Topic development of a business plan for the opening of the box coffe shop “coffee boxed bliss

Unlike traditional coffee shops, our concept combines a café with private “sleeping boxes,” providing customers with a space to converse with friends, take a short nap on comfortable mat

HO CHI MINH UNIVERSITY OF BANKING

BANKING DEPARTMENT -

Ho Chi Minh City, October 2024

Chapter III: TECHNICAL ANALYSIS, TECHNOLOGY AND INPUT FACTORS 12

3.1 Menu, site selection and environmental impact analysis 12

5.3 Depreciation plan (depreciation plan) 45

5.3.1 Original values of construction 455.3.2 Original values of machinery & equipments 47

5.4 Revenue and selling expense estimates 48

5.8 Cash flow forecast from different perspectives 56

ABBREVIATION & SYMBOL MEANING

ADCF Accumulated Discounted Cash FlowAEPV All-Equity point of view

CPI Consumer Price Index

DCF Discounted Cash Flow

DDB Discounted Payback Period

DSCR Debt - Service Coverage Ratio

EAT Earning After Tax

IRR Internal Rate of Return

NCF Net Cash Flow

NPV Net Present Value

MIRR Modified internal rate of return

OCF Operating Cash Flow

PP Payback Period

TIPV Indirect Method

VAT Value Added Tax

VND Official Currency of Vietnam

WACC Weighted Average Cost of Capital

Wd Weight of Debt

We Weight of Equity

Chapter I: PROJECT INTRODUCTION

1.1 Project Summary

When mentioning Saigon, one cannot overlook its vibrant, youthful, and dynamic atmosphere However, this liveliness has led to overcrowding, especially in central areas where the hustle and bustle is most evident Consequently, traffic jams become acommon occurrence, and finding a quiet space to work or relax for a few hours can be quite challenging Additionally, there are few venues offering private spaces for students and professionals to meet and collaborate, as most coffee shops provide only communal environments

To address these challenges, we have developed a unique coffee shop project Unlike traditional coffee shops, our concept combines a café with private “sleeping boxes,” providing customers with a space to converse with friends, take a short nap on comfortable mattresses, or focus without distractions Furthermore, we offer group meeting rooms that can accommodate more than five people, catering to the needs of students and professionals alike

As students ourselves, we understand the specific needs of this demographic We recognize the immense potential of the box café model combined with modern, spacious meeting rooms, prioritizing service quality to enhance customer experience Throughout the ideation and research phases of this project, we are confident that the box coffee model will be successfully implemented and achieve significant impact

Project Name:: Coffee Boxed Bliss

Address: Street No 6, Linh Chieu Ward, Thu Duc District, Ho Chi Minh City

Business Type: Food and Beverage

Products/Services: Coffee and beverages,Private resting boxes,Group meeting spaces

1.2 Project goals

Total Investment Cost: 2.740.000.000VND

Average Annual Revenue:5.425.000.000VND

Payback Period: 2.99

Net Present Value (NPV):1.753.000.000VND

Internal Rate of Return(IRR): 30.3%

Estimated Operational Start Date: The project Coffee Boxed Bliss is scheduled to begin implementation in June 2024 and officially commence operations in January 2025

1.3 Project Alignment

Geographical Location Conditions:The coffee will be located on Street No 6, Linh Chieu Ward, Thu Duc, Ho Chi Minh City This area is home to many universities and office workers, providing an opportunity to attract remote workers looking for additional options

Thu Duc District, part of Ho Chi Minh City, benefits from developed transportation links, bordering District 2, District Tan Binh, and to the west, Binh Duong Province Its natural location has several advantages, including a well-developed transport system with major routes connecting to the city center The area hosts numerous universities, such as Banking University, University of Technical Education, and institutions affiliated with the Vietnam National University in Ho Chi Minh City

Thu Duc has a high population density and many residential areas, ensuring a steady customer base for the coffee While not too far from central districts, Thu Duc is also relatively distant from outer districts like District 7, Nha Be, and District 8 This presents an opportunity to attract customers who come to Thu Duc for work or study and need a place to take a break or work privately; Coffee Box is a suitable option for them

Competition Analysis: Although this coffee model exists, it is not yet widely popular, and competitors are mainly concentrated in central areas Therefore, choosing Thu Duc as the project location is a promising direction, as the market here is not saturatedcompared to areas like District 1 and District 3, allowing the Coffee Box model to thrive.

