introduction to business presents:. ~ summary of findings~ vision statement company objectives...
TRANSCRIPT
COFFEE SHOP FEASIBILITY STUDY
Introduction to Business Presents:
~ Summary of Findings~Vision StatementCompany ObjectivesProducts and ServicesMarket AnalysisMarketing StrategyCompetitive AdvantageOperations Management Team MembersFunding: Start-Up Costs, Pro-Forma Cash
projections
~Vision Statement~
Thunderstruck Java will provide a morning beverage service so students are settled, focused, and ready to learn.
If demand is as expected, TJ’s will generate enough cash to fund a more ambitious café environment in the future, providing a social and calm atmosphere to start the day
for the students, by the students
~Company Objectives~
Sell morning beverages Make Money Expand if possible
Morning coffee/lounge experienceStudent bonding
○ Students on time!○ Settled and ready for the day
Thunderstruck Java=Authentic LEARNINGReal business experience to reach curricular goals
~Products and Services~
Provide a morning experience:Beverages
Hot chocolateCoffeeTea (Chai?)Cappuccino
Possibly food in the future- Donuts or bagels- Cinnamon rolls (Foods class creations?)- Fruit and/or whole grain options
~The Market~
Middle School (12-14)Hot chocolate primarily
High School (14-18)Strong demand for
○ Cappuccino○ Hot Chocolate○ Coffee/Chai tea
~Survey results~
Student Commentsout of 304 surveys returned:
○ 152 positive comments○ 12 unfavorable comments
FrequencyFrom 1 to 5 times per weekReasonable assumptions over time
Graphs of beverage preferences
Coffee Top 2 Tea Top 2 HC Top 2 Cappuccino Top 2
112
66
190
217
Beverage Preference Survey Results
Coffee Top 219%
Tea Top 211%
HC Top 232%
Cappuccino Top 237%
Beverage Preferences by Percent
One x12%
Two x35%
Three x34%
Four x9%
Five x10%
Patronage per Week
~Marketing Strategy~
Announcements Print
PostersFlyers on Lockers
WebHigh School Home PageFacebook?
Promotional IdeasDiscounts: (good grades or grade improvement?)Buy a permanent cup for cheaper refills?
~Competitive Analysis~
Direct:The DepotNorm’s BPKafe BeansSubwaySandBur CornerScandy CenexScandy Bakery
Indirect:IGACrystal CaféHome
~Competitive Advantage~
More convenient Lower costs Higher profit margin Motivated sales staff Possible future: A comfortable socializing
place in the morning will attract ongoing student patronage
~Operations~ Purchasing: Webstaurant or Sysco
Supplies: Drink Mixes, Cups, CondimentsInventory control part of learning experience
StaffingQuality Customer ServiceVolunteer Business Students: various possible incentives
EquipmentKarma 456 Post-Mix Cappuccino Dispenser
○ Compact Size, 3 Flavor capability○ Pour-Over design, can convert to water hook-up○ Reasonable Price○ See Specifications
FacilitiesTicket Booth Area… for now!?
~Source of Equipment/Products
Pamasco, supplier of KARMA 456Webstaurant Store:
○ French Vanilla, good reviews○ Fat-free/Sugar-free option?○ Hot chocolate○ Chai tea○ Cups/lids
SYSCO food service: costs are unclear but potentially favorable
~Equipment Proposed~
Pour-over design Thunderbird! Easily converts to water line Grows with company Light enough to:
Sell at Football gameBasketball gamesTrack meets
~Management Team~
Student managers and student accountants Mrs. Scott Workers
Students from high school business classesCo-Op Students
Schedule: 3 Days/WeekPreparation/Clean Up 7:15 to 8:25Open Doors At 7:30Close Doors At 8:15
~Finance~ Start-Up costs:
Equipment:○ KARMA 456 $1,458.17○ Coffeemaker 0
Initial Supplies:○ Mixes: $ 234.00○ Coffee/tea/creamer 60.00○ Cups/lids 99.98○ Shipping 100.00
Total $1,952.15
~Finance~ Revised
Cash Flow Projection: (Conservative!)25 customers/day
○ $25.00 Gross Sales○ -12.25 Cost of Goods Sold (.49/cup*)○ $12.75 Net Profit/day
180 days of school, x $12.75
= $2,295 Profit 2011-12 (excludes events)
*Cost per cup: supplies from SyscoCup/lid: 13 cents + Mix: 33-36 cents = Total 46-49 cents
~Growth Plan~
Future products and services○ food, possibly bagels and or other morning food○ more drink options, different flavors
Expansion○ location○ size
Extend hours Consider paid positions, Co-Op employees Growth of Business Ed. Department
~Potential Barriers~
Wellness CommitteeFat-free, Sugar free options
SchedulingIncentives to student workers, managers
○ $ Credit for educational trips?○ Grade, extra credit points?○ Work experience for applications, scholarships
~Contingency Plan~ Sell to IS Club for permanent home at
Football FieldSysco: “no charge” machine
Either way, Board’s investment is covered in year one.
~Thank You!~
We appreciate your consideration!