cafe crunch
TRANSCRIPT
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Business Partners
Neha Joshi 22
Bhavya Nagda 32
Krunal Shah 50
Vani Shah 55
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Introduction The coffee industry of India is the sixth
largest producer of coffee in the world.
The Indian cafe market is expected to growat a CAGR of about 13-14% over the next
five years.
Ten years ago, coffee was fuddy, duddy and
tea was zingy. But now, its the other way
round.
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The coffee market in India has alsowitnessed a growth in the demand for out-
of-home consumption of coffee.
Coffee shop is the flourishing business in
todays era.
Coffee or Tea bar is a daily necessity for
local coffee addicts.
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Caf Crunch will capitalize inside thecampus of Shah & Anchor Kutchhi
Engineering College.
The culture will be to offer its customers
the best prepared variants of coffee/tea in
the college campus.
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MissionOur mission is to become a daily necessity forlocal coffee addicts and to offer our customers
the best prepared coffee in the campus at a
reasonable price.
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VisionWith the growing demand for coffeegeneration to build a core group of repeat
customers and to expand in various areas by
catering to different campuses.
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Objectives
Caf Crunchs objectives for the first year
of operations are:
Become selected as the "Best New Coffee Bar inthe area".
Turn in profits from the first year of operations.
Maintain a 50% gross margin.
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Keys to SuccessStore design
The best coffee preparation techniques
Marketing strategies
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Business Description The company will be operating on
partnership basis with four partners.
Caf Crunch will serve students, teachers,laboratory staff and visitors of the campus.
The quality and cleanliness will be the
distinctive feature of the venture.
Caf Crunch will strive to maintain a highgross profit margin and reasonable
operating expenses.
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Caf Crunch will operate a 64 square footcoffee bar near to the entrance of building.
The identified place can be obtained onrent basis for a period of 11 months
contract.
The rent to be paid for the provided space
would be INR 96000/- annually and can be
paid in 2 installments.
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Sourcing Caf Crunch would be purchasing its raw
materials from Mysore Concerns and from
METRO located at Bhandup.
Milk would be acquired from a local
vendor at daily basis.
The serving materials would be purchased
in bulk from Arihant Plastics, Masjid
Bandar.
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Strengths
Superior product quality
Wide product line with many options
available
Health benefits of coffee
Great customer relationships
Weaknesses
Limited financial resources
Limited catchment area
Opportunities
Increased demand for tea and coffee
Increased demand for healthy food and
fresh juices
Many colleges in town and surrounding
areas
Adding new variants of coffee and tea
Adding new food products like Maggi,
sandwich and pastries
Threats
Increase in the price of raw material
Rising inflation
Canteen food
Cold drink outlets
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Target Market The current target market of Caf Crunch
is
College students
Professors
The staff at the SAKEC campus
The goal of the caf is to increase the
amount of coffee drinks sold.
Cafe Crunch target market is the 16 to 60
year old female and male.
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Product Strategy Two major products
Coffee drinks
Tea
The caf offers 5 different flavors of coffee
and 2 different flavors of tea.
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Cappucino Coffee
A coffee combining double espresso with
steamed, frothy milk and decorated with a
sprinkle of chocolate powder.
Caf Mocha
Espresso with chocolate, topped with steamed
frothed milk and a sprinkling of chocolate.
Espresso
The original Italian-strong and dark small but
packs a punch. The Godfather of coffee.
Black Coffee
Ebony and Ivory served hot. A double shot of
espresso with hot water, served with milk onthe side.
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Cold Coffee
Savour rich and delightful coffee tones iced to
perfection
Lemon Tea
Refreshing black tea, with a wicked twist of
lemon. An instant refresher.
Tea
A strong cup. Tea with Indian spices for that special 'kick'. Served garma-garam.
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Pricing Strategy Penetration pricing for all our products
The prices of caf Crunch specialty drinks
differ based on the customers order.
Espresso Rs.15/- Cappuccino Coffee Rs.20/-
Black Coffee Rs. 10/- Caf Mocha Rs.22/-
Cold Coffee Rs. 20/- Lemon Tea Rs. 10/-
Masala Tea Rs.12/-
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Promotional Strategy Very little money will go into promotion or
advertising.
Word of mouth is an important way toadvertise in a college.
Drink of the Day
Social Media
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Projected Cost Sheet
Particulars Year 1 Year 2 Year 3
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Particulars Year 1 Year 2 Year 3
Raw Material
Milk 160000 192000 240000
Sugar 24000 26400 29000
Coffee 34000 35000 36000
Tea 14400 15800 17300
Lemon powder 550 550 600
Chocolate Sauce 1720 1892 2000
Prime Cost 234670 271642 324900
ADD: Administration Expenses
Salary 5000 5500 6000
Rent 96000 106000 118000
Maintenance cost 1000 1000 1000
Cost of production 102000 112500 125000
ADD: Selling & DistributionExpenses
Marketing Cost 1000 1000 1000
Cost of sales 1000 1000 1000
Total Cost 337670 385142 450900
Profit* 118330 190858 341100Sales 456000 576000 792000
SALES
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SALES
FORECASTING Year 1 Year 2 Year 3
Average price 19 20 22
Footfalls 100 120 150
Working Days 24 24 24
Months 10 10 10
Total Sales 456000 576000 792000
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BEP (Break Even Point) of our sales willcross in the first year itself.
After deducting the Set up cost ofRs.100000/- & other costs (utensils &
appliances) of Rs.17400/-
*Profit for the first year comes to Rs. 930/-.
P j d h f T l S l & P fi
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1 2 3
Total Cost 337670 385142 450900
Sales 456000 576000 792000
Profit 118330 190858 341100
0
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900000Projected growth of Total cost, Sales & Profit
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