The Phoenix Café
14237 Jarrettsville Pike
Phoenix, MD 21131
(410) 333-3333
April 30, 2014
By:
Joe Banner
Stacie Bruzdzinski
Benedict Hartmann
Jeremiah Paugh
Executive Summary
Mission Statement: We strive to serve natural organic coffee and
baked goods, to contribute to our local community and the
environment and to establish close long-term customer
relationships.
The Phoenix Café has four main goals:
· To use the best organic ingredients in our coffee and food
products.
· To give the greatest customer service possible.
· To be environmentally conscious
· Give back to the community
Phoenix Café was founded by four members Joe Banner, Stacie
Bruzdzinski, Jeremiah Paugh, and Benedict Hartmann. All owners are
working toward their bachelor’s degree in varying fields in Towson
University’s College of Business and Economics. The café will have
roughly 6 to 12 employees, which will be carefully picked by our
founding members.
Phoenix Café is determined to become a daily necessity for local
coffee drinkers, offering a place where customers can escape the
daily stresses of life. With the growing demand for organic coffee
and great customer service, Phoenix Café will look to capitalize in
a geographic area where the number of coffee retailers is limited.
With its close proximity to Hunt Valley, Hillendale, and Towson
Golf and Country Clubs, the café will look to build a core group of
repeat customers. The Phoenix Café will also look to deliver the
best tasting organic coffee in the area, complimented by its
delicious baked goods, and cozy environment for its customers.
The signature of our business will be that we engage as much as
possible in supporting the environment and community.
As the café grows and develops we are looking to create a mobile
coffee truck that travels to local sporting events, festivals, and
other local activities to help expand the company brand
recognition. We also hope to gain endorsements from the local golf
courses and businesses in the area to advertise our product.
Another goal is to increase the recognition of protecting the Loch
Raven Reservoir and hold promotions that would raise money to help
keep the waters clean. Overall, we hope to make Phoenix Café a
number one choice for customers, and a symbol of the community.
Company Description
Phoenix Café (LLC), is a medium sized coffee house based in
Phoenix,Maryland that sells organic coffee, along with other
beverages, and various baked goods. It will be located at 14237
Jarrettsville Pike, Phoenix, Maryland, which is in between the
Manor Shopping Center and the Paper Mill Village Shopping Center.
The Phoenix Café is equally owned and operated by Joe Banner,
Stacie Bruzdzinski, Jeremiah Paugh, and Benedict Hartmann.
The Phoenix Café offers a diversified style of organic coffee,
which is rich in flavor from our freshly roasted coffee beans. Our
philosophy encourages organic and green products and to support the
environment and local businesses.
The café will primarily target residents in the
Phoenix/Jacksonville area as well as commuters. As our business
expands, we hope to gain endorsements from other local businesses
like the local golf courses. The Phoenix Café provides a casual
environment for the community members to relax and socialize. We
will host staged events for entertainment and also want to give our
customers an opportunity to creatively share their experiences in
the community. By educating our customers about our products, we
will inspire more demand.
The Phoenix Café was created due to the lack of a local homemade
coffee shop in the area. We realized that the area contained
(general coffee retailers) like Starbucks and McDonalds, but not a
place that focuses on the quality of ingredients, and the
individuals we serve. At the moment Phoenix residents are stuck
with the only sit-down coffee shop option, Bagel Meister, located a
few miles away from our prospective location. Since we are dealing
with a upscale community, we decided to take on an organic and
eco-friendly approach. We will also be creating an initiative where
10 cents from every cup of coffee sold will be donated to a local
charity.
Coffeehouse Market Analysis
Coffee industry
In the United States, 83% of the adult population drinks coffee.
With 63% drinking coffee daily and 75% at least once a week
(National Coffee Association, 2013). This gives us a strong general
customer base to start.
Over half of all coffee sales are served from coffee shops.
(dolcera.com). In the northeast of the US, Starbucks and Dunkin
Donuts are the biggest players in the industry with 23.2% and 28.9%
respectively, dominating over half of that market (studylogic.net).
Organic coffee demand has been increasing over the past few years.
“A 29% annual average growth rate for the organic category
documented by Giovannucci between 2000 and 2008 dwarfs the
estimated 1.5% projected annual growth rate of the conventional
coffee industry” (OTA cited Giovannucci). This means that organic
coffee demand is growing much stronger than regular coffee, which
is one of the reasons we are focussing on this kind. Organic coffee
is also known to have better flavour and taste, with no chemicals
being used in the growing and fair wages to the growers.
