Coffee with guitar

“Coffee With Music”

BUSINESS PLAN

Proprietors:
Abish Dahal

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Contents
1. Executive Summary
2. Business & Industry Profile
3. Organization & Insurance
4. Competition & buying patterns
5. Business Strategy
6. SWOT Analysis
7. Competitive Edge
8. Sales Strategy
9. Products & Services
10. Product Line
11. Organizational Structure
12. Marketing Strategies
13. Promotion Strategies
14. Positioning Strategies
15.Pricing
16.Cost Analysis
17.Mode of Payment

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 Executive Summary

Coffee and guitar is a new coffee shop in the Biratnagar City. The café will be known for
different flavors of coffee along with live music and facility to record songs. In addition,
light snacks and sandwiches will be offered to customers. The café establishment will play
modern music for ambiance and provide free wireless internet access for people to attract
professionals in the nearby business areas. The mission of Coffee and Guitar is to provide
high quality products and services in a warm and inviting environment with beautiful music.

The café will serve a variety of coffees, including gourmet blends, nestle and espresso.
Other available beverages, such as soda and juice, will also be available.

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 Business and Industry Profile

Description of the business:

Coffee and Guitar is determined to become a daily necessity for local coffee addicts and for
the youngsters who are addicted to play guitar in local tea shop, also Coffee and Guitar will
be 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 & roasted coffee and great service, Coffee and Guitar will capitalize on its
proximity to the Biratnagar people to build a core group of repeat customers. Coffee and
Guitar will offer its customers the best prepared coffee in the area that will be complimented
with pastries, biscuits, snaks as well as free books that its patrons can read to enjoy their
visit.

Industry Analysis:

A coffee business provides unbelievably high profit margins, more than most other types of
businesses. It is estimated that a cup of coffee can generate upwards of 50% in profit. The
great thing about a coffee business is that, though cyclical as people will consume less hot
drinks during the summer, it is nevertheless becoming more common for people to drink
coffee even in the summer.

Recent trends have shifted from ordinary coffee to more speciality coffees. This trend has
partly been emphasised by Starbucks, which recently announced a project to open 40,000
new stores worldwide. There is no doubt that new coffee culture is brewing and one that
bodes well for new entrants in the market.

Vision Statement:
The perfect cup with beautiful live music by artists.

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Mission Statement:
To provide a friendly, comfortable atmosphere where the customer can receive quality food,
service and entertainment at a reasonable price.
Keys to Success:
The keys to success will be:

 Store design that will be both visually attractive to customers, and designed for fast
and efficient operations.
 Employee training to insure the best coffee preparation techniques.

 Marketing strategies aimed to build a solid base of loyal customers, as well as

maximizing the sales of high margin products,

 Live music

Targeted Market and Customers:

Customers will be students, adults, Married peoples (males & females) and Employed
persons.

Location
The Coffee and Guitar will be located in the :
Biratnagar at Tintoliya Pipal Chowk
Location Criteria:

 2700 Square feet

 Open and clear road

 In a good society

 Have good location

 Less cost in the form of rent

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Competitive advantage

The main competitive advantage of the Coffee and Guitar is its menu and live music that
makes it different from others. No other café offers a full range of food, beverages, and
treats to go along with music. Coffee and Guitar will offer only the best quality products and
service to its customers. The Coffee and Guitar other competitive advantage is its location.

Buying Patterns:

The major reason for the customers to return to a specific Coffee with music is a great
tasting coffee, quick service and pleasant atmosphere. Although, as stated before, coffee
consumption is uniform across different income segments, Coffee with music 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.

Business Strategies:

Coffee and Guitar marketing strategy will be focused at getting new customers, retaining the
existing customers, getting customers to spend more and come back more often.
Establishing a loyal customer base is of a paramount importance since such customer core
will not only generate most of the sales but also will provide favorable referrals.

SWOT Analysis

Strength

High quality

Reasonable price

Best taste

Good location

Live music

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Weaknesses

Load shedding

No brand

Unawareness

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Opportunity

No direct competitor in the same area

Job opportunity for locals

Threat

Economic condition

Political instability

Local restaurants

Competitive Edge

Coffee with music will position itself as unique Coffee with music where its patrons can not
only enjoy a cup of perfectly brewed coffee but also spend their time in an ambient
environment. Comfortable sofas and chairs, dimmed light and quiet relaxing music will help
the customers to relax from the daily stresses and will differentiate Coffee with music from
incumbent competitors.

Focus on the quality of product and as well as customer satisfaction.

Warranties:

If the customer has a complaint, everything will be done to satisfy them. If that does not
work, the customer will be given their order free of charge.

Sales Strategy:

Coffee with music baristas will handle the sales transactions. To speed up the customer
service, at least two employees will be servicing clients--while one employee will be
preparing the customer's order, the other one will be taking care of the sales transaction.

In order to build up its client base, Coffee with music will use banners and fliers, utilize
customer referrals and cross-promotions with other businesses in the community. At the

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same time, customer retention programs will be used to make sure the customers are coming
back and spending more at the Coffee with music.

Products and Services

Coffee with music 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 store layout, menu listings and marketing activities will be focused on
maximizing the sales of higher margin. Along with the espresso drinks, brewed coffee and
teas, as well as some refreshment beverages, will be sold in the Coffee with music. Coffee
with music will also offer its clients pastries, small salads and sandwiches. For the gourmet
clientele that prefers to prepare its coffee at home, Coffee with music will also be selling
coffee beans.

