cappuccino cafe new b plan

8/3/2019 Cappuccino Cafe New b Plan

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The Cappuccino Caf is a new coffee shop in the uptown Middleburg district. The caf will beknown for over 20 flavors of cappuccino, coffee and coffee based products. In addition, lightsnacks and sandwiches will be offered to accompany the cappuccino and coffee based products.The caf establishment will play modern music for ambiance and provide free wireless internetaccess for patrons to attract professionals in the nearby business areas. The mission of

Cappuccino Caf is to provide high quality products and services in a warm and invitingenvironment.

Outline for Coffee Bar Business Plan

1. Executive Summary

2. Company Summary

3. Products and Services

4. The Industry, Competition and Market

5. Marketing Plan

6. Operating Plan

7. Management

8. Goals and Strategies

9. Financial Plan

10. Appendix


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1. Executive Summary

The Cappuccino Caf is a new coffee shop in Vashi. The caf will be known for over 20 flavorsof cappuccino, coffee and coffee based products. In addition, light snacks and sandwiches will beoffered to accompany the cappuccino and coffee based products. The caf establishment will

play modern music for ambiance including live performances and provide free wireless internetaccess for patrons to attract professionals in the nearby business areas. The mission ofCappuccino Caf is to provide high quality products and services in a warm and invitingenvironment.

The caf will serve a variety of cappuccinos and coffees, including gourmet blends and espresso.The cappuccino flavors will include vanilla, gingerbread, eggnog, peppermint, spearmint,cinnamon, French toast, and crme Brule among many others. Other available beverages, such assoda and juice, will also be available. The caf will also search deli-style sandwiches with thefreshest ingredients, muffins, scones, croissants, and other tasty treats.

1.1 Business Opportunity

History has proven that new business ventures fail at an astounding rate. In addition, the coffeeshop industry is a highly competitive and it is often difficult for a new coffee shop to survive.Coffee shops require a prime location to take advantage of the proximity of key customers suchas business persons in a metropolis or students in a densely populated college town. TheCappuccino Caf will take advantage of this business opportunity by being located on the cornerof 15th Street and Main Street in the Financial District. This corner is directly in the center of thebusiness district with no other coffee shops within a 4 city block radius. In addition, 4 educationinstitutions are located in the city and 2 of them are located directly in the business district.

The Cappuccino Caf will serve flavored cappuccinos, coffee products, sandwiches, beveragesand treats. The caf will also offer free wireless internet connectivity.

Businesspersons taking a break from work or having an impromptu meeting can take advantageof the proximity of the caf. Students can quickly jump online to research assignments whilethey enjoy one of the numerous flavored cappuccinos provided.

1.2 Caf Description

The unique theme of the Cappuccino Caf will bring expectations of an upbeat, cozy, andfriendly atmosphere. The caf's floor plan and furnishings have been designed to ensure these

expectations are met.

The Cappuccino Caf will be located in ground floor of the E-Sception corporate office building.The space is currently designed for a book store, but will be remodeled with a glass storefront.The interior will be unique, offering a high, decorative ceiling. The common area will havewooden coffee tables surrounded by plush chairs and sofas. On the walls, wooden tables withstandard chairs will allow patrons to setup laptop computers and spread out paperwork. Thewalls will be painted in a warm color scheme to enhance the relaxed atmosphere. The walls will


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be decorated with artwork from local artists. The floor plan will provide 3000 square feet ofusable space inside in addition to some corner seating outside.

The Cappuccino Caf will provide an upscale atmosphere, but with competitive coffee prices.Menu items will range from $2.00 to $8.00.

Below is draft of the floor plan as it will look upon remodel completion:

1.3 Current Business Position

The Cappuccino Caf will be a Limited Liability Corporation (LLC), to be founded March 2004,with plans to move into the newly renovated ground for space of the E-Sception corporate officebuilding. The owners, Kevin and Jane Whittaker, have several years of restaurant industryexperience, and plan on opening for business May 1, 2004. They will supply a cash investmentof $24,800 in order to secure additional financing and be the co-owners/operators/managers.

Jane Whittaker has managed several restaurants in the Chicago area. She was kitchen manager at

Chez Rene for 2 years and general manager at The Red Tiger Bar and Grill for 3 years. Jane hasproven herself as a leader in providing quality products with exceptional service. Throughout her7 years of restaurant industry experience Jane has excelled in training Employees and "doingmore with less" in order to trim labor costs.

