Coffee Shop Business PLan Essay
Marketing will play a vital role in the success of the Heights Cafe©. The Heights Cafe© must build a brand roundhead services It offers by heavily promoting Itself through local printјadvertising, radio, and station Eave event promotions. Marketing efforts are Just beginning by the time a potential customer enters the Heights Cafe© for the first time. A strong emphasis will be put on keeping customers and buildingјbrand loyalty through programs focused on staffing, experience, and customer satisfaction.
Pastry and finger foods, Live Music, Extended Hours, WIFE Table of Contents Situation Analysis Customer Analysis The Height’s Cafe©’s initial customer base will be generated from the local community ND will typically come from one of the following four subsection of the Haddam Heights market: 1 . Patrons who frequent other Station Eave businesses – Station Avenue Is a two-block section of downtown Haddam Heights that has numerous booming businesses that draw patrons to the area on a weekly basis.
Some of these businesses include Americas Karate School, Center Stage Dance Studio, Dan White Realtors and numerous retail stores, restaurants, hair salons and flower shops. In addition, Haddam Heights Is a thriving community that hosts neighborhood events wrought the year Including Farmer’s Markets every Sunday
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We expect customers will be Individuals who are Interested In purchasing a cup of coffee while frequenting another Station Eave. Location. These would include parents waiting to pick their child up from the Karate or Dance studio on a weekly basis, patrons prior to getting their hair cut 2. Business people who work in the offices in the surrounding areas – With many office building and businesses located in the Station Avenue vicinity, particularly along route 30, a quality coffee house strategically placed in the epicenter would work well by serving the many business people interested in purchasing a quality cup of coffee or latte.
In addition, a comfortable environment would welcome small business meeting, causal lunch meeting or lunch hour shoppers who want to grab cup of coffee before heading back to the office for the afternoon. 3. Seniors living in the surrounding area – Over 37% of the Haddam Heights community is over the age of 50 and with are 2 large retirement homes within 5 blocks of Station Eave, the Height’s Cafe would profit from developing a business that cater to the senior community.
Strategically positioning the Heights Cafe© as the main meeting place for civic groups and teaming up with the township to host existing community events such as water coloring, retirement planning and paper crafting 101 would help promote the objective. 4. Local High School and College students – Coffee shops with free Wi-If are obvious hangout locations for High School and College students. Appealing to this market by hosting live music and keeping late hours especially during school vacation periods would be key to drawing in this type of clientele.
By perusing these various subsections of the market, the Height’s Cafe© will become a cornerstone in the Haddam Heights community and will be the first stop when patron’s visits other station avenue locations. Company Analysis The Heights Cafe will be set-up as a limited liability corporation and will be located in the heart of downtown historic Haddam Heights, NJ. The owners of this new cafe© are Sean and Carol Hackney, both of which graduated from Haddam Heights High School ND which are lifetime residents.
Sean is currently a CPA who works at an audit firm in Center City, Philadelphia. Carol Hackney has her associates degree in culinary arts. She is currently a stay home mother who enjoys baking. Throughout high school and college, Carol was the manger of a Center City Cutbacks and remained in that position until deciding to leave the workforce to have children. The owners have two children, Ryan and Susan Hackney. Ryan is a freshman at Rowan University and lives at home.
Susan is a sophomore at Haddam Heights High School and plans to attend Rowan as well. The business start-up will be financed by a recent inheritance that Carol received from a relative who recently passed away. Carol’s uncle Charlie had strong ties to the Haddam Heights Community and longed for a local establishment where he could enjoy a well-made cup of coffee and also promoted all that Haddam Heights has to offer. In addition, a small loan will utilized to help cover additional expenses and costs of operations in the first few years of business.
During the initial year of operations, the staff will be minimal. Carol will manage the cafe© and both Susan and Ryan will work in the cafe©. Additional staff will be hired from within the Haddam Heights community as needed. Utilizing her prior experiences, Carol will be able to train additional employees on the various staff responsibilities as needed. Management will insist that all employees provide and promote the friendly, customer-centered environment that Uncle Charlie would have insisted upon.
