Business Plan Assignment: Proposal For We Meet Café

Question

Task: For this business plan assignment,
youarerequiredtodevelopabusinessmodelforyouridea.The output should be a full professional plan and contain informationon all aspects of the proposed business.In your written proposal, you should ensure that all theinformation is fully supported by primary research or from secondary sources such as Mintel,Keynote,UK census dataas wellasacademic sources.

Answer

Introduction to Business Plan Assignment
The sudden outbreak of the pandemic has created stress in the restaurant business. It has increased the need of adopting advanced technologies. It has been productive in developing strong ideologies that the measures to improve the technical aspects can develop a promising business environment for the café business. In a similar context, We Meet is planning to start their café business in the busiest part of London, Oxford Street. The report is the business plan for the We Meet café, and thus the evaluation of its strategies is done to depict its successful marketing measures in the condition of the tough market of UK.

Business details
Customer’s needs: The café is designed in a very vibrant manner that is attracting both the youth as well as the elderly population. It is productive in providing satisfaction by fetching peace to the customers willing to spend quality time without any kind of external interference.

Problems solved by the service:The business is an innovative cafe with the proper updated technological uses. The threats of being physically touched are zero. The entire services are done by well-programmed AI technologies. The café is serving light snacks with fresh drinks. In recent times the pandemic has reduced the productivity of the café business. The We Meet café will be one of the most welcoming cafés with a zero-touch policy. The QR code on each table will allow the customers to have access to the digital menu. The robots will serve the foods to the customers and there will be no human contact. The use of the AI will be done and the innovation will be the sole priority of the business acting as competitive advantages.

Working mechanism: It has been at the same time effective in producing special discount to the prime customers. The customers will be allowed to pay for their food instantly from their phones. The proper partition of each of the sitting cabinets will be done. This will be productive in developing better safety measures. Key features: The automated sanitization will be done after each guest moves out of the café. This is an innovative idea that has the potential to attract a wide number of customers.

Macro-Environmental overview (PESTEL)

The above table has been effective in demonstrating the level of productivity of the We Meet café. It has been productive in fetching the idea that although the political and economical condition is not stable in recent times due to the pandemic situation, it is although having promising futures for the café business. The technologies in the café are sure to promote its USP and thusattractcustomers from the widerculturalgroup. The business also attracts the elderly population, which are the added advantages as 18% of the populationis from the elder age group. It has been at the same time evaluated that the technologies are easily adopted and accessed by the people in London as it is demoted to bethe hub of technologies. The café, with the use of the proper legal measures, will satisfy the customers with the services of delicious food in a safe environment. The close inspection of the external market condition prevailing in the UK has been productive in fetching the measures that the WE Meet Café is sure to make a huge impact in the restaurant business and thus set an example for the other companies about the use of technologies in dealing with the serious situation like a pandemic in the future as well.

Market & Industry analysis
Customer needs:The needs of the customers of spending quality time with their loved ones in a safe environment without fear of getting contaminated with viruses will be solved with the execution of this café plan. It will ensure that the customers are able to refresh them self in a good ambience and thus feel safe at the same time.

Segmentation
Geographical: All the customers within the geographicalterritory of the London will be taken into consideration for the café business of We Meet.

Demographic: The age specifications are not done. However, the cafe will be targeting both the youth as well as the elderly population for their services. Behavioural: The customers willing to spendquality times having delicious food in good ambiences will be targeted.

Psychological: The café is willing to serve the customers havingan interest in innovation and appreciated the good café environment.

Positioning

Figure 1: Business Positioning

The business of We Meet will be positioning its business under the high-quality, low process. This initiative is done so that the business is able to attract customers from the middle-income group as well. It has been effective in fetching the idea that the business is able to deal with the wider customers with this innovation.

Targeting
The We Meet café will be focusing on the people residing near the Oxford street London, both male and females, within the age group of 15 to 75 years.

