Market Potential of the Sydney Snack and Coffee Bar

The business venture is a snack and coffee bar in Sydney. The bar will employ chefs with great experience in the coffee making industry to ensure total customer satisfaction. The bar will serve the customers with coffee and snacks ordered from a wide selection available in the menu. The bar will have a lounge with leather seats, screens and beautiful coffee tables where the customers’ seat. The lounge will also offer free WIFI for the customers and entertainment such as music and computer games.  Additionally, the lounge will show football all football matches from all the leagues to keep the customers entertained. The coffee bar will install coffee making machines at strategic points to allow the customers to make coffee while enjoying the various activities in the lounge. The beautiful lounge with entertainment will attract more customers who buy coffee and snacks thus increasing revenue (Juneja, 2018).

The coffee and snack bar will experience a wide market share in Sydney made up of students, the working class, football fans and the business people. Sydney enjoys a wide untapped business of people looking for high-class coffee bars that sell at affordable prices. Therefore, the coffee and snack bar will have many customers since most coffee shops in the town charge expensively. Furthermore, the business does coffee deliveries to events and offices, which allows tapping a wide market share for the business. The deliveries will also increase the sale units achieved in each period (Maloney, 2015). Likewise, the main selling point of the business, which includes the high-end lounge with leather seats and entertainment will attract many customers. The customers will come since most look for places to relax while taking coffee. Furthermore, featuring major sporting events in the coffee shop will attract many customers especially during the world cup.

The business requires 100,000 dollars to start and operate. The amounts will go towards the payment of various expenses that ensure the success of the business start and operations. The expenses include payment for operating licenses to the local government. The other expense will go towards the recruitment and training of employees to work at the business. Finally, the other expenses include the purchase of entertainment equipment such as the televisions, coffee tables and leather seats for the lounge. Other expenses will go towards the decoration of the lounge and the exterior appearance of the shop (Boag, 2018).

On the other hand, the financial projections show that the business will generate income from the sale of coffee and snacks. The coffee and snack bar will generate an approximate sales revenue of 800,000 dollars due to the high customer potential in Sydney town. However, the coffee and snack bar will have expenses such as salaries, repairs and income tax. The production expenses will amount to an approximate annual total of 200,000 dollars. The deduction of the expenses from the sales revenue will result in a gross profit of 600,000 dollars.

Business Funding and Revenue Projections

The coffee and snack bar will require the conduct of research into the various coffee brands available in the market. The aim of the research will include the discovery of a special taste of coffee to serve the customers (Grunig, 2013). The special brand and taste of coffee will enable the business to compete with other business in the market. Furthermore, the research will aim at developing the best ambience at the coffee shop to ensure customer comfort and satisfaction.

The business deals in the sale of coffee and snacks to the customers. The customers check the menus and inform the waiters about the choice of coffee and snack. The snacks include pancakes, cupcakes, muffins and buns. The customers wait for a maximum of ten minutes before receiving the order. Moreover, the does coffee and snacks delivery to customers’ homes, offices and places of business (Dobes, 2016).

The coffee and snack industry has enjoyed success over the years since most customers preferring to relax over a cup of coffee and snack. The customers include college students, business people and employees. The various persons have enabled the growth and development of the industry by increasing consumption (Gleeson, 2018). For example, the students like taking coffee in the morning before classes while the employed persons take coffee in the evening after work. The businesspersons also use the coffee places to discuss deals and sign contracts.

The business has the potential of generating huge profits monthly by increasing the customers who visit the place (Juneja, 2018). The potential of generating huge profits is supported by the many coffee and snack customers available in Sydney. On the other hand, the business has the goal of becoming the leading coffee business in the industry. The goal will require beating the competition available in the market, which the business will easily do with the affordable prices offered. The business will increase the sales units by charging low prices for similar coffee and snacks services offered by competitors (Mandviwalla, 2015). The business has achieved the milestone of serving the customers with unique coffee tastes and snacks.

Moreover, the business has managed to capture qualified and experienced chefs who make sweet coffee and snacks. On the other hand, the coffee and snack bar will provide unique coffee made from the rare brands of coffee in the market. Moreover, the business has experienced chefs who understand the unique tastes of snacks required by the customers.

Specializing in Unique Coffee Brands and Unique Ambience

The business targets a market segment made up of college students, business people and the employed. The groups make a wide market for the coffee and snacks business and could result in the achievement of the projected sales (Dobes, 2016). Sydney promises the many customers due the many colleges, businesses and companies available. The schools increase the student customers while the businesses and companies increase the workers and business people clientele. Therefore, the business has a great opportunity of making great sales and earn the projected revenues (Olsen, 2018). The business will also have the ability to beat the competition in the market by selling the coffee and snacks at affordable prices. The low prices will attract students who make up a huge market share in the market.

The business faces stiff competition from other local coffee shops and global brands such as Starbucks. The other coffee sellers especially Starbucks poses competition to the business due to the ability to sell coffee at low prices, which attracts customers (Suzanne de Treville, 2016). However, the business has a marketing strategy that will enable market penetration. The business will engage the low pricing strategy to enable market penetration. The low and favourable prices charged for high-quality coffee and snacks will attract the customers.

The business will also adopt a pricing policy that will ensure selling the coffee and snacks at prices lower than the competitors (Perks, 2017). The business will continuously collect market price information and set prices at a lower cost than other coffee sellers. Additionally, the business will use social media advertising to inform the customers about the products. The social media marketing will take place through the bar’s Facebook, Instagram and Twitter pages.

