Home Marketing The Daily Perc Coffee Shop, Inc. Business Plan

The Daily Perc Coffee Shop, Inc. Business Plan

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Executive Summary

The Daily Perc Coffee Shop stands out as a beverage business that delivers the desired products to the customers. Additionally, the firm specialises in providing different effects to the early morning and the travelling consumers to keep them satisfied. TDP, which stands for The Daily Perc, places its overall focus on two broad types of customers. The first one includes travelling, while the second group consists of captive consumers. As such, the business makes it easy to specialise in the needs presented by each of these groups. Just like any other beverage business, TDP faces stiff competition from companies such as Nestle among others. However, by selecting the best market segment and the right product for each customer, TDP delivers and avoids the stiff competition.

The Daily Perc Coffee Shop business plan

  • Objectives

In its operations, the business intends to increase its overall recognition in the different markets such as the captive and the commuter by engaging in mobile cafes in the most strategic locations. The second objective focuses on increasing the business’s ability to donate more to charity, resulting from increased total sales. The company also intends to achieve a gross margin of approximately 45%, accompanied by a net profit of around 15% of the total sales made in a given year. 

Keys to Success

The business’s primary key to success lies in the desire to offer products and services that satisfy every customer. For instance, the business claims in their ultimate goal that their primary aim focuses on the provision of products that meet each customer who walks through their doors. The business’s strategic market segmentation stands out as another primary factor that may lead to the ultimately desired success. 

Mission, Vision, and Culture


The company focuses its mission and vision on three items: the community, economy, and the product. It desires to increase the growth rate by attaining the expected profits while building a strong community based on customer loyalty. Finally, the company aspires to deliver the best products to its customers in achieving the top-ranking position in the beverage industry. 


The vision of the company focuses on the desire to attain the top ranking in the field of beverages and fast foods and gain the desired market recognition among the target customer segments. 


Through the company’s operation by an able workforce, TDP believes in serving the customers in the best way possible to achieve the desired goals and objectives in the long run. The company’s organisational culture enabled it to build a strong reputation among the various populations in the areas where it operates. The company’s strength comes from the management that acts as an excellent example of what the other staff members should follow.  

Company Summary

TDP stands out as a company specialising in the provision of beverages to the selected customers within the entire population. Through the company’s ability to use the latest technologies in their operations, TDP manages to deliver the desired products such as the hot and cold beverages to its consumers whenever they place their respective orders. Hence, this creates a convenient way to have the selected items to the esteemed customers located strategically in the US’s different parts. Today, the company offers its products in different joints such as gas stations and fast food stores, among others. 

Company Ownership 

The company stands out as a limited liability institution where currently, Bart and Teresa own the membership shares to raise capital. The company now plans to sell at least 100 units to the potential investors who would associate every one of them with a minimum of $21,250 regarding the total contribution made.  

Start-up Summary

During the start-up of any business, the entrepreneur must consider the various issues at hand that constitute the most important things to consider. For instance, the company must consider legal, equipment, labour, expenses, stationery, inventory, and assets, among others. In this case, the company intends to spend approximately $175,000 in terms of start-up expenses. Additionally, the company projects a figure of about $200,000 regarding the total assets required. Hence, the company intends to use about $375,000 for the complete start-up.  

Market Analysis Summary

The company intends to discuss its attention on two different groups of customers. The first group consists of the commuters who travel most of their time. The second group consists of the consumers confined in different locations for various reasons, limiting their overall movement from one place to the other. 

Market Segmentation

After considering the mentioned market segments, the company intends to deliver the desired goods and services to each customer according to their overall needs. The primary motivating factor comes from the fact that most of the existing companies do not deliver the desired products as per the needs of the consumers. To satisfy the commuter consumers, the company intends to build various drive-thru joints while using mobile cafes for the local group. The restricted customers often reside in areas such as schools or campuses, among others. 

