Anda di halaman 1dari 27

Table of Contents

1.

[Company Summary]
1.1.
1.2.
1.3.
1.4.
1.5.
1.6.

Owners/ownership
Business Description
Product/Service Description
Company History
Current Position and Business Objectives
Mission Statement

2.

[Executive Summary]
2.1.
Team/Ownership structure
2.2.
Products/Services
2.3.
Company Facility
2.4.
Marketing Strategy
2.5.
Major Goals
2.6.
Health Repercussions
2.7.
Financial Potential Investments

3.

[Team and Organization]


3.1.
Owners/Roles
3.2.
Employees
3.3.
Traditional versus Innovative organization
3.4.
Corporate Culture

4.

[Products and Services]


4.1.
Product Description
4.2.
Type of Service
4.3.
Figure/Table

5.

[Operating Plan]
5.1.
Location, Estimates, Costs
5.2.
Facility, Equipment, Energy Source, Costs
5.3.
Staff Shifts Chart

6.

[Health Repercussions and Analysis]


6.1.
Customer health/Healthy options
6.2.
Environmental/Global impact
6.3.
Going Green Plan

7.

[Market Size, Trends, and Competitive Analysis]


7.1.
Market size
7.2.
Competitive Advantage
7.3.
Competitive Analysis

8.

[Marketing Strategy and Emerging Technology]


8.1.
Strategy and Social media
8.2.
Emerging Technology

9.

[Goals, Barriers, and Risk Mitigation]


9.1.
Short term
9.2.
Long term

10.

[Financial Assumptions and Analysis ]


10.1.
Start up expenses/costs
10.2.
Summary Financial plan

1.

Company Summary

Chemistea is a one of a kind beverage retailer located in San Diego, California. This company
took the simple idea of concocting a variety of teas and complementing them with fresh
seasonal fruits to encourage consumers to be more health conscious and choosy about what is
in their beverage. This business caters to their customers by providing them the tools and the
choice to experiment and blend multiple ingredients in a cup. Each customized cup is
personalized; tailored to not only quench their taste buds, but to meet the boost of
nourishment an individual needs for the day.
1.1.

Owners/ownership

The business started out as a health conscious idea between six friends who shared a
passion for foods and nutrition. All six owners graduated from San Diego State
University and received their bachelors degree in Foods and Nutrition. The owners
are a mix of dietitians, chefs, and entrepreneurs who are well established in their
careers. With the six combined, their knowledge of the health benefits of the food
items served in the business will greatly help the marketing and sales efforts of
ChemisTea.
1.2.

Business Description

All fruits will be purchased in bulk and delivered in shipments by Specialty


Produce twice a week. Most fruits provided will be California grown and will be
processed and prepared by all the employees. All teas will be purchased in bulk from
In Pursuit of Tea in accordance to consumer demand. In addition, all teas and fruits
will be offered based on the current season in order to keep up with the refreshing
trends.
1.3.

Product/Service Description

ChemisTeas products will have a pre-set menu for consumers who do not desire
to make their own refreshments; however, they will still receive a nutrient dense
beverage. The business will also provide a set menu for the snacks to be accompanied
with the tea. The purpose of the product is to have customers create their own
beverage through self-service. Individuals may choose from different types of teas, hot
or cold including: black, oolong, green/matcha, chai, lavendar/lavendar mint, earl grey,
herbal fruit, and rose tea. In season fruits will accompany the teas for natural flavor if
the customer desires. ChemisTea is aware that not everyone is familiar with different
tea flavors so the company will provide one-ounce samples when necessary. The
company has also partnered with Bread and Cie, a local bakery in downtown San
Diego, who will provide ready-made snacks to sell at the tea shop. This way,
contamination is reduced.
1.4.

Company History

The six owners of ChemisTea (Jasmine Adamos, Danielle Ballesta, Joana


Miraflor, Norman Santos, Ilyn Mendoza and Krysta Landingin) became associated after
taking nutrition courses at San Diego State University. After careful collaboration and

elaborate research, the owners decided it was time to become business partners and
form an organization to participate in the evolving health movement.
1.5.

Current Position and Business Objectives

The partnership based business is equally divided between the six owners.
ChemisTea is currently in the process of becoming a full-fledged establishment. The
owners of ChemisTea have selected an outstanding corner caf location with a large
outdoor patio located directly across the street from the new Waterfront Park.
Numerous residential units surrounding this area include Breeza, Ariel, and Bayside.
This location is of walking distance to the heart of Little Italy. ChemisTea will be the
first tea room of its kind in Little Italy, San Diego.
1.6.

Mission Statement

The mission of ChemisTea is to assist in building a health conscious community.


We not only want to make a healthier you, but we want each consumer to express
their creativity into a nutritious refreshment and give that extra boost they need for
the day. We will do this by increasing nutritional value without compromising taste.

2.

Executive Summary
2.1.

Team and Ownership Structure

All six owners have complete equal partnership within the business, yet each
will have a different role in the business ranging from dietitians, chefs, and
entrepreneurs.
2.2.

Products/Services

To keep up with the current health trend, ChemisTeas unique products and
services shine using the traditional idea of drinking tea, accompanied with the
innovative idea of mixing tea with fresh fruits. Customers who are particular about
what they eat or drink now have the healthy option of choosing what they want in
their beverage. ChemisTea aims to be the first tea shop to provide individuals a
healthier dose of caffeine instead of the typical coffee, energy drink, and other sugary
drinks. Instead of consuming processed foods and artificial beverages, ChemisTea
desires to promote healthier food and beverage choices in their customers diets.
2.3.