Demographics
Our location is in Phoenix, MD, which is in close proximity to
Cockeysville, MD. Although these two areas are near to each other,
they differ in their demographics. Phoenix has a reported
population of 7,253 compared to Cockeysville’s population of 19,759
(U.S. Census). This number gives reason to extend our customer
target area outside Phoenix to generate more sales. Though Phoenix
should remain the primary focus. The immediate Phoenix neighborhood
is populated by many households that are quite wealthy. The average
income is $101,266. The average age is 43 and 73.2% are married.
The average household size is 2.9 which suggests many married
couples with children. 95% own the house they live in Cockeysville
has a much lower average income of $51,206 and a lower median age
of 36.4 (U.S. Census) with 52% being married. It also has a much
more diverse ethnicity with only 79.8% white and many Asians and
Latinos. The average household is 2.3 people.
Target Consumers
Phoenix Residents
The demographics show that the Phoenix residents are mostly
wealthy settled families. This means that they will stay in the
area for a long time. They also have higher income to spend.
Phoenix Cafe is trying to build a long term relationship with these
residents that builds upon the close neighbourhood setting and
embraces it. This way customers feel like Phoenix Cafe is an
immediate part of their community. We are expecting these customers
to usually come in groups of two or more, with the intention to
spend a longer amount of time in the cafe, enjoying a variety of
products while socializing and conversating.
Commuters
The Cafe is located close to I-83 and Route 146. These roads are
leading south directly into Baltimore and carry a high amount of
commuter traffic on a regular basis. We will be aiming to draw
these commuters to the Cafe, creating another group of target
customers. These are consumers that want their desired beverage
quickly and cheap to go; they do not care much for service and
experience and usually come alone when they are on their way to
work.
Cockeysville Residents
Because Cockeysville has a high amount of residents and is
fairly close by we are also including them into our target audience
for additional income.
Greater County area
All of these groups are part of the general county community
that we embrace which is why we are putting strong emphasis on
supporting everything that supports it. If we can become known in
the county for this we can gain additional supporters from outside
Phoenix
Direct Competition:
1.Bagelmeister
3443 Sweet Air Road
Jacksonville, MD 21131
Competitor Rating: *****
Bagelmeister offers products with a very similar focus to our
business, which makes it the strongest competitor. It also offers a
cozy atmosphere.
2.McDonald's
3425 Sweet Air Rd
Phoenix, MD 21131
Competitor Rating: ****
McDonald’s offers coffee at very low prices. It is also located
very central making it a threat especially to the commuter target
audience
3. Starbucks
3499 Sweet Air Rd
Competitor Rating: ****
Starbucks offers organic coffee in many different variations.
They are the biggest player in the industry. Location 1 is located
inside a supermarket, making it a less favourable choice
4. Seven Eleven
14215 Jarrettsville Pike
Competitor Rating: ****
Just like McDonald’s, Seven-Eleven provides a cheap alternative
for coffee and is also located in a very good position
5.The Filling Station
14910 York Rd
Competitor Rating: ****
Established from an old gas station, this location is geared
very similar to our intentions. They offer various coffees, freshly
grinded and well trained employees. Customers can enjoy a relaxed
environment and premium quality coffee. The location however is a
little outside Phoenix
6.Caribou Coffee
110 Shawan Rd
Competitor Rating:**
Customers value atmosphere and quality at this location. Caribou
emphasizes on green products. A greater competitor for the
Cockeysville customers.
7.Covelline's Coffee & Tea
11121 York Rd
Competitor Rating: **
A small location in Cockeysville. Specialized on teas as well as
coffee
Summary:
There are several competitors in the area that we took into
consideration. The Filling Station and Bagelmeister are the
strongest competitors. Bagelmeister has a prime location and offers
comfortable seating space for people in the area to relax and meet
up. The Filling Station offers excellent premium coffee and well
trained staff with the same atmosphere we are aiming for. Combining
the best of both these competitors will give us a market advantage
over them. The discount prices of McDonald’s and 7/11, which are
also very close, continue to be a threat. We are hoping to draw the
customers thanks to our other qualities that make the price worth
the change.
Marketing Strategy
As a start-up coffee shop, the Phoenix Café has to market itself
in order to reach its potential customers and win them over from
other competitors in the area. One of the major ways that is going
to make the Phoenix Café stand out is its involvement in the
Phoenix community. In an effort to get the brand name out, the
Phoenix Café will work to partner with community organizations such
as: Hillendale Country Club, the Towson Golf and Country Club, Hunt
Valley Golf Club, Jacksonville Elementary School, Montessori Manor
School, and Carroll Manor Recreation Council. These organizations
were chosen based off of the demographics, and the interests of
those in the community. Along with community outreach , we will
increase our customer base by mailing out coupons, and by
generating interest through our Facebook page.
