Coffeehouse Business Plan

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Dark Roast Java
Table of Contents
Executive Summary 1
Chart: Highlights........................................................................................................................2
Objectives........................................................................................................................................3
Keys to Success...............................................................................................................................3
Mission............................................................................................................................................4
Company Summary 5
Company Ownership.......................................................................................................................6
Start-up Summary............................................................................................................................6
Table: Start-up.............................................................................................................................7
Table: Start-up Funding..............................................................................................................9
Chart: Start-up............................................................................................................................7
Products 7
Product Description.........................................................................................................................7
The Dark Roast Java Menu..............................................................................................................7
Teas............................................................................................................................................10
Juices.........................................................................................................................................11
Italian Sodas..............................................................................................................................11
Other Drinks..............................................................................................................................12
Snacks and Pastries...................................................................................................................12
Deli Items..................................................................................................................................12
Sales Literature..............................................................................................................................13
Market Analysis Summary 13
Market Segmentation.....................................................................................................................14
Chart: Market Analysis (Pie)....................................................................................................15
Table: Market Analysis..............................................................................................................15
Target Market Segment Strategy...................................................................................................16
Industry Analysis...........................................................................................................................17
Competition and Buying Patterns..................................................................................................19
Competition...............................................................................................................................22
Buying Patterns.........................................................................................................................22
Strategy and Implementation Summary 23
Competitive Edge..........................................................................................................................24
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Dark Roast Java
Marketing Strategy........................................................................................................................24
Launch Marketing.....................................................................................................................24
Sales Strategy.................................................................................................................................30
Sales Forecast...........................................................................................................................32
Chart: Sales Monthly.................................................................................................................32
Table: Sales Forecast................................................................................................................33
Milestones......................................................................................................................................33
Table: Milestones.......................................................................................................................34
Web Plan Summary 35
Website Marketing Strategy...........................................................................................................36
Development Requirements...........................................................................................................37
Management Summary 37
Personnel Plan...............................................................................................................................38
Table: Personnel........................................................................................................................38
Financial Plan 39
Important Assumptions..................................................................................................................39
Table: General Assumptions......................................................................................................39
Projected Cash Flow......................................................................................................................40
Chart: Cash...............................................................................................................................40
Table: Cash Flow......................................................................................................................41
Break-even Analysis......................................................................................................................42
Chart: Break-even Analysis.......................................................................................................42
Table: Break-even Analysis.......................................................................................................42
Projected Profit and Loss...............................................................................................................43
Table: Profit and Loss...............................................................................................................44
Chart: Profit Monthly................................................................................................................45
Chart: Profit Yearly...................................................................................................................45
Chart: Gross Margin Monthly...................................................................................................46
Chart: Gross Margin Yearly......................................................................................................46
Projected Balance Sheet................................................................................................................47
Table: Balance Sheet.................................................................................................................48
Business Ratios..............................................................................................................................49
Table: Ratios..............................................................................................................................50
Appendix i
Table: Sales Forecast i
ii
Dark Roast Java
Table: Personnel ii
Table: General Assumptions iii
Table: Profit and Loss iv
Table: Cash Flow v
Table: Balance Sheet vii
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Dark Roast Java
Executive Summary
The concept
Thanks primarily to Starbucks, within the past 20 years the coffeehouse has become a familiar
feature of American life. Every day, millions of Americans stop for an espresso-based coffee
drink. People who would not have dreamed of spending more than 50 cents for a cup of coffee a
few years ago now gladly pay $3 to $5 for their cappuccino, mocha latte or vanilla ice blended
drink.
The specialty-coffee business is growing at a healthy pace. During the past 20 years, there has
not been a single year, despite war and recession, in which specialty coffee sales have not grown.
In many years the increase has been in double digits. In addition, no coffeehouse chains have
failed during this time, although the list of casualties in other industries is quite long.
Starbucks, The Coffee Bean, Peet's, Diedrich's and other major chains serve average quality
drinks in establishments that have the same generic design appearance. Indeed, Starbucks and
The Coffee Bean are often referred to as "fast food" coffeehouses due to their "cookie cutter"
design. Now that Americans' coffee preferences have broadened and matured, many are asking
for more from their coffeehouse.
A niche exists that has yet to be filled for a high-volume, upscale, quality-driven
coffeehouse with a warm, inviting atmosphere. Dark Roast Java meets this need and fills this
niche. We offer high-quality products in an upscale environment. Furthermore, our high-profile
location in Pleasantville provides a mixed customer base that will maintain high levels of
business in every season, at all times of the day, every day of the week.
Founders
Ned Powers-Sebastiane, founder of Dark Roast Java, has a long career as an entrepreneur and
marketing executive. He is the founder of Powers-Sebastiane Advertising & Public Relations and
Pan National Motor Tours. Co-owner Curt Yamaguchi has an intuitive understanding of the real
estate market. As a highly successful real estate broker and investor he brings several key
capabilities to the Dark Roast Java team, not the least of which is his ability to procure highly
desirable locations for future stores.
Financials
The company anticipates rapid acceptance of the Dark Roast Java concept in Pleasantville, with
revenues of $600,000+ in the first fiscal year, rising to more than $1,000,000+ in year three. Net
profit is projected to be approximately $99,000 in year one, growing to an estimated $265,000 by
year three.
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Dark Roast Java
An advanced and expandable point-of-sale system

After carefully tracking the performance of the Pleasantville store through an expandable and
highly detailed point-of-sale system, we will use this as a "blueprint" for expansion. For
example, daily sales are tracked and analyzed by item, time period and cost of goods. Labor
requirements are matched to projected in-store sales based upon past performance for maximum
efficiency. Even after paying higher than average wages, we expect to allocate no more than 25%
to labor costs.
** This Business Plan only provides data on the Pleasantville coffeehouse.

Sources: US Census Bureau, Pleasantville Chamber of Commerce, Specialty Coffee
Association of America.
Chart: Highlights
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automatically, with a professional modern design.
Objectives
 Make Dark Roast Java the number one destination for coffee in Pleasantville
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 Sales of $600,000+ the first fiscal year, $750,000+ the second fiscal year and $1 million
the third fiscal year
 Achieve a 15% net profit margin within the first year and 30% by FY3
 Achieve a total net profit of $150,000+ in FY1 and $200,000+ by FY3
 Be an active and vocal member of the community, and provide continual re-investment
through participation in community activities such as the Chamber of Commerce and
financial contributions to local charities and youth organizations
 Create a solid concept in the industry and track performance in order to begin expanding
to other markets within six months
Keys to Success
The keys to our success will be:
 A superior-tasting product backed by a unique quality store
 A relaxing, upscale interior design
 Prime site selection with an upscale affluent population, year-round tourist activity, heavy
pedestrian traffic by the site, a dynamic student population and a concentration of local
businesses
 A market that exposes Dark Roast Java to high-profile "trend-setters" and "key
influencers"
 Ongoing, aggressive marketing
 Highly trained and friendly staff
 Multiple revenue streams including gift items, gift baskets and coffee gift/frequency
cards in addition to coffee, pastry, chocolates, tea, juice, water and soft drinks
 A dynamic website with online sales capability
Mission
Our goal is to be the coffeehouse of choice for the local Pleasantville community, downtown
business workers, tourists who visit the city, and students, by providing a higher quality
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Dark Roast Java
experience than any competitor. As a result, we intend to create coffeehouses that quickly
achieve profitability and sustain an attractive rate of return (20% or more annually) for our
investors.
We also want to make our contribution to the welfare of the local community by supporting
charitable and civic activities. We will support the farmers who grow our coffee by using Fair
Trade, Sustainable Production and Organic products whenever possible.
Dark Roast Java also awards its business to as many local suppliers as possible, keeping the
business in the community or, at the least, in the state.
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Dark Roast Java
Company Summary
Dark Roast Java launches with its first coffeehouse located in downtown Pleasantville. Dark
Roast Java will offer residents and visitors a totally new style of coffeehouse - one offering a
uniquely flavorful coffee drink and a comfortable, upscale environment at which to socialize,
relax or work.
 Variety: No other coffeehouse in the area will provide the range of coffee drinks, tea,
cocoa, juice, smoothies and other products that Dark Roast Java does.
 Location: Dark Roast Java will be located in the prime section of downtown
Pleasantville in the heart of the shopping and entertainment district. Dark Roast Java
locations are designed for high volume year round, with revenues and profits to match.
 Expansion: Assuming this store is successful, it will be the first of a chain of Dark Roast
Java coffeehouses located in markets that have similar demographic profiles, significant
traffic by the store, year-round tourist activity and a sizeable student population.
The Dark Roast Java Concept
At one time Cadillac was the acknowledged quality automobile in America. Then came
Mercedes-Benz. And then Lexus, with its superb product and service approach. Dark Roast Java
will be the first "Lexus" of the coffeehouse chain industry, offering a higher quality product
and better quality service in an exceptional environment. The only coffeehouse that comes close
to being as upscale as our concept in the Pacific Northwest is Torrefazione, with its high
style Italian decor (they were recently part of a $72 million dollar buy-out by Starbucks).
The first Dark Roast Java is located in Pleasantville. Other Dark Roast Java coffeehouses will
eventually be located in select affluent markets that support the business model (e.g. Mount Hill,
Newburg, Springfield, Bayview, Orchard Valley, Beachey Head, Capital City).
Dark Roast Java offers a superior coffee product, delicious pastries, fresh juices, the finest tea
drinks, Ghirardelli cocoa, gourmet chocolates and gift items.
The Dark Roast Java staff members who prepare the coffee (baristas) are highly trained and
experienced. They know how to prepare an excellent espresso-based drink and brew tasty coffee.
We use the highest quality equipment and ingredients to deliver a noticeably superior product.
Our design style is different from all other coffeehouses, an upscale "Cote d'Azur" look. It
features stained glass decorations, art glasswork, Mediterranean Riviera style furnishings and
outdoor dining.
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Dark Roast Java
Company Ownership
Dark Roast Java is a privately held corporation. It is registered as a state LLC Corporation, with
ownership shared by Ned Powers-Sebastiane, Victor Lubitsch, Curt Yamaguchi and other outside
investors.
Start-up Summary
Start-up expenses are in line with those of other coffeehouse chains. For example, Starbucks
spends approximately $380,000 on average to build-out a new store location. Our costs are an
estimated $225,000 and $25,000 for opening inventory and operating capital. Future stores
should cost no more than $175,000 to build out since many of the costs incurred here will not
have to be repeated later.
The Start-up requirements, below, include $77,000 of short and long-term assets.
Long term assets: $62,000
Undercounter Refrigerators $5,000

Service/Prep Counter $12,000
Ice Machine $3,500
Large Refrigerator $1,000
Milk Coolers (3) $1,000
Cash register (2) Point of Sale System $14,000
Espresso Machine $11,000
Fetco Coffee Brewer $2,500
Counters/Condiment bar/shelving $12,000
Short-term assets: $15,000
Tables, Chairs, Furnishings $12,000

