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1. Context

As can be seen from the data collected by the General office for population family planning , the number of divorces, separation and bachelor hood or spinster hood has been on the increase recently. In Ho Chi Minh City alone the bachelors and spinsters account for 28.4%, windows and windowers take up 6.7% divorces occupies 1% and 0.5% is for the separated. The tragedy is partly caused by the bustle and hustle of the morden life since people from all walksof life are so busy with their job that they barely have time for other thing such as dating, social gatherings, which results in lack of mutual under standing. Our coffee shop named Venue, with slogan “Venue where emotion begins” is intended to offer dating people an environment to reveal themselves to each other, afew pratical ideas for couples wishing to fight the fade in love, rekindle the romance, strenthen their marrige and a good condition for partners to build up strong relationship.

1.1. Service ideas

In oder for those who who hardly find time to meet with and understand each other to build friendship, strong love and a happy marrige as well as long lasting partnership, our coffee shop has come into being.

The coffee shop has designed its own website easily accessible to anyone who wants to post their personal information such as age, sex, education, occupation, preferences, and marital status must be presented honestly and meet our requirement. Once the name of the coffee shop is on map, the shop will be defintely attractive draw a large number of people to the website so do the advertisers. As result of this, we can make considerable profit from advertising.

1.2. Coffee market research in HCM City and Vietnam.

According to the data from the General statistics office in 2002 each vietnamese averages 1.25 kilogram of coffee annually spending approximately 9000 VND an equivalent of $0.4 per capita. 19.2% of the population drink coffee daily, increasing by 23% on new year holiday. It is remarkable that city dwellers use upto 2.3 kilograms of coffee per year, 2.72 times higher than that of rural people and the former. Also expend 20.280 VND on a cup a year 3.5 times higher than that of the former. According to a survey conducted by Trung nguyen in the 2 biggest cities: HCM and Hanoi,coffee consumers from these cities are aged under 40. Coffee - using habit is closely related to occupation. While the retirees in Hanoi account for the largest number, the business men take up the biggest in HCM city (<23%); closely followed by the students and the number of the retirees is the smallest. The results from the survey also indicate that Hanoians spend 48.000 VND on coffee annually while residents in HCM pay 121000 VND. Out of the 7 districts (district 1, 3, 6, 11, Govap, Tân phú, and Bình thạnh). Tan phú has the most coffee drinkers.

People in HCM City prefer “drip filter coffee” the most with 38%, white coffee 27% and instant coffee 20% but 67% of Hanians use instant coffee. The proportion of coffee goers in HCM City is also higher than Hanoi. Coffee shop area in HCM is larger than that of Hanoi and coffee shops offers a better selection of beverages 40 types compared to 9 in Hanoi.

2. Project abstract

2.1. Objectives of the project

  • Having 160 customers visit each day.
  • Reaching a monthly turnover of 130 milion.
  • Getting a profit ratio by 50%.
  • Having 500 loyal customers.

2.2.Task

  • Making an informal and relaxing atmosphere for clients to converse with each other and relax over nice and delicate refreshments.
  • Being sure to offer the clients the best services, romantic dating service VIA the shopwebsite.

2.3.Factors for success

  • Offering considerate and enthusiastic customer - care services.
  • Promoting and implementing dating services drastically for The Singles, Singgle parents, divorcees, widows and widowers.
  • Holding chamber music concerts, guitar - playing concerts.
  • Offering music at the clients request
  • Conveniently located in the proximity of office buildings; making favorable conditions for white - collar staff to take lunch breaks (who are also our target loyal customers).

2.4.Clientele

  • Office worllers aged 23 or above, with breakfast and lunch.
  • Students, youth, business people in the evening.

2.4.1.Service offering

  • Morning: coffee beverages and fruit juice.
  • Noon: coffee beverages and fruit juice.
  • Evening: coffee for the youth - People in love
  • Dates are designed for courtship through the website.
  • Special events held at weekends such as the nicest offer of love, the sweetest offer of marriage.

2.4.2. Area (square meters)

  • Approximately 555 square meters divided into three sections (54 tables or 224 seats in total).
  • Garden area: 22 tables.
  • Indoor area: air - conditioned -30 tables.
  • First floor area: air - conditioned -Japanese sofas can be converted into 20 double - bufferings.

2.4.3.Products and services:

  • Buon me thuot, Trung nguyen coffees.
  • Ice-cream, fruit juice extract.
  • Fruit of some kinds.
  • Beverages: pepsi, coke, xa xi, CO2, green tea.

