ZEN CAFE

Business Development Proposal

BDP – Business Development Proposal

A Coffee Shop in Hanoi – Vietnam:

ZEN CAFÉ HOUSE

Tran Thi Thuy

B0436DHDH1112

Submitted in fulfilment of the requirement of the Master’s degree to

University of Gloucestershire, for the degree of Master in Business

Administration (MBA)

Supervisor: Dr K V Shenai

March 2015

DECLARATION

This Business Development Proposal is a product of my own work and is not the result of anything done in collaboration.

Student signature

I agree that this Business Development Proposal may be available for reference and photocopying, at the discretion of the University.

Student signature

Tran Thi Thuy

Contents

Contents..........................................................................................................1

EXECUTIVE SUMMARY............................................................................1

CHAPTER I - INTRODUCTION................................................................3

1.1 Rational for the Business Idea................................................................3

1.2 Scenario of the Business........................................................................4

CHAPTER II – CONCEPT OF BUSINESS................................................5

2.1. Zen Café Mission..................................................................................5

2.2. Zen Café Vision....................................................................................6

2.3 Products and Services............................................................................6

2.4 Growth Anticipation:.............................................................................7

CHAPTER III – FEASIBILITY...................................................................8

3.1 Research Methodology...........................................................................8

3.2. Feasibility............................................................................................18

Chapter IV – Business Model......................................................................30

4.1. Strategic Analysis – Business Idea.....................................................30

4.2. Sources of Competitive Advantage and Sustainability.......................34

4.3 Development of Appropriate Business Model.....................................35

CHAPTER V – THE BUSINESS PLAN....................................................38

5.1 Business Plan Overview.......................................................................38

5.2. Plan of Action.....................................................................................43

5.3 Critical Success & Failure Factors.......................................................45

APPENDICES 1...........................................................................................47

ONLINE QUESTIONNAIRE....................................................................47

REFERENCES.................................................................................................50

EXECUTIVE SUMMARY

Zen Café is the new concept of coffee house which provides the

customers with peaceful place and relaxed atmosphere so that the customers

can enjoy their drinks to the most. Zen Café is located in Hanoi, the capital city

of Vietnam, a romantic and vintage city with a lot of cultural values. Zen Café

is operated as partnership among the investors with the vision to become a

habitual coffee shop for young Vietnamese people to come and enjoy. The

required capital to open Zen Café is around US$ 60,000. Most of the capital

will be spent for purchasing necessary equipment for the coffee shop. The

founders and management board are the well-educated people who have great

ambition to change the drinking habit of Vietnamese people. The management

team has vast experience and knowledge in business administration, catering

and dining, finance and accounting.

The market research includes the primary and secondary data research.

The sampling population includes of 100 participants to answer the 10-

questions survey. 87% of the respondents age from 17 – 35 which is the main

targeting customers segment of Zen Café. 50% of all respondents want to be

served in a-la-carte style: the staffs will come directly to the table of the

customers and take order. Then, the staffs will deliver the order back to the

customers’ table.

In another hand, according to the secondary data, Vietnam has shown a

significant growth from 182,000 tonnes in 2008 to more than 300,000 tonnes in

the year of 2013 and that the sales of coffee and other hot drinks in Vietnam has

increased from US$ 938 million in 2012 to more than US$ 1.2 billion in 2013.

Hence, there are still a lot of opportunities for Zen Café. However, through the

secondary research of Porter’s Five Forces, this industry has the low barriers to

entry for new entrants and the existing competitors are quite tough.

1

Since the threats from new entrants and rivals are quite apparent, Zen

Café has to identify its own competitive advantage in comparison with the

others. Excellent service coming along with the great workplace culture from

the top management board, competitive price range with premium services,

unique business concept are the main advantages that the business founders feel

confident for the survival of Zen Café.

Zen Café has the obvious value chain. The coffee shop implement

modern techniques in order to make appropriate sales forecast together with

effective inventory management.

The business model of Zen Café is discussed throughout this proposal as

well. The business model is built up on the basis of business model canvas. Last

but not least, a summary of business plan with the detailed analysis regarding to

the market and the critical factors will be proposed.

CHAPTER I - INTRODUCTION

1.1 Rational for the Business Idea

In this business development proposal, the founders aim to open a

coffee shop which is located in Hanoi – capital city of Vietnam. The classical

environment and the slow, enjoyable living pace are the main inspiration. The

founders who have great love for this city, want to create a place for

Vietnamese who would like to enjoy a serene and quiet place with fresh brewed

coffee. As a result, business owners name their business – Zen Café – with the

meaning to help the customers in not only enjoying coffee within a Zen

atmosphere but also a place for social meeting, friendship gathering, working

and reading.

In the era of rapid globalisation as well as diversity in business concept,

Vietnamese people gradually have been used to the appearance of diversified

international coffee shop brand-name. Moreover, the significant development in

general economic and income have create the chance for Vietnamese to enjoy

higher quality in the aspect of food and beverage. As a result, Vietnamese

people have get used with a lot of well-known food and beverage brandnames

from The Coffee Bean & Tea Leaf, Burger King to Starbucks and

MacDonald’s. These brands have been creating and shaping new trend for

Vietnamese people. As a result, a lot of domestic brands have also appeared in

order to adapt with this change such as Phuc Long Tea, Urban Station Coffee,

Trung Nguyen Coffee and so on. Therefore, Zen Café is born in order to seize

the opportunity of this market.

1.2 Scenario of the Business

The scenario which is chosen for this business is totally a new start-up

with the concept of a serene, zen and peaceful coffee shop in Hanoi, Vietnam.

CHAPTER II – CONCEPT OF BUSINESS

The business owner has named the coffee shop is Zen Café with the

wish to deliver an utmost peaceful coffee shop to Vietnamese people while it

combines with a thoughtful and caring customers services. Zen Café will be a

different aspect in comparison with other urbanised coffee shops with Starbuck-

similar-style, Zen Café focuses to young Vietnamese people who want to have

a place to enjoy the drink, read the books, and have social interaction with

friends and famlies. Zen Café will have the very first store located on District

Dong Da, Ha Noi – capital city of Vietnam. The menu of the coffee shop

includes various ranges of popular coffee drinks: Cappuccino, Coffee Latte,

Mocha and especially Vietnamese Coffee. Moreover, the coffee shop also

serves the tea and other non-caffeine drinks such as juices and smoothies. The

flavors of juices and smoothies will be decided based upon the market research

of the business owner. In order to complete the legal authority of the coffee

shop, a company will be opened and operated. The company name is “Zen and

Friends Coffee Shops Ltd. Co.”. The main operation model of this company is

partnership. The capital will be invested by a bunch of friends who have special

favourite regarding to bring a new enjoyment of coffee and beverage to

customers. “Zen Café” is the specific brand of the coffee shop of this company.

