business plan - amil sabanadzovic
TRANSCRIPT
JASMINE
BUSINESS PLAN
<<Prepared by:AmilSabanadzovic>>
<<16.04.2014>>
Table of Contents
1. Executive Summary................................................................................................42. Company Description.............................................................................................8
Mission and Vision:.................................................................................................11Critical Success Factors:..........................................................................................11USP’s:.......................................................................................................................12Objectives and Targets:............................................................................................15
3. Industry & Market Analysis..................................................................................164. Marketing Strategy...............................................................................................23
Differentiation and Benefits.....................................................................................285. PEOPLE................................................................................................................31
General Manager......................................................................................................31Staff..........................................................................................................................32Cleaning...................................................................................................................33Accounting...............................................................................................................34Baker........................................................................................................................34Training....................................................................................................................35Management Organisational Chart...........................................................................36Wages & Annual Salaries........................................................................................37
6. Operations.............................................................................................................39Equipment................................................................................................................40
Oriental Glass Tea Set * 10..........................................................................................40Cost of Goods Sold for products (COGS)................................................................42Sales per Unit...........................................................................................................42COGS for target markets..........................................................................................43
7. Competitors...........................................................................................................44Primary Research 1: Tea Garden..............................................................................44Primary Research 2: Wall & Keogh.........................................................................46Primary Research 3: Clement & Pekoe....................................................................47
7. Financial Projections.............................................................................................50Oriental Glass Tea Set * 10..........................................................................................51
Sales Assumptions provided by unit, price segment................................................52Wages & Salaries.....................................................................................................54Unit margins and cost of goods sold........................................................................55The summary of unit sales for the three years..........................................................56OVERHEADS..........................................................................................................57
Breakdown of overhead costs..................................................................................58Net Profit..................................................................................................................59Funding Requirements.............................................................................................59Creditors/Debtors.....................................................................................................60Profit & Loss............................................................................................................60Cash Flow.................................................................................................................61
8. References.............................................................................................................62Secondary Research:................................................................................................62Marketing:................................................................................................................66Suppliers:..................................................................................................................67Competitors:.............................................................................................................68Staff:.........................................................................................................................69
9. Appendices............................................................................................................70Appendix 1...............................................................................................................70Appendix 2...............................................................................................................71Appendix 3...............................................................................................................72Appendix 4...............................................................................................................73Appendix 5...............................................................................................................75Appendix 6...............................................................................................................77
1. Executive Summary
Café Jasmine will be operating in the center of Dublin 2, Dawson Street. This café
though has many other strengths besides its location. This café is a place which will
provide a place of relaxation to its customers as well as enjoyment and an opportunity
to choose a hot beverage from a very large variety of offered teas and coffees. The
place will offer of course soft drinks as well but it is predicted that only a small
amount of people will buy them. To ensure that there is fresh pastry and cakes
available every day, there will be a chef working every day from 06.00-12.00. The
place will be decorated in oriental style and the whole unit will be refurbished as well
as its interior as it is does not satisfy the needs of this sort of café. The required
funding for the equipment would amount to a total of 19029 euros for while the
refurbishment and decorations would cost 17000 euros.
It will focus on offering their customers a large variety of coffees and especially teas
(over 30 types of tea) as well as pastry, oriental cakes and sandwiches from 12.00 to
18.00 every day. The café would have a goal of providing a unique, relaxing
atmosphere while offering unusual but tasty hot beverages in the same time which
offer health benefits. All the teas would be decaffeinated, organic and antioxidant
which would be one more unique selling point which would differ it from most of the
similar shops throughout the center of Dublin and beyond. Freshly made sandwiches
would also be made on a daily basis on every day except Monday when the chef
would not work but there would still be pastry and cakes offered. This place would
also have a relaxing scent which would have an effect of aromatherapy, meaning it
would have a relaxing effect on people and it was discovered that scents as these help
people with insomnia. (Lavender, 2014)
The center of Dublin is mostly occupied by traditional, Irish coffee shops which all
have a similar range of products to offer. This is the reason why cafés who offer
something different, some examples for unique types of coffee/tea shops are: Butler’s
Chocolate Café, Tea Garden and Clement & Pekoe. All three of these shops have
narrowed their target market but have done it successfully enough to become very
popular and amongst the most popular ones in the city center. As people are looking
more and more into experimenting and searching for products with health benefits,
Jasmine proves to be an ideal opportunity for a this type of café which offers both
(health benefits and unique products) in one shop. As there are not many cafés who
offer similar products and atmosphere, the manager should jump on this opportunity
and try to develop this business before other come to that idea.
Jasmine has identified two main primary targets and one secondary which is
important as well. Through observation of the most popular similar café’s, it has been
concluded that tourists are the main customers of such shops with local, working
people being second with a not so significantly lower sales percentage. The third
target market, students, are also a very important part of the sales and account for 20%
of the whole number of sales.
The marketing strategy would be developed in a way that it covers all three of these
target markets and attracts them. An official website, Facebook page, leaflets,
Opening event and advertising through a website which offers Insight and Leisure for
tourists which is globally very popular.
The staff would consist of 2 full-time waiters, 2 part-time waiters, cleaner, accountant,
pastry chef and the manager himself. The full time waiters would be working on 6
hour shifts per day as part time waiters would be working 4 hours on a daily basis.
The pastry chef would be first to arrive on the working place in order to make it
possible for the customers to enjoy fresh baked pastry and cakes every day. The two
workers which would be outsourced would be the cleaner (who would be working
only on Sundays) and the accountant (working only once per month).
In the table below, the products Jasmine will be offering as well as the cost of goods
sold per unit and margin per unit can be clearly seen. The margin for hot beverages
varies as the price of making a coffee and tea are not the same but both margins go
above 80%. For the cakes, pastry and sandwiches though, the margin would be almost
40% as the manager has identified that margin by conducting an interview with a
waitress in one of the main competitors, Wall & Keogh.
The next chart shows an increase of sales throughout the 3 years. The increase is
visible and the biggest jumps in every year are recorded either in month March, when
St. Patrick’s is celebrated and hundreds of thousands people come to visit the city or
in the other case through the summer months when also the number of tourists
increase. This seems pretty logical as tourists are identified as primary target market
and most of the products and atmosphere of the café is decorated in order to attract as
many of them as possible.
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec -
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
Year 1Year 2Year 3
Product COGS Per Unit in euros Margin Per Unit in euros
Soft Drink 0.42 2.38
Pastry & Cakes 0.99 2.51
Tea 0.66 3.33
Coffee 0.56 2.24
Sandwiches 1.30 2.70
The net profit, total sales and gross margin figures are summarized in the following
table:
The gross margin is set at 76% in all three years, while the net profit margin 5% in
year one and two and it increases by 4% amounting to 9% in the 3rd, final year. The
reason it stayed same in years one and two is simply because the general manager will
receive a 20000 euro annual salary while in the first year he will not receive it.
2. Company Description
Jasmine is an oriental tea/coffee shop that will be placed in 60 Dawson Street, Dublin
2. Dawson Street is located in the heart of South Dublin City Centre close to one of
Ireland’s premier retail streets, Grafton Street. The unit is close to the historic Trinity
College Campus and the Molly Malone Statue. Leading retailers in Dublin are also
located in the reaching distance. This street is a key tourist destination and the unit is
situated close to the tourist bus drop off point for the City Centre which will make the
café itself pop into their eyes as soon as they have left the bus and leave a picture in
their heads which will be hard to replicate after they are done visiting the attractions
of the city. This might make them come and visit the café after if they resisted coming
inside after the first time they saw it. The map below shows precisely the exact
location of the unit.
The interior of the unit would be decorated in an ancient oriental yet exotic style. The
interior of the café is mostly covered in glass what would allow the passengers to have
a good view and an assumption of what the atmosphere inside looks and feels like.
Jasmine would provide a contrast to most of the traditional Irish ones which seem to
be on every corner of the city center.
The manager’s friend, Semir Imamovic, who is an architect and currently working in
Bosnia, has projected 5 café’s already in Sarajevo. He has made a favor to the
manager and made a sketch of how the inside of the café would look like free of
charge. This is how it looks like:
The fact that it will offer over 20 types of teas (including traditional Irish teas) while
still having all the common types of coffee in its menu, will make it very hard to resist
to a lot of local people and especially the tourists. This oriental coffee/tea house will
have the purpose of creating an exotic and relaxing impact on the customers as soon
as they would enter it. It would have 7 employees including the general manager
himself. All 4 of the waiters who will be working will be obliged to wear a unique
outfit which will blend into the atmosphere. As pastry and cakes seem an ideal
combination with an exotic tea, the Pastry Chef of Jasmine would be first in the café
every morning to prepare and bake fresh pastry and cakes every single morning. Also,
the Pastry Chef would be in charge of baking fresh bread which would then be used
for making sandwiches by the waiters/waitress. Another thing specific for this place
will be the music and the scent inside. The music will be oriental and relaxing at a low
pitch as this would enable it for everyone to have a relaxing chat with their partners,
co-workers, family… As for the scent, there would be candles light throughout the
area to create a unique, enjoying and very comfortable dimension of its own that
differs from almost every single café or tea shop in the entire town.
An interesting fact is that out of the 10 best coffee shops in Ireland, 4 are located in
Dublin 2 what proves that this location is fruitful when it comes to customers
interested in hot beverages. (Irish Times, 2014) Three of the crucial points a coffee
shop needs to have in order to be successful and make profit according to an article in
Irish Times are: feed the eyes of the customers and passengers, differentiate yourself
and offer take-away as well. The fact that Jasmine would offer and fulfill all three of
these gives it a realistic chance to survive in the sea of café’s throughout Dublin.
The benefits offered by this tea shop could be looked at from several aspects. On one
side, there are the numerous health benefits on the consumers’ health when drinking
teas and coffees. When drinking organic and decaffeinated tea, according to herbalist
Marianne Beacon, we might get more benefit from a good organic tea than from a
vitamin pill. Elderberry Herbals "You’re getting the benefits of hydration. There’s the
social element: Tea is something that you can share with people. And when you’re
drinking herbal tea, you get aromatherapy at the same time—and that’s something you
don’t get from a tablet!” said Marianne Beacon.
As proven in University of Maryland Medical Centre, scientific evidence suggests
that aromatherapy may slow the activity of the nervous system, improve sleep quality,
promote relaxation, and lift mood in people suffering from sleep disorders.
