Table of Contents

1.0 Executive Summary...............................................................................................................................1

1.1 Mission...............................................................................................................................................1
1.2 Objectives..........................................................................................................................................2
1.3 Keys to Success..................................................................................................................................2
Cart! "i#li#ts..................................................................................................................................3
2.0 Com$any Summary...............................................................................................................................%
2.1 Com$any O&nersi$.........................................................................................................................%
2.2 Start'u$ Summary..............................................................................................................................%
Table! Start'u$.....................................................................................................................................(
Cart! Start'u$......................................................................................................................................)
Table! Start'u$ *un+in#.......................................................................................................................)
3.0 ,ro+ucts..................................................................................................................................................-
3.2 Te .ar/ 0oast 1ava Menu................................................................................................................-
3.2.2 Teas.............................................................................................................................................2
3.2.3 1uices.........................................................................................................................................10
3.2.% So+as.........................................................................................................................................10
3.2.( Oter .rin/s..............................................................................................................................11
3.2.) Snac/s an+ ,astries...................................................................................................................11
3.2.- .eli 3tems..................................................................................................................................11
%.0 Mar/et 4nalysis Summary..................................................................................................................11
%.1 Mar/et Se#mentation.......................................................................................................................12
Table! Mar/et 4nalysis......................................................................................................................13
Cart! Mar/et 4nalysis 5,ie6.............................................................................................................13
%.2 Tar#et Mar/et Se#ment Strate#y.....................................................................................................1%
%.3 3n+ustry 4nalysis.............................................................................................................................1(
(.0 Strate#y an+ 3m$lementation Summary...............................................................................................1-
7.2 8rea/'even 4nalysis........................................................................................................................12
Cart! 8rea/'even 4nalysis...............................................................................................................20
Table! 8rea/'even 4nalysis...............................................................................................................20
................................................................................................................................................................20
7.3 ,rojecte+ ,rofit an+ 9oss.................................................................................................................21
Cart! ,rofit Montly.........................................................................................................................21
Cart! ,rofit :early............................................................................................................................22
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1.0 Executive Summary
The concept
Tan/s $rimarily to Starbuc/s; &itin te $ast 20 years te coffeeouse as become a familiar feature of 4merican life.
Every +ay; millions of 4mericans sto$ for an es$resso'base+ coffee +rin/. ,eo$le &o &oul+ not ave +reame+ of
s$en+in# more tan (0 cents for a cu$ of coffee a fe& years a#o no& #la+ly $ay <3 to <( for teir ca$$uccino; moca
latte or vanilla ice blen+e+ +rin/.
Te s$ecialty'coffee business is #ro&in# at a ealty $ace. .urin# te $ast 20 years; tere as not been a sin#le year;
+es$ite &ar an+ recession; in &ic s$ecialty coffee sales ave not #ro&n. 3n many years te increase as been in +ouble
+i#its. 3n a++ition; no coffeeouse cains ave faile+ +urin# tis time; altou# te list of casualties in oter in+ustries is
=uite lon#.
Starbuc/s; Te Coffee 8ean; ,eet>s; .ie+ric>s an+ oter major cains serve avera#e =uality +rin/s in establisments tat
ave te same #eneric +esi#n a$$earance. 3n+ee+; Starbuc/s an+ Te Coffee 8ean are often referre+ to as ?fast foo+?
coffeeouses +ue to teir ?coo/ie cutter? +esi#n. @o& tat 4mericans> coffee $references ave broa+ene+ an+ mature+;
many are as/in# for more from teir coffeeouse.
A niche exists that has yet to be filled for a high-volume, upscale, quality-driven coffeehouse with a warm, inviting
atmosphere. .ar/ 0oast 1ava meets tis nee+ an+ fills tis nice. Ae offer i#'=uality $ro+ucts in an u$scale
environment. *urtermore; our i#'$rofile location in ,leasantville $rovi+es a mixe+ customer base tat &ill maintain
i# levels of business in every season; at all times of te +ay; every +ay of te &ee/.
Founders
@e+ ,o&ers'Sebastiane; foun+er of .ar/ 0oast 1ava; as a lon# career as an entre$reneur an+ mar/etin# executive. "e is
te foun+er of ,o&ers'Sebastiane 4+vertisin# B ,ublic 0elations an+ ,an @ational Motor Tours. Co'o&ner Curt
:ama#uci as an intuitive un+erstan+in# of te real estate mar/et. 4s a i#ly successful real estate bro/er an+ investor
e brin#s several /ey ca$abilities to te .ar/ 0oast 1ava team; not te least of &ic is is ability to $rocure i#ly
+esirable locations for future stores.
Financials
Te com$any antici$ates ra$i+ acce$tance of te .ar/ 0oast 1ava conce$t in ,leasantville; &it revenues of <)00;000C
in te first fiscal year; risin# to more tan <1;000;000C in year tree. @et $rofit is $rojecte+ to be a$$roximately <22;000
in year one; #ro&in# to an estimate+ <2)(;000 by year tree.
An advanced and expandable point-of-sale system
4fter carefully trac/in# te $erformance of te ,leasantville store trou# an ex$an+able an+ i#ly +etaile+ $oint'of'
sale system; &e &ill use tis as a ?blue$rint? for ex$ansion. *or exam$le; +aily sales are trac/e+ an+ analyDe+ by item;
time $erio+ an+ cost of #oo+s. 9abor re=uirements are matce+ to $rojecte+ in'store sales base+ u$on $ast $erformance
for maximum efficiency. Even after $ayin# i#er tan avera#e &a#es; &e ex$ect to allocate no more tan 2(E to labor
costs.
Tis 8usiness ,lan only $rovi+es +ata on te ,leasantville coffeeouse.
Sources! FS Census 8ureau; ,leasantville Camber of Commerce; S$ecialty Coffee 4ssociation of 4merica.
1.1 Mission
Our #oal is to be te coffeeouse of coice for te local ,leasantville community; +o&nto&n business &or/ers; tourists
&o visit te city; an+ stu+ents; by $rovi+in# a i#er =uality ex$erience tan any com$etitor. 4s a result; &e inten+ to
create coffeeouses tat =uic/ly acieve $rofitability an+ sustain an attractive rate of return 520E or more annually6
for our investors.
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4$$en+ix
Ae also &ant to ma/e our contribution to te &elfare of te local community by su$$ortin# caritable an+ civic
activities. Ae &ill su$$ort te farmers &o #ro& our coffee by usin# *air Tra+e; Sustainable ,ro+uction an+
Or#anic $ro+ucts &enever $ossible.
