Topic setting up a book cafe project the coffee book

MINISTRY OF EDUCATION AND TRAININGNATIONAL ECONOMICS UNIVERSITY SCHOOL OF ADVANCED EDUCATION PROGRAMS Topic : Setting up a book cafe project The Coffee Book Group 11 : Ho Thi Thanh Hien

MINISTRY OF EDUCATION AND TRAINING

NATIONAL ECONOMICS UNIVERSITY SCHOOL OF ADVANCED EDUCATION PROGRAMS

Topic : Setting up a book cafe project The Coffee

Book Group 11 :

Ho Thi Thanh Hien - 11191820 Trinh Minh Hoang - 11192111 Nguyen Ha Anh - 11190249 Hoang Hong Phuc - 11194157 Lecturer : Ph.D Nguyen Thi Ai Lien

Subject : Investment project design

Class : Investment Economics AEP K61

Ha Noi, April 2022

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TABLE OF CONTENTS

FOREWORDToday, our country's economy is growing, per capita income isincreasing, leading to an increasing demand for entertainment andrelaxation of some people in big cities.

According to IPSARD research, the demand for coffee and entertainment

of Vietnamese people in Hanoi is very large, almost all levels and ages like todrink coffee (54%), most of them are businessmen business and students,students Therefore, the market in Hanoi capital is very suitable for coffee shopsfor students, students and office workers In the increasingly modern anddeveloping life People are getting busier and busier, so they don't have muchtime to read books, and those who love to read books are also graduallydecreasing According to statistics, in our country today, the number of peoplewho read books and claim books has decreased and the number of people who

do not read books at all is very high, quite high compared to the world Thedevelopment of the book cafe service in recent years has met an ideal space forbook lovers, and at the same time opened a new and unique trend, contributing

to building a new culture reading by young people, helping them learn tounderstand the beauty of reading The cafe will build on the idea of a smalllibrary with a quiet, cool and open space for customers to enjoy You can comehere to enjoy delicious and unique coffee flavors and have a space to study,research, work and relax Seeing the market in the city Hanoi is very suitablefor a coffee shop business for students, students and office workers, so we havedecided to invest and build a business plan for a book & coffee shop " TheCoffee Book " to meet the needs of our customers meet the above needs

Although there have been many efforts, the project was planned in a shorttime as well as lack of practical experience, so the work will inevitably be

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flawed, we are looking forward to receiving your sincere comments and suggestions teachers and friends.

I, BUILDING IDEAS, DETERMINING INVESTMENT GOALS

1 Describe project

- Project name: Construction project of Cafe & Book (buy, sell and read) The Coffee Book

- Location: 70 Tran Dai Nghia, Hai Ba Trung, Hanoi

- Investment form: rent business premises

- Timetable when the project goes into operation: 3 months from the beginning of the project's establishment After opening, the shop will operate from 7am to 10pm daily

2 Purpose of the project

- Create an interesting place and a place to exchange, learn, share

knowledge, connect people with the same passion for reading.

- Contribute to the dissemination and development of reading culture among youth and in the community

- Help promote book brands

3 Objectives of the project

- In the next 3 years, the number of customers will account for 2% ofthe total number of customers in the city

- Built the 2nd branch in the 2nd year and achieved 5 branches all over Hanoi after 5 years of operation

- Vision: In the next 5 years, the number of customers accounts for 2% of the total number of customers in the city.

- Mission: Bringing customers relaxing moments with friends and relatives after stressful and tiring working hours

❖ Respect customers, listen to feedback from customers and constantly improve to best meet customer needs

❖ Always put business ethics first

❖ Always innovating, finding new ones, to satisfy the most

• About books we have more than 1500 titles of all genres suitable for all ages

With a staff of attentive service, enthusiasm will make customers feel

absolutely satisfied

The space of the restaurant is cozy, friendly, with full facilities, sound,wifi will make customers feel very comfortable after hours of studying,working tired and stressed when coming to the shop

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PRODUCT UNIT COST

II Tea-yaourt-soft drink syrup

II, MARKET RESEARCH ANALYSIS

1 Product

- Traditional coffees, Espresso, Americano, Cappuccino, Latte, Mocha.

- Tea species: milk tea, peach tea, lotus tea

- Other drinks: smoothies, juices

- Snacks: cakes, breads

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- Books are served free of charge to customers reading at the shop.

