A Café with Eastern and Cultural Environment

Prepared by:

Department of commerce and finance

GCU Lahore

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Contents
• Executive Summary……………………………………….4
• Vision Statement……………………………………….....4
• Mission Statement………………………………………...4
• Idea Generation…………………………………………...5
• Introduction…………………………………………….....5
• Management……………………………………………...6
• Location of Café………………………………..................6
• Description of project……………………….……………7
• Competitors…………………………………………….....8
• SWOT analysis…………………………………………..10
• Production process……………………………………….11
• Financial Plan…………………………………………….15
• Market Consumption…………………….……………....16
• Code of conduct……………………………………….....16
• Market policy………………………………………….....17
• HR policies……………………………………….……...18
• Market expansion plans………………………………....19
• Other Socio Economic Benefits…………………………19
• Appendix A………………………………………………..21
• Appendix B………………………………………………..22
• Appendix C………………………………………………..23

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 Executive Summary
Now a day, westernization is dominating our cultural values a lot. Western lifestyle has
specially impacted the youth of our nation. Companies present their brands through western
styles. All fast food restaurants, all coffee bars, all juice corners and all those places where youth
is considered as a target market promote the western culture in our society. This is leading our
generation away from their cultural, religion and moral values.

Our parents are also worried from this situation and they don’t allow their children
especially daughter for hanging out with friends. In this circumstances if we do not promote our
culture then that day is not far from us when we will lose our culture.

For the promotion of our real eastern culture in our society as well as in business world
we are focusing on a coffee shop in which we promote our culture. In this coffee shop we present
superb coffee to our customer in a specific eastern environment. The target market of that café is
youth and families. Where our respected families can go and enjoy coffee in comfortable family
environment.

Typical issues identified through the overview are summarized as follows;

1. Our values, culture and religion is disappearing slowly in our society.

2. Respected, cultural and religious families cannot hang out.
3. People do not feel easy after send their children in these places.

Lahore being a major city of Pakistan is our initial point of consideration. Our criterion is
first we promote this business in Lahore after that we will move to other cities of Pakistan.
Through this we can preserve as well as promote our real eastern culture in our country. We are
providing a plate form to handicraft industry to show their skills in decorating our café with their
handicrafts in true cultural outlook.

Vision Statement
Our vision is the promotion of eastern culture all over the globe.

Mission Statement
As our mission is to promote eastern culture in cafés of Pakistan, here it would be
essential to highlight that the proposed café will give a cultural look and it would be similar to
that of the culture of each province of Pakistan.

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 Idea Generation
Café is originated from western economies and that’s why it is promoting western culture
around the globe. This café culture is strengthening its root in our society. So our proposed
business plan of café is to promote eastern culture in our society. In handicrafts there involve
many varieties, but we take one aspect that is very important. This aspect is what we make
decoration from wasted things. We use egg shells, extra bangles, pistachio peals, pieces of
strings, ice cream sticks, wasted bottles, x-rays, seeds of melon etc. We also make interior
decoration by using these things and some more as required.

If we are running a business of restaurant and we want to make some decoration without
wasting money and also wanted to reduce cost of such things. We will utilize the waste of our
business to make interior decoration. In such a way we will save our cost, give a beauty and
attraction to our business which also becomes more profitable because such type of things you
cannot find anywhere. .

Introduction
The Cafe is a mean of bringing a group of people together to have an open, creative
conversation on a topic of mutual interest to share ideas and to gain a deeper collective
understanding of the subject and the issues involved. Our café will provide you a healthy cup of
coffee or tea during your conversation. At our cafe u can eat, drink and enjoy & to get rid of
tiredness of normal activities. You can visit us with your friends and family and can enjoy meal
without any hesitation of bold surroundings as we bring a pure eastern environment.

There will be a separate portion for ladies and families to have privacy they need to enjoy
for their selves. This thing will make the female customers to feel comfortable and an ease in the
café and they can freely eat, drink and relax. Bi seaters and sitting arrangement for groups will
be provided for customer ease. Decoration items, wall papers, wooding and flooring will
represent our culture without any amalgamation of other cultures, purely Pakistani culture will
make the customers aware of our matchless culture. Our café will be specially decorated by
handicrafts.

