Anti-Procrastination Café Project La Anine Subject Cost-Benefit Analysis.pdf

GENERAL INTRODUCTION Project Name: La Anine Café Location: Tran Huu Duc, Nam Tu Liem, Ha Noi, Viet Nam Investment form: Economic organization establishment Category: Coffee Shop Attachm

TABLE OF CONTENTS

PARTA — GENERAL INTRODUCTION - Hàn HH HH HH HH HH kh 4

CHAPTERI MARKET RESEARCH - Ăn HH HH Hà HH HH kn 4

I Macro€COnOIIC Quà Hà HH HH HH HH th Hi gi nhà 4

Il General Information About the Pr0j€€( se 6

II SWOT Strafegy AnalySÏS Án“ HH HH HH HH HH HH 7

CHAPTERH PROIECTLOCATION Ăn HH nh HH HH HH HH HH, 9

I Project Gcographical Locafionn - - HH HH HH HH nh nh Hy 9

TH Status of land usage - Ăn HH HH HH HH TH HH HT HH HH 10 THE General Comrmenni - Ăn nh HH HH HH nh HH re 10

CHAPTER I A PROFTTABLE PROIECT, SH HH nh TH HH Hàn ghe 11

I Objecfives of the Proj€CÍ HH HH HH HH TH Hà HH ghe II HH Nccessi(y oŸ ÍnyesÍIm€n( - Gà HH nh Hit II

II Investment Project Implemenftation Tỉme .- Ăn, II

IV Investmenf FundS Ăn TS nh HH Hà HH HH TH Hà Hit 12

CHAPTERH BASIC DESIGN PLANNING SOLUTION nh, 13

I Project Grading DeterminafÏonn - - Ác HH HH HH nh HH rh 13

Il Technical Scale Determinatfion - Á Là SH HH HH HH HH 13

HH Services Defermination - SÁT SH» HH HH HH HH HH HH HH HH 13

IV Basic Business Requireme€nS - - s Lx* n n HH HH krh 13 MMwg nh 14 Drainage cece HH HH HH HH HH Họ TH HH HH HH HH HE Trinh 14 Flir€ pFOÍC€CÍÏOTA nh nh HH Hàn Họ TH Họ nh HH TH HH Hán Hinh 14 Alr condÏfÏoning ch HH HH Họ TH HH Hà Hà HH nh HH nh ri 15

CHAPTERIIH ENVIRONMENTAL IMPACT ASSESSMENT sen e 16

T Legal BasiS - Ăn HH HH HH HH TH HH Hà HH HH nh kh 16

Il Environmeníal Impact of the Pr0j€€( - Án HH HH Hi, 16

HH Measures to Minimize Adverse Impacts, Prevent and Respond to Environmental Incidl€nS - HH HH HH HH HH TH TH HH TH nh th Tà HH Hit 17

CHAPTER IV MANAGEMENT APPARATUS AND PERSONNEL ORGANIZATION 18

I._ Managemenf Ápparatus Diagram - - - xà HH kh 18

CHAPTER V FINANCIAL PLAN - Ặ SẶ SH HH HH TH HH HH HH HH, 18

I Investment cost plan

Il

PART D

Post-commissioning pÌan - - TH HH HH TH nh HH rên

CONCLUSION

PART A GENERAL INTRODUCTION

Project Name: La Anine Café

Location: Tran Huu Duc, Nam Tu Liem, Ha Noi, Viet Nam

Investment form: Economic organization establishment

Category: Coffee Shop

Attachment service: Fastfood, Non-alcoholic drinks, Supporting people to keep them focused on the work

a high intensity of government administration offices, embassies, universities, financial institutions,

insurance, and real estate businesses, with many of the city9s attractions and shopping venues However, according to a 2022 research of Savills, since around 2008 when the city oriented to expand

to the Eastern or Western areas, instead of concentrating in the central districts of Hanoi, many residents started to move to new centers - where the people can literally enjoy an easier life in the heart of the city, with less polluted atmosphere and more space This is something that the old downtown areas, which are famous for their crowded land, will be hard to get For the office market in particular, there has been a shift

of locations of many financial institutions, insurance, real estate and government offices to districts located

in the West of Hanoi, beside the main tenants of manufacturing and ICT (Information Technology)

industries The West of Hanoi, also known as the new CBD, consists of Nam Tu Liem, Bac Tu Liem, Cau

