Docstoc
EXCLUSIVE OFFER FOR DOCSTOC USERS
Try the all-new QuickBooks Online for FREE.  No credit card required.

ESPRESSO BUSINESS

Document Sample
 ESPRESSO BUSINESS Powered By Docstoc
					                        ESPRESSO BUSINESS
                         ”The Espresso Revolution”
The espresso revolution in the United States began in Seattle over 18 years ago. We saw
specialty coffee emerge from the coffee shop onto the streets with the advent of espresso
carts. Making espresso more easily accessible to customers led to the birth of the espresso
drive-thru. These operations began popping up around Seattle, especially in the suburbs
as busy commuters began to enjoy their early morning gourmet java.

As the espresso revolution spread south and east across the USA, it took root in
predominately metropolitan cities, most often in airports and coffee shops. It was just a
matter of time before this revolution would touch most towns and cities in America.

Burgess Enterprises has worked with numerous coffee companies, including Starbucks,
Seattle Best Coffee, Tully’s and Java Trading Company, along with many other smaller
roasters. These companies have helped many chain stores, hospitals, hotels, universities
and independent entrepreneurs establish profitable coffee programs and business.

Burgess has been instrumental in providing expert consultation, design and production of
carts and kiosk and drive-thrus, along with high quality espresso and granita equipment.

The specialty coffee business can be fun, exciting, and profitable if built on a foundation
of high quality, consistency, customer service and great equipment.


                            WHAT IS ESPRESSO?
Espresso is a form of coffee extraction, when properly made, the very best
essence, the volatile oils, are extracted for a strong, rich, smooth, never bitter
liquid. A quality espresso shot is achieved with the following variables:
   1.  The Proper Blend of Espresso Beans
   2.  Freshly Roasted Coffee
   3.  Freshly Ground Coffee
   4.  The Proper Grind
   5.  7-8 Grams of Ground Coffee doe a Single or 14-16 Grams for a Double
   6.  A Firm Tamp of 50lbs. of Pressure to the Packed Coffee
   7.  Water Pressure of 9-10 ATMs (130 P.S.I.)
   8.  Water Temperature of 192-197 Degrees
   9.  A Clean Machine
   10. Water Quality
   11. 25-30 Second Pour for ¾ to 1 ounce of Espresso Liquid
   12. The Finished Shot of Espresso Should Be Thick, Rich Caramel Color With Lots of
       Crema.
                               DRINK DEFINITIONS

RISTRETTO: Literally means “restricted” espresso. Made by stopping the machine
part way through the process. Servings are even thicker and more potent than basic
espresso and yield ½ to ¾ of an ounce of liquid.


DOPPIO: Literally means “double”. Technically, the same amount of water as a single,
but forced through twice the amount of grounds (14-16 grams). Most places here in
Seattle simply make a double serving. Any espresso drink can be made with a doppio.


SHORT: Usually served in an 8 oz. size cup.


TALL: Usually served in a 12 oz. size cup.


GRANDE: Usually served in a 16 oz. cup.


SKINNY: A term used for espresso drinks made with non-fat milk.


BREVE’: A term used for espresso drinks made with Half & Half, rather than whole,
2%, or non-fat milk.
CAPPUCCINO: Espresso blended with steamed milk and topped with mounds of
foamed milk. Proportions are about 1/3 coffee, 1/3 milk, and 1/3 foam. In America, the
drink may sport foam but no milk, and it is commonly served with a twist of orange or a
dusting of nutmeg. A dry cappuccino has more foam and less milk. A wet cappuccino
has more milk than foam.
**QUICK TIP: Non-fat milk produces the most foam.



MOCHA: Espresso blended with steamed milk and chocolate syrup, chocolate sauce or
steamed cocoa to make about one cup. Mochas are usually finished with a dollop of
whipped cream or milk foam.


AMERICANO: Espresso shots laid on top of very hot water to make an American size
“cup of coffee”.


LATTE: A shot or two of espresso blended with a cup or so of steamed milk. Some
places dress the latte with a thin layer of creamy milk foam.
FLAVORED LATTE: Add about one ounce of flavored syrup to accent a regular latte.


ICED LATTE: Espresso and cold milk poured over ice. Flavors can be added for an
iced mocha.


ITALIAN SODA: Cold soda water or mineral water poured over ice and flavored with
syrup.


ITALIAN CREAM SODA: Add a dash of Half & Half to a regular Italian Soda.


MACCHIATO: There are two versions that are both usually served in a clear glass to
show the swirled ingredients:
LATTE MACCHIATO is steamed milk “marked” with a spurt of espresso.
ESPRESSO MACCHIATO is espresso “marked” with a dollop of steamed milk.


