BUSINESS PROPOSAL

Istanbul Coffee Shop

Fatah Umasugi
 CHAPTER I

A. PURPOSE OF THE BUSINESS

The demand for high quality coffee products and services currently is quite big. Because

at this time coffee is no longer a habit to get rid of sleepiness, but has become a lifestyle.

Therefore we are planning to open our own coffee shop with the best idea we have from our

coffee background. Our coffee shop and roastery will have two model businesses; they are front

house and back house model.

The front of the house, also called the FH, refers to all actions on the spot that a

customer can expose or taste our products plus the atmosphere of our philosophy during their

visit to our shop. Front house will offer the best all espresso base coffee and brewing coffee

plus home made cakes with our own recipes and sell it to our customers. The back of the

house, also known as the BH, encompasses all the behind the scenes areas that customers will

not see. This acts as the central command center in our coffeeshop. It is where the roastery,

cakes is prepared, baked, and plated before making its way to the customer’s table or our

partners shop. Back house will be the main source of making company profit by selling cakes,

green and roasted coffee beans to cafes or clients. By specializing in high-quality espresso

based drinks, pour over specialty coffee and roastery, we at this model business will strive to

ensure the best coffee reaches the cups of consumers. We also offer a platform for smaller

roasting operations to be able to afford a constant flow of beans by being able to negotiate fair

prices and provide coffee to cafes with contracts for special payment or contract roasting.
 B. SUMMARY

A survey was conducted last year at coffee festival wherein 100 respondents were

gathered from the employee and visitors were given a questionnaire by coffee departement

about their knowledge in coffee and willingness for a new experience here in Istanbul, we

noticed that:

1. The need of an establishment where people could sit down and enjoya good coffee

2. There is a positive reaction to the introduction of espresso

3. Most does not understand a cup of ‘’Good Espresso’’

4. Willing to pay more expensive coffee for specialty rather than 3 in 1 coffee

What is good about this coffee shop is that we can answer all the experience from the

questionnaire and about this coffee shop company we will run two concepts of front house and

back house operation. Front house is more about serving coffee from hot to cold especially

brewing coffee with different options beans from different countries. While for back house

operation we roast our own coffee and we will try to make our own recipe for espresso and for

every cake we sell as well as selling roasted beans and use it by our coffee shop or sell it to

cafes all around Istanbul. These operations and concepts are guided by a coffee shop manager

to oversee the technical and non technical aspects of the café operation. Training of workers

and introduction of the workplace is also part of responsibility and preparing the coffee drinks in

the absence of workers: (semestral break, enrollment, vacations). Along with the manager will

be 2 custodial employees working in shifts (AM and PM) to assist in the preparation and

maintenance of the working area, service and also perform the task of the workers in their

absence.
 CHAPTER II

THE BUSINESS

A. MISSION STATEMENT

Our mission is to provide globally competitive coffee shops and importers with our own

concept roastery with professional skills; promote products and continuously grow through

innovation and dedication to excellence.

B. OBJECTIVE
1. To provide an affordable and quality cup of coffee to the customers.

2. To educate the people/customers of espresso coffee.

3. To sell quality best coffee beans and cakes to other coffee shops.

C. PRODUCT

At our coffee shop, we will offer the best special blended coffees. We serve coffee with

the best espresso with professional and friendly barista service while in the back house model

our products are green coffee and roasted coffee beans with good professional coffee experts.

For roasted beans our product is available in 250gr up to 1kg packages of roasted beans. Every

product that we produce has its own character and category based on quality and taste. The

key to a wonderful bag of roasted beans will show our design aesthetic which tells everything

about our coffee.