Giay and a part of Thanh Xuan district It is now popular with expats looking for slightly cheaper, yet more spacious rents than the CBD

2 Economic environment

O The remarkable resilience and recovery from the pandemic

Generally, the Vietnamese economy has been hit hard by the ongoing COVID-19 pandemic but has shown remarkable resilience The pandemic hit Vietnam9s economy hard where GDP fell to 3.8 % in the first quarter of 2020 as compared to 6.8 % in the same period the previous year

Nevertheless, Vietnam fought the pandemic early by timely solutions and policies Despite the pandemic, the Asian Development Bank (ADB) has forecast a 2.3 % growth for Vietnam for 2020, with the economy set to bounce back to 6.1 % in 2021, provided the pandemic is contained

Regarding the service sector, despite being heavily impacted by the Covid-19 pandemic for 2 consecutive years, it is still considered to have good development prospects in 2022 in the following 3 bright spots:

Firstly, the Covid-19 epidemic will continue to develop complicatedly across the country, but Vietnam has had a safe adaptive approach to economic development, localities have implemented the smallest zoning, handling thoroughly out the outbreaks, so business activities in the service industry will certainly have a good growth compared to 2021

Second, from January 1, 2022, international routes can be reopened and opened mote, international

tourists have the opportunity to come to Vietnam and Vietnamese people can travel abroad This is also an opportunity for the tourism industry to have a strong recovery, thereby stimulating the development of other

service industries such as accommodation, catering, wholesale and retail At the same time, with the

expansion of tourism services In the form of transportation (road and rail), Vietnam's connection to international trade will be more flexible for both goods and passengers, and the transportation industry will certainly have high growth expectations again

Third, Vietnam's vaccination rate has also reached a very high level; At the same time, it is expected that in 2022, there will be drugs to treat Covid-19 This is the biggest motivation for the world in general and Vietnam's economy to recover from the pandemic

LỊ The gradual recovery of Food and Beverage sector

The government did have the timely move to gradually help the food service (F&B) industry to recover When the fourth wave of the pandemic began to stay under controlled, from October 14, 2021, the City People's Committee of Hanoi allowed restaurants and cafes to serve on-site, but must ensure anti-epidemic

and close at 9 P.M Some areas in orange or red areas, like Nam Tu Liem district, still had to be in the take- out period then From March 15, 2022, Hanoi removed the 9 P.M curfew, allowing all F&B businesses in

the city to fully operate

At the same time, businesses and small businesses in the F&B industry also have made many changes

in their business methods to adapt to the pandemic They shift their focus from the tourist group, high consumption consumer to the segment of local Vietnamese customers, middle-income people - good but have stable food needs to ensure stable revenue growth

Thanks to these efforts, the food and beverage market has great potential for development despite the difficulties caused by the COVID-19 pandemic, according to experts The growth rate of this market is forecasted to reach from 5-6% annually in 2020-2025

3 Legal environment

O Food and Beverages Restriction in Vietnam

Depending on their categories, Food and Beverages are controlled and regulated by 3 separate ministries

in Vietnam: Ministry of Industry and Trade (MOIT), Ministry of Health (MOH), and Ministry of Agriculture and Rural Development (MARD) Through this product registration, business owners will get

a Certificate of Conformity Declaration (CCD) Then, they can import their food and beverages to the Vietnamese market for sales and distribution