STEAMER: Steamed milk usually flavored with a syrup such as vanilla or almond.


HOT CHOCOLATE: Steamed milk blended with chocolate and usually topped with
whipped cream.



                  COFFEE DRIVE-THRU BUSINESS
The coffee shop business is undergoing an evolutionary process. While some years ago
customers used the coffee houses mainly as “hang-out” places, where coffee drinks were
of secondary consideration, with the advent of coffee bars in business districts this began
to change.

Now, in many business districts throughout the country you may see lines of people
waiting in front of a Starbucks for as long as fifteen minutes to get their overpriced
morning “latte fix”. As more and more customers get familiar with espresso based drinks
all across the country and the demand grows, there is a great opportunity to satisfy that
demand with a drive-thru, in a more convenient way, with faster service, a better tasting
product and at a more reasonable price.

However, a drive-thru espresso stand is nothing but a convenient place to get a product
fast that the customer already knows and wants.
Therefore, the best place to locate a drive-thru espresso kiosk would be in a relatively
“espresso educated” market. But even if your area is “Espresso Challenged”, this can be
over come with the right kind of initial promotion, in the right kind of location, with great
visibility and easy access.

A drive-up is the ultimate state in the “espresso concept evolution”. Unlike an espresso
bar or coffee house, where people may go for other reasons than to drink coffee, it does
not offer any social setting or entertainment value; people drive up just for your product
and because it may be faster and more convenient than standing in line at Starbucks.

You should locate your drive-thru on the morning commute side of the road, with high
visibility, easy access and a sign that makes an offer hard to resist. The word “espresso”
by itself has little meaning to people that do not know what it is, and why should they go
out of their way to come to you if they are not “hooked” on it?

At the present time, the espresso drive-thru concept is in its infancy. But three to five
years from now, there will be thousands of these stands all over the country. They will
range from “Ma & Pa” small home-made trailers with a cart inside, where allowed, to full
size, double drive-thru “Fast-Food” type structures costing $300,000 or more.

Will you be one of them?


There is a tremendous opportunity for serious investors to create coffee drive-thru
concepts that combine an attractive design, good locations, proper equipment layout,
effective marketing, fast service and good tasting product.

Before you start planning a coffee drive-thru in your part of the country and see big $$$
signs, consider this:
     Many communities across the country won’t allow any kind of drive-thru.
     Should they allow a coffee drive-thru stand, they would require a restroom and
        full hook-ups: water, sewer, power etc. and will treat your operation like any other
        kind of fast food restaurant. This will discount the trailer type.
     If they allow a “trailer” type operation - like most of the existing drive-thru’s in
        the Northwest - they may require you to have a commissary nearby where you
        would service your trailer and use the restroom.
     So, before you start jumping for joy, determine whether or not you can do that in
        your community, and what kind of structure yours would need, a self contained
        trailer without restrooms or hook-ups, or a building with all the hook-ups and
        restroom. The difference between the two may be as much as $100,000 in
        opening cost.

Where to Start
1. Check with zoning, building and health department in your community. Explain
   to them what you would like to do. While here in the West drive-thru espresso stands
   have been in operation for some time, in other parts of the country they have no clue.
   Do not try to do it over the phone. They won’t understand what you are talking about.
   The best way to do it is by appointment. Take with you some pictures and interior
   layout plans so you can show them.

2. FIND A SPECIFIC LOCATION, TALK TO THE OWNER OR PROPERTY
   MANAGER. Without a location, you have no business. Nothing else matters
   unless you get a location where to put your stand. Try to secure a long term lease, at
   least three years with a renewal clause. If you take a short year to year lease and make
   the business a success, the owner of the property may thank you for developing a
   customer base for him and take over your business. It happens all the time! Again,
   you must have something to show the owner of the property.

In order to make the coffee drive-thru venture a success, the following factors must be
considered:

1. Site location - without a good location, you may have the best coffee in the world
   and fail! A good drive-thru location should be highly visible and easily accessible
   from a busy highway or street, and it should be positioned on the morning commute
   side.

2. Building design and signs - it must be striking and attractive, something that will
   attract attention and stand out from the nearby structures. Depending on need and
   size, it could have two serving windows and even some inside seating.
3. A large menu board that can easily be read by a second car in line or from at least 20
   feet.
4. Simple, basic item menu, emphasizing espresso based drinks, with reasonable
   prices. One thing is to pay premium price for a “latte” in a high-class coffee bar,
   where the customer may tie up a seat for 30 minutes or more, another altogether is to
   get your drink from a window and be on your way within a minute.
5. Proper equipment lay-out so as to be able to produce drinks fast and efficiently.
6. The owner/barista must be thoroughly trained in all phases of operation, with
   emphasis on fast and correct drink preparation techniques so as to keep the line
   moving.
7. Hundreds of other small details that one by one would not affect the business to a
   great degree, but when added up may make or break your business!

