Coffee Shop Essay

The global spread of coffee growing and drinking all started with a curious goat and that’s what legends say. 9th century Ethiopian goat herder Kaldi drank a concoction made from the beans after seeing his energetic goats eat them. The Sufi monks of Yemen in the 15th century were said to drink it as well. During the 17th century when coffee was introduced to Europe, the popularity of cafes followed the same pattern as most coffee houses around the world. It quickly became a venue for people to congregate, exchange views, write poems, plays, and political testaments, conduct business transactions, participate in cultural exchange and often relax with a good book. The popularity of coffee shop had served as a mailing address, because many people were regulars. When you want to go to exchange news, share ideas and get advice, you go to a coffee shop. It has been that way for quite some time. Coffee shops had been places of learning; of making business deals; scientific, literary, political, philosophical, and economic discussions; and even the typical gossip. At the beginning of the nineteenth century nearly all coffee exported on the world market was produced by European colonies. Two-thirds came from French colonies. But despite the fact that the following century would witness what Eric Hobsbawm called â€Å"The Age of Empire† and Lance Davis termed â€Å"high imperialism†, colonialism would cease being important in coffee production. (Though colonies certainly continued to be vital to the production of tea and sugar. ) This occurred precisely at the same time that coffee consumption rose vertiginously in most European colonial powers. Coffee was treated differently than sugar and rubber in the nineteenth century Age of Empire because its low technological demands meant that an independent country richly endowed with the factors of production, Brazil, could begin producing on an unprecedented scale. Cheap fertile land and slave labor allowed coffee prices to plummet after 1820 and remain low until the last quarter of the century creating supply-induced demand. Brazil’s exports jumped 75 fold between independence in 1822 and 1899. World consumption grew more than 15 fold in the nineteenth century. Consumers were not very price conscious because they were long buffered from recognizing the price. If they drank in cafes, they were unaware of the type of coffee they were drinking. As the price of one sort rose, cafe owners often blended in cheaper substitute grades rather than raise their price. he same seems to have been true for grocers. Rather than risk losing their clientele, they competed on blends, not on price. They also sought to keep prices constant. Price rises were often not passed on to the consumer. Instead, cheaper blends were used or grocers reduced their profit margin. Moreover, as coffee sipping became customary and even habit-forming, it was transformed into a necessity for many. As a result, coffee in the twentieth century became price and income inelastic. Thus we are presented with the irony that the international coffee market at the turn of the twentieth century, one of the world’s largest commodity markets, was relatively price inelastic (within in a reasonably large range) at both the production and the consumption end, though profit-driven commercial and industrial intermediaries were extremely conscious of price. In other words, it was quite imperfect. The Philippine Coffee Company (PCC) says the first coffee tree was introduced in Lipa, Batangas, in 1740 by a Spanish Franciscan monk and soon spread to neighboring towns of Ibaan, Lemery, San Jose, Taal, and Tanauan. â€Å"Batangas owed much of its wealth to the coffee plantations in these areas and Lipa eventually became the coffee capital of the Philippines. We are one of the few countries that produces the four varieties of commercially viable coffee: Arabica, Liberica (Barako), Excelsa, and Robusta. This is attributed to the country’s climate and soil ranging from the lowlands of southern Luzon to the mountain ranges of the Cordillera and Mindanao. â€Å"In 1880, the Philippines was the fourth largest exporter of coffee beans, and when the coffee rust hit Brazil, Africa, and Java, it became the only source of coffee beans worldwide,† PCC says. Our glory days as one of the world’s coffee centers lasted until 1889 when coffee rust hit the Philippine shores, coupled with an insect infestation. Production plunged to 1/6th its original amount. By then, Brazil had regained its position as the world’s leading producer of coffee. A few of the surviving coffee seedlings were transferred from Batangas to Cavite, where they flourished. Our ranking fell because many of the coffee growing areas – like rice fields and salt beds of Las Pinas – were eaten by housing and commercial