.ar/ 0oast 1ava also a&ar+s its business to as many local su$$liers as $ossible; /ee$in# te business in te community
or; at te least; in te state.
1.2 Objectives
Ma/e .ar/ 0oast 1ava te number one +estination for coffee in ,leasantville
Sales of <)00;000C te first fiscal year; <-(0;000C te secon+ fiscal year an+ <1 million te tir+ fiscal year
4cieve a 1(E net $rofit mar#in &itin te first year an+ 30E by *:3
4cieve a total net $rofit of <1(0;000C in *:1 an+ <200;000C by *:3
8e an active an+ vocal member of te community; an+ $rovi+e continual re'investment trou# $artici$ation in
community activities suc as te Camber of Commerce an+ financial contributions to local carities an+ yout
or#aniDations
Create a soli+ conce$t in te in+ustry an+ trac/ $erformance in or+er to be#in ex$an+in# to oter mar/ets &itin six
monts
1.3 Keys to Success
Te /eys to our success &ill be!
4 su$erior'tastin# $ro+uct bac/e+ by a uni=ue =uality store
4 relaxin#; u$scale interior +esi#n
,rime site selection &it an u$scale affluent $o$ulation; year'roun+ tourist activity; eavy $e+estrian traffic by te
site; a +ynamic stu+ent $o$ulation an+ a concentration of local businesses
4 mar/et tat ex$oses .ar/ 0oast 1ava to i#'$rofile ?tren+'setters? an+ ?/ey influencers?
On#oin#; a##ressive mar/etin#
"i#ly traine+ an+ frien+ly staff
Multi$le revenue streams inclu+in# #ift items; #ift bas/ets an+ coffee #iftGfre=uency car+s in a++ition to coffee;
$astry; cocolates; tea; juice; &ater an+ soft +rin/s
4 +ynamic &ebsite &it online sales ca$ability
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Cart! "i#li#ts
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2.0 Com$any Summary
.ar/ 0oast 1ava launces &it its first coffeeouse locate+ in +o&nto&n ,leasantville. .ar/ 0oast 1ava &ill offer
resi+ents an+ visitors a totally ne& style of coffeeouse ' one offerin# a uni=uely flavorful coffee +rin/ an+ a
comfortable; u$scale environment at &ic to socialiDe; relax or &or/.
Variety @o oter coffeeouse in te area &ill $rovi+e te ran#e of coffee +rin/s; tea; cocoa; juice; smooties an+
oter $ro+ucts tat .ar/ 0oast 1ava +oes.
!ocation .ar/ 0oast 1ava &ill be locate+ in te $rime section of +o&nto&n ,leasantville in te eart of te
so$$in# an+ entertainment +istrict. .ar/ 0oast 1ava locations are +esi#ne+ for i# volume year roun+; &it
revenues an+ $rofits to matc.
"xpansion 4ssumin# tis store is successful; it &ill be te first of a cain of .ar/ 0oast 1ava coffeeouses locate+
in mar/ets tat ave similar +emo#ra$ic $rofiles; si#nificant traffic by te store; year'roun+ tourist activity an+ a
siDeable stu+ent $o$ulation.
The #ar$ %oast &ava 'oncept
4t one time Ca+illac &as te ac/no&le+#e+ =uality automobile in 4merica. Ten came Merce+es'8enD. 4n+ ten
9exus; &it its su$erb $ro+uct an+ service a$$roac. .ar/ 0oast 1ava &ill be te first ?9exus? of te coffeeouse cain
in+ustry; offerin# a i#er =uality $ro+uct an+ better =uality service in an exce$tional environment. Te only
coffeeouse tat comes close to bein# as u$scale as our conce$t in te ,acific @ort&est is TorrefaDione; &it its i#
style 3talian +ecor 5tey &ere recently $art of a <-2 million +ollar buy'out by Starbuc/s6.
Te first .ar/ 0oast 1ava is locate+ in ,leasantville. Oter .ar/ 0oast 1ava coffeeouses &ill eventually be locate+ in
select affluent mar/ets tat su$$ort te business mo+el 5e.#. Mount "ill; @e&bur#; S$rin#fiel+; 8ayvie&; Orcar+
Halley; 8eacey "ea+; Ca$ital City6.
.ar/ 0oast 1ava offers a su$erior coffee $ro+uct; +elicious $astries; fres juices; te finest tea +rin/s; Iirar+elli cocoa;
#ourmet cocolates an+ #ift items.
Te .ar/ 0oast 1ava staff members &o $re$are te coffee 5baristas6 are i#ly traine+ an+ ex$erience+. Tey /no&
o& to $re$are an excellent es$resso'base+ +rin/ an+ bre& tasty coffee. Ae use te i#est =uality e=ui$ment an+
in#re+ients to +eliver a noticeably su$erior $ro+uct.
Our +esi#n style is +ifferent from all oter coffeeouses; an u$scale ?Cote +>4Dur? loo/. 3t features staine+ #lass
+ecorations; art #lass&or/; Me+iterranean 0iviera style furnisin#s an+ out+oor +inin#.
2.1 Com$any O&nersi$
.ar/ 0oast 1ava is a $rivately el+ cor$oration. 3t is re#istere+ as a state 99C Cor$oration; &it o&nersi$ sare+ by
@e+ ,o&ers'Sebastiane; Hictor 9ubitsc; Curt :ama#uci an+ oter outsi+e investors.
2.2 Start'u$ Summary
Start'u$ ex$enses are in line &it tose of oter coffeeouse cains. *or exam$le; Starbuc/s s$en+s a$$roximately
<370;000 on avera#e to buil+'out a ne& store location. Our costs are an estimate+ <22(;000 an+ <2(;000 for o$enin#
inventory an+ o$eratin# ca$ital. *uture stores soul+ cost no more tan <1-(;000 to buil+ out since many of te costs
incurre+ ere &ill not ave to be re$eate+ later.
Te Start'u$ re=uirements; belo&; inclu+e <--;000 of sort an+ lon#'term assets.