As compared to a conventional fast-food drive-thru operation, that may cost anywhere
from $400,000 to “sky is the limit”, an espresso drive-thru may range, fully equipped,
from around $35,000 for a basic 8’ x 16’ trailer, to a $100,000 or more for a full
blown 14’ x 25’ double drive-thru structure, with permanent utilities, restroom and
long term lease.

If you are the owner of a strip mall with a large parking lot or a gas station, you have a
great opportunity to make some real money with a coffee drive-thru by placing an
attractive kiosk for around $50,000. In a good location that investment may be recouped
in less than a year.

Depending on the location, appearance of the structure, marketing and the overall
understanding of the business, sales may range from $60,000 to $1,000,000 a year.

The best opportunity for a coffee drive-thru entrepreneur would be to find a “defunct” or
failing conventional fast food operation and covert it into a first rate espresso drive-thru.
Such a conversion could probable, be accomplished, including all the necessary
equipment, for around $40,000. Use the “Return on Investment Work Sheet” that I
have provided in this package.

Don’t waste your time and effort shopping or “researching” for equipment etc. unless
you have a specific location and are ready to sign your lease. What you need first is to
learn to understand this business so you prevent major mistakes and get started on the
right track

                           Coffee Shop Business Plan
A Business Plan is a description and projection of what you intend to do. A lender and/or
a landlord may require from you before they lend you any money or assign a lease.

A Coffee Shop Business Plan should have the following information.

   What do you intend to do and where?
   How much capital do you need to complete the project?
   Where will the money be allocated: How much for building out, equipment, furniture,
    etc.?
   How much do you project your sales to be the first month, first year?
   What will be your operating expenses?
   What kind of expertise do you have to plan, complete and operate such a business?
   If you don’t have the expertise, who will provide it and what are his/her
    qualifications?

In short, the lender wants to know whether you understand the coffee shop business, and
will the business generate enough revenues so you can meet all of your operating
expenses and pay them back.

Within the package of information that I will send you will be able to put together most
of your Business Plan. You will find the following information:

      “The Espresso Revolution”
      Preliminary Site Checklist
      Espresso Liquid Profit Potential
      Projected Profits Per Location
      Projected Profits for U.S. Shops
      Return on Investment Work Sheet

When looking at a location and after checking the traffic patterns, either foot or auto and
that traffic is moving in the correct direction with easy access and good visibility use the
figure of 1% of that traffic as your basic customer count. The example would be that the
street you have chosen for your drive-thru has 30,000 autos passing each and every day
and the heaviest traffic flow is in the morning you should attract about 300 cars per day.
Based upon that assumption and the fact that the average selling price of a espresso milk
based beverage sells for $3.00 you could count on approximately $900.00 a day in sales.
Keep in mind that your menu would attract even more sales thru pastries, ice beverages
including espressos (afternoon) which will increase your per capita spending. With just
100 customers purchasing one additional item (pastry) for an average price of $1.50 your
per capita spending has just increased to $3.50 from $3.00 or an additional $150.00
without increasing your efforts.


                            Business Plan Guidelines
The main purpose of a business plan is to convince a financial lender that you are a good
credit risk. In order to do this you need to display that you are well organized with a clear
step-by-step plan for success and the repayment of the loan.

Include:

    1. Vision – What is your business dream? What, where, when, who and how?

    2. Yourself – Who are you and what makes you uniquely qualified for this business?

    3. Resources – What do you need to help you fulfill your vision? Include expert
       consultation as well as property, personnel, buildings and equipment. Where are
       you going to find these people and get these items?

    4. Cost – What amount do you need for each of these items? What are your
       projected expenses per month over the next two years?

    5. Profit – What is your realistic projected profit per month over the next two years?

    6. Loan Repayment – What is your plan for the repayment of your loan?


                        Watch out for these mistakes!
What happens when people start a business without fully understanding what makes it
“tick”? Compared to any food related business, the espresso business is more lucrative
and the work environment more pleasant. However, as with any business, the
owner/operator must understand it in order to maximize it’s potential. To expect the
coffee or equipment supplier to teach you the coffee shop business is like to expect a
restaurant equipment salesman to teach you the restaurant business and how to be a great
chef!

