A Business Plan

20 Pages 5093 Words

e mission of The Orange Cup is to provide for the Doane College Community a comfortable atmosphere serving quality coffee with exceptional service at affordable prices. The Orange Cup will provide a variety of coffee products including lattes, cappuccino, espresso, and iced coffee. In addition, The Orange Cup will offer hot chocolate, hot tea, pop, bottled water, and juice. The coffee house portrays a relaxed atmosphere with a comfortable setting similar to the popular television show, "Friends." The coffee shop is a place for the students to come and unwind from the daily grind of classes.
The Orange Cup is open Monday thru Thursday, 7:00 a.m. to 11:00 a.m. and 8:00 p.m. to 12:00 a.m.; Friday 7:00 a.m. to 11:00 a.m.; Sunday 2:00 p.m. to 10:00 p.m., and on Saturdays for special occasions. Special occasions could include, but are not limited to, Parents Day, Fall and Spring Visit Days, Homecoming, and Graduation. Based on marketing research and personal experience, these hours will accommodate the students satisfactorily.
Pricing and Sales

The products that we offer are priced based on a combination of a cost-plus and a market-based system. Cost-plus pricing is basing the price on the basis of all costs plus a markup for profit. This will be possible because this cost-plus price is less than the average market price. We looked at similar establishments to determine a price range. Our price range will be $1-$3 for the gourmet coffee and under $2.50 for our other products (hot chocolate, coffee, etc.). A menu for The Orange Cup can be found in Appendix B. The information that we obtained from the surveys helped to determine the price of our products. After the cost-plus system is applied, our product is based on a competition basis, which means we price our products competitively with our competitors.

Multiple pricing

Multiple pricing is used for regular coffee only. The first cup of coffee will be regular price...