2.1. Zen Café Mission

Coffee has become the tradition of Vietnamse people in beverage

enjoyment. Zen Café was born in order to deliver a brand new coffee shop with

quiet and peaceful environment for anyone who wants to enjoy both the coffee

and natural sceneries, the coffee shop also helps to bring the people to sit

together and have real-life interaction and communication.

2.2. Zen Café Vision

The vision of Zen Café is to become one of greatest coffee shop for

Vietnamese people beside the interational brands. Therefore, Zen Café will

have to accomplish the below activities in order to achieve such vision:

Zen Café needs to have Great Service which is delivered by Great

Staffs.

Zen Café needs to have Excellent Products and provide them to

customers in a constant way.

Zen Café needs to have Zen Environment to deliver completely the

spirit of the business.

2.3 Products and Services

Zen Café focuses into the quality of drinks – especially the popular

coffee include of coffee latte, cappuccino, mocha and Vietnamese coffee.

Moreover, Zen Café also serves non-caffeine drinks such as smoothies and

juices.

Coffee and Tea: like other popular coffee shops, Zen Café identifies that

the business needs to provide the popular drinks first to attract large proportion

of customers. Zen Café also serves Vietnamese coffee – which is considered as

a specialty of Vietnam.

Smoothies and Juices: beside the drinks with caffeine like coffee and

tea, Zen Café also serves non-caffeine beverage include of smoothies and juices

in order to attract the female customers who do not get used with the coffee.

2.4 Growth Anticipation:

Zen Café is located in Dong Da District, Hanoi, Vietnam. According to

Vietnam General Statistics Office (2014), Hanoi is the second largest city in

Vietnam with the estimated population of 7,067,000. This figure can be

increased up to 10 millions people in 2030 since a lot of people from the

outside province will move down to Hanoi in order to pursue better job with

higher income. Moreover, Hanoi is one of Vietnam economic centrals (the

other is Ho Chi Minh City). Hanoi contributed US$ 21.48 billion into Vietnam

GDP in 2013 and this growth was 8.25%, GDP per capita in Hanoi was US$

3,000. Moreover, when locating in Dong Da District, the business owners

recognised the utmost potential in this area since there have been a lot of bars,

restaurants, and coffee shops. The business owners then decided the objectives

for the upcoming years of business would be:

In the first year, Zen Café will attract an average of 2,880 customers

per month.

The sales revenue will increase 7% in the second year.

Afte three years of operation, a sales revenue of about US$ 130,000

will be reached.

CHAPTER III – FEASIBILITY

3.1 Research Methodology

The research for this project has the objectives to resolve main questions

regarding to the feasibility in opening a coffee shop with differentiated service

style.

First of all, the market research helps the business owners to gather

necessary primary data in order to support planning the suitable business model

and concept including the service style, types of drinks, types of music and

main reasons why customers come to the coffee shop.

Additionally, the business owners also want to identify the basis of

customers’ behaviours in order to clarify the range of products that can be

suitable to be served the customers. The market research with primary data can

help the business owners to generate useful idea in order to build up necessary

strategy and tactics to be different with other competitors and create the

competitive advantages for the business.

Last but not least, whenever starting up a business, the business owners

always have to ask themselves several questions relating to the customers:

What do the young customers such as young officers or students like to be

served when they come to a coffee shop? Which flavours would fit each

segementation of customer for the smoothies and juices?

Choosing Sample

In order to collect the primary data, the business owners have to carry

out the online questionnaire in order to have the answers as soon as possible.

Most of the participants who took part into this survey has the age range from

18-years old to 56-years old. These ranges of age have the trend to get used

with Internet in Vietnam. Moreover, a lot of adults from 40-years old and above

likely to use Facebook in order to get connected with long lost friends and

relatives (Facebook, 2014). The young Vietnamese people, in another hand,

would have more leisure time in order to hang out and have drinks with friends

and nowadays, they are earning more than years before. This means, they are

willing to spend for other leisure habits such as having coffee or enjoying

higher quality of coffee shops.

Sampling

The random sampling in simple way is applied throughout the survey

process. According to Saunders (2009), the random sampling can help the

business owners to make sure that each participant would have the equal chance

for answering the questionnaire. The participants who carried out the survey

were mainly from the Internet with the spreading support of Facebook and

online survey system – Survey Monkey. For the ethical issues, all of

participants’ detail including of name, age and other details are kept safe and

unknown in order to help business owners ensuring the unbiased characteristics

when conducting and collecting the survey. The online questionnaire was

created with 10 questions with the total participants of 100. All of the answers

from the respondents were then coded and resolved by SPSS software in order

to gain the information from the data.

3.1.1. Gender

Male56%

Female44%

Graph 1. Gender rate of respondents

There were total 100 responses and 56% were male, 44% were female.

3.1.2. Group of Age

29%

58%

9%4%

17-2526-3536-4546-55

Graph 2. Age of Participants

Most of the responses were received from the age group of 26-35 with

the proportion of 58% while this rate in 17-25, 36-45 and 46-55 age groups

were 29%, 9% and 4%.

3.1.3. Group of Age and Reasons for Going out to a Coffee Shop

Delicious Beverage

Location

Serene Place for Relaxation

Quiet Place for Business

Quiet Place for Reading Book

Wifi

0 10 20 30 40 50 60 70 80 90

17-2526-3536-4546-55

Graph 3. The Group Age and Reasons for Going out to a Coffee Shop

Age Group

Delicious Beverage

Location Serene Place for

Relaxation

Quiet Place for Business

Quiet Place for Reading

Books

Wifi

17-25 20 21 20 22 10 2226-35 43 39 21 35 29 4536-45 6 5 0 8 8 746-55 3 3 0 3 4 4Table 1. Data on Group of Age in Proportion with Reasons for Going out

to a Coffee Shop

According to the above table and graph, the main reason for the

participants to choose a coffee shop would be Wifi and Delicious Beverage,

especially the rate for these two reasons are quite high in the age 17-25 and 26-

35. In the other hand, with the age groups of 36-45 and 46-55, the respondents

would like to come to the coffee shop for reading books and they would need

quiet place for business than other reasons.

