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    A BUSINESS PROPOSAL ON COFFEE HOUSE

    & JUICE CORNER

    A project report submitted to IIMT, Greater Noida as a fulfillment of thefull time Postgraduate Diploma in Business Management program.

    Submitted to: Submitted by:

    Dr. D.K.Garg (Chairman Sir) ANURAG SHUKLA

    IIMT, Greater Noida ENR-14005

    SANJEEV KUMAR

    ENR- 14046

    COURSE-PGDBM(MM)

    Ishan Institute of Management & technology

    I A, Knowledge Park-I, Greater Noida, Distt. G.B.Nagar (U.P)

    Website: www.ishanfamily.com, Email: [email protected]

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    DECLARATION

    The analytical survey on product identification and customer relation on Coffee house &

    Juice corner is the original project done in accordance with the PGDM program of Ishan

    Istitute of Management & Technology, Greater Noida. This is the Property of the Institute

    and use of this report without prior permission of the Institute will be considered illegal and

    actionable. This project is the original work done by us.

    DATE: ANURAGSHUKLA

    PLACE: ENR-14005

    SANJEEVKUMAR

    ENR-14046

    PGDBM(MM)

    (14TH BATCH)

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    TABLE OF CONTENTS

    1. Preamble2. Purpose of study3. The business4. The location5. Manpower requirement6. Machinery requirement7. Technical knowledge8. Plant layout9. Demand for our product10.Supply for raw material11.Sources of raw material12.Major competitors13.Break even analysis14.Why I am interested in this proposal15.Tax application16.Legal aspect17.Conclusion

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    CHAPTER-1

    PREAMBLE

    As a student of management, apart from theoretical studies we need to get a deeper insight

    into the practical aspects of those theories by working as a part of organization. Project is a

    way by which a student can apply his theoretical knowledge in practical field. Basically

    practical knowledge and theoretical knowledge have a very broad difference. So this business

    proposal has high importance as to know, how both the aspects are applied together.

    The study of management acquires most crucial position in the business administration. Inorder to be successful, it is necessary to give priority to the management in an organization.

    But it cant be denied that the study of management would be more educational, materialistic

    and even more interesting, if it is to be paired with the work in organization as an employee.

    The business proposal session helps to get details about the working process in the

    organization. It has helped me to know about the organizational management and discipline,

    which has its own importance. The business proposal is going to be a life long experience.

    Management in India is heading towards a better profession as compared to other

    professions. The demand for professional managers is increasing day by day. To achieve

    profession competence, manager ought to be fully occupied with theory and practical

    exposure of management. A comprehensive understanding of the principle will increases

    their decision-making ability and sharpens their tools for this purpose.

    Vision

    Make people energetic and peaceful

    Mission

    To satisfy the customer by providing the qualitative coffee and fresh juice at a reasonable

    price and provide them best service

    Values of the company

    Integrity, excellence, respect for individual, credibility, trusteeship and agility.

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    CHAPTER-2

    PURPOSE OF STUDY

    The basic purpose of this study is to enhance our entrepreneurship skill and implement the

    knowledge whatever we have gained. And also it makes individual aware about the problems

    regarding the set up any business.

    So the planning of any business is very important for MBA students because it provides a

    platform to think over the business, plan location, consumer behaviour and business

    strategies.

    As the business environment is becoming increasingly more complex, accompanied by

    intensified competition, rapid advances in technology and most critically, rising churn, be it

    customer or employees, there is an unprecedented rise in corporate failures today. And, just

    as amazing as the increasing number of failures, is the fact that most of the Companies that

    attempt a recovery, also fail. Against this backdrop, it makes sense for companies to

    understand the reasons for their decline, in their performances, and find ways to avoid a

    potential bankruptcy situation.

    The Coffee house Business category contributes substantially to the GDP of the country.

    The issue is what are the reasons for sickness in this category and what is the role that the

    entrepreneur plays in the successful turnaround of ailing coffee houses. Can Innovation play

    an important role in nurturing these units back to their original glory?

