Requiem Business Plan

Executive Summary

1.1 Objectives

1.2 Keys to Success

1.3 Mission

Company Summary

2.1 Company Ownership

2.2 Start-up Summary

2.3 Company Locations and Facilities

3.1 Product Description

3.2 Sales Literature

Market Analysis Summary

4.1 Market Segmentation

4.2 Target Market Segment Strategy

4.2.1 Market Needs

4.3 Industry Analysis

4.3.1 Competition and Buying Patterns

Strategy and Implementation Summary

5.1 Competitive Edge

5.2 Sales Strategy

5.2.1 Sales Forecast

Management Summary

6.1 Management Team

6.2 Management Team Gaps

6.3 Personnel Plan

Financial Plan

7.2 Projected Cash Flow

Executive Summary

Requiem is a gaming themed coffee shop dedicated to serving night owls and nerds by providing great drinks and tasty treats in a fantastical atmosphere. Whether you love books, comics, games, role playing, or anything sci-fi or fantasy, Requiem will give you the perfect environment to enjoy your passions and find others who enjoy them as well. There is a huge demand for quality specialty coffee in the LA/OC area as well as outlets and meeting points for those in nerd culture. Requiem will capitalize on these demands and maximize our repeat customer base by being very community oriented with special events, activity space for our guests, and a safe and friendly environment for anyone who needs a place to go. Requiem will offer delicious themed speciality drinks as well as themed pastries prepared by our own pastry chef on staff.

Requiem will operate from a beautiful 2,520 sqft space in the Center Street Promenade, just around the corner from Disneyland in Anaheim California. Initial capital required to start up this business is $240,000, which will be provided through a combination of personal finances and an SBA loan.

Based on sales of specialty coffee shop sales in similar areas, Requiem can be expected to gross $1,088,500 a year in revenue through sales of food and drinks, retail merchandise and bean sales, and membership programs for our other services. Requiem will strive to maintain a 75% profit margin on our drinks and maintain reasonable operating expenses.

1.1 Objectives

Requiem's objectives for the first year of operations are:

• Establish a reputation for our stunning atmosphere and unique environment for socializing and entertainment as well as our excellent coffee and other themed drinks.
• Establish an marketing campaign for attracting business from our designated demographics and run special events to attract large amounts of business.
• Maintain a high profit margin on our products while increasing sales by 15% or more every year.

1.2 Keys to Success

The keys to success will be:

• Store design featuring influences and characteristics of video games and other elements familiar to those in nerd culture that will be both visually stunning to customers.
• Outstanding locally brewed coffee and delicious themed drinks and pastries.
• Employees trained to provide excellent service, prepare great drinks, and maintain the fantasy based atmosphere of the environment.
• Marketing strategies aimed to build a solid base of loyal customers, as well as maximizing the sales of high margin products, such as espresso drinks.
• Capitalizing on the corporate offices in the area by directly supplying them with our goods and services.

1.3 Mission

Requiem will create a unique magical place where customers can socialize and game with each other in a comfortable and relaxing environment while enjoying delicious food and drink.  We will establish a safe and friendly community with strict anti-harassment policies so we can provide the ultimate escape for anyone who wants to join us. We will provide an atmosphere unlike any other in a convenient location for travelers coming to Southern California and we expect to be a unique “must go” destination for gamers, geek-culture aficionados, convention goers, and members of various pop-culture fandoms to try our themed products and take photos. Requiem will continually invest its profits into the betterment of its facilities and the employees we hire.

Company Summary

Requiem, an Anaheim based company, sells coffee, tea, other beverages and a limited food menu in its 1,520 sqft premium cafe located near the Disneyland Resort.

2.1 Company Ownership

Requiem is created and owned by Kristopher Irons and Gabriel Stempinski. All art assets belong to Requiem with rights retained by their respective artists.

