Short Business Narrative - Granicus

ATTN: City of Hermosa BeachCommunity Development Department, Planning Commission

We, the business owners of the proposed Hi-Fi Espresso, are seeking a determination that the establishment’s parking requirement be based on the retail standard.

Hi-Fi Espresso will be a coffee shop/snack bar that sells pre-prepared snacks, coffee, tea, and other non-alcoholic beverages, along with a small variety of fine retail goods. The intent of the business and of the layout of the space is to encourage a quick through-put of customers. This is reinforced via:

• Customers will order and receive their purchases at the counter; no table service will be provided

• Food items available will be snack oriented only; no full meals will be served

• Seating is relatively limited (</= 25 seats)

• The relatively small square footage of the space itself (<600 s.f.)

• There will be no kitchen or food preparation on premises

It is imagined that the main users of the coffee shop/snack bar will be those in the neighborhood that stop in on their way to or from their homes; workers in businesses nearby; and those stopping nearby to use neighboring businesses and then “grab a coffee” or a snack before they leave the area again. Hi-Fi Espresso will not be marketing itself as a destination. Rather, it will serve the existing flow of clientele to the area.

Hi-Fi Espresso227 Pacific Coast HighwayHermosa Beach, CA 90254hifiespresso.com

Short Business Narrative

September 9, 2016

http://hifiespresso.com


ATTN: City of Hermosa BeachCommunity Development Department, Planning Commission

Hi-Fi Espresso is seeking determination of a new coffee and retail establishment as a snack shop at 227 Pacific Coast Highway, between 2nd and 3rd Street. Hi-Fi requests that the establishment be classified as a “snack shop” and calculate required parking spaces based on retail standard, due to its proposed use and location. Hi-Fi proposes to serve a full menu of coffee drinks, non-alcoholic beverages such as bottled waters, sodas, and juices, along with an assortment of delicious pastries — pre-prepared off-site — including croissants, cookies, brownies, donuts, and pre-packaged yogurts. The cold beverages will be offered in a small stand-alone refrigerator, where customers can choose themselves and take to the counter to purchase, while the baked goods will be found inside of covered cake plates (i.e. display cases), on top of the L-shaped counter.

Inside the commercial space, Hi-Fi uses an L-shaped counter to separate the employee area from the customer and retail area. Approximately 430 square feet of customer area is in front of the L-shaped counter. Here, the business will provide at least 16 seats (not to exceed 25), 4 tables, and 1 counter by the front (east-facing) window, as noted on the submitted plans. Customers will place and pick up orders at the counter. No wait-staff service will be provided, and the business anticipates wait time for any products from the menu to be less than 5 minutes. Directly across from the L-shaped counter will be a shelving unit displaying a small assortment of fine retail goods, such as bags of coffee beans, coffee ceramics, organic pastry spreads and nut butters, fine fragrances and soaps, specialty candles, cool travel guides, small potted succulent plants, patterned beach towels, and books on design, architecture and surfing. This customer area will provide an ADA-accessible restroom.

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Hi-Fi Espresso227 Pacific Coast HighwayHermosa Beach, CA 90254hifiespresso.com

Business Narrative

September 9, 2016



On top of the L-shaped counter will be an espresso machine. Behind the counter, against the wall, will be a coffee brewer, coffee grinder, espresso grinder, hot water delivery system, urn and server, and toaster oven, used only for the purpose of warming the baked goods pre-made off-site. Underneath the counters will be a small refrigerator, small ice maker, and cabinets for storage. In the open washroom area will be a wash sink opposite a small dishwasher, both used only for the purpose of washing and cleaning coffee mugs, saucers, and small plates.

Outside the commercial space, Hi-Fi intends to provide minimal seating, per Section 17.26.040 of the C-3 general commercial zone. The limited outdoor dining at the rear of the building is to be shared between all four tenants. The request for limited outdoor dining will be processed via a separate application for an Administrative Permit, as required pursuant to Chapter 17.55 of the Hermosa Beach Municipal Code (HBMC), to be approved by the Community Development Department. With this property being zoned Specific Plan Area 7, Hi-Fi specifically requests the ability to provide up to 6 total seats (which includes the 2 seats offered by the pre-existing built-in bench) and 2 small bistro tables on the outdoor (west-facing) back patio. The 4 small patio chairs will be no bigger than 24”x18”. In compliance, Hi-Fi will leave a walkway of 4 feet through the patio space and not only promises to abide by all Standards and Limitations, as outlined in Section 17.26.050(B)(6) of the HBMC, but also promises to share this outdoor space equally with its neighboring commercial tenants. The applicants understand that an approval of the Parking Plan by the Planning Commission is not an approval of limited outdoor dining.