Product Description

Coffee and Guitar will offer high quality coffee, tea, hot coca, and cappuccino, at a very
reasonable price.

We will also sell homemade cookies, brownies, and doughnuts, also reasonably priced.

Features

All drinks will be made with filtered water and the highest quality ingredients we can get.

Frozen drinks will have caramel or chocolate syrup drizzled in the glass and over the drink.
Cappuccino and hot coca will have whipped cream toppings as well as the option for candy
sprinkles. Cookies will have the option of a chocolate or caramel dip and sprinkles.

We will offer designer flavored cream and five kinds of sweeten, i.e. sugar, honey Equal,
Splenda, and Sweet-n-Low. Cream and sweetener is at no extra charge.
Uniqueness

The menu offerings will be supplemented by free books and magazines that customers can
read inside the Coffee with music.

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Product Line

Hot Coffee

Cappuccino Coffee

Dry Cappuccino

Black Coffee

Icy Coffee

Cold Coffee

Russian Coffee

Freeze dried coffee

Russian Tea

Green Tea

Simple Tea

Cold Tea

Cakes & Pasties

Snaks & Biscuits

Beverages

Organizational Structure

Our organizational structure will be a simple pyramid style with the owners putting in as
much work as the employees.

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Management Team:

It’s a partnership project. There are five persons who will manage all the responsibilities of
the Coffee with music.

Staffing:

We will hire two persons for home free delivery and two waitress, these will be recruited
from the local community.

Labor Market Issues:

In this area there are many students looking for work, part time or full time, we want to fill
their needs.

Regulatory Issues:

Somewhere in Nepal have regulations regarding food service establishments. We have

already obtained the appropriate business permits.

Marketing Strategies

Nepalese coffee consumption has shown steady growth, with gourmet coffee having the
strongest growth. Coffee drinkers in the Biratnagar and Kathmandu are among the most
demanding ones. They favor well-brewed gourmet coffee drinks and demand great service.
Coffee with music will strive to build a loyal customer base by offering a great tasting
coffee in a relaxing environment of its Coffee with music located at their location.
Market Segmentation:

Coffee with music will focus its marketing activities on reaching the students and faculty,
people working in offices located close to the Coffee with music and on sophisticated
teenagers. Our market research shows that these are the customer groups that are most likely
to buy coffee products.

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Target market
The customer will be between 15 to 55 years old.

Economic Profile:
Middle Class
Upper Middle Class
Privileged Class

Target Market Segment Strategy:

Coffee with music will cater to people who want to get their daily cup of great-tasting coffee
in a relaxing atmosphere in the arms of music. Such customers vary in age, although our
location close to the colleges & schools, parks means that most of our clientele will be
students and faculty or entertainment lovers.

Promotion Strategy

Coffee with music will use several ways to reach new customers. We will leverage
universities, community organizations, print ad, internet advertising and word of mouth.

Positioning Statement

For the community who needs a place to seek, have fun, relax, and enjoy quality beverages,
Coffee with music is a place to feel welcome, special, informed, and energized. Coffee with
music meets the needs of this market. Unlike the other coffee shops in the metro area,
Coffee with music has character and a purpose.

For the neighborhood, Coffee with music brings a positive message with a community
centered focus. This is a place where all are welcomed and embraced with a warm greeting
and hot coffee. The look and feel of the shop will ensure that anyone who walks through the
door feels right at home. We want our customers to learn about coffee, and experience
quality first hand.

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Pricing:
We have to take 30% profit of from each cup.
We have done extensive research regarding pricing for the Coffee. We have polled local and
regional cafes, as well as look at national statistics on coffee and sandwich pricing. Through
menu analysis, we have planned menu pricing accordingly. All prices take into consideration
the cost of material, 25% for food and 45% for beverages.

Coffee will be sold in three sizes, with prices ranging from Rs.40 to 100. Flavors will be
available at an additional charges.

Chocolate and Pineapple cakes will be sold by the half slice. Prices range from Rs.25 to 45.
Whole cakes will be available for purchase in a price range of Rs.250 to 1000.

Sandwiches will be sold for various prices, depending on the meat chosen. A veggie
sandwich will be the lowest priced sandwich at Rs.35.

All soft drinks and juices will be sold for different prices.
Cost

Products Price
Hot Coffee 40
Black Coffee 30
Roasted Coffee 110
Cappuccino Coffee 70
Dry Cappuccino Coffee 80
Russian Coffee 100
Icy Coffee 90
Cream Coffee 50
Cold Coffee 80
Dried Freeze Coffee 120
Normal Tea 15
Green Tea 50
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Russian Tea 70
Cold Tea 60
Feedback

The Coffee and Guitar will use two methods to measure customer satisfaction. They include:

Comment Cards:

With each purchase, customers will receive comment cards to fill out. The cards will have
questions about quality, speed of service, attitude of the employees, and overall satisfaction
from the experience.

Personal Interviews:

On a daily basis, we will stop and speak with customers to ask them about our food, drinks,
and service. We will give out 25% off coupons to people who give us "honest" answers.

Mode of Payment

Bank Loans- 60% of the capital

Self Financed -40% of the capital

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 Conclusion

Coffee with guitar is established in order to provide the residence of Biratnagar the original
taste of coffee along with live music also song recording facility for the singers at very
affordable price.

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