HWT’s café business plan
BUSINESS PLAN OF HWT’S CAFÉ
BUSINESS PROFILE
I. Business name
The business trades under a name of “HWT’s cafe”, it will be registered with the Local Consumer Protection Authority.
II. Ownership structure
The HWT’s café will be sole proprietorship owned by Herry Tan. Herry tan will also manage the café and will be solely responsible for financial and employee management.
III. Business objectives
The key objectives for the business for the next three years are summarized as follows:
Year 1 / Year 2 / Year3Sales / $200000 / $205000 / $210000
Gross Profit margin / 60% / 60% / 60%
Personnel
Labour cost % / 20% / 20% / 20%
Number of Staff / 3 / 3 / 3
Financial
Net Profit / $50000 / $51000 / $52000
Net cash flow / $26000 / $27000 / $28000
IV. Mission statement
The HWT’s café will serve a basic Australian-style breakfast and lunch, with an emphasis on healthy, tasty food. Low-fat recipes will be used whenever possible in such a way as not to sacrifice taste or appeal. Menu items for breakfast will range from $4-$10. Lunch items will range from $8-$20. Daily soups and specials will be offered. Hours of operation will be 6.30 a.m.-4p.m., 7 days a week.
Herry Tan will be head cook, and additional staff will consist of a part-time back-up cook and two waitresses. During slow times, only one waitress will used. Experienced staff has already been located.
V. Location and layout
The HWT’s café will be located at 166 lygon street, Carlton, VIC, and will seat 20 patrons at a time. The rent is $600 a month, with a five year lease available. The site consists of a dining room, 20×20 square feet, a kitchen, 15×15 square feet, two bathrooms, and a storage room in back. To be used as a restaurant, this storefront needs to be plumbed and wired appropriately. Painting, new floors, and countertops are also needed. Due to materials bought on sale and volunteer labor, the cost of renovate will be $5000. The kitchen will be equipped with a commercial stove, refrigerator, freezer, walk-in-cooler, oven, microwave, and small commercial dishwasher.
VI. Products and services
u Baked goods and dishes include:
l Gourmet Pastries:
Danish Twist
Pinwheel
Bow Tie
Cheese Danish
Miniature Danish
l Muffins:
Reduced Fat Muffin, Blue Berry, Banana, Apple and Banana Nut
l Coffees and Beverages
Smoothies - Short and long black standard espresso
Latte – espresso
Cappuccino – a shot of espresso with densely frothed milk poured into it and dusted with chocolate powder.
Macchiato – espresso with a dash of milk added.
Flat white – just a no-nonsense milky coffee – espresso with hot milk
Mocha-espresso, hot chocolate and steamed milk served in a glass.
l Several dishes for lunch
u Services
What makes us different?
Combining the high demand for fast quality coffee and pastry on the go with delivery service for those with no time to wait in line.
Age old methods of pastry and candy making showcased in sensational fashion in our upscale HWT’s café.
VII. Competitive advantage
The HWT’s café will offer a fresh point of view on Lygon Street. It is having a more exposed and accessible business location. Opening earlier than competitors and providing friendlier and faster customer service than competitors. The menu will change frequently, the price will be very reasonable, the service will be good, and the food will be the best. The restrooms will be clean.
MARKETING
I. Situation Analysis
Eating out is a growing trend. Since people are increasingly pressed for time and enjoy this convenience. Breakfast and lunch are popular, as workers and business owners often choose not to “brown bag” meals. Choosing healthy, low-fat food is a concern, but studies have shown that people are ambivalent about it and continue to choose high-fat foods. The menu will address this by preparing favorites in such a way that people won’t realize that much of the unhealthy fat has been removed.
