the assignment - coffee shop

8/3/2019 The Assignment - Coffee Shop

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Executive Summary

Australia is regarded as one of the fast growing country. Having lots of untouched,

undiscovered resources, this mineral rich country is growing in population, economy and

opportunities.

One such commodity which is fastest growing in Australia is coffee. The per capitaconsumption of coffee has increased to 2.4kg. People who use to spend a meagre 50cents on a

cup of coffee have now started spending at least $4-$5 for one cup of coffee.

International Coffee chains and Australian Coffee chains are at logger head to enjoy the

biggest pie of market share but considering the consumption of Australia and projected the

growing population there is still room for a new international chain in venture in the coffee

business.

With its expertise in coffee chain business and more than 200 years of experience in coffee

industry, Coffee Day has planned to enter the Australian Coffee Market with an innovativeservice idea of Coffee Aroma. Along with the rich coffee beans of India, it will provide coffee

aromatherapy using coffee.

Coffee Day will enter the market under the name Mocha with an initial investment of

$300,000 funded by the company and partly as an overdraft from the bank. The first outlet

will be opened at Surfers Paradise, Gold Coast and a total sale of $627,249 with net

profit/sales of 18% is expected.

This business report will show 3 year plan of Mocha Cafe and Spa and the business is

expected to grow at 62% by the end of the 3rd

year.

The growth is predicted considering the growing consumption o coffee and the promotion of

Wellness Tourism by the Australian Government. A considerable spending on the marketing

promotions is planned in the first and the third year to strength the brand image in the market.

Marketing concentration will be mover towards the benefits of the innovative coffee

aromatherapy service.


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2.1 Mission

Mochas mission is to entice not only the taste buds of the caffeine consumers but also their

olfactory.

2.2 Company Background

2.2.a Company History and Ownership

Mocha is a 100% subsidiary of Amalgamated Bean Coffee Trading Company Ltd. an Indian

based company which owns the largest coffee chain in India by the name Cafe Coffee Day.

Very well known as Coffee Day, Amalgamated Bean Coffee Trading Company is venturing

into Australia under the name Mocha and it will based out of Gold Coast.

With Asias second largest coffee network, Cafe Coffee Day sources its coffee from 4249 h.a.

of coffee estates and about 11,000 small growers. Ranking 5 th in the world Cafe Coffee Day is

worth $0.16 billion.

2.2.b Company Business Divisions

Cafe Coffee Day Indias largest and worlds 5 th Coffee Chain. It has more than 700 outlets

across the country and is expanding in every nook and corner offering world class coffee

experience at an affordable price.

Coffee Day Square a premium coffee house

Coffee Day Xpress roadside coffee shops

Coffee Day Mobile caters to the wending machine business

Coffee Day Exports primarily into exporting coffee beans and coffee

2.2.c Start-up Summary

However considering the growth of the Australian coffee market, Coffee Day has set its target

to set up in Down Under but with an innovative business style.

Registered in 2009 Mocha is now all set to foray into the business on the Australian streets

competing with Worlds largest coffee chains and keeping up the Australian standards of theCaffeine Experience.

Unlike its other outlets and other competitor cafe houses, Mocha has planned to launch three

different types of shop outlets:

Mocha Cafe regular coffee shop serving coffee and sandwiches

Mocha Aroma a coffee shop with Aromatherapy Spa

Mocha Spa A big outlet with coffee shop, aromatherapy and body spa.

2.2.d Location


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Considering its a first of a kind even for Coffee Day and the finance at disposal for the

project, company will first concentrate on Mocha Aroma in Gold Coast. Considerable

research has suggested opening the first outlet Mocha Aroma which will house state of the art

coffee shop facing the waterfront and a swanky room attached for Aromatherapy at the

Surfers Paradise, Gold Coast.

There are no plans to open any additional outlets for at least first 2 years. The success of

Mocha Aroma will decide the fate of Mocha Spa in Australia.

3. Marketing

3.1 Market Research

Coffee is regarded as one of the most popular hot beverages. Available in almost any part of

the world, people look forward for that morning cup of coffee. Literature says that humans

consumption of coffee is almost 1/3rd of their free tap water consumption1.

A key source of economy for many countries, Coffee is not only one of the most important

commodity traded today but the production and consumption as seen considerable increase

over last year. According to International Coffee Organisation, about 119,894,000 bags of

coffee was produced by end of 20092.

Talking about consumption, Down Under is regarded as a growing consumer of coffee.

Australia comes under a category of developing countries for coffee consumption but looking

at recent trends looks like Australia will soon makes its way up on the charts standing with the

highest importing ad consuming countries of coffee.

