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Business plan for a Vietnamese-style coffee
shop in Helsinki
LAB University of Applied Sciences
Bachelor of Hospitality Management, Tourism and Hospitality Management
2022
Anh Tran
Abstract
Author(s)
Anh Tran
Publication type
Thesis, UAS
Completion year
2022
Number of pages
36
Title of the thesis
Business plan for a Vietnamese-style coffee shop
Degree, Field of Study
Bachelor of Hospitality Management, Tourism and Hospitality Management
Organisation of the client
Abstract
This thesis's objective was to investigate a business plan's crucial components and
apply this information in creating a business plan for a Vietnamese-style coffee shop
in Helsinki. A strong business plan is an essential component of any new firm in the
market; it serves as a guide for the entrepreneur and determines whether the Finnish
people are ready to embrace the Vietnamese coffee culture.
The theoretical framework was developed based on professional business and
management literature, online academic articles, and journals. The empirical portion
is mainly concerned with quantitative market research, which was carried out via an
online survey among residents of the Uusimaa region.
This thesis created a meaningful business plan based on the findings of theoretical
market research in this industry.
Keywords
Business plan, coffee business, Vietnamese-style coffee shop
Contents
1 Introduction ..................................................................................................................... 1
1.1 Objectives .............................................................................................................. 1
1.2 Delimitations .......................................................................................................... 1
1.2.1 Theoretical delimitations .................................................................................... 1
1.2.2 Empirical delimitations ....................................................................................... 2
1.3 Research questions ............................................................................................... 2
1.4 Theoretical framework ........................................................................................... 2
1.5 Research method .................................................................................................. 3
2 Literature review on business plan ................................................................................ 4
2.1 Definition, function, benefits of a business plan .................................................... 4
2.1.1 Definition ............................................................................................................ 4
2.1.2 Function ............................................................................................................. 4
2.1.3 Benefits .............................................................................................................. 5
2.2 Business plan structure ......................................................................................... 5
2.2.1 Executive summary ........................................................................................... 6
2.2.2 Company description ......................................................................................... 7
2.2.3 Product and service information ........................................................................ 7
2.2.4 Market analysis .................................................................................................. 7
2.2.5 Marketing plan ................................................................................................... 8
2.2.6 Organization and management ......................................................................... 9
2.2.7 Financial plan ................................................................................................... 10
3 Vietnamese-style coffee shop in Helsinki .................................................................... 12
3.1 The current scene of coffee business in Helsinki ............................................... 12
3.1.1 Competition in the industry .............................................................................. 13
3.1.2 Potential of new entrants into the industry ...................................................... 14
3.1.3 Power of suppliers ........................................................................................... 14
3.1.4 Power of customers ......................................................................................... 14
3.1.5 The threat of substitute products ..................................................................... 14
3.2 Characteristics of a Vienamese-style coffee shop .............................................. 15
4 Business plan for a Vietnamese-style coffee shop in Helsinki .................................... 16
4.1 About Moc ............................................................................................................ 16
4.2 Product and service information .......................................................................... 17
4.3 Market research ................................................................................................... 19
4.3.1 Gender ............................................................................................................. 19
4.3.2 Age ................................................................................................................... 19
4.3.3 Location ........................................................................................................... 20
4.3.4 Frequency of visiting a coffee shop................................................................. 21
4.3.5 Experience with a Vietnamese coffee shop .................................................... 21
4.3.6 Satisfaction with the experience ...................................................................... 22
4.3.7 Eagerness to visit a Vietnamese-style coffee shop ........................................ 22
4.3.8 Factors of visiting a coffee shop ...................................................................... 23
4.3.9 Purpose of visiting a coffee shop .................................................................... 23
4.3.10 Ideal price range for a cup of coffee............................................................ 24
4.4 Marketing plan ..................................................................................................... 25
4.4.1 Marketing 4Ps .................................................................................................. 25
4.4.2 SWOT analysis ................................................................................................ 25
4.5 Organization and management ........................................................................... 27
4.5.1 Leadership style............................................................................................... 27
4.5.2 Personnel ......................................................................................................... 28
5 Financial plan ............................................................................................................... 29
6 Conclusion .................................................................................................................... 31
References .......................................................................................................................... 33
Figures ................................................................................................................................. 36
Appendix 1. Customer’s questionnaire
1
1 Introduction
Referring to the country of coffee, people usually think of the areas of cultivation and export
but rarely mention the place of consumption. That is why many people are surprised that
Finland - a famously happy country- is the largest coffee-consuming country per capita
worldwide. According to World Population Review, approximately four cups of coffee are
consumed by Finns everyday. Coffee is so prevalent in Finland that all Finnish workers are
compelled by law to take two 10-minute coffee breaks (World Population Review, 2022.)
With a market full of potential, Finland has become a fertile ground for the "giants" in the
coffee business. However, the opportunity is still great for those who know how to take
advantage of today's globalization trend when Finns want to experience different and new
coffee flavors. Besides, Vietnam is among the top 10 coffee exporting country to Finland,
accounting for 114 metric tons in 2021 (Clausnitzer, 2022). From those withdraws, there is
a significant potential for running a coffee business in Finland.
