People’s News is a small, new chain of newsstand kiosks in Chinatown, New York City. Prepared to launch in 2010, the business will open subway station newsstands selling a combination of English language and Chinese language periodicals as well as drinks and snacks appropriate for both markets. Chinatown residents, commuters as well tourists and residents are all welcome to shop and visit the Chinatown newsstand. Chinatown is an area that offers both shopping and tourism for residents and those who live in NYC. People’s News is named after the People’s Republic of China. The newspaper will try to provide customers with an authentic taste of China’s periodicals, products, and services. It will also be able to introduce Chinese-speaking customers to American publications. This is to make it easier for them to become familiar with American culture and language. Hui Kao, a former Chinese shop owner, and Zhi Kao are now the owners and managers of People’s News.
People’s News will sell the following products at its kiosk locations: Chinese magazines and newspapers, Chinese-American magazines and newspapers, American magazines and newspapers, refrigerated beverages, snacks, and candy. Magazines will be weekly or bi-weekly, while newspapers will be either daily or weekly.
The business will suffer a modest loss in its first year. However, it will use its positive cashflows in the second- and third years to grow to three stores within three to five years. It will also provide steady income to Hui and Zhi Koo and two other family members or employees. When three stores are open, revenue is expected to surpass $700,000.
People’s News will achieve the following objectives within its first three years of existence:
- Install three stores
- >Offer full-time employment to four individuals (ideally, members of the owner’s immediate family)
- Get revenues of $700,000.
People’s News aims to have a loyal customer base and sell American and Chinese newspapers, magazines and snacks to New York City residents. The company is family-owned and managed. It will provide steady income for its family members and employment for as many family members as possible. The business will increase cultural consciousness in two ways. First, it will expose Chinese-American residents to American products and periodicals in a greater way than at other Chinatown newsstands. Second, it will offer non-Chinese consumers recommendations for Chinese and Chinese American products and periodicals.
Keys for Success
Success in the newsstand/newssagent business is dependent on these key factors:
Choosing highly-trafficked locations for the stands
Customers who are planning to travel by bus or subway will find a variety of snacks and drinks as well as informational materials.
Higher volume means better supplier prices (expanding to more locations and centralizing buying)
People’, News believes that this newspaper’s particular success will hinge on its ability to ensure that all employees are bilingual (English and Mandarin minimum, English, Mandarin, Cantonese best).