Food and Beverages Management
Food and Beverage Concept
The food and beverage concept gives a general impression on what a lounge or a restaurant should convey (Davis et al., 2013). It gives a mental picture of what the place will look like. The menu, architecture, staff, and decorations are among some of the elements discussed in food and beverage concept. Many popular hotel brands consider food and beverage concept to be the first stage in development of new hotels. Davis et al. (2013) assert that when building a restaurant, ideation and execution are vital steps in ensuring expected standards are maintained. This concept is vital in governing all necessary operations in running the business, such as services, menus, marketing, service operations, and branding decisions. As such, planning for a business is a necessary step in projecting the future of the business. The research herein describes a plan for a food and beverage outlet to be established in one of the locations in Australia. A thorough research on location, target market, competition, what to sell, and overall working capital is necessary in achieving a good restaurant.
Name of the Operation
The name of the business will be Viking Coffee Stop. The name of this operation is derived from the type of operation run within this business. Generally, Viking are known for their health meals and living a natural lifestyle. Therefore, the name of the business will depict the nature of this business, which will entail offering a natural like environment and services that portray what life was in the past centauries based on Vikings life. Moreover, the proposed location of the business being at a close proximity with the ocean gives the name a deeper meaning since Vikings treasured waters as it was their primary means of transport to other lands. An alphabetical capital V will serve as the trademark and symbol for this business operation.
Location
This business will be located in Australia in one of the smallest but termed by Stilinovic (2016) as the most affluent suburbs known as Point Piper. Point Piper is a suburb, which is regarded to be the most expensive in Australia (Stilinovic, 2016). The expensive lifestyle within this suburb is assisted by an inclusion of Wolseley Road, which connects to waterfront residences where Sydney’s top barristers, judges, doctors, and top businessmen live. With the proposed outlook of the business, this location is the best choice based on the serenity of the environment and proximity to water. Moreover, the residents within this location serve as the best target market for the business.
Competition
The nature of this business operation is new in the market, hence, it will possess a unique outlook and services provided unlike other restaurants within this location. However, it will major in selling coffee and offering serene environment for the customers to enjoy coffee. There is no business that portrays the proposed operation style of business, hence, less competition in terms of services and environment provided is expected. However, there are several businesses within the proximity of Point Piper suburb that offer commodities that will be sold within this business, coffee. Such businesses include, Elbon Coffee, Bernasconi’s, Bake bar, and Espresso (Lydia, 2017).
Elbon Coffee is expected to be one of the major competitors in terms of commodities sold. It is one of the businesses that has gained reputation over the past years for addressing all the coffee needs. Some of the commodities sold within this business and are expected to be incorporated in our menu include coffee with flavours such as organic, Columbian, Caramel and Kenyan (Lydia, 2017). What differentiates this business from others is the type of services offered where the shopkeepers give customers a happy atmosphere by imparting knowledge behind different coffee types and further describing the processes behind making the best coffee. Moreover, Elbon offers a wide range of snack to complement coffee. Therefore, this business is well established as a coffee haven. However, a distinction between this business and our business will be defined by our business architecture and added commodities in the menu. A healthy competition is expected between Elbon coffee restaurant and Vikings Coffee Stop. However, we cannot underestimate other businesses, hence, we will always be on the lookout for competition and always aim at possessing a competitive advantage to be well positioned in the market.
Product
Sydney is one of the regions in the world characterized by its coffee culture (Morris, 2013). The city is filled with several coffee shops, which offer aromatic blends of beans, unique and rich coffee blends. Therefore, it makes sense that Coffee culture is highly embraced by Australians. The love for coffee in Australia is portrayed by numerous households in this region possessing some sort of coffee machine (Lydia, 2017). As such, venturing into the coffee market is one of the businesses that is quite promising, hence, the choice of selling this product in our business operation. The main product for sale will be coffee, both for consumption within the facility or packaged coffee. Different varieties of coffee to exceed those offered in the existing coffee businesses will be sold to possess a competitive advantage. Some of the expected coffee roasts to be sold include Caramel, Vanilla, Cinnamon dolce, Mocha, Caramel iced coffee, organic, Columbian, and Kenyan (Starbucks, 2017). In addition, snacks which complement coffee, such as chocolate wafers, lindor balls, ginger thins, and anti-coffee breath mints, will be sold.
