The Affable Bean Marketing Plan

TheAffable Bean Marketing Plan

InstitutionAffiliation

  1. Executive Summary

1.1The State of the Industry

Thecoffeehouse market in the US has generated over $32 billion inrevenue in 2016 (CoffeehouseFacts, 2016). Coffeehouses are establishments that prepare tea,coffee, and other hot beverages. These ventures can also servealcoholic drinks.

1.2Overview of Product

TheAffable Bean is an exclusive local coffee bar that offers itsclientele a cozy, real place where singles, families and evenbusinesspersons can meet. The Affable Bean is a coffee bar with aunique structural layout that offers a space that is responsive tothe wants of different groups of people. The bar has three uniqueservices.

1.2.1The Target Market

Thefirst service is called the Affable Conversation System. This systemallows singles/couples to sit and feel relaxed in an environment thatallows them to converse and reflect on each other’s thoughts. Thesecond service is called the Affable Family System. This service isdesigned for families that are interested in meeting and delightingin each other’s company. Families get a space where they can sitand have a good conversation. The Affable Business System is the lastservice. This service offers businesspersons a place where they canhold private meetings in a welcoming environment.

1.3The Marketing Strategy

Differentmarketing methods will be used to reach the target market: socialmedia advertisements, the use of agents to reel in prospectiveclients, mainstream media advertising, E-Marketing, direct mail, andsales promotions.

1.4Financial Plans

Thecompany targets to reach profitability after its fourth year ofoperation, reduce costs by enhancing efficiency, and realize adouble-digit growth rate in each successive year.

1.5Risk Assessment

Recentyears have observed a gradual increase in competition amongcoffeehouses and restaurants in the limited service category(Coffeehouse Facts, 2016).

2.0Product Description

TheAffable Bean will serve coffee that is brewed to perfection. Coffeecustomers usually demand different varieties of coffee hence, TheAffable Coffee Bean’s pioneers have taken the time to develop anin-depth research of the various ways that coffee can be served.These varieties extend beyond the United States. Thus, norestrictions will be put on the types of coffee that will bepurchased from the market. In fact, relationships with the bestcoffee suppliers in Africa, Turkey, Brazil, and Europe will regularlybe developedregularly. The Affable Bean intends to offer itsclientele a number of products and services as highlighted below.

Coffeebeverages will be delivered to the client base in various forms. TheCoffee bar will offer Mocha, Latte, Chai, Cappuccino, Iced Coffee,Hot Chocolate, Tea, Coffee, and Americano., alcoholic beverages, andsnacks.

Also,The Affable Bean will be an exclusive local coffee house that offersits clientele a cozy, real place where singles, families and evenbusinesspersons can meet. The Affable Bean will have a uniquestructural layout that will provide space that satisfies the needs ofdifferent groups of people. The bar will have three unique services.

Thefirst service will be the Affable Conversation System. Alcoholicbeverages, in such occasions, will be offered because they reduceinhibition, thus, encouraging two people to interact more freely.Also, alcoholic drinks, especially beer, generate high profits. Thissystem will allow singles to sit and feel relaxed in an environmentthat allows them to converse and reflect on each other’s thoughts.The waitpersons in this area will be trained to accommodate the needsand preferences of such customers. The spaces will also be created ina manner that gives two people the privacy to talk with each other inprivacy and with minimal intrusion.

Thesecond service is called the Affable Family System. Coffee, tea, andsnacks will be offered (predominantly) in this section since mostfamilies enjoy relaxing in environments that promote good morals.This service will be designed for families that are interested inmeeting and delighting in each other’s company. Families will get aspace where they can sit and have a good conversation. The areas inthis section of the coffee bar will be a bit bigger and with thecapacity to accommodate groups of up to six members. The attendantsdeployed in this area will be very presentable and accommodating tofamily members of all age-groups. Preference will be given to serverswho appear warm and mature.

TheAffable Business System is the last service. Coffee, tea, and snackswill also be offered (predominantly) because they stimulate thenervous system thus, the businesspersons will be energized to holdbusiness conversations for longer periods without feeling fatigued.This service offers entrepreneurs a place where they can hold privatemeetings in a welcoming environment. This pace will have the biggestspaces and state of the art facilities. Infrastructure such asvirtual conference systems will be availed to clients who use thisservice. The sections in this area will accommodate up to 30 members.The customers will also have the option of having an attendant servethem coffee and serve them as they hold their meeting.

