Introduction
Innovative Business Idea-Read and Eat have developed in this report. A new business idea for a themed restaurant named ‘Enjoy Yourself’ has been presented here. The business idea of the restaurant has been evaluated, including market analysis, industry analysis, operations details and SWOT analysis. The scope and threats of the restaurant have also been identified through the analysis.
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Innovative Business Idea-Read and Eat
When people go to the library to read books, sometimes they feel bored because of reading books for a long time. Even people may feel the need to drink coffee to refresh their minds or eat snacks to remove hunger, but there is no scope of having food. Either they stay in the library for a reading book, or they go to cafes to have coffee or snacks. ‘Enjoy Yourself’ will bring a café with library services for the customers where they will be capable of enjoying reading different types of books with the coffee and snacks of the café. ‘Enjoy Yourself’ will provide better quality snacks and drinks in order to satisfy their customers with reasonable prices and will also charge a specific amount according to the value of the books that customers will choose to read. ‘Enjoy Yourself’ will target customers from adults to old people who love reading and want to enjoy café services while reading books. The café will be different from its competitors because the book library will be the new addition to the café which is not offered by any restaurants yet. The café will keep online payment services in order to give relief to their customers from the burden of carrying cash with them. As a result, ‘Enjoy Yourself’ will be capable of getting targeted customers by providing unique services in the café industry which will make customers highly satisfied.
Business model Canvas of ‘Enjoy Yourself’:
| Key Partners: Individual customers of age 15-old who are coffee lovers and book lovers. Suppliers: Book publishers, dry food providers and coffee providers. IT service providers, and logistics companies are also key partners Motivation for Partnership: Optimization of scopes, generating high profit, application of assets, | Key activities Providing the different types of books in the café with coffee and snacks services. Implementing the order cycle by creating value | Value Proposition Implementing café comes with library services and satisfies customers. Making sure that customers are getting a calm and clean environment to read books peacefully. Adding more books by established writers and providing a great collection of books. Satisfying customers by providing library service in the café. | Customer relationship Customers’ demand is great source of books with quality snacks. They are ready to pay a high price for better services. ‘Enjoy Yourself’ will make customers highly satisfied and will be customer focused in order to maintain repeatable sales for higher profit. | Customer segments Young to old people who want to enjoy snacks and drinks while reading books. City areas are the main target of the cafe. At the start, ‘Enjoy Yourself’ will provide services in the cities of the UK then it will expand the business outside of the UK if they get successful. | |
| Key resources include Coffee machines, Quality books, Well decorated café and contracts with business partners | Channels The brand can be reached through social media communication channels, and apps. The brand will reach the customers through social media, and TVC. | ||||
| Cost structure Decorating a café with coffee machines, instruments for making fast food, and books will be the primary cost for ‘Enjoy Yourself’. Purchasing furniture, developing websites and social media to communicate with customers, payment of employees will cost ‘Enjoy Yourself’. Electricity bills, and restaurant rent will also be added to costs. | Revenue structure By selling drinks and snacks including giving rent books will be the source of making revenue of ‘Enjoy Yourself’. Customers will pay a high price for the services because they did not experience these café come library services before. | ||||
Innovative Business Idea-Read and Eat: ‘Enjoy Yourself’ Business Plan
Market Analysis
Customers’ needs: When customers go to the library, they go for a long time to read books. Sometimes they feel like drinking coffee to refresh their minds or become hungry and avoid their hunger while reading books. But the desire to drink coffee and hunger do not let them concentrate on reading. ‘Enjoy Yourself’ has identified the customers’ demand and planned to deliver library services in their café. Therefore, customers do not need to go out in order to drink coffee or snacks while reading books and the calm environment will help them to enjoy their reading time. ‘Enjoy Yourself’ will keep online payment services in order to reduce customers’ burden of carrying cash with them.
Customers’ character: ‘Enjoy Yourself’ will attract customers who love to drink coffee, tea, juice or snacks while reading books. The customers who are ready to spend their leisure with books will be the targeted customers of the café. Book lover customers will be highly satisfied with the café and they will keep going to the cafe when will get time to enjoy themselves.
Geographic location: ‘Enjoy Yourself’ will start their services in London at the beginning. The literacy rate of the UK is 99%, and London is the city of the country and has the same literacy rate (Macrotrnds, 2020). This high literacy rate will make the journey of ‘Enjoy Yourself’ successful. After achieving targeted success, the company will expand the business to other cities of the UK and outside of the country.
Demographic details: Average income of the residents of London is £36k (PayScale, 2020). The amount of the income refers to the financial stability of the residents, which will help ‘Enjoy Yourself’ to grow in the market.
The trend to grow: ‘Enjoy Yourself’ has developed a unique business plan for cafes with library services in order to attract more customers than its competitors. The company have a plan to acquire outstanding growth and make their business long survive in the café industry. In order to achieve growth, ‘Enjoy Yourself’ will provide better quality drinks and snacks, calm and clean environment furthermore great sources of quality books which will make customers highly satisfied toward them. As a result, they will get more customers than competitors.
Industry analysis:
The growth rate of the café industry: The global value of the café industry will be US$58.7 Billion very soon, and the growth rate of the industry is 4.1% (Business Wire, 2019). It is predicted that the café industry will value at US$143.4 Billion by 2025 with a growth rate of 4.6% (Business Wire, 2019).
Reducing manual work in cafes: Espresso machines, capsule-based coffee machines, etcetera commercial coffee machines are used in making coffee which decreases manual work while making coffee (Coffee Blog, 2020). These machines also bring different tastes to the coffees that customers like.
Different types of coffees: There are different types of coffee such as Espresso, Cappuccino, Café Latte, Flat White, Long Black, Macchiato, Mochaccino etcetera (CANSTAR Blue, 2018). Customers can choose coffees of their choice from the available coffee types.
