Mr. v.d. Linden, Mr.Galama
The € 1 Snack Café will be formed in February 2010 as a GmbH, which is close to the Limited Liability Company. The first shop will be opened in the city of Munster in Germany. The € 1 Snack Café will offer convenience food and drinks for € 1 per product. Thisproject comes in response to the luck of customized student restaurant in the country in general and in the city of Munster in particular given that this city has the reputation of a student city. This business plan developed by three young entrepreneurs is the initial idea of an established entrepreneur whose support in collecting information has been determining. On completing the plan, theinitiator intends to implement it according to our recommendations.
This project comes in response to the luck of customized student restaurant in the country in general and in the city of Munster in particular given that this city has the reputation of a student city. To achieve its business purposes, the € 1 Snack Café has developed a unique concept: the unit cost for all product is € 1 and therestaurant works in the form of a self-service; in addition, customers are offered internet facilities as this service is directly related to their school and daily activities or hobbies. The business is at start-up level and due to the uniqueness of the concept, it needs to cut operating costs. Therefore, the company will recruit 6 students non-FTE on the basis of € 400 monthly payment.
As statedabove, the primary target group is the students of Munster. This choice of this target group is first based on their considerably big number – about 55.000 – and secondly, on their eating and buying habit.
Indeed, due to the hard cost of student life there is a tendency to buy less expensive food products. Moreover, student culture in Germany also includes buying and eating outside. These factsrepresent therefore an important business opportunity for the € 1 Snack Café.
To better exploit these opportunities, the business will focus on the start-up promotions and the environment in which the customers are welcome. Special offers will be made on the opening day, and other offers will follow during holidays and other low selling seasons.
Customers will also enjoy a wide range of assortmentas the € 1 Snack Café aims at differentiating from existing competitors.
Consequently, the business will select different suppliers with the lowest risks since the bargaining power of the suppliers in this industry is very low.
Several suppliers have already been contacted and their quotations are very suitable.
After estimating all costs, we can conclude on the financial aspects as follows:
-To finance the start-up costs, the initiator will invest € 65,000 from his own account. There is therefore no immediate need for a loan, and because the business is not buying a land or other operating premises, the start-up cost is therefore justified.
- For the first fiscal year, the net sales amount to € 641,800 with a forecasted net profit of € 29.459. This indicates a quick payback periodand a considerable return for shareholders. A deep market research has been conducted and a questionnaire to the potential customers was issued, which allowed us to make a more realistic sales forecast, depending on the actual favorable responses collected.
- The projected market share is 7%
- For the next 5 years, the company will grow by 1% annually.
The new business will be run by a 10 memberstaff among whom an shop manager who has a proven experience, and a assistance who will receive required training along with 6 non-FTE floor workers. This staff will also benefit from the long-time experience of the project initiator to run the € 1 Snack Café.
From the financial analyses and the marketing researches, the € 1 Snack Café has a lot of potentials and can easily be turned into a...