Persian Carpet $1,000
Lighting Fixtures $2,000
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Dark Roast Java
Table: Start-up
Start-up
Requirements
Start-up Expenses
CONSTRUCTION $0
Site design, architectural plan $10,000
Demolition/Construction $25,000
Electrical, Lighting $12,000
Electrical, Other $10,000
Flooring/installation $5,000
Bathroom Construction $4,000
Plumbing $10,000
Fireplace Construction $5,000
Painting $2,500
City permits/licenses/fees $6,500
Inserted Row $0
LEGAL $0
Accounting $2,000
Legal $4,000
Insurance $2,500
Inserted Row $0
MARKETING $0
Opening marketing/advertising $3,000
Graphic design for signage, menu boards $2,000
Outside Signage $1,500
Frequency Cards, Brochures $1,500
Inserted Row $0
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Dark Roast Java
OFFICE $0
Office equipment $600
Computer, scanner, printer $2,000
Telephones/Fax/DSL $500
Stationery etc. $1,000
Gift item displays (3) $1,500
Inserted Row $0
APPLIANCES, ETC $0
Preparation equipment $1,000
Dishwasher $3,500
Blenders (3) $2,000
Microwave $500
Panini maker $700
Storage racks $1,000
Music system $800
Food display case $6,000
Storage room shelving $1,000
Bulk bean grinder $700
Sinks (2), prep counters $1,200
Menu board construction $2,500
Cups/Lids (50,000) $14,000
Total Start-up Expenses $147,000
Start-up Assets
Cash Required $1,500
Start-up Inventory $25,000
Other Current Assets $15,000
Long-term Assets $62,000
Total Assets $103,500
Total Requirements $250,500

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Dark Roast Java
Table: Start-up Funding
Start-up Funding
Start-up Expenses to Fund $147,000
Start-up Assets to Fund $103,500
Total Funding Required $250,500
Assets
Non-cash Assets from Start-up $102,000
Cash Requirements from Start-up $1,500
Additional Cash Raised $0
Cash Balance on Starting Date $1,500
Total Assets $103,500
Liabilities and Capital
Liabilities
Current Borrowing $0
Long-term Liabilities $0
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $0
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Dark Roast Java
Capital
Planned Investment
Investors $250,000
Other $500
Additional Investment Requirement $0
Total Planned Investment $250,500
Loss at Start-up (Start-up Expenses) ($147,000)

Total Capital $103,500
Total Capital and Liabilities $103,500
Total Funding $250,500
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10
Dark Roast Java
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Dark Roast Java
Chart: Start-up
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Products
Dark Roast Java sells high-quality specialty coffee beverages, tea, juice, water, soft drinks,
pastries, chocolates and gift items. Despite being an upscale coffeehouse, our prices are in line
with the leading national chains.
Product Description
The Dark Roast Java Menu
The Dark Roast Java menu sets us apart from other coffeehouses, giving us a competitive edge.
 We offer six groups of drinks—coffee, tea, Italian sodas, smoothies, juice and cocoa—
with several choices within each group. This enables us to provide more variety than our
competitors while keeping the preparation of the drinks easy to execute.
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Dark Roast Java
 We are taking advantage of the immense popularity of flavored drinks and Chai tea by
offering a product mix that includes items the other coffeehouses don't carry as well as
more familiar drinks.
 We are the only coffeehouse to have a wide range of gourmet hot cocoa.
 Dark Roast Java offers several smoothie drinks and Italian sodas.
 We carry the highest quality fresh juices.
Prices have been determined after a thorough analysis of all food costs for every item in each
drink. In some cases, an average price has been calculated and applied to all similar drinks in
order to keep the menu from confusing the customer.
3.2.1 Coffee and Espresso Drinks
COFFEE
Coffees of the day: Dark Roast Java Blend, Riviera Roast, and Molokai Swiss water
process DeCaf.
$1.60 Regular $1.85 Large
ESPRESSO
Larg
Name Description Regular
e
$1.75
Espresso A double shot of straight espresso.
Double
Espresso combined with hot water, a gourmet brewed $2.2
Caffe Americano $1.85
coffee. 5
$3.5
Cappuccino Espresso with a smooth topping of milk foam. $2.50
0
Espresso combined with steamed milk, topped with a small $3.2
Caffe Latte $2.75
amount of velvety milk foam. 5
A Caffe Latte combined with Ghirardelli chocolate, topped $3.7
Caffe Mocha $3.00
with whipped cream and chocolate shavings. 5
Espresso A straight shot of espresso topped with a spoonful of rich $2.5
$1.75
Macchiato milk foam. 0
Espresso Con A straight shot of espresso topped with a generous dollop $1.75 $2.5
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Dark Roast Java
Panna of whipped cream. 0

Espresso Latte Our famous latte made even more creamy with half and $3.5
$2.50
Breve half. 0
Espresso "Red Espresso combined with our gourmet coffee of the day to $2.7
$2.00
Eye" get your day going. 5
COFFEE DRINKS
Larg
Name Description Small
e
The Banana Coffee. Warm milk. Banana, macadamia nut and vanilla syrups.
$2.75 $3.75
Nut Java Topped with whipped cream and cinnamon dusting.
The Cafe Coffee. Warm milk. Amaretto and vanilla syrups topped with
$2.75 $3.75
Milano whipped cream and almonds.
FLAVORED ESPRESSO DRINKS

All flavored drinks feature quality Monin and Ghirardelli syrups.
Larg
Name Description Regular
e
Vanilla Cappuccino Cappuccino made with vanilla flavored milk foam. $2.50 $3.50
Vanilla Latte A Caffe Latte with vanilla essence added. $3.00 $4.25
White Chocolate Espresso, white chocolate flavoring and steamed milk
$3.00 $4.25
Latte topped with velvety foam and white chocolate shavings.
Espresso. Vanilla and orange syrups, steamed milk and
The 50/50 Latte $3.00 $4.25
whipped cream topping.
The Raspberry Coffee. Raspberry and chocolate syrups. Half and half.
$3.25 $4.50
Mocha Latte Whipped cream topping.
Chai Latte Espresso. Chai. Steamed milk and whipped cream. $3.00 $4.25
HOT COCOA DRINKS

All hot cocoa drinks are $2.75
Name Description
French Vanilla Cocoa Hot cocoa with vanilla and whipped cream.
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Dark Roast Java
White Chocolate Cocoa Hot cocoa with white chocolate and whipped cream.
Chocolate Truffle
Rich dark hot cocoa with whipped cream topping.
Cocoa
Holiday Spice Cocoa Rich hot cocoa and holiday spices. Topped with whipped cream.
Rich chocolate and refreshing peppermint. Topped with whipped
Peppermint Cocoa
cream.
Ovaltine Ovaltine Chocolate Malt and milk.
SMOOTHIES
All smoothies are $3.75
Name Description
The Espresso Chocolate Malt A chocolate malt for grownups.
The Double Dutch Chocolate Smoothie Very chocolatey!
The Mocha Smoothie An all-time favorite.
The Vanilla Smoothie Rich natural vanilla flavor.
50/50 Smoothie (Orange and Vanilla) A 50's favorite.
Teas
ICED TEAS
Classic American Iced Tea, just like you remember as a kid.

$1.50 Small, $1.75 Medium, $2.00 Large
HOT TEA
$1.50 Regular
 Earl Grey
 English Breakfast
 Peppermint
 Herb Apricot
 Earl Grey Lavender
 Darjeeling
 Formosa Oolong
 Golden Flowers Herbal
 Herbal Lemon
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Dark Roast Java
 Tropical Green
CHAI TEAS (hot or ice blended)
Chai Original (regular or decaf): $2.00 Regular $3.00 Large
Vanilla Chai: $2.00 Small $2.50 Medium $3.00 Large
Juices
Name Description Regular Large

Exclusively from Longhorn Orchards,
Fresh squeezed orange juice $1.50 $2.75
Corpus Cristi, TX
Made fresh daily from Pleasant County
Old-fashioned Lemonade $1.50 $2.75
lemons.
Protein Boost, Green Machine,
Genesis Juice $2.95
Mango and Guava.
Martinelli's Apple Juice (regular
A San Francisco favorite. $2.00
and sparkling)
Crystal Geyser Juice Squeeze $2.50
Italian Sodas
ICED ITALIAN SODAS
Sparkling spring water, flavoring and ice. Blended or on the rocks.
Medium $1.50, $2.25 Large
 Orange Soda
 Strawberry Soda
 Lemon Soda
 Cherry Soda
 Raspberry Soda
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Dark Roast Java
 Cream Soda (made with half & half)

 Peach Soda
 Kiwi Soda
 Melon
 Apple
SPECIALTY ITALIAN SODAS

All $1.75 Regular, $2.50 Large
Name Description
The Dreamsicle Sparkling spring water, ice, half and half, vanilla and mandarin orange
Soda syrups.
Cherry Vanilla Soda Sprite, ice, cherry and vanilla syrups.
The Chocolate Soda Our version of an egg cream.
Other Drinks
Name Description Price

Geyser Peak Natural Spring Water From Northern California mountain springs. $1.25
Soft drinks from Sprecher's, Stewart's Root beer, Orange Cream, Ginger Ale,
$1.50
and Thomas Kemper. Vanilla Cream and Key Lime.
Crystal Geyser Tejava Tea $2.50
RockStar Energy Drink $2.00
Orangina Citrus Drink $2.00
Snacks and Pastries
Item Price
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Dark Roast Java
Pleasantville Cheesecake, made just for us by Pleasantville Cheesecake Company. $2.00

Fresh scones, hot from the oven. $1.75
Bagels $1.00
Brownies $2.00
Blueberry Muffins $2.00
Croissants $2.00
Black Forest chocolate-covered espresso beans $4.00
Best Ever Bakery Fancy Cookies $1.75
Deli Items
Item Price
Sandwiches: Turkey, Roast Beef, Ham and Salami. $6.75
Soup $3.50
Quiche $4.50
Sales Literature
Coffee roasting is provided by Grizzly Mountain Coffee Company, Pleasantville.
Tea is primarily supplied by Harney & Sons Tea, Connecticut.
Our water vendor is Crystal Geyser, St. Helena, CA
Juices are provided by Longhorn Orchards, Corpus Cristi, TX (fresh orange juice and
lemonade) and Genesis Juice, Eugene, OR
Pastries are provided by local Pleasantville companies such as D'Angelo's Bakery, Pleasantville
Biscotti and Pleasantville Cheesecake.
Chocolates and cocoa are from Ghirardelli Chocolate Company, San Francisco, Bellagio, Los
Angeles and Black Forest Chocolates, Arnold, CA
Gift items are from various vendors
 Soft drinks are provided by Sprecher's Brewery, Milwaukee, WI, and Thomas Kemper
Soda, Seattle, WA
Market Analysis Summary

Dark Roast Java launches with an exciting new coffeehouse concept in a receptive and steadily
growing market segment—the specialty coffee retail business.
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Dark Roast Java
Despite economic downturns in recent years the specialty coffee business has been a bright spot.
While literally hundreds of businesses in many categories are facing poor sales, negative balance
sheets and even bankruptcy, coffee chains continue to show strong growth.
It's clear that America's love for good coffee continues during good times and bad.
Pleasantville: The Perfect Launch Market

