0

COMPANY NAME

VALUE PROPOSITION

BUSINESS PROPOSAL FOR A SMALL COFFEE SHOP

Prepared by Paulyn Nyagah

June 10, 2025

CONTACT INFORMATION
 1

EXECUTIVE SUMMARY

BUSINESS OVERVIEW

Coffee holds a special plan in the Kenyan market with the growing number of enthusiasts.

Therefore, it is an opportune time to dive into this industry. Coffee is an important cash crop in

the country with a high quality and diverse flavor profile. One of the reasons I decided to venture

into this business is because coffee shops have become a gathering space for friends,

businesspeople, and students. Freshly brewed coffee and highly skilled baristas provide a

delightful experience with every sip, emphasizing the art of brewing. In this coffee shop, Arabica

coffee will be served because of its rich and bold flavor and its local availability. This will cater

to the local coffee culture and retain a loyal customer base.

Vision and Business Goals

● Optimizing operations for quick service

● Providing consistency in product quality and preparation

● Selling many items quickly

Menu and Brewing

The coffee will be brewed using a high performance super automatic bean-to-cup coffee

machine. This machine can process approximately 60 cups a day and is suitable for commercial

use. The drinks served on the premises will include a mix of traditional and innovative offerings.

The backbone of the coffee will be the batch brew. Espresso drinks include lattes, cappuccinos,

americanos, and mochas. Decaf options will also be included to ensure accessibility for all

customers. We also aim for an adventurous selection that includes flavors that are chocolatey,

fruity, and sweet. Blends will be included for consistency and broader appeal. Single origins will

be ideal for highlighting unique flavors, rotating offerings, and speciality drinks. The coffee menu

will also consider the roast levels to create a sustainable model. A light roast is great for pour

overs and single origin coffees, with bright, tea-like, and fruit flavors. A medium roast is
 2

balanced with caramelized sweetness and ideal for espressos and batch brews. Dark roast coffee

is bold, rich in flavor, and suitable for traditional coffee drinkers and specific espresso profiles.

Layout

This is a tiny shop where the business is independently owned and separate from large

chains or conglomerates. A smaller space means lower rent, fewer employees, and a focused and

tight menu. The rent will cost around 10-20% of the gross sales. The kiosk will feature a sleek,

modern design with a service window, a minimalist counter, and a compact brewing station

inside. Customers will place their order to the barista at the front of the kiosk, choosing the

amount of milk and flavorings they want in their drinks. A shelf or ledge near the window will

allow customers to place their drinks briefly. It will also include an eye-catching exterior with

bold signage displaying the kiosk’s name and a concise menu. It will operate as a grab-and-go

space where people can grab a quick drink. For folks who want to sit down and hang out for a

little while, an outdoor sitting area allows them to feel the vibe of the small store. This outdoor

space will cater to 4 to 6 occupants. A small awning umbrella will provide shade. This fosters

more intimate relationships with customers where I can talk to them as they wait for their order.

The kiosk will have a small storage space to keep supplies. Cups and lids will be bought in bulk.

Cashless transactions using mobile money will be allowed as well as paying in cash. Customers

will be able to wait comfortably and get out of the way of the line and condiment station.
 3

MANAGEMENT AND STAFF

The successful management of a small coffee shop requires thoughtful planning and

execution. The owner or the manager is the central figure, overseeing all aspects of the business.

They will work shifts alongside the staff. Key responsibilities will include strategic planning,

financial management, inventory and ordering, staffing and human resource, quality control,

customer relations, equipment maintenance, marketing, and promotions. Secondly, a barista will

be responsible for preparing beverages, taking orders, providing pre-packaged food items, serving
 4

customers, processing payments, handling cash, assisting with opening and closing procedures,

stock replenishing, cleaning and maintenance, and addressing minor issues. The kiosk will have 2

part-time baristas especially during peak hours. The owner might cover during non-peak hours.

MARKET ANALYSIS

Target Market

The ideal customer base for the coffee kiosk will include a diverse range of individuals

driven by their need for convenience and quality coffee. First, business professionals and

commuters are a primary target. These individuals often seek quick, on-the-go options that fit into

their fast-paced lifestyles. Students are another significant demographic. Coffee is popular among

college and university students who frequent libraries and study spaces. We can offer this group

student discounts, loyalty programs, and a welcoming atmosphere conducive for study sessions.

Lastly, local residents and community members form a substantial part of my target market. We

can engage with the community through events to help attract neighborhood customers who enjoy

a relaxed environment to socialize or work remotely. By targeting these groups, the coffee kiosk

will establish a loyal customer base and drive consistent sales, ultimately contributing to the

success of the business.