The Phoenix Café is looking to penetrate the market to increase
market share. We are focused on providing high quality products at
a lower cost than our competitors (Penetration Pricing, n.d.). We
will accomplish this by creating a menu that includes signature
items as opposed to a diversified menu.
Design & Development Plan
The Phoenix Café will take on a vintage and older style approach
while also staying relaxed and cozy. Throughout the café customers
will notice the older style wooden dining tables and vintage décor,
along with more comfortable booth seating areas and lounge areas.
This follows our goal of being a vintage style coffee house, while
also incorporating the relaxed and comfortable atmosphere of being
a Grandma’s Kitchen with home cooked pastries, and comfortable
seating arrangements.
Café Layout
As shown in the image below, the café will be separated into two
areas. The first room will be where the customers enter the café.
In this room customers can order their coffee or snacks all while
watching our fresh coffee beans roast through a glass window to our
kitchen. Also, this room contains a few round dining tables for
grab-and-go customers who only plan to stay in the café for a few
minutes.
The second room will be a more relaxed dining room. This room
will also act as an event forum for our themed nights that take
place on the first Thursday of every month. This room will have
multiple booth style seating arrangements along the perimeter of
the room. It will also contain lounge areas with comfortable
couches, along with more round wooden tables like those portrayed
in the first room. Having large spacious tables and comfortable
seating is consider one of fifteen essential ingredients to a
successful coffee house (Guzmán, 2011). This room will encourage
customers to stay longer, and relax at the coffeehouse. It will be
a quiet place to study during the day, and also a nice place for
community members to come and have fun in the evenings during our
themed nights.
Throughout the café there will be vintage and handmade décor.
For example, there will be antiques and vintage artwork around the
café. Some of this vintage artwork will be pictures of the Phoenix
community from around 50 or so years ago. We want to capture the
community in photos around our café to provide a friendly
environment, and to show our support to the Phoenix community. We
will designate the far right wall behind the lounge area as a
chalkboard wall for customers and community members to write about
the café and the phoenix community. They can also leave photos or
any other memorabilia that represents the Phoenix community here to
be showcased in our café. There will also be handmade furniture
(like rocking chairs and bookshelves) and decorations that will
give our customers a sense of being at their grandparent’s home. To
elaborate more, we want our café to be similar to a Dutch market,
with freshly baked pastries, a rich aroma of freshly roasted coffee
beans, and hand crafted furniture and vintage décor.
Product Goals
The Phoenix Café has the following goals devoted toward
developing the products sold in the Café:
· Produce quality recipes for our six signature coffees
(Espresso, Cappuccino, Latte, Macchiato, Americano, and regular
drip coffee)
· Produce quality recipes for our signature pastries (Ex: Coffee
cakes, Cookies, and Muffins)
· Produce quality recipes for our three signature teas (unsweet
tea, green tea, and hot tea)
· Locate quality organic suppliers for milk, fruits, and our
other needed ingredients.
The Phoenix Café will also have the following goals devoted
towards growing and maintaining a successful product line:
· Produce one new signature coffee per year.
· Develop a coffee flavor or specialty item for every
season.
· Develop new recipes for seasonal pastries.
· Continue to build onto our menu to provide an increasing
variety.
Marketing Goals
The Phoenix Café will have the following Marketing goals prior
to opening:
· Create a Facebook page for the Phoenix Café.
· Start reaching out to the community by creating flyers to
distribute in mailboxes.
· Create ads to put in the local newspapers.
· Begin to reach out to other local businesses for possible
cross promotion.
The Phoenix Café will have the following Marketing goals after
opening to maintain their product line:
· Create deals and coupons to encourage customers to return.
· Advertise themed nights through social media and flyers to
increase attendance to events.
· Market the local charity, and the 10 cents per cup
initiative.
· Create a punch card system for customers that purchase 10
signature drinks, and they get 1 free.
Organizational Goals
The Phoenix Café will have the following organizational
goals:
· Treat customers with respect by offering fast, friendly, and
efficient service.
· Provide a relaxing and comfortable environment for local
community members and business workers.
· Maintain a clean and attractive coffee house.
· Provide a positive and respectful workplace.
· Improve the well-being of the Phoenix community by allowing
them to be involved in the business.
· Donate $1000 to a local charity off of our coffee sales in the
first year (10 cents per cup approach).