Target market
The median age of people living in Point Piper based on the 2011 census was 48 years of age. The main occupations of this age group is “38.5% Professionals, 28.2% Managers, 11.0% Clerical & administrative workers, 7.4% Sales workers, 5.7% Community & personal service workers, 3.5% Occupation inadequately described/ Not stated, 3.0% Technicians & trades workers, 2.5% Laborers (Point Piper Demographics (NSW) Local Stats, 2017, np.).” With a median household income of $2680 each week and an average income of $1370 a week as per the statistics, these individuals will be in a position of affording the purchase of coffee at least thrice a week. Therefore, the target market is 48 years of age individuals in the middle of week and families or tourists during weekends who are driven by the motive of exploring the new Viking coffee world in the city.
Service Style
As earlier mentioned, this business operation aims at embracing an ancient outlook where clients will enjoy the natural atmosphere that will remind them of the ancient lifestyle. The furniture and general architecture of the premises will emulate the lifestyle of Vikings. The baristas will be dressed as Viking, but will offer topnotch modern services that will outmatch other coffee shops. On site, Espresso bars will be utilized in providing full range of coffee flavors and serving by baristas. The baristas will be highly trained to offer the clients best customer oriented experience as a way of encouraging next time visits. As motivated by Starbucks (2017), the long term goal of the business is to offer an online coffee selling platform where customers can order from the company’s website and have their ordered product be delivered to their ordered destination.
Alignment of Style of Service
Use of onsite espresso machines is a service style that aligns to the future trend of easing traffic (Thurston, Morris & Steiman, 2013; Morris, 2013). It is expected that the business will achieve a large customer base hence traffic may be expected in future. The best way to ease such traffic is seek a way of fast service of the customers. Moreover, use of these machines will give the customers a choice of picking their flavor of interest with less supervision. With the globalization in terms of industrialization and adoption of machines in foods and beverages industry, use of onsite espresso machines is an ideal technique. On the other hand, baristas dressed based on the Viking culture are expected to be one of the features that will attract consumers to this business. According to Thurston et al. (2013), baristas who are highly trained to maintain high customer standards, will also add to the reputation of the business based on the current trend. By emulating the culture of Vikings, the target market is expected to increase since tourists will be attracted to this business to not only enjoy coffee but also the culture of Vikings. In addition, a serene environment for enjoying coffee will serve as an attraction aspect to the target market of businessmen and employees who spend much of their time in busy facilities with less serenity (Point Piper Demographics (NSW) Local Stats, 2017).
Sample Menu
As earlier stated, there are several coffee shops in Point Piper Suburb. To gain a competitive advantage, selling of commodities not available in the other shops can serve as an added advantage. Moreover, the target market of individuals around the age of 48 may decide to stop over the business for a meeting where coffee can complement such an instance. Additionally, the target market may stop over for a snack at any time of the day. Offering snacks which complement coffee sold can serve as an added advantage for the business. It is necessary to display the menu in the business’ website as a way of preparing the customers and possible customers on what to expect upon arrival to this facility. This menu is motivated by the preferences and needs of Australian community as the individuals like coffee (Morris, 2013). Moreover, the menu embraces some of the products sold in Starbucks which is a major coffee business in Australia. Below is a menu of products sold in Vikings Coffee Stop.
