Coffee Shop Business Plan Sample

Business Plan

Emily's Coffee Shop

29 Waapstan The Town, Quebec

Table of Contents

Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Description of Business and Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Business Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Business Description . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 The Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

The Community . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 The Project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Approach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Financing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Timing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Long Range Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Two Year Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Five Year Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Ten Year Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Socio-Economic Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Market Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Market Size . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Market Share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Location . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Target Market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Best Market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Secondary Market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Customers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Competition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Strengths of the Product . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Weakness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Promotion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Operations Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Description of Premises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Production Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Building Description . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Environmental Considerations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Risk Assessment of Operations Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Management Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Staffing Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Professional Services and Support . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Financial Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Sources of Financing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Cost Overruns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Cash from Ongoing Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Bridge Financing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Income Statement for 1997/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Income Statements 3 Year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Projected 1 Year Cash Flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Donut & Coffee Shop

Business Plan

Summary

Emily's Coffee Shop is a new business that proposes to open in The Town, Quebec. It will be owned by Emily Wapachee a member of the Cree First Nation of The Town.

Emily's Coffee Shop will be a new business that will sell coffee, donuts, soup and sandwiches similar to a Tim Horton's Franchise. Franchising was explored but at this time franchisers are looking for higher population basis for this industry.

The business will emphasize quality products at competitive prices and will promote the business through the usage of signs and flyers. The customer base will be mostly Cree. They will come from The Town and other communities during sports and cultural tournaments.

Emily Wapachee will work full time in the business and will employ an additional four full time positions. These persons will be aboriginal, and Emily and her husband Matthew Wapachee will perform all management functions including record keeping. Emily has worked in the fast food restaurant business and has also passed a forty week baking course. She presently does wedding cakes for the community.

Emily's Coffee Shop will be seeking funding for the amount of $212,000.000. This will be raised by applying for grants from INAC and loans from the The Town Economic Development, and the Cree Business Center.

The total revenues in year one will be $ 200,000.00 with a net profit of $ 17,000.00. The ratios are comparable to industry standards and the community has demonstrated that it can support a business of this type.

Description of Business and Industry

Emily's Coffee Shop will provide inexpensive, fast meals to office workers and members of the community. Donut shops are very popular with Cree people who like to get together in community type settings..

Customers will purchase from Emily's Coffee Shop because the business will provide speedy delivery, excellent customer service, and superior quality food.

Business Description

Emily's Coffee Shop was chosen as a name because it describes the featured product of the business and also identifies the nature of the business.

The business will be owned by Emily Wapachee who is an aboriginal members of the Cree First

Aboriginal Entrepreneur

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Donut & Coffee Shop

Business Plan

Nation of The Town. Emily is starting her first business and has never received funding from any aboriginal business program and the business has no close links to any existing business.

The mailing address of the business will be Emily's Coffee Shop, The Town, Quebec G0W 1C0. Phone (418) 923-3596.

The start up date of the business will be the fall of 2000.

The Industry

The Donut/Coffee Shop industry continues its growth in Canada. The franchised units such as Dunkin Donuts and Tim Hortons are expecting to add over 400 Donut shops in the next year in Canada.

The main challenges of the Industry come from easily prepared meals that can be purchased in the conventional food stores. The convenience is equal to going out and the taste is roughly equal to prepared food from restaurants.

Food Service continues to lead other industries in total sales such as housing, automaking, and electronics. The food industry continues to gain a greater share of all food dollars spent in America, moving up to 45 percent versus 55 percent for retail food which represents a gain of 20 share points since 1960. As these figures show, there is room for entry into the restaurant marketplace.

The eateries that succeed are the ones that offer midpriced meals and are perceived by the customer as offering price value entrees.

The key factors to success in this industry are quality, cleanliness and perceived cleanliness of the facility, speed of service, and superior customer service (friendliness).

The Community

The Town is the second largest community in the Region and it is readily accessible year round. Connected to the Qu?bec highway system via the The Town urban centre 120 km. away, The Town has access to the north by way of the Route connecting to the Highway through NTown. The airport at The Town provides direct connections to Montreal and Qu?bec City and the highway network provides easy access from the south.

Lake Mistassini and the surrounding lands are among the worlds most beautiful and pristine places. Its natural and cultural resources represent a vast array of attractions to tourists. The lands are mostly Reserves or Category I and II, meaning that the Cree exercise use and control over it. The Town is also one of the few Cree Communities with a well developed Tourism Strategic Plan.

Aboriginal Entrepreneur

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