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EXECUTIVE SUMMARY
Almost every person in India starts their day with a hot beverage, and most often it is tea.
Although coffee is also a choice of beverage, the India population is said to consume about
30 cups of tea for every cup of coffee. Besides, people also prefer beverages during the
evening and sometimes as according to their mood during the day.
Therefore, an average adult India consumes about 2 cups of tea on a daily basis and it may
exceed depending upon the weather and his/her mood. This makes tea business one of the
most prospective businesses. A tea shop business is one of the simplest businesses if a person
is in interested in start a business on one’s own especially in India.
It is also advantageous that the size of the tea shop can be according to the investment budget
of the entrepreneur. Further, usually tea shops have a routine set of consumers who would
buy from them regularly if they like it and find it convenient to besides new customers who
may visit rarely or only for one time. Ergo, once a person opens a tea shop and establishes
good reputation in the area for the quality, price, etc. of the tea, then people would regularly
buy from that tea shop.
Hence we know that most of teenagers , including adults prefer taking tea as their best
beverage it's an good chance to create a bridge between books(news,paper,novels ) among
teenagers .The only objective is to give the best type of books and tea to all my customers.
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OBJECTIVES
To operate a successful chai cafe , employing one to two employees the first year.
To obtain a minimum of 200 regular customers in the Simsbury market the first year
of operation.
Achieve first year sales of 250,000.
Maintain an average gross margin of 58 percent.
To produce a reasonable net profit by the end of the third year of operation.
To provide all sorts of all genre books including children books.
bookmark,calendars, puzzles ,notebooks and journals as well .
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Requirements For a chai cafeBusiness
The following are the basic requirements for starting my business,
1. Vending Machine for the tea
2. Ingredients to make tea such as tea leaves, sugar, milk, etc.
3. Kettle
4. Stove
5. Teacups
6. Tea making pans
7. Chairs and tables or benches
8. book stand
9. sitting area as perfect as library
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OUR MISSION
Our mission is to provide our customers with the best tasting, all natural, USDA Organic teas
for their everyday lives. At our placd ,we stay true to our word by always providing the best
quality experience, customer service, and tea. including with tea a bit of knowledge and fresh
news via newspapers.
OUR VISION
Our goal is to provide the best quality tea experience for our customers. we want to continue
the trend of providing healthy beverage options and by combining drinking excellent teas
with their daily lifestyle. We want to change the way people see and think about tea, one cup
at a time.our goal is provide best ambience to out customers even though its a tea place.
Keys to Success
1. Experienced Owners/Managers.
2. Product Quality. We sell only the finest whole-leaf loose teas.
3. Excellent Customer Service. Each customer will be treated as would an honoured
guest in our homes.
4. No direct competition. We are the only teahouse in 20 miles.
5. Enough working capital to survive the first year as we build a customer base.
6. we even provide all sorts of books and comics fo having still good time.
7. we provide all types of books,story books,journals etc
Broad cross-seasonal offerings. In addition to hot teas, we offer iced teas, chocolates,
gift baskets to cover seasonal variations in customer demand.
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Start-up summary
Equipment and Inventory will make up 75% of start-up requirements. Leasehold
improvements and general expenses comprise the remaining 25%. The owners are
contributing ₹400,000 of investment to the business. We need a total of $63,963, and are
seeking a long-term loan of ₹8,00,000we plan to pay this loan back in full within 6 years, at a
9.25% interest rate.
Long-term Assets
Refrigerated Chocolate Case: ₹50,000
Tea Racks: 80,000
Coffee Maker: ₹50,000
Hot Water and Steam machine: ₹20,000
Dishwasher: 30,000
Other Hardware & Appliances:100,000
Furniture :₹ 120,000
book shelf:₹ 80,000
Coffee grinder :₹ 40,000
iced tea shaker : 25,000
OTHER EXPENSES
Napkins, Stirrers, cleaning supplies, tea-balls, tasting cups,pens ,rough papers ,demo
books,decorating equipment
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Kinds of tea
Our tea-tenders will know the best brewing temperature and time for each of the 52 kinds of
teas we offer. These include straight black teas such as Assam, Ceylon, Darjeeling and
Keemun, blends like Chai, Earl Grey, and our own creations, like “New London Garden
Party,” a Ceylon/Vanilla/Jasmine blend. We will also offer a range of green teas, which are
becoming more popular with the proliferation of local sushi restaurants. Jasmine Teahouse’s
no-caffeine herbal infusions range from flavoredrooibus to fruit blends and medicinal brews
(chamomile, ginseng, etc.).
