The Dollar Coffee & Tea (TDCT) is a specialty beverage retailer. TDCT uses a system that is new to the beverage and food service industry to provide hot and cold beverages in a convenient and time-efficient way. TDCT provides its customers the ability to order their choice of a freshly brewed coffee & Tea, or other beverage. TDCT is offering a high-quality low cost option to consumers using public transportation (C-Train).
The Dollar Coffee & Tea offers its patrons the finest hot and cold beverages, specializing in specialty coffees, blended teas, and other custom drinks. Seasonally, TDCT will add beverages such as hot chocolate, frozen coffees, and more.
The Dollar Coffee & Tea will focus on two markets:
The Daily Commuter- someone traveling to/from work, out shopping, delivering goods or services, using the C-Train.
The Captive Consumer- someone who is in a restricted environment that does not allow convenient departure and return while searching for refreshments, or where refreshments stands are an integral part of the environment.
The Dollar Coffee & Tea will penetrate the commuter and captive consumer markets by deploying Kiosk facilities in the most logical and accessible locations in C Train stations. The Kiosk facilities are designed to handle traffic, specially ordered cups of premium coffees & teas in less time than required for a visit to the locally owned cafe or one of the big chains.
In addition to providing a quality product and an extensive menu of delicious items, to ensure customer awareness and loyalty, as well as good publicity coverage and media support, we will be donating up to 5% of revenue to local charities based upon customer choices.
The Dollar Coffee & Tea financial picture is quite promising. TDCT will operate a cash business, the initial cost is significantly less than many start-ups these days. The financial investment in its employees will be one of the greatest differentiators between it and TDCT competition. For the purpose of this pro-forma plan, the capital expenditures of facilities and equipment are financed. There will be minimum inventory on hand so as to keep the product fresh and to take advantage of price drops, when and if they should occur.
The Dollar Coffee & Tea chooses to become the high quality low cost version of beverage retailer between the C Train stations, because the locations will allow many stakeholders to benefits from this smart project ( C-Train, Charities, New Entrepreneur, Create jobs)
The Dollar Coffee & Tea has established two firm objectives it wishes to achieve in the next three years:
1. Be in all C-Train locations by the end of the third year.
2. Gross Margin of 45% or more.
The Dollar Coffee & Tea Mission is three-fold, with each being as integral to our success as the next.
• Product Mission - Provide customers the finest quality beverage in the most efficient time, Location & Low cost.
• Community Mission - Provide community support through customer involvement.
• Economic Mission - Operate and grow at a profitable rate through sound economic decisions.
• Keys to Success
There are four keys to success in this business, three of which are virtually the same as any food service business. It is our fourth key--the Community Mission--that will give us that extra measure of respect in the public eye.
• The greatest locations - visibility, high traffic pattern, convenient access.
• The best products - freshest coffee beans & Tea, cleanest equipment, premium serving containers, consistent flavor.
• The friendliest servers - cheerful, skilled, professional, articulate.
• The finest reputation - word-of-mouth advertising, promotion of our community mission of charitable giving.
• Company Summary
The Dollar Coffee & Tea is a specialty beverage retailer. TDCT uses a system that is new to the beverage and food service industry to provide hot and cold beverages in a convenient ,time-efficient way and low cost. TDCT is offering a high quality option for low cost.
• Company Ownership
The Dollar Coffee & Tea is for everyone who want to start his/her own business, young entrepreneur who want to be a part of the community growth. All owners of The Dollar Coffee & Tea have to pay a royalty fee of 5% to the franchisor.
The franchisee have to pay the cost and rent of the kiosk include the (equipment, products)
• Company Locations and Facilities
The Dollar Coffee & Tea will open its first facility on Somerset Bridlewood SW station . Six more facilities will be placed throughout the first year.
The demographic and physical requirements for location are:
• Traffic and busy stations.
• Stations with parking lots.
• Established retail shops in area.
The Dollar Coffee & Tea provides its patrons the finest hot and cold beverages, specializing in coffees and custom blended teas. In addition, Seasonally TDCT will add beverages such as hot chocolate, frozen coffees, and more. Only for one Dollar.
• Competitive Comparison
The Dollar Coffee & Tea considers itself to be a player in the retail coffee & Tea industry. Because of the locations, Quality, and Price
The Dollar Coffee & Tea primary competition will come from three sources:
1. Big Chain coffee houses such as Starbucks and Tim Hortons.
2. Locally owned and operated cafes.
3. Fast food chains and convenience stores.
Four things will make The Dollar Coffee & Tea stand out from all its competitors:
The TDCT will be providing products in the most convenient and efficient location and time. This separates TDCT from the competition in that its customers won't need to find a parking place, wait in a long line, TDCT customers can walk up, order their beverage, receive and pay for the beverage, and walk off.
The second differentiator is The Dollar Coffee & Tea focus on providing a significant benefit to the community through a possible 5% contribution to customer-identified charities, schools, or other institutions.
Third the Quality of the products as fair trade coffee beans and fair trade tea producer.
The last and most important competitive advantage the PRICE one dollar for a beverage.
• Future Products
As seasons change, The Dollar Coffee & Tea will be offering products that will enhance sales and satisfy its customers' desires. During summer months, TDCT will subsidize lower hot beverage sales with frozen coffee drinks, as well as ice tea, and other cold beverages. TDCT will also have special beverages during holiday seasons.