We will decorate using photographs and stories of the good work being done with

designer, advertisements, website, and marketing material will be emblazoned, at every turn,

free internet will be provided to customers. We will sell great coffee, espresso drinks, mochas,

lattés, teas (hot and cold, incl sweet tea), soft drinks, smoothies, frappés, and a limited selection
of bagels, pastries, cakes, cookies, and desserts from our back house work. For soft drinks, we

will use soda and mineral water. However, our core product will be brewing coffee (specialty)

with different aromas and taste beverages derived from the coffee bean from different countries,

even by promoting coffee education regarding various brewing methods (pourover, siphon,

Chemex, AeroPress, French Press), roasting and espresso-drink classes, cupping sessions

every month, and barista jams. From the back house we will provide roasted beans and we can

sell our beans to other coffee shops with our own roast technique and recipe.

D. COMPETITIVE ADVANTAGES

There is no doubt that we have to look at what our competitors have done and are

currently doing in this business. Such as how they manage their menus, prices and service

quality. However, developing a coffee flavor and selling specific coffee beans that only we as

Indonesian have access to the sources is a value as we have a lot of connections with farmers.

Food service establishments that offer coffee and a coffee shop located beside our area also

will definitely be one of the major competitors because of the volume of clients and established

marketing and operational practices. We need to offer a cozy atmosphere with quality coffee

and good coffee at affordable prices for our front house business.

E. LOCATION

Our Coffee shop location will be in the main area like Besiktas or Beyoglu. This is

because we want to reach our customers from every generation. Access to and from the coffee

shop must be easy.

The following SWOT analysis captures key strengths and weaknesses we may

face in the business.

Strengths

• Coffee shop location.

• Well trained employees with experiences in management in serving the best

coffee and making sure everyone feels comfortable.

• No direct competitors (selling special beans)

• Low overhead expenses

• Own Espresso Recipe

• Minimal operation input

• Convenience and relaxing environment

Weakness

Our weakness will be the time, it will take the people of Istanbul to know where we

are and what we offer. People go about their daily activities and most times tend not to

discover the new business in town unless the business establishes a direct marketing

Plan. We plan to start advertising even before we open up our facility, at least to make

sure that our brand is known.

• Abundant new prospects of coffee drinkers

• Provide and training baritas in the coffee industry

• A growing market with a significant percentage of the target market

• Increasing sales opportunities as people become familiar with the advantages of

the structured conversation system.

• The ability to lower variable costs through efficiency gains.

• Future expansions for an assessment venue

KEY SUCCESS FACTORS

• Store design that will be both visually attractive to customers, and designed for

fast and efficient operations.

• Specialty coffee specific

• Employee training to insure the best coffee preparation techniques

• Marketing strategies aimed to build a solid base of loyal customers, as well as

maximizing the sales of high margin products, such as espresso drinks.

• Provide the best products and are easy to recall to every customer so that it’s

their trademark for them to go back again in our business.

• Staff. Hire employees with work experience and have a strong background with

the position that they want to fill up if they are fit to their job satisfaction.

• Product. They must be original recipes or menu with no copying of different

styles to the other business establishment.

• Excellent customer service.

The main strategy of our coffee shop is to educate people with coffee drinking

culture. With a low overhead cost with the help of OJT, a lower price can be presented to

attract more clients in the coffee shop. A concept that is unique from competitors

Product Strategy

The company will launch new products through social media and offer its customers

the best tasting coffee beverages in the area. This will be achieved by using high quality

ingredients and strictly following preparation guidelines. The store layout, menu listings and

marketing activities will be focused on maximizing the sales or higher margin back house

business. Along with the espresso drinks, brewed coffee, as well as some refreshment

beverages, will be sold in the coffee shop as front of house.

Pricing Strategy

The coffee shop will have its products with good prices consistently to maintain the

loyalty of our customers. Pricing will be on a medium basis, meaning it is between a lower

and higher price. It will be offered at a reasonable price especially to the customers. Our

coffee shop primarily utilizes coupons and discounts because we believe that the most

valuable customer demographic of daily coffee consumers is not influenced by discount

programs or coupons. Compared to our competitors comparably priced. By offering a wide

selection of both regular and gourmet coffee, we believe that our prices can appeal to even

the most price sensitive consumers.

