Huntington Beach’s Overall
Huntington Beach is a well-known community in Orange County, California, that is part of the Los Angeles metropolitan region. The Pacific Ocean, as well as Seal Beach, surround this city. Huntington Beach is bordered to the west by Costa Mesa city, to the southeast by Newport Beach city, and to the north by Westminster and Fountain Valley city (Huntington Beach, Location). The Tongva people were the first inhabitants of this city. The city began developing and proliferating as early as 1920 as a result of the city’s oil boom, as it was the biggest oilfield in California at the time (Huntington Beach, History). The area is also renowned for being a melting pot of ethnicities, with residents from all around the world. The area is regarded as “Surf City” or “Surfing Capital of the World,” according to the Orange County Register website, since the world surfing competition is held there every summer, attracting a large number of visitors (OC Register, 2019). As a result of the established causes, the region has experienced rapid demographic and economic development. As a consequence of this rapid expansion, various commercial operations have sprung up to meet the needs of the city’s expanding human population. Increased population growth is a central factor in this city’s dynamics.
Huntington Beach’s Census Data
According to the 2017 United States Census Study, Huntington Beach has a population of 200,415 people, including an even number of men and women. The municipality is made up of people of various ethnicities, including Whites, Hispanics, Asians, and other minorities. These three majority populations account for 72.78 percent, 21.01 percent, and 18.56 percent of the overall population, respectively. This varied ethnic backgrounds provide an ideal setting for launching a variety of business ventures. According to census statistics, the estimated population age is 41.9 years, with people aged 62 and up accounting for 16.8% of the overall population and those aged 16 and under accounting for 82 percent. This indicates that the majority of the population is young, implying that businesses catering to young people’s lifestyles would perform well. According to the U.S. Census Occupancy Characteristics (2017), 78 percent of households in Huntington Beach have children under the age of 21, while most 1-person households under the age of 35 are also single. People under the age of 40, like teens, have a high level of engagement in social networking, according to lifestyle patterns. They are fast keeping up with the city’s mainstream patterns in consuming foods from various cultures. The median household income in Huntington Beach, according to the United States Census Bureau (2017), is between $88,079 and $102,369. With the average household income, inhabitants in this community have sufficient discretionary income to shop for a variety of items, like food and beverages.
Considering the demographic characteristics of Huntington City regarding population structure and income distribution, a food and beverage industry shop will thrive well. Therefore, a bubble tea shop is proposed for this new business project. The origin of Bubble tea can be traced back to Taiwan and was brought to some parts of the U.S in 1985.The drink quickly gained popularity, and by 2004, the glass was being marketed and used almost anywhere in the world (The Oxford Encyclopedia of Food and Drink in America, 2004). Milk, tea, and other flavors are combined with chewy pearls to make bubble tea. The different kinds of flavors that can be added to the tea enable it to meet the taste of different people hence becoming a popular and favorite rink for many. In the neighboring cities of Westminster and Fountain Valley, the drink has gained a lot of popularity among Asians, who are the dominant ethnic group in these cities. Bubble tea comes from Asia, so most Asian people love this drink, just like the Americans love Starbucks.
There is a large demand for this product in Huntington Beach, which has an estimated Asian community of 20% of the total population. This is because Asians adore and prefer this beer, which has become more of a ritual for them. Furthermore, according to the survey, there are just a few small bubble tea shops in the area. With these benefits, opening a bubble tea shop in the city has the ability to be a profitable venture.
The corporate outline, company priorities and strategies, marketing strategy, operating plan, management and organization, and financial plan of a new bubble shop are all included in this business document. Best T is a hotel-service company that will specialize in bubble tea and market other items such as burgers and sandwiches. The company will be based in Huntington Beach. The business will start in January 2019 and will be open all year, with hours of operation ranging from 6 a.m. to 10 p.m. on weekdays. On weekends, though, closing hours can be prolonged until late at night, based on consumer demand. The company’s goal is to have high-quality babble tea at a low price. Best T would be a three-person LLC with equal ownership.
