Starting a restaurant or coffee shop can be very fulfilling.

However, these types of businesses can be difficult to

maintain. As with starting any business, you will need to take many things into consideration throughout the process
of establishing your restaurant or coffee shop. Do you need a loan? Where will the business be? How is it going to
attract customers from other businesses like yours?
These are some of the considerations that we need:

PART 1 : LAYING THE GROUNDWORK

1. Determine whether owning your own business is for you.

Most restaurant and coffee shop owners are driven by a passion for what they do. This carries them through
the hard times and the risk of failure that accompany all small business ventures.In addition to having a
passion for your business, we should make sure that our personality is a good fit for the uncertainties of
business ownership.
Can we take risks that may or may not pay off?
How comfortable are we being a self-promoter?
Are we willing to work long and/or unusual hours to keep our business afloat?
Do we enjoy problem-solving and creative thinking?

2.Checking out the environment.

Its very important to consider factors such as the location and environment.We will need to do significant
market research in order to learn about where the best location would be, what types of customers you might
attract.

3.Talking to other small business owners in the area.

Networking with other owners of restaurants and coffee shops will help us understand more about the process from
a first-hand source.Its a good idea to ask about the challenges and difficulties they faced, as well as what strategies
they used to overcome those challenges.

4.Decide on the market.

We need to decide who your target audience is. Even though most people eat out at least occasionally, there is no
way that you will be able to appeal to everyone. Trying to do so is actually a recipe for failure. Focus on the niche
that your restaurant or coffee shop can appeal to.For example, a restaurant that serves steaks, Chinese food, Italian
pasta, and fresh seafood would probably be confusing to most customers. Businesses that specialize in a particular
area are more likely to draw a following. Pick a few things for your business to do and do them impeccably.

5.Figure out the concept.

All restaurants need a concept, or something that lets customers know what to expect. This doesnt have to be
highfalutin or expensive, but it should present a clear vision of what your restaurant will offer .Coffee concept
shops are increasingly popular . Customers are interested in buying coffee that is fair-trade, organic, and other
markers of quality. Decide whether you want to be more of a boutique coffee experience or more of a traditional
doughnuts and coffee venture. Stick with that identity.

6.Determine whether you want to start from scratch or buy an existing business.
Owners of restaurants and coffee shops frequently look for a new owner to hand the business to.If the
business is already fairly successful, taking over an existing business could be a good idea.
If you choose this route, make sure you still do your research to learn why the owner wants to sell. Is the
business profitable?
Another option is franchising. Opening a franchise of a successful restaurant chain can be a good way to
achieve instant brand recognition and access a loyal customer base. However, you will not have as much
control over your product and operations as you would if you open an independent business.

7.Figure out the budget.

Starting a restaurant or coffee shop requires start-up capital. How much money youll need can vary
dramatically, depending on your location, the scale of your venture, and how much investment your property
requires. There are several online calculators we can use to get a rough idea of starting costs.

8.Writing a business plan.

The US Small Business Association has excellent and extensive advice on writing a business plan on their website.
A fully developed business plan will make sure there are no nasty surprises once you begin the process of opening
your restaurant or coffee shop.
A business plan has many elements. Its important to have a very clear idea of your restaurants identity,
including what food it will serve, its location, and its long- and short-term goals.
 Present a clear breakdown of all costs. State the amount of the lease or mortgage, how much salaries and
wages will cost, how much benefits packages will cost, how much furniture and equipment will cost, how
much your food products will cost, etc.
Develop a clear marketing strategy. You should be absolutely clear on who your target market is and what
actions your business will take to draw them. You should know who your competitors are and how you
will compete with them. In this section, you should also present the average costs of the types of marketing
youll use, as well as any licensing and permit requirements.
Include your menu. Make sure that you know exactly what your restaurant will serve. Know what
distributors you will purchase food from and how much items will cost. Consider these costs when pricing
menu items.

9.Secure funding.

Once we have a solid business plan in place, well need to secure funding. Starting a restaurant or coffee
shop can be done with just a few thousand dollars, or it can require several hundred thousand dollars. Dont
borrow or spend more than we need.
We can use personal resources, such as savings accounts and credit cards, as start-up cash.
We can also go in with a partner or two, particularly if our business plan is convincing. Just make sure we
draw up a clear partnership agreement document.

PART 2:MAKING THE INITIAL DECISIONS

1.Consult with a professional.

We will need to have some kind of legal structure for our business. Consulting with an expert, such as a
small business attorney or a Small Business Administration office, will help you make sure that your
business gets what it needs to succeed.
Development Centers(SBDCs) that can help us plan and execute our business decisions.
Many restaurant and coffee shop owners go with a Limited Liability Company (LLC), which protects your
personal assets in case the business runs into trouble.
We may also want to consult with a small business accountant. The work of running our restaurant may be
so much that we need to hand the bookkeeping over to someone else.
2.Research local zoning laws.
Restaurants and coffee shops are small businesses, so they must be located within a commercial zone. We must
acquire the necessary permits and other documentation before proceeding.
Most areas will not allow us to sell food or beverages unless we have a commercial kitchen on-site. This
means that home-based businesses are usually out.
The SBA has a Permit Me tool that will help you determine what licenses and permits our state requires.