2.4.4.Price

22.000 VND - 80.000 VND

2.4.5.Marketing and promotion

  • Adverticements, banners placed on our website…
  • Pamplets distributed at universities (1000 pamplets in the first month then distribution will be under consideration as to whether to continue or not). The customers with the pamplet are offered 10% off the regular price.
  • Presenting customers loyal cards to whoever frequents the shops 20 times a month with 10% discount on drinks of all kinds (cards are valid within a month and marked with the manager's signature).
  • Presenting VIP cards to the 6 - customer - loyal - card holders, who have 20% off the regular prices on all kinds of drinks. VIP cards expires in 1 year long.

2.4.6.Staffs

Barista & servers: 12 staffs

  • Working hours: 6h30 - 14h30
  • Working hours: 14h30 - 23h00

Security (guard looking after vehicles): 4 staffs

  • Working hours: 6h30 - 14h30
  • Working hours: 14h30 - 23h00

Housekeeping: 4 staffs

  • Working hours: 6h30 - 14h30
  • Working hours: 14h30 - 23h00

Cashiers & receptionists: 4 staffs

  • Working hours: 6h30 - 14h30
  • Working hours: 14h30 - 23h00
  • Accountant: 1 staff
  • Website administrator: 1 staff

The staff numbers are adjusted after one month.

3. Service design

3.1. Blueprinting of coffee shop

As you can see this is a service process blueprint that it can be updated, extended and rearranged as desired. This can be the better way of serving clients, and We can now devise customer defined service standards, that can be easily implemented.

For instance if the coffee shop has a complaint about how dirty a certain table cloth is , this could be promtly responded to by the hygiene and safety division . Let's now take one area in our blueprint for example to see what we can do with it. We'll take the fourth box under the line of interaction - employee handling customer ‘s grieavance - she will come to solve the problem and gain back his or her sympathy and satisfation by listening and explaining to the unhappu customer and referring the feed back to the hygiene and safety.

3.2. Function of each line

3.2.1. Line of Interaction

Customers access the website and are given an ID for the date with the partners at our shop. The Website administrator or the call center will assist customers with information posting

3.2.2. Line of visibility

The patron's id date is given to a receptionist and he or she is led to a consultant ( who is responsible for facilitating the dialogue between the two partners and offering tips on how to order romantic refreshments ). Those who come to our shop for other purposes receive some serevice except for consultation. Other employees are in charge of talking orders, making delivering.

3.2.3. Line of internal interation

Order are filled and checked for safety and hygiene. Whashing up is also done here

3.2.4. Line of support

The duties are to take care of accounting, book keeping, billing and handling customers grievance

3.3.Front office

3.3.1.Coffee shop

Drinks area

The atmosphere at the drinks area is very important.

Clients go to the coffee shops mostly to relax. Besides, this coffee shop is also a place for dating. So the atmosphere should be informal and relatively quiet, with soft, romantic music. This atmosphere will make the clients feel comfortable when conversing with each other and relaxing over nice and delicate refreshments.

The garden area should be filled with plants and trees. A small pool with fish or waterfall will help clients to forget the busy city outside.

The ground floor area is air-conditioned. Music can be offered to the clients' requests in this area.

The first floor is also air-conditioned, with 10 Japanese sofas, which can be converted into 20 double - bufferings.

The servers must be attentive and respectful to the clients. In addition, the servers has to be quick and accurate. With a lot of clients at three different areas, there will be quite a lot of orders to take. The servers have two minutes to take an order and one minutes to deliver an order. With only two minutes to take order, the servers have to be careful; on the first side, the server must not rush the clients, but on the other side, the server must not let the time extend too long.

The standard service policy is that 95% of all customer orders will be served within 10 minutes of arrival at the coffee shop. Apart from free internet access, shelfs of magezines, newspapers, and music. The coffee shop will have decoration on the wall along with pictures of art schools in the world. This makes the client feel as if going to an art museum of the world.

Vehicle guarding:

Clients will get a ticket for each vehicle and the guard will keep the vehicles for them.

The coffee shop shall offer free vehicle keeping. The vehicle keeping fee ususally is small but often causes bad feelings with the clients. By offering fee service, this will give a good impression on the clients.

The guard must be friendly, honest and hardworking. He must greet the clients and help them park / take the vehicles. A friendly guard will make the clients feel comfortable right from the beginning.

3.3.2. Website & message center

The objective is to offer the clients the best services, romantic dating service VIA the shop's website.

The website shall be romantically designed and the user interface friendly. The website allows client to register their basic information so that other clients can find persons with similar interests. A sorting algorithm will help the client to select a person that best suit them. Another option is that the client can contact the consultant.