Company Facility

ChemisTeas 979 square foot facility is located across the popular Waterfront
Park where customers have the option of dining inside or outside on the patio from 9
A.M. - 9 P.M. The caf features granite countertops and stainless steel equipment
throughout its facility and implements plentiful shelving in order to save space. Hot
water heaters will be installed along with a three compartment sink. ChemisTea will
also utilize automatic tea brewers to brew tea at rapid rates.

2.4.

Marketing Strategy

The main strategies ChemisTea will utilize are social media, discounts, and the
favorable business location. Social media trends will not only attract online users, but
give the caf an edge to spread the word about the business. Discounts will be aimed
towards military personnel, college students, and those who use the online check-ins of
social media. In addition, at the start of a new season, ChemisTea will provide a
weekend day devoted to a set amount of lucky customers.
2.5.

Major Goals

ChemisTeas first major short term business goal is to repay start-up bank loans
and equipment expenses within the first year of company existence in order to
eliminate any financial barriers that may block the company from a profitable future.
In addition, ChemisTea aims to have at least 50 positive Yelp reviews within the first
year to help increase customer numbers and to remain a competitive business in the
market. ChemisTeas long term business goals include expanding to a second location
North of Downtown San Diego, and expanding ChemisTea's name in the foodservice
industry by opening up a bakery. The company hopes to achieve these two goals
within five years in order to maintain and expand ChemisTea as a successful company.
2.6.

Health Repercussions

ChemisTea prides itself on the high standards they have set in regards to
providing customers with a nutrient dense beverage with natural flavors and being
able to accommodate all kinds of dietary preferences all while being organic. The caf
has also joined the going green movement by using eco-friendly cups for their
beverages and partnering with Specialty Produce in participating in composting. Due
to the potentially hazardous materials involved while composting, all employees will
be educated and trained thoroughly to follow the Hazard Communication Standard.
2.7.

Financial Potential

Sales for ChemisTeas Year 1 of production were totaled to a gross profit of


$563,500.00. For Year 2, sales were calculated using a projected 75% increase in
revenue compared to Year 1. For year 3, there was a projected increase of revenue of
17%. Based on these projections, there will be a considerable amount of income
available for potential expansion or other projects.
Year 1 (2013)

Year 2 (2014)

Year 3 (2015)

Gross Profit

$563,500.00

$986,125.00

$1,153,766.00

Operating Expenses

$431,045.20

$454,185.20

$487,325.20

Net Income

$132,454.80

$531,939.80

$696,440.80

3.

Team and Organization


3.1.

Owners/Roles

Jasmine Adamos and Danielle Ballesta are well known registered dietitians who
work part time at Sharp Memorial Hospital. Joana Miraflor and Norman Santos are
business entrepreneurs who formerly worked with illustrious businesses in Las Vegas,
Nevada such as The Bellagio and The Wynn. Ilyn Mendoza and Krysta Landingin are
both co-directors of Point Loma Nazarene Universitys Exercise and Nutritional
Sciences department and have partnered up with local restaurants in downtown as
nutrition counselors and recipe developers. All six owners of ChemisTea will be
distributed into a sub-unit of two. There will be a pair of each of the following:
registered dietitians, recipe developers, and entrepreneurs who will divide all the
responsibilities of ChemisTea. With Danielle Ballesta and Jasmine Adamos being the
registered dietitians on the core team, ChemisTea will be credited as a healthy organic
tea business. The two owners will ensure all ChemisTea consumers are consuming a
healthy dose of antioxidants and nutrients by creating nutrient analyses for all the
products sold in shop. Krysta Landingin and Ilyn Mendoza are the recipe developers in
charge of the different teas and fruits being served to the consumers. These two
owners are also responsible for the labor, employees, and shipment orders for the
business. Having Joana Miraflor and Norman Santos on the core team as
entrepreneurs would benefit the business due to their networking and communication
skills. This sub-unit is responsible for the investments, financial analysis, and the
societys food and health trends.
3.2.

Employees

ChemisTea seeks to hire employees who are health-minded, nutrition aware,


and motivated to spread wellness to the community. The business values employees
who can provide the nutrition information regarding the fresh fruits and tea.
ChemisTea prefers to hire undergraduates or new graduates who majored in the
health and human services field; specifically those who are nutrition oriented.
However, qualities of a good employee at ChemisTea would be an individual who
previously worked in the foodservice industry and worked well with former
coworkers and customers. Responsibilities of the average employee include washing
and chopping fruits, brewing tea, and replenishing beverage dispensers. Each sub-unit
of the core team will also have a student intern to work alongside them in order to
learn how to either work in food-service or how to run a business.
3.3.

Traditional versus Innovative Organization

ChemisTea is organized as an innovative business. Although most of the


decisions are made by the managers/owners, the interns and shift leads will be given
the responsibility to sign off on invoices for shipments and discuss what items need to
be ordered for the season with corresponding managers. Furthermore, shift schedules
will be flexible with student workers and each employee will be given personal
recognition based on work and moral ethics. ChemisTea is a people-focused company,
thus employees will not only be individually recognized, but shift leads and their crew

will be recognized as a team based on how they open or close the store. This tea
business strives to create an atmosphere where both customers and employees feel in
control; hence, ChemisTea emphasizes on the vision and values of the products being
sold. Employees will take customer feedback seriously, make the right decisions based
on the situation, and influence changes to make the company better. Moreover,
ChemisTea is technologically innovative in terms of offering their customers a touch
screen tablet that allows them to input the ingredients and processes the nutrient
analysis of their creation.
3.4.