3.Research your local food safety laws.

Health codes vary depending on your location, but in order to establish a business that will sell food and/or drinks,
we must comply with all the local regulations regarding food safety.
Be aware that you will generally need to submit your application to your local environmental health
department at least a month in advance of opening your business.
You should also be aware of any particular regulations involving the sale of alcohol. While laws vary
depending on your location, the laws surrounding alcohol are generally complex, so make sure you
understand them.

4.Purchase insurance.
Restaurants and coffee shops have many areas that could open us up to liability, including worker safety, food
safety, and liquor liability. Many areas require any restaurant or coffee shop that sells alcohol to carry liquor liability
insurance, which will protect our business against lawsuits or liability from wrongdoing resulting from alcohol
consumed at your business. In most areas, well also need to carry workers compensation insurance.
Even if not required, insurance is an excellent idea. Property insurance and general liability insurance will
help protect us and our business.

PART 3:SETTING UP SHOP

1.Listen to your instincts.
Once youve done your research, listen to your gut when making business decisions. Dont worry about what is
trendy or the latest must-have. Focus on the important things, such as good quality food or coffee, excellent
service, and a solid location.
Dont let other people push you around with their own ideas. Remember that what works for one business
may not work for another. Just make sure that youre basing your decisions on research.

2.Look for bargains.

You dont have to spend a fortune to establish a small restaurant or coffee shop, especially if you shop smart.
Repurpose whatever you can. Buy wholesale from restaurant supply shops. See if contractors and other service
providers will work for barter.
If you need to establish branding for your business, consider contacting a local design school or university
with an advertising department. Often, students will be glad to develop excellent low-cost work for you in
exchange for getting to use it in their portfolios.
Leasing big-ticket items such as refrigerators and espresso machines, at least at first, can help cut down on
start-up costs. This means you will be able to keep lower prices, which will mean happy customers.
You may also be able to find equipment offered on sites like craigslist. Just make sure that it is in good
working order.

3.Design your space with care.

The dining area of your restaurant or coffee shop is the place where your customers will spend their time. It
communicates your restaurants identity and is crucial to customers impressions of your business. Usually,
between 45-65% of your floor space will be devoted to the dining area.
Visit other restaurants or coffee shops in your area. Observe how customers interact with the space. Does
it seem comfortable? Efficient? Inviting?
Make sure you have flexible seating. Booths for larger groups should be placed along the walls. Remember
that 40-50% of customers arrive in pairs. 30% come alone or as a party of 3. Just 20% of guests come as
groups of 4 or more. Use primarily tables for two that you can push together when necessary.[32]
For coffee shops, make sure that you have a comfy seating area thats conducive to working and socializing.
A mix of chairs and couches with 2-person tables will create an inviting environment in which customers
will want to stay for awhile.

4.Hire staff.
Dont overhire at first. Be willing to fill in gaps yourself until your business is profitable enough for you to hire
more personnel.[34] You can advertise online, in classifieds, and through word-of-mouth.
Create a training guide so that your employees know what is expected of them. Setting clear roles and
expectations will help things run smoothly.[35]
For coffee shops, hire well-trained baristas. Coffee quality is the live-or-die element of coffee shops. Even
if you buy the best espresso in the world, if your baristas dont know how to prepare it, your coffee wont
draw customers.
Be aware of turnover. Food service is very prone to employee turnover, where employees join and leave a
company within a short amount of time. Make sure you have ways to quickly hire new people when you
need to.
Make sure youre aware of and comply with your local Department of Labor regulations.
Even if you hire family, make sure that each person has a clear understanding of their duties. All laws and
regulations apply to family-member hires, too.

5.Make a list of every single supply you need.

Before you choose a supplier, you have to know every single product that your business will need. This ranges
from obvious items like eggs and tables to tiny details, like napkin holders and toilet paper. Make a
comprehensive list so that you know exactly what your business will need each week.
Categories to think about include equipment (stoves, refrigerators), furnishings (lighting, tables, chairs),
dinnerware (glasses, plates, silverware), and miscellaneous details (cocktail stirrers, toothpicks).

6.Finding suppliers.
You will want to provide your customers with the best-quality products for their money. There is a wide variety
of suppliers out there, from those who specialize only in seafood to those who will do everything from toilet paper
to T-bones. If you talked with other restaurant and coffee shop owners, you may be able to get recommendations
from them.[38] Make sure you balance between cost and quality.
Start with a list provided by your local branch of the National Restaurant Association.
Check out any potential supplier with your local Better Business Bureau. If a business has a history of
complaints, steer clear.[39]
Comparison shop. Ask for price quotes on everything youre likely to need and compare between suppliers.
 Consider your staffs talents. It may be more cost-effective for your staff to clean its own seafood, but if
you dont have anyone who knows how to do that, it wont actually save you any money. If your staff has
skills like bread-baking, though, make use of them.
Make sure the company you choose is responsive. If they cant get something to you in time, will they let
you know? Are they conscientious about delivery schedules? Do they reply to inquiries in a timely manner?

