This plan also includes chapters on the business, offering and key benefits for customers, market focus and forecasts, sales and promotion plans, competitor analysis, a management team, and a detailed financial plan.
1. EXECUTIVE SUMMARY
In the executive summary, you can state the purpose of business plan. I.e. for funding from Irish banks or attracting investor for Irish venture.
Our initial statement to lenders, this business plan, is a candid disclosure of cnvn’s business Proposal – we intend to set realistic business expectations and eliminate any questions about this new venture’s profitability.
An introduction of this business plan.
You can state what this business Plan covers.
This plan also includes chapters on the business, offering and key benefits for customers, market Focus and forecasts, sales and promotion plans, competitor analysis, a management team, and a Detailed financial plan.
State how funding will be spent. Where the money will be sourced?
Total funding for new business will be €300,000 from a combination of owner investment of €222,000 And bank funding of 78,000. The main cost of start-up will be fixtures and fittings, inventory, Equipment, and refrigerators. It is estimated that the total cost for refrigerators will be 90,000 euros, of which 78,000 euros will be funded through a bank loan.
Detail about business and how it will be structured. What would be the offering?
CNVN will set up three businesses in a leased premise containing 3 Floors of the building. The Company is entering into a ten years Lease Agreement for a 3-story building located in Henry Street, Dublin, for an annual rental value of €225,000. Three Floors of the building will support three different businesses. Ground Floor will establish a modern convenience store focusing on health items. The Second Floor will have a Café, and the third Floor will build a Cookery School. CNVN will be a premium convenience store, located at the heart of City Centre Location Henry Street in Dublin. Bushiness aims to increase penetration of the Dublin food market, and our intention is to maintain and grow the brand for the long term. We aim to serve the nearby residential community and workingclass of Dublin by providing them all they need under a single roof. We have strategically selected a ground floor of a property, located in Dublin’s main city center, to be converted into our store. The location is ideal for opening a convenience store since it is amidst all commercial tourism and business activities and a very central and sought-after location.
Introduce about the management team but only in a summary format
The business will be operated under CNVN, a successful group of companies in Dublin. Mr. Al Blogger has been associated with several restaurants in Dublin and also wholesale distribution business. Due to the strong background and experience in the sector, Mr. Al Blogger knows precisely how to start a convenience store, and he has all the resources needed for creating a convenience store. Mr. Al Blogger himself will manage the Company, and he will be assisted by experienced team members who are highly experienced in retail businesses. The store will be operated and driven by two shifts of workers. A law firm will be contracted to cover the legal aspects of the business, and an insurance firm will be contacted to insure the Company.
Summary of market opportunity and offering
The convenience store industry is one of the few sectors that have seen a constant increase in revenue and the increase in business locations with time. The number of convenience stores has increased during the last three decades and is still on the rise. The main reason behind this increase is that it is straightforward to open a convenience store, as you can see from the hundreds of convenience store examples present in every major city of Ireland. The actual challenge is to successfully manage that convenience store to yield profits from the start.
Unique selling point
Although there are other established convenience stores, we have several competitive advantages over other competitors. The first one is relationships with the suppliers, and the fact business is already in the Food Distribution space, it has strong purchasing power. It can offer quality food items at competitive rates. Our second competitive edge will be the availability of everything, every time.Unlike other stores, we will make sure that our stock never runs out and everything our customers may need is available to us. Finally, our customer service will be the best in town and will also give us an edge over other convenience stores.CNVN’s competitive edge is its location, focus on customer service, and the owners’ experience and knowledge.
Financial forecasts summary
Detailed and conservative projections anticipate growth in profit yearly.
The company will make a healthy profit for its owners and provide a rewarding work environment for its employees. The slogan is “because people matter. The company’s mission is about friendliness, individual pride, and company spirit. All of this helps create the continuously positive cnvn’s customer experience unique to the business.
Our vision is to be viewed as a respected quality convenience food store and cafe, providing high-quality food and beverages at a reasonable cost.
Keys to success
Here you can include what are key success factors for a convenience store in ireland.
The keys to the success of cnvn are as follows;
- Knowing the customer
- Effectiveness of inventory and space allocation. Assortments have gotten larger and larger.
- Knowledge means better supplier relationships.