Corporate Culture

ChemisTeas corporate culture is based on the employees and customers


philosophies and values. Team building will be strengthened by integrity, a bottom-up
style of management, an emphasis on physical health and fitness, as well as
community involvement. Employees must be able to build a trusting relationship with
their managers, crew leads, and fellow coworkers. For example, employees will be
given the chance to voice their opinions on how to make the business better as well as
tasks to display superior performance for incentives. Student workers will be treated
with leniency due to school schedules, and employees with disabilities will be
accommodated in the workplace. ChemisTea encourages its employees and interns to
be well-rounded individuals; therefore, employees will be hired not only based on
their work ethics and how well they work with others, but also based on their past and
current experiences working and being involved in their own community. In order to
build a strong team relationship, there will be bonding days offered for everyone to
attend. A strong team morale will build a wholesome, caring culture within the
company.

4.

Products and Services


4.1.

Product Description

The popularity of fruit smoothies with tapioca balls has spread throughout the
city of San Diego and ChemisTea has taken note of such. ChemisTea aims to provide
customers with an alternative beverage by having a set menu where customers make
their own combinations of teas and fruits. Teas will be either hot or cold and year
round fruits as well as seasonal fruits will be provided for natural flavor. Since
ChemisTea acknowledges that not everyone is exposed to different types of teas, the
company will offer one-ounce tea samples if the customer desires. In an effort to move
forward with sustainability, ChemisTea will also have their own line of reusable
tumblers (cups). To support neighboring businesses, ChemisTea has also partnered up
with Bread and Cie, a local bakery in downtown San Diego, in providing pastries to
compliment their teas. Having ready made pastries will reduce the risk of
contamination and ensure the customer is provided a safe product.
4.2.

Type of Service

ChemisTea will be a semi self-serve food company in which the customer will
choose what they want from items displayed on a counter and head to a central point,
the cashier, to pay for their items (Gregoire, 2013, p. 213). A self-service method of

running ChemisTea is ideal for one of our target populations (college students) time
crunch. The limited menu is beneficial to both the company and the consumer since
local food products yield higher quality and are less expensive than produce shipped
from further distances (Gregoire, 2013, p. 59). The company also aims to lessen the
processing of foods since processed foods involve more energy, packaging, and travel
further distances to reach the consumer. In recent times, companies have been moving
toward a start from scratch approach while using locally sourced products, making
companies more sustainable in menu planning and food production.
4.3.

Table 4.3A and Figure 4.3A


Product

Cost

Cost for 12
ounce drink

Price

Profit

Source

Oolong Tea

$13.00/
2oz

$1.15

$4.00

$2.85

In Pursuit of Tea

Herbal Fruit
Tea

$8.00/
2oz

$0.71

$4.00

$3.29

In Pursuit of Tea

Green/
Matcha Tea

$24.82/
2oz

$2.19

$4.00

$1.81

In Pursuit of Tea

Black Tea

$4.00/
2oz

$0.35

$4.00

$3.65

In Pursuit of Tea

$29.95/
10 items

$3.00

$3.50

$0.50

Bread and Cie

Apple Danish

The table above shows the costs of a few of the different teas ChemisTea offers
as well as one snack item, the apple danish. Oolong tea, herbal fruit tea, green/matcha
tea, and black tea will be purchased in bulk from In Pursuit of Tea with individually
packaged 2-ounce portions. 2.5 grams of tea leaves will be used for every six ounces of
water. The cost for a 12-ounce drink was calculated by dividing the cost of 2 ounces of
tea leaves by a factor of 11.33984. ChemisTea has decided to price small tea drinks at
$4.00 so profit was calculated by subtracting the actual cost of the tea from the set
price. Apple danishes are bought in bulks of 10 at $29.95, making the cost of each
danish roughly $3.00. Danishes will be sold at $3.50 yielding a profit of $0.50 per
danish.

Figure 4.3A

* Maximum prices include 4-ounce of fruit

At ChemisTea, the tea can be bought in three different sizes: small, medium, and
large at 12, 16, and 20 ounce cups, respectively. The small size is priced at four dollars,
medium at six dollars, and large at eight dollars. The fresh fruit will be priced at 50
cents per ounce. In addition, each cup size will potentially include a maximum of four
ounces of fruit. For those who are looking to boost their nutritional needs and
purchase a large drink with the maximum amount of fresh seasonal fruit, ChemisTea
will offer a one dollar discount.

5.

Operating Plan
5.1.

Location, Estimates Costs

The ChemisTea production facility is located in San Diego, California. It is a


corner waterfront caf in Little Italy and is rooted near the busy Pacific Coast highway.
ChemisTea is also located directly across the street from the new Waterfront Park and
is walking distance to numerous residential units and the heart of Little Italy.
5.2.

Facility, Equipment, Energy Source, Costs

ChemisTea is a 979 square foot facility and is a corner storefront of a 22,344


square foot building. The facility is divided into three sections: kitchen and storage,
serving and checkout, and dining. Customers are able to dine both in-store and outside
where a large patio is available. Rent is priced at $3/square foot/month resulting in a
total rental fee of $2,937. This location is on a lease agreement for 10 years.

ChemisTea has a core of eight pieces of equipment that are needed for start-up
and business maintenance. A total of $13,022.58 has been invested towards equipment,
and a reserve amount of funds have been saved for potential emergencies, which may
include equipment malfunctions and/or replacements. Equipment specs on usage were
calculated using an energy cost calculator. Energy requirement factors are based on
watts and are counted for total number of hours each piece of equipment will use per
day. These numbers are only estimates since monthly and yearly totals do not factor in
ChemisTeas six day business week rather than seven days.
5.3.

