Knocks Cafe

Ruth McEachern
435-2112
ruth.mceachern@nbed.nb.ca

Knocks Cafe
Business Proposal
November 14th, 2016
THE IDEA
The concept for this cafe will be accessible gourmet and licensed beverages within an
atmosphere that is both inviting and funky. The core values of the cafe will be:
1.

Fantastic Food -achieved by serving lunch, dinner and a wonderful array of desserts
which have been tested and created by myself and other talented members of the
community through years of experience and a willingness to try new ideas.

2. Art -achieved by providing a unique and creative environment which offers people a
place to discuss and share ideas including regularly scheduled art and eating events
that are planned and shared with the Arts Centre.
3. Education -as an educator with a strong background in food and art I want to be able to
use the cafe as a way to engage the public in all sorts of interesting learning
opportunities like paint and sips, festive crafting and social gatherings like board game
nights or trivia with room for some many other kinds of events.
I want this cafe to be a place for people to gather not just to eat. I think there is a significant
market open in Sussex for a cafe that combines activity and art with food and drink so that
people come to take part in something. There are plenty of places to eat in Sussex but many of
them are just that, places to eat and then leave. Sussex does not have a space for people to
gather socially while enjoying delicious food and drink. I want this cafe to create that
opportunity for people.
I believe Knocks can be different than anything thats been in that space before. Our town is
small but it has the potential to support this venue so that it becomes a local hotspot which will
grow and thrive as an epicentre for cultural community in Sussex.

THE NEED
Since the fire that burned down the Broadway Cafe in Sussex several years ago and the
closure of the Mason Jar, there has not been a location that could provide a place for people to
have high quality food while socializing and having an alcoholic beverage. There are still many
people who are looking for that social spot.
Sussex has a limited amount of cultural events that happen regularly and little for
couples or groups of adults to do on an evening out. In conjunction with AX, Knocks cafe will
plan and organize evenings of entertainment to fill that need as well as becoming a cultural
hub for the community and the Arts Centre.
People are drawn to food and drink but once they are there the opportunity to share
ideas and try new things makes way for whole new networks of people to connect.

THE CUSTOMERS
The target market base will be adults in the 25 and above range. According to the town
of Sussex demographic snapshot, between Sussex and Sussex Corner, 47% of our population
falls within that category and yet we have very little for people in that age bracket to go out and
do.
A market survey created and distributed by myself to over 100 adults shows that there would
indeed be support for a new local business which catered to adults looking for something in
and around Sussex.
The average household income in Sussex is $68,000 so although we are not a hugely wealthy
town, our adults do have money to spend on entertainment. The target market for Knocks cafe
will include the 39% of people who live in Sussex who have a college degree or higher. This
will increase the average salary and account for more expendable income. In the market
research survey, 90% of people indicated that they would be willing to spend over $11 for lunch
and a beverage; 49% of people surveyed said they would be willing to spend more than $30
per person on an evening out.
The findings of the survey did support that people of Sussex are willing to go out and spend
money, and even better, 87% of people say that they wish there was more to do on an evening
out. So when it comes to starting a business like Knocks it is important to note that 67% said
they would absolutely be willing to try a new cafe, with another 26% saying that they would
probably try a new cafe.

As in any food and beverage industry people need to be willing to try and then you have to
deliver something fantastic. Once that is achieved the word will spread and more and more
people will follow. But the research shows that 93% of people are willing to try and they are
looking for something new.
The complete survey and data analysis is available digitally and strongly shows that the people
of Sussex are looking for something to do and are willing to pay to do it.

THE MENU
Food should be accessible to everyone, but I want people to try things that they have never
had before and wouldnt necessarily make at home. Soup and sandwiches are great but if you
can make them just as well at home why would you bother to pay for them when you want to
go out and spend some money. This puts Knocks a step above many of the cafes and
restaurants around town.
The menu will be a combination of regular staples including paninis and salads as well as new
dishes that change daily. All the food will be high end at an affordable price with lots of room to
include menu options for a variety of dietary requirements.
Knocks will also have a menu of quality beverages including espresso coffee and gourmet hot
chocolates and teas. Over the course of my varied career in the service industry I have been
trained and have become comfortable creating these kinds of high end beverages. I know that
Knocks can benefit from the current social trend of luxury coffee drinks while still maintaining
its commitment to not over charging customers merely because a product is viewed as being
expensive .

A sample menu has been included to give an idea of some of the great
options that will be offered but may be reworked and tweaked in the
coming months.