All of these teas are available hot, iced, or loose for customers to take home and brew at their
leisure.
Pastries
To complement our beverages, we will offer a small selection of freshly-baked pastries from
a local bakery. Our alliance with this bakery allows us to offer high-quality baked goods at a
reasonable price, in exchange for co-advertising. These items are not intended as a staple of
our overall profit structure, but help us to create the whole-service feeling of a real teahouse,
without investing in cooks, bakers, or kitchen equipment. Based on market research, we
believe that up to 2/3 of our sit-down clientele will order a cookie, piece of cake, scone,
muffin, or savory croissant with their tea. Not offering such treats could lose us customers.
Chocolates
In keeping with our upscale, indulgent feeling, we will sell premium chocolates such as
Godiva, Scharffen Berger, and Garrison, as well as environmentally-friendly ones like
Dagoba and vegan chocolates. We will offer a limited selection of truffles and dipped
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chocolates (like chocolate covered cherries, orange peel, and candied ginger), and a wider
array of loose bars and chocolate gift baskets.
Coffee
We are a teahouse; we focus on tea. Since we are not intending to compete with coffee giants
such as Starbucks, we brew only one kind of coffee daily, to satisfy those accompanying true
tea lovers on their visits to our store.
Tea paraphernalia
Tea paraphernalia includes specialty teapots, tea balls, decorative tea tins, “art of tea” books,
and various small, seasonal, non-food, tea-related items.
Gift Baskets
We offer a selection of pre-made gift baskets, and will work with customers to create custom
baskets for any occasion. Our tea tins come in a range of sizes and designs, and we will keep
at least five colours of baskets and liners in stock at all times.
BOOKS
we provide all types of books including children picture book,novels,story books including
journals and newspaper so that people's of all ages can have best times during having their tea
with pastries. our motive is just to spread awareness how important it is to have quality time
for reading books.
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Market Analysis Summary
The Tea Market
The American tea market is growing rapidly. Tea sales have increased 165% since 1990, with
the number of tea rooms offering sit down service rising about 15% to about 1,500
shops. The number of tea rooms selling loose tea and accessories rose over the same period to
about 200 shops.
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American interest in tea certainly owes some of its increase to the proliferation of gourmet
coffee shops around the country in this same period. Most of working America has
accepted the idea of expensive hot beverages as affordable luxuries, thanks to the marketing
efforts of Starbucks, Seattle’s Best, and so on. At the same time, fashion is always on the
move – now that fancy coffee drinks are so widely accepted, savvy consumers are looking for
new, more unique treats to enjoy. Starbucks estimates that 7% of its $12 billion annual
sales currently come from tea.Spurred by studies touting tea’s health effects, and increasing
familiarity with Asian and South Asian cuisine and its tea customs, American consumers
have been turning towards tea as a more original, more “natural” affordable luxury. In
addition, the cultural connection of tea with all things “civilized” (largely from American
understandings of British high tea) has made tea knowledge, including the choice of a
favourite teahouse, a mark of sophistication among many American middle class women.
Market Analysis
Potential Growth CAGR
Customers
Local Residents 5% 10,000 10,500 11,025 11,576 12,155 5.00%
Tourists 3% 100,000 103,000 106,090 109,273 112,551 3.00%
Total 3.19% 110,000 113,500 117,115 120,849 124,706 3.19%
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Competition and Buying Patterns
In the gourmet teahouse industry, competition depends on quality of teas, knowledgeable
teatenders, and cultivation and education of a loyal customer base. Consumers used to Lipton
teabags and other low-quality, tea-dust offerings in grocery stores are amazed at the range of
tastes, textures, and fragrances from real, high quality tea. Offer them a good cup, and they
will usually return for the rest of their lives. However, getting them to enter your store in the
first place can be a major challenge.
Our potential customers vary in knowledge of tea, and are seeking a wide range of
experiences and products.
Tea Drinkers
Tea drinkers are looking for a pleasant, relaxing place in which to indulge their love of tea,
share it with friends, and learn more about tea varieties, cultivation, and health properties.
Committed tea drinkers will always choose quality over price or convenience, seeking out the
freshest whole-leaf and tippy varietals in the area. Friends of ours have driven 50 miles to
buy quality loose teas to bring home with them. Our challenge with these consumers is
getting out the word that we are here, and holding events to showcase our quality.
