intro to business coffee shop project

Hall

Preston Hall Business Plan

Sleepy Armadillo Coffee House 370 E. Main Street, Ashland, OR 97520 | 970.631.3911

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Sleepy Amradillo Coffee House“Better Brew, Better Taste”

The Sleepy Armadillo Coffee House strives to create a welcoming environment to both customer and employee. Our goal is to provide quality products and services to our local coffee drinking community while doing it

in a genuine friendly manor.

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BUSINESS PLAN OUTLINE

COVER PAGE 1

TABLE OF CONTENTS 2

INTRODUCTION 3

EXECUTIVE SUMMARY 4History 4Location 4Objective Preview 4

GENERAL COMPANY DESCRIPTION 5Mission Statement 5Company Goals and Objectives 5Business Philosophy 5Marketing Preview 5Industry Analysis 6Legal Form of Ownership 6

PRODUCTS AND SERVICES 7Products and Services Intro 7Competitive Edge 7Pricing 7

MARKETING PLAN 8Target Market 8Marketing Objectives 8Competition 9Distribution 9

MANAGEMENT PLAN 10Labor Force 10Management Philosophy 10

BUILDING SPECIFICATIONS11Licensing and Permits 11Store Layout 11Equipment 11

APPENDICES 12


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INTRODUCTION TO THE BUSINESS

Drinking Coffee on a daily basis is a way of life here in Ashland Oregon. This is precisely why I plan on opening a coffee shop in this small and quaint town where the people love each other as much as they love their coffee. I intend to sell freshly brewed coffee using these techniques; cold drip, French press, pour-over, and syphon. The products I will be offering include coffee, coffee beans, coffee cups, gift cards, baked goods, and coffee making equipment such as filters and French presses, etc. The Sleepy Armadillo Coffee House will provide coffee, food, entertainment, and a welcoming environment for the local community.


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EXECUTIVE SUMMARYCoffee isnt just a drink, it's a way of life!

HistoryWhether you drink coffee for the taste, the caffeine content, or just as a social activity, coffee brings people together. Coffee has been around for a while; its cultivation first took place in Abyssinia the earliest credible evidence of coffee drinking appears in the middle of the 15th century. Coffee is a major export commodity: it was the top agricultural export for twelve countries in 2004, the world's seventh-largest legal agricultural export by value in 2005, and the second most valuable commodity exported by developing countries. A coffeehouse or café is where I will be focusing in on. Coffee shop establishments serving prepared coffee or other hot beverages have existed for over five hundred years. This is a thriving market that continues to show growth and establishment thought the world.

LocationThe Sleepy Armadillo Coffee House will be located on Main Street in Ashland, Oregon. The storefront is appealing and inviting, and the street is full of bustling businesses.

There are ten coffee shops in a mile radius, all of which are doing well. My business would draw coffee drinkers and also people whom like a lounge like atmosphere. We will hire musicians to come and play acoustic sets during Wednesday and Friday nights to draw crowds. I am planning on opening the shop on June 3, 2017. I will start advertising in the area a few months before the shop opens. I plan of having fliers for the acoustic set nights that will draw in most of my customers. I will also set up an instagram page to post pictures and to gain followers interesting them in checking out my business.

Company Objectives

1. Make distinctly great tasting coffee, at a reasonable price

2. Build up the community by giving back by hosting free social events

3. Create a welcoming environment where people can talk and mingle

4. Treat my employees and customers with the upmost respect

5. Turn a profit from the business but not at the expense of quality or moral.

The coffee industry is flourishing globally and internationally. There is a large target market and variety of customers that enjoy coffee in the Ashland Oregon area.


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GENERAL COMPANY DESCRIPTION

My business will be in the restaurant industry, specifically a coffee shop. The Sleepy Armadillo will offer coffee and other premade baked goods customers.

Mission Statement: The Sleepy Armadillo Coffee House strives to create a welcoming environment to both customer and employee. Our goal is to provide quality products and services to our local coffee drinking community while doing it in a genuine friendly manor.