THE HOURS
The cafe will be open:
Monday- closed
Tuesday- 10-3
Wednesday- 10-3
Thursday - 10-9
Friday 10- 10
Saturday 10-10
Sunday- closed (open to change)
The hours of the Cafe will also fluctuate with events and openings of the Art Centre. Knocks
Cafe would very much like to work with AX to create an energized environment around
community arts and would gladly take part in gala openings and fundraiser events that would
call for bar or catering services.

THE STAFF
A second staff member will be needed for peak times which would include lunch and dinner
hours.
Extra Staff
25/week @ 10.50 an hour = 262.5$/week = 1050/month
11:30- 2 Tuesday- Saturday
5-7 Thursday-Saturday
This position is not full time but is a good opportunity for someone entering or reentering the
workforce. There are many parents of small children who could work the lunch shift and be at
the elementary school in time to pick up their children. Several people have already enquired
as to the position.
The evening shift will be slightly more difficult to fill as a person with children would not find
this a convenient time to be regularly out of the house. My knowledge of just graduating
people will be useful to select and advertise among young adults in Sussex. This person would
also be bar tending in the evenings so I would be looking for someone over 19 who is fun and
high energy.
Staff members need to be personable and interested in trying new things. I want the staff to be
able to try the food they are serving so that they can work with the kitchen to develop flavours
and critique. With a lunchtime service of 20 customers and dinner service of 16 the position can
be covered by 1 person plus myself if necessary. Previous experience will be an asset but not a
requirement. I have experience with training staff in food prep, draught beer and espresso
coffee.

The kitchen side of the cafe will be covered by myself with room to train an extra employee as
the business develops.
The non-peak hours of operation would be covered by myself until the cafe is well established.
An estimated 45 hours/week
Salary 800$/week 3200 per month

THE REVENUE
The estimated revenue is based on an average of customers per day with peak days
accounted and adjusted for:

Estimated Revenue
Number of customers per
day

Average order amount

Lunch

Market research shows

that 56% of people
would pay $11-15 for a
meal and beverage and
36% would pay $15+

20 people x $12

Number of
days

Total Revenue

1200

250

Market research shows

that 53% of people are
willing to pay $30 and
up on a night out of
dinner and drinks

720

The market research

number of $30 per
person minus $15 for
food leaves an average
of 15$ in drinks

1125

Coffee and Snacks

10 people x $5
Dinner
16 people x $15

Alcoholic Drink Sales

25 people x $15

Total estimated revenue per

week = 3,295

Total estimated
revenue per month =
13,180

Total estimated
revenue per
year
= 158,160

Monthly Revenue Minus Costs

Total monthly Revenue
Minus Monthly Costs

13,180

Rent

900

Wages
Mine
2nd Staff member

3200
1050

Food

1000

Draught

1044

Liquor

400

Internet and phone

100

Insurance

55

Interac

50

Power

200

Espresso machine

200

Loan Repayment

250

Advertising

50

Packaging

100

Estimated monthly
balance minus costs

4,581

THE STARTUP COSTS

Liquor

Costs

NB Liquor License - Dining

$325

$986

Room License
Kegs

261

Wine

160

Liquor

120

Beer by the Bottle

120

Food

$1065

Food License Class 4

265

StartUp Pantry Inventory

700

Disposable Packaging

100

Decor

$1090

Paint

100

Menus

40

Glassware

200

Tableware

150

Silverware

100

Sign

200

Display Cases and Hardware

300

Rent

$900

Hardware

$800

Appliances

300

Ipad 2 Used

350

Ipad Stand and Printer

150

Total

$4,841

Liquor
Limited Start Up Menu to begin liquor sales and keep startup costs low. More products and
selections will be made once it becomes clear what customer preferences are.
Town of Sussex has been approached and they have told the board of directors for the artist
coop that they would support a business' application for a liquor license.
Draught installation - Pump House Brewery
Provides a free three tap kegorator as well as glassware with sole purchase of their products
Each keg is 87$ and provides about 40 glasses of beer.
87 x 3 = $261
Wine- sold by the glass with bottle options available once customer base is established.
House option of White (Chardonnay/ Sauvignon Blanc) and Red (Pinot Noir/Cabernet
Sauvignon)
4 x $40= 160
Liquor - Vodka/Rum/Gin/Whiskey -$120
Beer by the bottle- Bud/ Bud Light/ Coors Light/ Keiths - $120

Food
Food Licence Class 4- $ 265
Food Safety Course completed on October 22 2016
Food will be purchased with Costco and Superstore being the initial suppliers.