Current Market Scenario and projected growth

A developing country, Australia, having population of about 2.2 billion3 is assumed to

consume 57000 tonnes of coffee by the end of this year.4The import rate is projected to grow

by 1.3% by end of 2010.

The per capita consumption of coffee in Australia has gone up to 2.4kg per person. Assuming

a healthy growth, Australians are believed to be spending $773.5 million on coffee

consumption5.

Australian Coffee Traders Association believe that the coffee market in Australia is verycompetitive but at the same time brand conscious and has lot of brand loyalty and is becoming

sophisticated6. The tea sales are trailing and the coffee consumption is moving towards

apogee.

3.2 Market Analysis

1 http://www.beverageanswers.com/coffee/why-do-people-drink-coffee.html2 http://www.ico.org/trade_statistics.asp?section=Statistics3 http://www.abs.gov.au/4 PDF: Food and Agriculture Organisation of UN5 http://news.smh.com.au/breaking-news-business/australia-a-nation-of-coffee-drinkers-20100305-pnbb.html6 http://www.acta.org.au/article.php?a=2


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Consumers have the buying power and hence demand the best in terms of quality and taste.

Australian market has become so sophisticated when it comes to choosing what coffee to

drink. According to the Australian Coffee Trading Association, there is growth in the sale of

pure coffee products instead of instant coffee products. Apparently their research found out

that price is not a deciding factor when it comes to choosing coffee 7. Nescafe is so far

enjoying the instant coffee market and retail coffee market.

As per the senior consumer data analyst from Datamonitor, Ms. Niraj Lalka, the sophistication

and importance of coffee in life of an Australian has been the key catalyst in the proliferation

of coffee shops8. The increase in the demand of pure coffee has opened up horizon for coffee

chains in Australia.

The top 10 coffee chains9 across Australia are:

Michels Patisseries has more than 1000 outlets across Australia

The Coffee Club has above 273 outlets

Jamaica Blue 64 outlets

Coffee Guru 23 outlets mainly in ACT, NSW and QLD

Wild Bean Cafe 109 outlets

McCafe McDonalds espresso coffee bar 617 outlets

Hudsons Coffee 64

Muffin Break 179 stores

Starbucks 22 stores

Gloria Jeans 460 outlets

Apart from these there are many other small coffee shops serving coffees, pastries and

savouries. Most of these coffee shops provide all the services like serving breakfasts, pastries,

sandwiches and hot food on the go. Their shop has the ambience for people to chat, interact,

and have small business meetings, some shops even offer Wi-Fi of course it is paid on hourly

basis.

All the coffee shops are out there attracting customers with innovative services and style of

coffee making. For example Jamaica Blue uses a very innovative business idea to attract

customers and increase brand loyalty. They have tied up with Caribbean Crew which entitles

the Jamaica Blue customers to collect points on cards for every dollar spent in any of the

7 http://www.acta.org.au/article.php?a=28 http://news.smh.com.au/breaking-news-business/australia-a-nation-of-coffee-drinkers-20100305-pnbb.html9http://www.choice.com.au/reviews-and-tests/food-and-health/food-and-drink/beverages/finding-the-best-coffee/page/coffee%20chains%20compared.aspx


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Jamaica Blue outlet across Australia and the points can be redeemed or attractive gifts and

even a cruise ticket on the dream Caribbean Cruise10.

In spite of coffee chains increasing day by day, research shows that there is still lot of scope to

enter the market with own franchise chain as the overall Australian Coffee market is trailing

behind Japan, Italy and some other European countries11.

Along with the coffee industry, Australia is also concentrating on health and wellness. The

Spa market too is growing at a very good pace. Private organisation like the Australian Spa

Association is actively promoting Wellness Tourism to grow the spa market in Australia.

Australia has beautiful location, good weather and about 4.7 million visitors every year

mostly coming from United Kingdom, New Zealand and Korea which are good coffee

drinking nations. However the highest number of tourists is from China a tea nation but trends

are changing there too.

Even though Mocha Cafe and Mocha Spa have a healthy competition in Australia there is lot

of scope to set up a business and acquire a market share with the niche innovative idea of

Aromatherapy. SWOT analysis will further help the company to strategise its marketing plan.