3.1.4 The Relation Between the Age and Smoothies & Juices Flavour

A Chi-Square test was carried out in order to identify the correlation

between the age of customers with the different flavours of smoothies & juices.

The business owners has to do this test since the main ingredients for making

smoothies and juices such as apples, bananas, sapodilla, milk, condensed milk,

and so on were short-dated as well as being easy to corrupt and spoil.

Therefore, the survey contains the questions about the flavours of the fruits that

customers want to have in their smoothies and juices.

Since in the survey, there are 10 types of fruits. Therefore, in order to be

put on master file, the data will be coded as below:

Flavour Code Flavour Code

Apple 8.1 Guava 8.6

Mango 8.2 Avocado 8.7

Soursop 8.3 Sapodilla 8.8

Grapefruit 8.4 Pineapple 8.9

Papaya 8.5 Strawberry 8.10

The Chi-Square hypothesis includes:

1. Null Hypothesis H0 with = 0 – this means there will be no

relationship or correlation between the groups of age with the

favourite flavours.

2. Alternative Hypothesis H1 with ≠ 0 – this means there will exist

the relationship or correlation between the groups of age with the

favourite juices and smoothies flavours.

3. Significance level: α = 0.05

Observed Frequencies

Flavours of The Smoothies & JuicesAge 8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8 8.9 8.10 Total

17-25 9 16 11 9 11 10 13 14 15 10 118

26-35 22 23 23 24 28 28 28 21 28 23 248

36-45 1 2 4 5 7 4 3 4 3 6 39

46-55 1 3 1 2 2 3 3 2 2 2 21

Total 33 44 39 40 48 45 47 41 48 41 426

Expected Frequencies

Flavours of The Smoothies & Juices

Age 8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8 8.9 8.10 Total

17-25 9.1 12.2 10.8 11.1 13.3 12.5 13.0 11.4 13.3 11.4 118

26-35 19.2 25.6 22.7 23.3 27.9 26.2 27.4 23.9 27.9 23.9 248

36-45 3.0 4.0 3.6 3.7 4.4 4.1 4.3 3.8 4.4 3.8 39

46-55 1.6 2.2 1.9 2.0 2.4 2.2 2.3 2.0 2.4 2.0 21

Total 33 44 39 40 48 45 47 41 48 41 426

Table 2. The Frequencies of the Survey Respondents regarding to the

flavours of smoothies & juice

Data

Level of Significance 0.05Number of Rows 6Number of Columns 10Degrees of Freedom 45

Results

Critical Value 61.65623338Chi-Square Test Statistic 12.93473711p-Value 0.9999993

Do not reject the null hypothesis

Table 3. Chi-square Result

The Chi-Square result of this survey test is 12.934 and it is far less than

the critical value with the proportion of 61.65. The p-value of this test is 0.999,

this value is larger than the significance level α = 0.05. As a result, the business

owners cannot reject the null hypothesis of “there will be no relationship or

correlation between the age group and smoothies & juices flavours”. This

means the favourite flavour of each respondent would depend upon his/her

habit or interest, not concerning to the age. However, there still be a percentage

of 5% the alternative hypothesis is rejected in a wrong way.

3.1.4 The Relation of Age and Favourite of Coffee

With the main offered products are caffeine drinks including of Coffee

Latte, Cappuccino, Vietnamese Coffee and Tea, the business owners have to

take the survey in order to decide whether there is the relation between aimed

age groups with the caffeine products or not. From the survey, the very first

thing that business owners have to do is coding the degree of interest for these

caffeine products.

Code Level of Interest0 No1 Don’t Like2 Normal3 Like4 Love

Table 4. The Level of Interest and Code

Then the age group will be coded as well in order to make the statistic

software work:

Code Age Group1 17-252 26-353 36-454 46-55

Table 5. The Age Groups of Respondents

After the coding process of both age group and level of interest, the

average of level of interest in four products will be calculated. A simple linear

regression statistic table will be used with dependent variables are the level of

interest, independent variables are the groups of respondents’ age

Simple Linear Regression Statistic

Multiple R 0.0239R Square 0.0003

Adjusted R Square -0.0099

Standard Error 0.6383

Observations 100

Table 6. The Table of Simple Linear Regression Statistics

ANOVA

df SS MS F Significance F

Regression 1 0.0114 0.0114 0.0280 0.8675

Residual 98 39.9286 0.4074

Total 99 39.9400

Coefficients Standard Error

t Stat P-value Lower 95%

Upper 95%

Lower 95%

Upper 95%

Intercept 3.1313 0.1828 17.1299

3.13414E-31

2.7686 3.4941

2.7686 3.49411

Q2 0.0154 0.0921 0.1673 0.8675 -0.1674 0.1982

-0.1674 0.19816

Table 7. Anova Table

Regarding to the Simple Linear Regression Statistics and Anova Tables,

the slope (Q2) in Anova Table is 0.0154. This means the slope is very near with

the value 0, the statistical meaning of this would be there is no linear

relationship existed between the caffeine drinks with the groups of age of

participants. The R-Square is also 0.0003, very near with value of 0. The R-

Square is the coefficient of determination. Nearly-0 value explains that the age

is not dependent to the interest of caffeine products.

Confidence Interval Estimate

DataAverage Age Value 2Confidence Level 95%

Intermediate CalculationsSample Size 100Degrees of Freedom 98t Value 1.984467Age Bar, Sample Mean of Age 1.86Sum of Squared Differences from XBar 48.04Standard Error of the Estimate 0.638306h Statistic 0.010408Predicted Interest Level 3.162157

For Average LevelInterval Half Width 0.1292Confidence Interval Lower Limit 3.0329Confidence Interval Upper Limit 3.291384

For Individual Response LevelInterval Half Width 1.2733Prediction Interval Lower Limit 1.8889Prediction Interval Upper Limit 4.435429

Table 8. Table of Confidence Interval Estimates from the Regression

Statistics

The above table is the Confidence Interval Estimates. The Sample Mean

of Age is 1.86 which means most of the survey participants would range from

the age 17 – 35. In the table, the predicted interest level is 3.16 and the

confidence interval upper limit is 3.29, this means the level of interest toward

caffeine products of the participants is between 3.16 and 3.29. As a result, most

of young people from age 17 - 35 would like the caffeine product.

3.1.5 Age and Types of Service

A-la-carte: served at table.