An application for Food Premises License needs to applied for through the government of NB
and a food inspector will have to be called to check that the kitchen is up to health and safety
standards before major renovations are complete.

Rentals
Espresso Machine rental- 200
A company out of moncton leases espresso machines.
Debit and credit machineThe cafe will be using an Apple Square which takes credit and debit cards. $10
Debit cards are swiped with a 12 cent charge
Mastercard is 1.8% of the purchase
Mastercard is 2.8%

THE LEGAL STRUCTURE

The cafe will start out with myself, Ruth McEachern, as the sole proprietor. Within the first three
months, and as the business gains capital to pay for lawyers fees, the cafe will become
incorporated.

THE RENT
I would also like to suggest that the cafe and the Arts Centre consider December as a month
of mutual preparation and that set up of the cafe would not require rent to be paid for the
space.
The rent is set at this point for $900 which I have budgeted in for start up cost. I would
however like to put forward the idea that January be considered a half month as it is my
understanding the grand opening is set for mid-January and the first full month would start in
February.

THE APPLIANCES
The cafe space has 2 refrigerators, a stove, dishwasher and 2 sinks. I would like to make an
offer of $300 for the purchase of all of them.

THE SUGGESTION
The issue that Knocks is facing is the added cost of finishing the kitchen. The upfront money to
instal shelving, flooring and counters, rewiring, and plumbing is a stumbling block for Knocks at
this time.
However, if the flooring can be provided by the town to finish the space that would take care of
that hurdle.
I feel that I can acquire functional startup refrigeration through a friend who does appliance
repair and so between the two fridges that will already be in the space plus the addition of one
or two more refrigerated units that will be taken care of.
It seems very workable that kitchen storage can be repurposed from metal book shelving that
both the town and the local library is trying to give away. As they are metal, I feel that they will
meet industry standards to begin with and will significantly cut the cost that cupboard units
could pose for the renovation.
With flooring, shelving and refrigeration accounted for, that leaves plumbing for the kitchen and
the dish pit, wiring for all the new space that is being added and the counters to figure out. I
dont have anyone that I can call upon readily with enough qualification to do plumbing or
wiring and was wondering if AX might be able to find trades people who would be able to help
in this area. The sinks that are already in the kitchen plus one more deep basin sink for the dish
area should be enough for this space.
The counters are the last major instal required to get the kitchen up and running. I checked
online with Home Depot to get a sense of the cost of counter sections and it seems that 8-10
foot sections of countertop can be purchased for around $100. I would estimate within that
space you could purchase all the counter you would need for between $300-$400. The
counters could essentially be tops with shelving or refrigeration under them. Cupboard doors
are nice but are not essential at this point. The tops will need to be anchored in someway so
that will also require some additional materials. A conversation with the food inspector would
let us know if the base of the counters can be constructed with wood if the tops themselves
are up to industrial standards.
If AX can figure out a way, within their resources, to instal the base structure of the kitchen
such as the floors, shelving, wiring, plumbing, and counters, then Knocks Cafe can more than
likely figure out the rest. The construction, in my estimation, should not exceed $5000 and
could very probably be done for less. All of the suggested additions would be things that stay
with the space and so would be available to anyone who wanted to move into that space. It

strikes me as in residential rental, if you put a little extra into the space you can charge more
for it from that point on.
So here is my suggestion. In exchange for AXs upfront support and to regain the capitol spent,
I propose for AX to increase the rent by $200 a month. This will recoup half the expenditures in
the first year and be a significant long term gain looking into the future.

THE COMPETITION
The main competitor with Knocks Cafe is Taste and See.
They serve good quality food and coffee and are also open for dinner.
However, they have a reputation for not being fast enough for a lunch crowd in

a hurry and their take out option is limited to calling in and is not available if the
restaurant is full or busy.

Knocks lunch menu will be designed so that dine in customers in a

hurry dont have to worry about being able to get in and out quickly. And
to maximize sales, and customer base, there will be a lunch time take out
menu that is grab and go.

Taste and See also has decided on not licensing their dining room on the

grounds of moral contention.

Knocks will offer upscale dining while also offering a selection of wine,
liquor and draught. This will appeal to many customers especially those
who are looking to make an evenings entertainment without having to
travel very far.

Their location is also designed for small gatherings and has little open space for

larger groups to mingle or interact.

Knocks has a small dining area but is designed to be open which gives
the opportunity to turn the space into an inviting social atmosphere
instead of only having small, intimate seating areas. The space also has
different open areas where people will be able to gather in greater
numbers after they are done eating and will be able to move around the
space without feeling intrusive.

