

PENTAGON CAFE


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 OVERVIEW
The CAFE PENTAGON will be located in Lucknow (U.P) in a rental building
in Hazratganj started the COFFEE SHOP in November 2018 as an activity
focusing mainly on varieties refreshing beverages along with little snacks, with
the thought of connecting people in the real world. Unlike other coffee shop the
CAFE PENTAGON will not be just a place where its customers will come
spend their time, eat, sip and leave but will also involve them in various reading
books are also provided so as to create bond and provide a small yet
recognizable platform to showcase their talent and skill and thus developing
confidence among the stars of tomorrow.

The core product of the CAFE PENTAGON i.e. varieties of coffee and light
snacks will include various hot and fresh prepared, to satisfy customer’hunger
with aroma of coffee beans

So the entire team of The COFFEE SHOP which includes Manager, The
heavenly Kitchen Team, the Serving Team will make sure that the focal points
of CAFE PENTAGON gets implemented in perfection for the ultimate all round
satisfaction of our customers.

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 EXECUTIVE SUMMARY

CAFÉ PENTAGON is determined to become a daily necessity for local coffee

addicts, a place to dream of as you try to escape the daily stresses of life and just
a comfortable place to meet your friends or to read a book, all in one. With the
growing demand for high-quality coffee and great service, The Coffee shop
will capitalize on its proximity to the Lucknow city to build a core group of
repeat customers. It will offer its customers the best prepared sugar free and non
sugar free coffee in the area that will be complimented with snacks , as well as
free books that its patrons can read to enjoy their visit.

The company will operates a 1000 square feet coffee club in the Super market.
The owner invested Rs600000 from the total investment of Rs1100000. The
remaining capital will be obtained as a term loan from State Bank of India.

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Objectives
Fresh’s objectives for the first year of operations are:

 To establish as a leading Coffee shop in the area

 Turn in profits from the first month of operations. .

. Keys to Success

The keys to success will be:

 Store design that will be both visually attractive to customers, and

designed for fast and efficient operations.

 Marketing strategies aimed to build a solid base of loyal customers, as

well as maximizing the sales of high margin products, such as espresso
drinks.

COMPETITION
As such there is no high competition with my products but still few shop
like Café Coffee Day and Cherry Tree do exist that specialize in
providing coffee products.

FINANCIAL HIGHLIGHTS
Funding for the company comes from two major sources--owners'
investments and bank loans. The owners contributed Rs 600000. The
remaining Rs5,00,000 needed to cover the start-up expenses and assets
came from the bank loans for five years.

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GENERAL COMPANY DESCRIPTION
 Name: CAFE PENTAGON

 Company type: Sole Proprietorship Type Of Business

 Owner of the Company: Ankit Kumar Srivastava

 Location: LUCKNOW

 Opening times:10 A.M to 10 P.M

 Equipments: Two CCTV,Kitchen equipment ,tables and chairs,books

etc

Mission/vision
CAFE PENTAGON will make its best effort to create a unique place
where customers can socialize with each other in a comfortable and
relaxing environment while enjoying the best brewed coffee or espresso
in town. We will be in the business of helping our customers to relieve
from their daily stresses by providing piece of mind through great
ambience, convenient location, friendly customer service, and products of
consistently high quality. It will invest its profits to increase the employee
satisfaction while providing stable return to its shareholders.

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Organizational structure

1 MANAGER

2 CHEFS

3 CLEANER

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Management Team
Manager: I am only the full time manger of the coffee shop . The role and
responsibilities will include managing the staff, ordering inventory, dealing with
suppliers, developing a marketing strategy and perform other daily managerial
duties.

I have to manage each and every activity of the coffee shop& will be
answerable for various issues and queries.

Chefs: One chef is responsible for making coffee products and the other one
is for snacks

Waiter or cleaner: They are responsible for taking order and for serving the
customers and for cleaning the place.

Personnel plan
The coffee shop is based on the concept that it will bring consumers on a
platform to develop real life bonds along with offering varieties of the coffee
and delicious snacks to the customers

As it focuses on providing utmost quality, hygiene care and all-round best

customer satisfaction so it requires a dedicated, passionate and qualified team to
implement all plans as discussed.