Strengths Weaknesses

Strong brand name in India

Recognised for quality andservice

Almost 200 years of experience in coffee industry

Leading retailer and beveragescompany

Expertise in coffee chainmarket for last 20 years

Known for sourcing qualitycoffee beans owning secondlargest coffee estate and coffee

providing network in Asia

New to the Australian Market

Never tried Spa businessbefore

First of a kind business venture Coffee Spa with Coffee Shop

Opportunities Threats

rapidly growing coffee chainmarket and spa marketrespectively

first movers advantage

Pilot project which can bereplicated in other countries tofollow

Strong local competitors

potential for economicdownturns

existence of competitors

increasing cost of materials

retaining suitable staff andreliable subcontractors

possible government regulation

geographically diverse market

10 http://www.jamaicablue.com.au/11 http://www.muzink.com/afrn?articleid=614


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The Business Idea

Caffeine consumption is increasing in Australia as more and more people are resorting to it asa stress buster. There is a strong belief that caffeine keeps them going on during the day andhelps them work efficiently. It is very prevalent in case of the desk jobs12. It is the stimulating

effect of caffeine which without a doubt is also a mild drug.

With the benefit of sipping coffee comes great risk of over dosage of caffeine. Medicalexperts advice to have 2-3 cups of coffee a day and that can help diseases like Alzheimers,type 2 diabetes and other neurodegenerative diseases13. However the making of the coffee

plays a very important role in deciding whether it is harmful or beneficial (e.g. Van Dusseldoret. Al)14. There are some compound found is coffee which are harmful to individuals at risk ofOsteoporosis (Barrett Connor et.al), pregnant women and epilepsy patients15.

Coffee over the years have become a beverage looked upon as an excuse to relax for amoment from the busy life and chat up with friends.

Mocha has planned to target caffeine addicted customers and give them the choice of eithersipping the coffee or inhaling it and yet enjoy the same freshness. To support its idea, anexperiment conducted in the lab on the rats which is reported in The Journal of Agricultureand Food Chemistry is presented. The lab report showed that the rats that were exposed to thearoma of coffee instantly produced antioxidants and chemicals in the brain to combat stressleading to sleeplessness. Inhaling coffee also reduces the risk caffeine inhibition of absorbingnutrients from stomach.

3.3 Marketing Plan

Target Market

Coffee is a universal drink available in various quality and quantity. Mocha plans to targetboth the daily coffee drinkers and the drinkers who are deprived of caffeine due to theirmedical condition not permitting to sip coffee.

Mocha Cafe will target the youth and working class individuals giving options of Wi-Fi, hotmeal etc. However Mocha Spas concentration will be very specific targeting to the workingclass to distress them and just relax with a serene music and coffee aroma. A setup which willhave a small session of 15 mins of aroma therapy will help to pour in office crowd even at the

lunch time or whenever they can step out of the office.

Health conscious individuals worried about the various compounds of coffee can now de-stress by inhaling coffee at Mocha Spa.

Targeting from the University students to the retired pensioners, Mocha cafe and Spa willhave a large variety of product and services to offer in price, size and maintaining the samequality standards.

12 http://www.beverageanswers.com/coffee/why-do-people-drink-coffee.html13 PDF: To_sip14 PDF: To_sip15 PDF: To_sip


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4Ps of Marketing

Companies have based their marketing plans around the 4Ps since decades.

The Coffee Day will base its marketing plan around Human Emotions revolving around the4Ps product, price, promotion and place.

Emotions play a very important role in consumers decision on selecting a product or serviceespecially when they are confused and made to make a choice from a wide variety16.As we talk about emotions, no research has been able to pin point exact emotions that acompany should look into for their products. As result several typologies and researchfindings are combined together to study and implement further.

3.3.1 Product and ServicePioneer in the Indian Coffee Cain, Mocha aims to serve one of the finest coffees totantalise the Australian palate. With its varied range of coffees like Lattes, flavouredCappuccinos, Mocha will serve various kinds of tea and savouries as well.

However unlike its competitors it will also provide a very unique service. Mocha plans toopen a Mocha Spa aimed at Coffee based Aroma Therapy. Consumers vary aboutconsumption of caffeine but still need to de-stress can opt for this new innovative serviceoffered exclusively by Mocha across Australia. Mocha Spa aims to offer various kind of

packages basic one being a 15 minute aromatherapy using coffee beans and oil. Customercan have an option of upgrading it to a foot massage with aromatherapy at an extra cost.

Along with the hot coffees and savouries, Mocha Spa will be a very niche and chickcoffee house serving the caffeine in a healthy way.

3.3.2 PriceConsidering the economic downturn in many countries, people are now spending moneywisely. In such condition it is important that the customers are taken into confidenceregrading the services offered that they are surely value for money. At the same time carehas to be taken that the customer willing to spend on service does not feel that the qualityis not up to the mark.

