This is an example of a completed business plan for a café, specialized to operate with a franchised boutique ice cream parlor concept, addressing a target group of high income sophisticated consumers with very distinguished products that are prepared with original Italian knowhow. There are already existing corresponding ice cream parlors in several European and overseas countries. The selected location here is Frankfurt, Germany, which we consider a perfect location for such an upscale franchise.
The founder/franchisee is a first-time entrepreneur with limited equity, but with meaningful experience in a related niche and standing partnerships to take advantage of. Unfortunately, the funding ultimately failed due to unsatisfying performance of the founders during the credit interviews, considering there were no securities the founders could use to back their loan.
The business plan elaborates on crucial points like the restaurant concept (the product and its varieties, USP, Vision and Mission), provides a brief overview of the market situation, location and competition as well as a risk analysis. It also gives information regarding potential business partners, the marketing plan, the venue organization and financing.
The financing of a business is an important issue, and being able to present an appropriate and convincing business plan to banks and/or potential investors is a prerequisite for obtaining such financing.
The Sample Cafe Business Plan is an elite ice cream parlor chain with parlors in XX countries, including Italy, France, Germany (X), England, Spain, Portugal, Belgium, Morocco, Malta, Saudi Arabia, and the USA. The products are prepared with authentic Italian know-how and served in elegant and refined ambience.
Thanks to its original ideas, the Sample ice cream parlor is in the process of firmly establishing itself as a brand. There is currently no such ice cream parlor in Frankfurt, although the city is the perfect location for such a business.
The most important elements of the parlor’s concept are exclusivity, product variety, an appealing interior design, outstanding international presence and particularly good organization of the franchisor in terms of the division of areas, attaining suitable property and training new café managers.
The founder, Mr. [Sample Cafe Business Plan], is able to take over all the activities to set up the establishment independently as a franchisee. He has studied retail trade in Germany, has worked in warehouse logistics and project management and has very good knowledge of German.
The most important product is, of course, the ice cream. There are both classic and exotic flavors. The picture below illustrates the variety:
Image 1: The choice of ice cream flavours
Sample Cafe Business Plan’s distinctive speciality is presenting the ice cream in flower shapes.
Sample Cafe Business Plan is the only ice cream parlor that manages to achieve such a presentation in many countries. Specifically the ice cream cakes in flower shapes are very popular with upscale clientele, making a supreme gift on special occasions.
Image 2: An artistic product display is among Sample Cafe Business Plan’s specialties
All the ice creams are made from natural ingredients, no artificial coloring or flavor enhancers are used. Some products are organically farmed. All ingredients boast the highest quality. The ice cream products account for approximately XX% of revenues, and XX% is accounted for by the following products:
Waffles and crêpes
A complete selection of Italian coffees, homemade
Cakes and special bakery products (also with filling)
Frappe and fruit smoothies
Selection of XX flavors of hot chocolate, which is served as a thick chocolate sauce
Selection of XX fine teas
Ice cream cakes to go
Sample Cafe Business Plan offers a full selection of the best ice cream, presented tastefully and served alongside a selection of culinary products with authentic Italian flair. The entire product range is appreciated especially by an upscale clientele, and the time they spend in the parlor is relatively long.
Unique Selling Points
The Sample Cafe Business Plan and ice cream boutique must first establish itself locally and distinguish itself from the other ice cream parlors in the area. Only the best locations are chosen by the franchisors, but gastronomy is still a highly competitive industry. Companies that don’t aim for one hundred percent often disappear after a few months. Mr. [Sample Cafe Business Plan] will personally stand behind the counter unlike with many other competitors, where often less competent and relatively unmotivated employees are driving the sales. The competition will not stand a chance in terms of organization, being supported by the franchisor and know-how manuals.
Attaining a significant customer base and possibly developing further business and advertising partnerships are important components of the overall business strategy. The founder expects that his personal expertise and focus will be the decisive reason for the ice cream parlor to become a hot spot in the area. To meet this goal, he will take time for each customer and give each customer the impression that he is receiving incredibly competent services by providing specific knowledge (ex. ingredients, recommendations etc) at all times.
The goal of the Sample Cafe Business Plan is to become a hot spot for an authentic Italian ice cream experience. Clients should be convinced of the service quality and product range so they’ll think of this place every time when they want to go out or have a rendezvous planned.
In the first three years only the manager and two full-time employees will work in the café, and one or two temps in the summer months. Annual turnover in the third year should be in the range of XXX,XXX Euro. In the fourth or fifth year another full-time employee may be hired and turnover is expected to reach one million Euro by creating a loyal customer base that will also recommend the café to other potential clients.
