Coffee Chain Store Plan Practical Tools

Table of contents

1. Investment objectives and tasks

1. Investment objectives

2. Investment tasks

3. The key to success

II. Introduction to the Investor

1. Nature of the investor

2. Introduction of shareholders

3. Operational model

3. Products and Services

1. Product and Service Description

2. Competitive comparison

3. Resources and technology

4. Future product and service plans

4. Market Analysis

1. Market demand

2. Industry development trends

3. Competition Analysis

4. Analysis of existing store operations

5. Summary 6. Success Case Reference

1. Investment objectives and tasks

1. Investment objectives:

It has become a leading brand coffee shop and fashionable consumption place in the region that focuses on business and leisure while taking into account sentimental consumption.

The total investment cost will be recovered in about 3 years and the company will gradually start to make a profit.

2. Investment tasks

(1) To provide a stable and ideal investment channel for capital and provide stable and reasonable income for owners of investment sites.

(2) Successfully complete the construction and development of brand stores and gradually generate returns on the invested capital.

(3) Make rational use of existing venues, leverage the advantages of a brand store to enhance the image of the hotel and Tianchi Hotel, increase the hotel’s visibility and customer base, and achieve a win-win situation.

3. The key to success

(1) Good cooperation between investors and owners to maximize the combined advantages of both parties’ resources.

(2) Sufficient market demand and active and effective promotion plans.

(3) Location. The location of a coffee shop must have a beautiful environment (such as Nanshan Road) or a well-established business district (generally speaking, drinking coffee is a form of recreational and communication activity, and typical areas include shopping malls, cinemas, high-end communities, office buildings, and universities). At least one of the two must be present.

II. Introduction to the Investor

1. Nature of the investor

Individual investors who cooperate in the form of joint-stock system. The property rights and responsibilities are clear, the operation mode is flexible, and it is convenient to handle the cooperation matters of investors and owners.

2. Introduction of shareholders

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3. Operational model

Franchise store format. Partner: ×× Coffee. ×× Coffee was founded in Taiwan in 1968 and has a history of more than 30 years. It has developed more than 400 coffee shops to join. ×× Coffee shops continue to attract franchise investors from all over the country with its strong brand effect. ×× Coffee headquarters has very strict requirements on the business location selected by franchisees. Considering the characteristics of ×× Coffee as a business and leisure coffee store, it is recommended that franchisees choose locations in high-end office buildings, CBD business districts, high-tech parks or other places with market gaps; the business area of ​​franchise stores should be no less than 300 square meters; unified decoration style and unified products; the headquarters provides technical support (including personnel training) and product (coffee beans, tea) distribution.

3. Products and Services

1. Product and Service Description

It sells coffee, tea, beverages, alcohol, food, light meals and other commodities, and provides customers with excellent environment and services, allowing consumers to show their taste, experience culture and express their emotions, making the coffee shop a good place for business leisure and couples gathering.

It is also important that these businesses do not directly conflict with the hotel's business, but can complement the hotel's customer base advantages.

2. Competitive comparison

The competition among peers in this region is favorable to us. It is mainly some small-scale coffee shops with certain characteristics.

Coffee shop.

Relatively speaking, our ×× franchise stores have considerable advantages in terms of brand appeal, management level, product and service quality, scale and financial advantages.

The fashion and taste of coffee shops determine that their emotional consumption accounts for a large proportion, and consumers are very concerned about brand and grade factors. This can also explain why many consumers prefer to go to the city center to find coffee shops instead of going far away.

3. Resources and technology

Coffee shops are an industry that requires scale and quality, and also an industry that has strict requirements on products and services.

After all, it carries a high-consumption connotation, and consumers must care about the full reflection of their consumption value.

To achieve these, investors have high requirements for resources and technology. Investors who choose to join the franchise model can obtain sufficient resources, advanced equipment and technology on the one hand, and avoid many business risks on the other hand.

4. Future product and service plans

With the development of our store and the changes in the surrounding environment, our products and services will continue to improve, including more comprehensive products, better quality and more humane services. This franchise store will continue to improve with the support of ×× and its own efforts.

