Business plan to start a coffee shop- Dissertation Sample by Tutors India

Business plan to start a coffee shop in little India restaurant

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Table of Contents 1.0 INTRODUCTION ....................................................................................................................................... 5 2.0. PROJECT OVERVIEW............................................................................................................................... 5 3.0 SCOPE ...................................................................................................................................................... 7 4.0 HISTORY .................................................................................................................................................. 7 5.0 ROLE OF THE PROJECT MANAGER AND PROJECT TEAM ........................................................................ 7 6.0 PURPOSE OF THE PROJECT...................................................................................................................... 9 7.0 RESEARCH METHODS .............................................................................................................................. 9 8.0 FINDINGS AND ANALYSIS ........................................................................................................................ 9 9.0 LIST OF COFFEE SHOPS IN NEWZEALAND ............................................................................................. 31 BIBLIOGRAPHY ............................................................................................................................................ 41

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1.0 INTRODUCTION The purpose of the project is to set up a traditional Indian base coffee shop in Porirua, New Zealand. Coffee continued to be a popular beverage choice among New Zealanders while burgeoning café culture has gained international recognition (Euromonitor International, 2015). According to the Euro monitor data (2013), the amount of coffee consumed by New Zealand per capita (per person on average) was 1.3 kg with 47th (1.3kg per capita) place under top 50 countries (Caffeine Informer, 2015). In 2012, café shops remained an Independent accounting for an 85% of value share but due to the introduction of chain outlets, the share declined (Euromonitor, 2014). Therefore, Little India is one of the famous best Indian restaurants in Wellington region aimed to open the coffee shop as their part of restaurants. Due to fulfill the purpose of this project, the project team was planning to make a business plan for provide the guidance to Little India in Porirua city of Wellington region. The project team made different competitor analysis to gather the data. Porirual, is a city located in the Wellington Region of the North Island of New Zealand with population 51,720 (June 2013) (Census Porirua, 2015; Porirua City Council, 2015). There are six coffee shops in Porirura (Trip Advisor, 2015) includes Café Kaizen, Groundup Café, Peppermill Deli and Café, Charlies Café, Butler’s coffee shop, Ruby Café, and Café Mondo. However, these shops are based on Australia / New Zealand but not on Indian base coffee restaurants. The researcher family comes from Punjab region of India, hence the researcher interested to open a new coffee shop as Indian base. Secondly, this business plan aimed to open its coffee shop in Little India restaurant. Although Little India has several branches, the project is restricted only to Porirua branch. There are two reasons to choose this branch. Firstly, since it’s the first trial for Little India restaurant to introduce a separate entity for coffee shop and secondly, Porirua is a quiet and multicultural society of people.

2.0. PROJECT OVERVIEW The term ‘Project management’ refers to the application of tools, skills, knowledge and applied techniques to project activities due to meet the requirement of the project. It covers planning, making the project plan into action, and estimating performance and progress (Watt, 2015). In line with this, this project team makes the planning, execute the work into action and progress and performance was estimated. A project is a group of activities undertaken to meet one or more specific objectives. These objectives could include solving a problem, building or upgrading a system or product, launching a product or service, implementing a strategic plan, changing a process, or one of many other unique efforts. Hence, this project team also fixed specific objectives in terms of made a business plan to set up coffee shop in Porirua. This report provided the details of competitors include list of coffee shops found in Newzealand and their qualities, and then found out different analysis such as competitor analysis, SWOT, PESTLE, Porter’s five force analysis and provide the marketing plan for opening a new coffee shop. Further this report explained the different tasks of project members in completion of whole project. The below figure depicted the project life cycle to complete the project

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Figure 1: Project life cycle to complete successful project

Definition

Project Rules

Planning

Project plan

Execution

Project Goal Complete

Closeout

Format Closure and

Time

Source: Adopted from Perkins et al. (2003) The team members have splitted into two groups and made different business analysis. Based on the analysis report, the coffee made strategies to open their new shop in Newzealand. To start up any new business there is a necessary to understand the triangulation for arraign success, this was shown in below figure. Figure 2: Triangulation model of business firms

Scope

Quality Schedule

Cost

Source: Adopted from Watt (2015) This model support project management as well as business, in both perspective, scope is very important to analyse the present and future trend while cost is necessary to start up and success of any project business these was attain by proper schedule, hence it is most significant one. For instance, scope increases; cost and time also increase proportionately. This business analysis report provide market, financial and better business plan to Little India coffee shop.

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3.0 SCOPE During the past few decades, the coffee revolution was increased in Newzealand. The higher the popularity of coffee has prompted a growth industry with new cafes and coffee roasting outlets springing up all over the country. Nowadays, coffee making is very competitive especially to make good cup of coffee (Newzealand, 2015). The Little India coffee shop aimed to provide friendly, comfortable and caring environment where the customers would receive quality coffee with Indian base taste and aroma at a reasonable price. Variety of choices would provide to the customers to meet the wide needs of the society in terms of cultural and demographics such as Filter coffee (Indian variety), regular coffee, smoothies, espressos, long black, lattes, piccolo latte, affogato, espresso con panna, cortado, fluffy, macchiato, cappuccinos, and all sorts of tea, and soft drinks. In addition, the selection of vessel would be glass, bowl, mug and cup with type of milk varied from regular, full cream, semi-skimmed, skimmed, or skinny, soy and number of shots (Newzealand, 2015). The beans used are made out of dark roasted coffee beans (70-80%) and chicory (30-20%). The current trend in coffee shops in Newzealand reflected coffee shop can be opened from 6.00AM to 4PM including Sundays. The project would assists Little restaurant to open Coffee shop on delivered date with the aim to achieve break even costs within 2 years of investment. Secondly, the project would also deliver all manuals and financial budget assists also aim to open other five branches in next five years across the little restaurants in New Zealand receive the café of choice Award. In order to prepare the business plan for little India coffee shop, the researcher used secondary data. This data comprises of company websites, annual reports of Newzealand, journal articles, case studies etc. with respect to stating a coffee shop business in Newzealand. 

The scope of the project consists of identification and documentation of project specific goals, deliverables definitions and planning appropriate costs, and task and deadline for the project within the given time frame.



Defining the clear scope would ensure that all the team members understand the project clearly before start.

4.0 HISTORY Sukhi and Jonna Gill have initiated the firm with a small dairy with fish and chip shop, in Ravensbourne just outside Dunedin. Yet, later their Sukhi’s parents visited they decided to add few Indian dishes to the fish and chip shop. However, the added dishes received enormous response from New Zealand population. However, they could not able to cope up the demand with a single electric stove struggling. This initiation and welcome for Indian dishes decided to open a New Zealand Indian restaurant. The first Little India restaurant was opened in 1991. The restaurant had Indian flavors especially Punjab region of North India. They used recipes from the Kitchen of Sukhi’s Grandmother Premjit Kaur Gill where she involved in training of chef’s of Little India’s restaurant in her own kitchen in Chandigarh. With her training, chef’s could replicate the legendary Indian food dishes of North India, the Punjab. Kitchen has traditional tandoors with a clay pot fired by charcoal and offer naans and meat in their authentic flavor (Family Times, 2015). The food of little India have provide proper dietary supplements include Gluten free breads and other couple of dishes. Further food is vegan and dairy free along with warm and inviting atmosphere and also little India accommodate romantic dinners for two to large group of people. Moreover, little India provide online ordering and door delivery system (Otago Daily Times, 2007; Little India, 2012). Beyond the good scope of restaurant, Little India planned to open a new coffee shop along with restaurant. This would help for further success of Little India.

5.0 ROLE OF THE PROJECT MANAGER AND PROJECT TEAM For successful completion of any project that depends upon the role of project managers as well as their team members work. According to Milosevic et al. (2011), the role of project manager ensures that the project is delivered on time, to budget and to

