Kohi Cafe

"Where Every Sip is Purrfection"

Team Members: Fahd & Dorothy

5-Year Business Growth Analysis

Our Unique Concept

Key Features:

🔄 Rotating AM/PM/Specialty Menus
🥤 Signature Specialty Drinks
🧁 Fresh In-House Bakery
🌱 Sustainable Cup Materials
🎪 Pop-up Stalls Internationally
👕 Branded Merchandise

Experience Features:

📶 Free High-Speed WiFi
💼 Hourly Work Pods/Rooms
🎫 Monthly Membership (3 free drinks/day)
💳 Digital Loyalty Card System
🎨 Rotating Local Art Wall
🛠️ "Build Your Own" Drink Station

Growth Strategy & Market Position

Growth Approach

Mixed Strategy: Internal growth with external collaborations

Start small-scale in Central London
Expand through pop-up stalls internationally
Strategic partnerships with local businesses

Market Position

Niche Market: Premium experience cafe

Target: Young professionals & students
Focus: Aesthetics + functionality
Differentiation: Cat-themed experience

Industry Sector

Food & Beverage: Specialty coffee segment

Premium coffee & tea market
Co-working space hybrid model
Experience-driven hospitality

Product Portfolio & Marketing Mix (4Ps)

🍵 Product

Premium coffee & tea blends
Fresh bakery items & pastries
Signature specialty drinks
Work space rental services
Branded merchandise
Membership packages

💰 Price

Premium pricing strategy
Work pods: £5-8/hour
Membership: £25-35/month
Coffee: £3-6 range
Value through experience

📍 Place

Central London flagship
High foot-traffic areas
Pop-up locations globally
University partnerships
Online merchandise store

📱 Promotion

Social media campaigns
Influencer partnerships
Loyalty program rewards
Local art collaborations
University student discounts

Economies & Diseconomies of Scale

✅ Economies of Scale

Purchasing Power

Bulk buying coffee beans, sustainable cups, and bakery ingredients

Marketing Efficiency

Shared marketing costs across multiple locations

Technology Systems

Centralized POS, loyalty program, and app development

Brand Recognition

Stronger brand presence with multiple touchpoints

⚠️ Diseconomies of Scale

Management Complexity

Difficulty coordinating multiple international locations

Quality Control

Maintaining consistent experience across all locations

Cultural Adaptation

Menu and service adaptation for different markets

Communication Barriers

Language and time zone challenges for global operations

Staffing Strategy & Organization

Staffing Approach: Asset-Based

Employees as valuable assets requiring investment in training and development
Focus on long-term retention and career growth
Comprehensive onboarding and skill development programs
Regular performance reviews and feedback sessions

Staff Requirements (5-Year Plan)

Year 1-2

8-12 Baristas
2-3 Shift Managers
1 Store Manager
2 Part-time Cleaners

Year 3-5

25-35 Baristas (multiple locations)
6-8 Regional Managers
3-4 Area Managers
Marketing Team (4-5 people)
Operations Team (3-4 people)

Leadership Style: Democratic

Employee input in menu development
Collaborative decision-making
Regular team feedback sessions
Empowerment of shift leaders

Incentives & Rewards

Free membership for all staff
Performance-based cash bonuses
Career development opportunities
Flexible working arrangements
Staff discount on merchandise

Financial Projections & Break-Even Analysis

5-Year Sales Forecast

£0K

Year 1

£0K

Year 2

£0K

Year 3

£0K

Year 4

£0K

Year 5

Break-Even Analysis

Year 2 Break-Even

Monthly: £18,500

Daily: £620

~155 customers/day

Year 5 Break-Even

Monthly: £42,000

Daily: £1,400

~280 customers/day

Investment Costs

Initial Setup: £85,000
Equipment & Furniture: £45,000
First Year Marketing: £15,000
Working Capital: £25,000
Pop-up Expansion: £30,000/location

Opportunity Cost Analysis

Alternative Investment Options:

Property Investment: 6-8% annual returns with lower risk
Stock Market Index Funds: 7-10% historical returns
Tech Startup Investment: 15-25% potential returns but higher risk
Franchise Business: 12-18% returns with proven model

Our Choice: Cafe expansion offers 20-30% projected returns plus personal fulfillment and creative control, justifying the higher risk.