    This paper aims to study the various strategies that have been used by the hotel sector in

    order to turn themselves from a sick organization to one of the topmost organization in their

    field. Opening a financially successful coffee house requires much more than simply having

    a good recipe. A potential coffee house owner has to first satisfy the myriad regulatory

    requirements of their State and City Governments. For example, if we are opening a coffee

    house in New Delhi, then he or she should require fulfilling the formalities of that particular

    state. Once a person has cooked up the idea of opening a coffee house, he or she should

    realize this, opening a coffee house is no form of retirement. Long hours and serious

    financial investment are required to make our coffee house succeed.

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    CHAPTER-3

    THE BUSINESS

    Name of the business

    As we know that the effective name is very important to create a image in the mind of

    customer that is why we have selected Energia coffee house and juice corner.

    The company's goal is that of a multi-faceted success. Our first responsibility is to the

    financial well-being of the coffee house and juice corner. We will meet this goal while trying

    to consider;

    1) The effect of our products on the health and well being of our customers

    2) The impact that our business practices and choices will have on the environment, and

    3) The high quality of attitude, fairness, understanding, and generosity between

    management, staff, customers, and vendors. Awareness of all these factors and the

    responsible actions that result will give our efforts a sense of purpose and meaning beyond

    our basic financial goals.

    Development & Status

    The founders are Mr. Anurag Shukla and Mr. Sanjeev Kumar.There is a total of Rs. 45,

    00,000, Which included Rs. 15,00,000 borrowed money and Rs. 15,00,000 individually as a

    start-up costs.

    Business Analysis

    Although the coffee house and juice corner is very competitive, the lifestyle changes created

    by modern living continue to fuel its steady growth. There is no so much time for the people

    to get energetic and refreshed in home so more and more people have less time, resources,

    and ability to cook for themselves.

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    In 1988 The National restaurant Association released the Foodservice Industry 2000 report

    that forecasted how the industry might look in the year 2000. Some highlights from the

    panel's findings:

    "Consumers will spend a greater proportion of their food dollar away from home. Independent operators and entrepreneurs will be the main source of new coffee house

    concepts.

    Nutritional concerns will be critical at all types of foodservice operations, and foodflavors will be important.

    Environmental concerns will receive increased attention."

    Products & Related Services

    Energia Coffee house & juice corner will be offering coffee and juice with a distinctive

    image at a reasonable price.

    Production

    we are going to provide fresh juice and tasteful coffee which would refresh to the customer,

    so we concentrate about the customer satisfaction so we use fresh milk and fruits.

    Service

    There will be quick and effective service of coffee and juice.

    Future Opportunities

    Now a days everybody woks and there are much competition that is why everybody has to

    roam here and there so they feel tired so at such situation everyone wants to get refreshed andnormally they prefer juice or coffee ..

    The Target Market

    The market for Energia coffee house & juice corner's products cover a large area of diverse

    and densely populated groups. Although it will be located in a downtown urban setting, it is

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    an area where people travel to eat out and one that is also frequented by tourists. It is also an

    area known for and catering to the demographic group we are targeting.

    The food concept and product image of Energia coffee house & juice corner will attract 3

    different customer profiles-

    The professional people-Most of the professional people often wants to have the coffee with their peers and

    time they also go for having the juice ,so this is good combination which stimulate the

    people to have something, either coffee or juice.

    The students

    As we know that in this time many students want to adapt all those thing whatever

    available in the market also usually they want to go to coffee house along with their

    friends and interested in having the small party.

    The peace conscious person of any age or sexAt this segment we target to those people who wants to some peace environment

    because the time has become very fast and everybody has to come out from their

    home so if they are having some spare time they want to utilize that time peacefully.

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    CHATER-4

    LOCATION

    If we are having the business plan then the success of that business plan is very much depend

    upon the location of that business, means where we are going to establish our business, so we

    have selected civil line, Allahabad for opening our coffee house. There are some reasons to

    open coffeehouse & juice-corner in the civil line-

    Nature of area

    As we have selected civil line for our business because it is commercial area where there are

    many offices and other businesses has being established so it would increase the number of

    customer.

    The condition of traffic:

    As we know that it has been covered by the commercial people so here the condition of

    traffic will be much more hire than the other places that is why we can a bit promote our

    business so that traffic can be attracted. Foot and motor traffic counts and surveys are an

    important start. We can get traffic counts from a real estate firm, demographic firm, planning

    commission, or highway department. We will want to pick a location that has high traffic

    counts at the peak times we serve our coffee and juice.