Within the first four months of service, the short-term market goal is to create a consumer touchpoint. Long-term targets include launching a new branch somewhere in the second year of business, and the touchpoint would make it easier to handle consumer issues and receive input on service efficiency.
Asians who live in the city would be the target market for this venture. Asians account for a large portion of the population in this area, according to demographic results. Asians are tea lovers, making them an ideal consumer market—young people who like social networking and having fun, which involves drinking tea. Huntington residents have discretionary money, which they will invest on tea and candy, so the industry is viable.
The company plans to make $413 000 in revenue before the close of the first year. At the conclusion of the first year, gross operating expenses will be $16 100, and cost of supplies will be $244 500, resulting in a net profit of $152 400. By the end of the first year, power usage is expected to be 100%, with an average of 100 customers per day. Payroll, equipment, and services are examples of operating costs that would be borne in the course of running the company. The overall projected start-up capital is $30 000, with each proprietor contributing $10,000 and owning the same percentage of the company’s stock.
General Company Description
This project’s aim is to create a business strategy for a Bubble Tea Boba store. Sweet T Company Ltd will be the name of the bubble ta store. Our goal would be to provide high-quality service at a low cost. When our clients come and see us, we want them to have the full experience. Our mission is to be the most popular Bubble Tea shop in the world, providing the greatest service to our clients. Huntington Beach is a well-known community on the Southern California coast in Orange County, and is part of the Los Angeles metropolitan region. This is a business in the restaurant sector that can provide hospitality facilities. This is a new company that will focus on bubble tea as its main commodity. On January 1, 2020, the business will begin operations. The Asian demographic would be the primary target market for this device. Asians make up about 20% of the community in Huntington Beach, and they are notorious for being Boba addicts. Since this city has a large millennial population, those styles of business patterns that appeal to young people will flourish. Teenagers and people under the age of 40 are more active on social media, and they are easily picking up on current eating habits from various cultures throughout the region.
This company has other primary and indirect rivals. However, according to the poll, there are only a few small bubble tea shops in the city that compete directly (Lovegren, 2004). Kung Fu Tea, Coco Fresh Tea and Market, Station Market, Chun Yang Tea, FAN Chinese Cuisine, and BAMBU Tea are only a few of the several tea brands available. These businesses are located in Huntington City, but with the huge target demographic and citizens’ willingness to buy alcohol, it is a feasible option.
The restaurant will be a dinner-house and will be open from 6 a.m. to 10 p.m. every day. Customers will be able to spend as much time as possible on our property as a result of this. Since most of our competitors have open lunchtime hours, this gives us a comparative edge (Dupre and Gruen, 2004). Aside from bubble tea, we’ll be serving massive burgers and grilled sandwiches as a side dish. Again, this would give us an edge over our opponents, who, for the most part, do not serve tea with other foods. To save costs, the business would be a consortium with three people who will all work in managerial roles. Each member would contribute 33.3 percent of the capital and own 33.3 percent of the company.
Products and Services
According to the census results and figures showing Huntington Beach City’s population characteristics, a Bubble Tea Shop was the most profitable market opportunity. The company would have a main commodity, Bubble Tea, as well as other items to complement it, such as burgers and sandwiches.
This company’s main commodity would be bubble tea. The drink started in Taiwan and has now spread throughout the United States. The fact that the glass can be used with a variety of flavors has led to its appeal. Brew tea, milk, sugar, and pearls like boba, tapioca, berries, and grass jelly will be combined to make this product. A cup of tea would set you back just $5.
These will be marketed as tea-related accompaniments. Hamburgers and chicken burgers would be among the options. Sandwiches such as simple, mosaic, and open bread will also be available. The burger would cost between $3 and $4 per unit, depending on the variety. This burgers will not be made in the store, but will be purchased for about $2. On weekends, late-night jazz music will be performed to entertain clients, and this is an outstanding program that will benefit the company.