Characteristic of industry
The restaurant industry is the growing business sector in the UK and possessing fragmented nature. It is productive in contributing around 4% to the country’s GDP.In recent times, the companies within this recent have faced issues as it has been categorized under non-essential commodity (Statista.com, 2021). It has been effective in developing better working measures and thus ensures that the technology advanced that We Meet willing to impose determined to be effective in fetching better business excitingprospect, and the company can enhance the customer base by providing them with essential safety. The café business like Mustard Cafe, Kaffeine will be the main competing business for We Meet in the competitive business environment.

Competitor analysis
Mustard Cafe, Kaffeine, Kintan Japanese BBQ, Tongue & Brisket, Oxford Street fafafel stall and many more are the main competition companies in the Oxford Street that are the selected location for the new business We Meet. It has been effective in developing the idea that the competing companies are operating for a longer duration and are having a strong hold on the targetedcustomers (Douglas et al., 2018). The USP of the café is within its pricing strategy that is price bundling that is unique from the existing cafes in the area. The existences of loyalty among the customers exist which is the weakness of the proposed business. It isessential for the companies to ensure that the business is able todealwith the strategic measures and thus ensure that the new entrance can be productive in attracting customer’s attention and thus gain profitability in the UK market as it. On averages the 95 million cups of coffee is consumed in UK every day which will be an advantages for We Meet (Nanda Dwipamurtiet al., 2018). It has been effective in fetching the idea that the business with the proper technological measures is sure to fetch prosperity in the competing market and gain its profitability to a great extend serving as its strength. The cafe is promising in addressing the drawbacks of the existing cafés and thus is productive in fetching a better working attributes.

Marketing and Pricing Strategies
We Meet Café will position itself as a unique coffee bar where the patrons can feel safe amidst Covid-19 situation as the seating structure has altered the seating arrangement and use of QR codes to scan and place order for the menu (Cibro and Hudrasyah, 2017). This shall help the café to build up the client base as well as We Meet Café will built up some marketing strategic banners and leaflets during the launch of the café. The café shall engage into online marketing in the platforms like Facebook, Twitter, Snapchat and Instagram (Zelinová, 2019).

We Meet Café shall be using the price bundling as its pricing strategy which is one of the popular pricing strategy in the cafes that bundles food item with a drinks together (Nanda Dwipamurtiet al., 2018). For instance, a large cappuccino or any hot beverages is £3 and sandwich is £5. However, pricing bundling pricing strategy offers a combo offer for £7 instead of £8. Customers find this as a bargain and this shall help We Meet Café to increase its sales turnover.

Operational Plan
Premises:We Meet Café will be located on the ground floor of the commercial building in the Oxford Street of London. The café has entered into a one-year lease to vacant 2500 square feet premises. The floor plan includes a 2300 square feet coffee bar and 200 square feet back office. There shall be a seating area of 50 people at one time with 15 tables, kitchen, pantry and two restrooms.

Services:We Meet Café shall serve both types of beverages that is hot and cold in the form of coffee, juice, milkshakes and many more. From the food item section, all-day breakfast shall be available with sandwiches, cookies, cakes, puff and light munching foods. To deliver these kinds of foods, coffee machine, coffee maker, sandwich maker, microwave oven, dishwasher, blenders are required.

Transport Links:The property is located in the posh location of the Oxford Street that is the hub of the commercial area as well as educational campuses like UKCBC Oxford Street Campus, The Oxford & Cambridge Group and many more with busy downtown business area. We Meet Café coffee bar is an open area consisting of clean, sophisticated and modern interior design with wooden décor that conveys a message about the high-quality cold and hot beverages and snacks offered to its customers (Jeong and Lee, 2019). There are plenty of bus route that head towards Oxford Street of London and therefore, it is one of the convenient location for the customers to hope into We Meet Café.

Legal Requirements:We Meet Café need to meet the adequate procedure of The Food Safety (General Food Hygiene) Regulations. Under the Food Standards Agency (FSA), We Meet Café needs to register themselves to be aware of the food hygiene and health and safety regulations.