She knows what it takes to be successful, and is prepared to spend the time necessary to makethe caf a success.


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Kevin Whittaker will be the assistant manager. Kevin comes highly recommended. He has beenan assistant manager for the Web Cafe in Chicago for over 3 years.

The caf will be a sit-down coffee shop with wi-fi connectivity. The caf will serve a variety offlavored cappuccinos, coffee products, beverages, sandwiches, and treats to local customers.

1.4 Financial Potential

The Cappuccino Caf will be profitable in its first year. The traffic from the local library, thecorporate workers in the building it operates from, and from the busy streets will ensure asuccessful venture. A modest loan from the Whittaker's parents and favorable terms from theSBA will prove to be beneficial as the Cappuccino Caf grows and prospers.

The Cappuccino Caf will have sales of $533,764 in its first year of operation. Years two andthree will have sales increases of 10%, resulting in sales of $576,551 and $622,575, respectively.Operating expenses are $304,136 for year one, $327,694 year two, and $353,326 year three. The

results for the first three years of operation are net income of $36,521 for the first year, $42,356for the second year, and $47,819 for year three.

Below is a summary of income and expenses for the Cappuccino Caf's first three years of

operation:


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A 10% growth is justified by the lack of coffee shops in the area, and because of the traffic fromthe library. It is also assumed that as the building apartments are filled, more traffic will bepresent in the coffee shop.

Below is a graph displaying the Cappuccino Caf's financial position during its first three-

year period:

1.5 The Request

The Cappuccino Caf is seeking $35,000 in startup capital to combine with $24,800 invested byits founders. The startup funds will be used to purchase furniture, fixtures, equipment, inventory,

and provide working capital.

2. Company Summary

Jane Whittaker has managed several restaurants in the Chicago area. She was kitchen manager atChez Rene for 2 years and general manager at The Red Tiger Bar and Grill for 3 years. Jane hasproven herself as a leader in providing quality products with exceptional service. Throughout her7 years of restaurant industry experience Jane has excelled in training Employees and "doingmore with less" in order to trim labor costs. She knows what it takes to be successful, and isprepared to spend the time necessary to make the caf a success.


The Cappuccino Caf will be a Limited Liability Corporation (LLC) that will serve the uptownMiddleburg district. The Cappuccino Caf offers flavored cappuccino and other coffee products,snacks and free wi-fi service for checking email and surfing the web. The


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Cappuccino Caf will take advantage of this business opportunity by being located on the cornerof 15th Street and Main Street in the Financial District in ground floor of the E-Sceptioncorporate office building.

2.1 Company Ownership

The Cappuccino Caf is an Illinois LLC with two members, Kevin and Jane Whittaker.

Kevin is a 35% member and will provide back office experience. Jane is a 65% member and willbe responsible for day to day operations and management.

2.2 Company History

The Cappuccino Caf is a new venture formed as an LLC this year. Jane is a 65% member andwill be responsible for day to day operations and management. Bill is a 35% member and willprovide back office experience.

2.3 Start-up Summary

The startup plan will be in three phases: company formation & funding, shop build-out, storelaunch.

The company formation and funding phase is approximately 40% completed. The LLC has beenformed and partial funding has been raised by the founders of the Cappuccino Caf. Additionallyfunding is required to complete the remaining phases of the startup plan.

The coffee shop build-out portion of the startup plan will be the most capital intensive.

Currently, the shop location is a former coffee shop, so some of the build-out required for anempty location is not required. However, certain key areas such as flooring, paint, and furniturerequire improvements prior to opening.

The final phase of the start-up plan is to launch the store. The launch will coincide with amarketing plan to include local advertising, in-store events, and free drinks to local businessowners. With a community room area above the shop, marketing to local businesses andorganizations to hold meetings in the shop will increase business dramatically.

2.4 Company Locations

The Cappuccino Caf's primary place of operation will be located on the corner of 15th

Street and Main Street in the Financial District in ground floor of the E-Sception corporate officebuilding. The address will be 368 Main Street. This quaint downtown area provides a lot of foottraffic and has Middleburg Community College to the south.


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The Community College provides a steady flow of students throughout the day. In addition, thebusiness persons in the office building will add to the number of patrons.

This will be the primary location of the business. There are no plans to open additional locationswithin the first 3 years of operation.