    Visibility:

    Visibility is very important for any kind of business because it is only way to make the

    people see your shop, if potential customers can't see we, they may not stop that is why it

    must be easily visible.

    Readily Accessible Parking:

    This is a must, customers need to be able to find a place to park or they may consider it to be

    more hassle than it's worth, especially if they are in a hurry.

    Huge population

    It means where we are going to establish our business there surrounding must be well

    populated because it affect the business and increase the number of sales, so as we have

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    chosen civil line because the surrounding of civil line is much more populated it has been

    covered by the police line, high court, medical college, many coaching. So there is a huge

    scope to have the potential customer.

    Accessibility-

    Customer always want to have a such place where they can easily reach and these thing also

    attract the expected customer ,means who does not know about the shop but when they see

    ,they decide to go there and have the experience. Highly congested traffic areas may also

    discourage them.

    Value of money-

    This is the common phenomenon of the customer that they want to get the maximum value of

    their money so the main focus of our business is to provide the maximum output to the

    customer so that they can be satisfied.

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    CHAPTER-5

    MAN POWER REQUIREMENT

    Manager

    We are going to open a coffee house & juice corner, so there will be a manager who will be

    care-taker and who will be having a effective communication skill and having the knowledge

    of Hindi as well as English language. And he will be also a computer operator who will take

    the bill and maintains the cash accounts The manager's greatest responsibility is to make sure

    that customers have a pleasurable dining experience. Our manager can either make or break

    our business, so while selecting a manager we have to be very careful.

    Responsibilities - Be able to open and close the coffee house , manage the cash register,

    track inventory, hiring, training and firing staff; and creating work schedules and monitoring

    their performance, develop marketing strategies, supervise personnel and schedule our staff,

    resolving customers' complaints and ensuring health and safety regulations are followed,

    keeping employee records for hours and wages, preparing payroll and filling out paperwork

    for taxes, wages, employment insurance,etc., and tallying cash and charge receipts and

    balancing them against the record of sales.

    Cook

    A small coffee house & juice corner requires Seven cooks to ready the coffee and juice and

    able to fulfill the order very quickly.

    WaiterA small coffee house & juice corner requires 3 waiters which is enough to handle the

    responsibilities and to provide services to the customers. The main purpose of any coffee

    house is the customer satisfaction and to fulfill this purpose waiter plays a vital role.

    Cleaner

    A coffee house & juice corner requires 2 cleaners who is responsible of cleaning tables, floor

    and the glasses as well as cup.

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    CHAPTER-6

    MACHINERY REQUIREMENT

    As we are going to establish the small coffee house & juice corner so there will not be

    needed more machinery and equipments in this business.

    Refrigerator

    The refrigerator is the most critical piece of coffee house equipment we can ever buy.

    Keeping milk and fruits cold and fresh it is very essential. It is essential for milk safety and

    quality and the extreme importance for fruits freshness and ice creams. Invest in a

    refrigerator that will show the temperature accurately on the outside of the equipment. Find a

    refrigerator that is tough and built to last, with proper usage.

    Mixer-grander

    Mixer grander is very necessary for the juice so we will be having the qualitative mixer-

    grander which will provide the quantitative as well as qualitative juice and reduce the

    wastage.

    Coffee machine

    Coffee machine is also for preparing the coffee and it will be qualitative machine so that it

    can make it quickly and tasty.

    Dish washer

    Dish washer will be also there so that the glasses and cups can be cleaned well and quickly.

    Dining equipments-

    Tables, Chairs, Glasses, Cups

    Computer-

    Computer is also very necessary to keeping the cash book and all accounts so that it could be

    easily evaluate and have the idea about the total revenue.

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    CHAPTER-7

    TECHNICAL KNOW HOW

    Banana shake

    Banana shake is the type of juice which is prepared with the composition of banana, milk,

    ice, sugar and the main thing is how you are going to prepare it because everybody has a

    mixer and they can put all these things in jar but in which proportion we have to put these all

    it must be considered very carefully and after mixing all these thing we add some cherry,

    cream and coco-nut mixer and then serve it.