Because the potential owners think that “there is no big deal” in opening a coffee shop, or
they are influenced and misguided by coffee roasters, equipment salespeople and
designers, or they hire “experienced help” from another shop, they end up with far less
profitable shops after having spent thousands of extra dollars. A majority of your future
mistakes can be prevented by talking to the right people, getting proper training and by
implementing an effective espresso marketing program.

There are many cases where an owner will spend upwards of $350,000 to open a coffee
shop all to have it close within weeks. With proper expertise in designing, marketing and
running of the business the owner could have put about $200,000 a year profits in his
pocket off $650,000 a year in sales. The reason most shops fail is because the new owner
is influenced by:

      An architect who has never spent a day of his life working behind a busy counter
       of a coffee shop and who designed a work environment that was awkward to work
       in.
      By an espresso machine salesman that convinced him that the machine was “it”,
       that by having it he would make the best drinks.
      By a coffee roaster who praised the purity and freshness of his coffee, who
       pushed on him dozens of his bean varieties, creating a menu that did not make any
       sense except to the roaster.
      By an “expert barista” who did not have a clue on hot to prepare drinks properly
       and efficiently and who did not have any “espresso marketing” sense.

Where was the equipment dealer that sold him his four-group $12,000 espresso
machine???

What kind of advice did he get from his coffee supplier or the “experienced barista” that
he hired away from the competition???

You won’t be able to prevent competition, but you could keep it at bay by creating a
loyal customer base. But you won’t be able to do that by serving lousy, overpriced
drinks with slow service, no matter how much money you paid the architect/designer to
build a monument to your ego. With proper functional design, menu and common sense
marketing combined with expert training and drink preparation techniques, such shops
could become true “jewels”, providing the customers with better product and service, and
awarding the owner greater income and satisfaction.

Many locations just off the freeway could be as well off on the moon! The only
prospective customers that notice the store are people that come to this location for some
other purpose than coffee. For the most part signs can not be noticed by cars zooming by
at 60 miles per hour. Unfortunately, strip malls may be good locations for destination
type stores, but coffee for the most part is an impulse item and for most people the act of
pulling off the road, even if they notice your sign is not worth their effort. Of course there
are exceptions to every rule, when you have a great visibility and very easy access and
they happen to see you when they need their “latte” fix.

“Free” training may not be free after all! When establishing a menu for a coffee shop,
remember that it is a “Coffee Shop” not a deli that just happens to sell espresso. How
many customers will you fail to attract to the espresso stand/store due to lack of effective
initial marketing? How many customers will walk out because of slow service due to
poor equipment layout? How much bigger is the payroll, food cost and how much smaller
are the profits due to the inability of positioning the business as a viable “coffee shop” in
an excellent location? And how long will you last in business should expert competition
open nearby? “Free training”, a banner and some promotional materials from a roaster
and equipment supplier may not be what you think it is. Just because it’s “Free” it doesn’t
mean that it is smart or has common sense.

One of the major mistakes is faulty drink preparation and techniques. Creating a menu
that is simple and makes sense and is large enough to be read from 20 feet away and with
proper guidance from the start from their coffee roaster and espresso equipment supplier
and hire an expert to implement the concept right, one could fulfill their goal of
increasing customer’s shopping experience increasing per capita spending resulting in
extra revenues.

Here are some basic steps to a successful opening!

      When naming your espresso store choose a name that will make sense to your
       customer. Your customers have an expectation, give it to them.
      An “espresso friendly and focused menu” that would allow you to sell mostly
       espresso based drink.
      An efficient design and equipment layout that would make a big difference in the
       speed of service.
      Properly prepared, faster served, better tasting drinks that would bring customers
       back for more.
      Hire some “expert” who has experience in design and operation of a coffee
       operation.
      Most owners do not understand the nature of this business. They think that if you
       have a good machine and expensive coffee beans, you will make it. Equipment
       and coffee have very little to do with the success of this business. Just look at
       some bagel, sandwich or so called “gourmet coffee shops” in the malls. Some of
       them have $12,000 brass and copper decorated machines and use $8.00 an lb
       coffee, and they only manage to sell dozens of cups per day instead of hundreds.
      Don’t expect “free” training either from the coffee supplier or the espresso
       machine distributor to teach you how to run a coffee shop operation. The coffee
       roaster and machine distributor can only teach you about their products not how
       to hire a staff, prepare a budget.
      Educate yourself through reading, video or seminars to learn how to “market your
       espresso business” so when introducing your business to a new area it will be well
       though out and make sense to your new customers.
      Don’t make the mistake of coping other shops without any sense or reason. When
       designing your shop don’t choose an architect who has never worked behind a
       busy espresso counter and has no clue on how to layout the equipment for speed
       and efficiency of the operation.