3. Products and Services

As the only coffee shop inside of a 5 block radius of the E-Sception corporate office building, theCappuccino Caf will offer a vital service to the area. Sandwiches, coffee, and treats will enticeall to come for something different. In addition, the multiple flavors of cappuccino will provide anovel twist to the most popular drink in America (Coffee is the #1 drink in the country,surpassing even water). All of the sale items combined with the free wi-fi will provide businesspeople, as well as locals, the opportunity to dine, drink, and surf all at the same time. The patronswill be able to stop before work for a pick-me-up, over lunch to fill the daily void, or for dinner

for a wonderful meal. Food and drinks will be offered for dine-in or take-out.

Local vendors will supply all food. Seattle's Best Coffee will provide all coffee supplies.

Multiple food and beverage distributors are available in the greater Middleburg area.

The Cappuccino Caf will serve coffee product orders at the register and deliver them to thepatron's table when time is needed to prepare the order.

3.1 Product Overview

The Cappuccino Caf will offer many items that would not be made at home. From the gourmetSeattle's Best coffee to the bagel sandwiches, the Cappuccino Caf will offer something differentfor all tastes. Daily cappuccino specials will be offered, featuring a different blend and flavoreach day. The house specialty will be aSpicy Cinnamon

Extra Foam Giant Cappuccino and the cafe will feature a half slice of the famous CheesecakeFactory cheesecake.

Follows is a list of Seattle's Best Coffee selections that will be served at the Cappuccino

Caf:

Beach House Blend (TM) Coffee

Organic Twilight TM SWISS WATER Decaf

Seattle's Best Blend Coffee

Henry's Blend


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Tazza d'Oro

Post Alley Blend

Saturday's Blend Coffee

6th Avenue Bistro Blend

Portside Blend

Post Alley Blend - Decaf Coffee

Grand Central Blend

Organic/Shade-Grown Tierra Verde

100% Kona Coffee

Jamaican Blue Mountain Coffee (8 oz.)

Seattle's Best Blend - Decaf

Costa Rican Coffee

Guatemala Coffee

The Cappuccino Caf9

Colombian Coffee

French Roast Coffee

Italian Roast Coffee

Fair-Trade Certified Organic French Roast

Organic/Shade-Grown Blue Water TM

Organic/Shade-Grown Sumatra

Organic/Shade-Grown Breakfast Blend

Hazelnut Creme Coffee

Irish Creme Coffee


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Irish Creme Coffee - Decaf

Swiss Chocolate Coffee

Vanilla Nut Coffee

2002 Seattle's Best Coffee, LLC - Terms of use

Cappuccino and Coffee will be sold in three sizes, with prices ranging from $2.00 to $5.00.Flavors will be available at an additional charge of $0.50. Espresso, cappuccino, mocha, andother specialty drinks will be available in two sizes and will cost $3.75 and $6.50.

Follows is a list of Cheesecake Factory cheesecakes that will be served in the Cappuccino

Caf:

ORIGINAL NEW YORK STYLE

FRESH STRAWBERRY

WHITE CHOCOLATE

RASPBERRY TRUFFLE

FRESH BANANA CREAM CHEESECAKE

CHOCOLATE SILK AND SATIN CHEESECAKE

TIRAMISU CHEESECAKE

CHOCOLATE MOUSSE CHEESECAKE

VANILLA BEAN CHEESECAKE

TRIPLE CHOCOLATE CHIP

KAHLUA COCOA COFFEE CHEESECAKE

PASSION FRUIT PINA COLADA

DULCE DE LECHE CARAMEL CHEESECAKE

WHITE CHOCOLATE CHUNK MACADAMIA NUT

CHOCOLATE TUXEDO CREAM CHEESECAKETM

DUTCH APPLE CARAMEL STREUSEL


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BROWNIE SUNDAE CHEESECAKE

CHOCOLATE PEANUT BUTTER COOKIE-DOUGH CHEESECAKE

KEY LIME CHEESECAKE

LEMON RASPBERRY CREAM CHEESECAKE

CHOCOLATE RASPBERRY TRUFFLE

GERMAN CHOCOLATE CHEESECAKE

CHOCOLATE CHIP COOKIE-DOUGH CHEESECAKE

STICKY CHEWY CHOCOLATE PECAN CHEESECAKE

LEMON MOUSSE CHEESECAKE

SOUTHERN PECAN CHEESECAKE

CHOCOLATE PECAN TURTLE

CHERRY

BLUEBERRY

ADDITIONAL SEASONAL SELECTIONS

Cheesecake will be sold by the half slice. Prices range from $2.75 to $4.00. Whole cheesecakeswill be available for purchase in a price range of $25.00 to $50.00. Other treats will also beavailable, such as bars, scones, muffins, and cookies.