Table 5.3A

Equipment

Size

Quantity

Cost for
Equipment

Energy Requirements

Cost per
day/month/year

Kool-It
KBD-CG-40S
Refrigerated
Bakery Display
Case

10-3/8 in x
53-3/4 in

4,604.69 1824 watts for 14 hours

2.39
72.58
871.48

Kool-It KST-72-2
Salad Table

72 in table

2,335.18 701.5 watts for 14 hours

0.92
27.92
335.17

True
Refrigerator;
Reach-in

35 cubic ft.

2,825.53 839.5 watts for 24 hours

1.88
57.27
687.6

Chest freezer

19.7 cubic
ft.

799.00 600 watts for 24 hours

1.35
40.93
491.44

Bloomfield
1226-5G Auto Hot
Water Dispenser

5-gallon

1261.76 4560 watts for 14 hours (for 11.94


one unit)
362.92
4357.4

Bloomfield
8748-5G Integrity
Auto Tea Brewer

5-gallon

1196.42 1515 watts for 14 hours (for 3.96


one unit)
120.57
1447.69

Total

Per day = $22.44


Per month =
$682.19
Per year = $8,190.78

5.4.

Staff Shifts Charts

The schedule for the team members for ChemisTea will be unique. Each pair of
owners will be working twice a week. One time during the morning and once in the
evening. This will allow team members to learn and gain strengths from two different
perspectives. In addition to the team members of ChemisTea, they will be offering
three spots for interns who are Foods and Nutrition majors at local universities to
learn from the owners who are experts in the major and have plenty of experience in
their careers. These interns will also work closely with the owners twice a week.
ChemisTea is proud to present this opportunity to students in Foods and Nutrition.
Please Refer to Appendix A for Figure 5.4A.

6.

Health Repercussions and Analysis


6.1.

Customer health/Healthy options

Since ChemisTea is a self serve tea caf, customers can choose which tea to
consume and what fruit to place in their drinks; therefore, this business accommodates
to all dietary needs and preferences. Fruits and sweeteners will be the only additional
options for customers to place in their tea. ChemisTea caters to all types of customers
such as those who have strict diets, those who prefer to count calories, those who need
to replenish energy, and those who prefer to consume organic grown fruits. According
to the Organic Consumers Association (OCA), people prefer to consume organic
products because it contains more nutritional value due to the absence of pesticides
(Why we should all eat more organic food, 2014).

6.2.

Environmental/Global impact

In addition to the environmental and global impact of ChemisTea, San Diegos


interest in organic food has increased since the beginning of the year 2000. The
California Organic Products Act of 2003 was created to protect local farmers,
producers, and handlers of organic foods sold in California in request of the organic
food industry (San Diego County; Organic farming, 2013). Chemistea supports organic
businesses by endorsing Specialty Produce and their organic tea supplier, In Pursuit
of Tea, an environmentally-friendly and organic tea farm (In Pursuit of Tea, 2014).
Doing this would not only promote both suppliers, but it will spread information
regarding the health benefits of organic tea and produce and their positive impact on
the environment. Each cup that is sold and served to the consumer, will not only assist
in the growth of organic product businesses, but it will also influence customers to
consume healthy foods.
6.3.

Going green plan

ChemisTeas strategy of going green in San Diego would be their utilization of


solely Eco-friendly paper cups for their beverages as well as selling a hot or cold
insulated tumbler cup. Consumers who choose to use the cup will not only receive a
discount, but will also be contributing to building an eco-friendly environment by
using less waste. Furthermore, since ChemisTeas source of fruits will come from
Specialty Produce, this supplier will also be collecting ChemisTeas compost material
on every delivery day. Composting is one of the gold standard methods in building an
eco-friendly environment. Compost is used as a method to improve soil texture and
increase nutrient and water holding capacity (San Diego County Environmental
Service Department, 2014). Specialty Produce delivers all compost to a non-profit
organization in National City, California called Olivewood Gardens, which uses
compost to make rich soil for growing fruits and vegetables. As a result, ChemisTea
will be able to give back to the Earth by composting all food scraps and recycling
eco-friendly material. However, since ChemisTea will be collecting compost, there will
be a strict policy on how the compost will be collected within the resturant in order to
prevent any unsanitary incidences. The Hazard Communication Standard requires
copies of all Material Safety Data Sheets for potentially harmful substances to be on file

in the facility (Position of the American Dietetic Association: Food and nutrition
professionals can implement practices to conserve natural resources and support
ecological sustainability fortunately for ChemisTea, 2007). The registered dietitians on
the core team strongly support sustainable agriculture and community food systems.
They will educate their employees the bare minimum facts on agricultural basics and
the production methods that help provide ecologically sustainable food choices.

7.

Market Size, Trends, and Competitive Analysis


7.1.

