Operational Simple Feasibility Study
Prepared by: [Your Name]
Date: September 24, 2050
1. Introduction
Objective: This study aims to evaluate the operational aspects of opening Java Haven, a cozy coffee shop located in downtown Riverside, to determine its feasibility and guide the planning process.
Scope: The analysis will cover staffing requirements, supply chain logistics, necessary technology, and operational processes to ensure a successful launch.
2. Operational Requirements
Location: The proposed location is at 123 Main St., Riverside, which features high foot traffic because of nearby offices, shops, and a university.
Business Model: Java Haven will offer a diverse menu of specialty coffees, organic teas, artisanal pastries, and light snacks for dine-in, take-out, and online orders.
Operating Hours:
3. Staffing Needs
Staffing Plan:
Baristas: 3 full-time baristas (each averaging 40 hours/week) with a focus on customer engagement and product knowledge.
Part-time staff: 2 part-time employees for peak hours (10 AM to 2 PM).
Manager: 1 manager responsible for daily operations, staff scheduling, and inventory management.
Training: Implement a two-week training program covering barista skills, customer service, and food safety protocols.
4. Supply Chain Management
Suppliers:
Local Coffee Roasters: Riverside Roastery for high-quality, ethically sourced coffee beans.
Baked Goods: Riverside Bakery for fresh pastries delivered daily.
Equipment Suppliers: Coffee equipment from BrewTech Supplies for brewing and blending needs.
Inventory Management: Use a cloud-based inventory management system to track stock levels in real time and automate reordering when levels fall below predetermined thresholds.
5. Technology Requirements
Point of Sale (POS) System: A user-friendly system like Square for tracking sales, managing inventory, and generating daily sales reports.
Wi-Fi: Offer free high-speed Wi-Fi to enhance customer experience and encourage longer visits.
Online Ordering: Develop a user-friendly website with an integrated online ordering system for pickup and delivery through a mobile app.
6. Operational Processes
Customer Service:
Food Safety and Hygiene:
Sales Tracking:
7. Financial Considerations
A. Start-up Costs:
Estimated start-up costs: $150,000, which includes $50,000 for equipment, $30,000 for renovations, $40,000 for initial inventory, and $30,000 for working capital.
B. Operational Costs:
Monthly expenses:
Rent: $3,500
Utilities: $800
Payroll: $12,000
Supplies: $2,500
Miscellaneous: $1,000
C. Revenue Projections:
8. Risk Assessment
A. Market Risks:
Competition from established coffee shops and new entrants in the area.
Mitigation Strategy: Develop a unique selling proposition focusing on quality, sustainability, and community engagement.
B. Operational Risks:
Staff turnover may lead to service inconsistency.
Mitigation Strategy: Offer competitive wages, a positive work environment, and employee incentives to promote retention.
C. Economic Risks:
9. Conclusion
Based on the analysis, opening Java Haven Coffee Shop in downtown Riverside is operationally feasible. The next steps involve creating a detailed business plan, securing funding, and finalizing the location before moving forward with the project.
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