Table of Contents

Page:

2 Executive Summary

3 Business Concept/Product Description

6 Market Analysis

8 Financial Plan

14 Supply Chain

15 Marketing Plan

16 Human Resources

19 Appendices

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Executive Summary

Shopping can be an arduous task with many stores offering great deals and different styles—it can

get overwhelming. Having an energetic buying experience is needed now more than ever to attract and

retain the customer. Café Curators intends to install Starbucks self-serve coffee kiosks on the first floor

of TJX retail locations in order to provide both TJX with additional sales and TJX customers with a

more energetic shopping experience. TJX benefits from this partnership by receiving rent revenue for

the space taken up by the kiosks, by receiving additional sales from retaining customers in the store, and

through the ability to incorporate rewards programs using beverage discounts as an incentive for more

TJX purchases. As for the customer, having the kiosk in a TJX location allows him or her to fulfill two

needs in one place, buying clothes and coffee more conveniently.

Based on a total of 87 million TJX customers yearly, the total obtainable market for the Starbucks

kiosks could reach 24.4 million as the company expands into all TJX locations. Further expansion into

more diverse coffee and tea options would appeal to a wider consumer base and could increase the

potential market size of our product.

Customers would spend more money at TJX locations if they had reason to spend more time. Café

Curators capitalizes on this opportunity by providing the convenience of Starbucks coffee and shopping

in one location, thus motivating customers to remain longer in the store.

While there is a significant number of competitors offering similar products to the Café Curators’

product, such as traditional coffee shops and other retailers who offer food and beverage services

in-store, these competitors fall short to the Curators’ product in a number of ways. In particular,

full-service coffee shops lack the convenience of the all-in-one shopping experience offered by the kiosk

placement within T.J. Maxx. Café Curators is the first of its kind, combining convenient Starbucks

coffee with off-price retail to provide a new and exciting synergy. Café Curators leads the competition

as the first mover into this niche market, thereby positioning the company above the competition.

Over the course of its first three years, Café Curators will require $204.8 thousand in funding.

Broken down, $51.2 thousand will be obtained from founders’ equity, $51.2 thousand from other

owners’ equity, and $102.4 thousand in loans. By the end of year three, Café Curators plans to repay

$86.8 thousand in loans, leaving only $15.6 thousand remaining. This remainder will easily be repaid in

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year four as Café Curators continues to expand to new TJX retail locations.

Business Concept / Product Description

What are you selling?

The Café Curators is selling Starbucks branded coffee in T.J. Maxx stores with the intention of

expanding into other TJX owned retail stores, primarily Marshalls, in the future. The business is

bringing together the two companies: Starbucks and TJX. The beverages will be distributed through

self-serve coffee kiosks. The company will provide these kiosks for the TJX locations as well as take

care of the supply chain. The Café Curators make sure that the ingredients and materials needed to make

and consume the coffee are placed in the store everyday. The compost and waste that are a part of the

brewing process will also be disposed of by the company. Lastly, the Café Curators will service and

maintain the self-service kiosks for a flat fee annually. In short, the Café Curators provide TJX a full

solution as opposed to just a product, seen through the company’s guarantee to install, maintain and

distribute the machines as well as take care of the full supply chain. From start to finish TJX is not

required to take part in any of the operations and all they see are the benefits and profits.

Describe exactly what your product is and for what purpose it was designed.

The product described is both a physical product as well as a service. The physical product is a kiosk

machine that will be placed strategically in TJX stores. Customers will be able to choose from a variety

of beverages that would be found in a Starbucks store and the machine will make the desired drink for

the customer for a price that varies per drink (see Appendix A for an image of the kiosk). In addition to

the machines, the Café Curators will provide all the raw materials and other necessities (cups, lids, hot

sleeves, etc.) to serve the drinks. As for the service, the maintenance of the machine will all be done by

the Café Curators. The purpose of this product is to provide the TJX customers with a more complete,

dynamic, and energetic experience while they shop for they will be able to buy clothes as well as have a

beverage in the same place.

Discuss how it works, special features, resulting economic, social, or environmental benefits.