The HWT’s café will serve several customer groups. There are detailed as follows:
l Business owners & workers – During the week, more than thousand of people work on Lygon Street. Most of them work early in the morning, so the café will open at 6.30. This group includes managers, factory employees, retail clerks, professionals, tradesmen, laborers, and other food service workers. This group will form the base clientele, as many will be repeat customers. A number of tradesmen who have promised to patronize the café everyday. Fast, accurate service will be provided, as these customers often have limited time to eat.
l Local residents – Many local residents come to Lygon Street to shop on the weekend. During the week those locals who have a day off, are elderly, or don’t work for whatever reason will be customers. Breakfast out on weekends is a local tradition, and lunch will be popular with hungry shoppers.
l Tourists – Lygon Street receives thousands of visitors a year. Most of them come in the summer and fall seasons. The tourist trade will nicely round out the sales, which will firmly rest upon the local base. Brochures from lodging establishments and attractions will be displayed in the café, along with maps and other information. The HWT’s café will be known as a friendly place to stop and get directions as well as good food and coffee.
II. Strategic Assessment
Strengths:
l Clean and organized kitchen
l Staff is polite, professional, and helpful, staff works well together
l Menu visibility and accessibility in advance
l Menu variety and choices
l Time/temp log to help ensure safety of food
l Production meeting to help ensure that everyone knows what he/she is doing
l Operation runs fairly smoothly
l Uniforms/appearance very neat
Weakness:
l Lack of sense of unity, no real leadership role
l Some difficulties with language barrier
l Close earlier
Opportunities:
l Availability of college students for employment
l Demographics of area
l Economies of scale
Threats:
l Labor laws
l Competition from other communities
l Attracting staff for employment away from competing industries competition with other restaurants, competition with residents’ own kitchens, transportation, weather
III. Product Analysis
The HWT’s cafe venue that sells moderately-priced food to an upscale casual dining market. The venue features brewed coffee and espresso-based beverages, fruit smoothies and juices, and other beverages typically associated with a coffee shop. A dessert bar will serve a range of freshly prepared desserts, as well as baked goods associated with breakfast.
Lunch offerings contain both takeaway and eat-in menu selections.
Reflecting a target niche market, a limited selection of out-of-town newspapers, as well as art, architecture, cinema, design and lifestyle magazines will be sold. Additionally, the venue will feature art and products.
Dinner items will only be available in the dining room section of the establishment. Standard appetizer/tapas offerings will be available in the coffee shop and patio area through the late evening.
Specialty coffees, espresso-based drinks, desserts and pastries, and light sandwiches will be available in the coffee shop.
Niche-magazines and newspapers will be readily available for purchase by the venue's patrons.
Musical offerings will span jazz, Latin, and urban musical traditions.
IV. Competitor Analysis
The competitor matrix below shows the HWT’s café in comparison to its competitors:
seats / meals / pricing / hoursHWT’s café / 20 / Breakfast
Lunch / * / 6.30am-
4pm
Dunkin donuts / 10 / Donuts
Soups / ** / 9am-
9pm
Lucky cup / 10 / Drinks
Snacks / * / 10am-
5pm
Little puffy / 10 / Puffy
coffee / ** / 10am-
8pm
V. Marketing Strategies
l Overall – The HWT’s café will present an image of wholesome, healthy food in an attractive and clean atmosphere. The floors will be black and white tile, the curtain and tablecloths will be red and white check, and work by local artists will hang on the walls. The sign will be large enough to be read from the street, and will be designed to promote the café’s image. Comment cards will be at each table and will be collected at the register. Suggestions for new or improved meals will be sought, as well as feedback on service and the dining experience.
l Local residents & workers – Small ads will be placed weekly in the dining section of the local newspaper. Specials will be promoted with an a frame sign, and during slow periods coupons and ‘2-for-1’ deals will be offered. Menus will be distributes to local businesses and the faxing – in of orders will be encouraged. Take-out will be attractively boxed and given equal priority to sit-down services.
l Tourists – menus will be distributed to the local lodging establishments to encourage their guests to come to the café. Advertisements and listings will be placed in state wide and regional tourist guides and publications. Menus will also be placed at information booths and other spots likely to have tourist traffic.
l Other – pricing will be competitive and customer service excellent. The café will stand behind the food, and if anyone is not satisfied, the item will be replaced or taken off the bill.
