A Business PlanFor startingCaf coffee - HUGS WITH MUGS

Submitted By: Amit gupta00113303913

Executive SummaryI am planning to start a business of coffee shop. Name of the shop is HUGS WITH MUGS .Our target market is Rohini. The customers to whom our products will be supplied are retailers, wholesalers and traders in the Rohini market . The HUGS WITH MUGS will be a one of a kind coffee house / caf located in ROHINI SEC-24. The 200 square foot caf will be located in the newly constructed Market Square Plaza located on the Pocket 7, sec 24.

The HUGS WITH MUGS aptly named for the aromatic brown liquid that will fill the cup, fills the void of original cafes in the market area, stands out from its corporate peers with their fast food concepts and fast services. The HUGS WITH MUGS is the alternative to fast food/commercial/coffee shops and offers a much calmer, civilized gourmet coffee experience. There are no televisions in the caf, the background music is subtle and work from local artists will hang on the walls. The caf is well appointed with overstuffed leather chairs and sofas in a library like setting. The caf is reminiscent of times gone by yet is cutting edge technologically with WIFI and state of the art espresso machines.

The HUGS WITH MUGS measures its financial success in terms of increased market share and in earnings. With a total local market of rs 54 million, this is a tremendous opportunity! The keys to success will be the ability to offer quality gourmet coffees, take advantage of its small size, and reliance on an outstanding barista staff. In order to achieve these goals, the caf will offer some the areas finest gourmet beans from local distributors. Because of its small size, the caf can enjoy larger margins in the form of lower overhead. The cafe will hand select baristas and offer salaries comparable to the chains. In turn the baristas will be trained to cross-sell, and sell the higher margin products.

General Company DescriptionMy company will be in the confectionary business. Hugs with mugs is a coffee shop which is into providing quality coffee to the customers

VisionOur vision is to be the leading coffee provider all over India.

MissionHugs with mugs is committed to its products and employees which they believe is the recipe for market success. We seek to produce high quality products at competitive price using modern technology to provide high satisfaction to the consumers.

Objectives To provide the customers with the quality products to the best interest of the customers. To create Price competitive Products as part of the effect to increase the world access to high quality coffee. To ensure a hygiene & clean working environment as to continue to produce Safe & Tasty Products To strive to Meet & Exceed Customer's Expectations so as to ensure a sustainable business relationship.

Target Market Upper class Middle class Lower middle class All age groups

About IndustryHugs with mugs will be a coffee house / caf located in the sec-24, rohini. Located in the rohini, the cozy caf will be located in the newly completed Market Square Plaza. The caf will serve gourmet coffees, espresso and drip coffee, lattes, and smoothies. The simple pastry offerings may vary with seasonality but the primary line will be muffins, breads, cookies, scones, and rolls. All pastries will be supplied daily by a local bakery.The caf will be owned and operated by amit gupta. The caf will be open for business Monday Thursday 7-10, Fridays and Saturdays 7-11 and closed Sundays.Core CompetenciesThe core competencies on which our company will compete are: TasteBy consuming the hugs with mugs coffee flavors there is so much pleasure in tasting the chocolate, gourmet, ice cream and cold milky coffee makes the coffee tasty. First perception the consumer would describe for the coffee as chocolaty tasty and delightful QualityThe raw ingredients are of finest quality and also care is taken of the production process; roasting and crushing the cocoa beans and mixing the cocoa paste with sugar and other ingredients such as milk.

OwnershipOur company will be a sole proprietor ship firm.Guiding PrinciplesHugs with mugs is committed to values such as excellence, passion, quality, integrity and leadership which allow them to navigate challenges and provide for future opportunities. These core beliefs start with their commitment to their products and their employees.Hugs with mugs rewards excellence and cherishes loyalty. The caf will work with its employees to build strong businesses and a secure future. Keys to SuccessHugs with mugs stands out from the competition. Below are their Keys to Success:Great Products providing exemplary products at market prices will make customers want to return again and againHire Quality Baristas Pay employees rates similar to the larger chains with opportunities for long term careers and opportunities for advancement with long term plans to open a second facilityConvert Customers to Connoisseurs - Only 40% of the nations coffee drinkers consume premium ground and whole bean coffee this will aid in continued growth

Competitor AnalysisCOMPANYFOUNDED INBRAND PORTFOLIO(confectionery products)

Caf coffee day1996Sandwitch, coffee, tea, burger

starbucks1971Coffee, coffee beans, ice creams, sandwitches, tea and pastries

barista2000Coffee, ice cream, muffins and pastries

Mc donalds1940Cold coffee, burger French fries

Costa coffee1971Expresso Coffee, tea, chocolate pastries

nescafe1938Coffee, powdered coffee, muffins, pastries, chocolates, tea

Our ProductsOur company will be dealing in the serving of 4 products. They are:1. Expresso coffee2. Plain Coffee Hot coffee Cold coffee3. Mocha coffee4. Rounding out the simple menu line will be pastries obtained with an outside supplier, freshly made and delivered daily. The pastry offerings may vary with seasonality but the primary line will muffins, breads, cookies, sandwitch and rolls.

