Java Coffee Shop Business Plan Marketing Essay

umber berry Coffee Shop Business project Marketing Essay cocoa bean berry nicety coffee berry gin mill is driven to become a daily necessity for local coffee addicts, a place to dream of as you try to escape the daily stresses of emotional state andjust acomfortable place to meet your friends or to show up a book, all in one. With the growing demand for high- type gourmet coffee and with child(p) dish out, chocolate finish forget profit on its law of proximity to the University of surgery campus to build a core group of repeat customers.The gild will ope post a 2,300 squ ar foot coffee draw a blank within a walking distance from the University of surgery campus. The owners possess secured this kettle of fish through with(predicate) a three-year lease with an option for extending. The have also fork upd $140,000 of the needed $170,000 start-up funds. The stay capital will be obtained throughBank of the States commercial loans.The company is expected to gro w gross sales revenue from $584,000 in FY2001 to $706,000 in year three. As Java Culture will touch to maintain a 65% gross profit margin and fair(a) operating expenses,it will seenet profits grow from $100,000 to$125,000 during the very(prenominal) period.Java Culture coffee bar will be dictated on the ground root word of the commercial building at the break of West 13th Avenue and Patterson Street in Eugene, OR. The company has secured a one-year lease of the va behindt 2,500 square feet premises previously booked by a hair salon. The lease contract has an option of novelty for three historic period 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 cover office and a 2,300 square feet coffee bar, which will include a seating area with 15 tables, a kitchen, storage area and both bathrooms. The space in the coffee bar will be roughly distributed the following way1,260 square fe et (i.e., 55% of the union) 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 set(p) 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 neighborhood with the busy downtown commercial area. The commercially zoned premises have the necessary irrigate and electric automobileity hookups and will require only electric razor remodeling to accommodate the espresso bar,kitchen and storage area. The coffee interdict open and clean internal 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 plenty stub 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 el ectric signs will be aimed to grab the attention of the customer traffic.Java Culture will offer its customers the best tasting coffee beverages in the area. This will be achieved by using high-quality ingredients and strictly following preparation guidelines. The pedigree layout, menu listings and marketing activities will be focused on maximize the sales of higher margin espresso drinks. Along with the espresso drinks, brewed coffee and teas, as vigorous as some refreshment beverages, will be sold in the coffee bar. Java Culture will also offer its clients pastries, teensy salads and sandwiches. For the gourmet patronage that prefers to formulate its coffee at home, Java Culture will also be selling coffee beans.The menu of the Java Culture coffee bar will be built round 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 o f espresso, which is prepared in the espresso machine by forcing heated water through ground coffee at high pressure. much(prenominal) 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.U.S. coffee expending has shown steady growth, with gourmet coffee having the strongest growth. Coffee drinkers in the pacific northwest are among the most demanding ones. They favor well-brewed gourmet coffee drinks and demand great service. Eugene, OR, with its liberal and outgoing populace and long rainy winter, has traditionally been a great place for coffee establishments. Java Culture will filtrate to build a hard-core customer base by go a great tasting coffee in a relaxing environment of its coffee bar located close to the bustling University of Oregon campus.Java Culture will focus its marketing activities on scope the University students and faculty, people working in offices located close to the coffee bar and on sophisticated teenagers. Our market research shows that these are the customer groups that are most likely to buy gourmet coffee products. Since gourmet coffee consumption is universal across different income categories and mostly depends on the direct of higher education, proximity to the University of Oregon campus will provide access to the tar outfoxed customer audience.Java Culture will cater to people who want to get their daily cup of great-tasting coffee in a relaxing nimbus. Such customers vary in age, although our location close to the University campus means that most of our clientele will be college students and faculty. Our market research shows that theseare discerning customers that gravitate toward s better tasting coffee. Furthermore, a lot of college students consider coffee bars to be a convenient studying or meeting location, where they can read or meet with peers without the necessity to pay cover charges. For us, this will provide a unique possibility for building a loyal client base.Coffee consumption has shown a steady 2.5% growth rate in the United States over the last decade. In 1994, total sales of coffee were approximately $7.5 billion with gourmet coffee representing 33% (or $2.5 billion) of that. The sell coffee industry is flourishing in the U.S. Pacific Northwest. The local climate, with a long rainy season, is very conducive for the consumption of hot non-alcoholic beverages. At the same time, hot dry summers drive people into cafes to order iced drinks. Further, coffee has really become a part of the lifestyle in the Pacific Northwest. Its discerning coffee drinkers are in favor of well-prepared, strong coffee-based beverages, which they can consume in arela xing environment.According to the 1997 Oregon food for thought service Statistics (NAICS 72), Eugene had 45 established snack non-alcoholic beverage bars (NAICS 722213) with total sales of $14.2 million. Among other establishments that offer coffee drinks to their customers are most of Eugenes limited- and full-service restaurants. Java Cultures direct competitors will be other coffee bars located near the University of Oregon campus.These include Starbucks, Cafe Roma, The UO Bookstore, and other Food service establishments that offer coffee. Starbucks will decidedly be one of the major competitors because of its strong financial position and established marketing and operational practices. However, despite of Starbucks fix market position, many customers favor smaller, independent establishments that offer cozy atmosphere and good coffee at affordable prices. Cafe Roma is a good example of such competition.Despite the owners and managers experience in the definitely industry, t he company will retain the consulting services of ABC Espresso Services, the consultants who have helped to obtain the business idea for Java Culture. This company has over twenty years of experience in the retail coffee industry and has successfully undetermined dozens of coffee bars across the U.S. Consultants will be primarily used for market research, customer satisfaction surveys and to provide additional stimulus into the evaluation of the new business opportunities.Java Culture will capitalize on the strong demand for high-quality gourmet coffee. The owners have provided the company with qualified start-up capital. With successful management aimed at establishing and growing a loyal customer base, the company will see its net worth doubling in two years. Java Culture will maintain a full-blooded 65% gross margin, which combined with reasonable operating expenses, will provide enough cash to finance further growth.