O Safety and Hygiene of Food and Beverage Product in Vietnam

Businesses of Food and Beverage products must obtain the Certificate on Satisfaction of Standards on food hygiene and safety

The safety and hygiene standards apply to many things They include processors, equipment, importers, workshops or stores, production premises, storage and warehouse, sales and distribution premises

4 Technological environment

Technology, including the A.I and machine learning, is constantly developing, requiring each business line to adapt and apply to meet the needs of customers quickly with high efficiency High-tech machines will help customers come to the service of the café At the same time, the new technology will save costs and time for business operation, marketing and customer services

The investment in machinery and equipment is a factor in the success of the café However, the investment in technology also causes many disadvantages The disadvantages of adopting new technology include high initial cost to develop a well-functioned management information system Failure to learn correctly and apply the right technology will cause many errors in the services, as well as in creating long- lasting relationships with customers

Il General Information About the Project

1 About La Anine Café

The name “La Anine” is inspired from L-theanine, an amino acid found primarily in green and black tea and some mushrooms L-theanine, or theanine, brings a reduction in anxiety, stress, and greater ability

to relax, as well as improvements in attention and executive function A combination of theanine with caffeine (200mg each) is noted to be synergistic in promoting cognition and attention

As the first anti-procrastination café in Vietnam, itis La Anine9s mission to provide an ultimate solution for productivity: A place where young intellectuals can relax with good drink, soothing music and cozy atmosphere, while still being “forced” to finish your wonderful work, whether it is school assignments, or

a start-up project La Anine welcomes anyone struggling with the distractions of the home, office and conventional coffee shops

Our motto is “Deadline isn9t scary We are.”

2 Market segmentation

The main customer segment that the project targets are students and young professionals (including both white collar workers from companies and freelancers), ranging from 16 to 35 years old in the newly urbanized districts of Cau Giay and Nam Tu Liem People of this segment have lower middle income of around 2.5 million VND per month (World Bank, 2021)

3 Competitors

2018 data shows that there are 6,072 cafés in Hanoi, with 296 are in Nam Tu Liem and 920 are in Cau

Giay area However, most are designed as social gathering places, with noises from background music and other customers There are only a few cafés suitable for working and studying in the city, namely Tranquil

Book and Coffee, De.Tam, or Xofa Café and Bistro, yet most of them are located in the Central Business

District (CBD) and the Midtown area like Ba Dinh, Dong Da, Hai Ba Trung or Hoan Kiem Due to the location, the space of these café is usually small, causing the seating and parking arrangement to be quite uncomfortable In addition, these so-called “working café” can be noisy sometimes, especially in the evening or at weekends, due to the facts that customers may go there for other purposes, such as taking some nice vintage-style pictures, instead of quietly working or studying

Co-working spaces, like Toong, MindX, or Y Nest, can solve the problems relating to space and noise, but they usually require reservations, most only open on weekdays (Monday to Saturday), and the expense

is quite high, about 50,000 per hour, minimum Public libraries (including Hanoi Library, the National Library of Vietnam, TOTO information center, and libraries of foreign embassies like Goethe Institut) can

be the economical alternatives with low prices, even free of charge, but they are low in quantity and size, and have short daily opening hours

Moreover, all of the above-mentioned “working” places have one disadvantage in common: They can provide a space for working, but may not effectively support the productivity There is nothing to prevent people from ending up spending hours surfing the social networks, or sleeping

The project of La Anine café, as a result, can be the optimal solutions, which provide young people a financially and geographically accessible place for improving productivity 24/7

Il SWOT Strategy Analysis

SWOT Strengths

0 Good location: The location is near many schools, universities and companies, including various SMEs, yet it is not as crowded as in central districts This brings easy accessibility for a large pool of potential customers, and at the same time provides spacious space for the business, reducing the burden of finding a good parking area

O Reasonable price: Suitable and appealing to the majority of students, as well as young professionals, and freelancers - potential customers who are financially budgeted