Environmental Impact: Our coffee box model primarily serves customers on-site, which can reduce the use of plastic cups and bags compared to traditional coffee shops We will strive to minimize the use of plastic dining utensils as much as possible

Chapter II: MARKET ANALYSIS

2.1 Market Segmentation

2.1.1 Demand for space

In the past, when the economy was struggling, people primarily focused on whether they had enough food and drink, without much concern for quality However, now that individuals have greater economic resources and higher expectations for quality

of life, new demands have emerged There is a growing desire for spaces and time to relax, unwind, and regain balance in life This shift has led to the rise of resorts, upscale restaurants, hotels, and personalized coffee

In Ho Chi Minh City, the box coffee concept is an ideal choice to meet these needs It serves as a place where people can enjoy the ambiance, or simply a spot to meet and chat with friends and colleagues while enjoying the services provided, ensuring privacy and comfort

Box coffees are a new idea in the market, but they have been positively received by the public The private spaces help reduce noise and create an effective work environment, minimizing distractions and attracting students and office workers Additionally, with the increasing demand for information security, private box spaces

their privacy In turn, fosters customer trust and peace of mind when choosing this location.

2.1.2 Supply Situation of the Project

Currently, this coffee shop model is often invested in locations near universities or office areas close to the city center to facilitate access to the target customers Box cafés are designed and equipped with comfortable amenities such as mattresses, pillows, and curtains to ensure a cozy experience for patrons

Service quality is a top priority for this model, as customers today pay close attention

to hygiene and health safety Staff are trained professionally to effectively meet customer needs The supply situation for the box/bed café model in the market appears

to be on the rise, driven by an increasing demand for rest areas and quieter spaces for reading or working

However, to maintain competitiveness, project owners must focus on service quality and the overall customer experience

2.1.3 Target Market for the project

The coffee aims to provide services that offer maximum benefits to customers, frequently updating news and knowledge for those who may not keep up with mainstream media Therefore, the target audience is broad However, to ensure the best service quality, the coffee has analyzed the customer segments in Thủ Đức and

Ho Chi Minh City as follows:

Group 1: Low Income (30%)

Primary Customer Base: Students from local universities and those who enjoy private spaces to study and relax

Average Income: Below 1 million to under 5 million VND per month This group primarily consists of students who are not financially independent and still rely on their families

Characteristics and Awareness: They have a desire to experience new trends and seekcomfortable spaces to enjoy amenities while studying, working, and socializing Peak Visiting Times: Customers in this group typically visit cafés most often during lunch and in the evening.

Customer Retention Rate: Frequent

Group 2: Middle Income (50%)

Income: From 6 million VND per month and above This group has a stable income and seeks to purchase and enjoy quality products

Characteristics and Awareness: They are educated individuals with the financial ability to afford a suitable place to enjoy beverages or work and relax with a book Members of this group usually prefer visiting cafés in the evening (after 6 PM) Customer Retention Rate: Frequent

Group 3: High Income (20%)

Income: From 20 million VND per month and above

Characteristics and Awareness: They tend to favor comfortable and luxurious cafés with spacious environments

Customer Retention Rate: Infrequent

the coffee category, the different formats cater to varying customer purposes and needs However, the bed/box coffee model is still relatively new in Vietnam, yet it is considered a promising concept.