The self-serve kiosks work as follows: the machines have a touch screen where the customer can

place the order. The process is intuitive as the screen shows the different options for consumers to

customize their ordered beverage. After all of the specifications that the customer wants in order to

create their desired drink have been chosen (within the selected Starbucks beverages that are offered in

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the kiosks), the drink is made by the machine. Lastly, the customer pays for the order with a credit or

debit card directly on the kiosk. Included in the service and maintenance part of the deal, the Curators

will ensure that the machines are in good working condition whenever there is any upkeep needed.

The Café Curators’ solution to TJX brings several benefits. To the customer, the product creates a

more convenient store where they are able to buy their clothes and other retail items as well as get

coffee. This is ideal for people who have tight schedules, for they would save time by being able to

purchase both products in the same place. For TJX, the product and service gives them value in multiple

ways. First of all, they will receive compensation for the floor space that it rents to Café Curators. These

revenues are small at first but will grow exponentially as the company expands to sixteen and later

twenty-six stores. In addition, TJX will gain additional sales revenue because customers will spend more

time in stores. Over the course of Café Curators’ first three years of operations, TJX will receive 2.195

million in net income. The potential for the Curators to create more income for TJX is directly tied to

their growth as well as how large they already are. In addition to making profits from the sale of coffee,

TJX will increase their income immediately from making customers stay longer times in the stores and

potentially buying more. The average TJX customer goes into the store with the idea of buying one item

but ends up leaving with three. This phenomenon is due to the company’s business model of treasure

hunt. Adding minutes in the store will add revenues for TJX. People will get their beverage and be able

to look around for clothes for a little bit longer. Although this will not add purchases for every drink sold

it will undoubtedly increase income because of the efficient and innovative treasure hunt model for

sales. Lastly, having these kiosks will allow those who accompany the shoppers but are not necessarily

shopping (partners, friends, kids) to have something to consume. These are purchases that are not

correlated to purchasing the retail items that the stores sell, but will add to profits just the same. By

having those who go shopping with the main consumer entertained, the main customer is able to spend

more time in the store and look at more items which, in turn, will add transactions and revenue.

TJX will also be able to promote buyers to purchase more by linking a rewards program to coffee

sales. Rewards may include having a free beverage after a certain amount of dollars spent at TJX in a set

amount of time. This will encourage additional sales and provides another value for TJX. This model

can also be used for seasonal promotions as well, which will drive up traffic at TJX stores.

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The Café Curator’s Keys to Success:

Supply Chain: Making full use of Starbucks’ renowned supply distribution network allows the Café

Curators to operate with top efficiency. The company is able to get the materials to the kiosk locations at

optimal speeds daily and that provides the security that the products will always be disposable to

customers at TJX locations. Additionally, Starbucks is present in all of the markets that the company

plans to expand into, so when the Curators expand no alterations to the supply chain will be needed.

Brand Recognition: Partnering with Starbucks allows the Café Curators to enter TJX with a brand that

has worldwide recognition. Starbucks is a brand that is associated with high quality products and good

social and environmental company values. Using an established brand assures that when the self-serve

kiosks are placed in TJX stores, consumers will already know what to expect from the beverage they

buy and be even more inclined to purchase drinks.

Good Management: The company management has been working together since their freshmen year of

college and all know each other's strengths as well as weaknesses and complement each other with ease.

This ability to work together will make solving problems that arise much simpler as well as allow the

company to grow smoothly.

Quick Expansion: The Café Curator’s business model makes quick expansion possible as well as ideal.

The company plans to more than triple the amount of TJX locations that it is present in from the first

year to the third. This growth rate increases the Curators’ profits as well as TJX’s and Starbucks’ and is

attainable because the market (TJX’s many stores) is already there. Additionally, the Curators’

management and the use of Starbucks’ supply chain allow a fast growth rate to be achievable without

creating big problems for the company.

5

Market Analysis

According to recent surveys, 131 million Americans drink coffee daily, and with a growing demand

for ‘gourmet’ drinks, the Café Curators’ product looks to have a very large obtainable market. The target

consumer at TJX is a savvy shopper who is quality and value conscious. The Curators’ product offers

value very similar to what the TJX target consumer desires. Not only are the of beverages high quality,

but the brand connotes this well to the shopper. The Starbucks brand is a very strong one, especially

amongst this particular consumer. The company offers high quality drinks with very positive brand

awareness and loyalty.

