This business plan is developed for opening a new patisserie and cafe in Melbourne CBD for its successful opening, growth and market share of its target audience. This rich and diverse business plan is anticipated to reach out to pastry target market, which are seeking superior product at an affordable price within the business community and general shoppers. The interest by consumers in the coffee house industry is sweeping the city. Puffers are positioned to bring this to the Bundoora area. To date it has been confined to the Central and East areas. Puffers will provide a friendly, comfortable atmosphere where the customer can receive quality food, service and entertainment at a reasonable price. The coffee house will offer a variety of choices to the customers. Coffee and tea of all sorts along with cakes and pastries will be offered. Juice, soda, and non-alcoholic beverages also will be available. It will serve breakfast, lunch and dinner. The interior design of the building will focus on projecting a relaxed atmosphere. Puffers will be divided into different areas.
Some will have tables and chairs; another will have large antique stuffed couches and chairs, end tables, coffee tables, book shelves filled with books and magazines, tiffany style lamps and braided rugs. A PA system will be installed so that the music and entertainment can be heard throughout. A large selection of table games will be provided. There will be nightly entertainment featuring acoustic jazz, blues and folk music. On selected nights there will be poetry readings and an open microphone. The walls will be used as an art gallery and from time to time there will be an artist in residence. The site contains a 4,525 square foot building which was used as a sports bar and restaurant. The building has substantial parking. The area comprising a three mile radius around Puffers is heavily populated with young, upwardly, mobile persons with expendable income. This is complemented by a large number of upper middle class “Baby Boomers” who are a large portion of those persons who frequent coffee houses.
The advertising and promotion will take a number of avenues. First, flyers will be distributed in the neighborhood. Ads will be taken out in all of the local news paper in the area. Since Puffers will be the first union restaurant in the state, ads will be placed in all of the union newsletters. Ads will also be placed in the local neighborhood newsletters. Puffers will be operated as a Sole Proprietorship. The total needed capital for Coffee Circus is $70,900. The amount needed for remodeling is $16000, and $23,000 for operations. This is a total of $31,900.Overall management will be the responsibility of the owner. The owner brings to the business over 10 years of business experience including over five years in Café restaurant management and five years in directing a marketing program. The general manager will have a minimum of 5 to 7 years experience. A major emphasis of Puffers is to hire economically disadvantaged or at-risk persons and provide them with job training.
To provide a friendly, comfortable atmosphere where the customer can receive quality food, service and entertainment at a reasonable price
REASON OF BUSINESS PLAN
This document is intended to outline the start-up of the business known as Puffers Pastry & Café. The business plan has a two-fold mission. One is to obtain financing. The other is to help define the, who, what, where, when and how for the business so that business will have a clear cut plan and operations map.
The goals of the business are to provide a substantial income and to create a business and working environment where both the customer and employee are treated with dignity and respect.
The specific goals of the business are:
Profit – personal income in excess of $50,000 per year within three years. Clientele – create a base clientele of persons who live and work in the area. These persons will like a relaxed atmosphere where they can “hang out”. Employees – Competent employees (at least 51% from low-income neighborhoods) who are committed and loyal
DESCRIPTION OF BUSINESS
Puffers will be a coffee house/restaurant located in the Bundoora Square Plaza. The coffee house will offer a variety of choices to the customers. Coffee and tea of all sorts will be offered. The choices of coffee will range from espresso to latte, from regular flavor to raspberry-mocha. The teas will range from English to flavored varieties. Juice, soda, and non-alcoholic beverages also will be available. The breakfast menu will feature croissants, muffins, bagels, donuts, French pastries, fruit filled crepes, etc. Except for the crepes, the baked goods will be purchased from The Works. Lunch and dinner will feature sandwiches, salads and seven different soups. In hot weather, a variety of cold soups will be offered. In addition, Coffee Circus will feature a vast array of appetizers. These will include artichokes (Both stuffed and served with butter); stuffed mushrooms; mini loaves of bread served with your choice of a bowl of pesto, or green chile, etc. Desserts will consist of cheesecakes (some fat-free), pastries, pies, fresh fruit and cheese.
The interior design of the building will focus on projecting a relaxed atmosphere. The bottom portion of the walls will be forest green with the upper being eggshell white. The carpeting will be forest green. The table and chairs will be custom made from light oak. The chair coverings will be of forest green material and heavily padded for comfort. The table tops will be a marbleized forest green laminate. Plants will abound in gold pots. The dishes and eating utensils will be mismatched and purchased from antique and thrift stores. The coffee cups will be from the forties and fifties era. They will be provided by a local antique business and will be for sale. Puffers will be divided into different areas. An advantage to having different areas is that customers can partake in different activities without bothering anyone (i.e., political discussions will not interfere with the music, or the music will not interfere with those playing board games or reading).The emphasis will be on providing a comfortable environment for the customer where they will want to linger and return many times.