The TDCT primary desire will be to listen to its customers to ascertain what they are looking for most, and provide it.
• Market Growth
According to industry statistics, the consumption of coffee and tea products is growing rapidly. The largest national brand for retail coffee outlets achieved $19.16 billion in sales in 2015.
That is the coffee consumer market. The segment of that market we are targeting is the commuter and that number is increasing.
It is estimated that there are well over 333,800 using C Train to and from work each day in our market. Statistically, at least 50% of those are coffee drinkers. That gives The Dollar Coffee & Tea a significant daily target for its products. Those numbers are growing each year.
• Market Needs
Our market is made up of consumers who have busy schedules, a desire for quality, and 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 still have the desire for the uniquely blended beverage as they hurry through their busy lives.
• Industry Analysis
The coffee industry has grown by tremendous amounts in the Canada .Starbucks, the national leader, had revenues in fiscal 2015 of $19.16 billion.
Even general coffee sales have increased reporting higher sales and greater profits.
Calgary is definitely a coffee & tea drinking city and the coffee & tea industry is reaping the rewards.
When measuring head-to-head, direct competitors, we have found that there are none. The Dollar Coffee & Tea will be the first Kiosk coffee & Tea house in the C-Train area. However, there is still significant competition from traditional coffee houses and other retailers around the stations.
The Dollar Coffee & Tea knows that once it has entered the market and established a presence, others will try to follow. However, TDCT believes that the corporate missions and even the organizational design will be imitated, but never duplicated. TDCT will constantly evaluate its products, locations, service, and corporate missions to ensure that it remains a leader in the low cost beverage industry.
• Strategy and Implementation Summary
The Dollar Coffee & Tea will penetrate the commuter and captive consumer markets by deploying kiosk facilities in the most logical and accessible locations. The kiosk are designed to handle traffic and dispense customer-designed, specially ordered cups of specialty beverages in less time than required for a visit to the locally owned cafe or one of the big chains.
The Dollar Coffee & Tea has identified its market as busy people whose time is already at a premium, but desire a refreshing, high quality beverage for low cost while commuting to or from work or school.
In addition to providing a quality product and an extensive menu of delicious items, to ensure customer awareness and loyalty, as well as positive public and media support, The Dollar Coffee & Tea could be donating up to 5% of revenue from each cup sold in individual to the charities of the customers' choice.
• Strategy Pyramid
The Dollar Coffee & Tea strategy is to show people that TDCT has an excellent product, convenient accessibility, and with a community benefit. To execute on this strategy, TDCT is placing the kiosk Cafes at easily accessible locations throughout the C-Train area. TDCT is pricing its product competitively and training the production staff to be among the best Baristas in the country. Then, through coupons and display ads at the locations, TDCT will involve the customers in community support efforts by explaining that a portion of their purchase price will be donated to a charity of their choosing.
In so doing, TDCT has:
• Provided a customer with a quality product at a competitive price.
• Provided the customer with a more convenient method for obtaining their desired product.
• Demonstrated how TDCT appreciates their loyalty and patronage by donating money to their personal cause.
• Value Proposition
The kiosk cafes facilities provide a substantial value proposition in that the customer does not have to find a parking place, exit the vehicle, stand in line to order, wait for the beverages ahead of him to be produced, pay a premium price for average product, find a place to sit, clean up the previous patron's mess, then enjoy their coffee or tea ... assuming they have sufficient time to linger over the cup.
• Competitive Edge
The Dollar Coffee & Tea competitive edge is simple. TDCT provides a high quality product at a competitive price in a public transportation environment that saves time.
• Marketing Strategy
First and foremost, The Dollar Coffee & Tea will be placing its Kiosk facilities in locations of very high visibility and great ease of access. They will be located on high traffic commuter routes in order to catch customers going to or from work, or while they are out for lunch, or on a shopping expedition. The kiosk are very unique and eye-catching, which will be a branding feature of its own.
The Dollar Coffee & Tea will be implementing a low cost advertising/promotion campaign.
The Dollar Coffee & Tea will rely on building relationships with schools, charities and corporations to provide significant free publicity because of its community support program. By giving charitable contributions to these institutions, they will get the word out to their students/faculty/employees/partners about TDCT. Word of mouth has always proven to be the greatest advertising program a company can instill. In addition, the media will be more than willing to promote the charitable aspects of TDCT and provide the opportunity for more exposure every time TDCT writes a check to another organization.
• Distribution Strategy
The Dollar Coffee & Tea will locate kiosk facilities in high traffic stations of the city where it knows working commuters will be passing.
• Positioning Statement
For busy people whose time is already at a premium, but desire a refreshing, high quality beverage for low cost while commuting to or from work or school.
• Pricing Strategy
The Dollar Coffee & Tea pricing will be unbeaten to the competition with high quality products.
The Dollar Coffee & Tea Company philosophy is to build new business concept that benefit the City, Community, Consumers, Charities , New generation entrepreneurs .
Benefits of the TDCT:
• Generate new revenue to the C-Train.
• Create Jobs.
• Create opportunities for young entrepreneurs.
• Support charities .
• Introducing new business concept B2C ( Business To Community).
• Micro & Macro economical benefits for stakeholders.