EXECUTIVE SUMMARY
Statue of Duc de Richelieu in Odessa
The Café will reflect the commonality between two great seaports: Odessa and Vancouver. Three of the four owners come from Odessa in the Ukraine and Vancouver has quite a large Ukrainian population, which could well serve to augment the hotel guest segment.
Odessa is a fairly young city, having been created as late as the end of the 18th century. The Duke de Richelieu (once prime Minister of France) was one of the founders of the Port of Odessa, and was elected the first Governor of Odessa in 1803, so his name has been taken to honour his connection with the city, and to create a unique coffee-shop under the name Café De Richelieu. |
The creation of a small but elegant, family-owned coffee shop in distinguished surroundings, supporting organic and fair trade coffees. The decor will fit in with the hotel in which it is located - the Sandman Hotel Vancouver City Centre on West Georgia Street. |
VANCOUVER is a spectacular, year-round destination, one of Canada's principal tourist attractions (7 million visitors annually); the access point to Whistler, one of the world's leading ski resorts; recognized as the most beautiful city in the world, a city of water and glass, its modern, enterprising architecture following feng shui principles. It is a major seaport (the second largest in North America) and communications centre, connecting the mainland of British Columbia with Vancouver Island, the continents of Asia and Europe, as well as Alaska and Seattle, with a high volume international airport as well as bus, rail and two cruise-ship terminals, the latter bringing in over 3 million visitors annually. It ranks in the world's top 10 ports of call for luxury passenger ships. Resident population: 2 million.
The City Centre Sandman Hotel is very popular and enjoys a very high occupancy rate, being usually sold out during the summer months, located on the edge of downtown on the main thoroughfare, West Georgia Street. It has over 300 guest rooms. There are several neighboring major attractions: GM Place, BC Place Stadium, Vancouver Playhouse and the Queen Elizabeth Theatre.
The coffee shop will be located off the hotel foyer, next to the tour and car rental offices. Panorama windows look out on to Cambie Street, where there is spacious patio space for further development. A Transit bus stop is immediately opposite the entrance.
Services will be directed principally to hotel guests but there is significant foot traffic on Cambie Street which will augment the hotel market. |
The proprietors studied the history and philosophy of the Coffee-House back in 2001 and, recognizing the inherent profitability, compiled an administrative and operational manual for this business to ensure its viability in today's marketplace.
Regardless of competition, a properly organized casual/business meeting place where quality specialty coffees are offered will always be viable, especially if it contributes some uniqueness to the local scene.
Today, coffee drinking and the café experience are more popular than ever. The average Canadian is said to drink on average three cups of coffee per day. Coffeehouses have become once again the place to meet with friends or to simply enjoy a few moments of solitude in a comfortable atmosphere. Coffee consumption in North America is steadily increasing at a rate of 2.5% annually. The target consumer is not limited by race, creed, occupation or age. |
The product is limited to that of a typical coffee shop - coffee, especially espresso, and refreshments plus baked goods: no meals as such. |
Industry reports state that a 'good' coffee shop location should average 300-600 transactions daily at a minimum of $3 per transaction. In an excellent location this should be very much more. This should be rated as a 'very good' location but costing has very conservatively allowed initially for only 128 transactions daily (a bare minimum), so profitability has been deliberately very much underestimated. In the 5-year forecast this has been increased by just 10% annually from the second year onwards, which should be slightly more realistic in view of the exceptionally heavy pedestrian traffic experienced throughout the year, augmenting the hotel guest complement.
The cost of the standard industry sales level (300 transactions daily) is given as an alternative, which is a much more realistic view of what this location has to offer.
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The hotel has undertaken to carry out the necessary marketing to its customers.
For the moment no further marketing is anticipated as the market is effectively to a captive audience - hotel guests, although there is exposure on Cambie Street, which should bring in foot traffic throughout the day especially as the CBC Radio Canada Transit bus stop is immediately opposite the entrance.
Consideration might be given to creating a pseudo-newspaper on the opening day for distribution on Georgia and Robson Streets, the main thoroughfares.
Word of mouth is always the most effective marketing tool: in other words, satisfied customers. Equally effective, although strictly localized, is the distinctive aroma of freshly brewed coffee. The smell of coffee should escape from the premises - helped judiciously by a fan and vent by the entrance, if necessary. Coffee is addictive. |
There is little in the way of direct competition. Within the hotel building there is Moxie's Grill leading off the foyer and on the second floor Moxie's Classic Grill (Sports Bar) as well as the Shark Club Bar & Grill (nightclub) next door. Around the block there is a small Java Express coffee bar. We will not serve meals, but rather concentrate on the coffee market, plus whatever else goes well with coffee. |
The team is a family concern, consisting of an Economist, a psychologist and a business consultant, with the additional help from a well-known coffee consultant in Portland, Oregon. They will be joined in due course by a hotel catering graduate. They are all people-oriented, personable, tirelessly enthusiastic, of European extraction, speak four languages fluently between them, all have had a university education, a wealth of business knowledge, and have run businesses for many years. Known for adaptability and problem-solving, the future is constantly studied so that timely adaptation to change can be made.
Additional staff may be added as volume increases.
Mila Macleod is a psychologist who graduated with First Class Honours in Pedagogica and Psychology in 1976 from the university at Slavyansk, Ukraine. She is certified to teach psychology at university or college level and is well known for solving people problems. She opened and ran her own very successful Montessori-type school in Odessa for many years and previous to that assisted her first husband in his business as a very successful architect.
Dima Krushynyn is an Economist who has a Masters Degree in Finance/Economics (2005) and showed entrepreneurial spirit at a very early age.
Dr Milson Macleod has a wide business background, including over two decades of experience in materials management with the City of Edmonton. He was a pioneer in the integration of electronic financial systems, and was highly regarded as both a researcher and problem solver. A paradigm pioneer. Studied the coffee industry in 2001 while creating a Business Plan for Café Vienna, a Coffee House in traditional settings, and has since created many more Business Plans for humanitarian and environmental projects.
A fourth family member, who will join later, has a Masters Degree (2004) in the hospitality industry.
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