· Continue to develop an extensive product line (new flavors,
merchandise).
· Within 10 years, create a Phoenix Café food truck to sell our
products at community events and at neighboring golf courses.
· Be an Eco-friendly small business, and promote saving the Loch
Raven Reservoir.
· Continue to develop new flavors and products that make our
coffee house stand out from others in the area.
· Encourage other local companies to endorse our business. There
are 3 golf courses in our area that we can target, and focus on
getting them to endorse us.
Procedures
Every business decision, whether it is developing a new product
or innovating new marketing methods, will go through a set of
procedures. These procedures are used to ensure that the final
product is the best product. The procedures outlines below will be
followed through the process of starting the Phoenix Café, and will
still be used years down the road as we are unveiling new products
and marketing materials.
The product development procedures are as follows:
1. Draft recipes / gather ingredients
2. Try / test drafted recipes (preliminary review)
3. Modify / improve recipes
4. Retry / retest recipes
5. Expose recipes to customers to see if they like the products.
(critical reviews)
6. Rework recipes taking into account customers viewpoints.
7. Prepare products for opening the business – retry/retest one
last time (final review)
8. Open business
The marketing materials development procedures are as
follows:
1. Marketing team drafts marketing materials.
2. Brings material to meeting with GM’s – discuss what to
improve.
3. Seek inputs from business consultants.
4. Marketing team improves marketing materials.
5. Brings materials to GM’s meeting for critical review.
6. Marketing teams goes back and makes more improvements to
marketing materials.
7. Brings materials back to GM’s for final approval.
8. Marketing team begins to distribute marketing materials.
Schedule
As we prepare to open the Phoenix Café, we have allotted 18
weeks prior to its opening to developing our initial signature
products, and our marketing materials. In the above section, we
created 8 tasks (or procedures) that must be followed before
unveiling the final product. The schedule is designed to match the
8 numbered tasks from the above section. The schedule is as
follows:
Creating Coffee Recipes
Creating tea recipes:
Creating pastry recipes:
Creating marketing materials:
Costs for the eighteen week developmental period
Materials
Source:
Coffee beans
$12 per 1lb. (40 cups of coffee)
Green Beanery
Organic milk
$4 per gallon
Restaurant Depot
Sugar
$10.99 per 25LB Bag
The Restaurant Store
Organic cheese
$8 per pound
Wegmanns
Creamer
$40 per 5 lbs.
Wegmanns
Farm fresh eggs
$2 per dozen
Bruzdzinski Farm
Flour
$7.23 per 25 lbs.
The Restaurant Store
Cooking Oil
$13.99 per
17.5 oz.
The Restaurant Store
butter
$4 per pound
Wegmanns
Direct Labor (8 people – 2 cooks, 2 bakers, 2 baristas, 2
marketers) $10hr, 40hrs/week, 18 weeks
$57,600
Overhead
Rent (13,200 month)
$52,800
(Assuming ~$20 per sqft, and it is a 660 sqft building)
Phone/internet ($100 month)
$400
Comcast
Utilities ($1000 month)
$4,000
BGE
Office supplies (Pens, Paper, Receipt Paper, Folders, Files,
Binders)
$750
OfficeMax
G & A Costs ($20hr, 40hr/week, 18 weeks, 4GMs)
$57,600
Marketing & Sales (flyers / social media)
$5500
~$165 per ad rate - gaebler.com
Professional Consultants
$2,000
Forbes ($80 hr, $640 day)
Capital Equipment
Cecilware EP2-220V Venezia II Two Group Espresso
$3,399.00
JES Restaurant Equipment
Bean roaster
$1,500
Ebay
Coffee grinder
$1,059
Restaurant Depot
Bunn CWTF15-3 12 Cup Automatic Coffee Brewer with 3 Lower
Warmers & Hot Water Faucet - 120V (Bunn 12950.0212)
$589
The WEBstaurant store
Ovens w/ stove
$5,500
JES Restaurant Equipment
Dishwasher
$3,500
JES Restaurant Equipment
Refrigerator & Freezer
$7,000
Sam’s Club
Cookware(pots, pans, bowls, utensils)
$800
Restaurant Depot
Remodel/construction costs
$40,000
Len the Plumber
Sparrows Painting LLC
Camden Court (Remodeling)
Total
$249,197
Operation Plan
Location: The Phoenix Café will be located in the heart of
Phoenix, Maryland. The address being:14237 Jarrettsville Pike,
Phoenix, Maryland 21131. This area is in between two shopping
centers, the Paper Mill Village Shopping Center and the Manor
Shopping Center. We chose this location because it is an area that
is easily accessible to our customers who either wish to relax, or
those who want to use the Phoenix Café as a quick pit stop before
shopping or going to work.
