Qahwa Business Plan

Executive Summary

Qahwa is an authentic Arab coffee shop that is situated in Chicago. The company is a vibrant start-up that serves Arab coffee with a difference. The business enterprise makes a cup of coffee and a tremendous and extraordinary customer experience. The coffee shop allows its customers to immerse themselves fully and enjoys Arab culture and cuisine through its coffee. To achieve its organizational goals and objectives, the management is tasked with making the business policies. Corporate direction modules provide the much-needed oversight and ensure that the organizational goals are met on time. Notably, the business enterprise will use various innovative strategies and stress on ethical practice in fulfilling its corporate values.

The organization seeks to inject innovation, a strategic approach to the Arab coffee business, and redefine professionalism in the sector to distinguish itself in the market and attract and retain valuable customers. Additionally, ethical practice is essential in galvanizing the community support towards the project. To this end, Qahwa will be engaging in various corporate social responsibility activities that aim to give back to society and take a positive role in societal growth. Specifically, the business enterprise will actively engage in various healthcare, education, and affordable housing initiatives as part of its corporate social responsibility. Through corporate social responsibility, Qahwa may uplift the different disadvantaged sectors and people in Saudi society. The corporate social responsibility initiatives will be targeted explicitly at deserving cases to ensure they have the desired impact.

This business plan primarily highlights the various operational and financial strategies that Qahwa shall employ to meet its ambitious organizational objectives. Notably, a business plan will aptly specify the market gap that Qahwa will be explicitly aiming to fill by having a thorough market and competition analysis.

Driven by a proactive, market-driven, flexible, and highly responsive marketing strategy, the Qahwa shall market itself as the home of authentic and quality Arabic coffee in Chicago. Like making Arabic snacks, other peripheral services shall be provided strategically as a value-added initiative to the coffee shop’s products. The constant analysis of competitors and devising innovative and blockbuster solutions for customers shall be our crucial marketing tool. The use of interactive websites and sponsorship of strategic waste management events shall be the objectives of Qahwa. Further, the coffee shop shall pursue strategic alliances with established Arabic food products networks across Chicago and inculcate a culture of corporate social responsibility as its societal support obligation. From these already established networks, Qahwa will access their valuable networks and learn from their experiences. The established networks are also critical in referrals, especially with the cordial relationship that Qahwa seeks to teach. Additionally, the dissemination of detailed publications to customers, transparent costing schedules, professional customer engagement, and management shall be heavily employed. Finally, Qahwa will use diverse marketing platforms to ensure that it adequately reaches its target market.

Business Description & Vision

Mission Statement

To celebrate Arab culture and cuisine by serving high quality and authentic Arab coffee and ensuring extraordinary customer experience.

Company Vision 

In the pursuit of its corporate goals and objectives, Qahwa aspires to:

• Provide the residents of Chicago with an Arab coffee experience and allow them to experience Arab culture through coffee.
• Sell coffee for its highest and best value while balancing the social and environmental needs with its commercial aspirations.
• Transform the restaurant industry in Chicago to providing an authentic Arab coffee experience to its vast population.

Business Goals & Objectives

• To have a productive organization that can make a profitable contribution to clients and the Chicago society in general;
• To do what it takes to meet the client’s expectations through excellent work and responsive service;
• To embrace change and technology for the betterment of the organization and maximum productivity;
• To foster a conducive and enjoyable working environment that encourages initiative, innovation, teamwork, and loyalty;
• To be fair and ethical in dealings with clients, employees, the government, the community, and other stakeholders;
• To reward performance and provide opportunities for growth for our employees.

Brief Business History

Qahwa is an authentic Arab coffee shop that is situated in Chicago. The company is a vibrant start-up that serves Arab coffee with a difference. The business enterprise makes a cup of coffee and a tremendous and extraordinary customer experience. The coffee shop allows its customers to immerse themselves fully and enjoys Arab culture and cuisine through its coffee. To achieve its organizational goals and objectives, the management is tasked with making the business policies. Corporate direction modules provide the much-needed oversight and ensure that the organizational goals are met on time. Through its products and services, Qahwa aims to provide the residents of Chicago with an opportunity to taste and enjoy a new flavor from the Middle East. 

It is essential to appreciate that Chicago has a vast population of Arabs, yet it does not have an Arabic coffee shop to serve this vast community’s needs. The other Chicago residents have no opportunity to experience the beauty of Middle East cuisine through its incredible coffee. As such, Qahwa aims to bridge that existing gap by specializing in authentic Arabic coffee and snacks. Although there are many Middle Eastern restaurants around Chicago, there is not a specialized place for it. It is based on this great potential that Qahwa has ventured into the restaurant sector in Chicago. 