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the required quality standard (within agreed specifications). Further project manager ensures that the project is effectively resourced and manages relationships with a wide range of groups (including all project contributors). The Project Manager is also responsible for managing the work of consultants, allocating and utilising resources in an efficient manner and maintaining a co-operative, motivated and successful team (GLA, 2015). Moreover, project manager is responsible for accomplishing the project objectives within the constraints and also take care of project outcome (success or failure) (Leadership Champs, 2008). Project managers roles and responsibilities are described as follows: Managing and leading the project team; Developing and maintaining a detailed project plan; Recruiting project staff and consultants; Detailed project planning and control; Managing project scope and change control and escalating issues where necessary; Providing status reports to the project sponsor; Liaises with, and updates progress to, project board/senior management; Final approval of the design specification; Recording and managing project issues and escalating where necessary; Managing consultancy input within the defined budget; Managing coordination of the partners and working groups engaged in project work; Resolving cross-functional issues at project level; Managing project deliverables in line with the project plan; Managing project training within the defined budget; Definition and management of the User Acceptance Testing programme; Monitoring project progress and performance; Working closely with users to ensure the project meets business needs; Providing regular status reports to the IPSC Programme Board; Managing project evaluation and dissemination activities; Identifying user training needs and devising and managing user training programmes (Milosevic et al., 2011; Haughey, 2015; Srivastava, 2015; Sun, n.d.). While Team members played a major role in project completion. However, their roles are varied depending on the type of project includes provide functional expertise in an administrative process; Documentation and analysis of current and future processes/systems; Defining requirements for reporting and interfacing; Work with users to ensure the project meets business needs; User training and Identification and mapping of information needs (JISC infonet, 2015; Inviqa, 2015; Commonwealth of Australia, 2011; Smart Cities, n.d.),. However, most important relationship between project managers and their team members is communication. Communication has been defined as the sharing of information while project communication is sharing of projected related communication (Project Communication Handbook, 2007) with the aim to create proper understanding between and among the team members and its organization. The purpose to reach understanding and removes doubt, emphasises the meaning of planning and at best involves all participants around the same round table (IDRC, 2011). Communication may involve two or a group of people and can be verbal or written, face to face, or some medium such as telephone, email, and videoconference (Gido & Clements, 2011). However, depending on the importance of the information to be discussed, communication mode can be chosen (Jalava & Virtanen, 2000). Understanding the communication process is the first step in terms of who is involved, what is being communicated, when the information is communicated, how the information id distributed and who will provide the information being communicated (Project Communication Handbook, 2007). A lack of communication within the team members would lead to failure of the project and creates significant loss to the firm (Gido & Clements, 2011). Further the primary purpose of the meeting of project managers is to solve the problems faced by the team members. There is a possibility that team members might face challenges while implementing the project, therefore any problem faced by the member need to call for the meeting without waiting for a future review. This meeting support to understand the team difficulties and to share their experience, to discuss their achievements and further proceedings, solutions for the problems on frequent basis such as weekly once. This has been done through three ways, one through constant phone and email communication. However, last would be a direct meeting, but this was done be subjected based on the availability of team members. Hence, the present report team members and project managers must follow the roles and responsibilities for the success of this project.

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6.0 PURPOSE OF THE PROJECT The purpose of the project report is to provide the business plan for setting up of traditional Indian base coffee shop in Porirua city. Based on this report analysis, Little India makes plan to set up the coffee shop along with their own restaurant. This report provide the details of their competitors, their quality of coffee, strength, weakness, opportunities and threats, further give the financial plan and marketing strategy to build a new coffee shop. This plan gives an idea for little India to make their business strategy as scopeful and ethically. Further this report gives a layout design for build their coffee shop.

7.0 RESEARCH METHODS The present report used secondary data collection methods. This method analyses different sources like reports of websites, journal articles, annual reports, library books, encyclopedia, newspapers/magazines etc. Research method used to collect the data in this report is Internet. Internet searching is a vast but extremely disorganized information source. By using internet source it is necessary to use different keyword searching. The team members make different keywords for searching purpose1. Internet search is the practice of searching information by using several websites 2,

This report used this technique to analyse the

details of business plan report for making a new coffee shop. Further analyses the coffee shop details like competitors, strength and weakness of the industry, population description, quality of coffee in Newzealand. Hence, this report used secondary data it has several advantages includes time saving (Ghauri, 2005); accessibility, money saving, creating novel insights and feasibility,4

8.0 FINDINGS AND ANALYSIS The crucial step in the research on innovative products and ideas regarding the needs and expectations of the customers is planning a marketing strategy. The main aim of this chapter provides the marketing plan to set up a traditional Indian base coffee shop in Porirua, New Zealand. With the help of the data collected through secondary research as well as with the study on customers, profits, expenses involved and competitive firms, the researcher developed a marketing strategy for the venture. Based on the investigations of McDonald (2002); Shilbury et al. (1998); Lancaster and Massingham (1996); and Kotler (1997), the researcher adopted an eight step process in this study. In this research the following steps have been adopted: (a) Initially, the researcher has determined the mission statement of the firm (b) Then business goals of the coffee shop have been set. (c) Then market environment has been analyzed (4) In order to assess the market environment the researcher has analyzed the external environment wherein the firm contends and the internal environment of the Indian base coffee shop itself. (5) Then SWOT analysis has been conducted (6) Following the SWOT analysis, marketing goals has been set. (6) After this step, marketing strategy has been developed and detailed plans have been framed. (7) Finally, the marketing plan has been reviewed.

hox_05_data+collection,primary+versus+secondary.pdf https://books.google.co.in/books?id=lh-bjXSO1QC&pg=PA471&lpg=PA471&dq=Internet+search+is+the+practice+of+searching+information+by+using+sever al+websites.&source=bl&ots=8VRW4IXOoc&sig=jQpa_2RY42M7_dI7pYLbj64IbI&hl=en&sa=X&ved=0CC0Q6AEwA2oVChMI3tOTpMvfyAIVpOimCh2CYg52#v=onepage&q=Int ernet%20search%20is%20the%20practice%20of%20searching%20information%20by%20using%20several%20web sites.&f=false 3 http://mediasmarts.ca/tipsheet/how-search-internet-effectively 4 http://xaperezsindin.com/2013/12/11/advantages-and-disadvantages-of-secondary-data-collection/ ÂŠ 2016-2017 All Rights Reserved, No part of this document should be modified/used without prior consent Tutors Indiaâ&#x201E;˘ - Your trusted mentor since 2001 www.tutorindia.com I UK # +44-1143520021, Info@tutorsindia.com 2

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Figure 1: Marketing Plan Followed in this report

Source: Adopted From Kotler (2009) SITUATION ANALYSIS Both micro and macro environments are assessed in the situation analysis. Investigation of the factors associated with both external and internal environment of the firms and the influence of these factors on the performance of these firms is the major purpose of this situation analysis. The market environment can be assessed at two levels. In this assessment, the characteristics of both external and internal environment are included (Kotler, 1997). PORTER’S FIVE FORCES (MACRO) ANALYSIS FOR COFFEE SHOPS IN NEWZEALAND

Porter's five forces analysis is a framework for industry analysis and business strategy development. It draws upon industrial organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market. The competitive advantage and position of a firm can be analysed and evaluated with the help of Porter’s Five Forces Analysis. The following table illustrates the Porter’s Five Forces Analysis for coffee shops in Newzealand.

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Table 1: Porter’s Five Forces Analysis for coffee shops in Newzealand

Threat

There are a number of coffee shops in the area of Porirual city from the Café

High

Kaizen, Groundup Café, Peppermill Deli and Café, Charlies Café, Butler’s coffee

substitutes

shop, Ruby Café, and Café Mondo who provide stiff competition. It is essential that the little India observed the nature of coffee habituals and their trends and culture to attain success in Newzealand. Threats can be overcome by focussing on price and providing pleasing service. Rivalry

among

existing

Many coffee shops conduct different competitions frequently among their

Medium

customers.

competitors Further to overcome their competitors few shops provide different items such as serving salads, sandwiches, baked goods and other snack items along with coffee to attract their consumers (Laffare, 2015). Independent operators continued to dominate the landscape of cafés/bars in New Zealand, making up a value share of 86% in 2014, which has not changed over the review period (Euromonitor, 2015). When industries are growing revenue quickly, they are less likely to compete, because the total industry size is also growing. The only way to grow in slow growth industries is to steal market-share from competitors. Fast industry growth positively affects New Zealand Coffee Market (Wiki wealth, 2014d). Few competitors mean fewer firms are competing for the same customers and resources, which is a positive for New Zealand Coffee Market (Wiki wealth, 2014j). Bargaining power

When there are a large number of substitute inputs, suppliers have less bargaining

of suppliers

leverage over producers.

Low

This is due to competition among substitutes. Greater competition positively affects New Zealand Coffee Market (Wiki wealth, 2014g). When critical production inputs are similar, it is easier to mix and match inputs, which reduces supplier bargaining power; a positive for New Zealand Coffee Market (Wiki wealth, 2014a). The easier it is to switch suppliers, the less bargaining power they have. Low supplier switching costs positively affect New Zealand Coffee Market (Wiki wealth, 2014h). When exit barriers are low, weak firms are more likely to leave the market, which will increase the profits for the remaining firms. Low exit barriers are a positive for New Zealand Coffee Market (Wiki wealth, 2014c) Bargaining power

When buyers are less sensitive to prices, prices can increase and buyers still buy

of buyers

the

product.

Inelastic

demand

positively

affects New

Zealand

Low

Coffee

Market. When customers cherish particular products they end up paying more for that one product. This positively affects New Zealand Coffee Market (Wiki wealth, 2014i). When there are large numbers of customers, no one customer tends to

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have bargaining leverage. Limited bargaining leverage helps New Zealand Coffee Market (Wiki wealth, 2014f) Threat

New

Entrants

If strong brands are critical to compete, then new competitors will have to improve

Medium

their brand value in order to effectively compete. Strong brands positively affect New Zealand Coffee Market. … "Strong Brand Names Are Important (New Zealand Coffee Market)" has a significant impact, so an analyst should put more weight into it. This statement will lead to an increase in profits for this entity. This qualitative factor will lead to an increase in costs (Wiki wealth, 2014k). It takes time and money to build a brand. When companies need to spend resources building a brand, they have fewer resources to compete in the marketplace. These costs positively affect New Zealand Coffee Market (Wiki wealth, 2014b). High switching costs make it difficult for customers to change which products they normally purchase, due to costs. High switching costs positively affect New Zealand Coffee Market (Wiki wealth, 2014e).