Market Size

The popularity of coffee and bubble tea cafs have dramatically increased for
people of all ages to enjoy. With an abundance of these specific cafs throughout San
Diego, ChemisTea aims to bring forth healthier beverage alternatives to accompany the
booming health movement while providing a relaxing leisure atmosphere for military
families, tourists, students, and other San Diego residents.
San Diego is the second largest city in California. It is well known for its mild
climate, beautiful beaches, strong Naval association, and is home to roughly 3.1 million
residents as of 2013. From 2008-2012, the median household income in San Diego was
$63,373. ("2008-2012 American community survey, 2007).
The location of ChemisTea will attract locals, tourists, and students. Being
located across Waterfront Park, ChemisTea will attract tourists and families while also
attracting college students due to its proximity to San Diego City College. According to
the San Diego Grantmakers Organization, the military-related population in San Diego
as of 2010 was 229,024; an estimated 7.6% out of the 3.1 million residents in San Diego.
(Military families in San Diego County needs assessment, 2010). In 2010, San Diegos
educated population (high school graduate or higher) was about 1,717,414; an
estimated 85.4% of the population. ChemisTea aims to cater to this group, specifically
students at San Diego City College (which is in a close proximity with the college)
("2008-2012 American community survey, 2007). In 2012, more than 32 million
tourists enjoyed their stay in San Diego County. Some of San Diegos popular tourist
attractions are located near San Diego Bay. These attractions include beaches, a large
array of restaurants, the San Diego Convention Center and Waterfront Park.

Because tourists are not permanent residents, they were not included in Figure
7.1A. However, according to San Diego Tourism Research, tourists spend almost $8.4
billion at thousands of San Diego businesses during their visit (San Diego tourism
industry research, 2014). The tourism industry is one of the top revenue generators
and contributors to the San Diego regional economy of $184.3 billion in Gross Regional
Product, making tourists an important aspect of local businesses.
The tea industry in the United States has seen significant growth over the past
two decades and has experienced a prolonged period of innovation, popularity, and
increasing demand (Simrany & Goggi, 2013). In 1990, the total wholesale value of tea
flew around less than $2 billion dollars annually. The total wholesale value of tea now
soars well over $10 billion dollars annually as of 2013. Over the years, the tea industry
has seen an annual growth rate of ~2.5% (Simrany & Goggi, 2013). Forecasters of the
industry predict that growth will carry on this trend if not increase even more, as its
popularity may correlate with the current health movement for its healthy properties.

7.2.

Competitive Advantage

ChemisTea will be the first of its kind in Little Italy. This organization will draw
consumers through its uniqueness and variability within the menu. Consumers will be
able to design their drinks according to their personal taste through self service.
Instead of the typical tapioca pearls offered at boba tea shops, ChemisTea offers carved
pieces of fruit to sweeten and complement their selection of tea naturally. By doing
this, consumers will have an additional advantage of controlling the sugar content in
their drinks. With an assortment of different teas and fruits per season, there exists
many variations within their drinks. Research has shown that consumers are ten times
more likely to purchase if they are offered a decent amount of choices rather than
choosing just one choice or having too many choices (DeAngelis, 2014).
ChemisTea is walking distance from Waterfront Park; an area where many
families, residents, and tourists spend their leisure time. Consumers will be able to go
to ChemisTea after Waterfront Park closes at 7:00 PM. Operating hours at ChemisTea
last two hours after the park closes, which allows consumers to relax and unwind
together.
Registered dietitian practices include keeping up-to-date with the rapidly
changing environment in the health world, which requires skills in finding, evaluating
and sharing the most recent and accurate nutrition information (Nutrition
informatics, 2012). With a registered dietitian on site, consumers will be able to
inquire about the content of their drinks and have confidence that they are getting the
necessary nutrients in their drinks. Consumers will be getting a wholesome beverage
as a result of the knowledge and skills of these health professionals.
Though there are many strengths that puts ChemisTea at a competitive
advantage, there are some weaknesses that may pose as potential barriers. This
organization bases their menu off of seasonal fruit, which may limit the options on the
menu and may not satisfy each consumers preference. Consumers who may have
particular favorite fruits or combinations in their teas would have to wait seasons for
their prefered drink. Though ChemisTea will be the first of its kind in Little Italy, the
location may also put the organization at a disadvantage considering the target
market. It is in proximation with Waterfront Park, but is distant from many other
restaurants in the city. It is important to note that ChemisTea will be in competition
with several other popular coffee shops nearby. All of its competitors are fairly
popular and have a sufficient amount of positive reviews on social media such as Yelp.
Consumers may feel more comfortable opting to these more familiar and already
established sites.

Table 7.2A
Trend/Niche

Location

Hours

Products

Price

How They Excel

Areas to
Improve

The
Mudbar
Coffee
Cart

- Convenience
- Cart

Columbia
St.

7am-3pm
Mon-Fri

Coffee, tea,
baked goods

Inexpensive

Assortment of
coffees, pastries to
complement
beverages, low
prices

Should open on
weekends

Caffe
Italia

- Convenience
- Cozy facility

India St.

9am-6pm
All week

Gelato, coffee,
italian soda,
salads, panini
sandwiches

Less than
$10 per
item

Variety of drinks,
foods to
complement
beverages, cozy
atmosphere, open
all week for long
hours

Cash only, poor


customer service

OH! Juice

- Convenience
- Cart
- Natural

Columbia
St.

9am-6pm
Mon-Fri

Organic juice
(super herbs,
superfoods,
supplements)

About $12 a
bottle

Natural, healthy
and nutritious
connotation,
knowledgeable
consumers

Should open on
weekends,
should decrease
prices

Tonys
Coffee On
Broadway

- Convenience
- Cart

Broadway
St.

Unknown
hours

Coffee, baked
goods

Inexpensive

Great and speedy


customer service
for a one man
operation

Unknown
operating hours,
more info
needed online

Table 7.2B
Strengths

Weaknesses

Opportunities

Threats

ChemisTea

Focus on health, nutrition,


seasonal produce and supporting
local businesses. Variety of drink
options. Close proximity to
tourist attractions. On-site RD.

Possible limitation
with seasonal produce
and customer
preference. Distant
from other city
attractions.

Health-based
business

Well-established
competitors nearby.

