BUSSINESS PLAN THE COFFEE PROJECT the most suitable founder to make a coffee model of camping experience for everyone

With our experience as young people who love camping, traveling and coffee, we will be the most suitable founder to make a coffee model of camping experience for everyone... Problem & So

BUSSINESS PLAN THE COFFEE PROJECT

– 04/04/2022 –

By:

Nguyen Ngoc Van Trang

Do Thi Quynh Thy Nguyen Ngoc Thao Vy Pham Kim Ngan Thai Kim Dung

Table of Contents

I EXECUTIVE SUMMARY 4

A Opportunity 4

B Expectations 5

II OPPORTUNITY 5

A Problem & Solution 5

B Target Market 6

C Competition 6

III EXECUTION 8

A Marketing plan 8

B Operations 9

IV COMPANY 9

A Overview 9

B Team 10

V FINANCIAL PLAN 11

A Forecast 11

B Funding Requirements 11

VI APPENDIX 11

A Pro forma Income Statement 12

B Pro forma Cash Budget 12

C Pro forma Balance Sheet 13

I EXECUTIVE SUMMARY

A Opportunity

With modern life, which revolves mainly between school and work, being away from nature and rarely enjoy travel, besides the emergence of the covid pandemic, it also makes it difficult to travel and relax For those who "love photography", this cafe will be an interesting stop, as long as you have a companion, everyone will have a lot

of "genuine" photos For those who simply want to find a new space, immerse themselves in nature to relax and socialize, my cafe will be a good choice, a peaceful place to live, without the noise of fatigue of the artificial elements that hurt your soul

The cafe shop will be located in Da Lat city - which is famous for being cool, attracting many customers who like to travel, relax and have a vacation With an abundance of customers from tourists, this place would be the ideal place to open a cafe Plenty of seating and a modern model combined with camping, Ratatouille Coffee will appeal to the audience of caffeine-lovers and camping-lovers who want to enjoy the social aspect of grabbing coffee in a unique atmosphere

Our target customers are students, pupils, busy commuters, tourists from 16-40 years old (especially genZ and millennials) who want to find a place to rest, relax and experience the camping cafe model with moderate to moderate prices

The main competitors of the cafe are the old cafes with many customers, the cafes with beautiful models and decorations, and the simple cafes with lower prices

However, customers often consider the price, besides the quality of drinks and services Our shop will always ensure the best quality of service and drinks to satisfy customers

Our team is a young, dynamic startup group that is always looking for new things, likes to turn challenges into opportunities for self-expression and always wants

to surpass themselves Besides, our group also likes to bring healing, dispel fatigue after school hours, hard working hours or bring joy to everyone With our experience

as young people who love camping, traveling and coffee, we will be the most suitable founder to make a coffee model of camping experience for everyone

B Expectations

(This data is taken from PRO FORMA INCOME STATEMENT below)

II OPPORTUNITY

A Problem & Solution

Coffee & Camping is a business model that provides two services at the same time, allows customers to "drink coffee while camping" in an open space, closer to nature Different from the popular types of camping specializing in survival or just having a tent and a few simple items, the form of camping cafe is more comfortable and relaxing after a tiring time with work, study and life With professional camping materials, full facilities, delicious and quality food and drinks, customers come here feel like they are in a real picnic, enjoy the sunset while watching the city lights up, with an economical price Our goal is to bring change to the area while spurring people to heal their heart

Quarter 1 Quarter 2 Quarter 3 Quarter 4

0.00

50,000,000.00

100,000,000.00

150,000,000.00

200,000,000.00

250,000,000.00

300,000,000.00

350,000,000.00

400,000,000.00

450,000,000.00

500,000,000.00

Financial Highlights by Quarter

Revenue Expenses & Costs Net Profit Net Loss

Among the many beautiful

coffee shops in Da Lat, is there

anything in Ratatouille Coffee to

impress visitors? The answer is

probably the style and experience

that the coffee shop brings This

place is built in the style of coffee

combined with camping This model

is quite popular in foreign countries

However, it is still new in Vietnam

The model of camping cafe

-camping cafe was "born" to direct

customers closer to nature Here,

customers also have the opportunity

to go camping in a short time

without having to go far from the

city Ratatouille Coffee will offer

specialty coffees from roasteries in

the region that operate with a direct

trade model The shop will offer the

standard specialty coffee drinks like

cappuccinos, lattes, macchiatos and

cortados, as well as shots of flavors

and a selection of milk alternatives

B Target Market

The Coffee's main customers will be people from 16-30 years old, who are students from 11 high schools, 9 universities - colleges in Da Lat (according to lamdong.edu.vn) and tourisms from anywhere Our target is people who have a passion for coffee and love to go camping, travel, love the freshness of nature, and also people who need to heal their hearts Come to us, they will have a good experience of camping services as well as food and drinks at Ratatouille Coffee