Espresso/coffee by the cup is a great business, with unlimited potential across the
country. It may provide you with a substantial income and personal satisfaction – but
only if you get enough education to conduct it properly!

If you want to minimize your mistakes and maximize your chances of success you must
understand what really drives this business.

One of the most effective ways to prevent the above mistakes and start on the right track
is by working with experienced people that “done that and been there”


                    “A Dozen Successful Ways to Keep
                        Your Business Profitable”
Location: If you don’t have an excellent one, sell and GET ONE! No other decision will
affect your business as strongly. Once you know how to run your business, you must seek
to maximize the potential volume of your location.

Product Quality & Consistency: The same excellent drink every time by any staff
member that works the bar. “You never get a second chance to make a first impression”.

Customer Service: This is a relationship-oriented business. Many believe that customer
service is the second most important success factor. The essence of customer service is
meeting needs and expectations.

Excellent Coffee & Equipment: Yes, this is different than product quality! Many
espresso bars make a “perfect” drink, but the taste is bad because of an inferior blend and
or roast of coffee. Buy high-quality, FRESH beans. Make sure that the espresso machine
you buy has fast recovery time and will product a quality product time after time and that
the grinder has sharp burrs for better grinding.

Ambiance (develop a concept): Do something to your bar/cart/drive-thru to make it
special. Customers enjoy a quality, original, clean and comfortable environment that
makes them feel welcome.

Financial Management: It’s not enough to get your sales up to $1,000 per day. You
have to learn hot to keep the profits through careful financial management.
“Name” Awareness & Reputation: Word of mouth is your best advertisement. Nothing
else even comes close! Keep your current customers coming back, and get out of your
shop/cart/drive-thru and go meet people and invite them to come visit you.

Employee Training & Mentoring: Model your values. Teach your employees about
coffee, customer service, sales, personal grooming, financial responsibility and respect
for self and others.

Coffee Knowledge: Cup coffee as often as possible; cup with your roaster, cup with your
employees, and cup with your customers! Your enthusiasm for the product will translate
into a greater respect for the product, a great knowledge of coffee and SALES.



Work Hard & Smart: Never stop selling! Don’t go into “cruise” mode, don’t relax. You
never have it made and never have enough. Never just be satisfied with your sales. Try to
grow the business every single day. At the end of the day, ask yourself, “what have I
done today to increase the value of my business?”

$1,000 latte: Every loyal customer is worth $1,000 a year. Don’t give your $1,000
customer a reason for trying someone else because you didn’t meet there needs or
expectations. Have you ever seen a car pull out of line because the line was too long?
You just lost $1,000 a year.

Stay Calm and Have Fun: Make sure you love your work and have passion for the
business! If your not having fun working hard in this business…for your own sake get
out!

                              Five Keys To Success

1.     Location, location, location
2.     Quality
3.     Consistency
4.     Customer Service
5.     Branding - Identity

If you are missing any of these components, chances are that your
business will fail within one year.
If you are not serving 300 cups of espresso per day, your chances of success are
minimized greatly.
If you are not working it yourself or a “hands on manager” and serving less than
300 cups of espresso per day your chances of failure increase ten fold.

If your business meets all the criteria you stand a good chance of making a great deal of
money.


                           What’s it going to Cost?

              Building: $100.00 per square foot to build.
              260 Square foot building                                       $26,000
              160 Square foot building                                       $16,000
              120 Square foot building                                       $12,000
               80 Square foot building                                       $ 8,000
Permits:                                                                     $500.00

                               EQUIPMENT
Espresso machines:
           2 groups                                                $3,500 - $8,500
           3 groups                                                $6,900 - $11,800
Grinders                                                           $ 700 - $1,000
Blenders                                                           $ 500 - $ 500
Granita    1 Barrel                                                $1,800 - $2,500
           2 Barrel                                                $2,000 - $3,000
PBS (Vita Mix)                                                     $2,500 - $2,500
Coffee Brewers                                                     $ 250 - $ 350
Air Pots                                                           $ 80 - $ 50

Cost anywhere from:                                             $15,330 $18,900

It’s going to take $40,000 to $50,000 to open a Drive-Thru espresso stand.
            Equipment and Startup Supplies
Major Equipment
Computerized Cash Register with additional Tape and Ribbon

Startup Supplies
Display Container (optional)

Display case(s) for Pastries
Condiment Display Case
Basket for Sugars
Napkin Dispenser
Straw Dispenser
Menu Stands