The pricing of the coffee and other products will be more or less in lines of itscompetitors. A regular Cappuccino will be priced at $3.00 for a takeaway and $4.25 for acup. The Spa will be valued depending on the minutes an individual want to have.

Smallest session being of about 15 mins offering Indian Roasted Coffee Aroma priced at$15. Customers will have option to upgrade the package with foot massage by payingextra $50 and have a 30 min session.

3.3.3 PlaceVenue plays a very important role for a new business venture. The selection of the placegoes hand in hand with the positioning of the service and target market as it has to do a lotwith the consumer emotions.

To entice the customers, Mocha Spa and Cafe will open its first outlet on Surfers Paradisein Gold Coast. Being one of the most visited tourist destination of Australia, Surfers

paradise gets international and domestic tourist in good numbers.17

On an average Gold

16 PDF: Understanding and using emotions


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Coast sees about 66,404,000 domestic visitors alone off all vivid age group and incomegroup.

3.3.4 PromotionsPromotions and advertising go hand in hand with the brand image. Advertising triggersthe consumers emotions and promotion triggers one of the 7 sins Greed.

In case of Mocha Spa the marketing promotions will be linked to do with the healthbenefits and tourism Wellness Tourism. Considering using organic coffee beans notonly in the coffee products but even for the aromatherapy will send in a message to thecustomers that Mocha Spa is talking some serious wellness of their consumers.

There will be regular ads in the local news papers, pamphlets at the tourists informationcentre and nearby pubs, there will be ad in the magazines relating to lifestyle and health.On the day of the opening special guests will be invited and to create some hype the entrywill be only by invites. This will be followed by 2 days of sampling of certain coffees andfree 10 mins aromatherapy on first come first basis.

Once Mocha Spa and Coffee is set into business there will be periodic promotions linkedwith the coffee and the aromatherapy. Overall Mocha plans to spend a good amount onmarketing and promotions in the first and the third year.

3.4 Evaluating Market Plan

There are various elements in the marketing plan and hence it is difficult to pinpoint any oneattribute towards the success or failure of the plan in the new market or new product18.

Since Mocha is involved in offering both the product and the service, it is good to evaluate theprocess as well. Going by the definition of Evaluation as per the American EvaluationAssociation19, Mocha will assess the policies, product, services and the organisation from timeto improve their effectiveness.

Product/Service EvaluationThis evaluation helps us determine whether to continue the product/service and the desiredimprovements in them. The measurable criteria would be:

Sales Performance in case of coffee products and spa services. This will be measured

looking at the sales figures on quarterly basis.

Customer Satisfaction Index in case of services at the Spa. Customer feedback, surveyswill be a good tool to measure this.

Customer Loyalty to evaluate the brand index in order to review the marketing spends andobjectives. Tools like Loyalty programme, point system on purchase of coffee productsredeemable on Spa etc will help to track Customer Loyalty.

Process Evaluation

17 http://businessgc.com.au/index.php?page=Tourism-Facts-and-Figures18 PDF: Evaluation of19 PDF: Mktg7_Eval


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Process evaluation helps to evaluate the advertising strategy and promotion campaigns.

Sales figures of a particular product will be recorded before an advertising campaign islaunched and the sales figure post the campaign will be recorded. If the increase in sale coversat least the advertising cost, the campaign can be considered successful cause it would havecreated some brand awareness in the market which can be cashed in on latter dates. Another

tool to measure the success is also by keeping track of the enquiries generated followed by theusage of our Spa services and or coffee sale.

The parameters for Evaluation of Marketing should be set right when the marketing plan is

being made and the parameters should be measurable. Careful selection of the parameters is of

utmost importance to get accurate results.

4. Operations

Once the marketing plan is set it is time to look into the operations of the business. This

would include the legalities, necessary licenses, employment, structure of the organisation,

equipments required for the setup and other formalities. This section will lay down the

elements and it will be followed by the section of Finance the most crucial of all considering

that the business needs to be started within the budget decided by the board.

4.1 Legal and Licensing Requirement

4.1.1 Australian Business Number and Tax File Number

There is a full list of Licensing required to start up a business depending on the type of

commodity or service the business is dealing with. However irrelevant of the type of

business first and foremost legality is to acquire an Australian Business Number (ABN)without which none of the license, insurance for the business etc is possible.

Acquired from the Australian taxation office, ABN application enables to procure ABN

and Tax File Number (TFN) which is mandatory for business Tax accounts like GST, Fuel

Tax Credit etc.

4.1.2 Business Name Registration and Company Registration

Since Coffee Day is a foreign company and wants to start a business under the name

Mocha it needs to register the name as per the Business Names Act 1962. A three yearregistration fee for Business name Registration would cost $248.20 and since its a foreign

company starting a business in Australia it will have to register as a Foreign Company

which will cost another $412 as per the Corporations Act 2001.