(University of Maryland Medical Center) This type of atmosphere which would
Jasmine provide could be seen as ideal from the perspective of working people who
have just finished with their long and tiring shifts at work and this would prove to be
an ideal place for them to find peace, relax and enjoy the unique ambient with an
exotic cup of tea or a regular coffee perhaps if they are more of a traditional type of
person. As for the tourists, the health benefits plus the scent and music would offer a
benefit and an enjoyment in a one-of-a-kind café shop about which they would be
talking about after they returned to their country.
Mission and Vision:
- Mission of Jasmine would be to become the best known tea shop in the area
of Dublin 2 while maintaining the consumer satisfaction higher than 90%.
- Vision: Jasmine shop has the intention to change the way people look at tea
shops and offer them an experience to remember and enjoy from the moment
the customers enter the shop to the moment they leave.
Critical Success Factors:
- Equipment of the shop – as one of the USP’s of the café actually is the
atmosphere and interior of it, it is necessary that the café is well equipped and
unique as well.
- Funding – will be necessary for buying everything mentioned above as well as
trying to attract good, polite, educated and preferably multilingual employees.
Refurbishment will be made in the whole interior and decorations will be
bought to make the atmosphere complete and comfortable.
- Good marketing – making people realize that there will be a specific type of
tea house opening soon and what to expect from it. Through leaflets, a
Facebook page and a website, Jasmine will have a goal of gathering attention
from potential customers which would later on result in a word-of-mouth
spreading of the information and details about the café
- Location – the central location which café Jasmine possesses can be a crucial
point in the way to its success. As it is located 50 meters from Grafton Street,
one of the busiest streets in Dublin, is a huge factor because it will be very
visible and a huge number of passengers will be passing by it in almost every
part of the day. Trinity College is within distance as well as the Molly Malone
Statue what two of the things which attract most of the tourists who come to
Dublin. Leading retailers are also located within a couple of minutes from the
café and a bus stop is just across the café what is a tourist bus drop off point
for the City Centre.
- Research –without a quality research and information about the market, all the
above mentioned factors are irrelevant as they mean nothing if it cannot be
successfully implemented in a certain market focusing on certain target
markets. Through different reports and primary research, the manager should
be able to conclude if such a business is good and would it pay out over a
certain period of time.
USP’s:
The products Jasmine will be offering its customers will be primarily teas and coffee
but a large part of its sales will come from cakes and pastry as well. The exotic teas
and oriental sweet snacks they would be offering would prove as a mouth-watering
combination with which they can’t go wrong. But the unique selling points of Jasmine
wouldn’t entirely depend on its drinks and food but something much wider and
something that could only be described by the people who have visited that location
themselves and have been a part of the atmosphere. The primary USP’s of Jasmine
can be listed as:
- The first and most important point unique selling point is the exotic and the
diversity of over 20 types of teas in offer to their customers.
- Secondly, the relaxing and health-benefitting atmosphere and scent which
would overwhelm all the customers and leave a mark on them by offering
them this atmosphere which cannot be replicated.
- The location of Jasmine is something what other tea café’s throughout Dublin
seem to be missing. As most of them also provide different atmospheres and
hot beverages, they are usually located outside the center and not do not get
into tourists eyesight so easily (Tea Garden, Wall & Keogh) It is clearly seen
below (café will be placed in the unit circled with red colour) that Jasmine will
have a central yet very visible location with a bonus of its exterior being
covered in glass what would make it possible for the potential customers and
passengers to have a peak of the atmosphere and products this particular café
has to offer.
- Health benefits which would Jasmine offer through its teas which will all be
caffeine-free, refreshing and high in antioxidants as well.
- The fact that it will have a takeaway option as well. (Although many of
tea/coffee houses throughout offer this as well)
- Freshly made, healthy sandwiches made on a daily basis at a very low price at
4 euros.
Besides that, the demand for hot beverages is consistent during years in the Irish
market, as well as a strong interest in other hot products and innovations. Because of
the fact that Irish consumers are the leading in the number of consumed hot beverages
per day (Mintel, 2011), it will have two primary target markets in tourists and middle-
aged, working local people as well that seem to can’t go a day without such a product.
This means that the regularity of purchase and usage is always high although it may
not be the season of tourists in Dublin. It has been noted that although consumers may
be cutting back in many areas of expenditure, hot beverages continue to be viewed as
a necessity, or an affordable indulgence. (Mintel, 2011.)
The second most popular foodservice establishment that is visited by consumers is
cafés/coffee shops, with 60% of Irish consumers visiting these outlets. Cafés and
coffee shop visits are likely to be fuelled by morning and lunchtime visits, where
average spend per visit is around €4.50 (liminicoffee.co.uk, 2013), with
establishments relying on passing trade.
Objectives and Targets:
The next three years after its opening, the manager of Jasmine has set clear objectives
and targets to be reached in order for the manager and the employees as well to
maintain motivated and hungry for work. Although it is almost impossible it to
happen throughout the first year of its work, the manager will aim to come as close as
possible to achieve that goal with the help of his employees, suppliers and a good
marketing plan as well. It’s target is that after the first three years of opening, Jasmine
averages 40-50 satisfied customers on an hourly basis. The main and ultimate
objective would to become the most famous and popular exotic tea house in the area
of Dublin 2 and Dublin 1. As Tea Garden is one of the leading tea shops across
Dublin, the objective would be achieved if Jasmine would manage to achieve to have
over 100,000 tourist customers who visit the shop one year after it has opened.
(Observation, Primary Research, 2014)
3. Industry & Market Analysis
Throughout the last few years, the café and bar industry in Ireland did not seem to be
rising in revenue according to a report by Euromonitor. High costs, mainly the rent,
represented the number one problem for becoming profitable in this market as the
landlords refuse to let or sell their units for a low price which often results in
incapability of the company to be profitable at the end of the year. Another factor is
the large competition, as Insomnia is leading in sales since 2011, Starbucks is keeping
track on them and is not lagging much in sales and then there are other, smaller café’s
as Bewleys which also cover a significant part of the hot beverages market in Dublin
(Euromonitor, 2012). As all the above three mentioned coffee shops and chains are
the traditional ones, Dublin seems to be lagging in creativity and differentiation as
there is a very limited amount of café and tea shops which offer something exotic, and
even something unusual in a positive way what would differ from all the traditional
coffees and teas offered throughout Dublin.
As the most recent studies and reports show, the Ireland market for hot beverages is
set to grow by 16% in value terms, from a forecast €221.2 million in 2011, to a
predicted €257.3 million for 2015. (Euromonitor, 2012) The reason for such a growth
in this segment is driven by price decreases, new shops entering the market and an
increase in the amount of frequency such products are purchased. All hot beverages
are set to show growth up to at least 2015. (Euromonitor, 2012)
As stated in the report, growth is most likely to occur in segments which include
Specialty (the interest in decaffeinated, fruit, green and specialty teas) have reported a
huge rise in interest during the last couple of years. As the specialty of café Jasmine in
fact would be exotic teas and a large variety of coffees this seems to be a perfect for
time to start such a business in a market which is anticipating for a café with such
product diversity and range to fulfill their needs and give them health benefits in the
same time. All the teas which Jasmine will be offering are caffeine-free
(decaffeinated), refreshing and high in antioxidants as well.
(https://www.exoticteapot.co.uk/, 2014)
According to Mintel’s report: “health is one of the top concerns among the Irish
population, with approximately four in every ten consumers concerned about their
health”. This is another fact that indicates that the decaffeinated, high in antioxidants
teas which would be offered as well as decaffeinated tea, would be a hit and
something that not only tourists would be interested in but the Irish population as
well. Besides the hot beverage, the scent of the inside of the café would act as an
aromatherapy which is beneficial in relaxing and helpful for people dealing with
insomnia. (University of Maryland Medical Centre, 2013)
In 2009, it was estimated that 82% of the coffee shops in Ireland were chain outlets.
Also, these chains of coffee shops usually have double the amount of average sales in
comparison to independent coffee shops. (Bordbia, 2009) While in the other hand, it
is recorded that the number of coffee shops has doubled in the period from 2003 to
2008. (Mintel, 2011)
Socializing in the form of drinking a cup of coffee or tea outside with friends and/or
family plays a significant role of the lifestyle in Ireland but due to recent economic
recession some in almost whole Europe the spending amount on this type and part of
lifestyle has decreased but has been starting to stabilize again in the last year. This has
happened due to the rise of economy and the better GDP in the Republic of Ireland
between 2011 and 2012.
According to a report in Euromonitor, it is forecasted that within the year 2016 that
the value of compound annual growth rate will be -2% what would result in the fall of
sales. Besides this statistic, there is still an enormous amount of people who are
interested in the coffee shop culture and prefer drinking coffees and teas outside of
their homes with different types of company. It has been estimated that six in ten Irish
consumers in the year 2008 visit these coffee shops/cafes regularly (Mintel, 2011).
A study was conducted by Boardbia where 1000 coffee drinking consumers were
examined. The study showed that 1 in 4 consumers are drinking more coffee at home
than in the previous year. This fact was even more obvious and visible with the
younger consumers. The quality of the coffee itself seemed to play a huge factor in
will the customers come back at the place where they have previously tried the coffee.
Another interesting fact was that experimentation was recorded to be very popular as
62% of the consumers said that they “love to try new types of coffee”. To conclude
this study, 74% of consumers said that “coffee is one of life’s great pleasures”.
(Bordbia, 2011) The last statement proves that coffee plays a very important role in
people’s lives at least in the part of satisfying their needs and giving them a daily
pleasure.
Since July 1st 2011, a reduced VAT rate came into power and is considered to stay the
same until 31st December 2013, whereas it will be reviewed once more at that date.
The new VAT rate is 9% and it goes onto all supplies and services when taking into
consideration hot drinks (such as coffee and tea products) or catering services. This is
a positive influence to the café industry, but also this VAT may still be slightly
reduced once it is reviewed after the mentioned date (RTE, 2011).
According to Central Statistics Office, a 6.7% increase of people travelled to Ireland
has been recorded in the period of the three months to the end of August. An
astonishing number of 2.26 tourists have been recorded throughout that short period.
The most significant increase during that time has been from the residents of North
America whose number grew for 19.9% in comparison to year 2012. The number of
British residents visiting Ireland has also increased and residents from European
countries as well but not so significantly. Nearly two million of those have come
from Britain, 1.7 million from the rest of Europe and over 800,000 from North
America. (www.RTE.ie., 2013)
So, as the number of tourists visiting Ireland has slowly but steadily been increasing
from 2010 to 2013, this will prove to be a good argument for opening a café shop as
Jasmine so there is a larger group of people (tourists) to target and try to attract to the
magic that this café has to offer them. The number of tourists rising and the fact that
the global recession is in decline and the economy has been growing give
encouragement for opening such a business in a tourist-attracting city as Dublin.
