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Yummy Cafe Business Plan

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General Business Description

Type of Business

  • Mission Statement

The Yummy café mission is to have​​ fine​​ meal​​ moments experiences​​ where customers come and take​​ away life days​​ memories​​ with family members, friends, partners, and colleagues.

  • Business Goals and Aims

The goal​​ of the​​ yummy​​ café​​ is to​​ create​​ a place for fresh and repeated​​ wonderful meals through​​ the production of​​ high-quality food and​​ drinks that satisfy​​ the dining requirements of esteem customers. The café aims at delivering yummy meals and various selections of drinks including coffees at any period of the day.​​ The cafe also aims at creating a good atmospheric environment to attract friends, families, and colleagues to come and enjoy their meals.​​ The​​ café will not​​ only focus on cooking dinner and lunch, but also provides take away food and drinks services at any time and allow customers to come and​​ enjoy​​ the environment rather than only getting lunch and dinner for a short period without​​ customer attention to the café.

Philosophy of the Cafe

  • The Business Importance

The essential in business is the high-quality meals​​ with the most enjoyable dining environments to encourage​​ customers to not only take away or buy meals but also to come and enjoy the restaurant breeze with friends, families,​​ and​​ colleagues.

  • Target Market for the Products

The café products will be marketed to every​​ individual​​ since they will provide services to both local and foreign customers. The meals served will​​ be served to any customer without margins or location-specific.​​ The café will be designed in such a way that it separates family caterings with friends to satisfy​​ all ages and make them feel​​ comfortable​​ to encourage repurchase intentions.

  • The Yummy Cafe​​ 

The​​ Yummy​​ café is a growing business in Saudi Arabia. The long-term changes will be​​ friendly regulations and policies to allow other business investors​​ to open their shops in Saudi Arabia.​​ Short-term changes will be increasing​​ supplies of materials from​​ neighboring​​ nations for the provision of a variety of yummy meals and beverages.

  • The Strengths and​​ Competencies of the Business​​ 

The company does not​​ have​​ a specific​​ location specific and provides a variety of meals to serve both foreign and​​ local customers​​ provided one orders​​ through the hotlines​​ of customer care.​​ 

  • Factors​​ that Promote​​ the Business Performance​​ 

The business will provide​​ extra business services​​ where customers are allowed to come and enjoy the café environment​​ not just buying meals and going away.

  • The Main competitive strength of the Business

The café ambience will be a competitive strength since it will always have a different display each day to make customers' experience memorable

  • Experience, skills, and Strengths​​ Brought​​ in the Business Idea

My cooking experience and experts​​ will attract customers and I will be ready to provide customer care service.

  • Type of​​ Legal ownership​​ of the Business

Partnership.

​​ Because there is sufficient assistance in the management sector

Business Services and Products

The café will provide a variety of yummy Arabian food staff like​​ Hummus, Fattoush, Tabouleh, Manakesh,​​ and beverages like coffee to international and foreign foods like chicken salad, Cuban sandwich,​​ Bahrain cuisine,​​ and others.​​ Production of a variety of meals will attract both foreign and local customers to the café, hence increasing market​​ utility.​​ Besides, the services provided by the café are dinner meals that will comprise meals like​​ Hummus, lunchtime meal, which include​​ rice dishes, like kabsa,​​ breakfast meals like Arabian tea,​​ and other local meals that are meant for specific occasions like​​ jareesh for the​​ holy month of Ramadan.​​ 

Customers will also acquire the service of enjoying the café’s environment without mandatory buying of meals.​​ The café will also provide takeaway food services, where a customer does not temporarily​​ require​​ taking​​ meals inside the café.​​ However, the café will provide a menu for products offered​​ with a price tag on each product.​​ Also, non-coffee drinks will be provided to satisfy the taste of every customer

Factors​​ that​​ Provide​​ Competitive Advantages​​ and Disadvantages

The café's ambient will provide a competitive advantage to the business since the café will display different displays to attract the attention of the customers.​​ Also,​​ acquiring raw materials from foreign countries for the production of a​​ variety of meals ranging from traditional meals to international meals will​​ be advantageous because it​​ will​​ attract a wide range of customers both external and internal. Employing expert chefs and​​ provide effective customer care service will enable the café to stay competitive.​​ Allowing customers to enjoy the atmosphere of the café will also assist in indirect marketing of the café.​​ However,​​ allowing customers to stay in the café for the notion of the provision of extra business customer service without mandatory buying of meals is​​ disadvantageous​​ because it encourages more idling to the café by customers.

Marketing Plan

Reason for​​ conducting​​ a​​ Market Research

To identify the potential customers and the views of​​ customers towards the business to enable easy recognition​​ of gaps in consumer expectation

Type of Data Collected

Primary​​ data

Reason

The​​ primary data will be used since the research will design survey layouts and distribute questionnaires​​ to 50 participants​​ to collect​​ customers’​​ views​​ since the method is preferred for most customer satisfaction surveys.