Apart from these two licenses which are mandatory for any foreign company starting

business in Australia there are other licenses like Food License, Safety License,

Entertainment license, Waste Disposal license etc. A list of the license required is attached

in the appendix.


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4.1.3 License for Spa

Since Mocha is involved in Spa as well, there is no mandate to have a special spa license

since it is an Aromatherapy and not Body massage. However to be on safer side Mocha

should consider hiring Licensed Aesthetician and Masseuse.

4.2 Management Details

Mocha will be a 100% subsidiary of Coffee Day. The company will setup its office in

Brisbane. Initially a team from Cafe Coffee Day the Indian arm of Coffee Day will work on

the project along with some of the experts Australian counterparts. The CEO of Cafe Coffee

Day will look into to the operations and some of the senior employees of Cafe Coffee Day

will be transferred there till the business is in momentum to set up a fully functional office.

4.3 Organisational Structure and Staffing

Headed by the CEO of Cafe Coffee Day, Mocha will have its own team of Marketing

Professional. The various departments would be Sales and Marketing, Finance, HR, Logistics

and Admin.

Staff for the Cafe will be locals and will be recruited. Initially it is planned that one cafe

manager will be recruited on company payroll and two executives will be on contract for

Cafe. For the Spa a fulltime licensed Aesthetician and a Masseuse will be recruited on

company payroll.

Logistics and Housekeeping will be outsourced. Tie-up with local vendors for on the go food,

supplies for making coffee etc will be established and looked after by the Admin manager

along with logistics head.

Sufficient training will be given to the staff. Staff will wear a work shirt with the business

logo to identify them and present a uniformed team approach.

4.3. a Personnel Plan20

Monday to Friday 2 employees on contract working from 7:00 am to 6:00 pm each @

$24000

Manager working from 9:00 am to 7:00 pm @ $42000

The Masseuse and Aesthetician each working from 9:00 am to 7:00 pm each @

$32000

Total Yearly Expense on Salary and Wages : $130,000

4.4 Professional Advisers

Being a foreign land for Coffee Day it was wise to render the services of Professional

Advisers. After speaking to various professional adviser firms, Coffee Day has finally decided

20 http://www.payscale.com


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to hire Moni Solutions Pty Ltd21. A firm based out of Brisbane provides one stop solution and

advices for finance, business planning and risk management under one roof.

4.5 Insurance and Security Issue

In spite of taking extra care in terms of safety and hazards, accidents dont come knocking o

the door. They just happen and so the business and the people have to be insured properly.Coffee Day will be insured well for any unfortunate accidents, burglary, all the machinery and

equipments used in cafe and spa, all the employees and even the customer belonging if got

stolen or damaged will be insured. Coffee Day will be taking this policy with a leading

national insurer Bruce Insurance22 who has expertise from last 20 years in Cafe Insurance.

4.6 Business Premises

Office will be in Brisbane and the first outlet will be of 236m2 of area on the main street of

Surfers Paradise Gold Coast. The outlet has 170m2 of ground floor where the coffee shop is

planned since it requires kitchen and store area and 66m2 on the floor above proposed forMocha Spa. The lease is for 2 years lock in period.

4.7 Equipment Required

There is a list of equipments required to purchase. Apart from the coffee which will be

imported from Coffee Days own coffee estate the machinery and equipment to be purchased

are:

Coffee maker: $2500 each with standard fittings and accessories

POS System: $1395 each with touch POS software

IT Equipments: $ 2000 (lan network, laptop, printer)

Furniture: $20000 for Cafe and $10000 for Spa

Counter and Kitchen Equipment: $ 3500

Signage: $ 3000

Flatware and Tableware: $2000

Aromas for Spa This will be imported from India in bulk purchase

4.8 Logistics

All the coffee imported to Australia will be stored in a warehouse at Manspo in Brisbane. The

warehouse is 198 sq.m. and Mocha will be paying $25000 per year as the lease. The lease is

for 2 years for now. A contract has been done with Toll-Express for logistic services.

21 http://www.monisolutions.com/pgtwo.html

22 http://www.bruce.com.au/BruceCafe/tabid/556/Default.aspx?

gclid=CI_i6Ias5qUCFYVypAodtSdn2A


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Monthly Sale

Yearly Sale

5.2.2 Cash Flow Forecast

Detailed cash flow is shown in the appendix. However from the chart it can be seen that

Mocha will maintain a healthy cash inflow into the business which will help to pay of thedebts on time and yet have enough cash for future operations.