2.2 Start-up Summary

The start-up expenses total $221,775 and include:

      The start-up includes these expenses:

•  Architect fees: $10,000
• ●       Legal expenses for obtaining licenses and permits as well as related accounting services: $1,300
• ●       Marketing promotion, merchandise, art assets, 3D renderings, website, etc: $10,000
• ●       Semi annual insurance (general liability, workers' compensation and property casualty) coverage: $4,400
• ●       Down payment and prepaid rent expense for one month: $9,400
• ●       Interior remodeling and decorating:
• ○    Walls and Floors: $26,000
• ○    Kitchen plumbing, sinks, mop basin: $3,000
• ○    Counters: $5,850
• ○    Shelving and storage solutions: $1,900
• ○    Furnishings, $25,000
• ○    Interior and Exterior Signage: $4,500
• ○    Bathroom fixtures: $3,000
• ○    Lighting fixtures: $5,000
• ○    General Decor: $10,000
• ●       Other start-up expenses including utility deposits and delivery services: $2,000
• ●       Operating capital including three months of employee wages, and cash reserves for the first three months to cover rent and stock: $50,000
• Total this section: $162,450
• Start-up assets for kitchen equipment includes:
• ●       Industrial mixer: $600
• ●       Convection oven: $6,980
• ●       Soda dispenser: $1,600
• ●       3 drink fountains: $1,200
• ●       Retail supplies: $1,000
• ●       Two-nozzle Espresso Machine: $12,500
• ●       Coffee Maker w/warmers: $600
• ●       Airpots: $400
• ●       2 door microwave: $650
• ●       Industrial refrigerator: $4,500
• ●       Chilled Display Case: $3,895
• ●       Coffee Grinder: $704
• ●       Double lid Panini Press: $350
• ●       Bins, utensil rack, shelves, food cases: $800
• ●       Ice Machine: $1,500
• ●       Plates, Glasses, flatware: $750
• ●       Cash register, security, safe: $2,800
• ●       Misc Kitchen Equipment: $1,500
• ●       Sound system: $4,500

• Total this section: $46,825

• Startup food inventory:
• ●       Initial stock of coffee beans, assorted teas, and other beverage supplies: $4,500
• ●       Initial stock of flour and other pastry ingredients: $800
• ●       Beer, wine, soda, bottled water: $3,650
• ●       Beverage mixes, fruits, and smoothie ingredients: $750
• ●       Salads, sandwiches, premade goods: $800
• ●       Flavor syrups, spices: $500
• ●       Other edible goods: $1,500
•  
• Total this section: $12,500
• Grand total: $221,775

2.3 Company Locations and Facilities

Requiem will be located in the corner unit of the Center Street Promenade of Anaheim Street and Center Street in Anaheim, CA. We will secure a lease for this 1,520 sqft unit which was previously a Sandella’s restaurant.

The floor plan will include a large indoor seating area and an outdoor seating area which will fit 15 tables. Additional facilities on the premise include a large kitchen, a storage area, and one unisex bathroom. The seating area will be divided thematically into different sections with aesthetics, seating, and activities suited to the environment. These sections include an art deco/steampunk coffee bar, a forest area, a stone castle area, and a science fiction space station area. The interior will be redesigned into the likeness of the following images:

This property is located in the commercial and hip Center Street Promenade area, a short drive from Disneyland in a corner spot. The commercially zoned premises have the necessary water and electricity hookups and will require only minor remodeling to accommodate the espresso bar, kitchen and storage area. All decorative renovations will be done with facade based methods and will not modify the foundation of the location. Requiem’s video game aesthetics will stand out as an eclectic place where people can relax and enjoy a meal or a beverage in a fresh and exciting atmosphere. We will utilize aesthetically pleasing outdoor art to draw in customers.

Products

Requiem will offer its customers unique food and drink options including the best tasting coffee beverages in the area. This will be achieved by using high-quality, locally sourced ingredients, small batch preperation and strictly following preparation guidelines. The store layout, menu listings and marketing activities will be focused on appealing to a diverse crowd by providing themed food and drink with an extensive menu of high margin espresso drinks. Requiem will also offer its customers pastries and other snacks. For the gourmet clientele that prefers to prepare its coffee at home, Requiem will also be selling coffee beans.

