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The business idea that I am seriously interested in pursuing is a

coffee shop that is focussed on providing delicious light and
healthy meals which are made from organic products.

Once the coffee shop has been established, my vision is to then

set up an organic farm that will supply organic products for both
the coffee shop and also to sell to the general public.

My mission is to help create more job opportunities and thus

contribute towards reducing the problem of unemployment and
poverty in South Africa.
     
Äeople who fall in the LSM range 7 to 10

Äeople who are interested in pursuing healthy lifestyles

Äeople who are aged between 18 and 65

ÄBusiness eople


    

 

ÄThe coffee shop will offer meals that are focussed on healthy eating

ÄThe coffee shop will create employment opportunities

ÄThe focus on organic products means that the need for global awareness of
conserving the earth will be highlighted
      
ÄThere has been a large environmental conservation awareness over the last 5 years
and this is still growing
ÄMore and more people have become aware of the negative health implications of
pesticides, insecticides and certain fertilizers
Äeople have become more aware of health issues and therefore providing the healthy
alternative is an advantage
ÄThe shift in social awareness and upliftment has become a big issue
ÄRecession has made people more conscious of how to spend their money, therefore
providing an eating out alternative that is perceived as Ê
Ê is an advantage
ÄAs homes have become smaller, people have taken to meeting their friends
in coffee shops and restaurants
Äeople͛s busy lives mean they don͛t have time to cook fancy meals or bake cakes to spoil
their family so they take them out
ÄA lot of start up consultants meet clients in coffee shops rather than renting office space
ÄDue to exorbitant rentals, small businesses cannot afford to have boardrooms and thus
they make use of coffee shops for their meetings
ÄBecause of time constraints, people are looking for quick meals instead of waiting
in a restaurant
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The estimation of the market potential is based on the assumption that the coffee
shop will be situated at the Centurion Mall.

About Centurion Mall (wikipedia) : Centurion has come a long way from being a
sleepy southern suburb of retoria, with smallholdings and large open spaces. Having
experienced stupendous growth since 1994, like the rest of urban South Africa, many
businesses have relocated there, and property development is boosting the ever
expanding city limits. The Gauteng rovincial Government envisages that, according
to current growth trends, much of the Gauteng province will be a city by 2015.

Currently the Centurion Mall has two coffee shops - Dulce Continental Café and
Fournos Bakery. These Coffee shops do not cater for a menu that comprises of meals
which are focussed on healthy meals that are created from organic products.
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 -     

Based on the fact that there are 300 000 average feet per week,
the following estimations of the target market will apply:

79% of clientele is LSM 7 ʹ 10 = approx . 237 000 per week

46 % of clientele is LSM 10 = approx . 138 000 per week

62% of clientele earn more that R10,000 a month = approx . 186 000 per week

89% of clientele are aged between 25 and 49 = approx . 267 000 per week

Looking at the statistic of the LSM and Demographics combined,

the assumption is that the Centurion Mall would
be the perfect location for my business concept of the coffee shop.
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The Coffee shop will be open 7 days a week from 8:00 to 18:00 daily

  -  
Leasing @ R400 per square meter * 50 = R20,000 per month (approx.)
Water and Lights = R7,000 (approx.)
Kitchen Staff salaries per month = 2 * R2,000 each = R4,000 per month (approx.)
Waiters salaries (9.45 per hour) = 9.45 * 8 hours * 5 people * 7days
* 4.33 weeks = R 14,500 (approx.)
Other Expenses (e.g. cleaning supplies, telephone ͙ etc) = R3,000 (approx.)

Total Overheads = R47,500 per month (approx.)

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Sales = 100% of which : Coffee and Cake = 50%
Coffee only = 30 %
Light Meals = 20%

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-  
250g Organic Coffee @R50.00 = 15g per cup for 16 cups = R3.125 per cup
2 litres of Milk @ R17.00 = 50mils per cup for 40 cups = R0.425 per cup
12kg of Sugar @ R148 (2400 sachets) = R0.062 * 2 (sachets average usage) = R0.123
Cream @ R25 per litre = 50 mil per cup for 20 cups = R1.25
Therefore Estimated Cost er Cup of Coffee = R4.923

R50.00 Cake @ 8 slices per cake = R6.25 per slice

Light Meals = R15 per plate

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Coffee and Cake @ R45.00 = R45.00 ʹ R5.00 + R6.25= R33.75
Light Meals @ per plate R45.00 = R45.00 ʹ R15.00 = R30.00
Coffee only @ R15.00 = R15.00 ʹ R 5.00 = R10.00
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  - -  

50% *R47,500 = R23,750 / R33.75 = 704 units (people to order coffee and cake)
30% *R47,500 = R14,250 / R30 = 475 units (people to order light meals)
20%*R47,500 = R9,500 / R10 = 950 units (people to order just coffee)

Break Even = 2704 + 475 + 950 =2165 Total Customers per Month
Break Even = 2165 / 4.33 = 500 Total Customers per Week

Therefore, out of 300,000 people who visit the mall per week,
we need 500 customers = 500 /300,000 which is 0.16% of Mall Customer Base

Therefore estimated at 50 square metres which holds 40 people,

we will need 12 hours per week of full capacity to cover overheads
We are open for 70 hours a week

Conclusion from these assumptions is that this business idea is profitable

  '  

www.go-organic.co.za
www.mywage.co.za
en.wikipedia.org/wiki/Centurion,_Gauteng
http://faithful-to-nature.co.za
www.ciro.co.za
www.centurionmall.co.za
www.doppio.co.za
www.cappuccinos.co.za
www.picknpay.co.za
www.makro.co.za
www.themugg.co.za
www.naturalandorganic.co.za
corne@word4word.co.za (Marketing Manager Centurion mall)