Café Plein d’Espoir Business Proposal 4/30/2013 Concordia University Tanya Ayala

Image 1

1

Image 2

Tanya Ayala Cafe Plein d’Espoir 1034 avenue Overdale Montreal, QC, H1H 2H2

April 30, 2013

Jeanette Novakovich Concordia University 1455 de Maisonneuve blvd. Montreal, QC, H3G 1M8

Dear Professor Novakovich,

As CEO of Cafe Plein d’Espoir, I am pleased to submit herewith a proposal in support of my prospective business venture, a cafe and community centre hybrid to be located in downtown Montreal. Enclosed you will find the company’s mission statement, market research, marketing campaign strategy, and financial analysis.

This business venture has the potential to transform lives and improve community relations in this beautiful, diverse city we call home. As a professor, I believe you can understand my vision to educate and encourage growth amongst the struggling members of our community.

Questions relating to this business proposal and investments should be directed to me at (438) 885-8829 or tanyacayala@gmail.com

Your consideration of my proposal is greatly appreciated.

Sincerely,

Tanya Ayala

2

Café Plein d’Espoir: Business Proposal

Tanya Ayala

3

Executive Summary Café Plein d’Espoir (or Full of Hope Café) is one-part local/fair trade café, and one-part adult learning centre. This unique business will combine the two parts into a close-knit community asset that provides quality coffee products and skill development courses for struggling Montrealers. Montreal, with its unique culture and opportunities, attracts people from all over the world, but many are unprepared for the challenges of a bilingual job market and adapting to a French-Canadian lifestyle. This is a problem for a population facing widespread unemployment. It is our mission to train and empower Montreal community members, to enhance their workplace skills, and to provide a safe place to learn, grow and foster community. We believe that Montreal as a whole will benefit from a more qualified and skilled workforce. Café Plein d'Espoir will be a safe haven for newcomers, as well as individuals who faced roadblocks in their education, to develop and learn new skills and gain valuable work experience. Not only will we empower individuals to pursue careers, but we will form a newly-skilled workforce prepared to contribute to Montreal’s economy. In this document you will find important information in regards to our services, target demographics, and marketing strategies. We have also included relevant figures on the two industries we bridge; coffee shop and adult learning. Canada is well-receptive to coffee shops and to continuing education, and with low entry barriers and start-up costs, Café Plein d’Espoir can achieve a healthy ROI within 12 months. We ask that you purposefully consider investing $15,000 seed money into this project because it will not only change the lives of individuals; it will uplift the spirit of Montreal as a whole.

4

Table of Contents Executive Summary .................................................................................................................................................... 3

Service Development ................................................................................................................................................. 5

Management: CEO/Founder .................................................................................................................................. 6

Market & Competition ................................................................................................................................................ 7

Coffee Shops .............................................................................................................................................................. 7

Language Instruction ............................................................................................................................................. 8

Marketing and Sale ..................................................................................................................................................... 9

Our Marketing Position ......................................................................................................................................... 9

Our Target Market ................................................................................................................................................... 9

Demographic ........................................................................................................................................................ 9

Geographic .......................................................................................................................................................... 10

Psychographic ................................................................................................................................................... 10

Our Promotion Strategy ..................................................................................................................................... 10

Our Pricing Strategy ............................................................................................................................................ 12

Conclusion .................................................................................................................................................................... 12

Visual Aids ..................................................................................................................................................................... 13

References .................................................................................................................................................................... 13

Appendices ................................................................................................................................................................... 13

5

Service Development As a coffee shop, Cafe Plein d'Espoir will serve the general public with the beverages and food items in a cozy environment. This section will be located on the first floor of the building. The café will offer regular and specialty coffee drinks, teas, bottled beverages, and baked goods, such as muffins, cookies, croissants, and cupcakes. Comfortable seating will accommodate individuals and groups while they enjoy their purchases and the complimentary wi-fi services. This component will be classified under NAICS: 722512. On the second floor, there will be several small classrooms where skill development classes will take place, all available at a reasonable cost to students. Courses will include skill-training, such as English and French as a Second Language, resume and cover letter writing, job interviews, and basic computer tutorials. Instructors will be professionals in the Montreal community with specialized skills and the ability to convey knowledge to the group. This component will be classified under NAICS: 6116130. While we are in the preliminary stages of this business, we are currently in contact with several local businesses and hope to finalize supply contracts in the next three weeks. These partners will supply the café with freshly baked goods The first 12-week session of classes has been staffed with local professors and professionals who will be offering classes in the day and evening to best meet the needs of our clients. As the business gains visibility and demand grows, more classes will be added to the schedule.

6

Management: CEO/Founder

Our CEO and Founder, Tanya Ayala, is a dedicated and hard-working individual with a passion for education and community empowerment. She received her Bachelor of Arts in Political Science, with a minor in Professional Writing from Concordia University. Her political education has prepared her to work on program management within bureaucracies and her writing education has allowed her to develop the writing skills needed in business and marketing.

Tanya has always been active in local and broader community projects and has experience in social media and promotions, as well as financial planning, for non-profit organizations in the Montreal area.