Yummy Café Facts​​ 

  • Market Size​​ 

The business targets over​​ 500​​ customers

Demand in​​ the​​ Market​​ 

The demand is moderate

Target Market​​ Trends

  • Growth​​ Trends

The target market is experiencing rapid growth due​​ increase in the domestic workforce and digital marketing strategies.

​​ Consumer Preferences​​ Trends

Consumer preference is increasing significantly due to rapid growth in the hospitality and hotel industries that​​ is steered by real estate development, construction,​​ and project investments​​ (El-(Dief & El-Dief, 2019).

Product Development Trends

The trend in product development is increasing significantly due to the high influx of​​ digitalization​​ (Al-Ruithe, Benkhelifa, & Hameed, 2018).

The Business’​​ Growth​​ Potential and Opportunity

There are higher opportunities and potentials for the growth of the café​​ business because the hotel and hospitality industries are showing rapid growth.​​ 

Barriers to Market Entry​​ 

Intense​​ fossil fuel usage in Saudi Arabia causes environmental risks, which hinders the target market for foreign customers.

Avoiding the Barriers

The environmental​​ surroundings​​ of the café​​ will be ensured that it comprises varieties of trees that help maintain a fresh environment within the café.

Technological, economical,​​ Governmental​​ Regulations,​​ and Industrial Changes Impact to the Business​​ 

Technology change will affect the business positively because it will enhance communication with customers, provision of services and in turn helps in building a substantial public image of the business.​​ Government regulations affect​​ the business either positively or negatively. For instance, the high-interest rates policy reduces consumer spending and encourages more borrowing while the lower interest rate​​ promotes​​ investment and​​ business​​ growth.​​ Change in industry encourages innovation thus, it is​​ advantageous.

Product

  • Meal Specialty

The meals will be prepared in small quantities from​​ multiple​​ natural​​ and​​ qualitative​​ ingredients.

Product Benefits to the Customer

The natural ingredients will promote the health of a customer​​ 

Customer

  • Target Customers and​​ their Demographics

Foreign customers like the tourist, international musicians,​​ and footballer.

Local customers like university students, government officials,​​ political leaders,​​ and investor

Competition

  • Competing​​ Companies​​ 

Restaurants in Riyadh like the Salalat coffee and the Al Orjuoan​​ 

Comparison of the Business’s​​ products​​ and​​ services​​ ​​ with Competing companies​​ 

The restaurant will provide stiff competition since they offer accommodation services.​​ 

Marketing Strategy

The marketing strategies will​​ use social media platforms to​​ advertise and also, promotion strategy​​ (Shareef et al., 2019).

Product Promotion

The café will use social media to display meals​​ to customers and offer chances of winning free meals to customers.

Promotional Budget

$5,000

Compare your Prices with those of the Competitors

The prices are​​ slightly higher.​​ 

Price​​ Impact​​ as a Competitive​​ Factor

It affects the customer's preferences and purchases intentions. The intended customers made their purchase​​ decisions mostly​​ on price​​ 

Customer Service and Credit Policy

Buy meals worth​​ $20 and get a free​​ meal voucher valid for 7 days.

Distribution Channels

Products or services are sold through direct and group booking

Legal​​ Factors

The business will work under the Saudi government complaint framework without bridging​​ any​​ business terms like tax and many more.​​ 

Bonding and Licensing Requirements

The business will ensure that employees, customers are admitted without harm as stated by the​​ Saudi Arabia federal laws and regulations

Regulations and Insurance Covering​​ the Business​​ 

The company will apply insurance cover from a legitimate company to cover the business against all vulnerable emergencies like fire outbreaks.​​ The copyrights and trademarks are purchased.

Employees​​ Number​​ and​​ Labour Type

15​​ Skilled and professional experts​​ 

How to Get Wright Employees

Through training​​ methods and requirements​​ set by the company’s HR.​​ 

Inventory

The business will keep supply inventories​​ while the rest of the inventories will be done yearly.​​ 

Expected Turnover Rate

11%​​ 

Main Suppliers

Hoteliers, food and beverage​​ companies

Delivery​​ and Credit​​ Policies​​ 

The supplier gets payments 1 week after supplying the materials

Financial plan

Profit and Loss Projection

Profit and Loss projection

Yummy Café

2021

Cost/ Expense

Cash $

Payrolls

15,500

Food cost

50,000

Rent/lease

6,000

Taxes

1,600

Utilities

3,500

Service on debts

22,000

Other expenses

-

Total Cost

98,600

 

 

Income/ Sales

 