Financial planTotal amount required for the investment is Rs. 10 lakh (approx).Debt: The debts has been borrowed from relatives and loans from banks. 6 lakh would be taken from bank at the rate of interest for 9% p.a.Equity: ownership fund (4 lakh would be invested by me ). FINANCIAL PLAN FOR TWO-FIVE YEARS Financial Plan:To get the business up and running, we will need to obtain financing. The tables show annual figures. Break-even Analysis. The monthly break-even point is approximately Rs 10 ,20,000. Projected Profit and Loss.The following table and charts highlight the projected profit and loss for three years.

marketing PlanEconomicsTotal size of coffee market is 500 million tonnes

Trends in Consumer Preferences The range and variety of coffee available in malls seems to be growing day by day, which leads to lot of impulse sales for coffee companies. Branded coffee shakes have become more popular. Cold drinks are becoming the substitute of coffee shakes People prefer caf s for studying, conferences, meetings and hanging out

Barriers to entry Huge startup costs Ensuring good quality products to the customers High Level of competition from the well established brands To keep price of the product low, as it is a price sensitive market

Overcoming the barriers to entry To overcome the barrier of huge start up costs our machinery would be taken for lease for first few years of business. Marketing of our products would be on the basis good quality and healthy products to provide a competitive advantage.

ProductFrom customers point of view, coffee is the product which shows their impulse buying behavior. Customers are looking for low priced coffee shakes and also it should have good taste.Positioning StatementHugs with mugs is a gourmet coffee lovers gem. It is truly one of a kind coffee house offering outstanding gourmet coffees and blends, served by enthusiastic and knowledgeable baristas, in a warm, relaxed environment. It is the place to go to visit with friends or cozy up in a quiet corner with a good book either from the library or from one of the patrons personal E-Books.Pricing StrategyHugs with mugs primarily utilizes competition based pricing. The caf does not utilize coupons and discounts (other than opening promotion) because they believe that the most valuable customer demographic of daily coffee consumers is not influenced by discount programs or coupons.Promotion and Advertising StrategyOnline Advertising hugs with mugs will advertise regularly on popular social media sites, such as Facebook. Compared to traditional print advertising, this is a cost effective tactic that will allow them to reach prospects in a highly targeted way (e.g., based on criteria such as age, gender, geography, etc.).Web Site hugs with mugs will develop a simple Web site, hugs with mugs coffeehouse.com which will provide basic information about the business, the menu, and links to their presence on the aforementioned social media channels.Radio Advertising - During the first six months of operation, and during the busy holiday shopping season, the business will advertise on local radio stations.

WebsiteHugs with mugs will have a simple website- hugs with mugs coffeehouse.com identifying its menu items of gourmet coffees, smoothies and pastries, along with the address, map and hours of operation. The website will also have a calendar of any upcoming events or sponsorships . The site will also have links to their social media sites such as Facebook, Twitter, and Pinterest.

Sales StrategyHugs with mugs will use the following methods to increase sales revenue :The menu will focus on the most profitable products sold. The caf will always draw customer attention to the most profitable products.As warranted, the caf will raise prices to bolster brand image. Prices communicate a perceived value of a product; so if set too low, the customers might assume that the beverages are inferior compared to the competition.Monitor flavoring inventory Excess flavoring inventory ties up capital and valuable back room space for storage. The caf will utilize 4-6 varieties, including sugar free offerings.Control waste and theft audit sales and inventory reports to evaluate ingredient waste due to inefficient preparation, returned drinks and employee consumption. Retail locations can easily waste 20% or more of their daily sales these three key categories, which is a substantial and unnecessary loss.Monitor and evaluate hours of operationRun employee sales contests The baristas are the salespeople and have a great deal of influence over the customer ordering process. All baristas will have some form of sales and customer service training to make each transaction active, rather than passive. Sales contests will emphasize high margin items or cross selling

Customers (Wholesalers and Retailers)Ansh Marketing Unit No. 7, CSC Pocket D, DDA Market, Sarita Vihar , New Delhi - 110076, Delhiwww.anshmarketing.com 08048411044

Blue Orchard Inc. AM- 183, 2nd Floor, Shalimar Bagh , Delhi - 110088, Delhiwww.indiamart.com/blueorchardinc 09643007925

JPH Enterprises No. 18/500, D D A Flats, Madangir , New Delhi - 110062, Delhiwww.indiamart.com/jphenterprises 08046071262

Himalayan Leaf Pvt Ltd B-85, 1st Floor, Udyog Vihar, Phase- 5 , Gurgaon - 122002, Haryanawww.himalayanleaf.com 09953363680

jeet EnterprisesFateh Nagar , New Delhi - 110018, Delhiwww.indiamart.com/jeet-enterprises-delhi 08826123828

Craft HouseBangla Sahib Road , New Delhi - 110001, Delhiwww.indiamart.com/craft-house 011-41515250

Competitors Caf coffee day Costa coffee Mc donalds starbucks

NicheOur niche market would be the children and young generation as coffee is mostly liked by children and youngsters.