Due to location and menu selection Knocks will also be in competition with Off the Rails during
the daytime hours.
They sell soup, sandwiches and baked goods
but have a very limited selection with little that changes on the menu besides

the soup of the day.

For those that like to stick to what they know, Knocks will sell a variety of
staple dishes that will be served daily but the menu itself will change
regularly and always have something new and different to try.

Off the Rails also sells specialty coffee

Knocks will remain competitive with both Off the Rails and Taste and
See by lowering the price of gourmet coffee and up selling food and
baked goods.

Off the Rails is now a licensed cafe

But they have not extended their hours into the evening when many
would really be looking to take advantage of the licensing option. Knocks
will be open into the evening on Thursday, Friday and Saturday.

The German Bakery in Sussex Corner

is a new cafe and sells very good sandwiches and baked goods through the day
but it is out of town and has limited hours of operation,

Due to location and focus on baked goods, it shouldnt pose too much of
a direct competition for Knocks.

Knocks will be very interested in supporting local business and suppliers

so instead of competing with the German bakery it makes good sense to
potentially bring in some of the bakeries specialty items to be included
on the menu.

Tim Hortons and Subway both provide coffee and sandwiches in the downtown Sussex area.
but do not cater to Knocks target market of people looking for high quality food and

beverage.

 Knocks will be competitive with subway in that they both provide walk in

sandwich take out.

Customers at Knocks will not have to anticipate the high volume of customers

that either has during the lunch hour which comes from high school students
that frequent both Tim Hortons and Subway. Knocks also has convenient
parking which makes it easy for people to come in and out quickly during peak
traffic times in Sussex while avoiding Main Street congestion.

THE MARKETING
The cafe is in a good location with a lot of traffic flow, but to make people aware that its
there and not just The Tea Room will take some doing. Up to this point it has not been done
by any of the various proprietors. Many people I have spoken to still need the original
descriptor of The Tea Room and have never actually gone in because they see it as a being a
dainty old style place that serves tea in teacups and homemade egg salad sandwiches.
With the turn over in cafe proprietors that have happened over the years people are also
unclear as to what to expect when it comes to hours and people often wont stop if they arent
confident that the cafe will be opened. It will be a priority to make people realize that this
newest change in ownership has changed more than just the name of the cafe.

Noticeable Signage
Noticeable signage which accents the trendy and upscale style that the cafe will offer
is the first and most straightforward marketing strategy Knocks will employ. It needs to be clear
that the atmosphere of the place has changed along with a significant change of hours. I have
access to a professional sign painter in my father and he has offered, with my help, to make
any new signage required. The front window will be painted and will have good observability
for the first 3-4 months of operation before summer foliage obscures the area. There will be a
road side free-standing sign that will have space to make daily changes including the hours for
that day. The side of the building that faces the fire station is also a spot that traffic flow will be
able to see easily and is a good place to advertise the change.

Social Media
Social Media will also be a major marketing aspect for Knocks cafe. With a daily menu
that often changes and baked good made daily, pictures and descriptions of daily food items
can be tweeted and updated on facebook and instagram which will be a recurring reminder to
people that we are there. Cafe events such as sip and paints or board game nights will also be

made into facebook events and will be seen by more and more diverse groups of people as
customers sign-up for them and the events get posted on many different peoples timelines.

Website
Websites are now an expected aspect of any business marketing portfolio and can be
used as a place to post highlights and have information for upcoming events. It also makes
sense that daily menu changes with pictures can be posted there next to the Take Out lunch
menu that will be a selling feature of our cafe. Since working in Education and its push on
keeping up with changing technology, I have already made several webpages for my classes
and feel confident that I have the skills to make a beautiful and user-friendly interface that will
work to market and highlight the wonderful food and events that will be taking place at the
cafe.

Locally Sourced Products

Knocks would very much like to support local producers in the area. I would be very
interested in making an arrangement with a local produce farmer to deliver a weekly veggie
basket. The locally grown fruit and vegetables that arrive would then dictate some of the
delicious daily menu options like soups, roasted vegetables and delicious sides.
By highlighting locally made products and the people who provided them on the cafe
website and in the cafe itself it forms more ties in the community and more ties will mean more
business. As the business grows so does the potential to incorporate more people and their
products so that you end up with this great and diversified place where people have the
opportunity to really try new things. I am confident that people will come to support that
opportunity.