Beverage sales

45,500

Food sales

135,000

Events

5,000

Delivery charges

1,000

Catering

12,000

Total cost

185,500

Profit/Loss

86,900

 

Cash Flow Projection

Annual cash flow Statement

13/2/2021

Yummy Cafe

Cash beginning Balance

$250,500

Operating Cash Flows (Operating activities income)

$890,000

Depreciation (Gain/ Loss from Assets’ Sale)

$3,300

Total

$886,700

Investing Cash Flows

 

Cash payments for equipment

$50,000

Leasehold improvements

$10,000

Proceeds from sales of Assets

$25,000

Total

$85,000

Finance Cash Flows

 

Service on Debts

$155,730

Totals

$155,730

Cash Ending Balance

$437,100

Net Cash Change

$187,100

 

Projected​​ Balance Sheet

Yummy café

2/2/2021

 

Asset

Amount ($)

Liabilities

Amount ($)

Current Assets

 

Current Liabilities

 

Cash in bank

25,000.00

Rent

6,000.00

Cash on hand

15,000.00

Sales tax

1,600.00

Accounts receivable

2,550.00

Utilities

3,500.00

Inventory

6,500.00

Income tax

3,000.00

Prepaid expenses

3,250.00

Employee Medical Insurance

2,000.00

Total

52,300.00

Accounts payable

5,500.00

 

 

Payroll

15,500.00

 

 

Total

37,100

Fixed Assets

 

Long Term Liabilities

 

Kitchen Equipment

314,000

Long Term loans

400,000

Real Estate

-

Others

-

Furnishing

10,800

Total

400,000

Other Assets

60,000

 

 

Total

370,000

 

 

TOTAL ASSETS

437,100

TOTAL LIABILITIES

437,100

 

Break-Even Calculation

The break-even value will indicate the point at which the business cost balances with its revenues.

Break-Even point = Fixed Costs ÷ Contribution Margin

Fixed costs=1600+6000=7600

Contribution margin= sales cost per unit-variable cost per unit

The units projected to be sold in one day is 450 units

The units projected to be produced in one day are 500 units

Sales cost per unit = 190000/450

  = 4222.2

Variable cost per day =98600/500

  =197.2

Breakeven​​ point=7600/(4222.2-197)

  = 1.8882

Conclusion

The​​ business; for instance, the​​ Yummy café​​ is set to be​​ launched​​ in Saudi Arabia, Riyadh. The place is​​ strategic​​ because it has a diverse population that can​​ assist in the provision​​ of the market utility. The business intends to provide high-quality meals, ranging from Saudi Arabia delicious meals like Hummus and foreign meals like chicken salad to satisfy a large geographical range of customers.​​ The café will also provide an ambient environment, where, individuals can enjoy various meals like​​ breakfast, lunch,​​ and supper with friends, family members,​​ and​​ colleagues.​​ Other services include takeaway services, where a customer does not temporarily​​ require​​ taking​​ meals inside the café.

The café is predicted to have a significant growth because there is​​ a rapid growth of​​ the hospitality and hotel industries in Saudi Arabia.​​ The growth is stimulated by technology​​ and​​ an increase in digital strategies of marketing like​​ the use of social media to​​ advertise​​ products and the domestic workforce​​ increase. Besides, technological changes will impact​​ the communication with customers positively, hence building a substantial relationship with customers who will assist in building the business public image indirectly.​​ Consequently, the​​ government regulations will have either a positive or a negative influence on the​​ business. For instance, consumer spending will reduce and more borrowing encouraged when the government hikes interest rates.​​ Contrary, the business will have more investments that​​ encourage​​ its growth when interest rates are​​ lower.

The main targeted customers of the yummy café are the foreign customers, who may be​​ musicians, footballers, and tourists from the​​ neighbouring​​ nations or the local customers within Saudi Arabia; for instance, the political leaders, university students, investors,​​ etc.​​ The business will have the role of protecting its employees and customers and therefore, it will apply for​​ insurance cover that protects the business against emergencies like fire outbreaks.​​ ​​ 

References;

  • Al-Ruithe, M., Benkhelifa, E., & Hameed, K. (2018). Key issues for​​ embracing cloud computing to adopt a digital transformation: A study of​​ Saudi public sector. Procedia computer science130, 1037-1043.

  • El-Dief, M., & El-Dief, G. (2019). Factors affecting undergraduates' commitment to​​ a​​ career choice in the hospitality sector: Evidence from Saudi Arabia. Journal of Human Resources in Hospitality & Tourism18(1), 93-121.

  • Shareef, M. A., Mukerji, B., Dwivedi, Y. K., Rana, N. P., & Islam, R. (2019). Social media marketing: Comparative effect of advertisement sources. Journal of Retailing and Consumer Services46, 58-69.

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