ADVANTAGES AND STRENGTHS
The time is right for opening a coffee house in the Bundoora. Coffee houses are having a great deal of success, which is evidenced by the full houses every day of the week. The Bundoora Square has no such places. The closest competition is the Coffee Club located at Mill Park and Thomas Town. In order to reach a coffee house, a customer from our area must drive 20 to 25 minutes. The majority of these establishments are located on the East side of town. A few are beginning to open in the downtown area. The area comprising a three mile radius around Puffers is heavily populated with young, upwardly, mobile persons with expendable income. This is complimented by a large number of upper middle class “Baby Boomers” who are a large portion of those persons who frequent coffee houses. An additional strength which this business will possess is the ability to change with the times. Rather than limiting the future opportunities by having a small area, Puffers will have 4,525 square feet of space. The kitchen will be designed for flexibility. As the fad of coffee fades, Puffers will be able to change to a full course restaurant or whatever the situation calls for. The business will bring with it a strong group of persons with an extensive
background in both restaurants and business.
CRITICAL RISKS AND PROBLEMS
There are risks inherent with any business. However, the restaurant business carries with it very unique risks. Most critical is the customers’ changing tastes. Another is the economy. Restaurants rely heavily on serving persons who have expendable income. When the economy takes a down turn, people change their spending priorities. There are fewer trips to restaurants. A problem also in restaurants is finding dependable help who will stay with the business. Many restaurant employees tend to be younger and are attempting to move into a career. When either their schooling ends or they find their “dream job,” they move on. Often servers filling the positions are non-skilled, and tend to be single mothers or lower educated persons. These persons come with specific circumstances which must be accounted for by management. A single mother may experience child-care problems, or a bus person may have problems with reading. A good owner must learn to deal with these problems in a manner which benefits the business as well as the employee.
Generate monthly sales revenues of $85,000 per month of 4% of the target market within 1.5 years of opening. Objectives
Maintain a high standard of food quality and service Provide first-rate live entertainment without a cover charge Ensure a friendly comfortable atmosphere Place monthly ads in neighborhood publications Distribute monthly fliers to neighborhood, businesses and churches Offer discount coupons Maintain and use a customer mailing list Target Customer. The customer will be between 18 to 55 years old. The income level is between $180,000 and $90,000 per year. They will live within three miles of Puffers. They will be white collar workers (managers, professionals, etc.) with expendable income. The education level will range from some college to post-graduate work. A limited number (12%) will come from other areas. This 12% will generally be persons who are coming to see a particular entertainer or poetry reading. A majority of the customers will be persons who enjoy a relaxing atmosphere, conversation and table games.
Estimated Market Share and Sales
Based on the customer profile for Puffers the following numbers were compiled. The report used was prepared by Ray White Estate using information obtained through the Facts Report. The report was prepared using Puffers as the focal point and delineating numbers by a one, three and five mile radius. For purposes of determining market share for Puffers, a four km radius was used. National statistics show that most persons do not travel more than four km to eat or to listen to entertainment.
Promotion & Advertising
The advertising and promotion will take a number of avenues. First, flyers will be distributed in the neighborhood. These ads will offer 10% off, if the parishioner brings the bulletin with them. Special events will be promoted with a portion of the proceeds going to the school. Since Puffers will be the first union restaurant in the state, ads will be placed in all of the union newsletters offering a 10% discount to anyone showing their union card. Ads will also be placed in the target areas of the area grocery shops, and the local neighborhood newsletters. For special entertainment nights, radio and newspaper ads will be placed. Entertainment and food critics will be given an invitation. On opening night we will have an invitation only party, with over 1000 invitations being sent. For businesses in the area, menus will be distributed and ordering will be available by fax. A customer mailing list will be developed with a calendar of events being mailed on a monthly basis. Sales Tactics
Servers will always ask the customer if they want added items, i.e. specialty coffee, soup with the sandwich, appetizers, and dessert. This will not only increase sales for the business but will also increase the amount of money the server makes. Most people tip according to a percentage of the check. All tables also will have “table tents” or advertisements. The tents will describe upcoming events. Also, pictures and descriptions of items for sale, such as micro-brewed beers, desserts, etc., will be on the tents. The menus will provide detailed descriptions of the items available, including a section describing the different types of beers available. Service/Warranty
If the customer has a complaint, everything will be done to satisfy them. If that does not work, the customer will be given their meal free of charge. COMPETITION
Buzz Cafe – Southeast corner of Gibbs and Center road. It provides home style cooking. The restaurant caters to families who want to eat and leave. No live entertainment is provided. Their prices are moderate with little or no variation. They are known for good quality food and service. Buzz is very clean and well managed. They have become successful due to location and reputation.
