Coffee Business Strategy Planning

Project Charter

 

Project Title:  Funky Shea Coffee Company

Background Information:

 According to the market forecast for the coffee industry, coffee is the most consumed beverage worldwide (M, 2018). The demand for coffee has increased in the recent years due to the millennial population fueling its growth and craving more options and variety (M, 2018). The average consumer drinks about two cups of coffee per day (Goldschein, 2011). In 2018 an estimated 158 million bags of coffee were sold and produced(M,2018).

Scope:

The scope of this project is to organize, plot, and constitute a modern- retro coffee shop with a drive thru that offers a variety of customizable coffee, tea and breakfast options. The location is set for downtown Tampa, Florida. Downtown Tampa is filled with many businesses and people always on the go but has only a few common coffee businesses in place. With an increasing consumer demand for more options and variety in the coffee industry, this business will fill the niche in the market to compete with companies like Starbucks and Dunkin Donuts. This project will cover all processes from the physical construction of the store to the interior design, set up, management, best practice method and resources needed to start this business.

Objectives:

Construct new building within 6 months

Create Customer awareness through marketing

80% or higher customer satisfaction within the first year of operation

Create a website for business

Invest in google maps listing

Maintain 75% gross margin

Generate at least $50,000 in sales revenue per month

Maintain a high standard of quality and service provided

Create friendly / comfortable atmosphere

Become recognized as “new best coffee spot” in Downtown Tampa

Success criteria:

The success criteria for Funky Shea Coffee company will reflect the requirements that ensure successful implementation and completion of this project. Success in this project is defined as the following:

Complete all tasks within scheduled times

Stay within budgeted amount for project

Minimize delays by Daily, weekly and monthly evaluations

Minimize Risks by enforcing strict protocols

Evaluate employee performance to ensure maximum efficiency

Create a positive culture within the workplace

Strong strategy and practice

Keep up with metrics and track repeat business

Staying competitive within the area/ industry

High repeat business

Funky Shea Coffee Company is planning on proceeding with a customer-oriented approach to ensure that the business will be given the best opportunity to succeed and grow. Funky Shea Coffee Company will focus on provide the highest quality products and services to customers, which will help the company expand its customer awareness.

Proposed Budget/ Timeline:

Funky Shea Coffee Company will set aside a budget to include constructive costs, materials, resources, employment, internal design, equipment, grand opening, marketing and promotions. The set budget for this project is $500,000. The estimate time for store opening is 1 year from the construction date.

High-Level Requirements:

Successful implementation of strategic plan for business operations

Hire reputable construction company

Funding for materials, equipment, and resources

Full staff for grand opening

Exceed monthly sales goals

Keep errors/ delays to a minimum

Stay on top of construction schedule

Be attentive and proactive to any setbacks/ deadlines

Manage Material/ product Inventory

Acquire all necessary resources

Align vision, mission and values

Target appropriate age consumers

High Level Project Description/ Boundaries:

The main goal of this company is to develop other options and varieties of coffee, tea and breakfast options for consumers to satisfy the increased demand for the popular beverage/ breakfast on the go concept. Considering the demographics of the downtown Tampa, this business will be fulfilling a niche market of increasing coffee businesses and competition in the area. By opening Funky Shea Coffee Company, the business should be able to achieve their goals of meeting their monthly sales goals with competitive pricing, quality and service. The new presence in the community will help attract customers, revenue and repeat business once they experience the high-quality service and options that Funky Shea has to offer.

