Joy Teahouse
Executive Summary
Joy Teahouse is a
limited liability company established in the Utah area. The main owners is John
and Joy Baily who has a BSc in Catering and Hotel management. She has eight
years’ experience in the restaurant and hotel management.
Her desire to provide high
quality tea has transitioned to incorporating, owning and running a teahouse.
Joy have worked in different teahouses and currently undergoing training as a
nutritionist. Joy teahouse is poised to offer a full range of pastries, tea,
coffee, tea accessories, biscuits and chocolates.
We will include novelty
tea related items and gift packs. Joy is a master Tea tender with deep
knowledge of Tea brewing techniques, storage and serving. We will train our
staff in the various disciplines to provide top quality products and services.
The US tea market is
huge and growing rapidly each year. Tea sales have increased over 150% with a
proliferation of tea rooms services increasing 10%. US interest in tea has
given rise to new establishments offering gourmet services and sit down
services.
The customer base
continues to increase with interest in hot and cold beverages in delightful
ambiance coffee shops. We aim to provide a charming, relaxing and exclusive
atmosphere with a wide array of products is our core value.
This will appeal to
tourists, local populace and travelers. Our selected location is highly
visible, accessible and in commercial area with huge traffic. The selected
location has no competition and a fair distant from nearest teahouse.
We have put together a
conservative sales forecast of $200,000 in first year with a net profit of
$20,000 in first year. The initial investment for the teahouse is $20,000 and
seeking 5 year loan of $60,000 to fund the startup.
Mission Statement
Our mission statement is
to provide quality service and products to residents in the Utah area in a
luxurious and relaxing atmosphere.
Objective
The main objective is to
attain first year sales of $200,000 and maintain a reasonable margin. We seek
operate a profitable chocolate and tea store and make reasonable net profit
while operating with a maximum of three employees.
Keys to Success
The key to success
requires adequate working capital and steady customer base. The location has no
direct competition with the next teahouse several miles away. We will provide
excellent service, good customer relations.
We will offer
chocolates, premium tea and pastry products. We will serve both hot, cold teas
and leaf loose tea, the teahouse will leverage on the vast experience of the
managers.
• Adequate working capital
• Steady customer base
• Good location
• No direct competition
• Excellent service
• Good customer relations
• Choice chocolates, premium tea, pastry products
Company Summary
Joy Baily Teahouse is
located in a commercial area with huge vehicular and human traffic. We will
provide over 60 loose tea variants. The tea types include herbal teas, green
teas, black tea, regular tea, fragrance tea, art tea.
We will sell loose tea
and serve both cold and hot teas. The customers will enjoy our premium brands,
baked products, chocolates and gift baskets.
Our choice location has
a large population with historic charm and rural environment. The area is a
good tourist destination for local, state and foreign visitors. The area
features good tourist locations
Company Ownership
The business is
incorporated as a limited liability company with Joy and John Baily
co-owners. John Baily and joy Baily each
controls 50% of the business.
Joy is highly qualified
with several years in teahouse establishments. She has experience in hotel
management, catering and as a teatender. John Baily has a PHD in economics and
accounting.
Startup Summary
Startup requirements
includes inventory, equipment and rent. Others are interior decorations,
marketing. Initial invest is $20,000 and we need $80,000. Therefore we seek
$60,000 long term loan for a duration of 5 years.
Long Term Assets
The long termed assets
are dishwasher $900, hot water/steam machine $1000. Assets include hardware
$1000, appliances $1000, tea racks $2000 and refrigerated chocolate racks
$3000.
Short Term Assets
Short term assets are
furniture $6000, ice tea shakers $500 and coffee grinder $500. Expansion
supplies are cleaning supplies, testing cups, tea balls and napkins.
Startup Requirements
The startup requirements
are rent, insurance, legal and stationaries. Others include startup supplies,
leasehold improvement, tea cups, tea pots and dishes. Startup expenses are long
term assets, current assets, cash required and startup inventory.
Funding Requirements
Funding includes startup
assets to fund and startup expenses to fund. Funding requirements are
additional cash raised, non-cash assets. We have startup cash requirements.
Liabilities
The liabilities are
owners, current borrowing, current liabilities, and long term liabilities.
Products and Services
Joy Teahouse specializes
in the full teahouse experience. We offer premium teas, pastries, gift baskets,
and chocolates. We have a huge assortment of teas with over 60 variants.
Our products are ideal
for local, state and foreign visitors to our establishment. We seek to provide
a luxurious memorable experience for patrons with our quality products and
service.
Kind of Teas
We offer 60 kinds of tea
that cover a cloudscape of tastes. Products include black tea, flavored tea,
Ceylon, vanilla. Others include jasmine blend, chai, caffeine free herbal and
green tea.
More are ginseng, fruit
blends and chamomile. The teas are served hot, iced, cold or loose depending on
the customer’s preference.