Every year, 87 million customers visit TJX locations around the world. The Café Curators believe

this is a good starting point for how many potential customers the company will have. According to

recent studies, 54% of Americans drink coffee daily and 52% of those buy coffee outside their homes.

Applying these percentages to the 87 million, it is estimated that there are 24.4 million (28% of 87

million, found by 54% x 52%) obtainable customers across TJX locations yearly. It is believed that this

figure is a conservative estimate because there are many more people who pass through TJX stores

without going through a transaction. So, in reality, the number of people considering a cup of coffee

from these kiosks is much higher. Also, the TJX consumer is more likely to buy a cup of coffee outside

their home than an average American. The target consumer for Starbucks fits with many aspects of the

TJX consumer which makes this partnership even more attractive.

A recent trend over the past decade shows an increasing demand for higher quality coffee. The

young consumer is more conscious of where his or her coffee beans are raised and the overall taste of

his or her beverage. Also, adults aged 18-24 have one of the highest rates of coffee consumption

compared to other age groups. This validates that the demand for higher quality coffee, which Starbucks

offers.

The Café Curators competitors mostly consist of Starbucks retail locations, local coffee shops, and

Dunkin Donuts locations. Coffee customers often enjoy interacting with the baristas, choosing from the

large menus, and experiencing the atmosphere of Starbucks and local coffee shops. They also value

convenience, which makes Dunkin Donuts an option. The service offered by the Café Curators provides

the quality of Starbucks with even more convenience than Dunkin Donuts.

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The company’s biggest weaknesses include the high overhead costs, small labor force, and small

menu. The machines cost roughly $4,000 each and need to be stocked with coffee and coffee accessories

before gaining any revenue. This all adds up to a very large overhead cost and risk when entering this

market. The company’s workforce consists of the four founders and eight receivers working part time.

The founders would need to conduct routine maintenance on the machines as well as run and build up

the foundations of the business. The receivers would restock the kiosks nightly, take care of waste and

make sure the machines are clean and working well. In the first six months of operation, all this work

will be a quite tough to keep up with. The small menu is another weakness as the kiosks will only offer a

select number of coffee beverages, resulting in a less diverse menu.

The Curators’ opportunities include expansion within TJX locations and offering beverages other

than coffee. The company is starting with eight locations in the greater Boston area and will roughly

double in store count yearly. The company believes that expansion into the majority of TJX retail

locations is a huge opportunity for the consumer, TJX, and the Curators, as the Curators look to become

a staple of TJX locations. Teavana is owned by Starbucks, so it is possible to expand into Teavana

branded tea. This could possibly increase kiosk sales per store and offer higher value to the shopper.

The company’s biggest threat would be competitors adopting a similar strategy to this one. It is

possible for a competitor to develop a service that offers a similar service to kiosks proposed. If another

company were to do this and acquire a brand like Dunkin Donuts, the Curators would have to compete

and likely lower its margins (see Appendix E for complete matrix of S.W.O.T. analysis).

Advantages of this company include a unique partnership with Starbucks and first mover advantage.

Although there are some coffee machines scattered around in Macy’s or other large scale retail stores,

there are no competitors like the Café Curators in TJX stores or the rest of the off-price market. The

Starbucks partnership holds a lot of value as the brand is very popular among coffee drinkers. This

partnership gives legitimacy that the coffee sold is high quality.

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Financial Plan

a. Revenue

The Café Curators earns its revenues from coffee sales. In its first year, Café Curators expects $84

thousand in revenue. Then, in year two, revenues expand to $336 thousand. Finally, in year three,

revenues grow further to $546 thousand. Overall, Café Curators projects that revenue will total $966

thousand over the first three years.

First year revenue was projected under the assumption that legal considerations regarding TJX space

rental will prevent operation for six months. Consequently, projections reflect only six months of sales

for year one. Annual store traffic was projected based upon 155 million TJX transactions in 2015,

according to TJX’s senior marketing management. At the end of fiscal year 2015, TJX had a total of

2,689 retail locations (TJX Companies). Based on this, Café Curators extrapolated 58 thousand annual

transactions per retail location. Abiding by the principle of conservatism, Café Curators based its

projections on 50 thousand annual transactions per store. In its first year of operations, the Café Curators

will service eight TJX locations in Boston. Thus, Café Curators projects that eight stores will generate

200 thousand transactions in six months of operations.