The Heights Cafe© will have close ties to the Haddam Heights community. In addition to a current and historical photos of Haddam Heights. Photos of local sports teams, current and historical events, game schedules and community calendars will adorn he walls helping to reinforce the Heights Cafe© as being the “place to go to find out what is happening in Haddam Heights. ” Mission Statement: The Heights Cafe© provides Haddam Heights with the ability to enjoy a cup of coffee and quality pastries in a comfortable, committee-focused environment.
Vision Statement: Establish the Heights Cafe© as “the” place to buy and enjoy coffee in Haddam Heights. Competitive Analysis The Heights Cafe© will specialize in premium drinks including gourmet coffee beverages, espresso-based beverages, traditional coffee, gourmet tea, hot chocolate, fountain drinks, smoothies and milkshakes. In addition, the Heights Cafe© will offer light fare and desserts including pastries, croissant, bagels, breakfast sandwiches, Panic’s and a soup of the day.
The prices will be consistent with other area coffee shops. Over the course of the last 10 year, two other coffee shops have opened and closed along Station Eave. This was due to numerous factors that the Heights cafe© hopes to avoid. 1. Lack of Promotion and Working Hours- Many Haddam Heights Residents didn’t know the location existed and the coffee shops were closed on key event days such as during the Farmers Market and 4th of July parade and lacked extended weekend hours.
The Heights Cafe© will use the Station Avenue events as a way to promote itself by handing out free samples, soliciting social and community events at the location and sponsoring local athletic teams. 2. Uncomfortable and Unwelcoming atmosphere – Previous Station Avenue coffee locations had limited seating available and did not promote extended visits and new customer entrance. The Heights Cafe© will have a welcoming, comfortable atmosphere that invites its patrons to enjoy long and routine visits. 3.
Poor Quality Coffee and Food – Prior coffee shops that attempted to tap into the Station Avenue market struggled to establish ND maintain high quality products that the larger chain locations such as Cutbacks are able to achieve. When a consumer is paying $5 for a cup of coffee, they expect high quality. This is where management’s prior experience will be key. Having managed a Cutbacks in the past, Carol Hackney will know how to execute and maintain the high levels of quality that consumers will expect from their “favorite” coffee shop.
Currently there are numerous coffee shops and cafes in the downtown areas of various towns surrounding Haddam Heights. While direct in competition in terms of product offering, none are within walking distance of downtown Haddam Heights. Each location tends to serve their immediate local market and proves that a strong, well-placed coffee shop can be supported with the consumer traffic that is created within a bustling community and retail area. The key to success will be the welcoming, comfortable atmosphere and strong positioning within the Haddam Heights community.
Below are a listing of local competition: Local Competition Other Local Coffee Shops – Direct Competition Barrington Coffee House Cabby’s Coffee 104 Kings Why E Barrington, NJ 08007-1817 Hatfield, NJ 08033-2004 (856) 573-7800 (856) 429-3785 Crux Cafe Cutbacks Coffee Company 4 W Merchant SST 216 Kings WHY E Audubon, NJ 08106-1410 Hatfield, NJ 08033-1905 (856) 546-2789 (856) 429-8110 The Tree House Dunking’ Donuts 120 W Merchant SST 263 White Horse Pike N Audubon, NJ 08106-1424 Lowlands, NJ 08045-1131 (856) 547-3270 (856) 546-2424 Other Station Avenue Restaurants that Serve Coffee- Indirect Competition Station House Restaurant Kennel’s Seafood & Steak House 602 Station Eave 920 Kings Why Haddam Heights, NJ 08035-1907 Haddam Heights, NJ 08035-1218 (856) 547-5517 (856) 547-1225 Elements Cafe Antimony’s Creative Cuisine 517 station Eave 506 station Eave Haddam Heights, NJ 08035-1904 856) 589-6535 SWAT Analysts Strengths 1 .
Management’s Prior Experience – Carol Hackney has had extensive experience managing and executing the various staff responsibilities that are required to run a successful coffee shop. This will prove to be a strength that other local coffee shops will not have. 2. Knowledgeable and Friendly Staff – The Height’s Cafe will got to great lengths at to ensure their staff, whether family members of new hires, are passionate about both the products that are being sold and the Haddam Heights Community. Our staff will be both knowledgeable and eager to please 3. Downtown Haddam Heights Location – The downtown, central location of the Heights Cafe© will be strength as is will be conveniently located to other popular Haddam Heights locations.
