Launching a New Coffee Shop
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The paper describes a new business venture for a coffee shop, including the future outlook of the industry and the industry trends that may affect the new venture. The paper addresses the legal and ethical issues surrounding the venture, the approach to raising capital for the venture and the obstacles to raising capital for the venture. The paper also relates that despite these challenges, it is believed that sufficient capital can be acquired, and the high margins and potentially high volumes associated with this business make it a valuable potential investment.
From the Paper:"The coffee shop industry is an established and highly profitable industry, but it is also one that is characterized by industry saturation, a high level of competition and strong fluctuations according to the economy. The current competitive environment is difficult. There are a number of major direct competitors and a nearly endless variety of indirect competitors. Major national competitors include Starbucks, Dunkin Donuts and McDonalds. There are also a number of strong regional and independent local competitors as well. Indirect competition comes from coffee served at the grocery store, gas station or office; or from other caffeinated beverages. The coffeeshop as a "third place" away from home and work comes under competition from bars, restaurants, shopping malls and a variety of entertainment facilities such as bowling alleys. Many of these competitors are well-financed, have established brands and reputations and compete vigorously with new entrants.
"The economic environment is not favorable for the industry at present. The current recession is at risk of a protracted recovery, as there is little political appetite for further stimulus and both unemployment figures and inflation measures are trending towards slower growth. The recession has hurt existing players in the industry that competed with premium strategy (Associated Press, 2008), as consumers traded down to cheaper alternatives to high-priced coffee shops."
Sample of Sources Used:
- No author. (2010). Arabica coffee price chart. MongaBay.com. Retrieved July 24, 2010 from http://www.mongabay.com/images/commodities/charts/arabica_coffee.html
- Coffee Research Institute. (2006). Coffee consumption in the United States. CoffeeResearch.org. Retrieved July 24, 2010 from http://www.coffeeresearch.org/market/usa.htm
- Associated Press. (2008). Economy brews some trouble for Starbucks. MSNBC. Retrieved July 24, 2010 from http://www.msnbc.msn.com/id/28057609/
Cite this Business Plan:
Launching a New Coffee Shop (2013, April 09) Retrieved January 20, 2021, from https://www.academon.com/business-plan/launching-a-new-coffee-shop-152648/
"Launching a New Coffee Shop" 09 April 2013. Web. 20 January. 2021. <https://www.academon.com/business-plan/launching-a-new-coffee-shop-152648/>