BMJ CAFE BUSINESS PLAN

John Christopher C. Villador

Marl Knezett G Bravio
Brylle M. Barcelona
A. Executive Summary.............................................................................................................................................4

A1. Company Identification.......................................................................................................................................4

A2. Mission of the Company......................................................................................................................................4

A3. Business Goals.....................................................................................................................................................4

A4. Keys to Success...................................................................................................................................................4

B. Company Summary.............................................................................................................................................6

B1. Industry History...................................................................................................................................................6

B2. Legal Form of Ownership....................................................................................................................................7

B3. Location and Facilities.........................................................................................................................................7

B4. Management Structure.........................................................................................................................................8

B5. Products and Services..........................................................................................................................................9

C. Market Analysis.................................................................................................................................................10

C1. Target Market....................................................................................................................................................10

C2. Industry Analysis..............................................................................................................................................10

C3. SWOT Analysis................................................................................................................................................11

D. Market Strategy.....................................................................................................................................................11

D1. 4Ps.....................................................................................................................................................................13

D2. Price List...........................................................................................................................................................13

D3. Promotional Strategy........................................................................................................................................14

D4. Sales Forecast...................................................................................................................................................14

E. Implementation Strategy.......................................................................................................................................17

E1. Overall Strategy.................................................................................................................................................17

E2. Monitoring Plan.................................................................................................................................................17

F. Financial Statements and Projections..................................................................................................................20

F1. Forecasted Profit and Loss Statement................................................................................................................20

F2. Forecasted Balance Sheet...................................................................................................................................20

G. Financial Report....................................................................................................................................................21

G1. Financial Projections.........................................................................................................................................21

G2. Financial Position..............................................................................................................................................21

G3. Estimated Capital/Investment Needs.................................................................................................................21

H. References.............................................................................................................................................................22
 A. Executive Summary

A1. Company Identification: BMJ Cafe Located at Dasmarinas City, Cavite, Philippines

A2. Mission of the Company: Our mission is to create a vibrant and welcoming cafe
environment where people can come together, connect, and indulge in exceptional food
and beverages. We are dedicated to crafting delicious and innovative menu offerings
that satisfy diverse tastes and dietary preferences. Our skilled baristas and culinary
team strive to consistently deliver high-quality products, using ethically sourced
ingredients and supporting local suppliers whenever possible. We aim to foster a sense
of community by providing a comfortable and inclusive space for individuals to relax,
work, or socialize. Through our commitment to exceptional service and a warm
atmosphere, we aspire to be the go-to destination for coffee lovers, food enthusiasts,
and those seeking a delightful cafe experience. We aim to create moments of joy and
connection, one cup at a time.

A3. Business Goals:

Business Goal 1: Enhance Customer Satisfaction and Loyalty

One of the core objectives of a cafe is to elevate customer satisfaction and foster loyal
patrons by offering an outstanding experience that surpasses their expectations. This
entails prioritizing friendly and attentive customer service, ensuring the consistent
delivery of top-notch food and beverages, and cultivating an inviting ambiance. By
placing a strong emphasis on customer satisfaction, the cafe can forge enduring
relationships with customers, resulting in repeat business and favorable
recommendations from satisfied patrons.

Business Goal 2: Expand Market Reach and Increase Revenue

A cafe also aims to broaden its market reach and enhance revenue generation. This
objective can be accomplished through diverse approaches, including expanding
marketing endeavors to engage new target demographics, introducing enticing menu
additions or seasonal promotions, and harnessing technology to provide convenient
online ordering and delivery services. By attracting a wider customer base and driving
sales growth, the cafe can solidify its market position and achieve sustainable financial
prosperity.

A4. Keys to Success: Discuss three keys to success for the company.

Quality Products and Services: Providing exceptional food and beverages, as well as
outstanding customer service, is crucial for a cafe's success. Consistently delivering
top-notch products that are carefully crafted with quality ingredients can help build a
positive reputation and attract loyal customers. Additionally, offering attentive and
friendly service creates a welcoming atmosphere and enhances the overall customer
experience.

Unique Value Proposition: Differentiating your café from competitors is essential.

Identify your unique selling points and develop a strong value proposition that sets your
café apart. This could be through offering a specialty or signature menu item, providing
a cozy and inviting atmosphere, or catering to a specific target market niche.
Understanding your target audience and tailoring your offerings to their preferences can
give you a competitive edge.