Based in Chicago, Qahwa shall render credible and timely services customized for value addition to its customers. The creative and result-oriented team shall be guided by personalized client service, integrity, accountability, and teamwork. The business enterprise shall take the restaurant industry by storm by implementing its entry strategy focused on brand development, smart marketing, and personalized client service. The hiring and retention of skilled practitioners, ambitious and promising graduates, and innovative interns shall be inculcated into the human resource talent management policy. Modeled on tactful SWOT analysis, Qahwa shall aggressively exploit its strengths, always strive to combat its weaknesses, and strategically channel its resources to opportunities while keeping a keen watch on the possible threats. 

Key Company Principles

The organizational values at Qahwa are a set of commonly-held values that help the organization define its culture and beliefs. To achieve its ambitious goals, the organization is established on various principles such as innovation, integrity and ethics, public education, efficiency, fiscal prudence, resourcefulness, customer service, and community partnerships. This set of values act as a constant guide to the organization and instills the desired organizational culture. Additionally, the corporate values set Qahwa apart from its competitors and play an integral in motivating employees towards the organizational goals and attracting potential employees. In the highly competitive 21st-century labor market, a business enterprise must have good corporate values that promote employee growth to attract the industry’s best personnel.

Definition of the Market

Business Industry & Outlook

• Industry Competition 

This section is dedicated to analyzing the current competition and the anticipated competition. The analysis of competitors’ strengths and weaknesses in the market is critical to guarantee the business’s stability, survival, and growth. It shall be systematically analyzed as follows:

• • Analysing Competitor Strengths

Competitors have an edge for being in the market for some time, thereby building a reputation for themselves and retaining most of the customers that Qahwa wants to attract. Also, being in the venture for a long has given them nearly unrivaled expertise.

• • Analysing Their Weakness

Most competitors are used to conventional service delivery methods, which means that they are not up to speed with the current times and practice and the rise in application of the technology. 

• • Identify Opportunities that the Qahwa Can Explore for Effective Competition

Each market is unique in its own itself. Options pop up at any time and will only make sense if they are utilized as they come. Qahwa has identified the internet, print media, and sponsorships as favorable opportunities to enhance our competitive nature. The internet will be useful in marketing its services and products throughout the State, Country, and internationally. The internet shall provide the organization with a much-needed online presence, thereby making its operations, products, and services to be known in the market. Print media will help publish various articles and technical opinions on issues of public interest, especially those tackling Qahwa’s area of practice. As for sponsorships, Qahwa shall sponsor educational events and participate in social awareness schemes.

• Industry Development and Growth
  • Strengths
    • Highly qualified team of professionals with exceptional skills and diverse expertise.
    • Organized and well laid out administrative support.
    • State of the art technology to ensure efficient delivery of waste management services and enhance the company’s operations.
    • Proper employee motivation and management through time recording to ensure appropriate time management and accountable customer billing.
• Weaknesses
  • Misconceptions of lack of trustworthiness and accountability as a new entrant. 
  • A substantial initial capital base to expand the organization. 
• Opportunities
  • Current legal developments in the waste management industry in Saudi Arabia, particularly on waste sorting regulations from primary waste producers. 
  • Zero tax on recycling equipment.
  • An impressive Saudi government recycling target of 25%
  • Financial support for waste management companies.
  • Increase in future revenues as the customer base grows.
  • Referrals by the existing customer base.
• Threats
  • Already existing established waste sorting and primary recycling industries in the market.
  • The likelihood of losing key personnel due to employee’ poaching’ by already established and high paying waste management companies. 
  • Limited start-up capital to begin big.
  • Limited staff, thus not able to handle many large transactions concurrently. 

Critical Needs of Market

Currently, there is a critical need for an authentic Arab coffee shop in Chicago. It is essential to appreciate the fact that Chicago has a massive population of Arabs. Yet, it does not have an Arabic coffee shop to serve the needs of this enormous community. The other Chicago residents have no opportunity to experience the beauty of Middle East cuisine through its incredible coffee. As such, Qahwa aims to bridge that existing gap by specializing in authentic Arabic coffee and snacks. Although there are many Middle Eastern restaurants around Chicago, there is not a specialized place for it.

Target Market

Qahwa’s principal customers shall be the vast population of Arabs that currently reside in Chicago. To this end, Qahwa will enable them to reconnect with their cultural roots and appreciate their traditional cuisines through coffee and snacks. Additionally, Qahwa targets international students in various colleges and universities in Chicago. Through a truck delivery system, Qahwa can reach the students and increase its market scope. Lastly, Qahwa will target Chicago residents and allow them to experience Arab culture through its coffee. The sorted range of products will be sold to different potential customers. Qahwa will build a good reputation, and this attribute can further advertise the company to other potential customers. 