The concepts of education and equality have played major roles in Tanya’s life and she has those experiences to thank for being the driving force behind Café Plein d’Espoir.

Excerpt from CV:

VP FINANCE | JOURNALISTS FOR HUMAN RIGHTS CONCORDIA | JANUARY 2012 – APRIL 2013

· Effectively managed the allocated budget to support events and projects throughout the year.

· Maintained records of expenditures and submitted the appropriate forms to ensure reimbursement.

JUSTICE SECTION EDITOR | MONTRÉALITES | JANUARY 2012 – SEPTEMBER 2012

· Wrote and edited material for the Justice section of a Montreal-based website.

My interview and profile of a local media activist was in the top ten read and shared stories of 2012.

SOCIAL MEDIA MANAGER | VOICES-VOIX | JANUARY 2012 – APRIL 2012

· Managed the Facebook and Twitter accounts with regular updates and started discussions with followers.

· Taught other interns how to compose effective messages for the organization.

SOCIAL MEDIA INTERN | JOURNALISTS FOR HUMAN RIGHTS CONCORDIA | SEPTEMBER 2011 – JANUARY 2012

· Managed the Twitter and Facebook accounts of JHRConU by composing engaging updates.

Image 3

7

Market & Competition

Coffee Shops

Within the coffee and snack shop industry, coffee shops make 42% of the industry revenue. The market for specialty coffee drinks suffered in 2009 as consumer incomes decreased, but profits quickly rose back up in 2010 and continue to rise now. Consumer spending is expected to increase, indicating an ideal time to enter the industry.

Figure 1

Canada has been considered coffee-and-doughnut central and the facts of coffee-drinking habits in Canadian adults support that unofficial title. According to Passport GMID, 71% of Quebec adults said they had drunk a coffee in the past day and the demand for specialty coffees (lattes, cappuccinos, espresso, iced coffee) has increased to 1 in 10 adults. It is also important to note that consumers are becoming more health-conscious in their food purchases; a factor that will be considered when selecting the menu items of Cafe Plein d’Espoir. Full disclosure of nutritional information is also appreciated by consumers. Tim Horton’s and McDonald’s are the traditional fast-food establishments, while Starbucks and Second Cup offer the trendy living-room atmosphere and higher-quality drinks. Although there is fierce competition in the market, I am confident that Montrealers will be receptive to an independent and unique coffee shop. The community focus of Cafe Plein d’Espoir will set it apart from the chains and give Montrealers a local coffee shop to be proud to support.

8

Language Instruction

In Canada, education is more publicly funded, thus the research presented is for the private language instruction industry. The major activity and service of this industry is English language instruction, as well as foreign language instruction.

Figure 2

The industry did suffer during the economic crash of 2008, but with immigration on a steady rise, there will be a high demand for language services, making it a key external driver.

Canada is a multicultural country and Montreal has many immigrants and Quebecois who seek English language instruction to better position themselves in the job market.

The low start-up costs and low barriers to entry will simplify the initial stages of establishing our educational component of the business. There will be competition from private and government institutions, but by positioning ourselves as a workplace-oriented language instructor, we can stand out and attract a strong niche of clients.

Figure 3

9

Marketing and Sale

Our Marketing Position

Café Plein d’Espoir requires a two-fold marketing position to maximize ROI and attract clients for different reasons. The brand image we aim to promote is welcoming, nurturing, and down-to-earth. Café Plein d’Espoir will be a keystone gathering place in downtown Montreal for friends and coffee aficionados, without the corporate aftertaste. The purpose of our marketing strategy will be to convey this homegrown image.

Our café offers a close-knit vibe and serves premium-quality, locally-made food and beverages in an environment for relaxation, conversation, or working.

Our development courses offer a stepping stone for individuals to reach their career goals; they are designed with the students in mind and are taught by well-respected and experienced Montrealers.

Our Target Market

Demographic

Our clients for the coffee shop will be in the wide range of 15 to 65 years and equally male and female due to the popularity of coffee with all ages and an emphasis of specialty coffee drinks with the younger demographic. The learning centre will serve anyone aged 18 and over, but the expected demographic will be 30 to 55 years, when clients are more likely to be career-focused and seeking additional training to improve employability.

Clients will be coming from all backgrounds, as our business is focused on inclusivity, yet some categories of the family life cycle can be identified. Our learning centre will serve clients who are struggling in aspects of their lives other than employment, including divorces, single parent-ship, and low-income families because they are most likely to seek low-cost workplace training.

The education level of our learning centre clients will be below average, including incompletion of high school diploma and incompletion of post-secondary education. These categories are increasingly becoming obstacles in the workforce, pushing this

10

demographic to seek training outside of formal education institutions that can be costly or present further obstacles in the form of admission requirements.

The nationality and ethnicity of our clients will be very diverse. Affirmative action will be important to our business. An important category of clients will be new immigrants in the Montreal area, therefore our marketing strategies and policies will be culturally-sensitive and accommodating.