VI. Marketing Budget
Sources and uses of funds
SourcesOwner’s investment / $10000
loan / $30000
Total sources / $40000
Uses
Purchase of equipment / $20000
Renovations to leasehold / $5000
Rent deposit / $600
furniture / $1000
Dishes/glassware/silverware / $1000
cookware / $1000
supplies / $500
compressor / $500
Food inventory / $5000
advertising / $1000
insurance / $1000
Worker’s comp / $1400
Working capital / $2000
Total uses / $40000
VII. Sales Forecasts
Our sales forecast assumes no change in cost of prices, which is a reasonable assumption for last few months.
The growth forecast is in line with the restaurants in area and is tied to the projected increase in population of the immediate area.
OPERATIONAL
I. Production plan
Control for food production process – providers must be accredited by the qualifications authority or a delegated inter-institutional body before they can register credits from assessment against unit standards or deliver courses of study leading to that assessment.
Industry training organizations must be accredited by the qualifications authority before they can register credits from assessment against unit standards.
Accredited providers and industry training organizations assessing against unit standards must engage with the moderation system that applies to those standards.
Accreditation requirements and an outline of the moderation system that applies to this standard are outlined in the accreditation and moderation action plan. The accreditation and moderation action plan also includes useful information about special requirements for providers wishing to develop education and training programmes, such as minimum qualifications for tutors and assessors, and special resource requirements.
Standardized recipes – standardized recipes are necessary to produce quality food products in any food service operation. Use of standardized recipes is a requirement for the nutrient analysis of menus. All foods prepared from scratch or finished in a kitchen must have a standardized recipe on file.
A standardized recipe is one that has been tested, adapted for use by a specific food service operation, and found to produce the same good results and yield every time when the exact procedures are used with the same type of equipment and the same quantity and quality of ingredients.
Advantages of using standardized recipes – control quality by using recipes, control portion and yield, this reducing leftovers and menu substitutions, control costs by allowing for accurate purchasing and storage, provide accurate nutrient analysis.
Training in food production – food service personnel need training as new hires and as experienced employees in order to prepare foods that are consistent with the nutrition and quality standards of the child nutrition program. There are many excellent resources that provide detailed information on managing food production. 1. Consider the dietary guidelines for Americans in food production. 2. Control portion sizes to control food cost and meet meal requirements. 3. Encourage CNP managers and CNP assistants to routinely evaluate menu items before placing them on the service line.
II. People plan
The staff will consist of two part-time employees working thirty hours a week at $15 per hour. In addition, one full-time that will be worked forty hours a week.
Resumes – attached are resumes for the staff of the HWT’s café. Herry has over ten years experience in the restaurant business. Five of those years were spent as manager of the top café in Melbourne.
Accounting and cash management systems – an electronic cash register has already been purchased. This register is capable of tracking sakes of various items, recording the different operators, and displaying the correct amount of change due for cash transactions. Numbered sales slips will be used, and each book signed for in a log book. All slips will be accounted for. The HWT’s café will accept credit cards and a credit card machine will be purchased.
Herry Tan will prepare deposits and take them to the bank daily. All checks will be written and signed by Mr. Tan, and he will keep the café books on the quick books software program. Counter, CPA, will prepare tax returns and quarterly payroll and tax reports.
III. Controls plan
Having a control system allows you to monitor, measure and adjust where necessary your organization’s performance, whether it be sales, production capabilities, or general efficiencies. In other words, the purpose of business control is to identify unfavorable business performance so appropriate actions can be undertaken. The business control process involves several activities: Establish performance standards; Reporting or monitoring performance; comparing performance against standards; identifying unsatisfactory performance; and perusing appropriate action to correct significant deviations in performance.
FINANCIAL
Cash flow statement
Assumptions
Revenue and labor worksheet
Break-even point