3.2 Competitive Analysis

The key competitors to the Cappuccino Caf are Starbucks in Greenpoint, The Coffee Bean,Joe's Cafe, Cyber Cafe, and Rick's Cafe. Follows is a breakdown of the local competition:

Starbucks in Greenpoint

The Starbucks in Greenpoint is located at 151A Nassau Ave. Greenpoint, IL. Their hours ofoperation are from 7 a.m. to 8 p.m. Monday through Friday, Saturday from 10 a.m. to

4 p.m. They offer specialty coffees in a cozy atmosphere. They partner with T-Mobile to provideaccess to Wi-Fi for a monthly or per day fee to their patrons.

The Coffee Bean


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The Coffee Bean is located at 435 7th Ave, Park Slope, Middleburg, IL. Their hours of operationare from 9 a.m. to 10 p.m. Monday through Friday, Saturday from 10 a.m. to

10 p.m. They offer specialty coffee and a limited, pre-prepared, sandwich menu.

Joe's Cafe

The Joe's Cafe is located at 500-A Elmont Road, Elmont, IL. Their hours of operation are from 7a.m. to 9 p.m. They serve specialty food, and offer an espresso bar.

Rick's Cafe

The Rick'sCafe is located at 273 Lafayette St., Middleburg, IL (Between Lafayette and Prince St.in the Highpoint residential district). Their hours of operation are from 8:30 a.m. to 10 p.m.daily. They offer Timothy's World Famous Coffee as well as baked goods.

3.3 Suppliers and Inventory

Jane Whittaker will purchase all food items locally. Baked goods will come from Burke

Supply Company, GIlbert , IL. Fresh meats, cheeses, and vegetables will be purchased throughFoodsource Distributors, Middleburg IL. Other food items will be purchased through NickPenachio Company, Inc., Chantilly, IL. Jane spent many hours researching and negotiating thebest prices with these distributors.

Follows is a list of food distributors that will be used for the Cappuccino Caf:

Burke Supply Company

Bldg. 293 Flushing & Cumberland

GIlbert, IL

Foodsource Distributors

1303 Randall Ave

Middleburg, IL

Nick Penachio Company, Inc.

240 Food Center Drive

Chantilly, IL


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Jane spent countless hours taste-testing various brands and types of coffee. After much personaldeliberation, Jane decided that the Cappuccino Caf would exclusively sell

Seattle's Best Coffee, distributed by Seattle's Best Coffee, Seattle, WA. Quality, taste,deliverability, and price were all factors in Jane's decision.

Follows is the contact information for Seattle's Best Coffee:

Seattle's Best Coffee

413 Pine Street, Suite 500

Seattle, WA 98101

Beverages will be purchased through the Coca-Cola bottling company of Chicago. Coke waschosen as the beverage to sell because of price, taste, and quality of service provided by the local

distributor.

Follows is the contact information for Coca-Cola Bottling Company:

Coca-Cola Bottling Company

4824 Mercer Street

Chicago, IL 60603

Jane didn't waste any time deciding where she would get her cheesecake. She has loved the

Cheesecake Factory cheesecake since she had her first piece in San Diego, CA.

Follows is the contact information for the Cheesecake Factory:

Cheesecake Factory

1504 Old Country Road

Westbury, NY 11590

The Cappuccino Caf will need to purchase $5,000 in inventory to start the business, and then

will purchase according to sales because inventory is a function of sales.

4. The Industry, Competition and Market

Currently, there are over 32,210 coffee shops in over 149 countries, with over 20,000 in the U.S.alone. The state of Illinois is home to 3512 coffee shops. The trend is that the traditional coffeecafe will be replaced with cafe's that offer more customer friendly tools, such as wi-fi and other


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web-surfing tools worldwide. Jane is ahead of the competition in the Middleburg district and theCappuccino Caf will be on the cutting-edge of technology.

4.1 The Coffee Shop Industry

The Cappuccino Caf will be competing in the restaurant/food service industry. Along with themany food and beverages that will be served, the Cappuccino Caf will offer free wi-fi.

