Cafe Proposal Template

Thank you very much for the meeting yesterday. We are extremely excited to start our XYZ Cafe business on Main Boulevard, Tigard and looking forward to your company financially assisting us to set it up. We have prepared this proposal for you, with all the details. We would like your company to have a look at the entire opportunity and share your assistance to support our business idea.

Let us know if you have any reservations or queries.

Regards,

Mathew Morison

XYZ Cafe Proposal

Business Summary

We would like to open a Cafe on the Main Boulevard in Tigard, Oregon. It will be a small counter-service cafe and the customers will be able to place an order and pick it up themselves for taking away or eating in. There will be a few seats and stools available. The products and ingredients used during food preparation will be the finest and top quality. As ABC is a top Venture capital firm and you support talented entrepreneurs, we would like you to provide us the necessary finances to start up our cafe business.

Products

We plan to serve the following products in our cafe:

Baked Goods

Cakes
Pastries
Bread
Assorted Patties

Hot and Cold beverages

Soft drinks
Coffee
Tea
Shakes

Pasta Dishes
Salads

Business Summary

Hours of operation:

Monday -Sunday: 9:00am -11:00pm

Location:

Main Boulevard

Items sold:

Sweet and Savory, Beverages

Workers:

3 workers will be hired

Objective

Our main objective is to set up a cafe for the ease and convenience of our community people. Also,

To provide freshly prepared comfort food
To be the best café in the community
Create such an outlet that provides our consumers with a place to socialize and share their joyous occasions.
Gain profitability within the first couple of years and start strategizing about expanding the business.

Location

The main Boulevard is a very lively and happening place. There are a few offices, and universities within a walking distance. Shop number 12 is on the ground floor of XYZ Plaza. It is a 5,500 square feet shop and currently, there is a working kitchen in the shop, but a little remodeling needs to be done to make it look like a cafe. We have acquired a 1-year lease plan for this shop. There are usually a lot of activities being held at this place, attracting hundreds of people. The most wanted and demanded thing at a place, with such a footfall, is food. We think that opening up a Café at this spot will be a great opportunity for our business.

Food Preparation

All the items will be baked and prepared in the Cafe’s kitchen, on-site. There will be a main Head Chef for preparing the pastries, bread and cakes and an assistant for helping. The assistant will also be responsible for the inventory and purchasing supplies.

Market Analysis

Cafes are becoming more and more popular because they are a great place to socialize. They are a nice spot to pass time and hang out with friends and family or just to do some work-related activity. Location plays a very important part in the success of a Café. Our market research shows that the students and people working in nearby offices will be the most likely café customers. XYZ will strive to build loyal customers by providing them great taste and a friendly environment.

Competitive Analysis

XYZ cafe’s direct competitors will be the 3 coffee bars located on the other side of Main Boulevard. Café A only serves Coffee and Hot & Cold Beverages. Café B and C serve bakery items along with Coffee and Drinks but their prices are very high. XYZ will position itself as an authentic and affordable café offering great taste in a relaxed environment.

Marketing

We plan to advertise in all mediums, print, Internet, Social Media, and Radio. We will print advertisements in all newspapers and magazines. We will place flyers at the university and office reception areas. Also, we will place ad banners on the internet to make people aware of our brand. Also,

Website: Create a website about the XYZ Cafe. Mention all the products that are being sold and all the running promotions.
Social media pages: Create social media pages and advertise the products.
Newspaper: Print ads in all the local community newspapers.

Start-up Cost

We would like ABC to initially grant us a loan of $50,000. Estimated start-up expense details are provided below:

Names	Cost
Legal paperwork	$1,000
Marketing	$1,000
Café Renovation	$2,000
Café rent (1-year advance)	$5,000
Insurance	$5,000
facilities	$10,000
Equipment	$10,000
Stationary /Menus/Flyers	$10,000
Crockery	$10,000
Inventory	$20,000
Cash	$5,000
Miscellaneous	$1,000
Total	$78,000

Legal paperwork includes getting approval from the concerned authorities, obtaining licenses and permits. Equipment includes furniture, shelves, electronic devices, CCTV cameras, etc.

Running Cost

Expenses for each month will be the following:

Names	Cost/month	Cost /year
Employee Salaries	$500	$12,000
Utility Bills	$500	$6,000
Total	$1,500	$18,000

Loan Requirement

In order to set up this Cafe and sustain it, we will be needing a sum of approximately $100,000. We are 2 partners at the moment and we are financially capable to put in half of the amount and seek your esteemed firm to lend us $50,000, for a period of 2 years.

Sales Forecasts

This café will surely attract a large number of consumers and we are very optimistic and certain that we will break even within the first couple of years and start generating profit by the end of the third year. Below are the sales forecast for the fiscal years, based on information collected in the field.

Items	Forecast Sales
Baked Goods	$35,000
Pasta	$35,000
Salads	$25,000
Drinks	$5,000

First 6 months: $80,000

First fiscal year: $110,000

Second fiscal year: $250,000

Approval

We would like to seek your approval to proceed with the necessary arrangements. After your approval, we will initiate the process and we must work on the Terms and Conditions for the future.