and bar-like atmosphere without the alcohol. Also, to keep up with trends and
make sure that each TBar location is different, the menus in the two cities vary and there
is no generic floor plan.
Study Space
San Luis Obispo and Chico are both known as college towns and having a place for
students to study is a major factor in drawing many customers. In San Luis Obispo and
Cal Poly’s case, there are too many students and not enough space. Many coffee shops
around San Luis Obispo provide Wi-Fi and study space and in turn are packed with
students. To survive in a similar industry as coffee shops, as well as succeed in a college
town, study space with Wi-Fi is a necessity that Tea Bar & Fusion Café has.
10
Marketing Strategy
Goal
Opening a new store is a common expansion strategy for many restaurants. According to
website, they currently have three locations: one in Sacramento and two in Chico. Therefore,
opening another store in a city like San Luis Obispo will bring the company more customers who
will enjoy the type of nourishments that Tea Bar & Fusion Café offers. Students and consumers
of the area will be thrilled to learn that they will be able to have a new option of dining.
Survey
The responses received from question one in the survey back the claim that Tea Bar & Fusion
Café would be successful. In Figure 8, 75.2% of respondents said they would rate their level of
likeliness to visit TBar as a 4 or 5. This is ample evidence that it would be plausible to open a
location in San Luis Obispo.
Figure 10: Likelihood of Visiting TBar in San Luis Obispo (TBar Survey)
11
Tea Bar & Fusion Café offers a variety of food choices within a moderate pricing range. Most of
their meals are between $9-12. Figure 9 shows 46.9% of respondents said that is their ideal
range of pricing for a meal and an additional 36.3% were willing to pay for more on their meals
too which shows that people are willing to pay for what TBar has to offer without complaint of
high prices.
Figure 11: Amount Willing to Spend on Lunch (TBar Survey)
12
In Figure 10, 73.4% of respondants marked a 4 or 5 on their level of interest in having an
additional off-campus study spot. This provides information that people do not feel like San Luis
Obispo has enough spaces to study and they think TBar would be a good place to. This also
supports that people would visit TBar for more than just their food and drink but also for their
space.
Figure 12: Off-Campus Study Space (TBar Survey)
13
Figure 11 shows 85% of the respondents are moderately to very healthy. TBar offers many
healthy food options so they would draw in many of the health-conscious consumers in the San
Luis Obispo area.
Figure 13: Healthiness (TBar Survey)
14
Figure 12 shows 95.6% of respondents were between 18-24. This statistic reinforces that TBar
will be successful in San Luis Obispo because the average age of respondents fits within the
average age of students at Cal Poly. This is also within two years of the median age of residents
in San Luis Obispo. Because the survey and restaurant will be aimed towards college age adults
this evidence supports the implementation of TBar.
Figure 14: Age (TBar Survey)
Consumers
With opening a new store in San Luis Obispo comes with pertaining to the people of San Luis
Obispo. It’s no surprise that most of San Luis Obispo’s population is derived from students of
Cal Poly. According to LoopNet, most of the total population at San Luis Obispo is occupied by
students, as San Luis Obispo’s top employer is “California Polytechnic State University, which
employs over 2,600 people” (LoopNet). And it’s safe to assume that most of Cal Poly students
enjoy going to the Recreation Center and going to nearby beaches. Every Cal Poly student has
access to the Recreation Center and most actively use their membership. This shows the specific
type of students that most of San Luis Obispo harbors: active and athletic and since most of San
Luis Obispo’s population range from ages 18 to 40, it seems beneficial to implement more
healthy option beverages.
Food Options
Since Tea Bar & Fusion Café already caters towards the grab-and-go lifestyle, along with their
bowls and wraps, which are relatively healthy and low in calories, it only seems fitting to add a
15
healthy living food option. Their typical food options involve fresh produce incorporated into
their wraps and bowls. Customers can also choose to make their meal gluten-free and add as
little or much sauces as they want. They have a simple menu that can be customized in limitless
different combinations along with their tea options. Beverages can be infused with different tea
options as well as combined with fruit choices.
Development Plan
In addition to adding new refreshments, the location of the new chain store is just as pertinent.
The location of a food service business will impact its success nearly as much as the menu. If the
restaurant is in the wrong place, it won't attract the number of customers it will need in order to
Figure 15: Fusion Bowl (TBar Website)
Figure 16: Raspberry Crush Freeze Oolong Tea (TBar Website)
16
stay in business. Therefore, adding a Tea Bar & Fusion Café in the middle of Downtown San
Luis Obispo would be the ideal location to put the restaurant. We will be acquiring the open
space on 857 Monterey Street downtown. Not only will this location make the restaurant easy to
navigate, but also downtown is constantly bustling with foot traffic. According to LoopNet,
leasing a storefront in San Luis Obispo is typically $2.00 to $4.00 per square foot and most
stores in the Downtown San Luis Obispo area are 2,000 - 4,000 square foot. Therefore, the price
to lease a place would be roughly around $16,000, give or take. There are other options, but we
feel like this one fits the best. Hence the importance of making sure that location and pricing is
thoroughly considered and thought through.
An aspect that is crucial for Tea Bar & Fusion Café during its first month is that the revenue
optimization is synonymous to contribution optimization, meaning that cash flow should be
positive. This’ll make sure that TBar does well in San Luis Obispo and doesn’t lose money and,
ultimately, their business. Typical items of TBar include their Frosted Tea Lattes and Fresh
Brewed Iced Tea specials, which are priced $4.25 and $2.95, respectively. In addition to their
popular beverages, their high-in-demand Fusion Bowl is at a fairly priced $9.45 as well as their
$7.45 Fusion Wraps. Considering the price points for each item is less than ten dollars each,
TBar would implement itself perfectly into San Luis Obispo due to its fairly priced items. This
will appeal to consumers, especially students, who are typically looking for products that’ll give
them more bang for their buck.