There will be a playing portion for children where they play. Sufficient parking space
will be to park the vehicles. We will specially focus on the quality and freshness of our raw
material and products. We will offer our products at low prices. And we will give an Eastern
Punjabi look to our café. For this purpose we will decorate and furnish our café with handicrafts
of Punjab, which will depict the culture of the area. Our café will be cost efficient with respect to
its decoration and it would provide a plate form to handicraft industry to show their talent.
Pakistani handicrafts are the best but unfortunately this industry is not provided with suitable

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resources and thus it is not flourished. So, we will “Kill two birds with one stone" by investing in
café we will promote eastern culture in café for all the families and we will promote our
handicraft industry as well.

Management
In our café we will hire specially trained efficient and courteous employees and workers
to build an outstanding image of our café. Our chiefs will pay special attention to cleanliness and
ensure you a quality meal each and every time you visit here.

Location of Café
Target market:

The location of our café would be in Gulberg at M. M. Alam road. Lahore's two major
markets both are located in Gulberg. The Main Market and Liberty Market are commercial hubs
in central Lahore, functioning as half bazaar and half shopping mall in appearance and layout.
Along the side of Main Market is the Canal Park Bazaar. Most of Lahore's major high-end
commercial districts are located within Gulberg, including M. M. Alam road, Gulberg Main
Boulevard, portions of The Mall Road Jail Road, Gaddafi Stadium and others. The town is
known for its upscale business centers, urban shopping centers, modern restaurants and a major
sports complex. It is also known as the hub of the contemporary fashion and cuisine industry in
Pakistan.

Gulberg
Area 43.20sq.K.M

Population 570864

House hold size 7.1

No. of U.Cs 15

No. of roads 2500

No. of household 80404

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 Gulberg is considered to be one of the most exclusive residential areas in Lahore. Many
of Pakistan's leading industrial clans, entrepreneurs, and "pro-establishment" social elite maintain
residences in Gulberg, making it the civilian epicenter of Lahore, as Military families of high
rank either reside in the city of Rawalpindi, or in the Cantonment ("Cantt") district of Lahore.
Gulberg's posh reputation is well-deserved.

Leading athletic competitions, health and fitness gyms, as well as bi-gender swimming
pools are easily accessible to the wealthy inhabitants of the district. The area is known for its
cultural centrality for the modern pro-establishment elites of Pakistan, as well as the presence of
nearly all of Lahore and Punjab's prestigious non-military families. So, the above mentioned both
the areas are residence of upper middle class and middle class.

As our mission is to promote eastern culture in cafés of Pakistan, here it would be

essential to highlight that the proposed café will give a cultural look and it would be similar to
that of the culture of each province of Pakistan. We will start from Lahore in Punjab at M. M.
Alam road.

Description of the Business Plan

Procedure to Be Followed To Start Business

There are many things to do before we open a cafe. First of all we will draft a business
plan. We will outline our goals and direction and define how the cafe will function. After that
we will find a right site for our cafe. For example, if we plan to cater to the lunch crowd during
the week, we will look for a location that is easily accessible to office buildings and surrounding
businesses that operate during a standard business day.

We will apply for our business license. We will make it sure that we are in compliance
with all the requirements of local laws before making the application. After that we will set up
the space. Stock the kitchen with appliances and equipment that are up to local standards. Select
seating that is attractive, comfortable and safe for your customers. Design the layout of the
seating to comply with fire and safety codes, and make sure the exits are clearly marked. Choose
decorating accents that create the right atmosphere and are in compliance with local codes i.e.
eastern. We will use waste materials to make decoration pieces.

Also, we will make sure sprinkler systems and other safety measures are up to code as
well. We will schedule the health inspection before we will open, and post the rating in a

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prominent place. After that we will design our menu. We will offer coffee and different flavors
in tea. Moreover we will stick with snacks and different types of cakes and biscuits that we can
create quickly and will be desirable to our target customers. We will advertise our new cafe. We
will start with a promotional campaign to advertise our grand opening, and follow through with
regular advertising.