Business planning is the backbone of any business (Willems, 2020). It helps the business
owner to build a strategy for future development and create a roadmap to avoid an
unwanted surprises. The author is an entrepreneurship advocate and wants to start a coffee
business on her own to introduce authentic Vietnamese coffee and its cultural uniqueness
of making coffee to the world, starting with Helsinki. These motivated her to choose a topic
related to the field; thus, the thesis title is 'Business plan for a Vietnamese-style coffee shop
in Helsinki. The thesis guides any entrepreneurs who want to start a business in Finland's
Food and Beverage Industry, particularly the coffee business in Helsinki.
1.1 Objectives
The primary purpose of the thesis is to create a proper business plan for an establishment
of a Vietnamese-style coffee shop in the capital region.
1.2 Delimitations
1.2.1 Theoretical delimitations
As mentioned above in the objectives part, this thesis is about writing an effective business
plan for establishing a coffee shop. Hence, the author decides to include only theories
about:
· Definition of a business plan
· Function and benefits of business planning
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· Structure and criteria of an effective business plan
1.2.2 Empirical delimitations
The business locates in Helsinki, while the study mainly focuses on market research, so
empirical data collection targets only Finnish and internationals currently living and working
in the Uusimaa region, which means the author will not investigate data from other residents
in other areas.
1.3 Research questions
The research question is based on the exact objective mentioned above in part 2. As a
result, the main research question is ‘How to write an effective business plan for a
Vietnamese-style coffee shop in Helsinki?’. To fully answer the main research question,
there are several sub-questions follow:
· What is the structure of an effective business plan for an establishment of a coffee
shop?
· What is the value proposition to attract Finnish and internationals to visit the coffee
shop?
· How does the Vietnamese-style coffee shop differentiate from other cultural coffee
shops?
1.4 Theoretical framework
Effective business planning of a coffee shop is the main direction for the whole research.
Specifically, the author needs to define theoretical parts relating to definition, role, benefits,
and structure to have a profound understanding of an effective business plan. These
definitions are primarily sourced from Investopedia, The Book on Business Planning by Tim
Berry, and Handbook of business planning by BizPlanBuilder. Below is a theoretical
framework that connects the theoretical part with the empirical part of the thesis.
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Figure 1 Theoretical framework of a business plan for a Vietnamese style coffee shop
1.5 Research method
The author will mainly use the Quantitative Research Method to conduct the study, including
data collection and analysis. Using a survey to collect data on market research is the best
option as the primary purpose is to identify if Finnish and internationals currently living and
working in Finland embrace Vietnamese coffee. The survey targets 50 people via online
and in-person channels, combining multiple-choice and ranking questions.
Regarding data analysis, the author will use Excel to create data tables as they are an
excellent way to share numerical data and clear comparisons so that the author can give
comments and conclusions.
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2 Literature review on business plan
Starting a business is challenging, and it requires proper preparation in advance. So that is
why it is undeniable that a business plan is crucial to get any company off the ground.
2.1 Definition, function, benefits of a business plan
2.1.1 Definition
There are several definitions of a business plan. According to Tim Berry in 'The Book on
Business Planning,' a business plan is any strategy that helps a company plan ahead,
allocate resources, focus on essential issues, and prepare for difficulties and possibilities.
(Berry, 2006). Ivy Wigmore defined on Tech Target that A business plan is a document that
demonstrates the viability of a potential new enterprise and provides a road map for its first
few years of operation (Wigmore, 2018). A business plan can be understood as a written
document that outlines a company's objectives and strategies for achieving them. There are
many different types of business plans, but the content still focuses on a single goal: to
show the way step in the company's future activities. It can be understood simply that the
task and goal of business planning are to help the company's business strategies achieve
the best results.
2.1.2 Function
To exist, develop, and find a business direction for any business, the business owner must
have a specific business plan. This plan helps businesses grasp the actual situation and
give future directions. According to Wellersaccountant, a business plan is used to help
manage an organization by stating ambitions, how they will be achieved, and exactly when.
It helps businesses identify goals, strategies, markets, customers, competitors, and internal
resources of the business giving business directions and methods of implementation
(Tillotson, 2022.)
Planning is at the core of business planning, as it enables a clearer vision for the future of
the business. It is exceptionally challenging to modify work and recuperate without a
strategy. Writing a business plan is crucial in building the foundation for accomplishing
attainable corporate objectives.
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2.1.3 Benefits
The business planning process helps coordinate operations among business departments
that must collaborate to objectively assess, evaluate, and create more severe and
comprehensive operational plans for the business.
Business planning will assist businesses in generating ideas and objectively evaluating
project implementation opportunities. This approach enables businesses to validate the
objectives in their activities. A business plan improves viability by: A plan makes a significant
contribution to bringing ideas into reality (Anonymous, 2022).
A comprehensive business plan is a tool for guiding firm operations. Because the plan is
based on an assessment of the current status of the business, it is predicted that the
business's activities and outcomes will be realized in the future.
Furthermore, the business plan can be employed as a management tool in the business's
operation. A strong business plan will assist businesses in having a more comprehensive
picture, analyzing difficulties reasonably, and balancing the challenges to be solved. As a
result, it is possible to use the company's strengths while exploiting the competitors'
shortcomings to steer it toward success.
When completed, the business plan is utilized as an internal communication tool since it
specifies the corporate goals to be met, identifies rivals, describes how the organization is
led, and uses the company's people resources. Investors no longer regard business as a
risk in a highly competitive operational climate. A solid company plan can aid in their
success.