Hi-Fi requests the retail parking standard of one parking space per 250 square feet be applied to the proposed business on the basis that the use will be conducted consistent with the definition of a “snack bar or snack shop” in Section 17.04.050 Commercial Land Use Definitions. Also, the products that Hi-Fi will offer are identified in the definition of snack bar/snack shop and do not constitute a meal. Hi-Fi’s kitchen equipment is limited — it will not require a grease control interceptor nor a kitchen hood — and is therefore not conducive to preparing full meals. Hi-Fi is not providing waiter/waitress table service and will not offer alcoholic beverages.

Given the limited characteristics of the proposed use including its limited service area and lack of seating, Hi-Fi will not result in an intensification of use or create additional parking demand.

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The proposed business hours are 7:00 AM to 5:00 PM Monday through Sunday. Two business owners and two employees will be staffing the business per 5-to-8 hour shifts.

Thank you for your time and consideration. We look forward to serving the “highest fidelity” in both coffee and fine goods to our friends and neighbors in Hermosa Beach, the warm town we have proudly called home since 2005.

Respectfully,

Jeff & Karen PrughOwners, Hi-Fi Espresso

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hifiespresso.com | @hifiespresso !1

BUSINESS PLAN

Hi-Fi Espresso

September 9, 2016

Contact:Jeff Prugh

[email protected]

[email protected]

mailto:[email protected]





http://www.instagram.com/hifiespresso


HI-FI ESPRESSO



EXECUTIVE SUMMARY

The Ownership

The company will be structured as a partnership.

The Management

Husband and wife team, Jeff and Karen Prugh, will co-own the company, Hi-Fi Espresso LLC. A South Bay native, Karen is a professional hairstylist and one-time successful Manhattan Beach salon owner, while longtime resident Jeff is an independent filmmaker of two award-winning feature films, both produced by his production company, Step Off Grandpa. For the last two years, Jeff and Karen lived in New York City, where they also worked part-time in real estate for The Corcoran Group.

The Manifesto

We believe in the positive powers of coffee and design. A quality cup can kickstart a day, ignite the imagination, and inspire creativity. Coffee is our passion. Community is our mission. And coolness is our hope. We are Hi-Fi. Proudly serving the “highest quality fidelity” in coffee. Please enjoy.

The Name

With Karen’s impeccable sense of style stemming from the 1970s and with Jeff’s favorite film being “Boogie Nights”, one catchphrase from that period stands above the rest: “Hi-Fi”. As Don Cheadle’s salesman character humorously tries to explain, “High fidelity. You know what that means? That means this is the highest quality fidelity. Hi-Fi. Those are two very important things to have in a stereo system.”

The Goals and Objectives

Hi-Fi… Those are also two very important things to have in coffee, which is why we aim to bring the highest quality coffee bean to the South Bay. Our very first date was spent with connoisseur Karen introducing Jeff to her love of quality coffee. The only problem? We had to drive into Venice to find it.

Five years on and we find ourselves with the same South Bay void: sure, there are plenty of big chain coffee shops and even smaller coffee houses, but do they serve the best bean from a top roaster? And does any of the interior design inspire discussion and creative thoughts? For us, the answer is no.

And for locals, Hi-Fi Espresso will not only offer the best coffee but also an inspiring place to gather, create and collaborate. Within our colorful “Seventies Surfer” vibe space, you will be sure to meet new people, make new friends, and purchase an assortment of fine goods, gifts and supplies.


HI-FI ESPRESSO

http://www.stepoffgrandpa.com

https://www.youtube.com/watch?v=A6DRZlytJpQ



The Products

Currently, we are leaning towards partnering with an extraordinary and well-respected coffee roaster in Durham, NC, called Counter Culture Coffee. We first fell in love with their brand and product during our time in New York City. Like us, Counter Culture believes in the relentless pursuit of coffee perfection and is dedicated to fair trade as well as environmental, social and fiscal sustainability.