O Unique experience:

Customers can enjoy cozy and relaxing atmosphere, while still being properly “stressed9 to prevent themselves from being lazy

O The First-mover advantage

enables a strong brand

recognition and service loyalty

This type of cafe is new and

strange compared to other, as

there has never been a coffee

shop which can keep customers

both relaxing and stressful at the

same time Young people often

have an urge to enjoy new things,

so they will be willing to pay to

go to and be curious about new

places In the digital era where

young people have many

distractions preventing them

from concentration and S- O Strategy

O Choose a convenient location

O Modern and functional

design with some influences of Vietnamese art, bringing a sense

of coziness, passion and creativity

O Establish credibility, offer new special promotion to attract customers

QO Diversify the menu, while maintaining high the standard for the traditional drinks (such as egg coffee, white coffee — bac xiu and coconut coffee-ca phé cốt dira) to keep customer loyalty Many coffee shops keep chasing the quantity of items in their menus, but neglect the quality of these classic drinks, W - OStrategy

O Developing training for

O marketing department

QO Gain experience from other successful first movers in the F&B industry

O Expand target market,

attract new customers, retain old customers, create demand for

potential customers

productivity, a coffee shop like

La Anine can be a savior number of loyal customers which significantly reduce the

O Keep good food safety and sanitation in general

O Build a good core team, with a good working mindset and

a shared value

Threats

O PEST Problems: Policy

problem; Pandemic — effects;

Incapability of taking advantage

on 4.0 technology

O Risk of being copied or

improved upon by the

competition

O Cost problem: Being first is

expensive R&D is expensive

Educating a new market is

expensive As a_ first-mover,

estimating the hidden costs and

risks are difficult, since there9s

no prior experience to fall back

on

S —T Strategy

O Absorb the strengths and avoid the limitations of the opponent

QO Focus on the unique style, attract customers, satisfy

customers' needs, build a familiar

CHAPTER II PROJECT LOCATION

I Project Geographical Location

` BẮC GIANG`

connecting with Le Duc Tho Street (Thien Son Plaza Company), runs to Hanoi Athletics Palace through My Dinh If New Urban Area As a relative new street which is far from the center

of Hanoi, the traffic density on Tran Huu Duc street is still quite sparse However, located in an area that is considered to have a fast urbanization rate and is considered a new center of Hanoi and a gradually becoming a busy and bustling street vibrant Tran Huu Duc Street allows easy access to big higher education institutions namely Vietnam National University, Hanoi National University of Education, Thuongmai University, as well as the newly relocated FPT Polytechnic

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Map 2: Tran Huu Duc street and the surroundings

Tran Huu Duc is also near Cau Giay district, particularly Duy Tan street, which is sometimes nicknamed as 8Hanoi Silicon Valley9 Having 28 office buildings on average in within less than 1km long, Duy Tan is one of the streets with the most offices for rent in Hanoi Besides the centralized information

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technology park, this street also gathers many financial businesses and bank branches Many large domestic and foreign enterprises are concentrated here, forming a dynamic business community with high networking and exchange opportunities

Tran Huu Duc Street is 700m long, 50m wide, divided into 4 lanes Due to the concentration of office

buildings nearby and newly constructed residential areas, the traffic density here is quite large, but the traffic of vehicles is still smooth, and rarely falls into congestion Regarding public transport, there are also many bus routes with constant operating frequency, such as Bus 49: Nhon — Tran Khanh Du

II Status of land usage

Around Tran Huu Duc, there are several plots available for sale or rent, many of which are leased/owned

by major real estate9s players like Vingroup, Vimefulland, Phuc Hung Holdings and Tasco

