Professional Documents
Culture Documents
BUSSINESS SCHOOL
ASSIGNMENT: BUSINESS PLAN
NEWTOWN COFFEE
GROUP MEMBERS:
NAME
NUR ALIA SYAFIKAH BT ALIAS
NUR ZATIL HIDAYAH BT IBRAHIM
RAFIZI B ABDUL RAHMAN
SHAFRIZ B SALIM
MUHAMMAD FAIZ B ISMAIL
ID STUDENT
62288113959
62288113953
62288113751
62288113257
62288313233
CLASS GROUP: AC 30
concepts
and
fast
services.
Newtown
Coffee
is
the
alternative
to
fast
food/commercial/coffee shops and offers a much calmer, civilized gourmet coffee experience.
There are no televisions in the caf, but we put some designs from Malaysia culture to make
our coffee shop more attractive with the background music is subtle and work from local artists
will hang on the walls when you dine in or dine out. The caf is well appointed with
overstuffed leather chairs and sofas in a library like setting. The caf is reminiscent of times
gone by yet is cutting edge technologically with WIFI and state of the art espresso machines.
Newtown Coffee measures its financial success in terms of increased market share and
in earnings. With a total local market of $54 million, this is a tremendous opportunity! The
keys to success will be the ability to offer quality gourmet coffees, take advantage of its small
size, and reliance on an outstanding barista staff. In order to achieve these goals, the caf will
offer some the areas finest gourmet beans from local distributors. Because of its small size, the
caf can enjoy larger margins in the form of lower overhead. The cafe will hand select baristas
and offer salaries comparable to the chains. In turn the baristas will be trained to cross-sell, and
sell the higher margin products.
To start the business plan, we NewTown Coffee need to propose financial capital from
bank or any investor that interest to corporate and support our coffee shop to entering new
global business in Chicago. As our financial institution is less than what we needed, we need to
raise the capital to give satisfactory to our consumer in using our accommodation services.
1.1 INTRODUCTION
This business came about the thought of a business partnership under limited company between
the group members to run a coffee shop ventures. Because of this, NewTownSdn. Bhd. was set
up by us in January 2013. There are 5 partners involved to run the business which is Nur Alia
Syafikah Bt. Alias, NurZatilHidayahBt Ibrahim, Rafizi b. Abdul Rahman, Shafriz B. Salim and
Muhammad Faiz B. Ismail. We able to corporate with each other when we all become a friends
when we taking Bachelor of Accounting in Universiti Kuala Lumpur Business School. We have
same vision where are we wanted to build our own coffee shop and expand our business going
global business. Five of us are working in different departments to control our own position to
make our business run smoothly. All of us have extensive experience in the managing and
service industry, and have maintained excellent reputations in this same industry. In addition,
we are capable of handling the sales or management and finance or administration areas,
respectively. NewTown Coffee is a start-up organization that provides coffee shop. NewTown
Coffee opened in January 2013, and we are providing a low cost but exclusive service,
provided by a dedicated experience staff. Taman Melati, Setapak, Kuala Lumpur is our first
coffee shop located.Interiorexterior design givescomfortless towards the customers to dine in
or dine out atthere. Our coffee shopbecomes successful and a lot of customer from others
country like our design, our coffee especially, our service and our Malaysian culture that we
bring in our coffee shop. One of our customers where he is the successful entrepreneur in
Chicago wants to joint ventures with our business. This is the first step we take to make our
business become international business and we build our coffee shop in Chicago where we
know the place such a popular place and a lot of people at there like our coffee so much. Why
we choose Granville Avenue, Chicago for our business because there a lot of reasons which is
we know the people over there love the coffee so much and we attracted them by our unique
design coffee shop and the tastes of the coffee itself.
1.2 BUSINESS OBJECTIVES
The primary objectives of the business plan for Newtown Coffee are below:
1.3MISSION STATEMENT
To inspire and nurture the human spirit one person, one cup and one neighbourhood at one
time.
1.4 VISION STATEMENT
To be established and trusted as the perfect coffee business partner.
1.5 GUIDING PRINCIPLES
The Newtown Coffee is committed to values such as excellence, passion, quality, integrity and
leadership which allow them to navigate challenges and provide for future opportunities. These
core beliefs start with their commitment to their products and their employees. The Newtown
Coffee rewards excellence and cherishes loyalty. The caf will work with its employees to
build strong businesses and a secure future.