Floor Plan: The Phoenix Café's floor plan consists of two
lines:
· The First is the "Dine In" Line, is for our patrons who want
to take a break from the everyday, and just relax in our seating
area, where one of our employees will bring their food to them.
· The Second Line is the "In and Out" Line, this is for our
patrons who need their items to go in a hurry. These patrons will
order in this line, then wait at our pick up area.
In the seating area there will be a stage which will be used to
showcase local artist's works, and on the first on every Thursday
will be used for our monthly event.
Hours of Operation: Open 7 Days a week, from 6:00am-3:00pm. This
will hit the widest customer base as we will get those who work in
the morning, afternoon breaks, and those who are doing their
shopping during the day. The first Thursday of every month there
will be an event from 6:00pm-8:00pm with the store staying open
till 9:00pm.
The morning staff will come in at 4:00am every day to start
preparing for the day. The afternoon staff will begin to clean up
at 3:00pm.
Coffee Operations:
Our coffee will be organic and fair trade to be conscious of the
environment. This will make sure that the beans are grown without
chemicals, resulting in a better taste and that the growers are
paid accordingly. Our supplier for coffee beans will be
GreenBeanery (greenbeanery.ca), an online marketplace for coffee
beans that fulfills all our requirements. We will be roasting and
grinding the coffee ourselves purchasing the raw green coffee
beans. Roasting and grinding in-house will give us the greatest
freshness and flavour as well as many opportunities to create
different roasts and blends for new coffee flavours.
Supplies:
The Phoenix Café will be buying our supplies from the Restaurant
Depot (located on 3405 Annapolis Rd, Baltimore, MD 21230). Here we
can fill most of our needs including:
· Coffee supplies
· Baking ingredients
· Cups, utensils, etc.
We also will be using the Amish Market and local farms as well
for their fresh, organic dairy and fruit products.
We will make supply runs every Sunday and Thursday to the
Restaurant Depot and Amish Market, to make sure we are constantly
stocked on everything our business needs.
There will be coffee shipments every month from our distributor
(Exact Date to be determined).
As our business grows we will begin to include novelty items in
our store (shirts, mugs, etc.).
Management
For our coffee house we decided it would be best for the four
owners to create a LLC (Limited Liability Company). This will give
us some of the flexibility of a partnership, such as being a flow
through entity, but with the limited liability we would get if we
were a corporation.
Our business has decided to use the Flat Managerial style
(Forbes, 2014), as we are a small company, and the fastest ways to
get results will be through constant, direct feedback between the
employees and the general managers. For a clearer view look at the
Phoenix Café's Organizational Chart presented below.General
Managers:
· Jeremiah Paugh- Will be in charge of the supplies inventory,
by tracking inventory usage, buying supplies, and stocking
them.
· Benedict Hartmann- Will be in charge of the Marketing and
brand awareness in our company. He will be using social media as a
primary tool to help spread awareness as well as establish a
friendly online presence.
· Stacie Bruzdzinski- Will be in charge of the continuing
development and design of the company. Creating new ways to improve
efficiency within the company as well as new food/drink items we
will sell at the Phoenix Café.
· Joe Banner- Will be in charge of financials at the Phoenix
Café. He will also create the business's budget to keep us from
overspending.
All General Managers will also work with our employees,
assisting them as needed, and helping out when possible. There also
must be at least one General Manager opening and closing the
Phoenix Café every day.
The Phoenix Café will also be hiring employees to do a variety
of tasks. Employees will be broken down into two primary
shifts:
· First Shift (4:00am-10:30am)- This shift is in charge of
opening the store and getting everything prepared for the rest of
the day. They will also be taking care of the early morning
rush.
· Second Shift (9:30am-4:00pm)- This shift will come in to aid
the end of the morning rush, then maintain a certain cleanliness in
the store for the rest of the day before closing the store. This
shift will clean all the equipment and make sure it is ready for
the next first shift.
All employees will have a variety of tasks that they will need
to learn, so that they can work where they are needed for that day.
These tasks include but are not limited to:
· Barista
· Cashier
· Housekeeping/wait staff
· Cooking
For our company to become a success every employee, both the
general managers and employees, must work together fluidly to give
the customer the best experience possible, and to get them to come
back for future business.