Loyalty Card
Customer loyalty cards will be given out to people in the community to start business
flow as well. The idea will be It might be your first but it definitely wont be your l ast and then
the first and last coffee on the card will be free with 8-10 spots on the card. Teachers and

business owners from the community are well within the target market and are a good source
of come back customers.

Also knowing the the entire teenage population of a town can be used as an
advantage. Although teens are not the target market they do have significant spending power
and can be used to bolster the customer base. There is good potential to bring in parents of
teens with a special deal along the lines of Dinner with Dad or A Meal With Your Mum in which
coupons can be given to teens who will get a discount on a meal or free dessert that they get
with their parents As an age group with considerable expendable income and who are also at
a loss for interesting places to go it makes sense to try and include them.

Local Advertising
A regular advertisement will be taken out in the Kings County Record with the concept
that It Is Time For A Date Night. Market research has shown that 90% of the adults in Sussex
are not able to think of something to go out and do so they either dont go out or leave for the
cities. Local promotion will be used to make contact with the people who are looking for
somewhere to go in the evening but may not be reached through social media.

Word of Mouth
Word of mouth is a powerful force, especially in the food and beverage industry, but
you need to get people in for those mouths to start working. I have lived and worked in this
town for a long time and I know a lot of people in different circles. Being able to call out to
them and gather people first by their knowledge of me and then by using a tangible incentive
like a loyalty card is going to bring in the first waves of daytime customers which will in turn
send out the message and start the second wave of repeat customers.

The Grand Opening

Adult evening entertainment will have significantly less competition than lunch time
business but it will be important to promote it in the community that assumes there is nothing
for them to do. A grand opening evening event will be important to bring people in and show
them the space has changed and is open for evening entertainment. A party planner with
strong ties with the adult community will be hired to promote the opening. The new patio
portion of the building will also be decorated and lit so that peoples attention are drawn to the
fact that this is a very new and exciting addition. The patio also has great potential for high
impact signage declaring the fact to passing traffic.

THE LONG TERM PLAN

Expansion
I believe that Knocks cafe will grow.
The Patio at the side of the building has fantastic potential to increase sales in the Cafe. The
grand opening is in January and so use of the outside area will be limited in the beginning.
However with the spring change in weather Knocks will develop a beautiful and inviting
outside area which will allow for extending Cafe seating and will draw in customers looking to
enjoy the outdoors while socializing. There is nowhere in town with this kind of option and it
will give Knocks a major competitive edge. With the projected patio popularity and increased
customer sales, Knocks will look to hire a second peak hour server.
Over time and with more and more customer demand, I would like to think about things like a
take out entrance at the side of the building where people can quickly come in and out would
be a good way to bring in more customers.
Within the first year I foresee Knocks being able to support and need two full time staff and at
least 2 part time staff.
Kitchen equipment upgrades would also be a goal for the first year. Anyone who has cooked in
any kind of setting recognizes that good equipment optimizes efficiency. That being said there
is often a high price to upgrading. The current kitchen equipment that is in the cafe now can
easily be made to work and has been proven effective but the numerous other cafe proprietors
who have worked in that space. That being said prep tables and upgraded refrigeration would
be a priority within the space and would be one of the first major acquisitions of Knocks cafe.

Education
September 2017

Once the cafe is established and running well, the goal of the cafe will be to educate. I want to
be able to hire 1 high school student who needs a hands-on educational setting and
incorporate their high school credits into the daily running on the cafe.
The cafe can work like an apprenticeship program while giving a student the opportunity to
learn in an environment that they would not get anywhere else . The first students who enter
into the program will be hand picked and treated like homeschool students until there is strong
evidence of success through completion of their high school diploma at which point I will
approach the department of education to see if the cafe can be made into an acknowledged
alternative learning site.
It has been a dream of mine for a long time to have my own school where I can help those kids
who are very smart but not able to work in a normal high school setting. Often these kids are
very independent and mature but can not be motivated to do tasks they see as arbitrary, which
in their defence seems valid. A cafe where they work and get paid isnt arbitrary or
meaningless, and it would give some of these kids an opportunity to really make a difference in
their own lives. A cafe would give them skills they could take with them forever.
Real tasks and business necessities like budgeting, menu planning and marketing could easily
be turned into a course curriculum and proved to be completed by a student. A cafe that was
an alternative education centre would also be a fantastic opportunity to involve the community
in educating these students. Book clubs and local musicians, activists and public interest
groups could all be invited to join in our daily learning and then it wouldnt just be a fantastic
opportunity for a few select kids, it would make a whole community of people working together
for something great.