developments. Less area was allotted to coffee because farmers had shifted to other cash crops. Today’s Coffee is one of the world’s most popular beverages. Some claim it is the most widely consumed liquid in the world aside from water. Coffee’s success as a beverage undoubtedly owes both to the caffeine it harbors and to its sensory pleasure. Coffee lovers come to associate the energizing lift of the caffeine with the richness and aroma of the beverage that delivers it. In our culture, bookstores are also seen as social, intellectual and downright hip. Many bookstores are a place of community where people gather and know one another and talk. The atmosphere in a bookstore typically invites customers to relax and browse the shelves. The concept of a bookstore and coffee house is a good combination that will perfectly gives the bookworm persons and a coffee lover the opportunity to purchase their favorite titles and discover new books while relaxing and enjoying a cup of coffee. The Company is then formed because of the said conceptualized idea and inspiration. COMPANY PROFILE The name of the company will be CTB that stands for COFFEE, TABLE, BOOK. The company’s name was originated from the idea of coffee table book which means a hardcover book that is intended to sit on a coffee table or similar surface in an area where guests sit and are entertained, thus inspiring conversation or alleviating boredom. They tend to be oversized and of heavy construction, since there is no pressing need for portability. The Company CTB will be a combination of piles of books ready for reading and a comfortable cafe that provides place for bookworms to sip coffee and talk with their friends while enjoying their books. It is a modern type of library and a much more public place for reading with a twist for having a cafe in it. It is a very interesting place for a person who wants to meet new people who are also interested in reading, studying and exploring new things and ideas through books. The cafe is really just an addition to the whole idea. It gives new impression to reading. Reading with a cup of coffee or tea with you is a lot better than reading without anything to drink or eat. It’s a higher level of coming into a public place to look for interesting books and a cafe with it. TAGLINE â€Å"Cool your coffee and bring it closer to your heart and mind. † Our tagline represents our business in the most promising way. We decided to state it as cool your coffee, â€Å"cool† meaning call your coffee. Cool because we want it to be mind-teasing and catchy so that customers will notice the line and think. Call your coffee and order it in the CTB shop to relax while reading your favorite novels and bring it closer to your heart and mind. Customers will definitely bring it closer to their heart because the coffee goes to the heart and down to the veins of an individual. The heart and the mind as we all know, is really Like Coffee, Table, Books shop, customers will hold our business close to their hearts and mind, remembering every moment they’ve had with us. Every learning they will earn with what they have read, we are assuring them that they will treasure everything we have shared with them forever. LOCATION The CTB store is located in 1199 unit 5 ground flr. Lemon Square Building, Edsa, Munoz Quezon City with the size of 102. 50 square meters. There are adequate parking space and have reasonably priced per square meter. Rental payments as well additional payment will be stated within the leasing terms including the registration of utilities and amenities. BUSINESS DESCRIPTION VISION To become the foremost Coffee shop in the local and international industry providing the best products and high quality experience. MISSION. To create a unique, comfortable and relaxing environment while enjoying the best hot and cold coffee drinks at an affordable price making it perfect. GOALS AND OBJECTIVES †¢ To increase the frequency of customers’ visitations. †¢ To maintain positive sales growth and increase market share. †¢ Increase brand awareness †¢ To open new branches of stores nationwide every year. †¢ To ensure that equipments used for cold and hot coffee drinks are well-maintained and in good condition. †¢ Develop new products and innovate services yearly. †¢ Develop an increase in sales while achieving a status quo state and decrease in marketing expenses. †¢ To create a cozy and relaxing ambiance. †¢ To give seminars and trainings to employees and retain their Standard Operating Procedures. †¢ To improve promotional activities and advertisements quarterly †¢ To listen and implement feedbacks, suggestions and opinions of customers for the improvement and betterment of the business. COMPANY’S FORM OF ORGANIZATION The company CTB is a sole proprietor type of business because the owner’s primary