Financials
The building that we will be renting has 660 square feet of
space inside the building. According to the cityfeet.com, who keeps
track of the available commercial buildings around the country, it
has Phoenix MD with an average cost of $20.00 per square foot
(Search Phoenix Retail Space, 2014) . This will give us a total
cost of $13,200 a month. Since we are just starting off it would be
a lot cheaper for us to rent the space in the beginning than paying
off the entire $547,000 office building.
Every partner will put in $25,000.
We will need to borrow $400,000 to use in the first 3 years to
handle start-up costs and the initial day-to-day operation of the
business until we start passing the break-even point which we plan
to by year 3 of opening up our coffeeshop.
For our business we will be opening it up in Phoenix, Maryland
and there will be a lot of legal fees that we will need to pay
according to the law. According to nolo.com, a website that keeps
track of the laws in different states and background information
for the legal structure, there are eight steps that we will need to
take in order for us to legally form a Limited Liability Company in
the State of Maryland (How to Form a LLC in Maryland, 2014).
1. Choose your name for LLC
a. Must make sure that the name must not be misleadingly similar
to the names of other business entities already on file with the
Maryland Department of Assessments and Taxation.
b. There is a $25 filing fee
2. File Articles of Organization
a. The articles must include: the LLC's name and address; the
LLC’s purpose; and the name, address, and signature of the LLC’s
registered agent.
b. The filing fee is $100
3. Appoint a Registered Agent
a. This is an individual or business entity that agrees to
accept legal papers on the LLC’s behalf if it is sued. A registered
agent may be any Maryland citizen who is over eighteen, a Maryland
corporation, or a Maryland LLC (Must have a physical address in
Maryland).
4. Prepare an Operating Agreement
a. An agreement signed by the members (owners) of a limited
liability company that structures the members' financial rights and
responsibilities, each member's percentage of ownership in the LLC
and share of profits (or losses), the LLC's procedures for holding
meetings, and what will happen to the business when a member
leaves. (Not required by the state but we will file with the
Articles of Organization)
5. Comply with other Tax and Regulatory Requirements
a. If your LLC has more than one member, it must obtain its own
IRS Employer Identification Number (EIN), even if it has no
employees. (No filing Fee)
6. File Annual Reports
a. All LLCs doing business in Maryland must file a Personal
Property Return [PPR] with the Maryland Department of Assessments
and Taxation Personal Property Division which serves as an annual
report.
b. The return is due by April 15 each year and must be filed by
mail.
c. The annual filing fee is $300 (the fee does not include any
state tax liability of the LLC).
7. ServSafe Certified
a. Cost is $125 per employee that needs to take the test
(Purchase ServSafe, 2014)
b. Certification would last 3 years
8. Must follow all Fire Safety Codes
9. File for a Building Permit the cost of the building permit is
$1,500.00 a year.
Breakdown of costs:
Product
Cost
Source
Building Costs:
Plumbing
$12,000
Len the Plumber
Electrical
$750.00
BGE
Bathroom Remodel (2)
$5,000
Len the Plumber
Construction of Kitchen/Dining Room Areas
$15,000
Camden Court
Water Heater - Tankless
$1,000
Air Gas
Stage Built (10X20ft)
$5,000
Camden Court
Total Building Costs
$38,750
Interior/Exterior
Tables (18)
$7,002 ($389) per Table
Access Furniture
Chairs (72)
$7,128 ($99) per chair
Access Furniture
Rocking Chairs (4)
$756 ($189) per chair
Access Furniture
Booth Tables (11)
$4,532 ($412) per table
Restaurant Depot
Booth Seats (15) (4 are one sided)
$11,460 ($764) per booth
Restaurant Depot
Trash Receptacles (4 in dining)
$1,119.96 (279.99) per can
Restaurant Depot
Trash Receptacles (6 in kitchen/behind the shop)
$389.44 ($64.99) per can
Waste Management
Painting
$6,000
Sparrow Painting LLC
Flooring
$6,500
Next Day Floors
Phone Installation
1,500.00 (Including first months charge)
Comcast
Fire Alarms (Including extinguishers)
$3,150
Cintas
Light Fixtures
2,400 (Includes kitchen, dining, and stage lighting)
Restaurant Depot
Miscellaneous
$1,500
Can be for delivery expenses, unanticipated costs, etc.