Promotion Local news paper Local TV channel Local radio Station Website- www.hugs and mugs coffeehouse.com Through pages and account on Social Networking Sites (Facebook & Twitter)

Distribution channelsOur products would be distributed through outlets like wholesalers, retailers and our own sales force.Proposed LocationFor our business, the proposed location would be the model town.

Operational PlanThe product will be distributed in the restaurant by food servers. The food will be cooked on site, except for some of the baked goods. When a customer enters Coffee house they will be greeted by a hostess who will seat them and provide them with menus. A server will greet them and give them water. The server will inquire what they would like to drink. The drink order will be prepared by the server. The server will deliver the drinks and then take the food order if the customer is ready. The server will take the food order, ring it up and the order will appear on the cook's computer screen. The cook will prepare the food, in the order the tickets are given. The cook places the order . The server must pick the food up within two minutes. The food is placed on the table and the server will ask if there is anything else which the customer needs. The server will check all the drinks and replenish water, ice tea and plain coffee. The server will familiarize the customer with the operations of Coffee house. They will explain to the customer that a number of table games are available if they wish to play. The server will let the customer know about the reading room and present them with a schedule of events. The server is responsible for checking on the customer in a timely manner. This should be done in an unobtrusive manner. The server will maintain the tables in a clean and sanitary condition. Dirty dishes and plates must be removed immediately. The orders will appear on the computer monitor and the cook will prepare them according to the order given. Cleanliness is required above all else. The servers will keep all of their work areas clean at all times. Spills must be cleaned immediately. After each shift, servers will check the side work chart and have it finished before they leave. The cooking area will be maintained in a clean and sanitary manner. All areas will routinely be wiped down and swept. All employees must read and be knowledgeable of health regulations and follow those rules. Training will be provided by hugs with mugs. Hands must be washed on a routine basis. Smoking must be prohibitedThe servers will be required to present a clean appearance. The servers must be polite, friendly, and helpful, not only to the customer but to the other staff as well. At no time will employees be allowed todiscriminateby remarks, actions or jokes. ProductionThe product will be manufactured by Full Automatic Coffee Production Line (QH200), with this system, baking the moulds, depositing, forming etc. series procedure can be achieved automatically. It's available to depositing all shape of chocolate. Such as double color filled-inside, nuts etc chocolate. Since our product are plain as well as nut are added this machine is appropriate.This machine can produce 100-300 litres coffee per hour. It can produce coffee of different falvours .. By Producing Coffee in different flavours we can attract all segments of market.The production capacity is fully automated as mentioned above, so the need of personnel is comparative less than other semi-automatic machine.

LocationOur coffee shop will be located in rohini sec-24.

Legal formalities: I could get DIN (Director Identification Number) which is printed, signed, and sent to Ministry of Corporate Affairs. Get a TAN (Tax Account Number) for income taxes from Income Tax Departments Assessing Office. I must be registered Enroll with Establishment Act (State/Municipal), Shops, and Office of Inspector. I should also get food process order certificate from ministry of food processing industries and also doing as business certificate required for our chocolate industry.

PersonnelThe machine is fully automatic so need of personnel is less. I need skilled worker for maintainance of ambience and serving properly that satisfies the customers to the fullest. There would be a need of professional for checking and maintaining the quality of product.

InventoryThe basic raw material required for making coffee is coffee beans, Sugar, Full Cream Milk , Cocoa powder, ice cream,and Flavors.

Management and organization

Company Name:hugs with mugs

Owner :amit guptaGeneral administration Manager : amit guptaJob Description: Increasing management's effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers Communicating values, strategies, and objectives; assigning accountabilities Accomplishes subsidiary objectives by establishing plans, budgets, and results measurements; allocating resources; reviewing progress; making mid-course corrections. Maintains quality service by establishing and enforcing organization standards. Contributes to team effort by accomplishing related results as needed.

Finance Manager:Divij sharmaJob Description: providing and interpreting financial information; monitoring and interpreting cash flows and predicting future trends; developing financial management mechanisms that minimise financial risk; conducting reviews and evaluations for cost-reduction opportunities; managing a company's financial accounting, monitoring and reporting systems; liaising with auditors to ensure annual monitoring is carried out; managing budgets; arranging new sources of finance for a company's debt facilities; handles accounting

Marketing Manager : rishi mehtaJob Description: manage and coordinate all marketing, advertising and promotional staff and activities conduct market research to determine market requirements for existing and future products analysis of customer research, current market conditions and competitor information develop and implement marketing plans and projects for new and existing products manage the productivity of the marketing plans and projects monitor, review and report on all marketing activity and results determine and manage the marketing budget deliver marketing activity within agreed budget develop pricing strategy deal with media and advertising

CRITICAL RISK Non acceptability of the product. Most critical is the customers' changing tastes. High rent cost Customers brand loyality

EXIT STRATEGY If the project does not run successfully I would wind it up and payback the loan by selling machineries, equipments and tools or Company will hire a qualified business broker to sell the business.

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