Figure 17: 857 Monterey Street Lease Floor Plan (LoopNet)
17
Funding
We will be working with Tea Bar Fusion & Café’s Lance and Shelly Blanshei, the owners of
TBar, to raise money for funding. In addition to fundraising, we will be handing out
advertisements as well as coupons for the students of Cal Poly. This will help attract customers
and make sure they constantly return while the promotion is happening. During the first year
opening, we want to make sure that the restaurant makes over $339,400 given that the area being
leased is 2,100 square feet.
Overall Business Implementation Schedule
The first tasks at opening the new Tea Bar & Fusion Café would ideally begin around two
months prior to the grand opening. The first and more important tasks would be establishing a
pre-opening budget, creating a visual representation of the café, and dealing with all background
and legal issues as well. Settling these first would allow for a much easier and fluid opening
process. The visual representation aspect would consist of: ordering all of the in-house furniture
and silverware, signs, and creating that environment for the rest of the build of the restaurant to
build off of. The legal issues would be the health certifications, heating, water, electric, etc, all of
the necessary factors for a building to run.
Around one and a half months prior to the opening, after all of the legal issues are settled, it
would be ideal to start working on the timeline of opening and putting it into real time. Simply
preparations of starting to open the restaurant, all of the furniture and signs are put into place and
now only the specifics would be left to manage. During this time the restaurant should also be
hiring all of its workers so that the restaurant can be at its fullest potential about two weeks prior
to the opening.
A month from opening, this whole month should consist of preparations for opening. This would
consist of: preparing the restaurant to be aesthetically pleasing and flowing in the perfect way.
All workers and employees should be hired by now and in training to be ready for opening day.
Everything should be in perfect place the week of the opening. By then, everything should be
perfect, all of the drinks and food should be prepared and all the workers should know their exact
roles and positions.
18
Critical Risks/Problems
Location
The location of the Tea Bar & Fusion Café would be ideally in downtown San Luis Obispo. The
problem with this would be actually finding a space available for leasing. Although many
locations in downtown are still available. Many are not taken because of their high leasing cost.
A combination of the location and its leasing price will be pertinent in the decision of
establishing a TBar in San Luis Obispo.
Commercial Leasing
San Luis Obispo has a problem with limited commercial locations. The location for the new Tea
Bar & Fusion Café would first have to be available and secondly would have to be within the
price range of the business. TBar is located in Chico which has a price of living that is
approximately half of that of San Luis Obispo. In Chico the median home price of a home is
$349,100 and in San Luis Obispo it is $738,500 (Zillow). This is more than twice the amount in
price. This steep price in home real estate is very similar to monthly leasing for a commercial
location and Tea Bar would be expected to pay $16,000 on rent every single month. This is a
steep increase in rent for a smaller leasing location, but the higher foot traffic in San Luis Obispo
would create adequate profitability for the Tea Bar and Fusion Café.
Figure 18: 857 Monterey Street Lease Details (LoopNet)
19
Poor Profits
Creating a restaurant is a very risky venture. Most restaurants fail to make a profit until their
third year. Some restaurants longer to make a profit (Arthur). The startup costs for restaurants
are substantial and receiving that money back can be a trek. The median cost of opening a
restaurant can be as much as $275,000 (5 Things). Sitting on that much money without turning
profits makes turns many restaurant owners away and can make many connoisseurs lose a lot of
money. The difficulty is not in obtaining customers because downtown San Luis Obispo will
take care of that. The difficulty is in keeping customers and delivering consistently to loyal
consumers. TBar, being a already established chain, can cut down on some of these costs.
However, moving their business from Northern California to the central coast may prove
difficult and hidden costs may be incurred.
Financial Projections
Leasing a commercial location in downtown San Luis Obispo can be difficult and expensive.
The lease can cost $16,000 which was obtained from a $3.95/sq ft estimate. This cost also does
not include the new equipment that has to be purchased, the remodeling that the location has to
go through, licenses, city fees, marketing and food purchases. All of these costs are incurred
before we even open the doors. After the fact, we have to pay our workers as well as pay for
electricity and the upkeep of the restaurant. For all of this we have to make educated estimates as
we have not opened a restaurant in such a high priced city before.
*All values are estimates and are rounded off for better understanding
Figure 19: Financial Statement
20
According to these values, TBar would need to sell 396 units of either tea or food so it can make
a profit within the first year. I believe the food values are a little forgiving and less sales could
still generate a profit. Tea bar would also save money because they are already a franchise and
they already have experience expanding. The value for marketing is generous but would be sure
to create a buzz in the surrounding area with permanent residents and students alike. Tea Bar
may serve healthy and delicious food, but selling 396 units a day is not that easily attainable. The
breakeven point could be easy to acquire in a few months, but it could take a year or longer
before profits reached adequate levels.
21
Conclusion
Between the health-conscious crowd and the copious amount of young adults, the richest
California State University town boasts an exemplary market for the Tea Bar & Fusion Café. San
Luis Obispo is bursting with profitability for this delicious, millennial restaurant. Although the
leasing in San Luis Obispo may be more expensive than in Chico, the high foot traffic can make
the spot more profitable here. Establishing a Tea Bar & Fusion Café in downtown San Luis
Obispo would be a feasible and smart business decision concerning profitability if the owners
wish to expand their brand and continue their chain.
