A roof-top eco coffee shop business plan

1. Business
Plan
Elisabeth Präauer
Julia Berktold
Anastasiia Zakharova
Marcus Chomyszyn
Eleni Miltiadous
Anzhelika Kokhan

2. Idea
◦ innovative, rooftop café
◦ Objective: create a tranquil atmosphere in a hectic city
◦ incorporate a greenhouse and café setup on the top of a skyscraper
◦ pick fruit and vegetables directly from in-store plants

4. Vision
“Our vision is to give people the possibility to escape from
the traffic and the stress of a big city. We will provide the
opportunity to jump into the green life of nature and to
recharge the energy they need for their everyday life in a
big city. On the top of the skyscraper they can relax in a
calm environment.“

5. Mission
• to inspire and nurture the human spirit
• excellent quality
• pick the products directly from the plants
• eco-friendly & fair trade
• outstanding view & innovative café

6. Legal Status & Key Partnership
• Profit Organization
• General Partnership
•Several owners
•Profit is shared
• Company as investor
• Possibility of franchise

7. Objectives
• Brand value and eco-friendly image
•Restaurant Guide
• Commission to a healthier lifestyle
• Incremental income
•Sales surpassing 2.268.000 USD by end of first year
•Net profit: 450.000 USD by the second year
•Sales growth of 15% during first year

8. SWOT
Strengths
• Guaranteed guests
• Organic & healthy food
• Eco-friendly trend
• It‘s an experience
• Relaxing & peaceful place
with a great view
Weaknesses
• Higher price
• No „walking by“ guests
• Guests stay longer
• New & not established
KEY SUCCESS FACTORS

9. Cafés & Restaurants Industry
in the USA

10. General Tendencies
The number of restaurants has a tendency
To increase every year at about
8% in the United States.
The general trend toward healthy,
organic food becomes stronger
and more widespread every year.

13. Good thing to notice
The industry is expected to grow rapidly
with an additional 3,8% of annual per capita
expenditure in 2014 and can double by
the year 2018.

14. There are always two sides of the coin
Although the industry is very competitive,
profitability levels of leading restaurants
were about 15-20% in terms of EBIT
margins in 2013

15. Health consciousness concept
The US organic market expanded
by almost 12% in 2013.
Consumers have become increasingly
health conscious as well eco-friendly
concepts are gaining popularity.

17. External Factors
Economic
• Mostly recovered from financial crisis.
• Projected growth in most countries: Better time to invest, positive future.
• Organic products have high income elasticity
Technological
• No new technology needed
• Simple farming techniques and a standard coffee shop set-up.
Environmental
• Rising importance
• Aligned with our mission statement & objectives
Legal
• Minimum wages, Health & Safety regulations

18. Political
• Favourable, positive view towards eco-friendly businesses.
• Politically stable.
• No tax sanctions & potential for subsidies.
U.S EPA awarded $30,000 to organic gardening training in 2013. (Yosemite.epa.gov, 2013)
• Award for environmental skyscraper architecture: Bank of America tower

19. Social
• Follows trend of society: more environmentally conscious.
• Rising current issue, increases publicity of our business.
• New responsible consumer, especially in developed countries.
• Social Media amplifies this effect.

20. Competitor Analysis: Porter’s Five
Forces
Bargaining Power of Suppliers
•Buying standard, easily found goods.
•Many possible suppliers
•Reduces price as we have more bargaining power.
Competition within the industry
•New niche market, means no current competition
•Potential competition with “ground floor” coffee shops
•USP (Unique Selling Point)

21. Threat of Substitutes & Customer
Bargaining Power
Threat of Substitutes
•Bar alternatives; dance floors at chic
nightclubs.
•No café or relaxed area
•No Daytime area
•Overfilled & busy to maximise profit
Customer Bargaining Power
•In New York, high concentration of buyers
vs firm concentration in this market.
•Already high prices in the market: reducing
price sensitivity of our products.
“$60 mixed drinks”
“sit out and enjoy…”
“Rooftop bars”
“$300”

22. Threat of New Entrants &
Competitive Strategy
• Potential success will draw in new competitors.
• Existing sky-bars poise highest threat: low sunk costs.
• Clash with current business aims: clientele & atmosphere.
• Damage their current image: exclusive and expensive.
• Likely to still charge high prices.
• Also provides potential for joint ventures.

23. Company Profile Matrix
Our Business Rooftop Bars Ground floor Coffee shops
Key Success factors Weight Rating Weighted Score Rating Weighted Score Rating Weighted Score
Quality 0.3 4 1.2 5 1.5 2 0.6
Perception of value 0.2 5 1 5 1 2 0.4
Customer retention 0.2 4 0.8 1 0.2 3 0.6
Location 0.1 4 0.4 5 0.5 2 0.2
Cost control 0.2 3 0.6 1 0.2 5 1
Total 4 3.4 2.8

24. Target Market
Demographic Characteristics
◦Families
◦Parents
◦Children
◦Young Couples
◦Teenagers
Social Characteristics
◦ Urban residents
◦ Business people
◦ Environmentally sensitive
◦ Balanced Diet, health cautious
◦ Tourists

25. Product
Pricing Strategy
Reasonable price combined with high quality

26. Marketing Positioning
oGreen approach oEco Advertising
◦Recycling area
◦Low energy consumption
◦Use of glass
◦Sunlight
◦Sun heat
◦“Green” events

27. Marketing Positioning

28. Communication Strategy
Website
Social media marketing
◦Company Page
◦Focused advertising
◦Newsletters
◦Cookies, Analytics, SEO
Certifications
Word of mouth
Eco-marketing
Strategic collaborations
◦Environment-awareness websites,
magazines

29. 60
15
5 – 25 USD
General figures

30. 135m²+ 65 m²
250 m²
General figures

31. Financial analysis
Fixed costs: 44.500 USD
Variable costs: 52.500 USD
Sales: 18 USD * 350 persons per day * 30 days= 189.000 USD
Break-even chart: 115 persons per day

32. Organizational structure

33. Action Plan
• Identify the location 07.03 – 07.04
• Sign an agreement with owner of building 07.04-21.04
• Registration of the enterprise / Permission receipt 21.04- 21.05
• Order building materials 21.04-21.05
• Recruit builders 1.05- 21.05
• Construction process 21.05- 21.09
• Planting produce 21.07-21.09

34. Action Plan
• Order equipment 21.07-21.09
• Recruitment process 21.07-21.09
• Find the suppliers 21.06-21.09
• Equipment/furniture installation 21.09-1.10
• Order products 21.09-1.10
• Marketing Process 21.08-1.10
• Opening Day 01.10

35. Thank you for your attention!