Operations & Supply Chain Strategy

Production Method

Made-to-Order: Fresh coffee & food prepared upon customer request
Batch Production: Bakery items prepared in scheduled batches throughout the day
Just-in-Time: Inventory management system to minimize waste and ensure freshness
Quality Control: Standardized recipes and preparation procedures
Equipment Standards: Professional-grade espresso machines and brewing equipment
Temperature Control: Precise temperature monitoring for optimal extraction
Timing Protocols: Strict timing standards for each beverage type
Waste Reduction: Sustainable practices to minimize food and packaging waste

Supply Chain (5-Year Plan)

Current (Years 1-2):

Local London suppliers for fresh ingredients
Direct relationships with specialty coffee roasters
Weekly delivery schedule for perishables
Monthly bulk orders for non-perishables
Local bakery partnerships for specialty items

Future (Years 3-5):

Regional distribution centers in major cities
International supplier network for global expansion
Centralized procurement system with bulk purchasing power
Automated inventory management systems
Sustainable packaging supplier partnerships
Direct trade relationships with coffee farms

Distribution Strategy

Current:

Single flagship location in Central London
Direct customer service and in-store experience
Local delivery partnerships with third-party services
Limited catering services for local businesses

Future:

Multi-location network across major UK cities
International pop-up stall program
Online merchandise shipping worldwide
Franchise opportunities in select markets
Mobile coffee cart services
Corporate catering expansion
University campus partnerships

Quality Management

Training Programs: Comprehensive barista training for consistent preparation standards
Regular Audits: Weekly mystery customer visits and quality assessments
Customer Feedback: Digital review system and real-time feedback collection
Supplier Standards: Strict quality certifications and regular supplier evaluations
Equipment Maintenance: Daily cleaning protocols and preventive maintenance schedules
Health & Safety: Regular health inspections and safety protocol training
Continuous Improvement: Monthly quality review meetings and process optimization
Brand Standards: Consistent visual presentation and customer experience across all locations

Market Research & Demand Analysis

Research Approach: Product-Oriented

Focus on perfecting our unique cat-themed cafe experience and expanding based on product strength

Target Markets

Primary: Young Professionals (25-35)

Need flexible workspace
Value Instagram-worthy experiences
Willing to pay premium for quality

Secondary: University Students (18-25)

Seek study-friendly environments
Price-conscious but experience-driven
Heavy social media users

Tertiary: Cat Enthusiasts (All Ages)

Drawn to cat-themed experiences
Likely to purchase merchandise
Strong brand loyalty potential

Factors Affecting Demand

Positive Factors

Growing remote work trend
Increased coffee consumption
Social media culture
Pet-friendly business trend
Experience economy growth

Challenging Factors

Economic uncertainty
High London rent costs
Seasonal demand variations
Competition from chains
Changing work patterns

Conclusion & Future Outlook

Key Strengths of Our Strategy

🎯 Unique Positioning: Cat-themed experience differentiates from competitors
📈 Scalable Model: Pop-up strategy allows international expansion
💰 Multiple Revenue Streams: Coffee, food, workspace, merchandise, memberships
🌱 Sustainable Approach: Eco-friendly materials appeal to conscious consumers
👥 Community Focus: Art wall and local partnerships build loyalty

5-Year Success Timeline

Year 1

Launch flagship store

Year 2

Break-even achieved

Year 3

First international pop-up

Year 5

£850K revenue target

Kohi: Where Business Meets Passion

"Building a sustainable, scalable business that brings joy to every customer interaction while creating meaningful employment and community connections."