A business plan for

opening a coffee shop

at Bhubaneswar.
Presented by
Ankush pani
Hamsar alli
Gautam das
MBA 1st year, BIITM.

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es`Prezzo
its more beyond

coffee ..

Executive
summary..
My mission is to provide a friendly , comfortable
atmosphere where the customers can receive quality food,
drinks and service at a reasonable price.
My caf will offer a variety choices to the customers.
Cappuccinos, lattes, espressos, smoothies, regular coffee,
soft drinks and tea of all sorts will be available.
The caf will also serve deli-style breakfast sandwiches
with the freshest ingredients, muffins, croissants,
cinnamon, rolls, coffee cake and other tasty treats.
Esprezzo will be open from 8:00 am to 8:00 pm for week
days and in weekends it will be open till 9:00 pm.

Why coffee
shop ???

Year
QUANTIT
Y
12000

wise coffee consumption in India.

2.40.550
kg

10000

9622

8000
6000

14.4450 kg
5778

4000
2000
0

23450
kg

938
2009

3500
kg

66,700 kg
2668

1400
2010

2011

2012

2013

YEA
coffee
bags in thousands ( 1 bag = 25 kg coffee)
R

Information source =
international coffee
organization

YearQUANTI
wise coffee consumption in Bhubaneswar - Odisa.
TY

600

12,850 kg

500

514

400

5,600 kg

300
200

75 kg

600 kg

3,025 kg

100
0
3
YEA 2009
R

224

121
24
2010

2011

Information source = NCAI

(national coffee association
of india)

2012

2013

No. of coffee shops at bbsr

Total coffee shop = 259
Delta
square

Rasulgarh

12%

10%

30%
48%

Sahee
dnaga
r

NO. OF OUTLETS

patia
125

rasulgarh
32

saheednagar
77

delta square
25

Pati
a

Esprezzos STP.
Segment
People
looking to
go to have
a coffee and
snacks at a
hangout
place

Target
group
Youth in
the
middle
and
higher
income
groups

Positioning
Indias
favourite
coffee shop,
for the
young and
the young
at heart

Target
market.

Why Patia???
Initially as we have a low budget

we will go with only 1 shop.

It is observed that demand for
coffee at patia is high.
Most of the customers are
working youths at patia who have
more disposable income and they
are early adopters.
It is observed that during
weekdays 46% of the population of
Bhubaneswar travel to Patia.
Big bazar being an ideal
shopping center attracts many
customers at Patia.
Patia being an official area most
of the employees opt for coffee,

Country
INDIA

State
ODISHA
District
KHORDA,
BHUBNESWAR

Selected
location.
PATIA

Esprezzos SWOT
ANALYSIS.
STRENGTH
RESONABLE
PRICE.
WIDE VARIETY
OF COFFEE
AND DRINKS.
COFFEE ART.
AT HOME
FEELING.
GAMES LIKE
BILLIARDS
AND
BOWLING.

WEAKNESS

OPPURTUNITY
JOB
NO INITIAL
OPPORTUNIT
REPUTATION.
IES.
TURN DOWN
RISING
IN THE
DEMAND FOR
ECONOMY.
RECREATION
AL CENTERS.
START-UP
COSTS.
NEW
BUSINESS.

THREATS
As competitors

CCDs,
BARISTA,
STAR
BUCKS,
McDonalds
and
OTHER
LOCAL
CAFES.

 Large
outlets

Traditiona
l coffee
style.
Costly.

CCDs
BARISTA
STAR BUCKS
McDonalds
OTHER LOCAL
CAFES.

Introduci
ng
cheaper
version of
coffee.
Tap the
smaller
towns.

Merchand
ising.

THREAT

Ambience
and
service

High
competiti
on.

Our competitors

OPPURTUNITY

Brand
name

WEAKNESS

STRENGTH

Competitors
SWOT analysis.

Large
unorganiz
ed
market.
Entry of
new
players.

COMPETITORS - PORTERS 5
FORCES.
1.SUBSTITUTE PRODUCTS

Hot chocolate
Green tea
Teeccino
Rooibos

3.HIGH BARGENING
POWER OF SUPPLIERS

PRESENT
INDUSTRY
RIVALRY.

CCDs
BARISTA
STAR BUCKS
McDonalds
OTHER
LOCAL
CAFES.

2.POTENTIAL ENTRANTS
Local vendors
Tea stalls
Subsidiaries of
existing
coffee shops.

4.High BARGENING
POWER OF BUYERS

Goals

Objectives

To create
huge brand
value.

By providing best
quality food
products

Brand
association

By providing best
service

Create
awareness
of the brand

Delightful interiors

Brand
positioning
Market
developmen
t
Business
growth

As a reasonable
coffee shop with
best quality
product
Extension of shops
at various places
Increasing revenue

Marketing strategy.

PRODUCTS
ESPRESS OTHER
O DRINKS DRINKS
American
o
Breve
Cappuccin
o
Latte
Mocha
Macchiato

Hot
chocolate
Hot tea
Chai tea
latte
Kids hot
cocoa
Fountain
drinks
Juice
White and
chocolate
drinks

COFFEES

BAKERY

Daily
brew-reg

croissants
Bagels
Fruit
Assorted
Blended
brownies
ice
and cookies
coffee
Pie and cake
drinks
by slice
Muffins
Cinnamon
rolls
Breakfast
sandwiches

Organic
French
roast.
World
tour
blend.