Source: Adopted from Kotler et al. (2008) SWOT ANALYSIS SWOT analysis is useful as it helps to identify the market position of particular company5. In this study, SWOT analysis helps to identify the strength, weaknesses, opportunities and threats of coffee market in order to understand their market position in global market. Strength helps to gain the advantage by utilizing the resources of the organisation and weaknesses supports to understand their disadvantage to gain market advantage and increase their profit volume (Baker, 2007, 143). On the other hand, opportunities help to utilize the strength of the company and it helps to recover the upcoming threats. Below is the SWOT analysis of the coffee market in Newzealand

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Figure 2: SWOT Analysis

S-Strength

• Relaxed environment, large product range, buying power good and pricing is lower

WWeakness

• Non sterile dining environment, low wage staff, clunky websites

OOpportuni y

T-Threats

• Market development, business and product development • Environmental effects, market demand and obstacles

Strengths 

In Newzealand, Cafés/bars offer a relaxed environment to their consumers, similarly the selected place for the new coffee shop is Porirua also an pleasant environment for consumers.



Coffee shop in New Zealand provides large range of extensive coffee related products6.



Coffee shop in this country is well-established in their competitive market specifically in Porirua city is well-established market place for business developers.



In this sector, buying power of customers is better and pricing is lower (New Zealand Trade and Enterprise, 2014).



Coffee in this country are reasonable price and almost a lot of home based products used in many restaurants7



Little India have existing customers who are frequently came to the restaurant may be regular customers of their new coffee shop

Weakness 

In Newzealand, Cafés/bars provide non-sterile dining environment, compared to many fast food outlets which tend to look and operate all the same.



Coffee shop employees have lack of product knowledge especially low wage staff



The websites used by coffee shops are clunky and also consumers faced problem in searching menus and other verifications.



Nowadays, technology development attained a major position in all the sectors, especially in Newzealand, majority (around 70 percent) (Research New Zealand, 2015) of them used smartphones however, coffee shops failed to provide advertisement and their menu details in tablets and smartphones.

6 7

http://www.thecoffeecompany.co.nz/ https://www.newzealandnow.govt.nz/living-in-nz/money-tax/comparable-living-costs © 2016-2017 All Rights Reserved, No part of this document should be modified/used without prior consent Tutors India™ - Your trusted mentor since 2001 www.tutorindia.com I UK # +44-1143520021, Info@tutorsindia.com

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Opportunities 

In Newzealand, Porirua city is better market, business and product development place and provide convenience to all type of customers.



Porirua city provide a dynamic, strong, regional centre with sustainable and vigorous economy (Porirua City Council, 2014).



Little India may create new opportunities like promoting and initiating new strategies such as giving a "coffee of the month" and special discounts for frequent customers. Likewise some other coffee shops promote the same for their growth.



Coffee shop list out both short-term and long-range goals so that shop can anticipate logistical needs for all aspects8.



Some physical growth, such as opening a larger or additional location, may be in the works and therefore Little India should plan ahead for what is needed to reach those goals.



Some existing customers of Little India may interested to drink coffee, therefore retaining the existing customers provide a better opportunity for Little India (Belcher, 2015).



Provide job opportunities for many unemployed and catering peoples9

Threats 

External trouble



Competitors action



Other local cafes

PESTLE ANALYSIS The coffee industry could understand its surroundings with the help of PESTLE analysis. This analysis will also be helpful to frame a suitable marketing plan.

http://www.ashpfoundation.org/leadershipprimer/Primer19.html http://www.ilo.org/wcmsp5/groups/public/---ed_emp/--ed_emp_msu/documents/publication/wcms_195535.pdf © 2016-2017 All Rights Reserved, No part of this document should be modified/used without prior consent Tutors India™ - Your trusted mentor since 2001 www.tutorindia.com I UK # +44-1143520021, Info@tutorsindia.com 9

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Figure 3: PESTLE analysis

Source: The Marketing Environment (modified from Marketing Planning 2010, 6510) Political Aspects The political factors affecting business are often given a lot of importance. Several aspects of government policy can affect business. All firms must follow the law. Managers must find how upcoming legislations can affect their activities. Changes in the government policy make up the political factors. Newzealand has a unique and more sophisticated legal, financial and marketing strategic field of business. With strong and stable commercial and political free market environment 11,12 for secure place to start and invest for any business13. Economic Aspects As in economic perspective, Porirua city which was found in Wellington region is the suitable place for starting a new business. This region acts as government hub and the world's southernmost capital city and also provide most educated workforce in New zealand. According to the report of Infometrics, (Wellington City Annual Economic Profile 2014) showed a GDP growth rate per employee is 29.2% while household income was $59,23014. Further in business perspective, this country attained best rating in 2012 was found in business lis15t. Hence, this plan recommended that Porirua is the best place in economic point of view.

Model 1pdf

https://books.google.co.in/books?id=ZRD6gMj2XRkC&pg=PA444&lpg=PA444&dq=political+environment+Porirua+ new+business&source=bl&ots=xm7lPmSy6I&sig=oUkU9MqIrxKNFoVX_Uu9MnMJeY&hl=en&sa=X&ved=0CCwQ6AEwAmoVChMI8pXgt4biyAIVqNymCh3ObQwe#v=snippet&q=politic al&f=false 12 http://www.whitireia.ac.nz/AreasOfInterest/Business-Management/Pages/BusinessandManagement.aspx 13 http://www.wellingtonnz.com/business/business-environment/business-landscape/ 14 http://www.wellingtonnz.com/business/business-environment/business-landscape/ 15 https://www.newzealandnow.govt.nz/investing-in-nz/opportunities-outlook/economic-overview ÂŠ 2016-2017 All Rights Reserved, No part of this document should be modified/used without prior consent Tutors Indiaâ&#x201E;˘ - Your trusted mentor since 2001 www.tutorindia.com I UK # +44-1143520021, Info@tutorsindia.com

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Social Aspects The nation pays much attention to education and employment facility as their national priorities.16 At a social level, New Zealanders are also currently grappling with issues of national identity, biculturalism, multiculturalism, family and behavioural dysfunction and cohesiveness. However, Marsden research report provided the details of social and cultural benefits in Newzealand17. Though, new knowledge creation has a very strong value proposition for the use of public funds in this country18. Hence, in social perspective, our present report recommends that New Zealand is a best place to the social benefits. Technological Aspects New Zealand's tech sector is diverse and advanced. It’s a breeding ground for innovation and competes successfully on the world stage. Technology is increasingly enhanced as the base of economic and social development strategy. New Zealand’s information and communications technologies (ICT) sector is diverse, covering all aspects of life include payments, wireless infrastructure, digital content, telecommunications, geospatial, agricultural technology, health IT and food and beverages sector19 Legal In legal perspective of Newzealand showed there are no specific payroll tax, no social security tax and no capital gains tax. However, this country has a low-compliance and competitive tax system. Further, New Zealand has a tax-deductible business expenses (covers research and development) and recoverable Goods and Services (GST) tax (similar to VAT) and depreciation.2021 Moreover, New Zealand has a stable and internationally competitive economy. A wide range of free trade agreements, procompetitive regulation, an efficient tax code, an open political system and the absence in almost all sectors of import tariffs or Government subsidies, have given rise to an efficient, globally competitive economy that facilitates both domestic and foreign investment. Hence, legal system of Newzealand is very strong to build a new business. Environment In environmental perspective, overall country has stable, secure, proximity and genuine environment hence few companies have interested to start up their business in Newzealand. 22Therefore to set up the coffee shop in this country is highly suitable. Consumer Market Analysis Geographic Segmentation As porirua city is a lifestyle city of choice, a great place for families with a prosperous and dynamic business and economic sector23. Porirua environment has greater competitive environment, make sure accurate and focused strategies to set up

http://www.wellingtonnz.com/business/business-environment/business-landscape/ http://www.royalsociety.org.nz/expert-advice/papers/yr2011/development-and-research-in-new-zealand/ 18 http://www.royalsociety.org.nz/expert-advice/papers/yr2011/development-and-research-in-new-zealand/ 19 https://www.newzealandnow.govt.nz/work-in-nz/nz-jobs-industries/information-technology-jobs 20 https://www.sbc.org.nz/__data/assets/pdf_file/0004/99490/Part-1-The-Social-Role-of-Business.pdf 21 https://www.nzte.govt.nz/en/invest/new-zealands-investment-advantage/ 22 https://www.nzte.govt.nz/en/invest/new-zealands-investment-advantage/ 23 http://www.pcc.govt.nz/DownloadFile/Publications/Economic-Development-Strategy/Porirua-City-EconomicDevelopment-Strategy-2009-19 © 2016-2017 All Rights Reserved, No part of this document should be modified/used without prior consent Tutors India™ - Your trusted mentor since 2001 www.tutorindia.com I UK # +44-1143520021, Info@tutorsindia.com 17

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coffee shops in this city. Hence it is a good place for starting a new coffee shop in this region 24. Further almost all coffee shops are working in Monday-Sunday with the time of 7.30-11.00 pm in this city. Demographics In Newzealand, the coffee culture is great specifically country’s coffee is one of the best in the world reported by CNN 25. Their love for Flat Whites has been contagious as down under's trademark drink is rapidly growing in popularity across the world. A nation full of caffeine addicts, it has a variety of cafes, each with its own distinct attraction. Certainly a paradise for coffee lovers! Cadbury World understood the craze for coffee among the Kiwis and opened the first branch of their chocolate cafes in the country26. The customers are allowed to use their creativity to come up with personalized orders from a host of Cadbury products. Auckland given a stable coffee story wall, few coffee shops like Havana filtered coffee, choch-cherry pie in Newzealand provide true taste of coffee27. According to Thomson and Schiess (2010) the following are the demographics details of caffeine exposure coffees or tea used by Newzealand people. These figures are favourable for the growth of the industry: Table 1: Demographics details of coffees consumption in New zealand

