Coffee Shop Opening - Case Study Example

Coffee Shop Opening Name Professor Institution Course Date Coffee Shop Opening Project Description This project entails opening a coffee shop. Coffee is a drink which is brewed with a distinct flavor and aroma. My decision to open a coffee shop is inspired by the high demand for coffee by a majority people. Coffee is a ranked as one of the most preferred beverage in the world (Sutherland, 2009). This has, thus, influenced my project. My coffee shop will be operating within the city. This will help in attracting city dwellers and those who visit the city. I will be the sole owner of the café. The café will be seeking to get a startup capital of thirty thousand dollars to purchase fixtures, furniture and equipments. I will undertake this project by creating a precise scope of the project. I will also devote my time towards shaping up the dynamics of my team which will be operating in the café. I will also devote my time towards the technical features of the project. I will also work towards ensuring that the business is able to meet the needs and satisfies customers. Customers form an integral part of a business (Pinson, 2008). The success of the café will entirely depend on customers who will finance the café by acquiring products and services from the café. I will, thus, devote my time towards coming up with strategies that will attract new customers and also maintain customers who will be perceived as loyal customers. Project Purpose The purpose of this project is to sell coffee. The café will be serving coffee in the morning, lunch hour and in the evening. One of the main aspects of my project is providing our customers with high quality coffee. We will also work towards providing homemade meals. It is good to prepare coffee from scratch instructions or recipe (Sutherland, 2009). We will also serve other types of drinks such as tea, soda, juice and a range of other special drinks. However, our main drink is coffee. We will, thus, provide a menu that will feature both white and black coffee with a variety of quality and makes. The café will be open from Monday to Saturday. The café will also be providing some light meals and lunch during lunch hour. The lunch hour menu will include salad, soups and sandwiches. The café will also provide lunch meals specialties that will feature French dishes. The café will provide a large banquet menu during the weekend. Project Outcomes and deliverables A project aims at having some outcomes and deliverables (Rogoff, 2010). My project outcomes and deliverables are providing coffee, tea, salad, soda, juice and light meals. The café aims to be the best coffee making shop by serving the best coffee and providing the best customer services. Project Resources A project has to rely on resources for it to succeed (Finch, 2013). My project will require financial, physical and human resources. The project will require a team of six people during the start up. I will be the C.EO. The project will require fixtures, furniture and kitchen ware. It will also require thirty thousand dollars to finance it. Resource Availability The startup capital is thirty thousand dollars. I already have forty per cent of the amount. The rest will be funded by a local bank at an interest rate of fourteen per cent. It will be situated in a 2000 square foot commercial or business building which neighbors a mall. Coffee shops situated next to malls are likely to attract customers who visit the malls (Sutherland, 2009). The space lacks furniture but it is partitioned. I will have to pay a rent of twenty five hundred dollars per month. There will be other expenses such as water which will be catered for by the management of the building. Stakeholders I will be the C.E.O or the project manager and I will be in charge of running the organization and administration. We will have a financial officer. The financial officer will be in charge of finances (Pinson, 2008). The café will also have an operating officer who will be in charge of implementing and planning operations in the café. Lastly the café will have managers who will manage risks and there will be team members. The bank is an external stakeholder and also a major stakeholder in the project. The owner of the premise we will put up the coffee shop is also an external stakeholder. Scope Document PROJECT SCOPE Project Sponsor: Local Bank Project Name: Coffee Shop Opening Scope: The objective of this project is to start up a coffee shop Constraints: · Cost not to exceed $30, 000 · Project be completed in one and a half months Deliverables: · Providing the best coffee and other beverages · A menu that will be used in charging customers at the coffee shop Exclusions: · Part of the money required for the project is already available · Location of the premise has already been identified Milestones: . Acquiring funding from a Local Bank · The sponsor has inspected the project · The project team is already ready Estimate Budget: Equipments and Furniture $10, 000 Interior Design $4500 Plumbing and Wiring $3500 Advertisement $6000 Miscellaneous $3000 Bankrolling Over expenditures $3000 Contracts: · Supply of baked goods will be contracted to the best suppliers who win the tender · Supply of furniture will be contracted to the best suppliers who win the tender · Supply of kitchen ware will be contracted to the best suppliers who win the tender Scope signoff: This scope has been approved by: ________________Project Sponsor Department: General Manager Date: _____/_____/_____ Project Plan Project Title The title of the project is opening a coffee shop. Brief Introduction to the project The project entails opening up a coffee shop within the city. The coffee shop will deal with beverages and snacks which will be served in the morning, afternoon and evening. The project aims at creating a café that will eventually be a brand. Coffee is one of the most preferred beverages (Sutherland, 2008). This will set the pace for the success