Technical knowledge

As we are opening a new cafe, we have many competitors and to compete with them we
require trained staff. Cooking and serving both are the techniques. We will employ only the
trained chefs and servers. They must be capable of using coffee and tea machines effectively and
efficiently. The staff should be able to use computer technology and net service to interact with
customers and to get their feedback through electronic media.

Competitor’s edge for quantity and quality

We are opening a new café, so we have to face some direct and indirect café. I have taken
some names of café from city Lahore that would be our direct competitors i.e.

 Cafés & Coffee Houses

 CAFE ROCK
 CHEZ NUR BISTRO
 CINNABON BAKERY CAFÉ
 CINNAMON COFFEE LOUNGE & BAKERY

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  COFFEE, TEA & COMPANY
 FLORILEGIUM
 HOBNOB CAFÉ
 HOT FUZON
 Coffee Shop
 JAMMIN' JAVA CAFÉ
 LUCIANO'S AT AMMAR BELAL
 MALEE'S CAFÉ
 MASOOM'S COFFEE & BAKE SHOP
 PEERU'S CAFÉ
 ROASTERS
 WHITE DINING LOUNGE
 WORLD FASHION CAFÉ etc.

Indirect Competitors:
Our indirect competitors would be
 KFC,
 McDonalds
 Hardees etc.

And as far as the competitive advantage is concerned, we are offering a comfortable family
environment with eastern culture. Moreover we are promoting handicrafts for decoration.

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 SWOT ANALYSIS

Café CAFÉ DUO

 First mover advantage for

eastern environment
 Unique taste and quality
Strength products.
 Customer oriented products and
environment.
 Platform for handicrafts.

Less awareness.
Weaknesses High marketing cost.
No franchising chain.

 Family Entertainment.
 Upcoming Trend of culture
Opportunities promotion.
 Modernization

 Direct competitors.
 Bargaining power of suppliers
Threats  Economic instability
 Potential Entrant

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 Production Process

As we are offering coffee, different flavors in tea, cakes and biscuits etc. So our production
process revolves around all these things.

Product Lines

Permanant Provided On
product line Demand

Coffee and Cakes and Cold Drinks

Snacks Salads And Soups
tea biscuits

Coffee Making Process

First of all we will need a good coffee that we are importing from England. Coffee
makers are used to make good coffee. After coffee filter have been inserted the in its appropriate
location, 1 level scoop of coffee for each cup is added. After that one cup of water for every cup
of coffee is added. The number of cups of water added should be equal to the number of scoops
of coffee that are added. After that the fresh milk is added in a suitable quantity. And coffee gets
ready for serving.

Coffee Cofee
Fiting The Adding The
Making Ready After
Filter Ingredients
Machine Sometime

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Process to make tea of different flavors:

We are offering four different flavors in black tea i.e. ginger tea, lime tea, cardamom tea
and basil or tulsi tea.

Ginger tea:
Ginger is cut into fine pieces. Two cups of water (with cover) along with the grated or
finely cut ginger is boiled. The heat is turned off, two teaspoonfuls of any good brand of black
tea leaves are added and the pot is covered for 3-4 minutes. With the help of a strainer, the tea is
strained in cups and served to the customers.

Cardamom Tea:

4 pods of cardamom is taken and with the help of mortar and pestle, ground into powder.
Too much fine powder is not necessary, coarse powder does as well, the green coatings are kept
aside. Two cups of water (with cover) along with the powdered cardamom and the green
coatings of cardamom pods is boiled. Two teaspoonfuls of any good brand of black tea leaves
are added and allowed to brew for 3-4 minutes (with cover).Strained the tea into cups and served
to customers.

Lime/Lemon Tea:

Two cups of water (with cover) is boiled and two teaspoonfuls of sugar , two
teaspoonfuls of any good brand of black tea leaves are added and allowed to brew for 3-4
minutes (with cover). The juice of one lime is squeezed into two separate cups (that means each
cup gets half limejuice). After that the tea is strained into the cups containing the lime juice and
stir well, the color of black tea lightens slightly.