SMOOTHIE
S

ICED
DRINKS
Coffee
Jumpin
java
iced

PRICE

Basis of demand and

cost estimation.

Demand forecasting is made

on the basis of observation.
We have observed CCD and
Barista for 6 months and the
footprints of the people is
our forecasted demand.

The cost of labour and rent

was also estimated on the
basis of observation of pre
employed workers at CCDs
and Barista.

Start- up costs.
First month rent =
----------------------------------------------------------Rs.10,000/- month.
Modernize fee =
-----------------------------------------------------------------------Rs. 1,00,000/( impression- calm comfortable soft mood
light music and paintings.)
Furniture fee= ----------------------------------------------------------------Rs.
70,000/ Equipment fees = ------------------------------------------------------------Rs.
1,80,000/(coffee machine, coffee mill,
air conditioning, stereo,cash registers, water treatment.)
Supplies fees =-----------------------------------------------------------------Rs.
27,000/(Coffee snack, coffee cups,
napkins, forks , knives etc)
Water and electricity bill =------------------------------------------------Total =
Rs.

Employees pay
Waiter, waitress, cashier & coffee maker
(Rs 15/- per hour *30days * 8 hours* 7
employees)-------------------Rs. 25,200
Manager
------------------------------------------------------------------Rs.7,500
pm
Total=
37,700

Rs.

Accountant=
--------------------------------------------------------------Rs.5,000 PM

Operating cost.
Fuel ,water and electricity---------------------------------------------------Rs 8000
Annual rent----------------------------------------------------------------------Rs
1,20,000
Salary per month------------------------------------------------------------- Rs 37,000
Supply cost-----------------------------------------------------------------------Rs 20,000
Annual Advertising costs of------------------------------------------------- Rs
60,000
Annual insurance charges----------------------------------------------------Rs
10,000

Total
(appx)

Rs 81,543

Price and
revenue..

Coffee Rs.50 to Rs.150 (according to flavor)

Cake Rs.60 to Rs.300
(according to flavor)

Cookie Rs.45 to Rs.250 (according to flavor)

Estimated sales 125 cups coffee, 30 pcs. cakes and 30
pcs. of cookies.
Day revenue = (75*125) + (150*30) + (125*30) =
--------------------------- Rs 17,750
Monthly revenue = (Rs 17,750)*(30)
=----------------------------------------- Rs. 5,32,500

Government
taxes
Sales tax (5% of revenue)
=----------------------------------------------------- Rs. 26,625
City planning tax ( 1.5% of revenue)
=--------------------------------------- Rs. 7,988
Total monthly tax
expense =

Rs. 34,613

1 OPERATING COST
Fuel ,water and electricity---------------------------------------------------Rs 8000
Annual rent----------------------------------------------------------------------Rs 1,20,000
Salary per month------------------------------------------------------------- Rs 37,000
Supply cost-----------------------------------------------------------------------Rs 20,000
Annual Advertising costs of------------------------------------------------- Rs 60,000
Annual insurance charges----------------------------------------------------Rs 10,000
A-

Total (appx)

Rs 81,543

2 TAXES AND RATES.

Sales tax (5% of revenue) =----------------------------------------------------------------- Rs. 26,625
City planning tax ( 1.5% of revenue) =-------------------------------------------------- Rs. 7,988

B-

PROFIT = REVENUE- (A + B )
81543) (Rs 34,613)

Rs 4,16,344

Total monthly tax expense =

Rs. 34,613

(Rs 532500 ) (Rs

Monthly
profit
MONTHLY COST

TOTAL OPERATING COST Rs 81,543/MONTHLY PROFIT

(TR TC TAXES) =
(Rs 532500 ) (Rs 81543) (Rs
34,613) = Rs 4,16,344

Funds borrowed
Rs. 4,00,000/- from SBI
Interest payment monthly @ 12.50% =
37,500

UNIQUE SELLING PROPOSITION

Positioning
Esprezzo is not just a coffee shop.. As the name suggest itself its the
way to express ones feelings.
Esprezzo provides coffee art facility which is new to the market.. Its
tag line is share your mood with a coffee. some of the sample are :-

Different interiors (physical evidence)

ESPREZZO WILL BE FULL WIFI

ENABLED
WE WILL GO FOR OFFICE HOUR
DELIVERY FACILITY
SPECIAL THEME FOR
OCCASIONS LIKE BIRTHDAY AND
FUNCTIONNS

IMPLEMENTATION PROCESS AND

CONTROL..

ADS- COMMERCIAL
WE WILL GO WITH A COMMERCIAL WHERE WE WILL CAST A COUPLE.
THEY WILL BE HAVING MISSUNDERSTANDING BETWEEN EACH OTHER.
THEY HAVE BEEN TO ESPREZZO.
THE WAITER WILL FIND THAT THE COUPLE ARE NOT IN A GOOD MOOD.
THE BOY WILL ORDER A COFFEE
THE WAITER WILL SERVE THE COFFEE TO THE COUPLE IN WHICH SORRY
WOULD BE WRITEN , WHICH WILL STATE THE COFFEE ART.
THE MISSUNDERSTANDING WILL COME TO AN END AND OUR BRAND NAME
WILL BE PUBLISHED WITH A TAG LINE ITS MORE BEYOND COFFEE