Toms Coffee Kiosk Business Strategies - Example

Tom’s coffee Kiosk Business Plan Student’s Name Course & Code Professor’s Name University City Date Introduction Executive summary Tom’s coffee kiosk is a beverage shop to offer various quality beverages to the customers. The shop focuses on using an upgraded system where it will be easy to provide fast foods and beverages both cold and hot at an affordable price in convenient time. The shop aims to offer the best quality drinks both hot and cold drinks like specially refined coffee both white and black, blended coffee and other beverages. In addition to these, the shop will be able to provide other high quality fast foods which can be taken in company of these beverages. The business is location is in New Jersey in the united states of America and more specifically in on the streets of Jersey City. The choice of location is appropriate for the business is great considering the population in the city. The coffee kiosk targets two types of customers; these include the travellers and visitors in the city and the common people operating in the city. The city is a busy one thus the two groups of customers expands the target market for the business. The business is a partnership of Thomas Hawkins and his wife each having a share capital of 50%. It is more of family business than a partnership though ownership of the business between Thomas and his wife makes it a partnership. The financing of the business comes from the contribution of both partners. The contribution is equal thus the ownership being both 50% which is an equal share. The business aims at producing quality product and best menu that ensures customer satisfaction and loyalty, in addition, they aim to be contributing about 6% of the revenue collected to charities within the city. The business will operate in making quality beverage and other fast foods like sausages, and pizza and selling at an affordable price to the customers. The business aims to start with ten people working including the two partners. Business philosophy The business has set its objectives in stages starting with the first two years. At the end of the second year, the business aims to have expanded its target market and increased its employees to about 80, to have a gross margin of about 30% and its net after tax to be 10% of sales. The mission of the business is in a three way made aiming to ensure success. In terms of the products, the mission is to provide to customers the top quality beverages and fast food in a more efficient way (Jeston & Nelis 2014). In terms of the city community, the business mission is to provide support to the community through involvement and charity provision. Lastly economically, the business mission is to operate and attain growth a profitable rate through the best economic decisions. Product description Coffee kiosk provides the finest hot and cold beverages to its customers in Jersey City. The kiosk aims at specializing in specialty coffee and blended teas. In addition to this, the kiosk aims at providing other soft drinks, fresh baked pastries and other related fast foods. The workers are to be trained on how to provide the best blended tea and coffee in order to serve the best coffee and tea to city dwellers and the visitors (Bryman & Bell 2015). The customers will benefit with the best hot and cold drinks on offer at the shop at an affordable prices. The retail prices will depend on the quantity of the coffee or tea. The beverages will be served in form of small, mid-sized, and large mugs. Coffee small will be selling at $1.50; medium sized will be $1.75 and for large sized coffee will be going at $2.00. The expected retail prices are cheap compared to other joints in the region like dunkin’s doughnuts. For the fast foods, the muffins will be going at a price of $1.55 per piece; donuts will be sold on retail at $0.8 per piece. Self analysis As a graduate of business management and my wife being a graduate from the hospitality field, we are the best blend of people to start and run the joint. The knowledge of management will help me account for both sales and expenses and plan for the business including planning, controlling and coordinating the workers to undertake the activities necessary for the business to run successfully (Carroll & Buchholtz 2014). My wife will ensure the products are of high quality through her knowledge as a professional chef. She is also a team player having worked for KFC chicken inn for more than five years which gives necessary experience to run the business. Geographic data Jersey City has gained a population of nearly 15000 people according to the 2014 statics in comparison with 2010. It has thus been considered to be the fastest growing city in New Jersey. As per the 2016 statistics, Jersey City has a population of 247,597 people. This population includes both male and female of different race; it is the most growing city and thus the best place to start a fast food shop. Demographic data The demographic composition of the city is well balanced and appropriate to the business (Eriksson & Kovalainen 2015). From the statics of 2016, the city has 49% male and 51% of the population being female. Jersey city also has a median age of 35 years which shows most of the people are married but in a young middle age. The business is highly supported by this crop of population considering that people between the age of 20 to 50 have a high consumption rate for fast foods than the older people. The city enjoys a high population density per square mile of about 17,575 people which is very high compared to other cities. Competition In starting the business, competition is vital to be assessed to know where to invest (Short & Mussman 2014). Jersey City is known for having the best coffee shops in the United States. The thought of having to start a coffee business has however been assessed with this competition in mind. We have direct competitors to our business in the city; the direct competitors include those shops which are offering the same products as ours. Such direct competitors in Jersey City include; the grind shop, Gregory’s coffee shop, and also the warehouse cafe. These are some of the direct competitors that we are