|Coffee shop business plan. The 400 Coffee Shop is a Texas-based beverage producing enterprise that aims to address the needs of the United States coffee-lovers who have a wide spectrum of spiritual and emotional struggles.|
400 Coffee Shop Business Plan,
746 Mockingbird Ln, off Toll road, TX 75229, USA
3rd December 2018.
Mrs. Johnston Faraday,
The Branch Manager,
The Neighbourhood Credit Union,
8344 E R L Thornton Fwy #110, Dallas, TX 75228, USA
Dear Mrs. Fara
REF: APPLICATION FOR A BUSINESS START-UP LOAN FOR THE 400 COFFEE SHOP
Following the 7th annual call for business plans, I hereby present a well-outlined Coffee Shop Business Plan the 400 Coffee Shop. Kindly, this is to notify that I am sending a Coffee Shop Business Plan for the 400 Coffee Shop start-up businesses for your perusal and consideration for a start-up loan.
The 400 Coffee Shop business is inspired by the need to provide the Dallas-Fort Worth society with healthy non-GMO to bring together groups of remarkable people with a wide range of shared experiential learning to enlighten other Christians that are struggling to hold a grip to the ways of Christian Faith. It is perceived as a necessary approach to fostering a sense of commonality in worshipping, people’s development, and moral reinforcement at large.
The business is designed to operate in the coffee and ready-to-drink coffee industry. CSR initiatives are purposely included to help farmers to sell and other stakeholders who are conscious of wealthy eating and godliness as a weapon to problem-solving.
The thousand-dollar idea is projected to break-even after $230,018 sales, which translates into a 23% annual growth rate on profitability and returns on investments (ROI).
This application seeks your hand in facilitation to achieve the prior-set corporate goals and mission. Your consideration toward raising the $1,000 loan is treasured and appreciated in advance. Thank you for receiving the proposed Coffee Shop Business Plan. I am looking forward to hearing from you soon.
Dr. Kathryn Stephenson,
(Chief Executive Officer at 400 Coffee Shop Ltd. Company).
400 Coffee Shop Business Plan
The 400 Coffee Shop is a Texas-based beverage producing enterprise that aims to address the needs of the United States coffee-lovers who have a wide spectrum of spiritual and emotional struggles. They are encouraged to converge in support groups for guidance and counseling in regard to the need to strengthen their Christian Faith for the betterment of the quality of life in general. The business is inspired by the need to address the prevalent social problems in the United States, which require religious cleansing to restore moral standards.
Policies and regulations that are admissible in a court of law have failed to single-handedly correct stray behaviors such as crime, terrorist attacks, sexual immorality, and corruption. The 400 business incorporates healthy eating techniques through the production of purely fresh non-GMO coffee products that meet the personal development needs of the target customers based on a shared Christian experience. The enterprise welcomes customers to talks, worshipping events, charity programs, and self-support groups to strengthen the Christian Faith.
In addition, 400 pursues its business goal by enacting the corporate social responsibility and the extensive 3P’s marketing strategy (planet-people-profitability) to ensure sustainable development. It is an ambassador of goodwill and environmental protection to lure the association of influential stakeholders in its trading environment. Concisely, its projected success is founded on the uniqueness of the products as well as operational strategies to sustain a pool of buyers on the account of 100% customer satisfaction.
400 Coffee Shop Business Plan
The 400 Coffee Shop runs a chain of Christian based coffee restaurants in the Dallas-Fort Worth region. It is headquartered in Dallas, Texas. The name ‘400’ is a symbolic representation of the peregrination of the Christians life as descendants of Abraham according to the Biblical verses (Genesis 15:13; Acts 7:6). It is a reminder to the Christian brothers and sisters of some of the expectations of life amid their spiritual growth and pursuance of goals in Christian Faith, especially in the Dallas-Fort Worth region in Texas State.
400 Coffee Shop’s Chief Executive, Dr. Kathryn Stephenson, has envisioned the business as a world-class center of Christian Faith and Unity, through the provision of freshly brewed healthy coffee with an aim to promote the spread of the gospel of Christ across inter-state and international borders.
