starting and operating a coffee shop

starting and operating a coffee shop

The business concept will be based on starting and operating a coffee shop which will also offer other wide range of services. Drinks will be one aspect of the product portfolio for the business. The Coffee Shop will provide the Arabic coffee and other Middle Eastern hot beverages. The business will also offer desserts in its product portfolio. Essentially, the business will focus on offering Middle Eastern desserts. Entertainment will also be part of the business. The business will have a musician who will be playing oud at the premise. But, the musician will be visiting the premise on weekends to entertain people.

The business will be located in Los Angeles in the United States of America. Hence, the Coffee Shop will be operating within the Los Angeles market. In this place, the management will buy a new shop and subject it to some modifications and changes to suit the needs and demands of the business. Therefore, the newly acquired shop will undergo some re-designing and restructuring to meet the layout needs of the business. Partitioning is one aspect of restructuring which will take place in the shop. As a result, a space for the entertainer will be created and area for serving clients.

The business will operate under the food and beverage sector within the hospitality industry. The hospitality industry is one of the biggest fields with a wide range of sectors and sub-industries, which mainly offer services to clients. It is also vital to note that the hospitality industry has grown considerably, and this trend is continuing. With this trend, the industry is projected to at the rate of 8% come 2022. However, the food and beverage sector appears to be the biggest sub-industry with the highest market share. The food and beverage sector offers distinct services which include accommodation, foods and drinks, and entertainment amenities that are provided within its facilities.

However, the business will primarily deal with the provision of drinks and snacks, which will be offered in the form of desserts.

The food and beverage industry in Los Angeles is unique in various ways. However, this industry falls under the bigger California market. In 2012, the food and beverage sector accounted for more than 25 billion US dollars in value-added activities. During this time, the industry had offered about 760,000 jobs to people. More than one-third of the total restaurants in California are located in Los Angeles County. Los Angeles is estimated to have about 142 food and other related companies operating within the industry. Therefore, this city has the highest number of restaurants, inns, and hotels as well as clientele base. The entire hospitality industry is expected to grow at a rate of 2.35 every year. This trend is projected to continue this way even in the future.

The food and beverage sector or industry is one of the segments which appear to be stable throughout the year. Restaurants, inns, and hotels associated with this industry operate in nearly all the seasons throughout the year. These firms and organizations mainly offer various types of food, drinks, and other uniquely prepared meals. These products are an essential part of survival, and this is the reason as to why the industry is not highly affected by seasonality. However, different periods such as when students are in session and various activities are taking part in the city; the industry tend to peak. This is because there is a high number of clients.

The industry is not highly affected by technology since most of the services like availing meals and drinks are done manually by people. However, the use of modern tech strategies like Point of Sale is vital for managing businesses.

Socio-cultural forces affect the industry significantly since business must operate within acceptable social norms. For instance, businesses must adhere to acceptable cuisines, codes, and relations with the clients.

A favourable economy makes people get desirable earnings and purchase products and services from the industry. Hence, the economic factor affects the industry significantly.

Political stability facilitates a favourable atmosphere for businesses, and thus, it is a vital factor.

Environmental forces such as pollution and waste regulations are also paramount in doing business in the sector.

Legal factors are also vital since they dictate how to conduct businesses and thus opening new firms is a procedural and tedious process.

Knowledge of the market is important since it will help the management to know how to conduct business and thrive. A qualified team will also help to make the business thrive. This team will possess the right skills for success.