Basil or Tulsi Tea:

Two cups of water is boiled (with cover). Two teaspoonfuls of any good brand of black
tea leaves and 2-3 fresh or dried basil (Tulsi) leaves are added into the boiled water. The tea is
allowed to brew for 3-4 minutes (with cover). Strained the tea into cups.

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 Types of
tea

Cardamom Chocolate
Ginger tea Lime tea Basil tea
tea tea

Cake production in baking plants:

The liquid and dry ingredients are mixed separately and then blended together. In large
bowls, a generous proportion of fruit and nuts is mixed with the cake dough until the surfaces of
the fruit are coated. The rich mixture with its sparkling cherries is scooped into baking pans lined
with greased paper that prevents the sugary fruit from burning against the sides of the metal
pans. The pans and their contents are weighed to produce uniform products, and the pans are
placed on conveyor belts that carry them past a team of inspectors.

The inspectors watch for excessive variations and arrange the nuts and cherries so they
show to best advantage. The fruit and nuts will not move in the cake once they are in place, so
the appearance of the cake before it is baked will be much the same as the finished product. The
cake pans that have passed inspection are placed on large trays that are loaded into a 5 ft (1.5 m)
tall industrial baking rack. The entire rack is rolled into a rotating convection oven for the baking
process, which is also a well-guarded secret. Because this type of cake is dense rather than airy
and because of the fruit and sugar contents, fruit cakes are baked at relatively low temperatures
for a long time to drive off the moisture without singeing the fruit.

The racks are wheeled out of the convection oven, and the cakes are left in their pans to
cool. After the cakes are cooled, they must be wrapped and packaged quickly before they begin
to reabsorb moisture from the air. The cakes are removed from their pans, and the paper lining is
striped off the cakes. Some manufacturers decorate the finished surfaces with sugared nuts or
extra fruit, and some apply a syrup glaze.

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 Following any decorative steps, the fruitcakes are packaged, usually in an inner wrap of
decorative cellophane that is seated on a lace doily and a piece of fruitcake-sized cardboard. This
inner set of packing is placed in a box or ornamental tin and sealed. That container may also be
sealed in an outer box for store display, mailing or shipment.

Ingredient Icing and

Blending Filling Baking
mixing toping

Raw materials

Coffee powder, liquid milk, powder milk, green tea, tea, flour, east, ginger, cardamom ,
basil , lemon and orange peel, raisins, dates, currants, figs, apricots, cherries, citron (the
preserved rind of the citron fruit, which is similar to a lemon), and pineapple Nuts include
walnuts, pecans, almonds, and pine nuts; broken piece, Fat , Sugar , Salt , Ammonium
bicarbonate , Butter , Flavors , Emulsifiers , Invert syrups, Dough Improvers and many additives
etc.
Suppliers

 Tetra Pak, Lahore

 Poultry Farm Shekhupura, Sharqpur - Shahdara Road, Pakistan
 Hyperstar, Forteress Stadium, Lahore, Pakistan
 Metro cash and carry, Defence and Thoker Niaz Baig, Lahore, Pakistan

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 Financial Plan
CAFÉ DUO
PROPOSED BALANCE SHEET
1st APRIL, 2011

ASSETS
CURRENT ASSETS
Rs.
Cash At Bank 1,500,000
Prepaid rent 1,200,000
Total Inventory 50,000
Preliminary Expenses 20000

TOTAL CURRENT ASSETS 2,770,000

FIXED ASSETS
Equipments & machinery 803,000
Furniture & Fixtures
156,300
NET FIXED ASSETS 849,300

TOTAL ASSETS 3,729,300

LIABILITIES & STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
Accounts Payable 29,300
Bank Loan 100,000

Total Current Liabilities 129300

TOTAL LIABILITIES 1293000

OWNER’S EQUITY 3,600,000

TOTAL LIABILITIES & 3,729,300
STOCKHOLDERS' EQUITY

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 Market Consumption
Market Potential:
According to the market survey, 70% families want to visit these café but due to the
western environment they hesitate to visit these places. In remaining 30% majority of families
rarely visit these café s but they want that type of café which has an eastern and family
environment. So, on the bases of our survey, there is a good potential of market for our café. We
think, we will lead a good business in future.