I General Comment

Through the analysis of factors, the company found that the natural conditions and technical infrastructure in Nam Tu Liem district in general and Tran Huu Duc in particular not only do not affect the process of creating a service base as well as exploitation and use but also very convenient including factors

of favorable geographical location and modern infrastructure

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PARTC LA ANINE

CHAPTERI A PROFITABLE PROJECT

I Objectives of the Project

QO Providing a solution for anyone struggling with the distractions of the home, office and conventional coffee shops to finish their work

QO Contributing to local socio-economic development

O Contributing to the budget revenue an amount from profit

O Providing jobs for needed citizens as well as students

II Necessity of Investment

COVID-19 has spawned a global mental health crisis, and that9s feeding one of our more harmful human tendencies: procrastination Procrastination has roots in our evolutionary development, with two key parts of the brain vying for control Experts who study procrastination define it as the voluntary delay

of an intended act despite the fact that you can expect to be worse off in the long run by putting off the task

We know the task doesn9t go away, but sometimes we let our emotions get the best of us Our “present self” calls the shots, and our “future self’ suffers because of it It is not a time-management problem; it is an emotion-management problem, according to Tim Pychyl, a psychology professor at Carleton University in Ottawa The pandemic has caused increased stress, anxiety, and depression, leading to more individuals suffering from those underlying conditions, leading to more procrastination For young intellectuals in general, this can have long-lasting effects on their future career path Although there is a lack of in-depth research on the impacts of procrastination on academic performances during the pandemic of Vietnamese

students, Dr Jamil Salmi did warned that academic decline and student failure are on the rise

O Economic benefits

0 Bring high economic efficiency to the owner from the sale of drink and snack, as well as the

“deadline buddy” service

XO Social benefits

QO Bring peace of mind: Procrastinating often leads to an increase in stress and anxiety, as well as the likelihood of making errors when rushing toward completion of a project In worst-case scenarios, putting things off until the last minute can cause people to miss an important deadline By pushing people to start

on their work, La Anine will prevent customers from being overwhelmed by their loads of work, consequently help them become less stressed when the deadline is near

O Employment opportunity: The café will need a team to support the 8procrastinators9, beside the baristas and security men

Il Investment Project Implementation Time

The project will be implemented in 12 months from May of 2022 to the end of April 2023, then the café will be put into business The end of April is the time when students have to deal with various assignments, while preparing for the final exams Young professionals of fields such as Marketing and Tourism are also extremely busy at this time, since they have to prepare or run various summer campaigns and events For these reasons, the opening is expected to be profitable, and help collect reliable customer insights, creating a good foundation for maintaining the business in the future

2022 2023 Category 5 | 6} 7 ]8 |9 |10|11|12|112 13 124

I | Investment’s preparation

II

Initial information gathering,

surveying and evaluation

Prepare pre-feasibility

assessment report

Prepare a feasibility report

Looking for capital and strategic

partners to cooperate

Finalization and approval of

technical legislation related to

Decoration and adjustment

Human resource training

Recruitment

Training

Marketing

Market research and analysis

Raising consumers9 awareness

of the business

Building interests

event

Getting feedback

IV Investment Funds

The project is implemented from the capital called for by Mr Nguyen Van Dinh and Ms Dam Thi Lien and money borrowed from Vietcombank In addition, the project will also find other sources of support/mobilization inbound and from foreigners

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CHAPTER II BASIC DESIGN PLANNING SOLUTION

L Project Grading Determination

0 Based on the reasoning about the competitive advantage and profitability of the café area;

0 Based on the capacity of the investor;

LỊ Based on the need for a good working café in Hanoi

With the above bases, X decides to establish La Anine Café

Il = Technical Scale Determination

O La Anine is built on a total area of 1900 m2 including 2 floor

IH Services Determination

O The café will provide international quality lighting system to create a cozy atmosphere for customers Accompanying the quality lighting system is an electric sound system that brings a sense of relaxation when customers use the services

