Case Study Of The Coffee Palace

3341 Words7 Pages
bulb-icon

Recommended: Starbucks business plan

1.0 Executive Summary
The Coffee Palace is a specialty beverage retailer. The Coffee store uses a system that is new to the beverage and food service industry to provide hot and cold beverages in a convenient and time efficient way. The Coffee Palace will be offering its patrons the finest hot and cold beverages, specializing in specialty coffees and other custom drinks. In addition the new store will offer soft drinks, and other confections. Moreover the Coffee store will add beverages such as hot chocolate, frozen coffee among others.
The Coffee Palace will focus on two markets during its operation. First it will target daily commuters who travelling to and from work or those who are out for a drive. According to a Market Assessment Research 2013 by extension coffee shops, have become embedded in UK lifestyles, with many UK consumers drinking more than two cups of coffee every day. Moreover many high-street coffee shops are full from opening to close with long queues at peak time (Hacker, 2013).
The business also seeks to capture consumers or those in restricted environment or where refreshments stands are an integral part of the environment. One of the strategies the business will use to penetrate this markets will include deploying Drive- thru facilities and mobile cafes in the most logical and accessible locations. Moreover the Drive-thru facilities are designed to handle two-sided traffic and dispense customer designed , specially ordered cups of premium coffees in less time than required for a visit to the locally owned cafés
Barrow notes that Apart from providing a quality product and extensive menu of delicious products to ensure customer awareness and loyalty as well as good publicity coverage and me...

... middle of paper ...

...ted to be self-sustaining after the initial investment and start-up costs are covered. Benedict and Elliot(2011 )
The Coffee Palace anticipates no cash flow pitfalls for the first year and beyond after making an assumption the initial investment and financing would include operating cost. July and August are considered the greatest cash drains, since the Coffee Palace will be experiencing the cost of Second drive thru and mobile unit start-up.
7.7 Projected Balance Sheet
The Coffee Palace projected balance sheet shows an increase in net worth in 2015, at which point it expects to be making 11.96% after-tax profit on sales. With these present financial projections, the company expects to build a company with strong profit potential, and a reliable balance sheet that will be asset heavy and sustain the cash projection by the end of the third year as seen in appendix 8

Show More
Related

  • Case Assignment 1: Amsterdam Brewery: An Introduction To Marketing Tactics?

    2220 Words  | 5 Pages

    5.6% short of EBITA goal (9.4% out of goal of 15%). This comes from capital spent on relocation and the opening of the Brewhouse in 2013 (Furgiuele, 2015, p. 15). This is also linked to the second issue of not meeting market demand, which is affecting their profitability.

    Read More

  • Btec Business Level 3 Unit 2 D2

    478 Words  | 1 Pages

    I feel I have achieved this as I have carried out market research along with studying secondary data that proves there is a gap to be exploited. However my market research could have been improved. If I were to carry out the market research again I would improve studying better secondary data, as the secondary data I have studied is not accurate and not relatable to my business. I would look at profit levels in the first 12 months for 5 coffee shops that have just started. I would take the mean profit level and make this my target. By being able to compare to other smaller business that have just started I can see if I am spending too much on materials and if I am I can manage spending to meet my budget. This will also give me more money to be spent in other areas of the business and also more time to look at the wants and needs of the customers and to my best to meet them

    Read More

  • Oscar Mayer

    1040 Words  | 3 Pages

    One of the key issues faced by McGraw is that there is a large gap between his projections for next year, and what the manager’s are promising him . His goal is to obtain a 15% increase in the operating income from his division (OM, LR and NP). The managers are projecting a decrease of 5.2% from the current year. In absolute terms there is a gap of $27 MM in the projected divisions operating income.

    Read More

  • Tim’s Coffee Shoppe

    2060 Words  | 5 Pages

    Tim’s Coffee Shoppe is a well established business that has been running as a sole proprietorship for over 30 years. The business needs to improve on its management strategy in order to perform optimally in its present environment. The purpose of this paper is to provide the owner Tim with suggested improvements on managing the human as well as financial resources of the coffee shop so as to remain competitive and increase profits. The Coffee house is conveniently located close to several metro stations, ensuring a steady flow of traffic. It is also situated near a University, presenting the business with a steady clientele of college students. The business is facing stiff competition from Queequeg’s coffee with 7 shops located near Tim’s. However, the restaurant seems able to hold on to its market share judging from the reported sales revenue of $ 400,000, and increasing sales. The Shoppe recently underwent a remodeling of its interiors and exteriors, and has purchased several new equipment including computers and a freezer. Tim’s is however facing challenges in staff management.