  1. SWOT Analysis

Thereason behind opening The Affable Bean is to develop a test run thatwill last between 3 and five years. The test will help the investorsdetermine whether they will inject more funds into the business orexpand and sell the franchise. Thus, a SWOT Analysis was conductedbring everything into perspective.

    1. Strengths

TheAffable Bean will have the advantage of location the provision ofunique services, coffee and alcoholic beverage varieties and thesalient ambiance of the coffee bar.

    1. Weaknesses

TheAffable Coffee is a start-up in an industry where large andestablished market players exist. Also, since the initial plan is tostart will one outlet, the company might experience problems when theneed to grow the business comes to being.

    1. Opportunities

TheAffable Bean will be located in Midtown Manhattan, New York’slargest Central Business District. Thus, many firms and families arefound in this region (Airbnb,2016). The before-mentioned means The Affable Bean has unlimitedopportunities to tap into. The primary concern of this entity will beto maintain the quality of its products and services to attract andretain repeat customers.

    1. Threats

Themain threat to The Affable Bean is competition from similar venturesand restaurants in the limited-service category. Reason beingrestaurants in the limited-service category offer baked products,sandwiches, salads, in addition to other products(CoffeehouseFacts, 2016). Also, more established coffee companies like Starbuckshold a large client base and a somewhat well-grounded resource base.

    1. Internal and External Assessment

Consideringthe arrangement developed on the ground, The Affable Bean will be theonly coffee bar of its kind in the entire Midtown Manhattan region.There are many coffee shops in the Manhattan neighborhood, but noneof them provide alcoholic beverages or the type of services that TheAffable Bean intends to produce (Yelp,2016).

Consideringthe available statistics (Point2homes,2016), the policies set by the area’s political administration areconducive for business. The exchange rates, interest rates, andconsumer confidence in enterprises that offer good value for money isalso relatively positive. The majority of the population enjoys thefresh experiences that new ventures bring into the market, and thehigh population of young people adds to this view of life. The use ofsocial media platforms is also very high, in particular by theyounger populace.

TheAffable Bean will be a premium coffee bar, which is why twoconsultants from two different companies will be requested to advisethe pioneers of the business throughout the planning and startupperiod. The consultants have a combined experience of 40 years inboth the coffee retail business and catering and hospitality. Theyhave also helped other entrepreneurs launch successful businessentities across the main cities and towns in the US.

Sofar, these consultants have successfully delivered in the main areasand will work together with the pioneers of The Affable Bean. Theywill help these individuals on issues such as developing marketresearch, evaluating new business opportunities, and customersatisfaction survey. The premise behind putting all these factorsinto perspective is to ensure the Affable Bean becomes one of thegiants of the coffee industry.

  1. Target Market

TheAffable Bean’s target market can be divided into three categories:singles/couples, families, and businesspersons. The singles/coupleswill enjoy a service called the Affable Conversation System. Thisgroup will be offered alcoholic beverages. Reason being, they reduceinhibition thus, encouraging two people to interact more freely.Also, alcoholic beverages, especially beer, generate high profits.This system will allow singles to sit and feel relaxed in anenvironment that allows them to converse and reflect on each other’sthoughts. The waitpersons in this area will be trained to accommodatethe needs and preferences of such customers. The spaces will also becreated in a manner that gives two people the privacy to talk witheach other in privacy and with minimal intrusion.

Table1.1 Marital Statuses in the Midtown Manhattan Region

Never Married

171,413

Married

79,888

Separated

13,730

Widowed

4,771

Divorced

22,280

Source:Point2Homes

Thesecond service is called the Affable Family System. Families will bethe primary target for this type of service. Coffee, tea, and snackswill be offered (predominantly) in this section since most familiesenjoy relaxing in environments that promote good morals. This servicewill be designed for families that are interested in meeting anddelighting in each other`s company. Families will get a space wherethey can sit and have a good conversation. The areas in this sectionof the coffee bar will be a bit bigger and with the capacity toaccommodate groups of up to six members. The attendants deployed inthis area will be very presentable and accommodating to familymembers of all age-groups. Preference will be given to servers whoappear warm and mature.