facing in the aim of establishing a coffee business in Jersey City. They are established coffee shops compared to our new business which makes it even more challenging to establish a strong ground in the market. Competition however is not only for direct but is also indirect, in Jersey City, several businesses are established up like the malls and supermarkets. The business are competing for the same customers disposable income, this makes it one of the most challenging competition that makes it difficult for the business to control if not well managed. To manage the competition, as the owner and manager I will use my best managerial skills to motivate and educate my workers to sell the best products and above all provide proper services to the people. Market segment For Tom’s coffee kiosk, the focus is on two types of market segments that is the visitors in the city and the city dwellers (Kotler et al., 2015). The shop has come up with two ways on how to reach and satisfy these two customers. For the visitors, the shop has a drive-through coffee shop where the customers get time to enjoy their beverage at a place before they leave. For the city dwellers, the shop has a door to door delivery unit which ensures drinks are delivered at their demanded point. The target markets for the shop are the newly married and young people who like fast foods and drinks. The shop’s pricing and location is appropriate and will as a result attract customers to stop and enjoy their delicious drink. Potential location analysis As the management of tom’s coffee shop, we understand that the location strongly affect the customer turnout to joint. Thus the location of the business is expected to be at the near entrance of the liberty state park in Jersey City. The location is deliberate to tap more customers who passes the park and is also centrally placed. The premise of the business is to be rented for a two year period considering the little capital as it will be difficult to purchase the building. The building is a free standing one near the entrance of the park. The building is spacious with a large tarmac parking for the customer’s vehicles; the hours of operation will be from 6.30am in the morning to 8.00 pm in the evening. The area of operation is proven to be safe considering the security personnel present. Organization and personal plan Tom’s coffee shop is to be co-owned by Thomas and the wife with a stake of 50% each. The business is thus considered to be a partnership between two people. The choosing of this type of business aimed at combining the cash for the two people to have adequate capital; also the co-management between to people with different skills relevant to the business triggered the formation. The work of Thomas is general manager of the business as a qualified manager the wife takes part in the cooking and service delivery supervision of the shop. The workers are to be recruited on merit and well remunerated than other shops in order to get top quality workers (McDONALD 2016). Marketing plan The coffee shop is a small partnership business that aims to provide quality beverages in terms of coffee and blended tea to the people in Jersey City. The business aims at providing quality tea in different sizes at an affordable price to the customers compared to other shops. In addition, the business looks at providing fast foods like the muffins, donuts, and sausages to the public. The company focuses on different methods of setting the prices, but the most probable way is through competition-based pricing. This method compares the prices that other businesses are charging for the given company to set its prices. Tom’s coffee shop relies most on competition based pricing as it is a new business in environment that is already occupied by other shops selling the same products. Thus the shop sets its prices below the competitors prices (Hair 2015). As the shop is new in the market, the intention is to offer discounts to attract first time customers to come and test our products to get feedback on where to improve to stay strong in the market. The shop aims to get more customers through sale promotion events (Hatten 2015). The business will employ two people to do personal selling promotion through explaining to the clients the benefits of the products and how good they are. The shop also will undertake promotion through advertisement in the local newspapers and posters along the main road to appeal to the customers and is expected to cost about $800. The locality of the shop is intended to be spacious and have tents to accommodate more people, the compound will be green and well planned that will make the customers to desire coming back to the shop. The shop will operate both stop and shop and home delivery services on request by the client. Tom’s shop income statement (expected) Year 1($) year 2($) Sales 450,035 1,850,950 Cost of sales 180,965 556,430 Payroll 90,460 170,540 commissions 5,340 12,330 total cost of sales 276,765 739,300 Gross margin 173,270 1,111,650 Expenses Rent 30,230 70,980 Taxes 15,220 40,340 Insurance 14000 37,500 Utilities 12,500 32,800 Total expense 71950 181620 Net profit $ 101,320 $ 930,030 References Carroll, A.B. and Buchholtz, A.K., 2014. Business and society: Ethics, sustainability, and stakeholder management. Nelson Education. Jeston, J. and Nelis, J., 2014. Business process management. Routledge. Bryman, A. and Bell, E., 2015. Business research methods. Oxford University Press, USA. Eriksson, P. and Kovalainen, A., 2015. Qualitative Methods in Business Research: A Practical Guide to Social Research. Sage. Goss, D., 2015. Small Business and Society (Routledge Revivals). Routledge. Kotler, P., Burton, S., Deans, K., Brown, L. and Armstrong, G., 2015.Marketing. Pearson Higher Education AU. Short, J.R. and Mussman, M., 2014. Population change in US Cities: Estimating and explaining the extent of decline and level of resurgence. The Professional Geographer, 66(1), pp.112-123. McDONALD, M.A.L.C.O.L.M., 2016. 5 Strategic marketing planning. The marketing book, p.86. Hatten, T.S., 2015. Small business management: Entrepreneurship and beyond. Nelson Education. Hair, J.F., 2015. Essentials of business research methods. ME Sharpe. Read More