Caffe Italia

Wide food selection to


complement array of drinks;
cozy atmosphere

Cash only. Poor


customer service.

Well-established
company

Various competitors nearby


willing to compete

OH! Juice

Natural, healthy and nutritious


connotation. Knowledgeable
staff.

Limited hours/days.
Expensive.

Health-based
business

Competitors nearby are


more financially friendly

7.3.

Competitive Analysis

There are four main competitors with ChemisTea. These competitors all
specialize in serving beverages and are around the area of Little Italy. The Mudbar
Coffee Cart is a refreshment cart that is well-known for their unique caffeinated
beverages. Caffe Italia is a local coffee shop that takes pride in their high quality coffee
and espresso drinks. OH! Juice is a juice bar that consists of all organic, cold-pressed,
and raw juices. Tonys Coffee Cart On Broadway is another refreshment cart that
specializes in coffee and teas.
ChemisTeas main competitive advantage revolves around the companys focus
on consumer choice and customization. Customers have the full power to customize
their beverages and unlike The Mudbar Coffee Cart, Caffe Italia, OH! Juice and Tonys
Coffee On Broadway, ChemisTeas self-serve nature makes customization even more
personalized for the customer. ChemisTeas health and nutrition focus puts the
business at an advantage compared to its nearby competitors. Operating as a
health-based business will be beneficial, especially with the booming health
movement. Although OH! Juice also operates as a health-based business, the credibility
of ChemisTea as an establishment focused on the health movement is heightened due
to the assistance of on-site registered dietitians. With the help of these registered
dietitians, consumers will be more aware of the nutritional benefits that ChemisTea
beverages offer that OH! Juice beverages cannot (for example, ChemisTea beverages
contain more fiber than OH! Juice beverages).

8.

Marketing Strategy and Emerging Technology


8.1.

Strategy and Social Media

ChemisTea will be present on various social media outlets such as Yelp,


FaceBook, Twitter, and Instagram. For each Yelp and FaceBook check-in, customers
have the opportunity to receive discounted drinks and snacks. FaceBook and Twitter
posts about the newest fruits in season will be provided to keep customers updated at
any time. ChemisTeas Instagram will be dedicated to the customers and will feature
the most nutritious and most creative drinks made throughout the week. ChemisTea
will provide special discounts not only through Yelp and FaceBook check-ins (10%
discount for each), but through online coupons (via Groupon) and printed coupons.
Groupon will provide a [b]uy 2 drinks, get a pastry for free coupon while printed
coupons will be provided by nearby hotels, which will offer 15% off drink orders.
In the future, ChemisTea plans to advertise the company by mailing the same
coupons to nearby residents. Customers will be able to receive special ChemisTea
discounts by providing specific identification cards upon checkout. College students
can show their school identification cards for a 10% discount off drinks. Because San
Diego City College is in close proximity to ChemisTea, San Diego City College students
can show their school identification cards for a greater discount (15% off drink orders).
Military families may also provide a military identification card to receive a 10%
discount off drink orders as well. During the first Saturday of every season, ChemisTea
will provide the first 25 customers with a free drink. Through this discount, ChemisTea
aims to emphasize the importance of purchasing produce in season.

ChemisTea will provide 16 oz insulated tumbler cups that customers can


purchase for re-use. These tumblers, which can be used for either hot or cold beverage
options, are provided to encourage customers to decrease waste. For every time a
customer purchases a drink with their tumbler, they will get $0.50 off their beverage.

8.2.

Emerging technology

ChemisTea will have two touch-screen monitors that will provide a nutrient
analysis for consumer drinks. Consumers will be able to input the different ingredients
in their beverages and in turn, the program will calculate beverages nutrient content.
With this technology, consumers will be more aware of their nutrient intake, a key
component in ChemisTeas concept.

9.

Goals, Barriers, and Risk Mitigation


ChemisTea will be the first tea caf that offers the build your own concept
with fresh seasonal fruits. ChemisTea will use locally grown fruits and use the highest
quality of tea to bring delicious and nutritious refreshments to San Diego. By creating
this innovative establishment and using the finest ingredients, it will benefit toward
the partners mission to the community and also financial success.
9.1.

Short Term
ChemisTeas business goals within the first year are:
-To repay the initial bank loans expenses for equipment for ChemisTea
-To receive at least 50 positive Yelp reviews

A few of ChemisTeas business goals includes repaying initial bank loans and
startup costs. ChemisTea will acquire a small business loan from a local bank. The caf
will be borrowing $10,000 and will repay the amount within one year of operation.
However, if ChemisTea does not receive enough capital, this barrier may hinder them
from achieving their goal. One way ChemisTea will try and alleviate this barrier is
through maximized advertisement. ChemisTea will be advertising to local hotels, on
social media, and to City College, which is only one mile away. Through advertising,
the business forecasts more foot traffic than without.
Another short term goal for ChemisTea is to receive 50 positive Yelp reviews
since they are trying to compete against traditional cafs. Receiving the corresponding
number of positive reviews may convince customers to try a more nutritious approach
to drinking tea. A barrier to this is that reviewing a caf on yelp is completely optional.
Customers may love the concept and enjoy the tastes of the teas and fruits that
ChemisTea offers, but may not have a Yelp account or have forgotten to review the
business. ChemisTea plans to mitigate this issue by reminding customers to review the
caf as they are leaving. In addition, customers that post a review on Yelp will receive
a free pastry to accompany their next drink purchase. Ideally, this incentive will bring
in more customers and gain at least 50 positive Yelp reviews.

9.2.

