COFFEE SHOP FEASIBILITY STUDY

Introduction to Business Presents:

~ Summary of Findings~Vision StatementCompany ObjectivesProducts and ServicesMarket AnalysisMarketing StrategyCompetitive AdvantageOperations Management Team MembersFunding: Start-Up Costs, Pro-Forma Cash

projections

~Vision Statement~

Thunderstruck Java will provide a morning beverage service so students are settled, focused, and ready to learn.

If demand is as expected, TJ’s will generate enough cash to fund a more ambitious café environment in the future, providing a social and calm atmosphere to start the day

for the students, by the students

~Company Objectives~

Sell morning beverages Make Money Expand if possible

Morning coffee/lounge experienceStudent bonding

○ Students on time!○ Settled and ready for the day

Thunderstruck Java=Authentic LEARNINGReal business experience to reach curricular goals

~Products and Services~

Provide a morning experience:Beverages

Hot chocolateCoffeeTea (Chai?)Cappuccino

Possibly food in the future- Donuts or bagels- Cinnamon rolls (Foods class creations?)- Fruit and/or whole grain options

~The Market~

Middle School (12-14)Hot chocolate primarily

High School (14-18)Strong demand for

○ Cappuccino○ Hot Chocolate○ Coffee/Chai tea

~Survey results~

Student Commentsout of 304 surveys returned:

○ 152 positive comments○ 12 unfavorable comments

FrequencyFrom 1 to 5 times per weekReasonable assumptions over time

Graphs of beverage preferences

Coffee Top 2 Tea Top 2 HC Top 2 Cappuccino Top 2

112

66

190

217

Beverage Preference Survey Results

Coffee Top 219%

Tea Top 211%

HC Top 232%

Cappuccino Top 237%

Beverage Preferences by Percent

One x12%

Two x35%

Three x34%

Four x9%

Five x10%

Patronage per Week

~Marketing Strategy~

Announcements Print

PostersFlyers on Lockers

WebHigh School Home PageFacebook?

Promotional IdeasDiscounts: (good grades or grade improvement?)Buy a permanent cup for cheaper refills?

~Competitive Analysis~

Direct:The DepotNorm’s BPKafe BeansSubwaySandBur CornerScandy CenexScandy Bakery

Indirect:IGACrystal CaféHome

~Competitive Advantage~

More convenient Lower costs Higher profit margin Motivated sales staff Possible future: A comfortable socializing

place in the morning will attract ongoing student patronage

~Operations~ Purchasing: Webstaurant or Sysco

Supplies: Drink Mixes, Cups, CondimentsInventory control part of learning experience

StaffingQuality Customer ServiceVolunteer Business Students: various possible incentives

EquipmentKarma 456 Post-Mix Cappuccino Dispenser

○ Compact Size, 3 Flavor capability○ Pour-Over design, can convert to water hook-up○ Reasonable Price○ See Specifications

FacilitiesTicket Booth Area… for now!?

~Source of Equipment/Products

Pamasco, supplier of KARMA 456Webstaurant Store:

○ French Vanilla, good reviews○ Fat-free/Sugar-free option?○ Hot chocolate○ Chai tea○ Cups/lids

SYSCO food service: costs are unclear but potentially favorable

~Equipment Proposed~

Pour-over design Thunderbird! Easily converts to water line Grows with company Light enough to:

Sell at Football gameBasketball gamesTrack meets

~Management Team~

Student managers and student accountants Mrs. Scott Workers

Students from high school business classesCo-Op Students

Schedule: 3 Days/WeekPreparation/Clean Up 7:15 to 8:25Open Doors At 7:30Close Doors At 8:15

~Finance~ Start-Up costs:

Equipment:○ KARMA 456 $1,458.17○ Coffeemaker 0

Initial Supplies:○ Mixes: $ 234.00○ Coffee/tea/creamer 60.00○ Cups/lids 99.98○ Shipping 100.00

Total $1,952.15

~Finance~ Revised

Cash Flow Projection: (Conservative!)25 customers/day

○ $25.00 Gross Sales○ -12.25 Cost of Goods Sold (.49/cup*)○ $12.75 Net Profit/day

180 days of school, x $12.75

= $2,295 Profit 2011-12 (excludes events)

*Cost per cup: supplies from SyscoCup/lid: 13 cents + Mix: 33-36 cents = Total 46-49 cents

~Growth Plan~

Future products and services○ food, possibly bagels and or other morning food○ more drink options, different flavors

Expansion○ location○ size

Extend hours Consider paid positions, Co-Op employees Growth of Business Ed. Department

~Potential Barriers~

Wellness CommitteeFat-free, Sugar free options

SchedulingIncentives to student workers, managers

○ $ Credit for educational trips?○ Grade, extra credit points?○ Work experience for applications, scholarships

~Contingency Plan~ Sell to IS Club for permanent home at

Football FieldSysco: “no charge” machine

Either way, Board’s investment is covered in year one.

~Thank You!~

We appreciate your consideration!