The Daily Perc Business Plan

Assignment 6 The Daily Perc Business Plan 

Read the business plan for The Daily Perc Business Plan found at the end of your textbook on page 652.  Respond to the following questions below.   Students are expected to provide at least one paragraph (3-5 sentences) for each question.  Assignment is worth 20 points. 

1.   Describe the product (business concept) that is identified in the business plan under section 3.0 Products.  List 3 competitors.

The Daily Perc provides its patrons the finest hot and cold beverage, specializing in specialty coffee and custom blended teas. TDP offers select domestic soft drinks, Italian sodas, fresh-baked pastries and other confections. Seasonally, TDP will add beverages such as hot apple cider, hot chocolate, frozen coffees and more. TDP provides its via drive through facility, at one of the Mobile Cafes, Website or certain location, the ability to custom-order a beverage that will be blended to their exact specifications. The baristas will be trained in the fine art of brewing, blending and serving the highest quality hot and cold beverages with exceptional attention to detail. The Daily Perc’s primary competition will come from three sources:

·      National coffeehouses, such as Starbucks and Panera

·      Locally owned and operated cafes

·      Fast-food chains and convenience stores.

2.   Describe the current market(consumers) for this business idea. (Section 4.0) What does the market need?  Describe what is occurring in the industry that supports the business idea.  

TDP focus on two markets are commuter and captive consumer. The commuter consumer is someone in a motorized vehicle traveling from A to B. TDP will focus to attract them from heading or from work and their lunch breaks. Captive consumers include those who are tethered to a campus environment or to a restricted-entry environment where people’s schedules afford limited time to make purchases such as high school and colleges campuses where student has limited time between classes, and corporate campuses, where the same time constraints are involved.

The market made up of consumer who have busy schedules, a desire for quality, and adequate disposable income. The consumers have desire for uniquely blended beverage as they hurry through their busy lives. Nowadays, coffee consumers in the United States drink 450 million cups of coffee per day and spend $40 billion a year on a coffee based drink. The coffee industry in the U.S has grown rapidly in the U.S over last five years. Sales of specialty coffees sales have increased, with international brand such as Folgers, Maxwell House, and Safari coffee reporting higher sales and greater profits. The United States is the leading coffee-consuming nation in the world and the coffee industry is reaping the rewards. This condition supports this business idea.

3.   What is the projected sales forecast for Year 1?  Is the business projected to be profitable in the first year?

In the first year, TDP anticipate having two drive-through location in operation. The first location will open on July 15. The second one will open six months later. The Daily Perc is building in a few weeks of “ramp-up” time for each facility while commuters become familiar with its presence. The drive through will generate 288,000 checks in the first year.  TDP did not expect get profitable in the first year, they are developing their brand and product awareness. TDP expects revenues from this portion which will begin in the second fiscal year to reach as much as $3,000 per month in the third fiscal year.