of our company. Business Goals and Objectives Our main objective is to be the leading café in making coffee. We intend to be the best choice café for all the coffee lovers. We also intend to be the best café in the city in terms of quality and service delivery. Our second objective is to expand our business and open up more cafes in the city. A business must have plans for the future (Gambles, 2009). It should work towards growing into a bigger competitive business. We, thus, intend to open up more cafes within the city in order to attract and serve more customers. We also intend to be one of the biggest coffee café in the city. Opening up more cafes will help in turning our business into a bigger one. Our third objective is to create more employment. This is in line with our first and second objective. As the business grows, there will be need to employ more people. This means that we will play an important role in the society by providing employment. Our fourth objective is to acquire high quality equipments in the café. The café will require furniture and kitchen ware in its running. The equipments have to be of high quality in order to provide quality services. The café will need equipments such as blenders, cappuccino coffee machines, pots, etc (Sutherland, 2009). Our fifth objective and goal is to create an artist, cozy environment that is friendly. Customers will feel comfortable in an environment that is friendly and cozy (Pinson, 2008). This can only be achieved through interior designing. The main objective and goal in this case will be to use colors in the café which are appropriate and attractive to customers. Customers will always be attracted at first sight by what they see. We will also achieve this objective through music. We, thus, aim at providing an atmosphere that is pleasant, attractive, clean and welcoming. Our next objective and goal is to make the café a favorable working environment. A successful business should ensure that it provides a pleasant environment for its workers to work in (Runcie, 2012). The café will work towards ensuring that it is a great place to work at. This will be achieved through creation of a respectful workplace. Employees will be taught on the need to respect each other and work as a team. The café will also provide a positive environment which will ensure that workers are proud of being associated with. Employees will also be empowered in order for them to have pride in their selves and also to help them in achieving their full potential. Employees will also be appreciated and supported at all times. In line with this objective and goal, the café will ensure that its employees are hospitable and of good character. This will help in providing quality and effective services. The café also aims at ensuring that it achieves societal responsibility as part of its objectives and goals. This objective is important since all businesses must ensure that they fully support and are responsible for the society they live in (Gambles, 2009). This will involve taking care of the environment and providing quality services to all customers. It also involves providing drinks and food that is satisfying and worth the money spent on it. The next goal and objective is to raise our profits gradually over the years. Profits help in determining whether a business is making any progress or not (Finch, 2013). The main objective will be to ensure that as the café grows, so do the profits grow. This will help in repaying the loan owed to the bank. It will also help in expanding the café and maintain its operations in the future. Another objective and goal is to maintain professional suppliers and also with bakery suppliers. The café will require suppliers who supply basic things. The key to success in a business lies with the raw materials delivered (Pinson, 2008). The café will aim at ensuring that the supplies are of high quality in order to provide quality products such as quality coffee. The café will also be providing snacks to customers. It is not our intention to bake some snacks. The café will, thus, have to rely on local bakeries for supplies. The snacks have to be of high quality, tasty and satisfy customers. The café will, thus, work towards ensuring that it has professional suppliers and bakery retailers. Organizational Requirements A coffee shop is required to meet several organizational requirements. The café is required to have some documentations and permits that will allow it to conduct its business. The permits and certificate will be prove that the café is legit and meets all the standards and requirements of a food joint. The café will require a permit from the health board which will inspect the facility. The café should also meet some technical requirements. It will be required to have an exit in case of an emergency. Proper aeration and plumbing should be proper and efficient. The café should meet the standard electrical requirements. This means that there should be proper wiring to ensure that there are no accidents in the premise. The café will also be required to have transparent windows which are at the same height as the tables. This will help in ensuring that there is enough lighting and customers can have a view from outside while they are seated. The café is also required to be all the legal needs pertaining to a coffee shop. The café should also meet labor requirements that safeguard the rights of its customers (Sutherland, 2009). Project Stakeholders and their expectations The project stakeholders in this project include a professional team that will be tasked with the duty of ensuring that the project succeeds. The first stakeholder in this project is the CEO or the manager of the project. In this case I am the CEO. As a project manager, I will be expected to perform various duties. My first expectation is to ensure that there is coordination of all the activities in the project. The second role is to guide all the people involved in the project. The