Small Wares

Rubber Floor Mat (7ft.)
Knock Box
Ice Chest
6 Steam Pitchers (VEV)
3 Thermometers for Steam Pitchers
Mixing Spoons (3)
Foam Spoon/Knife, Spatulas (3)
Ice Scoop
Can Opener/Bottle Opener
12 Shot Glasses (1 oz)
36 Syrup Spouts
Sanigel Lubricant
Cup Card Holder
Tip Jar

Advertising and Operational Supplies (optional)

Suitable Business Sing for the Cart
Menus
“Special” Board
Club Cards (Buy 10, get 1 Free)
Prepay Club Cads and “Get One Free” Cards
Gift Certificates

Miscellaneous Supplies

Uniforms or Aprons
Paper Products
8 oz. Hot Cups                               2
12 oz Hot Cups                               2
16 oz Hot Cups                               2
20 oz Hot Cups                               1 (600 per case)
8 oz Hot Cup Lids                            2
12/16 oz Hot Cup Lids                        2
14 oz Plastic Cold Cups                      1
16 oz Plastic Cold Cups                      2
20 oz Plastic Cold Cups                      2
24 oz Plastic Cold Cups                      1 (600 per case)
12/20 oz Cold Cup Flat Lids                  2
16/24 oz Cold Cup Flat Lids                  2
12/20 oz Cold Cup Dome Lids                  1
16/24 oz Cold Cup Dome Lids                  1
Napkins                                      1 case
Fat Red Straws (8 in)                        2 boxes
Skinny Pastel Straws (8 in)                  2 boxes
Stir Sticks                                  2 boxes
Drink Carry Trays                            2 packages

Consumables
       (estimated 4-week supply of coffee)
Regular Coffee                               100 lbs.
Decaffeinated Coffee                         10 lbs.
Milk (2% Nonfat, Whole)                      5 – 15 gallons/day
Whipping Cream, Half & Half                  1 qt each per day

Condiment
Sugar Packets                                1 Box
Bag of Sugar (for granita)                   25 lbs.
Sweet N Low                                  1 Box
Equal                                        1 Box

Other
Club Soda                                    2 cases

Syrups
Hershey’s Chocolate Syrup                    10 jugs w/pump
White Chocolate Sauce                        1 #10 Can
Flavored Syrups                              2-4 cases

Food Item Ideas (Optional)
Biscotti; Dillatante (Chocolate covered espresso beans); Muffins; Brownies; Cinnamon
Rolls; Bagels; Scones; Cookies; Coffee Cake
                    Preliminary Site Checklist
1.   Site Address: _______________________________________________________________
     City: _____________________________State: ______Zip: _________________________

2.   Landlord/Property Owner: __________________________________________________
        _______________________________________________________________________
        _______________________________________________________________________

3.   Municipal/Governing Authority: ______________________________________________
       ________________________________________________________________________
       ________________________________________________________________________

4.   Governing Building Authority: _______________________________________________
     Name: _____________________________________________________________________
     Address: ___________________________________________________________________
           _____________________________________________________________________
     Contact: ______________________________Phone: _______________________________
     E-mail: ______________________________Fax: ______________________________

5.   Governing Health Department: ________________________________________________
     Name: _____________________________________________________________________
     Address: ___________________________________________________________________
              ___________________________________________________________________
              ___________________________________________________________________
     Contact: ______________________________ Phone: _____________________________
     E-mail: _______________________________ Fax:    _____________________________

6.   Governing Zoning Department: _______________________________________________
     Name: _____________________________________________________________________
     Address: ___________________________________________________________________
              ___________________________________________________________________
              ___________________________________________________________________
     Contact: _______________________________ Phone: ______________________________
     E-mail: _______________________________ Fax:     ______________________________

7.   Department of Transportation: ________________________________________________
     Name: _____________________________________________________________________
     Address: ___________________________________________________________________
     Contact: _______________________________ Phone: ______________________________
     E-mail: ________________________________ Fax: _______________________________
     Number of cars per day: _____________ A.M. Hours: ____________________________
     Traffic flow A.M. Hours: _____________ P.M. Hours: ____________________________
     How many entries does the site have? __________________________________________
                           Preliminary Site Checklist, page 2
8.     Current Zoning Classification of Site: ____________________________________________

9.     Zoning Classification for Drive Thru Use: ________________________________________

10.    Is site approved for Drive Thru use without seating? _______________________________

11.     Are zoning variances required for proposed use of site? ____________________________
      If yes, what is the schedule and procedure? ________________________________________
         ___________________________________________________________________________

12.    Are there signage or building material limitations? _________________________________
       If yes, list limitations: __________________________________________________________
       _____________________________________________________________________________

DOCUMENTS OF REQUIREMENTS AND LIMITATIONS
13.    Is a building permit required? __________________________________________________