Target Market Segment Strategy

The target market segments for the company comprise of the mobile and stationary customers. For the latter, the company intends to take the mobile cafes to them in their residences such as campuses and the other schools among other areas. To achieve the desired goals, the company intends to use the available community development programs. To reach out to mobile customers, the company plans to select strategic positions located in high traffic areas with a high degree of visibility to attract consumers’ attention. The company assumes that mobile customers usually get limited time to make their drinks thereby opt to buy their desired beverages from a well-known high quality joint. 

  • Market Needs

In most parts of the country, a large proportion of the population owns a transport system, making them a commuting customer. However, a large percentage of the total population cannot move around due to some reasons such as old or young age and economic status. as such, the issue of increased mobility segments the market into two different groups, the commuting and the confined. These two groups offer the company a chance to deliver its products in other areas without much competition due to its unique selection.  

  • Market Trends

In the US, the growth of the various coffee joints started about two decades ago. In the past, people used to make their coffee at their respective homes. However, as the desire to achieve more from the coffee growing, entrepreneurs took the opportunity and developed various joints. Instead of making coffee at their own homes, they started to enjoy the beverages at the designed joints. This scenario gave rise to companies such as Starbucks among many others. In the recent past and almost lately, people enjoy their poorly made and sub-standard coffee from the various dispensers located strategically in many stores across the US. The desire to enjoy a good coffee cup comes from the fact that the available companies and joints offer the product at a high price and do not meet the needs of the consumers. The company decides to venture into the business to achieve the best out of the consumers. 

  • Market Growth

Today, the market for beverages, especially for coffee in the various areas, shows improvement in overall desires. The recent statistics show that almost every household today in the US uses coffee among other beverages due to the possible nutritional benefits (Stuckler & Nestle, 2012). Additionally, most of the transit and confined consumers often face a challenge regarding getting access to the desired delicacies. From another perspective, the consumption of coffee, among other products keeps on rising rapidly in the various markets across the US. As a result, the data shows that it must deliver just the required product to the different customers as per their individual needs for the company to succeed in its endeavours. 

Industry Analysis

Looking at the whole industry at large, it then follows that the demand for coffee from the various customers keeps on rising daily (Palić & Bakarić, 2016). Additionally, the industry comprises many buyers and sellers who compete for the same products and customers. The freedom of entry and exit makes it easy for new entrants to join the market and make their desired money. From another angle, competition remains a crucial challenge to many firms in the industry. The number of players keeps on rising, which increases the level of competition. It all comes back to how a company differentiate itself and the products offered to remain relevant in the market among the customers. 

  • Competition and Buying Patterns

Addressing the buying patterns for the various populations in the industry today, it follows that firms face stiff competition from the rivals without the necessary and desired form of differentiation. In most cases, the products’ price does not matter a lot since the customers usually look for the quality offered. In the past few years, customers expressed as high demand for coffee among the other associated products which pushed the need to establish a firm that delivers just the right kind of product to the consumers. The customers follow a growing buying pattern which comes from the increasing demand for the products. 

  • Distribution Patterns

The distribution of the cafes in the US follows the same pattern used in Europe. The restaurants’ setting set the overall mood to the consumers of the kind of products to expect. In most cases, the experience alone helps to place the products’ pricing without even looking at the tags. The available number of cafes in the US would allow the company to deliver the products strategically to all the desired market segments. 

  • Strategic Opportunities that Exist in the Industry

To achieve the desired competitive advantage, the company may take up the available opportunities in the market. For instance, the market presents a wide range of customers that can segment it into just two groups. After segmenting the demand accordingly, the company may deliver the desired products to the population by locating its cafes closer to the people. 

Environmental OR Competitive Analysis 

Considering the firm’s surrounding environment, TPD may need to come up with ways of dealing with the existing competition. The key players include but not limited to Java, among many others. These players offer differentiated products to the population located strategically in the city streets across a wide area. Therefore, the company must ensure that it finds its outlets strategically close to the selected people in the attempt to reduce competition from increasing the overall sales (Davis, Lockwood, Pantelidis & Alcott, 2013). 

Strategy and Implementation Summary

TDP intends to use various strategies to take the product to the desired markets. The selection of each design follows the type of the customers in question. For instance, to deliver the products to the commuting consumers, the company intends to use drive-thru facilities. These facilities will reside strategically in areas that would attract travelling consumers. To deliver the products to the confined group of customers, the best strategy to use includes mobile cafes. These cafes will consist of all the other joints’ features, which will increase the chances of the population to order a customised cup of beverage. 


The company will deal with a vast range of products, but all must remain related to the nature of business for the firm. For instance, the firm intends to sell hot and frozen coffee, chocolate, tea, and various healthy snacks to add up the list. The selection of the products follows that most people across the US as far as the selected segments are concerned to find it hard to sit in a café to enjoy a whole meal due to the time factor. The same case applies to captive consumers who always remain on the move. As a result, the company offers the respective products in the way that the consumers would like them delivered to reduce time wastage and at the same time, consume a healthy meal. 

  • Product Description

As explained above, the products offered comprise mainly of the coffee items and snacks. The products’ selection comes from the desire to deliver products to the population always limited by time to attain their desired items. In most cases, such consumers often lack time to make their coffee or enjoy a cup in a café. 

  • Competitive Comparison

The company’s primary source of competition may come from various retailers among other players in the industry. For instance, the locally owned joints may present a challenge since they enjoy an already existing market. Additionally, the company may face competition from the fast food stores and finally, the more prominent Starbucks players. To stand out from the competition, the company may offer its products to the customers selected conveniently compared to the rivals. 

  • Sourcing

The firm’s inventory, which includes the consumed coffee products, comes from various joints and suppliers such as Pj` Coffee, Coca-Cola, and the Royal Distribution. These suppliers play a huge role in making the drive-thrus and the mobile café available daily. 

  • Technology

The firm uses state of the art kind of technology to support its daily operations. This means that the functions of the firm come from a central point. The use of technology helps the company coordinate its overall products and services and achieve the desired competitive advantage from the increased convenience. 

  • Future Products

In most cases, some environmental changes bring about challenges to various foods and beverages companies. TPD may include multiple products to deliver during periods of extreme cold or hot climatic conditions such as in the winter or summer. The company intends to implement the specific products to use in the various seasons such as winter, fall, summer, and autumn. As such, the products will help the company remain relevant in the industry and the market. 

Competitive Edge

The implementation of the various strategies by the company may help it achieve the desired competitive advantage. For instance, the company may implement several actions such as differentiating its products and itself to reduce the chances of competing against the same customer base. The company segments its market and selects a unique customer base, making it easy to evade the possible competition from the already established more significant firms which places it at an advantage to reap the desired benefits. 

Marketing Strategy

Marketing the business services and products may present a conducive way of making the company known to the respective populations. For instance, placing the drive-thru joints strategically in high traffic areas would help the company sell them off to the individual consumers. Including large billboards on the major roads would help motorists see and visit the joints. Making the necessary connections and links with the schools, including mainly captive consumers, would increase awareness in such areas. The company may also market the business in the local media, which increases the chances of capturing the attention of the target consumers (Berthon, Pitt, Plangger & Shapiro, 2012). 

  • Positioning Statements

The company’s primary focus points to the desire to deliver products to the people always on the move or confined at a given area, thereby limiting movement. Still, it expresses a strong passion for enjoying a cup of refreshing drink.

  • Pricing Strategy

Although the products’ pricing may not play a huge role in deciding whether the company will attract a large customer base, the company intends to compare the costs offered by the rivals. Additionally, the company may associate the quality of the products provided to arrive at the desired price. 

  • Promotion Strategy

To reach out to the intended market segment, the company may need to use various strategies. For instance, the company may opt to use advertising as the primary promotional strategy. To back up advertising, the company may use publicity to increase the awareness and the overall market recognition. 

  • Distribution Strategy

Placing the various joints strategically across the multiple highways and busy streets would make it easy for the company to attract many customers because the location would offer an easy site to the population. Additionally, considering the captive population, the company may locate the mobile cafes in their vicinity such as campuses and schools among many others which would take the products to the consumers. 

  • Marketing Programs

One of the most common ways of the company to market its products comes from advertising and promotion. Advertising and promotion play a massive role in increasing the overall market recognition among the various markets. For instance, the company intends to spend a considerable amount of time and money, improving public recognition and awareness among the multiple markets across the selected market (Keller & Kotler, 2016). The first year will consume a large amount of money while the following periods reduce the intensity because they may already enjoy widely recognised products.

Sales Strategy

Associating the high-income items with extra special treats would help the company realise tremendous profits. Additionally, to foster high purchase, the company may opt to include coupons to issue to the customers who achieve a given total daily, weekly, monthly or even annual sales. 

  • Sales Forecast 

The company intends first to introduce just two drive-thru outlets located strategically within the selected areas. After implementation, the company plans to generate about 300,000 sales in the first year of operation. Following the business’s nature, the company may opt to open up more outlets in the various areas which will help to push the total sales to approximately 1 million. This figure stands out as the total achieved at the end of the second year. During the third year, the company estimates to reach a total of approximately 2.7 million sales. Considering the mobile cafes, the company intends to implement one joint in the first year generating about 10,000 sales. The company plans to implement two more outlets in the second and third year generating about 300,000 units/sales. It then follows that the company intends to grow its total sales exponentially in the three years. With each unit attracting $3.0, the company expects to make a total of about (3 million units*$3= ($9 million)) in terms of total revenue at the end of the third year. Every month, the company intends to increase sales by just a small proportion, which contributes to the attained total revenue for the third year, rising at a rate of approximately 15%. 

  • Sales Programs

The company intends to use beverage coupons in various areas to improve the overall sales practices. Participating in the multiple events would give the company a chance to offer the population an opportunity to taste the products offered, thereby increasing the overall sales. 

Management and Operations Summary

The company comes in a flat form that helps increase the chances of easy collaboration between the various personnel within the different areas of interest. However, as the business grows, the company will include top management positions in terms of handling the key departments such as finance, operations, administration, and marketing. The introduction of the various other additional joints will call for more dedicated management figures. The company intends to select the desired models to oversee the multiple joints reporting to the previously selected personnel. Operating under a balanced manner enables the company to increase the number of workers in the production, sales and marketing fields other than in the management positions reducing further the possibility of incurring vast amounts of money and time consumer in decision-making processes. 

Personnel Plan

During the first year, the company intends to operate in a lean manner. This results in the company working with just the optimum number of workers. However, with the other joints, the company intends to increase the total number of workers to meet the company’s growing demands. In the third year, the company plans to include a management team to oversee the various joints’ activities for easy coordination. However, the company observes the lean concept in assigning the multiple roles to reduce the possibility of wasting resources to unnecessary personnel teams. The introduction of the various additional figures will strictly follow the growing demand for the given position. The total payments made to the staff members for the three years include $250,000 in the first, $850,000 for the second and finally $2,000,000 in the final year. 

Physical Locations/Facilities

The company’s location follows the desire to achieve a better position for undertaking daily activities. For instance, the company intends to locate the various joints closer to the selected market segments. For example, the company plans to place the mobile cafes in the respective areas such as schools and campuses. Additionally, the company intends to locate the drive-thru joints in the various highways among other busy streets. 

Inventory, Production and Quality Assurance

To guarantee the best products, reach the customers, the company intends to include the various quality control and assurance programs within the production and distribution processes. In the production process, the respective teams must meet the set health and other standards. In the distribution processes, the respective teams must follow the right channels to deliver the products to the desired customers. Additionally, the company will conduct random testing by sampling the items in the production and the distribution lines to guarantee quality (Wandersman, Chien, & Katz, 2012).

