BUSINESS PLAN

OWNERS: Rotaru Alexandra, Savescu Oana and Stancu Alina

Business Name: Stud Coffee
Address: Romana Square, Bucharest
City, State, ZIP: Bucharest
Telephone: 0724574836
Email: [email protected]

II. EXECUTIVE SUMMARY

Even during a down economy, people need a caffeine fix. Coffee drinks remain an affordable
pick-me-up and morale booster during the word day, as well as during leisure time. To that end,
we intend to open Stud Coffee, which will be a coffee shop that will sell coffee drinks, coffee
beans, and any retail products, etc. We will provide and offer our customers the best prepared
coffee in the area that will be complimented with pastries, as well as free books that its patrons
can read to enjoy their visit
Stud Coffee is determined to become a daily necessity for local coffee addicts, a place to dream
of as you try to escape the daily stresses of life and just a comfortable place to meet your friends
or to read a book, all in one.
III. BUSINESS DESCRIPTION
Stud Coffee will be in the food service industry, as well as in the retail industry, we intend to sell
things like mugs. We know that coffee is something that people will always need, or at least
always convince themselves they need, and we will be able to offer a quality product at a fair
price.
Our goal is to create a unique place where customers can socialize with each other in a
comfortable and relaxing environment while enjoying the best brewed coffee or espresso and
pastries in town. We will be in the business of helping our customers to relieve their daily
stresses by providing piece of mind through great ambience, convenient location, friendly
customer service, and products of consistently high quality.
We are setting up our shop as legal setup, such as LLC, sole proprietorship, etc.

The start-up expenses include:

Legal expenses for obtaining licenses and permits as well as the accounting
services totaling $1,300.
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Marketing promotion expenses for the grand opening of Stud Coffee in the amount
of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total
amount of $3,580.

Consultants fees of $3,000 paid to Espresso Services for the help with setting up
the coffee .

Insurance (general liability, workers' compensation and property casualty)

coverage at a total premium of $2,400.

Pre-paid rent expenses for one month at $1.76 per square feet in the total amount
of $4,400.
Premises remodeling in the amount of $10,000.

Other start-up expenses including stationery ($500) and phone and utility deposits
($2,500).
The required start-up assets of $142,320 include:

Operating capital in the total amount of $67,123, which includes employees and
owner's salaries of $23,900 for the first two months and cash reserves for the first three
months of operation (approximately $14,400 per month).
Start-up inventory of $16,027, which includes:

Coffee beans (12 regular brands and five decaffeinated brands) - $6,000

Coffee filters, baked goods, salads, sandwiches, tea, beverages, etc. -

$7,900
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Retail supplies (napkins, coffee bags, cleaning, etc.) - $1,840

Office supplies - $287

Equipment for the total amount of $59,170:

Espresso machine - $6,000

Coffee maker - $900

Coffee grinder - $200

Food service equipment (microwave, toasters, dishwasher, refrigerator,

blender, etc.) - $18,000
Storage hardware (bins, ustensil rack, shelves, food case) - $3,720
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Counter area equipment (counter top, sink, ice machine, etc.) - $9,500

Serving area equipment (plates, glasses, flatware) - $3,000

Store equipment (cash register, security, ventilation, signage) - $13,750

Office equipment (PC, fax/printer, phone, furniture, file cabinets) - $3,600

Other miscellaneous expenses - $500

Funding for the company comes from three major sources--owners' investments and bank
loans. Three major owners, Rotaru Alexandra, Savescu Oana and Stancu Alina have
contributed $70,000, $30,00 and $50,000 respectively. All other investors have
contributed $40,000, which brings the total investments to $140,000. The remaining
$30,000 needed to cover the start-up expenses and assets came from the two bank loans-a one-year loan in the amount of $10,000 and a long-term (five years) loan of $20,000.
Both loans were secured through the BCR and BRD. Thus, total start-up loss is assumed
in the amount of $27,680.

IV. MARKET ANALYSIS

Our business will offer something that no one else does.

