1.Introduction A Café is generally a daily fundamental for local coffee addicts as well as a place to idle as you try to withdraw the daily stresses of life. On top of that, it provides a conducive environment to complete school assignments and hang out with our classmates , all in one. With the growing demand for high-quality critic coffee and wonderful service, we are proposing to build a café in Pioneer Polytechnic. The café will offer its customers the best prepared coffee in the school.Pioneer Polytechnic has a vacant retail space of 400 sq ft which is located within the shopping arcade at the campus centre.
Due to the high student population in the campus, the shopping arcade purpose is to provide products and services for students to buy necessities. Consultative committee were formed to study the retail needs of the student’s population and recommending the type of products and services for the new retail shop. Therefore, we are proposing to set up a café in Pioneer Polytechnic which would offer its customers best prepared coffee in the school and healthiest food.1.1 Background of the problem Based on the survey, most respondents prefer the café to open from 8am to 7pm.
However, having the café that opens from 8am to 8pm is ideal, as the extended one hour will allow students and staffs an alternative place to buy snacks and beverages, since most school canteens might not be available that late. In addition based on the survey’s popularity, the café will be selling drinks such as coffee, tea , canned drinks and, snacks such as sandwiches and pastries.1.2 Purpose of this study1.
3 Scope of this studyThe scope of this study, we are researching on are local and overseas.Our study investigates the target audience of having a cafe are:StaffStudentsMembers of the PublicThere are approximately 1,500 staff in the school.Apart from young adults who frequently visit the cafe, as according to research SBDCNet, in United States 77 percent of the adults drinks coffee on a daily basis. In other words, staff is our primary target audience.Most of the polytechnic students are aged between 18 to 25. Our main target audience are students as there are a approximately 15,000 students in a polytechnic. Our cafe is located inside the polytechnic shopping arcade therefore many students will visit and purchase some food and beverages from us. Students can also hang out, and meet people in the cafe.
As the school is open to members of public to visit, they are also able to purchase their food and beverages from our cafe during our operating hours. They can purchase the food and beverages in a standard price.1.4 Sources and methodPioneer Polytechnic conducted a survey with 500 respondents.
To obtain, the data needed for the vacant store inside the shopping arcade.The method uses to source for report are Secondary research. For the secondary research, we uses search engine to search online.2.
Finding and AnalysisThe findings of the study will be presented in :2.1 Importance of having cafe2.2 Cafe Operation2.3 Advantage and Disadvantage2.
4 Direct and Indirect Competitors2.5 Maximising the cafe space2.6 SWOT Analysis 2.1 Importance of Café According to the market analysis graph in figure 1, it is proven that students are the main target audience of the Café. As most students would go to the Café do their studies and meet up. It is also a place that students and teachers will go to for a cup of premium coffee to pampered themselves on that day.
Most of the time though, it has to do with convenience and the fast service that the Café provides as they rush from lessons to lessons. According to the market analysis graph in figure 2, we can see there is an increase in growth of 2% profit every year. Therefore, students are our main target as they help to increase our cafe profit. As students tend to need a strong brewed coffee to keep them awake for the rest of the day after all the long lecture,study hours and less sleeping hours.
Students may or could also crave for cakes during their school hours or helping a friend to celebrate their birthday, they could conveniently head down to the cafe to purchase a cake.Figure 1: Number of Customer of coffee drinker in Eugene(United States)(Source:https://www.bplans.
com/coffee_shop_business_plan/market_analysis_summary_fc.php)Figure 2: Total Market Potential in Eugene(United States)(Source:https://www.bplans.com/coffee_shop_business_plan/market_analysis_summary_fc.php)2.2 Cafe OperationThe Café will start operating at 8am and closes at 8pm.
Customers will have a variety of drinks to choose from and this ranges from brewed coffee to refreshing beverages, so that they can enjoy an alternative of coffee. Sandwiches and pastries will also be offered to go along with the drink desire.In addition, the café will operate in a counter service manner, where customers place their orders at the counter. It is an effective way as it tends to be faster, therefore making it ideal for students or staffs who have limited amount of time to purchase and consume what they want.2.3 Advantage and DisadvantageAdvantages One advantage of having a café is it provides students and staffs with an alternative to canteens in the school compound.
Therefore, this helps lessen crowds in different canteens, especially during lunch time. Furthermore, students can enjoy freshly ground coffee, rather than the ones made in school canteens which can sometimes be instant. Lastly, having a café that provides grab-and-go service will allow students and staffs fast access of food, making it convenient for those rushing to get their food and beverages.
