Investment Offer - Sevan Dive Coffee House

DIVE COFFEHOUSE INVESTMENT OFFER

THE LIGHTNING COMPANY

description Dive coffeehouse bar is going to be one of the

The calculations based on the assumptions

favorite places for local and international travellers,

showed that during first 5 years the overall revenue

coffee addicts to take a break from journey, have a

of Dive will compose $591,765 (VAT excluded). The

cup of freshed brewed espresso with croissant, a

gross profit is about 70% of the total sales. The net

place to escape from the daily stresses of city life,

profit has showed increasing pattern during the first

to read a book while drinking morning espresso and enjoying the amazing view of Lake Sevan and

1

investment plan

Net present value

Payback period

IRR

$242.389

2.5 years

8.9% * Calculations are based on 5 years period

TYPE

UNITE MEASURE

USD

TOTAL

Land

2,000 $

15 $

30,000 $

n/a

n/a

15,000 $

324 $

250 $

81,000 $

1,250 $

14 $

18,000 $

324 $

24 $

7,776 $

n/a

n/a

40,000 $

Ground/fundament/parking Interior mending/main building Landscape design Air conditioning PPE & FFE TOTAL INVESTMENT BUDGET

191,776 $

*Financial statements are disclosed in 'Dive' business plan under 'Appendices' section.

1

floor plan

bar & café [ 1000 sq.m ] tourism center & souvenir shop

kitchen [ 40.5 sq.m ] wc [ 40.5 sq.m ]

2

floor plan

2nd floor café & restaurant [ 243 sq.m ]

3

cafe's vision With the growing demand for high-quality gourmet

coffee and cocktails in the area that will be

coffee and great service, Dive will capitalize on its

complimented with organic pastries, as well as free

proximity to the high demand travel destinations in

books and magazines that its visitors can read, and

Armenia, to build a core group of repeat customers.

enjoy their visit by attending nice musical evenings

Dive will offer its customers the best prepared

with the ďŹ nest downtempo, funky and house DJ sets.

Ratios

Year 1

Year 2

Year 3

Year 4

Year 5

Return on income

-77%

-19%

34%

87%

146%

Return on equity

34%

43%

51%

55%

59%

Net margin

57%

37%

38%

39%

40%

1 4

annual sales forecast Dive sells coffee, other beverages and snacks in its

a hitchhiking, drink a cup of coffee, have a road

XX square feet premium coffee bar located near

snack or organic meal or salad, and continue their

Lake Sevan, near M4 Highway, so people can have

journey happier, fresh and relaxed .

$ 140,000 120,000 100,000 80,000 60,000 40,000 20,000 Year 1

Year 2

Year 3

Year 4

Year 5

1 5

salary Dive sells coffee, other beverages and snacks in its

a hitchhiking, drink a cup of coffee, have a road

XX square feet premium coffee bar located near

snack or organic meal or salad, and continue their

Lake Sevan, near M4 Highway, so people can have

journey happier, fresh and relaxed .

Category

N. of employees

Working Days

Monthly Salary

Total

Restaurant manager

1

24

500 $

500 $

Chief for the kitchen

1

24

500 $

500 $

Assistant to chief

1

24

260 $

260 $

Waiting staff

2

24

200 $

400 $

Barista

2

24

200 $

400 $

Engineer

1

24

300 $

300 $

Houskeeping

2

24

300 $

600 $

Security guard

1

15

200 $

200 $

Monthly remuneration

3160 $

1 6

mission With the growing demand for high-quality gourmet

We will be in the business of helping our customers

coffee Dive will make its best effort to create a

to relieve their daily stresses by providing piece of

unique place where customers can socialize with

mind through great ambience, convenient location,

each other in a comfortable and relaxing

friendly customer service, and products of

environment while enjoying the best brewed coffee

consistently high quality.

and pastries in town.

location and facilities Dive will be located close to M4 Highway, Lake Sevan.

The coffee bar’s open and clean, urban, calm

The main zone will include 243 sq.m. coffee bar,

interior design with modern wooden decor will

which will include a seating area with 52 tables, and

convey the quality of the served beverages and

outside area with 64 tables.

snacks, and will be in-line with the cafĂŠ as an

Bathrooms, kitchen and storage area will be located

eclectic place where people can relax and enjoy

in second and third buildings.

their time.

products The cafe will offer its customers the best tasting

Along with the espresso drinks, brewed coffee and

coffee beverages in the area. This will be achieved by

teas, as well as some refreshment beverages,

using high-quality ingredients and strictly following

alcoholic and non-alcoholic cocktails and drinks

preparation guidelines.

will be sold in the coffee bar.

The store layout, menu listings and marketing activities will be focused on maximizing the sales of

Dive will also offer its clients pastries, small salads

higher margin espresso drinks, pastries, organic

and sandwiches.

meals and dishes, promoting also local fresh and

For the gourmet clientele that prefers to prepare its

organic food.

coffee at home, we'll also be selling coffee beans.

The menu of the Dive coffee bar will be built around espresso-based coffee drinks such as lattes, mochas, cappuccinos, etc.

marketing Dive will position itself as a unique coffee bar that not

The major reason for the customers to return to a

only offers the best tasting coffee and pastries but also

Dive bar is a great tasting coffee, quick service and

provides urban and comfortable environment, amazing

pleasant atmosphere. For newcomers, travelers &

view of natural beauty of Lake Sevan.

tourists visiting Armenia the tourism center and

Dive with it's all operations will be placed and

souvenir shop will be another reason to visit Dive

promoted on major booking and trip advising agencies.

and explore Sevan national park.