Geographic

Our clients reside in the city of Montreal, a dense urban centre. The location of our coffee shop centre will be in the downtown core and easily accessible to clients who rely on public transportation to commute to the area. The population density of this area guarantees high foot-traffic and accessibility even to those clients who do not live downtown.

Psychographic

Our clients at the coffee shop will come from low to middle class income households and seek high quality, equitable products that will satisfy their desire to improve their communities and do their part for sustainability. Our learning centre clients will come from lower income households, have faced numerous struggles, but have an ambitious personality that drives them in self-improvement.

Our Promotion Strategy

Utilization of both online and offline methods will maximize our reach and accessibility to the Montreal community. To be most cost-effective, we will emphasize online campaigns.

Offline promotion strategies include classifieds in community newspapers, direct mail flyers, and a feature in the business section of the Gazette as a new small business.

Our home website is up and features our ‘about’ information, location/contact, and testimonials.

11

A Facebook Page will feature the basic information of our business, such as location, business hours, and a link to our website. It will be important to establish a fan based before the café opens.

To grow that fan base in the initial stages we will share behind-the-scene photos of the café’s development, and use the platform to launch small contests for discounted classes and café gift cards; this will add incentive for current fans to share our photos and page to their friends. An Instagram account will be integrated with the Facebook Page to maximize the reach to fans, visually, because it simplifies sharing photos on multiple platforms.

Image 4

Twitter will be used to share quick updates, daily specials, promotions and interact with Montrealers who can benefit from our services. It is essential to utilize the reach of Montreal’s trending topics and to share links to relevant material on education, employment, coffee, local food, and testimonials from Café Plein d’Espoir students and instructors.

Both of these platforms offer the option to purchase advertisements, which can be targeted to regions and demographics, at reasonable rates. In the initial stages of opening the café, we believe this is a worthwhile investment to increase our visibility.

12

Our Pricing Strategy

The café will offer pricing similar to our competitors.

Figure 4

Menu Item Price CAD Small Coffee $1.25 Medium Coffee $1.50 Large Coffee $2.00 Latte $3.50 Cappuccino $3.50 Bottled Beverage $1.75 Cookie $1.25 Muffin $1.50 Croissant $1.75 The development courses will be priced competitively and affordably.

Figure 5

Course Price CAD English I $100/12 weeks English II $150/12 weeks French I $100/12 weeks French II $150/12 weeks Cover Letter/CV $75/4 weeks Job Interview $75/4 weeks Windows/Microsoft $100/8 weeks

Conclusion Your consideration of this project is greatly appreciated. We hope that with the information above you can see the vision we have for Café Plein d’Espoir and the commitment to establishing a successful and positive business.

Take this exciting opportunity to become a founding investor of a project with great business and social potential!

13

Visual Aids Image 1 from www.flickr.com/photos/vissago/1337687718/ .................................................................... 0

Image 2 from www.cafepleindespoir.weebly.com/logo-art.html ............................................................... 1

Image 3 from www.ca.linkedin.com/in/tanyalua ......................................................................................... 6

Image 4 from www.facebook.com/CafePleindEspoir ................................................................................ 11

References

Café Plein d’Espoir. (2013). In Facebook [Fan Page]. Retrieved April 27, 2013 from www.facebook.com/CafePleindEspoir

Euromonitor International. (2012, November 7). Consumer Lifestyles in Canada. Retrieved January 23, 2013 from http://www.euromonitor.com

Polak, M. (1999, December 11). Canada becomes a cafe society. The Gazette. Retrieved from http://0-search.proquest.com.mercury.concordia.ca/docview/433552989?accountid=10246

Samadi, N. (2012). IBISWorld Industry Report 72221b. Coffee & Snack Shops in the US. Retrieved January 23, 2013 from IBISWorld Database. http://www.ibisworld.com/industry/default.aspx?indid=1973

Statistics Canada (2013). NAICS Canada 2012, 611630, Language Schools. Retrieved from:

http://www23.statcan.gc.ca/imdb/p3VD.pl?Function=getVDDetail&db=imdb&dis=2&adm=8&TVD=1184

64&CVD=118471&CPV=611630&CST=01012012&MLV=5&CLV=5&CHVD=

Statistics Canada. (2013). NAICS Canada 2012, 722512, Limited-service eating places. Retrieved from:

http://www23.statcan.gc.ca/imdb/p3VD.pl?Function=getVDDetail&db=imdb&dis=2&adm=8&TVD=1184

64&CVD=118471&CPV=722512&CST=01012012&MLV=5&CLV=5&CHVD=

Yang, D. (2012). IBISWorld Industry Report 61163. Language Instruction in the US. Retrieved January 23, 2013 from IBISWorld Database. http://www.ibisworld.com/industry/default.aspx?indid=1543

Appendices Figure 1 Products & Services Segmentation of Coffee Shops ....................................................................... 7

Figure 2 Products & Services Segmentation of Language Instruction .......................................................... 8

Figure 3 Number of Immigrants .................................................................................................................... 8

Figure 4 Café Price Table ............................................................................................................................. 12

Figure 5 Course Price Table ......................................................................................................................... 12