The business seeks to coordinate efforts among the producers of non-GMO fresh coffee beans to provide the Dallas-Fort Worth Christian community with freshly brewed coffee brands in an attempt to leverage the American coffee-loving culture with the interests of the Christians for the pursuance of a common goal. The business is entirely founded on the need to support the spread of the gospel to nations and individuals by use of a quality healthy coffee consumption experience and culture to unite reach out to the people.
Amid the support for spiritual growth among the Texas Christian community, the 400 Coffee Shop aims to remind the people of the Biblical standards of a truly righteous Christian. The business focuses on the community development in which charity programs and others-centered support initiatives are prioritized to other profit-making dealings.
However, for the sake of sustainability of the business, the 400 Coffee Shop seeks to expand its market share and brand popularity by about 40% in the Dallas-Fort Worth coffee & ready-to-drink coffee industry within one fiscal year as manifested in the volumes of sales. Further, it aims to attain a consistently rising growth rate of about 13% per annum owing to the establishment of more coffee shops in the region, state, and country, at large. These goals are aligned with the Christian outreach targets for the Dallas-Fort Worth-based Christian ministries and churches.
The 400 Coffee Shop Company was formed in December 2018 by the founding C.E.O and owner, Dr. Kathryn Stephenson. She is a holder of 2 Masters’ Degrees in Entrepreneurial Development and Theological Studies. In addition, she has acquired a Doctor of Philosophy Degree in Business Management & Administration. During the previous employment as the Vice President of an international Non-profit organization, Dr. Kathryn managed to network with potential stakeholders (investors, credit organizations, suppliers & distributors, and promoters) who were willing to support and associate with the proposed 400 Coffee Shop business.
Her idea of the 400 Coffee Shop was inspired by the need to promote positive embrace of the Christian Faith in the region for the sake of cleansing the contemporary twenty-first-century generation, which through prevalent crimes and Biblical sins, has broadly diverted from the Christian foundation that is depicted by the righteous life of Jesus Christ. Notably, coffee is one of the most commonly consumed beverages among the United States communities. It is able to bring together teams of remarkable followers that could aid spread the Word of God for the salvation of mankind on account of the capacity to lead an exemplary Christ-like life.
The 400 Coffee Shop offers a wide range of coffee drinks that are prepared from freshly brewed non-GMO coffee beans. Through consultation from professional dieticians, the 400 Coffee Shop is able to offer its customers top-quality coffee beverages that are purposely prepared to keep Christians alert and united on account of salvaging the society through the gospel of Christ. In addition, the managers have a duty to engage coffee farmers from various parts of the United States and exporters to source purely non-GMO coffee beans that are prepared according to health directives to check the stimulating effect.
The products are segmented into two main classes depending on the type of coffee beans used, Robusta and Arabica. Further product classes include Excelsa, Sumatran, and Liberica flavors. Each of the coffee products is served in various ways (Cappuccino, white coffee, Espresso, black coffee, Café Latte, Mochaccino, and Macchiato) to suit the diverse needs and preference among consumers. Other services offerings include conferencing, event management and planning, and outdoor crusading to promote the activities of Christian churches and groups around the market region.
The 400 Coffee Shop business is designed to operate in the coffee & ready-to-drink coffee industry. The coffee & ready-to-drink coffee industry in the Dallas-Fort Worth region is highly popular and fast-growing. According to Cision PR Newswire (2018), the industry registered revenue of more than $14.50 Billion in the year ending December 31st, 2017. This industrial performance represents about 9% annual growth as compared to 2016. The industrial sales are projected at about $18.25 Billion by 2022.
Further, for the past five years, there is a growing likability toward healthy eating among industrial consumers in general. Companies such as Nestle, Brooklyn Roasting Company, and Sweetwater Organic Coffee Co. have registered significant growth in sales due to the inclusion of organic beverages in the product line (Cision PR Newswire, 2018).