For traditional coffee models: In addition to box spaces, the coffee will also feature a ground floor designed like a typical coffee shop, giving customers the option to choose During the initial business phase, we can heavily promote and highlight the box café concept Once we have established a loyal customer base, they may return to the café to use the services on the ground floor, similar to other traditional coffee shops To encourage repeat visits, we must focus on both the quality of beverages and the level of service provided

With the Box Coffee model: This model has distinct advantages compared to traditional coffee, especially for customers who need a quiet environment to work or take a nap, particularly considering the Vietnamese habit of napping Additionally, when comparing with existing competitors in Ho Chi Minh City, notable names include The Daily Coffee, D.O.M Coffee Capsule, and Blue Lagoon Through research and surveys of these cafés, we are confident in our ability to design a modernyet cozy space with trendy details, fully equipped amenities, and professionally trained staff to carve out a place in customers' hearts

2.2 Marketing Strategy

2.2.1 Brand Building

The box coffee model, named Coffee Boxed Bliss, stands out as a superior option compared to traditional coffee shops, with its key product being the boxes/beds designed to attract customers In addition to the unique model, we aim to encourage customer retention and service usage through food and beverage offerings that cater totheir tastes We can craft a distinctive story for the project to create a connection with customers across various media channels

One of the highlights of Coffee Boxed Bliss is the "Coffee for a Cause" program Each month, the coffee will allocate a portion of revenue from the sale of special coffee varieties to support environmental protection projects or local community initiatives This not only raises community awareness but also fosters a deeper connection between the café and its customers.

2.2.2 Online marketing

Social Media Usage: Actively promote the café on platforms like Facebook, Instagram, and TikTok by sharing attractive images of beverages, the café's ambiance,and special events Create engaging content to capture customers' attention

Email Marketing: Send notifications about promotions, events, or new menu updates

to the customer email list

SEO (Search Engine Optimization): Enhance the website's ranking on search engines

to attract organic traffic

Online Advertising: Utilize Google Ads or social media advertising to quickly reach the target audience

Content Marketing: Create valuable content such as blogs, videos, or infographics to attract and retain customers

Chapter III: TECHNICAL ANALYSIS, TECHNOLOGY AND INPUT FACTORS

3.1 Menu, site selection and environmental impact analysis

3.1.1 Product design

Menu

STT Tên món Hình ảnh Đơn giá

1 Black coffee (ice/hot) 45.000

2 Milk coffee (ice/hot) 50.000

4 Vietnamese white coffee 50.000

18 Cup noodles 20.000

3.1.2 Select location

Choose a location and evaluate: Nguyen Gia Tri Street, Ward 25, Binh Thanh District,HCMC

Figure 2 Google Map photo of Nguyen Gia Tri street area, ward 25, Binh Thanh, Ho Chi Minh City

Advantages: This is a location near apartment buildings, especially near major universities, with the goal of serving recent students This location is located on a fairly crowded and attractive street many young people, thereby bringing potential customers to the restaurant

This area will easily be flooded during the rainy season, and the number of visitors will decrease if such a situation occurs.

Selected location: Street 6, Linh Chieu Ward, Thu Duc, Ho Chi Minh City.

Figure 4 Google Map image Selected location to build a coffee shop

The location on Street No 6, Linh Chieu Ward, Thu Duc, is an ideal choice for opening a café combined with relaxation boxes due to its geographical advantages andpotential to attract customers This area is situated near several major universities, such as the University of Technical Education, the University of Banking, and variouscolleges, creating a large population of students and faculty members who seek places

to relax, study, and work in comfortable café environments Furthermore, the area is close to major roads like Vo Van Ngan and Kha Van Can, facilitating easy and convenient transportation, while also providing access to customers from various locations The coffee is located on Street No 6, which offers a quieter atmosphere andmore affordable rental costs This makes Street No 6 a promising business location that meets the entertainment, relaxation, and study needs of residents and students in

3.1.3 Environmental Impact

Negative impact

Higher Energy Consumption:

Air Conditioning: Resting boxes often require air conditioning to ensure customer comfort This can significantly increase electricity consumption, especially if the establishment has many boxes and operates continuously throughout the day.Lighting System: Each box typically has its own separate lighting system, which may require high-wattage bulbs or various lighting devices This can increase electricity consumption, particularly if energy-inefficient bulbs are used

Noise and Air Pollution: Creating a parking demand: An establishment with many resting boxes can attract a large number of customers, leading to high parking demands Increased vehicles can contribute to air pollution from emissions and noise pollution, especially in residential areas

Waste from Service Use in Boxes: Personal waste: Since customers may use the boxesfor extended periods, this can lead to an increase in waste, from food packaging to personal trash If the establishment lacks proper waste collection and disposal measures, this situation can result in environmental pollution