According to data from the Harvard T.H. Chan School of Public Health, 54% of people in the United

States drink coffee and 52% of United States coffee drinkers consume coffee outside of their homes.

Therefore, Café Curators calculated that approximately 28% of people in the United States consume

coffee outside of their homes (“Coffee by the Numbers”). Furthermore, Café Curators projected that out

of the 200 thousand TJX transactions within the first six months of operations, 28%, or 56 thousand

would be likely to purchase coffee. Abiding by the conservatism principle, Café Curators further

adjusted this estimate under the assumption that only 60% of likely coffee consumers would actually

purchase coffee. In the end, Café Curators projects that 33,600 cups would be sold in year one. At $2.50

per cup, coffee sales will generate $84 thousand in revenue in year one.

The Café Curators projected year two revenue using similar methodology. In year two, Café

Curators will expand to service a total of sixteen TJX retail locations in the greater Boston area. Using

the aforementioned assumption of 50 thousand annual transactions per store, Café Curators projects 800

thousand annual transactions in these stores. Of these transactions, Café Curators assumed that 28%, or

224 thousand, would be likely to purchase coffee. Furthermore, Café Curators applied the 60%

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conservatism adjustment described above to extrapolate 134,400 cups of coffee sold in year two. At

$2.50 per cup, coffee sales will generate $336 thousand in revenue for year three.

In year three, Café Curators will expand to service 26 stores in the greater Boston and Providence

areas. Once again, assuming 50 thousand annual transactions per store, Café Curators projects 1.3

million annual transactions in these stores. Twenty-eight percent of these transactions, or 364 thousand

transactions, will likely purchase coffee. Conservatively, 60%, or 218,400, will actually buy coffee. At

$2.50 per cup, coffee sales will generate $546 thousand in revenue for year three.

b. Expenses

i. Overview

Café Curators projects a total of $1.144 million in expenses over the course of its first three years. In

year one, Café Curators expects $254 thousand in expenses. Then, in year two, expenses will grow to

$353 thousand. Finally, in year three, expenses will further increase to $537 thousand.

iii. First Half of Year One

In the six months prior to operations, the Café Curators will purchase the equipment required to earn

revenue. Purchases will include a van for $30 thousand, eight coffee kiosks for $4 thousand each,

maintenance equipment for $1 thousand, and office equipment, including a fax machine, copy machine,

four computers, four desks, files, and four chairs for a total of $4.5 thousand. In total, equipment

expense will total $67.5 thousand in the first six months.

The Café Curators will also incur expenses for wages, insurance, advertising, and legal consultation

during its first six months. Wages expense is based on a $20 thousand annual salary for each of the Café

Curators’ four senior managers. Over the course of six months, Café Curators will incur a total of $40

thousand in wages expense. The remaining $40 thousand in wages expense will not be recognized until

the second half of year one. Café Curators will also begin to pay $2 thousand in commercial and liability

insurance in its first six months of operation. The remaining $2 thousand of insurance expense will be

recognized in the second half of year one. For advertising, the Café Curators will place advertisements

in TJX’s newsletter, in the windows of the first eight TJX locations, and on Google advertisements. This

will cost $5 thousand. Finally, Café Curators will require extensive legal consultation for contract

negotiation to rent space in TJX retail locations as well as to acquire ample commercial and liability

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insurance. The Café Curators therefore projects $10 thousand in legal consultation expense for the first

six months. In total, Café Curators expects $57 thousand in service expense during its first six months.

During the six months prior to operations, the Café Curators will preemptively purchase three

months of all inventory that has a long shelf life. As this inventory will be delivered from Starbucks

Corporation along its existing supply chain, Café Curators provides for a delivery fee in addition to the

market value of all goods in all delivery expenses. Café Curators will purchase cups for $2 thousand,

lids for $1.6 thousand, hot sleeves for $1.9 thousand, and sugar packets for $163. In total, Café Curators

projects $5.8 thousand in delivery expense for the first six months.

iv. Second Half of Year One

The Café Curators will begin operating in the second half of year one and will therefore incur rent

expense for its space in TJX retail locations. TJX generates $304 in annual sales per square foot of retail

space (Gustafson, Krystina). Therefore, Café Curators expects rent to reflect fair compensation for these

lost sales. TJX will receive further compensation due to increased retail sales, so Café Curators valued

rent expense at exactly $304 per square foot taken. Each of the eight kiosks requires nine square feet of

space. Thus, Café Curators projects $10.9 thousand in rent expense for the second half of year one.

