Table of Contents

1. Executive Summary.............................................................................................................................2
2. Business Goal, Mission and Objective................................................................................................3
Objectives of the Business.......................................................................................................................3
1. Background and Justification for a Coffee House in Ethiopia...........................................................4
3. MARKETING ANALYSIS.........................................................................................................................5
3.1 Pricing Strategy..................................................................................................................................6
3.2 Promotion Strategy............................................................................................................................6
3.3 Market segmentation........................................................................................................................6
4. Feasibility Study..................................................................................................................................8
4.1Marketing And Demand.....................................................................................................................8
4.2 Marketing Survey.........................................................................................................................9
5. Implementation, Resource Plan and Organizational Structure............................................................9
5.1 IMPLIMANTATION PLAN.............................................................................................................9
5.2 ORGANIZATIONAL STRUCTURE..............................................................................................11
5.3 RESOURCE PLAN FOR COFFEE SHOP IN ETHIOPIA......................................................................13
5.4 Time Plan...................................................................................................................................14
6. Financial Plan....................................................................................................................................15
7. Conclusion.........................................................................................................................................16
 1. Executive Summary
This executive summary provides an overview of the business proposal for opening a coffee
house in Ethiopia. The proposed coffee house aims to tap into Ethiopia's rich coffee culture and
offer a unique and authentic coffee experience to locals, tourists, and coffee enthusiasts. This is
a business plan proposal for the establishment of cafe having the name “AB” in Addis
Ababa. This profile envisages the establishment of a cafe for the delivery of cafeteria services.
“AB” is a specialty coffee shop located in the heart of downtown Addis Abeba, offering
customers a unique and elevated coffee experience. Our target market is young professionals and
coffee connoisseurs who are looking for high-quality coffee and a comfortable, chic atmosphere.
Our goal is to differentiate ourselves from other coffee shops in the area by offering a unique
selection of specialty coffee drinks and a curated menu of pastries and small bites, made with
locally-sourced ingredients. In addition to traditional espresso-based drinks, “AB” will offer
Nitro cold brew on tap and a variety of flavored lattes made with natural syrups. With a focus on
quality, customer service, and community involvement, “AB” aims to become a staple in the
downtown community and to provide customers with a memorable coffee experience.

Ethiopia often referred to as the birthplace of coffee, has a rich coffee culture deeply ingrained in
its history and traditions. Coffee plays a central role in Ethiopian society, with coffee ceremonies
being a significant part of daily life. It is no surprise that coffee consumption is widespread
across the country, making Ethiopia an ideal location for a coffee house.
 2. Business Goal, Mission and Objective

Objectives of the Business

Business Goal:

The business goal of AB Coffee House in Addis Ababa is to establish a thriving and reputable
coffee house that becomes the go-to destination for coffee lovers seeking a unique and enriching
experience.

Mission:

The mission of AB Coffee House is to celebrate the Ethiopian coffee heritage while embracing
modern trends and techniques. We aim to showcase the finest locally sourced coffee beans,
carefully roasted and brewed to perfection, while providing exceptional customer service.

Objectives:

1. Establish a strong presence in the local market: AB Coffee House aims to build a loyal
customer base and become a recognized name in the coffee industry in Addis Ababa.
2. Deliver a memorable coffee experience: AB Coffee House is committed to consistently
providing exceptional coffee and creating a warm and welcoming environment for
customers to relax and enjoy their coffee.
3. Expand operations: As AB Coffee House grows and establishes itself, the objective is to
expand operations, potentially opening additional locations in the future.
4. Build a loyal customer base: AB Coffee House aims to cultivate a loyal customer base by
delivering high-quality coffee, exceptional service, and creating a welcoming atmosphere
that keeps customers coming back.
5. Contribute to the local coffee community: AB Coffee House seeks to actively participate
in the local coffee community by supporting local farmers and suppliers, and promoting
the rich Ethiopian coffee culture.