The restaurant/food service industry is growing at astounding rates. According to the

National Restaurant Association's Industry Forecast, restaurants produce approximately

4% of the U.S. GDP (gross domestic product). This total is expected to rise steadily over thecourse of the next 10 years. Within eight years, it is expected that the average family will spendmore than half of their food budget on pre-prepared food.

4.2 Primary Competitors

COMPETITION

The following cafes will be direct competitors to the Cappuccino Caf:

Starbucks in Greenpoint

The Starbucks in Greenpoint is located at 151A Nassau Ave. Greenpoint, IL. Their hours ofoperation are from 7 a.m. to 8 p.m. Monday through Friday, Saturday from 10 a.m. to

4 p.m. They offer specialty coffees in a cozy atmosphere. They partner with T-Mobile to provideaccess to Wi-Fi for a monthly or per day fee to their patrons.

The Coffee Bean

The Coffee Bean is located at 435 7th Ave, Park Slope, Middleburg, IL. Their hours of operationare from 9 a.m. to 10 p.m. Monday through Friday, Saturday from 10 a.m. to 10 p.m. They offerspecialty coffee and a limited, pre-prepared, sandwich menu.

Joe's Cafe

The Joe's Cafe is located at 500-A Elmont Road, Elmont, IL. Their hours of operation are from 7a.m. to 9 p.m. They serve specialty food, and offer an espresso bar.

Rick's Cafe

The Rick'sCafe is located at 273 Lafayette St., Middleburg, IL (Between Lafayette and Prince St.in the Highpoint residential district). Their hours of operation are from 8:30 a.m. to 10 p.m.daily. They offer Timothy's World Famous Coffee as well as baked goods.


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All competitors offer coffee, sandwiches and treats, however, none of them offer free

wi-fi. The Cappuccino Caf offers all of the above with pleasant service!

4.3 Market Size and Growth

The following information has been provided by the U.S. Census:

Population, 2001 estimate:

Middleburg - 1,337,928

Illinois - 19,011,378

Population percent change (April 1, 2000-July 1, 2001):

Middleburg - 0.4%

Illinois - 0.2%

Population, percent change (1990 to 2000):

Middleburg - 10.7%

Illinois - 5.5%

Land area, 2000 (square miles):

Middleburg - 42

Illinois - 47,214

Persons per square mile (2000):

Middleburg - 31,729.8

Illinois - 401.9

The Middleburg district in Illinois is one of the largest counties in the U.S. With almost 32,000people per square mile so all businesses have the potential of filling various needs. TheCappuccino Caf is no exception. With the growth rate expected to rise, the

Middleburg will provide an ever-growing resource of people for the Cappuccino Caf.

Source: U.S. Census (July 15, 2003)


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4.4 Customer Profile

The primary target market for the Cappuccino Caf will be the local business people.

Area buildings are filled will office personnel, approximately 250,000 employed within two

square miles. These business people will frequent the Cappuccino Caf before work for a cup ofcoffee, at lunch for a tasty sandwich, and after work for a treat and to check their email and surfthe web.

Secondary target markets for the Cappuccino Caf are the people who frequent the library,Middleburg Community College students, and the tenants of the E-Sception corporate officebuilding. The community college has over 20,000 students. The library averages over 700visitors daily, and the E-Sception corporate office building, with 16 companies leasing space,will average 600 employees.

It is well known that people with higher expendable income frequent coffee shops.

Follows an estimate of the median household income for Middleburg County:

Middleburg County:

Estimate - $25,750

90% Confidence Level - $23,404 to $28,084

Source: U.S. Census (July 15, 2003)

Although $25,750 is below the median for the state, most of the employees that work around theCappuccino Caf are well above this level. The majority of the employed people in the areacommute from within Middleburg metro area.

5. Marketing Plan

The Cappuccino Caf will build its marketing plan around the four P's of marketing. They are:

Price - The Cappuccino Caf will be known for its competitive prices for food and Internetservice.

Product - The Cappuccino Caf will offer a wide variety of food, beverages, and treats.

Only the highest quality items will be sold.

Place - The Cappuccino Caf will be located in the E-Sception corporate office building. A greatplace for food, fun, and entertainment.


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Promotion - The Cappuccino Caf will be promoted in a variety of ways.

