“The taste of Europe” is a coffee shop providing different varieties of coffee from Eastern Europe, Middle East as well as the most popular American coffee drinks.
- Company Goals - Short-term goal is to have as much as possible customers to come and try our drinks, and to make at least small amount of profit at the end of year. Also, to finish all the possible researches if a drive thru should be part of the service.
Long-term goal in next five years is to expand coffee shop at three different locations and possibly to get bigger place for coffee shop, so more people can come in and sit.
- Philosophy of this business is to try to make other cultures closer to the people in the US, and to give them opportunity to try something new and different.
- The most important thing in the beginning of the business is to get as much as possible customers and to have large amount of people to hear about new business, so advertising and marketing should be one of the priorities.
- On market the target group for this business would be basically people who love coffee. But more specifically, students and young people. That is the reason why location is on the biggest campus in Arizona. There is over 80000 students on ASU and lot of them are visiting this campus. Also, this part of the city is business oriented so there is lot of people working in the companies around. Our flexible work hours would attract many of them.
Company strengths and competition
- The biggest company straights are offering something new, having only one coffee products and investing lot of money in marketing and advertising. Also, the biggest difference between this company and other companies are the prices and offer of something different. People would not just come for coffee, they are going to be able to see lot of pictures inside from Eastern Europe, also they going to have opportunity to read about every type of coffee, from where is imported, how strong is it, what drinks we make with that type of coffee. Also, we would have “happy hour” and discounts for students.
Legal form of ownership
- This company will be organized as LLC (limited liability corporation), as this is my first business and it is starting as a small family business, this is the best option.
- Company will offer different varieties of traditional coffee, regular coffee iced or hot, frappe drinks, latte and espresso coffee, milkshakes, teas, “make your own coffee”, freshly squeezed orange and lemon juice, decaffeinated coffee, coffee with almond and coconut , for here and to go. Also, we would have different varieties of drinks during special events in the year.
- Our competitive advantage would be work hours, as we would be open weekly from 6am till 2am, and on the Sundays from 8am till midnight. Also, on finals week we would be open 24 hours.
- Price of any product would not go over $4 as our target groups are college students. If we make prices reasonable we would have more customers than some World popular coffee shops whose prices are too high for this group of people.
There are two ways to do marketing research, primary and secondary. For the primary, we counted how many students is coming to the school’s campus every day, what time of the day are busy hours, we did survey for a free drink if they would be interested to try something different than regular coffee.
For secondary research, we looked up online as how many coffee shops are around or close to us, what type of choice students have, what are the reviews on those places.
Our customers would be mostly students, age between 18 and 25, some of them athletes (one of the reasons why we are offering freshly squeezed juices), most of them having morning classes and about 30% of them living less than five miles around school. Also, the campus library is open every night until midnight, and sometimes even later, so lot of students would come for the coffee in the evenings. Also, we are expecting professors and other employees of the school to stop by in the mornings as well.
The biggest competition for our coffee shop would be Starbucks. that is located pretty close to the campus, and café-restaurant where students are getting their meals. But, as our marketing survey showed, lot of students already got tired of same tastes and drinks in Starbucks and for others their prices are overcharged so they cannot really afford it every day. Also, the restaurant is open only few hours during breakfast and lunch, so they don’t have a chance always to grab a coffee over there between their classes.
|Profit Loss Projection|
|Total Op. expenses||991||780|
|USD||Year 1||Year 2|
|Asset Worth Machines||346||660|
|Total Fixed Assets||496||810|
|Liabilities and Equity|
|Long Term Debt|
|Retained Earnings current||0||300|
|Total Owners Equity||700|
|Total Liabilities and Equity||502||1800|