3.4. Back office

3.4.1. Routine operations:

Supporting activities

At the back office, the manager of the coffee shop must direct the daily activities. The manager must know which supplies are in short supply and when / where to order for the supplies. Everything necessary to make & serve drinks must be ready. The manager also has to know whom to call to fix every arising problem.

Making & serving drinks:

The standard service policy is that 95% of all customer orders will be served within 10 minutes of arrival at the coffee shop. This means that the person who makes drink only has approximately 4 minutes to prepare all the drinks for one table. This person has to be quick and accurate, especially on rush hours or weekends, when people go to the coffe shop in groups.

The servers also has to be quick and accurate. The servers only have one minute to deliver an order and a lot of clients at three different areas. After a table of clients go home, the servers have to clean the table and prepare the table quickly to be ready for the next group of clients.

Cleaning & washing

At the back office, the glasses, trays, spoons … must be wash quickly to be ready for the next batch of orders.

Cleaners must clean the coffee shop before opening hour and after closing hour. The WC is another small but important point because it leaves a long impression on the clients. The cleaner must also be on hand to clean the spilled drinks or other problems.

Accounting

Accuraccy is the most important thing for accounting. This includes billing the clients before the clients leaves. The accountant is also responsible for archiving the invoices, making account statements, paying taxes.

3.4.2. Database management

After a database is designed and installed, a database engineer must be available to to routine maintainance for the website. This person is also the administrator to the website, to monitor the information flow on the website. Bad and unsuitable comments / links must be deleted and violators must be banned from the website. This will make the website useful and friendly to the clients. The clients must feel safe when using the website for dating.

The process of providing ID through the website

As the above figure, at the Line Interation, customers can publish personal information via the website and get ID easily. The personal information will comprise age, gender, married status ,and hobbies. A arranging employee who always is on site will receive information from customers, simultaneously review personal information of each customer, and make a suitable date number code through a granted ID to them. The customer will receive an date code as well as time.

The process of providing ID through message service

We will corporate with telecommunication businesses such as VTC, FPT, VNPT which proficiently provide added value service based on the fundamental of mobile phone service to exploit Prefixs of 1800, 1900 by receiving messages from customers who have demand of meeting their partners

Call center

Receiving question and responding it to customers. Making consultant of getting ID or a date code from website through skilled consulting employees.

3.5. Waiting Line analysis

To assess the impact (cost and benefits) on service of different staffing strategies at a high-volume coffee shop. We will apply Probability/Queuing Theory for the coffee shop.

A key measure of this objective is the time required to take and fill a customer's order (i.e. the time between the moment a customer enters the waiting line, and the moment the customer leaves the counter with customer order). Clearly, one of the surest ways to achieve very rapid turnaround is to have many employees on hand at all times, ready to take and fill orders; however, this would be prohibitively expensive - and, in any event, there are often other constraints on throughput (e.g. the number of espresso machines). At the other end of the spectrum, the shop could be staffed minimally, which would in turn minimize staffing costs; during peak times, however, the time spent waiting in line could grow to an unacceptable level.

In order to assess the impact of different strategies, and recommend rational staffing levels, we must take as much as possible of the following into account:

§ The average rate at which customers enter the shop - including, ideally, a breakdown of customer order types (e.g. regular coffee vs. espresso) - at different times of the day;

§ The time required for a coffee shop employee to serve each of the different order types, and the amount (and type) of variation in these times;

§ Shift staffing options (i.e. the limits - upper and lower - on the length of a shift);

§ The hourly cost of an employee (including the impact on cost of different shift lengths);

§ Other limiting factors (e.g. the number of espresso machines).

3.5.1.Working Problem:

We will examine a simplified version of the problem, with the following characteristics:

§ A standard service policy: 95% of all customer orders will be filled within 10 minutes of the customer joining the line;

§ A single average arrival rate of 38 customers/hour, based on a Poisson arrival process;

§ As a consequence of the previous point, no variation in staffing level over the course of the day - we will simply examine different, constant levels;

§ No distinction between different types of customer orders, and the time required to service each order distributed according to the Exponential distribution with an average service time of 40 customers/hour;

§ Partly as a consequence of the previous point, we will not distinguish between types of employees; each employee costs the same, per hour, as any other employee.