Crispy Burgers – Long Street
It’s a well-known fast food franchise with a good presence and marketing plan. The food and prices are about the same as their competition. There is no product comparison.
Delight Inn – Tarakan Street
They serve Mexico City style food. The atmosphere is upscale and the food pricing is moderately high. The food is highly specialized and caters to a certain type of clientele. There is no comparison. Bakers Delight – Bridge Road
In 1980 Bakers Delight was founded by fourth generation baker and current CEOs Roger and Lesley Gillespie, together with Gary Stephenson. The first bakery was in Hawthorn. In 1988 the Gillespies owned 15 bakeries; quietly confident about their proven formula, they began to franchise these bakeries and by 1991, grew to 43 bakeries. In the next two years, Bakers Delight expanded to 200 bakeries and just ten years later, 600. Today there are over 700 bakeries across three countries.
Keep cost of goods sold at or below 30%. Provide customers with prompt and courteous service.
Provide initial training for all employees
Hold monthly employee meetings
Have an open door policy for employee suggestions and concerns Implement the use of the Business Plan systems
Have clearly defined job descriptions and duties
Have an employee policy handbook
Do employee reviews every six months
Customer suggestion box
Design kitchen and service area to be efficient
The product will be distributed in the restaurant by food servers. The food will be cooked on site, except for some of the baked goods. Some of these, such as croissants will be purchased in the raw frozen form and baked daily. When a customer enters Puffers 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. If the drink is soft drink, juice or coffee, that will be prepared by the bartender. The drink order will be given to the bartender on a written check, which will be rung up on the register. If the server fixed the drink, it will be rung up on the register 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 server will prepare the salads, desserts, hot and cold soups and other items. The cook places the finished food on the window. 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 ask if the customer needs another drink. Specialty drinks are not refill items. Non-specialty drinks are free refills. The server will familiarize the customer with the operations of Coffee Circus. 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 customer will always be asked if they would like dessert or an after dinner coffee. 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. Condiments must be kept full and the containers clean. The server is responsible for presenting the check, payment of the check and returning a receipt to the customer. The cook is responsible for cooking and preparing all dishes not prepared by the server. The orders will appear on the computer monitor and the cook will prepare them according to the order given. The cook and their assistants are responsible for preparing all items in the morning such as the soups for the day, slicing meat, making specialty items and other dishes for the day. The assistant cooks are responsible for the prep work of all items for the servers and the cooks. This includes stocking all supplies, cutting cheese, fruit, salad items, ice, filling soup tureens, etc. 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. This work will be checked by the shift supervisor. The cooking area will be maintained in a clean and sanitary manner. All areas will routinely be wiped down and swept. The cooks and assistants will also have side work which must be completed before leaving.
The dishwasher is responsible for keeping the dishes washed and helping with busing the tables if needed. The dishwasher is responsible for mopping the kitchen floor. All employees must read and be knowledgeable of health regulations and follow those rules. Training will be provided by Coffee Circus. Hands must be washed on a routine basis. Smoking is allowed only in designated areas. No smoking is allowed in any food preparation area. The servers will be required to present a clean appearance. Uniform consisting of an eggshell Sky Blue polo shirt with Puffers logo, Black walking shorts or long pants, black sneakers and black ankle socks. 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 to discriminate by remarks, actions or jokes.
The cash register system will be Quick 3000 Touch screen. The built-in system software prints hard or soft guest checks, uses single or multiple remote printers, and reports and tracks data terminal to terminal, or throughout the network. Employee/cashier balance reports
Employee tip reports
Open and closed check reports
Time period sales analysis
Detailed or summarized menu item sales analysis
Detailed or summarized sales group and category analysis
The food price will be in the moderate range and comparable to other coffee houses in the area. The cost will be determined by not only what the going rate in the area is but also by the percentage of actual cost of the food. The price will not only be competitive, but the food will be tasty, well presented, and large portions will be served in a relaxing atmosphere where the customer will be comfortable. The image projected by the pricing will be that the customer will be getting a fair value for their money; that they do not need to be rich to eat at Puffers and anyone can afford to come in. They will be able to use the books and games. In the evening, they will be able to listen to the live entertainment. During the day, music will be played over the PA. Credit terms will be offered only in the form of credit card service, such as Visa, MasterCard and Discover. Many people who eat out prefer to pay with credit cards, whether it is to keep track of expenditures or for a work expense account. The cost of the food will be based on a set percentage. Restaurants traditionally keep food costs around 26% to 32%.
The suppliers have all been in business for a number of years and have dependable reputations.
T he Food Works
They will supply all of the bread products such as croissants, loaves of bread, pastries, etc. The Food Works is a major supplier to restaurants in the area.
Boom Pie Company
Since 1977, Boom Pie Company has been creating a quality line of dessert products satisfying even the most discerning palate. One of their best known customers is The 7 Eleven. They will supply the cheesecakes.
