Bistro Lounge: Business Plan Executive Summary Bistro Lounge is determined to be the best provider of organic herbal teas and coffees and homemade pastries and an enthusiastic supporter of local art and music and it will also serve as a place for business professionals to hold meetings in a relaxed environment. With a growing demand for tea and coffee beverage services and customized service, Bistro Lounge will target professionals in the downtown Huntsville area, University of Alabama-Huntsville students who need a place to study or who want to listen to or participate in live music, and tourists who enjoy the various museums downtown. Customers will enjoy the local culture while experiencing teas and coffees from around the world as well as homemade pastries and free wireless internet. Bistro Lounge will operate a building on the Northside Square with one large lounge room and two closed-off meeting rooms. The owner is pending on a five-year lease for the building and has provided 25% of the start-up costs. The other 75% will be obtained through a bank loan. The company is expected to be in the positive profit margin within a year of opening for business. Industry Analysis Tea and coffee shops in the United States experience annual growth of about 7% a year, proving they are becoming more and more popular. In fact, tea and coffee sales are among the fastest growing categories of drink sales. This rapidly expanding popularity exists because knowledgeable consumers and the younger generation brand tea and coffee as trendy and relevant in today’s society. Coffee represents 75% of all caffeine intake in the United States, and tea is a growing fad because of its advertised health benefits. Coffee is also relatively cheap to buy in bulk presently: the cost of coffee beans have plummeted since 2013 due to supply outsourcing demand, therefore representing little of stores’ expenses to provide service.
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- Fall '08
- Management, Bistro Lounge