Café Curators also projects further service expenses for the second half of year one. Café Curators will

incur the remaining $40 thousand in wages expense in the second half of year one. In addition, Café

Curators will incur wages expense for the eight receivers of Starbucks deliveries at TJX locations.

Employed for one hour each night for 183 days at an hourly wage of $20, Café Curators projects a

receiver wages expense of $29.3 thousand for year one. Next, Café Curators will pay the remaining $2

thousand of insurance expense. Café Curators will advertise more aggressively in the second half of year

one and therefore projects $12 thousand in advertising expense for the second half of year one. Finally,

the Café Curators provides for $2 thousand in legal consultation expense in the remainder of year one in

case of legal consultation requiring potential liabilities, insurance, and other contractual obligations. In

total, Café Curators expects $85.3 thousand in service expense for the second half of year one.

Next, the Café Curators projects delivery expense using the market value of goods plus a delivery

surcharge for Starbucks. Café Curators will purchase coffee for $4 thousand, cups for $2 thousand, lids

for $1.6 thousand, hot sleeves for $1.9 thousand, milk and cream for $3.5 thousand, and sugar for $163.

In total, the Café Curators expects $13.4 thousand in delivery expense.

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Although the van has already been purchased, the Café Curators must continually pay for the

gasoline used to travel to maintain each kiosk. In year one, Café Curators expects to incur $10 in

gasoline expense. Finally, Café Curators expects to pay $9.1 thousand in interest on debt.

v. Year Two

In year two, expenses grow due to Café Curators’ expansion to sixteen TJX retail locations. First,

rent expense for TJX space increases to $43.8 thousand to reflect the additional 72 square feet of space

required in the additional eight TJX locations. In addition, Café Curators will begin to pay rent on its

office space. Office rent will equal $19.2 thousand. In total, Café Curators expects $63 thousand in rent

expense for year two. Equipment expense grows to reflect the additional kiosks required. At $4 thousand

per kiosk, kiosk expense for year two totals $32 thousand. Delivery expense also increases to

accommodate consumers in the new locations. In year two, Café Curators expects to purchase coffee for

$10.5 thousand, cups for $10.8 thousand, lids for $8.5 thousand, hot sleeves for $10.1 thousand, milk

and cream for $9.3 thousand, and sugar for $857. Café Curators expects delivery expense to total $50.2

thousand in year two.

In addition, the Café Curators expects service expense to grow to $192.8 thousand. While

management salary expense remains constant at $80 thousand, receiver salary expense grows to $58.6

thousand to accommodate eight additional receivers. For the office, utilities expense and office

maintenance expense are both projected at $15.5 thousand. Next, Café Curators must expand its

commercial and liability insurance coverage to $4.2 thousand in insurance expense. Café Curators also

will pursue increasingly aggressive advertising, causing advertising expense to grow to $17 thousand.

Finally, Café Curators expects $2 thousand in legal consultation expense for the contracts for the

additional TJX space and insurance.

Gasoline expense will double to $20 to accommodate the additional travel into the greater Boston

area and Café Curators projects $10.2 thousand in interest on debt.

vi. Year Three

In year three, expenses grow further to accommodate expansion to 26 TJX retail locations. Rent

expense grows to $90.3 thousand in year three. While office expense remains constant, TJX space

expense increases to $71.1 thousand due to the additional 90 square feet of TJX retail space rental.

Equipment expense grows to $40 thousand because Café Curators must purchase ten more kiosks at $4

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thousand per kiosk. To accommodate additional consumers, deliveries expense grows to $82.5 thousand.