Order at the front desk and self-taking

to the tables

Order at the front desk and staffs take

to the tables

Self-served with ma-chine

17-25 12 4 3 4

26-35 32 17 9 0

36-45 4 2 1 2

46-55 2 1 0 1

5

15

25

35

45

55

Graph 4. Age groups and Types of Service

The survey on the favourite types of service helps the business owner to

identify the most appropriate service style for the customers. Regarding to the

graph above, most of participants in four age groups love to have the a-la-carte

style: the staffs will come directly to their table, take order and then bring back

the items. A total of 50 respondents (50%) would like to be served in this style.

3.2. Feasibility

3.2.1 Product Feasibility

Coffee can be considered as a traditional beverage of Vietnam –

especially the image of Vietnamese people gather in front of a small coffee

shop and enjoy fine coffee on pavement or sidewalk. According to MARD

(2009), Vietnam has been the second largest coffee exporter on the world right

behind Brazil. Moreover, the coffee bean in Vietnam has been grown with high

volume and expanded to more than 40 provinces in Vietnam over the total

number of 64 provinces and this volume has not stopped yet. According to

FAO Stats (2014), the production of coffee in Vietnam has shown a significant

growth from 182,000 tonnes in 2008 to more than 300,000 tonnes in the year of

2013. Business Monitor (2014) stated that the sales of coffee and other hot

drinks in Vietnam has increased from US$ 938 million in 2012 to more than

US$ 1.2 billion in 2013. The research of Business Monitor also stated the

attractive and potential growth of coffee sales in Vietnam, the sales per capita

of coffee has increased from US$ 10 to US$ 12 in the period of between 2008

and 2011 – the years that sellers have to clarify and make good forecast since

the was the time of financial crisis. The coffee market in Vietnam, therefore, is

still a potentially promising one. As a result, a lot of both international and local

brands of Vietnam have been shaping the trend in enjoying the hot drinks of

Vietnamese people. According to Canada International Market Bureau (2012),

the report stated a proming forecast of sales value in coffee and tea shops was

US$ 3.1 billion and US$ 35 million in takeaway drink.

3.2.2. Market Feasibility

In order to make an analysis regarding to the market or industry

environment, a Porter’s Five Forces model is the most useful method and

favourite.

Porter’s Five Forces is a framework that helps the business owners to

analyse the level of competition and business strategy development (Johnson et

al., 2007). The Porter’s Five Forces include:

Intensity of competitive rivalry

Threat of new entrants

Threat of substitute products or services

Bargaining power of suppliers

Bargaining power of customers

Intensity of competitive rivalry

The intensity of competitive rivalry, according to Wheelan & Hunger

(2012), can be considred as the most noticeable force among the five

competitive forces. The strategy of a business will be successful if it can focus

in enhancing the competitive advantage in comparison with the strategies of

other competitors. In Vietnam, regarding to the statistic information of Canada

International Market Bureau (2012), the market is dominated by Vinacafe and

Trung Nguyen Café with the marketshare is 20% and 57% respectively.

Another competitor which has shown a significant growth is Highlands

Coffee – the brand was purchased 50% of shares by Jollibee Worldwide and

acquired Phở 24 brand last year. Highlands Coffee has increased the market

share from 7% in 2011 to 10% in 2013. Besides the global known drinks such

as cappuccino, latte or mocha, Highlands Coffee can be considered as Zen Café

main competitor since it also provides the customers with Vietnamese coffee

and tea.

According to Business Monitor (2014), the value of coffee drinks will

witness a tremendous growth in upcoming years with the rate of 13.05%. As a

result, Zen Café will have a big opportunity to join this dynamic market and

gain the marketshare from tough competitors.

Threats of New Entrants

Since Zen Café business owners are able to recognise the chance for

gaining marketshare from this industry, the others can as well. Moreover, the

new entrants can have ability to gain more capital with the strong financial

status to put on a start-up of a coffee shop. Therefore, new entrants can be

considered as an apparent threat for Zen Café. In this case, in order to identify

whether the threat from new competitors is obvious or not, David (2012)

suggested the analysis of below barriers:

The uniqueness of offered products: although tough competitors with

high marketshare like Highlands Coffee or Trung Nguyen Café surely put

millions of dollars in marketing activities and a lot of customers’ promotion so

as to create challenge for new entrants. Nevertheless, the uniqeness in offered

products is the main weakness of this industry if the existing companies want to

create the barrier to entry for other new entrants. It is not hard to find suppliers

who can provide tons of coffee and tea in Vietnam. As a result, it is quite easy

for new entrepreneurs to join this industry.

Customers’ switching costs for new products: the low products’

differentation helps customers do not have to spend much to switch to other

coffee shops as long as the new shops can meet their requirement.

Low products’ differentiation together with the low switching costs foir

customers mean the threat from new competitors is obvious.

Threat of substitute products or services

According to Wheelan & Hunger (2012), the substitues products or

services are defined as the products or services that are able to offer customers

the same or similar benefits. As a result, these substitutes can make decline to

particular products or services within the industry since the customers turn to

the alternatives.

For the reasons above, Zen Café owners must clarify whether the

substitutes can have the serious affect on the main beverage of coffee or not.

Therefore, in the survey (Appendices 2 - Question 7), Zen Café put the Tea and

Smoothies & Juices as the two main substitutes. The enjoyment of the

respondents is calculated from 0 4 with the detail of each category as:

0 No1 Don’t Like2 Normal3 Like4 Love

The details of the enjoyment from respondents are:

Coffee Latte

Cappuccino MochaVietnamese

Black CoffeeSmoothies & Juices

Tea

Average 3.19 3.18 3.07 3.19 1.77 2.8

Standard Deviation

0.97 0.87 1.1 1.14 1.54 1.3

The most significant substitute product would be Tea (2.8), since the tea

and coffee in Vietnam go together whenever Vietnamese people come to the

coffee shop. However, customers seem do not have the habit to come to a

coffee shop and order the smoothies or juices.

Bargaining Power of Suppliers

According to David (2012), the suppliers can have significant impact

toward the industry by simply increase or reduce the supplying price or quality

of the materials. The power of suppliers is very clear to see in the monopoly

industry such as petroleum or electricity in Vietnam. However, with the coffee

or tea, according to the number from FAO Stats (2014), Vietnam has improved

the harvested coffee to approximately 550,000 hectares in 2013 from 356,000

hectares in 2010. The coffee suppliers, therefore, are surplus enough for Zen

Café to buy and sell back to customers. The power of suppliers, as a result, is

not strong.