,a#e %
4$$en+ix
!ong term assets ()*,+++
Fn+ercounter 0efri#erators <(;000
ServiceG,re$ Counter <12;000
3ce Macine <3;(00
9ar#e 0efri#erator <1;000
Mil/ Coolers 536 <1;000
Cas re#ister 526 ,oint of Sale System <1%;000
Es$resso Macine <11;000
*etco Coffee 8re&er <2;(00
CountersGCon+iment barGselvin# <12;000
,hort-term assets (-.,+++
Tables; Cairs; *urnisin#s <12;000
,ersian Car$et <1;000
9i#tin# *ixtures <2;000
Table! Start'u$
Start-up
0e=uirements
Start'u$ Ex$enses
CO@ST0FCT3O@ <0
Site +esi#n; arcitectural $lan <10;000
.emolitionGConstruction <2(;000
Electrical; 9i#tin# <12;000
Electrical; Oter <10;000
*loorin#Ginstallation <(;000
8atroom Construction <%;000
,lumbin# <10;000
*ire$lace Construction <(;000
,aintin# <2;(00
City $ermitsGlicensesGfees <);(00
3nserte+ 0o& <0
9EI49 <0
4ccountin# <2;000
9e#al <%;000
3nsurance <2;(00
3nserte+ 0o& <0
M40KET3@I <0
O$enin# mar/etin#Ga+vertisin# <3;000
Ira$ic +esi#n for si#na#e; menu boar+s <2;000
Outsi+e Si#na#e <1;(00
*re=uency Car+s; 8rocures <1;(00
3nserte+ 0o& <0
O**3CE <0
Office e=ui$ment <)00
Com$uter; scanner; $rinter <2;000
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Tele$onesG*axG.S9 <(00
Stationery etc. <1;000
Iift item +is$lays 536 <1;(00
3nserte+ 0o& <0
4,,934@CES; ETC <0
,re$aration e=ui$ment <1;000
.is&aser <3;(00
8len+ers 536 <2;000
Micro&ave <(00
,anini ma/er <-00
Stora#e rac/s <1;000
Music system <700
*oo+ +is$lay case <);000
Stora#e room selvin# <1;000
8ul/ bean #rin+er <-00
Sin/s 526; $re$ counters <1;200
Menu boar+ construction <2;(00
Cu$sG9i+s 5(0;0006 <1%;000
Total Start'u$ Ex$enses <1%-;000
Start'u$ 4ssets
Cas 0e=uire+ <1;(00
Start'u$ 3nventory <2(;000
Oter Current 4ssets <1(;000
9on#'term 4ssets <)2;000
Total 4ssets <103;(00
Total %equirements <2(0;(00
Cart! Start'u$
Table! Start'u$ *un+in#
Start-up Funding
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4$$en+ix
Start'u$ Ex$enses to *un+ <1%-;000
Start'u$ 4ssets to *un+ <103;(00
Total *un+in# 0e=uire+ <2(0;(00
4ssets
@on'cas 4ssets from Start'u$ <102;000
Cas 0e=uirements from Start'u$ <1;(00
4++itional Cas 0aise+ <0
Cas 8alance on Startin# .ate <1;(00
Total 4ssets <103;(00
9iabilities an+ Ca$ital
9iabilities
Current 8orro&in# <0
9on#'term 9iabilities <0
4ccounts ,ayable 5Outstan+in# 8ills6 <0
Oter Current 9iabilities 5interest'free6 <0
Total 9iabilities <0
Ca$ital
,lanne+ 3nvestment
3nvestors <2(0;000
Oter <(00
4++itional 3nvestment 0e=uirement <0
Total ,lanne+ 3nvestment <2(0;(00
9oss at Start'u$ 5Start'u$ Ex$enses6 5<1%-;0006
Total Ca$ital <103;(00
Total Ca$ital an+ 9iabilities <103;(00
Total Funding <2(0;(00
3.0 ,ro+ucts
.ar/ 0oast 1ava sells i#'=uality s$ecialty coffee bevera#es; tea; juice; &ater; soft +rin/s; $astries; cocolates an+ #ift
items. .es$ite bein# an u$scale coffeeouse; our $rices are in line &it te lea+in# national cains.
3.2 Te .ar/ 0oast 1ava Menu
Te .ar/ 0oast 1ava menu sets us a$art from oter coffeeouses; #ivin# us a com$etitive e+#e.
Ae offer six #rou$s of +rin/sJcoffee; tea; 3talian so+as; smooties; juice an+ cocoaJ&it several coices &itin
eac #rou$. Tis enables us to $rovi+e more variety tan our com$etitors &ile /ee$in# te $re$aration of te +rin/s
easy to execute.
Ae are ta/in# a+vanta#e of te immense $o$ularity of flavore+ +rin/s an+ Cai tea by offerin# a $ro+uct mix tat
inclu+es items te oter coffeeouses +on>t carry as &ell as more familiar +rin/s.
Ae are te only coffeeouse to ave a &i+e ran#e of #ourmet ot cocoa.
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4$$en+ix
.ar/ 0oast 1ava offers several smootie +rin/s an+ 3talian so+as.
Ae carry te i#est =uality fres juices.
,rices ave been +etermine+ after a torou# analysis of all foo+ costs for every item in eac +rin/. 3n some cases; an
avera#e $rice as been calculate+ an+ a$$lie+ to all similar +rin/s in or+er to /ee$ te menu from confusin# te
customer.
/.*.- 'offee and "spresso #rin$s
'0FF""
Coffees of te +ay! .ar/ 0oast 1ava 8len+; 0iviera 0oast; an+ Molo/ai S&iss &ater $rocess .eCaf.
<1.)0 0e#ular <1.7( 9ar#e
",1%",,0
2ame #escription %egular !arge
Espresso 4 +ouble sot of strai#t es$resso.
<1.-(
.ouble
Caffe Americano Es$resso combine+ &it ot &ater; a #ourmet bre&e+ coffee. <1.7( <2.2(
Cappuccino Es$resso &it a smoot to$$in# of mil/ foam. <2.(0 <3.(0
Caffe Latte
Es$resso combine+ &it steame+ mil/; to$$e+ &it a small amount of velvety mil/
foam.
<2.-( <3.2(
Caffe Mocha
4 Caffe 9atte combine+ &it Iirar+elli cocolate; to$$e+ &it &i$$e+ cream an+
cocolate savin#s.
<3.00 <3.-(
Espresso
Macchiato
4 strai#t sot of es$resso to$$e+ &it a s$oonful of ric mil/ foam. <1.-( <2.(0
Espresso Con
Panna
4 strai#t sot of es$resso to$$e+ &it a #enerous +ollo$ of &i$$e+ cream. <1.-( <2.(0
Espresso Latte
Breve
Our famous latte ma+e even more creamy &it alf an+ alf. <2.(0 <3.(0
Espresso "Red
Eye"
Es$resso combine+ &it our #ourmet coffee of te +ay to #et your +ay #oin#. <2.00 <2.-(
'0FF"" #%324,
2ame #escription ,mall !arge
The Banana Nut
Java
Coffee. Aarm mil/. 8anana; maca+amia nut an+ vanilla syru$s. To$$e+ &it &i$$e+
cream an+ cinnamon +ustin#.