In year three, Café Curators expects to purchase coffee for $17.3 thousand, cups for $17.7 thousand, lids

for $14 thousand, hot sleeves for $16.7 thousand, milk and cream for $15.3 thousand, and sugar for $1.4

thousand. Service expense grows to $230.6 thousand in year three. Management salary expense remains

constant at $80 thousand, but receiver salary expense grows to $95.2 thousand to accommodate ten

additional receivers. Although advertising expense and legal consultation expense remain constant at

$17 thousand and $2 thousand, respectively, utilities expense and office maintenance expense both grow

to $16 thousand and insurance expense grows to $14.4 thousand.

Gasoline expense grows to $60 to accommodate the commute to Providence from headquarters.

Finally, Café Curators plans to repay $86.8 thousand of debt in year three, leaving only $1.5 thousand in

interest expense.

c. Financing

The Café Curators will require additional funding in years one and two and will begin to repay its

debt in year three. In total, Café Curators will need $204.8 thousand in funding. Broken down, $51.2

thousand will be obtained from founders’ equity, $51.2 thousand from other owners’ equity, and $102.4

thousand in loans.

Initially, Café Curators will require a total of $182.7 thousand in funding to overcome high overhead

costs. Of that funding, the four founders will contribute a total of $45.7 thousand in owners’ equity,

which will be matched by $45.7 thousand in other owners’ equity. In addition, Café Curators will

receive loans totaling $91.4 thousand.

In year two, Café Curators will require an additional $22.1 thousand in funding in order to expand to

eight new locations. The four founders will contribute $5.5 thousand in owners’ equity, which will be

matched by $5.5 thousand in other owners’ equity. In addition, Café Curators will receive $11.1

thousand in additional loans.

By year three, Café Curators will be profitable enough that it requires no additional funding, but

rather can begin to repay its debt. Café Curators plans to repay $86.8 thousand in loans, leaving $15.6

thousand remaining. The remainder will easily be repaid in year four as Café Curators continues to

expand to new TJX retail locations.

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d. Conclusion

The Café Curators breaks even in year three, as revenue growth rapidly overtakes initially high

expenses. Due to high overhead, Café Curators endures a net loss of $170 thousand in year one.

However, as revenue growth outpaces expense growth, Café Curators’ net loss shrinks to $17.2

thousand in year two. Finally, in year three, Café Curators will finally post a net gain of $9.2 thousand.

Yet this year three net income number is actually deceivingly small, as prior to the repayment of loans,

Café Curators posts a net gain of $96 thousand. Consequently, Café Curators is very optimistic for

future growth as it continues to repay its debt and retain more of its earnings (see Appendix B for full

financial pro-forma).

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Supply Chain

The Café Curators’ supply chain heavily relies on Starbucks’ supply chain for its initial distribution

process. The company buys the beans, milk, and other supplies from Starbucks. The multinational

company also delivers all the materials to the different TJX locations by simply adding those stops to

their existing Boston route for a delivery fee. The Curators believe that making use of the

multinational’s supply chain is extremely beneficial, for they have a very efficient distribution network

that they have worked hard to improve throughout their company history. Additionally, having the

ability to utilize their supply chain eliminates the Café Curators’ need for direct connection with

suppliers, as Starbucks already has a vast network of suppliers which is, to an extent, incident proof, for

they have various providers for most of their products. In summary, the Café Curators will essentially

utilize Starbucks’ complete supply chain, from coffee bean farms to warehouses and all other

intermediaries, up until the delivery to the T.J. Maxx locations, where the Café Curators’ supply chain

begins with the company’s receivers on site.

Once the supplies arrive to the T.J. Maxx locations that have the self-serve kiosks, the Café Curators

will have receivers on location to stock the machines with coffee beans, and place all of the other

materials in the machine, restock the cups, hot sleeves and other supplies and lastly take away the

compost from the previous day. The receivers will pick up the deliveries and take care of the machines

every night. As the company expands into different regions and stores, more receivers are going to be

needed. However, since Starbucks has hundreds of locations across the United States, all of the supplies

will still be delivered by the multinational.

Lastly, the Café Curators will be buying the self-service kiosks from kiosksinc.com and this supplier

will also not need to be changed upon expansion into different regions of the United States, as they

deliver to all parts of the country.