Chocolates
To support a total
indulgence of the taste buds we offer different chocolate products. This
include vegan chocolates, Dagoba, Godiva, Garrison and Scharffen Berger. We
offer premium chocolates, chocolate gift baskets, dip chocolates and truffles.
Coffee
We do not intend
competing with mega coffee establishment and prefer carving our own niche. Our
teahouse nice is tea and brew one kind of coffee ach day. This is to provide a
choice for coffee lovers who visit our establishment.
Pastries
To complement our tea we
add a premium selection of pastry products. They will be freshly baked and made
with quality ingredients. The product are outsourced from reputable bakeries to
reduce cost of labor, equipment and utilities.
The small selection of
pastries are scones, cakes, muffins and cookies. The provision of small
pastries to accompany the tea is to provide a holistic experience.
Tea Paraphernalia and Gift Basket
We will invest in tea
paraphernalia like books, artwork, and tea balls. Others include specialty
teapots, decorative tea tins and tea related items. The gift baskets will be
pre-made or ordered.
Market Summary
The American tea market
is huge with a rapid growth of 150% each year. The number of gourmet coffee
shops and tea rooms increase in same period. The American market are open to
affordable beverages in relaxing shops.
A good example is
Starbucks with an annual sale of $12 billion from tea. Our choice of location
is in a commercial area with huge human traffic. The location is ideal for an
upscale teahouse.
The Chocolate Market
Premium chocolate sales
are estimated at 400 million in 2001. With a steady increase of 19% each year.
The premium chocolate market accounts for 1.8 billion 2017.
Market Size
The market segmentation
is between local populace, tourists and state travelers. The tourist industry
is fast growing and generated $5.2 billion. Utah has a huge local population
within the age group of 25 to 60.
Target Market
Marketing analysis show
that potential customers are local residents and tourists. The target market
are middle to upper class patrons who are willing to pay premium prices for
high quality products.
Strategy
We will provide targeted advertisements and
promotion to Utah residents. This is to encourage repeat patronage and
consistent demand. We will provide training to staff, quality products and
premium prices. We offer prestigious services for the middle and upper class.
Competitive Advantage
Our competitive
advantage is the experience and knowledge of owners. We will liaison with high
end tea farms and offer an array of premium chocolate. The location has no
competitors, we strive to create quality products with good customer service.
Competitive Weakness
The teahouse market is
highly competitive and moderately challenging. The weakness is awareness of new
establishment and competition with established brands.
Marketing Strategy
The marketing strategy
is to create awareness of our products and services. Our target market are
people within the 25 to 60 year age bracket. Other marketing strategy is a
visible location and extensive advertising.
Advertisement strategy
includes local newspaper publications, flyers, local magazines and food
reviews. We will use social media marketing and web advertisement.
Social marketing include
tea tasting party, coupons. We will focus on storefront design to attract
customers. The storefront advertisement are signboard with store name and logo.
We will network with local hotels, guest houses, inns.
Sales Strategy
Our strategy is to
provide upscale premium products and services. We will offer discounts to
repeat customers to encourage regular patronage. We will organize tea tasting
every month and serve an array of selected tea.
This is to establish
customer’s preferences. Our sales strategy will also include targeting of
special occasions like valentine, Christmas Mother’s Day and Easter
celebrations.
Sales Forecast
Celebratory periods are
expected to drive huge sales. We expect an average sales 0f $20,000 a month for
first year.
Pricing of hot tea from
$3 to $50, ice tea served in 12oz, 16oz $2 to 43. Pastry prices will range from
1 to 4 while chocolate 80 cents to 4. Gift basket prices range from $15 to $150
with expected average of $20.
Estimated sales Forecast for First year
The estimated sales
forecast for forest year is chocolate $80,000, pastries $10,000. we expect
sales of $50,000 hot teas, $20,000 iced teas and $4,000 gift baskets.
We also intend selling
tea paraphernalia estimated at $3,000. The total yearly estimated sales
$167,000.
Management Summary
Joy Teahouse is operated
by John and Joy Baily, husband and wife. Joy manages, designs, customer
relations and market products.
John handles the
financials, inventory and accounting. Co-workers include teatender, cleaner,
manager. The personnel are approximated to 3 employees. Payroll provisions are
for owners and teatender.
Financial Plan
The main objective is to
repay loans and cover expenses. Sales growth is expected to grow in second
year. Long term assumptions are focused on current interest rate, tax rate and
long term interest rate.
Break-Even Analysis
The break-even analysis
is estimate on the average percentage variable cost and monthly revenue
break-even.
Projected Profit and Loss and Expenses
The profit loss is
predicated on direct sales. While expenses include payroll, marketing,
promotions utility bills. Other expenses are rent, monthly disposable supplies,
and payroll or taxes. The profit before tax are estimated on tax incurred,
interest expense, net profit and dept
1 comments:
Interested in opening a tea room, need a business plan.
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