7. Test your menu before we open.

Even the best menus need fine-tuning at times. Host a small party for people whose opinions you trust and prepare
your menu offerings for them. Ask for their feedback, and make changes as necessary.
Tell people what the price will be at the restaurant and ask them how they think about it. You may need to
bring your prices down, or you could be pleasantly surprised to learn you can charge more while still
offering value.

PART 4: GROWING YOUR BUSINESS

1.Market your business.
Your business plan should already have detailed marketing plans in place. Your goal is to make your business
visible to customers and provide a compelling reason for them to visit. Form social media accounts, run ads in your
local papers, and make yourself a public figure by visiting locales like fairs and farmers markets.[41]
Gift-certificate giveaways and free food promotions are very popular ways to draw attention to your
business.[42]
You can also donate gift certificates as prizes for local charities, nonprofit, and professional organizations.
This will generate goodwill toward your business and spread the word about your business.
Consider inviting your local food critic to your business. While you cant control what they write, its a
good way to get some press for your business.
Loyalty cards work well for fast-food restaurants and coffee shops.

2.Stay in touch with customers.

Even if you meet with success once you open up, dont rest on your laurels. Give surveys. Ask your customers
what they like and what they dont like about the business. Ask what they would like to see that you arent currently
doing. Ask how they feel about your location, your interior, your menu offerings. Listen to what your customers
say, regardless of how it may make you feel.[44]
 You can even incentivize these surveys by offering a free product or meal if customers return the survey
to you.
3.Keep an eye on expenses.
Once were up and running, the biggest day-to-day expense we face will be the cost of food and beverages.
However, we should make sure that our food and beverage costs dont add up to more than 25-40% of your
revenues.
Payroll is another reliable chunk of expenses. In general, payroll should cost no more than 20-25% of
revenues.
4.Upsell.
This is especially important for coffee shops, where the average transaction is fairly small. Make sure that we also
have plenty of accompaniments, such as pastries and muffins, and encourage your staff to recommend them to all
customers
Coffee should not be more than about 40% of our weekly sales volume.
Dont go overboard with the accompaniments, though. Have a good selection, but we dont need to have
six types of quiche and twelve types of cookie. Trying to sell too much of a variety increases costs without
increasing benefits.

Mission

Witches Brew will make its best effort to create a unique place where customers can socialise with each other in a
comfortable and relaxing environment while enjoying the best brewed coffee or espresso and pastries in town.

We will be in the business of helping our customers to relieve their daily stresses by providing piece of mind
through great ambience, convenient location, friendly customer service, and products of consistently high quality.

Witches Brew will invest its profits to increase the employee satisfaction while providing stable return to its
shareholders. The cafs theme is the main attraction so it can attract the most of the younger generation.
We also want to make our contribution to the welfare of the local community by supporting charitable and civic
activities. We will support the farmers who grow our coffee by using Fair Trade, Sustainable Production and
Organic products whenever possible.

An example company Witches Brew bar is determined to become a daily necessity for local coffee addicts, a
place to dream of as you try to escape the daily stresses of life and just a comfortable place to meet your friends or
to read a book, all in one.

With the growing demand for high-quality gourmet coffee and great service, Java Culture will capitalise on its
proximity to the University of Oregon campus to build a core group of repeat customers.

Witches Brew will offer its customers the best prepared coffee in the area that will be complimented with pastries,
as well as free books that its patrons can read to enjoy their visit.

The company will operate a 2,300 square foot coffee bar within a walking distance from the University of Oregon
campus. The owners have secured this location through a three-year lease with an option for extending.

Objectives
Make Witches Brew the number one destination for coffee in Noida

Sales of 60000+ the first fiscal year, 75000+ the second fiscal year and 1 lakh the
third fiscal year

Achieve a 15% net profit margin within the first year and 30%

Be an active and vocal member of the community, and provide continual re-investment through participation
in community activities such as the Chamber of Commerce and financial contributions to local charities and
youth organizations

Create a solid concept in the industry and track performance in order to begin expanding to other markets
within six months
 If you are thinking about opening a coffee shop, you will have a multitude of items on your To Do List.
Making sure that you incorporate your coffee shop business plan into your business development and operation is
essential. One of the ways to make sure that you are doing everything to right (and not miss anything along way)
is to write a coffee shop business plan.
While we've written extensively on the importance of writing a coffee shop business plan previously, we feel that
it's important to review this important part of your coffee business planning. We encourage you to do further
research on your own about writing a business plan and get help from other resources if you think it's necessary.
This will be a good time to share with you that we offer a coffee business startup kit that comes with a business
plan template.
So, today, were going to spend a few minutes discussing your coffee shop business plan and answer some pretty
common questions that surround this important document that will impact your business from now until you pour
your first espresso drink and start your coffee business.