3.5.2.Mathematical Model:

The arrival rate: When arrivals into a queuing system are independent (i.e. the fact that a person or party enters the shop during a given minute has no effect on whether another party enters the shop during any other minute), the arrival process is said to be a Poisson process, and the time between arrivals is a random variable which follows the Exponential distribution. This distribution is described by the following probability distribution function:

f(t) = λe-λt

1/λ = average interarrival time

The service time: The same distribution will be used for the service time (the time from the moment the customer's order is taken to the moment the order is filled), but it is customary to employ μ (instead of λ) for the service rate:

f(t) = μe-μt

1/μ = average time to service an order

3.5.3. Computational Model:

From the Exponential distribution, we will need to transform the numbers returned from the Uniform distribution, as follows:

tarrival = -ln(1-uarrival) / λ

tservice = -ln(1-uservice) / μ

The average number of customers in the system (L)

19.00

The average number of customers in the queue (Lq)

18.05

Average time in the system per customer (W)

30.00

minutes

Average time in the queue (Wq)

28.50

minutes

Propability that the server will be busy (U)

0.950

Probability that customers must wait P(0)

0.050

3.5.4. Psychology of Waiting Line

Due to characteristics of coffee service, Waiting Line is different from this of other services. Apart from free internet access, shelfs of magezines, newspapers, and music. The coffee shop will have decoration on the wall along with pictures of art schools in the world. This make guest feeling of going to an art museum of the world.

4. Service layout

4.1. Site selection

Location plays an important role in the success of project of services business. Good location ease the process of doing business, competitive and highly profitable.

On the basis of business strategy, business objectives and financial capabilities, we selected sites based on the following criteria:

  1. Features and consumption habits of target customers: Focus on densely populated areas , office buidings, industrial areas .
  2. Focus on the segmentation: the white -collar workers .
  3. Cost: space, power, water, labor
  4. Conveniently situated on a two -way street in Tan phu district .
  5. The scene of the region: modern, close to nature
  6. Area - landscape

Through the actual conditions on familiar terrain, financial capability, we choose the site to open a coffe shop in Tan Phu District of ​​555 square meters,which is located in the densely populated area in the proximity of offices, industrial parks. Moreover the site asks for reasonable rent which makes favorable condition for us to put more capital into other services such as online connection service . It comes to our understanding that a good location in combination with quality product and a better service will ensure the successdensely-workers is an important ground for low-cost appropriate financial conditions, extensive grounds convenient we will focus on funding for service development online service.

We understand that a business location should be accompanied by good quality good service, marketing and advertising activities policies customer care ... can help businesses succeed.

4.2. Service layout

To develop an efficient store design and layout will be one of the most important factors in positioning business for success.

The layout for a dating coffee service require a spacious and airy space. An area of 555 square meters constitutes a prerequisite for the success of the project.

The type of layout we choose in our project is process layout - functional layout, because of the variability in customer requests for service. The objective of system is to maximize service speed and customer satisfaction as much as possible.

The section is divided according to the functions: management, consultancy, service, billing, facility management, kitchen and inventory.

The following is the best layout for the coffee shop:

This layout will allow maximum flexibility, save space, and facilitate communication, circulation among the customers cleaning up, order taking - delivery and billing. It maximizes the usage of the area in customer section which helps bring in revenue and to increase the service speed will allow maximize your sales by serving as many customers as possible during peak business periods. The layout designates the front office (in full view of the customer) and the back office (invisible to the customer). Back office can be organized for efficiency and functionality, while front office layout must be aesthetically pleasing as well as functional.

The layout satisfies a variety of customers' needs for the seating or the typical purpose of the meeting.

The space required for the service area, (cash register, brewing & espresso equipment, pastry case, blenders, storage, prep, dishwashing and office areas etc.) at back of the house and restrooms, will consume about 80 square meters. The remainder will be seating area.

The determine tasks will be performed by each employee position, so that the equipment and fixtures necessary to accomplish those tasks can be located in the appropriate places : cashier will operate the cash register, barista will make all espresso-based beverages, tea, chai, hot chocolate, Italian sodas, as well as all the blender beverages. The design have the back door will be necessary to satisfy bureaucracies and facilitate. The back door will most likely have to serve as an emergency fire exit, so we have a hallway connecting it with customer area. And, the delivery of products will also probably occur through back door, having access to back of the house storage area would also be convenient. All the features have been designed into the back of the house.

That's a working area of the house and the customer seating area also is suitably arranged.

In evening, the comfortable seating will be important for creating a relaxing ambiance, then by all means do it. Feature from the front door to the seating area should be arranged in a logical, sequential order.

On the employee's side of the counter, work and product flow are even more important. Any unnecessary steps or wasted movements that result from a less than optimal design will slow down employee production. All products should flow seamlesly in one direction towards the ultimate point of pick-up.