Local Socializers
The middle and upper-middle class women of Simsbury and surrounding towns currently
have no place where they can go to be spoiled at a moderate price outside of a full
restaurant. Starbucks, at 5 miles away, can be inconvenient, noisy, and overcrowded with
teenagers. Local restaurants can also be noisy, and require a large chunk of time and money
for an outing. This market segment is seeking a cozy, comfortable, upscale/exclusive locale
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with a similar clientele, where they can meet friends, have some good food and beverages,
and stay as long or as short as they want. Our challenge with the socializers is to create a buzz
from the very beginning that we are exclusive, pleasant, and high-quality, without generating
such overcrowding that we lose our intimate feeling.
Comestible Gift Buyers
Currently, the only upscale comestibles in the Simsbury area suitable for gifts are organic
meats and local cheeses from surrounding boutique farms – tasty, but certainly not romantic.
Husbands and wives looking for something different from the standard bouquet can currently
choose a cheap box of chocolates from the grocery store, or hoof it to the city to try to find
something more indulgent. We will offer local residents a convenient, attractive, and always-
satisfying gift buying experience at a reasonable price, with a bit of cachet.
Tourists
Tourists vary widely in their reasons for visiting Simsbury, but they generally share a
sophisticated urban palate, a moderately high disposable income, and a desire to “discover”
quaint local charm. They are seeking high-quality foods, beverages, gifts, and service. While
here, they much prefer local, small-scale businesses to larger chains (like Dunkin Donuts),
but want to be assured of quality. Our challenge with tourists is being visible enough to be
noticed, without losing our local charm. Once such a visitor has tried our teahouse, they will
definitely want to return.
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Pricing
Hot Tea: We offer two sizes of sit-down hot tea: small pots, at $3.50 each, and large
pots, at $5.25 each (for two people). For customers wishing to take tea with them, we
offer a flat rate of $2.50 for a 16oz. cup or a customer’s own mug.
Iced Tea: Iced Teas are served in 12oz. or 16oz. cups, at $2.00 and $3.00,
respectively.
Pastries: Our pastry prices range from $1.25 for a lavender-lemon sugar cookie to
$4.00 for a slice of cake. Prices depend on our daily cost of such items from the local
bakery, and should be only 25 to 30 cents higher than the price of that item sold in the
bakery itself.
Chocolates: Chocolate prices vary widely, from $85 cents for a chocolate covered
piece of candied ginger, to $4.00 for large truffles.
Gift Baskets: Gift baskets start at $15, and can range up to $150 for the largest
chocolate and tea selection combinations at holidays. We expect the average gift
basket sale will be about $25.
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Financial Plan
Our Financial Plan is based on sound research into similar businesses in similar communities,
and cost estimates obtained for equipment, rent, and other operating expenses. As an owner-
operated business, we have some leeway in adjusting our own compensation if sales are low
in a given month, but our forecasts are conservative. Our top financial priorities in the first
three years are repaying our long-term loan, paying our employees fairly, covering our
expenses on time, and generating a modest profit.
We are opening this shop because we love tea, we love tea drinkers, and we will enjoy all the
hard work we must do to maintain the business. We do not expect to get rich doing this, but
we do anticipate steadily increasing profits and net worth as Jasmine Teahouse becomes well-
known and establishes a loyal clientele.
Sales growth will be aggressive the first 18 months as we sharpen our merchandise
assortment, size scales, and stock levels to better meet our customer’s requirements. We
anticipate a sales increase of roughly 10% during our second year of operation.
Marketing expenses are budgeted at approximately 3% of total sales.
We will invest residual profits into reducing debt.
Company expansion, while not a necessity, will be an option if sales projections are met
and/or exceeded. The location we have chosen contains an additional area we can annex for
extra seating if and when it becomes necessary, for a small additional rental charge.
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PRODUCTS
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SWOT ANALYSIS
Strengths
1. Has a minimum of 5 orders per delivery
2. It is a customer-oriented store. The staffs welcome its customers; knows its regular
customers by name; adds its customers on Facebook; and interacts with them through
Facebook.
3. customers might get attracted by the scheme of books as well.
4.small children, adults get attracted towards books.
Weakness
1. Including unavailable offerings (i.e. foods)
2. Cleanliness of the comfort room wasnot given much attention
3. Unavailability of promotional materials such as flyers.;
4.unavailable of huge space.
Threats
1. Seasonal products are offered
2. Since not all of combinations suites well to tea, it limits the company in its product
innovation.
3.The new idea might be reason for better ideas in market .
Opportunities
1. Employees working near the area are one of the store's potential customers
2. Since coffee has become part of every Filipino's activity, the company could expand its
product line by offering coffee products. At the same time, it could also offer food that
depends on the demand of the market.
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