Bargaining Power of Customers

Actually, as mentioned above, the low switching cost for customers can

have tremendous affect toward any competitors in this industry. Therefore,

since Zen Café joins this industry which has a lot of similar and substitute

products, the customers actually has the strong power to switch to the others

once Zen Café cannot adapt their demanding. The threat of new entrants are

also low; hence, it is easy to understand if customers’ power in this industry is

really apparent.

3.2.3. PESTLE Framework

The PEST Framework can help the business owner of Zen Café to

analyse the main external environmental factors that can have significant effect

to the business. The factors include six parts: political, economic, social and

technological, legal and environment

Political

According to Business Monitor (2014), Vietnam has the stable and

constant political background since it is administered by only one party – the

Communism Party. Therefore, it is ideal for business owner to operate business

in Vietnam. Moreover, the improvement of infrastructure – especially the new

modern Express Way Long Thanh – Dau Giay with the sponsor from ADB

(Asian Development Bank) and Japan Bank for International Cooperation

( (AmCham Vietnam, 2015). This means the logistic aspect of Vietnam has

improved and the suppliers from Lam Dong and High lands of Vietnam – the

largest coffee production area – can implement the stock quickly since they are

now able to pass through Express Way. Nevertheless, according to VN Briefing

(2012), the government has high bureaucracy systems and regulations.

Therefore, it cause great challenge for business owner to operate the business

smoothly. The high corruption of Vietnam is also a barrier for resource

allocation – Vietnam was ranked 117/177 regarding to the corruption index

(Transparency International, 2014).

Economic

According to Business Monitor (2014), Vietnam has significant growing

economies with the average growth of GDP from 2001 to 2013 was 7%. This

means Vietnamese people have higher income and they are willing to spend

more for higher quality commodity and standard. As a result, Zen Café has big

chance to attract customers if the business owner can offer the quality services

and products that can adapt the high demanding of Vietnamese people.

Social

The demographic of Vietnam is a great opportunity for Zen Café.

Vietnam has the young population with the approximately 30% of population

has the age from 17 – 25 years old (Asian News Monitor, 2013). Moreover,

according to Institute of International Education (2014), Vietnam is on top of

the country which does have most international students currently studying

abroad. Those two factors mean young Vietnamese people have the trend to go

abroad and they will perceive the international culture. In which, the global

trend of beverage can be updated usually. As a result, once Zen Café can create

the trend for young customers, it is a great chance to be sucessful.

However, high unemployment rate of Vietnam (Business Monitor

International, 2014) can lead to the decrease income within young Vietnamese

people. Hence, they will require less living standard and such a business model

like Zen Café will be difficult to reach those customers.

Technological

Facebook, Twitter, Zing and other types of social network have created

a breakthrough channel for the new start-up business like Zen Café since the

customers can share and suggest their favourite place by just one click or post

through mobile device.

One of the strength once Zen Café can take advantage of Facebook is

that the customers do not need to search on Google to get the feedback. Hence,

if Zen Café can provide services and products which are good enough, the

sharing on Facebook can play a role as a filter and the information about Zen

Café will reach the potential customers sooner than Google.

Legal

The legal systems of Vietnam has changed a lot since the opening

period of 1986 – 1995 after years of living under subsidization of government.

Therefore, after opening with international investors, the economy has grown

together with a lot of updates regarding to the both international trade and local

commerce law of Vietnam. The entrepreneurs now are easy to be accessed with

the sources of various resources from the human capital to financial solutions.

The only problem of judiciary system of Vietnam is that the power is

centralised into the Communism Party. Therefore, there still exists a lot of

public monopoly sector which have the significant effect toward general trading

environment. Moreover, together with the high corruption rate, the centralised

regulations for public sectors have made the decline toward the total resources

for private business. Therefore, a lot of private business in Vietnam have gone

bankcruptcy recently.

Environment

Hanoi is in the North of Vietnam which has four seasons: spring,

summer, autumn and winter – especially in the summer, the weather will be

extremely hot and high humidity. Therefore, the revenue can increase

tremendously during that period. Otherwise, Zen Café offer both hot and cold

drinks. Therefore, in the other seasons, the customers still can come and enjoy

the drinks.

3.2.4. Organisational Feasibility

Human Resources & Board of Management

The start-up business would need an appropriate team with necessary

skills and ambition. The business will be operated with the partnership model

and required start-up capital of US$ 60,000. All of the partners are proved to

have necessary skills in catering, financial budget, marketing and business

administration.

1. CEO – Thuy Tran: graduated in Hanoi Open University, Bachelor of

Business Administration.

2. Jeff Nguyen: Jeff is British-Vietnamese. Jeff has vast experience in

catering and human resource training. Jeff will take care the training

and talent development of Zen Café to ensure the standard of the

service. Jeff also manages the marketing aspect of the brand.

3. Vinh Tran: Vinh will manage the finance and accounting of Zen

Café to balance the budget, expenses as well as revenue of the

coffee shop.

Resources Adequacy

The very first resources budget has been also prepared to ensure the

smooth operation of the business later:

1. Location: the location is the most important issue for management

team since the team does not have enough money in order to

purchase the whole building. The best solution would be rent a

building right on Dong Da District, Hanoi. The rental cost for first

year would be US$ 25,000 for the first year.

2. Human resouces: the staffs will be trained later by Jeff; therefore,

the human resources can be kept simple.

3. Equipment: the shelves, coffee machine and other equipment will be

purchased.

3.2.5. Financial Feasibility

Startup Financial Requirement

START UP FINANCIAL REQUIREMENT

Start up ExpensesLicense for Operation $250.00Building Rental $30,000.00Marketing Promotion $1,200.00Furniture & Equipment $10,000.00Other $1,000.00Total Start-up Expenses $42,450.00

Start up AssetsRequired Cash $3,000.00Inventory $4,500.00Other Assets $600.00Total Current Assets $8,100.00

Long-Term Assets $8,800.00Point-of-Sale System $2,300.00Computers $700.00Shelves for Tea & Coffee $1,200.00Coffee Machine $2,100.00Fridge $2,500.00

Total Assets $16,900.00Total Requirements $59,350.00

Table 9. Startup Financial Requirement for Zen Café

In order to run the business smoothly, the budget for start up finance

plays an essential role. Zen Café would require the total capital of US$ 59,350.

The partners would contribute into this project the total of US$ 60,000. The

start up, therefore, meets the planned capital.