Families Trend to Visit Café

2%

28%
families not visit café
families rarely visit cafe
70%
families regularly visit café

In this survey, this 2% includes young girls and boys of elite class families of city. Whose
are not consider culture and values in their lifestyle. So on the bases of our survey we think there
is a good market place and space for our café in the city.

Code of Conduct
Rules and policies are necessary for any business to function well. Along with these rules
and regulations, however, managers need to implement a discipline and rewards systems for their
employees. Staff members who are aware of their responsibilities and the consequences of not
following them are more apt to perform at a higher standard.

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 Marketing policy

Segmentation:
According to our marketing policy, our target market is youth and families. We segment
our market on the demographic bases (age, family size, income level etc) and psychographic
bases (social classes, life style etc.).

Demographic segmentation:

Demographic segmentation of our café is:

• Almost people of every age group.

• Gender is both males and females.
• Family size is 1+
• Family lifestyle is almost all.

Psychographic segmentation:

Psychographic segmentation of our café is:

• Social class- Upper and Middle class.

• Lifestyle is not specific.

• Personality is ambitious and authoritarian.

Product:
We assure our customer that we will not compromise on quality and taste of our products.
We have superb coffee and different types of tea such as green and black tea. We also present
different kind of food items such as cakes, snacks etc. for our customers.

Price:
According to the penetration satretegy of pricing our pricing is reasonable for customer,
so that middle class families can also visit our café and they can enjoy with their families. Our
pricing goal is profit earning as well as customer satisfaction.

Promotion:
We use promotion pull strategy for promotion of our café. For this purpose we give
advertisement of our café on magazines, roads and in universities. We will distribute our
brochures in different places for the promotion of our café.

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Feedback
We will take feedback from the customer in order to know the customer demands and
then improvements will be made in products as well as environment. For this purpose we will
maintain our website and or a suggestion book so that customer can give their comments about
our café.

HR Policies
Identify Expectations

Our managers will make their expectations very clear from the day an employee will be
hired. Managers should discuss all expectations for every job as well as every employee while on
the premises. For example, a manager can include the following in the list of expectations:

 Arriving to work on time

 Properly clocking in for and out of a shift
 Exhibiting proper cash handling practices
 Performing daily cleaning tasks
 Implementing customer service techniques

An employee manual or handbook will be included these expectations and policies for every café
employee. When the expectations and rules are clear, rewarding and disciplining employees is
easier and much more effective.

Reward System for Employees

Establishing a reward system can be very simple. When employees know the expectations,
they are able to perform accordingly and even exceed those standards. So, it increases the
satisfaction of the employee towards the work. For this purpose we will originated some rewards
for employees that is:

 Employee of the month award

 Special bonuses for special performance.

Dress Code for the Non Managerial Employees

The clothing and appearance of employees is a reflection of their professionalism and the
environment of our café. Employees will maintain a clean and well-dressed appearance while at
work. The required summer uniform for employees who interact with members will be:

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For Man

 Black Suit
 Black shoes
 Red tie

For Woman

 Black Abayas
 Red scarf

Dresses would be provided by the café management.

Quality of Performance

In accepting a position at the Manhattan Sailing Club, the employee agrees to perform his
or her work in a high quality and time efficient manner. Failure to maintain a high standard of
quality or efficiency may result in the dismissal of an employee.

Market Expansion Plans

Initially we are opening one café in Lahore. But within 3 years we will raise this quantity
to 3 café in Lahore only. After that we will move to other cities of Punjab. Within 5 to 10 years,
we will have our café in other cities of Punjab such as Islamabad, Rawalpindi, Faisalabad and
Multan. So that our mission i.e. promotion of our eastern culture will be moved to its destiny.
We will also increase variety of our food items that will be served with tea or coffee.

Other Socio Economic Benefits

Employment Opportunities
By opening Café Duo we would be providing employment opportunities to many
youngsters. As now a day’s unemployment is a big problem of Pakistan and we are also focusing
on franchising Café Duo this will create many employment opportunities. Management of café
Duo will include educated people in top management as well as waiters & waitresses. Top
management would be highly educated people & the waiters will be intermediates or graduates
because in Cafes’ gentry come & to deal with them educated people must be employed.