Process refers to the procedures or processes that are developed to ensure

the customer has a positive and memorable experience. When marketing products:

• Products are manufactured or purchased on time.

• Products deliver the required quality and performance levels.

• Sufficient stock is on hand to meet customer demand.

• Products reach the customer in a timely manner.

• Products reach the customers in good condition.

• The paperwork is accurate and timely.

When marketing services:

• Staff and trainees are available to perform the service when and

where required.

• Staff and trainees provide the service to the required performance

level.

• Sufficient staff and trainees are available to perform the service.

Market Segmentation

Our Coffee Shop will focus its marketing activities on reaching the customers and

partners, for front house business we will focus on reaching the coffee lover and cakes lover,

people working in offices located close to the coffee shop and on sophisticated teenagers

while back house reaching the cafes and coffee shop that need coffee beans and cake with

our own recipe.

A. PRODUCT AND SERVICES

This coffee shop offers hot and cold coffee and snacks for the customers and

client and it will be served to them by employees with respect to the customers at their

satisfaction. Espresso based, brewed coffee with such varieties from different

countries. Complementing the coffee will be a smoothie line including wild berry,

peach, strawberry and lemonade. Rounding out the simple menu line will be pastries.

The offering may vary with season ability but the primary line will be Indonesian type

cakes, bread and cookies.

PRODUCT DESCRIPTION

Quality of a product service is determined by the customer’s perception of the

degree and excellence of its characteristics. Quality is the key issue of the relationship

marketing which heavily influences the customer’s satisfaction.

MENU DESCRIPTION

The names of the products will be based on the standard recipe of the different types

of coffee so that the customers will not be confused and as part of education the public of the

types of coffee concoctions. Pastries and other products will be supplied by the back house.
 CHAPTER IV

FINANCIAL ANALYSIS

A. Recipe Costing

Espresso

INGRIDIENTS AMOUNT /unit

Shot espresso coffee 1shot 17gr

Water 1 cup 30ml

*For Espresso we need around 18-19gr/shot + 30ml

Cost prediction for making 1 Cappuccino including takeaway cup.

Cappuccino

INGRIDIENTS AMOUNT UNIT COST

Shot espresso coffee 2shot 0.50

Steamed milk ½ cup 0.25

Milk foam ½ cup 0.10

0.85$/serving
 B. Specification of Equipment

Here are the following which is needed in the operation of the business. Also cleaning

and maintaining this equipment must be based on the lifespan of the item.

Machineries and Equipment

Item Quantity Unit Price Total Price

Espresso Machine 1 19000 19000

POS System 1 160 160

Blender 1 180 180

Hot water 1 300 300

Grinder 2 2750 5500

Pos 1 80 80

Cake Display 1 800 800

Refrigerator 1 1500 1500

Roasting Machine 1 8600 8600

TOTAL 36120 $

Supplies per Week

Description Quantity Unit Price Total Price

Coffee Cups 1000 Packs 47$

Tissue Paper 2 packs 1 2$

Cleaning Towel 2 1 2$

Sponge and scrub 1 0.40 0.40$

Dishwashing Liquid 1 bottle 3 3$

The salaries are in minimum wage wherein the project proponents follow the

minimum rate as set by the DOLE and it is based on Lira.

Employee Hour/day Day/week Salary/wages No. of Day/month Salary/Rent

Position daily (PHP) Employees monthly (PHP)

Manager 7 7 1 49 4000

Barista 9 6 1 54 3500

Rent 30 9000

TOTAL 2 16500 TL

Total Project Cost

COST FACTORS AMOUNT

Pre operating Expenses

Income Statement forecast

Forecast Income Statement for Three (3) Years

2021 2022 2023

Sales

Costs of Sales 15%

Gross Profit

Less: Operating Expenses

Supplies

Net Profit
Main Equipments