Our services will entail selling of coffee, other beverages and snacks in unique, comfortable environment in prime Maseru location.
In addition, we’d like to open a pay point for electricity and water bills, and later on, TV bills. We want this project grow to an extent of a franchise and or a chain of branches throughout country.
M&T coffee bar, a Maseru limited liability company, will sells coffee, other beverages and snacks in its 2,100 square feet premium coffee bar located at Maseru mall.
M&T coffee bar is determined to become a daily necessity for local coffee addicts, a place to dream of as you try to escape the daily stresses of life and just a comfortable place to meet your friends or to relax after tiring shopping and business meetings, all in one. With the growing demand for high-quality gourmet coffee and great service, M&T coffee bar will capitalize on its proximity to the major shopping mall to build a core group of repeat customers. M&T coffee bar will offer its customers the best prepared coffee in the area that will be complimented with pastries, as well as free books that its patrons can read to enjoy their visit.
The company will operate a 1,100 square foot coffee bar within the shopping mall. The owners have secured this location through a three-year lease with an option for extending. They have also provided M140, 000 of the required M170, 000 start-up funds. The remaining capital will be obtained through Standard Lesotho Bank commercial loans. The company is expected to grow sales revenue from M584, 000 in FY2001 to M706, 000 in year three. As M&T coffee bar will strive to maintain a 65% gross profit margin and reasonable operating expenses, it will see net profits grow from M100, 000 to M125, 000 during the same period.
M&T coffee will position itself as a unique coffee bar that not only offers the best tasting coffee and pastries but also provides home-like, cosy and comfortable environment, which established corporate establishment’s lack. We will cater to customers' bodies and minds, which will help us, grow our market share in this competitive market.
Coffee consumption in Maseru has shown steady growth, with gourmet coffee having the strongest growth. Coffee drinkers in the Maseru are becoming the most demanding ones. They favour well-brewed gourmet coffee drinks and demand great service. Maseru is now growing with liberal and outgoing populace and long rainy winter, has traditionally been a great place for coffee establishments.
M&T coffee bar will strive to build a loyal customer base by offering a great tasting coffee in a relaxing environment of its coffee bar located close to the new bustling Maseru Mall.
The start-up expenses include:
• Legal expenses for obtaining licenses and permits as well as the accounting services totalling M3, 500.
• Marketing promotion expenses for the grand opening of S&K in the amount of M7, 500 and as well as flyer printing (2,000 flyers at M7.00 per copy) for the total amount of M14000.00.
• Consultants’ fees of M3, 500 paid to Financial Services for the help with setting up the coffee bar. Insurance (general liability, workers' compensation and property casualty) coverage at a total premium of M42, 400.
• Pre-paid rent expenses for one month at M1.76 per square feet in the total amount of M4, 400.
• Premises remodelling in the amount of M110, 000.
• Other start-up expenses including stationery (M700) and phone and utility deposits (M5, 500).
The required start-up assets of M242, 320 include:
• Operating capital in the total amount of M67, 123, which includes employees and owner's salaries of M23, 900 for the first two months.
• Cash reserves for the first three months of operation (approximately M14, 400 per month).
The investor will gain shares of the business and will able to have a say in it