- Various titles such as economics, science, novels…

+ Other target groups: including workers, employees This is a group

of middle-aged customers who need to meet friends to share information after stressful working hours

3 Market assessment

- Meeting customers in Thanh Xuan, Hoan Kiem and Cau Giay districts is mainly through contact with people, we know that most of the people here have high demand after days Stressful and tiring work and study is sipping a cup of coffee and

quiet corner to study and work Therefore, the need for a suitable seat,reasonable prices of food and drink, does not exist Quiet and beautiful time is essential.

- During the economic crisis, the demand for customers to go to the coffee shop decreased, but recently, the number of customers coming to the cafe has increased

- Most competitors still do not meet the needs of customers

- For example:

+ Wabi Sabi coffee shop (79C Ly Nam De): The shop has a gentle decor,

as popular as other cafes, but when I step inside, I can feel a distinct feature true

to the style: space work & coffee books Drinks here tend to be healthy, low in sugar, good for health The second floor of the restaurant has a beautiful view There are also many good books here A small minus point is that the wc door is

a bit inconvenient and difficult to pull

+ Tiny Post Cafe (251 Nguyen Khang) is a shop following the old post office concept with very invested, meticulous and sophisticated decor, each phone, camera, typewriter to small stamps Still keeping the characteristic quiet and gentle character, it is a very suitable place for those who are lookingfor a good space to study and work

+ Nha Nam Books & Coffee (3 Nguyen Quy Duc): The space of the shop is spacious, airy and cool, the tables and chairs are high and low, in short, everything is quite suitable for study, group study and work The small disadvantage is that the shop is still noisy, because the shop is quite crowded,people come to discuss, people argue about the article, so it is not possible to

be quiet, just a little better than other shops

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=> All of the above shows that the demand for a cafe to relax will increase.

- Market Segment: According to the form of coffee shops, we segment the market in the following ways:

in the style called book cafe From the very beginning of our establishment, we have prepared everything to satisfy customers at the highest and most

comfortable level that competitors absolutely do not have

- Competitive position of the cafe: When deciding to do business, everyonewants to know where they stand compared to competitors, so is our shop, based onthe competitiveness and ability to promote the strengths of the business, conductservice positioning and choose for yourself better strengths

5.Matrix and environmental analysis:

- Analysis of the macro environment:

+ Economic environment: Vietnam is one of three Southeast Asian countries

GDP growth, people's income increases, however, inflation is still high, pushing up the prices of living goods.

+ Political environment: Our country has a stable politics, an increasingly open investment environment suitable for business development

+ Social environment: The population in Hanoi is high with more than 8 million inhabitants, the average population density is 2505 people/km2

(According to the Statistics Office 2019) The social culture is rich and diverse, especially the strong influence of Western culture, Korea

+ Natural environment: With favorable geographical position, tropical monsoon climate, less affected by natural disasters and floods, it is suitable for business and trade The environment is heavily polluted: water, air, noise

Therefore, people need a quiet and comfortable space to relax

+ Technology environment: Technology always changes very quickly, the appearance of new technology creates new products that threaten old products, old technology becomes obsolete before competitors

- Analysis of the microenvironment:

+ Potential competitors: This is a promising market, the level of

competition is not high, in the future there will be many competitors

+ Alternative products: Products that target customers can choose when not going to a cafe such as milk tea, ice cream shop

+ Customers: Since our main customers are mainly employees, students, theirlifestyle is simple and easy to approach When they come to the shop, what they are most interested in is the form of service and whether the space is comfortable or not In addition, according to research through conversations

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with customers, we know that when they come to the cafe, they still

consider the following:

* Competitors: Although opening a coffee shop has many favorable

objective as well as subjective conditions But to succeed is not easy because not only our cafe but also our competitors, they also want to achieve what they want, so

we have to do better than our competitors to attract customers row

* Suppliers: In my opinion, suppliers play an important role in the success of the cafe, creating a good relationship with quality suppliers will have great advantages for our cafe me, but to find a good supplier in terms ofquality and reasonable price is not easy Through the current search and selection process, our main suppliers are: TRUNG NGUYEN coffee,

VINAMILK, COCACOLA and other beverage companies…

=> Conclusion: Coffee shop business is a favorable business environment

customers

III, STRATEGY ANALYSIS SWOT

1 SWOT Matrix

- Products are diversified with - Attract potential - Monitor andmany titles, high quality customers control theconcoctions