14.    Is a site improvement permit required? ___________________________________________

15.    Is a site improvement permit requited? __________________________________________
       Is review of building or site by an architectural review board or planning commission
       needed? ____________________________________________________________________
         If yes, what is the schedule and procedure?     ___________________________________
         __________________________________________________________________________

16.    What are signage restrictions by landlord and local government? ____________________
        ___________________________________________________________________________

      OBTAIN COPIES OF WRITTEN SINAGE REQUIREMENTS AND/OR
                          RESTRICTIONS
17.    A. Property site plan indicating: lot size, location on site, grades, adjacent site and roadway
       grade, below grade utility locations, location of access drives, location of traffic signals,
       parking locations and layout, adjacent building and uses, vacant land parcels and structures,
       location of site signage, location and specification of site lighting, landscaping.

        B. Photos of site and surrounding area. Views to include: photos from building location
        looking out 360 degree view, photo looking at site all directions, view to site from entry
        drives, mail thoroughfares on and off site.

18.    Site Utilities:
        A. Electrical service available: __________________________________________________
             Underground: __________________ Overhead: ________________________________
        B. Water service available: _____________________________________________________
        C. Sanitary Sewer available: ____________________________________________________
        D. Storm Sewer available: _____________________________________________________
                 Location! Location! Location!
Help your customer(s) locate the right place to start their
business.
This checklist is a good beginning for espresso business
planning.


Mobile Espresso Bar / Drive-Thru
Site Evaluation Checklist


1. Evaluate Site Characteristics
         ___ Traffic Count: Get the most recent information for frontage roads.
                    This is available at most municipality offices or the Dept. of
                                          Transportation.

      ___ Ingress/Egress: Identify access to site for primary traffic orientation.
          Note curb cuts, traffic flow on frontage road and on site.

      ___ Orientation: Identify traffic patterns of target demographic (typically AM
         commuter traffic)
          and determine if site conveniently intercepts target traffic.

      ___ Visibility: Determine primary traffic orientation and look for possible
         obstructions from
          that vantage point (buildings, trees, burms, etc.).

      ___ Queing/Stacking Lanes: Be certain there is ample room for stacking of
         drive-thru/walk-up
          traffic and convenient egress.

      ___ Competition: Identify other espresso/food service activities near site.

      ___ Site Diagram: Prepare diagram identifying above concerns.


2. Check with Zoning Department
      ___ Land Use: Check with municipality that property can be used for this type of
         business.

      ___ Show Design: Bring site diagram showing traffic flow, photographs and/or
         artist
          rendering if necessary to emphasize that your business will not create a
             liability, but will
          complement development.

      ___ Promote Quality: Present your project as a drive-thru kiosk - avoid terms
         such as
          “trailer” or “cart”. If mobility needs to be referenced, refer to the unit as a
             “mobile structure”
          or “modular kiosk that is transportable”.

      ___ Time Line: Ask when the approval can be expected.


3. Check with Health Department
      ___ Requirements / Application: Inform health dept. of your intentions, obtain
         list of
          requirements (commissary, proximity to restrooms, removal of gray water,
              etc.) and
          application.

      ___ Submit Application: Furnish health inspector with design, diagrams and
         photos /
          renderings of intended unit.

      ___ Time Line: Ask when the approval can be expected.


4 . Project Financial Impact
      ___ Startup Cost Analysis: Determine capital needs based on cost of intended
         unit,
          site improvements, equipment and components for core inventory (coffee,
              granita,
          beverage–related supplies, assorted bakery and miscellaneous sales items).

      ___ Financing Options: Determine options available for short and/or long-term
         financing.

      ___ Pro-forma Analysis: From research done (from similar businesses and
         competitors),
           generate a realistic average sales per customer that will be reliable input in
              sales profit
           forecasts. Determine if traffic available will support your investment.

       ___ Marketing Plan: Develop plan for first 30, 60 and 90 days of operation.

       ___ Secure Financing: Submit all necessary business plans and applications.


The team at Burgess Enterprises is ready to help you with any of your
espresso business needs. We’re partners in your success!

For more information, call us today at 800-927-3286
                    or visit our website at www.BurgessEnterprises.net

                      Health & Planning Department
Requirements

Since they will very with different jurisdictions, the specific requirements need to be
determined by gaining these from the proper authorities. This will be the customers
responsibility because they will have to submit an application to gain a permit for
business, but gaining knowledge of general requirements will prove beneficial.