The tourists and the Irish people will not be targeted in the same way as they both
come with different mindsets and criteria when trying to find an ideal place for a cup
of tea or coffee. (Irish Times, 2014) For the Irish people, there are 5 steps which will
be followed:
a) The coffee is very important – having a good coffee is essential for getting
loyal customers as the place alone and the atmosphere might not be enough to
make them come again if they did not like the coffee. As there is a possibility
to get a cup of coffee on every corner of Dublin, it is vital to serve good
quality coffee which differentiates in a good way from the rest.
b) Feed their eyes first – the thing that leaves the first impression and leaves a
mark on the people is the look and exterior of the café shop. The good thing is
that Jasmine’s exterior will be mostly covered in glass and that will enable the
passengers to get a glance of the interior, products offered and make them
wonder of the atmosphere itself inside.
c) Differentiate yourself – as Jasmine already has many USP’s, the manager and
the rest of the team have to work on translating the USP’s to people and
reaching as many people out there. The atmosphere, various teas and cakes
with the location it possesses makes it unique in the center of Dublin.
d) Marketing – leaflets, website, Facebook page, opening event will all be used in
the first month in order to increase the awareness and interest people in the
new café shop in the center of Dublin which seems to offer so much while
managing to be different while keeping their prices pretty low for such a
location and products offered.
The graph above clearly shows that in 2011 tea and coffee combined for 90% share of
the hot beverages market. (Mintel, 2011) As middle-aged Irish working people will be
the second most important target market, there is more than enough evidence why a
lot of money should be expected to come from them. Research from the Centre for the
Promotion of Imports from developing countries for June 2009 noted that Ireland has
one of the highest levels of tea consumption per capita in the world which indicates
that almost 90% of Irish consumers drink tea with an average consumption of an
astonishing four cups of tea per every day. As it seems to be the nation’s favourite
drink, the value of market for tea consumption in-home is predicted to demonstrate
continual growth for the foreseeable future, with an increase of just under 18%
between 2011 and 2015. (Mintel, 2011)
This is very significant and important for opening such a café/tea house in the center
of Dublin as it will offer a large variety of exotic and unusual teas which the
consumers might not be able to find on any other place in Dublin. This could be a
reason for attracting the people who live and work in Dublin and making them loyal
to the shop as they would have no other option if they would want the specific type of
tea that no one else would have to offer. Besides being one of the highest-consuming
nations of tea per capita, there is also a high and consistent demand in other hot
beverage products and innovations in the Irish market. Irish consumers have become
more accustomed to the coffee culture lifestyle.
As mentioned previously, tourists will be targeted and attracted in some different
ways in comparison to the Irish people. Firstly, the location itself offers an attraction
for the tourists as it is literally a minute away from one of the busiest streets in
Dublin, Grafton Street. The second thing is that it is located across the bus stop where
tourists are dropped off what will make them see the café even though they didn’t
maybe plan so. As the café will mostly be covered in glass from outside, this will
enable the tourists to have a look at the atmosphere and products inside what might
interest them to have a cup of tea/coffee, a cake/pastry or perhaps both. The thing
Jasmine’s manager will also be aiming to achieve is to become one of the most
famous “unusual and exotic” tea/coffee shops in Dublin what would mean that by
word of mouth, people would be suggesting this place to tourists if they asked them
for something similar to visit for a cup of tea/coffee or snack. This task couldn’t be
achieved in throughout the first year but would be crucial for the business to sustain
and continue to work in profit in the year 2 and 3.
Besides tourists, Grafton Street and the Temple Bar area which are within 5 minutes
both from the Jasmine, are also very popular with students. Especially the foreign
students which come either on exchange for a semester or two or the ones who decide
to live and study here during their whole education on college. Also, the fact that
Trinity College is within a couple of minutes of walking distance, this proves to be a
bonus for the cafe as it will be located very close to one of the most popular and
biggest colleges in whole Ireland. Although it is not expected from students to be as
repetitive as tourists or local people as most of them are on a budget, this could prove
to be a great place for them while working on projects, reading or just having a
relaxing and enjoying cup of tea or coffee with their friends. The ratio of tourists
compared to the foreign students who came to study was 1 towards 9, meaning that
out of all tourists that came to Dublin in the 2000s, students covered 10% of it.
The graph above also shows that the number of foreign students coming to Ireland
and in particular Dublin is increasing on a yearly basis. The reason behind that are the
prestigious Colleges throughout whole Ireland and Dublin which are getting more and
more acknowledgment in the world what attracts students from the whole world to
come and study here.
As marketing is crucial for the development and putting a mark in the industry,
especially if you are a new company/shop, the manager of Jasmine will be investing
on multiple fronts regarding marketing. Marketing of this new café, located in
Dawson Street, will be most visible and noticeable in the first months of its opening
as well as a month prior to the opening.
4. Marketing Strategy
The overall marketing strategy of Jasmine will be based and orientated on
communicating its product diversity, product benefits and of course its atmosphere
which cannot be replicated. The unique type of relaxing, peaceful yet exotic
atmosphere offered to its customers with a cup of tea/coffee and a cake/pastry would
provide a special place for resting their minds and bodies as well. Jasmine will aim to
differentiate from other regular coffee shops throughout Dublin putting an emphasis
on its atmosphere and products (especially the benefits and large variety of teas
offered to the customers). The whole idea of the marketing plan would be based on
opening the eyes of the passengers, tourists and local tea-lovers that a new coffee/tea
shop has opened in the center of Dublin which seems and promises to offer more and
better than their competitors surrounding it.
Multiple methods will be conducted to trigger and attract many different segments of
the market. As noticed through primary research, that is observing the main
competitors, it has been clearly recognized that the target markets for such a type of
café consist from three markets: tourists, locals/working middle-aged people and
students. The reason for targeting these three segments is clear, all of Jasmine’s main
competitors were observed and the outcome by target segments looked like this:
-Wall & Keogh: 1st target market - tourists, 2nd - locals, 3rd - students;
-Tea Garden: 1st target market - tourists, 2nd - locals, 3rd - students;
-Clement & Pekoe: 1st target market - locals, 2nd tourists, 3rd - students.
The table above clearly shows the target segments which are leading in the main 3
competitors of Jasmine. The only café whose sales aren’t leaded by tourists is café
Clement & Pekoe. This café has a central location but unlike the other two, it offers
more of an Irish atmosphere and a place where working people often meet and enjoy a
talk. The similarity between it and Jasmine is that both offer a large variety of
different teas and pastry as well. Unlike Clement & Pekoe, café Jasmine “has in
mind” making tourists their primary target market as Wall & Keogh and Tea Garden
have done also and have locals and working people on the second place but hopefully
not much behind the tourists in the number of sales.
As there are three clear target customers outlined, it is crucial that each target is
communicated to in a different way and reached so it can give the café a good start
which will then hopefully develop and increase in the number of customers and sale
in each next year.
Dawson Street is located in the heart of South Dublin City Centre close to one of
Ireland’s premier retail streets, Grafton Street. The cafe is in near distance to the
historic Trinity College Campus and the Molly Malone Statue which are one of the
main attractions in this part of Dublin.
As they are going to be the primary target, different ways of communication will be
implemented with them. With the bus station where tourists are dropped off being
exactly across the bus station, the location and placement of the café itself will prove
to play a big role and ease of the communication with the tourists. This said, the
tourists will be having direct eye contact whether they want it or not after leaving the
bus and if they like what they see through the glass of Jasmine, there will not be a
better and easier way to attract and dare them to try the specialties offered to them. In
contrast to all the pubs, nightclubs and Irish café’s through Grafton Street and the area
of Temple Bar, Jasmine will be breathing with different energy and atmosphere which
could be seen through the glass. While inside, the music, scent, and products
themselves would take them on a new level of satisfaction and relaxation.
Another way of promoting and advertising the café to tourists as well as to the locals
would be through leaflets. The leaflets would be A6 dimensions and there would be
40000 of them printed at a price of 191.5 euros (Onlineprinters.ie. 2014). The process
of handing out leaflets to random passengers (except teenagers) would be ongoing for
the first two months. Meaning, 20000 per both of the first two months would be dealt
out, summing up to approximately 4500 per week. Assuming that 1000 of leaflets can
be dealt out for 2 hours, the people who will be paid for this short and easy job will be
working 3 days per week and will be earning 15 euros per hour. To make this job
faster and more interesting for the ones working on it, two people will be dealing
leaflets at the same time which would then require only 4 hours per person three days
per week earning them 60 euros per week for only 4 hours of effective work. For the
whole project with the leaflets, each of the two persons would earn them 540 euros
each for as little as 36 hours all together. This type of job would be ideal for students
as it only requires 4 hours per week.
The same method using leaflets will be used during years 2 and 3 but will not be
conducted in the same month (January). The reason behind the changing of the month
is that during summer, the number of tourists is the highest throughout the whole year
so by this type of advertising tourists who don't know for Jasmine will be targeted and
given information and insight of what this cafe has to offer to them.
Using this method, local people are more likely to be targeted as they will be spread
throughout the first two months of work which are January and February which are
not the two most popular months regarding the number of tourists visiting Ireland and
Dublin in particular. Using the USP’s and the health benefits the products would offer
which would be written on the leaflet, local and working people would be aimed and
attracted with the main goal of making them loyal visitors and customers as well of
the Jasmine café.
Another way through all the three market segments would be aimed at and given
information about the café would be by making a website. The manager decided to
take the Premium offer from http://websitedublin.com/pricing-and-buy.php as that
way staff could focus on their jobs and leave the computer experts the part of handling
the website and decorating it. As it can be seen below, the Premium offer includes
training in the price which the manager would attend so he can gain adequate
knowledge to handle the website himself later on.
This sort of marketing would be the best and most used by locals and students, the
reason for that is because many people would want to check the website after they
have heard about the café either through leaflets or by their friends/family… Here,
they will be able to find the menu and prices of the products as well as pictures of
how the café looks like and some interesting facts on the health benefits the scent and
teas have on their health.
Through the following site http://iwml.com/netincludes/advertising_members.php,
Jasmine’s manager will be looking to advertise the café and invest big as this network
attracts visitors from both Ireland (32%) & abroad (68%) and provides an unequalled
advertising medium for major brands, tour operators, the accommodation sector,
visitor attractions, sport, festivals and events. This Insight Network for tourism and
leisure shows more than 30 million of AdViews per year in 15 zones maximum, this
network is dedicated to promotion of Ireland as a destination and the attractions it
possesses which might be interesting for the tourists, one of the destinations and
café’s advertised will be Jasmine as well. The manager has decided to go with this
type of advertising throughout the whole first year with a Banner 468×60 which is the
largest available and in 4-6 zones offered.