project manager is also expected to formulate proper communication stratagems. The project manager should also ensure that there are proper channels of communication which will ensure that the project runs smoothly (Runcie, 2012). As a project manager, I will also be required to provide critical judgment on the project. This will be done on the basis of cost, risks and quality. The project manager is also expected to come up with creative strategies that will be used for the purpose of marketing. The project manager is also required to provide detailed analysis of all the strategies meant to assess risks. The second stakeholder is the chief financial officer abbreviated as CFO. The CFO primary task is related to finances. The CFO is also expected to carry out payments of all the incurred expenses on behalf of the organization or staff. He is also expected to provide a proper and efficient budget. The CFO should also provide a business plan that is based on several key things such as flow of the cash, expenditure, and balance and sheet income. The CFO is also tasked with the role of confirming with the various investors who will be financing the coffee shop (Gambles, 2009). The third stakeholder is the chief operation officer abbreviated as COO. The COO is expected to perform some key roles that pertain to operations in the coffee shop. The COO is expected to prioritize customers, employees and the requirements of the coffee shop or organization. The COO is also expected to drive or ensure that operations in the organization have measures that measure their performance (Finch, 2013). He is expected to monitor employees and their motivation. This is meant to ensure that the requirements of the coffee shop are met. Lastly, the COO is expected to develop the mission and vision for the entire project. He is also required to identify the pre-determined objectives and goals of the organization. The risk manager is also a stakeholder in the project. A risk manager deals with issues to do with risks (Finch, 2013) . She is expected to have proper documentation that can manage risks. She is expected to identify and provide solutions for potential risks that may affect or hinder the process of starting a coffee shop. Team members are also stakeholders in the project. The team members in this project will perform the duty of construction and designing. They will be expected to procure and install equipments that will be required in the coffee shop. This includes furniture, lamps, crockery, coffee machines, cutlery, crockery, etc. They will be expected to construct the shop with an ambience of excellence. They should also renovate the premise and provide proper lighting. The team members should also work and ensure that other facilities such as parking are catered for. The leader of the team is among the most important people in the entire project (Finch, 2013). He is expected to help in finalizing all the necessary designs. He is expected to coordinate and manage activities taking place in the project. The team leader is expected to ensure that quality and professionalism is maintained in the project. He is also tasked with the role of holding discussions with contractors. The bank which is financing part of the project is a major stakeholder in the project and is expected to fiancé the project. Work Breakdown Structure The project bears in mind that a coffee shop requires the preparation of a well planned and executed work break down structure abbreviated as WBS. The project will slice or cut the various segments in the organization. This should ensure that the various necessary activities that are required to propel the project to success are sub divided. The first step in the project’s WBS involves taking into account the location of the coffee shop. The location of the coffee shop has already been identified so there will be need to confirm the location. The second step in the project’s WBS is taking describing or defining the attributes of the coffee shop. The coffee shop shall take into consideration several activities in its start up. The first activity is funding. This is further broken down into borrowing, personal savings and other sources. The second activity is planning. This is further broken down into planning the entire project. Planning also involves planning the structure of the organization ((Finch, 2013)). Planning designs is another activity within the second activity of planning. The third activity is design. Under this activity there are three main activities. They include designing the menu, process and structure of the project. Designing the appropriate menu will require several considerations such as hot or cold dishes, white or black coffee etc. The fourth activity is advertisement. This is a crucial activity in the project. The success of the coffee shop relies on the advertisement that will be carried. A proper and effective advertisement is meant to attract customers (Runcie, 2012). Under this activity, there will be two main ways through which the advertisement will be carried out. They include use of banners and online advertisement through social media. The fifth activity is licensing. The coffee shop must have permits or licenses that will make it a legit business. The licenses are also meant to ensure that the services provided in the café are quality and meet all the health requirements (Sutherland, 2009). The sixth activity is advertising for vacancies. This involves advertising vacancies for people seeking jobs and for suppliers. The coffee shop will need suppliers and also employees hence the need to advertise for the vacancy. The seventh activity is hospitality and food. Under this activity there are two main activities which are preparing food and arranging the menu. These are basic activities which are vital and should be prioritized once the coffee shop has been set up. The next activity is maintenance. Under this activity are different activities such as maintenance of the coffee