Blue Chair Coffee
Autor: Sara17 • February 26, 2018 • 1,010 Words (5 Pages) • 627 Views
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Background Highlights
Opened in the fall of 2014
Earnings increased 30% after the first year
Serve an average of 165 people per day
Average sale per person is $14.65
Owners are experienced coffeehouse managers
Net profit this year is 12% and is projected to increase to 15% next year
Organization Structure
Blue Chair Coffee is a privately held, limited liability corporation (LLC) owned by Lucy Tennyson (50%) and Roberta Jackson (50%). Both operate as general managers and managing partners. Marketing and accounting services are handled by independent consultants. The coffeehouse also employs 10 part-time servers, baristas, and dishwashers.
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Keys to Success
The keys to success for Blue Chair Coffee (or any food service business) are summarized below.
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Market Analysis
The target market audience is a mix of residents, visitors, and workers who seek a sophisticated yet casual coffeehouse experience. Members of this audience dine out three or more times per week and prefer pedestrian-friendly, social environments. The following chart shows the potential growth in this market.
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Sales Forecast
The sales forecast assumes no change in the price of goods sold at the three Blue Chair Coffee locations.
The owners expect to increase sales from $1.5 million at the end of 2016 to $2.3 million by the end of 2018. This growth is average for coffeehouses and restaurants in Denver and takes into account the projected increase in population in the Denver area.
The following table summarizes projected sales in the three Blue Chair Coffee locations from 2016 to 2018.
Year
2016
2017
2018
Downtown
$727,600
$910,000
$1,150,000
East Side
$360,000
$525,000
$550,000
West Side
$367,000
$584,000
$600,000
Total Sales
$1,454,600
$2,019,000
$2,300,000
Management Team
General Manager Roberta Jackso[a]n
Assistant Managers Bruce Glaze and Lucy Tennyso[b]n
Executive Chef Zachary Mallo[c]n
Pastry Chef Leslie Garci[d][e]a
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