At the end of the year it is projected to have at least $574,704 in cash for future operations.Detailed cash flow is shown in the appendix.


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5.2.3 Projected Profit and Loss Statement

As per the projected profit and loss statement in the first year Mocha is expected to have netsales of $627,249. Being the first year the operating expenses are calculated on the higherside. Taxes are calculated @ 19%. In the first year Mocha expects to have a Net Profit toSales Ratio as 18.6% and by the third year it should sore up to 30.56%. Mocha has planned animpressive promotional plan and will pump in more money in the third year considering itmight come up with more promotional items to push the brand.

Appendix shows the whole Proforma Profit and Loss Statement.

Since Mocha is a sister concern of a private limited company, the business plan shall not bearowners personal expenses and assets and liabilities. All the expenses and liabilities are takencare by the parent company on the consent of board of directors.


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6. Implementation Table

IMPLEMENTATION TABLE

Task Start Date End Date Department

Business/Marketing Plan01/01/20

1130/04/20

11 Marketing

Secure Funding01/02/20

1130/04/20

11 Marketing

Look for the store outlet locations26/01/20

1109/02/20

11 AdminSelect the professional advisers andinsurance company

26/01/2011

09/02/2011 Admin

Secure lease10/02/20

1130/04/20

11 Admin

Secure name licensing10/02/20

1130/04/20

11 Marketing

Marketing plan10/02/20

1130/04/20

11 Marketing

Structure company type15/02/20

1130/04/20

11 Marketing

Develop investor program15/02/20

1130/04/20

11 Marketing

Select and order furnishings01/05/20

1115/06/20

11 Admin

Site plans01/03/20

1130/04/20

11 Admin

Select construction contractor

15/03/20

11

15/04/20

11 Admin

Select and order lighting01/04/20

1130/05/20

11 Marketing

Select supplier for Spa Oils01/04/20

1130/05/20

11 Marketing

Create employee manual01/04/20

1130/05/20

11 HR

Join Chamber of Commerce01/04/20

1130/05/20

11 Admin

Select cash register system15/04/20

1130/05/20

11 Admin

Business license, etc.

15/04/20

11

30/05/20

11 Admin

Select paint contractor15/04/20

1130/05/20

11 Admin

Select and order flooring15/04/20

1130/05/20

11Marketing &Admin

Gift items, suppliers, order15/04/20

1115/05/20

11 Marketing

Select supplier for savouries15/04/20

1130/05/20

11 Admin

Select Logistics company15/04/20

1130/05/20

11 Admin

Select equipment supplier15/04/20

1115/05/20

11 AdminGraphics/brochure design 15/04/20 30/05/20 Marketing


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11 11

Select confection suppliers15/04/20

1130/05/20

11 Admin

Select juice suppliers15/04/20

1130/05/20

11 Admin

Credit card companies

30/04/20

11

15/06/20

11 Admin

Create training program30/04/20

1115/06/20

11 HR

Select music system01/05/20

1115/06/20

11 Admin

Install wireless Internet01/05/20

1115/06/20

11 Admin

Recruit Employees01/07/20

1115/09/20

11 HRRecruit licensed Masseuse andAesthetician

01/07/2011

15/09/2011 HR

Select Security Company

01/07/20

11

20/07/20

11 Admin

Design, print stationery15/07/20

1131/07/20

11 Admin

Pre-opening parties01/09/20

1115/09/20

11 Marketing

GRAND OPENING15/09/20

1130/09/20

11Admin &Marketing

APPENDIX

Appendix I


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APPENDIX II LICENSES REQUIRED

I0034 A - ABN Registration (Companies/Others)

S1180 A - Business Name Registration
http://www.sd.qld.gov.au/dsdweb/htdocs/slol/frm_smlic_licence_summary.cfm?ID=6433http://www.sd.qld.gov.au/dsdweb/htdocs/slol/frm_smlic_licence_summary.cfm?ID=9368http://www.sd.qld.gov.au/dsdweb/htdocs/slol/frm_smlic_licence_summary.cfm?ID=6433http://www.sd.qld.gov.au/dsdweb/htdocs/slol/frm_smlic_licence_summary.cfm?ID=9368


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C0403 A - Company Registration (Foreign)

L031-054 Advertising device-Gold Coast

C0133 B - Fringe Benefits Tax Registration

C0315 B - Superannuation Guarantee Requirements

S0162 B - Training (Apprenticeships & Trainees)

S0213 B - Workers Compensation

L075-054 Commercial vehicle-Gold Coast

C0728 D - Music Licence - Background Music (APRA)

C0729 D - Music Licence - Music on Hold (APRA)

C0395 D - Music Video Clips/Protected Sound Record

C0374 D - Trade Mark Registration

S0434 D - Vehicle Regn (Commercial Vehicles)

L063-054 Development permit (IDAS)-Gold Coast

S0052 Food Business Licence

L006-054 Food Business Licence-Gold Coast

S1125 Food Safety Processing Accreditation

S1160 Indigenous Fishing Permit

L021-054 Outdoor dining-Gold Coast

L051-054 Trade waste-Gold Coast

http://www.sd.qld.gov.au/dsdweb/htdocs/slol/frm_smlic_workspace.cfm?