5.1 Competitive Advantage

The main competitive advantage of the Cappuccino Caf is its menu. No other cyber caf offers

a full range of food, beverages, and treats to go along with their connectivity. The

Cappuccino Caf will offer only the best products and service to its customers.

The Cappuccino Caf's other competitive advantage is its location. Located on the busiestintersection in the Middleburg district the corner of 15th Street and Main Street, the caf willderive substantial business from business professionals.

5.2 Pricing

Jane has done extensive research regarding pricing for the Cappuccino Caf. She has polled local

and regional cafes, as well as look at national statistics on coffee and sandwich pricing. Throughmenu analysis (found in the Appendix), Jane has planned her menu pricing accordingly. Allprices take into consideration the cost of material, 25% for food and 45% for beverages.

Coffee will be sold in three sizes, with prices ranging from $2.00 to $5.00. Flavors will beavailable at an additional charge of $.50. Espresso, cappuccino, mocha, and other specialtydrinks will be available in two sizes and will cost $3.75 and $6.50.

Cheesecake will be sold by the half slice. Prices range from $2.75 to $4.00. Whole cheesecakeswill be available for purchase in a price range of $15.00 to $20.00.

Sandwiches will be sold for various prices, depending on the meat chosen. A veggie sandwichwill be the lowest priced sandwich at $2.50. The highest priced sandwich will be the prosciuttoand provolone on a wheat croissant. It will sell for $6.75. All sandwiches are sold deli-style.

All soft drinks and juices will be sold for $1.25.

5.3 Promotional Plan

The Cappuccino Caf will be promoted in a variety of ways. The annual budget allotment foradvertising is $19,904 for the first year of operation. These monies will be distributed as follows:

1. Fliers ($4,500) - Fliers will be printed monthly showing the nightly specials. They will bedistributed throughout the area on cars, handed out at the library, delivered to the local officebuildings, and posted on street signs and other obvious places.

2. Print ads ($2,450) - The Cappuccino Caf will run a bi-weekly ad in the Chicago Tribune.This classified ad will introduce the Middleburg area to the new cafe and tell hours of operationand location information. The ads will cost $94.25 per run.


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3. Billboards ($3,900) - The Cappuccino Caf will utilize two billboards. The first is on thecorner of 15th Street and Main Street (on top of the E-Sception corporate office building), andthe second is on the busy I495 expressway, approximately 3 miles from the cafe. The billboardswill be rented for a total of 7 times (four times for the billboard on top of the E-Sceptioncorporate office building, three times for the billboard on the I495 expressway), at a cost of

$557.14 per month.

4. Radio ($5,550) - The cafe will run many radio spots on local radio stations. The ads willfeature the daily coffee specials and will air during the morning and afternoon drive times tocapitalize on drive-by traffic.

5. Entertainment ($4,000) - The Cappuccino Caf will feature local entertainment every otherweekend. The entertainers will provide music, poetry, art, and dancing. These events will bepromoted through additional print and radio spots.

6. Web Presence ($5,000) - The Cappuccino Caf will promote the business and specials over

the Internet through a web presence. The website will be updated monthly to advertise specialsand product offerings.

The Cappuccino Caf will promote itself to its current customers by offering discountmemberships for frequent consumers. There will be buy 10 get one free cards available forcoffee, and two stamps will be given out for their Two-Stamp-Tuesday" promotion.

The remaining advertising budget will be used to print membership and frequent consumer cards.

5.4 Feedback

The Cappuccino Caf will use two methods to measure customer satisfaction. They include:

Comment Cards:

With each purchase, customers will receive comment cards to fill out. The cards will havequestions about quality, speed of service, attitude of the employees, and overall satisfaction fromthe experience.

Personal Interviews:

On a daily basis, Jane will stop and speak with customers to ask them about their food, drinks,

and service. She will give out 25% off coupons to people who give her "honest" answers.

6. Operating Plan

The Cappuccino Caf will be located iin ground floor of the E-Sception corporate officebuilding, on the corner of 15th Street and Main Street, Middleburg, IL 60603. The cafe will


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utilize the newly remodeled main floor of the building, which has 3,000 square feet of usablespace.

There is a substantial amount of start-up equipment that will need to be purchased. Most will befinanced with the SBA loan. Jane has secured local vendors to supply food and beverages for the

cafe and hired Kevin Whittaker to be her assistant manager.

6.1 Location

The Cappuccino Caf will be the first free "connected" cafe in the Middleburg district.