By focusing on these goals, mission, and objectives, AB Coffee House aims to become a leading
player in the thriving coffee industry of Addis Ababa, providing a unique and memorable coffee
experience for customer
This proposal aims to provide the background and justification for establishing "AB," a coffee
house in Addis Ababa, Ethiopia.

1. Background and Justification for a Coffee House in Ethiopia

Background: Ethiopia's coffee industry is globally renowned for its high-quality Arabica coffee
beans. The country's unique combination of fertile soil, suitable climate, and traditional farming
practices contribute to the production of exceptional coffee beans with distinct flavors and
aromas. Ethiopian coffee exports significantly contribute to the country's economy, making it
one of the largest coffee-producing nations worldwide.

Moreover, coffee houses, locally known as "buna bet," have a long-standing presence in
Ethiopian society. These establishments serve as social hubs where people gather to connect,
converse, and enjoy the aromatic brew. Coffee houses create a sense of community and act as
catalysts for cultural exchange, providing a welcoming and inclusive atmosphere.

Justification:

I. Cultural Preservation: Establishing a coffee house in Ethiopia, such as "AB," aligns

with the country's deep-rooted coffee culture. By creating a space that celebrates
Ethiopia's coffee heritage, the café will preserve and promote the traditions associated
with Ethiopian coffee. This venture will contribute to the preservation of cultural
practices and ensure their transmission to future generations.
II. Meeting Evolving Preferences: Our proposed coffee house, “AB," aims to cater to
the evolving preferences of modern coffee enthusiasts. By combining traditional
brewing methods with ethically sourced coffee beans, we will offer a unique and
immersive coffee experience. This approach acknowledges the increasing global
demand for specialty coffee and provides a platform to showcase the distinct flavors
and characteristics of Ethiopian coffee.
III. Tourist Attraction: Addis Ababa, the capital city of Ethiopia, is a popular tourist
destination known for its rich cultural heritage and vibrant atmosphere. By locating
“AB “in a prime location near the main business district and tourist attractions, we
aim to attract both local and international tourists. The café will provide them with an
 authentic Ethiopian coffee experience, complementing their exploration of the
country and enhancing their overall visit.
IV. Economic Contribution: The establishment of " AB " will create employment
opportunities for locals, contributing to the growth of the local economy and
alleviating poverty. Additionally, the café will support Ethiopian coffee farmers by
sourcing ethically and sustainably produced coffee beans. By prioritizing fair trade
practices, we will ensure that coffee farmers receive fair compensation for their hard
work, positively impacting their livelihoods.

3. MARKETING ANALYSIS
The keys to success in this business are:

1. Product quality: Food, coffee-based beverages, and entertainment are our products. They
must be of the high quality and value.

2. Service: AB coffee shop patrons are paying to have a good time. Their experience will suffer
if service is not of the highest caliber. Each member of the staff will be courteous, efficient, and
attentive.

3. Marketing: AB coffee shop will need to target our audience early and often. While the
business is located in a central and accessible location, many people will have to be re-
introduced to the neighborhood.

4. Management: AB coffee shop will need to have a firm grasp on food, beverage, and labor
costs. The dining/entertainment/coffeehouse experience must be delivered in a fashion that will
not only inspire repeat business, but encourage word-of-mouth recommendations to others.
Proper inventory, employee management, and quality control is key

3.1 Pricing Strategy

Food, drinks, and entertainment options are priced to give us an attractive margin while at the
same time offering value to the consumer. AB coffee shop wants to the experience to remain
fresh. Comparing with other competitive cafeterias we will provide fewer prices to our
customers.
 3.2 Promotion Strategy
The first step that AB coffee shop takes in promoting our cafeteria is conducting an opening
ceremony. On this ceremony different well known peoples will be invited and some part of the
customers will also be invited. Also invite our neighbors to have a good public relationship.
Intend to advertise in the local newspapers and offer a "frequent drinkers club" discount to our
best customers. We will also send out advertise through direct mail, which will include cents off
coupons. AB coffee shop will promote our company name and label almost more than the
product itself, because to be successful besides have to stand for brand-name integrity, excellent
menu offerings, and first class entertainment and fun. AB coffee shop will have Happy Hour,
price reduction for special days, like holidays, Valentine’s Day.

