Question

7. Joe Latte wants to open up a coffee and gelato shop. He figures with the popularity of coffee shops and Italian ice cream shops that a combination business will be a dear winner. Write a two-page paper describing the following elements of a business plan: description of the business, factors affecting location, and product or service to be offered

the subject should be acconting for entrepreneurship

Answer 1

Business plan for a coffee and gelato shop

Description of the business:

Joe Latte’s intends to be a player in the broader food and beverages industry with focus on two product lines initially - coffee and gelato. The objective is to capture maximum share of the dessert industry by providing two of the most popular leisure / dessert products under same roof.

Coffee industry and ice cream industry are two of the biggest industries not only in the US, but all over the world. Coffee being a staple is relished by all age groups, from young to old, except very young children, and gelato being a savory niche product is also demanded by all age groups, especially young, may be lesser by the old.

Joe Latte’s coffee and gelato shop will be the go-to place for young people who relish ambience of the place in addition to taste of the product. We intend to serve highest quality coffee and gelato in a trendy, comfortable atmosphere. The target audience will be young people in the age bracket 15 to 40 years, which will cover students, college-goers, professionals, middle-aged people who would love to enjoy coffee or gelato in the trendy as well as leisurely ambience that we intend to provide. Our service quality will be par excellence to ensure we grow our customer base consistently and not lose out to competition.

We intend to provide gourmet coffees and gelato since the young generation is always seeking something new and is willing to spend extra on gourmet products. This way we intend to position our shop as a high-end coffee and gelato shop. We expect to earn huge revenues by locating our store strategically at a prime shopping area of the city in the vicinity of main schools, colleges and offices.

Location of the shop:

We intend to locate our coffee and gelato shop at a prime shopping location with main schools, colleges and workplaces of the city in the vicinity. This will ensure we are within easy reach of our target population of young people.

The location depends on various factors but the main factor being vicinity of the target population since it is what will generate revenues. Other factors include cost-effectiveness of the location in terms of rent amount / lease amount of the shop, availability of sufficient space to offer comfortable and leisurely sitting to our customers and how many competitors are already there in the vicinity (too many competitors already in a particular location will reduce the probability of our business thriving despite unique product proposition).

Product / Service to be offered:

Joe Latte’s intends to offer two product lines - coffee and gelato. It aims to serve gourmet coffees and gelatos including a wide range of espressos, cappuccinos, and exotic varieties. The product proposition is decided keeping in mind the liking of the target population, which is mainly young students and young professionals. Such target population always needs something more and is easily bored of regular product varieties which are available at ten places. To attract the young, we intend to have niche product proposition. In the future years, based on the success of these two product lines, we intend to expand to other product lines too such as snacks.