Located on the corner of 15th Street and Main Street in downtown, the Cappuccino Caf will besituated in the most high traffic area of Middleburg. The cafe will move into the newly upgradedE-Sception corporate office adjacent to the local library.

6.2 Facility

The E-Sception corporate office building, an 1990's creation that will house the

Cappuccino Caf has been updated to facilitate new building codes and improved technologicaldevices. Vaulted ceilings add to the quaint charm of the coffee shop. The cafe walls will bepainted in warm tones to enhance the calm environment of the coffee shop; however, the largepillars that hold up the ceiling will be decorated with art from local artists. The furniture will beshallow wooden tables and chairs with a glossy finish.

The cafe will utilize the main floor of the building, and cater to the office employees and nearbystudents. The main floor has 3,000 square feet of usable space.

6.3 Operating Equipment

In order for the Cappuccino Caf to begin operations, there are many items that will need

to be purchased. Follows is a list of items necessary to begin business:

3 Bunn-O-Matics - $7,500

3 Cappuccino Makers - $15,000

2 Computers - $1,600

Routers & Networking - $2,500

Printers & Misc. Hardware - $1,000

Furniture & Fixtures - $25,000


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Counter & Kitchen Equipment - $7,000

Signage - $5,000

Flatware & Tableware - $2,500

Leasehold Improvements - $10,000

POS System - $12,000

Total Purchases - $89,100

See purchases list, in the Appendix, for more information on equipment purchases.

6.4 Suppliers and Vendors

Jane Whittaker will purchase all food items locally. Baked goods will come from Burke

Supply Company, GIlbert ,IL. Fresh meats, cheeses, and vegetables will be purchased throughFoodsource Distributors, Middleburg, IL. Other food items will be purchased through NickPenachio Company, Inc., Chantilly, IL. Jane spent many hours researching and negotiating thebest prices with these distributors.

Follows is a list of food distributors that will be used for the Cappuccino Caf:

Burke Supply Company

Bldg. 293 Flushing & Cumberland

GIlbert ,IL

Foodsource Distributors

1303 Randall Ave

Middleburg, IL

Nick Penachio Company, Inc.

240 Food Center Drive

Chantilly, IL

Follows is the contact information for Cappuccino Caf's coffee supplier:

Seattle's Best Coffee


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413 Pine Street, Suite 500

Seattle, WA 98101

Follows is the contact information for Cappuccino Caf's beverage supplier:

Coca-Cola Bottling Company

4824 Mercer Street

Chicago, IL 60603

Follows is the contact information for Cappuccino Caf's cheesecake supplier:

Cheesecake Factory

1504 Old Country Road

Westbury, NY 11590

Follows is the contact information for the Cappuccino Caf's website development and

hosting supplier:

A1 Internet Hosting

3283 J Street

Chicago, IL 60603

6.5 Personnel Plan

Jane Whittaker has managed several restaurants in the Chicago area. She was kitchen manager atChez Rene for 2 years and general manager at The Red Tiger Bar and Grill for 3 years. Jane hasproven herself as a leader in providing quality products with exceptional service. Throughout her7 years of restaurant industry experience Jane has excelled in training Employees and "doingmore with less" in order to trim labor costs.

She knows what it takes to be successful, and is prepared to spend the time necessary to make

the caf a success.


Follows is a list of personnel needed per shift, and a breakdown of costs per employee:

PERSONNEL PLAN:


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Monday thru Thursday, two employees will be working from 7 a.m. to 11 a.m., three from 10a.m. to 3 p.m., and two from 3 p.m. to 9 p.m., which translates into 35 hours per day. Friday andSaturday will work the same; however, the two employees closing will work until 1 a.m., whichis 39 hours per day. Sunday will require three employees all day; this equals 24 hours for theday.

The personnel plan requires the following breakdown of employees, the total hours they

will work, and the cost for each:

1. One Manager @ $16 = 2,080 @ $16 = $33,280

2. Two Asst. Manager @ $13 = 4,160 @ $13 = $54,080

3. Seven Part-time @ $7.50 = 6,344 @ $7.50 = $47,580

Additional salaries and wages expenses will come from raises and bonuses for productivity (all

decided by management). Jane will be paid through distributions.