3.3 Market segmentation

When it comes to developing a business plan for a coffee shop, understanding your target market
and defining your market segments is crucial. By identifying and analyzing different market
segments, you can tailor your products, services, and marketing strategies to meet the specific
needs and preferences of each segment. This can help you attract and retain customers,
differentiate yourself from competitors, and ultimately drive the success of your coffee shop.
To determine the market segments for your coffee shop business plan, you can consider the
following factors:

 Demographics: This includes characteristics such as age, gender, income level,

occupation, and education level. For example, you might target young professionals in
urban areas with higher disposable incomes, or college students looking for a study-
friendly environment.
 Psychographics: This refers to the attitudes, interests, and lifestyles of your target
customers. For instance, you might focus on health-conscious individuals who prefer
organic and sustainable coffee options, or on coffee enthusiasts who are interested in
specialty brews and unique flavors.
 Geographic location: Consider the location of your coffee shop and the demographics of
the surrounding area. Are you in a residential neighborhood, a business district, or near a
college campus? Each location may have different customer preferences and needs.
Behavior and preferences: Analyze customer behavior and preferences related to coffee
 consumption. Do they prefer to grab a quick cup on the go, or do they enjoy spending
time in a cozy atmosphere? Are they interested in trying new coffee trends or do they
prefer traditional options?
Once you have identified your target market segments, you can develop strategies to
attract and serve each segment effectively. This may involve creating specific menu
offerings, designing a welcoming ambiance, implementing targeted marketing
campaigns, and providing excellent customer service.
Remember to conduct market research, gather data, and continuously monitor and adapt
your strategies based on customer feedback and market trends. This will help you stay
competitive and meet the evolving needs of your target market segments.
Example Market Segments for a Coffee Shop Business Plan:
1. Young Professionals: This segment consists of individuals aged 25-35 who work in
urban areas. They have higher disposable incomes and are looking for a convenient and
high-quality coffee experience. They value efficiency and may prefer to grab a quick cup
on their way to work.
2. College Students: This segment includes students aged 18-24 who are studying at nearby
colleges or universities. They are often looking for a comfortable and study-friendly
environment where they can socialize and enjoy coffee. They may be interested in
affordable options and promotions.
3. Health-conscious Consumers: This segment comprises individuals who prioritize health
and wellness. They are interested in organic, sustainable, and ethically sourced coffee
options. They may also be interested in alternative milk options and healthier food
choices.
4. Coffee Enthusiasts: This segment consists of individuals who are passionate about
coffee and enjoy exploring different flavors and brewing methods. They are interested in
specialty coffees, unique blends, and may be willing to pay a premium for high-quality
and artisanal offerings.
 4. Feasibility Study

4.1Marketing and Demand

4.1.1 Market Analysis: Ethiopia is the birthplace of coffee, and its coffee industry is renowned
worldwide. The country's coffee production accounts for a significant portion of its GDP, and
coffee ceremonies are an integral part of Ethiopian culture. There is a growing interest in
specialty coffee among consumers, both domestically and internationally. By capitalizing on this
trend and leveraging our location in Ethiopia, we can establish a strong foothold in the coffee
market.

4.1.2 Unique Selling Proposition: Our coffee house will stand out by offering an authentic
Ethiopian coffee experience. We will source our coffee beans directly from local farmers,
ensuring fair trade practices and supporting the local economy. Moreover, our baristas will be
trained in traditional Ethiopian coffee brewing methods, allowing customers to witness the
intricate process and savor the rich flavors and aromas associated with Ethiopian coffee.