   1. Usually a commissary or direct access to one (with a signed agreement from the
      commissary owner) is required.

             Normally a commissary consists of:
                  i. Fresh water supply
                 ii. A three compartment sink (for cleaning and sanitizing equipment)
                iii. A mop sink (for draining of waste water)
                iv. Dry storage
                 v. Bathroom facilities
                vi. Storage room for cart

             Normally onsite requirements include:
                vii. Fresh water supply or tanks
               viii. Hand sink with hot and cold water
                 ix. Refrigeration
                  x. Waste water tank

   2. Usually a schematic diagram of the cart and machine is required displaying the
      electrical and plumbing systems. (see sample diagram)
                                                 Espresso
                                           Liquid Profit Potential
The potential for excellent profits in espresso is great. However, it is easier said than done. Gone are
the days when you can profit because espresso was the “new” thin in town. Competition is fierce, with
espresso operations coming and going on a regular basis.
The key to success in establishing a growing espresso business is serving quality drinks that will delight your customers and
provide excellent customer service. It’s very important to realize that in order to gain significant profits a significant
investment must be made. Successful owners have made a commitment to quality. Quality coffee, quality equipment and
quality service are the keys. Without question the higher the quality, the greater the upfront investment.

You can buy cheap and save a buck today, but with that mentality you won’t reach your full profit potential. You might not
reach your 1st. anniversary.

We at Burgess are committed to your success! This is why we distribute the highest quality new and used equipment. We
stand ready to serve you with expertise gained from over 18 years in the espresso business. Our goal is to minimize your
headaches and maximize your profits!

                          Average price of drink                                $3.00
                          Average cost of coffee                                $0.40
                          (including milk, flavorings and cup)
                          Average profit per drink                              $2.60

       Drinks Per          Profit Per      Profit Per        Profit Per         Profit Per        Profit Per
        Day                 Day            Week               Month             Year              5 Years

        1                 $ 2.60            $18               $ 78              $ 936             $ 4,600

        5                 $13.00            $91               $390              $4,680            $23,400

        10                $26.00            $182              $780              $9.360            $46,800

        20                $52.00            $364              $1,560            $18,720           $93,600

        50                $130.00           $910              $3,900            $46,800           $229,000

        100               $260.00           $1820             $7,800            $93,600           $468,000

        150               $390.00           $2,730            $9,700            $140,400          $702,000

        200               $520.00           $3,640            $15,600           $187,200          $960,000

        300               $780.00           $5,460            $23,400           $280,000          $1,404,000

        400               $1,40.00          $7,280            $31,200           $374,400          $1,872,000

        500               $1,300.00         $9,100            $39,000           $468,000          $2,340
                    Return on Investment Work Sheet
Basic Investment:
       1.    Carts with options                                    $______________
       2.    Espresso Machines                                     $______________
       3.    Grinders                                              $______________
       4.    Granita Machines or Blenders                          $______________
       5.    Water Softener                                        $______________
       6.    Pastry Case or Display                                $______________
       7.    Coffee Brewers                                        $______________
       8.    Air Pots                                              $______________
       9.    Opening Supplies                                      $______________
       10.   Permits (building, health department)                 $______________
       11.   Building (cost, plumbing, electrical, installation)   $______________

               Initial Investment                                  $______________

Daily Sales:
       1.      Cups per day ______ X Average selling price $3.00 = $____________
       2.      Pastries per day ____ X Average selling price $1.50 = $____________
       3.      Blended Beverages ___ X Avg. selling price $3.00 = $____________
       4.      Cups of coffee per day ____X Avg. price      $2.00 = $____________
               TOTAL                                                 $____________
       5.      Daily Sales $ _______Divided daily customer count _____ = Per Capita
               Spending per customer per day $________.
       6.      Daily TOTAL X 30 days = $_________ monthly sales.

Return on Investment:
             Products                    Percentage = Cost          X 30 days
             Cost of Goods               0.14           $______     $_____
             Rent *                      0.044          $______     $_____
             Misc. Operational Expense 0.03             $______     $_____
             Wages (based on $8.00 ph) 0.228            $______     $_____
             Payroll Taxes               0.10           $______     $_____
             Advertising                 0.02           $______     $_____
             Business Taxes              0.04           $______     $_____
             Loan Payment **             0.024          $______     $_____
             Insurance                   0.02           $______     $_____
             Your Take Home***           0.3536         $______     $_____
             Monthly expenses                                       $_____
*     Under 300 cups a day rent will be approximately .07% above 300 cups per day
      approximately .044% based upon $1,000 per month.
**    Loan Payment based upon 60-month lease with 2 payments down and $75.00
      document fee.
*** You can reduce the Take Home by ____% and put that into a reserve account.

				
DOCUMENT INFO
Shared By:
Categories:
Stats:
views:96
posted:5/13/2010
language:English
pages:24