Stud Coffee will strive to build a loyal customer base by offering a great tasting coffee in
a relaxing environment of its coffee bar located close to the bustling University of the
Economics Studies.
Our prices will be equal to the competition, and we believe they are set up perfectly because will
cater to people who want to get their daily cup of great-tasting coffee in a relaxing
atmosphere.
The employees we intend to hire are some of the best in the business. Our employees will offer,
such as excellent knowledge of coffee, an ability to make a great cappuccino.
We are attaching marketing materials, brochures to give you an indication where you will find
our coffee shop.
V. MARKETING PLAN
Stud Coffee will focus its marketing activities on reaching the University students and faculty,
people working in offices located close to the coffee and on sophisticated teenagers. Our market
research shows that these are the customer groups that are most likely to buy gourmet coffee
products. Since gourmet coffee consumption is universal across different income categories and
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mostly depends on the level of higher education, proximity to the University of Economics
Studies will provide access to the targeted customer audience.
Stud Coffee will cater to people who want to get their daily cup of great-tasting coffee in a
relaxing atmosphere. Such customers vary in age, although our location close to the University
means that most of our clientele will be college students and faculty. Our market research shows
that 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 base.
Stud Coffee's direct competitors will be other coffee located near the University of Economics
Studies. These include Gloria Jean s Coffees,Mc Caf, 5 to go and other Food service
establishments that offer coffee. Mc Cafe will definitely be one of the major competitors because
of its strong financial position and established marketing and operational practices. However,
despite of Mc Cafe's entrenched market position, many customers favor smaller, independent
establishments that offer cozy atmosphere and good coffee at affordable prices.
Our business will have store design that will be both visually attractive to customers, and
designed for fast and efficient operations, employee training to insure the best coffee preparation
techniques and a marketing strategies aimed to build a solid base of loyal customers, as well as
maximizing the sales of high margin products, such as espresso drinks.
VI. OPERATIONS AND MANAGEMENT
Stud Coffee will be located at Romana Square, because its close to the University of Economics
Studies. We have no parking situation at our location, instead we have a lots of means transport
We will sell our product from this location. We will have a web-based business. We will have 10
employees, including 2 cashiers, other 2 servicing clients, while one employee will be
preparing the customer's order and 5 people who will prepare coffee and pastries.
There are things we will need in the initial startup, including list of inventory and equipment you
will have to purchase, such as your product, cash registers, espresso machines, refrigerators, etc.
We also know that we can expect a certain amount of maintenance costs and repairs for items
like our espresso machines, refrigerators, and more.
Stud Coffee's marketing strategy will be focused at getting new customers, retaining the existing
customers, getting customers to spend more and come back more often. Establishing a loyal
customer base is of a paramount importance since such customer core will not only generate
most of the sales but also will provide favorable referrals.
VII. COMPETITIVE ANALYSIS
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Stud Coffee will position itself as unique coffee bar where its patrons can not only enjoy a cup of
perfectly brewed coffee but also spend their time in an ambient environment. Comfortable sofas
and chairs, dimmed light and quiet relaxing music will help the customers to relax from the daily
stresses and will differentiate Java Culture from incumbent competitors.
VIII. DEVELOPMENT PLAN
We will begin our marketing plan 30.11.2015 with the intention of spending 2 months on
marketing before officially opening 30.01.2016.
Stud Coffee baristas will handle the sales transactions. To speed up the customer service, at least
two employees will be servicing clients,while one employee will be preparing the customer's
order, the other one will be taking care of the sales transaction. All sales data logged on the
computerized point-of-sale terminal will be later analyzed for marketing purposes.
In order to build up its client base, Stud Coffee will use banners and fliers, utilize customer
referrals and cross-promotions with other businesses in the community. At the same time,
customer retention programs will be used to make sure the customers are coming back and
spending more at the coffee bar
Food costs are assumed at 25% for coffee beverages and 50% for retail beans and pastries.
Proximity to the University will dictate certain sales seasonality with revenues slightly
decreasing during the school vacation periods.
Stud Coffeewill capitalize on the strong demand for high-quality gourmet coffee. The owners
have provided the company with sufficient start-up capital. With successful management aimed
at establishing and growing a loyal customer base, the company will see its net worth doubling in
two years. Stud Coffee will maintain a healthy 65% gross margin, which combined with
reasonable operating expenses, will provide enough cash to finance further growth.