purpose is to generate profit. A sole proprietorship is a business owned by a single individual. This sole owner is responsible for the entire business and accepts complete responsibility for the business’s liabilities, as well as its income. Unlike other legal structures, the sole proprietorship requires less paperwork and is subject to few business restrictions and regulations. ? Characteristics of Sole Proprietor Management and Control A sole proprietorship is operated by a single individual; thus, the sole proprietor has exclusive management and control of the business. Personal Liability A sole proprietor is personally liable for all obligations and debts of the business. Thus, the business assets and personal assets of the sole proprietor are subject to the risks of the business. Moreover, in California, if the owner is married, the martial community property is at risk and subject to attachment by creditors. If the business is conducted under a name which does not show the owner’s surname or implies the existence of additional owners, the owner is required to file a fictitious name certificate and publish a notice in the newspapers. Capitalization There are no rules governing capitalization of a sole proprietorship. Continuity of Existence The sole proprietorship continues as long as the sole proprietor desires to operate the business and is legally competent. If the business owner is adjudged legally incompetent, becomes incapacitated, or dies, the sole proprietorship ceases to exist. An owner may sell the business as he or she chooses. Taxation A sole proprietor is taxed on business income and may deduct allowable business expenses on his or her personal income tax return. ? Advantages of Sole Proprietor Easy formation: The formation of sole proprietorship business is very easy and simple. No legal formalities are involved for setting up the business excepting a license or permission in certain cases. The entrepreneur with initiative and certain amount of capital can set up such form of business. Direct motivation: The entrepreneur owns all and risks all. The entire profit goes to his pocket. This motivates the proprietor to put his heart and soul in the business to earn more profit. Thus, the direct relationship between effort and reward motivates the entrepreneur to manage the business more efficiently and effectively. Better control: The entrepreneur takes all decisions affecting the business. He chalks out the plan and executes the same. His eyes are on everything and everyone. There is no scope for laxity. This results in better control of the business and ultimately leads to efficiency. Promptness in decision-making: When the decision is to be taken by one person, it is sure to be quick. Thus, the entrepreneur as sole proprietor can arrive at quick decisions concerning the business by which he can take the advantage of any better opportunities. Secrecy: Each and every aspect of the business is looked after by the proprietor and the business secrets are known to him only. He has no legal obligation to publish his accounts. Thus, the maintenance of adequate secrecy leaves no scope to his competitors to be aware of the business secrets. Flexibility in operations: The sole proprietorship business is undertaken on a small scale. If any change is required in business operations, it is easy and quick to bring the changes. Scope for personal touch: There is scope for personal relationship with the entrepreneur and customers in sole proprietorship business. Since the scale of operations is small and the employees work under his direct supervision, the proprietor maintains a harmonious relationship with the employees. Similarly, the proprietor can know the tastes, likes and dislikes of the customers because of his personal rapport with the customers. Inexpensive formation and management: The cost of formation of a sole proprietorship is the minimum because no cost is involved in its formation excepting the license fee in certain cases. The management of the business is also inexpensive as no specialists are normally appointed in various functional areas of the business which is the added advantages. Free from Government control: Sole proprietorship is the least regulated form of business. Regulated laws are almost negligible in its formation, day-to-day operation and dissolution. Easy dissolution: Like that of formation, the dissolution of the sole proprietorship is also very easy. Since the proprietor is the supreme authority and no regulations are applicable for closure of the business he can dissolve his business any time he likes. Socially desirable: New and small entrepreneurs can take up business on small- scale basis. There will be no scope for concentration of wealth in few hands. Sole proprietorship continues its operation in almost each and every