Introduction to Business Presents: ~ Summary of Findings~ Vision Statement Company Objectives Products and Services Market Analysis Marketing Strategy Competitive Advantage Operations Management Team Members Funding: Start-Up Costs, Pro-Forma Cash projections ~Vision Statement~ Thunderstruck Java will provide a morning beverage service so students are settled, focused, and ready to learn. If demand is as expected, TJ’s will generate enough cash to fund a more ambitious café environment in the future, providing a social and calm atmosphere to start the day for the students, by the students ~Company Objectives~ Sell morning beverages Make Money Expand if possible Morning coffee/lounge experience Student bonding ○ Students on time! ○ Settled and ready for the day Thunderstruck Java=Authentic LEARNING Real business experience to reach curricular goals ~Products and Services~ Provide a morning experience: Beverages Hot chocolate Coffee Tea (Chai?) Cappuccino Possibly food in the future - Donuts or bagels - Cinnamon rolls (Foods class creations?) - Fruit and/or whole grain options ~The Market~ Middle School (12-14) Hot chocolate primarily High School (14-18) Strong demand for ○ Cappuccino ○ Hot Chocolate ○ Coffee/Chai tea ~Survey results~ Student Comments out of 304 surveys returned: ○ 152 positive comments ○ 12 unfavorable comments Frequency From 1 to 5 times per week Reasonable assumptions over time Graphs of beverage preferences Beverage Preference Survey Results 217 190 112 66 Coffee Top 2 Tea Top 2 HC Top 2 Cappuccino Top 2 Beverage Preferences by Percent Coffee Top 2 19% Cappuccino Top 2 37% Tea Top 2 11% HC Top 2 33% Patronage per Week Four x 9% Five x 10% One x 12% Two x 35% Three x 34% ~Marketing Strategy~ Announcements Print Posters Flyers on Lockers Web High School Home Page Facebook? Promotional Ideas Discounts: (good grades or grade improvement?) Buy a permanent cup for cheaper refills? ~Competitive Analysis~ Direct: Indirect: The Depot IGA Norm’s BP Crystal Café Kafe Beans Home Subway SandBur Corner Scandy Cenex Scandy Bakery ~Competitive Advantage~ More convenient Lower costs Higher profit margin Motivated sales staff Possible future: A comfortable socializing place in the morning will attract ongoing student patronage ~Operations~ Purchasing: Webstaurant or Sysco Supplies: Drink Mixes, Cups, Condiments Inventory control part of learning experience Staffing Quality Customer Service Volunteer Business Students: various possible incentives Equipment Karma 456 Post-Mix Cappuccino Dispenser ○ Compact Size, 3 Flavor capability ○ Pour-Over design, can convert to water hook-up ○ Reasonable Price ○ See Specifications Facilities Ticket Booth Area… for now!? ~Source of Equipment/Products Pamasco, supplier of KARMA 456 Webstaurant Store: ○ French Vanilla, good reviews ○ Fat-free/Sugar-free option? ○ Hot chocolate ○ Chai tea ○ Cups/lids SYSCO food service: costs are unclear but potentially favorable ~Equipment Proposed~ Pour-over design Thunderbird! Easily converts to water line Grows with company Light enough to: Sell at Football game Basketball games Track meets ~Management Team~ Student managers and student accountants Mrs. Scott Workers Students from high school business classes Co-Op Students Schedule: 3 Days/Week Preparation/Clean Up 7:15 to 8:25 Open Doors At 7:30 Close Doors At 8:15 ~Finance~ Start-Up costs: Equipment: ○ KARMA 456 ○ Coffeemaker $1,458.17 0 Initial Supplies: ○ Mixes: ○ Coffee/tea/creamer ○ Cups/lids ○ Shipping $ 234.00 60.00 99.98 100.00 Total $1,952.15 ~Finance~ Revised Cash Flow Projection: (Conservative!) 25 customers/day ○ $25.00 Gross Sales ○ -12.25 Cost of Goods Sold (.49/cup*) ○ $12.75 Net Profit/day 180 days of school, x $12.75 = $2,295 Profit 2011-12 (excludes events) *Cost per cup: supplies from Sysco Cup/lid: 13 cents + Mix: 33-36 cents = Total 46-49 cents ~Growth Plan~ Future products and services ○ food, possibly bagels and or other morning food ○ more drink options, different flavors Expansion ○ location ○ size Extend hours Consider paid positions, Co-Op employees Growth of Business Ed. Department ~Potential Barriers~ Wellness Committee Fat-free, Sugar free options Scheduling Incentives to student workers, managers ○ $ Credit for educational trips? ○ Grade, extra credit points? ○ Work experience for applications, scholarships ~Contingency Plan~ Sell to IS Club for permanent home at Football Field Sysco: “no charge” machine Either way, Board’s investment is covered in year one. ~Thank You!~ We appreciate your consideration!