It will also serve as a constant reminder to all Haddam Heights residents as Station Eave is a main road that most local residents utilize when driving in and out of town. 4. Comfortable, Community Oriented Ambiance – When customers walk into the Heights Cafe, they will immediately feel welcome and at home. Large comfortable couches and chairs will be strategically place to provide multiple “nooks” that allow customers to make a section of the cafe© all their own. Adjustable lighting will set the comfortable mood will adjust based on the time of day and will illuminate the community oriented photography used to decorate the interior. In addition, quality cappuccino machines and a glass case will display the refreshments. Weaknesses 1 .
Management’s First Experience Being Business Owners – While Carol Hackney has extensive coffee shop management experience and Sean is a success CPA, neither has managed their own business before. There are many obstacles that must be overcome when managing and utilizing their own resource as opposed to working for larger company with many more resources. 2. Initial Market Penetration – The Heights Cafe© will be a complete newcomer to the Station Avenue, so attracting initial customers may be a weakness as it will be difficult to predict how many customer will venture into the cafe©. This is where marketing and promotion will become necessary to acquiring business. 3. Lack of Parking -While that station Eave location is ideal when attracting customers, parking will be a challenge.
While there are a hand full of parking stops on the street, there is no off street parking and will serve to be articulacy difficult during events then the on-street parking is not to be utilized. Hopefully, the majority of the patrons will be within walking distance and travel by foot. 4. No room for Drive-thru – A Drive-thru is a popular additional to any restaurant and is becoming popular on many coffee locations such as Dunking Donuts ands Cutbacks. Because of the limited exterior space on Station Avenue and the difficult to remodel architecture, it would not the possible to add a drive-thru to the location in the short term. Opportunities 1. Develop Strong Bond with Community – The Heights Cafe© will have strong ties to he Haddam Heights community thru promotion, store design, and community participation.
If this strong bond becomes clear to local residents, it will serve as motivation to get patrons, who may currently frequent another coffee shop, to instead Offered to Local Community Organizations – Closely connected with item #1, a key market segment will be those already have an active role in the Haddam Heights Community thru social and civic participation. If the height Cafe© can tap into this resource and solicit meetings of such group by offering discounts, it will help spread dowdily and word of mouth advertising through the community. 3. Expansion of Menu to include Prepared Food – After initial success is proven with their current menu, menu expansion may be an area for additional opportunity.
While it will require utilization of additional resources, prepared foods such as crapes, grilled sandwiches and made to order salads may help tap into an additional market and boost customer base and additional resources. Threats 1 . Direct Competition with Chain Stores – There are a few locations, such as Dunking Donuts and Cutbacks that are located only a few miles from Station Avenue. They will serve as direct competition and it will be up to strong marketing and promotion in order to steer those potential Heights Cafe© customers to utilize their location instead. 2. Indirect Competition with Local Restaurants – In addition, there are also a few local restaurants that, while not solely coffee e, still serve coffee and may prove to be a competitor.
If a patron has coffee as a part of a regular meal at another Station Avenue restaurant, it is unlike that they will then frequent the Heights Cafe© as well. 3. Emerging local competitors – Currently, the Heights Cafe will enjoy an advantage of Ewing the only local cafe in Haddam Heights. However, additional competitors could be on the horizon and it may be necessary to be prepared for their entry into the market. Many programs will be designed to build customer loyalty, and it is our hope that our quality service and ambiance won’t be easily duplicated. Objectives Corporate Objectives: Create a unique experiences rooted in the Haddam Heights community. Continually provide superior coffee based drinks and specialty foods.
Maintain a staff of enthusiastic employees who create a friendly, welcoming environment. Financial Objectives: Increase revenue by 10% annually. Develop strong supply chain relationships that help to reduce cost of supplies. Strive to become profitable within 5 years of opening. Marketing Objectives: Develop a strong base of loyal customers that frequent the establishment often. Become the preeminent meeting place for social and civic organizations. Build the Heights Cafe brand to the point where it becomes a household name. Long Term Become integrated into the local community through local advertisements. Support local youth and high school activities with sponsorships, which will add to our long- term marketing goals.