- Shop Design: Shop design that will be visually attractive to customers and designed for fast and efficient operations.
- Marketing – We will need to target our audience early and often. While the business is located in a central and accessible location, many people will have to be re-introduced to our convenience store and a Cafe—word of mouth, social media, customer reviews, and paid advertisement.
- Management – We maintain a firm grasp on costs, such as food, beverage, and labor costs. Stock is held by careful planning, and quality control is critical and ensures zero waste is achieved.
- Click and Collect Delivery Service- The influence of online shopping from the comfort of home and especially during the corona era, online has become far important.
Our most significant performance standard is the Steps of Service.
Our standards will be fully and consistently implemented only once we provide on-going training and coaching to our employees. Day-to-day supervision is required to ensure that employees follow the correct procedures every time they perform a task.
Key to Success is
- Social and emotional engagement
- Food variety and quality
- Pace of service
To improve our savoury food menu, we will apply the operating template for food production. In contrast, it is necessary to maintain the standards that have been set for the patisserie, sandwiches, fresh juices, and Bakery.
The Company aims to develop a brunch menu to increase weekend demand while delivering on-demand dishes within five minutes.
Café will align the operations of the Bakery with the budget. It will structure the menu to efficiently produce many menu items and serve food within five minutes after customers’ order
Hygiene and CCP reporting are a mindset, and businesses accept only the highest standards.
Roles and Responsibilities of Cafe Management Team
The Company will recruit for a chef manager.
2. COMPANY DESCRIPTION
CONVENIENCE STORE Limited was formed on 13 April 2018 under the laws of the Republic of Ireland.
The Company has a food distribution business, which supplies to several restaurants located in Dublin. CNVN’s Convenience Store and café will be an add-on to the existing setup. The store will occupy a leased property, which is located on Henry Street Dublin. The new building contains three floors.
Promoters & shareholders
Mr. Joe blogger is the sole director and holding 100% shares in cnvn.
Cnvn has appointed happy accountants limited as its accountants and advisers.
Cnvn is registered as a limited company with a company registration office in ireland.
Main products & services
Cnvn will conduct three operations on separate floors on a leasehold building.
A health theme convenience store will be established on the ground floor. The first floor will set up a café and food service, whereas a cookery school will be set up on the second floor.
3. MARKET ANALYSIS
Dublin has a booming grocery Market as consumer trends within the Irish grocery market shifts further towards quality Irish foods.
Dublin’s food to go scene is flourishing, driven by healthier food and drink options, vegan and plant-based offerings, personalization, digital technology, and sustainability.
Pest analysis for a convenience store:
- Political factors include government policies, legislation, and foreign influences on Convenience Stores and Café Business.
- High standards relating to coffee-producing methods are becoming more critical in the industry and may gain political prominence. There is increasing pressure for businesses to trade ethically, socially, environmentally, and economically responsible.
- This is reflected in the coffee industry by increased demand and rising market value for sustainable coffees such as certified coffee and fair-trade coffee, which guarantees producers a fair price. Fairtrade is also a means by which the coffee shop industry can differentiate their products and gain a socially responsible reputation; Starbucks customers now have the option to buy fair trade coffee.
- Ireland’s economic condition is well supported by reasonably stable inflationary trends, bottom-line interest, and economic growth. The economic conditions are improving across the country, and with favorable government policies, FDI and economic growth are expected to result in better economic conditions. Thus, expected GDP growth would increase Coffee spending on adopting technology and expansion in phone net-woks needed for new and expanding businesses.
- The coffee market must adapt to a change in consumer attitudes, or else it may be threatened by health and lifestyle issues. In 2003 the hot drinks market declined by an estimated 2.3%. Consumers, especially young people, are becoming more health-conscious, making coffee a less attractive choice; the increasing number of alternatives available such as health and energy drinks are becoming competitors in the coffee industry. Research carried out by Mintel shows that there is an increased diversification of tea, with a trend towards premium and herbal teas. The coffee industry responded to this change in attitude by providing de-caf drinks, options such as soy milk, and alternative beverages such as freshly squeezed fruit juices, chai lattes, and herbal teas.
