CUTE CUPS CAFÉ

A Business Plan presented to

NORTHERN CANAMAN HIGH SCHOOL

FUNDADO, CANAMAN, CAMARINES SUR

In partial fulfillment of the requirements for the subject Entrepreneurship

Of

Grade 12 GAS

Cervantes, Bonimar P.
 INTRODUCTION

The Cute Cups Café, aptly named for the aromatic brown liquid that will fill the cup, fills the void of
original cafes in the market area, stands out from its corporate peers with their fast food concepts and fast services.
The Cute Cups is the alternative to fast food/commercial/coffee shops and offers a much calmer, civilized gourmet
coffee experience. There are no televisions in the café, the background music is subtle and work from local artists
will hang on the walls. The café is well appointed with overstuffed leather chairs and sofas in a library like setting.
The café is reminiscent of times gone by – yet is cutting edge technologically with WIFI and state of the art
espresso machines.

The Cute Cups Cafe will be a one of a kind coffee house / café located in Naga City. The 1,500 square foot
café will be located in the newly constructed Market Square Plaza located on the northeast corner of 135th Street
and Mission Street. The anchor tenant, the Price Chopper grocery store, has already taken occupancy and the
excellent location brings more than 10,000 shoppers weekly.

The Cute Cups Café measures its financial success in terms of increased market share and in earnings.
With a total local market of $54 million, this is a tremendous opportunity. The keys to success will be the ability to
offer quality gourmet coffees, take advantage of its small size, and reliance on an outstanding barista staff. In order
to achieve these goals, the café will offer some the area’s finest gourmet beans from local distributors. Because of
its small size, the café can enjoy larger margins in the form of lower overhead. The cafe will hand select baristas
and offer salaries comparable to the chains. In turn the baristas will be trained to cross-sell, and sell the higher
margin products.
 EXECUTIVE SUMMARY

VISION AND MISSION

The Cute Cups Cafe is committed to its products and employees which they believe is the recipe for
market success.

OBJECTIVES

The primary objectives of the business plan for Russet Cup are below:

To increase revenues $36,000 or 5% in Year 2 and by $73,000 or 10% by Year 3. Achieve a profit margin
of 5.2% in Year 2 and 6.90% by Year 3. Be the Café of Choice in the Naga City area and recipient of the Best
Coffeehouse Award.

FUNDING REQUIREMENTS AND SOURCE OF FUNDS

The cute Cup has negotiated supplier agreements with several local food-service wholesalers and coffee
wholesalers in the Naga City area that have a reputation for quality and reliability:

Mean Beans Coffee Roasters

In the event that one of the aforementioned specialty suppliers cannot meet their needs, the following
national suppliers can both provide all of the food-service products that they require. In addition, the following
wholesalers will supply the café with general restaurant supplies:

Lawrence Food Products Corp.

PRODUCT

The Cute Cup’s Café primary offering is gourmet roasted coffees with such varieties such as mocha,
carmelicious, white mocha, candy bar latte, and brewed coffee. Complementing the coffee will be a smoothie line
including wild berry, strawberry, peach, mango and lemonade. Rounding out the simple menu line will be pastries
obtained with an outside supplier, freshly made and delivered daily. The pastry offerings may vary with
seasonality but the primary line will muffins, breads, cookies, scones, and rolls.

PLACE

The new coffeehouse is located in the highly desirable in Naga City area at the northeastern intersection of
135th Street and Mission Street in the new Market Square Plaza. The property is located in an excellent location.
With an easy 6 minute drive time to I-435 and 69 Highway. The property is 95% leased with Price Chopper as the
Anchor Tenant. Other tenants include: Life Spring Med Spa, Jane’s Canines (Pet Store & Boarding), Pride
Cleaners Kahn Dental and Swim U. Price Chopper brings more than 10,000 shoppers per week to the center. The
location is comprised of a population of 9,420 within a one mile radius, 61,102 within 2 mile radius and 149,550
within a 5 mile radius – with a median household income of $120,856. Sprint / Nextel’s corporate office is located
within 2 miles of the site.

PRICE

Espresso (solo) ₱120.00

Espresso (doppio) ₱130.00

Flat White (tall) ₱165.00

Flat White (grande) ₱180.00

Flat White (venti) ₱195.00

Caffe Americano (tall) ₱130.00

Caffe Americano (grande) ₱145.00

Caffe Americano (venti) ₱160.00

Cappuccino (grande) ₱155.00

Cappuccino (venti) ₱170.00

Caffe Latte (tall) ₱140.00

Caffe Latte (grande) ₱155.00

Caffe Latte (venti) ₱170.00

Caramel Macchiato (tall) ₱165.00

Caramel Macchiato (grande) ₱180.00

Caramel Macchiato (venti) ₱195.00

Caffe Mocha (tall) ₱155.00

Caffe Mocha (grande) ₱170.00

Caffe Mocha (venti) ₱185.00

Cold Foam Iced Espresso (tall) ₱170.00

Cold Foam Iced Espresso (grande) ₱185.00

Cold Foam Iced Espresso (venti) ₱200.00

Ristretto Bianco (tall) ₱150.00

Ristretto Bianco (venti) ₱175.00

ADVERTISING AND PROMOTION

Online Advertising – The Cute Cup Café will advertise regularly on popular social media sites, such as
Facebook. Compared to traditional print advertising, this is a cost effective tactic that will allow them to reach
prospects in a highly targeted way (e.g., based on criteria such as age, gender, geography, etc.).

Web Site – the Cute Cups Cafe will develop a simple Web site, which will provide basic information about
the business, the menu, and links to their presence on the aforementioned social media channels.

Radio Advertising – During the first six months of operation, and during the busy holiday shopping season,
the business will advertise on local radio stations.

SALES STRATEGY

The Cute Cups Cafe will use the following methods to increase sales revenue (as recommended by Andrew
Hetzel on Better Coffee, Better Business):

The menu will focus on the most profitable products sold. The café will always draw customer attention to
the most profitable products. As warranted, the café will raise prices to bolster brand image. Prices communicate a
perceived value of a product; so if set too low, the customers might assume that the beverages are inferior
compared to the competition.

Monitor flavoring inventory – Excess flavoring inventory ties up capital and valuable back room space for
storage. The café will utilize 4-6 varieties, including sugar free offerings.

Control waste and theft – audit sales and inventory reports to evaluate ingredient waste due to inefficient
preparation, returned drinks and employee consumption. Retail locations can easily waste 20% or more of their
daily sales these three key categories, which is a substantial and unnecessary loss.

Monitor and evaluate hours of operation

Run employee sales contests – The baristas are the salespeople and have a great deal of influence over the
customer ordering process. All baristas will have some form of sales and customer service training to make each
transaction active, rather than passive. Sales contests will emphasize high margin items or cross selling.