Capstone Course Project 85c Bakery Café Business Plan

Capstone Courseproject 85c Bakery Cafébusiness Planzihan Kong

Capstone Course Project “85c Bakery Café” Business Plan Zihan Kong 1 Agenda Main Business Idea Plan Problem Solution & Value Proposition Product Development Operating Model Operation Management Administrative Structure Target Consumers-Segments Market Analysis Competitive Challenge Business Model Branding Executive Summary Main Business Idea Plan: Expand new store in NYC and offering new meal plan and food delivery service in 2021. In, expand new service to all US stores. Products: Beverage & bakery Service: Food delivery Location: New York City in 2021. All US in 2022 and 2023 Price: Affordable Target: Young adults, busy workers, college students. 85C Bakery Cafe Problem Solution & Value Proposition New Yorkers have the longest average working week among the 30 major cities in the United States. Those people live in New York who cannot have enough time to enjoy their breakfast or lunch. Many people, especially young people, or young mothers, don't know how to match nutrition. Waste time in process of ordering. We offer customized (DIY) meal plans as weekly and monthly, also we hire professional nutritionist to design meals. Affordable price with high quality. We offer delivery service as weekly, or monthly depending on your meal plan. We have own storage warehouse and delivery system of raw materials to ensure every materials are fresh and non-reused. We offer both in-store and online service that save people ordering time. Product Development The company plans to open a new store in NYC and offer meal plan with food delivery service both online and in-store. Manufacturing & Sourcing (Supply Chain) Every raw material will be offered by our own warehouse directly from industry. The raw materials will be processed in the store. Sale directly to customers. Pricing: Bakery: $3-5, Drinks: $2.75 to $4.25. Delivery fee: Weekly plan - $7.99/week ($1.14 per day). Monthly plan - $17.99/month ($0.6 per day). Membership $9.99/Month $2.99/Week. Operating Model Inventory Management Order Material list Production Quality Assurance Safe production Partially Prepared Products/ Finished product Customer feedback In-store Shipment Project Management Before Launch Year 1 Year 2 Year 3 Hire and Training Employees: (managers, nutritionist, pastry makers, drivers). Advertising Jan.-March: Open new store and launch new service. Evaluation of operations and performance. Promotions for sale. Launch new service all over the US. Launch new products (food and drink). Negotiate cooperation with colleges and companies. Evaluation of operations April-June: Unit sold surpass 80,000. Promotions and evaluation of operations. Year 2: Unit sold surpass 2,000,000. Year 3: Unit sold surpass 2,000,000. July-Sep: Evaluate social media campaigns. Promotions. Launch seasonal products. Evaluate operations. Back-to-school campaigns with New York University. October-December: Total revenue surpass $1,500,000. Brand awareness increase 80%, reach 0.1 million customers. Feedback and evaluate. Get online and in-store feedback. Total revenue surpass $50,000,000. Growth rate increase 40%. Brand awareness increase 200%. Administrative Structure Location: New York City in 2020, and all over the US in next two years. Online and in-store. Legal Formation: A branch store of 85C Bakery. Management: Wu Cheng-Hsueh (CEO). Bakery Manager: Marissa Lopez. Supervisor: Ricky Avello. Director of HR: Rhea Manansala. Strategic Partners: US Food manufacturers, College Company in Manhattan, Nutritionist: Joel Fuhrman. Organization Chart: Administrative team includes Meal Nutritionist, Designer, Marketing, Production Manager, Logistics and Finance, Research. Demographics: Age 16-39 (students, young professionals, working moms). Medium income. Geographic: US city areas. Psychographics: Urban dwellers, price-performance focused, taste-oriented but price-sensitive, healthy & organized lifestyle, trend-chasers. Benefit: convenience, time-saving, high performance price ratio. Target Consumers-Segments: Persona 1 and Persona 2. Market Analysis of Bakery and Cafe Industry: Political environment is stable, with regulations on business licenses, sanitation, customer rights, and contracts. Market size in 2020: $11.1 billion, expected to decline slightly. Social trends: 8,920 bakery cafes in US, with 25% visiting weekly. Food delivery economy: projected revenue of $26 billion in 2020, CAGR 5.1%, with a growing trend towards online orders. Competition includes major stores like Starbucks and local bakeries, as well as food delivery apps like UberEats, DoorDash, Grubhub, and Postmates. Cost analysis and revenue projections show steady growth over three years, with profitability expected within this period. Branding emphasizes the standard of temperature control at 85°C, representing youth and fearlessness. Business model: B2C with bundling services; membership policy encourages customer loyalty. Funding requests target quick expansion and breakeven within year 1, profitability within year 3.