The CAFE PENTAGON team

 THE OWNERS or MANAGER :- ANKIT KUMAR SRIVASTAVA

Ankit Srivastava is a MBA (Human Resource ) from Lucknow
University (Uttar Pradesh)

 BARISTA(2 )specialized chefs in their respective field .

 Cleaner (3)

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 THE OPPORTUNITY
SWOT ANALYSIS
 STRENGTHS:-
 Good consumer handling.
 Variety of coffee with sugar-free and non sugar-free for different
customer, taste and preference and little snacks
 Focus on offering the utmost quality of products..
 Focus on utmost hygiene-care.
 Qualified and efficient staff.
 Complete monopoly

 WEAKNESSES:-

 Zero experience in coffee business.

 OPPORTUNITIES:-

 Large potential target market.

 Unavailability of any coffee shop with such concept.
 Product diversification.
 Expansion options.

 THREATS:-

 Upcoming new coffee shop.

 Changing market trends.
 Increasing raw material prices.

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INDUSTRY AND MARKET ANALYSIS

MARKET SEGMENTATION & TARGET MARKET:-

 GEOGRAPHIC SEGMENTATION:-

 REGION:- Urban

 DEMOGRAPHIC SEGMENTATION:-

 AGE:- 17-35, 45 and above age group

 GENDER:- Male, Female, Transgender
 INCOME: - 20k or above p.m.

 PSYCHOGRAPHIC SEGMENTATION:-

 PERSONALITY:- socially active,people who love to spend their

time in peaceful environment
 LIFESTYLE:- luxurious, bachelors, professionals, students

 BEHAVIORAL SEGMENTATION:-

 USER STATUS:- first-timer, occasional, regular.

 USAGE RATE:- light, medium, heavy.
 OCCASSIONS:- meetings , kitty parties

POSITIONING:-

 CAFE PENTAGON offering varieties of coffee

 A place with lively ambience and utmost hygiene care.
 A place for intellectual, passionate, creative, artistic people.
 A place for people who like to develop networks and create real life
bonds.

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MARKETING PLAN AND STRATEGY

ADVERTISING & PROMOTION STRATEGY

To make your brand renowned and trustworthy among your target

market it is highly important to focus on right advertising options that
deliver the message you want to deliver in the right manner at the
right time to the right audience to generate the impact expected by the
company.
Advertisements options taken up:-

SOCIAL MEDIA PLATFORM:-

Facebook page:- www.facebook.com/coffeeshop

Instagram Page:- www.instagram.com/coffee
Whatsapp Number:- +91-9453898100

PRINT MEDIA:-

Being an unique premium segment coffee shop in Lucknow, the

CAFE PENTAGON believes that print media is of great
importance to connect with the intellectual class of the society.

POSTERS/ PAMPLETS:-

Brochure / posters/ pamphlets can be found in major main areas

of the city.

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 SALES PLAN

Our sales forecast assumes the following changes:

 In summers, consumers have high involvement & preference for

cold coffee and low involvement & preference for hot
beverages.

 In winters, consumers have low involvement & preference for

cold beverages & refreshers and high involvement & preference
for hot beverages.

 Weekends and on schools and colleges’ holidays so sales is

expected to be higher than weekdays.

 Since we are serving both hot and cold beverages so deviation

on overall profitability will not be there or almost negligible.

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MARKETING STRATEGY
CAFÉ PENTAGON marketing strategy will be focused at getting new
customers, retaining the existing customers, getting customers to spend more
and come back more often. Establishing a loyal customer base is of a paramount
importance since such customer core will not only generate most of the sales
but also will provide favorable referrals.

Product Strategy

Product refers to a physical product or a service or an idea which a consumer

needs and for which he is ready to pay. Physical products include tangible
goods and Services are intangible products which are offered and purchased by
consumers. Services may involve also an innovative idea on any aspect of
operation.
Product attributes refer to the quality, features and design of the product. A
product should serve the purpose for which it is made, in terms of utility and
quality. In a competitive market, products are differentiated on the basis of
certain features or design.

