Strategic & Operational Plan

2020 - 2023

Gourmet Bean Australia

Executive Summary

Established in 2018, Gourmet Bean Australia is a caf chain based in Canberra that specialises in the gourmet coffee, breakfast and lunch. Currently the company focus is on the working demographics in and around the current caf locations.

Our vision to be the best caf chain in Australia drives everything we do from the friendly greeting we give to customers at our cafes to our supplier relationships and to our employees' professional development.

Vision:

To be the best caf chain in Australia.

Mission:

To provide high quality, delicious coffee products and excellent, reliable services to our customers and a price that is fair to the producers and the consumers.

Our values are:

Core values underpinning our activities are:

• Quality
• Innovation
• Leadership
• Respect
• Honesty and Reliability

Strategic Priorities

Key strategies

To be well led, high performing, profitable and accountable

• Ensure that all financial operations, performance indicators and results support the strategic policies
• Identify new and expand existing sources of revenue
• Achieve profits of at least 10% per annum.

Provide High quality exemplary products to the customers all over Canberra

• Increase Coffee sales by 20% over the next 3 years in the existing Canberra Cafs
• Establish 6 more cafs in Canberra during the period of the Strategic Plan targetinga range of demographics.

2020 - 2021 : Gungahlin and Tuggeranong

2021 - 2022 : Woden and Kingston

2022 - 2023 - Belocnnen and Weston

• Research and plan for the launch of new innovative, environmentally friendly initiatives

Continue building deeper customer relationships

Customer-centred practice, with a focus on meeting their total needs for a high quality home

Strengthen the skills of our people, to better support customers

• Drive innovation to better meet customer demands
• Convert the consumers to coffee Connoisseurs

Attract, engage and develop the best staff

Continuing the drive to a customer centred, high performance workforce and culture

Strengthening the skills of our people, to better support customer needs

Empowering innovation and responsiveness to change

• Continuing to enhance the diversity of our workforce.

COMPANY DESCRIPTION

Gourmet Bean is currently located in at 2 places in Canberra City.

1.Canberra city Centre

2.Majura Park

The caf serves gourmet coffees, espresso and drip coffee, lattes, and smoothies. The simple pastry offerings vary with seasonality but the primary line are muffins, breads, cookies, scones, and rolls. All pastries are supplied daily by a local bakery - Baker's Hut.

The caf is owned and operated by Mr. John Smith and his wife Mrs. Lisa Smith, a veteran restauranteur with several years' experience running and managing chain restaurants. The caf is open for business

Monday - Friday 7am to 4pm ,

Weekends - 8am to 3 pm .

CUSTOMER PROFILE

Currently at the locations that the company is operating in the prime target customers are the working population in and around the Canberra City Centre and the Majura Park.

The company targets the customers with moderate to high disposable income.

The customers demand high paced service with high quality and comfort food.

The Gourmet Bean utilizes a focus strategy on its market. The company would like to specifically target the 3 primary segments.

Working population

The caf currently attracts regular customers (weekly or more) -by providing free WIFI services, quick coffee services, working lunches and light meals.

Senior Market (age 45+)

The Gourmet Bean will target this market simply by its well selected location. Although this demographic group could readily drive downtown, they prefer a local caf to unwind and relax and historically become some of the most loyal patrons.

Young Families

The third targeted markets, younger families, often find that coffeehouse are not 'kid' friendly. The company has long term plans to create a combination coffee shop / play area so that parents and caregivers will have a place to meet with other adults while the children can enjoy the bounce houses, slides and indoor playground equipment.

Unique Selling Proposition (USP)

The Gourmet Bean truly stands out from other chains and franchises in the vicinity.

The USP lies in the prime location, cosier atmosphere combined with premium coffees served by knowledgeable baristas providing so much energy and enthusiasm for the products they sell.

Our Operational Objectives

The following table identifies the operational objectives we plan to achieve in pursuit of our strategic objectives.