Based on the information we uncovered, our group recommends establishing a TBar in
downtown San Luis Obispo. Having a restaurant with delicious, healthy food in combination
with great tea-based drinks close to a population of healthy young adults will prove to be a
profitable endeavor. Although leasing for San Luis Obispo is high, foot traffic and demand for a
TBar in San Luis Obispo county is too. It may take a year before profits start coming in, but once
they do, it will come in strong. San Luis Obispo residents are loyal and affluent. Establishing a
Tea Bar and Fusion Café in this booming, small city will be satisfactory for the residents and the
bank accounts of the TBar investors.
22
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23
LoopNet. “857 Monterey St, San Luis Obispo, CA, 93401 - Storefront Property For Lease on
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CA/11677730/
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2019, www.instagram.com/p/BtwzS_5nRZP/
Tea Bar & Fusion Café. Sacramento Location at The Sofia. 2018. Sactown Magazine. Web.
www.sactownmag.com/images/cache/cache_4/cache_9/cache_f/37409265_16343290666
64770_1427433295653634048_n-15763f94.jpeg?ver=1549713175&aspectratio=1
24
Appendix
Survey Questions and Responses
1. How likely are you to visit TBar if it opens in SAN LUIS OBISPO? (Scale 1-5)
● 1: 8 responses (7.1%)
● 2: 12 responses (10.6%)
● 3: 8 responses (7.1%)
● 4: 30 responses (26.5%)
● 5: 55 responses (48.7%)
2. How much are you willing to spend on lunch?
● $5-8: 19 (16.8%)
● $9-12: 53 (46.9%)
● $13-16: 29 (25.7%)
● $17-20: 7 (6.2%)
● $21+: 5 (4.4%)
3. How often do you drink tea?
● 1-2 times: 54 (47.8%)
● 3-5 times: 47 (41.6%)
● 6-7 times: 12 (10.6%)
4. How often do you eat out?
● 1-2 times: 55 (48.7%)
● 3-5 times: 38 (33.6%)
● 6-7 times: 20 (17.7%)
5. How much would you like another option for off-campus studying? (Scale 1-5)
● 1: 5 (4.4.%)
● 2: 12 (10.6%)
● 3: 36 (31.9%)
● 4: 32 (28.3%)
● 5: 28 (24.8%)
6. How health conscious are you?
● 1: 5 (4.4%)
● 2: 12 (10.6%)
● 3: 36 (31.9%)
● 4: 32 (28.3%)
● 5: 28 (24.8%)
7. Gender
● Female: 57 (50.4%)
25
● Male: 49 (43.4%)
● Other: 7 (6.2%)
8. Age
● 18: 9 (8%)
● 19: 22 (19.5%)
● 20: 34 (30.1%)
● 21: 26 (23%)
● 22: 10 (8.8%)
● 23: 4 (3.5%)
● 24: 3 (2.7%)
● 26: 1 (0.9%)
● 27: 1 (0.9%)
● 29: 1 (0.9%)
● 35: 2 (1.8%)

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Tea Bar & Fusion Cafe Proposal

  • 1. Tea Bar & Fusion Café “Together we shine” Kaia Anderson, Sarah Macias, Adrian Avila, Erika Wang, Michael Ahn
  • 2. i Table of Contents Table of Figures............................................................................................................................. ii Introduction................................................................................................................................... 1 Summary of Report................................................................................................................... 1 Company Background.............................................................................................................. 1 Mission and Objectives............................................................................................................. 2 Products/Services ...................................................................................................................... 3 Menu........................................................................................................................................... 5 Market & Competition................................................................................................................. 7 Dining ......................................................................................................................................... 7 Location...................................................................................................................................... 7 Competition Analysis................................................................................................................ 8 Industry Characteristics........................................................................................................... 8 Healthy Food.......................................................................................................................... 8 Tea........................................................................................................................................... 9 Young Clientele...................................................................................................................... 9 Unique Environment ............................................................................................................. 9 Study Space ............................................................................................................................ 9 Marketing Strategy..................................................................................................................... 10 Goal........................................................................................................................................... 10 Survey....................................................................................................................................... 10 Consumers................................................................................................................................ 14 Food Options............................................................................................................................ 14 Development Plan.................................................................................................................... 15 Funding .................................................................................................................................... 17 Overall Business Implementation Schedule.......................................................................... 17 Critical Risks/Problems.............................................................................................................. 18 Location.................................................................................................................................... 18 Commercial Leasing ............................................................................................................... 18