Key Features and Services:

 Coffee Varieties: We will offer a diverse selection of coffee varieties, including Sidamo,
Yirgacheffe, Harrar, and others, highlighting their unique characteristics and flavors.
 Coffee Ceremony: Our coffee house will host traditional Ethiopian coffee ceremonies,
creating an immersive cultural experience for our customers.
 Specialty Beverages: In addition to traditional coffee options, we will offer a range of
specialty beverages, including espresso-based drinks, cold brews, and handcrafted coffee
cocktails.
 Food Pairings: To enhance the coffee experience, we will serve a selection of freshly
baked pastries, sandwiches, and locally inspired snacks.
 4.2 Marketing Survey
Marketing and Promotion: To effectively reach our target audience, we will employ a multi-
faceted marketing strategy, including:

 Social Media Campaigns: Engaging and informative content on platforms such as

Instagram, Facebook, and Twitter to showcase our coffee offerings, brewing techniques,
and cultural experiences.
 Local Partnerships: Collaborating with local businesses, hotels, and tourism agencies to
promote our coffee house as a must-visit destination in Ethiopia.
Event Participation: Participating in local festivals, cultural events, and trade shows to
raise awareness and attract potential customers.

5. Implementation, Resource Plan and Organizational Structure

5.1 IMPLIMANTATION PLAN
Implementing a well-thought-out plan is crucial for the success of a coffee shop. Here are some
key steps to consider when developing an implementation plan for your coffee shop:
1. Location Selection: Choose a strategic location that is easily accessible, has high foot traffic,
and is in close proximity to your target market. Consider factors such as rent, lease terms, and
competition in the area.
2. Interior Design: Create a welcoming and comfortable ambiance that aligns with your coffee
shop concept. Consider factors such as seating arrangements, lighting, decor, and overall layout.
3. Menu Development: Develop a menu that offers a variety of coffee and beverage options, as
well as food items if applicable. Consider factors such as quality, pricing, sourcing, and dietary
preferences of your target market.
4. Staffing and Training: Hire and train a skilled and knowledgeable team of baristas, cashiers,
and kitchen staff (if applicable). Provide comprehensive training on coffee preparation, customer
service, and food safety.
5. Marketing and Promotion: Develop a comprehensive marketing plan to attract and retain
customers. Consider strategies such as social media marketing, local advertising, loyalty
programs, partnerships with local businesses, and hosting events or workshops.
6. Operational Procedures: Establish clear operational procedures for daily tasks such as
opening and closing procedures, inventory management, equipment maintenance, and cleanliness
standards.
7. Customer Service: Emphasize the importance of excellent customer service and train your
staff to provide a positive and memorable experience for customers. Encourage feedback and
continuously improve based on customer suggestions.
8. Supplier Relationships: Establish relationships with reliable and quality suppliers for coffee
beans, ingredients, and other supplies. Ensure timely deliveries and maintain good
communication to ensure a steady supply chain.
9. Financial Management: Implement effective financial management practices, including
budgeting, tracking expenses, monitoring sales, and analyzing financial reports. Consider
implementing a point-of-sale system to streamline transactions and inventory management.
10. Continuous Improvement: Regularly assess and evaluate your coffee shop's performance,
customer feedback, and market trends. Make necessary adjustments and improvements to stay
competitive and meet customer expectations.
Remember, this is a general outline, and the specific implementation plan for a coffee shop may
vary depending on factors such as location, target market, and business goals. It's important to
tailor the plan to meet the unique needs of your coffee shop and regularly review and adapt it as
necessary.
5.2 ORGANIZATIONAL STRUCTURE
The organizational structure of a coffee shop business can vary depending on its size, goals, and
management style. However, here is a general outline of a typical coffee shop organizational
structure:
Owner/CEO: The owner or CEO is responsible for the overall management and strategic
direction of the coffee shop. They make key decisions, set goals, and oversee the operations of
the business.
Manager: The manager is responsible for the day-to-day operations of the coffee shop. They
oversee staff, handle customer service, manage inventory, and ensure smooth operations.
Baristas: Baristas are the front-line staff who prepare and serve coffee and other beverages to
customers. They are responsible for ensuring quality, providing excellent customer service, and
maintaining a clean and welcoming environment.
Cashiers: Cashiers handle transactions, process payments, and manage the cash register. They
may also assist with customer service and answer basic inquiries.
Kitchen Staff: If the coffee shop offers food items, there may be kitchen staff responsible for
food preparation, cooking, and ensuring food safety and quality.
Marketing and Sales: Depending on the size of the coffee shop, there may be individuals or a
team responsible for marketing and sales activities. They develop marketing strategies, promote
the coffee shop, and attract new customers.
Administrative Staff: Administrative staff handles various administrative tasks such as
scheduling, bookkeeping, payroll, and other administrative duties.
It's important to note that the organizational structure can be adjusted based on the specific needs
and goals of the coffee shop. For example, if the coffee shop has multiple locations, there may be
regional managers overseeing each location. Additionally, as the business grows, new roles and
positions may be added to support expansion and increased operations.
 5.3 RESOURCE PLAN FOR COFFEE SHOP IN ETHIOPIA