Social Media Presence: Establish a strong presence on popular social media platforms
such as Facebook, Instagram, and Twitter. Share visually appealing images of your
menu items, behind-the-scenes moments, and customer testimonials. Engage with your
followers by responding to comments, running contests, and sharing relevant content.
Social media platforms provide an excellent opportunity to showcase your café's unique
ambiance, menu offerings, and special events. Establish a strong presence on popular
social media platforms such as Facebook, Instagram, and Twitter. Share visually
appealing images of your menu items, behind-the-scenes moments, and customer
testimonials. Engage with your followers by responding to comments, running contests,
and sharing relevant content. Social media platforms provide an excellent opportunity to
showcase your café's unique ambiance, menu offerings, and special events.
 B. Company Summary

B1. Industry History

The roots of the café industry can be traced back to the 14th century in the Middle
East, particularly in regions like Turkey and Iran. These early establishments, known as
qahveh khaneh, served as social hubs where people gathered to drink coffee, engage
in intellectual discussions, and play games. Coffee, which had been introduced to the
region from Ethiopia, quickly became a popular beverage.

In the 16th century, coffee and the café culture began to spread to other parts of the
world. Coffeehouses emerged in cities like Damascus, Cairo, and Constantinople
(present-day Istanbul). These places fostered intellectual and cultural exchange,
attracting writers, artists, and philosophers. Coffeehouses gained a reputation as
centers of knowledge and social interaction.

In the 19th century, the café industry continued to evolve. Café culture expanded,
with coffeehouses becoming gathering places for political discussions, literary
meetings, and artistic collaborations. Famous cafés such as Café de Flore and Les
Deux Magots in Paris became synonymous with intellectual and artistic movements.

In the 20th century, the café industry experienced significant changes. With the
advent of industrialization, cafés became more accessible to the general population.
They transformed into spaces for socializing, relaxation, and casual meetings. Cafés
began serving a wider variety of beverages, including tea, hot chocolate, and other non-
alcoholic drinks.

From its humble beginnings in the Middle East to its worldwide prominence, the café
industry has a fascinating history. It has evolved from exclusive intellectual enclaves to
inclusive social spaces catering to diverse customer preferences. The enduring appeal
of cafés lies in their ability to provide a comfortable and welcoming atmosphere for
people to connect, relax, and enjoy a good cup of coffee.
B2. Legal Form of Ownership: The legal form that BMJ cafe will take depends on the
specific jurisdiction and the preferences of the founders. Here are a few common legal
forms for a cafe industry.

Cooperative: In some cases, a café can be organized as a cooperative, where

ownership and control are shared among a group of individuals or businesses who use
the café's services. Cooperatives operate based on democratic principles, with
members having a say in decision-making and sharing in the profits and benefits.

Franchise: Instead of starting a café from scratch, an entrepreneur can opt to become a
franchisee of an established café brand. Franchising involves entering into an
agreement with a franchisor, where the franchisee pays fees and follows the
franchisor's established business model, branding, and operational guidelines.

B3. Location and Facilities: The location and type facilities needed for BMJ Cafe is an
area with a high volume of foot traffic, such as near a bustling shopping center or
popular park, would be the ideal location for a cafe. The following amenities would be
necessary:
1. A commercial kitchen with ample space for preparing food, refrigeration, and storage
for ingredients
2. Tables, chairs, or booths where customers can relax and enjoy their food and drinks
3. A counter or bar where patrons can order and pay for their meals and beverages
4. Bathrooms for both customers and employees
5. Sufficient air conditioning and ventilation
6. Sufficient lighting
7. Reliable Wi-Fi for customer use
8. Security measures to safeguard against theft and ensure the safety of customers and
employees. Depending on the cafe's concept, additional amenities may be necessary,
such as a drive-thru window, outdoor seating, or a small stage for live music
performances.

B4. Management Structure: The management structure and key positions of BMJ Cafe
along with their specific responsibilities:
Owner/Proprietor: The owner is responsible for the cafe's overall direction, financial
aspects, and decision-making.

General Manager: The general manager oversees day-to-day operations, staff

management, customer satisfaction, and coordination with suppliers.

Assistant Manager: The assistant manager supports the general manager in various
operational areas and acts as a backup in their absence.

