PARADISE CAFE
Proposed Business plan
BY Hanan Getachew
COMPANY DESCRIPTION
• This is a business plan proposal for the establishment of cafe having the name “paradise café” in Hawassa. The
name paradise shows the pleasant feeling we will experience from the services, the café provides. This profile
envisages the establishment of a cafe for the delivery of cafeteria services. The cafe will expect to create
employment opportunities for 14 persons.
• The paradise Café will be located at piasa Main Street, argri campus road, with seating for around 50
customers.
• Paradise café is a new café partnership with an expected to open in November, 2018E.C at the heart of Hawassa,
and expected to give a standardize café service in Hawassa. Paradise will specialize in Fast foods, Dinners,
Coffee, Tea, Cappuccino, Frozen, Ice-cream, homemade cookies and other related activities.
.
TARGET MARKET…
Local Residents & Workers -
Small ads will be placed weekly in the dining section of the local newspaper. Specials will be promoted with an A-frame
sign and, during slow periods, coupons and “2-for-1” deals will be offered.
Take-out will be attractively boxed and given equal priority to sit-down services.
Tourists - Menus will be distributed to the local lodging establishments to encourage their guests to come to the Café.
•Advertisements and listings will be placed in statewide and regional tourist guides and publications. Menus will also be
placed at information booths and other spots likely to have tourist traffic.
Other –Agri campus Community College is nearby. Students there are likely to visit paradise Café on the weekends, on very
nice days and during their holiday periods. Flyers will be distributed on campus during those times, offering the students a
percentage discount on certain meals and during certain times
BENEFITS OF PARADISE CAFE
Increase the income of the owner
It create employment opportunity
It satisfy the need of the customer(quality and quantity) within a reasonable price
It provide better place for younger’s in spending their time.
It contributes for the development of the surrounding area.
Increasing government revenue through taxation (Business profit tax and VAT).
In general these business increases the welfare of society and this business does not result any environmental
pollution, since it have very low by- product and if any (is use as food for cattle’s especially for pig farms).
2. MARKET RESEARCH
•In Hawassa there are many cafe that give services to their customers but they cannot still satisfy the need and
want of the customer in terms of both quality and quantity.
• In order to maximize customer satisfaction so that Paradise decide to open a café in Hawassa city.
•Paradise target customers are intellectuals, artists, and writers with reserved VIP seats, and students, couples,
families and foreigners. Paradise café expected to serve this area well. .
•Establishing this cafe has beneficiary in maximizing the wellbeing of the society from different perspective
DESCRIPTION OF KEY COMPETITORS
•Of the few cafeterias in the area, some are large chain with a very expensive product, others are really home style
cafeterias, the last one, and competitors are a traditional store with a "tea room".
•Paradise Located in the heart of Hawassa, while its location near many longstanding restaurants and
cafeteria would seem to offer considerable overflow, the café is easily seen from the street and parking is
at a premium
MARKET STRATEGIES
•Paradise cafe will become the foremost coffee shop in the area. We will serve a perfect product at a very
reasonable price. We will also be a meeting place for every individual that want to use cafeteria service.
Paradise will create an atmosphere conducive to creative expression and promote the creative process.
•The cafe's aim is simple. It will provide a completely sophisticated, sensual, yet casual dining and/or coffee
house experience for the many hawassa people and visitors who frequent the city's casual dining spots and
entertainment venues.
.MARKETING PLAN AND GOAL
•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: Paradise 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: Paradise 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: Paradise 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.
5. The greatest locations - visibility, high traffic pattern, convenient access.
6. The finest reputation - word-of-mouth advertising, promotion of our community mission of charitable giving.
Within the next three to five years we expect to branch out into catering and offer homemade pies, whole or by the slice.
4. PRODUCT AND SERVICES
•All drinks will be made with filtered water and the highest quality ingredients can get.
•Frozen drinks will have caramel or chocolate syrup drizzled in the glass and over the drink.
•Cappuccino will have whipped cream toppings as well as the option for candy sprinkles. Cookies will have the option of a
chocolate or caramel dip and sprinkles.
•also offer designer flavored cream and five kinds of sweetener, i.e. sugar, honey, Equal, Splenda, and Sweet-n-Low. Cream and
sweetener is at no extra charge. Furthermore, the fast foods includes chips, cookies, Burger, pizza, Mushebek, Baklaba, Halawa,
Fetera, and dinner include Kitffo, Key Wott, Minchet.
.
. SWOT ANALYSIS
Strength
•Consider quality of food and service with a reasonable price, and its skilled manager together with its bright waiter can attract customers, so it has
acceptance (brand name) by the customer.
Treats
•Even if there is widely varying standards of food and service, they are often expensive which does not consider the buying capacity of the customers.
•Time cafe: Located on nearer to Hawassa at Piasa, this is a corporate coffeehouse which provides coffee, tea, cakes and sandwich service.
Opportunity
•This cafeteria has relatively many customers because of its good location.
•Often have interesting alternative dishes on the menu and designer décor. The evening atmosphere is also so attractive and suitable for customers.
Weakness
•The quality of the goods, not giving evening service and are not that much satisfactory beside the low price working capital situation is tight.
5. FINANCIAL PLAN
•Comparing with other competitive cafeterias we will provide fewer prices to our customers. Paradise will offer two sizes of drinks, small Birr 50 and large Birr 80.
Our cookies and brownies will sell for Birr 120.00 each
•In detail, The Start-Up Pricing Expenses Include:
LEGAL expenses for obtaining licenses and permits as well as the accounting services totaling Birr3,000
Marketing promotion expenses for the grand opening of in the amount of Birr5,000 and as well as flyer printing (1160 flyers at Birr 2 per copy) for the total
amount of Birr7320.
Consultant’s fees of Birr5, 000 paid for the help with setting up the coffee bar.
Insurance (general liability, workers' compensation and property casualty) coverage at a total premium of Birr4, 400.
Pre-paid rent expenses for one month total amount of Birr 30,400.
Premises remodeling in the amount of Birr19, 000.
Other start-up expenses including stationery (Birr1700) and phone and utility deposits (Birr 5,500).
5.1. SALES PROJECTION
• The most important indicators in our case are daily seating "counts" and weekly sales numbers. Also make sure
that we are turning our inventory rapidly so as to avoid food spoilage.
• Our project to perform at five years projects .
• from those out of which one would be a small scale and others would be of an intermediate implementation.
CASH REQUIREMENT
•The business at least needs 744,360.00 birr for business establishment, commencement of operations and liquidity
support. The shareholders will have equal share and business are obtained in two ways.
From shareholders 20% Financing of Paradise café
From Bank 80%
20%
Bank
Share holders
80%
TIMELINE
THE OPERATION OF THE PROJECT WILL START AT THE BEGINNING OF 2018 AFTER CERTAIN PRE- REQUEST ACTIVITIES ARE ACCOMPLISHED. THE TIME
SCHEDULE IS STATED AS FOLLOWS;
No Activities Time schedule
1 Developing the project Dec 1- jan25
2 Obtaining the license from concerned body Jan27- Feb 20
3 Purchase materials and renting the building Feb 21-May 10
4 Promotional activity May 12-June 16
5 Start running the business Nov 1 2018
THANK YOU