The Facebook page which would also be included in one of the ways of marketing
would be mostly made in order to interact with the students. An interesting fact is that
Irish are the biggest Facebook users in English-speaking world. (Independent.ie,
2014) Out of the 2.25 million people using Facebook every month in Ireland, most of
them are teenagers and students. This is why the manager has decided to make a
Facebook page as well and give some information and photos of what Jasmine café
has to offer to them.
Emil Hajric, a close friend of the manager Amil is a programmer and has accepted to
make the Facebook page free of charge which the manager will later on update from
time to time and try to entertain the users of Facebook in Ireland.
Last but not least, there would be a special event on the opening day where everyone
would be able to try the hot beverages and pastry/cakes for free. The café would open
at 12 a.m. and work until 8 p.m.. It would open two hours later then it usually will as
to enable the preparation and the projected maximum amount of money spent on this
event is a projected 1500 euros. The manager will be working throughout the whole
event without a break as it is expected that a very large number of people come and
try the products offered for free so it is important that there is as much help to staff as
possible so there wouldn’t be any unpleasant situations and too much waiting.
The manager, AmilSabanadzovic, will take full responsibility and will do marketing
as a part of his every-day job and will do a lot of preparation before the café has
actually opened. Many things as decorating leaflets, websites, the Facebook page will
be left to more skilled people in those segments and experts but the manager will
decide when should which type of marketing be applied and which segments should
be targeted in what period of time. The manager has adequate knowledge as he had
Marketing subject in both of his first years of Bachelor studies.
Differentiation and Benefits
The café and its products will differentiate from almost every single one café
throughout Dublin except its 3 competitors from which only one has similar products
and atmosphere. That café is Tea Garden, although it has a lot of similarities with
Jasmine, Tea Garden’s location is one of its weaknesses as it the fact that it is allowed
to smoke shisha inside the café which can be pretty annoying as I have witnessed
through personal research. As for the other two competitors (Wall & Keogh and
Clement & Pekoe), although they offer similar products the atmosphere is completely
opposite. While these two offer a more Irish and modern interior and music with it,
Jasmine will have an exotic and oriental style of the interior with the music and scent
being relaxing and unique. Also, Wall & Keogh is located in Richmond Street which
is 1.5km from the city center which might be a bit too much of walk to only get a cup
of coffee or tea for the tourists especially if they are going by foot.
Key benefits the products in Jasmine would offer would be satisfaction with health
benefits in the same time. As all the teas are also caffeine-free, refreshing and high in
antioxidants as well while in the same time the scent will be offering an
aromatherapy-like effect, this will prove to be a real choice for people who enjoy a
relaxing and healthy hot beverage with a variety of teas, coffees, cakes and pastry to
choose from.
Pricing Diagram
Competitors: Wall & Keogh (€) Clement & Pekoe (€) Tea Garden (€)
Products / / /
Coffee 2.80 2.50 3.00
Teas 3.90 2.30 6.80
Pastry and Cakes 3.50 2.50 3.15
Non-alcoholic
beverages
3.00 3.00 4.00
The diagram above shows the average price of products of the main 3 competitors of
Jasmine. It can clearly be seen that Tea Garden has much higher prices but they rely
on their unique atmosphere and durability in this market which made them one of the
most interesting cafe's to tourists in the way they operate.
Marketing summary communications:
Ways of Marketing
Communication
Price in euros
Website 999
Facebook Page /
Leaflets + students who will be
dealing them
1272
Opening event 1500
Internet Advertising 825
Total Cost 4596
The cost of marketing and advertising will reduce through years 2 and 3 as there will
be less need to do so. The reason for that being is that it is expected after a successful
first year of advertising it and working well, the word of mouth will be a bigger and
more important factor of people hearing for this café. Years 2 and 3 will more
precisely exclude the cost of website – as it is once made the manager will handle the
website as he would receive training in the first year which is included in the price of
the website. Internet Advertising will continue to be implemented as this type of
source of advertising is seen by millions of tourists on a yearly basis as stated above.
As it is expected that the amount of customers will rise throughout year 1, the
anniversary event will cost at least 2000 euros meaning 500 more than the opening
event did in the first year.
5. PEOPLE
For the first year, the manager of Jasmine café will be employing two full-time
waiters, a part-time baker, two part-time waiters, a part-time accountant and a part-
time cleaner. Also, the manager himself, AmilSabanadzovic, will be in the café every
working day.
General Manager
As AmilSabanadzovic is the founder of Jasmine café, he will be the general manager
as well and be looking to run this business. Amil has previous experience as his father
holds a café in Montenegro named “Blok 5” and he has been helping him with small
things around the business and watching his father operate he has learned a lot of
things which might be helpful for him to run this business successfully. Besides that,
Amil has working experience as a waiter in the restaurant “Luka Sarajevo”
(https://www.facebook.com/pages/Luka-Sarajevo/118187701699165) and will also by
the end of summer have a Bachelor degree in Business studies where he managed to
gain knowledge in business as well as in finance. The duties he will be required to
operate with are: organizing, giving orders, directing, consulting, ordering supplies
and picking them up, checking products quality, promoting and marketing… Amil’s
15 years of living in Bosnia and Herzegovina, Sarajevo will also come in hand as this
city is well known for its oriental café’s and a big number of shisha houses. During
the first year of business, the manager will not be receiving a salary but for the years 2
and 3 he will be awarded a salary of 20,000 per year. The manager will be working
every day of the week except Friday, but including weekends.
Staff
2 Full time waiters/waitress + 2 Part time waiters/waitress
As the café covers 81 m2, it will be consisted of 8 tables (2 rooms with 4 tables each).
Each table will be surrounded by 4 chairs meaning the capacity of this café will be 32
people. One waiter would actually be a barista in the café as he/she would be in
charge of making drinks and picking out pastry, while the other waiter/waitress would
be in charge of taking and orders, communicating with the customers and then
forwarding them to the barista while afterwards bringing it to the table of the
customers who have ordered the particular products. The waiter/waitress who takes
the orders will also have duties as cleaning the tables, being patient with customers,
describing them the products if they wish so, taking care of the payment of the bill
carefully and most importantly not being arrogant but instead polite and caring with
good manners and a smile on their face. In general the maximum average working
hours per week is 48 hours. (Citizensinformation.ie, 2014) In Jasmine, the workers
will be working 41 hours per week but will be given half an hour breaks per days
what would reduce their working hours beneath 39 hours but they would be fully paid
due to covering their colleagues during their breaks. They would also be working on
Saturdays when they will be earning 1/3 more per hour as stated on Citizenship
Information, Employment.
The basic requirements that the waiters/waitresses will have to fulfill to get the job:
- Two years minimum of working experience in a similar environment (café,
bars, restaurants). This is important as there can be many accidents and
embarrassing situations as for example spilling the drinks over the customers
or not knowing how to make a coffee or some basic similar routine things
required for this type of job.
- The two waiters in charge of taking orders and delivering them to the “barista”
will have to know at least one foreign language besides speaking English
fluently.
- Only polite, calm and patient waiters/waitresses would be considered as the
exotic menus and a large variety of different types of teas and shishas can
cause the customers to spend a lot of time in their decision-making when it
comes to taking an order. Also, applicants with conduct or violation history
will not be considered as that may say that they have an aggressive manner.
- The ability to work shifts would also be important as there might be times
when one waiter would have to cover for the other if some unpredicted
situation occurs.
- Ability to work at a high pace and organize their duties properly (when to
clean tables, take deliveries fast and precisely, bring the drinks without too
much wait for the customers…)
Two part-time waiters/waitresses would have the same salary at 10.50 euros per hour
while the two full-time would have 10.50 euros per hour. (Jobs.noel.ie, 2014) The two
full-time workers would work for a total number of 41 hours per week while the two
part-time would be working 28 hours per person. It is important to mention that all
workers will have an increased salary of 30% per hour on Sundays. The two full-time
workers are entitled to a 15 minute break after 4 ½ hours of work but are not allowed
to take the break in the same time. In the other hand, the part-time workers will be
working without a break as their shift doesn’t go over 4 hours of work per day.
Cleaning
This part of business is one of the two which will be outsourced partially. As the
waiters/waitresses will clean through their shift and the last 10 minutes after closing
the café, the part-time cleaner will be in charge of cleaning the café 4 hours on every
Sunday when the café would be closed. Although the average hour payment for a
cleaner is 9.50 euros (Irishjobs.ie, 2014)., this cleaner will be paid more because of
the fact that he/she will be working only on Sundays. The part-time worker would be
earning 12.50 euros per hour (Irishjobs.ie, 2014).
Accounting
Accounting would be the other part of the business that would be outsourced partially.
A part-time accountant would be hired to go through the papers and calculations once
per month. The accountant would have a salary of 24.00 euros per hour. (Morgan
McKinley Ireland. 2014) As the café is pretty small, with the ability to take in 32
customers at the same time, he would be required to work approximately 8 hours on a
monthly basis what would be equal to 192.00 euros per month. The daily
responsibilities of a bookkeeper would be taken by the manager Amil as he possesses
the required amount of knowledge thanks to the 3 years of his Bachelor studies.
Baker
A baker is needed for all the pastry and cakes that will be provided in the café. He/she
would be obliged to come in the early working hours – shift from 6a.m-12p.m. - and
prepare and bake everything for the whole day in advance. It would be required that
the baker has a lot of previous experience (5 years minimum) with baking cakes,
cookie and different sorts of pastries. Besides making cake and pastry, the chef would
also make bread for the sandwiches which Jasmine would offer as well. One of the
key requirements for this job position would also be that the baker knows how to
make baklavas and similar Southwest and Central sweet cakes. The baker would work
6 days per week, excluding Mondays. Although pastry chefs are usually paid 13
euros per hour, the chef in this case will be paid more per hour in average as he/she
would be working an hour of night shift per day and would be working on Saturdays
as well. Although in Dublin Pastry Chefs have an annual salary in between 23.000-
30.000 (Irishjobs.ie, 2014) the Chef in Jasmine would have an annual salary of 32760
euros which would be well above the salary of an average pastry chef as he/she would
only be working 6 hours per day. Monthly, this would be 2730 euros for working 36
hours per week. (Irishjobs.ie, 2014)
Training
The first week of before the opening of the café will consist of two types of trainings.
The first two days – Monday and Tuesday – will be for training regarding the case of
Health and Safety. Workers will be educated on their responsibilities on the issue of
health and safety on the workplace and different aspects of this topic will be covered.
