¶ … rapid increase in the number of coffee houses in Hong Kong, it is considered the latest fad and is very popular hangout for younger crowd. However the price of coffee in these houses is usually much higher compared to regular coffee found in other less trendy outlets. For this reason, many grocery stores, bakeries and other such places have started using coffee machines to offer quality coffee to its customers at a much lower price. The popularity of coffee machines is thus on the rise and we have thus decided to invest in this business and become supplier agents of coffee machines to such outlets.
Our research indicates that the market for coffee machines is all set for immense growth. This is because coffee is no longer the drink of the few. It is very popular among all age groups and with the introduction of new tastes and mixtures in coffee, people are more interested in drinking coffee than ever before. But recession around the world has also made people more budget-conscious and they do pay closer attention to price now. The price in such outlets as Starbucks is very high and people can no longer afford to spend this price on regular basis and are thus looking for alternatives.
We have found that the best alternative is the presence of coffee machine in busy places like grocery stores, bakeries, airports and hospitals etc. Customers can pay a nominal price to get high quality coffee especially espresso. We have already seen these machines in use at many busy places and we have seen how interested people are in using these machines. We have thus planned to invest in this business by introducing a new and better version of coffee machines for which we will be the sole distributor in HK.
These coffer machines will have easy operating mechanism and everyone will be able to use it to get the best coffee they can at a very nominal price.
We plan to install 50 machines in the first year to see how they will be utilized and to study consumption patterns of people. After that we shall invest more into these machines and in three years, we plan to install 300 machines in most busy places like convenience stores. We believe we will be able to break-even in a short period of time and will soon be profitable. These sales and profit forecasts are presented in detail in the report along with some other important details such as expected cash and income flow.
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