10

objectives and success keys Dive’s objectives for the first year of operations are:

The keys to success will be:

Become the favorite out-of-town coffee bar of local

Store and building design that will be both visually

travelers and tourists.

attractive to customers, and designed for fast and efficient operations.

Promote tourists & travelers inflow to Sevan national park .

Tourism center and souvenir shop, which will attract tourists and travelers visiting Armenia.

Turn in profits from the first month of operations and have a base of repeated customers.

Employee training to insure the best coffee and food preparation techniques.

Marketing strategies aimed to build a solid base of loyal customers, as well as maximizing the sales of high margin products, such as espresso drinks.

11

tourism centre & souvenir shop Inside the cafĂŠ will be located The Sevan Tourism

Dive will also offer equipment rental and hospitality

Information Centre for any information or help that

services: accommodation bookings, reservations at

travelers will need regarding the area.

a restaurant, a guide or a translator to show visitors

The center will provide consultancy services,

the beauty of Sevan. Alongside will be located

guidebooks and recommendations on where to visit,

souvenir shop where will be sold various Armenian

what to explore and to do in the area.

national handmade souvenirs, gifts and presents.

gallery

ISRL architects

13

restaurant revenue Number of guests inside

52

Number of guests outside

64

Starting number of customers per day

155

Monthly growth rate % during year 2

25%

Monthly growth rate % during year 3

10%

Monthly growth rate % during year 4-6 Average purchase per visit Average mark-up

5% 4.6 $ 2,7

Daily revenue outside bar

534$

Daily cost of goods sold

198$

Monthly revenue Yearly revenue

16,008$ 192,096$

Monthly cost of goods sold

5,929$

Yearly cost of goods sold

71,147$

14 1

restaurant revenue Ratios Variance

Jan

Feb

Mar

Apr

50%

55%

75%

90%

Revenue

May

60%

Revenue

12,006

Variance

63%

Revenue

13,867

Variance

63%

Revenue

14,560

Variance

63%

Revenue

15,288

Variance

63%

Revenue

16,053

66%

90%

13,207 18,009 69%

95%

15,254 20,800 69%

95%

16,016 21,840 69%

95%

16,817 22,932 69%

95%

17,658 24,079

Aug

Sep

Oct

Nov

Dec

120%

120%

90%

65%

60%

50%

17,609 19,210

19,210

14,407 10,405

9,605

8,004

78%

72%

60%

21,611 15,608

14,407

12,006

82%

76%

63%

24,960 18,027

16,640

13,867

82%

76%

63%

26,208 18,928

17,472

14,560

82%

76%

63%

27,519 19,875

18,346

15,288

82%

76%

63%

28,895 20,869

19,263

16,053

Year Year Year Year Year Year 90%

14,407

Variance

Jun

108%

108%

21,611 21,611 113%

113%

24,960 24,960 113%

113%

26,208 26,208 113%

113%

27,519 27,519 113%

113%

28,895 28,895

110%

132%

Jul

1 2 3 4 5 6

144%

144%

26,413 28,814

28,814

139%

151%

151%

30,507 33,281

33,281

139%

151%

151%

32,033 34,945

34,945

139%

151%

151%

33,634 36,692

36,692

139%

151%

151%

35,316 38,526

38,526

108%

113%

113%

113%

113%

1 15

take away revenue Starting number of customers per day

62

Monthly growth rate % during year 2

25%

Monthly growth rate % during year 3

10%

Monthly growth rate % during year 4-6 Average purchase per visit Average mark-up Daily revenue outside bar Daily cost of goods sold

5% 2,8 $ 2,7 173 $ 64 $

Monthly revenue

5,188 $

Yearly revenue

62,254 $

Monthly cost of goods sold

1,921 $

Yearly cost of goods sold

23,057 $

16 1

take away revenue Ratios Variance

Jan

Feb

Mar

Apr

50%

55%

75%

90%

Revenue

May

Jun

Year Year Year Year Year Year

Jul

1 2 3 4 5 6

Aug

Sep

Oct

Nov

Dec

90%

110%

120%

120%

90%

65%

60%

50%

4,669

5,707

6,225

6,225

4,669

3,372

3,113

2,594

144%

108%

78%

72%

60%

4,407

3,735

3,113

Variance

60%

66%

90%

108%

108%

132%

144%

Revenue

3,113

3,424

4,669

5,603

5,603

6,848

7,470

Variance

63%

69%

95%

113%

113%

139%

151%

151%

113%

82%

76%

63%

Revenue

3,268

3,595

4,903

5,883

5,883

7,190

7,844

7,844

5,883

4,249

3,922

3,268

Variance

63%

69%

95%

113%

113%

139%

151%

151%

113%

82%

76%

63%

Revenue

3,432

3,775

5,148

6,177

6,177

7,550

8,236

8,236

6,177

4,461

4,118

3,432

Variance

63%

69%

95%

113%

113%

139%

151%

151%

113%

82%

76%

63%

Revenue

3,603

3,964

5,405

6,486

6,486

7,927

8,648

8,648

6,486

4,684

4,324

3,603

Variance

63%

69%

95%

113%

113%

139%

151%

151%

113%

82%

76%

63%

Revenue

3,784

4,162

5,675

6,810

6,810

8,324

9,080

9,080

6,810

4,919

4,540

3,784

7,470

5,603

1 17