    Read More

  • Beans to a Cup: The Commodity Chain of a Cup of Coffee

    1269 Words  | 3 Pages

    Coffee is a growing part of people’s daily lives. Just before the 9-5 weekdays, and even during the 9-5, it is common for the working class to drink a cup of coffee. To support this accustomed part of our culture, it involves a complex supply chain that allows those coffee beans to turn into a cup that can be consumed. This paper is structured on how Starbucks, the top coffee supplier in the world, can supply its stores, from raw materials to manufacturing, right to the start of someone’s day.

    Read More

  • Mcdonalds Vs Starbucks Marketing Strategy

    872 Words  | 2 Pages

    Coffee, one of the world’s most known beverages. Seen being drinking at work places, colleges, or in the convenience of your own home. There are a variety of companies that provide us the people with coffee. It can be your local market, bakeries, or even fast food places. 3 places that stand out and our known very well for supplying Americans with coffee is Starbucks, Dunkin Donuts, and McDonald’s. From their strategic advertising, deals, and even straight down to the design of their cups, they meet the definition of marketing. We will be examining these 3 companies using the marketing mix which consist of product, price, place, promotion and also cover value based marketing and see how these companies meet these definitions and how they satisfy their customers as well.

    Read More

  • starbucks history

    642 Words  | 2 Pages

    For one of my selections for buying stock, I invested into Starbucks, this company has attracted me with their wonders of different coffees, and I knew many others were interested in the very popular coffee company. Starbucks all started 1971 in Seattle Washington. With three men which were Jerry Baldwin, Zev Siegel and Gordon Bowker each of them put in one thousand three hundred and fifty dollars along with a barrowed five thousand from the bank to start up there small coffee shop in pick place market, witch is located in down town Seattle. The name for this company was inspired from the character Starbuck from Moby Dick; this character was a coffee lover. There close friend designed there well known logo. These men never thought of this small company to get large they just thought of it as a small coffee shop. Out of all three men Siegel was the only one that work at it full time. The men depened on a man named Alfred Peet for there coffee beans but soon then started there own blends of coffee beans. With in a year opening the first store they were able to open a second store. When the 1980’s rolled around, it was a thriving company, in the Seattle area. However, the co-founders began to have other interests and were involved in other careers simultaneously. Despite that, the company was about to undergo a major turning point. A man by the name of Howard Schultz started to pursue an interest in the company. He noticed that the coffee shop had a wonderful environment. He started asking a questions and becoming more and more interested by every moment. He loved how the founders had so much knowledge on the coffee and each blend. In 1982, Schultz became director of retail operation. This was just the start to a new phase with the company.

    Read More

  • Ratio Analysis Of Starbucks

    1252 Words  | 3 Pages

    As shown in this exhibit Dunkin Brand Group currently has $3,177,383,000 in total assets; $2,809,424,000 in total liabilities; and $367,959,000 in shareholder’s equity. Starbucks has total assets of $12,446,100,000; $6,628,100,000 in total liabilities; and $5,818,000,000 in shareholder’s equity. McDonald’s has the highest total assets as well as total liabilities and shareholder’s equity of the three competitors. The company 's total assets of $34,281,400,000; $21,428,000,000 in total liabilities; and $12,853,400,000 in shareholder’s equity. The balance sheet is a financial statement that is used to report the financial position of a company in its fiscal year. With these three competitors, it is clear that McDonald 's is the largest of the three and has both the most assets and

    Read More

  • Starbucks Environmental Scan

    1125 Words  | 3 Pages

    Starbucks is a company in which purchases and roasts high quality whole bean coffees and sells them along with fresh, rich-brewed, Italian style espresso beverages, a variety of pastries and confections, and coffee-related accessories and equipment (starbucks.com). During my environmental scan in which took place at the Starbucks on the corner of Fair and Newport across the street from vanguard, I noticed many things in which where never brought to my attention in prior stays and visits at Starbucks; such as the many social groups in which choose to have their meetings at Starbucks. Thus in this essay we will discuss things in which many people do not really notice when going to Starbucks.