- Consumers are less inclined to buy coffees and teas in supermarkets due to the wide variety of coffee shops available today. Hi-tech equipment and premium ingredients are now easily accessible. They are used to make various hot and cold beverages that are sold in coffee shops, from cappuccinos to ice blended coffees. As a result, consumers are becoming more knowledgeable about the ranges of specialized fresh coffees and premium teas available, and their tastes are changing to accompany them.
- The environmental impact is almost always positive, and it is essential that coffee production and processing be taken into account for ecological needs to ensure optimal physical sustainability. Even more necessary is that the economic environment should be to encourage stability and reasonable living standards for the populations involved with coffee and make sure sufficient care should be given to make sure the maintenance of the quality.
The main elements of SWOT analysis allow appreciating the degree of these different points:
Although CNVN thinks to have significant advantages over competitors and many opportunities to exploit to develop and write a company success case, there are also potential risks and threats that should be considered in managing CNVN.
Our customers define competition. Our competitors are the set of alternatives considered by them. The increase in food offerings in the area will further enhance Henry Street’s status as a destination for socializing. Currently, Covid 19, increased cost of raw materials due to inflation, the pressure to improve the living and minimum wages, increased competition, increased shortage, cost of obtaining skills in a craft, and the outcome of Brexit are unknown. If the market slows, over-saturation will occur, and only the most relevant and cost-effective businesses will survive for us to compete.
Our competitors include conventional outlets, delivery services, like Deliveroo and Just Eat, and better in-house or office solutions. These offerings take customers off the streets and out of our reach or bring other competitors within our customers’ reach. As the weekend and weekday customers’ needs differ, we developed sets of considerations for both types.
Competition in the grocery market has not been fiercer. However, major retailers want to gain more and more of a share. Among retailers, Tesco has a 22% share, and after that comes, Super Value stands at 21%.
Reflecting a broader shift in leisure activity, the area surrounding Henry Street is becoming increasingly attractive to foodservice consumers, leading to both a more general potential market and increased competition. The number of Cafe and social outlets in Henry Street, Henry Street is expected to grow further, notwithstanding Bord Bia’s warning that cities have reached a saturation point, as hospitality offerings are increasingly replacing retail units. There is significant evidence that foodservice operations are now paying retail rents in the area and that the differential between retail and retail hospitality is diminishing.
There are many small and big competitors, but CNVN uses its market image and references to capture new clients and survive.
CNVN has identified the leading competitors and other relevant competitors, both local and international.
The main elements of SWOT analysis allow appreciating the degree of these different points:
Our advantages are based on quality, which qualifies us to be considered by consumers. Consistency is the foundation; it is essential, but not enough for us to compete for our consumer’s time, money, and attention.
Some qualities make our convenience store and café different and better enhance our market position, but other competitors have similar attributes. These features matter deeply to our customers; they bring visitors.
Market Size & Segments
Our market is on Henry Street, which has an average daily footfall of 80,000. The purpose of segmenting the market is to help us focus on our offerings and communication.
Our target customers are street shoppers, tourists, and residents who visit the City Centre to work, shop, socialize with friends and family, and discover. They are open, progressive thinkers who are explorers at heart, actively engaged in their communities. They are discerning in their choices. We plan to focus on meeting the needs of both weekend customers and weekday customers. Growth will come from repeat customers and word of mouth. To increase sales, we will improve the fundamentals of how we work. We will gain the trust of weekday customers by offering them consistent quality and reliable service. We will gain confidence in our ability to maintain their schedule. This, in turn, will affect our business on weekends, when there is room to increase covers. We will also improve our offerings and weekend celebrations to increase average spending and increase traffic.
We seek to speak to those with a ‘Healthy Food Grocers’: open, progressive thinkers, explorers at heart, active and engaged in their communities. They are discerning in their choices.
They value a Grocery and cafe experience: Exceptional quality product delivered as an experience; an affair with an emotional and social dimension; one that facilitates a connection with real people and the living fabric of society.
We aim to provide an experience that stimulates six senses.
Who are modern explorers?
- They make up 23% size in the population
- They are the most valuable segment in the market
- 50:50 female/male
- Educated & working full time
- Higher than average social class
- Enjoys eating out, trendy places
- Busy managing kids and work.
- Cash-rich, time-poor. High expectations from life. Discerning Consumers.