<2.-( <3.-(
The Cafe Milano Coffee. Aarm mil/. 4maretto an+ vanilla syru$s to$$e+ &it &i$$e+ cream an+ almon+s. <2.-( <3.-(
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F!AV0%"# ",1%",,0 #%324,
4ll flavore+ +rin/s feature =uality Monin an+ Iirar+elli syru$s.
2ame #escription %egular !arge
anilla Cappuccino Ca$$uccino ma+e &it vanilla flavore+ mil/ foam. <2.(0 <3.(0
anilla Latte 4 Caffe 9atte &it vanilla essence a++e+. <3.00 <%.2(
!hite Chocolate Latte
Es$resso; &ite cocolate flavorin# an+ steame+ mil/ to$$e+ &it velvety foam
an+ &ite cocolate savin#s.
<3.00 <%.2(
The "#$"# Latte Es$resso. Hanilla an+ oran#e syru$s; steame+ mil/ an+ &i$$e+ cream to$$in#. <3.00 <%.2(
The Rasp%erry Mocha
Latte
Coffee. 0as$berry an+ cocolate syru$s. "alf an+ alf. Ai$$e+ cream to$$in#. <3.2( <%.(0
Chai Latte Es$resso. Cai. Steame+ mil/ an+ &i$$e+ cream. <3.00 <%.2(
50T '0'0A #%324,
4ll ot cocoa +rin/s are <2.-(
2ame #escription
&rench anilla Cocoa "ot cocoa &it vanilla an+ &i$$e+ cream.
!hite Chocolate Cocoa "ot cocoa &it &ite cocolate an+ &i$$e+ cream.
Chocolate Truffle Cocoa 0ic +ar/ ot cocoa &it &i$$e+ cream to$$in#.
'oliday (pice Cocoa 0ic ot cocoa an+ oli+ay s$ices. To$$e+ &it &i$$e+ cream.
Peppermint Cocoa 0ic cocolate an+ refresin# $e$$ermint. To$$e+ &it &i$$e+ cream.
)valtine Ovaltine Cocolate Malt an+ mil/.
,600T53",
4ll smooties are <3.-(
2ame #escription
The Espresso Chocolate Malt 4 cocolate malt for #ro&nu$s.
The *ou%le *utch Chocolate (moothie Hery cocolateyK
The Mocha (moothie 4n all'time favorite.
The anilla (moothie 0ic natural vanilla flavor.
"#$"# (moothie +)ran,e and anilla- 4 (0>s favorite.
3.2.2 Teas
3'"# T"A,
Classic American .ced Tea/ just li/e you remember as a /i+.
<1.(0 Small; <1.-( Me+ium; <2.00 9ar#e
50T T"A
<1.(0 0e#ular
,a#e 2
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Earl 0rey
En,lish Brea1fast
Peppermint
'er% Apricot
Earl 0rey Lavender
*ar2eelin,
&ormosa )olon,
0olden &lo3ers 'er%al
'er%al Lemon
Tropical 0reen
'5A3 T"A, 7hot or ice blended8
Chai )ri,inal +re,ular or decaf-4 <2.00 0e#ular <3.00 9ar#e
anilla Chai4 <2.00 Small <2.(0 Me+ium <3.00 9ar#e
3.2.3 1uices
2ame #escription %egular !arge
&resh s5uee6ed oran,e 2uice
"xclusively from !onghorn 0rchards, 'orpus 'risti,
T9
(-..+ (*.:.
)ld7fashioned Lemonade 6ade fresh daily from 1leasant 'ounty lemons. (-..+ (*.:.
0enesis Juice 1rotein ;oost, <reen 6achine, 6ango and <uava. (*.=.
Martinelli8s Apple Juice +re,ular and
spar1lin,-
A ,an Francisco favorite. (*.++
Crystal 0eyser Juice (5uee6e (*..+
3.2.% So+as
3'"# ,0#A,
S$ar/lin# s$rin# &ater; flavorin# an+ ice. 8len+e+ or on te roc/s.
Me+ium <1.(0; <2.2( 9ar#e
0range ,oda
,trawberry ,oda
!emon ,oda
'herry ,oda
%aspberry ,oda
'ream ,oda 7made with half > half8
1each ,oda
4iwi ,oda
6elon
,a#e 10
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Apple
2ame #escription
The %utterscotch (oda S$ar/lin# s$rin# &ater; ice; alf an+ alf; vanilla an+ man+arin oran#e syru$s.
Cherry anilla (oda S$rite; ice; cerry an+ vanilla syru$s.
The Chocolate (oda Our version of an e## cream.
3.2.( Oter .rin/s
2ame #escription 1rice
0eyser Pea1 Natural (prin, !ater *rom @ortern California mountain s$rin#s. <1.2(
(oft drin1s from (precher8s/ (te3art8s and Thomas
9emper:
0oot beer; Oran#e Cream; Iin#er 4le; Hanilla Cream an+ Key
9ime.
<1.(0
Crystal 0eyser Te2ava Tea <2.(0
Roc1(tar Ener,y *rin1 <2.00
)ran,ina Citrus *rin1 <2.00

3.2.) Snac/s an+ ,astries
3tem 1rice
Pleasantville Cheeseca1e/ made ?ust for us by 1leasantville 'heeseca$e 'ompany. (*.++
&resh scones/ hot from the oven. (-.:.
Ba,els (-.++
Bro3nies (*.++
Blue%erry Muffins (*.++
Croissants (*.++
Blac1 &orest chocolate7covered espresso %eans (@.++
Best Ever Ba1ery &ancy Coo1ies (-.:.
3.2.- .eli 3tems
3tem 1rice
(and3iches <).-(
(oup <3.(0
;uiche <%.(0
%.0 Mar/et 4nalysis Summary
.ar/ 0oast 1ava launces &it an excitin# ne& coffeeouse conce$t in a rece$tive an+ stea+ily #ro&in# mar/et se#ment
Jte s$ecialty coffee retail business.
,a#e 11
4$$en+ix
.es$ite economic +o&nturns in recent years te s$ecialty coffee business as been a bri#t s$ot. Aile literally
un+re+s of businesses in many cate#ories are facin# $oor sales; ne#ative balance seets an+ even ban/ru$tcy; coffee
cains continue to so& stron# #ro&t.