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Marketing Plan

Although the marketing plan for the Café Curators will include some advertising, it is expected that

a large percentage of the company’s customers will come from existing T.J. Maxx consumers. That

being said, the company does expect to draw some new customers into T.J. Maxx because of the product

it is offering, and in order for this to occur, these potential customers need to hear about the coffee

kiosks. In addition, existing T.J. Maxx consumers need to become aware of this new service in the

stores. This is where advertising comes in. If TJX consents to allotting the Café Curators a section of

their newsletter or access to their general e-mailing list, the company intends to inform potential

customers about this product by introducing it in an e-mail to the TJX mailing list or in the TJX

newsletter. The general format would be announcing the introduction of Starbucks coffee being offered

in-store at select T.J. Maxx locations, with emphasis on the Starbucks brand, playing on consumers’

brand loyalty, while also promoting the point-based rewards system that the company will offer to incur

discounts on coffee purchases. This would reach the existing customer base for T.J. Maxx, informing

them about the introduction of the product into the stores. Once again with the consent of TJX, the

company would place signs on the windows of the physical T.J. Maxx stores where the kiosks are

located so passersby on the streets would be able to see that the stores are now offering Starbucks

coffee. This would be a way to potentially reach customers who do not already shop at T.J. Maxx but

find Starbucks or coffee in general appealing. Finally, the Café Curators intends to place ads on Google

promoting the sale of Starbucks coffee within T.J. Maxx store locations. Specifications for advertising

expenses are explained in the finances section of this business plan.

The product being offered is a self-serve coffee kiosk. Customers will find this product in select

T.J. Maxx store locations. In the first year, the company will be placing machines in eight T.J. Maxx

stores in Boston. These stores are the ones located on Newbury Street and Washington Street in Boston,

Harvard Street in Brookline, Allstate Road in Dorchester, Cambridgeside Place and Alewife Parkway in

Cambridge, Middlesex Avenue in Somerville, and Everett Avenue in Chelsea. In the second and third

years, the company intends to place machines in the greater Boston area and Rhode Island, so customers

will be able to find the product at these locations as well, with the specific stores to be disclosed at a

future time.

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Human Resource Issues

The Café Curators will be run by four managers. The Chief Executive Officer (CEO) is Mary

Hyatt. She is responsible for all of the company’s day-to-day management decisions, as well as

executing and implementing the short-term and long-term plans for the company, including expansion

into new TJX stores in the short and long-run. Ms. Hyatt’s past experience includes graduating from

Northeastern University with a Bachelor of Science in Business Administration with a dual

concentration in finance and marketing and receiving her Master of Business Administration from

Brown University. She has four years of prior experience as a Chief Operating Officer at a startup called

Localytics. Being second in command for four years as the COO at this startup has prepared her to hold

the position of CEO at the Café Curators.

The company’s Chief Financial Officer (CFO) is Aviel Kaplan. This position is considered the

“Controller” and he is responsible for reporting the company’s accounting and financial information to

all relevant internal and external users. He also handles all of the company’s cash management. Mr.

Kaplan’s past experience includes graduating from Northeastern University with a Bachelor of Science

in Business Administration with a concentration in finance and receiving his Master of Business

Administration from Dartmouth College. He has prior experience as a financial manager for two years at

PricewaterhouseCoopers and was promoted to Chief Financial Officer and held that position for two

years as well. Mr. Kaplan has lots of experience in financial management as well as accounting and this

will allow him to successfully manage the finances of the Café Curators.

The company’s Chief Marketing Officer (CMO) is Nick Miller. He is responsible for managing the

company’s growth, sales, and marketing strategies, as specified in the marketing section of this business

plan. In addition, he works to increase the company’s revenues while minimizing costs. Mr. Miller’s

past experience includes graduating from Northeastern University with a Bachelor of Science in

Business Administration with a concentration in finance and receiving his Master of Business

Administration from Columbia University. He served as the Chief Marketing Officer at a local small

business called Zenith Inc. for four years. This experience will help him to understand how to market

and promote a small business such as the Café Curators.

The company’s Chief Operating Officer (COO) is Chris Cassens. He is responsible for the

company’s daily operations and will step into the CEO position if the current CEO is otherwise occupied

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or unable to complete the position’s necessary functions. Mr. Cassens’ past experience includes

graduating from Northeastern University with a Bachelor of Science in Business Administration with a

concentration in finance and receiving his Master of Business Administration from Harvard University.