General Profile of the Targeted Clients

Qahwa will have customers from various locations and communities in Chicago. In this regard, most of the company’s customers will be the Arab community in Chicago, international students, residents, and other beverage and snack shops willing to sell Qahwa’s wide range of products to the end-user. 

Market Share and Size Analysis

Qahwa’s target market shall be the Arab community in Chicago, international students, residents, and other end-user customers. In this regard, Further, the technical advancement in the world has only increased international relations and business; thus, Qahwa will provide for the local market needs, and the global market needs in the future.

The restaurant market in Chicago has already established companies that control a significant stake in the industry. Therefore, it is upon Qahwa to cut a niche for itself and stake its footing in the market. In this regard, the business enterprise shall offer premium and authentic Arab coffee and snacks to its customers as an authentic Arab experience is currently missing in the market. Qahwa’s expected sales for year one will be modest as the coffee shop will be experiencing various teething problems associated with being a new entrant in the market. In the subsequent years, the sales will gradually improve as it gets a foothold in the market. 

Description of Products and Services

Specific Description of Products & Services

Qahwa will offer the following products:

• Arabic coffee
• Other warm and cold Middle Eastern beverages include mint, tea with rose water, and citrus tea. 
• A wide selection of Arab drinks
• A variety of freshly made snacks that are full of flavor and are made with love. Examples of the snacks are Keliga; date cookies spiced with cardamom, Balait, made of vermicelli cooked in a saffron and rosewater sauce.
• Arabic coffee
• Dates
• Middle-Eastern Sweets (Kliga, Balait, Luqimat)

Competitiveness of the Organization’s Products and Services

The constant analysis of competitors and devising innovative and blockbuster solutions for customers shall be our crucial marketing tool. The use of interactive websites and sponsorship of strategic coffee and food events shall be the objectives of Qahwa. Further, the coffee shall pursue strategic alliances with established coffee joints across Chicago and inculcate a culture of corporate social responsibility as its societal support obligation. From these already established networks, Qahwa will access their valuable networks and learn from their experiences. The established networks are also critical in referrals, especially with the cordial relationship that Qahwa seeks to teach. Additionally, the dissemination of detailed publications to customers, transparent costing schedules, professional customer engagement, and management shall be heavily employed. Finally, Qahwa will use diverse marketing platforms to ensure that it adequately reaches its target market.

Qahwa’s competitive advantage from the above analysis is;

• To Adopt vigorous expansion plans through which the coffee shop shall expand its network to other municipalities across Chicago. 
• To adopt their mode of motivating their staff members, i.e., through training and conducting several workshops, they shall improve their skills and knowledge. 
• Form a vibrant and interactive website through which customers can continuously update the company’s products and other developments in the organization’s operation area. This is also a way of advertising, other than maintaining the customers’ loyalty. 
• The coffee shop shall also strive to offer corporate social responsibility services.

Organization & Management

Managerial Structure of the Business 

Qahwa shall adopt a pyramid network-based organization plan incorporating both the technical pillar and the administrative pillar. These two pillars are intricately intertwined and critical in ensuring good corporate governance that propagates the coffee shop to higher heights. The technical post shall have the managing director at the apex, three supervisors and line managers, and twelve employees at the base. The administrative pillar shall be headed by various staff overseeing the finance and office administration departments. This kind of specialization is critical in ensuring that qualified and experienced professionals lead these key categories. Further, these pillars shall adopt a complementary and supplementary working relationship with each devising its operations towards the wholesome support of the coffee shop’s activities and seamless interactions and networking. The duties and responsibilities shall be tailor-made to enhance employee satisfaction, swift decision making, inculcation of a culture of independent employee decision making, transparency, and minimization of information asymmetry.

Legal Structure of the Business

Qahwa shall be a sole proprietorship wholly owned by one individual. This has the advantage of quick decision making and enabling the owner to have immense control over the business. As such, the owner will play a significant role in shaping business policy and providing business direction.  

Licenses and Business Permits Needed

Qahwa will need the following licenses and permits:

• A health/sanitation permit
• Federal Employer Identification Number
• Illinois Business Tax Number
• Restaurant License

Description of Key Managers in the Organization

The Managing Director

This person appointed/elected to oversee organizational practice, management, and day-to-day operations to meet its short-term and long-term objectives. The duties of the managing partner shall comprise:

• Day-to-day management of the organization.
• Maintaining the highest possible professional standards in performance in the organization.
• Responsible for the economic performance of the organization.
• Setting and ensuring the organization’s short and long-term goals are met.
• Ensuring that the organization’s budget and business plans are implemented, and their progress monitored. 
• Delegation of specific tasks and supervise their progress.
• Oversee the planning and maintenance of office facilities to ensure fluidity in operations.