By launching Dark Roast Java in the Pleasantville market we maximize our potential for success
due to several factors:
 The highly affluent local population

 Year-round tourist activity
 Ever-changing upscale student population
 Excellent auto and pedestrian traffic by our location
 Low media costs
 High number of local special events
 Prime site location
Dark Roast Java is located at what is arguably one of the best locations for a coffeehouse in
Pleasantville—in the heart of the tourist and business district, adjacent to fine dining and
shopping, next to the historic Egyptian Theatre and just steps from the busiest intersection in
town.
Dark Roast Java Coffee has all the ingredients necessary for immediate success.
Market Segmentation
Dark Roast Java's customer base in Pleasantville is comprised of five target groups.
1. Affluent local residents

2. Tourists
3. Local business people
4. Students
5. Travelers passing through
These groups are all potentially strong customer segments. The benefit of this mix of
customers is that it helps maintain consistent business throughout the year. For example, while
tourism is strong all year long in Pleasantville, it peaks during the summer months. Conversely,
the student population is not as strong during the summer as it is from September through June
of each year.
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Dark Roast Java
The other customer segments (local residents, local business and pass-through traffic on US 66)
provide a consistent foundation all year long.
Also, by appealing to several market segments, Dark Roast Java does not become overly
dependent on any single consumer group. For example, several local coffeehouses with primarily
student customers do poorly during the non-school months. They must also market themselves
anew each year to the incoming students. Dark Roast Java will avoid these peaks and valleys in
business with a mix of customers.
 Affluent locals. Within five miles of Dark Roast Java are 200,000 of the most affluent
people in America. Homes in adjacent Niceburg sell for $1 million to $50 million. Key
influencers, trendsetters, artists, writers and celebrities have homes in Pleasantville.
 Tourists. More than 5,000,000 tourists visit Pleasantville every year. Most will pass by
the Dark Roast Java location. Tourist come to "America's Riviera" for the beaches,
shopping, dining and nearby vineyards.
 Local business people. Dark Roast Java is located on the corner of 'A' Street and First
Avenue in the heart of the prime downtown business district. It's across
from the exclusive, chic, Descarte (I Spend, Therefore I Am) department store, and one
block from the number one shopping destination in Pleasantville, Lucre Galerie. 'A'
Street and Frist Avenue are the two most heavily traveled streets in Pleasantville.
 Students. Pleasantville is home to a major branch of the State University as well as

dozens of other schools, including many prestigious private schools and academies.
Pleasantville High School is less than a mile from Dark Roast Java.
 Travelers on US 66. One of the state's two major north/south routes passes through
Pleasantville. According to Dept of Transportation, more than 35 million auto trips will
pass through the city. Many of these travelers will stop for a meal, to refuel and have a
cup of coffee. US 66 is also a heavily traveled commuter route to Shorewood
and Beachey Head to the south.
Chart: Market Analysis (Pie)
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Dark Roast Java
Table: Market Analysis
Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential
Growth CAGR
Customers
Local residents 2% 75,000 76,500 78,030 79,590 81,181 2.00%
Tourists 5% 100,000 105,000 110,250 115,763 121,551 5.00%
Travelers on US 66 5% 20,000 21,000 22,050 23,153 24,311 5.00%
Students 1% 40,000 40,400 40,804 41,212 41,624 1.00%
Local businesses 1% 20,000 20,200 20,402 20,606 20,812 1.00%
Total 3.22% 255,000 263,100 271,536 280,324 289,479 3.22%
automatically.
Target Market Segment Strategy

Overall, our strategy is to maintain a constantly high customer count by leveraging our appeal to
five groups of potential customers.
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Dark Roast Java
Local Residents. Approximately 200,000 people live within five miles of our Dark Roast Java
location. The most affluent of these live even closer, within three miles. It is a short 5 minute
drive to Dark Roast Java for most of our potential local customers. Excellent public parking is
available within 100 yards.
Local customers form the loyal core of our business. We will reach out to them through local
marketing, involvement in the Chamber of Commerce, support of local charitable organizations
and sponsorship of events and youth sports teams.
Tourists. Pleasantville has excellent year-round tourist activity. About 5 million people will visit
the area during the next year. While hotels are virtually sold out during the summer months,
tourism all year is exceptionally strong. This is due in large part to the temperate climate,
weekend or day-trip visitors from the greater Ontopolis area and an unusually large number of
special events (e.g. film festivals, concerts, art shows) scheduled throughout the year.
With a troubled economy and fears of terrorism, more people are opting for the relatively
inexpensive, easy and safe short trip to Pleasantville for recreation. And, according to the
Chamber of Commerce, 90% of all tourists visiting Pleasantville will pass by the Dark Roast
Java location.
We will target these potential customers with ads in local tourism guides.
Local businesses. Many local businesses, both private and government, are within two blocks of
Dark Roast Java. Lucre Galerie, the prime shopping center of Pleasantville, is one block away.
The county courthouse is two blocks away. Dark Roast Java is in the heart of the shopping and
dining area.
Because much of the employee parking is out of the immediate area with shuttle service to
downtown, most people stay near their place of employment during breakfast, lunch and for
after-work relaxing. A significant number of these local business people find Dark Roast Java an
inviting and convenient destination.
We also offer coffee service to local restaurants, night spots and businesses. Coffee service
brings in additional revenue and promotes Dark Roast Java among employees at these
businesses.
We will also reach business customers through Chamber of Commerce activities and by
personally visiting the shops and businesses to distribute discount coupons and menus.
Students. The area has more than 30,000 students in several schools, including nearby City
College and State University. Students, most of whom are under the drinking age, have few
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Dark Roast Java
places they can go to meet their friends. Coffeehouses have proven to be very popular with
students—even high school students—as an "in" place to go that's also affordable.
To reach students we offer special student discount cards, pass out free coffee coupons at student
events and offer entertainment on weekends.
Students represent an excellent customer segment for several reasons:
 Students bring an energy and youth to the coffeehouse

 By attracting students we generate excellent word-of-mouth
 Students represent a large base of potential part-time employees
 Often under the drinking age, students need an affordable place to hang out with their
friends
Travelers on US 66. The Dept of Transportation estimates that there will be 35 million auto trips
through Pleasantville this year, a number that is increasing every year. US 66 is one of two major
freeways in the state and the one favored by travelers who want to take a bit more time and make
a few stops during their trip. It's also a major commuter route to the cities to the south
in Sunshine County.
Our primary method of reaching this target customer group will be our participation as a AAA
member, offering a 20% discount on all coffee and tea drinks when AAA members show their
membership card.
We also conduct PR activities in media outside the local market to expose the Dark Roast Java
name to a wider state and national audience.
** Source: Dept of Transportation, Pleasantville Chamber of Commerce, US Census

Bureau.
Industry Analysis
The specialty retail coffee business as we know it today began in 1982 after Howard Schultz
purchased the Starbucks name and began the expansion of the modern Starbucks chain. Prior to
his transformation of the business, Starbucks sold only whole bean coffee.
Coffeehouses in America have existed since the 1600's, and the coffeehouse concept is more than
400 years old. In the United States, even as recently as the 1970's, coffeehouses have been
primarily independent businesses, typically with an eclectic Bohemian style.
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Dark Roast Java
Cafe Trieste in San Francisco is typical. It was once a gathering place for "Beats" and "Hippies."
Poetry readings were held weekly. It still retains much of its original flavor. Many of these
independent coffeehouses continue to enjoy a loyal following.
Starbucks' success has encouraged others to enter this potentially lucrative business. Today there
are more than 13,000 coffeehouses in the U.S. However, compared with Italy, which has 200,000
espresso bars and coffeehouses, there is still much room for growth. The Specialty Coffee
Retailers Association believes the market has not approached maturity and, as yet, no coffee
chain has differentiated itself significantly from the others.
While overall coffee sales have not grown significantly in recent years, the specialty coffeehouse
segment is growing steadily at a healthy pace every year. The low food cost of coffee drinks,
relatively modest investment capital requirements, and low overhead, lead to high profit margins
in the coffeehouse industry.
There are 108 million coffee drinkers in the United States, according to the National Coffee
Association's report "2000 Coffee Drinking Trends." 77% of coffee drinkers consume coffee
daily. Coffee drinkers spend an average of $164.71 on coffee annually, and drink an average 3.1
cups daily. It's easy to see why coffee is second only to oil as the largest commodity in the world.
Twenty-five years ago, almost nobody consumed espresso or espresso-based drinks in the United
States. Now they account, for more than half of all specialty coffee consumed. Obviously,
America's coffee-drinking habits are changing.
In the past five years the number of "gourmet" coffee drinkers has increased from 7 million to 27
million. In 2001 53% of all adults in the U.S. drank specialty coffee. By 2002 the percentage had
grown to 62%. Year after year, the growth continues at sizeable rates.
Starbucks, once known for quality and customer service, has recently come under attack by
customers and business commentators for becoming too big. Their size (6,300 stores worldwide)
is the reason why Starbucks is now often called the "McDonald's" of coffee chains. If Starbucks'
image becomes one of a "fast food" purveyor of coffee, it leaves the market open for a smaller,
more nimble competitor like Dark Roast Java, where quality and service are paramount.
As the graph below showing Year 2000 per capita coffee consumption illustrates, the United
States is not presently one of the stronger markets for coffee drinking. It's easy to see there is
significant room for growth in consumption. The coffeehouse chains of America are leading this
growth.
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Dark Roast Java
Coffee drinking per capita by country.
Competition and Buying Patterns

"Until everybody can walk to a coffeehouse and get a properly prepared espresso drink,
we're not even approaching market saturation."
-- Mike Ferguson, Marketing & Communications Director