Cash-flows Table

Cash Flow Summary

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Net cashflow for period

-$2,000.00 $24,855.00 $21,278.03 $20,439.23 $26,017.27 $81,740.56

Opening cash balance

$0.00 -$2,000.00 $22,855.00 $44,133.03 $64,572.26 $90,589.53

Closing cash balance

-$2,000.00 $22,855.00 $44,133.03 $64,572.26 $90,589.53 $172,330.09

Table 10. Zen Café’s Cash Flow tables

Year Cash Flows CCF (Cumulative Cash Flows0 ($62,000) ($62,000)1 $22,855.00 ($39,145)2 $44,133.033 $64,572.264 $90,589.535 $172,330.09

From the cashflow table, the payback period for this project would be 1

year and 323 days.

Break-Even Analysis

50000 100000 150000 200000 250000 300000 350000

-100000

-50000

0

50000

100000

150000

200000

ContributionFixed CostProfit

Graph 5. Break-Even Graph

The Break-even point can be met at Year 2 with the total sales revenue

of US$ 114,086.

Profitability & ROEI

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5Total Sales $148,536.00 $163,389.60 $179,728.56 $197,701.42 $217,471.56Cost of Sales $33,002.00 $36,302.20 $39,932.42 $43,925.66 $48,318.23

Gross Profit $115,534.00 $127,087.40 $139,796.14 $153,775.75 $169,153.33

Total Expenses / Overhead

$111,679.00 $101,409.37 $101,453.65 $101,756.86 $102,275.25

Profit After Tax $3,855 $18,295 $28,757 $39,014 $50,159

ROEI 6% 30% 48% 65% 84%

Table 11. Profitability & ROEI Table

Chapter IV – Business Model

4.1. Strategic Analysis – Business Idea

4.1.1. Business Value Chain

According to Johnson (2007), the value chain is the framework which

can support business owner in clarifying the essential activities that join in the

process of producing the products or delivering the services.

Figure 1. Value Chain Framework (Hitt et al., 2011)

4.1.1.1. Primary Activities

Hitt et al. (2011) classified the primary activities with the inbound

logistics which are related to the receiving, warehouse as well as distributing

the inputs for the production process of products or services.

Inbound Logistics

The main coffee supplier for Zen Café would be Me Trang Coffee Co.

Ltd. This company is located both in Nha Trang and Buon Me Thuot; therefore,

they can supply for Zen Café in both sea and land routes. Me Trang Coffee Co

Ltd has both the coffee powder and coffee bean; moreover, they have about 40

hectares of coffee plantation (Me Trang Coffee Co Ltd, 2015). This supplier

also has its own transportation; therefore, Zen Café can also save transportation

cost. The other ingredients for tea or fruit juices & smoothies can acquire in

nearby supermarkets.

Operation

Since only the coffee supplier – Me Trang Coffee Co Ltd – is quite far

from Hanoi and cannot implement the input immediately; therefore, the

business owner has to be really careful regarding to the transportation and

delivery. The store supervisor must follow up the every day sales forecast and

check the inventory in order to ensure the inventory implementation as well as

the quality whenever importing the material from the supplier.

Outbound Logistics

After the store supervisor checked through the materials, they will be

put within the shelves and other ingredients such as fruits and milk must be put

in the fridge to ensure the quality.

Sales & Marketing

All of the outputs and products will be sold directly in only one channel

– Zen Café Shop.

Service

Zen Café will serve customers a-la-carte style. The staffs will come

directly to the customers’ table and take order. Then, the staffs will do the

drinks and deliver customers’ order right on the table.

4.1.1.2. Secondary Activities

Firm Infrastructure

The firm will equip the Point-Of-Sales (POS) system for staffs to ensure

they will operate the order and cashier properly. The POS system also helps

management board to keep track and forecast the necessary sales value.

Human Resource Management

A member of management board will be responsible for the recruitment,

training and performance review of the employees. The employees will be

provided the Job Description in order to acknowledge their key job

responsibilities as well as the key performanc indicators (KPI). The KPI will be

used for the performance review in the mid and end of the year. The employees

will be trained to know how to use the shop’s facility as well as the sales and

catering skills in order to adapt customers’ demandings.

Technology Development

Main technology development will come from customers’ feedback in

order to change the technique in doing the drinks.

Procurement

Zen Café will need to work closely and plan the solutions regarding to

the logistics with the suppliers for the material. Telephone, email and POS will

be used in order to contact with suppliers to give detailed order in order to

avoid wasteful material or overstock

4.1.2. SWOT Framework

SWOT can be used to identify the Strengths, Weaknesses, Opportunities

and Threats of the firm.

Strengths

Zen Café offers a brand new coffee shop style with serene and

relaxed atmosphere, together with Spa and chill-out music in

comparison with other urbanised coffee shop.

Located in Dong Da District, one of the business central location in

Hanoi.

Zen Café will be the first coffee shop in Hanoi to apply professional

recruitment and performance review for employees.

Zen Café will have very competitive price in comparison with the

other competitors in the same position.

Weaknesses

No promotion program due to the lack of start up finance.

Not have reputation yet to attract customers who like the

international coffee brand.

Opportunity

Vietnam has a lot of trendy young adults who usually go abroad.

Therefore, they are easy to receive new business idea.

The rapid development of requirement for high quality food and

beverage among Vietnamese people.

Threats

The increasing of unemployment rate can reduce the income of

Vietnamese people which can lead to the demanding in high quality

food and beverage can be declined.

Threat from new entrants with copy-cat style or better business

model and financial status.

4.2. Sources of Competitive Advantage and Sustainability

According to Porter (1984) in Johnson (2007), there are three strategies

that can be used in order to help business owner to acquire the competitive

advantage:

Cost leadership

Differentation

Focus

Firstly, if the business owners want to identify which strategy would be

suitable, the positioning map must be made in order to compare with similar

competitors.

Figure 2. Zen Café Positioning Map

Through the positioning map, Zen Café would pursue the strategy of

offering the high quality products like Trung Nguyen & Highlands Coffee.

There are some competitive advantages that Zen Café can have:

Competitive price and products with excellent services. Zen Café

will have the serene atmosphere which is totally different with other

city coffee shop.

Well-trained staffs with professional attitude. The Menu will be

changed usually in order to ensure customers will not get bored with

the same menu.

Zen Café will mix between Vietnamese coffee and other

international drinks so that the customers can enjoy both types of

coffee as per their purpose.

Modern technology with professional equipment to ensure the

quality in each shop’s drink.