We need to look at the consumer climate in Germany in general, the retail market in Frankfurt and the development of the confectionery industry to assess Sample Cafe Business Plan’s market entry prospects accurately. The local competition and the advantages of the location are considered further in the business plan in more detail.
Consumers demonstrated optimism in XXXX, and the already positive sentiment continued to improve. The economic and income expectations as well as the propensity to buy are at a high. The dramatic drop in energy prices in XXXX boosted disposable income and gave consumer more wiggle room in XXXX. The German economy is also improving after the downturn in the fall of XXXX. Since the propensity to save slipped to a new record low in January XXXX with low interest rates and bank mistrust, consumers are choosing to spend their money instead. The following chart illustrates this trend.
Consumer Climate in Germany
Source: Statista, ifo-Konsumklimaindex
In the late summer and autumn of last year there was a downturn due to the global economic crisis, but the economy regained stability at the end of the year. The Federal Statistical Office reported recently that the gross domestic product rose at the end of XXXX again. The economic growth was X.X% for the entire year. The rather wary expectations were slightly exceeded.
Consumers expect that the German economy will develop favorably in the coming months. It should be clear that dramatically lower energy prices play an important role. Low energy prices combined with a significant depreciation of the euro should act as a stimulus package for investment and exports. German companies are becoming more optimistic about the economic outlook, as the high Ifo Institute of Economic Research business climate index level shows.
After a noticeable slump in the second half of XXXX, income outlooks improved again in the first half of XXXX. A major reason for the very good income expectations, apart from the stable employment rate, is definitely the recent inflation drop in Germany. The Federal Statistical Office set the inflation rate at X.X% in XXXX. A lower value was last measured in XXXX during the recession – X.X%.
As before, Frankfurt is one of the leading retail locations in Germany, according to the assessment of well-known real estate consulting companies. In prime central locations the rent is up to XXX Euro / m² (XXXX) on average. This dominant position is derived from important economic conditions: Frankfurt has a low unemployment rate; in XXXX the average per capita purchasing power was XX XXX Euro, equivalent to a purchasing power index of XXX. Sales prospects improve with the extremely wealthy towns of Bad Homburg, Königstein, Kronberg, and Bad Soden and a number of other cities whose inhabitants enjoy above-average buying power. All these factors help Frankfurt generate additional revenue. Tourists contribute decisively to the high retail sales in Frankfurt, especially those from China and Arab countries.
We will now move on to the general market climate in the ice cream industry. In explaining the existing trends, it must be noted that Sample Cafe Business Plan operates in the field of organically grown products, and therefore tends to be benefited from the strong growth of the organic sector. There is no data available on the very special market segment of bio confectionery so far.
In XXXX the production of the general confectionery industry in Germany, which employs just over XX XXX people, rose by around X.X% to nearly X million tons. At the same time the turnover was only XX.XX billion Euro, which is down by X% y/y. Almost half of the products are exported. As for the domestic supply, the decline is even more pronounced: it dropped by X.X% to X.X billion Euro. The following diagram illustrates the trend:
Ice cream consumption per person in liters
Source: German Confectionery Industry Association, 2015 Market Report
In XXXX every German consumed an average of X.X liters of ice cream. The value has dropped by almost X% since XXXX, when it was X.X liters. However, consumption of ice cream is obviously related to the weather. Significantly more ice cream was consumed in the summer of XXXX than in other years. Moreover, the sales of commercial producers, to which group Sample Cafe Business Plan belongs, also seem to increase (except for a slump of X.X liters in XXXX).
The entire confectionery industry is currently in a historically significant stagnation because of consumers’ increased health awareness. The following graphs illustrate this development
Turnover of the German confectionery industry from 1962 to 2014 (in billion of Euro)
Source: Statista 2015
The statistics show the turnover of the German confectionery industry from XXXX to XXXX. The industry is comprised of manufacturers of sweets, biscuits and ice cream. The tendencies of spending on advertising speak for themselves. First, the manufacturers were trying to achieve sales growth by advertising more aggressively. Then it seems they realized the preferences of German consumers are the reason for the decline, which cannot be remedied only by a higher advertising budget.
Advertising costs for candy products in Germany from 2000 to 2014 (in billion of Euro)
Quelle: Statista 2015
The dynamic development of franchise concepts, such as McDonalds, or the huge success of chains such as Starbucks or Vaipiano shows consumers will continue to frequent such establishments in the future despite the growing aversion to unhealthy food cafes like the Sample Ice Café. Furthermore, the viral issue of organically grown foods replacing artificial ingredients will work in our favor.
