Opportunity
Problem
There are many different kinds of coffees and caffeinated specialty drinks that go along with the snacks that we serve. Some prefer dark and bold coffee while others prefer sweeter, less-caffeinated coffee. Some prefer green tea. Many people have traveled around the world and sampled many different cuisines. This makes it easy to determine what they like and don’t.
Solution
The Daily Perc provides the best hot and cold beverages to its customers, with a special focus on specialty coffees, blended teas and other custom drinks. TDP will also be selling soft drinks and fresh-baked pastries as well as confections. TDP will offer hot apple cider, hot cocoa, frozen coffees and other beverages seasonally.
Market
The United States of America is a very mobile country. With the introduction of the automobile, we became a nation that thrived on the further freedom of going where we wanted when we wanted. It has only gotten worse. There are over 250 million men, women, and children in America, half of whom are too old, too young, or too poor to drive an automobile. Yet, there are more licensed vehicles on the roads than people. This mobility has created a special need in our society.
Our market consists of people who have busy lives, want to be high-quality, and have disposable income. As much as they would like the opportunity to sit in an upscale coffee house and sip a uniquely blended coffee beverage and read the morning paper, they don’t have the time. However, they have the desire to enjoy the distinctively blended beverage even though they’re busy.
Concurrence
The Daily Perc’’s drive-thru business has four main competitors. They include national specialty beverage chains such as Panera and Starbucks, local cafes and coffee houses, convenience stores, and fast food restaurants. There is a dramatic distinction among the patrons of each of these outlets.
People who go to Starbucks or other local cafes are looking for the best coffee house experience. They want to be able “ ”design” their coffee, savor the fresh pastry, and chat with friends. It is a calm, relaxed environment.
People who frequent convenience stores and fast food outlets are often the exact opposite. They don’t like idle chatter so they will pay extra for every drink that is available. They pay for the gas, and then they’re back on the road. While they may have the good taste and desire for good from bad, their time is more precious.
Mobile Cafes would be competing with fast food restaurants on campus, provided they are within easy reach of the customer. Vending machines and cafeterias at school or company can also be competitors. These consumers are looking for quick, affordable, high-quality refreshment that they can use to get back to work, school, or any other activity.
Mobile Cafes will compete with all other vendors that are licensed to sell refreshments at festivals and fairs. People attending such events are prepared to pay a higher price for a better product.
Why Us?
The Daily Perc offers the best in hot and chilled beverages. We specialize in specialty coffees, blended and other customized drinks. TDP also offers soft drinks, freshly baked pastries, and other confections. TDP will occasionally add hot apple cider to hot chocolate and frozen coffees.
Expectations
Forecast
The Daily Perc’s financial picture is quite promising. TDP operates a cash-based business so the initial cost is much lower than other start-ups. TDP realizes that the process is labor intensive. The financial investment in its employees will be one of the greatest differentiators between it and TDP’s competition. Facilities and equipment must be financed in order to qualify for this pro-forma. These items are capital expenses and can be financed. To keep the product fresh and take advantage of price drops when they occur, there will be very little inventory.
The Daily Perc anticipates a combination of investment and long term financing.
The ability to finance it without the need of additional equity or borrowing investment. This will mean growing a bit more slowly than might be otherwise possible, but it will be a solid, financially sound growth based on customer request and product demand.
Financial Highlights per Year
Financing Required
Planned Invest
Partner 1 $20,000
Partner 2 $20,000
Partner 3 $20,000
Partner 4 $20,000
Partner 5 $20,000
Partner 6 $20,000
Partner 7 $20,200
Partner 8 $20.250
Partner 9 $20.250
Partner 10 $21,250
Total cost $221 995