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PRICING STRATEGY

Price is the amount charged for a product or service. It is the consideration paid
by consumers for the benefit of using any product or service. Price fixation is an
important aspect of marketing. Pricing decisions of a company are affected by
both internal as well as external factors.
My pricing strategy will be low pricing strategy. As my coffee shop is new in
the market for attracting the more and more customer from maximum section of
the society . My pricing strategy quiet cheaper and it will cater more and more
customer.

RS 40-100 per cup of coffee for various sugarfree and non sugarfree

PLACE AND PROMOTION STRATEGY

The coffee shop is located in the main location of the city , ie

Hazratganj and I will promote my business by the means of brochure
and pamphlets .

Sales Strategy

coffee shop will handle the sales transactions. To speed up the customer
service, at least 1 employees will be servicing clients , while two employee will
be preparing the customer's order, All sales data logged on the computerized
point-of-sale terminal will be later analyzed for marketing purposes.

In order to build up its client base, coffee shop will use pamplets and brochure ,
utilize customer referrals and cross-promotions with other businesses in the
community. At the same time, customer retention programs will be used to
make sure the customers are coming back and spending more at the coffee shop.

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PRODUCTS

CAFE PENTAGON offers various mouths watering, freshly prepared food

items along with aroma of coffee beans and various other taste bud friendly,
chilling, refreshing flavors at affordable prices. The ingredients used will be
astonishing quality for the love of our customer’s requirements.

Different sections of products offered are:-

 COFFEE REFRESHERS:-
Consists of various refreshing, chilling, mind boggling drinks filled with
the aroma of coffee.
Listing follows:-
 Coffee ice ball.
 The Apchoc Coffee
 The Kala Khatta Coffee
 The Matka Kulfi Coffee

 COFFEE BEVERAGES:-
Consists of hot, relaxing coffee products.
Listing follows of hot coffee beverages:-
 Cappuccino
 Espresso
 Italian Coffee
 Coffee Mocha

Listing follows of cold coffee beverages:-

 Coffee Latte
 Almond Toffee Latte

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 Cold Coffee
 Espresso Cola

SNACKS :

 The Desi Taco

 French Fries
 Garlic Bread
 Mini Garlic Bread Balls
 Sandwiches

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Location and facilities

The location of the coffee for a day will be at Hazratganj ,Lucknow (,Uttar
Pradesh ) India

Coffee shop is in the area of 1000 square feet, which is in the vicinity of
adjacent main road.

Coffee shop is well connected with various modes of transport like auto
richshaw etc.

Location landmark:-

 950m from parivartan chowk .

UTILITIES:-
The budget allocated for utilities include items like:-
 Internet connection
 1Computers
 1 Printers
 Landline
 Stationeries

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MILESTONES
 Obtaining license and get registration
 Loan approved with bank
 Inauguration of coffee shop by the end of this year

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 FINANCIAL PLAN

Financial Planning

 coffee shop will capitalize on the strong demand for high-quality

gourmet coffee. The owners have provided the company with
sufficient start-up capital. With successful management aimed at
establishing and growing a loyal customer which combined with
reasonable operating expenses, will provide enough cash to finance
further growth.

Sources of capital

Capital Structure (in Rs.)

Owners’ Equity 600000

Bank Loan @ 14% for 5 year 500000

Total 11000000

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REVENUE /SALES FORCAST
Product name Price per unit Units/per Per annum
annum income

Coffee 80 2000 160000

capuccinpo

E spresso 40 4000 160000

Italian 80 2250 180000
coffee(sugar
free)

Coffee 80 3000 240000

mocha(sugar
free)

Coffee mocha 50 2300 115,000

Almond toffee 100 210 21000
latte(sugar
free)

Apchoc coffee 50 5000 25000

Matka kulfi 60 5000 300000
Matka 100 1150 115000
kulfi(sugar
free)

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Desi taco 60 500 30000

Sandwiches 80 1000 80000

French fries 60 500 30000

Garlic bread 70 400 28000

Total 1,484,000

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START UP EXPENSES
1) TOOLS AND EQUIPMENT