The overall results of the market review from different perspectives form a positive outlook where the Sample Ice Café’s plans are concerned. Customers will most probably appreciate the product variety offered at the café and take advantage of the trend. Every satisfied, loyal customer will recommend the spot to someone else and word-of-mouth will generate a growing customer base that will in turn provide a reliable source of revenue for the Sample Cafe Business Plan.
Frankfurt am Main is home to an affluent population, and also profits greatly from tourism thanks to the numerous local events and the unique skyline.
The founder chose Bockenheim as the location of the café. Bockenheim is centrally located and accessible to affluent customers in the west end who could afford regular visits to the Sample Cafe Business Plan. At the same time, the rents for premises are relatively affordable. Plans are to look for a suitable property around the Leipziger Straße. The founder and the franchisor are looking for a suitable restaurant with seating.
Cafe Business Plan Sample: Competition Analysis
The Sample Cafe Business Plan will have to deal with significant competition no matter its location – there will always be a lot of other ice cream parlors and cafes in the area. These don’t actually have a special product focus and couldn’t offer the same special product variety the Sample Ice Café does without incurring major costs. Often the service is neither personalized nor especially competent.
As in most industries, three factors make the difference between success and failure of start-ups: quality, price and marketing. The restaurant will not allow any shortfalls in these areas and turn special attention to the communication with the client. Customers expect high-quality service at a top-end ice cream parlor with Italian specialties. This is why the founder himself should be right behind the counter. One usually has only one opportunity to satisfy a guest. If this opportunity is missed, they will just go somewhere else. Moreover, you risk getting a bad rating on Yelp or Google Places. The new realities of the Internet are another reason to be one hundred percent present with each individual customer and meet all their needs.
Another key point that is often neglected is the active customer dialogue as a prerequisite to any intelligent marketing strategy. Here the company will build on the work of the franchisor and use the full range of instruments available. Sample Cafe Business Plan is known for leading franchisees by the hand and providing them with ready and available know-how. Another feasible option would be to promote Sample Cafe Business Plan regionally by means of paid advertising in line with the other actions being taken by the startup.
One could build up a comprehensive contact database by organizing sweepstakes with survey sheets in a transparent box in the shop. Participants give their email address and signed consent to be contacted for marketing purposes and can be legally alerted through e-mail marketing to campaigns, events, ice cream workshops and more. A personal dialogue with the customer, which is also cultivated in direct conversation, also means that the Sample Cafe Business Plan will no longer be perceived as another anonymous cafe among many. Direct communication with the customer will give a face and a friendly voice to your establishment that he’ll remember with pleasure. This personal touch is a decisive factor behind your success in an environment as highly competitive as this one.
The operational risk is the main one the founder will have to reckon with at first. For example, it is important to start generating income as soon as possible to cover high fixed costs like rent and electricity. Moreover, the investment cost in the dining facilities will reduce the available liquidity. As the franchiser sets the prices, it’s important to sell sufficient quantities. The founder must assess the effectiveness of the available marketing investments by observing the competition over a longer period of time and doing a comprehensive analysis. The Sample Ice Café has provided a large amount of information based on empirical data that should help new franchisees make the right decisions. Health, contingency and occupational accident insurance must be checked very thoroughly to guarantee legal protection. Insurance against damages and theft is also recommended. Given the nature of the business project, it is extremely important not to compromise on performance and to focus on quality, attention to hygiene and reliability. This is the only way to create the right ambience and gain loyal customers.
The numerous challenges of the business model are very likely to be overcome given the experience and qualifications of the founder.
Sample Cafe Business Plan is a branch of an Italian company that was founded in XXXX. The franchise was launched in XXXX and developed rapidly thereafter. There are now XXX Sample Cafe Business Plan branches worldwide (Italy, France, Spain, England, New Caledonia, Germany, Belgium, Luxembourg, U.S.A., Portugal, Morocco, Malta, Saudi Arabia). The franchise is enjoying very dynamic growth. XX new branches are expected to open by the end of XXXX, which translates to growth of over XX%.
The first Sample Cafe Business Plan in Germany opened in XXXX. Today there are more than seven ice cream parlors in major cities of the Federal Republic. The branch nearest Frankfurt is located in Wertheim Outlet Village. There is also one in Heidelberg, as well as in Munich, Berlin and Soltau. Sample Cafe Business Plan is quite popular with German customers; a new Sample Ice Café opens doors every two months in this country. The European head office of the franchise is in Paris and currently employs XX full-time staff.
On average, Sample Cafe Business Plan achieved revenue of over half a million Euro in the first year with X-X employees. It is the primary objective of the franchise to be especially active in tourist regions, as well as in regional centers and other large cities.