Managing Director
SHAFRIZ B SALIM
NUR ALIA
SYAFIKAH
ALIAS
RAFIZI B
ABDUL
RAHMAN
NUR ZATIL
HIDAYAH
IBRAHIM
MUHAMMAD
FAIZ BIN
ISMAIL
HR MANAGER
MARKETING
MANAGER
FINANCIAL
MANAGER
OPERATIONAL
MANAGER
School and
Master in Management (marketing) at Universiti Teknologi Mara .
Working Experience:
Working Experience:
HR Officer at Shangri La Hotel; and
HR Manager at Ikano Pte. Ltd. Damansara.
Assistant finance manager at Texchem Restaurant System Sdn Bhd, Subang Jaya,
Selangor
a book. The Caf will fill the great void providing originality in a sea of facsimile, corporate
coffee shops. The cafs baristas will be extremely knowledgeable and offer assistance in any
coffee purchase while simultaneously providing customers with outstanding service. It should
be equally a place to relax as a place to plan a revolution. A coffee house should be a showcase
for artists, a forum for ideas, and a catalyst for conversation. Honestly, we are confident that
our Newtown Coffee will truly be a coffee house when you have more to say about what goes
on here than we do.
2.2 SWOT Analysis
The SWOT analysis examines the cafs strengths, weaknesses, opportunities and threats of an
organization. Specifically, SWOT is a basic, straightforward model that assesses what an
organization can and cannot do as well as its potential opportunities and threats. The method of
SWOT analysis is to take the information from an environmental analysis and separate it into
internal (strengths and weaknesses) and external issues (opportunities and threats). Once this is
completed, SWOT analysis determines what may assist the Newtown Coffee in accomplishing
its objectives, and what obstacles must be overcome or minimized to achieve desired results.
2.2.1 Strengths
Based on its smaller size, the fact that it is not a franchise, the Newtown Coffee is a unique
coffee shop concept unlike any other in the West Granville Avenue.
The owner has first-hand experience, in operating and starting new restaurants,
and will publicize this promotion via radio advertising, as well as countertop displays and
posters in the shopping plaza.
In addition, during its first year of operations the coffee shop will pass out a limited number
of coupons for a free cup of coffee to prospective customers visiting the shopping centre.
2.4 Unique Selling Proposition (USP)
The Newtown Coffee truly stands out from a crowded sea of coffee chains and franchises.
What sets them apart from the competition is primarily its smaller crozier size combined with
premium coffees served by knowledgeable baristas providing so much energy and enthusiasm
for the products they sell.
2.5 Competitive Edge
The Newtown Coffee competitive edge, its size, is also its greatest attribute. Because they are
small there is no red tape, and they can easily adjust business hours to say accommodate an
afterhours book reading session whereas the corporate chains do not provide such an
accommodation. The Newtown Coffee will truly cater to its patrons needs.