Equipment be grouped together so that it is in the immediate proximity of the employee(s) who will be using it.

Beyond the actual equipment, empty spaces must be left on the counter top to store ingredients and small wares (tools) used in product preparation. Counter top space will also be needed where menu items will actually be assembled.

Creating defined work stations will allow put multiple employees behind the counter when needed. Keeping stations in close proximity to each other will allow one employee to easily access all equipment during very slow periods of business, thus saving labor cost.

5. Financial plan

5.1. Parameters

Items

USD

Note

Cups Sale (how much you sell 1 cup of coffee average)

2

Expenses

Cups

0.08

Employee hourly pay

0.5

Hours employee works daily

8

Days employee works monthly

30

days

Coffee per cup

0.5

Housekeeping

75

Security

75

Staff

5

persons

Management

400

Website management

250

Fixed Cost

Equipment

22000

Monthly Rent

2000

Monthly utilities

325

Unknown cost

20%

Start-up cost

50000

5.2. Coffee Growth Projections

Year 1

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Cups sold

5040

5443.2

5846.4

6249.6

6652.8

7056

7459.2

7862.4

8265.6

8668.8

9072

9475.2

Employment schedule

Barista

12

12

12

12

12

12

12

12

12

12

12

12

Security

4

4

4

4

4

4

4

4

4

4

4

4

Housekeeping

4

4

4

4

4

4

4

4

4

4

4

4

Staff

5

5

5

5

5

5

5

5

5

5

5

5

Website Management

1

1

1

1

1

1

1

1

1

1

1

1

Management

2

2

2

2

2

2

2

2

2

2

2

2

Total

28

28

28

28

28

28

28

28

28

28

28

28

25%

27%

29%

31%

33%

35%

37%

39%

41%

43%

45%

47%

Growth rate per month

2%

Days

30

Number of seats

224

Times of seat used per day

3

We assume that the monthly growth rate reaches 2% frequency at which a seat is occupied is 3 times.

Year 2

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Cups sold

9878.4

9878.4

9878.4

9878.4

9878.4

9878.4

9878.4

9878.4

9878.4

9878.4

9878.4

9878.4

Employment schedule

Barista

16

16

16

16

16

16

16

16

16

16

16

16

Security

4

4

4

4

4

4

4

4

4

4

4

4

Housekeeping

4

4

4

4

4

4

4

4

4

4

4

4

Staff

5

5

5

5

5

5

5

5

5

5

5

5

Website Management

1

1

1

1

1

1

1

1

1

1

1

1

Management

2

2

2

2

2

2

2

2

2

2

2

2

Total

32

32

32

32

32

32

32

32

32

32

32

32

49%

49%

49%

49%

49%

49%

49%

49%

49%

49%

49%

49%

Growth rate per month

Days

Number of seats

Times of seat used per day

Salary payment made to staff amounts to $3040 a month, which is logical based on the scope of business and number of employees

Year 3

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Cups sold

9878.4

9878.4

9878.4

9878.4

9878.4

9878.4

9878.4

9878.4

9878.4

9878.4

9878.4

9878.4

Employment schedule

Barista

16

16

16

16

16

16

16

16

16

16

16

16

Security

4

4

4

4

4

4

4

4

4

4

4

4

Housekeeping

4

4

4

4

4

4

4

4

4

4

4

4

Staff

5

5

5

5

5

5

5

5

5

5

5

5

Website Management

1

1

1

1

1

1

1

1

1

1

1

1

Management

2

2

2

2

2

2

2

2

2

2

2

2

total

32

32

32

32

32

32

32

32

32

32

32

32

49%

49%

49%

49%

49%

49%

49%

49%

49%

49%

49%

49%

growth rate per month

days

number of seats

Times of seat used per day


5.3. Monthly Income Statement

Monthly Income Statement

Year 1

Month

1

2

3

4

5

6

7

8

9

10

11

12

Sales

Cups Sale (how much you sell 1 cup of coffee average)

10,080

10,886

11,693

12,499

13,306

14,112

14,918

15,725

16,531

17,338

18,144

18,950

Expenses

Cups Sale (how much you sell 1 cup of coffee average)