S.No

Description

Status

Total coffee habitual

1500

Day-wise

82%

Gender-wise

Males-2.4 cups

Age-wise

Females-1.9 cups Age group

Cups/ day

20s

1.8

30s

2.0

40s

2.2

50s

2.4

60s or older

2.4

Source: Compiled from Author 2015 Psychographics segmentation Zagat conducted its third annual National Coffee Survey and released the results last week. Nearly 1,500 respondents weighed on their coffee habits. Of those who said they like coffee, 82 percent admit to drinking it daily. Males drink on average 2.4 cups of coffee per day, while women consume 1.928,29. Coffee consumption appears to increase with age, and the number of cups per age range found in the survey is as follows: • 20s: 1.8 cups per day • 30s: 2.0 cups per day

http://www.pcc.govt.nz/DownloadFile/Publications/Long-Term-Council-Community-Plan-2009-19/PCC--421159v1-LTCCP_2009-19_CEO_PCC_Poriruas_Economic_Future_30_October_08 25 http://edition.cnn.com/2014/09/29/living/how-to-make-pour-over-coffee-eatocracy/ 26 http://www.newzealand.com/in/article/new-zealand-heaven-and-haven-for-coffee-lovers/ 27 http://www.newzealand.com/in/article/new-zealand-heaven-and-haven-for-coffee-lovers/ 28 http://ktar.com/story/97950/national-survey-sheds-light-on-coffee-consumption-trends/ 29 http://zagat.blogspot.in/2015/02/national-coffee-trends-revealed.html © 2016-2017 All Rights Reserved, No part of this document should be modified/used without prior consent Tutors India™ - Your trusted mentor since 2001 www.tutorindia.com I UK # +44-1143520021, Info@tutorsindia.com

Page 17 of 43

• 40s: 2.2 cups per day • 50s: 2.4 cups per day • 60 or older: 2.4 cups per day Respondents said they are increasingly purchasing coffee outside of the home — up 8 percent from 2014. Men are more likely to purchase a cup of joe from a smaller chain or single location coffee house (23 percent) as opposed to a large national chain (20 percent). The average price respondents said they pay for a coffee-based drink is $3.28, compared to $3.05 last year and $2.98 in 201330. Thirty percent of men said they prefer a regular cup of coffee, while 14 percent said espresso. Most males (57 percent) prefer not to add sweetener, while 14 percent said they choose raw sugar. Nearly half of the male respondents said they like their coffee black (42 percent), but when it comes to adding another ingredient, 20 percent said half-and-half is their top choice31. Behavioral segmentation Globally, coffee lovers have differed especially women and men. Women also prefer lattes type of drink while male prefer a regular cup of joe and prefer black. All coffee drinkers quaff, on average, just over two cups a day. And if buying at a coffee shop, coffee lovers payed a lot for that java: about $3.28 a drink, up 30 cents in one year. These findings, from Zagat’s recently released third-annual coffee survey, are drawn from 1,486 respondents nationwide. The survey found consumption increases by age. Coffee lovers in their 20s drink on average 1.8 cups a day, versus those in their 30s (2), 40s (2.2), and 50s and 60s (2.4). Other highlights: 48 percent of the participants buy coffee from a coffee shop, while 42 percent make their own at home or at work; 52 percent don’t add sweeteners (if a sweetener is used, raw sugar is preferred over granulated sugar and Splenda); respondents say the price of a cup of coffee is too high at $3.67 for regular coffee, and $5.07 for barista-prepared drinks32. Further people expected proper service quality from coffee shops. Competitor and market trend Entry into this industry is fairly limited as its takes a large infrastructure, a great deal of support, and a few amount of investment to create a coffee shop. Industry trend It is identified in Newzealand cafes/bars including Independent operators continued to dominate the landscape of cafés/bars, making up a value share of 86% in 2014, which has not changed over the review period. Further those people are strong in bars/pubs and cafés, where individualism and uniqueness are positive attributes for patrons looking for a special atmosphere to have a meal and/or drink33. In particular, these independent operators are strong in rural or country towns which tend to have a local pub, where people tend to gather, and a number of independent cafés, which are usually frequented at lunchtime 34.

http://ktar.com/story/97950/national-survey-sheds-light-on-coffee-consumption-trends/ http://ktar.com/story/97950/national-survey-sheds-light-on-coffee-consumption-trends/ 32 https://www.bostonglobe.com/lifestyle/food-dining/2015/03/10/women-want-lattes-men-wantespresso/hoHpIlI03UFxoH7xsfFfTP/story.html 33 http://www.clickpress.com/releases/Detailed/730514005cp.shtml 34 http://www.euromonitor.com/cafes-bars-in-new-zealand/report © 2016-2017 All Rights Reserved, No part of this document should be modified/used without prior consent Tutors India™ - Your trusted mentor since 2001 www.tutorindia.com I UK # +44-1143520021, Info@tutorsindia.com 31

Page 18 of 43

Figure 2: Growth of coffee industry in Newzealand

50 45

41 37

Share market value

40 35 30

25 20

10 5 0 2011

2012

2013

2014

Year-wise

Source: Adopted from 35, 36 Competitors Though, Porirua city is a strong, dynamic, regional centre, built on sound infrastructure and with a vigorous and sustainable economy37. They are more number of coffee shops in Newzealand and especially in our selected city Porirua have lot of coffee shops at around 80 shops38. Especially some of the shops like Café Kaizen, Groundup Café, Peppermill Deli and Café, Charlies Café, Butler’s coffee shop, Ruby Café, and Café Mondo who provide stiff competition. All the existing cafes provide excellent customer service, delicious different types of cafes and reasonable price. Competitive edge 

Unique attraction, first of its kind in the targeted area



Our Target Audience ranges from adults to older people. The coffee shop has various kind of activities targeting all age groups and professionals



Majority of the cafes are comes under the part of restaurant used trained professionals. However, our Little India provides traditional Indian base coffee.

http://www.wares.co.nz/feature-stories/february-2013/coffee-culture-a-market-that-s-full-of-beans http://www.euromonitor.com/coffee-in-new-zealand/report 37 http://www.pcc.govt.nz/Business/Support-for-Business/Porirua-City-Council---EconomicDevelopment/Developing-an-Economic-Development-Strategy 38 https://www.google.co.in/webhp?sourceid=chrome-instant&ion=1&espv=2&ie=UTF8#q=list+of+coffee+shops+in+Porirua+city&tbm=lcl&start=80 © 2016-2017 All Rights Reserved, No part of this document should be modified/used without prior consent Tutors India™ - Your trusted mentor since 2001 www.tutorindia.com I UK # +44-1143520021, Info@tutorsindia.com 36

Page 19 of 43



Little India provide compact, family-owned fixture offering familiar Indian dishes in a relaxed environment and their service was good and the restaurant was clean39

Marketing strategies Target market Porirua is a major target market. The total population of this city is 51,717 people among this female population (26,814) are higher than male (24,906). The maori population are majorly found in this city. The residents of this area are occupied dwellings (17,013) according to the census report 201340. After getting established in this area, the firm will be expanded to other locations in order to provide convenience to the customers. Product strategies The opening of traditional Indian base coffee shop is a destination for Little India. Product itself should have some special characters, the author’s café is a traditional Indian base café, and therefore some products (coffee beans) from India will be the special product in this café. Little India will use Indian coffee beans for their coffee production. In India, the export of coffee is about 4.5 percent across different parts of the world41. Traditionally, India has been a noted producer of Arabica coffee but in the last decade robusta beans are growing substantially due to high yields, which now account for over 60 percent of coffee produced in India. The domestic consumption of coffee increased from 50,000 tonnes in 1995 to 94,400 tonnes in 2008 42. As of 2010, between 70%

and

80%

Indian

grown

coffee

exported

overseas 43.

The

most

commonly

used

coffee

beans

are Arabica and Robusta grown in the hills of Karnataka (Kodagu, Chikkamagaluru and Hassan), Kerala(Malabar region) and Tamil Nadu (Nilgiris District, Yercaud and Kodaikana44l). They are multiple types of coffees are prepared by worldwide specific to New Zealand are discussed in next section. Description of the products Little India coffee bar would offer two products coffee beverages and pastries in the comfortable environment. Coffee beverages will be the main product sold by the cup in three sizes. Further, Little India would offer its customers the best-prepared coffee in the area that would be complimented with pastries, as well as free playing Indian games such as chess, ludo through this people can enjoy them visit.

http://www.littleindia.co.nz/ http://www.stats.govt.nz/Census/2013-census/profile-and-summary-reports/quickstats-about-aplace.aspx?request_value=14344&tabname= 40

http://agritrade.iift.ac.in/html/Training/ASEAN%20%E2%80%93%20India%20FTA%20%20Emerging%20Issues%20f or%20Trade%20in%20Agriculture/Coffee%20Export.pdf 42

"Coffee Data". Coffee Board of India. Retrieved2010-10-05.