Head Chef: The head chef plans menus, oversees food preparation, manages the
kitchen staff, and maintains quality and safety standards.

Barista Supervisor: The barista supervisor manages coffee and beverage operations,
trains baristas, ensures drink consistency, and handles equipment maintenance.

Front-of-House Manager: The front-of-house manager oversees customer service,

reservations, dining area operations, and maintains cleanliness and ambiance.
Shift Supervisors: Shift supervisors manage specific shifts, handle staff, customer
inquiries, cash registers, and ensure compliance with policies.

Marketing and Events Manager: In larger cafés, a marketing and events manager
develops and implements marketing strategies, manages social media, and coordinates
events.

B5. Products and Services: The product and services that will be provide of
BMJ Cafe:
The café provides a range of beverages, including coffee, tea, and various
espresso-based drinks, as well as hot chocolate, iced coffees, smoothies,
and fresh juices. In addition to beverages, they offer a selection of food
items like pastries, sandwiches, salads, and light meals. Customers have
the option to customize their drinks with different milk choices,
sweeteners, flavors, and toppings. Takeaway and delivery services are
available for those who prefer enjoying their café experience elsewhere.
The café also offers catering services for events and provides a
comfortable workspace with free Wi-Fi access. Loyalty programs are in
place to reward frequent customers. It's worth noting that specific offerings
may vary based on the café's concept and target audience.
 C. Market Analysis

C1. Target Market: Describing the target market for BMJ Cafe’s product
and services:
The BMJ Cafe aims to attract a specific group of customers based on
factors like its location, menu offerings, and brand image. BMJ Cafe,
typically, cafés target customers who live, work, or visit the surrounding
area. The target market can include diverse demographics, ranging from
young adults to professionals and older individuals. The cafe seeks to
appeal to customers who value quality coffee, specialty beverages, and a
comfortable atmosphere, whether for socializing, working, studying, or
simply enjoying a cup of coffee. The cafe may position itself as trendy,
contemporary, or unique to attract a specific customer base. It's important
to note that the actual target market may differ for BMJ Cafe depending
on its unique characteristics, location, and branding strategy.

C2. Industry Analysis: Industry analysis for BMJ Cafe:

The café industry is a thriving sector within the food and beverage industry, offering a
relaxed social setting for customers to enjoy coffee, beverages, and light meals. It has
experienced steady growth, with the United States' café industry generating
approximately $45 billion in revenue in 2021. Current trends include a preference for
specialty coffee, a demand for healthier options and sustainability practices, and the
increasing popularity of digital ordering and delivery services. The industry is highly
competitive, encompassing local independent cafés and national chains, each with their
own unique selling points. The COVID-19 pandemic has significantly impacted the
industry, leading to operational adjustments such as takeaway and delivery services.
However, the future outlook remains positive, with the café industry expected to
continue growing as consumer preferences evolve and coffee culture thrives
C3. SWOT Analysis:

S (Strengths) W (Weaknesses)

1. Unique Offerings 1. Limited Space

2. Quality Products 2. High Competition

3. Customer Service 3. Operational Efficiency

O (Opportunities) T (Threats)

1. Online Presence 1. Competition from Established

2. Collaboration and Partnership Brands

3. Delivery and Takeaway 2. Changing Consumer Preference

3. Economic Factors

A. Strengths:
- The BMJ café offers unique and distinctive menu items, creating a competitive
advantage.
- High-quality ingredients and well-crafted beverages contribute to the café's
reputation.
- Effective branding and a strong identity set the café apart from competitors

B. Weaknesses:
- Limited seating capacity may result in challenges during peak hours.
- Intense competition requires the café to differentiate itself and offer unique value.
- Operational inefficiencies or inconsistencies in quality may impact customer
satisfaction.
C. Opportunities:
- Developing a strong online presence through a website and social media can reach
more customers.
- Collaborations and partnerships with local businesses create opportunities for cross-
promotion.
- Providing delivery and takeaway services taps into the growing demand for
convenience.

D. Threats
- Competing against established café chains and local competitors can be challenging.
- Changing consumer preferences require the café to adapt its offerings to meet
evolving demands.
- Economic factors such as downturns or shifts in consumer spending can impact the
café's revenue.
 D. Market Strategy

D1. 4Ps: The 4Ps of Marketing is also known as the marketing mix are Product, Price, Place and

Promotion:

1.Product: The BMJ café's product refers to the beverages, food items, and overall
experience offered to customers. This includes factors such as the menu's quality,
variety, and uniqueness, as well as special considerations like organic or locally
sourced ingredients. The goal is to create a memorable and enjoyable experience for
customers, tailored to meet their needs and preferences.