Table 1
Menu
| Coffee and Espresso | |||||||
| Brewed Coffee | Kenyan Coffee | Organic Coffee | Espresso | Caramel Mocha | Cappuccino | Caramel Machiato | Columbian Coffee |
| Vanilla | Cinnamon Dolce | Caffe Americano | Flat White | White Chocolate Mocha | |||
| Tea and Chocolate | |||||||
| Classic Hot Chocolate | Tea Chai | English Breakfast Tea Latte | Freshly brewed tea | Mint Blend herbal infusion | Earl Grey tea | China Green Tip tea | White Hot chocolate |
| Iced Beverages | |||||||
| Iced Shaken Tea | Iced Latte | Cold Brew | Iced Shaken Lemon tea | Iced Americano | Caramel iced coffee | ||
| Snacks | |||||||
| Sandwiches and wraps | Cakes and slices | Chocolate wafers | Lindor balls | ginger thins | Anti-coffee breath mints
| ||
Proposed Financials
Based on Starbucks Corporation (2016), the following financial approximate will be needed for effective startup and running of this business.
Table 2: Proposed Financials
Approximate Costs
Operating Expenses Annual Finance Approximation | ||||||||||||||
| Payroll | $322,000 | |||||||||||||
| Sales and Marketing and Other Expenses | $90,000 | |||||||||||||
| Depreciation | $8,000 | |||||||||||||
| Leased Equip/Van/Dispensing Systems | $1,300 | |||||||||||||
| Utilities | $23,000 | |||||||||||||
| Insurance | $19, 000 | |||||||||||||
| Other Taxes | $22,000 | |||||||||||||
| Coffee beans and other raw materials | $ 1.2 million | |||||||||||||
In order to maximize profitability, selling of the products at a price slightly higher above the normal price will be applied. However, this will match the standards of the business to ensure customers’ satisfaction by ensuring that the quality of products is better than what is provided by our competitors and better customer service. Moreover, minimizing the input to maximize output will be necessary to achieve profitability. The products should be bought at a fair price from reputable businesses to avoid any losses associated with spoilage of beans. In addition, insurance will be paid to safeguard the operations of the business in case of any set back that might lead to losses such as floods or fire.
Supplier Management
As stated in Starbucks Corporation (2016), to ensure that high standards are managed in the coffee we sell, the company will be involved in purchasing, roasting and packaging of the coffee. Direct purchase of coffee beans from suppliers in coffee producing regions will be utilized as a strategy for maintaining a world class quality in product sold. In comparison to the general Starbucks global outlets budget on green coffee beans in fiscal year 2016 of $1.1 billion dollars, a supply of about $900,000 will be needed annually (Starbucks Corporation, 2016). The business will depend on its relationship with coffee producer and exporters of green coffee for supply. This will prevent the risk of non-delivery of the purchases. A broad range of products such as flavors, cutlery and cups will be bought from companies within Australia to prevent risk of non-delivery and to promote business within Australia.
References
Davis, B., Lockwood, A., Pantelidis, I., & Alcott, P. (2013). Food and beverage management. New York: Routledge
Lydia, A. (2017). Lydia A.’s review of Elbon Coffee. Yelp. Retrieved from https://www.yelp.com.au/biz/elbon-coffee-double-bay?hrid=JsLJ_RbaV250qm3CvipnBQ
Morris, J. (2013). Why espresso? Explaining changes in European coffee preferences from a production of culture perspective. European Review of History: Revue européenne d’histoire, 20(5), 881-901.
Point Piper Demographics (NSW) Local Stats. (2017). Point-piper.localstats.com.au. Retrieved from http://point-piper.localstats.com.au/demographics/nsw/sydney/eastern-suburbs/point-piper
Starbucks Corporation. (2016). Fiscal 2016 Annual Report. Seattle. Retrieved from https://s21.q4cdn.com/369030626/files/doc_financials/2016/Annual/FY16-Annual-Report-on-Form-10-K.pdf
Starbucks. (2017). Flavored Coffees | Starbucks® Coffee At Home. Starbucks® Coffee At Home. Retrieved from https://athome.starbucks.com/flavored-coffees/
Stilinovic, M. (2016). Forbes Welcome. Forbes.com. Retrieved from https://www.forbes.com/sites/millystilinovic/2016/06/11/the-10-most-expensive-suburbs-in-australia/#25131cd6719f
Thurston, R. W., Morris, J., & Steiman, S. (Eds.). (2013). Coffee: A comprehensive guide to the bean, the beverage, and the industry. Maryland: Rowman & Littlefield Publishers.
