Are you about starting a coffee delivery company? If YES, here is a complete sample coffee delivery business plan template & feasibility report you can use for FREE. Okay, so we have considered all the requirements for starting a coffee delivery business. We also took it further by analyzing and drafting a sample coffee delivery business marketing plan template backed up by actionable guerrilla marketing ideas for coffee delivery businesses. So let’s proceed to the business planning section.
Table of Content
- 2. Executive Summary
- 5. Job Roles and Responsibilities
- 6. SWOT Analysis
- 7. MARKET ANALYSIS
- 13. Startup Expenditure (Budget)
Why Start a Coffee Delivery Service Business?
Coffee has become a household name so much so that the world may not be able to do without coffee. It is for this reason that more and more people have found themselves in the coffee business. Another business that is yet revolving around coffee is coffee delivery business.
This is one niche that you may want to consider venturing into as it has loads of prospects. If you are looking to start any business such that you do not want your capital to be tied down, then you may want to consider the coffee delivery business. For coffee companies attempting to provide this services, it’s a bit more complicated. But two of the main chains, Starbucks and Dunkin’ Donuts, are giving it a try.
Apart from all the due diligence that ought to be carried out when starting this business, there is also the need to have a workable business plan in place to guide you. Writing a business plan might come as a herculean task to many because of the many technical areas involved.
It is for this reason that business plan templates can be drawn from the internet and even from business books, so that you can have an idea of what it is like to draw up a business plan for yourself. Here is a sample business plan that could possibly help you write yours.
A Sample Coffee Delivery Business Plan Template
1. Industry Overview
The Coffee Industry is a very important one and truth be told, it has come to stay. There are different types of coffee drinks that you can find in a coffee shop, some of them are cappuccino, espresso, iced coffee, decaffeinated coffee, alcoholic coffee (Irish Coffee and Brandy Coffee et al), filtered coffee, cold brew coffee, Turkish coffee, coffee with milk, coffee or espresso with whipped cream, and flavored coffee et al.
In recent time, the Coffee industry has been influenced by bigger consumer spending, driven by higher disposable incomes and greater confidence in the overall economic outlook. As a matter of fact, the demand for coffee and snack shops increased at a faster rate than most segments in the foodservice industry, as consumers increasingly seek convenience at an affordable price.
In addition, the industry has adjusted to ever changing consumer preferences, especially those relating to health and diet. Going forward, these trends are expected to continue to shore up demand. As a result, major coffee shop chains will invest in expansion and international growth, strengthening the revenue generated in the industry.
The Coffee Industry that coffee delivery business business is a subset of is a thriving sector of the economy of the united states which generates over billion annually from more than 55,664 registered coffee & snack shops (coffee delivery businesses inclusive) in the country.
The industry is responsible for the direct employment of over 686,007 people. Experts projects The Coffee & Snack Shops Industry to grow at a 4.5 percent annual rate between 2011 and 2016. Starbucks and Dunkin’ Brands are the leaders in this industry; they have the lion share of the available market in the industry.
One interesting thing about the coffee delivery business is that it can be started with little capital. The turnover for an average coffee shop/coffee delivery business can be as high as 50% and above, that is why entrepreneurs who intend making good money from a business with less struggle opens their own coffee shop or coffee delivery business.
2. Executive Summary
Hotty Coffee®, LLC is a registered coffee delivery business that will be located in Des Moines – Iowa. We have been able to secure an open space in the core of town where we propose to mount our coffee delivery business. We have plans to also spread across the state of Michigan with smaller kiosk – like photocopy shops strategically positioned in key areas campus, school board / districts, passport office, immigration centers, licensing offices and recruiting centers et al.
Hotty Coffee Delivery®, LLC will be involved in the preparation and delivery of varieties of coffee beverages (cappuccino, espresso, iced coffee, decaffeinated coffee, alcoholic coffee (Irish Coffee and Brandy Coffee et al), filtered coffee, cold brew coffee, Turkish coffee, coffee with milk, coffee or espresso with whipped cream, and flavored coffee et al.) and also snacks to our customers.
We are aware that there are several coffee delivery businesses in and around Des Moines – Iowa, which is why we have sacrificed time and resources to conduct a thorough feasibility studies and market survey so as to offer much more than our competitors will be offering.
Much more than retailing well – prepared coffee, our customer care is going to be second to none in the whole of Des Moines – Iowa. We know that our customers are the reason why we are in business and we will go the extra mile to get them satisfied when they purchase coffee from us.
At Hotty Coffee delivery Company®, LCC our client’s interest come first, and everything we do will be steered by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs.