Coffee machines save time: With different types of coffee machines, people can save time because coffee machines take a short time to make perfect coffee (Heathtrends, 2020). Therefore, both customers and employees can save time.
Competitors of ‘Enjoy Yourself’:
39 Steps Coffee Haus, Allpress Espresso, Antipodean, Antipode, April/s Café, Artisan, Birdhouse etcetera are the best cafes of London (Timeout, 2019). All of the cafes will be the competitor of ‘Enjoy Yourself’, and the café will face tough competition in the city of London. These cafes have a great experience with customers’ needs and created brand value which will not be easy to achieve by ‘Enjoy Yourself’. It will take time to convince customers in order to visit the café instead of the established cafes in London. To beat the established cafes, ‘Enjoy Yourself’ has brought the idea of providing library services in their café, which will attract book lovers highly because any established cafes have not started library services as like ‘Enjoy Yourself’. By providing better drinks and snacks, including the best books, the café will be able to have more customers and achieve success.
Operations Details:
‘Enjoy Yourself’ will decorate their café nicely and will ensure that there will be no crowd to provide a perfect environment for customers while reading books. Customers will have self-service in two ways such as: having a book first, then taking food when it needs and having food first and then taking the book after finishing food. Self-service will be provided to ensure silence in the café because when employees will go to customers and take orders, it will create disturbance for the customers who are reading beside the customer. The rent of the book will be charged by considering its value. ‘Enjoy Yourself’ will appoint eligible employees who will be able to deliver better services. Operations details of ‘Enjoy Yourself’ are stated below:
Deals with book suppliers and food suppliers: ‘Enjoy Yourself’ will have clear business deals with book suppliers and food suppliers. Book suppliers will give a supply of good books, and food suppliers will supply quality raw materials of making fast food.
Marketing strategy: The café will use internet-based marketing in order to reach a huge amount of customers within a short time. It will also save marketing costs for the company. They will keep their website, and social media account updated to stay tuned with the customers.
Appointment of eligible employees: ‘Enjoy Yourself’ will appoint eligible employees who will be able to operate all types of coffee machines and other food-making machines in order to ensure the quality and fastest delivery of food. They will also appoint a manager to monitor the works of the employees to make sure the best services and customers satisfaction.
SWOT analysis:
‘Enjoy Yourself’ will be capable of knowing their strengths, weaknesses, opportunities and threats.
| Strengths * The idea of providing library services is the USP of the café, which will attract customers toward ‘Enjoy Yourself’. * Quality drinks and foods, including great collections of books, will make the company better than its competitors. * Customers will be capable of spending quality time in the café which will maintain repeatable sales. | Weakness * ‘Enjoy Yourself’ is a new company therefore, customers will buy from competitors more. * The café will start its operations without past experiences, which existing companies have better than ‘Enjoy Yourself’. |
| Opportunities * People love to read books and drink coffees which may create huge customers for the café. * Financial stability of London’s residents has the potential to make ‘Enjoy Yourself’ highly profitable. | Threats * Existing established cafes may start unique services like ‘Enjoy Yourself’, which will reduce customers’ the café because the companies have great brand value. |
Financial Requirements:
Start-up costs:
| Assets | Expenses |
| Rented Cafe | £10,000 |
| Furniture for Cafe | £20,000 |
| Equipment and machinery | £10,000 |
| Internet-based marketing | £3,000 |
| Books | £5,000 |
| Salary of employees | £30,000 |
| Electricity bills | £2,000 |
| Other expenses | £10,000 |
| Total cost | £90,000 |
Break-Even point
Analysis of the financial data:
It can be seen from the above demonstration that the total start-up cost is £90,000, among which £55,000 is a variable cost and £35,000 is a fixed cost. The company is expected to reach the breakeven point after the 13th month.
Conclusion
Café industry of London is too much competition for a new company. Existing companies provide better services with quality foods that help them to achieve customers’ trust. All of the best cafes are competing with each other to hold on to their position in customers’ minds. ‘Enjoy Yourself’ have to evaluate the market analysis in order to understand the situation and trends of the industry. Therefore, the café will be capable of making an effective business model that will help them to achieve targeted growth.
References
Business Wire, 2019. Coffee Shops – Market Analysis, Trends, and Forecasts. Retrieved from: https://www.businesswire.com/news/home/20191212005790/en/Global-Coffee-Shops-Market-Analysis-Trends-Forecasts. [Assessed on: 20 February 2020]
Coffee Blog, 2020. The rise of commercial coffee machines in the workplace. Retrieved from: https://coffeforus.com/commercial-coffee-machines-in-the-workplace/. [Assessed on: 20 February 2020]
CANSTAR Blue, 2018. Different Types Of Coffee Explained. Retrieved from: https://www.canstarblue.co.nz/food-drink/coffee-shop-chains/coffee-types-explained/. [Assessed on: 20 February 2020]
Heathtrends, 2020. Coffee Makers. Retrieved from: https://healthtrends.com/coffee-makers/. [Assessed on: 21 February 2020]
Macrotrnds, 2020. U.K. Literacy Rate 1990-2020. Retrieved from: https://www.macrotrends.net/countries/GBR/united-kingdom/literacy-rate. [Assessed on: 20 February 2020]
PayScale, 2020. Average Salary in London, England: London £36k. Retrieved from: https://www.payscale.com/research/UK/Location=London-England%3A-London/Salary. [Assessed on: 19 February 2020]
Timeout, 2019. London’s best cafés and coffee shops. Retrieved from: https://www.timeout.com/london/food-drink/londons-best-cafes-and-coffee-shops. [Assessed on: 21 February 2020]