shop and its equipments. The next activity is tendering. The process of giving tenders should be open and transparent in order to ensure that tenders are given to the best applicants. Tenders will be given for furniture and kitchen ware that will be required in the coffee shop. Successful winners of the tenders should be those who provide fair prices and offer quality services. There are other activities which will also be included in the work breakdown structure. They include wiring, emergency exit and parking space. The three activities are crucial and help in running the business. The work break down structure bears the idea that needs specification are bound to change as time progresses (Pinson, 2008). The needs of the organization will, thus, be included in the stages of design. Activity Sequence The activity sequence entails the milestones and critical paths in the project. This will entail the events or arrangement of activities in the project. The critical path is obtaining a permit. This should be achieved by the 1ST of March 2015. Painting the coffee shop in line with the specific colors is the next milestone and should take at least one week. The critical path is tendering. Tenders for fixtures, furniture and equipments should be placed and reviewed within two weeks. All the equipments and furniture should be delivered by 20th March. The next important thing is advertisement. Advertisements will attract customers to the coffee shop (Rogoff, 2010). This includes advertising the different job vacancies available. An advertisement shall be placed in any of the websites that advertises for vacancies. Shortlisted candidates will be interviewed and the whole process will be complete by 30th March. The next critical path will be placing or advertising for tenders for suppliers of food stuffs and coffee. The supplier should carry with them samples during presentation in order for us to select a supplier who will offer quality services and products at a fair price. This will be achieved by the 10th of April. The last critical path will be opening the coffee shop on the 15th of April. One of the milestones achieved so far is getting some funding and approval from a local bank. Sponsors play an integral part in the organization (Finch, 2013). The local bank is our main sponsor. The second milestone achieved is having the sponsor inspect our project. The third milestone that we have achieved is putting up a team that will propel or ensure that that the project succeeds. Risk Management Risks are inevitable in an organization. Starting a coffee shop is a risky adventure which raises the need for a risk management plan (Sutherland, 2009). The first risk is competition. Competition is one of the key risks in an organization. The café or shop will face a lot of competition from other outlets which have established themselves and sell coffee and other beverages. Starbucks and Costa are some of the coffee selling restaurants which will provide stiff competition. The second risk is fire. The coffee shop will be using fire in various duties. Electricity is another source of fire. Loose connections can lead to fire break downs. The third risk is break down of equipment. Machines are not always a hundred per cent perfect. They are bound to wear and tear and occasional breakdown. Kitchen hardware due to frequent use can break down after sometime. Unexpected break down of machines can be hazardous and disastrous. This can also lead to losses. Food poisoning is another risk. Customers can suffer from food poisoning as a result of taking some meals which are contaminated in one way or another. This is a potential risk which can damage the reputation of the café. An injury within the coffee shop is another risk. Customers can suffer injuries in the premise. They can for example slip and fall down due to some spillages in the floor which had not been wiped. Customers can also trip and fall when they are in the coffee shop. This can lead to serious injuries which can eventually lead to lawsuits. Customers can also fall from furniture which is defective or breaking (Sutherland, 2009). Employees can also suffer injuries in quite a number of ways within the coffee shop. Employee safety has to be maintained in order to avoid injury risks. The last risk is theft, burglary and fraud. The coffee shop can be robbed at gun point or even broken into after closing. Employees and customers can also defraud or rob the premises using unorthodox means. This will put the coffee shop at a risk of losing money, stock and expensive equipments within the coffee shop. The risks have to be put under control by coming up with an effective plan to control them. Controlling risks helps in avoiding losses that may occur in the future (Pinson, 2008). The first control plan is ensuring that the café is kept clean at all ties in order to avoid spillages which may trigger tripping. The second control method is to insure the café from risks caused by fire, theft, burglary and fraud. The café will also have an exit door that will be used in case of emergencies such as fire. The coffee shop will also employ a person whose sole work will be to ensure that machines and furniture within the café is well maintained. The café will also install surveillance cameras within a few months after its start up. Project Budget The project is running on an estimated budget of thirty thousand dollars. Equipments and furniture will cost about ten thousand dollars. Interior design will cost about 4500 dollars. Plumbing and wiring will cost about 3500 dollars. Advertisement will cost approximately 6000 dollars. Other operations and miscellaneous will budgeted at 3000 dollars. Three thousand dollars will be used to bankroll over expenditures. Support Team members will receive support in their undertakings. Support of team members is necessary in ensuring that a project is successful (Runcie, 2012). Team members will receive financial support which will enable them to sponsor their