Our customers include visitors, local workers, and socializers/shoppers, including individuals and groups (i.e., families, friends, colleagues). Their needs, which can differ in importance depending on the time of day and the day of the week, should inform our usage of resources and the experience that we deliver.
In November 2019, Bord Bia released a report on the Irish foodservice market that the organization found that consumers are spending more money eating out. The most considerable growth occurs among cafés and the hotel sector, with spending forecasted to reach €8.2bn this year. Despite this, Bord Bia said that city centers had reached a saturation point in cafés and quick-serve restaurants and that the tight labor market led to staff shortages. Bord Bia’s chief executive, Tara McCarthy, noted, ‘While we expect to see continued positive activity in the next three years, going forward overall growth figures are likely to be lower than previous years.
A report issued by Dublin Town highlighted that people visiting Dublin’s city center felt that Henry Street was better for shopping than Grafton Street. However, the latter had a better mix of shopping and socializing opportunities. As this shift is causing more people to come to the area for leisure shopping and socializing, it can serve as a real opportunity for CNVN’s.
Another growth opportunity is related to the shift away from the traditional three meals a day. Customers following the current trend are eating ‘on the go,’ and how this occurs vary.
According to Dublin Town cameras, the 2020 footfall on Henry Street is down. The government is being asked to reduce business costs and the headline VAT rate of 23% to 21% for retailers to better compete in the now-global marketplace against online shops, which are becoming increasingly popular.
The new weather alert system has had a negative impact on leisure activity generally and footfall on Henry Street specifically. It is usual for footfall to decrease by 12% on a bad weather day, but this figure doubles when Met Éireann issues an alert.
Removal of the 4.5% concession for service providers led VAT to increase to 13.5%. As a result, the industry has expressed fears about closures. This could reduce competition, but businesses will more likely pass on the cost to customers, and the market size may decrease.
It is likely that more sophisticated operators with better resources will continue to appear in and around Henry Street. The number of outlets run by Press Up, a hospitality group, is growing in the Grafton Street area. This reflects the group’s belief in the opportunity offered by in-store shopping as a leisure/social activity.
According to the findings of a recent Bord Bia report, the Irish consumer has new demands. These demands reflect the lifestyle trends identified in an earlier report by the same organization (Irish Food Service Market Insights November 2018; see Opportunities):
- Convenience is key with consumers looking to source food ‘anytime, anywhere.’ A continued emphasis on convenient options such as takeaway and delivery will drive growth and spread to other segments that traditionally don’t cater for this, including full-service restaurants, pubs, and even hotels.
- Three meals per day is no longer “the norm” as day-stages blur and traditional dining ways are disappearing. On the go, dining will continue to grow, and snacking. Late-night occasions will grow in importance as consumers look to source food at any time.
- Consumers are looking for more experiences when eating out. Restaurants and food services are increasingly seen as “entertainment,” and consumers are willing to spend on something unique and different. Occasions will increasingly be divided into those that are convenience-driven and those in which consumer demand “something unique.”
- Third-party delivery is possibly the most significant disruptor as technology provides app-enabled ordering, which is increasingly growing into segments that haven’t traditionally delivered, such as full-service restaurants and even pubs. Delivery-only kitchens are starting to appear in other countries and will likely be an area of focus for Ireland’s delivery companies.
- The growing on-demand foodservice culture drives the popularity of cashless, click and collect, and third-party delivery options. As more tech-enabled solutions enter the market, much of the ‘front of house’ experience between consumers and the operator could ultimately become automated.
- The changing palate of the Irish consumer has seen the rise in demand for ‘fresh and locally sourced’ to meet the needs of ‘health and wellness’ and sustainable business practices. Plant-based diets are no longer fringe, and while the percentage of vegan or vegetarian consumers remains small, consumers are increasingly looking for alternative options.
- Operating with a conscience is the expectation, not the exception, and this includes reducing food waste and reducing packaging. While the focus has been on the coffee cup, the issue is likely to spread to plastics and broader packaging (both consumer-facing and back-of-house). Consumers demand “something” be done but are often poorly informed on the broader infrastructure needed to recycle or compost foodservice waste.
- Irish consumers are becoming younger, and older and being ‘all things to all consumers’ is increasingly challenging for foodservice operators who require tech-enabled solutions to appeal to younger consumers, while older consumers tend to be more traditional usage of restaurants.