Boundaries related to this project consist of:

Thoroughly training all employees

Having sufficient amounts of product to meet consumer needs

Installing all necessary utilities

Organized work schedule

Written policies and procedures for each process needed to run the business

Schematic/ store set up

Smart Location choice/ marketing strategy for area

Limiting changes to construction schedule

Assumptions:

Funky Shea Coffee Company is assuming that by investing in the niche market in the downtown Tampa area and expanding customers options for coffee, tea and breakfast spots will give them an opportunity to make a significant presence and offer their service and quality to the community. Exposure will aid Funky Shea Coffee Company in attaining revenue and customers.  Funky Shea Coffee Company is assuming to be able stay on budget and complete all tasks including construction within the intended time frame. Funky Shea Coffee Company is assuming that their commitment to their service, quality and customers will provide the repeat business they are looking for in the long run. Funky Shea Coffee Company is assuming they will be able to stay competitive with the surrounding coffee businesses by meeting customers price, quality, and service needs better than their competitors.

Constraints:

Possible constraints that Funky Shea Coffee Company may face can include poor market size, decrease sales, delays in obtaining necessary resources, delayed deadlines, increased expense causing business to go over the budget. Problems staying competitive within the downtown area, and decreased customer satisfaction are all restrictions that could keep this business from completing the project successfully.

High Level Risks:

Decreased economic conditions

Decreased profit and sales revenue

Competitive pricing

Theft and damage

Meeting supply and demand requirements

State/ city limitations/ restrictions

Constructions delays

Delaying grand opening

 

Milestone Schedule:

Milestone   Expected Date   Actual Date

Project Start Date

 February 1, 2019

 

Select Location

 February 16, 2019

 

Location Approval

 February 21, 2019

 

Hire Construction Crew

 February 27, 2019

 

Plan Layout for Store

 March 5, 2019

 

Begin Construction

 March 10, 2019

 

Hire Employees

  August 15, 2019

 

Create Budget/ Cost Plan

  February 10, 2019

 

Obtain Funding

  January 11, 2019

 

Established policies, procedures and operations

   April 16, 2019

 

Marketing/ Advertisement deadlines for opening

  April 25, 2019

 

Obtain resources, materials, product and equipment for store

  April 10, 2019

 

SWOT analysis

  March 13, 2019

 

Supply and demand requirements set

  April 9, 2019

 

 Complete Construction

  August 10, 2019

 

Final Project Report

  September 25, 2019

 

Project Completion/ Grand Opening

  February 1, 2020

 

 

Financial Resources/ Budget:

                   Category      Monthly Cost Associated

Payroll/ Salaries

$ 50,000

Construction Costs

$ 20,00

Marketing/ Promotions

$ 10,000

Utilities

$ 2,000

Insurance

$ 2,000

Equipment/ Material costs

$ 40,000

Expenses/ Supplies

$ 4,000

Product Purchase

$ 5,000

Total Cost per month

$ 133,000

Total Cost per year

$ 1,596,000

 

Stakeholders List:

Property/Business Owner

Construction Team

Suppliers

Shareholders

Employees of business

Project Manager

Community/ Customers

City/ State

Project Approval Requirements/ Exist Criteria:

Some requirements for Funky Shea Coffee Company consist of obtaining a construction permit, passing building inspection, obtaining sales tax license, Business license/ permit, Fire department permit, Budget approval, and lastly funds approval. All these major components are crucial to the success of the project. The Project manager will decide if project is on track to meet expectations set by the Owner. The project manager will have the sign off on all final decisions for the project.

Project Manager will be prepared will all necessary tools, polices, procedures, deadlines prior to the process bringing. The project manager will be responsible for producing a final report to assure the project has meet requirements and deadlines.

 

Assigned Project Manager, Responsibility & Authority Level:

The Project Manager will be Stephen Mayer’s. Mr. Mayer’s will be in charge of making sure the strategic plan is implemented as intended.  Mr. Mayer’s will also be responsible for assuring all employees are complaint in Funky Shea Coffee Company processes, procedures, and polices. The Project Manager will assume responsibility for any obstacles that way arise. The project Manager will stay organized communication and an appropriate schedule for tasks. The project manager will use good time management processes when coordinating work place schedules and coverage for all shifts.

Authority/ Sponsor Authorizing Project Charter:

 

Approved by Project Sponsor:

 

Name and title:     Date:

 

 

 

References: