Coffee Shop Business Plan Grand Brew Coffee Shop:
Topic Coffee shop
Coffee Shop Business Plan Grand Brew Coffee Shop
Start-up Cost First Month Rent: Rs 10000/- month modernize Fee: Rs 1, 00,000/- (Impression: calm comfortable soft mood light music, painting make guests feel at home) Furniture Fee: About Rs 60,000/- Sofa Bar counter Tables Chairs Equipment Fee: About Rs 1, 80,000/- Coffee machine Coffee-mill Air conditioning Stereo Cash registers Water treatment Supplies Fee: Coffee Snack Coffee cups Napkin Forks and Knives etc Rs 20000/- First Month Utensils Fee: Water and Electricity Fee Rs 8000/- Advertising Fee for first month: Rs 5000/-
TOTAL STARTUP COSTS TO OPEN:
TOTAL STARTUP COSTS TO OPEN Rs 4, 00,000/-
Operating Costs Rs 8000/- for utilities per month included fuel, water and electricity charges Rent of Rs 1,20,000/- each year Salary for Rs 37,700/- per month A supply cost of Rs 20000/- each month included coffee, snacks, cups, napkins.
Operating Costs Advertising costs of Rs 60,000/- per year Insurance of Rs 10,000/- per year an estimate of Rs 81,543/- per month for total operating costs
Physical Training Smile Manners Good posture for long time Balance Talking Skill Operation of the coffee machine
Skill Training Familiar with our product Coffee culture Proper reaction Inner decoration never judge a person by his appearance Cooperation & Leadership.
Waiter X 4 Cashier X 1 Coffee Maker X 2 In One Hour!
Employee Pay Waiter & Waitress & Casher & Coffee maker Rs 15/- per hour Manager Rs 7,500/- per month Accountant Rs 5,000/- per month Total monthly Pay: Rs 37,700/-
Price & Revenue:
Price & Revenue Coffee: Rs 50/- to 150/- (Depends on the flavor) Cake: Rs 60/- to 300/- ( Depends on the flavor ) Cookie: Rs 45/- to 250/- ( Depend on the flavor) Estimated Sell 125 cups coffee, 30 pieces of cakes and 30 pieces of cookies. Day Revenue = 75*125 + 150*30 + 125*30 = Rs 17,750/- Monthly Revenue = Rs 17,750 * 30 = Rs 5, 32,500/-
Government Taxes Sales tax 5% * Revenue = Rs 26,625/- City planning tax 1.5% * Revenue = Rs 7,988/- Total Monthly Tax Expense Rs 34613/-
Monthly Profit Monthly Cost: total operating cost Rs 81,543/- Monthly Profit: TR TC Taxes = Rs 5, 32,500 Rs 81,543 - Rs 34,613 = Rs 4,16,344/-
Funds borrowed Rs 4,00,000/- from State Bank of India 1 years Interest rate is Rs 12.50% Monthly payment Rs 37500/-
Pay for the loan:
Pay for the loan Monthly Payment Rs 37,500/- Monthly Profit Rs 4,16,344/- Monthly Remain Rs 4,16,344 - Rs37,500 = Rs 378844/-
In a perfectly efficient market, a person would be honest about their trigger price, and a business could sell their coffee to anyone whose trigger price is above 50rupees. A frugal person might walk up and pay 75 rupees, while a spendthrift coffee addict in a rush would pay 500 rupees for the same cup. Obviously, this wouldnt work in the real world, so stores have to find a way around this. Getting people to pay as close to their trigger price as possible is called price-targeting.
SWOT AnalysisStrengths:1. Demand: The demand for coffee shops and quality products at competitive prices is enormous in the sarbha nagar market .This is mainly because of the increasing number of customers in the market ,.
2. Customer base: The customer base which is the main element whilst determining the target market. This is not only from the side of the passengers who visit the market 3. Weaknesses:1. Volatile customer base: The major weakness is the volatile nature of the customer base in the market. The fact that even though the customer potential in the market , but ever changing due to the nature of the business in the market makes the customer potential as a critical weakness as much as it is argued as a strength
2. Seasonal business: Another important factor that needs to be considered is that the market high level of customers during the periods of holiday. This makes it clear that the business for the coffee shop is seasonal in nature.
Opportunities:1. Differentiation by Pricing: the demand for quality products at competitive pricing is an increasing demand at the sarbha nagar market . This demand can1 be harnessed by the coffee shop through providing value-added services and quality products at competitive prices. The financial analysis in the next section will provide a deeper insight on the pricing of the products.
2. Diverse Target market: The diversity in the market which is merely due to the diversity in sarbha nagar market an effective method of attracting a niche market or more than one segment of the market with customized products whilst providing a base line of product range to meet the overall demand of the customers.
Break-Even AnalysisA startup business owner must understand that 4 lakh of product sales will not cover 50,0000 in monthly overhead expenses. The cost of selling 50,0000 in retail goods could easily be 30,0000 at the wholesale price, so the 5,00000 in sales revenue only provides 20,0000 in gross profit. The breakeven point is reached when revenue equals all business costs.
To calculate your breakeven point, you will need to identify your fixed and variable costs. Fixed costs are expenses that do not vary with sales volume, such as rent and administrative salaries. These expenses must be paid regardless of sales, and are often referred to as overhead costs. Variable costs fluctuate directly with sales volume, such as purchasing inventory, shipping, and manufacturing a product. The formula for determining your breakeven point requires no more than simple arithmetic.