Solutions to Mitigate Negative Impact

Use of Renewable Energy: Install a solar energy system to provide electricity for the establishment, especially for the boxes, helping to reduce carbon emissions and energy consumption from non-renewable sources

Effective Waste Management: Implement a strict waste management policy, such as collecting and sorting waste, encouraging customers to minimize the use of single-use plastic products, and providing eco-friendly options like reusable cups or paper straws

3.1.4 Design

The coffee shop is planned to be built on a 200m² area with one ground floor and threeupper floors, along with a parking lot The ground floor will serve as the ordering areaand seating space for customers who do not use the boxes but still wish to enjoy beverage services The first and second floors will be dedicated to quiet spaces suitable for customers seeking relaxation or a tranquil place to work The third floor will feature a unique combination suitable for couples or groups of friends, equipped with electronic devices such as PS5 gaming consoles and TVs This floor will be designed to be more spacious to accommodate up to five people per box

Figure 5 Illustration of the ground floor coffee space

Figure 6 Illustration of the coffee space on the 1st and 2nd floors

Figure 7 Illustration of the coffee space on the 3rd floor

3.2 Selection of Technology Techniques

3.2.1 Group of brewing tools

c Juice Makers

Product Name: Máy ép nhanh Promax PA-J800

Quantity: 3Selling Price: 5,300,000 VND

Serving tools group

a Cups (Glasses)

Coffee Cups, Smoothie Cups

Cappuccino Cups

Takeaway Cups

b Specialized Serving Tray

Quantity: 30Selling Price: 40,000 VND

3.2.2 Kitchenware group

a Refrigerator

Product Name: Aqua Inverter Refrigerator 456 Liters AQR-M525XA(FB)Quantity: 3

Selling Price: 12,500,000 VND

b Air Conditioner

Product Name: Electrolux Inverter Air Conditioner ESV09CRO-D1 (1.0HP)

Quantity: 9Selling Price: 10,500,000 VND

c Chiller

Product Name: SANAKY 200 Liter VH-258K Chiller

Quantity: 2Selling Price: 7,000,000 VND

d Freezers

Tên: Sanaky VH-2299HY2 Freezer

Quantity: 2

Selling Price: 6,500,000 VND

e Product display cabinets

Product Name: High-Quality Wooden Display Cabinet

Quantity: 15 setsSelling Price: 4,000,000 VND

Short Table and Chair Sets

Product Name: Small Wooden Dining Set (1 Table and

4 Chairs)Quantity: 10 setsSelling Price: 1,040,000 VND

Furniture sets

Product Name: Furniture setsQuantity: 20 sets

Selling Price:3,000,000 VND

a Display Shelves

Product Name: Furniture setsQuantity: 20 sets

Selling Price: 3,000,000 VND

b PS5 Game Consoles

Product Name: PS5 Game ConsolesQuantity: 20 sets

Selling Price: 12,000,000 VND

c Tivis

Product Name: Sony 4K 50-Inch TV KD-50X80K

Quantity: 16 unitsSelling Price: 8,600,000 VND

3.2.1.5 Management device group

a Cash Register

Produce Name: POS Machine E715VFD

Quantity: 1Selling Price: 15,000,000 VND

b Cash Drawer

Tên: Cash Drawer Maken MK 410Quantity: 1

Selling Price: 1,000,000 VN

Product Name: Receipt Printer Xprinter 58IIH

XP-Quantity: 2Selling Price: 1,500,000 VND

d Camera

Product Name: Camera Rifatron BLR2-A202

Quantity: 16Selling Price: 4,500,000 VND

e Speaker

Product Name: SoundMax A-2140 Computer Speaker (with Bluetooth)Quantity: 3

Đơn giá: 7,000,000 VN

Total Cost of Purchasing Equipment and Tools

Machinery and equipment

Group of brewing tools

Service tools group

1 Table and Chair Sets 15 4.000.000 60.000.000

Management device group

Development and construction costs

Item Quantity Unit Price Total

Interest payment during construction period

1

Construction Insurance

Costs 1 100.000.000 100.000.000

Initial working capital

1 Initial working capital 1 500.000.000 500.000.000