Jasmine Teahouse is a new tea room in the quaint New England town of Simsbury, Connecticut. Earl and Lady Grey, the owners of Jasmine Teahouse, manage it as a Limited Liability Corporation. Earl Grey has five year experience running a successful boutique coffeehouse in Maryland. His passion and knowledge about teas will make it an easy transition to opening and running a teahouse. Lady Grey is a trained herbalist with 3 years experience and has worked as a Boston teatender for 4 years. She is currently studying to be an herbalist, so her knowledge of tea’s health benefits will aid in marketing and sales.
Jasmine Teahouse has a full selection of teas. Lady Grey is a master teatender and Earl has been studying proper brewing techniques with her for the past four months. We will train all of our teatenders in the proper storage, brewing, and serving of each kind of tea.
American tea is on the rise. Tea sales have increased 165% during the past fifteen year, and the number of tea rooms that offer sit-down service has risen about 15% to around 1,500 shops. The rise in popularity of tea in America is due to the proliferation in gourmet coffee shops in the country during the same time period. Because of the marketing efforts of Starbucks, Seattle’ s Best and other coffee shops, the majority of Americans now accept expensive hot beverages to be affordable luxuries. But fashion is also constantly on the move. Because fancy coffee drinks are so readily accepted, savvy customers are searching for more unique options. Starbucks estimates that 7% of its $12 billion annual sales currently come from tea.
Simsbury’s potential customer base is split between local residents, tourists, and around 100,000 per annum in all seasons. We expect to easily generate sales to existing committed tea drinkers, who will immediately recognize the quality of our products and services. We will market to the larger, more diverse local communities that aren’t yet familiar with premium teas. This will highlight our ambience (cozy, intimate and luxurious), our prestige value (high prices and the sophistication of drinking a particular tea type), as well as our large selection of gifts (gift baskets. chocolates. loose teas. and tea accessories). A prominent location, association with the charming town and promotion efforts with other local businesses are key factors in attracting tourists.
Our area has no direct competitors. Dunkin’ Donuts and local cafes cannot compete with our high-end approach. The nearest Starbucks is only 5 miles away. Simsbury’’s increasing wealth and gentrification work in their favor as our upper-middleclass customer base seeks new status markers, mini-luxury experience in a convenient, near location.
Our conservative and well-researched sales forecasts project sales exceeding $190,000. This will be followed by moderate growth through year 3. Our projections project a net profit of more than $13,000 in the first year, with steadily rising net worth over the next few years.
The business is owned by the owners who have invested $10,330 in their own money. Jasmine Teahouse seeks a $53,633 loan for 6 years to help fund startup costs.
1.1 Mission
We aim to offer the best premium chocolates and teas in Simsbury, CT to our residents.
1.2 Objectives
- Simsbury is a place where you can open a successful chocolate and tea shop.
- To get at least 200 customers per year in the Simsbury marketplace within the first one-year of operation.
- One year of sales exceeding $190,000.
- Maintain a minimum gross margin of 58 per cent
- To achieve a reasonable net profit at the end of the third consecutive year.
1.3 Keys to Success
- Experienced Owners/Managers. Earl Grey and Lady Grey have a lot of experience in this field and related industries.
- Product Quality. We sell only the finest whole leaf loose teas, pastries or chocolates.
- Excellent Customer Service. Each customer will treated as if he or she were an honored guest in our home.
- No direct competition. We are the only teahouse within 20 miles.
- Enough working capital to sustain the first year while we build a customer base.
- Wide cross-seasonal options. We offer hot teas as well as iced teas and chocolates.
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