    Mango shake

    Mango shakes also much acceptable juice so there is huge customer group for the mango

    shake so while preparing this it must be considered about the proportion of mango, milk, ice

    and sugar. And the mango should be fresh .

    Coffee

    As we are focusing on coffee and juice so there is much scope for coffee but while preparing

    the coffee the composition of hot water, coffee, milk should be very accurate because this is

    the primary task of our business and in only help to create a image in the mind set of the

    customer and it would be useful to increase the customer group.

    Cleaning & Maintenance

    Clean with mild detergent and brush after each use. Pre soak if necessary. Water, waste and

    scraps are easily removed into a receiving pan for disposal.

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    CHAPTER-8

    PLANT LAYOUT

    The amount of money we will have to spend will of course depend on our budget, whether

    we are leasing or buying (leases would have to be long term before spending too much

    money), what we want to achieve and how much renovation the building needs.

    The amount of space we will need in most cases is approximately 800 to 1,500 square feet

    depending on our concept. The specific layout areas listed below will also depend on our

    concept.

    Customer Service Area

    This area is located at the entrance and would include:

    1. A hostess station, usually a podium with an area to store menus and a guest or reservation

    ledger.

    2.Cashier's station (could contain cash register, bakery display cast, etc).

    3. A very comfortable, cozy seating area for waiting customers.

    Kitchen Area

    Sometimes referred to as the production area because this is where the food prep., cooking,

    baking, food storage sanitation, and dishwashing take place.

    We don't need too much space if it is efficiently arranged. When our wait staffs present an

    order, the order should enter an assembly line beginning with the raw materials and ending

    with the finished product..

    The main areas are:

    1. Coffee prep For making the coffee we need to have a small area where it can be prepared.

    2. Cooking Station

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    This is the cooks work area. Prep tables, steam tables, fryers, cooking range

    with griddle top, refrigerator placed under prep and steam tables, freezer,

    drink dispensers, ice bin, broiler, exhaust fans, utensils, serving plates, etc. go

    in this space.

    3. Dishwashing Close to the cooking area so that the pots and pans can be easily reached.

    Most health departments require separate sinks for washing and sanitizing

    pots, pans and dishes that need to be washed.

    4. Storage area We will need a freezer, where the milk, cream and the ice can be stored.

    5. Office This area would be for we desk, phones, office equipment, records, etc.

    6. Personal staff area A place to put their personal items, coats, purses, etc.

    7. Dining This area would include customer seating (usually 12 sq. ft. per customer) and

    wait stations.

    8.

    Juice prep

    Thos area would cover the place where we prepare the juice.

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    CHAPTER-9

    DEMAND FOR THE PRODUCT

    As far as our self is concern, we think there are huge potential in this business. People are

    looking for a change now a day. After the busy schedule of their work they want to go to

    such a place where the people can get comfort and relax. Our coffee house would be of that

    king where they can feel like heave and will be able to find peace.

    Apart from that we have such a variety of juice like mango shake, banana shake and

    pomegranate juice, where they can select of their own interest.

    Now the festival season is coming. So we are ready to celebrate with our customer. And this

    is not only related to the festivals but also it is for the daily usages and also there is much

    more scope for this business just because of the many institutions , corporate offices and

    parking slot so there is a much scope for potential customer.

    The hospitality industryconsists of companies within the food services, accommodations,

    recreation, and entertainment sectors.

    The hospitality industry is a several billion dollar industry that mostly depends on the

    availability of leisure time and disposable income. A hospitality unit such as a coffee house,

    hotel, or even an amusement park consists of multiple groups such as facility maintenance,

    direct operations (servers, housekeepers, porters, kitchen workers, bartenders, etc.),

    management, marketing, and human resources.

    Usage rate is an important variable for the hospitality industry. Just as a factory owner would

    wish to have his or her productive asset in use as much as possible (as opposed to having to

    pay fixed costs while the factory isn't producing), so do coffee houses, hotels, and theme

    parks seek to maximize the number of customers they "process".