QO The cafe provides a goal-tracking system that requires customers to write down their work goals for the day before settling in Besides recording their time in and time out from the cafe, customers also have to tell the cafe staff whether they want to beaver away at their tasks on mild, regular, or hard modes The cafe staff then tailors the intensity of their monitoring service based on what customers pick Mild- mode customers will get a gentle check-in at the counter on whether the task was completed Regular-mode customers will get an hourly prodding Those looking to work under more intense pressure can opt for the

“hard" mode, which involves a staff member constantly hovering over their shoulders and watching them work According to one of the cafe's rules, customers are not supposed to leave the store until they accomplish their work goals To further motivate them, the cafe also has a board that lists the names of everyone who left without completing their tasks for the day

IV _ Basic Business Requirements

1 Overall requirements

0 All areas in the business area must be designed to be easy to clean

0 The business must have an appropriate location, with a construction area large enough to ensure favorable production activities Each area must be arranged reasonably to avoid clutter or other defects that may adversely affect service quality

0 Kitchen material storage area must be ventilated and clean for easy cleaning and in accordance with food hygiene and safety standards

O Restrooms must be well ventilated

2 Layout design

QO The area must be arranged reasonably to create a highlight for the bar as well as create a spacious and airy space to have more area to serve customers

0 Avoid placing too many tables and chairs in the business area, causing loss of aesthetics and space

O Asmall room, with sufficient space for 5 staffs to groom, have meals and take naps, due to the fact that the café is 24/7 open

QO The toilet area should always be cleaned to avoid contamination

0 Drainage areas such as drains need to be cleaned regularly to avoid clogging

0 Where necessary, a suitable waste drainage system should be designed for ease of cleaning

QO The service area must be provided with adequate lighting and sound

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3 Pantry and equipment storage area

O Pantry and equipment storage areas must be spaced, properly lit, arranged and equipped to allow the storage of stored products to be organized and prevent the ingredients (milk, coffee powder, tea bag, tea leaves, .) from turning spoiled soon

0 Itis necessary to ensure regular inspection and management of special storage conditions such as temperature, humidity and security issues to avoid unnecessary loss

O The arrangement of bottles/bags/boxes must be reasonable (e.g distinguishing different labels) to avoid confusion when serving

V Planning Solution

Drainage

Wastewater source:

Surface water: includes rainwater, water from the roof, water for watering plants

Domestic wastewater: From the café

Solution plan:

Domestic wastewater: Due to the location of the project located in the city center, there is a centralized wastewater treatment system available in the city, so the sewage will be directly connected to the city's wastewater collection system, black wastewater will be concentrated in the septic tank before being put into the city's wastewater collection system

QO Surface water: This part includes rainwater collection mouths from floors, rainwater drainage pipes

in the garden, rainwater collection pipes and connection to the city's storm water drainage system

Fire protection plans are established on the basis of current standards of the State

0 This is a residential and public building, so the production grade of the building is grade C (TCVN 2622-1995)

QO The structure is mainly made of reinforced concrete, so the general fire resistance level of the work

to apply the calculation is level II and III

O Water fire - fighting system

Internal water-walled fire-fighting pipe system with water supply pipe system to firefighting cabinets, fire-fighting cabinets containing hose reels and canvas hose reels Hose reel has a diameter (25mm, 30m long, 10m thick water pressure spray The canvas roll has diameter (50mm, 30m long, 10m dense water pressure spray Number of throats and water flow rate) each throat is designed according to the above standards The location of installation of fire hydrants will be appropriately designed so that the travel distance from any place inside to the nearest fire hydrant does not exceed 30 m

0 Automatic fire alarm system

A fire alarm unit with push button and protective glass (Break Glass Units) and a fire alarm bell (Fire Alarm Bell) will be placed next to each fire hydrant inside the house and the most visible place of the escape doors

Smoke and heat detectors will be designed and installed in all business areas to ensure the fastest signal receiving

A4.5 kg capacity fire extinguisher suitable for Class A, B and C fires will be installed

QO Lightning protection

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