As there are four employees + the manager himself, this would cost 200 euros per
person which would mean that the total price would account into 1200 euros (2 full-
time waiters, 2 part-time, baker and manager).
Also, this would be helpful in case of there is some emergency case in the café. This
training will make them prepared and educated in order some unexpected case
scenario occurs and will make them much calmer and more prepared to react in the
right way.
Regarding the equipment handling, there will be no need for any training as every
worker employed will have had previous working experience in similar environments
and with same or similar coffee machines. The coffee manager possesses previous
experience working in coffee shops as well so will not be needing any tutorials and
training regarding usage of the coffee machines and the job as well.
Schedule of working hours per week
Days Monday Tuesday Wednesday Thursday Friday Saturday Sunday
Position
General
Manager
10.00-
14.00
16.00-
20.00
10.00-
14.00
16.00-
20.00
10.00-14.00
16.00-20.00
10.00-
14.00
16.00-
20.00
Off 10.00-
14.00
16.00-
20.00
10.00-
14.00
16.00-
19.00
Full-time
waiters
10.00–
16.00
10.00–
16.00
10.00–16.00 10.00–
16.00
10.00–
16.00
10.00–
16.00
10.00-
15.00
Part-time
waiters
16.00-
20.00
16.00-
20.00
16.00-20.00 16.00-
20.00
16.00-
20.00
16.00-
20.00
15.00-
19.00
Baker Off 06.00-
12.00
06.00-12.00 06.00-
12.00
06.00-
12.00
06.00-
12.00
06.00-
12.00
Cleaner 19.00-
23.00
Management Organisational Chart
General Manager
Part-Time
2 Waiters
Outsourced:Accountant
Cleaner
Full-time
2 Waiters
Pastry Chef
Wages & Annual Salaries
Staff General
Manager
2 Full-
time
Waiters
2 Part-
time
Waiters
Part-
time
Pastry
Chef
Cleaner Accountant Total
Cost
Annual
Salary
/ 22932 x
2 =
45864
15288 x
2 =
30576
32760 2808 2304 104786
As it can be seen above, the number of annual salaries does not amount to the total
cost because of the reason that none of the staff would be working on January. If they
would, the total cost of annual salaries would be 114312 euros.
Annual Leave, Public Holidays and Sick Leave
The café will be opened during all days throughout the year except for 4 public
holidays. Jasmine will not be working on: Christmas, New Year’s Day and Easter.
During the other 6 public holidays, the staff which will be working will have double
what they are supposed to be paid for that day. This results into 6 working public
holidays from which three are Mondays, one is Thursday and one Friday. (6 days x 5
staff x average pay 12.00 x 2 x 10 working hours = 7200) An estimated cost per
annum for public holidays would be 7200 euros.
As all employees are entitled to annual leave and sick days throughout the year which
in total accounts to a 4 week leave per person. During the weeks of annual leave and
sick leave, the part-time workers will cover each other as well as the full-time as none
of them will take annual leave on the same time due to prior agreement. There will be
a total of 5 staff entitled to these four weeks as the accountant only works once per
month and the cleaner works once per week and according to Citizens Information,
Employment Rights and Conditions are not entitled for such a right throughout the
year. These 5 employees (2 part-time waiters, 2 full-time waiters and Pastry Chef) on
average:
- Work 36 hours per week
- Have an average salary of per hour 12.00
After the figures above are multiplied by the 4 weeks each one of five of them takes
per year, it adds to 8640 euros for the first year.
As for Sundays, the cleaner’s payment per hour will not be calculated in this part as
he/she is already getting 12.50 euros per hour instead of approximately 9.00 which
was supposed to be if it he/she was working during business days. Although the
Pastry Chef works on an annual salary and he will also be given bonuses for every
working Sunday. For Sundays, there will be four waiters working as well as the chef
(two full-time waiters and two part-time) and they would all be eligible for this
additional bonus. This sums up to (24 hours of work on Sunday x 52 weeks x 12.00
euros which is an average salary x 0.33) = 4942 euros per annum.
6. Operations
Premises & Rent
Café Jasmine will be located in Dawson Street, the area cover 81 m2 meant for a
restaurant, bar or for a café of this type to operate. Dawson Street is located in the
heart of South Dublin City Centre close to one of Ireland’s premier retail streets,
Grafton Street. The unit is close to the historic Trinity College Campus and the Molly
Malone Statue. Leading retailers in the immediate vicinity include; Brown Thomas,
River Island, Tommy Hilfiger, Superdry, American Apparel, Avoca Handweavers,
Kilkenny Design and Oasis. Dawson Street is a key tourist destination and the unit is
situated close to the tourist bus drop off point for the City Centre. (George Ross,
2014.)
The manager reached an agreement with the agent George Ross who works for Jones
Lang LaSalle that the annual rent for the first year will be 45,000 euros although
stated 50,000 in the pdf file. For years 2 and 3, the price will rise for 5,000 summing it
to an annual rent for years 2 and 3 to 50,000 euros per year. The exterior will not be
painted as most of it is from glass but a sign will be implemented above the door of
Jasmine. Besides the location itself attracting much interest, the interior which will be
visible from outside as well will offer the customers a new dimension and will
intrigue them to come in and take a look to a sort of café they probably haven’t seen
similar before. As the exterior will be giving just partially a hint of what atmosphere
the café has to offer, the interior will be breathing with exotic and oriental scents and
decoration which will leave the customers breathless and relaxed in the same time.
Equipment
Item Cost in euros Supplier
Cashier 115.00 http://www.buycatering.ie/
4 ft 8 “ Menu Board 105.00 http://www.buycatering.ie/
Toshiba Pro 402.00 http://www.laptopsdirect.ie/
Logitech speakers 52.00 http://www.laptopsdirect.ie/
Wi-Fi router 90.00 http://www.buycatering.ie/
Imperial Fridge 560.00 http://www.buycatering.ie/
Water Boiler 430.00 http://www.buycatering.ie/
Coffee Machine 3080.00 http://www.buycatering.ie/
Oriental Glass Tea Set *
10
720.00 http://www.exoticteapot.co.uk/
Dishwasher Duo 2156.00 http://www.buycatering.ie/
LG 50” HD Plasma * 2 1084.00 http://www.laptopsdirect.ie/
Double Bowl Sink 800.00 http://www.buycatering.ie/
Reclaimed Oak = set of
table + 4 chairs * 8
4000.00 http://www.pinesolutions.co.uk/
Napkins, Towels, Table
Cloth
200.00 http://www.buycatering.ie/
Crockery Set * 48 415.00 http://www.buycatering.ie/
Lincat ECO9 Convection
Oven
2130.00 http://www.buycatering.ie/
Sandwich Grill 620.00 http://www.buycatering.ie/
Cake Display Cabinet 2070.00 http://www.buycatering.ie/
Total 19029.00
The refurbishment of the café would cost approximately 200 euros per square meter
meaning that as the café Jasmine has 81 m2 it would cost 16200 euros as the whole
place would need to be refurbished and renovated from the floor, painting and walls
inside as well (http://www.inia.ie/media/DrConstantinGurdgievReport.pdf). This
would be necessary as most of the décor and painting inside would have to be re-done
to blend in the atmosphere the café would offer. The decorations would be bought in
the region up to the limit of 800 euros.
The exotic tea which Jasmine would offer to its customers would be ordered and
delivered from https://www.exoticteapot.co.uk/fruit-infusions/. Baskets of teas would
be ordered from which every includes three types of teas per set. For example, one set
includes 3 tins - Turkish Apple (75g), Raspberry infusions (75g) and Exotic Bazaar
(75g). This pack costs 20euros and 30 teas can be made out of every tin (75 grams /
2.5 grams for one cup). (A Better Cup of Tea: Measurements, 2014) There will be 5
different baskets, meaning there will be 24 different types of tea. It’s also important to
mention that all of these teas are organic and offer health benefits as well as a relaxing
feeling and feeling of overall pleasure. All the teas are also caffeine-free, refreshing
and high in antioxidants as well. After the information and description was sent,
The Exotic Teapot has informed the manager that it is possible for them to become the
wholesale supplier which would mean more discounts and free shipping as well.
- Regarding the coffee, it would be ordered from http://www.bristotuk.co.uk/. Bristot
is a famous and highly recognized coffee brand with specific flavors and blends that
cannot be replicated.
- As for the soft drink, http://www.begleys.com/wholesalers.html will be the
distributor as they operate in whole Ireland and are an experienced company with
positive feedback from all other café’s.
- Fresh meat used for sandwiches will be ordered from http://www.mkmeats.eu/.
M&K Meats Ltd is one of the most recognised meat suppliers for catering not only in
Ireland but also throughout the whole UK.
- For the vegetables used also in sandwiches in the other hand, the manager has
decided to go with the Dublin's oldest fresh fruit & vegetable supplier:
http://www.jackieleonards.ie/.
Cost of Goods Sold for products (COGS)
Based on conducted primary research and the secondary research as well, the
following estimations for costs of goods sold in “Jasmine” cafe have been used as
follows.
The following margins and COGS have been calculated for product:
Product COGS Per Unit in euros Margin Per Unit in euros
Soft Drink 0.42 2.38
Pastry & Cakes 0.99 2.51
Tea 0.66 3.33
Coffee 0.56 2.24
Sandwiches 1.30 2.70
The figures stated will remain the same for the second and third year of business
operation.
Sales per UnitThe sales per unit was calculated using primary research of two competitors and one
café which is one of the most popular in Dublin and looking at the way it operates and
its customers. In all three of the café’s, observation was conducted in the exact same
number of 50 people as it would take too long for a larger number. Out of the 50
people of every café, the target markets were identified and counted in order to later
sum up the number of each target market in all three of the café’s and divide it by the
number of café’s conducted in this research which is 3. For example, for the first
target market: (0, 32 + 0, 36 + 0, 34) / 3 = 0, 34.
The number of 0,37 is then multiplied by 100 in order to get the percentage of the
sales per target market which in this case reads that the Target market 1 (Tourists
consuming both: hot beverages and pastry) account for 34% of the total sales.