We will offer plenty of space for reading, gaming, and socializing with books, board games, and unique social interaction options. These will ensure return habitual customers.

3.1 Product Description

The menu of the Requiem coffee bar will be built around espresso-based coffee drinks such as lattes, mochas, cappuccinos, etc. Each of the espresso-based drinks will be offered with whole, skim, soy, almond, or coconut milk. Each of these coffee beverages is based on a 'shot' of espresso, which is prepared in the espresso machine by forcing heated water through ground coffee at high pressure. Such espresso shots are combined with steamed milk and/or other additives like cocoa, caramel, etc., to prepare the espresso-based beverages. Proper preparation techniques are of paramount importance for such drinks. A minor deviation from the amount of coffee in the shot, the size of the coffee particles, the temperature of milk, etc., can negatively affect the quality of the prepared drink.

3.2 Sales Literature

While we will utilize aggressive local advertisement methods upon opening, we will establish our popularity using online social media options. We will advertise at conventions such as Comic Con and Anime Expo in order to attract our specific demographic. Additionally we will meet and greet local corporate offices and offer our services for supplying their coffee needs daily. We will send out regular updates on our seasonal selection of drinks and food items.

Market Analysis Summary

U.S. coffee consumption has shown steady growth, with specialty coffee shops having the strongest growth. Coffee drinkers in Southern California are particularly high in demand and favor exciting gourmet coffee drinks. Requiem will strive to build a loyal customer base by offering a great tasting themed coffee drinks in a magical environment of its coffee bar located close to Disneyland.

4.1 Market Segmentation

Requiem will focus its marketing activities on reaching the night owl and nerd communities. These include fan clubs, gaming groups, and many demographics which find Disneyland attractive. With membership programs to keep us open late at night as an additional revenue stream and a late night menu, our designated demographic will prove continuously profitable for us. Since gourmet coffee consumption is universal across different income categories, proximity to Disneyland and freeways that lead to nearby conventions will provide access to our targeted customer audience. We will receive additional income beyond our appealing demographic by supplying local corporate offices with our goods.

4.2 Target Market Segment Strategy

While Requiem has broad appeal for its gorgeous designs and stellar drinks, we will cater to two specific popular demographics of the area: night owls and nerds. Such customers vary in age, although our location close to Disneyland and nerd conventions means our primary demographic will be in their teens to 30s. Marketing will come easy with exciting art and advertising. The Requiem marketing page has already been shared over 400 times in just 1 month on Facebook with minimal marketing of $5 per day using their advertisement feature without it even being open. Our exciting and unique design guarantees our popularity and we will bring business to the Promenade area which wouldn’t go there otherwise. Additional steady income will be achieved by offering deals and drinks to local business offices, who are shown to be high consumers of coffee.

4.2.1 Market Needs

General trend toward quality among U.S. consumers definitely plays an important role in the recent growth in specialty coffee. Additionally, such factors as desire for small indulgences, for something more exotic and unique, provide a good selling opportunity for coffee bars. Our appeal to those in nerd culture who enjoy books, games, movies, has been proven by millions who attend events like Comic-Con, Anime Expo, Wonder Con and more. Everyone who goes to those events is a potential customer who will love going to Requiem as well.

4.3 Industry Analysis

Coffee consumption has shown a steady 2.5% growth rate in the United States over the last decade. In 2015, total sales of coffee were approximately $48 billion with gourmet coffee representing 55% (or $26.4 billion) of that. The retail coffee industry is flourishing in Southern California. Iced drinks will be particularly popular with our balmy weather year-round with hot drinks catering especially to the night owl crowd. Further, coffee has really become a part of the lifestyle in Southern California. Its discerning coffee drinkers are in favor of well-prepared, strong coffee-based beverages, which they can consume in a relaxing environment.  Additionally the “Fast Casual” dining concept is rising in popularity.