    Read More

  • Analysis of Illy Coffé Company Expansion in International Countries

    1950 Words  | 4 Pages

    The core business of “Illy Coffé” group is in the food industry, specifically in the coffee sector (detailed profile information can be found in the appendix). The major part of sales 88% (Prospectus, 2012) are concentrated on products based on coffee; furthermore, this sector is characterized for a strong dependence on price, strong competition, dependence of customer´s preferences and, economic factors (GDP, inflation, etc.); in fact, these characteristics denote a high risk of reduction of sales or profitability due to changes in customer demands, preferences or volatility of production costs.

    Read More

  • Starbucks

    1328 Words  | 3 Pages

    Starbucks is currently the industry leader in specialty coffee. They purchased more high quality coffee beans than anyone else in the world and keep in good standings with the producers to ensure they get the best beans. Getting the best beans is only the first part, Starbucks also has a “closed loop system” that protects the beans from oxygen immediately after roasting to the time of packaging. They did this through their invention of a one-way valve which let the natural gasses escape but keeping oxygen out. This gave them the unique ability to ensure freshness and extended the shelf life to 26 weeks. Starbucks isn’t only about the coffee, it’s also about a place where people can escape to enjoy music, reflect, read, or just chat. It is a total coffee experience. The retail outlet has been responsible for much of Starbucks growth and has contributed substantially to their brand equity.

    Read More

  • Swot Analysis For Rooms For Dessert

    886 Words  | 2 Pages

    There is a larger number and types of entrants in the market Fine Dining Restaurants-Casual Dining Restaurants-Quick- Service Restaurants. Landscape of primary location is also a threat; there is a lack of customer parking which could possibly result in lower numbers of customers. Climate may also affect the businesses in general, low peak season and bad weather can cause problems for the business market if bad weather is expected, customers are more reluctant to go outside if not necessary. Potential entrants and encroaching concepts are also a concern due to factors such as low consumer switching and brand not being well known. Cost is also a threat although the primary target market is higher-wage earners consumers with less income will not frequent Rooms for Dessert they will seek substitute

    Read More

  • Starbucks: A business model for success now and in the future

    1470 Words  | 3 Pages

    Koehn, N.F., Besharov, M.A., & Miller, K. (2008). Starbucks Coffee Company in the 21st Century. [Case study]. Boston, MA: Harvard Business School Publishing.

    Read More

  • Starbucks Case Study

    1287 Words  | 3 Pages

    Preliminary Starbucks – one of the fastest growing companies in the US and in the world - has built its position on the market by connecting with its customers, and creating a “third place” beside home and work, where people can relax and enjoy themselves. It was the motto of Starbucks’ owner Howard Schultz and, mostly thanks to his philosophy, the company has become the biggest coffee drink retailer in the world. However, within the new customer satisfaction report, there are shown some concerns, that the company has lost the connection with customers and it must be taken some steps to help Starbucks to go back on the right path regarding customer satisfaction. I will briefly summarize and examine issues facing Starbucks. Starting from there, I will pick the most important issue and study it from different positions.

    Read More

  • My Observation Of A Coffee Shop

    1294 Words  | 3 Pages

    The coffee shop I decided to do my observation was the well known Starbucks just a couple blocks away. The reason I chose this coffee shop was because of it 's style inside, it attracted me. For example, one side of the wall has a glass top, and the lower part of the wall, made of wood and painted in a bright red color, which was one thing that attracted me and stood out. Outside of the shop people can actually see through the glass wall and get to see what’s happening inside of the coffeeshop. By the entrance you see these two red ceiling lamps which were shaped in a flower bud and these two tall green plants. Once you were in, on the right of the shop there was a counter with food and things to put in your drinks such as milk, sugar, chocolate, etc and the colors and how the food was displayed and served was appealing to my eyes. Behind that counter there was a long table with different electronic devices plugged into the wall. On the middle of the those there is a fridge just for ice and when I turned to the other side and I noticed a big menu on the wall. Further more into the shop, there was an area filled with tables, chairs, and sofas. The tables were in different shapes, one was round and the others rectangular, also there was four bamboo baskets and I looked around and noticed that the walls in that area were decorated with paintings.

    Read More

More about Case Study Of The Coffee Palace

Open Document