area of business activity and caters to the need of the society. Further, it provides ample opportunities for large-scale self-employment for rural and less skilled personnel. Thus, it is socially desirable. PRODUCTS AND SERVICES CTB will offer its customers the best tasting coffee beverages in the area. This will be achieved by using high-quality ingredients and strictly following preparation guidelines. The store layout, menu listings and marketing activities will be focused on maximizing the sales of higher margin espresso drinks. Along with the espresso drinks, brewed coffee, as well as some refreshment beverages will be sold in the coffee shop. CTB will also offer its clients, cookies, muffins, sandwiches and bread. On the other hand, the store offerings will be supplemented by small range of books, magazine and other references that customers can read while drinking coffee. PRODUCTS: COFFEE AND ESPRESSO Regular Coffee Americano Cappucino Macchiato *Caramel & Hazenut Caffe Latte Caffe Mocha ICED COFFEE Iced Americano Iced Cappucino Iced Macchiato *Caramel & Hazelnut Iced Latte Iced Mocha Latte NON COFFEE HOT DRINKS Hot Chocolate Hot Vanilla NON COFFEE FROZEN DRINKS Chocolate Mocha Vanilla Cookies and Cream Hazelnut BAKED GOODIES Sandwiches and Breads Muffins Cookies Croissants Donuts PRODUCT RESEARCH AND DEVELOPMENT The Product Research and Development Plan of CTB will provide a clear framework of challenging targets for the consumer over the next years. Strategic view of the needs and opportunities to achieve outcomes that meet the expectations of industry will be the key to the success of this plan. Within the next two years, the company was expected to branch out in different areas of Metro Manila and other provinces. As seasons change, CTB will be offering products that will enhance sales and satisfy its customers’ desires. During summer months, CTB will subsidize lower hot beverage sales with frozen coffee drinks, as well as soft drinks, and other cold beverages. CTB will also have special beverages during holiday seasons. The CTB will carry a variety of quality products that will enable to provide full service delivery to espresso stands and coffee houses that will be offered 1 year after the store was established. The company’s underlying philosophy in selecting products is to choose lines that will bring consistent quality, competitive prices, and product satisfaction to our customers. TARGET MARKET CHARACTERICTICS |CHARACTERISTICS |PRIMARY |SECONDARY | |LOCATION |Nearby school/offices and establishments |Nearby residents of District 1 and 2 of Quezon | | | |City | |AGE |16-35 |36-59 | |GENDER |Male and Female |Male and Female | |OCCUPATION |Students/ Company employees |Entrepreneurs | |STATUS |Middle Class |Upper Class | |TYPE OF BUSINESS ESTABLISHMENT |Schools/ Company offices |Commercial Buildings and Banks | SURVEY QUESTIONS 1. Age_________ Gender _________ Occupation _________ 2. How often do you visit a coffee shop within a month? o 1-2 o 3-4 o 5-6 o 7-more 3. How many cups of coffee do you consume in a day? | | |1 cup per day | |2-3 cups per day | |Greater than 3 cups per day (How many? ) | | | | | |4. What kind of coffee do you usually buy/order? | |Regular coffee | |Espresso | |Latte | |Iced Coffee | |Other____ (specify) | | | |5. Which snacks do you regular purchase? | |Donut | |Muffin | |Cookies | |Sandwiches | |Cake slices | |Pastries | |Other________(specify) | | | | | |6. How much do you spend in each month in coffee shop? | | | |Maximum 1000 | |Minimum 100 | |Average 350 | |Sum 1,400 | | | |7. What is the reason why do you want to go to a coffee shop? | |To release stress | |To study/read | |Social gathering | |Drinking habit | |Others_______(specify) | MARKET SIZE AND TRENDS Coffee is the drink of choice for many people across the world which is the reason why coffee shops are so popular. People love coffee, so many small business people capitalize on this by opening up coffee shops. Some coffee shops provide Internet access so that people can use their laptops while they enjoy their coffee. This is especially helpful for busy students on the go. The coffee shop trend continues because there is a huge demand for it. If you took a road trip across America, you would find coffee shops on just about every corner. While the biggest and most well-known chain is Starbucks, you will also see many mom-and-pop coffee shops or small coffee shop stands. Even gas stations sell coffee to truckers and other travelers on the road. Brazil has by far the most coffee drinkers worldwide, so you will certainly notice that the coffee shop trends are very popular in Brazil. Some people even say that they can smell the aroma of coffee in the air. Coffee with no sugar or added creamers has no calories, and coffee shops have come up with the trend of