Specialty Coffee Association, Long Beach. 2002.
Leaders in the specialty coffee chain category in the United States include:
Starbucks (6,300 stores). Started the specialty coffee chain phenomena in America in 1982. 99%
are company owned. Revenues exceeded $6 billion in 2002. Average store gross revenue is
$805,000. Now in 30 countries. Same store sales increased by 10% in 2002.
Caribou Coffee (260 stores). Second largest all company-owned chain. Founded in 1992 in
Minneapolis.
Tully's (103 stores). The third largest company-owned chain. Another Seattle-born company. The
only coffeehouse chain that has not experienced excellent growth every year; business.com cites
poor management as as the reason. New management seems to leading a turnaround.
Coffee Bean & Tea Leaf (210 stores). Oldest privately held specialty coffee retailer in the U.S.
(founded 1963). 90% of stores are franchises.
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Dark Roast Java
Peet's (58 stores) One of the few successful IPO's in 2001. 58% of revenues come from sales
of whole coffee beans. Gross profit last year was 49.5%.
Gloria Jean's (291 stores, 195 in U.S.). Only 19 stores are company owned.
Seattle's Best (150 stores). Owned by AFC, which also owns Popeye's Chicken, Church's,
Cinnabon and Torrefazione Italia Coffee (21 stores). Seattle's Best is also distributed at 7,000
locations such as grocery stores and office buildings.
Diedrich Coffee Company Originally founded in 1916 when the owners inherited a coffee
plantation. Headquartered in Southern California. First coffeehouse in 1982. Owns the Gloria
Jean and Coffee People chain. 386 outlets total and 370 wholesale accounts. Although they
serve an excellent product they have operated "below the radar."
Bucks County Coffee A Mid-Atlantic chain of 40 stores founded in 1982. Has a very good
reputation.
PJ's Coffee & Tea (22 stores). This New Orleans-area chain owns four of their stores.
Java Dave's (14 stores). Mostly in the Oklahoma area, 12 are franchises and two are company
owned.
Quikava (68 locations). A unit of the Massachusetts-based Chock Full O'Nuts organization.
Many are kiosks. All but three are franchises.
New World Coffee (33 stores). Mostly concentrated in the New Jersey/New York area. All but
three are franchises. A division of Manhattan Bagel.
Bad Ass Coffee Company (29 stores). Begun in Hawaii, this company has grown rapidly by
offering a Hawaiian-grown coffee and a milder, mellower brew.
It's a Grind (86 stores). Fast-growing chain that began in Long Beach, California seven years
ago. Most locations are franchises. Concentrated in Southern California and Las Vegas.
Company reported $12 million in revenue in 2002. Its stores average more than $500,000 gross
revenue.
Dunkin' Donuts More than 800 outlets serving a surprisingly good coffee. Many people think
it's the best.
Specialty coffee chains in Canada:
Blenz (27 stores).
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Dark Roast Java
Second Cup (401 stores)
Tim Horton's (2,100 stores/150 in U.S.). This store is very close to being a Dunkin' Donuts style
operation where baked goods are the primary products.
Although the specialty coffee industry is successful and expanding rapidly, there is still much
room for growth—especially in niche market segments, according to The Specialty Coffee
Association of America. Market maturity is not expected to be reached until at least 2019.
** Sources: Business.com, Yahoo Business, Dun & Bradstreet, Hoover's Business Data,
Starbucks Corporation, Specialty Coffee Association, National Coffee Association. 2002.
Local Competition
Surprisingly, the leading coffeehouse chain, Starbucks, has only mediocre stores in the
Pleasantville area (eight locations). Its highest volume store (1,150 customers daily) is at an
excellent location on 'A' Street, the main thoroughfare in town, but the store is unattractive, small
and lacks outside seating.
The other high-volume Starbucks is located at the end of a shopping mall in Mount Hill and
averages 952 customers daily. It is not a particularly attractive store, although it does have a
sizeable lounge area and some outside seating.
Other Starbucks locations in the Pleasantville area are even less memorable, with small facilities
and mediocre locations. Photos of some of these locations are shown in the appendix.
Coffee Bean also has an excellent location directly across the street from Starbucks on 'A' Street
in downtown Pleasantville. This busy coffeehouse is very small. A counter inside and a couple of
tables outside are the only areas for customers to sit down. A second Coffee Bean opened in 2002
on the northern end of 'A' Street, about three miles from downtown. Another location in Mount
Hill is scheduled to open in Summer 2004.
Other competitors include three independent coffeehouses. Paradiseo is located on State Street in
a good location. They serve good coffee but have a limited menu and a very "funky" decor. It is a
big hangout for the "Goth" and "punk" crowd. A second Paradiseo is located in Shorewood. New
managers are trying to improve the store but without success so far.
Another independent is Grounds for Action, located in a residential neighborhood but on a busy
street in what was once a gas station. This coffeehouse is also very "collegiate" in its decor, and a
favored haunt of the law school students, but manages to average more than 250 customers per
day. They have a second location in Springfield.
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Dark Roast Java
Ambrosia Kaffe is primarily a student hangout located about three blocks off First Avenue in the
northern end of the business district. Its business is modest. The business has undergone changes
in management during recent years.
Both Barnes & Noble and Borders Books have integrated cafes that serve espresso drinks into
their store plans. Both of these are within two blocks of the Dark Roast Java site.
The Barnes & Noble coffee cafe is very small, located in the rear of the store, and not very busy
despite serving Starbucks coffee.
The Borders Books cafe is larger, about 1,000 square feet, and does a good business. They are in
a good location, adjacent to the same major parking garage as Dark Roast Java and they also
draw from book shoppers and drop-ins from 'A' Street. The quality of their coffee and pastries
does not compare with ours, and the service can often be quite slow.
The Pleasantville Roastery is a bean roaster and coffeehouse with brick walls and a "San
Francisco" style. The coffee is roasted on site. They do much of their business by mail order.
They suffer from a very poor location in a difficult to find (or even see) shopping mall off
lower 'C' Street. A second, small outlet opened in 2003 in Lucre Galerie. Despite their poor
location, this is probably the most formidable competitor in town. They make a quality cup of
coffee and have a loyal following.
Competition
Competition is dominated by the presence of Starbucks, fast becoming the "McDonalds" of the
specialty coffee industry. Other major chains are Caribou Coffee, Peet's Coffee & Tea, Coffee
Bean & Tea Leaf, Seattle's Best, Gloria Jeans and Diedrich Coffee. All of these chains are
considered "clones" of Starbucks. Few vary much from what is perceived as a proven formula
for success.
Buying Patterns
FACT: The coffeehouse business has grown every year since 1982.
FACT: Not a single coffeehouse chain has failed during the past 20 years.
Despite major economic recessions, terrorist attacks and two wars over the past two decades, the
specialty coffee industry has grown every year. One industry observer said, "When times are
good the coffeehouse industry is great. And when times are bad the coffeehouse industry is
great." America's love for good coffee is stronger than ever and increasing in size faster than any
other industry.
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Dark Roast Java
Lifestyle factors converge to make the coffee industry strong at all times. The stimulant effect of
coffee is an important reason why many hard-working, fast-paced Americans consider a stop at
their local coffeehouse a necessary part of their day. Conversely, coffeehouses provide a calm,
inviting environment for people to socialize, relax or catch up on work.
Young people under the legal drinking age are one of the fastest-growing segments of the coffee
drinking market. Coffeehouses provide them with a much-needed place to meet with their
friends.
Entertainment on weekend nights draws a young group of enthusiastic customers. The surge in
interest in coffee drinking among young people assures a diverse, receptive, sophisticated
customer base now and in the future.
Older adults also enjoy the fact that for the relatively modest price of a cup of coffee and snack,
they can meet with their friends, relax or work. Instead of going to a bar and paying for an
alcoholic drink or a restaurant where a meal usually comes with a hefty price tag, the
coffeehouse is an intimate yet inexpensive venue.
Quality is deteriorating even as the industry is growing.
Coffeehouses need to produce a quality product to back up the perceived "little luxury" image.
Currently, most of the largest chains are bowing to the pressures of growth and are cutting
corners on quality by introducing fully automatic espresso machines, mass bean buying and other
efficiency measures.
Coffee drinking is now an all-day activity.
Once concentrated in the early morning hours or mid-afternoon, in recent years coffee drinking
has become an all-day activity. Even late at night, many coffeehouses are packed with patrons.
It's not unusual for a well located coffeehouse to exceed a daily average of 900 customers.
Customer guest check averages are rising.
As pastries, chocolates, tea, pre-packaged sandwiches, snacks, juice drinks and gift items are
added to the menu, the average customer expenditure has risen. Many popular coffeehouses
report averages in the $4 - $6 range. Dark Roast Java expects that guest checks will average
about $4.50.
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Strategy and Implementation Summary

The Dark Roast Java coffeehouse uses a strategy of total quality—in product and service. Our
promise is in our location, the products we sell, the people we attract and the atmosphere we
create.
Strategic Assumptions:
 People want a better-tasting coffee drink

 Coffee drinkers want a more inviting coffeehouse environment
 Coffee drinks are considered an affordable luxury
 The coffeehouse industry is largely unaffected by the economy and world events
 Dark Roast Java offers several unique advantages over all other coffeehouses
Competitive Edge
Our competitive edge, compared to the other coffeehouses in the greater Pleasantville area
includes the following:
 A significantly higher quality, better tasting coffee product.
 Our current location can arguably be considered the best in the market—in the heart of
the downtown shopping, dining, entertainment and cultural district in Pleasantville and
adjacent to the historic Egyptian Theatre.
 An ambiance superior to all other coffeehouses in the area with upscale "Cote d'Azur"
look. It features stained glass decorations, art glasswork, Mediterranean Riviera style
furnishings and outdoor dining.
 The only coffeehouse downtown to provide regular weekend evening entertainment.
 A wider variety of popular drinks than our competitors, including flavored coffee drinks,
tea, chai, cocoa, juice and Italian sodas. We have several drink options for people who
don't drink coffee: tea, cocoa, juice and smoothies.
 Our Internet website will include sales of whole coffee beans, tea, chocolates, gift items
and gift baskets.
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Dark Roast Java
Marketing Strategy
Other coffeehouses rely almost entirely on word-of-mouth marketing to generate business. We
will engage in an ongoing aggressive marketing program that will help us establish profitability
quickly and set the stage for continual growth.
Our strategy will be to position Dark Roast Java as the "Lexus" of coffeehouses, offering a high
quality product and superb service in a superior environment.
Launch Marketing
Most coffeehouse chains do little or no marketing and advertising. For example, Starbucks'
philosophy is that their ubiquity in the marketplace is all they need to sustain and grow their
customer base. They spend less than 1% of gross revenues on advertising, and when they do
spend, it is usually to introduce a new product.
The retail coffee industry is a sales-oriented business with historically very little experience in
marketing and advertising. This is likely why little is done. As yet, the major players have not
been taken over by sophisticated companies like Pepsico, where marketing is viewed as essential
to gaining market share.
An element of our differentiation from other coffeehouse chains will be our use of advertising
and marketing to gain awareness, build customer traffic and establish a strong brand image. We
intend to create immediate customer awareness and not wait for word-of-mouth. We are also
building customer traffic immediately with an aggressive Launch Marketing Plan.
Launch marketing will promote awareness, build immediate traffic and establish our brand image
via several methods:
 Public relations/publicity
 Direct mail
 Local print and broadcast media
 Design and packaging
 Community involvement
 Sampling
 Superior location
 Desirable store ambiance
Public Relations
A strong public relations/publicity program uses as its primary "hook" these three main points:
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Dark Roast Java
1. Dark Roast Java is Pleasantville's first true gourmet coffeehouse

2. Our unique quality products
3. Our distinctive latte "art"
The goal of the PR/publicity is to achieve local market awareness and establish the brand on a
wider scale to set the stage for future expansion. Local market awareness is vital because more
than 50% of sales will come from people living within a 5-mile radius of the store.
National awareness will help drive the expansion by generating opportunities created by the
media buzz and familiarizing people with our brand name. It will help set the stage for future
brand identification.
Local Media
 The Pleasantville Gazette