COGS for target markets
Target Market Sales % By
Unit
Cost of Goods
sold per unit
Sales Price
per Unit
Margin per
Unit in euros
Margin per Unit
%
Target market 1 34 (1.22/2 + 0.99)
= 1.60
(6.80/2 + 3.50)
= 6.90
5.30 76.81
Target market 2 26 1.22/2 = 0.61 6.80/2 = 3.40 2.79 82.06
Target market 3 19 1.22/2 = 0.61 6.80/2 = 3.40 2.79 82.06
Target market 4 10 (1.22/2 + 0.99)
= 1.60
(6.80/2 + 3.50)
= 4.795
5.30 76.81
Target market 5 11 (1.22/2 + 1.30)
= 1.91
(6.80/2 + 4.00)
= 7.4
5.49 74.19
Target market 1 – Tourists who purchase hot beverages and pastry/cakes
Target market 2 – Working people/Locals who purchase only hot beverages
Target market 3 – Students who purchase only hot beverages
Target market 4 – Couples who purchase hot beverages and pastry/cakes
Target market 5 - Tourists/Working people who purchase both, hot beverages and
sandwiches at the same time
7. Competitors
Recognizing competitors and making a research of the market is one of the most
important factors for success. If a specific place is crowded with a lot of similar
restaurants for example which are already working very good, it would be hard for a
new restaurant to steal their customers unless they are offering something special and
unique or their prices are much lower but this could then affect the profitability of the
certain unit. This is why primary research as well as secondary are very important for
this segment as it gives a picture of how do other competitors operate and what makes
them successful. Two types of competitors can be identified:
- Primary – the ones who directly affect our business and have a very similar
product offer range and atmosphere. This type have to be observed and
information about them is very significant as through this way it can be seen
what are their strengths and weaknesses and what would make a certain shop
better than them.
- Secondary – these competitors offer similar or some even maybe same
products but usually do not directly affect and “steal” our customers. The
reason for that might be location, product range, atmosphere or simply the two
shops might have different target markets to which they have adopted.
Primary Research of 3 Main competitors:
Primary Research 1: Tea Garden
This café is recognized one of the three main competitors. The reason behind that is
that it is also built on the idea of an oriental café. Besides the similar atmosphere that
Jasmine is trying to achieve, it also offers a similar range of products: coffees, large
variety of teas including loose teas as well, cakes, pastry and it offers shisha which the
manager of Jasmine has decided to drop out of the product range offered to the
customers. As for the location of Tea Garden, it is located in 7 Lower Ormond Quay
which is in Dublin 1. One of the rooms inside can be seen below:
(Observation, Primary Research, 2014)
Strengths
The strengths of Tea Garden are its ability to sustain on the market for a longer period
while maintaining a high number of customers and gaining more popularity in the
same time. As it is stated on their board in front of the café, it has been visited by
more than 120.000 customers. Their other strength, which is the reason for their name
as well as its popularity, is the enormous range of teas offered (counted over 40
during PR). This is the main reason why this café has been identified as one of the
main competitors although it is located 1.5km from Jasmine.
Weaknesses
The location although in Dublin 1, is not very central and especially not visible and
notable for the ones passing by it. The fact that is basically placed underground makes
it hard for the passengers and interested people to get a feeling of what the coffee
offers and looks like inside. Also, by doing PR I have had much trouble locating it as I
have passed multiple times by it without noticing really its placement and it isn’t
written nowhere where the actual entrance is. The other and maybe biggest weakness
of Tea Garden is their prices. As one customer had left a review on Yelp: “prepare to
pay more almost cocktail prices for an excellent cup of tea.” Out of the 40+ teas
offered, more than half of them cost over 6 euros which seems to be a bit too much for
a cup of tea. This may send a lot of potential customers away from them and to their
competitors, especially people on a budget and students. (Yelp.ie. 2014)
Primary Research 2: Wall & Keogh
This is another café with a speciality of offering a large variety of organic teas. It is
located in 45 Richmond Street South and is covered in glass from the exterior which
makes it easy to locate. Their range of products besides a large variety of tea consists
of: cakes, sandwiches, sushi and coffee. The main reason it is identified as a
competitor is obviously because of the large variety of teas offered and the popularity
it gained in the tea market in Dublin.
Strengths
One of the strengths of Wall & Keogh is obviously the fact that it offers the ability to
the customers to choose which tea they want from a range of over 20 types. The teas
are organic as well although it hasn’t been scientifically proved that organic food and
teas offer health benefits, some customers prefer it that way. Also, their product range
is wider than Jasmine’s as it has sandwiches and sushi as well on their menu.
Weaknesses
Once again, to this café as well, its distance from the center (1.5 km away from
Grafton Street) is one of its main weaknesses. The location of this café may present an
obstacle to many tourists as they would have to walk about 15 minutes out of the
center to only get themselves a cup of tea and snack perhaps. Because of this fact,
many tourists who go by foot will decide to find a substitute cafe for this product
somewhere else in the city. Besides the location, the seating capacity is very limited.
Inside of the café there is 20 available sitting places and in the backyard only 6
persons can take a seat which is too little for the busiest hours during the day and
makes many customers find an alternative because there is no seat available.
Primary Research 3: Clement & Pekoe
This café has the most central location out of the three main competitors. To be
precise, its exact location is 50 South William Street. This street is located 5 minutes
of walk away from Stephens Green shopping center and even less from Grafton
Street. As seen through Primary Research, the product range is similar to the one
which Jasmine will be offering. It consists of: many types of exotic teas, coffees,
pastry and freshly baked cakes.
Strengths
After conducting Primary & Secondary Research, it is safe to say that many feel as
the coffee this café has to offer is very high in quality and it is rare to find such good
coffee in Dublin especially for as low prices as they offer. Besides the coffee, they
offer a wide range of teas and freshly baked cakes can be found their every day.
Location itself is one of the main strengths of C & P as it is very central and on a very
visible place what means that many passengers could gain interest of trying their
products just by passing by it.
Weaknesses
As for the weaknesses, there aren’t many of them actually. One of the weaknesses is
that there is no Wi-Fi which might repel many young customers as it seems that they
are almost dependent on internet and technology as laptops and smartphones. The
other weakness is that the sitting space seems to be organized just based on one thing,
that as many people can fit as possible. For example, outdoors, there is only one
bench which usually share people who did not come together and have to sit within
touching distance in order to drink their coffee/tea. The situation inside isn’t much
different as there are tables for eight people which make it too crowded in such a
small area and too many noises and voices in the same time might make this usually
enjoyable atmosphere rather annoying and too loud. In order to go to the toilet, a
couple of people at least would have to stand up or move out of the way if the seating
capacity indoors is full.
Besides these 3 main competitors, there are more indirect competitors with similar
products offered but aiming different target markets and offering different
atmosphere. Some of these indirect competitors are: Butlers Chocolate Café,
Bewley’s, and Starbucks.
- Butlers Chocolate Café – as well is a small shop located throughout multiple
places in Dublin. They offer a range of teas, coffees as well as sweet snacks
which seem to be pretty popular. Their strength lays in their unique sweet
snacks from which they have a variety of and a range of hot chocolate, lattes
and mochas which are the products mostly ordered there. Their chocolate
products are tasteful and high-quality although their weakness is that they
mainly focus on products basically only containing chocolate and don’t offer
a large variety of hot beverages and teas. Also, two of their café’s visited are
very small with a seating capacity of 15 people and the interior is decorated in
a very “girly” way which might be the reason why there are mostly female
students and older woman sitting inside.
- Starbucks – is located in many places throughout Dublin and there is one as
well in Grafton Street. It is considered as a competitor because of its global
popularity and the fact that it is present in over 50 countries (Starbucks
official website) so a lot of tourists might want to visit it because they have
liked it from their previous experiences. Even though they are globally well
known for their coffee there isn’t a company which doesn’t have weakness so
the same goes for Starbuck. As their products seem a good solution for a
takeaway hot-beverage, their units are mostly crowded and loud what doesn’t
make their places adequate for enjoying a coffee and having a pleasant
relaxing chat. Also, the prices are not relatively low as their average price of
coffees is 3.45. (PR) Besides this, their range of products is too “old school”
and they do not offer any exotic and unique coffees and teas.
- Bewley’s – is a well-known, large café restaurant which offers hot beverages,
soft drinks as well as simple meals and combo offers for breakfasts, lunches
and dinners. Its location is one of its biggest strengths as it is located in the
heart of Grafton Street and it is impossible to go through the street without
noticing it. Through observational work, it has been noticed that it is quite
popular and that a lot of middle aged to old people like to enjoy a traditional
Irish breakfast at the place. Its strength is plays a big part in its weakness
although it might sound strange. This occurs because although they know
exactly which products the Irish people prefer for meals and hot beverages,
they do not offer many international meals and hot beverages which is the
reason why their units are crowded mostly by Irish people. Another weakness
is the strong scent the café has in the breakfast hours as eggs and sausages
what might be unpleasant for people who are there only to enjoy a cup of
coffee or tea.
7. Financial Projections
In the following table, the costs of both depreciable and non-depreciable costs can be
seen. As mentioned in the Operations section, the total equipment cost amount to
19029 euros. Also, non-depreciable costs can be seen in this table which haven’t been
mentioned before but which are also significantly important for the café to operate
successfully. The VAT is also calculated and it is important to mention that the VAT
rate for depreciable and non-depreciable (service) differ by 09.5% what can be seen as
well in the last row.
Set-up Costs Price in (€)
Decorations 800
Refurbishment 16200
Music License 606
Internet, TV & Phone 606
Total 18212
Total equipment cost 19029
Depreciable + Non-
Depreciable Costs
37241
VAT (rate is 23% on
equipment & 13.5% on
services)
4189 + 2459 = 6648
As seen above, refurbishment carries most of the non-depreciable costs as the whole
unit of 81 m2 must be redone in the inside. The cost for depreciable is a bit lower than
the non-depreciable and the cost per item can be seen in the table below.
For the year 2 and 3, there will be no depreciable equipment bought, and out of the
non-depreciable costs, only the Internet, TV, phone and music license will be there.