3t>s clear tat 4merica>s love for #oo+ coffee continues +urin# #oo+ times an+ ba+.
1leasantville The 1erfect !aunch 6ar$et
8y launcin# .ar/ 0oast 1ava in te ,leasantville mar/et &e maximiDe our $otential for success +ue to several factors!
Te i#ly affluent local $o$ulation
:ear'roun+ tourist activity
Ever'can#in# u$scale stu+ent $o$ulation
Excellent auto an+ $e+estrian traffic by our location
9o& me+ia costs
"i# number of local s$ecial events
,rime site location
.ar/ 0oast 1ava is locate+ at &at is ar#uably one of te best locations for a coffeeouse in ,leasantvilleJin te eart of
te tourist an+ business +istrict; a+jacent to fine +inin# an+ so$$in#; next to te istoric E#y$tian Teatre an+ just ste$s
from te busiest intersection in to&n.
.ar/ 0oast 1ava Coffee as all te in#re+ients necessary for imme+iate success.
%.1 Mar/et Se#mentation
.ar/ 0oast 1ava>s customer base in ,leasantville is com$rise+ of five tar#et #rou$s.
1. 4ffluent local resi+ents
2. Tourists
3. 9ocal business $eo$le
%. Stu+ents
(. Travelers $assin# trou#
Tese #rou$s are all $otentially stron# customer se#ments. Te benefit of tis mix of customers is tat it el$s maintain
consistent business trou#out te year. *or exam$le; &ile tourism is stron# all year lon# in ,leasantville; it $ea/s
+urin# te summer monts. Conversely; te stu+ent $o$ulation is not as stron# +urin# te summer as it is from
Se$tember trou# 1une of eac year.
Te oter customer se#ments 5local resi+ents; local business an+ $ass'trou# traffic on FS ))6 $rovi+e a consistent
foun+ation all year lon#.
4lso; by a$$ealin# to several mar/et se#ments; .ar/ 0oast 1ava +oes not become overly +e$en+ent on any sin#le
consumer #rou$. *or exam$le; several local coffeeouses &it $rimarily stu+ent customers +o $oorly +urin# te non'
scool monts. Tey must also mar/et temselves ane& eac year to te incomin# stu+ents. .ar/ 0oast 1ava &ill avoi+
tese $ea/s an+ valleys in business &it a mix of customers.
Affluent locals. Aitin five miles of .ar/ 0oast 1ava are 200;000 of te most affluent $eo$le in 4merica. "omes in
a+jacent @icebur# sell for <1 million to <(0 million. Key influencers; tren+setters; artists; &riters an+ celebrities
ave omes in ,leasantville.
Tourists. More tan (;000;000 tourists visit ,leasantville every year. Most &ill $ass by te .ar/ 0oast 1ava
location. Tourist come to ?4merica>s 0iviera? for te beaces; so$$in#; +inin# an+ nearby vineyar+s.
,a#e 12
4$$en+ix
!ocal business people. .ar/ 0oast 1ava is locate+ on te corner of >4> Street an+ *irst 4venue in te eart of te
$rime +o&nto&n business +istrict. 3t>s across from te exclusive; cic; .escarte 53 S$en+; Terefore
3 4m6 +e$artment store; an+ one bloc/ from te number one so$$in# +estination in ,leasantville; 9ucre Ialerie. >4>
Street an+ *rist 4venue are te t&o most eavily travele+ streets in ,leasantville.
,tudents. ,leasantville is ome to a major branc of te State Fniversity as &ell as +oDens of oter scools;
inclu+in# many $resti#ious $rivate scools an+ aca+emies. ,leasantville "i# Scool is less tan a mile from .ar/
0oast 1ava.
Travelers on A, )). One of te state>s t&o major nortGsout routes $asses trou# ,leasantville. 4ccor+in#
to .e$t of Trans$ortation; more tan 3( million auto tri$s &ill $ass trou# te city. Many of tese travelers &ill
sto$ for a meal; to refuel an+ ave a cu$ of coffee. FS )) is also a eavily travele+ commuter route to Sore&oo+
an+ 8eacey "ea+ to te sout.
Sources! .e$artment of Transforation; State Fniversity; ,leasantville Camber of Commerce.
Table! Mar/et 4nalysis
Market Analysis
:ear 1 :ear 2 :ear 3 :ear % :ear (
,otential Customers Iro&t C4I0
9ocal resi+ents 2E -(;000 -);(00 -7;030 -2;(20 71;171 2.00E
Tourists (E 100;000 10(;000 110;2(0 11(;-)3 121;((1 (.00E
Travelers on FS )) (E 20;000 21;000 22;0(0 23;1(3 2%;311 (.00E
Stu+ents 1E %0;000 %0;%00 %0;70% %1;212 %1;)2% 1.00E
9ocal businesses 1E 20;000 20;200 20;%02 20;)0) 20;712 1.00E
Total 3.22E 2((;000 2)3;100 2-1;(3) 270;32% 272;%-2 3.22E
Cart! Mar/et 4nalysis 5,ie6
,a#e 13
4$$en+ix
%.2 Tar#et Mar/et Se#ment Strate#y
Overall; our strate#y is to maintain a constantly i# customer count by levera#in# our a$$eal to five #rou$s of $otential
customers.
!ocal %esidents. 4$$roximately 200;000 $eo$le live &itin five miles of our .ar/ 0oast 1ava location. Te most
affluent of tese live even closer; &itin tree miles. 3t is a sort ( minute +rive to .ar/ 0oast 1ava for most of our
$otential local customers. Excellent $ublic $ar/in# is available &itin 100 yar+s.
9ocal customers form te loyal core of our business. Ae &ill reac out to tem trou# local mar/etin#; involvement in
te Camber of Commerce; su$$ort of local caritable or#aniDations an+ s$onsorsi$ of events an+ yout s$orts teams.
Tourists. ,leasantville as excellent year'roun+ tourist activity. 4bout ( million $eo$le &ill visit te area +urin# te next
year. Aile otels are virtually sol+ out +urin# te summer monts; tourism all year is exce$tionally stron#. Tis is +ue
in lar#e $art to te tem$erate climate; &ee/en+ or +ay'tri$ visitors from te #reater Onto$olis area an+ an unusually lar#e
number of s$ecial events 5e.#. film festivals; concerts; art so&s6 sce+ule+ trou#out te year.
Ait a trouble+ economy an+ fears of terrorism; more $eo$le are o$tin# for te relatively inex$ensive; easy an+ safe
sort tri$ to ,leasantville for recreation. 4n+; accor+in# to te Camber of Commerce; 20E of all tourists visitin#
,leasantville &ill $ass by te .ar/ 0oast 1ava location.