- Reasonable prices for all ages

- Staff is enthusiastic, cheerful

- Not much experience in the

field of business

- Rental location

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- High population density, large population, area with many schools

- Have a good supply of raw materials

- Growth in per capita income

- Young people diversify forms of coffee drinking

Threats

- Book business brings high risks due to large capital requirements and lowprofitability

- High market competition

- Reading culture is getting lower and lower

- Areas with a lot of noise

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2 Interpretation of the SWOT matrix

- We promote our strengths to seize opportunities such as withgood quality products, reasonable prices, convenient trading space andtransportation, plus marketing ability and enthusiastic enthusiastic staff.seems to attract potential customers, can find contracts with major websites toadvertise The ability to communicate and the competent manager will havethe opportunity to find more good suppliers

ST:

- Relying on the advantages compared to competitors in terms ofmarketing ability, highly qualified specialized engineers, cheerful andenthusiastic employees create strength in the competition

WO :

New businesses often lack capital and their stores are no exception.Therefore, we will take advantage of the government's support andthe store's optimistic opportunities about customers, suppliers

Increase the feasibility of the project to be able to mobilize capital from banks, find business partners

VI FINANCIAL INVESTMENT

1 Investment cost plan:

Table 1: Total investment cost

bằng gỗ (ChânMinh)

thuốc(TA58)

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7 Mâm Inox 10 Cái 100,900 1,009,000

(304-36cm)

uống trà

đá (LuckyLG-36-213,75ml)

uống cafésữa nóng(LuckyLG-36-203,50 ml)

1 cafe đá (Ocean Nyork B07811, 320ml)

1 Ly uống 150 Ly 10,600 1,590,000

1 cam vắt, sinh tố (Ocean Pils

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B00910,300ml)

2 Đầu đĩa 1 Cái 1,900,00 1,900,000

quảng cáo

4 Chi phí 2 Thá

tháng mặtbằng

thườngxây dựngcho chủ

đất

Total

Table 2: The investments and initial capital

Total investment cost

Number of shareholders contributing

- The total initial investment cost of the coffee shop is 970,315,000 VND

- Share capital: 2 members each 500,000,000 VND, total 1000,000,000

VND

- Bank loan is 200,000,000 VND, accounting for 15% of total capital

- The estimated amount of the coffee shop is 229,685,000 VND

Table 3: Total Revenue

Sell number Average selling Total (VND)

price (VND)

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Table 4: Estimated Employee Salary (month)

Criteria Quantity Shift Salary Put into money

Staff salary is 58,300,000 VND, accounting for 19% of

revenue Table 5: Food allowance for employees

Cost of meals for 2

shifts/day

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1 day meal fee

1 month meal fee

9,000,000

- Our restaurant provides a meal allowance of 10,000

VND/person/shift and the cost for 1 month with 15 employees and 2 shifts is

9,000,000 VND/month

- The percentage of sales is 3.7%

Table 6: Calculate total expense

Paying bank loan interest

Ingredients for preparation

Marketing expense 1,000,000 12,000,000 0,004

Service staff uniform 1,066,000 12,792,000 0,0044

allocation

Total revenue 241,920,000 2,903,040,000 100

Earning before tax 52,199,720 625,373,000 21,5

Earning after tax 39,149,790 469,029,750 16,1

Operation cost 186,686,000 2,240,232,000

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% profit to capital

- Operating costs = total costs – depreciation

- Monthly profit after paying CIT is VND 39,149,790, annual profit is

VND 469,029,750, accounting for 17.1% of total revenue

- Total monthly cost is 189,720,280 VND Total annual cost is

2,277,667,000 VND, accounting for 77% of revenue

- With the current economic situation, bank interest rates have

decreased If you invest in savings, the interest rate is only 10% to 12% per

year, and this project can bring a profit of 78.3% / year

2 Plan after going into operation

Table 1: Depreciation and allocation plan

Categories Original Depreciati Depreciation Depreciation/

price on time /year month

- Depreciation costs in the following years may decrease by 5% to

10% because some items have been depreciated, but this number can also

increase because according to the development situation, the shop can buy

more decorative equipment as well as for business use

Table 2: Loan principal and interest repayment plan

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