This is a strong indicator that Haddam Heights resident have more disposable income then many other New Jersey residents, and will hopefully be more willing to spend additional dollars on higher end items such as premium-brewed coffees. Product Strategy The Tic Tact Taco Company functioning as an authentic taco stand will have a limited menu focused on tacos. The initial menu will feature our 5 signatures tacos with the taco of the week. As an authentic street taco stand all tacos will be served on whole corn tortillas. We will have a ground sirloin taco, a ocarinas taco (pork), a chicken taco, an Angus steak taco, and a fish taco (amah or tailpipe).
We will have 5 signatures sauces that can be added to our tacos: creamy chipolata, creamy cilantro, Chile De arbor, hibernator cilantro, and spicy or mild tomato avocado cilantro. We will also offer Pico De Gallo and guacamole with whole corn tortilla chips as starters. We will spicy queue Jalapeño. We will also have our taco of the month which will vary from month to month; our initial ideas are kobo beef and wild boar. We also intend to offer spillages as a desert option for the first few months to see how it works out. Basically our entire menu has been laid out above; we plan to keep everything about the taco stand simple, to include the menu.
We plan on offering bottled Mexican sodas to keep with the taco stand authenticity, as well as cane sugar sodas such as Jones or Babylon. We will also offer fresh homemade iced teas, probably two or three different types and flavors on a daily basis. Pricing Strategy The Tic Tact Taco Company will have a basic menu with simplified pricing. Our original taco meals will consist of three tacos and will range in price from 6. 95 to 1 1. 95. We will also offer small and large child meals which will consist of one and two tacos respectively. Child meal pricing will be consistent with 33% and 66% of the price of an original taco meal. This pricing strategy will be very unique compared to other establishments in the Pitman area.
Discounts and promotions will be offered n a consistent basis to returning customers in order to attract and retain a loyal local customer base. Promotion Strategy The Heights Cafe©’s promotion will be focused one the following: Local Printer Advertisements – Papers, Cleaner, H Press bulletins The Tic Tact Taco Company will use a Faceable page to keep customers informed of any menu changes or daily specials. A presence on Faceable will assist us in getting the word out about the taco stand within the local community and become the lead focus in our social media presence. Group Discounts – The Tic Tact Taco Company will have its own Tic Tact Toe scratch off tickets.
These tickets will be good for discounts on purchases and will be distributed on a promotional basis and to customers to use on a return visit. Athletic Team Sponsorship – The Tic Tact Taco Company will sponsor Pitman youth sports organizations in order to integrate the taco stand into the local community. This will also assist in word of mouth promotion which we know is the real key to promoting a new start up business. Free Samples – Menu advertisements and coupons will be placed in local Pitman and Glasswork area mailboxes. We will pay students a flat fee or stuffing a number of mailboxes. We will perform random checks of assigned areas to make sure the students we hire to perform this task are not Just disposing of the mailers.
Weapon – The Tic Tact Taco Company will have its own website with online ordering. The site will list the current menu and any current available special items. We will link the site to our Faceable page and our various sponsored organizations within the local community. The weapon will also give a background on the menu items and the suppliers and farms from which we obtain our all natural ingredients that go into every taco we produce. Distribution Strategy We expect the majority of our customers will be local Pitman residents. We expect the majority of our business to be take-out and delivery. We expect some of our take-out/ delivery business will be from Rowan University students in Glasswork. We will not stand itself.
We also plan to offer our tacos for special event ordering and eventually plan a mobile taco truck which could travel to local youth sporting events and other local area events and lead to further distribution of our tacos. Financial Assumptions and Projections The Tic Tact Taco Company will be financed by $50,000. 0 in equity from owners Nathan and Racquet Quinn and a $100,000. 00 small business loan through the Small Business Administration (SABA). Our business goal is to bring in around $55,000. 00 in pre-tax profit per year; this would basically replace Racquet’s current income from full- time employment as she would be leaving her current position to focus solely on operating the taco stand.