403

435

468

500

532

564

597

629

661

694

726

758

Coffee per cup

2,520

2,722

2,923

3,125

3,326

3,528

3,730

3,931

4,133

4,334

4,536

4,738

Gross margin

9,677

10,451

11,225

11,999

12,773

13,548

14,322

15,096

15,870

16,644

17,418

18,192

Expenses

Salaries Payable

3040

3040

3040

3040

3040

3040

3040

3040

3040

3040

3040

3040

equipment

22000

Monthly Rent

2000

2000

2000

2000

2000

2000

2000

2000

2000

2000

2000

2000

Monthly utilities

325

325

325

325

325

325

325

325

325

325

325

325

start-up cost

50000

unknown cost

5,473

1,073

1,073

1,073

1,073

1,073

1,073

1,073

1,073

1,073

1,073

1,073

Total Expenses

82,838

6,438

6,438

6,438

6,438

6,438

6,438

6,438

6,438

6,438

6,438

6,438

Net Income

-73,161

4,013

4,787

5,561

6,335

7,110

7,884

8,658

9,432

10,206

10,980

11,754

total expenses for breakeven analysis

85,761

9,595

9,829

10,063

10,297

10,530

10,764

10,998

11,232

11,466

11,700

11,934

Monthly Income Statement

Year 2

Mont

1

2

3

4

5

6

7

8

9

10

11

12

Sales

Cups Sale (how much you sell 1 cup of coffee average)

19,757

19,757

19,757

19,757

19,757

19,757

19,757

19,757

19,757

19,757

19,757

19,757

Expenses

Cups Sale (how much you sell 1 cup of coffee average)

790

790

790

790

790

790

790

790

790

790

790

790

Coffee per cup

4,939

4,939

4,939

4,939

4,939

4,939

4,939

4,939

4,939

4,939

4,939

4,939

Gross margin

18,967

18,967

18,967

18,967

18,967

18,967

18,967

18,967

18,967

18,967

18,967

18,967

Expenses

Salaries Payable

4020

4020

4020

4020

4020

4020

4020

4020

4020

4020

4020

4020

equipment

Monthly Rent

2000

2000

2000

2000

2000

2000

2000

2000

2000

2000

2000

2000

Monthly utilities

325

325

325

325

325

325

325

325

325

325

325

325

start-up cost

unknown cost

1,269

1,269

1,269

1,269

1,269

1,269

1,269

1,269

1,269

1,269

1,269

1,269

Total Expenses

7,614

7,614

7,614

7,614

7,614

7,614

7,614

7,614

7,614

7,614

7,614

7,614

Net Income

11,353

11,353

11,353

11,353

11,353

11,353

11,353

11,353

11,353

11,353

11,353

11,353

total expenses for breakeven analysis

13,343

13,343

13,343

13,343

13,343

13,343

13,343

13,343

13,343

13,343

13,343

13,343

Monthly Income Statement

Year 3

Month

1

2

3

4

5

6

7

8

9

10

11

12

Sales

Cups Sale (how much you sell 1 cup of coffee average)

19,757

19,757

19,757

19,757

19,757

19,757

19,757

19,757

19,757

19,757

19,757

19,757

Expenses

Cups Sale (how much you sell 1 cup of coffee average)

