Old house cafe remodeling business plan

Old house cafe renovation plan

1. Concept

1. Target Audience

• Men and women in their 20s to 40s: Many people in this generation are interested in history and culture, and prefer a retro atmosphere. They also have a strong desire to spend some time relaxing in a cafe.
• People interested in history and culture: People who understand and can enjoy the historical and cultural value of old houses.
• People who like a retro atmosphere: A demographic that wants to spend time relaxing in a nostalgic atmosphere.
• People who want to relax in a cafe: People who are looking for a space to escape from their hectic daily lives and relax.

2. Concept

• A calming atmosphere that makes the most of the charm of an old-style house: The space is created making use of the beams and pillars that are unique to old-style houses, creating a calming Japanese atmosphere.
• Locally sourced menu: Offering healthy menu items made with fresh, locally sourced ingredients.
• Hosting workshops and events: We will hold workshops and events that introduce the traditional crafts and culture of the region, deepening ties with the local community.

Second, market analysis

1. Future Prospects

In recent years, old-style cafes have become increasingly popular. The unique atmosphere and historical atmosphere of old-style houses attract many customers. Old-style cafes also contribute to revitalizing local communities, so they can also expect support from local governments.

2. Popularity

Old-style cafes are becoming increasingly popular as spots that look good on social media, and because each old-style cafe has its own unique character, customers can choose the cafe that best suits their tastes.

3. Competition

Competition is fierce among old-style cafes, so to differentiate yourself, it is important to offer a unique concept and service.

Main competitors

3. Renovation Plan

1. Property selection

• Easy access: Choose a location that is easily accessible by public transport or car.
• Parking available: Without a parking lot, customers will feel inconvenienced.
• Having a large garden: If you have a large garden, you can set up terrace seating, etc., and create an open space.
• Retains the atmosphere of an old house: Choose a property that makes the most of the charm of an old house.

2. Modifications

• A design that makes the most of the good qualities of old houses: The space is created making use of the beams and pillars that are unique to old houses, creating a calm, Japanese atmosphere.
• Cafe space: A cafe space will be provided where you can relax and unwind.
• Workshop space: Provide a space where workshops and events can be held.
• Event space: A space will be provided where events such as live performances and concerts can be held.

3. Menu

• Locally sourced menu: Offering healthy menu items made with fresh, locally sourced ingredients.
• Seasonal menu: We offer seasonal menus using seasonal ingredients.
• Drink menu: Offers not only coffee and tea, but also homemade drinks
  

IV. Marketing

• Promotion via social media: Use social media such as Instagram and Facebook to spread information about your cafe and events.
• Create a homepage: Create a homepage and post information about your cafe, the menu, how to get there, etc.
• Flyers and posters: It is also effective to post flyers and posters at local events or in free papers.
• Collaboration with the local community: Collaborate with local tourist facilities and events to attract visitors.

5. Revenue Plan

1. Sales Plan

1.1 Sales

Sales for old-style cafes vary greatly depending on the size of the cafe, location, menu, customer demographics, etc. The figures below are just a guide.

• Small cafe (less than 10 tsubo): Monthly sales 1 million to 2 million yen
• Medium-sized cafe (10-20 tsubo): Monthly sales 2 million to 3 million yen
• Large cafe (over 20 tsubo): Monthly sales 3 million to 5 million yen

1.2 Breakdown

The breakdown of sales is as follows:

• Cafe sales: Sales from the sale of drinks and food
• Workshop sales: Revenue from participation fees for workshops and events
• Event sales: Sales from admission fees to events such as live shows and concerts
• Other sales: merchandise sales and takeout sales

2. Cost Plan

2.1 Fixed costs

Fixed costs are costs that occur every month. Below are the main fixed costs.

• Rent: Store rent
• Labor costs: Staff labor costs
• Utility bills: electricity, gas, water
• Communication expenses: telephone charges, internet charges
• Depreciation: Depreciation of kitchen equipment, furniture, etc.
• Taxes and public charges: Corporate tax, income tax, resident tax, etc.
• Insurance premiums: Fire insurance, employment insurance, etc.
• Other: Repair costs, advertising costs, etc.

2.2 Variable costs

Variable costs are costs that increase or decrease depending on sales. Below are the main variable costs.

• Ingredients cost: Cost of purchasing ingredients
• Consumables: Tissues, paper towels, etc.
• Packaging costs: packaging costs for take-out containers and bags
• Transportation costs: Transportation costs for purchasing ingredients and hosting events
• Other: Credit card fees, etc.

3. Income and expenditure simulation

The table below is an example of a simulation of the income and expenditure of a traditional Japanese-style cafe.

 

4. Break-even point

The break-even point is the point where sales are equal to costs. In the above simulation, the break-even point is monthly sales of 2.7 million yen. In other words, if monthly sales are less than 2.7 million yen, the business will be in the red, and if sales are 2.7 million yen or more, the business will be in the black.

5. Funding

An initial investment is required to open a traditional Japanese cafe. The initial investment includes the following costs:

• Property acquisition costs: Acquisition costs for stores
• Renovation costs: Renovation costs for the store
• Kitchen equipment expenses: Cost of purchasing kitchen equipment
• Furniture and equipment expenses: Expenses for purchasing furniture and equipment
• Working capital: Start-up