2.2 Business plan structure
Tim Berry wrote in 'Handbook on Business Planning' that a typical business plan that follows
the recommendations of business professionals contains a set of basic parts. Plan styles
and outlines differ, but basic components include descriptions of the firm, product or service,
market, forecasts, management team, and financial analysis. He also pointed out that
people almost always expect to see sections covering the Company, the Market, the
Product, the Management Team, Strategy, Implementation, and Financial Analysis (Berry,
2006.)
The business plan differs for each business. However, in general, it will have the following
basic structure:
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• Executive Summary
• Company Description
• Product and Service Information
• Market Analysis
• Marketing Plan
• Organization and Management
• Financial Plan
• Appendix
2.2.1 Executive summary
The business summary is one of the essential elements placed at the top of the sample
business plan. This section should present a content summary related to the company and
its business projects.
While the executive summary should be engaging and comprehensive, it must also be quick
and easy to read, as stated by Skye Schooley on Business News Daily (Schooley, 2022).
Typically, the executive summary is at most two pages long; this will be the first content to
be read and analyzed by the appraiser, who is also the investor in the future. Because of
its importance and generality, this section should be written last to make it easier for the
writer to grasp and present the main points of an issue he deeply understood. The summary
should contain three sections:
• Objective: State the financial and non-financial goals of the project, such as revenue,
profit, profit rate, capital efficiency, and production efficiency.
• Mission: The image that the company wants to create for customers, the values that
the products and services of the business will bring to customers, and the business's
commitments.
• Keys to Success: The differences the business will bring compared to competitors,
the factors that ensure the set goals will be achieved.
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2.2.2 Company description
Alyssa Gregory stated in 'How To Write a Company Description' on thebalancemoney.com
that the company description outlines vital details about the company, such as the location,
the size, what it does, and what it hopes to accomplish (Gregory, 2022).
The company description varies, depending on the type of business, but typically it should
include the following:
• The business structure (sole proprietorship, general partnership, limited partnership,
or incorporation)
• The industry that it operates
• The business model
• Vision, mission, and values of the business
• Basic information about the business or the history of the business Business goals,
both short and long term
• The team, including key people and their salaries
2.2.3 Product and service information
A business plan's products and services section specifies what the company produces, how
much it will sell for, and other pertinent information. The business owner should describe
the products or services they now provide or aim to provide (including future products or
services). Additionally, the writer can also indicate the prices for each product or service
and compare the items or services offered by the competitors.
A product or service can be anything a company makes to make a profit. Some companies
offer both products and services. A restaurant's services, for example, include cooking for
and serving customers. The dishes and drinks created by the restaurant are its goods.
2.2.4 Market analysis
The most fundamental thing that determines the success of a product is the product buyer's
acceptance or the satisfaction of the service user. Market analysis is the most accurate way
to figure out all the answers.
A market analysis evaluates the quantitative and qualitative aspects of a market. It
examines market volume and value, distinct consumer segments and purchasing
behaviors, competition, and the economic environment in terms of entry barriers and
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regulation. It aims to understand the market and identify if it is large enough to build a
sustainable business.
According to Max Freedman in 'How to Conduct a Market Analysis for Your Business' on
Business News Daily, a thorough marketing analysis should answer the following questions
(Freedman, 2022.):
• Who are the potential customers?
• What are the customers' buying habits?
• How large is the target market?
• How much are customers willing to pay for the product?
• Who are the main competitors?
• What are the competitors' strengths and weaknesses?
2.2.5 Marketing plan
A marketing plan is a systematic and long-term strategy developed by corporations to track
the promotion of products, services, and brands along a specific path. Marketing plans
might employ marketing solutions and techniques for various marketing teams. However,
these strategies are basically toward a common business goal planned. Businesses can
adopt different marketing methods and plans depending on the industry and its operations.
When launching a new product or service, businesses typically consider the 4Ps to
effectively create marketing plans and strategies to market to their target audience. The
concept of the 4Ps in marketing first appeared in the article 'The Concept of the Marketing
Mix' by Neil Borden in 1964 under the term marketing mix. At this time, the marketing mix
includes many factors such as product, marketing strategy, distribution, product price,
brand, packaging, promotion, promotion, and personalization (Borden, 2013.) However,
then marketing expert E. Jerome McCarthy chose the four most core options known as the
4Ps of marketing. These four factors have contributed significantly to the formulation of
marketing strategies (Yudelson, 1999.)
4Ps in Marketing is a set of tools including four essential elements: product, price, place,
and promotion. The 4Ps strategy is used by many businesses to achieve their goals in
launching new products.
1. Product
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Products are the first foundation in any corporate activities' marketing strategy, serving as
the focal point in meeting consumers' requirements and desires. The company's efforts will
be fruitful if the product is good.
In marketing, products are tangible goods (such as machinery and equipment manufacture)
or intangible services (such as hotels, tourism, and telecommunications services).
2. Price
Price is the selling price of the product to the consumer in the 4P approach. The business
owner carefully evaluates the costs of completing the product when determining the selling
price: materials, labor, transportation, design, and other elements that must be considered
in order to make a profit. The interest rate is typically 15 to 20% of the total product value.
3. Place
The place is also understood as a distribution channel; They are places where clients can
buy products in the 4P approach. Distribution channels are classified into two types:
Manufacturers sell products directly to clients without the use of intermediaries; businesses
have storefronts, a sales crew, and sell websites.
Manufacturers sell their products through intermediary channels such as supermarkets,
stores, restaurants, and other locations.