In addition to selling amazing cups of coffee and tea and individual bags of beans, we will also offer delicious pastries prepared off-site, including butter and chocolate croissants, chocolate chip cookies, and donuts. Moreover, we will have Kombucha on tap and a refrigerator full of quality waters, juices, root beers, and organic yogurts.

Furthermore, our shelves will be lined with incredible retail products, including coffee ceramics, Chemex coffeemakers, organic pastry spreads and nut butters, potted succulent plants, patterned beach towels, cool travel guides, surf wax, surf grass, and various books on design, architecture and of course surfing.

The Customer

Our hope is to attract surfers after their morning ride, professionals on their morning commute, creative types with a work deadline, and everyone in between. After all, we offer “Free Hi-Fi” — as our neon window sign will read, and all ages are welcome.

As previously mentioned, South Bay residents are becoming hip to the growing coffee culture trend. More and more people, not just millennials, are working from home and/or from their local coffee bar.

The Marketing Strategy

We plan to advertise in The Beach Reporter, Easy Reader, and South Bay Magazine. But as with most successful startups today, word of mouth and social media are key towards business growth. You can already find us on Twitter and Instagram. Luckily for us, we have years of experience in selling product — Karen in hair, Jeff in film. We will offer incentives, such as buy-nine-get-your-tenth-free punch cards.

The Marketing Analysis

Hermosa Beach possesses a number of coffee shops, such as the big chains of Starbucks, Coffee Bean and Peet’s. Other nearby coffee shops include Gum Tree Cafe, Java Man, The Source Cafe, and Two Guns. While these are great coffee options, we will choose a location well-spaced between our competitors. And we are certain that our fantastic product and strong sense of community are unlike any other in the area. This will set Hi-Fi Espresso apart. We are not a coffee shop. We are an espresso bar. There is a distinct difference in how we approach and serve our product. Coffee aficionados will immediately recognize this difference, and the average coffee drinker will quickly come to cherish it.


HI-FI ESPRESSO



https://counterculturecoffee.com

http://www.twitter.com/hifiespresso


The Hours and Launch

Initially, Hi-Fi Espresso will be open from 7AM to 5PM, seven days a week. We aim to open our doors four to six weeks after moving into the space.

The Staffing

One of us, either Karen or Jeff, will always be on duty in the shop. After all, we love the smell of coffee, we believe strongly in our brand, and we value quality conversation with our customers and neighbors. And who better to sell the passion behind the brand than the owners. At the outset, we will employ two well-trained and highly-skilled baristas to split shifts.

Counter Culture Coffee promises to guide us every step of the way, as we open this, our first location.

The Pricing

In line with most high-end coffee purveyors, our price list will be as follows: Coffee ($2.50), Espresso ($3), Americano ($3) Macchiato ($3.50), Cappuccino ($3.75), Loose Leaf Tea ($3.75), Cold Brew ($4), Cortado ($4), Hot Chocolate ($4), Iced Tea ($4), Latte ($4.50), Matcha Green Tea ($5) Mocha ($5), Affogato ($6). Bags of beans will range in price ($9-18), while the pricing of our various goods will depend upon the product.

The Expenses

In addition to our custom build-out and sparse interior design furnishings, our primary upfront expenses will include: Fetco coffee brewer, Mahlkonig bulk coffee grinder, La Marzocco espresso machine, Mahlkonig espresso grinder, hot water delivery system, and urn and server.

The Plan

We plan to capitalize on our initial investment by slowly expanding our line of quality goods and one-of-a-kind speciality items for sale. But first, our singular focus is on producing and offering the area’s best cup of coffee. With this intention, we are confident that our dedicated client base will steadily grow to a point where beverages and pastries alone will sustain the business.


HI-FI ESPRESSO



The Drink Menu


HI-FI ESPRESSO

COFFEE 2.5

ESPRESSO 3

AMERICANO 3

MACCHIATO 3.5

CAPPUCCINO 3.75

COLD BREW 4

CORTADO 4

HOT CHOCOLATE 4

LATTE 4.5

MATCHA GREEN TEA 5

MOCHA 5

AFFOGATO 6

TEA 3.75

ICED TEA 4




HI-FI ESPRESSO




Thank You! We look

forward to proudly

serving you very soon.

HI-FI ESPRESSO



Short Business Narrative - Granicus

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