Item Cost in euros Supplier
Cashier 115.00 http://www.buycatering.ie/
4 ft 8 “ Menu Board 105.00 http://www.buycatering.ie/
Toshiba Pro 402.00 http://www.laptopsdirect.ie/
Logitech speakers 52.00 http://www.laptopsdirect.ie/
Wi-Fi router 90.00 http://www.buycatering.ie/
Imperial Fridge 560.00 http://www.buycatering.ie/
Water Boiler 430.00 http://www.buycatering.ie/
Coffee Machine 3080.00 http://www.buycatering.ie/
Oriental Glass Tea Set *
10
720.00 http://www.exoticteapot.co.uk/
Dishwasher Duo 2156.00 http://www.buycatering.ie/
LG 50” HD Plasma * 2 1084.00 http://www.laptopsdirect.ie/
Double Bowl Sink 800.00 http://www.buycatering.ie/
Reclaimed Oak = set of
table + 4 chairs * 8
4000.00 http://www.pinesolutions.co.uk/
Napkins, Towels, Table
Cloth
200.00 http://www.buycatering.ie/
Crockery Set * 48 415.00 http://www.buycatering.ie/
Lincat ECO9 Convection
Oven
2130.00 http://www.buycatering.ie/
Sandwich Grill 620.00 http://www.buycatering.ie/
Cake Display Cabinet 2070.00 http://www.buycatering.ie/
Total 19029.00
As it can be seen, all the above items are necessary for a café to operate successfully
in the city center. As the criteria is higher in the center and the competition is tougher,
it is very important that a café is very well equipped in order to produce good
products as well as fulfill most of the needs of the customers regarding the
atmosphere, music, internet, TV… One of the things as well which will be specific for
this café is the Oriental Glass Tea Set from which the customers would be served
when they’ve ordered tea. The total cost of 19029 € for equipment would be pretty
high considering that the unit covers only 81 m2. The depreciation for the equipment
is 20% per annum meaning that the amount of depreciation for first year would be
3806 €.
Sales Assumptions provided by unit, price segment.
Target Market Sales % By
Unit
Cost of Goods
sold per unit
Sales Price
per Unit
Margin per
Unit in euros
Margin per Unit
%
Target market 1 34 (1.22/2 + 0.99)
= 1.60
(6.80/2 + 3.50)
= 6.90
5.30 76.81
Target market 2 26 1.22/2 = 0.61 6.80/2 = 3.40 2.79 82.06
Target market 3 19 1.22/2 = 0.61 6.80/2 = 3.40 2.79 82.06
Target market 4 10 (1.22/2 + 0.99)
= 1.60
(6.80/2 + 3.50)
= 4.795
5.30 76.81
Target market 5 11 (1.22/2 + 1.30)
= 1.91
(6.80/2 + 4.00)
= 7.4
5.49 74.19
First of all, the target markets will be explained and the way in which each percentage
was gotten. By conducting Primary Research in the 3 main competitors of Jasmine
(Wall & Keogh, Tea Garden and Clement & Pekoe), in 2 of those 3 it was obvious
that their primary target market and the largest part of customers were tourists.
Although, in the 3rd competitor it was interesting that the local (Irish) people were the
most regular customers and that the tourists were on number two by the number of
sales made and the students were on number three in all 3 of these competitors.
Through primary research, the number of each target market was counted until 50
customers came in the café. By sampling the target markets by 50 people in each of
the three competitors, it was easy to see and realize what percentage of sales does
each of the 5 target markets cover in each of the café’s. Afterwards, all the numbers
per target market were subtracted then divided by 3 so a realistic and average number
of % sales per target market could be calculated for Jasmine.
As for the Sales price per unit, observation and an interview with one of the
waitresses in Wall & Keogh gave an insight of how the business operates and what is
the margin approximately for a cup of tea, coffee or pastry.
Regarding the sales per month, the table below shows predicted figures. Firstly to
justify the number of sales which are presented below. Through observation of the 3
main competitors, it was concluded that none of those 3 average less than 20
customers per hour (either take-away or people who sit inside). In fact, two of those 3
competitors – Tea Garden and Clement & Pekoe – usually averaged over 30
customers per hour probably because of the much better location they have and the
fact that both of them are at least double the size compared to Wall & Keogh. As
Jasmine will also have more seating capacity then Wall & Keogh, it is predicted that
after half a year of working (in the summer) when there are more tourists as well, will
be able to average 20 customers per hour which would mean 6300 customers that
month. Also, a significant amount of customers will not only buy one product but
more.
The sales will be increasing every year and almost every month. A decrease in sales
will be visible only in April because March is expected to be one of the busiest
months as the number of tourists’ increases drastically due to the holiday St. Patrick’s.
Also, a decrease will be noticeable after the warmest months, starting from
September.
Wages & Salaries
Staff Monthly Salary Annual Salary
Full time waiter * 2 3822 42042
Part time waiter * 2 2548 28028
Pastry Chef 2080 30030
Accountant 192 2112
Cleaner 234 2574
General Manager / /
Total 9526 104786
The wages & salaries are explained in detail as how these numbers are gotten. Most of
these salaries were found through secondary research as none of the workers felt
comfortable and refused to give information about their hourly or monthly salaries.
The most complicated part here was calculating the salary of the Chef as obviously
his working hours would start at 6 a.m. every day meaning that he/she would work
one hour of night shift every day. To make things less complicated, the chef would be
paid on an annual basis and the salary would be arranged with him in advance but
later the night shifts and Sundays wouldn’t be accounted in his bonuses as he/she
would already be getting much more than an average Pastry Chef.
Through year 2 and 3, the salaries of the waiters as well as the chef’s will increase.
The salary on an hourly basis of the waiters will increase from 10.50 euros to 11.00 as
acknowledgement for their hard and loyal work as well as because of the reason that
the sales are expected to rise through that period which would mean more work to do.
As for the chef, as he is paid on an annual salary which is agreed before he/she starts
to work, will be rewarded with a 5% increase on his/her annual salary. The salary
though will remain the same throughout year 2 and 3. The monthly and annual
salaries of the staff can be seen below:
Staff Monthly Salary Annual Salary
Full time waiter * 2 4004 48044
Part time waiter * 2 2669 32032
Pastry Chef 2867 34398
Accountant 192 2304
Cleaner 234 2574
General Manager 1667 20000
Total 11633 139590
Unit margins and cost of goods sold
Product COGS Per Unit in euros Margin Per Unit in euros
Soft Drink 0.42 2.38
Pastry & Cakes 0.99 2.51
Tea 0.66 3.33
Coffee 0.56 2.24
Sandwiches 1.30 2.70
After conducting various sources of primary and secondary research, it was concluded
that the cost of goods sold for pastry & cakes is 0.39, for sandwiches it is 0.325 and it
varies for hot beverages as the cost for making a tea and coffee differ but are both
below 20%.
The summary of unit sales for the three years
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec -
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
Year 1Year 2Year 3
The figure above clearly shows how the sales have grown from year to year. One of
the biggest differences in number of sales per month is in between February and
March, the reason is obvious - St. Patrick's day. The number of tourists on this month
increases enormously due to this Irish celebration. And as tourists are Jasmine's
primary target market, it is expected that the number of sales will jump up but then
decrease slightly in April every year as there will be a significant number of less
tourists in April compared to March. The number of sales is predicted to reach its
peak on July and August of year 3 with 7050 units sold on both of those months.
Afterwards the sales will not be increasing as the number of tourists will decrease
through the following months but the goal is to maintain a high level (above 6500
units sold) every month.
OVERHEADS
Staff cost
The chart clearly shows the difference in salaries, both monthly and annually, in the
first year compared to the second and third. The monthly salary for all the staff will
increase by 2107 euros per month and annually the salary of the staff will increase by
34804 euros.
Breakdown of overhead costs
The biggest difference in the cost of overheads between year 1 and years 2 and 3 will
be in the staff section. As the manager will be receiving 20000 euros annual salary
starting in year 2 and also the salaries of the waiters/waitresses and the pastry chef as
well will increase 5% on an annual basis. The rent will increase for 5000 euros as it
was agreed with the manager of the unit while the marketing will slightly drop.
Depreciation will stay same throughout all three years as there will be no new
equipment bought in between. The finance, loan to the bank that is will be given back
throughout 23 months, the first two years, and therefore will not be present in year 3.
Net Profit
The Net Profit will increase steadily increase through all years with the most
significant difference between years 2 and 3. The reason the Net Profit difference
between the first two years isn't so noticeable is because in year 2 the manager will
start getting his salary what will increase the expenses and therefore limit the profit at
the end of the year. Also, in year 3 the loan to bank will no longer exist which will cut
over 20k expenses which were present throughout the first two years.
Funding Requirements
The whole project would be impossible without the loan which will be taken from the
bank. The loan is in the amount of 52000 euros and will be repaid throughout year 1
and 2, that is through the first 23 months of the business operating. The Annual
Percentage Rate (APR) is 5.75% and will stay the same throughout the two years. The
set-up costs are 36029 what means that more than half of the funding requirements are
used for the depreciable and non-depreciable costs for the start-up of the business.
The rest would be used for premises, marketing, staff training, general expenses and
finance costs.
Creditors/Debtors
Because this type of business requires immediate payment, the debtor days will equal
zero while the expected time needed to meet the payment to the creditors is set to a
maximum of 60 days.
Profit & Loss
Cash Flow
The first month will be positive of course as the loan from the bank is received and
the sum received is enough to cover all of the set-up costs as well as the premises and
rent. It is important that there is cash left in January so that the rent and bills could be
paid throughout the second month. In February, the Net Cash Flow records a slight
increase, but there are in fact many changes going through it. The staff costs starts to
appear from February as the business has started working, the marketing decreases
and there is the VAT Payable which didn't occur in January as well. The month March
is significantly larger due to the VAT refund given what results in the net cash flow
for this month being so high. Another reason for such a high number in March is the
fact that it is the month with significantly increased number of tourists and as
Jasmine's primary target market are tourists this will have a large effect on the
increase of sales through this month. From April, a new cost is included what results
in a lower net cash flow as seen on the graph. That cost is payment to the creditors. As
summer and June arrive, the net cash flow starts to increase as there are no new costs
but the sales are rising steadily throughout each of these months until September. In
September, the sales start to fall until December. The month of December is so much
lower and negative in particular due to repayment of principal amount at the end of
the year which is 30000 euros. The December figures for the second year since the
other 22000 are also repaid on the end of year 2016.
8. References
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websale8=diedruckerei.18-aa&pi=PFLA644&ci=005945 [Accessed: 22 Feb 2014].
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Dublin!!!. [online] Available at: http://websitedublin.com/pricing-and-buy.php
[Accessed: 17 Feb 2014].
Suppliers:
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Bristot Coffee Supplies UK. [online] Available at: http://www.bristotuk.co.uk/
[Accessed: 17 Mar 2014].
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Distributors. [online] Available at: http://www.begleys.com/wholesalers.html
[Accessed: 02 Apr 2014].
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Cast Iron Teapots. [online] Available at: https://www.exoticteapot.co.uk/wholesale-
teas.html [Accessed: 23 Feb 2014].
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[Accessed: 08 Apr 2014].
-Mkmeats.eu. 2014. mkmeats.eu. [online] Available at: http://www.mkmeats.eu/
[Accessed: 09 Apr 2014].
Competitors:
-Webstránok, G. 2014. Tea Garden. [online] Available at: http://www.tea-garden.eu/
[Accessed: 24 Mar 2014].