Waller, J. M., Bigger, M., Hillocks, R.J. (2007). Coffee pests, diseases and their management. CABI. p. 26.ISBN 1-84593-129-7.

http://agritrade.iift.ac.in/html/Training/ASEAN%20%E2%80%93%20India%20FTA%20%20Emerging%20Issues%20f or%20Trade%20in%20Agriculture/Coffee%20Export.pdf © 2016-2017 All Rights Reserved, No part of this document should be modified/used without prior consent Tutors India™ - Your trusted mentor since 2001 www.tutorindia.com I UK # +44-1143520021, Info@tutorsindia.com

Page 20 of 43

Types of coffee S.No

Types of coffee

Products description

Flat white

one third espresso, two thirds steamed milk with a touch of swirled froth

Espresso / short black

basis for all coffee styles, espresso is full-flavoured, fragrant, with a velvety body and lingering after-taste; single serving in a demi-tasse (small cup)

Macchiato

a single or double espresso shot, just stained with frothed milk

Long black

single serving of espresso, with the same amount of hot water added; served in large cup filled to just under the top, or sometimes with the water provided separately

Cappuccino

regular espresso with equal parts steamed milk and foam, sprinkled with

Caffe latte

regular espresso, topped with hot milk and little or no froth

Mochaccino

one third each of espresso, steamed milk, cocoa

Ristretto

(‘restricted’) is 15-20ml of espresso, the essence of coffee

Piccolo latte

miniature latte made with ristretto and 70ml of steamed milk; delicate

chocolate or cinnamon

flavoursome drink 10.

Affogato

espresso served over ice-cream

11.

Espresso Romano

espresso served with a twist of lemon

12.

Latte macchiato

steamed milk with espresso on the side

13.

Espresso con panna

espresso topped with a dash of whipped cream

14.

Cortado

Spanish version of the piccolo served in a 60ml demitasse cup

Fluffy

for kids, a demi-tasse filled with foamed milk, sprinkled with chocolate and served with marshmallow on the side and a small chocolate fish.

16.

Plunger Coffee

Water just off boiling is poured over coarsely ground coffee, and the mixture is stirred to break up the floating coffee grounds so that they sink. The mixture is then allowed to steep for 2 to 4 minutes. The mesh filter is then plunged slowly to the bottom, pushing the grounds with it. The coffee may then be poured.

17.

Stovetop

Traditional Italian method of producing espresso-style

18.

Americano

Double shot topped with hot water leaving room for milk or cream.

19.

Irish Coffee

this type of coffee is brewed with whiskey, sugar, and a thick layer of

20.

Vienna

21.

Mochachino

Babycino

cream on the top strong espresso together before whipped cream is added as a substitute for milk and sugar A ‘mocha’ is just a latte with added chocolate powder or syrup, as well as sometimes being topped with whipped cream warm milk in a small cup and topped with milk froth and chocolate powder

Source: Adopted from 45, 46,47, 48

45 46

http://media.newzealand.com/en/story-ideas/new-zealands-dedicated-coffee-culture/ http://www.robertharris.co.nz/coffee-101/tips-and-tutorials/types-of-coffee/ © 2016-2017 All Rights Reserved, No part of this document should be modified/used without prior consent Tutors India™ - Your trusted mentor since 2001 www.tutorindia.com I UK # +44-1143520021, Info@tutorsindia.com

Page 21 of 43

Competitive advantage Competitive advantage is based on core competence. But that’s not all. Core competence is what a company does well, but competitive advantage is what makes company’s product/service better than others in the customer’s eyes. The competitive advantage of Little India is based on their service and quality of the drink. Further Little India would give comfortable and pleasant environment such as unique attraction under one roof with proper amenities and is affordable, first of its kind in the targeted area all these would be seen good and relevant in the customer’s eyes. Thus, this can be seen as a competitive advantage. Place strategies Place refers to provide a location where customers can easily access the products. The location where a business takes place will affect customer’s perception on product (Blythe et al. 2010, 19249). Location Little India restaurant found in Wellington region, where it is located in the Mungavin Homestead, one of Porirua's most historic old homes, now owned and restored by the local council is selected to open a new coffee shop 50. Little India is a very attractive place in the coffee bar of the growing demand for services fluently being opened where people can come and drink only coffee not only in itself but also would feel cool. This is because a lot of shops in Porirua, but not such a quiet place where people can come and feel great feast. The second is that the coffee bar was already being opened the restaurant. The resulting two different industries would benefit from each other. Although with no prior reviews on Dine Out, the restaurant has actually been open for three years and is reached via an attractive driveway up from the road through trees and bush. It has two spacious highstudded dining areas, one seemingly kept for larger groups and the other reserved for smaller ones. That is one reason why the coffee bar in a small part of being opened. Inside the coffee bar on the left as you enter the restaurant, which would be in the range of 1800 square meters. Little India coffee bar is owned and operated by Jugnu gill. He has a background in the food industry because he started his firm with small chip and fish shop outside Dunedin in 1991. Numerous customers come to the coffee bar which is the goal of Little India; as the client is the people living in the surrounding area such as Cannons creek, Ranui heights, Waitangirua, Aotea, Ascott park, Mana, Plimmerton, Whitby, Elsdon, Titahi bay.

http://www.canstarblue.co.nz/food-drink/coffee-shops/coffee-types-explained/ https://www.quora.com/What-are-all-the-different-types-of-coffee-drinks 49 Model 1 pdf 50 http://www.littleindia.co.nz/wellington-porirua © 2016-2017 All Rights Reserved, No part of this document should be modified/used without prior consent Tutors India™ - Your trusted mentor since 2001 www.tutorindia.com I UK # +44-1143520021, Info@tutorsindia.com 48

Page 22 of 43

Figure 7: Little India - Dunedin, 9016, New Zealand

Source: Adopted from 51 Layout The traditional Indian base coffee shop is a concept that is being designed after consideration of individual feedback and market potential. After verifying the square metre of their restaurant, the below concept plan was developed for Little India coffee shop.

https://www.google.co.in/maps/place/Little+India/@45.8734226,170.5030975,17z/data=!3m1!4b1!4m2!3m1!1s0xa82eac0d62c2cef1:0x7e646ae977505943

Page 23 of 43

The planned coffee shop is divided into three sections; one is service area; secondly reception and thirdly waiting lounge. Service area This section will be the attraction to retain the customers by providing efficient service quality. One area of this section will be occupied by kids and adults for playing games. Reception This section will be the centre piece of attraction and the main piece around which entry of customers in coffee shop. The reception area will be set up with colourful designs and higher level of interior decorations. Receptionists will have good skills and knowledge to attract the customers by providing the details whatever asking the customers. Waiting Lounge This section also plays a key role in coffee shop for providing relaxation and waiting option for customers. This section will support the customers for reducing the stress of waiting of long time with full enjoyment by giving some magazines and other new articles, general knowledge books etc. For Kids will provide toys for playing and other cookies for their happiness. Hours of Operation Coffee bar will be open seven days a week, but weekend special the shop will be open until late night which is fine according to a market strategy. The opening duration of Little India coffee shop is from 7.30 hours to 11.00 hours from Monday to Sunday. It is operational of Sundays too and if required, the duration can be stretched. Start-up procedures are the responsibility of the day manager who reports to work an hour prior to opening hours in order to begin the start-up procedures. Prime operating hours go on from 2100 hours to 0000 hours on Friday and all weekends – Saturday and Sunday, totalling up to 156 hours in a month. Seasonality trends For coffee shop, almost all the seasons will be possible. Specifically, summer and autumn seasons will be suitable for coffee lovers to frequently drink. Others seasons will be possible to drink but revenue will be yield higher at summer and autumn seasons. The coffee shop will reach the target population by providing weekly e-Blasts to an emailing list, weekly newsletters, local newspapers advertisements and posters in local businesses. Price strategies Price not only brings income to a company, but also gives the quality image. People tend to consider that a higher-priced product also refers to a high quality product (Blythe. et al. 2010, 192). Price influences marketing positioning 52. The appendix –A table given the price strategy for different coffees:

Model 1 © 2016-2017 All Rights Reserved, No part of this document should be modified/used without prior consent Tutors India™ - Your trusted mentor since 2001 www.tutorindia.com I UK # +44-1143520021, Info@tutorsindia.com

Page 24 of 43

S.No

Name of the coffees

Price

Flat White

$3.70 to $6

Americano

$3.90 to $6

Latte

$4.10 to $7

Cappucino

$4.10 to $7

Café Mocha

$4.90 to $7

White Chocalate Mocha

$4.90 to $7

Caramel Macchiato

$4.90 to $7

Caffe Breve

$2.20 to $6

White Chocalate mocha

$3.75 to $ 4.75

Freshly Brewed Coffee

$1.85 to $ 2.45

11.

Cinnamon Dolce Latte

$3.65 to $4.65

12.

Skinny Vanilla Latte

$3.45 to $4.65

13.

Caramel Flan Latte

$3.75 to $4.75

14.

Teavana® Oprah Cinnamon Chai

$3.65 to $4.65

Tea Latte 15.

Skinny Peppermint Mocha

$3.95 to $4.95

16.

Pumpkin Spice Latte (Limited Time)

$4.25 to $5.25

17.

Salted Caramel Mocha (Limited

$4.25 to $5.25

Time) 18.

