The Coffee Shop

Business Plan
BUSINESS PLAN THE COFFEE SHOP

TABLE OF CONTENTS

STATEMENT OF NON-DISCLOSURE & CONFIDENTIALITY ............................................................... 4

EXECUTIVE SUMMARY .................................................................................................................... 5

BUSINESS OVERVIEW ...................................................................................................................... 7

BUSINESS GOALS ......................................................................................................................... 9

Immediate Goals ...................................................................................................................... 9

Short-Term Goals ..................................................................................................................... 9

Long-Term Goals .................................................................................................................... 10

BUSINESS MANAGEMENT ......................................................................................................... 11

LOCATION AND FACILITIES OF THE BUSINESS........................................................................... 11

PRODUCTS AND SERVICES ............................................................................................................ 12

COMPETITIVE ADVANTAGES ..................................................................................................... 13

INDUSTRY OVERVIEW ................................................................................................................... 15

OVERALL SIZE OF THE INDUSTRY .............................................................................................. 15

DEMOGRAPHICS ........................................................................................................................ 17

Highlights - 2003 Canadian Coffee Drinking Study ................................................................ 20

Demographics On Coffee In Anytown .................................................................................... 23

The Canadian Coffee Industry ................................................................................................ 28

MARKETING STRATEGY ................................................................................................................. 31

PRICE.......................................................................................................................................... 31

PROMOTION/DISTRIBUTION STRATEGIES .................................................................................... 32

TARGET MARKET ....................................................................................................................... 33

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BUSINESS PLAN THE COFFEE SHOP

OPERATIONS PLAN ........................................................................................................................ 34

ORGANIZATIONAL CHART ......................................................................................................... 34

SWOT ANALYSIS ............................................................................................................................ 35

STRENGTHS................................................................................................................................ 35

WEAKNESSES ............................................................................................................................. 36

OPPORTUNITIES ........................................................................................................................ 36

THREATS .................................................................................................................................... 36

IMPLEMENTATION PLAN .............................................................................................................. 37

FINANCIAL PLAN............................................................................................................................ 38

INCOME STATEMENT (PROJECTED FOR NEXT 36 MONTHS) ......................................... 38

STATEMENT OF CASH FLOWS (MONTHLY FOR THE FIRST YEAR) ............................................. 39

APPENDIX ...................................................................................................................................... 40

SOURCES .................................................................................................................................... 40

VENDOR AGREEMENTS ............................................................................................................. 41

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BUSINESS PLAN THE COFFEE SHOP

STATEMENT OF NON-DISCLOSURE & CONFIDENTIALITY

This document contains proprietary and confidential information. All data submitted to the
reader is provided in reliance upon its consent not to use or disclose any information contained
herein except in the context of its business dealings with The Coffee Shop. The recipient of this
document agrees to inform its present and future employees and partners who view or have
access to the document's content of its confidential nature.

The recipient agrees to instruct each employee that they must not disclose any information
concerning this document to others except to the extent such matters are generally known to,
and are available for use by, the public. The recipient also agrees not to duplicate or distribute
or permit others to duplicate or distribute any material contained herein without The Coffee
Shops express written consent.

The Coffee Shop retains all title, ownership and intellectual property rights to the material and
trademarks contained herein, including all supporting documentation, files, marketing material,
and multimedia.

BY ACCEPTANCE OF THIS DOCUMENT, THE RECIPIENT AGREES TO BE BOUND BY THE

AFOREMENTIONED STATEMENT.

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BUSINESS PLAN THE COFFEE SHOP

EXECUTIVE SUMMARY
This Business Plan has been prepared to present The Coffee Shop to potential sources of
funding in order to raise the capital necessary to improve its equipment and facilities and
market its service in the community.

The Coffee Shop is a start-up coffee shop located in Anytown, Canada. This particular location is
surrounded by a youthful population, and 45,000 residences of the neighborhood.

It is owned and managed by Laurie Smith. Miss Smith has extensive experience in customer
service, management, decision making and has great respect for organic and fair trade coffee,
and a burning desire to make a difference in her community. Miss Laurie Smith has extensive
experience in management, customer service, and conflict resolution and quality assurance.
Having worked for the Paramedic Emergency Services, she has strong multi-tasking skills and
works extremely well under pressure. Laurie Smith wants to make a
change in her community by hiring elders and having a sense of
community awareness, bringing the people together for a great
experience in a relaxing atmosphere. She plans on making her store as
green as possible", by serving organic coffees, locally vegan made treats for everyone. All
coffee is fair trade and sweets are vegan and gluten-free and eco-friendly. Specialty coffees
(lattes, cappuccinos, and other special brews) are growing in popularity. While 54% of
Canadians occasionally consume specialty coffee, only 6% do so on a daily basis. With this
sector growing strongly, there is an opportunity to increase coffee sales through foodservice
and specialty coffee shops. (Source: Beverage Marketing Corporation)

The Coffee Shop expects to catch the interest of a regular loyal customer base with its variety of
coffee and pastry products while offering a relaxing and unpretentious atmosphere. The
Company plans to build a strong market position in the community, by choosing the proper
location and offering a new age, organic, fair-trade, local hang out. The Coffee Shop aims to

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BUSINESS PLAN THE COFFEE SHOP

offer its products at a competitive price to meet the demand of all income classes in the local
market area.