Disadvantages A disadvantage of having a café is that there might be a likelihood of not having much customers, as there are places in the school that might provide similar food and beverage choices as the café. In addition, profits might drop due to lesser people going to school during the holidays.2.
4 Direct and Indirect Competitors Direct Competitor:Starbucks Starbucks is a well-known company globally. One of their outlet located nearby the polytechnic. Most people tend to visit Starbucks as it is convenient and great place for people to gather and study. They have 87,000 combinations of beverages and a wide range of food.Mccafe Mccafe is owned by Mcdonald which has many outlets located in any parts of Singapore. Mccafe offers a cheaper price than Starbucks and The Coffee Bean.
Mccafe services are more efficient than Starbucks as they have lesser human volume traffic and consumer can grab a drink or food anytime at their convenience.The Coffee Bean and Tea leafCoffee Bean is a family-run company and largest privately owned in the World. Coffee Tea leaf offer 22 varieties of coffee and 20 types of tea, with an aim to provide customer with the freshest assortments of beverages. Most of their outlet is located in shopping malls and Central Business District(CBD). They also offer a similar price range as Starbucks. Coffee Bean and Tea leaf use a better product to brew the coffee.
Indirect Competitors: School Canteen Our indirect competitor is school canteen as most students will visit during their break time. The school canteens provide a wider range of affordable food.They are also located near the different school blocks. 2.5 Maximizing the cafe spaceGiven such limited space of 400sq ft.
a café is most appropriate as there are many ways to maximize the space. These are examples of how cafe layout their cafe space: Konditori Artisan BakeryChulop! 2.5.1 Konditori Artisan BakeryKonditori – Artisan European Bakery by Fika Swedish and Bistro, is one of Singapore’s successful bakery shop located along Bussorah Street at Bugis that takes on an old-fashioned approach to deserts. The minimalist yet elegant concept, sets 2 tables with 2 seats on each tableDecorated in a simple, minimalist yet elegant theme, the interior is largely in white with minor details of gold with marble furnishings for that chic vibe. Catered more towards the takeaway crowd, there are only two counter seats within the store, while there are also two outdoor tables of two seats each. (Source: https://jiaksimipng.wordpress.
com/2016/10/22/konditori-artisan-bakery-bussorah-streethttps://www.tripadvisor.com.sg/Restaurant_Review-g294265-d11877373-Reviews-Konditori-Singapore.html#photos;geo=294265=11877373=101) 2.5.2 Chulop!Chulop By The Syarifs is a cafe with no seating, but a takeaway kiosk.
The layout of Chulop seems like they got their inspiration from a mini European ice cream van. The bright colours that was used on the interior and exterior enhances the cafe which manages to look uninspired, plain and dull. The clear window panes allow customers to watch and wait for their orders outside of the cafe and be notified once their queue number is shown on the electronic number system. (Source: https://www.burpple.com/f/0aotEZyYhttps://i0.wp.
com/ordinarypatrons.com/wp-content/uploads/2014/12/East-Village-316-15.jpg?resize=644%2C429=1)2.6 SWOT AnalysisStrengthsWe offer a cheaper price in our food and beverage. Example: staff price and student price Offer a healthier food and beveragesWeaknessesDuring school holiday, not all students will come back to school therefore it will lead to lowering the profit during school holidays.The price of food and beverage may be too expensive to some studies.
Not much space providedStudents unable to seat inside the cafe for a chat or gathering.OpportunitiesTo expand the cafe space in futureTo offer more variety ThreatsThere are competitors nearby the school. example : StarbucksThere are cafeteria in the schools3. Conclusion4. Recommendations After considering the findings and conclusions of this study, we offer the following recommendations in an effort to increase the cafe sales and improve customers’ overall experience: Creative marketing strategy.We have selected two marketing strategies that our cafe will be using: Firstly, advertisements through posters and TVs within the school compound. Lastly, offer customer loyalty program. We cheaply print or buy punch cards for patrons to present when they make their purchase.
For example, give customers for every tenth beverage free. Create awareness on environmental problemUsing biodegradable plastic bags, logo-printed paper bags and eco-friendly cups, that are brown in colour which makes it more unique and attractive where eco-friendly meets design. Expand menu. A larger menu with more meal-oriented options can be an effective way of increasing sales at a cafe with a limited menu.It gives customers more choices to pick from. Besides offering beverages, like coffee and tea, and light appetizers, such as sandwiches; adding pastries, take-away soups, salad, or other dishes that customers able to purchase quick snack by the table counter. Attractive in-store design and layout.
The perfect layout promotes productivity amongst staff and enhances customers’ experience. This will increase cafe popularity as customers will be snapping appealing pictures and put up online which gives free advertisement for the cafe.