2. Price: The BMJ café determines its pricing strategy by considering the cost of
ingredients, overhead expenses, competition, and target market affordability. This
strategy can involve positioning the café as a premium establishment with higher prices
based on unique offerings, or adopting competitive pricing to attract a broader customer
base. Special promotions, loyalty programs, or bundled options can also be utilized.

3.Place: The place aspect of the BMJ café's marketing mix focuses on the physical
location and distribution channels. This includes considerations such as the café's
ambiance, seating capacity, and interior design. The café strategically selects a location
that appeals to its target market, such as areas with high foot traffic or proximity to
relevant establishments. The café may also explore online ordering, delivery services,
or collaborations with local businesses for additional distribution channels.

4. Promotion: Promotion involves the BMJ café's marketing and communication

strategies to create awareness and engage customers. This can include advertising,
social media marketing, public relations, and direct marketing. The café utilizes online
platforms, local events, influencers, and community organizations to promote its
products and services. Special promotions, discounts, loyalty programs, and word-of-
mouth marketing are also effective tools for attracting and retaining customers.
D2. Price List: At BMJ Cafe we can provide with a general example:
Croissant: ₱60
Muffin: ₱40
Donut: ₱35
Americano: ₱120
Iced Coffee: ₱100
Black Coffee: ₱ 90
Frappe: ₱90

D3. Promotional Strategy: A promotional strategy for a BMJ cafe, including specific task,
target dates, and responsible parties:

Objective: Increase brand awareness and attract new customers.

Tasks:
1. Social Media Campaign:
- Engage customers with daily content on Facebook, Instagram, and Twitter.
- Promptly respond to customer inquiries and comments.
- Responsible Party: Social Media Manager
- Target Dates: Ongoing

2. Local Partnerships:
- Collaborate with complementary local businesses for cross-promotions and joint
events.
- Offer referral incentives and discounts.
- Responsible Party: Marketing Manager
- Target Dates: Establish partnerships within three months.

3. Online Advertising:
- Launch targeted PPC campaigns on Google Ads and social media platforms.
- Design visually appealing ad creatives highlighting unique offerings.
- Responsible Party: Digital Marketing Specialist
- Target Dates: Start PPC campaigns within one month.
4. Local Community Engagement:
- Sponsor or participate in local events, charity fundraisers, and community festivals.
- Provide on-site catering and sampling opportunities.
- Responsible Party: Events Coordinator
- Target Dates: Identify and participate in community events throughout the year.

5. Customer Loyalty Program:

- Create a loyalty program to reward frequent customers.
- Offer digital or physical loyalty cards with discounts and freebies.
- Communicate exclusive offers to loyalty program members.
- Responsible Party: Customer Relationship Manager
- Target Dates: Launch loyalty program within two months.

Remember, the specific tasks, target dates, and responsible parties may differ based
on the café's unique circumstances and available resources. Regular evaluation and
adjustment of the promotional strategy are essential to align with the café's goals,
customer feedback, and market trends.

D4. Sales Forecast: A monthly sales forecast for the first year of operations for BMJ
Cafe, along with a discussion of the expected market condition:

1. Market Conditions:
- Identify the café's target market, considering demographics, preferences, and local
consumer trends.
- Assess the competition in the area, including the number and strength of competing
cafés.
- Consider external factors such as economic conditions, seasonal variations, and local
events that may impact customer traffic and spending.

2. Monthly Sales Forecast:

- Estimate the average daily customer count the café expects to serve.
- Determine the average amount spent per customer based on menu pricing and
projected customer preferences.
- Calculate daily sales by multiplying the average customer count by the average spend
per customer.
- Multiply the daily sales by the number of operating days in a month to obtain monthly
sales estimates.
- Adjust the sales forecast based on expected growth, marketing efforts, seasonal
factors, and planned promotions.