4.3 Development of Appropriate Business Model

Business owner of Zen Café will apply the Business Model Canvas

which is develped by Ostawalder (2010) with nine groups: customer segments,

value propositions, customer relationships, channels, stream of revenue, key

resources, key partnership, key activities and cost structure.

Figure 3. Business Model Canvas

Customer Segments: 02 main types of customers – High end and

trendy adults, students. They are receptive with new business idea and like

trying new thing.

Channels: Zen Café distributes the products and services through direct

channel – the coffee shop.

Value Propositions: the design of Zen Café will be peaceful and

relaxed style. The product price would be very competitive and high

performance of service.

Customer relationships: personal assistant with relationship marketing

would be a good choice since the management board want the staffs to deliver

service that can be over the customers’ requirement.

Revenue Stream: the main revenue of Zen Café is from the

consumption and usage of products and services from the asset. Therefore, the

revenue stream would be Asset Sale.

Key Resources: Human resource and Finance are the main resources

since the partners have to fund and raise the capital for this project. Moreover,

the professional human capital would be also a competitive advantage of Zen

Café.

Key Activities: Production - Zen Café create, and make the drinks for

customers.

Key Partnership: Zen Café wants to build up the buyer-supplier

relationships to assure the reliable supplies. Because the coffee is a specific

product with specific smell. Therefore, changing the supplier would not be a

very good idea.

Cost Structure: since Zen Café operates the production, the variable

cost would be the main cost for the shop.

CHAPTER V – THE BUSINESS PLAN

5.1 Business Plan Overview

The ambition of bringing a new concept of coffee shop, the very first

Zen Café will be set up in Dong Da District, Hanoi with the main objective is

providing the local people to have a place for relaxation, social interaction and

even business meeting. The management company of Zen Café is “Zen and

Friends Coffee Shops Ltd. Co.”, the company will be operated in the model of

partnership.

The main customers’ target of Zen Café coffee shop would be high-end

and trendy adults, and students – mostly of very young customers. When the

clients come to the coffee shop, they will have chance to enjoy the excellent

drinks and the peaceful atmosphere around the coffee shop. The design of the

coffee shop will be full of small trees such as bamboo trees, small daisy and

vintage furnitures. Zen Café aims to bring the best products with excellent

services together with unique customer’s loyalty promotion programs.

5.1.1. Objectives

Zen Café has the main objectives which focus into two main categories:

culture and offerings.

Culture

Zen Café identifies that only happy employees can bring happy

customers. Therefore, Zen Café recognises that the coffee shop has to build up

a good and clear business culture so as to create an obvious direction for

employees. The culture of Zen Café will focus into building five aspects:

Respect people

Commitment

Innovation

Teamwork

Integrity, Honesty and Trust

Offerings

Once Zen Café build up the essential culture, the staffs of Zen Café

must always bear in mind the “Offering” philosophy: Offering the customers

best services, offering the customers best products, offering the customers best

feeling then the customers will offer best loyal.

5.1.2. Mission

Zen Café helps the customers to find the inner peace as well as

relaxation after the wall of the coffee shop. Once the customers step in, Zen

Café will help them to forget the busy life outside.

5.1.3. Startup Financial Table

START UP FINANCIAL REQUIREMENT

Start up Fund $60,000.00Start up ExpensesLicense for Operation $250.00Building Rental $30,000.00Marketing Promotion $1,200.00Furniture & Equipment $10,000.00Other $1,000.00Total Start-up Expenses $42,450.00

Start up AssetsRequired Cash $3,000.00Inventory $4,500.00Other Assets $600.00Total Current Assets $8,100.00

Long-Term Assets $8,800.00Point-of-Sale System $2,300.00Computers $700.00Shelves for Tea & Coffee $1,200.00Coffee Machine $2,100.00Fridge $2,500.00

Total Assets $16,900.00Total Requirements $59,350.00

The start up fund will be US$ 60,000 and this amount of fund will be

raised by the business partners. This fund will be used to cover most of the

necessary equipment and facility of Zen Café. After 1 year and 323 days, this

fund will be break-even. The total requirements would be US$ 59,350 – as a

result, the funding of US$ 60,000 will be enough to cover the requirement. No

cost of capital occurs.

5.1.4. Sales Revenue Forecast

Revenue YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 Total

Coffee Latte $41,309 $45,440 $49,984 $54,982 $60,481 $252,196

Cappuccino $30,112 $33,123 $36,436 $40,079 $44,087 $183,837Mocha $25,699 $28,269 $31,096 $34,205 $37,626 $156,895Vietnamese Coffee

$14,582 $16,040 $17,644 $19,409 $21,350 $89,025

Smoothies & Juices

$15,609 $17,170 $18,887 $20,776 $22,853 $95,295

Tea $21,225 $23,348 $25,682 $28,250 $31,076 $129,581Total Sales Revenue

$148,536 $163,390 $179,729 $197,701 $217,472 $906,827

Cost of Good Sold

Year 1 Year 2 Year 3 Year 4 Year 5 Total

Coffee Latte $6,899 $7,589 $8,348 $9,183 $10,101 $42,119Cappuccino $7,210 $7,931 $8,724 $9,597 $10,556 $44,018Mocha $4,256 $4,682 $5,150 $5,665 $6,231 $25,983Vietnamese Coffee

$3,226 $3,549 $3,903 $4,294 $4,723 $19,695

Smoothies & Juices

$4,952 $5,447 $5,992 $6,591 $7,250 $30,232

Tea $3,940 $4,334 $4,767 $5,244 $5,769 $24,054Other ingredients

$2,519 $2,771 $3,048 $3,353 $3,688 $15,379

Cost of Good Sold

$33,002 $36,302 $39,932 $43,926 $48,318 $201,481

Gross Profit $115,534 $127,087 $139,796 $153,776 $169,153 $705,347Table 12. Sales Forecast Table

The estimated total sales revenue after five years would be US$

906,827. Coffee Latte will be the most consumed drinks of a total US$ 252,196.

5.1.5 Market Analysis Summary

At the moment, Vietnam is the second largest coffee exporting country

all over the world. Furthermore, the consumption of coffee in Vietnam has

increased more than 70% from 2009 to 2013 (Business Monitor, 2014). The

trend of coffee consumption also increased more than 17% since the appearance

of Starbuck Coffee in 2013. Moreover, with the globalisation, Vietnamese

people now have trend to perceive more new concepts of coffee and dining

shops such as Starbucks, Coffee Bean, Angel-in-Us. However, after the rapid

development era of such urbanised coffee shops, young Vietnamese adults now

need something which is more unique. Zen Café appears in order to adapt with

such demanding.