Paper For Above instruction

The expansion of 85c Bakery Café into the United States, particularly into the bustling market of New York City, represents a strategic move aimed at capturing the growing demand for fast, healthy, and convenient food options. This business plan details the comprehensive approach to launching a new store in NYC in 2021, extending services nationwide by 2023, and integrating modern food delivery solutions tailored to the busy urban demographic.

Introduction

In an era characterized by rapid urbanization and increasingly hectic lifestyles, consumers, especially young professionals and students, seek quick yet nutritious meal options. 85c Bakery Café’s business model, focusing on bakery products, beverages, customized meal plans, and efficient food delivery, aligns perfectly with these consumer needs. The goal is to establish a recognizable brand that resonates with the urban, health-conscious, and time-sensitive demographic, thereby fostering customer loyalty and expanding market share.

Main Business Idea and Expansion Plan

The core business idea involves opening a flagship store in New York City, with plans to roll out similar establishments across the US over subsequent years. The initial store will serve as a prototype, showcasing the brand's unique value proposition: high-quality, affordable bakery goods, innovative meal plans designed by professional nutritionists, and swift food delivery services. The dual-channel approach—physical and online—aims to reduce ordering time, improve customer accessibility, and increase sales volume.

Product and Service Development

The product offering includes bakery items priced between $3-5, beverages ranging from $2.75 to $4.25, and flexible meal plans with options for weekly and monthly subscriptions. These meal plans are tailored to individual nutritional needs, with professional nutritionists involved in meal design to boost health benefits and customer satisfaction. The supply chain incorporates raw materials sourced directly from industry warehouses, ensuring freshness and quality control. In-house processing and efficient inventory management support consistent product availability.

Operational Strategy and Management

The operational model emphasizes inventory management, quality assurance, and customer feedback integration. The company will employ a team of trained managers, nutritionists, pastry makers, and drivers to ensure smooth functioning. The launch phase involves targeted advertising campaigns, fostering cooperation with local colleges and companies, and meticulously evaluating operational performance at each step to optimize delivery and service quality.

Marketing and Promotional Tactics

The marketing plan leverages social media, influencer partnerships, and local campaigns to boost brand awareness. Promotions aligned with seasonal events, such as back-to-school campaigns with New York University, will generate buzz and attract new consumers. The ongoing social media campaigns aim to increase brand recognition by up to 200% over three years and reach a broader audience of urban dwellers interested in healthy, convenient foods.

Pricing Strategy and Revenue Projections

Pricing is carefully calibrated to balance affordability and quality, with bakery items priced between $3-5 and beverages slightly lower. Delivery fees are set at approximately $5-7, depending on the plan selected. Revenue projections indicate a steady growth, with unit sales surpassing 80,000 in the first year, and scaling to over 2 million units by the second and third years. The business expects to achieve breakeven within the first year and reach profitability within three years, driven by rapid store expansion and increased customer acquisition.

Target Market and Consumer Segmentation

The target demographics include urban consumers aged 16-39, especially students and young professionals with medium incomes, who value time-efficient, healthy, and high-quality food. Psychographic profiles show trend-conscious individuals seeking convenience and innovation. Personas identified include busy college students and young working moms who prioritize health and time-saving solutions.

Competitive Landscape and Challenges

While established competitors like Starbucks and local bakeries dominate the physical retail sector, the rise of food delivery apps such as UberEats and DoorDash offers significant indirect competition. Key challenges include maintaining product freshness in delivery, managing costs related to personnel and logistics, and gaining acceptance of innovative meal plans in a competitive food environment.

Market Analysis and Industry Trends

The bakery and cafe industry in the US is valued at over $11 billion, with a moderate growth trend despite a slight projected decline in 2020. Consumer preferences shift toward healthier options, and the online food delivery segment is experiencing rapid growth, projected to reach $32 billion by 2024. These trends favor a business that integrates quality bakery products with innovative delivery and meal plan services, catering to health-conscious and time-strapped individuals.

Financial Outlook and Investment Justification

Financial projections show robust growth, with revenues reaching over $50 million by Year 3, supported by aggressive expansion and marketing efforts. Investments will fund store setup, staff training, marketing campaigns, and technological infrastructure. The breakeven point is estimated within the first year, with significant profit margins expected as sales volume increases. Strategic partnerships with local colleges and food manufacturers further strengthen market penetration.

Conclusion

The strategic implementation of 85c Bakery Café’s new store in NYC, combined with innovative meal plans and efficient food delivery services, positions the brand to capitalize on current market trends and consumer preferences. Through targeted marketing, operational excellence, and thoughtful product offerings, this expansion aims to set a benchmark for healthy, convenient, and affordable bakery products in the US, ensuring sustainable growth and long-term profitability.

References

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