The business will engage coffee experts in the research for rare coffee brands both in the local and global markets (Smet, 2018). The researchers will come up with the best brands and tastes of coffee in the market to increase customer satisfaction. Furthermore, the business will engage in research to develop a unique and different brand of coffee that competitors cannot imitate.

The coffee and snack bar is located in the heart of Sydney. The location allows the business to easily access highly qualified and trained experts to work in the coffee and snacks sections (Weber Mark, 2012). Sydney has a wide pool of experts who come to the town to look for jobs. However, the employees charge high wages due to the urban nature of the town.  The business does not feel the effects of the high wages since the employees will produce high-quality output that increases the sales revenues. Moreover, the town also has a good supply of inputs due to the availability of markets where customers bring produce. The suppliers also feel comfortable supplying produce to Sydney thus allowing the business to receive the required inputs.

Wide Menu Selections and Coffee and Snack Deliveries

Furthermore, the town has many potential customers due to the businesses, companies and colleges available. Therefore, the business has the ability to acquire a wide market share from the potential customers. On the other hand, the business has community support since the products are legal and fit for human consumption. Additionally, the bar provides employment opportunities for the community (Nigel Slack, 2013).

The business will employ various experts to work in the managerial ranks and customer services delivery. The various key personnel will include the general manager who has the responsibility of accounts auditing, procurement and recruitment of employees.  The general manager should have pursued a business course and have experience in organisational management (Gleeson, 2018).

Furthermore, the bar will employ an operations supervisor who will conduct internal operations audit and daily management. The operations supervisor should have a background in operations management and auditing to enable proper management. The business also requires waiters and chefs to serve the customers and prepare the coffee and snacks. The chefs and waiters should have a background in food and beverage and adequate experience in hospitality (Griffin, 2018).

The role of the entrepreneurs include providing capital for the business and performing all the necessary actions to start the business (Gleeson, 2018). Additionally, the entrepreneurs will perform employee sourcing activities to ensure the involvement of experts in business commencement. The entrepreneurs also develop the operations blueprint for the business to follow in the service delivery. 

The business faces various risks that could hinder the successful operations. The business faces the risk of inadequate capital to begin the operations and acquire assets (Cole-Ingait, 2018). The risk is present since the lenders may fail to invest in the business or offer fewer amounts than required. Therefore, the business will fail to achieve the total target required to launch the business. On the other side, the business faces the risk of not meeting the customer requirements. The risk could arise from the inability to identify the exact customer tastes and preferences in the coffee and snack market. Therefore, the failure could cause the risk of customer loss due to dissatisfaction. (Brockett, 2012).

The coffee and snack bar will employ an exit strategy that will focus towards the increase of outlets and strengthening the brand name. The business will engage in marketing to ensure a strong brand equity (Brockett, 2012). The brand equity will win market share and beat the competition for the business without having to invest in marketing. Finally, the business will open up many outlets in Australia to reach wider markets and increase the sales revenues.

References

Boag, P. (2018). Customer Journey Mapping: Everything You Need to Know. Retrieved May 14, 2018, from https:www.sailthru.com

Brockett, C. &. (2012). Enterprise Risk Management Through Strategic Allocation of Capital. The Journal of Risk and Insurance. 79(1), 29-55. Retrieved from https://www.jstor.org/stable/41350678

Cole-Ingait, P. (2018). The Socioeconomic Factors Affecting Small Businesses. Retrieved from Chron: www.smallbusiness.chron.com

Dobes, L. (2016). Preparing to Approach the Market. In managing Consultants: A practical Guide for Busy Public Sector Managers. Australia: ANU Press. Retrieved from Management Study Guide: https://www.jstor.org/stable/j.ctt1rrd7jr.10.

Gleeson, A. (2018). Examples of Well-Known Business Models. Retrieved May 14, 2018, from articles.bplans.co.uk

Griffin, D. (2018). Types of Employees Appraisal Systems. Retrieved from Chron: smallbusiness.chron.com

Grunig, J. (2013). Excellence Theory. Retrieved from Excellence Theory Website: https://excellencetheory.wordpress.com

Juneja, (2018). Management Study Guide. Retrieved from Management Study Guide Website: https://www.managementstudyguide.com

Maloney, J. (2015). Entrepreneur. Retrieved from Entrepreneur Website: https://www.entrepreneur.com

Mandviwalla, M. (2015). Fox School of Business. Retrieved from Fox School of Buisness Website: https://www.community.mis.temple.edu

Nigel Slack, A. B.-J. (2013). Operations Management (7 ed.). Madrid, Spain: Pearson. Retrieved from https://www.pdfdrive.net/operations-management-e19944602.html

Olsen, E. (2018). Strategic Implementation. Retrieved from On Strategy Website: https://www.onstrategyhq.com

Perks, R. (2017). Quality Control Systems and Customer Satisfaction. Retrieved April 21, 2018, from Uk Essays: acdemic.mintel.com

Smet, A. D. (2018). The Agile Manager. McKinsey Quarterly China. Retrieved from https://www.mckinsey.com/insights/china

Suzanne de Treville, T. B. (2016). Journal of Operations Management. Elsevier. Retrieved from https://www.elsevier.com/wps/find/journaldescription.cws_home/523929/description#description

Weber Mark, W. F. (2012). Social Innovation and Social Enterprise in the Classroom: Frances Westley on Bringing Clarity and Rigor to Program Design. 11(3). Retrieved from https://www.jstor.org/sta