  • 3. ii Poor Profits.............................................................................................................................. 19 Financial Projections............................................................................................................... 19 Conclusion ................................................................................................................................... 21 Works Cited................................................................................................................................. 22 Appendix...................................................................................................................................... 24 Table of Figures Figure 1: Sacramento Location at The Sofia (Sactown Magazine) ................................................ 1 Figure 2: Chico Location at Forest Avenue (Airbnb)..................................................................... 2 Figure 3: Entrees, Appetizers, and Drinks (TBar Instagram) ......................................................... 3 Figure 4: Red Hibiscus Tea (TBar Instagram)................................................................................ 4 Figure 5: Tea Options (TBar Instagram) ........................................................................................ 4 Figure 6: London Broil Wrap (TBar Instagram)............................................................................. 4 Figure 5: Tea Bar & Fusion Café Food Menu (TBar Menu).......................................................... 5 Figure 6: Tea Bar and Fusion Café Tea Menu (TBar Menu) ......................................................... 6 Figure 7: Comparison of San Luis Obispo Competition ................................................................ 8 Figure 8: Likelihood of Visiting TBar in San Luis Obispo (TBar Survey).................................. 10 Figure 9: Amount Willing to Spend on Lunch (TBar Survey) ..................................................... 11 Figure 10: Off-Campus Study Space (TBar Survey).................................................................... 12 Figure 11: Healthiness (TBar Survey) .......................................................................................... 13 Figure 12: Age (TBar Survey) ...................................................................................................... 14 Figure 13: Fusion Bowl (TBar Website) ...................................................................................... 15 Figure 14: Raspberry Crush Freeze Oolong Tea (TBar Website) ................................................ 15 Figure 15: 857 Monterey Street Lease Floor Plan (LoopNet) ...................................................... 16 Figure 16: 857 Monterey Street Lease Details (LoopNet)............................................................ 18 Figure 17: Financial Statement..................................................................................................... 19
  • 4. 1 Introduction Summary of Report The purpose of this report is to bring the logistics, statistics and qualitative data of why San Luis Obispo would benefit from implementing the already established restaurant Tea Bar & Fusion Café, also frequently known as TBar. This restaurant would bring a healthy dining option to the area as well as a unique setting for people to come and join within the community. Discussed in this report will be the reasoning and logistics to how and why this restaurant will be profitable and a positive contribution to the people of San Luis Obispo. This proposal was chosen based off the success of the other chain stores located in Chico and Sacramento, California, both of which are near and in college towns. Company Background Current owners, husband and wife, Shelley and Lance Blanshei, opened their first Tea Bar & Fusion Café location in 2004. Since then, their franchise has grown to three locations. The first two are located in the Northern California college town of Chico. In September 2018, the third location opened up in Midtown, Sacramento. After 15 years of business, the tea based café has grown into a small chain, expanding to areas other than in Chico. Figure 1: Sacramento Location at The Sofia (Sactown Magazine)
  • 5. 2 Figure 2: Chico Location at Forest Avenue (Airbnb) The brand first began because the owners “wanted to do something unique and exciting with tea,” (“Our Story”). Still to this day, co-owner Shelly Blanshei states, “we want to make it more fun and a little more modern,” when comparing their company to other traditional tea shops (Chau). They describe their environment as a non-alcoholic bar which sounds like an oxymoron, but it is what makes them unique. Due to the company’s unique business model, it is difficult to compare to other places but that just shows that the owners have truly accomplished their starting goal of doing something different. TBar can be described as a restaurant, café, or bar. Customers can decide to visit TBar for lunch, (non-alcoholic) drinks, or snacks. Although the focus of the establishment is on the variety of tea drinks, they are known for their healthy fusion bowls and wraps as well. TBar even differentiates itself from itself by offering slightly different menus in the two different cities that it is located in. Mission and Objectives Tea Bar & Fusion Café was created to be something unique. The goal of the food and beverage establishment is to provide a “fusion of flavors,” not only with their “fresh take on a 5,000-year- old beverage,” but on their healthy food options as well (“Our Story”). Following the original reason for creating TBar, the team is committed to “serving tea that is unique, flavorful, and fun” (“Build a Better Community”). They want people to “come in and join the tea revolution” (“Our Story”). With the motto, “together we shine,” TBar is committed to doing their part in building a better community. Part of the values held by the restaurant company is to give back to local nonprofits, teams, and organizations. To adhere to this value, one of the Chico locations has Thursday Takeover Nights, which means 20% of the night’s proceeds are given back to the participating
  • 6. 3 organizations (“Build a Better Community”). Additionally, TBar wants to show their appreciation for teachers and offers daily discounts for teachers. Tea Bar & Fusion Café does not only want to be a restaurant physically located in a community but a positive member of the community. It is important to provide healthy food and a wide variety of tea options but it is really about meeting the triple bottom line. TBar is made to be a positive influence for the customers, community, and environment. Although Tea Bar & Fusion Café does have plastic food and beverage to-go containers, customers have the option of staying at the restaurant to eat where their meal will be served on a reusable plate and their drink will be in a glass cup. TBar is doing what they can in order to reduce waste without sacrificing convenience for their customers. As a potential new member of the San Luis Obispo community, TBar will provide a fun yet tranquil place for students to eat, drink, study, and hang-out. The restaurant offers free Wi-Fi but promotes being present and in the moment with each other. Products/Services Tea Bar & Fusion Café is a restaurant based in Chico, California just a few blocks down from California State University, Chico. Behind the business was the idea that people have always enjoyed tea but it has always been a traditional and average experience. To bring a new experience the founders decided to take tea to the next level and incorporate it into different types. From sparkling teas “Sparkle Me’s” to frozen teas “Freeze Me’s” there is a variety for whatever mood one is in. The owner explained TBar in an interview as “We are changing the paradigm of tea. A tea house is something seen as quiet, sedate and serving esoteric teas. We are the antithesis of that. TBar is energetic. We have tea tenders instead of bartenders” (Anderson, Sacramento Business Journal). Beyond tea, TBar offers a variety of food options including bowls, wraps, appetizers, all with a healthy flare. Aside from the in store experience, TBar also offers catering for businesses, schools, parties, etc., which allows them to reach beyond their doors and involve them into the community. Figure 3: Entrees, Appetizers, and Drinks (TBar Instagram)