Small Sofas (6 for lounge seating)
4,050 ($675) per sofa
Access Furniture
Coffee Tables (6 for lounge seating)
1,499.94 ($249.99) Per table
Access Furniture
Menu Board
$550
Restaurant Depot
Chalk Wall Paint
$356
Home Depot
Curtains
$840
Access Furniture
Total Interior Cost:
$55,993.34
Equipment:
Mop Sink w/faucet
$325.38
Restaurant Depot
Coffee grinder
$1,059
Restaurant Depot
Bean Roaster
$1,500
Ebay
Cecilware EP2-220V Venezia II Two Group Espresso
$3,399.00
JES Restaurant Equipment
Bunn CWTF15-3 12 Cup Automatic Coffee Brewer with 3 Lower
Warmers & Hot Water Faucet - 120V (Bunn 12950.0212)
$589
The WEBstaurant store
Ovens w/ stove
$5,500
JES Restaurant Equipment
Dishwasher
$3,500
JES Restaurant Equipment
Refrigerator & Freezer
$7,000
Sam’s Club
Cookware(pots, pans, bowls, utensils)
$800
Restaurant Depot
3 compartment sink
$559.70
Restaurant Depot
Rinse off Sink
$239.65
Restaurant Depot
Pre-Rinse Faucet with Hose attached
$312.49
Restaurant Depot
EcoLab Attachments (Chemicals to dish machine)
(Soap and Sanitizer for 3-comp sink)
$760.00
EcoLab (Rep. George Bennet)
Reach In Refrigerator
$1,374
Restaurant Depot
US Ice Maker
$4,999.00
Restaurant Depot
Clear Display Refrigerator for desserts
2,449.00
Restaurant Depot
Hand Sinks (4)
$329.36
Restaurant Depot
Dry Storage Room (Includes Shelving)
$3,400
Restaurant Depot
Clear Refrigerator for drinks and fruits
$1,719.00
Restaurant Depot
Pass Through Toaster
$1,409
Restaurant Depot
Juicer for Juices
$3,479
Restaurant Depot
Blender
$394.49
Restaurant Depot
Piano
$550
Craigslist
Microwave
$219.99
Restaurant Depot
15 piece knife set
$40.00
Restaurant Depot
Lemon Slicer
$149.99
Restaurant Depot
Total Equipment Cost
$46,057.05
Office/Computer
Cash Safe
$259.65
Easter Lock and Key (Rep Drew Jackson)
Cash Registers (2)
$2,200.00
Micros System
Software for Cash Registers
$1,484.90
Micros Systems
Computer in office (4)
$2,000 ($500 per computer)
Best Buy
Stereo
$1,299.29
Best Buy
Kronos Time Clock/System
$4,235
Kronos
Credit Card System
$1,500
Bank of America
Total Office/Computer Cost
$12,978.84
Other Expenses:
Inventory
$5,000
Advertising
$5,500
Office Supplies
$750
General Supplies (Utensils for food/Display Dishes)
$600
Restaurant Depot
Promotional Events (Extra Electricity, food costs, advertising,
wages, etc)
$1,100
Wages (3,200 a week)
$12,800
Utilities
$1,000
BGE
Professional Consultant’s
$2,000
Forbes ($80 hr, $640 day)
Phone/Internet
$100
Comcast
Rent
$13,200
Average of $20 per sq ft. (Search Phoenix Retail Space,
2014)
Licensing Costs
$1,400.00
Total Other Expenses
$43,450
Total Startup Costs
197,229.23
Items we will need from Restaurant Depot
Item
Price
Paper Cups 10oz (1,000 Pack)
$35.63
Paper Cups 12oz (1,000 Pack)
$39.51
Paper Cups 16oz (1,000 Pack)
$44.42
Paper Cups 20oz (600 Pack)
$35.03
Paper Cup Lids 10, 12, 16, 20oz (1,000 pack)
$30.86
Sugar Pourer 12oz
$1.57
Instantwhip .4 oz (360 case)
$14.00
Non-dairy creamer 3g (1,000 pack)
$14.46
Sweet ‘N Low packet 1g (3,000 pack)
$15.96
Splenda Sweetener packet 1g (2,000 pack)
$32.22
Sugar Packet 2.8g (2,000 pack)
$11.47
Coffee Stirrers (Red and White 7in)
(10,000 a case)
$15.96
LBP 29500 4 Cup Drink Carrier 200 / Case
(Coffee Drink To-Go Container)
$50.65
Choice 10 1/4" Jumbo Wrapped Straws with Red Stripe - 2000 /
Case
Straws
$13.49
Plastic Bags (1,000 case)
$8.59
Clamshell Containers (400 case)
$46.53
Flour
$7.23 per 25 lbs.
Cooking Oil
$13.99 per
17.5 oz.