Ae &ill tar#et tese $otential customers &it a+s in local tourism #ui+es.
!ocal businesses. Many local businesses; bot $rivate an+ #overnment; are &itin t&o bloc/s of .ar/ 0oast 1ava. 9ucre
Ialerie; te $rime so$$in# center of ,leasantville; is one bloc/ a&ay. Te county courtouse is t&o bloc/s a&ay. .ar/
0oast 1ava is in te eart of te so$$in# an+ +inin# area.
8ecause muc of te em$loyee $ar/in# is out of te imme+iate area &it suttle service to +o&nto&n; most $eo$le stay
near teir $lace of em$loyment +urin# brea/fast; lunc an+ for after'&or/ relaxin#. 4 si#nificant number of tese local
business $eo$le fin+ .ar/ 0oast 1ava an invitin# an+ convenient +estination.
Ae also offer coffee service to local restaurants; ni#t s$ots an+ businesses. Coffee service brin#s in a++itional revenue
an+ $romotes .ar/ 0oast 1ava amon# em$loyees at tese businesses.
Ae &ill also reac business customers trou# Camber of Commerce activities an+ by $ersonally visitin# te so$s an+
businesses to +istribute +iscount cou$ons an+ menus.
,tudents. Te area as more tan 30;000 stu+ents in several scools; inclu+in# nearby City Colle#e an+ State
Fniversity. Stu+ents; most of &om are un+er te +rin/in# a#e; ave fe& $laces tey can #o to meet teir frien+s.
Coffeeouses ave $roven to be very $o$ular &it stu+entsJeven i# scool stu+entsJas an ?in? $lace to #o tat>s
also affor+able.
To reac stu+ents &e offer s$ecial stu+ent +iscount car+s; $ass out free coffee cou$ons at stu+ent events an+ offer
entertainment on &ee/en+s.
Stu+ents re$resent an excellent customer se#ment for several reasons!
Stu+ents brin# an ener#y an+ yout to te coffeeouse
8y attractin# stu+ents &e #enerate excellent &or+'of'mout
Stu+ents re$resent a lar#e base of $otential $art'time em$loyees
Often un+er te +rin/in# a#e; stu+ents nee+ an affor+able $lace to an# out &it teir frien+s
,a#e 1%
4$$en+ix
Travelers on A, )). Te .e$t of Trans$ortation estimates tat tere &ill be 3( million auto tri$s trou# ,leasantville
tis year; a number tat is increasin# every year. FS )) is one of t&o major free&ays in te state an+ te one favore+ by
travelers &o &ant to ta/e a bit more time an+ ma/e a fe& sto$s +urin# teir tri$. 3t>s also a major commuter route to te
cities to te sout in Sunsine County.
Our $rimary meto+ of reacin# tis tar#et customer #rou$ &ill be our $artici$ation as a 444 member; offerin# a 20E
+iscount on all coffee an+ tea +rin/s &en 444 members so& teir membersi$ car+.
Ae also con+uct ,0 activities in me+ia outsi+e te local mar/et to ex$ose te .ar/ 0oast 1ava name to a &i+er state an+
national au+ience.
Source! .e$t of Trans$ortation; ,leasantville Camber of Commerce; FS Census 8ureau.
%.3 3n+ustry 4nalysis
Te s$ecialty retail coffee business as &e /no& it to+ay be#an in 1272 after "o&ar+ ScultD $urcase+ te Starbuc/s
name an+ be#an te ex$ansion of te mo+ern Starbuc/s cain. ,rior to is transformation of te business; Starbuc/s sol+
only &ole bean coffee.
Coffeeouses in 4merica ave existe+ since te 1)00>s; an+ te coffeeouse conce$t is more tan %00 years ol+. 3n te
Fnite+ States; even as recently as te 12-0>s; coffeeouses ave been $rimarily in+e$en+ent businesses; ty$ically &it an
eclectic 8oemian style.
Cafe Trieste in San *rancisco is ty$ical. 3t &as once a #aterin# $lace for ?8eats? an+ ?"i$$ies.? ,oetry rea+in#s &ere
el+ &ee/ly. 3t still retains muc of its ori#inal flavor. Many of tese in+e$en+ent coffeeouses continue to enjoy a loyal
follo&in#.
Starbuc/s> success as encoura#e+ oters to enter tis $otentially lucrative business. To+ay tere are more tan 13;000
coffeeouses in te F.S. "o&ever; com$are+ &it 3taly; &ic as 200;000 es$resso bars an+ coffeeouses; tere is still
muc room for #ro&t. Te Specialty Coffee Retailers Association believes te mar/et as not a$$roace+ maturity an+;
as yet; no coffee cain as +ifferentiate+ itself si#nificantly from te oters.
Aile overall coffee sales ave not #ro&n si#nificantly in recent years; te s$ecialty coffeeouse se#ment is #ro&in#
stea+ily at a ealty $ace every year. Te lo& foo+ cost of coffee +rin/s; relatively mo+est investment ca$ital
re=uirements; an+ lo& overea+; lea+ to i# $rofit mar#ins in te coffeeouse in+ustry.
Tere are 107 million coffee +rin/ers in te Fnite+ States; accor+in# to te National Coffee Association's re$ort "2000
Coffee Drinking rends!" --E of coffee +rin/ers consume coffee +aily. Coffee +rin/ers s$en+ an avera#e of <1)%.-1 on
coffee annually; an+ +rin/ an avera#e 3.1 cu$s +aily. 3t>s easy to see &y coffee is secon+ only to oil as te lar#est
commo+ity in te &orl+.
T&enty'five years a#o; almost nobo+y consume+ es$resso or es$resso'base+ +rin/s in te Fnite+ States. @o& tey
account; for more tan alf of all s$ecialty coffee consume+. Obviously; 4merica>s coffee'+rin/in# abits are can#in#.
3n te $ast five years te number of ?#ourmet? coffee +rin/ers as increase+ from - million to 2- million. 3n 2001 (3E
of all a+ults in te F.S. +ran/ s$ecialty coffee. 8y 2002 te $ercenta#e a+ #ro&n to )2E. :ear after year; te #ro&t
continues at siDeable rates.
