Operational Simple Feasibility Study

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Prepared by: [Your Name]

Date: September 24, 2050

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1. Introduction

• Objective: This study aims to evaluate the operational aspects of opening Java Haven, a cozy coffee shop located in downtown Riverside, to determine its feasibility and guide the planning process.

• Scope: The analysis will cover staffing requirements, supply chain logistics, necessary technology, and operational processes to ensure a successful launch.

2. Operational Requirements

• Location: The proposed location is at 123 Main St., Riverside, which features high foot traffic because of nearby offices, shops, and a university.

• Business Model: Java Haven will offer a diverse menu of specialty coffees, organic teas, artisanal pastries, and light snacks for dine-in, take-out, and online orders.

• Operating Hours:

  • Monday to Friday: 7 AM to 7 PM

  • Saturday and Sunday: 8 AM to 5 PM

3. Staffing Needs

Staffing Plan:

• Baristas: 3 full-time baristas (each averaging 40 hours/week) with a focus on customer engagement and product knowledge.

• Part-time staff: 2 part-time employees for peak hours (10 AM to 2 PM).

• Manager: 1 manager responsible for daily operations, staff scheduling, and inventory management.

Training: Implement a two-week training program covering barista skills, customer service, and food safety protocols.

4. Supply Chain Management

Suppliers:

• Local Coffee Roasters: Riverside Roastery for high-quality, ethically sourced coffee beans.

• Baked Goods: Riverside Bakery for fresh pastries delivered daily.

• Equipment Suppliers: Coffee equipment from BrewTech Supplies for brewing and blending needs.

Inventory Management: Use a cloud-based inventory management system to track stock levels in real time and automate reordering when levels fall below predetermined thresholds.

5. Technology Requirements

• Point of Sale (POS) System: A user-friendly system like Square for tracking sales, managing inventory, and generating daily sales reports.

• Wi-Fi: Offer free high-speed Wi-Fi to enhance customer experience and encourage longer visits.

• Online Ordering: Develop a user-friendly website with an integrated online ordering system for pickup and delivery through a mobile app.

6. Operational Processes

Customer Service:

• Establish SOPs for greeting customers, taking orders, and ensuring quick service during peak hours to maintain a welcoming atmosphere.

Food Safety and Hygiene:

• Implement a daily checklist for cleaning and sanitizing equipment, surfaces, and customer areas. Staff will receive food safety training to adhere to local health regulations.

Sales Tracking:

• Conduct weekly sales meetings to review performance metrics, analyze trends, and adjust staffing and inventory based on peak times.

7. Financial Considerations

A. Start-up Costs:

• Estimated start-up costs: $150,000, which includes $50,000 for equipment, $30,000 for renovations, $40,000 for initial inventory, and $30,000 for working capital.

B. Operational Costs:

• Monthly expenses:

  • Rent: $3,500

  • Utilities: $800

  • Payroll: $12,000

  • Supplies: $2,500

  • Miscellaneous: $1,000

C. Revenue Projections:

• Estimated daily sales of $500, resulting in monthly revenue of approximately $15,000.

8. Risk Assessment

A. Market Risks:

• Competition from established coffee shops and new entrants in the area.

• Mitigation Strategy: Develop a unique selling proposition focusing on quality, sustainability, and community engagement.

B. Operational Risks:

• Staff turnover may lead to service inconsistency.

• Mitigation Strategy: Offer competitive wages, a positive work environment, and employee incentives to promote retention.

C. Economic Risks:

• Economic downturns may affect discretionary spending.

• Mitigation Strategy: Implement loyalty programs and promotions to attract and retain customers.

9. Conclusion

Based on the analysis, opening Java Haven Coffee Shop in downtown Riverside is operationally feasible. The next steps involve creating a detailed business plan, securing funding, and finalizing the location before moving forward with the project.

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