    In viewing various industries, "barriers to entry" by newcomers and competitive advantages

    between current players are very important. Among other things, hospitality industry players

    find advantage in old classics (location), initial and ongoing investment support (reflected in

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    the material upkeep of facilities and the luxuries located therein), and particular themes

    adopted by the marketing arm of the organization in question (such as a coffee house called

    the 51st fighter group that has a WW2 theme in music and other environmental aspects).

    Very important is also the characteristics of the personnel working in direct contact with the

    customers. The authenticity, professionalism, and actual concern for the happiness and well-

    being of the customers that is communicated by successful organizations is a clear

    competitive advantage.

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    CHAPTER-10

    SUPPLY OF MATERIAL

    Our coffee house & juice corner is taking care of good coffee and healthiness juice.So, that

    the people who are coming first time will come again and again. To make the purity of the

    product these are the places from where we will take the product.

    We will supply our finished goods like coffee and juice in our place where we have

    established our business. So we have set up our business in civil line , Allahabad

    Address- Energia coffee house & juice corner, M.G. marg , civil line , Allahabad

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    CHAPTER-11

    SOURCES OF RAW MATERIAL

    Our coffee house & juice corner is taking care of good coffee and healthiness juice.So, that

    the people who are coming first time will come again and again. To make the purity of the

    product these are the places from where we will take the product.

    For the fruits

    (1)Fruits market, medical crossing , Allahabad (at the front of akshaya clinic andmedical college )

    (2)Fruits market , chauk , Allahabad(3)Fruits & vegetable market , Jasara , Allahabad(Near railway crossing , Jasara)

    For the other raw material

    (1)Subhash general stores, near Jeetlal crossing , Naini , Allahabad

    (2)Allahabad dugdh utpadak sahkari sangh ltd (Parag dairy), Allahabad

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    CHAPTER-12

    MAJOR COMPETITORS

    Under this business there are numerous coffee house & Juice corner which can give us strong

    competition. Because they are already in the market In spit of this we know we can give them

    strong competition and can generate the more revenue.

    Some of the major competitors are:

    (1)Coffee house , Civil line , Allahadad(2)Mcdonald , civil line , Allahabad(3)Samhiyana , Civil line , Allahabad(4)Shyam juice corner , Civil line (Near Bus stand,Civil line) , Allahabad(5)F.R.I.E.N.D , M . G. marg , Allahabad(6)The Mela , M.G. marg , Allahabad(7)Swagat , (at the back of Vishal Mega Mart) , Civil line , Allahabad(8)The Tamarind Tree (near hiralal Halwai) , Civil line , Allahabad(9)Platinum (near Priti nurshing home) , Civil line , Allahabad(10)Softy juice corner (M.G. marg) ,civil line, Allahabad

    (11)Tasty byte (P.D.Tondon road) , Allahabad

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    CHAPTER-13

    BREAK EVEN ANALYSIS

    The break-even pointfor a product is the point where total revenue received equals the total

    costs associated with the sale of the product (TR=TC). A break-even point is typically

    calculated in order for businesses to determine if it would be profitable to sell a proposed

    product, as opposed to attempting to modify an existing product instead so it can be made

    lucrative. Break even analysis can also be used to analyses the potential profitability of an

    expenditure in a sales-based business.

    Break even point (for output) = fixed cost / contribution per unit

    Contribution (p.u) = selling price (p.u) - variable cost (p.u)

    Break even point (for sales) = fixed cost / contribution (pu) * sp (pu)

    Here are the steps to take to determine break-even:

    1. Determine Variable Unit Costs.Determine the variable costs of producing one unit of our product. Variable costs are those

    costs associated with making the product or buying it wholesale. If we are making a

    product, we will need to know the cost of all the components that go into that product.

    2. Determine Fixed Costs

    Fixed costs are costs to keep our business operating, even if we didn't produce any

    products. To determine fixed costs, add up the cost of running your ur coffee house for one

    month. These costs would include rent or mortgage, utilities, insurance, salaries of non-

    production employees, and all other costs. In other words, fixed costs are all costs of your

    business except those directly related to producing our products.

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    3. Determine Unit Price

    Determine the unit price for your product. This price may change as you see where your

    break-even point is, but for now let's say your unit price is $25.00 per book.

