HO CHI MINH UNIVERSITY OF BANKING BANKING DEPARTMENT ------------------------------------------- PROJECT APPRAISAL Topic: DEVELOPMENT OF A BUSINESS PLAN FOR THE OPENING OF THE BOX COFFE SHOP “COFFEE BOXED BLISS” Student: Class: BAF311_2411_10_TA03 Supervisor: Dr. Nguyen Anh Tu Ho Chi Minh City, October 2024 1 | Page TABLBE OF CONTENTS Chapter I: PROJECT INTRODUCTION 5 1.3 Project Alignment 6 Chapter II: MARKET ANALYSIS 7 2.1 Demand for space. Supply Situation of the Project 8 2.3 Target Market for the project 8 2.2 Online marketing 11 Chapter III: TECHNICAL ANALYSIS, TECHNOLOGY AND INPUT FACTORS 12 3.1 Menu, site selection and environmental impact analysis 12 3. Selection of Technology Techniques 21 3.1 Group of brewing tools 21 3.
Energy 33 Chapter IV: PROJECT MANAGEMENT 35 4.2 Effectiveness and prospects 36 4.1 Organizational Structure 37 Chapter V: FINANCIAL ANALYSIS 39 5.1 Assumptions in estimation 39 5.2 Total capital investment 40 5. Depreciation plan (depreciation plan) 45 2 | Page 5.1 Original values of construction 45 5.2 Original values of machinery & equipments 47 5.4 Revenue and selling expense estimates 48 5.5 Loan proposal, loan schedule, and repayment 51 5.2 Loan schedule and repayment 52 5.8 Cash flow forecast from different perspectives 56 Chapter VI: RISK ANALYSIS 64 6.2 Internal Risks 64 Chapter VII: ECONOMY AND SOCIETY 65 7.2 Social Analysis 66 Conclusion: 67 3 | Page ABBREVIATION & SYMBOL MEANING ADCF Accumulated Discounted Cash Flow AEPV 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 4 | Page 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 a common 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 Target Customers: Students,Office workers,Young adults 5 | Page 1.2 Project goals Total Investment Cost: 2.000VND Average Annual Revenue: 5.000VND Payback Period: 2.99 Net Present Value (NPV):1.000VND 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 2025.3 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.
6 | Page 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 saturated compared 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 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 are an ideal choice for those who want a change of environment while maintaining 7 | Page their privacy. In turn, fosters customer trust and peace of mind when choosing this location. 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.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. 8 | Page Characteristics and Awareness: They have a desire to experience new trends and seek comfortable 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.
Conclusion Thus, the primary target customers for the café include a mix of students, office workers, and entrepreneurs, creating a diverse yet focused customer base.4 Competitive Ability In the current market, the F&B industry, particularly the coffee business, is quite popular and diverse. The variety of formats allows customers many choices when using services. Within the coffee sector, there are even niche markets such as book coffee , nap coffee, art coffee, craft coffee, and petcoffee. Although they all fall under 9 | Page 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.M Coffee Capsule, and Blue Lagoon. Through research and surveys of these cafés, we are confident in our ability to design a modern yet cozy space with trendy details, fully equipped amenities, and professionally trained staff to carve out a place in customers' hearts.
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 to their tastes. We can craft a distinctive story for the project to create a connection with customers across various media channels. 10 | Page 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 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.