Resource plan is essential for the successful operation of a coffee shop in Ethiopia. Here are
some key resources to consider when creating a resource plan:
1. Coffee Beans: Ethiopia is known for its high-quality coffee beans, so it's crucial to establish
relationships with reliable coffee bean suppliers. Consider sourcing beans from local coffee
farmers or cooperatives to support the local economy and ensure freshness and authenticity.
2. Equipment: Invest in high-quality coffee brewing equipment, such as espresso machines,
grinders, brewers, and water filtration systems. Ensure that the equipment is suitable for the
volume of coffee you plan to serve and that it meets industry standards.
3. Staff: Hire and train skilled baristas who have a deep understanding of coffee preparation
techniques and can provide excellent customer service. Consider providing ongoing training and
development opportunities to keep your staff updated with the latest trends and techniques in the
coffee industry.
4. Ingredients and Supplies: Source high-quality ingredients such as milk, syrups, sweeteners,
and other flavorings. Additionally, stock up on other supplies like cups, lids, napkins, stirrers,
and cleaning materials to ensure smooth operations.
5. Furniture and Decor: Invest in comfortable and aesthetically pleasing furniture, including
tables, chairs, couches, and outdoor seating if applicable. Consider the overall theme and
ambiance of your coffee shop and choose decor that reflects the Ethiopian coffee culture.
6. Technology: Implement a point-of-sale system to streamline transactions, track sales, and
manage inventory. Consider using digital platforms for online ordering, reservations, and loyalty
programs to enhance customer experience and convenience.
7. Marketing and Advertising: Allocate resources for marketing and advertising initiatives to
promote your coffee shop. This may include social media campaigns, local advertising,
collaborations with influencers, and hosting events or workshops to engage with the community.
8. Financial Resources: Develop a financial plan to ensure you have the necessary capital to
cover startup costs, ongoing expenses, and unforeseen circumstances. Consider securing funding
through personal savings, loans, or partnerships.
9. Licensing and Permits: Allocate resources for obtaining the necessary licenses and permits
required to operate a coffee shop in Ethiopia. This may include health permits, business licenses,
and certifications related to food safety and quality.
10. Continuous Improvement: Allocate resources for continuous improvement initiatives, such
as customer feedback collection, market research, and staff training programs. Regularly assess
and adapt your resource plan to meet changing customer preferences and industry trends.
Remember, this resource plan is a general outline, and the specific requirements may vary
depending on the size, location, and concept of your coffee shop. It's important to tailor the plan
to meet the unique needs of your coffee shop and regularly review and adjust it as necessary.