Year 1
$ 494,800
Year 2
$
519,900
$
95,800
Product / Service 2
90,300
Product / Service 3
90,300
Total Income
675,400
95,800
Product / Service 2
$
$
74,294
26,932
$
$
Product / Service 3
18,060
119,286
Gross Margin
556,114
572,500
$
106,000
$
106,000
$
711,500
Cost of Sales
Product
Year 3
784,500
72,968
28,572
80,351
$
19,160
31,614
$
21,200
$
120,700
$
133,165
$
590,800
651,335
Amount
$
$
$
$
$
$
$
$
$
$
$
$
Start-Up Assets
Real Estate
Buildings
Leasehold Improvements
Equipment
Furniture and Fixtures
Vehicles
Other Fixed Assets
$
$
$
$
$
$
$
4,800
2,075
2,000
4,000
8,000
8,000
28,875
71,725
38,275
14,000
-
124,000
$
152,875
Year 1
$
675,400
$
0
$
675,400
Year 2
$
711,500
$
0
$
711,500
Year 3
$
784,500
784,500
Expenses
Total Salaries and Wages
Advertising
8,800
9,600
9,600
Insurance
3,600
3,600
3,600
816
816
816
Office Expenses
24,900
24,900
Business Expenses
Rent on Equipment
24,900
$
Repairs
2,200
2,400
2,400
Suppliers
9,548
10,416
10,416
Telephone
4,800
4,800
4,800
Travel
Utilities
14,400
14,400
14,400
$
Amortized Start-Up
Expenses
Depreciation
18,514
18,514
$
18,514
$
89,446
87,578
$
89,446
$
0
Miscellaneous Expenses
587,822
$
0
$
622,054
$
0
$
587,822
622,054
695,054
$
$
0
695,054
Year 1
Year 2
Year 3
Current Assets
Cash
Accounts Receivable
Inventory
Prepaid Expenses
39,891
$
$
$
Other Current
12,875
$
12,875
$
8,000
$
8,000
$
60,766
141,428
Fixed Asset
Improvements
0
0
120,553
$
0
$
0
$
167,479
$
0
$
0
$
12,875
8,000
188,354
$ 71,725
71,725
$
71,725
$ 14,000
$ 14,000
Equipment
14,000
$
$ 38,275
$ 38,275
Real Estate
Buildings
Other Fixed
Total Fixed Assets
Less Accumulated
38,275
$0
$0
$0
$ 124,000
$ 18,514
$
$
$
$
$
$
$
$
Depreciation
Total Assets
0
0
0
124,000
$ 37,029
$
166,252
0
0
0
124,000
$ 55,543
$ 256,811
228,399
$
$
$
$
$
0
109,362
0
0
109,362
$
$
$
22,875
34,015
56,890
$
$
$
$
$
0
86,336
0
0
86,336
$ 22,875
$ 119,189
$ 142,064
$
$
$
$
$
0
60,645
0
0
60,645
$ 22,875
$ 173,291
$ 196,166
228,399
$ 256,811
166,252
several years experience running and managing chain restaurants. The caf will be open for
business Monday to Saturday 8am to 12am and closed on Sunday. Jones had a lot of
experience. In college, he worked in a campus coffee house for seven years, eventually rising
to the position of assistant manager. Following graduation, Jones secured a business
development position for regional restaurant chain, which provided additional first-hand
exposure to the food and beverage industry especially the steps involved in establishing and
open his own caf and strategic locations.
3.2 Outlet Description
The Newtown Coffee will have seating for 45 patrons. The rent is $20 000 a month. The site
consists of 1500 square feet of leased space consisting of a dining room, a coffee bar, two
restrooms, and a storage room in back. To be used as a restaurant, this storefront needs to be
plumbed and wired appropriately. Painting, new floors, and countertops are also needed. A
custom coffee bar needs to be built. With materials bought on sale and volunteer labor, the cost
to renovate will be $40 000. The coffeehouse equipment will consist of two commercial
espresso machines; air pots a commercial blender, commercial brewer, and top loading coffee
bins, barista syrups, cold drink dispenser, frothing equipment, a commercial refrigerator,
microwave and stainless steel prep bar. The cost for the equipment is $37 000. The furniture
will consist of leather couches, and chairs (purchased at auction), coffee tables, bookcases, and
window treatment. The artwork will come from local artists and will be sold on a consignment
basis. The books were secured via donations. Total cost to furnish is $11,000. Other startup
expenses will be dishes, furniture, rent deposit, and marketing.
3.3 Location and Facilities
The Newtown Coffee is located in the highly desirable in West Granville Avenue, on the
northeast corner of 1039 West Granville Avenue. The property is located in an excellent
location. The property is 85% leased with Price Lower as the Anchor Tenant.
3.4 Products/Services Descriptions
Then Newtown Coffee primarys offering is gourmet roasted coffees with such varieties such
as mocha, white mocha, candy bar latte, and brewed coffee. Complementing the coffee will be
a smoothie line including wild berry, strawberry, peach, mango and lemonade. Rounding out
the simple menu line will be pastries obtained with an outside supplier, freshly made and
delivered daily. The pastry offerings may vary with seasonality but the primary line will
muffins, breads, cookies, scones, and rolls.