Sample Cafe Business Plan is popular with franchisees because of its perfect brand concept, high-quality product range and high-quality marketing materials. What’s more, the franchisees are always supported with words and deeds. They are consulted by their contact individual personally and supported on all important issues where necessary. Sample Cafe Business Plan allows them to live out their entrepreneurial dreams while assuring good organization at extremely fair franchise fees, especially in the long-term.
Cafe Business Plan Sample: Marketing Plan
Customers are guaranteed a special, authentic Italian culinary experience with fine products made with only the highest quality ingredients. The company is therefore aiming at the premium segment and its entire marketing approach is respectively aligned with this segment.
Since the prices are set by the franchisor, the company has only limited possibilities to launch special promotions. In the beginning and on special days of the year, however, it is possible to distribute coupon vouchers over Groupon online to attract potential clients’ attention.
Keeping in mind the strong competition, Sample Ice Café’s marketing mix is selected to build a stable presence on the broadest possible front. The target group in the area covered by the Sample Cafe Business Plan is well-defined. The following have correspondingly been identified as good marketing methods to promote the newly opened café locally: a meaningful, well-designed storefront and advertising, pleasant interiors, Internet advertising, magazine and outdoor advertising. Since the café is located in a busy district of Frankfurt it promises a lot of foot traffic and it can be assumed that local advertising could do wonders. It is also possible to promote the venue with car stickers, by giving out promotional gifts and ice samples in pedestrian areas.
Internet presence and local search engine optimization will be an important component of the long-term success of the sample cafe, as they will serve as a permanent source of information and contact platform around the clock, thereby fulfilling quite important functions. There are numerous markets and events in the area of the café in Frankfurt am Main, at which a booth/stand can be rented. Such events create opportunities for direct sales and promote the shop via flyers and displays. The enterprise may obtain contact information of potential customers and do some legal e-mail marketing by organizing sweepstakes. To this end, we could set up a Plexiglass box with some entry flyers to encourage visitors to fill in a survey.
Organizing events such as guided ice cream tasting tours or movie nights planned on social networking sites and event pages are also among effective marketing activities. Free invitations on websites like Facebook (using local groups), meetup.com or CouchSurfing can be posted.
Cafe Business Plan Sample: Company Organization and Financing
About the Founder
Mr. [Sample Cafe Business Plan] will open and manage the Sample Ice Café. His qualifications are on the level desired to conduct this business. He has a degree in retail trade and has worked in storage management as well as a salesman in the textile industry. He is currently in a responsible position, which will help him as manager of the Ice Café.
Mr. [Sample Cafe Business Plan] describes himself as a hard-working, communicative and strong person and leader. He also has a driver’s license Class/category 3, which authorizes him to drive delivery vans. Born in Algeria, Mr. [Sample Cafe Business Plan] is a native speaker of Arabic and fluent in German and English. This mix of competencies and soft skills will help him rise to the challenges of managing the Ice Café and being successful at it.
To save resources in the initial phase, there will be only one waiter/waitress, a barista (bartender) and 1-2 temps in the summer along with the manager of the restaurant. The waiter is responsible for taking orders and has direct contact with the guests at all times. He / she will also set the tables, serve orders, prepare the checks, clean up and be responsible for general maintenance tasks. When the café is really busy he’ll pick up the orders from behind the counter.
The barista will be behind the counter at all times. He/she will prepare all beverages, ice cream specials and other dishes. Before and after carrying out his main job responsibilities he also has to take stock and do general clean-up, maintenance and organization work.
The temps have various service tasks, stock work and tidying / cleaning. More temps and/or full-time staff will join the team as soon as the operational infrastructure is in place and there is a loyal customer base generating predictable and stable revenue. The main responsibility is carried by Mr. [Sample Cafe Business Plan]. Apart from the management and accounting, he will be working on the busiest stations at any given point in time.
The startup in the form of a sole proprietorship is inexpensive and manageable in terms of bureaucracy and accounting. In addition, no corporate tax is owed. The entrepreneur is liable with his private assets, but the risk is manageable if the operations are run in a good and reasonable manner.
The manager, Mr. [Sample Cafe Business Plan], is planning to provide equity contribution in the amount of XX,XXX Euro. Target debt financing of XXX,XXX Euro is intended to complement the contribution, thus ensuring the material basis for a fast, uncomplicated market launch.
The necessary routine work related to taxes, electricity, Internet and telephone bills and bank statements is assigned to a tax consultant on a monthly basis. He is also entrusted with the turnover tax advance returns und annual accounts.
Financial Plan Graphs
Graphed below are the revenues, statement of operations and accumulated deficit (profit and loss account/statement) in accordance with the financial plan estimates. Sales are expected to increase every year in the summer months.
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