C Competition

With long-standing and famous coffee shops, these will be powerful competitors with loyal customers and acquaintances of the shop Customers will tend to go to

"familiar shops" and rarely change places And for customers who like "simple" coffee just sitting and drinking coffee, they may be afraid to hear about coffee & camping models - however Ratatouille Coffee still serves coffee at the table to drink

Tui Mo To coffee is the main competitor which sells drinks like ours Hoang Hon Chieu and Makakamp in Da Lat both sell coffee blends but further than our Coffee Shop and are indirect competitors with Ratatouille Coffee Indirect competition will also include at-home brew methods such as traditional coffee makers, Keurig machines, Aeropress, and French Press

Due to the convenience of the Starbucks, Highlands, and some big coffee brands drive-thru service and their early opening-hour, these franchises will likely continue to dominate the market for working professionals who buy coffee on their commute into work

 Competitor Analysis:

Factor Ratatouille

Products/

Services coffee, milk tea,Especially

fruit tea and some non-coffee

drink, camping coffee

High quality coffee, new model

May not be suitable for those who are looking for food and drink, and do not like the camping model

Italian coffee, Vietnamese coffee, chocolate, tea, yogurt/ juice, alcohol

Price

Range 40.000VND-55.000VND Affordable price,mid-range

suitable for users' affordability

Makes less appealing to low income earners

40.000VND-75.000VND

Business

Model

Help people relax and have chill place, back

to nature,

above-fair trade

Wide business focus; present at local events, nature's lover-friendly atmosphere

May not appeal

to those looking for a fun, bustling cafe with edm music

Nostalgic beauty of an old time, wide open space, back to the old

period

Trade

Area

Da Lat On the hill, the

view with lots of clouds, far from the noisy city

Far from the center, the way

to go a little bit hard

Da Lat

 Our advantages

- Meet as diverse as customer requirements: This novel F&B business model has

upgraded an ordinary coffee shop into a "full service" entertainment and entertainment destination with a variety of services from dining, Camps, events, food and drink prices, etc Especially, in the context of the epidemic situation, when people face many difficulties to go out of the city, the coffee & camping model will be a form of travel that is both convenient and safe Thanks to that, the coffee shop of the rendezvous will continue to be a popular "popular" spot in the near future

- Expanded customer target: Without restricting the target customer to students

or office workers, coffee & camping will be suitable for many different customers Young people will love the beautiful space to take pictures to check-in This will also

be a great place for groups of friends and family to gather to talk, chill and relax, relieve stress and fatigue of work and life

- Abundant source of revenue: Besides the revenue from drinks, the camping &

coffee model also has other sources of revenue such as camping tent rental service fee, brand's commercial photography fee, party service as birthday or music fee, at the request of the customer With the mentality of "traveling close to home", customers also tend to spend more than when just going to a regular cafe With a diverse and flexible revenue stream, this business model will help shop owners make effective profits

III EXECUTION

A Marketing plan

Ratatouille Coffee will manage promotions largely through social media and word of mouth Our social media manager will create posts on Instagram aimed at the millennial demographic, as well as Facebook to spread awareness These social media sites reach a large portion of our target market and are free tools to use Word of mouth will also be a key in building anticipation before the shop opens and spreads awareness to our target market that is not active on social media

Customers will receive a discount on their food or drink purchase for “check-in”

to Ratatouille Coffee on Facebook or following us on Instagram and Tiktok Loyalty cards will also be utilized to encourage repeat customers by offering a discount after several purchases at Ratatouille Coffee As our way of expressing gratitude to them, customers will always receive a 10% discount on their drink or food purchase