Follows is a breakdown of annual personnel expenses for the Cappuccino Caf's first three

years:

Year 1 - $163,705

Year 2 - $180,076

Year 3 - $198,083

6.6 General Operations

The Cappuccino Caf will be open for operation the following hours:

Monday thru Thursday: 7 a.m. to 9 p.m.

Friday and Saturday: 10 a.m. - 1 a.m.

Sunday: 10 a.m. - 4 p.m.

The Cappuccino Caf will comply with all OSHA, federal, state, and local laws and regulations.

The cafe will obey all worker's compensation rules.

7. Management

Jane Whittaker has managed several restaurants in the Chicago area. She was kitchen manager atChez Rene for 2 years and general manager at The Red Tiger Bar and Grill for 3 years. Jane hasproven herself as a leader in providing quality products with exceptional service. Throughout her


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7 years of restaurant industry experience Jane has excelled in training Employees and "doingmore with less" in order to trim labor costs. She knows what it takes to be successful, and isprepared to spend the time necessary to make the caf a success.

Kevin Whittaker will be the assistant manager. Kevin comes highly recommended. He has been

an assistant manager for the Web Cafe in Chicago for over 3 years.

8. Goals and Strategies

The Cappuccino Caf will be successful. This business plan has documented the feasibility ofsuch a venture, and will result in acquiring the proper financing to start the cafe. All industrytrends, competitive analysis, and financial reports support this fact.

8.1 Business Goals

Jane Whittaker has several goals for her first three years of operations. They are as follows:

1. Achieve net income of $36,000 for year 1.

2. Achieve ending cash of $15,000 for year 1.

3. Grow sales to $622,575 by the end of year 3.

4. Pay off the loan from her parents in month 29.

8.2 Keys to Success

Jane Whittaker has identified 6 keys to success. They are:

1. Maintain low cost of goods and inventory.

2. Serve the highest quality food and beverages.

3. Offer the best and friendliest service.

4. Immediate market penetration.

5. Develop a strong team.

6. Do more with less.

8.3 Future Plans


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Jane plans on paying off her debt as soon as possible. According to financial projections, Janewill have enough extra cash by the end of year three to pay off the rest of her debts by the fourthmonth of year four.

9. Financial Plan

The financial projections for the Cappuccino Caf's are based on conservative sales and industrystandard expenses. These projections allow for long-term loan repayment and adequate cashflow.

Below are the Cappuccino Caf's projected annual sales:

Below are the Cappuccino Caf's projected annual expenses:

In addition to above projected sales and expenses, the Cappuccino Caf's financials include thefollowing assumptions:

Cash Investment: $24,800 from Jane and Kevin Whittaker


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Renovation/Equipment/Purchases: $91,000

Loans from External Parties:

SBA loan: $50,000 @ 10.0% over 5 years

Loan from parents: $20,000 One-pay loan @ 5.0% due month 30.

The following sections explain the financial projections for the Cappuccino Caf.

9.1 Additional Assumptions

NONE

9.2 Explanation of Break Even Analysis

BREAK EVEN ANALYSIS

Income Analysis

Cash Analysis


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9.3 Explanation of Projected Profit and Loss

PROFIT & LOSS


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Sales: Month 1 of $42,910 and an 8% annual growth rate (based on similar sized concepts).

Cost of Sales:

Food: 25% of sales.

Beverages: 75% of sales.

Operating Expenses - Based On Industry Standards, Except:

Salaries & Wages Year 1 - $163,705, Year 2 - $180,076, Year 3 - $198,083 (add 16% payrollburden)

Advertising: Estimated to average 3.7% of sales, slightly lower than a new restaurant.

Lease: Amount negotiated with owner of the E-Sception building.

Internet Access & Cable: Negotiated with local service provider.

9.4 Explanation of Projected Cash Flow

CASH PLAN


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Other Expenses: Operating expenses

9.5 Explanation of Projected Balance Sheet

BALANCE SHEET


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Inventory: Fixed at $5,000.

PPE: See Purchases List in Appendix (Initial balance of 91,000).

A/P: Inventory purchases.

Line of Credit: Not used.

Current Maturities & LT Debt: Loans from external parties:

SBA loan: $50,000 @ 10.0% over 5 years

Loan from parents: $20,000 One-pay loan @ 5.0% due month 30.

10. Appendix

This section contains the following reports and supporting documentation:

Income Projection


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Expense Projection

Profit & Loss

Balance Sheet

Cash Plan

Ratio Analysis


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cappuccino cafe new b plan

Documents