 Pleasantville Magazine
 The Mount Hill Journal
 The Pleasantville Weekly
 Mount Hill Magazine
 Pleasantville Dining
 Pleasantville Seasons
 ABC-TV (KTBO)
 KATF radio
 KEZI radio
 KWAS radio
 KSNZ radio
 KOBR radio
 KPML radio
 KKMN radiO
 KJBU radio
 KSEC radio
 KION radio
Regional/National Print Media
 BusinessWeek
 The Ontopolis Business Journal
 Time
 Newsweek
 US News
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Dark Roast Java
 Entrepreneur
 Wall Street Journal
 Fortune
 Forbes
 Robb Report
 Newspapers in top 50 US markets
National Broadcast Media
 Feature programming (e.g. Oprah, Good Morning America)

 1,500 radio stations nationwide
Direct Mail
 Ongoing direct mail generated from our website data

 Visa or MasterCard local direct mail program
Website
Our website is fully e-commerce functional and could easily become a significant revenue
source.
We will eventually sell the following items online:
 Whole coffee beans, tea

 Gift baskets
 Gift items
 Furnishings
And in a first for any coffeehouse in the world, we will also sell a catalog of glass
artwork representative of our store decor. We will act as the sales agent for a number of
participating stained glass, and art glass artisans.
The website also markets Dark Roast Java with:
 A monthly newsletter
 Interesting information about the coffee industry
 A map to our store
 Store hours
 Special events
 Coffee recipes
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Dark Roast Java
Most of these functions are already up and running.
Trend-setters
Pleasantville and the southern part of the state are home to thousands of individuals who can be
important to the successful positioning of Dark Roast Java. One mention on a TV talk program
or in a 'lifestyle' magazine can (and has) launched many successful careers and businesses.
With literally hundreds of celebrities and wealthy business people as local residents, the word-of-
mouth recommendations from these people can drive significant business to us as well as
generate favorable publicity.
Many celebrities visit Pleasantville or have second homes here. The wife of the billionaire owner
of Nationwide Communications owns the Pleasantville newspaper. A former actor owns a local
vineyard and is a major hotel developer. Politicians and entertainers have interests in several
restaurants. Our Mount Hill location will be in a building owned by a clothing brand multi-
millionaire.
Celebrities in Pleasantville are also actively involved in the community, many supporting several
local charities. Our involvement in the community will enable us to garner exposure for Dark
Roast Java among an important group of local residents.
Key individuals will be targeted with gift baskets from Dark Roast Java containing samples of
our products to entice them to visit Dark Roast Java and talk about us with their friends.
Design style
The interior design of Dark Roast Java is unlike any other coffeehouse chain. While there are
some upscale designs, they are all of the modern Italian or Starbucks look. Our upscale
stylized "Cote d'Azur" Mediterranean Riviera design, featuring stained glass decorations, art
glasswork, differentiates us from all others.
Gift Items
We carry a wide variety of quality gift items, including gift baskets. Gift basket business could
eventually grow to be substantial. However, since it is difficult to project at this time we have not
included it in the financial computations. We also offer sales of stained glass and glass artwork
by the artisans who produced our decor furnishings.
Community Involvement
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Dark Roast Java
We will make ourselves an integral part of the local and world community. This will generate
goodwill, create opportunities to forge important contacts with key people and live up to our
company Mission Statement.
Some of these community involvement goals include:
 Take an active role in the Chamber of Commerce

 Supply complementary product to local charities for fund-raising activities
 Sponsor local sports teams
 Create and sponsor a Pleasantville to La Pine cross-mountain foot race following the
old Stone Canyon stage route
 Purchase fair trade coffee whenever possible
 Support Fair Trade, organic, sustainable farming
Location
The location of the first Dark Roast Java in Pleasantville is a prototype of future sites. Our
second site on busy Shoreline Road in Mount Hill will feature our flagship store. It will
be located just off the Oak Patch Road and Highway 66 exit, across from the Mount Hill Inn and
The Junction Restaurant. It is by far the best location in Mount Hill—one of America's most
affluent cities.
We will build Dark Roast Java coffeehouses in the best locations possible, as this is the key
element in a successful operation.
Site selection criteria include:
 High traffic location

 Small or mid-size affluent market
 Year-round tourist activity
 Nearby (within 5 miles) student population
 Outside dining
Other sites that meet these criteria include Newburg, Springfield, Bayview, Shorewood, Orchard
Valley, Beachey Head, and Capital City.
Exceptions will be made for some sites if they are deemed to be potentially very profitable.
Sites in other states might include Utah, New Mexico, Oregon, Washington, Montana, Idaho,
Colorado, etc. Plans are to locate Dark Roast Java coffeehouses in the Western states for
efficiency of supply and management.
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Dark Roast Java
Outside Dining
The coffeehouse/cafe experience is indelibly linked to its European origins, where al fresco
dining is a way of life. Americans have embraced sidewalk dining. It is one of the fastest
growing additions to the American dining scene.
Sidewalk dining also provides an excellent way for prospective customers to see and "check out"
the coffeehouse for the first time.
Sampling
We will engage in several sampling activities to introduce potential customers (and current
customers) to Dark Roast Java's range of drink options.
 Samples will be distributed at the coffeehouse

 Samples will be given to passers-by on the street
 Discount coupons will be distributed on the street, via direct mail and at special events
 Complementary coffee will be served at charitable and civic events
 Free coffee service will be provided to the Chamber of Commerce, a radio station, the
newspaper and at select government offices (e.g. the Planning and Zoning Department)
Portable Kiosk
Within 6 to 8 months we will create a portable Dark Roast Java kiosk to sell and market our
products at special events and community activities. Pleasantville has more than 130 such events
every year. It will be an excellent way to publicize Dark Roast Java coffee.
The kiosk will be highly visible and fun. It will also potentially be very profitable, although it's
hard to determine how profitable with any accuracy until the local response is measured. We
believe it could generate $75,000 - $100,000 annual revenue.
Pre-paid, re-loadable, frequency and discount cards
We will promote our program of gift cards and customer frequency cards to drive business and
stimulate cash flow. Industry records indicate that 25% - 40% of all gift card amounts go unused.
Also, gift cards have proven to be a popular holiday item accounting for more than 5% of total
sales during December.
Pre-paid and re-loadable cards have also proven to be very popular with the major chain
coffeehouses, again accounting for a significant percentage of sales. These cards promote
customer loyalty as well.
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Dark Roast Java
Frequency cards rewarding the repeat customer with a free drink after a specified number of
visits are popular and proven methods to forge customer loyalty.
Discount cards are used to build goodwill among specific groups such as the Chamber of
Commerce members and college students.
By tying in with our computerized sales and inventory system we will be able to track usage and
allocate the expense to marketing.
The Future
The number of Dark Roast Java locations could easily reach 20 - 25 within five years. While the
financials in this Business Plan only address the Pleasantville location, we can extrapolate from
the store's performance (which will be carefully monitored and tracked) to get a general idea of
the chain's projected profitability.
With ten coffeehouses the gross revenues, when fully realized, would be more than $10 million
using the third year performance figures. Even factoring in the cost of additional staff and other
resources, a 10-store chain would likely generate a minimum of $1 million in profits annually,
while building significant valuation. A 25-store chain would easily top $2.5 million in annual
profits.
Dark Roast Java's start-up, implementation and operation in Pleasantville will be the "blueprint"
for future efficient expansion. Our new Mount Hill location will incorporate the knowledge we
gain with our first store as well as new creative ideas, and become our "flagship" operation.
** Sources: SRDS, Interep Radio, Scarborough Market Data Survey.
Sales Strategy
Our sales strategy includes:
 Staff salaries that are 10% above the industry average in order to attract the best people
 Hiring for attitude so that we always have a friendly, enthusiastic staff to make customers
feel welcome and appreciated; constant staff training to assure the best quality possible
 State-of-the-art sales/inventory system to (A) reduce customer waiting time, and (B)
create efficient product ordering
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Dark Roast Java
 Create a mobile kiosk to take Dark Roast Java into the community at special events,
farmer's markets, art shows, etc.
 Sell coffee, gift baskets and glass artwork on our website
 Establish coffee service at local businesses
 Sell gift cards, frequency cards, pre-paid cards, and offer discounts to key groups
 Create an ongoing sampling program
 Conduct a consistent, aggressive marketing program
 Be an active member of the community; be visible at charitable functions
 Solicit customer feedback to constantly improve and streamline our operation
Key Strategy: an advanced and expandable point-of-sales system
After carefully tracking the performance of the Pleasantville store through an expandable and
highly detailed point-of-sale system, we will use this as a "blueprint" for expansion. For
example, daily sales are tracked and analyzed by item, time period and cost of goods. Labor
requirements are matched to projected in-store sales based upon past performance for maximum
efficiency. Even after paying higher than average wages we expect to allocate no more than 25%
to labor costs.
Sales are linked to inventory to both streamline the efficiency of ordering and reduce "shrinkage"
by instantly alerting us to unusual shortages compared with revenues.
Scheduling can be done online and easily revised to accommodate changes—all while projecting
weekly, monthly, quarterly or annual labor costs. Schedules can be sent via email to staff
members.
Cost of goods can be monitored for increased efficiency too. As we continually research methods
of delivering a high quality but cost-efficient product, and by making small incremental
improvements in the costs of items we expect to increase overall COG by a minimum of 5%
during the first year of operation.
As expansion occurs, the POS system can be adapted to each individual location and allow the
central office to monitor the stores remotely as well as the overall combined operation. Close
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Dark Roast Java
monitoring will allow us to achieve a high level of communication between stores as well as spot
problems immediately and take corrective action.
Sales Forecast
Conservatively, we are forecasting an average of 300 customers per day during the first year with
an average guest check expenditure for all items of $4.10. This figure was arrived at by
surveying the customer traffic at the nearest competing coffeehouses which have a range of 150 -
500 customers per day and an average customer expenditure of $4.10. We have estimated our
customer expenditure to be slightly higher (2.5%) due to the premium price we will charge for
some of our items. Total cost of sales is approximately 25%.
We expect growth to occur across all categories at about 10% annually as the business becomes
more established and well-known, reaching 400+ customers per day within a year and more than
500+ within three years. These estimates are likely conservative. However, it is possible we
could attain a 1,000-per-day customer count within three years.
Chart: Sales Monthly
Do you need better-looking financial charts and tables? Tools like LivePlan will do
this for you automatically, with a professional modern design.
34
Dark Roast Java
Table: Sales Forecast
Sales Forecast
Year 1 Year 2 Year 3
Sales
Coffee drinks $265,101 $344,631 $448,021
Tea, soft drinks, water, juice $167,007 $217,109 $282,241
Pastries, food items $154,126 $200,364 $260,473
Coffee beans $2,105 $2,526 $3,031
Events/mobile kiosk $0 $0 $0
Coffee service to businesses $3,300 $3,630 $3,993
Internet sales $8,500 $10,625 $13,281
Gift items $6,440 $7,728 $9,274
Total Sales $606,579 $786,613 $1,020,314
Direct Cost of Sales Year 1 Year 2 Year 3