Organic milk
$4 per gallon
Sugar
$10.99 per 25LB Bag
Break Down of Coffee
Coffee 12oz
Selling Price is $1.76
Cost of Beans
$.30
Cost of Cups
$.04
Cream (1 .4oz cup)
$.03
Sugar (2 packets)
$.05
Overhead
$1.25
Donation to Charity
$.10
Total Cost:
$1.77
Works Cited
(2014, March 14). Retrieved from Organic Trade Association:
http://www.ota.com/organic/organic_and_you/coffee_collaboration/facts.html
(2014, March 15). Retrieved from US Census:
http://factfinder2.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ACS_12_5YR_S0801
3 Coffee Markets. (2014, March 2). Retrieved from Dolcera:
http://www.dolcera.com/wiki/index.php?title=Premium_Coffee_Consumers_Market_Segmentation#Coffee_Market:_USA
Access Furniture. (n.d.). Access Furniture. Retrieved April 20,
2014, from
http://www.accessfurniture.com/nsearch.html?query=ice+maker&x=0&y=0&vwcatalog=yhst-65086760668112&.autodone=http%3A%2F%2Fstore.yahoo.com%2Fyhst-65086760668112
America's Locksmith Services | Parkville, Maryland Locksmith.
(n.d.). America's Locksmith Services | Parkville, Maryland
Locksmith. Retrieved April 23, 2014, from
http://www.americaslocksmithservices.com/maryland/parkville.html
Camden Court. (n.d.). - Baltimore. Retrieved April 26, 2014,
from
http://www.ehardhat.com/directory/handyman/MD/baltimore/camden-court/394964
EBSCO. (2014, March 14). Retrieved from:
http://eds.b.ebscohost.com/eds/pdfviewer/pdfviewer?sid=f09929e5-00ac-484a-b1f0-fec5b62e73cd%40sessionmgr111&vid=6&hid=10
Ecolab Inc. Homepage. (n.d.). Ecolab Inc. Homepage. Retrieved
April 25, 2014, from
http://www.ecolab.com/
Food Services. (2014, March 20). Retrieved from Study Logic:
http://studylogic.net/services/food-services
Giovannucci, Daniele. 2009. The North American Organic Coffee
Industry Survey
Guzmán, M. (2011, October 25). Best coffee shops for work? Our
15 essential ingredients. Retrieved April 28, 2014, from geekwire:
http://www.geekwire.com/2011/best-coffee-shops-for-working-15-things-to-look-for/
Haderspeck, Jennifer. Beverage Industry. September 2013, Vol.104
Issue 9, p14-19. 4p. 3 Color Photographs, 3 Charts.
How to Form an LLC in Maryland. (n.d.).Nolo.com. Retrieved March
29, 2014, from
https://www.nolo.com/legal-encyclopedia/maryland-form-llc-31870.html
Is Flat Better? Zappos Ditches Hierarchy To Improve Company
Performance (January 7,2014). Retrieved from Forbes:
http://www.forbes.com/sites/sungardas/2014/01/07/is-flat-better-zappos-ditches-hierarchy-to-improve-company-performance/
Penetration Pricing. (n.d.). Retrieved April 30, 2014, from
Investopedia:
http://www.investopedia.com/terms/p/penetration-pricing.asp
Pearce, Lynn . "Brewpub." Business Plan Handbook . Farmington
Hills: Themson Gale, 2006. 9- 46. Print.
Purchase(n.d.) .ServSafe®. Retrieve March 30, 2014, from
http://www.servsafe.com/ss/catalog/productlist.aspx?SCID=22&RCID=21
Search Phoenix Retail Space. (n.d.).Phoenix Retail Space.
Retrieved March 23, 2014, from
http://www.cityfeet.com/cont/md/phoenix-retail-space#pgNum=4
Shop At Home Flooring. (n.d.). - Baltimore, Maryland, Washington
DC. Retrieved April 28, 2014, from
http://www.nextdayfloors.net/l
Spring Into Savings | Spring Sales on Grills, sheds, and Home
Improvement Items. (n.d.). Spring Into Savings | Spring Sales on
Grills, sheds, and Home Improvement Items. Retrieved April 29,
2014, from
http://www.homedepot.com/
To continue, please find your local store or log in.... (n.d.).
Find Your Local Store. Retrieved April 30, 2014, from
http://www.therestaurantstore.com/795/green-biodegradable-compostable-paper-take-out-containe
rs.html
Whats the Secret to a Successful Coffee Shop? (2014, March 21).
Retrieved from Forbes:
http://www.forbes.com/sites/quora/2012/12/20/whats-the-secret-to-a-successful-coffee-
shop/#