Date

Priorities

Key performance indicator

June 20

Employ at least 2 permanent site staff for the current location

Site staff in place

July 20

Commence the search for a suitable location for the caf in Gungahlin and Tuggeranong

Suitable location has been finalised for the same

Sept 20

Recruitment for the Gungahlin and Tuggeranong Cafe

Site Staff in place

November 20

Commence the work on setting up the 2 cafs

Presence in Gungahlin and Tuggeranong established

December 20

Staff performance reviews

All staff performance reviews conducted

2021

Feb 20

Plan the Grand opening of the two cafes

Caf opening done.

March 20

Run promotions and offers

Increase the daily foot traffic in the cafe

April 20

Analyse workforce diversity

Number of diverse workforce continuing to increase

May 20

Review other potential markets

Potential markets explored

MARKET CHARACTERISTICS AND CONDITIONS

The Australian and New Zealand Standard Industrial Classification (ANZSIC) categorises the Hospitality sector as encompassing businesses that provide accommodation, food and beverages such as cafes, restaurants and takeaway food services; pubs, taverns and bars; hotels, motels and other accommodation and hospitality clubs.

Key Hospitality occupations include:

• Cafe and Restaurant Managers
• Retail Managers
• Bar Attendants and Baristas
• Cafe Workers
• Waiters
• Sales Assistants
• Receptionists
• Hotel and Motel Managers
• Hotel Service Managers.

This sector has been growing steadily over the past 5 years with the growth attributed to factors such as a growing 'foodie' culture, the popularity among many individuals to owning a hospitality business, population growth and an increase in consumer demand.

The food and beverage services workforce is made up of 777,300 workers, making it one of the largest employing sub-sectors in Australia. The Clubs industry alone employed 130,000 workers in 2015.

The statistics submitted by Statistica Research Department in April 2015 published the industry revenue of cafes and coffee shops in Australia from 2005/06 to 2014/15 with a forecast until 2019/20. The industry revenue was estimated to amount to approximately 5 billion Australian dollars by 2019/20, up from about 4.35 billion Australian dollars in 2014/15.

An integral part of the Australian tourism and hospitality industry, the number of cafes and coffee shops in Australia has steadily increased over the last few years and are predicted to reach nearly ten thousand businesses by financial year 2020.

Cafes and coffee shops took in just overeight billion Australian dollarsin revenue during the financial year 2017. Additionally, it was predicted that in the same year, thetotal value addedto the Australian economy was in the region of 1.5 billion Australian dollars. This was forecasted to increase by a small amount for the financial year 2019 to 2020.

Domestic consumption of coffeein Australia has steadily reduced from a peak of 1.79 million units during financial year 2016. The mostpopular type of coffeefrom cafes and coffee shops was latte, which accounted for 33 percent of all cups of coffee purchased during 2018, outselling other types by nine percent. Theaverage priceof a latte in the same year was 4.18 Australian dollars, making the latte the third most expensive coffee on average that could be purchased.

According to a statistic published by Christopher Hughes in 2020

Consumption of coffeein Australia has been steadily increasing in recent years. During the 2019 financial year, Australians consumed around 1.875 million sixty-kilogram bags of coffee. Whilst this remained at the same level as the previous year, there has been a steady upward trend since the 2014 financial year, with the only notable exception being 2017; during this year, consumption dipped to 1.765 million sixty-kilogram bags.

Although much of the hospitality industry is expected to see real growth in the coming 12 months, it is the cafe sectorthatshould experience the most.

If you are tocompare all the majorindustries of Australia - hospitality, manufacturing, engineering and mining - hospitality is the only one that is expected to see real growth in the coming years.

Globally it is expected that the hospitality industry will grow from $7.2 trillion to over $12 trillion.

The global hospitality industry has a number of challenges and opportunities according toa recent report by Global hospitality Perspectives and Oxford Economics.A number of factors are expected to affect outcomes:

Countries' decisions with respect to carbon reduction, climate change, waste disposal, clean technology and renewables.

