Table of Contents
- Profile of Business/ Idea
- Strategy and Objectives
- Financial Strategy
- The Marketing Strategy
- Pricing Strategies
- Human Resource
- Ethical Considerations/ Social Responsibility
- Disagreement That Could Occur
- How to Solve These Disagreement
- Supplier Proprietor Contract
- Supply of Services and Products Agreement
Along with the Seattle Drive Inn, Cafe Rose will be housed. Due to the nearby companies, such as the country club whose customers are among the target clients, florists, gift shops, and malls, Seattle Drive Inn attracts reasonable footfall levels.
The new modern interior décor will make up Café Rose. This will deliver a contemporary class environment. The café will also be facing north; customers will therefore be able to see the outside sun and atmosphere. The glass panes which make up the wall will further encourage this.
Caesar salads, chicken burgers, and focaccias are Café Rose ‘s main food items. These, along with crepes and risottos, will be served. The menu will consist mainly of Mediterranean cooking. We’ll serve hot and cold drinks as well. However, alcoholic drinks at Café Rose will not be sold.
Profile of Business/ Idea
- Product Leasing: With the option of extension, the lease location lease will last for five years.
- Entity of Company: Café Rose will be a sole proprietorship. This means only one person will own it. This implies that the company and the owner are one, so the owner is responsible for any losses or debts incurred by Café Rose.
- Item Menu: The menu will be a café cuisine mixed with Mediterranean cuisine. As a consequence, the menu will draw consumers who are interested in coffee cuisines and who enjoy Mediterranean cuisine. New and high-quality food items will also be on sale on the menu. The majority of these will be prepared on request. The menu won’t be comprehensive. However, it will provide consumers with a large range of choices. This size of the menu would ensure low running costs and high profits. To avoid keeping the customers waiting, the menu items will be simple to prepare. It will integrate coffee and other hot drinks into the menu. This will improve the clients’ chances of purchasing hot drink accompaniments.
- Profitability: The profitability of Café Rose is based on;
- Low/ affordable cost of the food items in the menu
- Everything in the menu sells hence spread of the revenue to all menu items
- Vision: Our vision is to be the highest-rated and go-to café for customers and critics.
Strategy and Objectives
- Earn high profits
- Provide the best customer service
- Establish a strong customer base
- Create strong ties in the business community
- Improve consumer awareness of Café Rose brand and products offered Strategies
- This entails the steps to be taken to achieve the objectives
Extended Opening Hours
The establishment will be operating on a 24-hour seven days a week basis. This will be made possible by working shifts for the employees. This will ensure that consumers can rely on the establishment to cater to their food needs any time of the day, and any day of the week. This will provide high sales, which in turn translates to increased profits.
The menu design will entail:
- Easy to understand the language
- Rounded prices of food items
- High-profit foods will be at the top and bottom of the menu
- Highlighted special menu items for sales increase
- This will help to increase the average spend per customer.
The Marketing Strategy
- Customers: Customer research will be conducted to establish what customers want. This will be in the form of questionnaires. Feedback forms will also be issued to customers to give a rating of their experience with the offered products and services. They will also provide recommendations for improvement.
- Competitors: There are various cafes along with the Seattle Drive Inn. These are the main competitors. To deal with competitions, we will conduct surveys to establish what the competitors are offering. We will improve our menu based on this. Since many competitors do not offer home and office deliveries, we will also utilize it to cover this customer base.
- Promotion: There will be promotional days on specific menu items. When a customer buys one of the promotional menu items, they get another one for free. This will increase the number of customers and the average spend per head.
- Website: A website for the establishment will be created. On this website, updates on new menu items will be posted. There will be photos of the various products offered to build brand awareness.
- Advertisement: Advertisements will be put out in social media outlets. This is because social media marketing is cheap. This medium also offers access to many potential customers.
The pricing strategy will take into consideration the target market. In this case, we target the upper-middle class. The prices will be set based on the affordability of the items to the target market. It will also take into consideration the cost of production and the expected profit.
Due to our establishment’s standard of services, hygiene, and aesthetic view, our process will be slightly higher than that of our competitors. As a result, our prices will be set at 5% higher than those of our competitors.
Staffing: Employees will be hired based on the educational level in the relevant field. Experience is also a must.
Staff Feedback: Employees are an integral part of any organization. Therefore, their input is needed. We will have quarterly staff feedback forums whereby they will give their recommendations about the business.
Documentation of the Policies
HR will be responsible for documenting the policies of the establishment. This will guide the employees in conducting their work.
Ethical Considerations/ Social Responsibility: The ethical considerations in this case include;
- Proper waste disposal to avoid harm to the environment
- Fair treatment to the employees
- Creation of job opportunities for the host community
Disagreement That Could Occur
Since the business will be a sole proprietorship, disputes between partners are ruled out. However, other conflicts could occur between the suppliers, vendors and even employees. This includes;
- Poor performance by both employees and the suppliers
- Delayed payment
How to Solve These Disagreement
The best way to solve these disagreements would be to have one on one discussions about the way forward. This is because sometimes, the business environment is unpredictable. As a result, such scenarios are unavoidable. There is also a need to have a contract between the employees and the suppliers, stipulating what steps should be taken in case such disagreements occur.
In cases where the disagreements are not solved, legal action should be taken. This is to ensure that the due process of the law takes place.
Lease= USD 20000
Interior Décor= USD 5000
Ingredients = USD 700
Miscellaneous = 1200
Total= USD 28700
SOURCE OF THE START-UP MONEY
Owner Savings= USD 8700
Loan= USD 20000
Supplier Proprietor Contract
This contract stipulates the responsibilities of the supplier and those of the business owner or proprietor. It also provides the conditions for the evaluation of the supplier performance.
Supply of Services and Products Agreement
- Café Rose
- Seattle fresh Farm Produce Suppliers Limited
to be provided by the supplier
- Milk (Raw unprocessed)
- Coffee beans (grade one)
- Green Vegetables
- Tomatoes and onions
- Agreement: The supplier will supply the deliverables mentioned above every 6 am every Thursday at the premises of the Café Rose. The cost of transportation will be on the supplier. Café Rose will only pay for the price agreed for the deliverables. Only products that have been requested in the inventory will be delivered for and taken during supply. The supplier is also expected to provide impromptu deliveries upon request by Café Rose.
The quality of goods requested will be checked before being accepted by Café rose. Goods of low quality will not be accepted, and the supplier will be liable for damages caused to Cafe Rose.
The payment for the deliverables will be sent via cheque to the bank details provided by the supplier. Payment will be made once every month on the first Thursday of every month.
Café Rose is at liberty to terminate business with the supplier based on the supplier’s quality of goods. This will also be found in the timeliness of the deliveries by the supplier. In case of delay of payments, the supplier should give one-week late notice before taking any legal action. However, an interest of 2% per week will be incurred on balance delayed.
Confidentiality: The details of the agreement shall remain confidential between the supplier and Café Rose. Data on the supplies and payments made shall not be shared with any third parties unless in the case of legal suits.
Limitation of Liability: Café Rose shall only be liable to pay for the supplies which meet the standards specified in the contract agreement. In case of accidents during transportation, the supplier shall ensure that arrangements are made for the stores to reach Café Rise and inform the delay’s establishment.
Ending the Agreement: The contract is valid for one year. However, there is the provision of Café Rose to terminate the agreement. This is based on the quality and timeliness of supplies by the supplier.