1.0 Executive Summary
The Russet Cup will be a one of a kind coffee house / café located in Overland Park, Kansas. The 1,500 square foot café will be located in the newly constructed Market Square Plaza located on the northeast corner of 135th Street and Mission Street. The anchor tenant, the Price Chopper grocery store, has already taken occupancy and the excellent location brings more than 10,000 shoppers weekly.
The Russet Cup, aptly named for the aromatic brown liquid that will fill the cup, fills the void of original cafes in the market area, stands out from its corporate peers with their fast food concepts and fast services. The Russet Cup is the alternative to fast food/commercial/coffee shops and offers a much calmer, civilized gourmet coffee experience. There are no televisions in the café, the background music is subtle and work from local artists will hang on the walls. The café is well appointed with overstuffed leather chairs and sofas in a library like setting. The café is reminiscent of times gone by – yet is cutting edge technologically with WIFI and state of the art espresso machines.
The Russet Cup measures its financial success in terms of increased market share and in earnings. With a total local market of $54 million, this is a tremendous opportunity! The keys to success will be the ability to offer quality gourmet coffees, take advantage of its small size, and reliance on an outstanding barista staff. In order to achieve these goals, the café will offer some the area’s finest gourmet beans from local distributors. Because of its small size, the café can enjoy larger margins in the form of lower overhead. The cafe will hand select baristas and offer salaries comparable to the chains. In turn the baristas will be trained to cross-sell, and sell the higher margin products. d.
1.1 Business Objectives
The primary objectives of the business plan for Russet Cup are below:
- To increase revenues $36,000 or 5% in Year 2 and by $73,000 or 10% by Year 3
- Achieve a profit margin of 5.2% in Year 2 and 6.90% by Year 3
- Be the Café of Choice in the Overland Park area and recipient of the Best Coffeehouse Award
1.2 Mission Statement
The Russet Cup is committed to its products and employees which they believe is the recipe for market success.
1.3 Guiding Principles
The Russet Cup is committed to values such as excellence, passion, quality, integrity and leadership which allow them to navigate challenges and provide for future opportunities. These core beliefs start with their commitment to their products and their employees.
The Russet Cup rewards excellence and cherishes loyalty. The café will work with its employees to build strong businesses and a secure future.
1.4 Keys to Success
The Russet Cup stands out from the competition. Below are their Keys to Success:
- Great Products – providing exemplary products at market prices – will make customers want to return again and again
- Hire Quality Baristas – Pay employees rates similar to the larger chains with opportunities for long term careers and opportunities for advancement with long term plans to open a second facility
- Convert Customers to Connoisseurs - Only 40% of the nations coffee drinkers consume premium ground and whole bean coffee – this will aid in continued growth
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