At the same time, within the foreseeable time and during the cooperation period with your owner, our store will stick to the coffee shop business and will not make any other changes.

4. Market Analysis

1. Market demand

The consumption demand of our store is quite sufficient. On the one hand, there are stable old customers here, and on the other hand, although there is no beautiful natural environment here, there is a relatively stable business district.

(1) Stable old customer resources. The original attendance rate of "Omer" was about 60%, and the crowd was relatively stable. After the new brand store was completed, these consumers became natural customer resources. They would not be lost to brand stores with more appeal and better products and services.

(2) Customer sources for office buildings and hotels.

(3) Shopping and entertainment venues. XXXXXXXXXXX

(4) Mature residential areas and high-end residential areas in the west of the city. Cuiyuan District 1-5, Tianhu Apartment, South China New Town, Lakeside Garden, Jindu Garden, Nandu Garden, Vienna Spring, Osmanthus City Phase 1 and 2, Langgui Apartment, Nandu Dejia, Zigui Apartment, Yijing Garden, Nandu Ginza, Xingyu Garden, Huayuan Apartment, New Jindu City Huayuan, etc.

(5) UTStarcom, the largest foreign-invested enterprise in Hangzhou, and numerous IT enterprises, advertising companies and other emerging industries in the region.

(6) There are many schools and colleges in this area, including Hangzhou Business College, Hangzhou Medical College, Zhejiang Engineering College, Hangzhou Electronics College, Zhejiang University of Finance and Economics, Hangzhou Normal University, etc. The faculty and staff and student couples are also potential customers.

In general, there are enough target consumers here, but there is a lack of large-scale coffee shops with brand appeal. The emergence of ×× Tianchi store can fill this market gap.

2. Industry development trends

(1) The coffee consumption market has developed rapidly and has become a major trend in urban consumption. The early stage of market cultivation has been completed. International coffee companies such as Nestle, Maxwell House, and Columbia have set up branches or factories in China. According to a survey in 12 inland cities, 32% of urban residents drink coffee. In addition to Shanghai, other regions where the proportion of people who have drunk instant coffee in the past year is more than 30% include Kunming, Xiamen, Hangzhou, and Tianjin.

(2) The taste of coffee consumers is getting higher and higher. The charm of culture is the charm of the market. Instant coffee alone is far from meeting the demand. Consumers are beginning to recognize the brand and style of coffee and know how to enjoy the fun brought by coffee. "Specialty coffee" is undoubtedly the mainstream of the entire coffee industry now, and it is developing rapidly. The rapid development of the coffee market is inseparable from consumers' natural interest in Western culture.

(3) Education level, monthly household income, and frequency of coffee drinking are significantly positively correlated, which means that coffee, a beverage introduced from the West, is a symbol of the lifestyle of the upper class in mainland China.

(4) Competition within the industry and with related industries is becoming increasingly fierce. There are more and more coffee shops in Hangzhou. At the same time, tea and various beverages are related substitutes for coffee. For example, bubble milk tea is based on traditional Chinese tea, but has a brand new appearance and taste, which has brought about an important change in people's understanding of Chinese tea. The competition between tea and coffee will be fierce.

3. Competition Analysis

(1) Indirect competition with strong brand stores. There are currently more than 150 coffee shops in Hangzhou. Among them, there are 4 Starbucks Coffee, Coffee Beanery West Lake Tiandi store from the United States, 2 Manabe Coffee from Japan, including the existing ×× (cross-strait) franchise stores and the specialty store on Nanshan Road. In the early stages of the development of the Tianchi store, the surrounding customer base will be diverted by these indirect competitors.

(2) Direct competitors. Some specialty coffee shops in this area, such as Taiwan Zhuangji Coffee (Wenxin Road), Fashion Coffee (Xueyuan Road), Boxcafé (Wenxin Road), etc., are not too large in scale, have certain characteristics, and have good environment and coffee taste. These shops are still competitive in terms of leisure and entertainment.

4. Analysis of existing store operations

(1) Current business status:

There are 40 tables in total and 170 seats. The occupancy rate is about 50% at 9:00 pm and the turnover is about 4,000 yuan / day.