They owns previous experience in restaurant management has led to Their desire of wanting to own and manage a
restaurant. Currently, They operates Their own catering service, J&A Catering and Entertainment Corporation.
They services special events and plans to incorporate tTheir business into tThey new restaurant, Calypso Cafe.
Their work with Burger Boy Restaurant in Fort Wayne, Indiana, was so successful and profitable that They was
introduced to tThey idea of owning Their own restaurant. Their high scores of evaluation and good standing with
Burger Boy earned Them an opportunity to create some menus for they restaurant. They have worked for Burger
Boy from 1992-1996. Their responsibilities include line cook and kitchen management. Their goal is to own and
operate a restaurant where They can utilize Their professional skills and proven experience.
We Benson's experience and skills in restaurant business go back as far as 1981. From 1991-1992, They served as
a cook at Burger King Restaurant in Fort Wayne, Indiana. From 1990-1991, They worked as a cook for Popeye's,
Fort Wayne, Indiana. In 1990, We held two jobs as a waiter at Cyprus Inn and My Place Restaurant in Fort Wayne,
Indiana. In 1989, They was they manager and social director for Bella's Resort in Kingston Harbor, Jamaica. At
Bella's They was responsible for managing they bar and planning special events for they guests of their resort. We
has also experienced an extraordinary activity during Their years of professional service. From 1986 to 1988, while
working at Blue Waters Resort in Kingston Harbor, They overcame Hurricane Gilbert by using Their leadership
skills and positive sense of direction to manage tourists during they disaster. They was able to take charge of their
situation and control panic. From 1981-1985, while working as a fine dining waiter at Wonder Island Hotel in
Kingston Harbor, Jamaica, We also attended school. After graduating from high school in 1981, They got Their
Certificate in Catering from Kingston Harbor Catering School.
Our strengths include they ability to work long hours, use creative problem-solving skills, lead with a positive sense
of direction, and give constructive criticism when necessary. Their weakness is they tendency for impatience. They
is willing to take risks such as when They relocated to they United States.
We has also had areas of interest before Their career pursuit. They was awarded high honors for best performance
in they Jamaican Combined Cadet Force for two consecutive years, while They was serving as a Corporal. They
also played in they town band. While in high school, We was very involved with they track team.
We is a family oriented individual. They is married and has children. They has lived in they Fort Wayne area for
six years.
In pursuit of Their dream to become a successful entrepreneur, We is prepared to take a calculated risk. They has
strong confidence in themselves as a businessman and is determined to set clear, attainable, and challenging goals.

Keys to Success
The keys to our success will be:

A superior-tasting product backed by a unique quality store

A relaxing, upscale interior design

Prime site selection with an upscale affluent population, year-round tourist activity, heavy pedestrian traffic
by the site, a dynamic student population and a concentration of local businesses

A market that exposes Witches Brew to high-profile "trend-setters" and "key influencers"

Ongoing, aggressive marketing

Highly trained and friendly staff

Multiple revenue streams including gift items, gift baskets and coffee gift/frequency cards in addition to
coffee, pastry, chocolates, tea, juice, water and soft drinks

A dynamic website with online sales capability

The Witches Brew Concept

At one time Cadillac was the acknowledged quality automobile in America. Then came Mercedes-Benz. And then
Lexus, with its superb product and service approach. Witches Brew will be the first "Lexus" of the coffeehouse
chain industry, offering a higher quality product and better quality service in an exceptional environment. The only
coffeehouse that comes close to being as upscale as our concept in the Pacific Northwest is United Coffee House,
with its high style Italian decor (they were recently part of a 72 million dollar buy-out by Starbucks).

The first Witches Brew is located in Noida. Other Witches Brew coffeehouses will eventually be located in select
affluent markets that support the business model.

Witches Brew offers a superior coffee product, delicious pastries, fresh juices, the finest tea drinks, Ghirardelli
cocoa, gourmet chocolates and gift items.

The Witches Brew staff members who prepare the coffee (baristas) are highly trained and experienced. They know
how to prepare an excellent espresso-based drink and brew tasty coffee. We use the highest quality equipment and
ingredients to deliver a noticeably superior product.

Our design style is different from all other coffeehouses, an upscale "Witches Brew Advanced" look. It features
stained glass decorations, art glasswork, Mediterranean Riviera style furnishings and outdoor dining.

Company Summary

Witches Brew launches with its first coffeehouse located in downtown Noida. Witches Brew will offer residents
and visitors a totally new style of coffeehouse - one offering a uniquely flavourful coffee drink and a comfortable,
upscale environment at which to socialize, relax or work.

Variety
No other coffeehouse in the area will provide the range of coffee drinks, tea, cocoa, juice, smoothies and other
products that Witches Brew does.
 Witches Brew sells high-quality specialty coffee beverages, tea, juice, water, soft drinks, pastries,
chocolates and gift items. Despite being an upscale coffeehouse, our prices are in line with the leading national
chains. We offer six groups of drinkscoffee, tea, Italian sodas, smoothies, juice and cocoawith several
choices within each group. This enables us to provide more variety than our competitors while keeping the
preparation of the drinks easy to execute.We are taking advantage of the immense popularity of flavored
drinks and Chai tea by offering a product mix that includes items the other coffeehouses don't carry as well as
more familiar drinks.We are the only coffeehouse to have a wide range of gourmet hot cocoa.Witches Brew
offers several smoothie drinks and Italian sodas.We carry the highest quality fresh juices.