Toasted

Graham

Latte

(Limited

$4.25 to $5.25

Time) Source: Adopted from 53,54,55 Promotion With the help of the marketing strategies, the coffee shop must reach as many of their target population as possible. Various telecommunication approaches such as Internet based advertising; Radio based advertising, commercial ads in TV, Mobile advertising, Posters and flyers and in magazines and newspapers could be used to reach the target population. i) Personal Selling Maximum part of personal selling is done by the coffee shop via the box office and the internet as well. People wanting to rent out the place for a searching suitable coffee shop details in internet regarding rate bands and availability. Since there are many corporate offices and other private offices around the proposed location, the coffee shop will appoint two sales executives for promotion purpose. ii) Advertising & Public Relations Several advertising initiatives are conducted by the coffee shop on the basis of the new openings and their promotion strategy. Display posters are the most popular mediums and are often put up in local business areas. Different types of coffee including menus will promote on the website a copy of which can be seen in this report in the supporting documents section.

https://www.zomato.com/auckland/starbucks-massey/menu https://www.newzealandnow.govt.nz/living-in-nz/money-tax/comparable-living-costs 55 http://www.fastfoodmenuprices.com/starbucks-prices/ © 2016-2017 All Rights Reserved, No part of this document should be modified/used without prior consent Tutors India™ - Your trusted mentor since 2001 www.tutorindia.com I UK # +44-1143520021, Info@tutorsindia.com 54

Page 25 of 43

Newsletters are another advertising mode that contains calendar details of events and goings-on at the coffee shop. Besides this, the coffee shop will also promote online advertising initiatives on their website by means of photographs, descriptions and present promotions, and updated new varieties of coffee. Local newspapers as well as websites also cover the coffee shop details and carry information about their menu and price details. Because of this, the reach of the publicity also spreads much wider (Google Ads, Affiliate Marketing) Sales Promotions Adequate discounts are given by the coffee shop to local area residents and frequent visitors including offer in price rate during the festival season and membership card for frequent visitors so as to increase sale. Performance measures In a sense, all coffee shop measure performance. They may do it systematically and thoroughly or on an ad hoc basis and superficially, but they do it. The bottom line is that coffee shop have to track and monitor events to be able to know what they are doing. According to Neely et al (1995) the level of performance a business attains is a function of the efficiency and effectiveness of the actions it undertakes. Although there are several measures, the most widely cited is the balance score card which will be applied to the present business model. The balance score card combines both financial and non-financial measures which can be grouped into financial and non-financial measures. The set of measures can be grouped into four main perspectives which enable supervisors to answer four important questions about their coffee shop. The Financial Perspective: The Financial Perspective covers the financial objectives of an coffee shop and allows supervisors to track financial success and shareholder value. The primary financial objective of coffee shop is to ensure profitable growth and to manage operating costs. The coffee shop plans on maximising the revenue growth and to keep reducing the operational costs per person or customer. By doing so, the company can provide maximum success for their shareholders. The Internal Business Perspective The Internal Process Perspective covers internal operational goals and outlines the key processes necessary to deliver the customer objectives. In the case of coffee shops largely depends on customer satisfaction and also is in line with the financial perspectives of the organization. The coffee shop will keep customer service excellence as the key factor and will implement steps to improve their level of service to the customers. Some of the measures that will be taken to ensure this are, recruit experienced person or provide training for the current staff regularly to get their views and opinions and to educate and train them on serving the customers better. In addition to this, another internal business process that will be implemented by the coffee shop is optimal asset utilization. By ensuring that the equipments are maintained and serviced regularly, this in turn will help in maximising profits. The customer perspective In customer perspective covers the customer objectives such as customer satisfaction, market share goals as well as product and service attributes. The coffee shop will keep in touch with the customers and will keep suggestion boxes and will earnestly review them and incorporate as many of the customerâ&#x20AC;&#x2122;s suggestions. The innovation and learning perspective The learning and growth perspective covers the intangible drivers of future success such as human capital, organisational capital and information capital including skills, training, organisational culture, leadership, systems and databases. The coffee shop will

Page 26 of 43

endeavour to keep learning from experience of their competitors and to keep pushing towards introducing more innovative products and innovative methods of carrying out the business operations. Human resource management Table: Roles and responsibility of employees in coffee shop

Source: Adopted from 56 Table: Roles and responsibility of the employees Employee Designation CEO

Roles and Responsibility To ensure overall supervision of the running of the business and to enact policies.

Managing Director

To aid the CEO and take a more hands on approach towards the business operations and to ensure that policies are being maintained and followed.

Head of training

To oversee employees well-being and to take care of them and also to recruit more employees as required.

Financial controller

To keep an account of the financial transactions of the entire business operations.

Reception and secretarial

To help the public in their queries and to be the face and voice of the organization.

Admin and custom clearance

To maintain the overall equipment’s and other materials in coffee shop

Store Keeper

To maintain all the necessary products on the basis of manufacturing date and also buy the necessary products for coffee shop

House Keeper

To maintain the coffee shop as clean and hygiene

Sales and delivery

To fulfil the customer satisfaction

Distribution and operation

To maintain the complete processing in production area and also fulfil customer satisfaction

Source: Modified from 57

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Page 27 of 43

Health and Safety Policies Health and safety will be taken very seriously by the management. Health and safety of both the employees as well as the customers will be given paramount importance. The HR department will oversee the health and safety of all the employees. The employees will be given proper time off every week. They will be given medical insurance on behalf of the organization. Furthermore regular training workshops will be conducted for the employees. In the case of the visitors, health and safety warnings and labels will be prominently displayed with clear and legible letters for everyone to see. Capital resource plan The most vital component of business planning is capital planning. The capital to be invested by the company is found to highly influence the activities of that company. Land acquisition, construction of premises, stocks as well as display necessities of the business are the major capital requirements. Overall capital requirements of the firm as well as the sources of the capital have been discussed in the plan. Objectives of the plan To evaluate the overall capital funding requirements for the business. To check the various resources of funds. To allocate the available resources in an optimum manner to get the best results. To check the repayment terms of the funds. CAPITAL REQUIREMENTS Some of the major expenses of the firms are: Premises: The coffee shop is going to be open as one of existing restaurant of Little India at the major commercial location of the city. Poriurua is the location of the coffee shop. Land: Building: Equipments: A

Displays: Store Equipments:

Website Development: Planning regulations The laws and regulations in terms of constructions have been discussed in this section. Parking Space: Financial plan

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Various forecasted financial statements of the business for the next five years have been given in the financial plan. This will be helpful to assess the feasibility of the venture in financial terms. As this plan shows the flow of cash in the business, it is an important component of business planning. The financial plan of the business will include the following: 

Income Statement



Balance Sheet



Cash Flow Statement



Breakeven Analysis



Ratio Analysis



Investment Appraisal

Objectives of the plan To check the financial feasibility of the venture. To calculate the various financials of the business for the five years of the operations of business. To calculate the profitability of the business with the help of Income statement. To check the flow of cash in the business with the help of cash flow statements. Start-up Expenses

The expenses in terms of getting license/permits to run entertainment ventures, product promotion and other miscellaneous expenses will come under the category of start-up expenses Risk and Mitigation plan Risk and Mitigation plan is a part of overall business where the proactive risks of the business have been handled. The main intention of this plan is to identify whether the risk may occur during the course of business and plan for the mitigation of the risk. As per Blos et al (2010), risk management is often noted as anticipated process that addresses the issues which may cause risk to the significant objectives of the business. Since this process could facilitate the study to recognize the practical risk and mitigation occur during the course of business and hence it is considered as an important part in the business planning. The following are the important objectives of the business plan. OBJECTIVES OF THE PLAN 

To determine the range of risks involved in business planning in respect to its possibilities of consequences.



To measure and assess the mitigation for the risk during the course of business.



To perform the risk reassessment at regular intervals.



To provide solutions for the issues faced by HRD of the firms



To check the customer’s feedback with respect to the firm products.

Page 29 of 43

ANALYSIS OF THE RISKS INVOLVED Operations plan Business Location and staff Business Operations Customer support service Evaluation

Page 30 of 43

9.0 LIST OF COFFEE SHOPS IN NEWZEALAND List of coffee shops in Newzealand S.No

List of coffee shops

Region

Cosset

Mt Albert,

Coffee qualities and current status 

customers

Auckland

Little Bird Unbakery

Provide aesthetic and charming environment for

Ponsonby



Excellent vegan food with tea and coffee



Fair trade and organic food

Provide coffee using hazelnut milk Tastiest and delicious healthy food along with raw organic vegan, gluten free, soy and dairy free products58

Queenies

Auckland

Refreshing menu with savoury delights include Turkish eggs with chilli butter Warm and welcoming atmosphere Queenies is available for private dining Wednesday to Saturday 5 till 10pm59.

Teed St Larder

Auckland

Provide baked goods and perfect place Make three beans coffee60

Wai Kitchen

Waiheke

Given finest cafe with magic mix of elegance and casual relaxation House-smoked salmon with eggs, avocado and toasted local bread61 Homemade pastry alongside an expertly made Three beans Organic Fair Trade Coffee

Cafe on Kohi

Kohimarama,

Provide lengthy menu and lovely beachy vibe

Auckland 7.