Company Goals and Objectives:My goal is for my business to located on 370 East Main St, Ashland, OR. This is a prime location for a coffee shop, because there are many businesses around that would enjoy a near by coffee shop, there is also a demand for unique coffee in the area which I would offer, and it is on main street meaning it would attract lots of business. Our goal is too be ahead of other competing coffee shops in the area of customer service and quality of product. My company objectives are to:

1. Make distinctly great tasting coffee, at a reasonable price

2. Build up the community by giving back by hosting free social events

3. Create a welcoming environment where people can talk and mingle

4. Treat my employees and customers with the upmost respect

5. Turn a profit from the business but not at the expense of quality or moral.

Business Philosophy: The philosophy of The Sleepy Armadillo can be summed up in three words: Product, Service and Atmosphere.

At The Sleepy Armadillo we aim to give our customers a unique experience with every sip of our coffee. Surrounded by a cozy relaxed hip atmosphere and served by our friendly staff, customers are made to feel at ease as if they were sitting at home in their living room.

Marketing Preview: We will mainly be marketing to coffee entrepreneurs, business people, and high school/college students. This will be our niche market where we focus most of our advertising. We will advertise on social media and via fliers and newspaper articles.


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Industry:This industry is a growing industry and we see changes in the industry’s future as far as its’ supply and demand. Potential issues or changes would be mostly long-term changes over the global scale, such as prices rising and falling due to natural disaster and or lack of supplies. My company will take advantage of these occurrences by being aware of when they will be taking place. It is important to know when the market is going to fluctuate or change so that you can be ahead of the game.

Legal Form of Ownership: The legal form of ownership is going to be a partnership so that we will have the combined capital to start up a business.


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PRODUCTS AND SERVICES

Products and Services

As a coffee shop the Sleepy Armadillo will provide coffee, baked goods, and gift cards to its customers. We want to provide them with an environment that is relaxing where they can come in and get things done, just hang out, or even just to socialize. In the sleepy armadillo we will provide free Wi-Fi Internet access. We want to do this because in today’s age it is almost required that you offer Internet access to those people and customers who want to use your business. We want to cater to people who come to get work done though we also are trying to have a fun and entertaining environment. Some of our services included, providing the community free social events that will be held every Friday and Wednesday night. There will be live acoustic sets where people can come just sit and enjoy some good music.

Competitive edge

There will be a few factors that will make our business stand out from the rest. For one as I previously stated, we would be host events on Wednesday and Friday nights. This will bring a huge draw to our business. We also will offer free Wi-Fi Internet access so that our costumers will feel like they are at home. We will have comfortable furniture to encourage a laid back atmosphere. A disadvantage that we will have to face is the fact that we are a new starting up business that needs to build customer relations. We will overcome this by advertising our business and having excellent customer satisfaction.

Pricing

For my companies pricing I will be using a market segment pricing strategy. The strategy works by hitting multiple markets by having pricing that each societal class would appreciate. Here is an example of this style of pricing.

MKT 1 MKT2 MKT3Premium $10 $15 $12.50Market $7.50 $10 $8Penetration $2.50 $5 $6


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MARKETING PLAN

Target market

My target market is going be young adults ranging from 16-35. There are many needs that the Sleepy Armadillo Coffee Shop will meet for their customer market. The coffee industry and the coffee shop business has boomed in recent years, especially with regards to specialty coffees. The market for specialty coffees has grown as consumers become more educated about espresso-based drinks and how they are made. According to a National Coffee Association Annual Drinking Trends Survey, specialty coffee consumption has risen from 9 percent in 2000 to 16 percent in 2004. Every day, more than half of the adult population drinks coffee, 108.9 million people. The United States accounts for 52 million of those coffee drinkers.While fast food chains are growing at a rate of 2 percent each year, coffee shop chains grow more than 10 percent annually. Even though 75 percent of the cups of coffee brewed daily are consumed at home, 66 percent of Americans buy their coffee outside of their homes. The Specialty Coffee Association of America reported at the end of 2003 that the retail coffee shop count in the country had reached 17,400 or 4% more than in 2002. The market size of coffee grew from $7.53 billion in 1999 to $8.96 billion in 2003.