MARKET & SALES
We aim to deliver excellent products as an experience with social and emotional dimensions.
By doing this, we will ensure CNVN is both vibrant and viable. Our target audience is modern explorers visiting Central Streets of Dublin (i.e., visitors, shoppers, local workers, families). This group is split into segments based on their behaviors (i.e., weekday and weekend customers).
- Improving PR and online communications (building brand equity for Bewley’s)
- Increasing viability
- Developing takeaway and retail offerings
- Communicating with the visitor market (improving conversion from the street)
CNVN has clearly defined its target market and is willing to adopt some of the winning formulae that will help capture good market share.
CNVN using the below tools to advertise its services,
- Online marketing channels and social media
- Targeted internet advertisement
- Advertise Company services in the newspapers/magazines
- A website working on every platform, over the Internet or mobile
- Leverage on the Internet and social media platforms like; Instagram, Facebook, Twitter, LinkedIn, Google, etc.
Social Media Ads on Facebook and Instagram:
Social media is our hub for connecting with the clients and keeping them involved with promotions and introducing them to our new offers.
Social media has been the enabler and has motivated many trends to hold a place in the market. Social media has been driving our lives according to the market’s needs, as what we see affects a lot of our needs.
CNVN has a dedicated website that’s hosts all the information about its services, and customers can connect and book their appointments.
Word Of Mouth:
To create trust among the clients and communicate with them the quality of our services, it is imperative to generate word of mouth through a comprehensive online presence.
Revenue diversification as much a defensive strategy as it is a growth strategy. Developing a company so that it is not overly reliant on one or two revenue sources is not a sound strategy. Any consulting company needs to ensure that it works within clients’ budget to deliver excellent and world-class services.
Our pricing policy is three-pronged. We will supply higher-quality, value-added, premium products and measure our improvement with quarterly surveys.
Our prices will need to be competitive, reflecting our products’ perceived value and align with our positioning. This means consistently delivering product excellence as an engaging experience.
Re Café and Food business, the target labour cost for production will be 10%. In the following categories.
CNVN has adopted the competitive pricing model and offers services in a similar range as its competitors. A competitive pricing strategy helps to identify the best prices that are logically within the market context in which the Company operates and improves profit margins.
CNVN using a price strategy to determine the most profit-maximizing price while maintaining a competitive edge.
Clearly defined roles and responsibilities are vital for organising Company to consistently deliver product excellence delivered as an engaging experience. All supervisors and management must clearly understand what is expected of them.
Mr. JOE BLOGGER is acting as the Director and will hire staff as per the requirement of CNVN.
ROLE OF FOUNDERS
- Responsible for providing direction to Convenience Store, Café and Cookery School
- Creates, communicates, and implements her vision, mission, and overall direction – i.e., leading the development and implementation of the overall strategy of building a top-class company.
- Responsible for the day to day running of CNVN.
- Responsible for client contracts, pricing/ costing, and activities in consultation with staff and feedback by customers.
- Responsible for signing checks and documents on behalf of CNVN.
- Evaluates the success of CNVN.
Operational Manager (OM)
OM is responsible for the following:
- Ensuring an engaging customer experience
- Implementing the HACCP project and performing corrective actions
- Performing bakery requisitions
- Developing supervisors
- Managing the budget
- Training and developing the server team, focusing on the customer experience
- Managing the consumable budget
- Further developing the server training manual and matrix to identify individual training needs
CNVN has in-house finance team which will be deployed to keep track and grip on the finances of the business’s newly added operations.
In the first year, a more cautious estimate was drawn to calculations.
Overheads are the operating costs of the business calculated using best estimates and judgments.
Contact us at +353 14428230/ +353 851477625 or fill the form below to avail of our best services
Our initial statement to lenders, this business plan, is a candid disclosure of CNVN’s business proposal – we intend to set realistic business expectations and eliminate any questions about this new venture’s profitability.
Total funding for new business will be €300,000 from a combination of owner investment of €222,000 and bank funding of 78,000. The main cost of start-up will be fixtures and fittings, inventory, equipment, and refrigerators. It is estimated that the total cost for refrigerators will be 90,000 euros, of which 78,000 euros will be funded through a bank loan.