Date of Graduation

5-2018

Document Type

Thesis

Degree Name

Bachelor of Science in Business Administration

Degree Level

Undergraduate

Department

Accounting

Advisor/Mentor

Cole, John

Committee Member/Reader

Webster, Jim

Committee Member/Second Reader

Webster, Jim

Abstract

Executive Summary

The Coffee Project will be a specialty coffee shop in downtown Bartlesville, OK offering direct-trade coffee, tea, simple meals, and TCP merchandise. The shop will offer the standard specialty coffee drinks like cappuccinos, lattes, macchiatos and cortados, as well as shots of flavors and a selection of milk alternatives. In achieving its mission to provide great specialty coffee with a cause to Bartlesville, a portion of the profits from every food or drink purchase at The Coffee Project will be donated to local and regional charity organizations of the customers’ choosing. All net profits from TCP merchandise will also be donated to charity. Our goal is to bring change to the area while spurring people to get involved in helping others.

The Coffee Project will be located in the heartbeat of Bartlesville, its Retail and Restaurant District. The 20 shops downtown work together to draw in crowds from the surrounding areas and create a unique shopping and dining experience. Of the 20,000 coffee shops in the United States, 55% are specialty coffee shops, which are gearing towards the hip, modern interiors that the millennial population especially craves. With plenty of seating and a modern, industrial-style interior in its 966 square-foot retail space, The Coffee Project will appeal to the audience of caffeine-lovers who enjoy the social aspect of grabbing coffee in a unique atmosphere.

The target market for The Coffee Project will be the 4,500 working professionals downtown and the 1,000 college students at the two local universities. Employment has increased in Bartlesville for the highly specialized energy sector some 3.5% in the last four years. The downtown area is home to several of the city’s largest employers, including Phillips 66, ConocoPhillips, and Schlumberger. Enrollment for Rogers State University downtown has experienced double-digit enrollment increases during several recent semesters.

The millennial population ages 18-36 comprises a large portion of The Coffee Project’s target market. Millennials are more active on social media and are more likely than their elders to seek out a modern coffee shop to spend time in after school or during work breaks. The Coffee Project will hire a social media manager to promote the business via Instagram and Facebook, in order to reach a large segment of our target market. Promotions on social media will focus on the quality products offered in The Coffee Project, as well as on its mission to giving back to the community. An understanding of The Coffee Project’s mission will enhance the attractiveness of the business and allow it to appeal to a wider audience.

The Coffee Project will source its coffee from roasters that use a direct-trade model and provide ethically-sourced coffees. This model ensures appropriate compensation to the farmers at origin. The Coffee Project’s pricing will be comparable to its main competitor, Jude’s Health and Java House, while maintaining a 75% gross margin. Our competitive advantage will be our ability to donate to charity organizations, as well as our high-quality roaster lineup.

The Coffee Project will fund its startup business with a capital investment totaling $50,000. This initial investment will cover all startup costs and equipment, as well as cover any cash flow deficits during its startup phase. Revenue is expected to reach $195,000 in year one, with an annual projected growth rate of 7.5%. Net profits are expected to reach $55,000 in the first year and grow 7.5% to $73,000 in the fifth year. Our goal is to work up to donating a maximum of 50% of net profits to charity, starting with 10% in the first year. Charity donations will grow from $5,500 in year one to nearly $40,000 in year five.

Keywords

business plan; coffee shop; small business; executive summary

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