Suppliers:Among the suppliers, Iron & Fire Specialty Coffee Roaster shall be one of the top suppliers for We Meet Café to supply fresh roasted and finest quality coffee bean. The crockeries shall be supplied to We Meet Café by Pattersons Catering Supplies. The fresh pantry like fruits and vegetables shall be procured from the local vendors by the café.

SWOT Analysis

Source of Funding
There is two major source of funding for We Meet Café which are owned investment and bank loans. The owners have contributed £140000. The remaining £30000 shall be required to meet the start-up expenses and assets from two bank loans- short-term worth of £10000 and long-term loan for 5 years as £20000.

Break-even point analysis
Break-even analysis for We Meet Café shows the expected revenue that is required by the café to cover both its fixed and variable costs.

Average revenue per unit = £20
Average variable cost per unit = £5
Expected fixed cost monthly = £3600
Therefore, required sales unit to break-even is 2400
Monthly revenue required to break-even is £48000

f. Pro-forma Profit and Loss Statement
Projected Profit and Loss Statement

g. Pro-forma Balance Sheet
Projected Balance Sheet

h. Pro-forma Cash Flow Statement
Projected Cash Flow Statement

Conclusion
It can be concluded that We Meet café shall be a profitable, attractive and new conceptualized café planned to be commence its operations in the bust streets of Oxford Street in London. The café will be innovative with all the latest technology including in its operational activities. The USP of the café is the zero touch to maintain social distancing norms in the pandemic situation. Due to this, the start-up loss to be incurred by We Meet café £27680. We Meet café will make its presence in the online platform and shall start with both dine-in and takeaway facilities to reduce the crowd as much as possible.

Reference list
Cibro, Y.E.B. and Hudrasyah, H., 2017. Factors that influence customer’s intentions to revisit café: Case study of Siete Café in Bandung. Journal of Business and Management, 6(2), pp.284-300.

Douglas, J., Douglas, A., Cano, M. and Moyes, D., 2018.Investigating the success of Independent Coffee Shops and Cafes in the UK: Findings from a Pilot Study.In proceedings of the 21st Excellence in Services International Conference, Paris.

Jeong, M.J. and Lee, M., 2020. Improvement Plan for Safety Management System related to Kids Cafe. International Journal of Advanced Culture Technology, 8(4), pp.183-188.

Kang, C.R. and Joo, S.K., 2020. Internet cafe and karaoke could be a hotbed for explosive spreading of COVID-19 into community. Public Health Affairs, 4(1), p.e10.

Legislation.gov.uk (2021), Data Protection ActAvailable at 2010https://www.legislation.gov.uk/ukpga/2018/12/contents/enacted[Accessed on 19.5.2021] Nanda Dwipamurti, I., Mawardi, M.K. and Nuralam, I.P., 2018. The Effect of Green Marketing on Brand Image and Purchase Decision (Study on Consumer of Starbucks Café Ubud, Gianyar Bali). JurnalAdministrasiBisnis, 61(3), pp.57-64.

Ons.gov.uk (2021), GDP rateAvailable at https://www.ons.gov.uk/economy/grossdomesticproductgdp[Accessed on 19.5.2021]

Statista.com (2021), Restaurant business Available at https://www.statista.com/topics/3131/restaurant-industry-in-the-united-kingdom-uk/ [Accessed on 19.5.2021]

Tradingeconomics.com (2021), FDI rate in UKAvailable at https://tradingeconomics.com/united-kingdom/foreign-direct-investment#:~:text=Foreign%20Direct%20Investment%20in%20the%20United%20Kingdom% 20averaged%2012571.24%20GBP,the%20second%20quarter%20of%202009. [Accessed on 19.5.2021]

Worldometers.info (2021), Population in UKAvailable at https://www.worldometers.info/world-population/uk-population/[Accessed on 19.5.2021] Zelinová, S., 2019.A Business Plan for the Cafe Pet Friend.