Table1.2 Households in the&nbspMidtown Manhattan Region

Total Households

231,999

Family Households

63,473

Nonfamily Households

168,527

Families With Children

21,956

Households Without Children

210,048

Average People Per Household

1.56

Source:Point2Homes

TheAffable Business System is the last service. Businesspersons will bethe main targets for this service. Coffee, tea, and snacks will alsobe offered (predominantly) because they stimulate the nervous systemthus, the businesspersons will be energized to hold businessconversations for longer periods without feeling fatigued. Thisservice offers merchants a place where they can hold private meetingsin a welcoming environment. This pace will have the biggest spacesand state of the art facilities. Infrastructure such as virtualconference systems will be availed to clients who use this service.The sections in this area will accommodate up to 30 members. Thecustomers will also have the option of having an attendant serve themcoffee and serve them as they hold their meeting.

Table1.3 Occupations in the Midtown Manhattan Region

White Collar

86,871

Blue Collar

35,404

Source:Point2Homes

Inaddition to the above, issues such as the level of education,household and average income and age demographics will be considered.Education is important because the majority of people can onlyinteract with individuals within their level of education forextended periods (Lawson, 2016). Thus, populations, where themajority of individuals have similar educational attainment, areideal for ventures similar to The Affable Bean.

Table1.4 Education Statistics in the Midtown Manhattan Region

No High School

13,443

Some High School

11,344

Some College

31,068

Associate Degree

10,095

Bachelor’s Degree

118,096

Graduate Degree

95,400

Source:Point2Homes

Thelevel of income in a region is also critical to its growth. Theprimary income group for The Affable Bean is individuals who earnincomes above $40,000 annually. The main reason for targeting thisincome group is its potential to become return customers and the needto replenish energy continually. Individuals under this categoryconstantly think about their work thus, they will need coffee tostimulate their energy levels or to hold conversations for a longerperiod without feeling fatigued. Also, individuals in this groupcategory prefer premium services and high-quality products, which aresome of the core underpinnings of The Affable Bean.

Table1.5 Income Distributions by Age

Median Income Under 25

$60,222

Median Income 25-44

$95,744

Median Income 45-64

$89,846

Median Income Over 65

$56,087

Source:Point2Homes

Table1.6Householdand Average Income Distribution in the Midtown Manhattan Region

Average Household Income

$139,796

Median Household Income

$84,864

Percent Increase/Decrease in Income Since 2000

45%

Percent Increase/Decrease in Income Since 2010

7%

Average Household Net Worth

$1,102,417

Median Home Sale Price

$979,529

Sales Tax Rate

8.875%

Average Household Total Expenditure

$89,626

Source:Point2Homes

Nonetheless,as much as the Midtown Manhattan area is an ideal area for doingbusiness, a few risks may compromise the proper functioning of TheAffable Bean. To begin with, the total crime risk in the region israted at 130%, personal crime risk at 202%, robbery risk at 320%,automotive risk at 113%, and murder risk at 148%. There are alsorisks such as property crime risks (108%), assault risks (108%), andburglary risks (74%). However, by putting in place proper measures,such issues can be averted to a greater degree.

  1. Competitive Analysis

Thereis a notable dissimilarity in the face of the coffee scene in NewYork City (RefineryTimes, 2016). The majority of the masses now place high value toartfully crafted and highly curated coffee. The residents of New YorkCity are now considered to have taste preferences that match those ofthe individuals living in San Francisco, Portland, and Seattle. Infact, the primary producers from each of these cities have openedlocations in the Midtown Manhattan region.

Thenew coffee shops delineate themselves from the competition byfocusing on care, precision, attention to detail, and variety(Refinery Times, 2016). Particular types of coffee beans areconsidered high-end. Coffee shops now reveal the farms where theysource their beans to their clientele, on their online profiles.Also, these ventures ensure that precision is included into theproduction of coffee. Thus, Espresso is usually drawn from a manualmachine and the milk steamed by hand. The excellent preparation stylecan be Vacuum Pot, Chemex, Kyoto, or Clever. Each of these stylesgives the coffee a distinct taste.

Thus,coffee preparation is no longer a simple task. The following venturesare expected to pose a significant competition to The Affable Bean:

    1. Culture Espresso

Thisventure was once the only coffee house in the northern areas of theManhattan region (Refinery Times, 2016). Its client base is, thus,relatively stable, after seven years in operation. The &quottransportive”atmosphere in this coffee house is its greatest advantage, as opposedto the coffee it produces. The venture has two locations in theMidtown Manhattan region.