4. Promotion
Promotion is the fourth letter P in the 4P strategy, which can be translated as
communication and marketing. This is a method of promoting products to customers.
Advertising (on television, radio, and the Internet), marketing (introducing products at home
and delivering catalogs to customers), and public relations are all promotional tactics (press
conferences, exhibitions, and organizing events).
The goal of the 4P strategy is to promote and fully meet customer needs. When applying
4P, the business brand will be widely distributed, and when promoting and introducing
businesses, quickly increase recognition. At the same time, it will build customer trust
thanks to credibility. From there, creating a premise for further development steps in the
future is possible.
2.2.6 Organization and management
Any corporation or business that wants to survive and grow must acknowledge the
importance of organization and management. The business plan's organization and
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management section should summarize information regarding the company's structure and
team. This element must be included if the business owner has a partnership or multi-
member limited liability company. If the business owner is beginning a home business or
preparing a business plan for an existing one, they are the only ones participating. This part
is unnecessary for them to include (Duermyer, 2022.)
The organization section establishes the people involved in the corporate hierarchy. It is
frequently presented in the form of a chart. This section of the plan is technically about
owner members.
Management is developing an organization's strategy and directing its employees' efforts
to achieve its objectives through the use of available resources such as financial, natural,
technological, and human resources (Anonymous, 2020). The person in charge of an
organization is also called a "manager".
2.2.7 Financial plan
A financial strategy is the most crucial part of a business plan, especially if the owner is
looking for debt financing or investors. The financial strategy must demonstrate that the
business will grow and become profitable. To accomplish this, the business owner must
create anticipated income statements, cash flow statements, and balance sheets. These
are projections for a new company, and it's a good rule of thumb to underestimate sales
and overestimate expenses.
Include the financial statements shown below:
• Income statements show the expected income, expenses, and profits. Do this
periodically for at least the first year of a new business.
• Cash Flow Projections show the company's estimated monthly cash revenues and
expenses. It must be shown that the business owner can manage cash flow and is
a reasonable credit risk.
• Balance sheet: This is a snapshot of a company's assets, liabilities, and equity at a
certain point in time. It is vital to remember that a new company's balance sheet will
have no accounts receivable entries. In addition, unincorporated businesses with no
employees have a considerably simpler financial statement. Earnings/retained
earnings, income tax, pensions, medical benefits, and other perks are only available
to incorporated businesses.
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• Breakeven Analysis: Including a break-even analysis shows lenders or investors
how much sales are required to produce a profit for the business owner. (Ward,
2020.)
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3 Vietnamese-style coffee shop in Helsinki
3.1 The current scene of coffee business in Helsinki
In Europe, Helsinki is one of the finest regions for attracting investment. In the Financial
Times magazine fDi Intelligence, Helsinki received its class in Economic Potential, as did
the entire Helsinki Metropolitan Area. According to the Global Innovation Index 2020,
Finland ranks first in the world regarding the business climate for the third year (Anonymous,
2022.) Along with that, Finland has the world's highest per capita coffee consumption rate.
According to World Population Review, the average Finn consumes approximately four
cups of coffee each day. Coffee is so prevalent in Finland that two 10-minute coffee breaks
are required by law for all Finnish workers (World Population Review, 2022.) Therefore,
there is a huge potential for starting a coffee business in Helsinki.
Before launching a coffee business, it is critical to understand the coffee industry scene in
Helsinki. The current state of the coffee industry in Helsinki will be examined using Porter's
Five Forces paradigm.
Porter's Five Factors is a model that identifies and analyzes the five competitive forces that
shape any sector and aids in determining an industry's vulnerabilities and strengths (Team,
Porter's Five Forces Explained and How to Use the Model 2022). The Five Forces analysis
is commonly used to establish a company strategy by examining the structure of an industry.
Porter's approach can be used in any economic sector to improve industry competitiveness
and long-term profitability. Porter's five forces are:
• Competition in the industry: The number of existing competitors is the first of the five
forces. The greater the number of competitors, the greater the intensity of
competition, and the weaker the single business. In this market, consumers will
switch to buying the cheapest products and services if the products and services do
not have significant differences. This can lead to a price war between businesses in
the industry. Conversely, when competition is minimal, a company has more leeway
to charge higher prices and dictate agreement terms to increase sales and profits.
• Potential of new entrants into the industry: New market entrants also have an impact
on a company's standing. If a market (or business) offers many profitable
opportunities and no entry barriers, competition will quickly heat up as potential
competitors see an opportunity in that area. Industries with high barriers to entry (for
example, industries that require enormous fixed costs, such as aircraft and
automobile manufacturing and other factors) will typically have a low level of
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competition. Therefore, businesses will easily dominate product prices, thereby
achieving high profits.
• Power of suppliers: The model's next element pertains to how quickly suppliers can
raise input costs (or the ability to "squeeze" prices). This is defined by elements such
as the number of primary (material) input suppliers of the commodity or service, the
distinctness of these inputs, and the switching costs incurred by the firm. This
happened after moving to a different supplier.
Businesses have fewer options when there are fewer suppliers. The supplier has
more negotiation power over the price policy. On the other hand, businesses can
keep input costs lower and gain higher profits when there are many suppliers or low
switching costs between providers.
