INVESTOR OPPORTUNITY
THE BIG
BUZZ
Fourth Coffee’s mission is to
become a recognized leader
in our target market for
providing outstanding
premium bagged coffees
and specialty coffee
beverages.
INDUSTRY OUTLOOK
20,000 $10B 85% $50,000 10%
Revenue
Shops in the In combined Average gross In revenue
increase per
USA revenue margin per worker
year
SUCCESS
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THE MARKET
CUSTOMER SEGMENTATION
21% 36% 29% 7% 7%
Local residents Tourists Passing Students Local
travelers businesses
CUSTOMERS GROWTH YR1 YR2 YR3
Local residents 2% $15,000 $15,300 $15,606
Tourist 5% $25,000 $26,250 $27,563
Passing travelers 5% $20,000 $21,000 $22,050
Students 1% $5,000 $5,050 $5,101
Local businesses 1% $5,000 $5,050 $5,101
TOTAL 2.8% $70,000 $72,650 $75,420
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REVENUE MODEL
Gourmet coffee beans
Signature coffee beverages
100% fair-trade guaranteed
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100% fair trade
Gourmet coffee beans guaranteed
o 35 to 40 different varieties o Direct sale of food products
o Differing flavors, brew strengths, o Locally sourced
and from different regions
o Reputable and recognizable
o Specialized by the pound vendor and/or chefs
o Ranging $4.00 to $40.00 per pound o May include sandwiches, bagels,
burritos, pastries, and cookies
o Average $15.00 per pound
o Customers can choose beans or
freshly ground
Signature coffee
beverages
o Variety of coffee beverages
o Three different size cups
o Priced from $2.50 for a 12-ounce
drip coffee to $5.75 for a 20-ounce
latte
o Provides a steady and reliable
source of income
o Highly predicable and high margin
SALES FORECAST
3 YEAR SALES SUMMARY YR1 YR2 YR3
TOTAL SALES $702,000 $772,200 $849,420
TOTAL COGS $212,000 $222,600 $233,730
NET PROFIT $490,000 $549,600 $615,690
ANNUAL SALES & GROSS PROFIT
$900,000
$800,000
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$0
YR1 YR2 YR3
SALES COGS PROFIT
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KEY TIMELINE GOALS
2/1/XX 5/12/XX 8/20/XX 11/28/XX
Business / Marketing Plan
Secure funding
Build Out
Grand opening
Achieve 700+ daily customers
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MANAGER
Remy Morris
THE TEAM
OWNER
Sonu Jain
KEY EMPLOYEE
Noa Vidal
BUSINESS RATIOS
FINANCIAL RATIOS YR1 YR2 YR3
Profit margin 12.07% 14.95% 17.66%
Assets to liabilities 2.83 4.24 7.44
Equity to liabilities 1.83 3.24 6.44
Assets to equity 1.55 1.31 1.16
LIQUIDITY RATIOS YR1 YR2 YR3
Acid test 2.34 3.66 6.67
Cash to assets 0.83 0.86 0.90
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BUSINESS RATIOS
Success Ratios
20% 7
6
16%
5
12%
4
3
8%
2
4%
1
0% 0
YR1 YR2 YR3
PROFIT MARGIN ACID TEST
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MAJOR COMPETITORS
Rocket Boy Coffee – 1 mile
Started the specialty coffee chain phenomena in America in 1982.
99% are company owned. Revenues exceeded $6 billion in 2002.
Average store gross revenue is $805,000. Now in 30 countries.
Same store sales increased by 10% in 2002.
Hyperwarp Coffee – 2 miles
Second largest all company-owned chains. Founded in 1992 in
Minneapolis.
Express Espresso – 400 feet
The third largest company-owned chain. Another Seattle-born
company. The only coffeehouse chain that has not experienced
excellent growth every year; business.com cites poor management
as the reason. New management seems to be leading a
turnaround.
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THANK YOU
CONTACT US AT
Sonu Jain
[email protected]
405-555-0145