TheAffable Bean will have an advantage over this coffee house due to itscapacity to generate high-quality coffee and offer differentservices. Since Culture Espresso only has an advantage over itscompetitors in the type of ambiance of offers its customers, TheAffable Bean will have an upper hand due to its capacity to providebetter quality coffee and services such as the Affable ConversationSystem, The Affable Family System, and the Affable Business System.

    1. Gregory’s Coffee

Gregory`sCoffee is also famous amongst the masses in Midtown Manhattan(Refinery Times, 2016). Gregory’s coffee is pioneered by a “localhero” in the Midtown Manhattan region. The individual has managedto combat giants such as Starbucks. The venture has eight locationsin the Midtown Manhattan area alone. The coffee in this coffee houseis very high-quality.

Comparedto this venture, The Affable Bean will have an advantage due to itsability to offer services that only the high-end restaurants canprovide. For example, The Affable Bean will provide businesspersonsconference facilities, family gathering areas, and romantic getawayspots. These services will be offered in addition to a variety ofhigh-quality coffee options.

    1. Upicnic

Upicnicis more of an indirect competitor. This venture specializes inproviding options for people interested in going out for a picnic(Yelp, 2016). The business offers its clients different types offood, lawn games, live entertainment, and picnic essentials.

Themain advantage that The Affable Bean will have over this venture willbe the ambiance and the high-quality services that customers willenjoy. Waiters will be trained to cater to the different needs ofclients. Services such as availing conference facilities toentrepreneurs, privacy to communicate to singles/couples, and amplespace for families to connect are expected to offer The Affable Beana significant advantage of Upicnic.

  1. Pricing Strategies

Thefirst thing to consider is ensuring that the pricing of items isadequate. The set industry standards, concerning prices, will beconsidered. The findings that accrue from the research will also befactored in. Thus, the ultimate price of all units will not only bedetermined by the prices of similar products in the market but alsothe surrounding population. This strategy will ensure that thecompany is positioned ideally in the market to compete withestablished players in the market.

Also,it is presumed that the prices of The Affable Bean products may belower at first, considering the venture is still young in the market.However, after the confidence of the company`s clientele is won,prices will be adjusted to enable the investment to reach thebreak-even point faster and accrue profits to its pioneers. Discountswill also be factored in to reward loyal customers attractprospective clients.

Inaddition to cuts, a reward system will be put in place to encouragethe customers of The Affable Bean to reel in more customers. Thecompany intends to implement a system that discounts the prices ofcustomers who bring in new clients. This approach will amplify thecompany`s promotion techniques by using the customer as a platformfor endorsing its products. Consequently, more repeat customers willbe created since the quality of goods and services will be very high.

Consideringthe above, the pricing of the goods and services will be made in sucha way that the average person (middle-income individuals) finds thevalue for his money. The Affable Bean will be designed in a way thatencourages its clientele to avail itself whenever it feels that aparticular occasion requires celebration when the need to &quotimpress&quotarises, or when business partners want to discuss critical issuesconcerning the welfare of their business.

Theaverage price of coffee is dependent on its type. Mocha retails at$3.94, Latte at $3.78, Chai at $3.76, Cappuccino at $3.71, IcedCoffee at $2.99, hot chocolate at $2.89, Tea at $2.81, Coffee at$2.7, and Americano at $2.62 (Statista, 2016). In addition, theaverage price of alcoholic beverages in Manhattan is between $5 and$7. Self-catering cans retail at around $1 per unit (Priceoftravel,2016). Also, snacks retail at around $4 to $7.

Takingthe above statistics into consideration, The Affable coffee willbegin by setting its prices slightly lower, but will maintain highstandards in terms of the quality of products and service provision.This approach, coupled with the discount policy and the referralstrategy, will help the company reel in many clients. The prices ofproducts will be as follows:

Table1.7 Table Showing the Prices and Margins of Items at The Affable Bean

Unit

Price

Margin

Mocha

$3.50

$1.53

Latte

$3.40

$1.51

Chai

$3.40

$1.52

Cappuccino

$3.30

$1.445

Iced Coffee

$2.50

$1.005

Hot Chocolate

$2.35

$0.905

Tea

$2.30

$0.895

Coffee

$2.20

$0.85

Americano

$2.10

$0.79

Alcoholic Beverages

$4 – $6

$1.5 – $2.5

Self-catering cans

$0.7

$0.2

Snacks

$3.7 – $6.5

$1.7 – $3

Asreflected in the table, the prices of products at The Affable Beanhave been set considering the competition. At the outset, theintention will be to find a way to penetrate into the market.However, prices will be adjusted at a later date to reflect to allowthe company to sustain its operations and operate competitively.