Arabica Coffee Roasters
This family owned and operated company has been roasting coffee for almost a decade. They will supply all of the coffee, teas, and equipment. They also provide ongoing barista training for all Coffee Circus employees at no cost.
Business Solutions Systems
Provide the Purveyor system. For 25 years, they have provided operational solutions to the hospitality industry. Their specialized focus on restaurants, hotels and bars has made them one of the largest dealers of Quick systems in the country.
Logos will provide the outside signage.
Dirt Out will lease the dishwashing system to Puffers. The lease includes all servicing, parts, labor, and chemicals. There is never an added charge. Dirt Out builds guarantees and services its dishwashers. They provide regular and emergency service whenever you need it. Sky Line
Sky Line has been in business for four years doing tenant improvements and design coordination. Clients include, Tasmania Restaurants, Red Bank and St. John’s Boats. In Line is versed in all areas of restaurant permitting, design and regulations.
Have a competent and knowledgeable management staff which functions as a team.
Hire experienced, qualified persons
Conduct weekly management meetings
Ongoing training to include outside classes in food service and management
Reviews every six months
Puffers will be operated as a Sole Proprietorship. There will be private investors. However, these investors will be silent investors with a payoff of investment within three years. These investments will be paid twice-yearly in equal installments including interest. Overall management will be the responsibility of the owner. There will be a general manager and shift supervisors.
As owner, Travis Morgan brings to Puffers an extensive and varied background. He has been General Manager for two restaurants and has been the Dining Room Captain for a major private club. His most recent experience was with a non-profit agency. He was responsible for overseeing three housing programs for the agency and a staff of six persons. He is competent in all areas regarding regulations for the above mentioned organizations, and other government programs. General Manager
This position has not been filled. The requirements of the position require 10 years experience in restaurants, at least five of those years in some type of supervisory position. A bachelor’s degree in hotel and restaurant management is preferable. The candidate for this position will be required to submit a resume and verifiable references. The candidate will be interviewed and hired by the proprietor.
The general manager will report directly to the owner. They will be responsible for the overall management of the staff. They will work in conjunction with the owner in ordering supplies, maintaining inventory, handling customer complaints and scheduling staff. Other duties would include ensuring staff coverage for all shifts and reports to the owner.
One must have five years experience in restaurant work. At least three years as a server. They must be at least 21 years old. They must possess a friendly and outgoing personality and have good personal hygiene. The candidate for this position will be required to submit a resume and applications. The candidate will be interviewed and hired by the proprietor and general manager.
They will be responsible for the oversight of the servers, bus person and hostess on their shift. They will work under the general manager. The shift supervisor also works in the capacity of a server and is responsible for waiting on tables, taking the customers’ food and drink orders and acting as cashier for their customers. They are responsible for helping to keep the serving area and the customer areas clean and sanitary. They are responsible for helping the assistant cook keep the service area stocked. At the end of their shift, they will be required to complete all side work as assigned.
The cooks must have a minimum of five years experience, three of which must be as a cook not an assistant. They must have at a minimum a GED or high school diploma. The cook will submit a resume and fill out an application. They will be interviewed and hired by the owner and general manager.
The cook is responsible for cooking food served in the restaurant. They also are responsible for preparing food items in advance and seeing that the service area is kept stocked. Their responsibility is to see that the kitchen is kept in a clean, sanitary and working order. They oversee and train the assistant cook.
The servers must have at a minimum a University Student or be attending school or a training program and one year’s experience working in a restaurant. They must be at least 21 years of age. They must possess a friendly and outgoing personality and have good personal hygiene. They will be required to submit an application. Will be interviewed and hired by the shift supervisor, general manager and owner.
The server is responsible for waiting on tables, taking the customers’ food and drink orders and acting as cashier for their customers. They are responsible for helping to keep the serving area and the customer areas clean and sanitary. They are responsible for helping the assistant cook keep the service area stocked. At the end of their shift, they will be required to complete all side work as assigned.
The hostess must have at a minimum a GED or be attended school or a training program. She must be at least 18 years of age and must possess a friendly and outgoing personality and have good personal hygiene. Will be interviewed and hired by the shift supervisor, general manager and owner.
The hostess is responsible for greeting customers as they arrive at the restaurant and seating them. She is required to take reservations and answer the phones. If available assist he server. Duties include keeping the lobby area clean.
The bus person must be attending school or a training program, must be at least 16 years of age and have good personal hygiene. Will be required to submit an application. Will be interviewed and hired by the shift supervisor, general manager and owner. Job Description
The bus person is responsible for keeping dirty dishes off the tables. When customers leave they must clean the table and prepare it for future customers. They are to help the servers with getting non-alcoholic drinks. They also are responsible for helping the servers. They are responsible for helping the assistant cook keep the service area stocked. At the end of their shift, they will be required to complete all side work as assigned.