• Power of customers: This "force" refers to the fact that customers can pressure the
prices of items and services provided by businesses. Customers have more
bargaining power and advantages regarding price policies when they have more
selections. This "force" is impacted by factors such as the company's number of
consumers, the importance of each customer, and the expense of finding new
customers or markets.
• The threat of substitute products: The final of the five forces focuses on alternative
products. Firms that manufacture goods or services with no (or few) substitutes have
more negotiating ability to raise prices and offer favorable terms of sale. Customers
have more options when there are several replacement products available. Because
the substitute product is the consequence of technical advancements, substitute
products frequently have more significant features and quality at the same or lower
cost. As a result, the appearance of substitute products will diminish the company's
sales volume, lowering its profit.
3.1.1 Competition in the industry
In the coffee store culture, Finland's primary competitors are three leading coffee retail
chains: Espresso House, owned by JAB Holding Company; Robert's Coffee, founded by
Paulig; and Fazer café, created by Karl Fazer. There are many more traditional cafés in
Helsinki, but these three are primarily focused on specialty coffees and would be obvious
competitors for any new coffee shop. In addition, Helsinki has roughly 100 local coffee
shops. Furthermore, the consumption of gourmet coffees is steadily increasing, indicating
that this industry has much potential. Because of this quick expansion, new coffee
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businesses entering Finland would not need to steal customers from the competition; rather,
they would help meet the demand for more coffee shops.
3.1.2 Potential of new entrants into the industry
There is always the possibility of new coffee chains or a local coffee shop opening in
Finland. However, a Vietnamese-style coffee shop has the advantage of being such a well-
known and recognized uniqueness in taste worldwide (Lazarus & Pham, 2020). The fact
that Finns are getting more familiar with Vietnamese food is also a positive factor
(Sandholdt, 2021).
3.1.3 Power of suppliers
Home espresso machines could be a considerable alternative product. As the popularity of
gourmet coffee grows, people may become increasingly interested in brewing specialty
coffees at home, thereby saving money. On the other hand, going to coffee shops is more
than just getting a cup of coffee. It provides far more than what can be accomplished at
home. It is about the entire concept of visiting a physical store as an experience. A relaxing
area to meet friends, conduct homework, and read the daily paper while sipping a specialty
coffee. Additionally, the coffee shop can make it convenient for people to grab a coffee on
their way to or from work.
3.1.4 Power of customers
In terms of buyer power, buyers are influential if they merely seek regular coffee because
many coffee shops sell ordinary coffee. If consumers want to experience a unique
beverage, the author's Vietnamese coffee shop is a fantastic alternative because no other
places in Helsinki sell the same items as the author. Overall, buyer power is considered to
be of medium strength.
3.1.5 The threat of substitute products
The ease with which customers can find a replaceable product or service determines the
threat of substitution. As the author indicated, coffee shops may be found almost anywhere
in Finland. However, there has yet to be an actual Vietnamese coffee shop in Finland;
therefore, the author's Vietnamese coffee store has no substantial competition. The threat
of substitution is ineffective in this scenario. Furthermore, Moc coffee shop offers unique
items such as Vietnamese egg coffee and other Vietnamese 'Phin'-based coffee. To
summarize, these products currently need help finding in Finland.
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3.2 Characteristics of a Vienamese-style coffee shop
For a long time, coffee has become an indispensable part of the daily lives of Vietnamese
people. The French brought coffee to Vietnam in the 80s of the 19th centuries and gradually
created a Vietnamese culture that is hard to be confused with.
Vietnamese coffee culture is admiringly unique. Drinking coffee has a very personal style;
they consider it a drink to enjoy, not a quick drink, with anti-drowsy effects like in Western
countries. We sit in front of a cup of coffee, sipping, pondering, and taking small sips with
our lips. People swirl around a cup of coffee while reading newspapers, listening to music,
conversing with friends and business colleagues, or sitting at work and thinking about life.
Vietnamese coffee is often brewed in the French style, i.e., filter. People pour boiling water,
sit and wait for the coffee to expand, and filter every drop; very special. Making a cup of
coffee does not take much effort, but it does take time. Sitting and watching each black drop
is a hobby of coffee lovers. Especially on rainy days, going out on the porch to watch the
rain and each drop of coffee drop-down feels so "chill"; it makes our hearts strangely
relieved and peaceful.
Vietnamese coffee is often bold, bitter, and fragrant with an almond, earthy smell.
Depending on the region and age, the way to enjoy coffee varies and does not follow
specific standards. Southerners, for example, frequently wrap coffee in a cloth and cook it
in a pot; they prefer iced coffee to hot drinks. Northerners prefer to drink coffee with a filter,
black or brown, but it must be concentrated. Some people like a thick, sweet, and thick iced
brown cup, some love the coffee drops slowly falling from the old filter, and some like to
drink espresso brewed like a dose of "wake-up" medicine.
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4 Business plan for a Vietnamese-style coffee shop in Helsinki
4.1 About Moc
• Mission and Vision:
Moc focuses on making the best phin coffee for its customers. We believe in quality over
quantity, so we only make enough to fill our cups. We use the freshest beans and roasts,
always with a smile on our faces.
Moc's mission is to inspire our customers' creative thinking and provide them with a unique
and meaningful emotional experience related to Vietnam. We are continually inventing,
intending to go further in our mission to bring Moc to the world, to share and inspire with the
hearts of each member.