  1. Channels of Distribution

Usingdifferent channels to reach these groups is an ideal way to realizethe desired end: acquire and retain customers. Thus, a combination ofapproaches will be used.

Thefirst approach will be the use of agents. Agents will be hired towork with The Affable Bean to increase traffic into the coffee bar.These agents will be requested to endorse the services of the companyto potential customers. For example, these agents may recommendservices such as the conference services that The Affable Bean offersto businesses or business persons. The agents that will be selectedwill be required to have adequate experience in their fields, andhave demonstrated sufficient increases in sales in other venturesthat they have worked with in the past.

Thesecond distribution channel will be the formation of strategicpartnerships. The Affable Bean will partner with organizations orgroups that offer services that are dissimilar to it. For example,the pioneers of The Affable Bean have teamed up with a tours andtravel company to endorse The Affable Bean as a popular stop duringvisits to Midtown Manhattan. Such partnerships will be consideredfurther as the company grounds itself in the market. Desirablestrategic partners will be expected to have a broad reach in themarket and have been in service for seven years or more.

Thethird distribution channel is direct sales. This channel ofdistribution will allow The Affable Bean to contact its clientelewithout intermediaries. This channel is ideal because the companywill have greater control over the presentation and pricing of itsproducts. In the process of interaction, feedback from customers willhelp the coffee bar’s administration to determine what is not beingdone right and fix it accordingly.

Finally,the opaque distribution channel will also be considered. This type ofdistribution will be used to serve the low-end market since TheAffable Bean will be a premium service entity. Resellers, coffeeshops that serve the low-end market, will be used to sell the surplusproducts at a reduced fee. The preferred dealers will be expected tobe companies that maintain high hygienic and ethical standards. Also,these entities must have accrued substantial customer confidence.

  1. Marketing Communications

Thetarget market for The Affable Bean will be singles/couples, families,and businesspersons. The Affable Bean’s strategy will be tocommunicate the value of the products and services offer to thetargeted segments. Different strategies are best positioned to reachthese groups, as revealed below.

Tobegin with, the singles/couples category comprises of individualsaged 20 to 45. This group uses the Internet more consistentlycompared to other avenues of communication or interaction with theoutside world (OFFICE FOR NATIONAL STATISTICS, 2016). Thus, theSocial Media is an ideal avenue to interact with this group and reelit, as prospective clients, into The Affable Bean. Through the socialmedia, The Affable Bean will gain a substantial following bydisplaying images of the facilities, services, and products availableto customers. Videos that depict the serenity and ambiance at TheAffable Bean will also be used to attract even more clients. Inaddition, customers will also be allowed to make reservations via thecompany`s website, which will also be advertised via the SocialMedia.

Second,research reveals that the consistency with which a person uses theInternet or the social media declines as he ages (OFFICE FOR NATIONALSTATISTICS, 2016). The older generation is more likely to usemainstream media (Preston, 2016). Thus, The Affable Bean will usethis platform to reach the “families group.” Advertisements willbe made via mainstream media to reach the senior category of thepopulation. Ads that depict the services that will be afforded tofamilies, in addition to the products and services offered at TheAffable Bean, will be shown.

Third,e-marketing, direct mail, and sales promotions will be used to reachthe businesspersons. E-Marketing in the form of SEO will be used tooptimize The Affable Bean online. This strategy will position theventure ideally to businesspersons who have no time to go throughtheir catalog to find enterprises that have the best conferencingfacilities. By keying in particular characters in search engines likeGoogle, the word The Affable Bean will be revealed. Direct mail tosmall and large corporations will also be used to sell theconferencing services that The Affable Bean offers. Lastly, salespromotions through agents will also be used to widen the reach of theventure to enterprises located in Manhattan. The goal here will be toensure that as many corporations know the Affable Bean as possible.