CFID=2832773&CFTOKEN=43605779
http://www.sd.qld.gov.au/dsdweb/htdocs/slol/frm_smlic_licence_summary.cfm?ID=177http://www.sd.qld.gov.au/dsdweb/htdocs/slol/frm_smlic_licence_summary.cfm?ID=5817http://www.sd.qld.gov.au/dsdweb/htdocs/slol/frm_smlic_licence_summary.cfm?ID=143http://www.sd.qld.gov.au/dsdweb/htdocs/slol/frm_smlic_licence_summary.cfm?ID=168http://www.sd.qld.gov.au/dsdweb/htdocs/slol/frm_smlic_licence_summary.cfm?ID=517http://www.sd.qld.gov.au/dsdweb/htdocs/slol/frm_smlic_licence_summary.cfm?ID=454http://www.sd.qld.gov.au/dsdweb/htdocs/slol/frm_smlic_licence_summary.cfm?ID=5872http://www.sd.qld.gov.au/dsdweb/htdocs/slol/frm_smlic_licence_summary.cfm?ID=12227http://www.sd.qld.gov.au/dsdweb/htdocs/slol/frm_smlic_licence_summary.cfm?ID=12228http://www.sd.qld.gov.au/dsdweb/htdocs/slol/frm_smlic_licence_summary.cfm?ID=171http://www.sd.qld.gov.au/dsdweb/htdocs/slol/frm_smlic_licence_summary.cfm?ID=130http://www.sd.qld.gov.au/dsdweb/htdocs/slol/frm_smlic_licence_summary.cfm?ID=309http://www.sd.qld.gov.au/dsdweb/htdocs/slol/frm_smlic_licence_summary.cfm?ID=5877http://www.sd.qld.gov.au/dsdweb/htdocs/slol/frm_smlic_licence_summary.cfm?ID=473http://www.sd.qld.gov.au/dsdweb/htdocs/slol/frm_smlic_licence_summary.cfm?ID=5800http://www.sd.qld.gov.au/dsdweb/htdocs/slol/frm_smlic_licence_summary.cfm?ID=709http://www.sd.qld.gov.au/dsdweb/htdocs/slol/frm_smlic_licence_summary.cfm?ID=9011http://www.sd.qld.gov.au/dsdweb/htdocs/slol/frm_smlic_licence_summary.cfm?ID=5809http://www.sd.qld.gov.au/dsdweb/htdocs/slol/frm_smlic_licence_summary.cfm?ID=5882http://www.sd.qld.gov.au/dsdweb/htdocs/slol/frm_smlic_licence_summary.cfm?ID=177http://www.sd.qld.gov.au/dsdweb/htdocs/slol/frm_smlic_licence_summary.cfm?ID=5817http://www.sd.qld.gov.au/dsdweb/htdocs/slol/frm_smlic_licence_summary.cfm?ID=143http://www.sd.qld.gov.au/dsdweb/htdocs/slol/frm_smlic_licence_summary.cfm?ID=168http://www.sd.qld.gov.au/dsdweb/htdocs/slol/frm_smlic_licence_summary.cfm?ID=517http://www.sd.qld.gov.au/dsdweb/htdocs/slol/frm_smlic_licence_summary.cfm?ID=454http://www.sd.qld.gov.au/dsdweb/htdocs/slol/frm_smlic_licence_summary.cfm?ID=5872http://www.sd.qld.gov.au/dsdweb/htdocs/slol/frm_smlic_licence_summary.cfm?ID=12227http://www.sd.qld.gov.au/dsdweb/htdocs/slol/frm_smlic_licence_summary.cfm?ID=12228http://www.sd.qld.gov.au/dsdweb/htdocs/slol/frm_smlic_licence_summary.cfm?ID=171http://www.sd.qld.gov.au/dsdweb/htdocs/slol/frm_smlic_licence_summary.cfm?ID=130http://www.sd.qld.gov.au/dsdweb/htdocs/slol/frm_smlic_licence_summary.cfm?ID=309http://www.sd.qld.gov.au/dsdweb/htdocs/slol/frm_smlic_licence_summary.cfm?ID=5877http://www.sd.qld.gov.au/dsdweb/htdocs/slol/frm_smlic_licence_summary.cfm?ID=473http://www.sd.qld.gov.au/dsdweb/htdocs/slol/frm_smlic_licence_summary.cfm?ID=5800http://www.sd.qld.gov.au/dsdweb/htdocs/slol/frm_smlic_licence_summary.cfm?ID=709http://www.sd.qld.gov.au/dsdweb/htdocs/slol/frm_smlic_licence_summary.cfm?ID=9011http://www.sd.qld.gov.au/dsdweb/htdocs/slol/frm_smlic_licence_summary.cfm?ID=5809http://www.sd.qld.gov.au/dsdweb/htdocs/slol/frm_smlic_licence_summary.cfm?ID=5882