(2) Reasons for unsuccessful operation:

① Brand factors. Coffee consumption is highly dependent on brands. Consumers not only consume products such as coffee, but also want to show their taste, experience a culture, and place their emotions. This is why consumers are willing to pay dozens of yuan for a small cup of coffee. However, "Omer" lacks connotation and looks ordinary, which makes it difficult to meet consumers' high-level needs, especially in business and communication.

② Management factors: Lack of advanced, standardized, and systematic management concepts and methods, average service levels, and difficulty in improving services, which prevents consumers from fully realizing their consumption value.

③ Product factors. Product quality is the foundation of brand and sales, but the original store's product variety was single and bland, making it difficult to meet the various needs of consumers.

④ Sales awareness. We did not actively seek and stabilize customer resources, but basically waited for opportunities. This resulted in the store's attendance rate being low.

5. Summary

From the perspective of the entire market environment, ×× Tianchichi store has a stable target consumer group; the trend of the entire coffee consumption industry is also on an upward trend; there is no direct competition from strong competitors for the time being; the failure of the original store was not due to the address.

Therefore, there is a gap in the market. As long as we seize the opportunity, make full use of the brand appeal and resource support of ×× Coffee, strengthen the cooperation between investors and owners, actively promote, quickly establish the popularity and reputation of ×× Tianchi store, win back diverted customers, and establish brand advantages over small specialty stores in the region, ×× Coffee XX store can achieve stable growth and profitability within the investment planning time.

6. Successful Case Studies

Note: Although the investment and scale of the coffee shop in the following case are somewhat different from our store, the geographical environment of this small shop is similar to our store and it has achieved success. This shows that as long as the location is properly selected, the management is good, the positioning is accurate, and the promotion is effective, it is not difficult for a coffee shop to achieve good profits. Because the situation is different, this case is for reference only.

Project name: Dream Traveler Cafe

Business items: coffee + drinks + simple meals

Store location: Not in the city center, similar to the geographical environment of this store (Tianchi××).

Area: 30 square meters

Initial capital investment: RMB 100,000 Time to recover investment: 8 months

Investment and Return

Investment: "Dream Traveler" initially invested 100,000 yuan, including 40,000 yuan in rent, equipment, staff wages, decoration, products, etc. Of course, there are often some invisible and unexpected expenses in the operation process, such as purchasing related books.

In addition, costs must be strictly controlled. For example, a bag of medium-to-high-quality coffee beans weighs 1 jin and sells for about 100 to 200 yuan. Each bag of coffee beans can brew about 50 to 70 cups of coffee. The cost of coffee beans for one cup of coffee is about 3 yuan. In addition, rent, equipment investment, product investment, personnel expenses, water and electricity costs, etc. should also be considered (depreciation factors are not taken into account, and if the depreciation amount is large, it should also be considered).

Income: Each cup of coffee here is priced at about 20 yuan, and drinks and Western food are also sold. Coffee income accounts for about 30% of the turnover. There are about 40 people every day, and the average consumption per person is about 30 yuan.

Operation and promotion

Sketch of a coffee shop: 30 square meters to vent freedom . Although the decoration of "Dream Traveler" is simple, it has a special home flavor, even warmer and more relaxing than home. The north wall is full of bookshelves, which are filled with various books in a mess, just like a small library. Guests can pick up a book to read at will. The east wall is the most distinctive. The entire white wall from the roof to the ground is graffitied. It is all impromptu works of guests, including paintings and texts, mostly related to emotions and life. It is called an emotional venting place. The windowsill is very low, covered with various magazines. There are only two small square tables near the window, which can only seat 4 people. The whole room can accommodate more than ten people. It is really too small, but the air, light and sound here are more fascinating and hard to leave. It feels as relaxed and free as at home.

Cocktails, salon parties In order to increase its visibility, "Dream Traveler" contacted surrounding colleges and universities and organized some promotional activities, such as salon parties, reading activities, screenings of the latest movies, international student clubs, etc., with good results.

5. Promotion Strategy

1. Market strategy

(1) Target market

The business circle in this area (described in the "Market Demand" section) has petty-bourgeois consumers with a monthly income of more than 2,000 yuan. Most of them are well-educated, pursue fashion and taste, and are mainly young and middle-aged. They also include some student couples.