5.4 Time Plan

1. Pre-Opening Phase:
 Research and develop a business plan: Several weeks to months
 Secure funding: Time may vary depending on the funding source
 Find a suitable location: Several weeks to months
 Obtain necessary permits and licenses: Time may vary depending on local regulations
 Develop a menu and source suppliers: Several weeks to months
 Hire and train staff: Several weeks to months
 Set up the coffee shop space: Several weeks to months
 Conduct a soft opening and test operations: 1-2 weeks
2. Opening Phase:

 Grand opening and marketing activities: 1-2 weeks

 Fine-tune operations and make adjustments based on customer feedback: Ongoing

3. Ongoing Operations:

 Daily operations, including coffee preparation, customer service, and inventory

management: Ongoing
 Regular staff training and development: Ongoing
 Marketing and advertising initiatives: Ongoing
 Continuous improvement and adaptation to changing customer preferences: Ongoing
 6. Financial Plan
Financial Projection: Based on our market research and projected sales, we estimate an initial
investment of [Amount] to establish the coffee house. We anticipate a steady growth in revenue,
with a projected return on investment within [Timeframe]. A detailed financial projection can be
provided upon request. When creating financial projections for a coffee shop business 1, there
are several key elements to consider. Here are some steps to help you develop your financial
projections:
Startup Costs: Estimate the initial costs required to start your coffee shop business. This can
include expenses such as equipment (espresso machine, coffee maker, coffee grinder, food
service equipment), furniture, renovations, permits and licenses, marketing, and initial inventory.
Revenue Forecast: Project your coffee shop's revenue based on factors such as the number of
customers, average transaction value, and sales volume. Consider market research, competition
analysis, and local demographics to estimate your potential customer base and sales.
Operating Expenses: Identify and estimate your ongoing operating expenses, including rent,
utilities, payroll, inventory, marketing, insurance, and other overhead costs. It's important to be
thorough and realistic in your estimations.

Profit and Loss Statement: Create a projected profit and loss statement (also known as an
income statement) that outlines your expected revenue, expenses, and net profit or loss over a
specific period 2, typically monthly or annually. This statement will help you assess the financial
viability of your coffee shop business.

Cash Flow Projection: Develop a cash flow projection that tracks the inflow and outflow of
cash in your business. This will help you understand when and how much cash you will have
available to cover expenses, pay bills, and invest in growth.

Break-Even Analysis: Determine the point at which your coffee shop's revenue will cover all
expenses and start generating profit. This break-even analysis will help you understand how
much sales volume you need to achieve profitability.

Financial Ratios: Calculate key financial ratios such as gross profit margin, net profit margin,
return on investment (ROI), and return on assets (ROA). These ratios will provide insights into
the financial health and performance of your coffee shop business.
 7. Conclusion
The conclusion for a coffee shop business in Ethiopia would depend on the specific analysis and
information provided. However, based on the search results, here are some key points that can be
included in a conclusion for a coffee shop business in Ethiopia:

Ethiopian Coffee Heritage: Ethiopia has a rich coffee heritage and is the birthplace of Coffea
arabica, the coffee plant. Ethiopian coffee beans offer a unique and delightful coffee experience
due to their distinct flavors and quality.

Growing Market: Coffee is important to the economy of Ethiopia 2, with around 60% of
foreign income coming from coffee 2. The country has a significant presence in the global coffee
market, accounting for approximately 3% of the market share.

Cultural Significance: Coffee has deep cultural significance in Ethiopia, with a long-standing
tradition of coffee consumption and rituals. This cultural connection can be leveraged to create
an authentic and immersive coffee shop experience for customers.

Economic Opportunities: Establishing a coffee shop business in Ethiopia can contribute to the
local economy by providing employment opportunities and supporting the livelihoods of coffee
producers and workers.

Market Potential: With a growing interest in specialty coffee and the global popularity of
Ethiopian coffee, there is potential for a coffee shop business in Ethiopia to attract both local
customers and international tourists.

Challenges and Risks: Like any business, there are risks and challenges associated with
operating a coffee shop in Ethiopia. These can include competition, changing customer
preferences, economic fluctuations, and regulatory requirements. It's important to conduct
thorough market research and develop a solid business plan to mitigate these risks.
In conclusion, starting a coffee shop business in Ethiopia can tap into the country's rich coffee
heritage 1, contribute to the local economy, and cater to the growing demand for specialty coffee.
However, careful planning, market analysis, and a focus on quality and authenticity are essential
for success in this competitive industry.