Marketing Objectives

Increase SalesOne of the most important goals of marketing for-profit entities is driving business and increasing sales. Marketing needs a good return on investment

Improve Product AwarenessA marketing effort can be focused at reviving or invigorating interest in a product that has been on the market for a long time or about which people have longstanding attitudes. We will be offering this via our unique variety of ways of brewing our coffee.

Establish Yourself in the IndustryA new organization will find it extremely difficult to be heard above the noise in a crowded marketplace, with a public distracted by many stimuli

Brand ManagementMaintaining a place in the mind of the public takes work, and some marketing efforts are simply aimed to maintain a prominence in the public space. That is why my branding of the sleepy armadillo will be on coffee mugs and stickers available for the public to purchase.

CompetitionSleepy Armadillo Coffee House

370 E. Main Street, Ashland, OR 97520 | [email protected]

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There are ten coffee shops in a mile radius of where my shop will be located. All of them offer some sort of coffee service but most of them are not primarily coffee shops, but rather a side operation. I don't think this will be an issue for me to gain attention from the community because my shop will be so different from those others in the area.

Distribution We will be a self-distributing business meaning that we will only be selling locally at out opening. We will look into spreading the company if it flourishes and does well in our location. We will look into possibly selling merchandise online in the future.


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MANAGEMENT PLAN

Labor Force

How many employees will we have?

ManagementThe Sleepy Armadillo will be primarily run by myself along with my future business partner. I plan taking up most of the responsibilities that come from running a coffee shop for the first few years of our opening,

A full-time manager will be hired to oversee the daily operations at the Sleepy Armadillo. I will want this candidate to have had three years of managerial experience. This person's responsibilities will include managing the staff, ordering inventory, dealing with suppliers, developing a marketing strategy and perform other daily managerial duties.

Crew Members Three part time employees will be hired on to our barista team at the Sleepy Armadillo. Their responsibilities will consist of opening the shop along with closing. They will need training that we will provide. Candidates will need to have some experience in a coffee shop, preferably a year of experience.

Management Philosophy

Excellence in products and services to The Sleepy Armadillo Coffee Shops customers is the top priority for the management. We believe that high-quality production and service from staff is facilitated by a healthy workplace. A work environment that is flexible, encourages open communication, prizes fairness, recognizes good work performance and respects the differences and rights of individuals optimizes our staff's health and performance. Motivation to achieve excellence is maximized when staff is treated with decency, trust and respect.


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BUILDING SPECIFICATIONS

Oregon Licensing and Permits

• Tax identification number: All businesses in Oregon with employees must register for state and federal tax identification numbers.

• Insurance: Before opening your coffee shop, Oregon law requires you to purchase a worker's compensation insurance policy through a certified agent authorized to do business in the state.

• Food service license: In addition to a business license, you must apply for a food service license, which requires two basic steps. First, you must obtain a plan review from your local health department. Provide the health department with a copy of your proposed menu and a detailed floor plan of your coffee shop that illustrates the location of your electrical, plumbing and ventilation systems. Once your plan is approved, you may apply for a separate food service license

• Business license: Before you can begin doing business in the state of Oregon, you must obtain a business license. If you plan to operate as a limited liability company or corporation, you must register with the Secretary of State. If you're operating as a sole proprietorship or partnership, you are only required to file for an Assumed Business Name certificate. At the time of publication, the fee for filing an assumed name is $50. The fee to register a corporation or limited liability company is $100

Store Layout

Our coffee shop will be a classic café style layout. We will have a front counter that stretches along the front of the room. We will have a glass counter that displays our snacks and consumable goods for the day. We will have a small stage for the acoustic sets that we plan on having each Wednesday and Friday. We will have casual seating all through the shop, along with tables and bar seating.

Equipment List:

Espresso machineCoffee Brewers w/AirportsBean GrinderEspresso GrinderTea Brewer Upright FreezerUpright RefrigeratorUnder counter RefrigeratorPastry Case/Display case

Ice Cube holder and maker for Iced CoffeeBlenderStorage space: racks or shelvesSinks Wares (mugs, silverware, plates, and other serving utensils.)


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APPENDICES

Possible Building Layout/Design


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intro to business coffee shop project

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