Why Customers will like our Products
The final result would be of high standard. This can be ensured by ordering the highest quality ingredients from the finest vendors available (Davis, 2012). Catering consultants may also be hired by the company.
In addition to the main items, the company will sell salads and burgers. This is a method of meeting the various demands of consumers and ensuring consumer loyalty.
Goals and Objectives
The business aspires to meet its long- and short-term objectives. Establishing customer care touch points from which consumers can submit reviews is one of the short-term priorities. We’ll collect feedback, tips, and concerns about the degree of service satisfaction, the consistency of the tea, and the food served. This data can be used to improve consumer loyalty and help the business retain new clients.
In the second year of operation, one of the long-term priorities and targets is to launch another branch in a different region. To make the extension possible, sales would average $1 million a year. In addition, before adding another branch, the number of regular customers that frequent the outlet must be 200 hundred.
The business would be driven by strong business principles and a clear purpose and vision statement. The company’s mission is to be the most prosperous Bubble Tea shop in the world, providing the finest service to our clients. This company’s key principle is consumer loyalty, and all complaints and compliments would be respected inputs into the customer satisfaction framework. The number one goal would be to deliver high-quality tea at the lowest possible price, giving the company a competitive advantage.
Market Situation Analysis
With its location on the shore, Huntington Beach’s liquor industry is well-known (Marc, 2004). This region is home to people of various races, ethnicities, cultural traditions, and ages. As a result, selling tea is a hot business opportunity in this area, where the majority of the population (especially the Asian population) is addicted to bubble tea (Lovegren, 2004). The company caters to Asians, who make up 20% of the workforce, as well as the youthful population who prefer a drink-and-dance lifestyle.
There are a few players in the market, each with their own operational methods. Kung Fu Tea, Coco Fresh Tea and Market, Station Market, Chun Yang Tea, FAN Chinese Cuisine, and BAMBU Tea are among the industry participants that will compete directly in the bubble tea market. These rivals, though, are insufficient to represent the whole populace, because they are not evenly spread.
This is a new business, and therefore good marketing strategies need to be adopted. To gain the attention and awareness of the public, intensive advertisement campaigns will be done through social media to reach all the targeted population (Dupre and Guen, 2004).Billboards and brochures, which will be distributed on bus-tops and pavements, will be used to raise consciousness of the new company among Huntington residents. The three partners will handle the campaigns and hold costs down.
The new company was created to fill a gap in the industry where traditional firms don’t adequately meet consumers’ bubble tea needs (Lovegren, 2004). The number of businesses in the region is limited, and they are not centrally placed to service consumers. In addition, the organization will have accompaniments such as big burgers and grilled sandwiches, which will boost revenue. Customers can be entertained with late-night jazz music on weekends, which is an excellent service that will benefit the company. Boba tea, the main commodity, has been extremely common with young people in neighboring cities such as Westminster and Fountain Valley, where Asians make up the majority of the population. As a result, the potential becomes viable.
The place. The latest company will be based in Huntington Beach, California, which is part of Orange County, which is part of the Los Angeles metropolitan region. This is a big city with a strong percentage of foreigners, making it ideal for a variety of business ventures. Since this city has a large millennial population, those styles of business patterns that appeal to young people will flourish. According to the U.S. Census Occupancy Characteristics (2017), 78 percent of households in Huntington Beach have children under the age of 21, and most 1-person households under the age of 35 are still single. People under the age of 40, like teens, have a high level of engagement in social networking, according to lifestyle patterns. They are fast keeping up with the city’s mainstream patterns in consuming foods from various cultures. The median household income in Huntington Beach, according to the United States Census Bureau (2017), is between $88,079 and $102,369. With the average household income, inhabitants in this community have sufficient discretionary income to shop for a variety of items, like food and beverages.
Capacity and infrastructure. The company would need a floor space of 50 by 50 square feet. As a result, it will run out of leased space at the Huntington Beach City mall. The annual rental fee is estimated to be $ 36,000. This location is convenient since a large number of citizens congregate at the site for different purposes. The room’s size is estimated to be about 50 customers per sitting. It will also provide sufficient flow space for air movement and circulation. Cleaners would have a difficult time mopping the floor and cleaning the tables to keep the place clean.
