Case Study Of The Coffee Palace

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1.0 Executive Summary
The Coffee Palace is a specialty beverage retailer. The Coffee store uses a system that is new to the beverage and food service industry to provide hot and cold beverages in a convenient and time efficient way. The Coffee Palace will be offering its patrons the finest hot and cold beverages, specializing in specialty coffees and other custom drinks. In addition the new store will offer soft drinks, and other confections. Moreover the Coffee store will add beverages such as hot chocolate, frozen coffee among others.
The Coffee Palace will focus on two markets during its operation. First it will target daily commuters who travelling to and from work or those who are out for a drive. According to a Market Assessment Research 2013 by extension coffee shops, have become embedded in UK lifestyles, with many UK consumers drinking more than two cups of coffee every day. Moreover many high-street coffee shops are full from opening to close with long queues at peak time (Hacker, 2013).
The business also seeks to capture consumers or those in restricted environment or where refreshments stands are an integral part of the environment. One of the strategies the business will use to penetrate this markets will include deploying Drive- thru facilities and mobile cafes in the most logical and accessible locations. Moreover the Drive-thru facilities are designed to handle two-sided traffic and dispense customer designed , specially ordered cups of premium coffees in less time than required for a visit to the locally owned cafés
Barrow notes that Apart from providing a quality product and extensive menu of delicious products to ensure customer awareness and loyalty as well as good publicity coverage and me...

... middle of paper ...

...ted to be self-sustaining after the initial investment and start-up costs are covered. Benedict and Elliot(2011 )
The Coffee Palace anticipates no cash flow pitfalls for the first year and beyond after making an assumption the initial investment and financing would include operating cost. July and August are considered the greatest cash drains, since the Coffee Palace will be experiencing the cost of Second drive thru and mobile unit start-up.
7.7 Projected Balance Sheet
The Coffee Palace projected balance sheet shows an increase in net worth in 2015, at which point it expects to be making 11.96% after-tax profit on sales. With these present financial projections, the company expects to build a company with strong profit potential, and a reliable balance sheet that will be asset heavy and sustain the cash projection by the end of the third year as seen in appendix 8

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