Long Term
ChemisTeas long term business goals within the next five years are as follows:
-To open a second location north of Downtown San Diego.
-To expand in the foodservice industry by opening up a bakery.

ChemisTea plans to open up a second location after five years of operation in


Clairemont, San Diego. Clairemont is a well-known location for native San Diegans to
fulfill their tea cravings. They plan to bring their innovative idea to this location and
excel. Opening a second caf in this area, will bring competition to surrounding
businesses. This will potentially be one their short term barriers. Competition may
hinder potential customers to ChemisTea; however, with the growing popularity of
ChemisTea, the caf plans to attract more customers from all regions of San Diego.
When opening a second location, the six owners plan to hire someone experienced to
manage this store, causing a potential barrier to the owners since all six owners do not
have time to be at both locations. In addition, they want to keep their business up to
the same standards as the first store. The owners must hire an experienced and
trustworthy leader to ensure success.
There are two long term barriers to opening a second location. One long term
barrier to opening this second location is whether the caf will flourish in the tea
industry for more than five years since many changes occur in society, popularity
being one of them. If business does not play out well for the second location, one way
to alleviate negative capital is to transfer to a different location that will attract
customers near or inside a mall or near a high school.
Another long term barrier to opening a second location is a potential high
turnover of management. Since this location will be managed by someone who the
owners trust, it is the managers duty to operate the store at the highest standards
according to the owners. If the manager performs poorly, they may be let go. One way
to prevent this from happening is for owners to train potential managers effectively.
By leading the way to manage the store, there would be a low risk of turnover.
ChemisTeas second long term goal is to expand into a different type of food
service. The owners plan to open up a bakery in the future. By opening up a bakery,
the owners would be able to supply their store with their own baked goods. This will
eliminate some costs to outside suppliers. Not only will this bakery supply goods to
their own stores, but it will also become a distributor to other businesses. This would
build ChemisTeas brand name in the food industry. Expanding in a direction different
from beverages may be a little bit of a risk and start up costs will be expensive. It will
take a few months for the ChemisTea bakery to build its name and provide and gain
contracts from different businesses. Although these may be some short term barriers,
the owners are willing to take the risk and do what they love.
There are a few long term barriers that ChemisTea may have to face if they are
going to succeed in the baking industry. Price fluctuations for product ingredients may
greatly affect their new business. Prices will vary due to supply and demand but the
problem can be eased by acquiring a contract with certain distributors. ChemisTea
would benefit from distributors setting a fixed price, rather than the price of goods

inflating. Competition between other bakeries would be the main obstacle for opening
a bakery. Other bakeries in the nearby area may already have contracts to different
local cafs or stores similar to Trader Joes; however, ChemisTea would be able to pitch
their ideas to these places when other opportunities arise. All in all, the owners of
ChemisTea have a positive outlook on the success of their business.

10.

Financial Assumptions and Analysis


10.1.

Start-Up Finances - Month One - January 2013

Amount per
case (if
applicable)

# of cases/mo (if
applicable)

Cost Per

Cost Total

Rent

per month

2, 937.00

Insurance

per quarter

4,000

Gas & Electricity

per month

750.00

Advertising

Section Total

500.00
$8,187.00

Important
Product
Supplies
Clear PLA Cups
+ Lids 12 oz

1000

145.00

725.00

Clear PLA Cups


+ Lids 16 oz

1000

155.00

775.00

Clear PLA Cups


+ Lids 20 oz

1000

165.00

825.00

Qualite Flexible
Drinking Straws
- Ind. Wrapped

1000

20

4.78

95.60

Karat Earth
Stock Print
Eco-Friendly
Paper Hot Cups
12 oz

600

80.50

724.50

Karat Earth
Stock Print
Eco-Friendly
Paper Hot Cups
16 oz

600

84.00

756.00

Karat Earth
Stock Print
Eco-Friendly
Paper Hot Cups
20 oz

600

68.50

616.50

Eco-Friendly
White Sipper
Dome LIds

1000

65.50

327.50

$4,845.10
Restaurant
Equipment
Kool-It
KBD-CG-40S
Refrigerated
Bakery Display
Case

10-3/8 in x
53-3/4 in

4,604.69

4,604.69

Kool-It KST-72-2
Salad Table

72 in table

2,335.18

2,335.18

True
Refrigerator;
Reach-in

35 cubic ft.

2,825.53

2,825.53

Chest freezer

19.7 cubic ft.

799.00

799.00

Bloomfield
1226-5G Auto
Hot Water
Dispenser

5-gallon

680.88

1261.76

Bloomfield
8748-5G
Integrity Auto
Tea Brewer

5-gallon

598.21

1196.42

$13,022.58
Payable
Accounts
Specialty
Produce

per month

2,400.00

Bread & Cie

per month

750.00
$3,150.00

Other
Total

$12,000.00
First Month

$41,204.68

Cash

$65,000.00

Remaining
Balance

$23,795.32

Rent
Rental costs for the ChemisTea business location is priced at $3 per square
foot, per month. Total monthly rent is $2,937.00. This location is on a lease agreement
of ten years.
Insurance
Insurance for ChemisTea is priced at $4,000.00 per quarter. Payments
are made in full and at the first month of the quarter. For the first quarter running
from January 2013 through April 2013, $4,000.00 was paid in full.
Gas & Electricity
For the first month of business, ChemisTea paid an estimated total
of $750.00 to cover gas and electric usage of equipment.
Advertising
ChemisTea reserved a total of $500.00 to put towards advertisement.
Some techniques include print fliers, posters, business cards, and frequent customer
cards.
Important Product Supplies
This total cost covers the supplies needed to serve an
estimated amount of drinks to cover the first month of business. More product supplies
will be purchased as needed using the reserve balance discussed in the below section.