Hotty Coffee delivery Company®, LLC is a family business that is owned and managed by Debbie Rudolf and her immediate family members. The business will be managed by her son Lewis Nick Rudolf a graduate of Business Administration who has extensive experience working with coffee shops in the United States of America. He will bring his experience and expertise to help build and grow Hotty Coffee delivery Company®, LLC.
3. Our Products and Services
Hotty Coffee delivery Company®, LLC is in the industry to generate profits and we will ensure we go all the way to make available a wide range of coffees to our clients. Our product and service offerings are listed below;
- Coffee beverages (cappuccino, espresso, iced coffee, decaffeinated coffee, alcoholic coffee (Irish Coffee and Brandy Coffee et al), filtered coffee, cold brew coffee, Turkish coffee, coffee with milk, coffee or espresso with whipped cream, and flavored coffee et al.)
- Other beverages
4. Our Mission and Vision Statement
- Our vision is to become the leading coffee delivery brand in the whole of Des Moines – Iowa.
- Our mission is to establish a standard coffee delivery business that will make available a wide variety of coffee and also sandwiches, pizzas, and soft drinks at affordable prices to the residents of Des Moines.
Our Business Structure
Our intention of starting a coffee delivery business is to build a coffee delivery business that has outlets in other significant cities through the United States of America. Although our coffee delivery business might not be as big as Starbucks and Dunkin’ Brands, but we will put the right structures in place that will support the kind of growth that we have in mind while setting up the business.
We will make certain that we hire people that are capable, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders. Also, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more.
In view of that, we have decided to hire qualified and competent hands to occupy the following positions;
- Chief Executive Officer (Owner)
- Coffee delivery business Manager
- Admin and Human Resource Manager
- Greeters/Customer Service Agent/Table Attendant
- Van Drivers/Deliverers
5. Job Roles and Responsibilities
Chief Executive Officer – CEO:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
Admin and HR Manager
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Defines job positions for recruitment and managing interviewing process
- Carries out induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Oversee the smooth running of the daily office activities.
Coffee delivery business Manager:
- Responsible for managing the daily activities in the coffee delivery business
- Ensure that the facility is in tip top shape and conducive enough to welcome customers
- Interfaces with third – party providers (vendors)
- Responsible for supervising and training new staff members
- Reports to the Chief Executive Officer
- Attends to Customers complains and enquiries
Sales and Marketing Manager
- Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- Models demographic information and analyze the volumes of transactional data generated by customer purchases
- Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
- Identifies development opportunities; follows up on development leads and contacts
- Documents all customer contact and information
- Represents the company in strategic meetings
- Helps to increase sales and growth for the business
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensuring compliance with taxation legislation
- Handles all financial transactions for the organization
- Serves as internal auditor for the organization
Van Drivers/Coffee Deliverers:
- Delivers customer’s orders promptly
- Delivers correspondence for the organization
- Runs errand for the organization
- Handle any other duty as assigned by the manager
6. SWOT Analysis
Our purpose of starting with just one outlet is to test run the business for a period of 2 to 5 years to know if we will invest more money, expand the business and then setup our coffee delivery business all over Des Moines – Iowa and key Cities in the United States.
We are aware that there are several coffee delivery businesses all over Des Moines – Iowa and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business. We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be equipped to confront our threats.
Hotty Coffee delivery Company®, LLC employed the services of an expert HR and Business Analyst with bias in fast food line of business to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives. This is the summary of the SWOT analysis that was conducted for Hotty Coffee delivery Company®, LCC;
Our location, the business model we will be operating on, varieties of payment options, a wide range of coffee and our outstanding customer service culture will definitely count as a strong strength for Hotty Coffee delivery Company®, LCC. So also our management team members are people who have what it takes to grow a business from startup to profitability with a record time.
A major weakness that may count against us is the fact that we are a new coffee delivery business and we don’t have the financial capacity to compete with multi – million dollar coffee chains.
The fact that we will be operating our coffee delivery business in one of the busiest streets in Des Moines – Iowa, provides us with unlimited opportunities to sell our coffee and snacks to a large number of people. We have been able to undertake a thorough feasibility studies and market survey and we know what our potential clients will be looking for when they visit our coffee delivery business.
Just like any other business, one of the major pressures that we are likely going to face is economic slump. It is a fact that economic downturn affects purchasing/spending power. Another threat that may likely oppose us is the arrival of a new coffee shop/coffee delivery business in same location where ours is located. We are not ruling out the fact that unfavorable government policy can also pose a threat to our business.