4.3.1 Competition and Buying Patterns

Competition

Requiem is not a direct competitor of a typical cafe since it is a themed destination that will draw in a large number of people from various communities.  Requiem’s competitors in the late night coffee community include Cacao in Santa Monica, Night Owl in Fullerton and The Library in Long Beach.. Requiem’s further late night hours with in house activities for customers to enjoy and additional revenue streams to keep us open late during off-peak hours will give us an advantage when catering to that market and allow us to establish loyal repeat customers. Other gaming locations like The Legendary Lotus in Tustin and Brookhurst Hobbies’ new late night gaming room which runs off of a membership program not only show us this market exists, but also that we can effectively provide this service.

Buying Patterns

The major reasons for the customers to return to a specific coffee bar is a great tasting drink, unique products and services, outstanding service, and a memorable atmosphere. However Requiem takes that a step above and beyond by offering a unique themed space that caters to a diverse and underserved crowd.  We strongly believe that selling coffee with a great service in a fantastic themed setting while providing space for recreational activities and socializing will help us build a strong base of loyal clientele.

Strategy and Implementation Summary

Requiem's marketing strategy will be focused at getting new customers,and  retaining the existing customers. We want to serve the corporate offices in the area with exciting drinks while keeping an in house atmosphere appealing to our designated demographic. Establishing a loyal customer base is of paramount importance since such customer core will not only generate most of the sales but also will provide favorable referrals and an online presence.

5.1 Competitive Edge

Requiem will position itself as a unique cafe where its patrons can not only enjoy amazing unique drinks, but we will offer space and resources to play games, make friends, participate in projects like costume making or just enjoy our beautiful architecture. We offer unique social interaction solutions with “Communication Cones” and late night hours hours that will allow us to achieve many repeat customers. Our video game themed design and proximity to popular tourist destinations will give us appeal for travelers, further increasing our popularity over our competitors..

5.2 Sales Strategy

Requiem “shopkeepers” will handle the sales transactions, food plating / serving and barista duties. To speed up the customer service, at least two employees will be servicing clients--while one employee will be preparing the customer's order, the other one will be taking care of the sales transaction. All sales data logged on the computerized point-of-sale terminal will be later analyzed for marketing purposes.

In order to build up its client base, Requiem will use professional artists to create advertisements and we will utilize customer referrals and cross-promotions with other businesses in the community. At the same time, customer retention programs will be used to make sure the customers are coming back and spending more at the coffee bar.

5.2.1 Sales Forecast

Food and Drink Sales are assumed at 182,500 consumable products sold per year at an average of $5 based on the results of comparable enterprises. Costs are assumed at 20% for food and beverages based on national averages, 25% for retail products, and 5% for Membership Programs and special events. A 15% sales increase is expected year to year across the board with our increasing popularity.

Management Summary

Requiem is owned by Kris Irons and Gabriel Stempinski. Additional managers will be hired to function during all available shifts and provide continuous management duties for the full cycle of Requiem’s operation.

6.1 Management Team

Full time managers will be hired to oversee the daily operations at Requiem. These persons’ responsibilities will include managing the staff, ordering inventory, dealing with suppliers, developing new marketing strategies and performing other daily managerial duties.

6.2 Management Team Gaps

Despite the management team’s experience in the industry, the company will retain additional consulting services for any areas we are not expertly prepared to handle.  

6.3 Personnel Plan

Personal payment assumes owners (2) will be receiving $35,000 per year each with a 15 percent increase per year. Baristas (12) will receive $15 per hour while Managers (2) will receive $17 per hour and each of those will increase by $0.25 per year. We will increase our staff by one barista employee per year to account for new business.

Financial Plan

Requiem will capitalize on the strong demand for high-quality gourmet coffee. The owners have provided the company with sufficient start-up capital. With successful management aimed at establishing and growing a loyal customer base, the company will see its net worth substantially increasing over time. Requiem will maintain a healthy 75% gross margin, which combined with reasonable operating expenses, will provide enough cash to finance further growth and expansion.

7.2 Projected Cash Flow

As the table below presents, the company will maintain a healthy cash flow position, which will allow for future development.

Copyright Requiem Coffee