Ratatouille Coffeewill take suggestions from customers and follow up on repeat customers in the shop to find ways to make their experience better Through quality products and a friendly attitude, customers will feel confident and motivated to become repeat customers, as well as recommend Ratatouille Coffee to their network

of family, friends, and colleagues

B Operations

Ratatouille Coffee shop

is located at Doc 9, Trai Mat,

Ward 11, Da Lat city, Lam

Dong From the city center to

here is about 9 km Go in the

direction of National

Highway 20, pass Ve Chai

Pagoda for a distance of

about 2km, then turn right to

get to the shop Visitors can

use Google Maps to locate

the restaurant for easy access

Although a bit far from the

city center, this cafe is

located near many beautiful

destinations on Highway 20 such as Ve Chai Pagoda, Trai Mat hydrangea field From here, visitors can also combine to visit Cau Dat tea hill or train tunnel With an open-plan design, visitors can fully enjoy the feeling of being immersed in nature and heaven when visiting here No concrete walls, not much modern furniture Everything

at the shop adheres to the most simple and rustic criteria It is the vast open space with the sea of clouds right in front of us that is the reason why we decided to open a camping cafe here

Technology, Equipment & Tools: As for the barista equipment, we will use

coffee machines, water purifiers, ice machines, refrigerators, blenders, juicers,

With the criteria of being close to nature and relaxing camping, we will minimize electronic devices that can affect the user experience and partly to save costs The modern devices we plan to use are wifi transmitters, decorative led lights, glow filament lights in camping tents, light transmitters, heaters

IV COMPANY

A Overview

We are a group of 5 people who founded this cafe,

with the function and capital contribution of 4 people

contributing 13.33%, one person with 20%

contributions, and bank loans with 26.67% and the total

is 1.5 billion VND

B Team

We have 5 people who are also managers of the

cafe With the structure and size of the coffee shop, we

will have to hire about 4 staffs to serve at the coffee

shop

Each of us will take on different management positions for the coffee shop:

Financial Management Managing cash flow of the coffee shop (revenue and expenditure), tax rates, depreciation, inventory

reconciliation,

Communication

Management

Photographing and posting pictures on Facebook, instagram, tiktok to communicate about the cafe, Manage marketing promotions and customer response through social media

Store Management Responsible for day-to-day operations, opening shop, preparing drinks and food items, handling transactional

tasks, maintaining a clean work space

Human Resource

Management

Responsible for employee hiring, employee benefits, rewards, employees as well as training and extracurricular activities for employees

Product management Responsible for the food hygiene of the product, creating

new dishes, enriching the menu

V FINANCIAL PLAN

A Forecast

By the end of 2021, Da Lat city has welcomed back nearly 30,000 visitors, bringing the total number of tourists in 2021 to more than 1.97 million, of which international visitors reached 17,000

In the early days of 2022, Da Lat also welcomed over 55,000 visitors during the New Year holiday, especially before and after the Lunar New Year, more than 200,000 people came here to visit and relax On this occasion, the city was also honored to be awarded the "ASEAN Clean Tourist City" award by the Association of Southeast Asian Nations

During February 2022, Da Lat tourism has not cooled down, always bustling with tourists, especially on weekends Da Lat city received the award "ASEAN clean tourist city 2022." This is a title that helps the city's tourism industry to be more attractive to welcome international tourists, especially potential ASEAN countries The habit of drinking coffee of Vietnamese people is like a beauty and more attractive when enjoying a warm cup of coffee and feeling what they want behind the hustle and bustle of life out there

 Revenue by Month

(This data is taken from PRO FORMA INCOME STATEMENT below)

Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov

0.00

20,000,000.00

40,000,000.00

60,000,000.00

80,000,000.00

100,000,000.00

120,000,000.00

140,000,000.00

160,000,000.00

180,000,000.00

Months in Year 1

B Pricing

Pricing for Ratatouille Coffee will be comparable to Tui Mo To Our goal is to maintain a 75% gross margin on coffee and food Maintaining low materials costs and

a high gross margin

Ratatouille Coffee will

purchase coffee from roasteries at

current specialty coffee wholesale

prices Specialty coffee suppliers

provide higher-than-average

compensation for coffee beans that

are of the highest quality, in order to

reward the farmer for harvesting his

crop The higher bean quality

warrants the extra price the buyer

pays per kg, and ultimately the

consumer pays per drink Given

estimated monthly fixed costs of

17,500,000VND and an average

drink price of 50,000VND,

break-even sales per month total 1,000 sales

C Funding Requirements

Ratatouille Coffee total startup costs are estimated to be 1,500,000,000VND The business will be funded by 5 personal investments in the total amount of 1,100,000,000VND and a 400,000,000 commercial business loan from TP Bank The loan will be paid off over a 4-year period This initial investment will provide enough working capital to purchase all equipment and beginning inventory, as well as cover any cash flow deficits during the startup phase Ratatouille Coffee will operate in a rented facility to keep capital investments low Below is list of all startup costs that will be covered with the 1,500,000,000VND