• Name, Atmosphere, and decoration concept
Name: ‘Moc’ is a Vietnamese word and short version of ‘Moc mac,’ which means ‘Simple’
in English. Moc coffee shop wants to represent simplicity but uniqueness; this is the first
impression when any customers visit it.
Atmosphere and decoration concept: Dark moss green dominates the shop's appearance.
This green color is derived from the soldier's blue shirt, formerly a common sight in Hanoi
(Vietnam's capital). This primary color tone dominates the majority of the design and layout
of the Moc coffee shop. This charming, nostalgic blue color is used on the walls, tables,
chairs, decorative mugs, coasters, and hats. All of this combines to produce a color
harmony, giving clients a strong sense of Moc; when people think of Moc, they are reminded
of the Vietnamese army's green color. Customers who come to drink can also completely
unwind from their hectic schedules and appreciate the space in the cafe's interior.
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Figure 2 Cong ca phe coffeeshop in Vietnam (Uyen Pham, 2021)
4.2 Product and service information
There are two main categories of drinks in the Moc coffee shop: Vietnamese-based phin
coffee and local Vietnamese drink. Customers can also choose toppings to add to their
drinks.
• 'Cà phê phin' (Vietnamese-based phin coffee) is the name for coffee made with a
filter - an object shaped like a cup, with many tiny holes at the bottom, plus a circular
compression tool that fits inside the cup. It is perfect for soaking up life's simple
pleasures - like reading a book or catching up on work while drinking excellent
coffee!
• Local Vietnamese drink comprises signature tea, soda, tropical fruits, and lactose-
free milk. Together, it creates a fruitful and playful taste in the mouth.
• White pearls and coffee jelly are simple yet delicious Vietnamese-based toppings.
They will leave a unique and satisfying taste for the consumers.
Nevertheless, Moc's phin coffee is made with Viet Nam's finest beans and roasted right.
The coffee is sweet, milky, and smooth with a hint of bitterness. It has a taste that will leave
the customers craving more! Moc offers two sizes: S and M, with a minimum price of 3 euros
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and a maximum price of 6.5 euros. Below is the menu of Moc with descriptive products,
prices, and explanations.
Figure 3 Moc coffee shop menu
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The authors believe that a coffee shop's service should be as simple and accessible as
possible so that Moc coffee shop will be self-service. The customers can choose from
various options for their drink and then pay for it with cash or credit card. They will then
choose a seat, wait for their cups of drinks, and pick it up when the order tags sound.
4.3 Market research
The author conducted this market research survey to determine the preferences of
prospective clients in the Uusimaa region. The survey was made available through Google
Forms. The results of the questionnaire gathered during the research will be provided in this
chapter in the form of graphs and the author's remarks. There were 33 total respondents
who answered the survey questions. The poll consisted of ten questions, the most of which
were about the coffee business and service. Charts and graphs are shown below:
4.3.1 Gender
Figure 4 Respondent’s gender
Figure 4 shows that 33.3% of respondents are male, 51.5% are female, and 15.2% prefer
not to say. Clearly, female respondents dominate the survey.
4.3.2 Age
20
Figure 5 Resondent’s age
It is indicated in figure 5 that most respondents are from 30 to 39 years old. In second place
are people from 18 to 29 years old. The minor age range that got ticked is under 18 years
old. From that, the Moc business owner can determine their target customers and focus on
which elements in a marketing campaign to attract those people.
4.3.3 Location
Figure 6 Respondent’s place of living
Most respondents live in Helsinki, accounting for 48.5%. Otherwise, Espoo region place
second, and Vantaa is at third place. As mentioned from the beginning, the location of the
Moc coffee shop is in Helsinki, which is absolutely an ideal place.
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4.3.4 Frequency of visiting a coffee shop
Figure 7 Respondent's frequency of visiting a coffee shop
It is evident from figure 7 that most of the respondents visit the coffee shops once a week.
Following that is the answer ‘once a month’. This is also a positive sign that people tend to
visit a coffee shop regularly.
4.3.5 Experience with a Vietnamese coffee shop
Figure 8 Respondent’s experience with a Vietnamese-style coffee shop
The result in figure 8 is reasonably balanced between 57.6% and 42.4%, meaning more
than half of the respondents have visited a Vietnamese-style coffee shop.
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4.3.6 Satisfaction with the experience
Figure 9 Respondent's satisfaction with the previous experience in a Vietnamese-style
coffee shop
The evaluation range here starts from 1- Not at all satisfied to 5: Extremely satisfied. Most
of the respondents chose 5 – Extremely satisfied. However, there were 8 of them chose 3,
which is neutral.
4.3.7 Eagerness to visit a Vietnamese-style coffee shop
Figure 10 Respondent’s eagerness to try out a new Vietnamese-style coffee shop
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It is a positive sign that more than half of the respondents chose 5 – Extremely likely when
asked about their eagerness to visit a new Vietnamese – style coffee shop. Nevertheless,
there were 6 of them who chose 3 – neutral, so it is tricky to know if they are willing to visit
a Vietnamese – style coffee shop. However, most of t hem are eager to visit a Vietnamese
coffee shop, so we know that people would try our product and service. Furthermore, it is
vital how we market it.
4.3.8 Factors of visiting a coffee shop
Figure 11 Factors that affect respondents when visiting a coffee shop
Customer service ranks first among the crucial factors to respondents when they visit a
coffee shop. Following that are the atmosphere and store design. The least important factor
is a good internet connection. However, there were 5 of them chose all the factors.