S.NO DESCRIPTION AMOUNT

1. ESPRESSO MACHINE 20000
2. COFFEE MAKER 5000
3. SANDWICH MAKERS 5000
4. COFFEE GRINDER 4000
5. COUNTER TOP 10000
6. SINK 5000
7. UTENSIL RACK 8000
8. SHELVES 12000
9. FOOD RACK 6000
10. BINS 2000
11. PLATES,GLASSES,CUPS 25000
,SPOONS ,NAPKINS ,

12. ICE MACHINE 10000

12. TABLES,CHAIRS FILE 80000

CABINET

13 PC,PRINTER,OFFICE 100000
FURNITURE,BOOKS

14. MICROWAVE 25000

15. REFRIGERATOR 50000
16. DISHWASHER 10000
17. BLENDER 10000
18. TOASTER 5000

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19. FRYER 10000
TOTAL 402000

2) REGISTRATION

S.NO DESCRIPTION AMOUNT

1 BUSINESS 3000
REGISTRATION FEE

TOTAL 3000

TOTAL START UP COST=403000

1) OPERATING EXPENSES
RAW MATERIAL

S.NO DESCRIPTION AMOUNT

1 MILK 220000

2 COFFEE BEANS 60000

3 SUGAR 45000

4 SUGAR FREE 35000

5 TACO 13000

6 BREAD 47000

7 SAUCE 10000

8 MASALA 20000

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9 MAYONNISE 20000

10 ESSENCE, COFFEE 20000

POWDER

11 VEGETABLE OIL 20000

TOTAL 51,0000

2) RENT

S.NO DESCRIPTION AMOUNT

1 RENT 10000sq.feet(per 100,00 per month

month)

10000*12

TOTAL 1200,00 p.a

3) STAFF AND WORKER SALARY

S.NO DESCRIPTION AMOUNT

1 2 CHEFS 10000*2=20000 per
month
2 3 CLEANER OR 4000*3=12000 per
WAITER month
32000*12
TOTAL 384,000p.a

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OTHER EXPENSES

S.NO DESCRIPTION AMOUNT

1. ADVERTISEMENT 35000
AND PROMOTION

2. REPAIR AND 10000

MAINTENANACE

3. STATIONARY 3000

4. DEPRECIATION 40000

5. LICENSING 10000

TOTAL 98000

4) MISCELLANEOUS EXPENSES
S.NO DESCRIPTION AMOUNT

1. OTHER EXPENSES 2000

TOTAL 2000

TOTAL OPERATING COST=604,000

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Projected Profit and loss statement for year 1
Particulars Amount Amount
Revenue 1484000
Direct cost (510000)
Gross profit 974000
Other operating (604000)
cost(salaries=384000
Advertising=30000
Legal fee=10000
Licensing=10000
Repair and
maintenance=10000
Depreciation=40000
Rent =120000

EBIT 370000
Interest (70000)
(500000*14/100=70000)
EBT 300000
Tax (5000)
(50000*10/100=5000)
PAT 295,000

Projected Profit and loss statement for year 2

Particulars Amount Amount
Revenue 1500000
Direct cost (520000)
Gross profit 980000
Other operating (589,000)
cost((salaries=384000

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 Advertising=35000
Repair and
maintenance=10000
Depreciation=40000
Rent =120000
EBIT 391,000
Interest (56000)
(400000*14/100=
EBT 335000
Tax(85000*10/100) (8500)
PAT 326,500

Projected Profit and loss statement for year 3

Particulars Amount Amount
Revenue 1450000
Direct cost (490000)
Gross profit 960000
Other operating (594000)
cost(salaries=384000
Advertising=40000
Repair and
maintenance=10000
Depreciation=40000
Rent =120000
EBIT 366,000
Interest (42000)
(300000*14/100=
EBT 324000
Tax (74000*10/100= (7400)
PAT 316,600

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Projected Profit and loss statement for year 4
Particulars Amount Amount
Revenue 1500000
Direct cost (520000)
Gross profit 980000
Other operating 594,000
cost(salaries=384000
Advertising=40000
Repair and
maintenance=10000
Depreciation=40000
Rent =120000
EBIT 386,000
Interest (28000)
(200000*14/100=
EBT 358,000
Tax (10800)
(108000*10/100=
PAT 347,200

