Jacks Caf Home for Hungry Hearts

For Friends, Lovers, Loners & the Lonely We feed your mind, body and soul! Rest, Relaxation, and Renewal
Sapere Aude Dare to be Wise! Jacks Cafs is a concept for a coffee shop very different from those now in Beijing. The emphasis will be on learning a variety of self-andother knowledge models for more enjoyable lives while learning to speak and comprehend meaningful English in dialogue prompted and guided by Jack. In effect, Jack will be offering a personal, stimulating, continuous English Corner as the main attraction for his Cafs. Here is how we do it:
1. Welcome to our home that we hope will be yours too! Here you will find 3 Rs: Rest, Relaxation, and Renewal. Were friendly, helpful, and dedicated to creating a uniquely rewarding experience for you.

2. Comfortable, sensuous Italian (Cinque Terre paradiseask Jack about it, hes been there) surroundings--soft seats, pastel colors, natural materials, plants and flowers, original works of art! 3. Down Home snacks and light meals including chef Jacks unique dishes and cool/hot drinkscross-cultural, deliciously different, and affordable! Try Jacks tuna cheese melt or bacon-egg-lettuce-tomato sandwiches and you will come back for them again and again! 4. Background sounds of soft melodic jazz and poetic ballads you probably havent heard before but will want to download and take home. (Yes, you can download free and with our compliments!)

5. Jacks books that you will never find anywhere else in China are yours free to read while having a drink or a meal. Go ahead, spill some of your drink on a page but try to make it a work of art, please!

6. Besides the language of the heart, Jacks native language is English. He knows how shy you can be with your ESL. We do not believe in artificial English Corners. You can practice your English naturally, Wall to Wall, off and on at all hours, as Jack loves to talk and listen (in English only, sorry!). 7. On demand, for those who want to advance their careers and education, private room soft skill courses presented by Jack complete with PowerPoint slides, participant workbooks, hands on exercises and much more! Ask for details and cost. 8. On demand, for those who want to build better relationships, private room one-onone or couple consultations available with Jack. In Australia, Jack was on TV as the Relationship Consultant for the show Women with Vision and has many years experience helping people (especially those in opposite sex relationships) to better understand themselves and others. Ask for details and cost. 9. Jacks Cafes makes it comfortable for you talk to perfect strangers and make new friends! Inside CAFES are several special Targeted Talk Zones (TTZs), each with 4 to 6 seats and a whiteboard with pens. Signs will identify TTZs along with the current topics that will be the center of discussion (topics will be changed to suit the demand). For example, signs such as: What Is the Meaning of Life in 5 Words or Less? or How Do Mens and Womens Needs Differ in Intimate Relationships? Any person can enter the TTZ but must be prepared to talk on the designated topic. Jack will go from one TTZ to another, doing his thing to promote new friendships and interesting conversations.

10. Where else but at Jacks Cafes?! play the famous series of the online game, You Don't Know Jack (YDKJ) where high culture and pop culture collide". The series' title is based on the phrase, "You don't know jack", which means "you don't know anything/everything". The games are known for their humor and challenge and presented as if they are a television game show. Players compete for a monetary score by answering trivia questions. 11. Free surprises throughout the day, every day! Mini-lectures by Jack on useful topics like Personality Type; movies shown in English and introduced by Jack; poems, drawings, photos, messages left on public billboard by customers; chef Jacks famous food dishes demonstratedall free to be shared for everyones fun!

Let the beauty we love, be what we do. Rumi, Sufi Poet

(Please go to the next pages for the basic Business Plan)

Basic Business Plan

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I. Estimate for Start-up and Operating Costs for One Year

1. Rental for commercial space in the Shandi area is around 200RMB per square meter per month, thus for a caf say 100 sq. m. = 20,000RMB per month x 12 months 240,000 RMB for one years rent 2. Decoration/Outfitting costs, including interior design work (paint, walls, etc.), tables and chairs, etc. are around 600RMB per sq.m, thus for 100 sq.m 60,000 RMB for total outfitting costs 3. Typical costs for good quality caf equipment, such as Expresso machines, microwave, refrigerators, etc. for light pre-prepared foods typical of cafes like Starbucks and Jacks Cafes 68,000 RMB for total equipment 4. Staff and Jacks salaries a. Jack at 8,000 RMB per month x 12 = 96,000 RMB b. Three staff wait tables, prepare food, clean up, etc. at 2,000 RMB each per month x 12 months = 72,000 RMB 168,000 RMB for manager and staff salaries for one year 5. Operating costs, including electricity, water, licensing fees, etc. is 3,000 RMB per month x 12 months plus licensing fees of 3,000 RMB = 39,000 RMB for operating costs for one year 6. Tax to be paid on sales Standard sales tax of 5.5% ; 2% for VAT, or 25% on net profit Estimate of taxes will be based on 5% on all sales and 25% on net yearly profit TOTAL COSTS (all of above) for One Year 575,000 RMB 447,000RMB Yearly Operating Costs 128,000RMB Capital Costs

II. Estimated drink and food costs

1. Single drink cost, averaged for one coffee, including milk, is 3RMB (this does not include any syrups or other special additives). Add extra 2RMB for special additives. Add 1RMB for take away containers and bags. Thus, averaging coffee drinks out (considering 70% of drinks and meals will be bought to be eaten on the premises), the cost per single coffee is 4RMB. 2. Food costs per item for average sandwich or dish 10 RMB (includes container cost, see below). 3. Container costs: paper napkins, packaging for meals, and paper cups and plastic lids for coffee, for one serving 1RMB. 4

III. Estimated Revenue

1. Drink sales (assuming coffee as average cost drink) Formula: price per coffee (x times) number of hours open (/ divided by) hours each person sits at a table (x times) number of total tables (x times) number of people sitting at each table = total drink revenue per day. 2. Food sales FormulaAn average price of 30 RMB per purchase (x times) number of purchases per hour (x times) hours open = total food revenue per day. Daily Drink Sales based on basic coffee/expresso including milk as drink Price per cup Open Hours Sitting hours Number of tables Number of people at each table Number of coffees sold in a day & numbers of customers served in a day Daily drink Gross Sales (RMB) Drink costs at 4RMB per drink Daily Drink Revenue Net Profit Average 25 12 2 10 2 120 3000 -480 2520 Average 6 2160 -720 1440 3960 23760 95040 1211760 575000 636760 Worst 18 12 3 8 1 32 576 171 405 Worst 2 720 -294 426 831 4986 19944 254286 575000 -196786 Best 35 12 1 12 3 432 10800 -1728 9072 Best 8 2880 -960 1920 10992 65952 263808 3363552 575000 2788552

Daily Food Sales based on buys per hour Daily Food Gross Sales Food costs at 10RMB per meal Daily Food Sales Revenue Net Profit Daily Total Sales Revenue Net Profit Weekly Revenue (6 days open per week) Monthly Revenue Yearly Revenueno holidays included - weekly x 51 weeks Yearly Costs Yearly Net Profit