Opportunity
Problem
Millions of Americans stop every day to get an espresso-based cup of coffee. A few years ago, many people would have never thought to spend more than 50c on a cup for coffee. Now they will happily pay $3 to $5 for their cappuccinos, mocha latte and vanilla ice blended drinks.
The specialty-coffee market is growing at an impressive rate. There hasn’t been a single year in the past 20 years when specialty coffee sales have not increased, despite recessions and wars. The increase in specialty coffee sales has been double-digits for many years. This time, however, there have been no failures of coffeehouse chains, despite the long list of casualties in other sectors.
Solution
The need exists for a high-volume, quality-driven, high-volume coffeehouse in warm, welcoming surroundings. Dark Roast Java addresses this need and fills that niche. High-quality products are offered in an elegant environment. Pleasantville’s high-profile location ensures that we have a diverse customer base, which will allow us to maintain high business levels in all seasons, and at all hours of the day.
Market
The specialty coffee industry has been resilient to economic downturns. Coffee chains continue to grow despite the fact that many businesses are struggling in many areas, including those with negative balance sheets or bankruptcy.
It’s evident that America loves good coffee, both in good and bad times.
Pleasantville is the Perfect Launch Market
We maximise our chances of success by launching Dark Roast Java into the Pleasantville market.
- The wealthy local population
- Tourism activities available all year
- Students in the elite are constantly changing
- Our location has excellent pedestrian and auto traffic
- Media costs are low
- There are many local special events
- Prime site location
Dark Roast Java is situated in Pleasantville, in one of the best areas for a coffeehouse. It’s right next to the Egyptian Theatre, and only steps from the busiest intersection.
Dark Roast Java Coffee contains all the necessary ingredients to ensure immediate success.
Competition
Howard Schultz, who purchased Starbucks’ name in 1982 and established the Starbucks chain, started specialty coffee retail. Starbucks was selling whole bean coffee prior to Schultz’s transformation.
America has had coffeehouses since 1600. Even in the 1970s, the United States has seen coffeehouses emerge as independent businesses. They are often eclectic Bohemian-style.
Why Us?
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 experience than any competitor. We aim to make coffeehouses which are both profitable and that offer investors attractive rates of return (20% or greater annually).
We want to make a positive contribution to the local community and support civic and charitable activities. When possible, we will support farmers who grow coffee by supporting them with Fair Trade, Sustainable Production, and Organic products.
Dark Roast Java offers its services to as many local suppliers possible, keeping the company in the community, or at most, the state.
Expectations
Forecast
Pleasantville’s Dark Roast Java concept is expected to be well-received by the company. The company expects revenues of $750,000+ for the first fiscal year and more than $1,000,000+ for the third. We expect to be able start paying dividends to investors by year 4.
Financial Highlights Year-by-Year
Financing is Required
To get us going, we need $250,000 from investors.
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