Coffee Shop Business Plan Executive Summary

Welcome to the Coffee Shop Sample Business Plan EXECUTIVE SUMMARY

Table Of Contents
OBJECTIVES   MISSION   KEYS TO SUCCESS

THE LOST TREASURE OF ‘ARABICA’ is a specialty beverage retailer. Coffee Shop uses a system that is new to the beverage and food service industry to provide hot and cold beverages in a convenient and time-efficient way. THE LOST TREASURE OF ‘ARABICA’ provides its customers the ability to drive up and order (from a trained Barista) their choice of a custom-blended espresso drink, freshly brewed coffee, or other beverage. THE LOST TREASURE OF ‘ARABICA’ is offering a high-quality option to the fast-food, gas station, business center or institutional coffee. THE LOST TREASURE OF ‘ARABICA’ offers its patrons the finest hot and cold beverages, specializing in specialty coffees, blended teas, and other custom drinks. In addition, THE LOST TREASURE OF ‘ARABICA’ will offer soft drinks, fresh-baked pastries and other confections. Seasonally, THE LOST TREASURE OF ‘ARABICA’ will add beverages such as hot apple cider, hot chocolate, frozen coffees, and more.
Coffee Shop will focus on two markets:
The Daily Commuter - someone traveling to work, out shopping, delivering goods or services, or just out for a drive.
The Captive Consumer- someone who is in a restricted environment that does not allow convenient departure and return while searching for refreshments, or where refreshments stands are an integral part of the environment.

THE LOST TREASURE OF ‘ARABICA’ will penetrate the commuter and captive consumer markets by deploying Drive-thru facilities and Mobile Cafes in the most logical and accessible locations. The Drive-thru facilities are designed to handle two-sided traffic and dispense customer-designed, specially ordered cups of premium coffees in less time than required for a visit to the locally owned cafe or one of the national chains. In addition to providing a quality product and an extensive menu of delicious items, to ensure customer awareness and loyalty, as well as good publicity coverage and media support, we will be donating up to 7.5% of revenue to local charities based upon customer choices. Coffee Shop financial picture is quite promising. Since THE LOST TREASURE OF ‘ARABICA’ is operating a cash business, the initial cost is significantly less than many start-ups these days. The process is labor intensive and THE LOST TREASURE OF ‘ARABICA’ recognizes that a higher level of talent is required. The financial investment in its employees will be one of the greatest differentiators between it and THE LOST TREASURE OF ‘ARABICA’ competition. For the purpose of this pro-forma plan, the capital expenditures of facilities and equipment are financed. There will be minimum inventory on hand so as to keep the product fresh and to take advantage of price drops, when and if they should occur.
THE LOST TREASURE OF ‘ARABICA’ anticipates the initial combination of investments and long term financing of $425,000 to carry it without the need for any additional equity or debt investment, beyond the purchase of equipment or facilities. This will mean growing a bit more slowly than might be otherwise possible, but it will be a solid, financially-sound growth based on customer request and product demand. Coffee Shop chooses to become the Drive-thru version of Starbucks between the mountains, obtaining several million dollars through an initial public or private offering that would allow the company to open twenty to thirty facilities per year in all metropolitan communities in the Contra Costa County with a population of over 150,000. This is the preferred Exit Strategy of the Management Team. The danger in this is that competitors would rise up and establish a foothold on a community before--or in the midst of--the arrival of The Lost Treasure of ‘Arabica’, causing a potential for a drain on revenues and a dramatic increase in advertising expenditures to maintain market share. Knowing these risks--and planning for them--gives THE LOST TREASURE OF ‘ARABICA’ the edge needed to make this scenario work. The balance sheet estimates a Net Worth of $1,075,969 for the third year, cash balances of $773,623 and earnings of $860,428, based on 13 Drive-thru and four Mobile Cafes, it is not unrealistic to put a market value of between $4 and $9 million on the company. At present, such companies are trading in multiples of four to 10 times earnings, and it is simple mathematics to multiply the success of THE LOST TREASURE OF ‘ARABICA’ by the number of major and smaller metropolitan areas between the mountain ranges of the United States.