Get a list. Ingredients for producing bubble tea and sandwiches would be among the inventory products available for business operations. Milk, tea leaves, chewy pearls, and flavors would be among the inventory pieces. In the kitchen, burgers will be purchased and sandwiches will be prepared. Since these inventory products are a fast-moving consumer product, they won’t need a big warehouse to store them (Saura, Pedro, and Grilo, 2019). They would be held in the restaurant’s refrigerators.
Continual activities From 6 a.m. to 10 p.m., the store will be accessible. On weekends, closing hours may be prolonged to late in the evening in order to accommodate more people who choose to spend their weekend nights at the restaurant. During these hours, jazz music would be played to keep the customers entertained. Since they would be paid for overtime, workers will not work in shifts. This would assist in lowering labour costs.
The legal system. This company is subject to a number of laws. The first step is to secure a trade authorization from the county government agency. In addition, the corporation would follow all applicable payroll, labour, and health legislation.
Management and Organization
There would be just one degree of management in the organisation. This management will form a management committee that will make decisions based on consultation. The three partners, A, B, and C, will be the supervisors. Each partner’s tasks, functions, and obligations, as well as the organization’s status, are illustrated below.
Administrator of the Office
The office supervisor would be A. He would be in control of the company’s day-to-day affairs as well as managerial tasks. He’ll be in charge of human resource operations, client support functions, job preparation, and power allocation. In addition, A would be responsible for the company’s publicity and advertising requirements. The office supervisor would therefore delegate tasks to employees and oversee their completion. Since he has worked at various levels of leadership, A is well qualified for the role.
Best T business ltd’s financial officer/accountant would be Accountant B. He would be in control of the firm’s accounting transactions, such as payrolls, revenues, and accounts payable, as the accountant. He would keep track of bank statements and plan employee payrolls. A is eligible for this role because he has sufficient expertise and skills from his college education as well as previous experience in related tasks.
Director of Quality
In this industry, the highest focus is quality. As a result, C can play a critical position in product quality management and assurance. C, as product manager, would ensure that all purchases and services are of acceptable quality and cost. He’ll be in charge of quality management processes including overseeing and testing the tea-making operation. C is the right candidate for this position since he has previous expertise in this field from different grounds where he has worked in this capacity.
Plan the Finances
To shield the proprietors, the relationship would be organized as a Limited Liability Company. The owners would contribute 33.33 percent of the startup capital and hold the same percentage of the business. Since the overall expense of beginning the business is $30 000, each proprietor would put down $10,000. The pre-operational price, the cost of operating the business, and profit and loss projections for the following year will all be included in the financial plan.
Creating knowledge of the new company, the expense of renting the property, buying inventory, ordering machinery and appliances, setting up and upgrading the premises, payroll, and materials are all part of the pre-operational costs. The monthly rent is $ 3 000, which requires a $ 6 000 first-month fee. The total expense of inventory pieces would be $5,000, with kitchen appliances, beds, and chairs costing $6,000 and premiums costing $1,000. To make the space more attractive, it would need to be improved, and interior design will cost $2,000. The labor costs would be $9,000, with $1000 spent on workplace and cleaning materials. As a result, the estimated expense of beginning and operating the company would be $30 000, with each proprietor contributing $10,000 to the project’s funding.
Best T’s financial target is to draw and keep buyers at the forecasted pace of revenue. A standard-size mug sells for around $5 on average. A total of 100 customers are predicted every day, with each taking at least one cup. Sales are expected to be $413 000 for the year (see appendix I for revenue projection on profit/loss statement). Supplies, payrolls, and infrastructure would also be needed to manage the company effectively. Rent and liability rates would be fixed costs. The total cost of goods will be $244 500, and total operating expenses will be $16 100, resulting in a net profit of $152 400.
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Appendix 1: Profit and Loss Statement for the Next Twelve Months