  • 7. 4 Figure 4: Red Hibiscus Tea (TBar Instagram) Figure 5: Tea Options (TBar Instagram) Figure 6: London Broil Wrap (TBar Instagram)
  • 8. 5 Menu Figure 7: Tea Bar & Fusion Café Food Menu (TBar Menu)
  • 9. 6 Figure 8: Tea Bar and Fusion Café Tea Menu (TBar Menu)
  • 10. 7 Market & Competition One of the primary factors of any shop is the price of their products. Tea Bar & Fusion Café offers exceptional prices for the quality of their beverages and foods. Something that is lacking in San Luis Obispo is the presence of a true café or restaurant that is dedicated to tea. There are plenty of coffee shops, but for the non-coffee drinkers, TBar would be a perfect source of caffeine or a tasty beverage in place of coffee. Dining Another factor that strengthens Tea Bar & Fusion Café compared to several local cafés in San Luis Obispo is their lack of a dine-in menu. Most cafés in San Luis Obispo specialize only in their coffee, making it a great place to relax and study at. However, if a customer were to get hungry during their study session, they would have to leave their coveted spot at the café to go elsewhere to get food. This would not be the case with TBar. TBar not only serves refreshing and tasty beverages, but their exquisite, healthy, and affordable dining options are what sets them apart from their competition. TBar serves Fusion Bowls and Wraps, consisting of a build your own style, so that you may customize it to your own personal perfection. These bowls and wraps are also only under $10, making it a cheap and healthy dining option during those long study sessions. Most of the beverages are also ranged under $5, so for just $15, a quality and healthy meal and beverage is easily obtainable. This is the biggest difference to most cafés in San Luis Obispo, the price of TBar is a lot more affordable, considering how high quality and healthy the options are at TBar. Location However, since Tea Bar & Fusion Café would be a new competitor to the scene, the only issue for them would be finding an ideal location. All of the other cafés that are already established in San Luis Obispo have very ideal locations due to their longevity in the city. That would be one of the only hurdles that TBar would have to overcome, since they would have to find their own land, and considering how valued land is in San Luis Obispo, it would be difficult for them to find an ideal location for all audiences. Overall, once TBar finds a home, they would do an amazing job in San Luis Obispo
  • 11. 8 Competition Analysis The chart below depicts the average price of Tea Bar & Fusion Café and two of its potential competitors, Scout Coffee and Bliss Café. The results show that for a glass of Tea, TBar may be a bit pricier than its competitors, but it is due to the extensive amount of customization that TBar allows in their teas. Their food prices are also much lower than those of Bliss, and Scout who does not offer any legitimate food options. For a total meal, TBar shows that they depict the most complete meal for the cheapest cost compared to its competitors. The prices below were found from TBar Menu, Scout Coffee – San Luis Obispo, CA., and Bliss Café Menu. TBar Scout Coffee Bliss Café Average Price of Tea $3.75 $3 $3 Average Price of Food $8.50 N/A $12.50 Total Cost of Tea and Food $11.75 $3 with no food $15.50 Figure 9: Comparison of San Luis Obispo Competition Industry Characteristics Tea Bar & Fusion Café is a very unique establishment in the food and beverage industry. It is a combination of characteristics found in many restaurants, bars, and cafés. The primary features that tie TBar into its niche in the food and beverage industry are healthy food options, a variety of tea beverage options, a young clientele, a unique environment, and study space. Healthy Food According to Forbes, all consumers, from Baby Boomers to Generation Z, want healthy food and are willing to pay for it (Gagliardi). Due to the growing demand of healthy options, the food and beverage industry is growing with many more healthy restaurant choices. Tea Bar and Fusion Café entered the market at the right time to be a part of the health-conscious movement. Additionally, the Tea Bar and Fusion Café survey conducted showed that 85% of respondents consider themselves to be moderately to very healthy so TBar
  • 12. 9 Tea Tea is becoming an increasingly popular beverage option according to Statista. Current tea revenue is 2,798 million dollars and the projected annual revenue for tea in the United States is 3,105 million dollars in the year 2023 (Statista). Young Clientele According to survey conducted for this market research, 95.6% of the respondents in the San Luis Obispo area were between the ages 18 and 24 (Ahn et al.). Since Tea Bar and Fusion Café is currently only located in college towns, it is easy to say that a majority of their clientele are in their early 20s. Unique Environment Due to the abundant amount of options that consumers have, many establishments are trying to separate themselves from the competition. Restaurants, bars, and cafés are all trying to differentiate themselves through creating various themes and overall atmospheres. Eating out has become more about the experience than simply the meal itself. Tea Bar & Fusion Café was created to be different and it does so with its extensive tea menu and bar-like atmosphere without the alcohol. Also, to keep up with trends and make sure that each TBar location is different, the menus in the two cities vary and there is no generic floor plan. Study Space San Luis Obispo and Chico are both known as college towns and having a place for students to study is a major factor in drawing many customers. In San Luis Obispo and Cal Poly’s case, there are too many students and not enough space. Many coffee shops around San Luis Obispo provide Wi-Fi and study space and in turn are packed with students. To survive in a similar industry as coffee shops, as well as succeed in a college town, study space with Wi-Fi is a necessity that Tea Bar & Fusion Café has.