However, very few of established and entrant coffee shops are to operate on the same standards as 400 Coffee Shop, which distinguishes its business by offering Church-driven services to emancipate the people from the prevalent nonreligious behaviors in the American and global societies. 400 Coffee Shop stands an opportunity to utilize the market opportunity to enhance gospel awareness and Christian Faith reinforcing in lieu of the unaddressed prevalent social crimes that are ungodly.
The 400 Coffee Shop business targets all members of the host Dallas-Fort Worth regional and foreign communities. It is a place where the people are welcomed to share experiences and teachings of life in an attempt to advocate for a Christ-like life amid the prevalent sufferings, hardships, and challenging issues in the contemporary society. A warm welcoming cup of coffee is served to the participants at a small fee to foster a healthy eating culture that is founded on a strong Christian Faith to guide self and others toward achieving the purpose of life.
It is technically centered on the interests of the community with an aim to ensure effective personal development and spiritual growth using coffee as a culture-based luring and uniting commodity. The business is dedicated to providing a wide range of non-GMO coffee products and drinks to meet the needs of the emotionally-struggling groups that are also health-conscious when it comes to making to making consumption decisions.
This group of customers entails young families, individuals, and older families which are faced with day-to-day challenges whilst seeking to find their spiritual destiny. Its marketing activities focus on luring children between the age of 8 and 17, and adults between ages 18 and 55, as well as the older generation. Also, the consumers encompass both genders. Different outreach groups are encouraged to address the equal needs of the target customers. High-quality coffee and delicacies are served to cordially enhance a welcoming customer experience. The Dallas-Fort Worth region represents 13 counties, which are well-known for a rich cultural and economic hub in Northern Texas. Generally, Texas is one of the most populated states in the US with a majority of the counties that lie within the Dallas-Fort Worth region.
The metropolitan market area has a population of about 7.2 million, about 2% population growth rate, and a median age of about 34 years (US Data, 2018). In addition, the regional median household revenue is about $63,800, which is a 3.5% increase from the previous fiscal year 2015-2016 (US Data, 2018). Notably, more than 50% of the population is employed (3.5 million) while the value of property grows at approximately 9.8% per annum with a medium value of $190,000. This data put the poverty rate at 12% (US Data, 2018).
400 Coffee Shop faces competition from Paris Coffee Shop, Ampersand, and Society Coffee, which trade within the Dallas-Fort Worth region. Paris Coffee Shop is the biggest seller of coffee drinks in the region. The restaurant offers breakfast and lunch services with a wide spectrum of dessert cuisine that specializes in pies.
It is commonly referred to as the ‘old time’ coffee shop in the region offering a wide range of regular coffee brands. Paris Coffee Shop offers a conventional touch of the American home-based breakfast to the targeted customers. It markets through public display posters, print media, and social media platforms such as Facebook and Twitter.
To distinguish from the Paris Coffee Shop and other competitors, which are offering alternative coffee and snacks to the same consumer population targeted by the 400 Coffee Shop, Dr. Kathryn insists on the brewing of purely organic coffee beans and preparation of the coffee products with the guide of professional nutritionists and dieticians to focus on building Christian brotherhood and sisterhood in the community.
400 goes ahead to distinguish its business further from competitors by incorporating social and community development programs such as worshiping, Church groups, guidance and counseling, and Biblical interaction to support the moral and spiritual being community desired for the Dallas-Fort Worth people.
Technically, the 400 applies a corporate social responsibility (CSR) initiative in the marketing technique to lure customers and potential stakeholders on grounds of a goodwill reputation. According to Lund-Thomsen, Lindgreen, and Vanhamme (2016), corporate social responsibility programs befit community-based businesses as the strategy helps coordinate efforts and resources for the betterment of all. Further, it has a positive impact on the brand equity since it leads to a desire to want to associate with the business through purchasing the marketed products or utilizing the services offered at a fee.
