|Current Status||Concept / Business Plan|
|Funding Required||RM300,000 or less|
|Description||The interest by customers in the coffee house industry is sweeping the country. The CK Coffee is determined to become a daily necessity for local coffee addicts, a place to relax especially for people who try to escape the daily stresses of life and want just a comfortable place to meet their friends or to read a book, all in one. With the growing demand for high quality gourmet coffee as well as great environment and service, CK Coffee will capitalize on its proximity to highly density commercial area in Kota Damansara to build a core group of repeat customers. The site comprises of 1377 square foot intermediate lot inside the newly constructed commercial building namely Sunway Nexis.
The CK Coffee will offer its customers varieties of coffee and smoothies, sandwiches, Laksa Sarawak, pasta and cakes including local Borneo cake namely “Kek Lapis Sarawak”. In addition, the CK Coffee will provide free wi-fi and books so that the patrons can read and surfing while enjoying their visit.
The interior design of the leasehold will focus on projecting a relaxed atmosphere. CK Coffee will be divided into different areas. The ground floor will have typical woody tables and chairs while the loft will be occupied with couches, coffee tables and book shelves filled with books and magazines. A PA system will be installed so that the music and entertainment can fill the café throughout.
There will be nightly entertainment featuring local bands playing soft music and instrumentation from Borneo which will be held once in two weeks. On selected nights, there will be some games to be hosted that will involve mostly from the customers. The wall will be used as a featured wall for the music entertainment which will highlight the beauty of Borneo culture and consequently promotes CK Coffee to others.
The cafe will be operated as partnership between Raja Shahrom and Clare. The CK Coffee intends to raise a funding for the amount of RM 300,000 from the Investor. Profit shares will be divided by 34% to the Investor (in 10 years period) and 66% to the company. The investor will be a silent investor with a payoff of 66% from total investment within three years. The investor will be paid monthly in equal installments including interest.
The company is expected to grow sales revenue from RM 385,000 in first year 2016 to RM 1,374,000 in year 2018. The CK Coffee will strive to maintain a 73% gross profit margin and reasonable operating expenses and target to see net profits grow from RM 106,000 to RM 697,000 during the same period.
|Business Opportunity||Market Analysis:
Kota Damansara is the perfect area for a coffee house such as CK Coffee. Kota Damansara has been experiencing sustainable growth due to its adjoining location to Petaling Jaya and the upcoming new MRT line. One of the major attractions in Kota Damansara is the Sunway Giza Mall which was completed in 2009. This 6.17 acre development comprises 48 units of retail spaces and a 3-storey mall with a 800-bay basement car park with a gross built up area of more than 162,000 sq.ft. Besides the mall, there are institutional centres such as Sri KDU International School, SEGi University and International University College of Nursing. The Giant Hypermarket and AEON BIG, the new Encorp Strand Mall and the Cascades also do contribute to the exponential growth of population of Kota Damansara.CK Coffee will be the perfect complement for Kota Damansara in curricular activities. Live music performance offered by CK Coffee will provide ample reason for customers to fall in love with our coffee house. Another key component to the CK Coffee’s success in Kota Damansara is the fact the younger generations living in this area, namely students and professional ages 18 to 30, which are looking to discover a place to release their daily stresses from school or work apart from gourmet side of food and drink. CK Coffee will be a unique, yet well-round coffee house experience and enjoyable for everyone from the young college to professional.
Market Segmentation and Key Customers”
a) Student/ Youngster Population (50%)
b) Progressive Young Professional (25%)
c) Coffee Coinsures (15%)
d) Other (10%)
• Unique products (i.e., specialized roasts, local ingredients, local themed or named drinks, custom drinks etc).
|Revenue / Business Model||The CK Coffee will provide a unique and relaxing environment to enjoy gourmet roasted coffee and smoothies including the signature dish. The café will also provide an opportunity to visit with friends, catching up sessions, or read a chapter of a book. The café barista will be provided an appropriate training for self-skills improvement to ensure they can offer assistance in any coffee purchase while simultaneously providing customers with outstanding service. The CK Coffee will penetrate the market through a variety of marketing including viral, coffee tasting event promotion, music events and customer loyalty discount programs. Through the use of these advertising mediums and marketing strategies, we believe that we will be able to reach the target market from every angle.
Maintaining the quality and consistency of the products shall be the main key in order for CK Coffee to sustain successfully in the market. Another important factor in the success of CK Coffee will be the continuity of branding the image and the principle behind the brand, by using the logo on everything involved with the coffee house such as on the coffee cups, paper bag and serviette.
In short term, a number of promotions and activities are planned around the launch of the business to create awareness. CK Coffee will provide discount up to 30% during first 2 months of its operations and traditional performance from Borneo will be hosted during its grand opening. The company will publicize the launch of the café via mouth to mouth, flyers distribution, banners and media socials such as Facebook, Twitter and Instagram.
The CK Coffee will use the following methods to increase sales revenue:
|Management Team||CK Coffee will be owned 100% by CK Coffee & Tea (002530833-V) registered under partnership between Clare bin Kimduit and Raja Shahrom Nizam Shah bin Raja Shoib.
a) Raja Shahrom Nizam Shah bin Raja Shoib, Founder and Director
b) Clare bin Kimduit, Co-Founder and Director
Management responsibilities regarding finances, growth, employee and overall operations and both will oversee and contribute equally in the administration and decision making process. Each member will also be responsible for the management of the day-to-day operations including the following:
a) Providing direction for the business
|Company Background||Company registered on 8/4/2016.
The location has been identified and booked. Currently in the stage of looking for start-up investor before end of June 2016. The target opening of the cafe is on 16 July 2016.
|Funding Milestone||The CK Coffee & Tea intends to raise about RM 300,000 from an investor. The investment capital will be used for the following startup expenses:
a) Securing the retail store
b) Modification of the retail store
c) Supply for equipment
d) Supply for raw materials
e) Advertisement and other startup expenses
|% Equity Allocation||25%|
|Risks and Mitigation||Market Risks:
Unable to achieve volumes of customers due to unforeseen circumstances.Mitigation:
1. Double the effort on marketing strategy by utilizing various marketing techniques.
2. Might employ or seek advice from experienced personnel regarding the issue to help strengthen our position
3. Reconsider and revise financial plan and make readjustments accordingly.
3. Consider deploying more marketing strategies.
4. Establish strong rapport with revisiting customers.
|Exit Strategies||Within 2 years of operation, if fail to achieve at least break-even, we shall proceed with company valuation and exits|
|Company Name||CK Coffee & Tea|
|Business Address||NO.3, JALAN PINGGIRAN 1/8, TAMAN PINGGIRAN BATU CAVES, 68100 BATU CAVES, SELANGOR|
|Contact Person||RAJA SHAHROM NIZAM SHAH|