    4. Determine Sales Volume and Unit Price

    The break-even point will change as the sales volume for this product and the unit price

    changes.

    5.Create an Excel Spreadsheet

    To do a break-even calculation, you will to construct or use an Excel spreadsheet. The

    spreadsheet will plot break-even for each level of sales and product price, and it will create

    a graph showing you break-even for each of these prices and sales volumes.

    To calculate our break even price we can simply put the formula and we can get the result.

    Breakeven Point = Fixed Costs/ (Unit Selling Price - Variable Costs)

    S.No. Particular Amount(Rs.)

    1 Sales 4891000

    2 Variables cost

    Raw materials 1968900

    Salaries & labour 726000Other 300000

    2994900

    3 Contribution 1896100

    4 Fix cost 1017000

    5 Break Even 53.63%

    RECEIPT & PAYMENT A/C

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    For the year ended 31-03 -2010

    RECEIPT AMOUNT(RS)

    PAYMANT AMOUNT(RS)

    Capital

    Anurag-1500000Sanjeev-1500000

    Term loan

    3000000

    1500000

    4500000

    Fix assest-

    Land

    Machine & Equipment

    Building

    Current assest-

    Raw material

    Wages and salaries

    Othear expances

    Cash in hand

    300000

    317000

    400000

    1968900

    726000

    300000

    488100

    4500000

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    CHAPTER-14

    WHY I AM INTERESTED IN THIS PROJECT

    A coffee house& juice cornerprepares and serves coffee and juice to customers. And as we

    know that there is an opportunity to grow up and also there is a low cost business which has

    no more risk, so being fresher we can easily go for the small and low budget business which

    can generate the more profit and it is a business of coffee and juice so it requires low cost

    machines and equipments.

    As there are lot of offices and institutions has been set up in that area so there is an

    opportunity to have the maximum number of potential customer.

    And also it has less consuming time because the people do not have much time to get

    refreshed and also the people are health conscious so they do not want to have the full died,

    they want to have the coffee or a glass of juice.

    As we see that there is some coffee house but there is no more shop of juice where people

    can have the juice and take the rest for a moment so it is a good combination of coffee and

    juice.

    This business need not to have the long hierarchy and much more investment so it is good for

    the new entrants businessman.

    Opening a financially successful coffee house requires much more than simply having a good

    coffee and juice. A potential coffee house owner has to first satisfy the myriad regulatory

    requirements of their State and City Governments. Energia coffee house & juice corner

    which is located at Civil line, Allahabad is a very nice decorated coffee house. This coffee

    house is though very new but it seems that it has studied the market well before opening of

    the coffee house.

    So for making it successful we have more emphasis on the service quality and the result of

    that service is tremendous. It is a 800-1500 sq ft floor area in which there are five waiters

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    working. The discipline of the waiter is very good; they wear the white clean uniform. The

    manager said that it effects a lot to the customers, because it is a sign of discipline and

    neatness.

    The waiters are well trained and know how to behave with customers. When the customers

    come it is the waiter who influences him a lot. The time management is also very important,

    the customers requirement must be fulfilled within a very short period of time, so that

    customers do not irritate.

    As we know that the main business timing for them is the evening time, because most of the

    people turn out in the evening. He said that among its customers mostly are the couples who

    visit there. The lighting system of the coffee house is good and they have also arranged for

    the soft music.

    Everybody has to much conscious while setting prices of coffee and juice because the

    competitors play a vital role. and neither high nor low price is accepted, because if you are

    charging low price the perception of the customers develop a negative sense they think that

    definitely the quality of that coffee or juice would be low that is why they are charging low

    price, in the opposite when the price is higher they sift to the other coffee houses. Thereforeit is very necessary to charge the economical price keeping in the mind of market

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    CHAPTER-15

    TAX APPLICATION

    Sales taxes imposed by state governments vary from state to state not only in rate, but also in

    what is subject to the tax. Many states (but not all) exclude food for home consumption from

    sales tax.

    However,coffee houses and juice corner are often not exempt from sales tax. Consequently,

    the coffee house must collect sales tax from the patrons.