Restaurant equipment
This total cost covers the eight pieces of large equipment
needed to start ChemisTea. These pieces of equipment are vital to keeping the
Chemistea operating and in business. The total of $13,022.58 was a one time payment
for the initial purchase of equipment.

Payable accounts
ChemisTea is partnered with Specialty Produce and a local
bakery to help supply the companys fresh produce and baked goods. A total of $300 is
payable to Speciality Produce every Tuesday & Friday to cover inventory for the week.
This amounts to a monthly total of $2,400 and an annual total of $28,800. This price is
negotiable in order to adjust with the demand and availability of seasonal produce. A
total of $750 per month is payable to a local bakery, Bread & Cie, to cover a daily
supply of freshly baked goods to be served at ChemisTea. This amounts to a total of
$9,000 a year. Altogether, ChemisTea has an annual total of $37,800 in payable
accounts.
Other
A reserve balance of $12,000.00 has been set aside for emergencies, supply
needs that were not forecasted, and/or miscellaneous needs.
Cash
ChemisTeas founders and company owners have invested a total of $55,000
towards the start-up and maintenance of the company. An additional $10,000 have
been added from a 7(a) micro-loan which will be paid back within terms set with
lending bank.

10.2.

Profit and Loss Statement For Years 2013-2015

Year 1 (2013)
Sales

Year 2 (2014)

Year 3 (2015)

563,500.00

986,125.00

1,153,766.00

Beverages/Food Costs

(37,800.00)

(37,800.00)

(37,800.00)

Supply Costs

(58,141.20)

(58,141.20)

(58,141.20)

Energy

(8,400.00)

(8,400.00)

(8,400.00)

Salaries and Wages

(188,260)

(221,400)

(254,540)

Rent

(35,244)

(35,244)

(35,244)

Maintenance

(10,000)

(10,000)

(10,000)

Insurance

(12,000)

(12,000)

(12,000)

Utilities

(68,000)

(68,000)

(68,000)

Micro-Loan

(10,000)

--

--

Amortization

(1,200)

(1,200)

(1,200)

Depreciation

(2,000)

(2,000)

(2,000)

(431,045.20)

(454,185.20)

(487,325.20)

$132,454.80

$531,939.80

$696,440.80

Operating expenses:

Total operating expenses

Net Income

Sales
Sales figures based on actual sales for YTD 2013 and forecasted thereafter. The
forecast for year two represents a 75% increase compared to the previous year. The
forecast for year three represents a 17% increase from the previous years sales.
Beverages/Food Costs
and food products.

This cost covers ChemisTeas payable accounts for inventory

Salaries and Wages


This total is based on an estimated three full time employees
and four part-time employees. Year two is forecasted with hiring of an additional two
part-time workers. Year three is forecasted with also an additional two part-time
workers.

Rent

This is the cost for ChemisTeas annual rent.

Maintenance
This is an estimated amount which is reserved to cover potential
restaurant renovations or needed fixings.
Insurance

This is the annual cost of insurance for ChemisTea.

Utilities
This is the estimated annual energy cost for ChemisTeas operating
Equipment.
Amortization

Reserved money for accounting and tax purposes.

Depreciation

Estimated for potential decrease in value of ChemisTeas products.

Total Operating Expenses


Net Income
subtracted.

Total expenses that ChemisTea is responsible for.

Remaining balance from sales after operating expenses have been

References
2008-2012 American Community Survey. (2007). [5 year estimate of educational attainment]. U.S. Census
Bureau.
Catering. (2014). Retrived from http://www.breadandcie.com/catering/
DeAngelis, T. (2014). Too many choices? Monitor on Psychology, 35(6). Retrieved from
http://www.apa.org/monitor/jun04/toomany.aspx
Electrical energy cost calculator. (2014). Retrieved from http://www.csgnetwork.com/energycostcalc.html
Environmental Services Department. (2002-2014). Retrieved from
http://www.sandiego.gov/environmental-services/miramar/greenery/compost.shtml.
Gregoire, M. B. (2013). Foodservice organizations: A managerial and systems approach. (8th ed.). Upper
Saddle River, NJ: Pearson Education, Inc.
In Pursuit of Tea. (2014). Retrieved from http://www.inpursuitoftea.com
Military families in San Diego County needs assessment. (2010, November). Retrieved from
http://www.sdgrantmakers.org/Portals/0/PastPrograms/MFSI%20Needs%20Assessment%20FINAL%2
0FULL%202010-11-04.pdf
Nutrition informatics. (2012). Journal of the Academy of Nutrition and Dietetics, 112(11), 1859.
Position of the American Dietetic Association: Food and nutrition professionals can implement practices to
conserve natural resources and support ecological sustainability. (2007). Journal of American
Dietetic Association, 107, 1035-1036.
San Diego County; Organic Farming. (2013). Retrieved from
http://www.sandiegocounty.gov/awm/organic.html
San Diego tourism industry research. (2014). Retrieved from http://www.sandiego.org/industry-research.aspx
Simrany, J. P. & Goggi, P. F. (2013, December 20). The state of the U.S. tea industry. Retrieved from
http://www.teausa.com/14654/state-of-the-industry
Specialty produce. (2014). Retrieved from http://www.specialtyproduce.com
The rd store. (2014). Retrieved from http://www.therdstore.com
Why we should all eat more organic food. (2014). Organic Consumers Association. Retrieved from
http://www.organicconsumers.org/organlink.cfm

Appendix A

Anda mungkin juga menyukai