4.3.9 Purpose of visiting a coffee shop
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Figure 12 Respondent's primary purpose when visiting a coffee shop
The respondents mainly answered the ‘work/ study’ purpose option when visiting a coffee
shop, while the other two purposes, ‘have a chit chat’ and ‘simply craving a cup of coffee
outside the home,’ remain the same rank. Those information would be beneficial to decide
the main concept of the coffee shop when doing renovation. For instance, if the customers
prefer the coffee shop to be a place for work and study, the atmosphere should help them
focus well, not distract them.
4.3.10 Ideal price range for a cup of coffee
Figure 13 Ideal price range for a cup of coffee to the respondents
The '3 – 4.5 euros' price range for a cup of coffee is the most common answer. Surprisingly,
the most expensive price range, '5-6.5 euros', got more chosen than the middle price range,
'4-5.5' euros. This is helpful for the Moc business owner to determine and set a reasonable
menu price since the price is one of the most important factors when customers think about
drink decisions.
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4.4 Marketing plan
The main objectives of Moc coffee shop are building brand awareness and attracting
customers to try out the place. Using Marketing 4P is one of the most reasonable methods
to achieve the goals and have an overall picture of how to launch a new coffee business
and what to prepare when entering the market.
4.4.1 Marketing 4Ps
• Product: Moc is a Vietnamese-tend coffee shop, so several products from Vietnam
will be exclusive to this establishment. The author will provide Vietnamese
beverages and a Vietnamese store's mood through concept decoration. The author
is ambitious to create a one-of-a-kind atmosphere through exemplary service, a
caring environment, and one-of-a-kind decoration. The goal is to make guests feel
at ease and calm while they enjoy their beverage at Moc coffee shop.
• Price: The author displayed the optimal pricing range for a cup of coffee from the
poll in the 'Market Analysis' chapter. Long-distance transportation increases import
and tax expenditures because certain goods will be imported from Vietnam. The
author must cover this cost by charging more than a few coffee establishments.
Nonetheless, Moc coffee shop does well in terms of price ratio compared to other
coffee shops.
• Promotion: Customers can become members and receive a membership card with
a 5% discount. Furthermore, Moc coffee shop will provide clients with reward cards;
when customers order a cup of coffee or another beverage, they will receive a Moc
logo image stamp. After collecting ten stamps, they will receive free coffee or bubble
milk tea. This promotion will run as long as the business is open.
• Place: Moc is located in the heart of Helsinki, a strategic place where people can
easily access it from different directions. The location is also easy to get to by public
transportation, making it an ideal place for customers to come and enjoy a delicious
cup of coffee.
4.4.2 SWOT analysis
A SWOT analysis examines a company's strengths, weaknesses, opportunities, and threats
to assist the owner in determining strategic goals and orientations for the future. SWOT
analysis can be used for a whole company, organization, or project that the company is
working on.
26
In summary, a business SWOT analysis considers the following factors:
• Strengths: The traits of a company or project that give it a competitive advantage
over competitors.
• Weaknesses: The features of the business or project make it weaker than its
competitors.
• Opportunities: A favorable environmental factor that can be taken advantage of.
• Threats: Environmental factors can negatively impact the business or project.
Marketers use the SWOT matrix before marketing to assess internal and external
issues. Internal elements often include firm objectives, orientation, organizational
structure, critical human resources, resource utilization, operational efficiency,
operational capacity, brand reputation, market share, finance, and others. The external
variables required are the microenvironment and the macroenvironment.
Below is a SWOT analysis of the Moc coffee shop:
• Strengths: At Moc coffee shop, customers will find that we are genuinely committed
to making their experience as enjoyable and memorable as possible. We do not just
sell coffee - we sell a way of life. Moreover, that means every aspect of our operation
has been carefully thought out and designed to support the needs of our customers.
We offer a wide range of hot and cold drinks at reasonable prices. The location is at
the heart of Helsinki, so it would be effortless to find the store.
• Weaknesses: The weaknesses of Moc Coffee Shop include inexperience as an
entrepreneur. The owner is still learning the ins and outs of running a business,
which can be stressful for employees and customers. Moc is also a small business,
so it will be challenging to scale and grow without losing its identity.
• Opportunities: In addition to having fewer competitors, we have many advantages
over our competitors regarding the product itself. We offer a unique experience that's
hard to come by anywhere else in the world: Vietnamese cuisine. So even if our
competitors were larger and had more money, they would not necessarily be able
to compete on this level. The most significant advantage of Moc coffee shop is its
location. This makes it easy for customers who want caffeine fixes without leaving
work. It also means that people who visit us can easily find us on their way home
from work or school. Plus, the customers are less likely to forget where they went,
so they will be more likely to return.
27
• Threats: Moc hopes to appeal to those seeking a new coffee culture and wanting to
try something different. However, this could result in Moc losing some of its customer
bases if it adapts quickly enough or offers enough value for its customers. Another
threat is the high rent in the city center area. This is because many coffee shops in
that area are already famous, and they all successfully attract customers due to their
ample space. Moc would need to invest much money into renovating its space to
attract more customers and retain its customers' patronage.