Coffee drinks $43,828 $44,266 $44,709
Tea, soft drinks, water, juice $26,054 $26,315 $26,578
Pastries, food items $55,241 $55,793 $56,351
Coffee beans $1,280 $1,293 $1,306
Events, mobile kiosk $0 $0 $0
coffee service to businesses $760 $768 $775
Internet sales $3,925 $3,964 $4,004
Gift items $10,109 $10,210 $10,312
Subtotal Direct Cost of Sales $141,197 $142,609 $144,035
Milestones
The accompanying table lists important program milestones, with dates and managers in charge,
and budgets for each. The milestone schedule indicates our emphasis on planning for
implementation. A similar milestone development program will be developed for our Mount
Hill location to insure its timely execution. What the table doesn't show is the commitment
behind it. Our business plan includes complete provisions for plan-vs-actual analysis, and we
will hold follow-up meetings every month to discuss the variance and course corrections.
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Dark Roast Java
Table: Milestones
Milestones
Milestone Start Date End Date Budget Manager Department

Business/Marketing
2/1/2003 4/30/2003 $500 N. P-S Marketing
Plan
Secure Funding 2/1/2003 4/30/2003 $500 N. P-S Marketing
Secure lease 2/10/2003 4/30/2003 TBD N. P-S Admin
Secure name licensing 2/10/2003 4/30/2003 TBD N. P-S Marketing
Marketing plan 2/10/2003 4/30/2003 $0 N. P-S Marketing
Structure company
2/15/2003 4/30/2003 $0 N. P-S Marketing
type
Develop investor
2/15/2003 4/30/2003 $0 N. P-S Marketing
program
Attend Coffee Fest 2/27/2003 3/1/2003 $500 N. P-S/V. L Marketing
Health Dept. 3/1/2003 5/15/2003 TBD N. P-S/V. L Admin
Select and order
5/1/2003 6/15/2003 TBD N. P-S/V. L Admin
furnishings
Site plans 3/1/2003 4/30/2003 TBD N. P-S Admin
Select construction
3/15/2003 4/15/2003 $150 N. P-S Admin
contractor
Join Spec. Coffee
3/15/2003 5/30/2003 $250 N. P-S/V. L Marketing
Retailers
Select and order
4/1/2003 5/30/2003 TBD N. P-S/V. L Marketing
lighting
Create employee
4/1/2003 5/30/2003 $0 N. P-S Personnel
manual
Alliance with water
4/1/2003 5/30/2003 $0 N. P-S Admin
company
Join Chamber of
4/1/2003 5/30/2003 $250 N. P-S/V. L Admin
Commerce
Select cash register
4/15/2003 5/30/2003 $0 N. P-S Admin
system
Business license, etc. 4/15/2003 5/30/2003 $300 N. P-S/V. L Admin
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Dark Roast Java
Select paint contractor 4/15/2003 5/30/2003 $0 V. L Admin

Choose paint palette 4/15/2003 5/30/2003 $0 N. P-S/V. L Admin
Select and order
4/15/2003 5/30/2003 TBD N. P-S/V. L Marketing
flooring
Gift items, suppliers,
4/15/2003 5/15/2003 TBD V. L Marketing
order
Select pastry supplier 4/15/2003 5/30/2003 $0 V. L Admin
Select equipment
4/15/2003 5/15/2003 $0 N. P-S Admin
supplier
Graphics/brochure
4/15/2003 5/30/2003 $0 N. P-S Marketing
design
Select confection
4/15/2003 5/30/2003 $0 N. P-S/V. L Admin
suppliers
Select juice suppliers 4/15/2003 5/30/2003 $0 N. P-S Admin
Credit card companies 4/30/2003 6/15/2003 $0 N. P-S Admin
Create training
4/30/2003 6/15/2003 $0 V. L Personnel
program
Select music system 5/1/2003 6/15/2003 $2,500 N. P-S/V. L Admin
Install wireless
5/1/2003 6/15/2003 TBD N. P-S/V. L Admin
Internet
Hire manager, baristas 7/1/2003 9/15/2003 TBD N. P-S/V. L Personnel
Select business
7/1/2003 7/20/2003 TBD N. P-S Admin
insurance
Design, print stationery 7/15/2003 7/31/2003 $1,000 N. P-S Admin
Pre-opening parties 9/1/2003 9/15/2003 $1,000 V. L Marketing
GRAND OPENING 9/15/2003 9/30/2003 $1,000 N. P-S/V. L Admin/Marketing
Acheive 700+ daily
12/12/2003 1/31/2004 $0 N. P-S/V. L Admin/Marketing
customers
Totals $7,950
Web Plan Summary

We plan to expand the functionality of our website so that it becomes a substantial revenue
stream for Dark Roast Java.
Although we've projected modest sales because of the difficulty in predicting online sales
activity, we believe the potential exists for Internet sales to become a substantial percentage of
our revenue.
We will sell a number of items at our website, including:
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Dark Roast Java
 Whole beans
 Tea
 Cocoa mixes
 Chocolates
 Gift baskets
 Gift items
 Art glass
We will sell a variety of high design stained glass, glass artwork and accessories featured in our
coffeehouses by establishing ourselves as an agent for the artist/manufacturers. We will process
the order and the artist will fulfill it. In this way we provide exposure and additional sales
activity for the artists, and Dark Roast Java creates an additional revenue stream that could
become substantial over time.
Special downloadable offers good at the retail stores will be posted from time to time on the
website.
Eventually, customers will be able to reload their Dark Roast Java Card online so they can use it
in lieu of cash or credit when they make purchases.
The website will also function as an online "brochure" for both the Dark Roast Java quality story
as well as enable visitors to "see" our retail store, get directions and maps, see our menu and find
out about special events.
Website Marketing Strategy

All communications materials will include the Dark Roast Java website address. For the media,
an online press kit will be available which will include downloadable photos, PR releases, stories
of interest, testimonials, bios of key management and reproduceable logos.
Special PR will promote our gift basket business and the sale of our upscale design glass
artworks.
We will host online "events" for our customers. For example, a visiting author may go online to
chat with visitors to our website. Or we may support a charities’ fund-raising activities. This will
provide us with opportunities for media coverage.
Eventually, when more stores are opened, the website will function as a means of internal
communication through a password-protected area. Here, company rules, health department
regulations, news, chat, "live" internal announcements and virtual meetings will take place.
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Dark Roast Java
In-store Internet computing
An appealing customer feature at Dark Roast Java will be two Internet access stations with 17"
monitors. These will enable people to access the Internet while at the store. The price for this
access hasn't been set yet but will be approximately $15 an hour with some fractional division
rate structure at 15-minute intervals (perhaps $5 for every quarter hour). The Dark Roast Java
website home page will be the always-on start page for the monitors.
The Internet stations enable customers to check their email or access websites for business, study
or travel information.
Internet access is provided more as a customer service than a revenue source. Although it will
return a profit, the amount is difficult to determine now and so it hasn't been factored into the
P&L.
Our best estimate is that the two stations will be on for a total of four hours daily, producing
$1,800 a month in gross revenue ($21,600 annually minus approximately $1,000 for the basic fee
plus the percentage of sales).
Development Requirements
Dark Roast Java plans to employ a graphic designer and back-end user interface technical
developer to create our simple, classy, yet Internet focused site.
The maintenance of the site will be done by contracted outside consultants. As the website is
expanded and improved, future development may include items such as tracking, newsletters,
down-loadable menus, a coffee "chat" room and user Web pages. A technical resource may need
to be contracted to build the trackable download and the newsletter capabilities.
Management Summary
The expansion of the Dark Roast Java concept will be managed by Ned Powers-Sebastiane
and Victor Lubitsch, with assistance from our outside support team.
Ned Powers-Sebastiane
Ned has more than 35 years experience in marketing/sales with special expertise in the retail
sector.
 President of Powers-Sebastiane Advertising & Public Relations. Founded 1982.
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Dark Roast Java
 Owner/founder of Pan National Motor Tours.

 Sr. VP/Chief Creative Officer at ******.
 President/General Manager of ******.
 VP/Director of Marketing & Advertising at ******.
 VP/Chief Marketing Officer at ******.
 VP/Creative Director and Team Leader at ******.
Ned Powers-Sebastiane will be responsible for the site development, construction supervision,
equipment ordering, marketing/PR, website design/development and government issues. Ned is a
graduate of the Specialty Coffee Association's training program for coffeehouse operation and
management.
Victor Lubitsch
Victor has more than 25 years experience in business and selling. He has been a motivational
speaker and image consultant as well.
 President/CEO of the Pleasantville Chamber of Commerce, 2000 - 2003.

 Founder/Owner of Specialty Agency, 1980 - 1991.
 State Business Man of the Year.
 Owner/founder of Brilliant! Idea company.
 Director of Placement, Local Business College.
 Top recruiter at ****** Company.
 Top recruiter at ******.
Victor will be responsible for staffing, menu development, training, product ordering, interior
design and accounting supervision. Victor is a graduate of the SCAA coffeehouse management
program and recently attended several training seminars at Coffee Fest 2003.
Personnel Plan
The personnel plan is included in the following table.
It shows the owners' salaries, a full-time manager's annual salary, eight part-time salaries for
espresso servers and a part-time bookkeeper and/or website supervisor.
Table: Personnel
Personnel Plan
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Dark Roast Java
Ned Powers-Sebastiane $39,000 $80,000 $80,000

Victor Lubitsch $39,000 $80,000 $80,000
Manager $34,000 $35,000 $35,000
Manager $0 $30,000 $30,000
Barista #1 $9,600 $9,600 $9,600
Barista #2 $9,600 $9,600 $9,600
Barista #3 $9,600 $9,600 $9,600
Barista #4 $9,600 $9,600 $9,600
Barista #5 $9,600 $9,600 $9,600
Barista #6 $9,600 $9,600 $9,600
Barista #7 $2,800 $7,200 $9,600
Barista #8 $3,000 $7,200 $7,200
Bookkeeper $8,000 $15,000 $15,000
Website Supervisor $0 $25,000 $25,000
Total People 10 11 12
Total Payroll $183,400 $337,000 $339,400
automatically.
Financial Plan
Sales growth will be a minimum of 15% annually, margins excellent, profits at approximately
20% - 25%, cash flow adequate.
Marketing will remain below 5% of sales.
The company will invest residual profits into financial markets or real estate.
 Future cash investments will use NPV projections to achieve maximum return with
limited risk.
Important Assumptions
 The 20-year record of positive growth for specialty coffee drinking will continue at a
healthy rate. The Specialty Coffee Association says that the market is far from saturation
and will not reach maturity until at least 2019.
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Dark Roast Java
 The resilience of the coffeehouse industry to negative national and world events will
continue. Despite recession and war the coffeehouse industry has shown strong growth
every year for the past two decades.
 The quality of national chains will remain the same or decline slightly rather than
improve as they standardize their stores, increase automation of espresso drinks
and mass-produce the roasting process.
 Coffee drinks will continue to be considered an "affordable luxury."
 15% minimum sales growth rate over the next three years as Dark Roast Java becomes
well known.
Table: General Assumptions
General Assumptions
Plan Month 1 2 3
Current Interest Rate 3.00% 3.00% 3.00%
Long-term Interest Rate 3.00% 3.00% 3.00%
Tax Rate 20.00% 20.00% 20.00%
Other 0 0 0
Projected Cash Flow

