General Business Description
Type of Business
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
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.
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
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
The business targets over 500 customers
Demand in the Market
The demand is moderate
Target Market 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.
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
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
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.
The marketing strategies will use social media platforms to advertise and also, promotion strategy (Shareef et al., 2019).
The café will use social media to display meals to customers and offer chances of winning free meals to customers.
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.
Products or services are sold through direct and group booking
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.
The business will keep supply inventories while the rest of the inventories will be done yearly.
Expected Turnover Rate
Hoteliers, food and beverage companies
Delivery and Credit Policies
The supplier gets payments 1 week after supplying the materials
Profit and Loss Projection
Profit and Loss projection
Service on debts
Cash Flow Projection
Annual cash flow Statement
Cash beginning Balance
Operating Cash Flows (Operating activities income)
Depreciation (Gain/ Loss from Assets’ Sale)
Investing Cash Flows
Cash payments for equipment
Proceeds from sales of Assets
Finance Cash Flows
Service on Debts
Cash Ending Balance
Net Cash Change
Projected Balance Sheet
Cash in bank
Cash on hand
Employee Medical Insurance
Long Term Liabilities
Long Term loans
The break-even value will indicate the point at which the business cost balances with its revenues.
Break-Even point = Fixed Costs ÷ Contribution Margin
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
Variable cost per day =98600/500
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.
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 science, 130, 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 & Tourism, 18(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 Services, 46, 58-69.