  • 13. 10 Marketing Strategy Goal Opening a new store is a common expansion strategy for many restaurants. According to website, they currently have three locations: one in Sacramento and two in Chico. Therefore, opening another store in a city like San Luis Obispo will bring the company more customers who will enjoy the type of nourishments that Tea Bar & Fusion Café offers. Students and consumers of the area will be thrilled to learn that they will be able to have a new option of dining. Survey The responses received from question one in the survey back the claim that Tea Bar & Fusion Café would be successful. In Figure 8, 75.2% of respondents said they would rate their level of likeliness to visit TBar as a 4 or 5. This is ample evidence that it would be plausible to open a location in San Luis Obispo. Figure 10: Likelihood of Visiting TBar in San Luis Obispo (TBar Survey)
  • 14. 11 Tea Bar & Fusion Café offers a variety of food choices within a moderate pricing range. Most of their meals are between $9-12. Figure 9 shows 46.9% of respondents said that is their ideal range of pricing for a meal and an additional 36.3% were willing to pay for more on their meals too which shows that people are willing to pay for what TBar has to offer without complaint of high prices. Figure 11: Amount Willing to Spend on Lunch (TBar Survey)
  • 15. 12 In Figure 10, 73.4% of respondants marked a 4 or 5 on their level of interest in having an additional off-campus study spot. This provides information that people do not feel like San Luis Obispo has enough spaces to study and they think TBar would be a good place to. This also supports that people would visit TBar for more than just their food and drink but also for their space. Figure 12: Off-Campus Study Space (TBar Survey)
  • 16. 13 Figure 11 shows 85% of the respondents are moderately to very healthy. TBar offers many healthy food options so they would draw in many of the health-conscious consumers in the San Luis Obispo area. Figure 13: Healthiness (TBar Survey)
  • 17. 14 Figure 12 shows 95.6% of respondents were between 18-24. This statistic reinforces that TBar will be successful in San Luis Obispo because the average age of respondents fits within the average age of students at Cal Poly. This is also within two years of the median age of residents in San Luis Obispo. Because the survey and restaurant will be aimed towards college age adults this evidence supports the implementation of TBar. Figure 14: Age (TBar Survey) Consumers With opening a new store in San Luis Obispo comes with pertaining to the people of San Luis Obispo. It’s no surprise that most of San Luis Obispo’s population is derived from students of Cal Poly. According to LoopNet, most of the total population at San Luis Obispo is occupied by students, as San Luis Obispo’s top employer is “California Polytechnic State University, which employs over 2,600 people” (LoopNet). And it’s safe to assume that most of Cal Poly students enjoy going to the Recreation Center and going to nearby beaches. Every Cal Poly student has access to the Recreation Center and most actively use their membership. This shows the specific type of students that most of San Luis Obispo harbors: active and athletic and since most of San Luis Obispo’s population range from ages 18 to 40, it seems beneficial to implement more healthy option beverages. Food Options Since Tea Bar & Fusion Café already caters towards the grab-and-go lifestyle, along with their bowls and wraps, which are relatively healthy and low in calories, it only seems fitting to add a
  • 18. 15 healthy living food option. Their typical food options involve fresh produce incorporated into their wraps and bowls. Customers can also choose to make their meal gluten-free and add as little or much sauces as they want. They have a simple menu that can be customized in limitless different combinations along with their tea options. Beverages can be infused with different tea options as well as combined with fruit choices. Development Plan In addition to adding new refreshments, the location of the new chain store is just as pertinent. The location of a food service business will impact its success nearly as much as the menu. If the restaurant is in the wrong place, it won't attract the number of customers it will need in order to Figure 15: Fusion Bowl (TBar Website) Figure 16: Raspberry Crush Freeze Oolong Tea (TBar Website)
  • 19. 16 stay in business. Therefore, adding a Tea Bar & Fusion Café in the middle of Downtown San Luis Obispo would be the ideal location to put the restaurant. We will be acquiring the open space on 857 Monterey Street downtown. Not only will this location make the restaurant easy to navigate, but also downtown is constantly bustling with foot traffic. According to LoopNet, leasing a storefront in San Luis Obispo is typically $2.00 to $4.00 per square foot and most stores in the Downtown San Luis Obispo area are 2,000 - 4,000 square foot. Therefore, the price to lease a place would be roughly around $16,000, give or take. There are other options, but we feel like this one fits the best. Hence the importance of making sure that location and pricing is thoroughly considered and thought through. An aspect that is crucial for Tea Bar & Fusion Café during its first month is that the revenue optimization is synonymous to contribution optimization, meaning that cash flow should be positive. This’ll make sure that TBar does well in San Luis Obispo and doesn’t lose money and, ultimately, their business. Typical items of TBar include their Frosted Tea Lattes and Fresh Brewed Iced Tea specials, which are priced $4.25 and $2.95, respectively. In addition to their popular beverages, their high-in-demand Fusion Bowl is at a fairly priced $9.45 as well as their $7.45 Fusion Wraps. Considering the price points for each item is less than ten dollars each, TBar would implement itself perfectly into San Luis Obispo due to its fairly priced items. This will appeal to consumers, especially students, who are typically looking for products that’ll give them more bang for their buck. Figure 17: 857 Monterey Street Lease Floor Plan (LoopNet)
  • 20. 17 Funding We will be working with Tea Bar Fusion & Café’s Lance and Shelly Blanshei, the owners of TBar, to raise money for funding. In addition to fundraising, we will be handing out advertisements as well as coupons for the students of Cal Poly. This will help attract customers and make sure they constantly return while the promotion is happening. During the first year opening, we want to make sure that the restaurant makes over $339,400 given that the area being leased is 2,100 square feet. Overall Business Implementation Schedule The first tasks at opening the new Tea Bar & Fusion Café would ideally begin around two months prior to the grand opening. The first and more important tasks would be establishing a pre-opening budget, creating a visual representation of the café, and dealing with all background and legal issues as well. Settling these first would allow for a much easier and fluid opening process. The visual representation aspect would consist of: ordering all of the in-house furniture and silverware, signs, and creating that environment for the rest of the build of the restaurant to build off of. The legal issues would be the health certifications, heating, water, electric, etc, all of the necessary factors for a building to run. Around one and a half months prior to the opening, after all of the legal issues are settled, it would be ideal to start working on the timeline of opening and putting it into real time. Simply preparations of starting to open the restaurant, all of the furniture and signs are put into place and now only the specifics would be left to manage. During this time the restaurant should also be hiring all of its workers so that the restaurant can be at its fullest potential about two weeks prior to the opening. A month from opening, this whole month should consist of preparations for opening. This would consist of: preparing the restaurant to be aesthetically pleasing and flowing in the perfect way. All workers and employees should be hired by now and in training to be ready for opening day. Everything should be in perfect place the week of the opening. By then, everything should be perfect, all of the drinks and food should be prepared and all the workers should know their exact roles and positions.