Projected Profit and loss statement for year 5

Particulars Amount Amount

Revenue 1550000
Direct cost 540000
Gross profit 1010,000
Other operating (594,000)
cost((salaries=384000
Advertising=40000
Repair and
maintenance=10000
Depreciation=40000

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Rent =120000
EBIT 416,000
Interest (14000)
(100000*14/100=
EBT 402,000
Tax (152000*10/100= (15200)
PAT 386,800

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Projected Balance sheet of 1 year
Particulars Amount Amount
Asset
Fixed asset 400000
Less:depreciation (40000)

360000
Prepaid advertising 30000
Sundry debtors 210000
Prepaid expenses 10000
Cash in hand 15000
Cash at bank 170000
Total 795,000
Liabilities Amount Amount
Net profit 295,000
Loan outstanding 500000
Total 795,000

Projected balance sheet of 2 year

Particulars Amount Amount
Asset
Fixed asset 400000
Less:depreciation (40000)

360000
Prepaid advertising 20000
Sundry debtors 90000
Prepaid expenses 20000
Cash in hand 56500
Cash at bank 170000
Total 726500

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Liabilities Amount Amount
Net profit 326500
Loan outstanding 400000
Total 726500

Projected balance sheet for 3

Particulars Amount Amount
Asset
Fixed asset 400000
Less:depreciation (40000)

360000
Prepaid advertising 30000
Sundry debtors 50000
Prepaid expenses 10000
Cash in hand 16600
Cash at bank 150000
Total 616,600
Liabilities Amount Amount
Net profit 316600
Loan outstanding 300000
Total 616600

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Projected balance sheet for 4
Particulars Amount Amount
Asset
Fixed asset 400000
Less:depreciation (40000)

360000
Prepaid advertising 10000
Sundry debtors 32,200
Prepaid expenses 10000
Cash in hand 15000
Cash at bank 120000
Total 547,200
Liabilities Amount Amount
Net profit 347200
Loan outstanding 200000
Total 547,200

Projected balance sheet for 5

Particulars Amount Amount
Asset
Fixed asset 400000
Less:depreciation (40000)

360000
Prepaid advertising 5000
Sundry debtors 1800
Prepaid expenses 10000
Cash in hand 10000
Cash at bank 100000

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 Total 486,800
Liabilities Amount Amount
Net profit 386,800
Loan outstanding 100000
Total 486,800

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 RATIO ANALYSIS

Year 1
Gross profit ratio=gross profit/net sales
=974000/1484000
=65.63%

Net profit ratio=net profit/net sales

=295000/1484000
=19.87%

Debt to asset ratio=total liability/total asset

=500000/835000
=59%

Operating profit ratio =operating profit/net sales

=370000/1484000
=24.93%

Year 2

Gross profit ratio=gross profit/net sales

=980000/1500000
=65%

Net profit ratio=net profit/net sales

=326500/1500000
=21.7%

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 Debt to asset ratio=total liability/total asset
=400000/706500

=56.61%

Operating profit ratio =operating profit/net sales

=391000/1500000

=26.06%

Year 3

Gross profit ratio=gross profit/net sales

=960000/1450000
=66.20%

Net profit ratio=net profit/net sales

=316600/1450000
=21.83%

Debt to asset ratio=total liability/total asset

=300000/616600

=48.65%

Operating profit ratio =operating profit/net sales

=366000/1450000

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 =25%

Year 4

Gross profit ratio=gross profit/net sales

=980000/1500000
=65%

Net profit ratio=net profit/net sales

=347200/1500000
=23.14

Debt to asset ratio=total liability/total asset

=200000/547200

=36.54%

Operating profit ratio =operating profit/net sales

=386000/1500000

=25.73%

Year 5

Gross profit ratio=gross profit/net sales

=1010000/1550000
=65%

Net profit ratio=net profit/net sales

=386800/1550000
=24%

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 Debt to asset ratio=total liability/total asset

=100000/486800

=20.54%

Operating profit ratio =operating profit/net sales

=416000/1550000

=26.83

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 BIBLIOGRAPHY
LINKS
 www.businessplans.com
 www.morebusiness.com
BOOKS
 Marketing Management
- By: Philip Kotler

 Advanced Accounting
- By: S.M.Shukla

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