Takapuna Beach Café

Takapuna,

TBC is deservedly famous for its home-made gelato, its fish

Auckland

and chips, its baked goods, its almost bewilderingly large breakfast menu (so many choices, so early in the morning!), which features some of the best granola you’ll find anywhere in the city, which is also true for its spicy eggs, its eggs

http://littlebirdorganics.co.nz/collections/unbakery http://queenies.co.nz/evening/ 60 http://www.teedstreetlarder.co.nz/ 61 http://www.waikitchen.co.nz/ © 2016-2017 All Rights Reserved, No part of this document should be modified/used without prior consent Tutors India™ - Your trusted mentor since 2001 www.tutorindia.com I UK # +44-1143520021, Info@tutorsindia.com 59

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benedict and half the rest of the lineup, and now it’s even true for the cronut. Yes, folks, the dangerous lovechild of doughnuts and croissants was first introduced to Auckland at the Takapuna Beach Cafe62 8.

St Heliers Bay Cafe & Bistro

St Heliers, Auckland

Supreme winner restaurants One of Auckland’s best new restaurants in the city lovely new delights It’s comfortable and sophisticated, a lovely place to sit and watch the water, a happily busy hub for the suburb and a repository of excellent service and some very good food Provide hot and strong coffee63 Opening time is 7.00 am- 11.00pm

Federal Delicatessen

The food is so good, we barely know where to start: salmon latkes with crème fraîche and dill, a breakfast salad chock full of haloumi, smoked fish hash, reuben sandwiches, matzo ball soup — all stars in this food-lovers’ paradise Opening time is 7.00 am-1.00pm64

10.

Columbus65

Porirua, Auckland

A highly recognised and trusted brand offering customers exceptional coffee and chef-prepared food in a modern café environment Columbus Coffee is an exciting and unique company. We are credited with kick starting the cafe culture in Auckland in the mid nineties, Columbus Coffee set the standard that other cafes have aspired to since. We have opportunities throughout the country - both with brand new cafes and to take ownership of existing cafes. It takes a particular kind of person to be a Columbus Coffee franchisee. We are looking for dedicated individuals who have a passion for coffee and hospitality service66.

11.

Ortolana

Britomart,

Super-smart fitout, a menu created by Takapuna Beach

Auckland

Cafe’s Jo Pearson, breads and baking from The Store and

http://www.takapunabeachcafe.co.nz/ http://www.metroeats.co.nz/restaurant-reviews/st-heliers-bay-cafe-bistro-review/ 64 http://thefed.co.nz/ 65 http://www.franchise.co.nz/franchise-opportunities/611-columbus-coffee 66 http://www.franchise.co.nz/franchise-opportunities/611-columbus-coffee © 2016-2017 All Rights Reserved, No part of this document should be modified/used without prior consent Tutors India™ - Your trusted mentor since 2001 www.tutorindia.com I UK # +44-1143520021, Info@tutorsindia.com 63

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sweet treats from Milse Ortolana is one of Auckland’s truly great little seven-day, allday establishments. Customers loved the soft eggs with mackerel and capers, and the sago and lemon custard with dates is pretty cool too67. 7-11pm 12.

Depot and Ima

Auckland The perfect place to drop in and refuel. It’s chef Al Brown’s place and reflects perfectly his attitude towards food: in season, beautifully cooked, to be enjoyed with friends. Opening time is at 11.00 am daily and closed at Saturday 24th Oct; Sunday 25th Oct; Monday 26th Oct Most of the cooking is over charcoal or hard wood so there’s a real succulence to the flavours. Order a selection of small plates and pass them round. Try the freshly shucked oysters. Then there’s the wine list – small, but perfectly formed, with many of Al’s top picks68.

13.

Jaylons cake and coffee house

Porirua

6.30-3.00pm69

14.

Bread & Butter

Ponsonby and

Bread & Butter is a bakery as well as a great cafe.

Grey Inn

With efficient friendly service and a solid menu, it’s especially popular with mothers and their babies. Sun-filled windows, big tables, easy parking and all that good food and become very partial to the mushroom, ham and cheddar omelette, and the walnut rye bread. wheat-free sourdough Leavened, yeast-free, dairy-free, and gluten-free bread, a wide range of vegan breads as well as a large selection of bread rolls including the famous German pretzel rolls complete the range70

http://www.metroeats.co.nz/best-cafes/the-50-best-cafes-in-auckland-2013/ http://www.eatatdepot.co.nz/ 69 https://www.zomato.com/wellington/jaylon-coffee-house-porirua-central/menu 70 http://www.breadandbutter.nz/about-us/ © 2016-2017 All Rights Reserved, No part of this document should be modified/used without prior consent Tutors India™ - Your trusted mentor since 2001 www.tutorindia.com I UK # +44-1143520021, Info@tutorsindia.com 68

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15.

Federal & Wolfe

Auckland

It also offers a great range of ethically inspired menu and counters options, and is staffed by seasoned professionals who look after their customers superbly well. The bircher muesli, which we’ve had with fresh pear, is quite possibly the best in the city 8.30-4.00PM71

16.

Good One

Ponsonby,

Beautiful new fitout and delicious counter food supplied by

Auckland

Little & Friday Good One just keeps getting better Chemex, single-origin blends and the usual favourites72 The relaxed atmosphere urges you to pick out one of their National Geographic Magazines and point out all the locations you dream of visiting73.

17.

Little & Friday

Ponsonby, Auckland

Little & Friday remains the pinnacle in baked goods With boutique espresso and filter coffee, our whole range of cabinet food and almost all of our menu available74 8-3.30

18.

Petit Bocal

Sandringham

French baked goods Serving delicious breakfast, lunch and sharing plates for dinner, as well as three to four mains on our evening specials board. We are just a stone's throw from eden park, so a perfect place for your pre-match meeting75 7-10pm

19.

Reuben cafe

Auckland

Ruben boasts a cabinet full of gorgeous sandwiches and salads, including a huge selection of gluten-free options, and pies and sweet things from Scratch Bakers76 Ruben Cafe has a friendly, modern atmosphere that makes it easy to relax in the heart of this busy business district. 6.30-3.00pm77

http://www.heartofthecity.co.nz/dining/auckland-cafes/federal-wolfe https://www.zomato.com/auckland/good-one-ponsonby 73 https://www.zomato.com/auckland/good-one-ponsonby 74 http://www.littleandfriday.com/#follow 75 http://petitbocal.co.nz/ 76 http://parnell.net.nz/directory-listing/ruben-caf/ 77 http://parnell.net.nz/directory-listing/ruben-caf/ © 2016-2017 All Rights Reserved, No part of this document should be modified/used without prior consent Tutors India™ - Your trusted mentor since 2001 www.tutorindia.com I UK # +44-1143520021, Info@tutorsindia.com 72

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20.

Scullery

The coffee was the perfect temperature for drinking and

Auckland

served with a lovely souvenir spoon which we thought was a nice touch. The food was some of the best brunch fare we've had in this city. We ordered the spiced wagyu mince and forest mushroom ragu but it was hard to decide as all the offerings were interesting and enticing. Both our choices were generous in their portions, the mince was nutty and subtly spicy. The succulent mushrooms were soaked up by a thick slice of soft bread - brunch perfection.78 21.

The Store

Britomart

Casual-yet-excellent dine-in experience and delicious takeaway options Beautiful food, consistently excellent coffee and trademark friendly service79

22.

Toru

Ponsonby,

Delicious German/Irish concoction of corned beef, colcannon,

Auckland

sauerkraut and crème fraîche tancy your poached eggs with soft polenta, bacon hock, goats’ curd and vine tomatoes The service is excellent, and the menu is small and wonderfully varied. 7.30-4.00PM80

23.

Atomic coffee roasters

Auckland

Latest single origin coffees, seasonal beverages and espresso. The café offers a menu of sumptuous brunch & lunch staples, as well as an array of impressive grab-and-go food and sweet treats81

24.

Dida’s food store

Auckland

The Dida's concept is perfectly encapsulated in this bright open space full of bright, smiling faces, all eagerly meeting the myriad needs of a city that knows its pickled onions from its pitted olives. Offer a dazzling array of local and imported deli delights, from exciting, new products through to centuries-old traditional ones, and dried goods and exotic condiments that will

http://www.nzherald.co.nz/lifestyle/news/article.cfm?c_id=6&objectid=11133594 http://britomart.org/restaurants-and-bars/the-store 80 http://toru.co.nz/gallery.aspx 81 http://atomiccoffee.co.nz/pages/cafes © 2016-2017 All Rights Reserved, No part of this document should be modified/used without prior consent Tutors India™ - Your trusted mentor since 2001 www.tutorindia.com I UK # +44-1143520021, Info@tutorsindia.com 79

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complement or form the basis of your next culinary creation. Have a beautiful breakfast or lunch, a sensational coffee, or take home a fresh sandwich or gourmet meal: the options on offer are as dazzling as the food itself.82 25.

Dizengoff

Ponsonby,

Dizengoff offers consistently excellent food, coffee and

Auckland

service. It drowns in sunshine on a good day and is the perfect spot both for Ponsonby people watching and getting away from all that in a room upstairs. The mushrooms on toast is a classic

26.

Kokako

Grey Lynn,

Strong advocates for Fairtrade and ethical procurement of our

Auckland

green beans and cocoa/sugar. All Kokako Coffee and Drinking Chocolate has ‘third party verification’ from both Fairtrade and Biogro NZ, to ensure it meets stringent Fairtrade and organic certification standards.83 Mon to Fri 7am – 3.30pm / Sat and Sun 7.30am – 4pm

27.