Competition and Competitive Advantage

The competitive landscape is characterized by a mix of established coffee chains,

independent cafes, and a growing number of mobile kiosks. This presents challenges as well as

opportunities for new entrants looking to curve out a niche in the market. Understanding the

competitive landscape will enable the business to thrive and develop a competitive advantage that

differentiates our business from others. First, we will seek a location with high traffic such as

business districts, college campuses, and event venues to significantly influence customer

volume. This will require the team to conduct thorough market research to identify prime

locations. Additionally, we will source high quality products, offer unique blends, and provide

exceptional customer service to set the kiosk apart. For example, a signature drink or speciality
 5

item will reflect the brand’s personality and appeal to the target market. Additionally, we will

engage with local suppliers to enhance the product offerings and foster goodwill within the

community. A memorable brand identity, including a catchy name, logo, and inviting kiosk

design will attract customers and create a loyal following. A strong social media presence and

engaging marketing strategies will further amplify our visibility and connect with our audience.

Another key factor is striking a balance between competitive pricing, value, and quality. This will

position the kiosk favorably in the market. Offering loyalty programs, discounts, or bundled deals

will incentive repeat customers and increase sales. Lastly, being updated on industry trends and

customer preferences is vital. This means shifting towards sustainability, providing health

conscious options, and innovative beverages. This will help the business adapt accordingly

ensuring the kiosk remains relevant and appealing to the target demography. These elements will

help the business differentiate itself from competitors and build a successful enterprise in the

dynamic coffee market.

MARKETING AND ADVERTISING

The strategic and tactical marketing approaches include interactive tasting events,

engaging social media content, interactive tasting, and narrative storytelling. The marketing

organization will develop campaign strategies and objectives, book venues, develop social media

content, and develop loyalty programs. We launch the social media campaign and begin posting

engaging content, introduce limited edition flavors, and launch loyalty programs. By the end of

the campaign, the company should have influenced the attitudes and behavior of coffee and juice

consumers in the area.

Engaging Social Media Content

because social media platforms are the best way for firms and consumers to interact. Facebook is

the most popular social media site, however, Instagram is more popular among younger

generations. The rationale for prioritizing social media content includes its ability to connect
 6

firms and consumers, transform interactions, and better management of customer relationships.

The three objectives of social marketing are informative, persuasive, and reminder advertising.

Informative advertising is to tell the market about a new product and provide information about

the menu, pricing, and flavor options. Persuasion is meant to build brand preference, encourage

a switch to the brand, and change customer perception of product attributes. Lastly, the content

will remind the consumer to maintain a customer base. Narrative ads are preferred over non-

narrative ads because they relate to emotive responses, credibility, and hedonic value. Viewers

feel more emotionally involved in narrative ads because they are engaged in a story with

characters and situations producing greater emotive responses. Additionally, viewers find more

pleasure and entertainment in narrative ads because they contain hedonic elements which

capture their attention. Lastly, narrative ads have more credibility because viewers are less likely

to engage in critical thinking which leads to the formation of counter-arguments. In general,

based on the aforementioned arguments, this campaign develops a narrative ad to influence

consumer behavior and attitude towards non-dairy chocolate.

Interactive Tasting

Aside from social media marketing, the campaign will also include a fun experience for

the consumer where they get to sample the company’s products. This type of experiential

marketing uses an experience to connect with consumers and ensure they learn more about the

brand and what it has to offer. The main aim of interactive tasting is to change how consumers

experience the brand. Brand experience is sensations, feelings, cognitions, and behavioral

responses evoked by brand-related stimuli. The experience is demonstrated by changes in

consumer habits such as searching for a product when shopping. Through interactive tasting, the

type of experience that occurs is a product and consumption experience. The former occurs

when the consumers interact with a product, examine, and evaluate it while the consumer

experience occurs when individuals consume the product. Through interactive tasting the

consumer will be in direct contact with our products, have the opportunity to consume them, and
 7

ask questions about the product.

BUSINESS OPERATIONS AND OPERATING PLAN

Business operations will begin 1 to 2 hours before opening. The brewing equipment is

turned on and allowed to reach optimum temperature. Espresso shots are pulled and tasted to

ensure proper calibration (grind size, dose, yield, and time). Milk and dairy alternatives are

restocked in fridges. Pastries and pre-packaged food items are arranged in display cases. Coffee

beans are checked and hoppers are filled. Cups, lids, sleeves, and stirrers are replenished at the

self-service station and behind the counter. All surfaces, equipment, and customer areas are

cleaned and sanitized. Floors are swept and mopped. The cash register is prepared with the

correct amount of change. Ensure the fixed menu board is clean, accurate, and clearly visible.

