Table 6: The Business Model Canvas of the “Such a Peach Cafe”
Cost Structure
- Rent expense
- Marketing Expenses (website fee, adverts. etc.)
- Equipment, furniture and decoration - Fruit, vegetables and ingredients Key Partners - Local fruit and vegetable suppliers - Fitness centers and yoga studios.
Key Resources
- Location
- Human resources
- Product material
- Equipment
- Social media Key Activities
-Provide high
quality ingredients
- Identify, approach,
engage suppliers Value Propositions - Authenticity in our products and service
- Good customer
- Drinks and foods selling
- Sales during cultural events and exhibitions, outside of
shop. Channels - Physical location - Website & social media
- Through our key partners Customer Relationships
- Through website’s
feedbacks, WoM
- Listening to customer to
create more food variations
- Creating satisfied
environment for customers CustomerSegments - Vegetarians
- People those
interested in fitness
and yoga
- People those have
healthy eating
habits
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Our competitive advantage and differentiation from our competitors is not made out of one single element, but by the combined effect of various key elements that combined with a good management to create a solid and long term strategy for success. To analyze the different components of our business and how they come together to support our Business Plan we use the model suggested by “Business Model Canvas” and their 9 key elements detailed below.
5.1. Value Proposition
A successful business is the one that fills a need in the customer and the consumer is willing to pay for the services and goods we offer. We are in food business and we devote success to the preference of our customer towards other available brands and options.
Brand building is an essential element to create a sustainable and long term business.
Differentiation is what will set us apart from the generic vegetarian restaurant. We will be building our brand by focusing on 1) Quality; our products will have a positive price ratio to our customers, 2) Marketing, that set us apart as experts in business, and creates an emotional link with our clients, 3) Make difference, we will form a unique concept to satisfy all customers by using “create your own meal” concept in our cafe.
- Authenticity in our products and service - Good customer service
- Organic, quality and fresh product
Our value proposition for customers who buy our food and smoothies as our customer segment is that we will offer a high quality product that focused on meeting their expectation toward health and preferences.
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Number of people those who care about their health and engaged in sports keeps growing year after year, and yet some needs have not been served. We will target these people living in Taipei, near or frequent the Daan area where the yoga and fitness studios are dominant.
Our business model targets the following customers:
- Vegetarians: This is our major targeted customer segment. We are targeting vegetarians as they have limited food in their diet and open mind to try something new as long as it is vegetarian.
- People those interested in fitness and yoga: we are targeting yogi and sports people as they are the essential customer to buy healthy foods, and we provide the best products with high quality fresh fruits and vegetables to satisfy their high expectation.
- Teenagers, giving a new style of vegetarian food a try is considered fashionable or
"cool". This might only be a current fad, and in addition to that growing health consciousness means that a vegetarian diet will not go out of fashion.
Table 7: Primary Factors Related to Choosing a Vegetarian Diet Primary Factors Related to Choosing a Vegetarian Diet Motivations:
- Health
- Preferred taste
- Ethics – animal welfare - Ethics – environment - Cost
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Table 8: Primary and Contributory Motivations for Vegetarianism
* Source: Humane Research Council, 2018; additional details for all of the research studies cited in this report are available to registered users at www.humanespot.org
According to research of National Yunlin University of Science and Technology, about consumer preferences of vegetarian restaurant11, the budget of customer’s willing to pay for restaurant is shown below table.
Table 9: Budget of Participants for Choosing Vegetarian Restaurants
11 https://file.scirp.org/pdf/CUS_2014092613391524.pdf
0% 10% 20% 30% 40% 50% 60% 70%
To reduce suffering of animals on … To eat a healthier diet in general
To eat preferred foods To reduce impact on the … To reflect spiritual or religious … To reduce my risk of cancer or …
To eat less expensively
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5.3. Channels
Through our social media platforms we will reach our customers to promote our products and they will be able to reach us in our store and online through our integrated website platform, by using that platform we will announce some promotions such as wheat grass juice by using cold press as wheat grass shots.
Our another channel to introduce ourselves will be through companies such as yoga studios or fitness centers who do commercial or advertising about us as our customer segment is that we will offer them the opportunity to attract more customer. It will be win-win situation as partnership agreements.
Exposures to more potential customers can be increased by leveraging the existing customers base of the delivery service vendors. The internet users often like to take advantage of such streamlined delivery services. Our café can increase sales via delivery service partners and also gets the opportunities to transfer the customers from online ordering to actual visitors to come in the café and become repeat customers of our café.
With large segment of online food orders coming from mobile devices, it becomes inevitable to have a mobile app for our online food ordering business. Thus “Such a Peach Café” offers both android and iOS mobile apps for customer, merchants and delivery staff to run a successful restaurant business to make difference against competitors. The website and app inform the customer of the food quality, duration of food preparation, and when the food is ready for pick-up or the amount of time it will take for delivery. Therefore ordering food will be easier and reachable in every time. Whenever customers want, they can order their food via application whether before workout or after workout.