Emerging economies in general are expecting large population increases in the coming decade creating demand for hospitality activity whereas population growth in developed countries will be flat.

Relatively speaking developing countries are expected to grow at 2 to 3% per year and emerging countries at 6 to 7% per year.

Emerging countries currently represent about 35% of global hospitality output and this is expected to increase to 55% by 2020.

The key area of hospitality growth in emerging countries will be infrastructure: transport, energy, social infrastructure, schools, hospitals, government accommodation, water, defence infrastructure and natural resources. These projects are expected to increase by 130% in developing countries by 2020 but by only 20% in developed countries.

Amongst developed countries North America is will see the highest growth rate mostly in hospitality which will grow at double digits annually. South and Central America, the Middle East and Africa will grow moderately with Western Europe seeing the lowest growth.

Eastern Europe and Russia are expected to expand hospitality by 100% primarily led by Poland and Russia by 2020.

China is expected to become the world's leading hospitality market by 2020 with a hospitality output of $2.5 trillion.

Situation Analysis

Strengths

Weaknesses

Value and quality

Strong management

Customer loyalty

Friendly organisational culture

Level of available finance for investment

Single ownership

Current focus only on the "working population" demographic

High turnover of casual workforce

Lack of diversity in workforce

Opportunities

Threats

Growth in Hospitality Sector

Potential demand for gourmet coffee in other parts of Canberra

Innovation in Menu and services

Targeting a different demographics

Environmental effects

Possible adverse effects of government policy formulation

High level of competition

Low price competitors

Failing to satisfy clients demands

Marketing Strategies

Our marketing strategies aim to:

• Build trust
• Generate leads now
• Help to convert those leads quickly
• Form the basis of ongoing relationships and referrals.

We plan to develop our market share by:

Improving our marketing and advertising

Continually improving the quality of service given to clients.

Maintaining effective communication channels with all stakeholders to ascertain industry requirements and then develop products and manage services accordingly

Continually improving communication channels with all our stakeholders, ensuring a flow of timely and accurate information to facilitate effective planning and decision making

Targeting identified growth markets with planned, market appropriate campaigns employing a variety of promotional strategies and advertising mediums

Offering attractive loyalty offers to our clients

Continually improving the skills, knowledge and effectiveness of Gourmet Bean Australia through our commitment to training and development

Regularly reviewing the effectiveness of all our operations and making improvements when and where necessary

Marketing Mix

1.Products

Major products include beverages and food.

Beverages include

Brewed coffee and tea;

Espresso drinks (cappuccinos, caf lattes);

Cold blended beverages;

Bottled water;

Soft drinks;

Smoothie line including wild berry, strawberry, peach, mango and lemonade

Fresh Juices of the day

Food includes

Pastries, bakery items, desserts, sandwiches, and candy.

Pastries obtained with an outside supplier, freshly made and delivered daily.

Breakfast bowls with healthy options.

Sandwiches, wraps and salads

2.Positioning Statement

The Gourmet Bean is a gourmet coffee lover's gem. It is truly one of a kind coffee house offering outstanding gourmet coffees and blends, served by enthusiastic and knowledgeable baristas, in a warm, relaxed environment. It is the place to go to visit with friends, colleagues or cozy up in a quiet corner with a good book either from the library or from one of the patron's personal E-Books.

3.Pricing Strategy

The Gourmet Bean primarily utilizes competition based pricing. The caf utilizes coupons and discounts. The caf also offers a yearly VIP membership to avail discounts and offers throughout the year. This is one of the strategies of the company to target the loyalty and frequent customer base.

4.Promotion and Advertising Strategy

Online Advertising - The Gourmet Bean advertises regularly on popular social media sites, such as Facebook.

Web Site - The Gourmet Bean currently has a simple Web site, which provides basic information about the business, the menu, and links to the presence on the aforementioned social media channels.

Radio Advertising - During the first six months of operation in the new locations, and during the busy holiday shopping season, the business will advertise on local radio station