Cafe business plan helps the entrepreneur to understand, to visualize, to plan and to identify risks even before making any investments in the business. Preparing a business plan involves detailed research so that all the aspects of the given business is evaluated and appropriate decisions are made. The market for organized café market was estimated around Rs. 65 billion in 2014 and at the annual rate of 15% it is expected to grow to Rs.151 billion by 2020. Among the total organized café market, the chain café business holds around 27% of the share (Rs.18 Billion). Around 40-45% of this market is contributed by the top eight cities.
Geographically, southern part of the country caters to one third of the total market. The dominating market player is Café Coffee Day which holds more than 46% of the market. The major cost involved in starting a chain café are like building or rent expenses, licenses and permit, insurance, marketing and advertisement, salary and wages, working capital for at least one month, furniture and equipment cost, and cost for computers and billing system. The start-up cost will be anywhere between Rs. 15 lakhs to Rs. 50 lakhs in a metro cities.
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All organizations are made up of group of capabilities that are coming from People, Processes and Systems. These capabilities are working together in a seamless manner to deliver the requisite capabilities to the customer. The various capabilities that need to be addressed in a cafe business plan are given below:
People involved in the café business are the Owner or Managing Director, Manager, sales staff, Kitchen staff, Waitress, Housekeeping staff and part time workers for marketing and advertising.
The major processes happens over the café are like taking orders, delivering the orders, providing the customer with adequate information, billing and payment process, product preparation, cleaning and maintaining the ambience, complaints and grievance in cases.
Major systems are like Payment and billing system, Inventory and supply management system, Service, Customer support and Feedback system, Standard procedures, Preparation equipment like Coffee makers, Espresso machine, Coffee grinder, Refrigeration system, freezer, containers, pumps, oven, toaster, cooking devices, ingredients, blenders and security system.
Most of the businesses have professional bodies across the globe and being associated with these organizations tremendously helps in understanding the current trends in business. Some of the professional bodies are listed below for your reference:
Specialty Coffee Association of America Oak Lodge Farm,
Essex, CM3 4HF,
National Coffee Association45 Broadway, Suite 1140, New York, NY 10006
International Coffee Organization 222, Gray's Inn Road, London WC1X 8HB
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