We are positioning ourselves in the market as a low to medium risk concern with relatively
steady cash flows. Accounts payable is paid at the end of each month, while sales are in cash,
giving Dark Roast Java an excellent cash structure. Fifty percent of cash above $20,000 will be
invested into semi-liquid stock portfolios to decrease the opportunity cost of cash held.
Our initial investor contributions are designed to provide us with a strong cash position at all
times.
Chart: Cash
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Dark Roast Java
Table: Cash Flow
Pro Forma Cash Flow

Cash Received
Cash from Operations

Cash Sales $606,579 $786,613 $1,020,314
Subtotal Cash from Operations $606,579 $786,613 $1,020,314
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Additional Cash Received

Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
Subtotal Cash Received $606,579 $786,613 $1,020,314
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations

Cash Spending $183,400 $337,000 $339,400
Bill Payments $275,940 $356,361 $406,229
Subtotal Spent on Operations $459,340 $693,361 $745,629
Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $17,600 $26,400 $26,400
Subtotal Cash Spent $476,940 $719,761 $772,029
Net Cash Flow $129,639 $66,852 $248,285

Cash Balance $131,139 $197,991 $446,276
Break-even Analysis
A break-even analysis table has been completed on the basis of average costs/prices. With fixed
costs of $26,400 and $4.50 an average sale, we need approximately $35,000 per month to break-
even.
Chart: Break-even Analysis
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Dark Roast Java
Table: Break-even Analysis
Break-even Analysis
Monthly Revenue Break-even $34,422
Assumptions:
Average Percent Variable Cost 23%
Estimated Monthly Fixed Cost $26,409
Projected Profit and Loss

We project high net profits starting in the first year. Our growth rate is based upon industry
averages, factoring in the local conditions. We expect growth of 15% annually for the first three
years before leveling off at the 800 - 900 customer per day average traffic rate.
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First fiscal year gross revenues are expected to exceed $600,000 and after-tax net profits of
approximately $99,000—increasing to more than $260,000 by the third fiscal year-end.
Our margins are very good.This is due in large part to the low direct cost of sales as well as the
low operating costs in general for coffeehouses.
Higher staff salaries, owner/operator salaries, marketing costs and rent for a premium location
depress profits but, conversely, they also ultimately contribute to higher earnings and profits.
Table: Profit and Loss
Pro Forma Profit and Loss

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Dark Roast Java
Sales $606,579 $786,613 $1,020,314

Direct Cost of Sales $141,197 $142,609 $144,035
Other Costs of Goods $24,000 $28,000 $32,000
Total Cost of Sales $165,197 $170,609 $176,035
Gross Margin $441,382 $616,004 $844,279

Gross Margin % 72.77% 78.31% 82.75%
Expenses
Payroll $183,400 $337,000 $339,400
Sales and Marketing $12,500 $8,000 $8,000
Depreciation $6,000 $4,000 $4,000
Rent $45,900 $55,000 $60,000
Utilities $9,200 $14,000 $16,000
Insurance $2,400 $2,400 $2,500
Legal/accounting $6,000 $6,000 $6,000
Payroll Taxes $27,510 $50,550 $50,910
Mobile Kiosk $0 $0 $0
Misc - maintenance, cleaning, training,
$24,000 $25,000 $25,000
fees
Total Operating Expenses $316,910 $501,950 $511,810
Profit Before Interest and Taxes $124,472 $114,054 $332,469

EBITDA $130,472 $118,054 $336,469
Interest Expense $0 $0 $0
Taxes Incurred $24,894 $22,811 $66,494
Net Profit $99,577 $91,243 $265,975

Net Profit/Sales 16.42% 11.60% 26.07%
automatically.
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Chart: Profit Monthly
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Chart: Profit Yearly
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Chart: Gross Margin Monthly
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Chart: Gross Margin Yearly
Projected Balance Sheet

All of our tables will be updated monthly to reflect past performance and future assumptions.
Future assumptions will not be based on past performance but rather on economic cycle activity,
regional industry strength, and future cash flow possibilities. We expect solid growth in net
worth beyond the year 2003.
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Table: Balance Sheet
Pro Forma Balance Sheet

Assets
Current Assets
Cash $131,139 $197,991 $446,276
Inventory $16,591 $14,264 $14,407
Other Current Assets $15,000 $15,000 $15,000
Total Current Assets $162,730 $227,256 $475,683
Long-term Assets
Long-term Assets $62,000 $62,000 $62,000
Accumulated Depreciation $6,000 $10,000 $14,000
Total Long-term Assets $56,000 $52,000 $48,000
Total Assets $218,730 $279,256 $523,683
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Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $33,253 $28,935 $33,788
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $33,253 $28,935 $33,788
Long-term Liabilities $0 $0 $0
Total Liabilities $33,253 $28,935 $33,788
Paid-in Capital $250,500 $250,500 $250,500

Retained Earnings ($164,600) ($91,423) ($26,579)
Earnings $99,577 $91,243 $265,975
Total Capital $185,477 $250,321 $489,896
Total Liabilities and Capital $218,730 $279,256 $523,683
Net Worth $185,477 $250,321 $489,896
automatically.
Business Ratios
We expect our net profit margin, gross margin, and Return on Assets to increase steadily over the
three-year period. Return on Equity will decrease due to lower equity needs and higher cash
inflow. Net working capital generated by the business will increase steadily each year, proving
that we have the cash flows to remain a going concern independent of outside capital infusion.
While our ratios are not all in sync with those of the industry, due to the unique nature of our
business, it's important to point out that in key areas the numbers are excellent. The only industry
ratio category currently available, SIC Code 5812.0304, includes cafes, restaurants and other
businesses serving coffee. These businesses are significantly different from the Dark Roast Java
coffeehouse concept.
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Table: Ratios
Ratio Analysis
Industry
Profile
Sales Growth n.a. 29.68% 29.71% 5.24%
Percent of Total Assets

Inventory 7.59% 5.11% 2.75% 4.34%
Other Current Assets 6.86% 5.37% 2.86% 35.11%
Total Current Assets 74.40% 81.38% 90.83% 43.74%
Long-term Assets 25.60% 18.62% 9.17% 56.26%
Total Assets 100.00% 100.00% 100.00% 100.00%
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Current Liabilities 15.20% 10.36% 6.45% 18.93%

Long-term Liabilities 0.00% 0.00% 0.00% 25.48%
Total Liabilities 15.20% 10.36% 6.45% 44.41%
Net Worth 84.80% 89.64% 93.55% 55.59%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 72.77% 78.31% 82.75% 61.91%
Selling, General & Administrative
56.32% 66.62% 56.54% 39.08%
Expenses
Advertising Expenses 0.00% 0.00% 0.00% 2.55%
Profit Before Interest and Taxes 20.52% 14.50% 32.58% 1.38%
Main Ratios
Current 4.89 7.85 14.08 1.14
Quick 4.39 7.36 13.65 0.79
Total Debt to Total Assets 15.20% 10.36% 6.45% 49.97%
Pre-tax Return on Net Worth 67.11% 45.56% 67.87% 3.97%
Pre-tax Return on Assets 56.91% 40.84% 63.49% 7.93%
Additional Ratios Year 1 Year 2 Year 3

Net Profit Margin 16.42% 11.60% 26.07% n.a
Return on Equity 53.69% 36.45% 54.29% n.a
Activity Ratios
Inventory Turnover 10.10 9.24 10.05 n.a
Accounts Payable Turnover 9.30 12.17 12.17 n.a
Payment Days 27 32 28 n.a
Total Asset Turnover 2.77 2.82 1.95 n.a
Debt Ratios
Debt to Net Worth 0.18 0.12 0.07 n.a
Current Liab. to Liab. 1.00 1.00 1.00 n.a
Liquidity Ratios
Net Working Capital $129,477 $198,321 $441,896 n.a
Interest Coverage 0.00 0.00 0.00 n.a
Additional Ratios
Assets to Sales 0.36 0.36 0.51 n.a
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Current Debt/Total Assets 15% 10% 6% n.a

Acid Test 4.39 7.36 13.65 n.a
Sales/Net Worth 3.27 3.14 2.08 n.a
Dividend Payout 0.18 0.29 0.10 n.a
automatically.
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Appendix
Table: Sales Forecast
Sales Forecast
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Sales
Coffee drinks 0% $11,915 $20,086 $14,600 $18,000 $18,500 $18,500 $24,500 $25,500 $27,500 $28,000 $28,500 $29,500
Tea, soft drinks, water,
0% $4,290 $7,778 $10,899 $11,000 $11,340 $13,000 $15,700 $19,500 $19,500 $19,000 $17,000 $18,000
juice
Pastries, food items 0% $4,867 $9,909 $12,600 $12,000 $12,500 $12,750 $13,000 $14,000 $15,500 $15,000 $15,000 $17,000
Coffee beans 0% $50 $25 $50 $80 $100 $100 $100 $300 $300 $300 $300 $400
Events/mobile kiosk 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Coffee service to
0% $0 $0 $500 $0 $100 $100 $300 $300 $500 $500 $500 $500
businesses
Internet sales 0% $0 $0 $0 $0 $0 $0 $500 $1,000 $1,000 $2,000 $2,000 $2,000
Gift items 0% $1,958 $282 $300 $300 $300 $300 $500 $500 $500 $500 $500 $500
Total Sales $23,080 $38,080 $38,949 $41,380 $42,840 $44,750 $54,600 $61,100 $64,800 $65,300 $63,800 $67,900
Direct Cost of Sales Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Coffee drinks $2,980 $5,022 $3,650 $2,700 $2,700 $2,776 $3,450 $3,825 $4,125 $4,200 $3,975 $4,425
Tea, soft drinks, water,
$645 $1,168 $1,635 $1,650 $1,701 $2,950 $2,355 $2,925 $2,925 $2,850 $2,550 $2,700
juice
Pastries, food items $1,500 $3,500 $4,542 $4,132 $4,525 $4,620 $4,916 $5,114 $5,530 $5,217 $5,217 $6,428
Coffee beans $35 $15 $25 $50 $65 $65 $65 $185 $185 $185 $185 $220
Events, mobile kiosk $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
coffee service to
$0 $0 $25 $0 $25 $25 $75 $75 $125 $125 $125 $160
businesses
Internet sales $0 $100 $0 $0 $0 $0 $225 $450 $450 $900 $900 $900
Gift items $800 $1,350 $1,400 $2,500 $1,200 $1,350 $250 $259 $250 $250 $250 $250
Subtotal Direct Cost of
$5,960 $11,155 $11,277 $11,032 $10,216 $11,786 $11,336 $12,833 $13,590 $13,727 $13,202 $15,083
Sales
i
Dark Roast Java
Table: Personnel
Personnel Plan
Ned Powers-Sebastiane 0% $0 $0 $0 $0 $4,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000
Victor Lubitsch 0% $0 $0 $0 $0 $4,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000
Manager 0% $1,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Manager 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Barista #1 0% $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800
Barista #2 0% $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800
Barista #3 0% $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800
Barista #4 0% $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800
Barista #5 0% $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800
Barista #6 0% $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800
Barista #7 0% $0 $0 $0 $0 $0 $400 $400 $400 $400 $400 $400 $400
Barista #8 0% $0 $0 $0 $0 $0 $0 $500 $500 $500 $500 $500 $500
Bookkeeper 0% $1,000 $1,000 $1,000 $1,000 $500 $500 $500 $500 $500 $500 $500 $500
Website Supervisor 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total People 9 9 9 9 9 10 10 10 10 10 10 10
Total Payroll $6,800 $8,800 $8,800 $8,800 $16,300 $18,700 $19,200 $19,200 $19,200 $19,200 $19,200 $19,200
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ii
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understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.
Dark Roast Java
Table: General Assumptions
General
Assumptions
Plan Month 1 2 3 4 5 6 7 8 9 10 11 12
Current Interest
3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%
Rate
Long-term Interest
3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%
Rate
Tax Rate 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00%
Other 0 0 0 0 0 0 0 0 0 0 0 0
iii
Dark Roast Java
Table: Profit and Loss
Pro Forma Profit and