Order Fulfillment and Customer Service 

Since the company intends to deliver products that meet the customers’ needs, the priority arises as to consumer satisfaction. Including a workforce that provides quality and polite servers would help attain the set goals and objectives in terms of guaranteeing order fulfilment and improving the customer service. 

Research and Development 

The company intends to continually perform research and development to increase its relevance in the market. For instance, as time goes by, technology changes, and so do the needs of the customers. Therefore, the company must keep up with the changes occurring in the various fields to remain relevant and compliant with the customer and other bodies. 

Financial Plan

This section looks at the company’s financial needs in terms of the requirements and the expenditures incurred by the company. The company’s initial capital stands out as one of the lowest figures among many firms today. 

Important Assumptions

The company assumes that the product will not face any challenges in changes in the healthcare policies regarding its consumption. Additionally, the company believes that it will operate in a conducive economic environment. 

Break-even Analysis 

The company reached the monthly fixed cost in terms of the breakeven analysis after considering the various aspects such as the unit price for the drive-thru facilities only, the average per-unit price and the overall operations costs. The arrived amount showed that the company’s breakeven figure amounted to approximately $30,000 with a total of around 15,900 units. The data shows that the company may start achieving the desired profits after a short period, which acts as an acceptable form of conducting business. 

Projected Profit & Loss 

This section looks at the projected profit and loss for the company. 

The attached document shows the figures. For the monthly progress, the company makes the loss in the first six months before reaching its breakeven, as mentioned above. After that, the company starts making profits as it increases market recognition and also additional investments. 

Projected Cash Flow 

The attached document includes the figures and summary.

Projected Balance Sheet 

See the attached document. 

Business Ratios 

Regarding the key financial indicators and ratios, the company anticipates an increase in total sales, gross margin, income, and inventory turnover. The company projects to achieve an increase of approximately 250% of the total sales made. The company projects to increase its gross margin continuously from 39.6%, 39.8% and finally, 45.3%. The total debt to assets ratio holds at 93.8%, 72.3%, and 54.3%. the return on equity ratio stands at -127.6%, 90.6% and 80.3%. finally, the total asset turnover ratio stands at 1.52%, 2.7% and finally for the third year, 2.3%.

Funding Request and Exit Strategy

The company’s primary source of funding in the initial start-up comes from the owners’ equity since it accounts for just a small amount of money. The company anticipates that it will achieve the desired goals signifying its overall success from the best-case scenario. due to its success, the rival companies prominent in the same area of operation will see the company’s potential and decide to buy it out. Companies such as Starbucks may choose to operate the drive-thru and mobile cafes in the various areas as an extension of their business. However, the company’s buying would increase the competition for the other upcoming establishments in the area (Valentine, 2012). All in all, this stands out as the perfect exit strategy that the company may consider. 


The first tasks include the design of the corporate website completed under about $5000. The company plans to open the first drive-thru after three months. The company plans to realise its breakeven point at the sixth month due to high overhead costs. Further, the company plans to open the second and third drive-thru facilities by the end of the third year. Subsequently, to manage the increasing operations, the company intends to install a point of sale system mid the second year. After the company opens the various drive-thru joints in the area, it plans to expand to the other cities such as New York among others by the end of the third year. After opening the first franchise in the fourth year, the company plans to exit the fifth year market. The total expected expenditure for the company in the entire period accounts for approximately $3,000,000. It takes the finance, marketing, administration, and management departments’ efforts to complete the tasks successfully.

Closing Summary

The company comes to a close after establishing a product that suits the needs of the population. Before closing, the company must further analyse the market to attest whether the population still needs additional support regarding the provision of the desired goods and services. The company comes to a close after a successful introduction and distribution of the desired products to the selected market segment. 

Value Proposition

Since the customers expect the company to produce coffee that satisfies their needs, the firm must sell out the product in a strategic manner. For instance, using promotional and advertising strategies and a captivating elevator pitch would help it pass just the customers’ required information. The customers always want to hear what they desire. 