Starbuc/s; once /no&n for =uality an+ customer service; as recently come un+er attac/ by customers an+ business
commentators for becomin# too bi#. Teir siDe 5);300 stores &orl+&i+e6 is te reason &y Starbuc/s is no& often calle+
te ?Mc.onal+>s? of coffee cains. 3f Starbuc/s> ima#e becomes one of a ?fast foo+? $urveyor of coffee; it leaves te
mar/et o$en for a smaller; more nimble com$etitor li/e .ar/ 0oast 1ava; &ere =uality an+ service are $aramount.
,a#e 1(
4$$en+ix
4s te #ra$ belo& so&in# :ear 2000 $er ca$ita coffee consum$tion illustrates; te Fnite+ States is not $resently one
of te stron#er mar/ets for coffee +rin/in#. 3t>s easy to see tere is si#nificant room for #ro&t in consum$tion. Te
coffeeouse cains of 4merica are lea+in# tis #ro&t.
Coffee +rin/in# $er ca$ita by country.
.
FA'T The coffeehouse business has grown every year since -=B*.
FA'T 2ot a single coffeehouse chain has failed during the past *+ years.
.es$ite major economic recessions; terrorist attac/s an+ t&o &ars over te $ast t&o +eca+es; te s$ecialty coffee
in+ustry as #ro&n every year. One in+ustry observer sai+; ?Aen times are #oo+ te coffeeouse in+ustry is #reat. 4n+
&en times are ba+ te coffeeouse in+ustry is #reat.? 4merica>s love for #oo+ coffee is stron#er tan ever an+
increasin# in siDe faster tan any oter in+ustry.
9ifestyle factors conver#e to ma/e te coffee in+ustry stron# at all times. Te stimulant effect of coffee is an im$ortant
reason &y many ar+'&or/in#; fast'$ace+ 4mericans consi+er a sto$ at teir local coffeeouse a necessary $art of teir
+ay. Conversely; coffeeouses $rovi+e a calm; invitin# environment for $eo$le to socialiDe; relax or catc u$ on &or/.
:oun# $eo$le un+er te le#al +rin/in# a#e are one of te fastest'#ro&in# se#ments of te coffee +rin/in# mar/et.
Coffeeouses $rovi+e tem &it a muc'nee+e+ $lace to meet &it teir frien+s.
Entertainment on &ee/en+ ni#ts +ra&s a youn# #rou$ of entusiastic customers. Te sur#e in interest in coffee +rin/in#
amon# youn# $eo$le assures a +iverse; rece$tive; so$isticate+ customer base no& an+ in te future.
Ol+er a+ults also enjoy te fact tat for te relatively mo+est $rice of a cu$ of coffee an+ snac/; tey can meet &it teir
frien+s; relax or &or/. 3nstea+ of #oin# to a bar an+ $ayin# for an alcoolic +rin/ or a restaurant &ere a meal usually
comes &it a efty $rice ta#; te coffeeouse is an intimate yet inex$ensive venue.
Cuality is deteriorating even as the industry is growing.
Coffeeouses nee+ to $ro+uce a =uality $ro+uct to bac/ u$ te $erceive+ ?little luxury? ima#e. Currently; most of te
lar#est cains are bo&in# to te $ressures of #ro&t an+ are cuttin# corners on =uality by intro+ucin# fully automatic
es$resso macines; mass bean buyin# an+ oter efficiency measures.
,a#e 1)
4$$en+ix
'offee drin$ing is now an all-day activity.
Once concentrate+ in te early mornin# ours or mi+'afternoon; in recent years coffee +rin/in# as become an all'+ay
activity. Even late at ni#t; many coffeeouses are $ac/e+ &it $atrons. 3t>s not unusual for a &ell locate+ coffeeouse to
excee+ a +aily avera#e of 200 customers.
'ustomer guest chec$ averages are rising.
4s $astries; cocolates; tea; $re'$ac/a#e+ san+&ices; snac/s; juice +rin/s an+ #ift items are a++e+ to te menu; te
avera#e customer ex$en+iture as risen. Many $o$ular coffeeouses re$ort avera#es in te <% ' <) ran#e. .ar/ 0oast
1ava ex$ects tat #uest cec/s &ill avera#e about <%.(0.
(.0 Strate#y an+ 3m$lementation Summary
Te .ar/ 0oast 1ava coffeeouse uses a strate#y of total =ualityJin $ro+uct an+ service. Our $romise is in our location;
te $ro+ucts &e sell; te $eo$le &e attract an+ te atmos$ere &e create.
,trategic Assumptions
,eo$le &ant a better'tastin# coffee +rin/
Coffee +rin/ers &ant a more invitin# coffeeouse environment
Coffee +rin/s are consi+ere+ an affor+able luxury
Te coffeeouse in+ustry is lar#ely unaffecte+ by te economy an+ &orl+ events
.ar/ 0oast 1ava offers several uni=ue a+vanta#es over all oter coffeeouses
Debsite
Our &ebsite is fully e'commerce functional an+ coul+ easily become a si#nificant revenue source.
Ae &ill eventually sell te follo&in# items online!
Aole coffee beans; tea
Iift bas/ets
Iift items
*urnisin#s
4n+ in a first for any coffeeouse in te &orl+; &e &ill also sell a catalo# of #lass art&or/ re$resentative of our store
+ecor. Ae &ill act as te sales a#ent for a number of $artici$atin# staine+ #lass; an+ art #lass artisans.
Te &ebsite also mar/ets .ar/ 0oast 1ava &it!
4 montly ne&sletter
3nterestin# information about te coffee in+ustry
4 ma$ to our store
Store ours
S$ecial events
Coffee reci$es
Most of tese functions are alrea+y u$ an+ runnin#.
!ocation
,a#e 1-
4$$en+ix
Te location of te first .ar/ 0oast 1ava in ,leasantville is a $rototy$e of future sites. Our secon+ site on busy Soreline
0oa+ in Mount "ill &ill feature our fla#si$ store. 3t &ill be locate+ just off te Oa/ ,atc 0oa+ an+ "i#&ay )) exit;
across from te Mount "ill 3nn an+ Te 1unction 0estaurant. 3t is by far te best location in Mount "illJone of
4merica>s most affluent cities.
Ae &ill buil+ .ar/ 0oast 1ava coffeeouses in te best locations $ossible; as tis is te /ey element in a successful
o$eration.
Site selection criteria inclu+e!
"i# traffic location
Small or mi+'siDe affluent mar/et
:ear'roun+ tourist activity
@earby 5&itin ( miles6 stu+ent $o$ulation
Outsi+e +inin#
Oter sites tat meet tese criteria inclu+e @e&bur#; S$rin#fiel+; 8ayvie&; Sore&oo+; Orcar+ Halley; 8eacey "ea+;
an+ Ca$ital City.