Market Size and Segmentation

Hanoi is the second largest city in Vietnam with the estimated

population of 7,067,000. This figure can be increased up to 10 millions people

in 2030. Additionally, Hanoi is one of Vietnam economic centrals (the other is

Ho Chi Minh City). Hanoi contributed US$ 21.48 billion into Vietnam GDP in

2013 and this growth was 8.25%, GDP per capita in Hanoi was US$ 3,000.

Dong Da District is one of busiest district in Hanoi with a lot of shops and

dining places. More than 425,316 people were calculated in 2012. Hanoi was

also one of city on the world with most young people from 16 – 55. Dong Da

District is near most of big universities in Hanoi: Hanoi Medical University,

Hanoi University of Science and Technology, and so on. The customers

segmentation would be:

High-end and trendy adults: these are people who has been working

and having good income to begin enjoying the life. They would like

to have higher quality of life with good food and nice beverage.

Students: the students of universities nearby are also the target of

Zen Café. Higher income in family means the students can be given

higher sum of money for weekly usage from their parents.

Therefore, a quiet place for reading books, studying and social

interaction would attract them.

5.2. Plan of Action

The board of management need to conduct a meeting in Hanoi in order

to discuss the idea of business. After recognising all opportunities, strengths as

well as necessary financial budget, the management will come to the decision

of investing in to this business. A memorandum of initial contribution with the

total amount of US$ 60,000 will be made in order to identify the dividends of

each partner. After that, the business plan will be carried out with the data and

details that concern to business vision, objectives, and concepts. In the business

plan, a list of analysis will be taken carefully:

SWOT Analysis for both internal and external factors

PESTEL Analysis for external macro environment

Feasibility Analysis to identify the notable points regarding to the

products, market, competitors.

The resources for building up the business include human capital,

finance, tangible and intangible resources.

Strategic critical success factors that can affect mostly to the

business operation.

The business model canvas.

The business plan will begin first with the real estate rental which would

be the main headquarter of the company. The building will have three floors,

the first and second floor would be used for the coffee shop, the third floor is

for warehouse and the office. The business owners do not need so many staffs

working on the office instead of accounting and finance. The business owners

then will implement in the building with furniture, stationery and sales

equipment.

The business owners then will get the quotation from a lot of suppliers

for coffee machine, coffee beans and powder, point-of-sales system, tea racks,

employees’ uniforms and other necessary equipment for a coffee shop.

The process in recruiting new employees will be conducted weeks later.

Firstly, Zen Café must put a notice board to publish the requirement for each of

position. The employees will send their document through email of the

company. The employees after recruitment phase will be put into training and

orientation session to ensure that they will get well and smooth with business

operation.

In order to catch up with the tasks and jobs of each member, the Gantt

Chart will be used:

Figure 4. Zen Café’s Gantt Chart

5.3 Critical Success & Failure Factors

Critical Success Factors:

The very first and most important success factor of Zen Café is

concerning to the resources. The start up required resources is generated by

partners’ contribution. Therefore, there would be no any cost of capital.

Moreover, with the self-contributing resources, the business owners also do not

need to pay monthly interest. As a result, once there is no any loss or lack of

cash, the business can be operated smoothly and the customers can receive

good services as well as products.

One of Porter’s Five Forces shows that the barrier to entry for new

entrant such as Zen Café is very low. Therefore, Zen Café needs to take

advantage of this chance to create different strategy and unique products as well

as services in order to attract customers and gain market share.

Zen Café will offer customers with very competitive price in

comparison with the premium differentiation in the products, services and

business concepts. Zen Café will have a lot of small trees and vintage

decoration which can help customers to have relaxed feeling and new

awareness about what a coffee shop can be.

The coffee shop locates in one of the busiest district in Hanoi with a lot

of students around the university. Since the other competitors such as Starbucks

or Gloria Jean’s have higher price; therefore, Zen Café hopes to gain market

share from students better than those competitors.

Zen Café does its best to manage the culture of employees in order to

bring best experience of service to customers.

Key Performance Indictors for Zen Café:

Sales revenue of each product

The net profit of Zen Café

The cost of overstock inventory

The customers’ loyalty and satisfaction

The accounting ratio of profit in doing business

Critical Failure Factors

There would be a lot of failure factors that can have significant effect to

the business of Zen Café. Those failure factors would be:

Market and industry: stepping into this business means Zen Café must

be ready to fight with very tough and experienced competitors such as Trung

Nguyen Coffee or Highlands Coffee. These big competitors know how to do

with the market, pushing marketing advertising and have high financial

resources in order to invest into new ideas. Moreover, the low barrier to entry

also attracts new entrants with innovative idea and business concept. The

unique business concept can attract a lot of young customers and students.

Economic and social: the risks from economic and social include the

decline in CPI (consumption price index) which can lead to the risk that

customers will spend less than before. Moreover, the increasing rate of

unemployment can lead to the low income in young people. This means they

cannot spend so much in higher coffee shop.

APPENDICES 1

ONLINE QUESTIONNAIRE

1. What is your gender?

Male Female

2. How old are you?

17-25 26-35 36-45

46-55 56-65 Over 65

3. What is your employed status?

Full Time Employment Self Employed

Part Time Employment Student

Other (please specify)

4. What is your current monthly household income?

£100-199 £200-299 £300-399

£400-499 £500-599 Over £600

5. Why do you choose a coffee shop?

a) Delicious Beverage

b) Location

c) Serene place for relax

d) Quiet place for business

e) Quite place for reading book

f) Wifi

Other (please specify)

6. Which type of music do you like?

a) New Age

b) Classical

c) Country & Folks

d) Jazz

Other (please specify)

7. How do you love these types of drinks?

No Don’t like Normal Like Love

Coffee Latte

Cappuccino

Mocha

Vietnamese

Black Coffee

Juice &

Smoothies

Tea

8. Flavour of juice and smoothies do you like to have? (you can choose

more than one option)

Apple Guava

Mango Avocado

Sour sop Sapodilla

Grapefruit Pineapple

Papaya Strawberry

9. What is service style do you like?

a) A-la-carte: served at table.

b) Order at the front desk and self-taking to the tables

c) Order at the front desk and staffs take to the tables

d) Self-served with machine

10. Do you like cake and pastry?

Yes No

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