Supervisors and Line Managers

The supervisors and line managers shall: 

• Solicit and bring in new customers to sustain the organization’s business.
• Inspect the organization’s books and records to ensure obligations and responsibilities are met. 
• Set examples in the performance of their duties and supervise employees in their respective departments.
• Constantly communicate objectives and ideas between the organization’s management to employees in their departments e) Exercise good faith in their dispensation of duties and obligations to the organization and their customers.

Marketing Plan

The Market

Qahwa shall increase its productivity by focusing on the following key areas;        

• Offering a unique product to the market and premium pricing
• Broadening target market.
• Service delivery.

Offering a Unique Product to the Market and Premium Pricing

Despite being the third-largest city in terms of population in the United States of America, Chicago has no authentic Arab coffee shop. Qahwa aims to fill this market gap and provide services to the local Arab population, international students, and residents. By providing an authentic Arab coffee experience, the coffee shop will cut a niche for itself and get a foothold in the market. Qahwa aims to carve a niche for itself by providing quality premium coffee in the market. In this regard, most coffee beans and other ingredients will be imported from the Middle East and Ethiopia, thereby increasing the prices of the eventual products. The beans and saffron will be sourced internationally from Yemen, Ethiopia, and Pakistan. Qahwa will use high-quality beans and the most acceptable type of dates.

Additionally, in the bakery, everything will be freshly made every day in the morning. Finally, price skimming is the pricing strategy that best fits Qahwa, especially for the large serving sizes. After a few months of operation, Qahwa shall introduce promotional discounts to attract a broader customer range.

Broadening the Target Market

In line with its marketing strategy, the company shall accommodate any person with any retail order and needs authentic Arabic coffee and snacks. To this end, Qahwa will enter into partnerships with Arabic restaurants, Arabic supermarkets, and local coffee shops. The organization will also broaden its market by dedicating a truck to deliver its products to international students across the colleges in Chicago. Consequentially, this approach will increase the coffee shop’s target market, increasing its chances of having numerous customers, which is essential in being profitable.

Service Delivery

Qahwa shall have a better service delivery mechanism by working on matters on a case by case basis with strict adherence to time and necessity. To this end, the organization shall positively ensure that its services are personalized to customers’ needs and tailor-made to protect and advance their interests. The personalization of various products to meet the customers’ specifications will set the enterprise apart from its indirect competitors, most of which do not provide specialized and tailor-made products. 

Sales Strategy and Marketing Mix 

Being a new entrant into the waste sorting field, it is incumbent upon Qahwa to develop strategies that will boost its sales and reach its targets. Increasing sales, especially to a sector with a story to tell on brand loyalty, can be a stressful venture. To this end, the organization has earmarked various strategies that it could use to sell its products to the clients in the waste management arena, as follows;

a) Building relationships and winning customers

b) Turning our weakness of infancy status to the strength of creating a new unique brand for itself

c) A comprehensive and focussed promotion and advertising strategy through:

• Developing strategic alliances
• Use of the internet and website platform
• Joining a local professional organization
• Participating in corporate social responsibility programs
• Taking advantage of its strategic business and authentic Arabic décor
• Undertaking strategic Sponsorships
• Publishing journals, profiles, and newsletters on Arabic coffee and products
• Printing and distributing business cards containing contacts and location of the company and email addresses. This will enable new customers referred to the company by other stakeholders to have easy access.
• Branding clothing, stationeries for employees

Financial Plan

Pre-Operational Costs

The start-up costs will include the expenses to purchase all the office equipment needed to commence operations, the cost of leasing premises, and the registration expenses. Qahwa will incur expenses that are necessary to ensure the company can comfortably start operations once registered. The breakdown of the costs is shown below.

Table Showing Pre-Operational Expenses

Projected Cash Flow Statement

Our cash flow is dependent on operating activities. We expect to have low cash flow but with steady growth as the year progresses. The table below shows this cash flow trend. Our cash balance will always be above the mark with the cash flow. This will ensure our profitability ratios are healthy. In this regard, it is essential to appreciate that Qahwa is a profit-making organization; hence it should have a positive result each financial year.

Table Showing Cumulative Cash Flow

Table Projected Cash Flow statement

Projected Balance Sheet

In the first year of business, we expect fewer fixed assets compared to current assets. We intend to run operations on initial capital and cash inflows but with little or zero debt. The table below shows the projected balance sheet for Qahwa for year one. 

Figure Showing Projected Balance Sheet

Income Statement For Year One

The business enterprise’s income strategy is to minimize expenses and maximize revenues. We will ensure costs are minimized by putting in place accountability measures that ensure proper utilization of resources and minimum wastage. Only the essentials will be considered in the first year. 

The table below shows the projected income statement for Qahwa for year one.

Table showing Income statement