Once the kiosk is opened, customers are welcomed as they arrive, they are given a grab-and-go

model and fixed menu. The beverages are prepared rapidly. For espresso-based drinks, shots are

pulled, milk is steamed and poured with precision. For brewed coffee, fresh batches of drip coffee

are brewed as needed to maintain quality and minimize waste. Pre-packaged food items are

quickly handed over. Transactions are processed efficiently accepting cash, card, and mobile

payments. As the rush subsides in the afternoon, baristas take this time to restock ingredients,

cups, and other supplies that were depleted. Wiping down counters, tidying the station, and spot-

cleaning spills also takes place at this time. The espresso machine is briefly cleaned, wiping down

its grinders. Depending on demand, more brewed coffee is prepared. As closing time approaches,

less brewed coffee is made to minimize waste. The barista begins deeper cleaning tasks that can

be done while still open. Closing procedures begin 30 to 60 minutes after the last customer. The

espresso machine is thoroughly cleaned, grinders are emptied and wiped down, and brewers are

cleaned. All counters, display cases, and customer areas are wiped down and sanitized. Floors are

swept and mopped. The owner also counts the remaining stock for the next day’s ordering, the

cash in the register, reconciling it with reports, and locks doors and windows.
 8

EQUIPMENT AND SUPPLIES

Juice Extractor

A juice extractor machine cuts and spins quickly to separate juice from the skin, seeds, or

pulp. The reamer is a juice extractor that squeezes lemos, lime, grapefruit, and other fruits. The

user presses and turns the fruit and when the fruit packaging is finished, the ridged center

automatically turns.
 9

Coffee Machine

This bean-to-cup coffee machine is designed for commercial use and can brew up to 60

cups per day, making it ideal for offices, retail spaces, lounges, and co-working areas. It features

a modern, refreshed design with a capacitive keyboard and display for easy operation. The

machine includes a Saeco removable brewing unit with a fixed chamber, an onboard doser, and

durable steel conical burrs. It offers high performance, especially in the milk version with a

double circuit system. Key specs include a 2.5L water tank, 600g coffee bean capacity, 2L drip

tray, and space for 30 used coffee cakes. Additional features include an adjustable dispenser

height and a hot water wand. The dimensions are 280 x 435 x 481 mm (W x H x D).
 10

Refrigirator

The Hisense FC27DD Chest Freezer offers a generous 201-liter capacity, making it ideal

for storing bulk food items, pre-cooked meals, and seasonal produce. It is energy-efficient,

helping reduce electricity costs while maintaining strong freezing performance. The adjustable

temperature control allows you to customize settings for different food types, and its durable

build ensures long-term reliability. A removable storage basket makes organizing and accessing

frequently used items easy. Despite its power, the freezer operates quietly, making it suitable for

various spaces in the home. Compact yet spacious, the Hisense FC27DD is a versatile and

dependable freezer for any household.

Display Case

This generic acrylic display case effectively protects collectibles from dust, keeping them

clean and well-preserved. Its stackable design allows for impressive multi-unit displays, and it

features an easy, tool-free assembly process with perfectly fitting, smooth edges. This versatile

case is ideal for showcasing snacks and food item menus, offering a clear view of your collection.
 12

Cash Register

The POS cash register offers comprehensive control over operations, revenue, and

expenses. Key features include a touch billing screen for quick orders, multi-payment modes

(Cash, M-PESA, Credit Card), and detailed cashier sales reports with pay mode breakdowns. It

provides real-time stock reports, waiter total reports, and capabilities for happy hour pricing and

flexible discount provisions. The system supports multi-cashiering and multi-sale points,

allowing billing from various locations, and includes item description customization. It integrates

with KRA Fiscal and Thermal Printers for certified receipts, offers portion control, and enables

on-demand cashier summary retrieval and periodic sales reports for item performance and

revenue analysis. Additionally, it tracks voided entries and ensures security through robust access

right controls. It ensures robust security and control by restricting access to functionalities based

on user roles, offering distinct access rights for roles such as waiters, cashiers, supervisors,

managers, and owners. Access is securely managed through password, fingerprint, or magnetic

staff ID card authentication.

FINANCIAL FORECAST AND EXPENSES

LEGAL REQUIREMENTS/HEALTH AND SAFETY REGULATIONS