Loss
Sales $23,080 $38,080 $38,949 $41,380 $42,840 $44,750 $54,600 $61,100 $64,800 $65,300 $63,800 $67,900
Direct Cost of Sales $5,960 $11,155 $11,277 $11,032 $10,216 $11,786 $11,336 $12,833 $13,590 $13,727 $13,202 $15,083
Other Costs of Goods $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Total Cost of Sales $7,960 $13,155 $13,277 $13,032 $12,216 $13,786 $13,336 $14,833 $15,590 $15,727 $15,202 $17,083
Gross Margin $15,120 $24,925 $25,672 $28,348 $30,624 $30,964 $41,264 $46,267 $49,210 $49,573 $48,598 $50,817
Gross Margin % 65.51% 65.45% 65.91% 68.51% 71.48% 69.19% 75.58% 75.72% 75.94% 75.92% 76.17% 74.84%
Expenses
Payroll $6,800 $8,800 $8,800 $8,800 $16,300 $18,700 $19,200 $19,200 $19,200 $19,200 $19,200 $19,200
Sales and Marketing $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,500 $1,000 $1,000 $1,000 $1,000
Depreciation $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Rent $3,800 $3,800 $3,800 $3,800 $3,800 $3,800 $3,800 $3,800 $3,800 $3,900 $3,900 $3,900
Utilities $400 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800
Insurance $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200
Legal/accounting $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Payroll Taxes 15% $1,020 $1,320 $1,320 $1,320 $2,445 $2,805 $2,880 $2,880 $2,880 $2,880 $2,880 $2,880
Mobile Kiosk 15% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Misc - maintenance,
cleaning, training, $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
fees
Total Operating
$16,220 $18,920 $18,920 $18,920 $27,545 $30,305 $30,880 $31,380 $30,880 $30,980 $30,980 $30,980
Expenses
Profit Before Interest

($1,100) $6,005 $6,752 $9,428 $3,079 $659 $10,384 $14,887 $18,330 $18,593 $17,618 $19,837
and Taxes
EBITDA ($600) $6,505 $7,252 $9,928 $3,579 $1,159 $10,884 $15,387 $18,830 $19,093 $18,118 $20,337
Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Taxes Incurred ($220) $1,201 $1,350 $1,886 $616 $132 $2,077 $2,977 $3,666 $3,719 $3,524 $3,967
iv
Dark Roast Java
Net Profit ($880) $4,804 $5,402 $7,542 $2,463 $527 $8,307 $11,910 $14,664 $14,874 $14,094 $15,870
Net Profit/Sales -3.81% 12.62% 13.87% 18.23% 5.75% 1.18% 15.21% 19.49% 22.63% 22.78% 22.09% 23.37%
Table: Cash Flow
Pro Forma Cash Flow

Cash Received
Cash from Operations

Cash Sales $23,080 $38,080 $38,949 $41,380 $42,840 $44,750 $54,600 $61,100 $64,800 $65,300 $63,800 $67,900
Subtotal Cash from
$23,080 $38,080 $38,949 $41,380 $42,840 $44,750 $54,600 $61,100 $64,800 $65,300 $63,800 $67,900
Operations
Additional Cash Received

Sales Tax, VAT, HST/GST
0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Received
New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Other Liabilities
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
(interest-free)
New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Other Current
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets
Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Investment Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $23,080 $38,080 $38,949 $41,380 $42,840 $44,750 $54,600 $61,100 $64,800 $65,300 $63,800 $67,900
Expenditures Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Expenditures from
Operations
Cash Spending $6,800 $8,800 $8,800 $8,800 $16,300 $18,700 $19,200 $19,200 $19,200 $19,200 $19,200 $19,200
Bill Payments $357 $10,917 $17,446 $24,378 $24,215 $22,815 $26,728 $26,266 $31,141 $31,256 $30,828 $29,594
Subtotal Spent on
$7,157 $19,717 $26,246 $33,178 $40,515 $41,515 $45,928 $45,466 $50,341 $50,456 $50,028 $48,794
Operations
Additional Cash Spent
v
Dark Roast Java
Sales Tax, VAT, HST/GST

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Paid Out
Principal Repayment of
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Current Borrowing
Other Liabilities Principal
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Repayment
Long-term Liabilities
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Principal Repayment
Purchase Other Current
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets
Purchase Long-term
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets
Dividends $0 $0 $0 $0 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200
Subtotal Cash Spent $7,157 $19,717 $26,246 $33,178 $42,715 $43,715 $48,128 $47,666 $52,541 $52,656 $52,228 $50,994
Net Cash Flow $15,923 $18,363 $12,704 $8,202 $124 $1,035 $6,472 $13,434 $12,259 $12,644 $11,572 $16,906
Cash Balance $17,423 $35,786 $48,490 $56,692 $56,817 $57,852 $64,324 $77,758 $90,016 $102,661 $114,233 $131,139
vi
Dark Roast Java
Table: Balance Sheet
Pro Forma
Balance Sheet
Starting
Assets
Balances
Current Assets
Cash $1,500 $17,423 $35,786 $48,490 $56,692 $56,817 $57,852 $64,324 $77,758 $90,016 $102,661 $114,233 $131,139
Inventory $25,000 $19,040 $12,271 $12,405 $12,135 $11,238 $12,965 $12,470 $14,116 $14,949 $15,100 $14,522 $16,591
Other Current
$15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000
Assets
Total Current
$41,500 $51,463 $63,057 $75,895 $83,827 $83,054 $85,816 $91,793 $106,874 $119,965 $132,761 $143,755 $162,730
Assets
Long-term
Assets
Long-term
$62,000 $62,000 $62,000 $62,000 $62,000 $62,000 $62,000 $62,000 $62,000 $62,000 $62,000 $62,000 $62,000
Assets
Accumulated
$0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $5,000 $5,500 $6,000
Depreciation
Total Long-
$62,000 $61,500 $61,000 $60,500 $60,000 $59,500 $59,000 $58,500 $58,000 $57,500 $57,000 $56,500 $56,000
term Assets
Total Assets $103,500 $112,963 $124,057 $136,395 $143,827 $142,554 $144,816 $150,293 $164,874 $177,465 $189,761 $200,255 $218,730
Liabilities and
Capital
Current
vii
Dark Roast Java
Liabilities
Accounts
$0 $10,343 $16,633 $23,569 $23,459 $21,923 $25,858 $25,228 $30,099 $30,226 $29,847 $28,447 $33,253
Payable
Current
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Borrowing
Other Current
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Subtotal
Current $0 $10,343 $16,633 $23,569 $23,459 $21,923 $25,858 $25,228 $30,099 $30,226 $29,847 $28,447 $33,253
Liabilities
Long-term
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Total
$0 $10,343 $16,633 $23,569 $23,459 $21,923 $25,858 $25,228 $30,099 $30,226 $29,847 $28,447 $33,253
Liabilities
Paid-in Capital $250,500 $250,500 $250,500 $250,500 $250,500 $250,500 $250,500 $250,500 $250,500 $250,500 $250,500 $250,500 $250,500
Retained
($147,000) ($147,000) ($147,000) ($147,000) ($147,000) ($149,200) ($151,400) ($153,600) ($155,800) ($158,000) ($160,200) ($162,400) ($164,600)
Earnings
Earnings $0 ($880) $3,924 $9,326 $16,868 $19,331 $19,858 $28,165 $40,075 $54,739 $69,613 $83,708 $99,577
Total Capital $103,500 $102,620 $107,424 $112,826 $120,368 $120,631 $118,958 $125,065 $134,775 $147,239 $159,913 $171,808 $185,477
Total
Liabilities and $103,500 $112,963 $124,057 $136,395 $143,827 $142,554 $144,816 $150,293 $164,874 $177,465 $189,761 $200,255 $218,730
Capital
Net Worth $103,500 $102,620 $107,424 $112,826 $120,368 $120,631 $118,958 $125,065 $134,775 $147,239 $159,913 $171,808 $185,477
viii
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Coffeehouse Business Plan

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Thanks for downloading this sample business

plan from Bplans.com!

Your business is unique. Your business plan should be too.

 A step-by-step process to follow

 Financials that are calculated for you

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Copyright  Palo Alto Software, Inc., 2018 All rights reserved.

Table: Sales Forecast i

Table: General Assumptions iii

Table: Profit and Loss iv

Table: Cash Flow v

Table: Balance Sheet vii

An advanced and expandable point-of-sale system

** This Business Plan only provides data on the Pleasantville coffeehouse.

 Achieve a total net profit of $150,000+ in FY1 and $200,000+ by FY3

 A superior-tasting product backed by a unique quality store

 A relaxing, upscale interior design

 Ongoing, aggressive marketing

 Highly trained and friendly staff

The Dark Roast Java Concept

Long term assets: $62,000

Undercounter Refrigerators $5,000

Short-term assets: $15,000

Tables, Chairs, Furnishings $12,000

Total Requirements $250,500

Table: Start-up Funding

Liabilities and Capital

Loss at Start-up (Start-up Expenses) ($147,000)

Total Capital and Liabilities $103,500

Total Funding $250,500

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 We carry the highest quality fresh juices.

3.2.1 Coffee and Espresso Drinks

$1.60 Regular $1.85 Large

Panna of whipped cream. 0

FLAVORED ESPRESSO DRINKS

HOT COCOA DRINKS

Classic American Iced Tea, just like you remember as a kid.

CHAI TEAS (hot or ice blended)

Chai Original (regular or decaf): $2.00 Regular $3.00 Large

Vanilla Chai: $2.00 Small $2.50 Medium $3.00 Large

Name Description Regular Large

ICED ITALIAN SODAS

Sparkling spring water, flavoring and ice. Blended or on the rocks.

Medium $1.50, $2.25 Large

 Cream Soda (made with half & half)

SPECIALTY ITALIAN SODAS

Name Description Price

Snacks and Pastries

Pleasantville Cheesecake, made just for us by Pleasantville Cheesecake Company. $2.00

Market Analysis Summary

Pleasantville: The Perfect Launch Market

 The highly affluent local population

1. Affluent local residents

 Students. Pleasantville is home to a major branch of the State University as well as

Chart: Market Analysis (Pie)

Table: Market Analysis

Target Market Segment Strategy