7. MARKET ANALYSIS
- Market Trends
The Coffee industry has been sustained by increased consumer spending, driven by higher disposable incomes and greater confidence in the overall economic outlook. As a matter of fact, the demand for coffee and snack shops has increased at a faster rate than most segments in the foodservice industry, as consumers increasingly seek convenience at an affordable price.
In addition, the industry has adjusted to the ever changing consumer preferences, especially those relating to health and diet. Going forward, these trends are expected to continue shore up demand. As a result, major coffee shop chains will invest in expansion and international growth, strengthening the revenue generated in the industry.
Another notable trend in the coffee shops industry is that most players in the industry especially coffee delivery businesses are known to brand their kiosks with bright colors and graffiti so as to attract customers who ordinarily would have passed by without noticing them. In addition, it will be difficult to find coffee shops / coffee delivery business that only retail coffee; most often than not, you will get snacks and perhaps other beverages from them.
8. Our Target Market
If you are up-to-date in coffee delivery business in the United States of America, you will quite agree that coffee feasting has shown steady growth over the years and from all indication, the growth is not going to plummet. Coffee addicts would always go out of their way to get a cup of coffee.
Typically, sales for coffee triples during winter season and in most cases small coffee bars struggle to meet the demand during this period. Over and above, those who run coffee shops don’t struggle to attract clients especially if they are well positioned.
Although there are borders to how far we can go when it comes to marketing coffee but that does not stop us in creating avenues to generate traffic at our coffee shop. We are in business to fix and serve a wide variety of coffee to the following groups of people;
- Corporate Executives
- Business People
- Sports Men and Women
A close scrutiny of the coffee delivery industry divulges that the market has become much more intensely competitive over the last ten years. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry. We are aware of the stiff competition and we are prepared to compete favorably with other coffee shops, coffee delivery businesses or coffee bars in Des Moines – Iowa.
Our coffee delivery business is positioned in a corner piece property on a busy road directly opposite one of the largest residential estates in Des Moines – Iowa.
Our location, the business model we will be operating on, varieties of payment options, a wide range of coffee and also sandwich and our excellent customer service culture will definitely count as a strong strength for us. So also our management team are people who have what it takes to grow a business from startup to profitability within record time.
Lastly, our employees will be well catered to, and their welfare package will be among the best within our category in the coffee industry, meaning that they will be more than willing to figure the business with us and help deliver our set goals and achieve all our aims and objectives.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Hotty Coffee delivery Company®, LLC is in business to retail a wide variety of coffee. We are in the coffee delivery niche to maximize profits and we are going to ensure that we achieve or business goals and objectives. Our source of income will be the retailing of the following products at affordable prices;
- Coffee beverages (cappuccino, espresso, iced coffee, decaffeinated coffee, alcoholic coffee (Irish Coffee and Brandy Coffee et al), filtered coffee, cold brew coffee, Turkish coffee, coffee with milk, coffee or espresso with whipped cream, and flavored coffee et al.)
- Other beverages
10. Sales Forecast
When it comes to coffee delivery business, if your business is centrally positioned, you will always attract customers cum sales and that will sure translate to increase in revenue.
We are well positioned to take on the available market in Des Moines – Iowa and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six months of operation and grow the business and our clientele base.
We have been able to examine the coffee industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below are the sales projections for Hotty Coffee delivery Company®, LCC, it is based on the location of our business and other factors as it relates to similar startups in the United States;
- First Fiscal Year: $150,000
- Second Fiscal Year: $280,000
- Third Fiscal Year: $600,000
N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic recession and there won’t be any major competitor offering same products as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
Before choosing a location for Hotty Coffee delivery Company®, LCC, we undertook a thorough market survey and feasibility studies in order for us to penetrate the available market.
We employed the services of experts who have good understanding of the coffee delivery industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the market in Des Moines – Iowa.
In summary, Hotty Coffee delivery Company®, LLC will adopt the following sales and marketing approach to win customers over;
- Open our coffee delivery business in a grand style with a party for all.
- Introduce our coffee delivery business by sending introductory letters alongside our brochure to corporate organizations, schools, event planners, households and key stake holders in Des Moines – Iowa
- Ensure that we have a wide variety of coffee at all times
- Make use of attractive hand bills to create awareness and also to give direction to our coffee delivery businesss
- Position our signage / flexi banners at strategic places around Des Moines – Iowa
- Create a loyalty plan that will enable us reward our regular customers
- Engage on roadshows within our neighborhood to create awareness for our coffee delivery business business.
11. Publicity and Advertising Strategy
Although our coffee delivery business is well branded and well located, we will still go all out to strengthen publicity for the business.