The CSR will help the 400 Coffee Shop to develop links and networks within the market region through engagement and interacting with the people who make up the essential stakeholders that drive success (Lund-Thomsen, Lindgreen, & Vanhamme , 2016). By interacting with the people via the CSR initiatives, the 400 workforce will be in a better position to discern the consumption needs of the coffee lovers who are part of the targeted Christian Faith (Mishra & Modi, 2016).
This information is critical for informing product designing decisions in an attempt to sustain a top-selling position. The 400 Coffee Shop has put itself into by adopting a differentiated approach to brewing, marketing, and selling of coffee products and the associated snacks such as cakes, bans, and organic confectioneries (Mishra & Modi, 2016).
In addition, the 400 will adopt media advertisement and social media marketing to reach out to the potential buyers and stakeholders across the Dallas-Fort Worth market region. A message of “healthy organic coffee for a stronger Christian Faith with the 400 coffee” will be spread from television networks such as ABC, Justice Network, and AccuWeather.
A one-minute ad will be aired during prime hours as commercials amid sponsored family programs and news. It will enable a successful reach out to a larger number of viewers from the Dallas-Fort Worth market region to lure their coffee consumption decisions.
Notably, the business will adopt a 3P’s marketing approach to address the interests of the people, the environment, and its profitability. As a result, coffee products will be packaged in biodegradable wrapping materials as a gesture of advocacy for environmental protection and conservation (Taubitz, 2010).
In addition, it is key to maintaining an all-around organic business. Other sustainable business approaches to the 400 business dealings include the use of alternative source of energy (solar), responsible dumping, and active participation in the cleaning of the cities around the Dallas-Fort Worth market region.
The informed use of the social media platforms such as Facebook, Twitter, and Instagram is also expected to reach out to the youth consumers who are vibrant and influenced by social media content owing to source credibility theory in internet use (Djafarova & Rushworth, 2017). In this essence, the 400 will seek the hand of Christian celebrities such as movie stars and musicians from the gospel arena to influence the target customers toward buying and associating with the activities that take place at the 400 Coffee Shops (Mikuláš & Světlík, 2016).
The 400 Coffee Shop will sell its coffee products at a constant price of $ 4.00 per 4 people group of customers and $1.32 for a 500 mL glass of fresh non-GMO coffee when ordered individually. This discounted sales criterion is aimed to encourage group work and family gatherings during the coffee serving hours. Also, coffee will be served for 24 hours in 6 days a week to maximize the chances of addressing the needs of the customers. This is a clear differentiation from the rival (Paris Coffee Shop), which sells only serves coffee for breakfast and lunch (between 6 a.m. and 2 p.m.).
The 400 Coffee Shop intends to offer a unique class of fresh healthy coffee products to a majority of consumers from the Christian Faith. This Coffee Shop Business Plan is inspired by the need to ensure the people are capable of achieving their life goals in the spirit of religion through the help of moral support groups and guiding and counseling. 400 differentiate through routine marketing research to inform corporate decisions based on the needs and expectations of the Christ-conscious customer base. This is critical for enhancing 100% customer satisfaction.
Notably, the organic business model requires an effective application of the right skills and competencies through research and innovation to nurture the workforce toward corporate goal attainment (Lessem & Schieffer, 2016). The 400 team managers will adopt and embrace an inclusive transformational leadership style to develop responsible, innovative, and creative talents and leaders whose skills befit the need for effective problem-solving at the workplace.
If effective, inclusive transformational leadership styles can revolutionize the way a business functions by improving the interactions between core stakeholders in an organization (Caniëls, Semeijn, and Renders, 2018). It also encouraged the upholding of the appropriate shared values that define the desired organizational culture (Ashikali & Groeneveld, 2015).
The 400 Coffee Shop business is registered in accordance with the Texas business registration law for for-profit enterprises. It is licensed under Dr. Kathryn, the original patent holder, and owner, as a multi-partnership business that encompasses other investors who are entitled to a percentage of ownership and control in the business. It adopts a mechanistic organizational structure whereby there is centralization of power to make decisions.