Please note that this is a simplified version, and developing an accurate sales forecast
requires in-depth market research, financial analysis, and consideration of specific café
circumstances. It's advisable to consult with industry professionals or a financial advisor
to create a more precise sales forecast tailored to the café's target market and location.
 E. Implementation Strategy

E1. Overall Strategy: A strategy for launching BMJ Cafe, including target dates and goals
for implementation:

The strategy for launching the café involves meticulous planning and execution to
ensure a successful start. While specific target dates and goals may vary, the
summarized strategy is as follows:

1. Pre-Launch Phase:
- Conduct market research to understand the target market and competition.
- Create a comprehensive business plan with financial projections and marketing
strategy.
- Secure permits, licenses, and funding.
- Set a grand opening date.

2. Branding and Marketing:

- Develop a strong brand identity and online presence.
- Implement marketing activities like partnerships, online advertising, and community
engagement.
- Establish an active website and social media presence.

3. Menu Development and Operations:

- Create a menu that aligns with customer preferences and dietary trends.
- Source quality ingredients and build supplier relationships.
- Hire and train staff in line with the café's vision.
- Implement efficient operational processes.

4. Grand Opening and Ongoing Growth:

- Organize a grand opening event to generate excitement.
- Collect and respond to customer feedback.
- Implement a customer loyalty program.
- Continuously assess and adapt the marketing strategy based on performance metrics
and market trends.

It's important to customize the target dates and goals based on the café's specific
circumstances. The overall strategy aims to establish a strong brand, attract customers,
provide quality offerings, and drive ongoing growth for the café.
E2. Monitoring Plan: A post-launch monitoring plan to evaluate the success of the BMJ
Cafe in meeting milestone:

Financial Impact:

1. Financial Performance:
- Regularly assess the café's financial statements and compare them to projected
targets.
- Analyze key financial ratios to measure profitability and efficiency.
- Conduct monthly or quarterly financial reviews to identify trends and make necessary
adjustments.

2. Cost Control:
- Monitor expenses, including ingredient and labor costs, while maintaining quality.
- Implement cost-saving measures without compromising customer experience.
- Identify areas for expense optimization and take appropriate actions.

Quality Control:
1.Product Quality:
- Conduct regular inspections to ensure consistent quality of food and beverages.
- Establish quality control standards and address any issues promptly.
- Utilize customer feedback to improve product quality.
3. Service Quality:
- Train staff to deliver excellent customer service.
- Monitor customer interactions and satisfaction levels.
- Implement assessments (e.g., mystery shopping, surveys) to evaluate service quality.

Customer Satisfaction:
1. Customer Feedback:
- Gather feedback through surveys, online reviews, and other channels.
- Analyze feedback to measure satisfaction and identify areas for improvement.
- Respond to customer complaints and take necessary actions.

2. Loyalty and Retention: - Monitor customer retention rates and encourage repeat
business.
- Implement a customer loyalty program to enhance customer engagement.
- Regularly communicate with customers to foster loyalty.
Monitoring Schedule:
1. Daily/Weekly Monitoring:
- Review sales, expenses, and cash flow on a regular basis.
- Address immediate issues promptly.

2. Monthly Monitoring:
- Conduct comprehensive reviews of financial statements and performance metrics.
- Assess customer feedback and satisfaction ratings.
- Evaluate the impact of marketing campaigns.

3. Quarterly/Annual Monitoring:
- Perform in-depth analysis of financial performance and milestones.
- Identify long-term trends and make strategic adjustments.
- Set new milestones and goals for the future.

Regular monitoring based on this plan will provide insights into the café's progress and
areas for improvement. Prompt adjustments should be made to ensure the café
achieves its milestones and sustains long-term success.
 F. Financial Statements and Projections

Note: Develop projected financial statements for the first year of business. You are required to

use the Business Plan Financials Template. The only information entered in section F of this

report should be “See attached spreadsheets”.

F1. Forecasted Profit and Loss Statement: Develop a month-by-month forecasted profit and loss

statement using an estimate of revenues and operating costs based on the sales forecast.

F2. Forecasted Balance Sheet: Develop a forecasted balance sheet for the end of year one.
 G. Financial Report

Suggested length of 1–2 pages

G1. Financial Projections: Summarize the financial projections and the assumptions used in

estimating the financial statements.

G2. Financial Position: Describe the company’s financial position at the end of the first year.

G3. Estimated Capital/Investment Needs: Describe the company’s initial and future estimated

capital/investment needs.
H. References