790

790

790

790

790

790

790

790

790

790

790

790

Coffee per cup

4,939

4,939

4,939

4,939

4,939

4,939

4,939

4,939

4,939

4,939

4,939

4,939

Gross margin

18,967

18,967

18,967

18,967

18,967

18,967

18,967

18,967

18,967

18,967

18,967

18,967

Expenses

Salaries Payable

4520

4520

4520

4520

4520

4520

4520

4520

4520

4520

4520

4520

equipment

Monthly Rent

2000

2000

2000

2000

2000

2000

2000

2000

2000

2000

2000

2000

Monthly utilities

325

325

325

325

325

325

325

325

325

325

325

325

Start-up cost

Unknown cost

1,369

1,369

1,369

1,369

1,369

1,369

1,369

1,369

1,369

1,369

1,369

1,369

Total Expenses

8,214

8,214

8,214

8,214

8,214

8,214

8,214

8,214

8,214

8,214

8,214

8,214

Net Income

10,753

10,753

10,753

10,753

10,753

10,753

10,753

10,753

10,753

10,753

10,753

10,753

Total expenses for breakeven analysis

13,943

13,943

13,943

13,943

13,943

13,943

13,943

13,943

13,943

13,943

13,943

13,943


5.4. Monthly Balance Sheet

Monthly Balance Sheet

Year 1

Month

1

2

3

4

5

6

7

8

9

10

11

12

Assets

Cash

9,799

13,005

16,986

21,741

27,270

33,573

40,650

48,502

57,127

66,527

76,701

87,649

A/R

10,080

10,886

11,693

12,499

13,306

14,112

14,918

15,725

16,531

17,338

18,144

18,950

Total Assets

19,879

23,892

28,679

34,240

40,575

47,685

55,569

64,226

73,658

83,864

94,845

106,599

Liabilities

A/P

3,040

3,040

3,040

3,040

3,040

3,040

3,040

3,040

3,040

3,040

3,040

3,040

Total Liabilities

3,040

3,040

3,040

3,040

3,040

3,040

3,040

3,040

3,040

3,040

3,040

3,040

Equity

Paid in Capital

90,000

90,000

90,000

90,000

90,000

90,000

90,000

90,000

90,000

90,000

90,000

90,000

Current Earnings

-73,161

4,013

4,787

5,561

6,335

7,110

7,884

8,658

9,432

10,206

10,980

11,754

Retained Earnings

0

-73,161

-69,148

-64,361

-58,800

-52,465

-45,355

-37,471

-28,814

-19,382

-9,176

1,805

Total Equity

16,839

20,852

25,639

31,200

37,535

44,645

52,529

61,186

70,618

80,824

91,805

103,559

Total L and E

19,879

23,892

28,679

34,240

40,575

47,685

55,569

64,226

73,658

83,864

94,845

106,599

Monthly Balance Sheet

Year 2

Month

1

2

3

4

5

6

7

8

9

10

11

12

Assets

Cash

99,175

110,527

121,880

133,232

144,585

155,937

167,290

178,643

189,995

201,348

212,700

224,053

A/R

19,757

19,757

19,757

19,757

19,757

19,757

19,757

19,757

19,757

19,757

19,757

19,757

Total Assets

118,932

130,284

141,637

152,989

164,342

175,694

187,047

198,399

209,752

221,104

232,457

243,809

Liabilities

A/P

4,020

4,020

4,020

4,020

4,020

4,020

4,020

4,020

4,020

4,020

4,020

4,020

Total Liabilities

4,020

4,020

4,020

4,020

4,020

4,020

4,020

4,020

4,020

4,020

4,020

4,020

Equity

Paid in Capital

90,000

90,000

90,000

90,000

90,000

90,000

90,000

90,000

90,000

90,000

90,000

90,000

Current Earnings

11,353

11,353

11,353

11,353

11,353

11,353

11,353

11,353

11,353

11,353

11,353

11,353

Retained Earnings

13,559

24,912

36,264

47,617

58,969

70,322

81,674

93,027

104,379

115,732

127,084

138,437

Total Equity

114,912

126,264

137,617

148,969

160,322

171,674

183,027

194,379

205,732

217,084

228,437

239,789

Total L and E

118,932

130,284

141,637

152,989

164,342

175,694

187,047

198,399

209,752

221,104

232,457

243,809

Monthly Balance Sheet

Year 3

Month

1

2

3

4

5

6

7

8

9

10

11

12

Assets

Cash

235,305

246,058

256,810

267,563

278,315

289,068

299,820

310,573

321,325

332,078

342,830

353,583

A/R

19,757

19,757

19,757

19,757

19,757

19,757

19,757

19,757

19,757

19,757

19,757

19,757

Total Assets

255,062

265,814

276,567

287,320

298,072

308,825

319,577

330,330

341,082

351,835

362,587

373,340

Liabilities

A/P

4,520

4,520

4,520

4,520

4,520

4,520

4,520

4,520

4,520

4,520

4,520

4,520

Total Liabilities

4,520

4,520

4,520

4,520

4,520

4,520

4,520

4,520

4,520

4,520

4,520

4,520

Equity

Paid in Capital

90,000

90,000

90,000

90,000

90,000

90,000

90,000

90,000

90,000

90,000

90,000

90,000

Current Earnings

10,753

10,753

10,753

10,753

10,753

10,753

10,753

10,753

10,753

10,753

10,753

10,753

Retained Earnings

149,789

160,542

171,294

182,047

192,800

203,552

214,305

225,057

235,810

246,562

257,315

268,067

Total Equity

250,542

261,294

272,047

282,800

293,552

304,305

315,057

325,810

336,562

347,315

358,067

368,820

Total L and E

255,062

265,814

276,567

287,320

298,072

308,825

319,577

330,330

341,082

351,835

362,587

373,340

The amount of money invested in the project is $90000.