19/21

APPENDIX IV SALES MIX FORECAST

Monthly Sales in $ for Year 1

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

CoffeeDrinks 18000 19620 22563 25200 27216 28200 31020 33502 36852 40537 44591 49050

Food 7500 8175 9401 10500 11340 11750 12925 13959 15355 16890 18579 20437Spa 4500 4905 5641 6300 6804 7050 7755 8375 9213 10134 11148 12262

Total$300

00$327

00$376

05$420

00$453

60$470

00$517

00$558

36$614

20$675

62$743

18$817

49

Yearly Sales in$

Year 1 Year 2 Year 3CoffeeDrinks 376350 400000 520000

Food 156812 196015 254820

Spa 94087 136427 197819

Total$6272

49$7324

42$972638

.8


20/21

APPENDIX V CASH FLOW FORECAST

Year 1 Year 2 Year 3

Cash Received

Cash from Operations

Cash Sales $627,249 $732,442 $972,638

Subtotal Cash from Operations $627,249 $732,442 $972,638

Additional Cash Received

Sales Tax, VAT, HST/GST Received $0 $0 $0

New Current Borrowing $0 $0 $0

New Other Liabilities (interest-free) $0 $0 $0

New Long-term Liabilities $0 $0 $0Sales of Other Current Assets $0 $0 $0

Sales of Long-term Assets $0 $0 $0

New Investment Received $0 $0 $0

Subtotal Cash Received $627,249 $732,442 $972,638

Expenditures Year 1 Year 2 Year 3

Expenditures from Operations

Cash Spending $219,537 $219,733 $340,423

Bill Payments $250,900 $292,977 $389,055Subtotal Spent on Operations $470,437 $512,709 $729,479

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0

Principal Repayment of Current Borrowing $0 $0 $0

Other Liabilities Principal Repayment $0 $0 $0

Long-term Liabilities Principal Repayment $0 $0 $0

Purchase Other Current Assets $0 $0 $0

Purchase Long-term Assets $0 $0 $0

Dividends $15,000 $15,000 $15,000

Subtotal Cash Spent $485,437 $527,709 $744,479

Net Cash Flow $141,812 $204,733 $228,160

Cash Balance $141,812 $346,545 $574,704

APPENDIX VI PROJECTED PROFIT AND LOSS STATEMENT


21/21

Proforma Profit and Loss

Year 1 Year 2 Year 3

Sales $627,249 $732,442 $972,638

Direct Cost of Sales $94,087 $103,000 $110,000

Other Costs of Goods $15,000 $18,000 $22,000

Total Cost of Sales $109,087 $121,000 $132,000

Gross Margin $518,162 $611,442 $840,638

Gross Margin % 82.61% 83.48% 86.43%

Expenses

Payroll $130,000 $160,000 $230,000

Sales and Marketing $12,500 $8,000 $10,500

Depreciation $6,000 $4,000 $4,000

Rent $143,000 $143,000 $150,000

Utilities $9,200 $14,000 $16,000

Insurance $2,400 $2,400 $2,500

Legal/accounting $6,000 $6,000 $6,000

Payroll Taxes $7,150 $8,800 $12,650

Misc - maintenance, cleaning, training, fees $24,000 $25,000 $25,000

Total Operating Expenses $340,250 $371,200 $456,650

Profit Before Interest and Taxes $177,912 $240,242 $383,988

EBITDA $183,912 $244,242 $387,988

Interest Expense $0 $0 $0

Taxes Incurred $64,648 $70,528 $86,764

Net Profit $113,264 $169,714 $297,225

Net Profit/Sales 18.06% 23.17% 30.56%

the assignment - coffee shop

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