Prices have been determined after a thorough analysis of all food costs for every item in each drink. In some cases,
an average price has been calculated and applied to all similar drinks in order to keep the menu from confusing the
customer. The menu of the Witches Brew bar will be built around espresso-based coffee drinks such as lattes,
mochas, cappuccinos, etc. Each of the espresso-based drinks will be offered with whole, skimmed, or soy milk.

Each of these coffee beverages is based on a shot of espresso, which is prepared in the espresso machine by
forcing heated water through ground coffee at high pressure.

Such espresso shots are combined with steamed milk and/or other additives like cocoa, caramel, etc., to prepare the
espresso-based beverages. Proper preparation techniques are of paramount importance for such drinks.

A minor deviation from the amount of coffee in the shot, the size of the coffee particles, the temperature of milk,
etc., can negatively affect the quality of the prepared drink.

Expansion: Assuming this store is successful, it will be the first of a chain of Witches Brew coffeehouses located
in markets that have similar demographic profiles, significant traffic by the store, year-round tourist activity and a
sizeable student population. After carefully tracking the performance of the Noida store through an expandable and
highly detailed point-of-sale system, we will use this as a "blueprint" for expansion. For example, daily sales are
tracked and analyzed by item, time period and cost of goods. Labor requirements are matched to projected in-store
sales based upon past performance for maximum efficiency. Even after paying higher than average wages, we
expect to allocate no more than 25% to labor costs.This Business Plan only provides data on the Noida coffeehouse.
Company Locations and Facilities

Witches Brew will be located in the prime section of downtown Noida in the heart of the shopping and
entertainment district. Witches Brew locations are designed for high volume year round, with revenues and profits
to match.

Witches Brew bar will be located on the ground floor of the commercial building at the corner of West 13th Avenue
and Patterson Street in Eugene, OR.

The company has secured a one-year lease of the vacant 2,500 square feet premises previously occupied by a hair
salon. The lease contract has an option of renewal for three years at a fixed rate that Java Culture will execute
depending on the financial strength of its business.

The floor plan will include a 200 square feet back office and a 2,300 square feet coffee bar, which will include a
seating area with 15 tables, a kitchen, storage area and two bathrooms.

The space in the coffee bar will be approximately distributed the following way 1,260 square feet (i.e., 55% of
the total) for the seating area, 600 square feet (26%) for the production area, and the remaining 440 square feet
(19%) for the customer service area.

This property is located in a commercial area within a walking distance from the University of Oregon campus on
the corner of a major thoroughfare connecting affluent South Eugene neighbourhood with the busy downtown
commercial area.

The commercially zoned premises have the necessary water and electricity hookups and will require only minor
re-modeling to accommodate the espresso bar, kitchen and storage area.
The coffee bars open and clean interior design with modern wooden decor will convey the quality of the served
beverages and snacks, and will be in-line with the establishments positioning as an eclectic place where people
can relax and enjoy their cup of coffee.

The clear window displays, through which passerby will be able to see customers enjoying their beverages, and
outside electric signs will be aimed to grab the attention of the customer traffic.

Company Ownership

Witches Brew is a privately held corporation. It is registered as a state LLC Corporation, with ownership shared by
IT Students named as, Ambika, Yashasvi, Priya, Komal, Jatin, Ranjeet, Karan, Sonali. These college students tried
their best to attract the younger generation.The cafs theme is the main attraction to attract the new adventurous
younger generation to explore, laugh and love.

The major reason for the customers to return to a specific coffee bar is a great tasting coffee, quick service and
pleasant atmosphere. Although, as stated before, coffee consumption is uniform across different income segments,
Witches Brew will price its product offerings competitively. We strongly believe that selling coffee with a great
service in a nice setting will help us build a strong base of loyal clientele.

Startup summary

Start-up expenses are in line with those of other coffeehouse chains. For example, Starbucks spends approximately
380,000 on average to build-out a new store location. Our costs are an estimated 225,000 and 25,000 for opening
inventory and operating capital. Future stores should cost no more than 175,000 to build out since many of the
costs incurred here will not have to be repeated later.
The Start-up requirements, below, include 77,000 of short and long-term assets.
Long term assets: 62,000
Undercounter Refrigerators 5,000
Service/Prep Counter 12,000
Ice Machine 3,500
Large Refrigerator 1,000
Milk Coolers (3) 1,000
Cash register (2) Point of Sale System 14,000
Fetco Coffee Brewer 2,500
Counters/Condiment bar/shelving 12,000

Short-term assets: 15,000

Tables, Chairs, Furnishings 12,000
Persian Carpet 1,000
Lighting Fixtures 2,000
Waiter dresses (witch theme)