Exce$tions &ill be ma+e for some sites if tey are +eeme+ to be $otentially very $rofitable.
Sites in oter states mi#t inclu+e Fta; @e& Mexico; Ore#on; Aasin#ton; Montana; 3+ao; Colora+o; etc. ,lans are to
locate .ar/ 0oast 1ava coffeeouses in te Aestern states for efficiency of su$$ly an+ mana#ement.
0utside #ining
Te coffeeouseGcafe ex$erience is in+elibly lin/e+ to its Euro$ean ori#ins; &ere al fresco +inin# is a &ay of life.
4mericans ave embrace+ si+e&al/ +inin#. 3t is one of te fastest #ro&in# a++itions to te 4merican +inin# scene.
Si+e&al/ +inin# also $rovi+es an excellent &ay for $ros$ective customers to see an+ ?cec/ out? te coffeeouse for te
first time.
,ampling
Ae &ill en#a#e in several sam$lin# activities to intro+uce $otential customers 5an+ current customers6 to .ar/ 0oast
1ava>s ran#e of +rin/ o$tions.
Sam$les &ill be +istribute+ at te coffeeouse
Sam$les &ill be #iven to $assers'by on te street
.iscount cou$ons &ill be +istribute+ on te street; via +irect mail an+ at s$ecial events
Com$lementary coffee &ill be serve+ at caritable an+ civic events
*ree coffee service &ill be $rovi+e+ to te Camber of Commerce; a ra+io station; te ne&s$a$er an+ at select
#overnment offices 5e.#. te ,lannin# an+ Lonin# .e$artment6
1ortable 4ios$
Aitin ) to 7 monts &e &ill create a $ortable .ar/ 0oast 1ava /ios/ to sell an+ mar/et our $ro+ucts at s$ecial events
an+ community activities. ,leasantville as more tan 130 suc events every year. 3t &ill be an excellent &ay to
$ubliciDe .ar/ 0oast 1ava coffee.
,a#e 17
4$$en+ix
Te /ios/ &ill be i#ly visible an+ fun. 3t &ill also $otentially be very $rofitable; altou# it>s ar+ to +etermine o&
$rofitable &it any accuracy until te local res$onse is measure+. Ae believe it coul+ #enerate <-(;000 ' <100;000
annual revenue.
1re-paid, re-loadable, frequency and discount cards
Ae &ill $romote our $ro#ram of #ift car+s an+ customer fre=uency car+s to +rive business an+ stimulate cas flo&.
3n+ustry recor+s in+icate tat 2(E ' %0E of all #ift car+ amounts #o unuse+. 4lso; #ift car+s ave $roven to be a $o$ular
oli+ay item accountin# for more tan (E of total sales +urin# .ecember.
,re'$ai+ an+ re'loa+able car+s ave also $roven to be very $o$ular &it te major cain coffeeouses; a#ain accountin#
for a si#nificant $ercenta#e of sales. Tese car+s $romote customer loyalty as &ell.
*re=uency car+s re&ar+in# te re$eat customer &it a free +rin/ after a s$ecifie+ number of visits are $o$ular an+
$roven meto+s to for#e customer loyalty.
.iscount car+s are use+ to buil+ #oo+&ill amon# s$ecific #rou$s suc as te Camber of Commerce members an+
colle#e stu+ents.
8y tyin# in &it our com$uteriDe+ sales an+ inventory system &e &ill be able to trac/ usa#e an+ allocate te ex$ense to
mar/etin#.
The Future
Te number of .ar/ 0oast 1ava locations coul+ easily reac 20 ' 2( &itin five years. Aile te financials in tis
8usiness ,lan only a++ress te ,leasantville location; &e can extra$olate from te store>s $erformance 5&ic &ill be
carefully monitore+ an+ trac/e+6 to #et a #eneral i+ea of te cain>s $rojecte+ $rofitability.
Ait ten coffeeouses te #ross revenues; &en fully realiDe+; &oul+ be more tan <10 million usin# te tir+ year
$erformance fi#ures. Even factorin# in te cost of a++itional staff an+ oter resources; a 10'store cain &oul+ li/ely
#enerate a minimum of <1 million in $rofits annually; &ile buil+in# si#nificant valuation. 4 2('store cain &oul+ easily
to$ <2.( million in annual $rofits.
.ar/ 0oast 1ava>s start'u$; im$lementation an+ o$eration in ,leasantville &ill be te ?blue$rint? for future efficient
ex$ansion. Our ne& Mount "ill location &ill incor$orate te /no&le+#e &e #ain &it our first store as &ell as ne&
creative i+eas; an+ become our ?fla#si$? o$eration.
Sources! S0.S; 3ntere$ 0a+io; Scarborou# Mar/et .ata Survey.
7.2 8rea/'even 4nalysis
4 brea/'even analysis table as been com$lete+ on te basis of avera#e costsG$rices. Ait fixe+ costs of <2);%00 an+
<%.(0 an avera#e sale; &e nee+ a$$roximately <3(;000 $er mont to brea/'even.
,a#e 12
4$$en+ix
Cart! 8rea/'even 4nalysis
Table! 8rea/'even 4nalysis
"reak-e#en Analysis
Montly 0evenue 8rea/'even <3%;%22
4ssum$tions!
4vera#e ,ercent Hariable Cost 23E
"stimated 6onthly Fixed 'ost <2);%02
,a#e 20
4$$en+ix
7.3 ,rojecte+ ,rofit an+ 9oss
Ae $roject i# net $rofits startin# in te first year. Our #ro&t rate is base+ u$on in+ustry avera#es; factorin# in te
local con+itions. Ae ex$ect #ro&t of 1(E annually for te first tree years before levelin# off at te 700 ' 200 customer
$er +ay avera#e traffic rate.
*irst fiscal year #ross revenues are ex$ecte+ to excee+ <)00;000 an+ after'tax net $rofits of a$$roximately <22;000J
increasin# to more tan <2)0;000 by te tir+ fiscal year'en+.
Our mar#ins are very #oo+.Tis is +ue in lar#e $art to te lo& +irect cost of sales as &ell as te lo& o$eratin# costs in
#eneral for coffeeouses.
"i#er staff salaries; o&nerGo$erator salaries; mar/etin# costs an+ rent for a $remium location +e$ress $rofits but;
conversely; tey also ultimately contribute to i#er earnin#s an+ $rofits.
Cart! ,rofit Montly
,a#e 21
4$$en+ix
Cart! ,rofit :early
,a#e 22