-Wall and Keogh Wholesale Tea House, Shop, Café. 2014. Wall and Keogh
Wholesale Tea House, Shop, Café. [online] Available at:
http://wallandkeogh.wix.com/wallandkeogh [Accessed: 22 Mar 2014].
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keogh-dublin [Accessed: 12 December 2013].
-Yelp.ie. 2014. Butlers Chocolate Cafe. [online] Available at:
http://www.yelp.ie/biz/butlers-chocolate-cafe-dublin-29 [Accessed: 10 Dec 2013].
-Yelp.ie. 2014. Tea Garden. [online] Available at: http://www.yelp.ie/biz/tea-garden-
dublin [Accessed: 12 Dec 2013].
Staff:
-Jobs.noel.ie. 2014. Noel Recruitment : Noel Recruitment - Dawson Street Branch -
Hotel Chef de Partie for Pastry Job - Permanent - City of Dublin, Ireland - Travel,
Leisure, Tourism and Hospitality - VAC-37458 - Find a job, build a career | Jobs at
Noel Recruitment. [online] Available at:
http://jobs.noel.ie/noelrecruitment/Search/Vacancy/All/1/1314956/Hotel%20Chef
%20de%20Partie%20for%20Pastry%20%20City%20of%20Dublin%20Ireland.html?
keywords=pastry%20chef [Accessed: 17 Feb 2014].
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Financial, Insurance - IrishJobs.ie. [online] Available at:
http://www.irishjobs.ie/Jobs/Part-time-BS-Cleaner-BE-7278883.aspx [Accessed: 05
Feb 2014].
-Jobs.noel.ie. 2014. Noel Recruitment : Noel Recruitment - Dawson Street Branch -
Waiting staff Job - Temporary - Dublin, Ireland - Travel, Leisure, Tourism and
Hospitality - SM-123 - Find a job, build a career | Jobs at Noel Recruitment. [online]
Available at: http://jobs.noel.ie/noelrecruitment/Search/Vacancy/Field2352-
Hospitality_Location-IE.LC/3/1245723/Waiting%20staff%20Dublin%20Ireland.html
[Accessed: 12 Mar 2014].
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Available at: http://www.morganmckinley.ie/article/contracting-temporary-pay-rates
[Accessed: 13 Mar 2014].
9. Appendices
Appendix 1
Observational Research of Tea Garden:
Date: 05.03.2014
Time: 14:22 – 15:35
After changing my products offered and excluding shisha from my products range, I
have once again sat and identified which are my primary targets. Not by surprise, Tea
Garden was once again one of the primary competitors as it is very famous by its wide
variety of teas and especially its unique atmosphere. After I've passed several times on
the other side of the road without noticing it, I finally managed to identify the shop.
After going downstairs and entering the place, I immediately got a feeling of
excitement and I had high expectations of this cafe unlike the most traditional ones in
Dublin. Although it was a working day and I've come basically come at the time while
all employed people work, I still managed to find out that the capacity of this cafe was
almost full. I finally found a place to sit. There were more options to choose from
when it came to taking a seat. Although there were a couple of places available in the
are where you basically had to sit on the floor which was covered with a carpet, the
smell, smoke and noise produced by shisha and its smokers repelled me. After I made
myself comfortable, the waiter came a few minutes afterwards. The waiter was polite
and helpful while being patient in the same time with my decision. The thing which
caught my eye were the prices of the teas. Although they offered a wide variety of
exotic and unique teas, the lowest price of 4.90 euros seemed a bit too much. Not to
mention that some teas reached 10 euros what could be the price of a meal and drink
combo in some near restaurants and bars. An interesting fact that from the 21 people I
counted inside the Garden, 14 were men. The rest were females which were all
students. A large number of foreign languages were heard at the same time but also
there was a group of 6 Irish students (3 male, 3 female). A couple of people were just
enjoying the atmosphere and the shisha while seeming to be into deep thoughts. I soon
noticed what the Irish students were complaining about and related myself to the same
problem, as there were only two waiters in the shift, the amount of time for waiting
for a single tea took over 20 minutes which seemed a bit too much. As the place has a
seating capacity of about 50 people, it is obvious that two persons cannot successfully
manage to cover that big unit while preparing the products in the same time (shisha
preparing requires at least 10 minutes alone). After I drank my tea I approached the
waiter and paid for it. Soon enough I found myself in a conversation with him. He
asked me was this my first time here after what I replied positively. I explained him
my „mission“ and the reason why I have come there after what he gave me an insight
about the whole cafe. He afterwards told me to take a look everywhere I wanted and
to feel free to take a few pictures as well. The waiter was very pleasant and helpful
and I have left 5 minutes after taking a look at the other areas of the unit.
Appendix 2
Observational Research of Wall & Keogh:
Date: 19.03.2014
Time: 13:14 – 14:45
The day on which the observation was conducted was Wednesday. After entering the
café, I have immediately noticed that the unit is very small. Although a bit out of
town, I soon enough realized that it was still able to attract enough customers. At the
time I arrived, there were two waitresses from which one was making and preparing
sandwiches and the other one was waiting for the customers and their orders. Unlike
in Tea Garden, in this café you had to approach the bar and order a drink. The average
price for coffees was 3.00 euros while a small pot of tea was from 3.90 to some of
them reaching a higher price as well. Their range of products also of pastry, cakes and
sushi as well. The sandwiches admittedly looked tasty and fresh as one of the
waitresses was constantly making and baking them. Nevertheless, as I was sitting
outside, I had to come back in to take my tea after a several minutes. The pot of tea
and the cup itself looked interesting and unusual as a contrast to most of the chairs
and tables which were placed outside. The outdoor tables and chairs seemed to be
bought at the lowest price and of the lowest quality as the chairs were very
uncomfortable as well as looking poor themselves. The interior though was pretty
decent and decorated with the main problem being that the capacity inside (including
the floor beyond) could only hold 20 people. This problem resulted in people who
actually came with an intention to sit and enjoy their products had to leave as there
was no place available except outside and on the floor underneath which was dark and
small. I have managed to realize that they allowed people to smell all of their types of
teas offered which seemed to interest people and affect their choices. Through this
way, it seemed as the café and the people interacted and the customers seemed to
enjoy this part. For the one and a half hours of observation, 16 people have entered
the café as there were 8 previously sitting. It is important to mention that 6 of them
just took their hot beverage for takeaway and that there were two couples who after
realizing that the café was full, left the café without buying anything as they have
probably came with an intention to sit and enjoy their beverages instead of carrying it
with themselves.
Appendix 3
Observational Research of Clement & Pekoe:
Date: 08.03.2014
Time: 15:05 – 16:32
Clement & Pekoe is located in the heart of the city center being within 2 minutes
away from St. Stephen’s Green, Grafton Street and 5 minutes away from Temple Bar.
As I have previously walked many times by this café, I pretty much knew that the café
would once again be full. After entering the café, I had to wait in queue for 5 minutes
until the turn for me came to order my drink. The staff was helpful and kind and
didn’t after having a look on the menu I’ve decided to go for a tea. Same as in Wall &
Keogh, you were supposed to wait for your beverage at the bar which I got for less
than a minute as the only thing they had to do was boil the water and insert a bag of
tea in it. The prices of teas and coffees were pretty low especially if the location of the
café was to be taken in consideration. Their only shortage I have managed to notice
when it came to their products was that they only offered one size of coffee. After my
friend offered a cappuccino and saw the cup they were about to fill it in, he asked for
a large cappuccino but was soon told by the waitress that that was unfortunately the
only one they served. The interior was decorated and there were 4 places available
next to the window as one small table with two seating places besides the bar. Next to
the bar, was another room which was much larger and had a sitting capacity of about
25 people but was too noisy and closely coordinated which made it feel as there was
no privacy. The customers had to be faced face-to-face with people they don’t know
just in order to have a seat with their friends/family/co-workers… besides them.
Outside of the café, there were two small benches intended for two people both but
the problem was that there was no table what made us have to hold our cups all the
time or put them besides our legs from time to time.
Appendix 4
Interview with waitress from Wall & Keogh:
It was 13thMarch of 2014 when I have visited this particular café. As it was a Sunday
and 12.00 o’clock, I found the café not to be full, in fact there were only 4 people
sitting at this time in the area. I’ve ordered my tea and sat down observing the café
while writing down notes. Soon after I got my tea, a couple came in in order to get
their takeaway hot beverage and go for a walk it seemed. As the atmosphere was
pretty quiet and the staff didn’t have a lot of work to do, I approached the bar and
asked a waitress if she had five minutes of time to answer several questions regarding
my project after what she replied positively and agreed to do so. Their responds were
regarding my next topics:
- Customers – the waitress told me that in her shift, there is always at least 20
customers per hour and more than 25 products sold as there are people who
usually but a sandwich or pastry besides their beverage. She also made it clear
that she hasn’t been working here for years so cannot therefore tell me how it
is now in comparison to previous years but made it clear to me that the market
is pretty stable and a day doesn’t pass by beneath 200 costumers minimum.
- Target markets – also it was pretty clear to me after counting and doing
observational research here once already, I’ve asked the waitress about the
target markets and she gave me a pretty much similar answer to my notes.
Their primary target were tourists and she said that almost every second
person who entered was either a tourist or some foreign student. She told me
that they had a pretty high number of loyal, local customers who lived in the
somewhere near or were passing by the shop on an every-day basis and
stopped to have a drink in the café or perhaps pick it up on their way.
- Products –I was told that their biggest percentage of sales goes to teas as this
is what they specialize in and mostly based their café on. They offer over 25
types of tea and allow their customers to have a smell of each one of them
besides deciding which one they prefer. Coffee was the second “best-seller”
after what came pastry then sandwiches and finally sushi.
- Marketing – as she hasn’t been working for too long and meaning she wasn’t
introduced to the way the café promoted itself on their beginning of work. She
told me that the ways she knew this café promotes itself is basically only
through their website which they have and give an insight of their products
and interior of this place.
Appendix 5
PR for finding the right unit for rent:
The screenshot above shows the reply of Mr. George who works for Jones Lang
LaSalle company who work with letting and selling property and real estate. After
contacting George, he was quick and helpful to reply even with multiple choices after
I have explained what type of property and for which use I need. After I have decided
to go with the unit in Dawson Street, I found the pdf file which George has sent me
very useful and it offered a very good insight of the unit and its surrounding. The pdf
file consisted of four pages as it can be seen:
Appendix 6
Interior Design by Semir Imamovic
Semir Imamovic is an architect with a lot of working experience working through
Balkan. He has already projected multiple cafeterias mainly in Sarajevo and has
agreed to make this project free of charge for me.