offering many coffee drinks and treats that are low-fat. Our generation grew up thinking of coffee as a morning pick-me-up and after dinner drink for adults only. The 18-24 year old group has a different view of coffee, thanks to the coffee shop culture. Where older generations gathered at the local soda shop, these kids made the local coffee shop their afternoon hangout. Starbucks and other local chains improved their coffees with flavors, sugar and many creams. This makes their coffee more appealing to the younger crowd. As those kids graduate from high school and move on to college, they’re finding that their love of coffee moves along with them. MARKETING STRATEGY CTB’s marketing strategy will be focused at getting new customers, retaining the existing customers, getting customers to spend more and come back more often. Establishing a loyal customer base is of a paramount importance since such customer core will not only generate most of the sales but also will provide favorable referrals. †¢ PRODUCT LINE. | | | | | |COFFEE |NON COFFEE HOT DRINKS |NON COFFEE FROZEN DRINKS |FOOD | |Iced Coffee |Hot Chocolate |Chocolate |Sandwiches and Breads | |Latte |Hot Vanilla |Mocha |Muffins | |Frap | |Vanilla |Cookies | |Espresso | |Cookies and Cream |Croissants | | | |Hazelnut |Donuts | †¢ POSITIONING The company will be positioned as a brand providing high quality products at reasonable prices for busy, mobile people whose time is already at a premium, but desires refreshing beverages in a welcoming space that fosters a warm, comfortable and professional environment. †¢ DISTRIBUTION CHANNEL Distribution channels move products and services from businesses to consumers and to other businesses. Given the importance of distribution channels along with the limited resources generally available to small businesses it is particularly important for entrepreneurs to make a careful assessment of their channel alternatives, because an effective channel of distribution strategy is also a major contributing factor for the success of any business entity to be established. Raw materials will be purchased from the suppliers and then delivered to the house of the sole proprietor for storage. The ingredients needed for the production of the final product are made available at the food stall processed into a final product to be served to the customers. The proposed business can offer and acquire sales directly from the market because it has the advantage of having the direct contact with the consumer. †¢ ADVERTISING AND PROMOTIONS We would adopt the following promotion strategies: o Loyalty Cards. o Coffee Feedback Cards o Refills only half the price o Coffee tasting event promotion o Seasonal product promotion o Meal-Focused Promotions o Provide Complementary Services and Products o Print Advertisements in different designated locations o Social Networking (engage fans in twitter, Facebook, Youtube and other photo sharing sites. ) MANAGEMENT PLAN Background and primary responsibilities of the management team In any business, employees have important roles in an organization towards achieving the business’s goal. The management aspect of COFFEE,TABLE,BOOK or CTB is composed of proposed techniques and strategies that will be used for the improvement of its employees. These can be done through proper hiring and training of workers. Every employee have their specific duties and responsibilities in building up a business. There will be a designated work and section for each of them in a period of time. The shuffling of assigned tasks are expected for the employees’ versatility and for them to be an effective, efficient and knowledgeable about their jobs. With proper utilization of its resources, it would be sure that the company will yield its expected return of income. The success of this project lies on the efficient and effective use of human resources in the following functions of management such as planning, organizing, directing and controlling. The top management of the business shall carry out its responsibilities by governing its employees and being responsible in taking in to actions the policies of the company. Also, they will be in charge of monitoring and supervising the trainees and former employees as well. It is very substantial to know the capacity and capability of the people working inside the organization and their manner of interrelationship with other employees as well as with the management. A manager will look after the employees and will assure that every employee are working and striving for the business standards. Overall, every person shall work effectively and contribute skills in order to achieve success of the organization. CTB Coffee,Table,Book [pic] by: Busita, Lorica R. Dionco, Criselda Marie A. Dumencel, Roshell B. Reyes, Jenny Lyn M. Rivera, Juvia Katte M.