Hot & Cold Business Plan
Essay Preview: Hot & Cold Business Plan
Report this essay
Description of venture:
Hot & Cold (H&C) is not only an excellent choice in high quality baked goods and ice creams that taste like grandma use to make it, it also serves specialty beverages, served by qualified baristas. Each beverage will be tailored to the customers desires so that customer satisfaction, one of H&Cs highest priorities, will be met and exceeded. Ice cream and baked goods will also have the option of being modified by having the option to include fudge, peanut better or caramel toppings, crushed nuts, cookie chunks, frosting dipping-sauces and many other tasty additions to the order.
Specially blended and freshly brewed drinks, along with H&Cs delicious pastries and ice cream, will be served promptly to ensure our customers, many with busy schedules, are never inconvinced. H&C will provide a haven from the rush of the daily world with comfortable couches and chairs, as well as booths to stretch out in all next to cozy fireplaces. There will also be computers available with Internet access and printers.
Hot & Cold is a quiet, comfortable and safe place to enjoy quality pastries, coffee and ice cream around the clock. Open twenty-two hours a day, it will provide the residents of Wichita a great alternative to fast food during the late night hours, and a friendly and calming environment for our customers to take pleasure in during their hurried day.
The start up price for an average coffee shop is about 160,000 dollars. I will plan on taking out loans and collecting money from family and friends. The company, if all profits were invested, should reach its breakeven point after one and a half years of being in business. If our growth is quicker than predicted we could reach it in a year. (The newest Starbucks reached their breakeven point in their third quarter of being open for business, so obviously Wichita is ready for more coffee shops.)
To help create this environment, H&C will have a two-partner leadership team. Jennifer Koftan will be in charge of marketing and maintaining the highest quality of service and food/beverages. I feel qualified to perform this task because I have had years of experience marketing for events as well as the ability to motivate people to execute their positions in a respectful and timely way. I have had a great deal of training in customer service and working in environments that encourage a calming but productive atmosphere. Being a college student who will be majoring in Psychology with minors in Business Communication and Sociology, I will be able to exploit my knowledge of how people interact and what needs must be satisfied for a happy and healthy lifestyle.
My experience in public relations will be invaluable to this company and my ties and loyalty to the community and its young people will foster the atmosphere that I wish to create not only for my customers but also my staff.
The qualifications my partner must meet will mainly satisfy the financial side of the business. They must have experience leading and motivating groups of people in the work places previous to their employment at H&C, a firm understanding about the legalities regarding small businesses and the financial situations that may be experienced, and finally a friendly, honest and easy to work with attitude what recognizes the vision of the company and whose expectation are inline with my own for the future of H&C.
The employees will be able to work in three shifts, morning (four-twelve), day (twelve- nine) and night (nine- two). During the night shift, one will cover the counter and the other will bake the good for the next day in the kitchen to maintain freshness and quality. The hours that there will not be anyone working will be from two to four in the morning.
Hot & Cold will be formed around the following principles and will not take any actions to jeopardize the integrity of the mission:
Dedication and Quality: Hot & Cold is firmly dedicated to providing quality service as well as excellent baked goods, ice cream and coffee.
Focused and Timely: Our focus will be on the comfort and safety of our customers. All of our products will be served in a timely and efficient manner.
Friends and Community: The Hot & Cold staff will always go out of their way to maintain a friendly and relaxing atmosphere. We will be involved in the community by supporting local events, artists and musicians, providing free coffee to Wichitas EMS, fire and police forces and by donating five percent of our profits to local charities.
In the U.S. sales are looking good for the food industry regarding coffee, baked goods and ice cream. People are ready to go out and spend money on these luxury items. However, it is also important to note that there are slow seasons in the coffee house industry. These months are generally from February till June in Kansas, but then business picks back up. Local shops seem to think this slow period is due to the weather and diet patterns. During these months the weather is not hot enough for frozen drinks or ice cream but also not cold enough to want a drink that will warm them up. Also, after the holiday season, people are paying more attention to their figures and their pocket books. After a few months however, people return to their normal patterns.
Some statistical data for industry trends are as follows for ice cream:
Total U.S. production of ice cream and related frozen desserts in 2004 amounted to about 1.6 billion gallons, translating to about 21.5 quarts per person. Source: U.S. Department of Agriculture (USDA)
In 2002*, total U.S. sales of ice cream and frozen desserts reached $20.5 billion. Of that total, $8.1 billion was spent on products for “at home” consumption, while $12.5 billion was spent on “away from home” frozen dessert purchases (scoop shops, foodservice and other retail sales outlets.) Source: 2004 Dairy Facts/International Ice Cream Association
Statistical data for industry trends are as follows for baked goods:
According to data obtained from the market research company Information Resources Inc., donut sales increased 7.9% to $776 million for the 52 weeks that ended July 11, 2004.
Sales for Pastry/Danish/Coffeecakes, English Muffins and Muffins all posted sale decreases for the same time period. Bagels/Bialys increased 0.4% to almost $423