START-UP REQUIREMENTS

Start-up Expenses

CONSTRUCTION 0

Site design, architectural plan 10,000

Demolition/Construction 25,000

Electrical, Lighting 12,000

Electrical, Other 10,000

Flooring/installation 5,000

Bathroom Construction 4,000

Plumbing 10,000

Fireplace Construction 5,000

Painting 2,500

City permits/licenses/fees 6,500

Inserted Row 0

LEGAL 0

Accounting 2,000

Legal 4,000

Insurance 2,500

Inserted Row 0

MARKETING 0

Opening marketing/advertising 3,000

Graphic design for signage, menu boards 2,000

Outside Signage 1,500

Frequency Cards, Brochures 1,500

Inserted Row 0

OFFICE 0

Office equipment 600

Computer, scanner, printer 2,000

Telephones/Fax/DSL 500

Stationery etc. 1,000

Gift item displays (3) 1,500

Inserted Row 0
APPLIANCES, ETC 0

Preparation equipment 1,000

Dishwasher 3,500

Blenders (3) 2,000

Microwave 500

Panini maker 700

Storage racks 1,000

Music system 800

Food display case 6,000

Storage room shelving 1,000

Bulk bean grinder 700

Sinks (2), prep counters 1,200

Menu board construction 2,500

Cups/Lids (50,000) 14,000

TOTAL START-UP EXPENSES 147,000

Start-up Assets

Cash Required 1,500

Start-up Inventory 25,000

Other Current Assets 15,000

Long-term Assets 62,000

TOTAL ASSETS 103,500

Total Requirements 250,500

START-UP FUNDING

Start-up Expenses to Fund 147,000

Start-up Assets to Fund 103,500

TOTAL FUNDING REQUIRED 250,500

Assets

Non-cash Assets from Start-up 102,000

Cash Requirements from Start-up 1,500

Additional Cash Raised 0

Cash Balance on Starting Date 1,500

TOTAL ASSETS 103,500

Liabilities and Capital

Liabilities

Current Borrowing 0

Long-term Liabilities 0

Accounts Payable (Outstanding Bills) 0

 Other Current Liabilities (interest-free) 0

TOTAL LIABILITIES 0

Capital

Planned Investment

Investors 250,000

Other 500

Additional Investment Requirement 0

TOTAL PLANNED INVESTMENT 250,500

Loss at Start-up (Start-up Expenses) (147,000)

TOTAL CAPITAL 103,500

TOTAL CAPITAL AND LIABILITIES 103,500

Total Funding 250,500

Market analysis summary

Despite economic downturns in recent years the specialty coffee business has been a bright spot. While literally
hundreds of businesses in many categories are facing poor sales, negative balance sheets and even bankruptcy,
coffee chains continue to show strong growth.

It's clear that indias love for good coffee continues during good times and bad

CP: the perfect launch market

By launching cafe at connaught place we maximize our potential for success due to several factors:
The highly affluent local population

Year-round tourist activity

 Ever-changing upscale student population

Excellent auto and pedestrian traffic by our location

Low media costs

High number of local special events

Prime site location

CP is located at what is arguably one of the best locations for a coffeehouse in delhiin the heart of the tourist and
business district, adjacent to fine dining and shopping.
Our cafe has all the ingredients necessary for immediate success.

Market segmentation
Segmentation is comprised of five target groups.
1. Affluent local residents

2. Tourists

3. Local business people

4. Students

5. Travelers passing through

These groups are all potentially strong customer segments. The benefit of this mix of customers is that it helps
maintain consistent business throughout the year. For example, while tourism is strong all year long in Pleasantville,
it peaks during the summer months. Conversely, the student population is not as strong during the summer as it is
from September through June of each year.
The other customer segments (local residents, local business and pass-through traffic) provide a consistent
foundation all year long.
Also, by appealing to several market segments, our cafe does not become overly dependent on any single consumer
group. For example, several local coffeehouses with primarily student customers do poorly during the non-school
or non college months. They must also market themselves anew each year to the incoming students. Dark Roast
Java will avoid these peaks and valleys in business with a mix of customers.
Market segment strategy
Overall, our strategy is to maintain a constantly high customer count by leveraging our appeal to five groups of
potential customers.

Industry analysis
The caf market in India started developments in the 1990s. However, major growth in the coffee shops and caf
market in India was witnessed during past 5-6 years. The industry has grown well since 2005. India is the sixth
largest producer of coffee and with the rising developments in the caf market, the consumption of coffee is also
rising. India has pre-dominantly been a tea consuming country and coffee has been a luxury drink. However, the
notion is changing with the shifting lifestyles, along with improving disposable incomes, increased influence of
western countries, easy accessibility to internet and other media etc. Coffee has turned out to be a trendy beverage
for the young population of the country and with the high ratio of young population in India; the entire coffee
market has been benefited. The coffee shops and cafs turn out to be the best locations to hangout for youngsters
and are thus, preferred over other venues.
According to India Coffee Shops & Caf Market Forecast & Opportunities, 2017, the coffee shops and caf
market in India is expected to witness phenomenal growth in the next five years. A large number of coffee shops
in India are being developed, with the proposition of food & beverages. The average bill amount at a coffee shop
in India was around INR 135-150 in 2010 and is expected to increase to INR 230-255 by 2017. Also, Mumbai turns
out to be the most expensive city for average bill amount and Kolkata remains to be the least expensive. It is
forecasted that the coffee shops/cafs market in India will cross INR 5600 Crore by 2017. Caf Coffee Day is the
biggest player in the coffee shops and caf market in India, followed by Barista Lavazza and Costa Coffee. There
are a few other players in the market, which include Javagreen, Coffee N U, Coffee Bean & Tea Leaf, Gloria Jeans,
and The Chocolate Room etc. The global coffee giants Starbucks and Dunkin Donuts are all set open their stores
in India by the end of 2012.
Competitive comparison
"Until everybody can walk to a coffeehouse and get a properly prepared espresso drink, we're not even
approaching market saturation."
Leaders in the specialty coffee chain category in the india include:

Nescafe
Nescafe is most famous and also one of the oldest coffee brand in India. It has a strong hold over the Indian market.
This brand is renowned for its rich taste and aroma. It was introduced in 1938 in Switzerland. This brand belongs
to Nestle India Limited. This coffee brand has lot of manufacturing units and coffee machines set up at across the
country. It marketing around 700 million cups of coffee every day.
Tata coffee
Tata is one of the largest sellers of coffee powder in India, which has around 19 coffee estates in the southern parts
of India. This brand is renowned for its best quality and taste. The Tata is known as the largest coffee manufacturer
and exporter in the country. It has got numerous awards and recognition.
Bru
Bru is known as one of the favorite coffee brand in India, which was introduced by Hindustan Unilever Limited in
1969. It holds about 49.6% of the market share in India. This brand is considered as a second best selling, right
after Nescafe. Bru is coming under the banner of Brooke Bond Green Label. BRU instant coffee, BRU Exotic,
BRU Gold, BRU Select, BRU Roast and Ground etc are the variants of BRU coffee.
Davidoff
Davidoff is known as one of the luxury coffee brands having international fame and recognition. This coffee
is made up of 100% Arabica beans, which are considered as the best coffee beans in the world. Its coffee sprouting
up from a well-balanced climate. Davidoff provides a wide variety of flavors.
Narasus Coffee
Narasus Coffee is known as one of the leading coffee brands in India, which was launched in the year 1926. This
company used modern technologies. Tea, chicory, instant coffee powders, filter coffee Powders are manufactured
by this brand. The company has coffee estates in Tamil Nadu and Karnataka. Narasus Coffee is a product of Sri
Narasus Coffee Company Limited, which is considered as an ISO 9001:2008 certified company.
Leo
Leo considered as one of the top notch and famous beverages not only in India but also in the world. This brand
was founded by PRK Nadar in 1910. It is renowned for its purity and quality. Now it become one of the leading
coffee brands in India as well as Tamil Nadu. The pure taste of tradition is the tagline of the brand. This brand
has acquired wide acceptance countrywide.
Blue Tokai
Blue Tokai is one of the best home grown coffee brands in India. It was launched by Matt Chitharanjan and Namrata
Asthana. They provide exclusively hand-picked and freshly roasted coffee beans, which are collected from several
farms in India. There is rich aroma added in their coffee. The coffees are roasted by them with immense care.

Lavazza
Luigi Lavazza S.p.A. is known as an Italian manufacturer of coffee products. It is one of finest coffee brands in
India. Now this company become one of the most reliable brands of coffee in India. This brand acquired popularity
in India. Luigi Lavazza was the founder of this company. The company is headquartered in Turin, Italy.
Bayars Coffee
Bayars Coffee has now become one of the pioneer coffee brands in India. It was founded in the year 1956 by Mr.
Ramachandra Rao, who is an expert in roasting the finest coffee beans. This company was first begun as a grocery
business. The brand used new technology to manufacture the coffee products. The brand infuses some modern
flavors to its coffee.
Cafe Rio
Cafe Rio one of the most popular coffee brands in India. They provide the finest and best flavors of handpicked
coffee. This brand specializes in offering roasted coffee beans with a unique aroma. Relish the moment is the
tagline of the company. You can buy it from supermarkets/ online shopping stores.
Medium roast and dark roast are two coffee powder packs marketed by this brand.
Buying patterns
Despite major economic recessions, terrorist attacks and two wars over the past two decades, the specialty coffee
industry has grown every year. One industry observer said, "When times are good the coffeehouse industry is great.
And when times are bad the coffeehouse industry is great." india's love for good coffee is stronger than ever and
increasing in size faster than any other industry.
Lifestyle factors converge to make the coffee industry strong at all times. The stimulant effect of coffee is an
important reason why many hard-working, fast-paced Americans consider a stop at their local coffeehouse a
necessary part of their day. Conversely, coffeehouses provide a calm, inviting environment for people to socialize,
relax or catch up on work.
Young people under the legal drinking age are one of the fastest-growing segments of the coffee drinking market.
Coffeehouses provide them with a much-needed place to meet with their friends.
Entertainment on weekend nights draws a young group of enthusiastic customers. The surge in interest in coffee
drinking among young people assures a diverse, receptive, sophisticated customer base now and in the future.
Older adults also enjoy the fact that for the relatively modest price of a cup of coffee and snack, they can meet with
their friends, relax or work. Instead of going to a bar and paying for an alcoholic drink or a restaurant where a meal
usually comes with a hefty price tag, the coffeehouse is an intimate yet inexpensive venue.
Quality is deteriorating even as the industry is growing.
Coffeehouses need to produce a quality product to back up the perceived "little luxury" image. Currently, most of
the largest chains are bowing to the pressures of growth and are cutting corners on quality by introducing fully
automatic espresso machines, mass bean buying and other efficiency measures.
Coffee drinking is now an all-day activity.
Once concentrated in the early morning hours or mid-afternoon, in recent years coffee drinking has become an all-
day activity. Even late at night, many coffeehouses are packed with patrons. It's not unusual for a well located
coffeehouse to exceed a daily average of 900 customers.