3.5 Competitive Landscape Consumer
The taste and personal income drive demand. The profitability of individual companies
depends on the ability to secure prime locations, drive store traffic, and deliver high-quality
products. Large companies have advantages in purchasing, finance, and marketing. Small
companies can compete effectively by offering specialized products, serving a local market, or
providing superior customer service. Specialty eateries, which include coffee shops, are laborintensive: average annual revenue per worker is about $50,000. Coffee shops compete with
businesses such as convenience stores, gas stations, quick service and fast food restaurants,
gourmet food shops, and donut shops.
3.6 Competitors
i) Take Five Coffee
This competitor operates from a 4,300 square foot space. The caf has WI-FI. In addition to
serving coffees and smoothies, the caf offers more food offerings with a full service kitchen
offering light breakfasts, and sandwiches and wraps. In the evenings the caf has musicians
performing on a small stage. The Caf also has a full liquor license. The broad offerings of
amenities do not make this a true comp for the subject.
ii) Wood Coffee
This competitor operates from a 6,300 square foot space in a shopping center. The shop was
established in 2001 and in 2011 reported $3.5 million in revenues. The shop employs 31
employees and provides music on the weekends. The subjects advantage is its smaller, cozier,
and quieter environment.
iii) Starbuck Coffee International
With more than 21,000 stores in over 65 countries, its clear that their passion for great coffee,
genuine service and community connection transcends language and culture around the
world.Coffee shops had been around for a while, but in the Chicago, they were small and
tucked away, and thought of as quiet venues for getting away from it all to enjoy a cup of
coffee.Starbucks big idea was to make good coffee and put it right where customers would
have easy access to it. They came up with the winning formula of quality and convenience. As
demand for their coffee grew, they knew they had a hit, so their vision was to have a franchise
everywhere they thought customers were likely to be. They created popularity, and made coffee
an affordable luxury, and a treat beyond something average you drank in the morning after you
woke up.
Starbucks also introduced the market to the idea of coffee snobbery, where you
could customize your coffee drink exactly as you liked it. In the US, customers seemed to love
the exotic and complicated coffee drinks you could get, as opposed to the average cup of
filtered coffee made in giant percolators and kept on a heating element all day long.
Unique products (specialized roasts, local ingredients, locally themed or named drinks, custom
drinks by the star barista, etc.) .Games, puzzles, mind benders and other activities that
encourage customers to linger over their coffee .Hosting or sponsoring local events
(entertainment, readings, book clubs, etc.). Using technology to creatively compete in
marketing with the big chains services like Foursquare, Yelp, and Google Places can increase
visibility in the local market. Delivering amazing service from knowledgeable baristas spend
lots of time training staff and utilize online services like the American Coffee & Barista
School . Selling coffee-related items (and track down any co-marketing opportunities with a
local community college or other student-related group in the area) .The sales of coffee
dominate sales of hot beverages, making up 83.3% of the total hot beverage market in the
Chicago Coffee consumption is expected to increase through 2015 at an average annual rate of
2.7%, while tea consumption is expected to increase through 2015 at an average annual rate of
3.1%. Positive expectations for continued growth in coffee sales, despite its mature product
position in the market, are due to the innovations in premium coffee products (pods, singleserving instants.
expected to increase through 2015 at an average annual rate of 2.7%, while tea consumption is
expected to increase through 2015 at an average annual rate of 3.1%. Positive expectations for
continued growth in coffee sales, despite its mature product position in the market, are due to
the innovations in premium coffee products.
5.0 CONCLUSION
New Town Coffee is a creative space that offers a wide array of food including delectable
brunch, coffee and desserts to enjoy. However we opt to become a cultural cafe that not only
focuses on coffee and food, but also art and music, encouraging customers to linger around
intimate surroundings and friendly staffs.
We conclude our cafe can delivering the highest standards of excellence food and
beverages. Besides that , develop enthusiastically satisfied customers all of the time and
contribute positively to our communities and our environment . So , our cafe can recognize that
profitability is essential to our future success and make perfect place to go after work for
everyone to unwind and catch up with friends .
6.0 BIBLIOGRAPHY
James Manktelow. (1996) SWOT analysis. Retrieved from http://www.mindtools.com/pages/
article/newTMC 05.htm. (15 September 2015: 3.45 p.m.).
Hisrich, R. D. (2009). International Entrepreneurship.(Second Edition). Developing and
Managing a Global Venture. SAGE Publications Inc. (18 September 2015: 1.40 p.m).
7.0 APPENDIXES