Business Plan for Opening a Coffee Shop free essay sample

In order to ensure the profit, market research is necessarily. Second, owner should choose the suitable decoration. Decoration of a coffee shop does not have luxury, but not too simple. Too luxurious is often prohibitive for some people who want to step in, even your stores price is very cheap, the guests did not know, just a decoration put guests stopped at the door. Too simple decoration will make guests feel very uncomfortable in your store. A good coffee shop is a focus on the environment and style of the place, inappropriate, make you lose a large number of customers. In fact, the style of the cafe is warm and comfortable style that everyone can accept and meet the needs of most customers, but also in the cost of renovation is not high, this is the last choice. The third is to keep the quality of the product. In our daily life, we always hear others talk about which food is good or bad that decided consumers will consume it or not. We will write a custom essay sample on Business Plan for Opening a Coffee Shop or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Also, the shop will get a good comment from consumers and highly recommend others to consume. This is the real case happened in our live. It truly affect the indicate of product quality is critical and would like to retain the customer is necessary to work hard in this regard. A good quality is a prerequisite for the shop. Fourth, the service must be superior. The quality of the service quality has a direct impact on the business of your store. In fact, who are willing to go to a poor service cafe where consumption? Therefore, the good quality and service are the elements which cannot be lack of. Market segmentation: 1: geographic: the sources of coffee come from the European countries and spread to the others western countries rapidly. From the historical, the demand for the coffee is large in the western instead of the east. Also, with the unbalanced development between the urban and countryside, people who live in the urban had more capital to pursue luxury life style. Therefore, it has a larger coffee market in the city than countryside. Moreover, the population density determined the market. The higher population density, the higher demand for coffee. 2: the age distribution in the need of coffee The coffee has a refreshing effect, this is an indispensable beverage for office workers working overtime. According to the survey questionnaire, what occupation people will choose the Nescafe the results displayed as: (see below) Nowadays, there are many coffee brands in the market. Chinese still do not have a precise definition about the vague concept in peoples consciousness. In which a large number of coffee consumers, the vast majority of people do not understand the coffee. However, people tend to go to a coffee shop consumption goal is not to coffee, because of work, shop environment and so on. Some people have predicted: China will become the next five years, the worlds largest coffee market. The unique monomer coffee shop could be found in China. Compare with large chain of coffee shops, the single shops have different style, it attracted a large number of fans. What is the business advantage s? In China, coffee market occupied a top leading position. Such customers vary in age. These are discerning customers that gravitate towards better tasting coffee. Furthermore, a lot of college students consider coffee bars to be a convenient studying or meeting location, where they can read or meet with peers without the necessity to pay cover charges. For us, this will provide a unique possibility for building a loyal client. The clear market segmentation helps to consolidate existing market positions. Market segmentation take full advantage of the different needs of all types of consumers, and marketing activities accordingly, you can better meet consumer needs, but also stability of the companys existing markets. Also, it helps to create a new market. Passing the market segmentation, cafe, owner, can understand the demand in the market and consumer satisfaction and competitive conditions However, this period of coffee industry, has coffee shops by the fragmented nature of the individual early changes in large-scale operation of coffee chain stores. Not only the large brand but also self-employee, use of their advantages in capital, personnel, management, and retail chain experience to expand the coffee supply chain, in order to enhance the overall quality and service quality of the coffee market, while also potentially stimulate the coffee market, makes coffee drinking population growth. SWOT Strengths Strong brand value draws customers to McDonalds restaurants McDonalds continues to be recognized as a premier franchising company around the world. McDonalds has a well-established brand that appeals to customers of all age groups and nationalities. It is one of the worlds most well-known and valuable brands and holds a leading share in the globally branded quick service restaurant segment. \ Large scale of operation and product customization With revenue in excess of $22,700 million, McDonalds has large scale of operation. The company is the worlds largest food service retailing chain, preparing and serving a wide range of food products. The company operates its restaurants in more than 100 countries around the world. McDonalds generates revenues through company operated restaurants and franchisee restaurants. Of total 32,478 McDonalds restaurants, over 6,200 are operated by the company and over 26,000 are operated by franchisees and affiliates. The company as a part of restaurant development strategy, selectively picks locations within the marketplace to expand its target audience. For example, the company operates restaurants in local neighborhoods as well as at airports, malls, toll ways, and colleges. Also, the company customizes its product to suit tastes and preference of consumers in local markets. For example, the company’s product line in India comprise of non-beef based burgers. The companys large scale of operation and ability to customize its products allows it to penetrate upcoming markets with relative ease and enhances its revenue generation capacity. Weaknesses Legal proceedings affect brand image adversely McDonalds is party to several litigations across the world. The complaints filed against McDonalds include claims for violation of state consumer fraud acts, unfair competition or deceptive trade practices acts, strict liability, failure to warn, negligence, breach of express and implied warranties, fraud and fraudulent concealment, negligent misrepresentation and concealment, unjust enrichment, and false advertising. Such claims tend to affect the company’s brand image and ultimately its profitability. Product failures such as Arch Deluxe McDonald’s has had a number of product failures in recent years, few of which include Arch Deluxe, McLibel, McLean Deluxe, McSoup and McPizza. However, the failure of Arch Deluxe was a major setback for the company as the product was marketed as the burger for grown up consumer, and the idea was to have a burger which wasn’t associated with children. McDonald’s also advertised the product with images of kids shunning the so called sophisticated product. However, the company has built its reputation and value proposition on convenience rather than sophistication. Moreover, one of the key aspects of the company’s brand identity is its child-friendly approach. Hence, the company launched a product which was in complete contrast to its brand identity. Hence, such kind of product failures could hamper McDonald’s brand image and ultimately its profitability. Opportunities Growing hot drinks market—another favorable trend to drive topline As part of its multi-year strategy to take advantage of the significant and growing hot drinks category, McDonalds began rolling-out espresso-based hot and cold specialty coffees. In FY2009, the company added about 290 McCafes—an upscale area with coffeehouse style ambiance inside an existing McDonald’s restaurant. The expected growth in hot drinks category will offer the company opportunities for expanding its revenue base. Globalization—enhance the market structure After join in WTO, China step into a golden period in the development of economies. Mainland will take the active role in the global market. In 2010, china’s productivities level had get closer to the America and Japan who first enter the fast food industries. At the same time, the purchasing power is increasing in China which provide a favor condition to the development of McDonald. Threats Consumer spending adversely impacted by global economic downturn As a retailer dependent upon consumer discretionary spending, McDonalds will face a challenging FY2010. All major western including the US, the UK, Germany, France, Italy, Spain, Japan and Australia are still reeling under the affect of recession. The global economic downturn has led to a severe decline in consumer confidence. Consumers also have less money for discretionary purchases as a result of job losses, foreclosures, bankruptcies and reduced access to credit. A decrease in consumer confidence and the resultant curbed consumer spending would result in decreases in customer traffic and average value per transaction. McDonalds business is highly sensitive to changes in customer traffic, and the current economic downturn would put downward pressure on the companys margins.