The Coffee Shop would establish a large regular customer base, and will therefore concentrate
its business and marketing on local residents, which will be the dominant target market. This
will establish a healthy, consistent revenue base to ensure stability of the business. High
visibility and competitive products and service are critical to capture this segment of the
market.

Competition in the local area is somewhat sparse, and does not provide the luxury of space.
Local customers are looking for a high-quality product in a relaxing atmosphere. They desire a
unique, experience that includes the whole family. Leading competitors do not have what The
Coffee Shop have to offer. The coffee shop is ideal and unique, one of a kind in Anytown.

The Coffee Shop requires $105,500 to purchase equipment and to market their facility and
services to their community. The following plan describes the Company, the market, and the
Companys plans to successfully expand its operations with the support of the requested
capital.

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BUSINESS PLAN THE COFFEE SHOP

BUSINESS OVERVIEW

The Company will cater to all of its customers by providing coffee and other products made to
suit the customer, down to the smallest detail.

The caf will offer freshly prepared bakery and pastry products at all times. Six to eight
moderate batches of cupcakes and pastry products will be delivered during the day to ensure
that fresh baked goods are always available. The Company will look to source their products
from local merchants. One such merchant will be Cupcakes by US, which has been in business
for a year and is growing, making this bakery a great choice for The Coffee Shop.

The cafe will also offer our clients the choice of sitting with their laptop, book, magazine or
newspapers. Some books, magazines and newspapers will be available for clients free of charge
to further enhance the relaxing atmosphere that is greatly desired.

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BUSINESS PLAN THE COFFEE SHOP

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BUSINESS PLAN THE COFFEE SHOP

BUSINESS GOALS

Immediate Short-Term Long-Term

Goals Goals Goals

IMMEDIATE GOALS

Ensure that people in the community feel at home in the caf

Educate customers about what products the caf stocks
Have employees hired and trained (looking to recruit from the elderly community)
Be making a profit

SHORT-TERM GOALS

Increase advertising of fair-trade and organic beverages

Increase clients in the loyalty club

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BUSINESS PLAN THE COFFEE SHOP

LONG-TERM GOALS
Create a model that is franchise ready
Establish an interest in the franchise model
Open a second location

The Company will utilize the following strategies to achieve its short and long-term objectives

Will host seminar nights at caf

Explore different coffees around the world and introduce the best to the caf
Offer customers exotic coffee you cant get anywhere else
Work hard and remain dedicated, confident and open-minded
Partner with other businesses with the intention of creating a community vibe
Have different vendors bring product samples to find the right products to be successful

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BUSINESS PLAN THE COFFEE SHOP

BUSINESS MANAGEMENT

The Coffee Shop is currently a sole proprietorship owned by Laurie Smith.

LOCATION AND FACILIT IES OF THE BUSINESS

123 Coffee Street

Anytown, Ontario
Canada

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BUSINESS PLAN THE COFFEE SHOP

PRODUCTS AND SERVICES

Coffee

Bakery Goods

Fair-
Trade

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BUSINESS PLAN THE COFFEE SHOP

The Coffee Shop offers a range of coffee, all from high-quality organic coffee from a local
fair trade certified company
There will also be a variety of juices, teas and water.
The Coffee Shop will provide fresh cupcakes and coffee cakes from a local bakery. Cupcakes
By US is a local bakery offering baked sweets utilizing local products. Four to six moderate
cupcakes and coffee cakes will be delivered during the day to assure fresh baked goods are
always available.

COMPETITIVE ADVANTAGES

The Company has a number of qualities that gives them a competitive edge in the market.
These include:
Unique concept, service and products
Dogs are welcome
Eco friendly
Offer gluten-free products
Will bring in different and unique coffees

The Coffee Shop main competitive edge is the relatively low level of competition in the local
area in this particular niche.

This community has a population of 45,000 residences as per the City of Anytown. There are no
coffee shops in the neighborhood except for Tim Hortons. The residences of the area have
three choices at this time: a drive through Tim Hortons approximately 650 meters from The
Coffee Shop that is operating out of Petro Canada, a second Tim Hortons with the option of
sitting down 1.7km, and a third Tim Hortons 1.8 km offering full service.

None of these locations allow dogs in their coffee shop with their pet parents, or provide a
organic, fair-trade coffees with a gluten free treat.

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