    1. Transient Room Taxes

    There are three taxes for transient room as follows:

    (a) County Transient Room Tax Rate

    A tax imposed by all counties in Utah at the rate of 3 percent on the rental price of temporary

    lodging for a period of less than 30 days. Lodging accommodations include hotels, motels,

    motor courts, inns, tourist homes, campgrounds, and trailer court facilities. The tax is only

    imposed on the room charge and not on other charges relating to lodging. Rooms or suites

    not used for lodging, such as convention halls are not subject to the tax. Reported and paid on

    Form TC-61T, Transient Room Tax Return.

    (b) Municipality Transient Room Tax Rate

    A tax, not to exceed 1 percent, that is imposed by cities and towns for temporary lodging

    accommodations for a period of less than 30 days. Not all cities and towns impose this tax.

    (c) Additional Municipality Transient

    An additional municipality transient room tax of 1/2 percent that may be imposed by certain

    cities or towns that meet the conditions for qualification under Utah Code. Reported and paid

    on Form TC-61T, Transient Room Tax Return.

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    CHAPTER-16

    LEGAL ASPECT

    Registering name

    we will need to register our business name with our state. We can do this by contacting the

    Secretary of State's office and requesting the forms that we will need to fill out. Also, ask

    them how to search for state trade marks to see if any part of our name is registered. We may

    need to do this, also, in our county at our county clerk's office.

    Licenses and Permits

    There may be various licenses and permits required for our business. Business licensing

    requirements vary from city to city, county to county, and state to state. Some require all

    businesses to register, and they collect annual business licensing fees. Others don't require

    licenses or registration for unincorporated businesses unless we are doing business under a

    fictitious name.

    We may need a license or permit for occupancy, sanitation, fire safety and liquor. Our first

    step should be to check with our city or town clerk for any local requirements. We should

    also check on zoning and sign regulations that may apply to our business and location.

    Business Licenses -Some cities charge a percentage of our gross sales and some only charge

    a fee to operate our business in their city.

    A food license or permit- is required for the sale of any edible substance. Each state and/or

    county has their own fees and regulations. It may require inspections by our local health

    department. For a list of state health departments.

    Music license - Any business that plays copyrighted music whether our have live music,

    music on hold for our phone or play cds in our coffee house that is copyrighted without a

    license, can be fined accordingly.

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    Fire certificates - We may be required to be inspected by the fire department before we can

    open for business. Our local fire department should be able to inform us of the regulations we

    need to follow.

    Sellers permit

    This is also known as a resale permit; it allows we to avoid paying sales tax on merchandise

    when we purchase it from wholesalers; this permit is issued through the state entity that is

    responsible for taxes.

    Building permits and zoning permits

    These are regulated by our local city or county planning department. Call our local building

    department and ask them what is required.

    Laws and regulations are always changing, so it is important to join our local coffee house

    association and National Coffee house Association. It is also a good idea to become active in

    local government to keep informed about pending changes in our community.

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    CHAPTER-17

    CONCLUSION

    The coffee house business is small business where we need not to invest a huge amount, we

    can start this business with low budget and during this project we came to know about the

    problems which can arise during the start up such kind of business but overall it was a great

    experience to be an entrepreneur and fee the expected problems which is generally faced by

    the entrepreneur .so there is an opportunity of growth in this business but it takes dedication

    and a willingness to work long and hard to accomplish your dream. One needs to keep

    thinking of new ideas and innovate.

    The main cause for being failure in the coffee house business can be attributed to

    Mismanagement, Insensitivity to external factors, Inability to update the business losing sight

    of the basics. The steps that can be adopted for successful turnaround can be listed as

    follows:

    The main emphasis on the quality of the coffee and freshness of the juice. Focus on the less time to fulfil the order and give the effective service. There must be peaceful environment and emphasis on the personal relationship. Have discussions with customers. Contact the bank, tax authorities, and accountant. There must be cost cutting like- only essential staff and unnecessary cost cutting The emphasis on Innovation.

    So if we discuss about the benefits which we got from this project can be discuss as follows-

    (1)It was a great experience which is definitely going to help us in the future.(2)During this business we came to know about the challenges and problems which have

    been faced by an entrepreneur while running any business.

    (3)This project enables us to know about the opportunities which are surrounding usonly we have to just make it profitable.