  • 21. 18 Critical Risks/Problems Location The location of the Tea Bar & Fusion Café would be ideally in downtown San Luis Obispo. The problem with this would be actually finding a space available for leasing. Although many locations in downtown are still available. Many are not taken because of their high leasing cost. A combination of the location and its leasing price will be pertinent in the decision of establishing a TBar in San Luis Obispo. Commercial Leasing San Luis Obispo has a problem with limited commercial locations. The location for the new Tea Bar & Fusion Café would first have to be available and secondly would have to be within the price range of the business. TBar is located in Chico which has a price of living that is approximately half of that of San Luis Obispo. In Chico the median home price of a home is $349,100 and in San Luis Obispo it is $738,500 (Zillow). This is more than twice the amount in price. This steep price in home real estate is very similar to monthly leasing for a commercial location and Tea Bar would be expected to pay $16,000 on rent every single month. This is a steep increase in rent for a smaller leasing location, but the higher foot traffic in San Luis Obispo would create adequate profitability for the Tea Bar and Fusion Café. Figure 18: 857 Monterey Street Lease Details (LoopNet)
  • 22. 19 Poor Profits Creating a restaurant is a very risky venture. Most restaurants fail to make a profit until their third year. Some restaurants longer to make a profit (Arthur). The startup costs for restaurants are substantial and receiving that money back can be a trek. The median cost of opening a restaurant can be as much as $275,000 (5 Things). Sitting on that much money without turning profits makes turns many restaurant owners away and can make many connoisseurs lose a lot of money. The difficulty is not in obtaining customers because downtown San Luis Obispo will take care of that. The difficulty is in keeping customers and delivering consistently to loyal consumers. TBar, being a already established chain, can cut down on some of these costs. However, moving their business from Northern California to the central coast may prove difficult and hidden costs may be incurred. Financial Projections Leasing a commercial location in downtown San Luis Obispo can be difficult and expensive. The lease can cost $16,000 which was obtained from a $3.95/sq ft estimate. This cost also does not include the new equipment that has to be purchased, the remodeling that the location has to go through, licenses, city fees, marketing and food purchases. All of these costs are incurred before we even open the doors. After the fact, we have to pay our workers as well as pay for electricity and the upkeep of the restaurant. For all of this we have to make educated estimates as we have not opened a restaurant in such a high priced city before. *All values are estimates and are rounded off for better understanding Figure 19: Financial Statement
  • 23. 20 According to these values, TBar would need to sell 396 units of either tea or food so it can make a profit within the first year. I believe the food values are a little forgiving and less sales could still generate a profit. Tea bar would also save money because they are already a franchise and they already have experience expanding. The value for marketing is generous but would be sure to create a buzz in the surrounding area with permanent residents and students alike. Tea Bar may serve healthy and delicious food, but selling 396 units a day is not that easily attainable. The breakeven point could be easy to acquire in a few months, but it could take a year or longer before profits reached adequate levels.
  • 24. 21 Conclusion Between the health-conscious crowd and the copious amount of young adults, the richest California State University town boasts an exemplary market for the Tea Bar & Fusion Café. San Luis Obispo is bursting with profitability for this delicious, millennial restaurant. Although the leasing in San Luis Obispo may be more expensive than in Chico, the high foot traffic can make the spot more profitable here. Establishing a Tea Bar & Fusion Café in downtown San Luis Obispo would be a feasible and smart business decision concerning profitability if the owners wish to expand their brand and continue their chain. Based on the information we uncovered, our group recommends establishing a TBar in downtown San Luis Obispo. Having a restaurant with delicious, healthy food in combination with great tea-based drinks close to a population of healthy young adults will prove to be a profitable endeavor. Although leasing for San Luis Obispo is high, foot traffic and demand for a TBar in San Luis Obispo county is too. It may take a year before profits start coming in, but once they do, it will come in strong. San Luis Obispo residents are loyal and affluent. Establishing a Tea Bar and Fusion Café in this booming, small city will be satisfactory for the residents and the bank accounts of the TBar investors.