This structure is designed to foster accountability and responsiveness amid the strict bureaucracies that aim to address the potential issue of high cost of quality (Ambrose & Schminke, 2003). Figure 1 below shows 400 Coffee Shop Business Plan’s overall structure. Communication across the organizational hierarchy is facilitated through an online enterprise resource planning (ERP) program that enables the use of authenticated public and private access keys to protect and disseminate information and data.
The 400 business relies on the accurate execution of strategic directives given by the managers. Coffee production and ERP management sections require critical use of informed skills and relevant knowledge to business success. The managers also require technical, managerial, and soft skills to cope with the workplace challenges that require effective and timely problem-solving (Lessem & Schieffer, 2016).
The 400 business is supplemented by external forces that facilitate production and sales. For instance, the coffee beans suppliers are influential role-players to the operations of the 400 depending on the consistency of quality of supplies. Similarly, other businesses such as promoters and media advertisers are part of the 400 when it comes to coordinating efforts to achieve the prior-set goals and objectives. The 400 management emphasizes the adoption of the stakeholder’s theory in practice to contain the brand influence this supplemental personnel has on goal attainment (Strand & Freeman, 2015).
400 Coffee has established its coffee retail outlets in easily accessible areas around shopping malls, gas stations, and around social amenities such as markets and churches to guarantee the customers of accessibility. Other coffee shops are located along foot lanes in urban areas. Further, with the help of the ERP system, the 400 intends to expand into the e-commerce segment whereby coffee products can be ordered online and delivered at the convenient places preferred by the customers.
As the 400 Coffee Shop is positioned as a top-selling coffee restaurant in the Dallas-Fort Worth market, it is considered a viable $ 1 000 idea that will break-even after $ 230,018 sales. However, it is notable that there is an intense competition in the regional coffee & ready-to-drink coffee industry. It calls for proper financial planning based on consumer behavior information to address the potential financial shortage owing to misinformed investment and reinvestment decisions. Managers must track down key performance indicators (KPI’s) as the corporate accepted metrics of measuring strategic performance and progress (Clegg, Kornberger, and Pitsis, 2015).
The 400 Coffee Shop is designed to exploit the market opportunity which is caused by the growing trend in consuming healthy coffee, the American coffee consumption culture, and the needs for the entire American society to seek knowledge about Jesus Christ for guidance to solving life challenges in the course of their peregrination.
Table 1: 400 Coffee Shop Business Plan’s Income Statement
|400 Coffee Shop Income Statement For the year ending December 2019|
|Item # (Financial Parameter)||Amount ($)|
|Cost of sold products||$109,123|
|Gross profit value||$102,546|
|Administrative and selling expenses||$67,463|
|Operating profit (EBIT)||$74,800|
|Earnings before taxes (EBT)||$178,985|
|Earnings on Common Shareholders||$112,367|
|Owner draw or Dividend||$23,116|
Table 2: Coffee Shop Business Plan’s cash flow analysis and projections
|400 Coffee Shop Quarterly Cash Flow Analysis for the year ending 31st Dec 2019 (million)|
|Financial parameter||1st quarter||2nd Quarter||3rd quarter||4th quarter|
|opening cash||$ 1600|
|sales on goods||$456||$ 1780|
|Payments on delivery||$1500|
|Quarterly net cash flow||$92||$136||$943|
|Cumulative cash flow||$566||$658||$794||$149|
Table 3: Coffee Shop Business Plan’s Balance Sheet
|400 Coffee Shop Consolidative Balance Sheets (values expressed in millions except per share information)|
|Financial parameter||Year ending 31 Dec 2019||Year ending 31st Dec 2020|
|Cash and its equivalents||$ 34,563||$38,628|
|Total Current Assets||$ 66,564||$83,763|
|Equipment and Property||$16,456||$24,512|
|other assets||$ 23,167||$31,882|
|Liabilities and Stockholder’s equity|
|Accrued expenses||$3,456||$ 1,326|
|Total current liabilities||$26,912||$ 18,569|
|Other liabilities (long-term)||$5,567||$3,245|
|contingencies and commitments||_ _|
|Extra paid-in cash||$14,267||$13,678|
|Retained earnings||$89,736||$ 115,256|
|Total stockholder equity||$63,378||$160,306|
|Total stockholder equity and total liabilities||$ 90,290||$178,875|
Ostensibly, about 20% of coffee products will be sold on credit, which will be expected to clear payments within 30 days. When it comes to personnel and human resources, about $ 5,000 is expected to be spent on each salaried professional employee per annum whereas $ about $ 350 will be channeled toward wages for the hourly and part-time employees.