Hotty Coffee delivery Company®, LLC has a long term plan of opening chains of coffee delivery businesss in various locations all around Iowa and key cities in the United States which is why we will deliberately build our brand to be well accepted in Des Moines before venturing out.
Here are the platforms we intend leveraging on to promote and advertise Hotty Coffee delivery Company®, LCC;
- Place adverts on community based newspapers, radio and TV stations.
- Encourage the use of word of mouth publicity from our loyal customers
- Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook ,Twitter, LinkedIn, Snapchat, Badoo, Google+ and other platforms to promote our business.
- Ensure that our we position our banners and billboards in strategic positions all around Des Moines – Iowa
- Distribute our fliers and handbills in target areas in and around our neighborhood
- Contact corporate organizations, households, religious centers, schools and event planners et al by calling them up and informing them of Hotty Coffee delivery Company®, LLC and the products we sell
- Advertise our business in our official website and employ strategies that will help us pull traffic to the site
- Brand all our kiosks, official cars and delivery vans and ensure that all our staff members wear our branded shirt or cap at regular intervals.
12. Our Pricing Strategy
We are going to ensure that we set our prices in line with what is available in the coffee delivery niche. We also have plans in place to discount our coffees once in a while and also to reward our loyal customers with free cups of coffees from time to time.
- Payment Options
The payment policy adopted by Hotty Coffee delivery Company®, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America. Here are the payment options that Hotty Coffee delivery Company®, LLC will make available to her clients;
- Payment with cash
- Payment via credit cards
- Payment via POS machines
- Payment via online bank transfer
In view of the above, we have chosen banking platforms that will enable our client make payment for farm produces purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.
13. Startup Expenditure (Budget)
In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you plan to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.
The tools that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost analysis for starting a coffee delivery business; it might differ in other countries due to the value of their money. This is the key areas where we will spend our startup capital;
- The total fee for registering the business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $1,300.
- Marketing promotion expenses for the grand opening of Hotty Coffee delivery Company®, LLC in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of – $3,580.
- The cost for hiring Business Consultant – $2,500.
- The cost for the payment of insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
- The cost for payment of rent for 12 month at $1.76 per square feet in the total amount of $105,600.
- The cost for construction of standard coffee delivery businesss – $50,000.
- Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
- The cost for Start-up inventory (Coffee beans (12 regular brands and five decaffeinated brands) – $6,000, Coffee filters, baked goods, salads, sandwiches, tea, beverages, etc. – $7,900, retail supplies (napkins, coffee bags, cleaning, etc.) – $1,840, the cost for office supplies (one month) – $287, the cost for Espresso machine – $6,000) – $16,027
- The cost for Coffee maker – $900, the cost for Coffee grinder – $200
- Food service equipment (microwave, toasters, dishwasher, refrigerator, blender, etc.) – $18,000
- Storage hardware (bins, utensil rack, shelves, food case) – $3,720
- The cost for counter area equipment (counter top, sink, ice machine, etc.) – $9,500
- Cost for store equipment (cash register, security, ventilation, signage) – $13,750
- Cost of purchase of distribution vans – $50,000
- The cost for the purchase of furniture and equipment (computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
- The cost of Launching a Website – $600
- The cost for our opening party – $5,000
- Miscellaneous – $5,000
We would need an estimate of $200,000 to successfully set up our coffee delivery business in the United States of America.
Generating Funds/Startup Capital for Hotty Coffee delivery Company®, LLC
Hotty Coffee delivery Company®, LLC is a family business that is owned and financed by the owner and her immediate family members. They do not plan to welcome any external business partners which is why she has decided to restrict the sourcing of the startup capital to 3 major sources.
- Generate part of the startup capital from personal savings
- Source for soft loans from family members and friends
- Apply for loan from the bank
N.B: We have been able to generate about $50,000 (Personal savings $40,000 and soft loan from family members $10,000) and we are at the final stages of obtaining a loan facility of $150,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
14. Sustainability and Expansion Strategy
The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business close shop.
One of our major goals of starting Hotty Coffee delivery Company®, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to retail our coffee a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.
Hotty Coffee delivery Company®, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.
We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Leasing of facility and remodeling the facility (building well branded kiosks): In Progress
- Conducting Feasibility Studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Printing of Packaging Marketing / Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of the Needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business both online and around the community: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Opening party planning: In Progress
- Compilation of our list of products that will be available in our shop: Completed
- Establishing business relationship with vendors – suppliers of coffee beans and soft drinks et al: In Progress
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