  • 25. 22 Works Cited Ahn, Michael, et al. “Opening a Tea Bar and Fusion Café in San Luis Obispo.” Survey. 5-11 March 2019. Anderson, Mark. “Restaurant with Extensive Tea Menu to Debut at The Sofia.” Bizjournals.com, 24 Jan. 2018, www.bizjournals.com/sacramento/news/2018/01/24/restaurant-with- extensive-tea-menu-to-debut-at-the.html Arthur, Luke. “How Long Does It Take for You to Make Money Owning a Restaurant?” Bizfluent, 11 Feb. 2019, bizfluent.com/info-8629424-long-make-money-owning- restaurant.html “Bliss Café Menu.” Bliss Café Online Ordering & Expedited Pickup - Mkt.com/BlissCafé, squareup.com/market/blissCafé/ “Building a Better Community.” Tea Bar & Fusion Café, 2015-2018, www.ilovetbar.com/index.php/our-story/building-a-better-community/ Chau, Vu. “New Tea-Centric Cage Set to Open at The Sofia.” Sactown Magazine, 7 Aug. 2018, www.sactownmag.com/Whats-Cooking/2018/Tea-Bar-Fusion-Café-Sacramento/ Chico Location at Forest Avenue. Airbnb. Web. www.airbnb.com/google_place_photo?photoreference=CmRdAAAARjlUepoL5T1Siv07 -NrjyJvuFCTkZyKIYJS32k1XLVXr0zfdamlA7cfi5I4nyNbCE2VYB- zjOkOIwOJEtmoMVr5FUwOvmjkoRfsCUY2V5DjNMCRmB_7LjIvaynt37- igEhB9oZHTZTglGtvEunQjcZqQGhS2wPoX6- cz6hGODZ9sE4q3hQqVcA&maxwidth=1000&maxheight=1000&place_id=1121147 “5 Things Startup Restaurants Typically Overspend On.” Restaurant Engine, 30 Apr. 2015, restaurantengine.com/startup-restaurants-typically-overspend/ Gagliardi, Nancy. “Consumers Want Healthy Foods--And Will Pay More For Them.” Forbes, 18 Feb. 2015, www.forbes.com/sites/nancygagliardi/2015/02/18/consumers-want-healthy- foods-and-will-pay-more-for-them/#5665d96c75c5 “How to Calculate How Much Money a New Restaurant Might Make.” RN, 11 Sept. 2017, www.rewardsnetwork.com/finance/calculate-much-money-new-restaurant-might-make/
  • 26. 23 LoopNet. “857 Monterey St, San Luis Obispo, CA, 93401 - Storefront Property For Lease on LoopNet.com.” LoopNet, www.loopnet.com/Listing/857-Monterey-St-San-Luis-Obispo- CA/11677730/ “Our Story - Not Your Grandmother’s Cup of Tea.” Tea Bar & Fusion Café, 2015-2018, www.ilovetbar.com/index.php/our-story/ “San Luis Obispo, California Population 2019.” World Population Review, 12 June 2018, worldpopulationreview.com/us-cities/san-luis-obispo-population/ “Scout Coffee - San Luis Obispo, CA.” Yelp, 14 Nov. 2018, www.yelp.com/biz/scout-coffee- san-luis-obispo?osq=scout+coffee Statista. “Tea: United States: Revenue in Million US$.” Statista, March 2019, www-statista- com.ezproxy.lib.calpoly.edu/outlook/30020000/109/tea/united-states#market-revenue TBar Menu. ilovetbar.com/public/uploads/menu_tea_CH.pdf Tea Bar & Fusion Café. Photo of tea. Instagram, photographed by TBar customer, 29 Jan. 2019, www.instagram.com/p/BtPBqTPnJEi/ Tea Bar & Fusion Café. Photo of food. Instagram, photographed by TBar customer, 11 Feb. 2019, www.instagram.com/p/BtwzS_5nRZP/ Tea Bar & Fusion Café. Sacramento Location at The Sofia. 2018. Sactown Magazine. Web. www.sactownmag.com/images/cache/cache_4/cache_9/cache_f/37409265_16343290666 64770_1427433295653634048_n-15763f94.jpeg?ver=1549713175&aspectratio=1
  • 27. 24 Appendix Survey Questions and Responses 1. How likely are you to visit TBar if it opens in SAN LUIS OBISPO? (Scale 1-5) ● 1: 8 responses (7.1%) ● 2: 12 responses (10.6%) ● 3: 8 responses (7.1%) ● 4: 30 responses (26.5%) ● 5: 55 responses (48.7%) 2. How much are you willing to spend on lunch? ● $5-8: 19 (16.8%) ● $9-12: 53 (46.9%) ● $13-16: 29 (25.7%) ● $17-20: 7 (6.2%) ● $21+: 5 (4.4%) 3. How often do you drink tea? ● 1-2 times: 54 (47.8%) ● 3-5 times: 47 (41.6%) ● 6-7 times: 12 (10.6%) 4. How often do you eat out? ● 1-2 times: 55 (48.7%) ● 3-5 times: 38 (33.6%) ● 6-7 times: 20 (17.7%) 5. How much would you like another option for off-campus studying? (Scale 1-5) ● 1: 5 (4.4.%) ● 2: 12 (10.6%) ● 3: 36 (31.9%) ● 4: 32 (28.3%) ● 5: 28 (24.8%) 6. How health conscious are you? ● 1: 5 (4.4%) ● 2: 12 (10.6%) ● 3: 36 (31.9%) ● 4: 32 (28.3%) ● 5: 28 (24.8%) 7. Gender ● Female: 57 (50.4%)
  • 28. 25 ● Male: 49 (43.4%) ● Other: 7 (6.2%) 8. Age ● 18: 9 (8%) ● 19: 22 (19.5%) ● 20: 34 (30.1%) ● 21: 26 (23%) ● 22: 10 (8.8%) ● 23: 4 (3.5%) ● 24: 3 (2.7%) ● 26: 1 (0.9%) ● 27: 1 (0.9%) ● 29: 1 (0.9%) ● 35: 2 (1.8%)