It follows that a presumed rising rate of about 8% applies on employee benefits and incentives, approximately 3% increase in employee wages, and that about 24% of the corporate revenues will go to employee remunerations. The business will start its operations with a $ 16,000 opening balance in the bank account that accrues interests at the rate of 1%. Further, about 25% is expected to cater for taxes.
|Activity/Item||Period of Operation|
|Quarter 1-2019||Quarter 2-2019||Quarter 3-2019||Quarter 4-2019|
|Recruitment & Hiring|
|Procurement analysis and contracting of suppliers|
|strategic analysis and evaluation|
|Marketing (social media, advertisement, & CSR).|
|Research, development, & improvements|
|Financial & Strategic reporting|
Figure 2: A Gantt chart showing the timeline for the 400 Coffee Shop business start-up process for the 1st fiscal year.
Ambrose, M. L., & Schminke, M. (2003). Organization structure as a moderator of the relationship between procedural justice, interactional justice, perceived organizational support, and supervisory trust. Journal of applied psychology, 88(2), 295.
Ashikali, T., & Groeneveld, S. (2015). Diversity management in public organizations and its effect on employees’ affective commitment: The role of transformational leadership and the inclusiveness of the organizational culture. Review of Public Personnel Administration, 35(2), 146-168.
Caniëls, M. C., Semeijn, J. H., & Renders, I. H. (2018). Mind the mindset! The interaction of proactive personality, transformational leadership and growth mindset for engagement at work. Career Development International, 23(1), 48-66.
Cision PR Newswire. (2018). Beverage Market in the United States: Analysis 2012-2017 with Forecasts to 2022. Retrieved from https://www.prnewswire.com/news-releases/beverage-market-in-the-united-states-analysis-2012-2017-with-forecasts-to-2022-300629493.html
Clegg, S. R., Kornberger, M., & Pitsis, T. (2015). Managing and organizations: An introduction to theory and practice. Thousand Oaks, CA: Sage.
Djafarova, E., & Rushworth, C. (2017). Exploring the credibility of online celebrities’ Instagram profiles in influencing the purchase decisions of young female users. Computers in Human Behavior, 68, 1-7.
Lessem, R., & Schieffer, A. (2016). Integral research and innovation: Transforming enterprise and society. Abingdon-On-Thames: Routledge.
Lund-Thomsen, P., Lindgreen, A., & Vanhamme, J. (2016). Industrial clusters and corporate social responsibility in developing countries: what we know, what we do not know, and what we need to know. Journal of Business Ethics, 133(1), 9-24.
Mikuláš, P., & Světlík, J. (2016). Execution of advertising and celebrity endorsement. Communication Today, 7(1).
Mishra, S., & Modi, S. B. (2016). Corporate social responsibility and shareholder wealth: The role of marketing capability. Journal of Marketing, 80(1), 26-46.
Strand, R., & Freeman, R. E. (2015). Scandinavian cooperative advantage: The theory and practice of stakeholder engagement in Scandinavia. Journal of business ethics, 127(1), 65-85.
Taubitz, M. A. (2010). Lean, Green &Safe: Integrating Safety into the Lean, Green and Sustainability Movement. Professional Safety, 55(05), 39-46.
US Data. (2018). Dallas-Fort Worth-Arlington, TX Metro Area. Retrieved from https://datausa.io/profile/geo/dallas-fort-worth-arlington-tx-metro-area/#intro
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