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5.4. Customer Relationship
The core of our cafe’s policy is always having the customer in mind, in order to provide unique food that created by customers in a good environment. We will be in contact with our customers through our social media pages, where they can review our products and services.
But in our cafe we believe the best feedback is the sales, so by studying the shopping behavior of our customers in our store and in our webpage, we will be able to manage our inventory stock in a way we can offer a greater variety of ingredients for increasing combination of bowls and smoothies.
We plan on creating and maintaining our customer relationship with the customer who buy our products through building a loyal group of customer where our foods can always meet their expectation, and we will always improve and optimize our products through promotions and special events to attract more new customers.
We believe that the most important interaction with the client is the one that is made face to face, customers need to know first-hand the details of the product they are buying and have their questions answered in a direct and professional way.
Our ordering system will have the capability to receive orders online in advance to make it easier for the customers to order and faster to pick up in the store. Another service will be preorder especially to people those need food after a bit from their work-out and deliver whenever they want.
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5.5. Revenue Streams
Our revenue will come from the direct sales of our products, both in the brick-and-mortar store and the place where they order. Customers will get to have their products at a competitive price, and for the ones that visit the cafe, they will feel they get value for their money, because of the nice customer service and overall environment in the cafeteria.
The other sources of revenue will come from the sales during cultural events and exhibitions, outside of shop.
5.6. Key Partners
We believe that relationship is fundamental for a starting business, we need to build long term win-win relationships with our key partners who will contribute on their expertise to build and grow our business. We will define as key partners; Local fruit and vegetable suppliers, fitness centers and yoga studios. We will make an agreement for section 1; “Hatha Yoga”, “Royal Yoga”, “Nomad Om Factory”, “Kfree Studio”, “MoreFit”, “World Gym”, for section 2; “Yoga Journey”, “Space Yoga”, “True Yoga”, “Eros Fitness”, “Fit Taiwan”, “Beyond Fitness”,
“World Gym”, “Lioness Studio”.
5.7. Key Activities
Our business will focus on the following activities:
- Provide high quality products which will be available for purchase - Identify, approach and engage suppliers
To achieve good operations standards reducing costs we will rely on available technology in point of sale, inventory management, price structure, online integration, and business
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intelligence. Increasing public awareness of health and environmental protection issues, especially dietary concerns, means that ever-larger quantities of these foodstuffs are grown organically, to woo health-conscious consumers.
5.8. Key Resources
Our website and social media platforms will be one of our key resources for the following reasons:
- By our social media platforms; we will be able to reach potential and actual customers, to inform them about our products and where to find us.
- Through our website we will introduce some tips for healthy life, introduce some healthy foods and smoothie recipes, and some posts for motivation.
- Product material: The core of our business will depend on our ingredients, which is the mostly local supplier to keep all ingredients as fresh as we can. This is the key resource to make our products, and the unique flavor it brings is the essential attraction to the customer.
The abundant and convenient supplies of a great variety of seasonal vegetables and fruit also contribute to the freshness and diversity of vegetarian food in Taiwan.
- Equipment: As our essential differentiator from the other competitor will be the fresh food and smoothies, we will implement the equipment to prepare our food only after taking orders from the customer since the food will be specialized by customers.
Also since we are in a new option in the market, and our store will not have a substantial big size, we will use the traffic of our location to generate business, one key resource that will be decisive in the success of our business is the location of our store. When looking for a location, we considered from the storefront traffic flow, distance of the fitness centers and
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yoga studios, origin and destination, as well as surrounding competitors. Based on this information we can generate various sales estimates, to determine the highest possible rent for each location.
5.9. Cost Structure
The elements under the cost structure will be the major reference for us to determine our pricing strategy. The following costs are considered within our business model:
- Website annual fee
- Equipment, decorations and furniture - Ingredients bought for food at the store
- Travels to contact suppliers or attend trade shows - Fixed cost of salaries and rent
- Advertisements costs
This business model will provide a steady and predictable revenue stream; inventory management will not be a huge problem, as demand will be known and cost of goods can be reduced by buying in larger quantities.
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Start-Up Expenses NT$
Start-Up Funding NT$
Legal Registration 20.000
Start-Up Expenses to Fund 210.000
License 10.000
Start-Up Assets to Fund 790.000
Rents (2months) 100.000
Total Funding Required 1.000.000
Store supplies 10.000
Advertisement (grand opening) 20.000
Assets NT$
Renovation 50.000
Non-Cash Assets from Start-Up 483.000 Total Start-Up expenses 210.000
Cash Requirement from Start-Up 307.000
Additional Cash Raised
Start-Up Assets NT$
Cash Balance on Starting Date -
Required Cash 307.000
Total Assets 790.000
Start-Up Inventory 50.000
Other Current Assets 15.000
Long-term Assets 418.000
Capital NT$
Total Start-Up Assets 790.000
Investment Plan
Partner 1 500.000
Short-term Assets NT$
Partner 2 500.000
Dishes 10.000
Total Investment Plan 1.000.000
Blender 5.000
Total 15.000
Long-term Assets NT$
Cash register 5.000
Sound system 20.000
Cold press machine 18.000
Ice maker machine 20.000
Total 418.000