Figure 14 SWOT analysis of Moc coffee shop
4.5 Organization and management
4.5.1 Leadership style
In Leadership in Coffee Operations on Fresh Cup magazine, Andrew Russo wrote that good
leadership helps businesses run smoothly and efficiently while avoiding turnover and loss
of property and resources and enhancing customer satisfaction. After extensive
consideration and research, the Moc business owner chooses the 'Representative
leadership style.' This type of leadership can involve group voting, gathering feedback and
making decisions, or selecting the best idea from a group and committing to it. The
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representational style failed miserably when the leader outsourced responsibilities to group
consensus. The Moc company owner will receive feedback from every employee as a
representative leader while keeping a clear stance as the leader of her party.
4.5.2 Personnel
Figure 15 Personnel chart at Moc coffee shop
The chart above indicates all the personnel of Moc coffee shop. Even though, theoretically,
each employee has a title, the responsibility is multi-tasking. For instance, a cashier can
also do table cleaning, or a barista can help the cashier explain the menu.
• Moc coffee shop owner: The manager and leader of all restaurant activities,
overseeing the operational process and responsible for legal issues. This person
wears several hats.
• Manager: The person who acts on behalf of the owner to run the staff's activities.
This person will also do accounting: Track and record all activities of the restaurant,
summarize expenses, determine revenue and profit, and report taxes.
• Barista: A person who prepares drinks.
• Cashier: The person who directly calculates expenses and collects money.
• The barista and cashier will ensure attentive customer service and introduce the
menu to the customers.
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5 Financial plan
How much capital does it take and what to prepare in advance to open a coffee shop are
common questions that anyone who wants to enter a business in this field will have in mind.
Creating a cost summary will help the coffee business owner to be prepared and extremely
careful to complete the work to operate the shop successfully. Below is a cost summary
table for the Moc coffee shop.
Figure 16 Cost summary of the Moc coffee shop
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From the cost summary table above, the estimated cost of opening the Moc coffee shop is
approximately 40 500 euros. There are two main types of cost: fixed cost and variable cost.
Fixed cost covers monthly rent, personnel, taxes, water, and electricity. While variable costs
include raw materials, they depend on the number of customers (high peak seasons and
low peak seasons), marketing fees, and maintenance.
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6 Conclusion
This thesis aims to explore the primary stages of business planning and apply the
knowledge learned in constructing a real business plan for a Vietnamese-style coffee shop
in Helsinki. This project aimed to demonstrate the value of a well-planned company, market
research, and financial preparation.
Everyone who is interested in starting their own company needs to be mentally and
physically ready to put in the hard work that is required to build a foundation for a successful
enterprise in the future. Writing a relevant business plan requires a serious approach to the
subject and personal excitement and interest.
The author has a passion in becoming an entrepreneur and introducing the authentic
Vietnamese coffee to the world so she prepared this business plan, outlining all the project's
advantages and shortcomings and the challenges entrepreneurs may face while starting
their coffee shop.
Since defining the business idea, the author has done market research using academi
business planning books and online articles. At the same time, an online poll was used to
conduct target market research. The survey results identified potential clients' primary
psychological, demographic, and social qualities. The study revealed the target group the
author should concentrate on and how she could grow her business.
In addition, inaccurate information can lead to gross errors in calculations and planning,
which in turn creates bias in the study, so locating reliable information about the Helsinki
business area and making a precise selection of the data obtained on which the study was
conducted presented the greatest challenge.
In conclusion, the business plan for a Vietnamese-style coffee shop includes information
about the company's significant characteristics, market assessments and environment, cost
summary, and other factors. It can be used as a business plan template for opening a
comparable coffee shop, but it must be customized for the intended market and location.
From the author's point of view, this business has so much potential as there is no
competitor focused on selling a national type of coffee; hence the products are diversifed
and unique. Also, it is shown from the market research that there were many customers are
ready to embrace Vietnamese coffee. The decision to go with the business depends on
careful financial analysis, market research, and the author's future vision.
Ultimately, all of the studies and knowledge about the company's strong and weak points
allow the author to predict that the Vietnamese-style coffee shop project will be implemented
32
effectively and efficiently and that the target will be met. Moc coffee shop will bring a space,
an environment suitable for many customers, especially those who want to enjoy authentic
Vietnamese coffee at a very reasonable price. Coming to Moc, customers will be integrated
into a simple and friendly cozy space, connecting people more together. By creating a
business plan for Moc coffee shop, the owner realized that it was necessary to carefully
consider adequate preparation, especially the economic and financial efficiency analyses.
33
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Figures
Figure 1 Theoretical framework of a business plan for a Vietnamese style coffee shop
Figure 2 Cong ca phe coffeeshop in Vietnam (Uyen Pham, 2021)
Figure 3 Moc coffee shop menu
Figure 4 Respondent’s gender
Figure 5 Resondent’s age
Figure 6 Respondent’s place of living
Figure 7 Respondent's frequency of visiting a coffee shop
Figure 8 Respondent’s experience with a Vietnamese-style coffee shop
Figure 9 Respondent's satisfaction with the previous experience in a Vietnamese-style
coffee shop
Figure 10 Respondent’s eagerness to try out a new Vietnamese-style coffee shop
Figure 11 Factors that affect respondents when visiting a coffee shop
Figure 12 Respondent's primary purpose when visiting a coffee shop
Figure 13 Ideal price range for a cup of coffee to the respondents
Figure 14 SWOT analysis of Moc coffee shop
Figure 15 Personnel chart at Moc coffee shop
Figure 16 Cost summary of the Moc coffee shop
37
Appendix 1. Customer Questionnaire
38
39
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