operations. They will also receive technical and material support. Record Keeping System The coffee shop will be having different types of records. It will maintain a sales record that will entail invoices, statements of account, deposit books that will be used in bank transactions and receipts. The coffee shop will also be having records used in purchases. This will include receipts and bank accounts. There will be procurement documents that will be used when procuring items. There will be use of assurance and quality control records. Chronological files will also be used in the project. Proper record keeping and documentation will ensure that the project is well managed and runs smoothly (Gambles, 2009). Resource Management Plan The following people will be involved in ensuring that the project proceeds well. The team to carry out the project consists of CFO, COO, CEO, team members and risk managers. The CEO will maintain coordination and communication in the undertakings of the project. The COO who is the chief operating officer will ensure that operations are run smoothly. The CFO who is the chief financial officer will manage finances and issues to do with finance. Team members will design and carry out construction works. The risk manager will help in managing risks (Finch, 2013) . The chief operating officer will ensure that quality is maintained by using assurance and quality control records. The COO’s office will also maintain inspection and activity logs. Administration and monitoring of the project This will include obtaining or acquiring all the necessary materials and resources that will be required in the implementation of the project. It will also involve recruiting personnel who will assist the project team members. At this stage, the project manager will be required to carry out duties assigned to him effectively (Pinson, 2008). The project manager will lead and organize the team and assign tasks. All the stakeholders and other important parties will be reached. Finalizing and Reviewing the Project Steps required in finalizing the implementation of the project The project is in its final stage hence the need to make final steps in the implementation of the project. All the staff of project team members will be continue performing their assigned duties. This means that no one will be reallocated. The bank which is one of the main stakeholders will be involved in the final stages of the implementation. The outcomes of the project will be handed over to them for the purposes of scrutiny and ensuring that we are accountable. They will also sign off the project. It is also expected that the owner of the premise we are renting for the coffee shop to sign off our project or plan since we will be renovating the place in order to meet our needs. All the internal stakeholders will also sign off the outcomes of the project. There will be an analysis and iteration of the productivity with views from the stakeholders. Views from the stakeholders are vital for the purposes of scrutinizing the project (Gambles, 2009). Review of the Project The project has to be reviewed in order to view the outcomes against the outcomes and the plan. All the project team members have been involved in the review of the project. Involving team members is important since the project has to rely on feedback from the project team members (Finch, 2013). The first major outcome is the availability of a location. The location had already been identified before and only needed to be confirmed. This was done and the coffee shop will be neighboring a mall. However, the next outcome is based on the same location. The place needs extra work in designing and painting the premise. The team members proposed that they get extra funding. The next outcome is on the suppliers. The tendering process went on well and supply tenders were given to those who charged fair prices. Advertisement of the coffee shop was also going on well with adverts been placed in the social media and use of banners. Final Report The final report documents the outcomes of the project in relation to the plan and lessons learnt. The different deliverables have been handed over. This includes kitchen ware that will be used in making the coffee and the different beverages. It also includes handing over the menu. There are lessons which have been learnt during the undertaking of the project. One of the lessons is that for the project which entails opening a coffee shop to be successful then a lot of advertising has to be done. This will help in marketing the café. Another lesson learnt is that risks have to be avoided in order to avoid unnecessary conflicts and lawsuits which may affect the café or coffee shop. Risks can lead to business failure (Runcie, 2012). Stakeholders were informed on the progress, failures and successes made. The failures include failure to acquire professional baristas who have worked before in large coffee shop. We were only able to get baristas who had worked in small coffee shops. The main success is being able to carry out the project within the estimated budget and also managing to get suppliers who would supply us with quality materials. All the relevant documents have been consolidated and archived into one single archive file. This is important since the documents can be used for future references. Lastly, the team members met to celebrate the success of the project. This took place within the new coffee shop which is set to be open. References Pinson, L. 2008. Anatomy of a Business Plan. New York: Lea and Blanchard Finch, B. 2013. How to Write a Business Plan. Massachusetts: McGraw Hill Rogoff, E. 2010. Bankable Business Plans. New York: New York University Press. Gambles, I. 2009. Making the Business Case: Proposals that Succeed for a business. Oxford: Oxford University Press. Runcie, T. 2012. Making Effective Business Decisions. New York: Harper Sutherland, J. 2009. Start and Run a Sandwich and Coffee Shop. New York: Pelican Read More