Business Risk 

During the operations, the company may face numerous risks. The most common risk comes from the failure to account for additional business requirements during start-up. In case the first tasks, which include gathering all the required information, fail to take into account the chances of additional costs, the business may fail in the end. Other risks may consist of natural and human-made disasters and changes in the customers’ buying behaviour. 

  • Planning for Contingencies

Subsequently, for the business to handle any issues arising, it must develop a contingency plan. For instance, if the company realises any additional aspects that require more capital, it must keep a reserve to act as a contingency plan to rectify the witnessed deficit. In the case of a natural disaster, the company must place the most effective emergency response and recovery plans to ensure business continuity. These strategies include plans to mitigate the associated risks using the available frameworks to reduce the impacts brought about by the perils.  

  • Disaster/Crisis Planning

In case an incident happens, the business must express a high capability to handle any arising issues such as disaster recovery and emergency response plan. Furthermore, the company must operate with a superior business continuity plan to help it recover and resume its operations even after a disaster.

  • Protecting Intellectual Property

The company must ensure that it registers and keeps in compliance with the relevant legal and regulatory bodies. In the attempt to protect the intellectual property, the company must express the desired knowledge in aspects such as copyrights, patents, trademarks and also trade secrets to secure its original pieces of work and ideas which reduces the cases of theft and plagiarism from the rival companies (Schotter & Teagarden, 2014). 

Communicating the Plan to Investors

To capture the attention of the possible investors, the company must communicate in time. First, the management must engage the investors in evaluating every part of the business plan. Ensuring that the investors perceive and visualise the business operating would play a huge role in guaranteeing a successful implementation. 

  • Target Audience

The target audience for the plan includes possible investors. Additionally, the management and business owners also form a part of the target audience. Since currently, the business enjoys several shareholders, if it uses an amount of their money to venture into the idea, it includes them in the list of the target audience. 

  • Elevator Pitch

To capture the attention of the respective audience, the company must use a catchy statement (Boni, 2012). After a thorough market analysis, the management decided that the food and beverage industry’s current companies do little in catering for both the confined and travelling customers. As such, this presents a business opportunity to deliver just the right product to these market segments. Through the available market knowledge, it may help the company reach out to the customers at this moment, impacting them and the overall annual sales. 

Promotional Material

The company’s primary promotional material includes the use of brochures, business cards, and menus (Davis, 2013). To reach out to more customers, the business intends to brand mugs and also calendars. Additionally, the company may use signs and giant billboards placed strategically on the various highways to capture the travelling customers’ attention. The company may also use internet-based materials to promote their brand. 

  • Berthon, P. R., Pitt, L. F., Plangger, K., & Shapiro, D. (2012). Marketing meets Web 2.0, social media, and creative consumers: Implications for international marketing strategy. Business Horizons55(3), 261-271.
  • Boni, A. (2012). The Pitch to Investors and Partners. Journal of Commercial Biotechnology18(2).
  • Davis, B., Lockwood, A., Pantelidis, I., & Alcott, P. (2013). Food and beverage management. Routledge.
  • Davis, A. (2013). Promotional cultures: The rise and spread of advertising, public relations, marketing, and branding. Polity.
  • Keller, K. L., & Kotler, P. (2016). Marketing management. Pearson.
  • Palić, P., & Bakarić, I. R. (2016). Food and beverage industry. Sektorske analize5(45), 1-23.
  • Schotter, A., & Teagarden, M. (2014). Protecting intellectual property in China. MIT Sloan Management Review55(4), 41.
  • Stuckler, D., & Nestle, M. (2012). Big food, food systems, and global health. PLoS medicine9(6), e1001242.
  • Valentine, D. (2012). Exit strategy: Profit, cosmology, and the future of humans in space. Anthropological Quarterly85(4), 1045-1067.
  • Wandersman, A., Chien, V. H., & Katz, J. (2012). Toward an Evidence‐Based System for Innovation Support for Implementing Innovations with Quality: Tools, Training, Technical Assistance, and Quality Assurance/Quality Improvement. American journal of community psychology50(3-4), 445-459.

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