He held the position of Chief Operating Officer at a startup in Boston, Massachusetts called 4CE

Consulting for four years, standing in as CEO for one of those years when the startup’s current CEO was

on an extended leave. The experience as COO, as well as CEO, has prepared Mr. Cassens to hold the

position of COO at the Café Curators, allowing him to understand the company’s day-to-day

management necessities, while also knowing how to step in as CEO if that situation presents itself.

The staffing plan for the Café Curators includes the four managers holding the positions CEO, CFO,

CMO, and COO, as well as wage-employees with the title Receiver. There will be one receiver per T.J.

Maxx store that the company will be operating in and this receiver will be responsible for receiving the

Starbucks deliveries on location at the T.J. Maxx stores each night and loading the machines. In the first

year the company will be operating in eight T.J. Maxx stores in Boston and will thus need eight

receivers. In the second year, the Café Curators intends to expand into the greater Boston area. In the

third year, the Café Curators intends to expand into Rhode Island. As a contract is signed for operations

in each additional retail location, the company will hire an additional receiver to receive the Starbucks

deliveries at that specific store. Those who wish to be receivers must be able-bodied, punctual, and most

importantly, available at night, since all Starbucks deliveries will occur during the nighttime. Managers

will accompany the new employees on their first delivery reception to demonstrate the necessary

procedures for receiving and signing for the deliveries as well as how to load and operate the kiosk

machines. This position will be part-time work, approximately one hour per day, seven days a week. The

workers will be paid hourly, at a rate of $20 per hour. This rate is twice the market rate for minimum

wage in Massachusetts, where the company will begin operations, and will be incentive for the

employees to remain with the company, along with fair, just, and respectful treatment of all employees.

The Café Curators is a company built on strong values and a promotion of diversity and culture. The

company is built on giving customers an enjoyable and convenient shopping experience. It is committed

to upholding the highest standards of business ethics, going out of its way to promote and foster ethical

behavior and acting as a proactive supporter of moral business practices, rather than simply performing

at the bare minimum. The Café Curators requires that all employees, partners, and affiliates be treated

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with the highest level of dignity and respect. The company also values the environment and strives to

remain as environmentally sustainable as possible. This company is one that values and promotes

diversity in people, ideas, and opinions. It is a top priority for the company to make sure that it is

consistently a multicultural organization. All of this contributes to a positive and healthy work

environment, which is believed to not only help to retain the company’s employees, but also promote a

successful and profitable company in the long-run.

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Appendices

Appendix A: Image of Kiosk

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Appendix B: Full Financial Pro-Forma

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Appendix C: Finance Graph

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Appendix D: Funding

Year 1 Year 2 Year 3 Total

Required Funding $182,709.18 $22,112.44 $0 $204,821.62

Founders’ Equity $45,677.29 $5,528.11 $0 $51,205.40

Other Equity $45,677.29 $5,528.11 $0 $51,205.40

Debt $91,354.59 $11,056.22 $0 $15,607.44* * Includes Debt Repayments

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Appendix E: SWOT Matrix

Strengths Weaknesses Opportunities Threats

Café Curators -Starbucks Partnership -Convenience Shopping + coffee

-High overhead -Small labor force -Small menu

-Expansion into more TJX locations - More diverse drink options

-Competitors adopting similar strategies

Dunkin’ Donuts -Coffee shop experience -Large menu

-Inconvenient

-Coffee machines in retail locations - Higher quality machines/coffee

-Consumer preference change

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Appendix F: Competition Comparison

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Appendix G: TJX Revenue

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Appendix H: Works Cited

Works Cited

Gallup, Inc. "Americans' Coffee Consumption Is Steady, Few Want to Cut Back." Gallup.com . N.p., 29

July 2015. Web. 06 Dec. 2016.

TJX Companies. The TJX Companies, Inc. Annual Report 2015. N.p., n.d. Web. 27 Nov. 2016.

"Coffee by the Numbers." Harvard T.H. Chan School of Public Health. N.p., 28 Feb. 2014. Web.

27 Nov. 2016.

Gustafson, Krystina. "These Retailers Getting most Bang for the Buck'" CNBC. CNBC, 16 Jan. 2015.

Web. 27 Nov. 2016.

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Appendix I: Full PowerPoint Presentation

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