Eighthirty

Newton, Auckland

This ever-growing coffee empire has its headquarters on K’ Rd, where exposed brick and bikes decorate the walls. Dedication to the perfect cup is evident through their great baristas and freshly roasted beans, and also on offer are counter food from Cool Food Catering and sweet treats from The Caker’s Jordan Rondel, who bakes out the back84

28.

Meola Kitchen

Westmere

The counter food — check out those light and fluffy cinnamon brioches — is especially good.

29.

Mimosa

Takapuna

Japanese inspired menu sourcing mainly organic and gluten free ingredients Sweet and savoury goods that accommodate almost any dietary requirement85.

30.

Mojo

Newmarket

The Mojo Coffee Cart or Caravan is a great must have at any event! Both are compact and have a sleek, functional design. They are both fully contained units and provide Mojo’s favourite blends of coffee, tea and hot chocolate.86

http://www.didas.co.nz/foodstore?location=jervois http://kokako.co.nz/our-coffee-roastery/sustainability/ 84 http://www.eighthirty.com/ 85 http://www.cafemimosa.co.nz/ 86 http://www.mojocoffee.co.nz/services/coffee-cart/ © 2016-2017 All Rights Reserved, No part of this document should be modified/used without prior consent Tutors India™ - Your trusted mentor since 2001 www.tutorindia.com I UK # +44-1143520021, Info@tutorsindia.com 83

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31.

Monterey

Auckland

Monterey Cafe is a unique bar and restaurant located in the heart of Spokane, making us headquarters for downtown and downtown events! We're committed to helping our community and have everything from delicious SoCal inspired pizzas and salads 87

32.

Olaf’s Artisan bakery care

Auckland

There are plenty of chairs lined up neatly outside Olaf's Artisan Bakery Cafe, even in winter. Upon each one sits a carefully rolled little blanket, to keep those willing to brave the weather nice and cosy while they sip on coffee and fresh air.88

33.

Richmond larder

Auckland

Richmond Larder is easy to overlook, nestled up next to the very popular Ripe, but if you’re looking for a genuine cafe experience, with great coffee, superbly attentive service and a really nice back balcony to boot, the Larder is the place. As for the super-tasty food, from baked beans to macaroons, they make it all themselves

34.

Richmond Rd cafe

Auckland

Terrific food, highly trained staff and an elegant sophisticated fitout89.

35.

Rosehip cafe

Rosehip is one of the Hip Group’s oldest cafes, but don’t go

Auckland

thinking any the less of it for that. It’s one of the few genuine foodie gems in Parnell, a paragon of attentive service, and while the menu’s good, the cabinets are so beautifully stocked you may not want to look any further. 36.

Zomer

Takapuna

Located in the Beautiful Suburb of Takapuna Beach, Zomer Cafe & Beach Club is a Casual Dining Venue & a Place to Relax With Family & Friends90.

37.

Zus and Zo

Auckland

Zus & Zo is a Charming Local Cafe Situated In a Sunny Corner of Auckland's Herne Bay. Decisively Chic with a Minimalistic Interior, We Offer the Perfect Place to Meet with Friends or Mingle with the Locals on the Communal Table Our Cuisine is Simple, Creating Wonderful Flavours, Using Only the Finest Ingredients91

http://spokanemontereycafe.com/ http://www.olafs.co.nz/ 89 http://www.richmondrdcafe.co.nz/ 90 http://zomer.co.nz/about-us/ 91 http://zusandzo.net.nz/index.php?page=about_us © 2016-2017 All Rights Reserved, No part of this document should be modified/used without prior consent Tutors India™ - Your trusted mentor since 2001 www.tutorindia.com I UK # +44-1143520021, Info@tutorsindia.com 88

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Cafes for Kids 38.

Jam Organic Cafe

Auckland

Jam is off the main Hurstmere Rd strip in ever-improving Takapuna and sprawls out onto the neighbouring Hurstmere Green. Beautiful organic food graces both the counter and the menu. A lovely brunch spot, great for children and nearly unbeatable in the sunshine

39.

Catroux

Auckland

Catroux is a simple white Westmere room. A cabinet heaving with delicious, nutritious bright salads, innovative panini's, sticky pineapple and apricot glazed ham off the bone… plus other daily creations.

We also offer delectable baked sweet treats and many healthy treats; smooth strong Eighthirty coffee, green smoothies and fresh juices.

The brunch menu changes with the seasons, providing wholesome tastiness and exciting combinations.

We even have a sandpit and menu for the little people. It goes without saying our bacon and eggs are free range.

We use specialty bread from Pukeko Bakery and make everything onsite. We also supply our delicious food daily to Eat 92

40.

Cereal Killa

Auckland

The price and portion was good and fair however many elements of the meals were a let down. The tomatoes look dried and have been standing out too long, the haloumi was thick and undercooked and the potatoes tasted quite nitrogenous. Overall the food tasted fine but it wasn't fantastic due to little composition problems. Also misleading "pancake" was actually crepe. With carton

http://www.catroux.co.nz/ © 2016-2017 All Rights Reserved, No part of this document should be modified/used without prior consent Tutors India™ - Your trusted mentor since 2001 www.tutorindia.com I UK # +44-1143520021, Info@tutorsindia.com

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bought custard taste93 41.

Landreth & Co

Auckland

The food is tasty and quick, the coffee strong and fast.

42.

Raven & Cook

Auckland

Raven & Cook are looking forward to our new menu using the new and exciting Spring arrivals. First to herald the change is of course asparagus. Usually a long way out in front at first as a luxury priced item, as the supply has strengthened it’s now at a point where it can be a staple. Next comes a personal favourite, Artichoke. It’s inner leaves can be torn off and lightly battered and served hot with aioli. The stem along with the heart, once cleaned of the choke, can be stuffed with anchovy and caper flavoured fresh breadcrumbs, turned upside down and braised in olive oil... yum94!...

43.

Ruby Red

Auckland

Ruby Red is the brightest spot in a charming little town centre. It’s owned byHerald food writer Amanda Laird, who offers her own take on fresh ingredients and tasty combinations. The pies are very popular. As befits every suburban cafe, it’s especially attentive to kids

44.

Butlers Chocolate Café

Porirua

Provide good experience to their customers Tasty cafe was given Suppliers relationship was good with customers Delectable milk, dark and white speciality chocolate assortments, Butlers Chocolates produce decadently creamy toffee, velvety soft fudge, deliciously moreish chocolate filled and solid chocolate bars, enticing milk chocolate truffles delicately flavoured with famous liquors and delightful seasonal collections at Christmas, Valentine’s Day, Mother’s Day and Easter!95

45.

The coffee club

Porirua

Provide ‘excellent’ cup of coffee indulged at The Coffee Club is a talented and trained barista, our world-class 'signature blend', the perfect extraction and first-class coffee-making equipment. With a welcoming and relaxed atmosphere on

https://www.zomato.com/auckland/cereal-killa-cafe-mount-eden http://www.ravenandcook.com/ 95 http://www.butlerschocolates.com/uk/about-us/who-we-are © 2016-2017 All Rights Reserved, No part of this document should be modified/used without prior consent Tutors India™ - Your trusted mentor since 2001 www.tutorindia.com I UK # +44-1143520021, Info@tutorsindia.com 94

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offer with every cup, the only thing left for you is to choose your company96. 46.

Zampelles cafe

Porirua

Zampelle Italian restaurant offers a touch of old school with a modern twist. The aim of our owner Anthony Zampogna, is to provide a classic and enjoyable Italian dining experience. Zampelle welcomes you to enjoy good food, outstanding service and a relaxed atmosphere97.

47.

Palmers Plimmerton

Porirua

Cafe Mondo inside Palmers Plimmerton is a locally owned and managed cafe with an excellent reputation for serving delicious food and superb coffee. Mondo is a favourite with family groups as the kids can safely enjoy the play area while you relax with friends98.

48.

Muffin break

Porirua

Reputable, reliable and trusted café Prepared fresh food and award-winning coffee99

49.

Café Kaizen

Porirua

Kaizen Cafe is a privately run cafe within the Pataka Complex offering delicious quality food, from a light nibble to a full blackboard menu. Enjoy a fantastic coffee within Pataka’s wonderfully sunny gallery atrium with views of our beautiful Japanese garden. Kaizen Cafe is usually open from 10am until 4pm every day except public holidays and other selected holidays100.

50.

Peppermill Deli and Café

Porirua

Provide delicious food and cafe101

11. RECOMMENDATIONS 12. CONCLUSIONS 13. GLOSSARY 14. REFERENCES

https://www.coffeeclub.com.au/our-menu/drinks/ http://www.zampelle.com.au/#who_we_are 98 http://www.palmers.co.nz/palmers-plimmerton/ 99 http://www.muffinbreak.co.nz/franchise/ 100 http://www.pataka.org.nz/venues/kaizen-cafe/ 101 http://thepeppermill.co.nz/ © 2016-2017 All Rights Reserved, No part of this document should be modified/used without prior consent Tutors India™ - Your trusted mentor since 2001 www.tutorindia.com I UK # +44-1143520021, Info@tutorsindia.com 97

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