Fourth,focusing on the quality of services will be used to promote thebusiness. Emphasis will be placed on how well services are delivered.Attendants will undergo training on how to handle the different typesof clientele that will visit the Affable Bean. Also, how well thestaff presents itself to the customers will be put intoconsideration. The Affable Bean’s staff will be remunerated fairlyto ensure that they always look presentable and feel motivated toattend to the customers.

Also,the quality of services offered will be exceptional. Since thereferral program will be implemented, the quality of productsdelivered should turn new clients into repeat customers. The qualityof coffee and other products offered at The Affable Bean should be sohigh that clients will want to invite their friends to have a tasteof what the venture has to offer. This approach will amplify themarketing efforts of the venture significantly since the clients willalso be turned into marketing agents for the restaurant.

  1. Budget

Table1.8 Service Capitals

Year 1

Year 2

Year 3

Registration Fee

$1,000

$1,000

$1,000

Legal Expenses

$1,500

$1,500

$1,500

Marketing fees

$4,500

$3,000

$3,000

Consultant Fees

$2,500

$2,000

$1,500

Insurance Coverage

$2,400

$2,400

$2,400

Total

$11,900

$9,900

$9,400

Table1.9 Fixed Assets

Year 1

Year 2

Year 3

Rent

$60,000

$65,000

$70,000

Shop Remodeling

$25,000

$10,000

$5,000

Stationery, phone, and utility deposits

$2,500

$1,700

$1,700

Operational costs

$240,000

$240,000

$240,000

Startup inventory

$25,000

Coffee Beans

$6,000

$7,000

$8,000

Coffee filters

$8.000

Office supplies

$300

$300

$300

Espresso Machine

$6,000

Coffee Maker

$900

Coffee Grinder

$200

Alcoholic Beverages

$180,000

$220,000

$315,000

Snacks

$4,500

$5,500

$6,000

Other Beverages (tea, Mocha, Latte, Chai, etc.)

$48,000

$56,000

$63,000

Storage Hardware

$5,000

Counter Area

$12,000

Serving Area Equipment

$4,000

$400

$400

Store Equipment

$15,000

Office Equipment and furniture

$4,000

Bar Furniture and gadgets

$8,000

Launching a Website

$600

$300

$300

Conference Hall Equipment

$20,000

Miscellaneous

$2,500

$1,500

$1,500

Total

$677,500

$607,700

$711,200

Table2.0 Sales Forecast

Sales

Year 1

Year 2

Year 3

Coffee

$18,000

$21,000

$27,000

Mocha

$18,500

$23,000

$30,000

Latte

$17,500

$22,000

$27,000

Chai

$16,700

$21,300

$23,000

Cappuccino

$15,600

$20,800

$22,500

Iced Coffee

$14,300

$19,000

$21,600

hot chocolate

$13,600

$18,200

$20,300

Tea

$12,700

$17,300

$19,700

Americano

$11,800

$16,400

$18,300

Alcoholic Beverages

$260,000

$540,000

$560,000

Snacks

$13,500

$16,000

$20,000

Total

$412,000

$752,300

$789,400

Table2.1 Marketing Expenses

Year 1

Year 2

Year 3

Social Media Advertising

$5,000

$4,500

$5,500

Media Advertising

$9,000

$8,000

$10,000

Agents

$4,000

$3,000

$3,000

E-Marketing

$5,000

$4,000

$,5,500

Direct Mail

$1,500

$1,000

$1,300

Sales Promotions

$6,000

$5,300

$6,500

Total

29,500

$25,800

$32,200

Table2.2 Gross Margins

Sales

Year 1

Year 2

Year 3

Coffee

$12,000

$14,000

$19,000

Mocha

$11,500

$16,000

$23,000

Latte

$10,500

$15,000

$20,000

Chai

$9,700

$14,300

$16,000

Cappuccino

$8,600

$13,800

$15,500

Iced Coffee

$7,300

$12,000

$14,600

hot chocolate

$6,600

$11,200

$13,300

Tea

$5,700

$10,300

$12,700

Americano

$4,800

$9,400

$11,300

Alcoholic Beverages

$80,000

$320,000

$245,000

Snacks

$9,000

$11,000

$14,000

Total

$165,700

$447,000

$404,000

Table2.3 Contribution Margin

Year 1

Year 2

Year 3

Contribution Margin

$553,200

$195,700

$348,600

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