5.5. Monthly Cash Flow

Year 1

1

2

3

4

5

6

7

8

9

10

11

12

Sources of Cash

Paid in capital

90,000

0

0

0

0

0

0

0

0

0

0

0

Beg Cash Flow

90,000

-63,362

17,018

21,773

27,302

33,605

40,682

48,534

57,159

66,559

76,733

87,681

Increase in A/P

3,040

0

0

0

0

0

0

0

0

0

0

0

Net income

-73,161

4,013

4,787

5,561

6,335

7,110

7,884

8,658

9,432

10,206

10,980

11,754

Change in Retained Earnings

-73,161

77,174

774

774

774

774

774

774

774

774

774

774

Total Sources

-53,282

17,825

22,580

28,108

34,412

41,489

49,340

57,966

67,366

77,539

88,487

100,209

Uses of Cash

Increase in A/R

10,080

806

806

806

806

806

806

806

806

806

806

806

Total Uses

10,080

806

806

806

806

806

806

806

806

806

806

806

Net Change in Cash

-63,362

17,018

21,773

27,302

33,605

40,682

48,534

57,159

66,559

76,733

87,681

99,403

Cash Balance

-63,362

17,018

21,773

27,302

33,605

40,682

48,534

57,159

66,559

76,733

87,681

99,403

Year 2

1

2

3

4

5

6

7

8

9

10

11

12

Sources of Cash

Paid in capital

0

0

0

0

0

0

0

0

0

0

0

0

Beg Cash Flow

99,403

110,527

121,880

133,232

144,585

155,937

167,290

178,643

189,995

201,348

212,700

224,053

Increase in A/P

980

0

0

0

0

0

0

0

0

0

0

0

Net income

11,353

11,353

11,353

11,353

11,353

11,353

11,353

11,353

11,353

11,353

11,353

11,353

Change in Retained Earnings

-402

0

0

0

0

0

0

0

0

0

0

0

Total Sources

111,334

121,880

133,232

144,585

155,937

167,290

178,643

189,995

201,348

212,700

224,053

235,405

Uses of Cash

Increase in A/R

806

0

0

0

0

0

0

0

0

0

0

0

Total Uses

806

0

0

0

0

0

0

0

0

0

0

0

Net Change in Cash

110,527

121,880

133,232

144,585

155,937

167,290

178,643

189,995

201,348

212,700

224,053

235,405

Cash Balance

110,527

121,880

133,232

144,585

155,937

167,290

178,643

189,995

201,348

212,700

224,053

235,405

Year 3

1

2

3

4

5

6

7

8

9

10

11

12

Sources of Cash

Paid in capital

0

0

0

0

0

0

0

0

0

0

0

0

Beg Cash Flow

235,405

246,058

256,810

267,563

278,315

289,068

299,820

310,573

321,325

332,078

342,830

353,583

Increase in A/P

500

0

0

0

0

0

0

0

0

0

0

0

Net income

10,753

10,753

10,753

10,753

10,753

10,753

10,753

10,753

10,753

10,753

10,753

10,753

Change in Retained Earnings

-600

0

0

0

0

0

0

0

0

0

0

0

Total Sources

246,058

256,810

267,563

278,315

289,068

299,820

310,573

321,325

332,078

342,830

353,583

364,336

Uses of Cash

Increase in A/R

0

0

0

0

0

0

0

0

0

0

0

0

Total Uses

0

0

0

0

0

0

0

0

0

0

0

0

Net Change in Cash

246,058

256,810

267,563

278,315

289,068

299,820

310,573

321,325

332,078

342,830

353,583

364,336

Cash Balance

246,058

256,810

267,563

278,315

289,068

299,820

310,573

321,325

332,078

342,830

353,583

364,336

5.6. Break-even analysis

Break even analysis

Year 1

Year 2

Year 3

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Total Sales

32,659

72,576

119,750

174,182

233,453

292,723

351,994

411,264

470,534

529,805

589,075

648,346

paid in equity

90,000

90,000

90,000

90,000

90,000

90,000

90,000

90,000

90,000

90,000

90,000

90,000

Total Cost

105,185

136,075

169,070

204,169

244,199

284,230

324,260

364,291

406,121

447,951

489,782

531,612

Pay-Back

195,185

226,075

259,070

294,169

334,199

374,230

414,260

454,291

496,121

537,951

579,782

621,612

Based on the total cost, total sales, payback, paid in equity we calculate that the breakeven point should fall on the second quarter of the second year.

6. Conclusion and recommendation

Based on, the idea, rather orginial in Viennam, on the service design, on social needs and on financial analysis, the shop will be able to reach the break-even point in the second quarter of the second year from then on.

- The coffee shop target a segmentation left open on the market.

- Solution is rather feasible and the service is differentiated.

- The project will be successfully implemented and economically effective.

- The business will be expanded into other areas.

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