(2) Marketing planning

① Utilize the brand and resource advantages of franchise stores to quickly establish the popularity and reputation of ×× Tianchi store, consolidate old customer base, and win back customers that have been diverted away by strong brand stores and local specialty stores.

② Since ×× is a strong brand, but not the strongest one, and other strong brand coffee shops are likely to appear in this area in the future, we must take advantage of all current opportunities and resources to do a good job in service marketing, build our own brand with more humane services, and consolidate consumer loyalty.

2. Competitive Advantage

(1) We have the appeal, management, products and service level of a brand store. There are no other strong brand stores in the region, which enables us to occupy the commanding heights from the beginning.

(2) Having a large and convenient parking space is more attractive to car owners.

(3) Good cooperation between investors and owners, with both sides complementing each other's strengths.

(4) The investors’ entrepreneurial enthusiasm and good marketing awareness ensure the innovation capability and service level.

3. Positioning

A leading brand coffee shop focusing on business and leisure in the local business district, a fashionable place for business communication and emotional exchange.

4. Promotion plan

The most important thing at present is to establish the popularity of our store as soon as possible and make it known to nearby consumers.

(1) Advertising

① For residents in high-end residential areas in the west of the city, exquisite advertising leaflets (DM) and small gifts can be distributed to car owners in the parking lots of nearby shopping places. The leaflets can also be made into coupons.

② Advertising support from ×× headquarters.

(2) Event Marketing

① As there are many advertising companies in this area, and advertising companies have many clients, they are all ideal target groups for our store, so we can hold an advertising salon. In this way, we can not only improve the artistic taste and image of our store, but also bring in a stable source of customers. When the time is right, we can also hold such advertising salons regularly.

You can find a list of advertising companies in the Yellow Pages, or you can proactively search for some advertising companies in the office buildings in your area and ask them to spread the word. (For example, there are many advertising companies in Xindeya Apartment.)

② Student parties and reading activities. Contacting the student unions of several important universities in the region to hold some salon parties and reading activities will also help improve taste and attract students and young people to consume.

③ When the time is right, you can also hold an essay competition with the theme of "coffee and life".

(3) Service Marketing

Apart from brand factors, service is the most important thing for coffee consumers.

To do this, more humane services are needed.

① Establish a membership card system. The name of the member is printed on the card, just like a bank card. The discount rate of the membership card is not high, such as 9.8% off. But on the one hand, this can give consumers a sense of respect, and on the other hand, it is also convenient for waiters to address consumers. Especially if the consumer is with others, and the waiter can call him (her) Mr. * or Miss in public, they will feel very proud.

② Personalized service.

Putting some promotional materials on the table containing knowledge and stories about coffee can enhance the taste and create an atmosphere, while also increasing consumers’ favorability towards the store’s brand.

There are special guides for multiple consumers. If they are interested, they can be introduced to the names and origins of various coffees. They can also be allowed to visit the production process of a certain coffee.

VI. Management Overview (Omitted, can be briefly described based on the cooperation agreement with ×× Coffee)

1. Organizational structure

2. Management Team

3. Personnel planning

7. Financial Planning

1. Financial Overview

(1) Rent: RMB 650,000/year (including central air conditioning and parking fees)

(2) Franchise fee: NT$200,000 (first 3 years), NT$20,000 per year thereafter

(3) Store exterior decoration RMB 30,000 Store interior decoration renovation RMB 200,000 Equipment renovation RMB 30,000

(4) Other startup expenses: RMB 50,000

(5) Staff salary RMB 40,000/month

(6) Water and electricity 10,000/month

(7) Other expenses: RMB 10,000/month

2. Financial indicators

(sales, ROI, profit, etc.)

3. Break-even point

4. Profit and loss estimation

appendix:

1. Cooperation suggestions

We want the owner to reduce the price to 400,000. Please explain the reasons. 1. The operating cost is too high. 2. The ×× brand can enhance the hotel's image and management. (Please organize it yourself)

Conclusion

Sincerely looking forward to cooperating with you!

I believe that our cooperation will be successful and mutually beneficial!

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