Customer guest check averages are rising.

As pastries, chocolates, tea, pre-packaged sandwiches, snacks, juice drinks and gift items are added to the menu,
the average customer expenditure has risen. Many popular coffeehouses report averages in the 4 - 6 range

Strategy and implementation summary

Witches brew uses a strategy of total qualityin product and service. Our promise is in our location, the products
we sell, the people we attract and the atmosphere we create.
Strategic Assumptions:
People want a better-tasting coffee drink

Coffee drinkers want a more inviting coffeehouse environment

Coffee drinks are considered an affordable luxury

The coffeehouse industry is largely unaffected by the economy and world events

Caf offers several unique advantages over all other coffeehouses

Competitive Edge
Our competitive edge, compared to the other coffeehouses includes the following:
A significantly higher quality, better tasting coffee product.

Our current location can arguably be considered the best in the marketin the heart of the downtown
shopping, dining, entertainment and cultural district.

An ambiance superior to all other coffeehouses in the area with upscale look. It features stained glass
decorations, art glasswork, Mediterranean Riviera style furnishings and outdoor dining.

The only coffeehouse downtown to provide regular weekend evening entertainment.

 A wider variety of popular drinks than our competitors, including flavored coffee drinks, tea, chai, cocoa,
juice and Italian sodas. We have several drink options for people who don't drink coffee: tea, cocoa, juice
and smoothies.

Our Internet website will include sales of whole coffee beans, tea, chocolates, gift items and gift baskets.

Marketing Strategy
Other coffeehouses rely almost entirely on word-of-mouth marketing to generate business. We will engage in an
ongoing aggressive marketing program that will help us establish profitability quickly and set the stage for continual
growth.
Our strategy will be to position our coffeehouse, offering a high quality product and superb service in a superior
environment.

Launch Marketing
Launch marketing will promote awareness, build immediate traffic and establish our brand image via several
methods:
Public relations/publicity

Direct mail

Local print and broadcast media

Design and packaging

Community involvement

Sampling

Superior location

Desirable store ambiance

Public Relations
A strong public relations/publicity program uses as its primary "hook" these three main points:
1. Dark Roast Java is Pleasantville's first true gourmet coffeehouse

2. Our unique quality products

3. Our distinctive latte "art"

The goal of the PR/publicity is to achieve local market awareness and establish the brand on a wider scale to set
the stage for future expansion. Local market awareness is vital because more than 50% of sales will come from
people living within a 5-mile radius of the store.
National awareness will help drive the expansion by generating opportunities created by the media buzz and
familiarizing people with our brand name. It will help set the stage for future brand identification.
Website
Our website is fully e-commerce functional and could easily become a significant revenue source.
We will eventually sell the following items online:
Whole coffee beans, tea

Gift baskets

Gift items

Furnishings

And in a first for any coffeehouse in the world, we will also sell a catalog of glass artwork representative of our
store decor. We will act as the sales agent for a number of participating stained glass, and art glass artisans.

Design style
The interior design of witches brew is unlike any other coffeehouse chain. While there are some upscale designs,
they are all of the modern Italian or Starbucks look. Our upscale stylized witches Mediterranean Riviera design,
featuring stained glass decorations, art glasswork, differentiates us from all others.

Sales Strategy
Our sales strategy includes:
Staff salaries that are 10% above the industry average in order to attract the best people

Hiring for attitude so that we always have a friendly, enthusiastic staff to make customers feel welcome
and appreciated; constant staff training to assure the best quality possible

State-of-the-art sales/inventory system to (A) reduce customer waiting time, and (B) create efficient
product ordering

Create a mobile kiosk to take Dark Roast Java into the community at special events, farmer's markets, art
shows, etc.

Sell coffee, gift baskets and glass artwork on our website

Establish coffee service at local businesses

Sell gift cards, frequency cards, pre-paid cards, and offer discounts to key groups

Create an ongoing sampling program

Conduct a consistent, aggressive marketing program

Be an active member of the community; be visible at charitable functions

Solicit customer feedback to constantly improve and streamline our operation

Menu Card
The Future
The number of cp locations could easily reach 20 - 25 within five years. While the financials in this
Business Plan only address the Pleasantville location, we can extrapolate from the store's performance
(which will be carefully monitored and tracked) to get a general idea of the chain's projected profitability.
With ten coffeehouses the gross revenues, when fully realized, would be more than 10 million using the
third year performance figures. Even factoring in the cost of additional staff and other resources, a 10-store
chain would likely generate a minimum of 1 million in profits annually, while building significant
valuation. A 25-store chain would easily top 2.5 million in annual profits.
Cafs start-up, implementation and operation will be the "blueprint" for future efficient expansion.