As our main focus is Punjab & basically Lahore. So, by franchising Café Duo many
people would be employed. We have also created employment opportunities for some people
who make handicrafts. As the theme of our café is eastern culture and we have given our café a

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cultural touch by decorating it with different handicrafts. So, we have also arranged a special
handicrafts section in our café from where the people can purchase those handicrafts.

Benefits of Economies of Scale

By franchising we can get the economies of scale while purchasing coffee, chocolate &
other raw material because when the raw material for production would be purchased in bulk,
price discounts can be availed. Eatables & bakery items like cakes, pastries & snacks etc would
be produced on large scale; raw material will be less costly, on discount which will lead to
economies of scale. We will purchase most of the products from Hyperstar and Metro cash &
carry.

Training and Manpower

For a café little bit of training is required. First of all we should try to employee those
people in top management who have done some hotel management courses etc. The waiters can
be trained in no time as how to serve & deal with the customers. When educated persons will be
employed then they will be trained very easily & fewer resources will be wasted in training
them.

Saving Foreign Exchange (Import Substitutes)

By using Coffee & tea brands available in Pakistan we can save foreign exchange which
would be otherwise wasted in importing them. In Pakistan there are very good shopping malls
having imported brands of coffee & chocolate so there is no need to import them but we should
be quality conscious because the coffee & chocolate in most of the café’s is being imported and
we should keep the quality factor in mind because people come in café’s only due to high quality
products served there. So, we should select high-quality raw material.

Raising Living Standard

Increasing number of café’s and restraints in a city portrays or tells us that the living
standard of people is rising day by day. We are also opening café Duo due to increase demand of
café’s. Everybody now wants to spend quality time with family or friends in a great
environment. People are willing to pay more for good stuff, this means that living standard of
people is increasing & café’s & restraints are attracting them.

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 Appendix A
Details of Asset

1. Furniture and Fixtures :

Items Quantity Per unit cost Cost

Vass 10 3,50 3,500
Decorations - - 4,000
Table covers 10 1,000 10,000
Tables 10 4,000 40,000
Chairs 24 1,950 46,800
Fixtures - - 52,000
Total 156,300

Equipments:

Items No. Per unit Total

Cappuccino 2 Rs. Rs.
machines 25000 50,000
Baking plants 1 89,000 89,000
Tea makers 2 3,000 6,000
Oven 2 13,000 26,000
AC’s 2 195,000 390,000
Deep freezers 2 50000 100,000
Fridge 1 25,000 25,000
Computer 1 12,000 12,000
Cooking range 1 10,000 10,000
LCD 1 95,000 95,000
Total - -

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 Appendix B
Details of Salaries

Salaries expense:

Employee No. of Per Total cost

Workers employee
Chef 1 25,000 25,000
Assistant chefs 2 8,000 16,000
Receptionist 1 10000 10000
Waiters 3 7,000 21,000
Sweepers 2 6,000 12,000
Guard 1 8,000 8,000
Total 92,000

Partial Income Statement

For the month ended April 2011

Heads Rs.
Sales Revenue -
Less: Operating Expenses
Cost of goods sold -
Gross Profit -
Less: Non operating Expenses
Rent 100000
Salaries 92000
Wages 2000
Utility bills 30000
Miscellaneous expense 10000
Total non Operating Expense 234000

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 Appendix C
Details of Market Survey

Questionnaire
Age:
Gender:
Q1. How often you hanging out with your family?

a. Once a week b. Once a fortnight c. Once a month. d. Very rarely

Q2. How many times you visit café?

a. Once a week b. Once a fortnight c. Once a month. d. Very rarely

Q3. How many family members you are?

a. 2-3 b. 4-6 c. 7-9 d. above 9

Q4. What attracts you towards café?

a. Environment b. Eatables c. Management d. Staff Performance

Q5. With whom you enjoy visiting café?

a. Family b. Friends c. Both d. Alone

Any comments about the environment of cafés

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