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Business Description

The Coffee Mug Café will be a coffee café situated in Launceston Transit Centre bus station, Tasmania. Positioned in Launceston Market area, the café will be located in one of the new constructed Market Plaza. The café intends to offer epicurean coffees, Vienna, Hot chocolate, drip coffee, and smoothies. The all-time available offerings will include muffins, bread, cookies, doughnuts, and cake, but the simple pastry will be offered seasonally. A local bakery will be contracted to provide the fresh pastries on a daily basis. The business will operate on Monday to Friday as from 7 am to 10 pm and 7 am to noon on weekends.

The firm will offer unique coffee products that are themed with local names and the beans obtained locally and roasted. The products will also contain local ingredients, an aspect neglected by the established large coffee houses. With this feature, the locals who are the target market will have a sense of originality our coffee products and will give them priority (Pereira & Almeida, 2014).The business also intends to use various activities to encourage customers to linger around the coffee café such as games, puzzles and even hosting or sponsoring local events (Narteh et al., 2013).

The Coffee Mug Café will be a sole proprietorship business owned by Mohammed Ali, a veteran student with a lot of experience in restaurant management studies. However, the organization is expected to grow and expand to a limited company within the first five years of successful operation.

The new Coffee Mug Café is to be located in a lucrative Bus Park, Launceston Transit Centre, and an area along the Cimitiere Street near the intersection of St John Street in the new Market Plaza. The business location is excellent. It is a five minutes’ drive from the streets on both sides. Other tenants include the Cornwall Square, Tasmania Own Redline, and The Launceston College, all who bring more than ten thousand shoppers and workers per week to the bus station.  The population of Launceston is approximately 100,000 (ABS, 2016). The facility occupies 45-55 meter square with a capacity of 40 seated customers and takes away services. 

The Coffee Mug Café will be owned by Mohammed Ali who will serve as the Chief Executive Officer. Mr. Mohammed is a graduate of Academies Australasia and has graduated with Bachelors in Business Administration. While in senior school, he served as a waiter in a local college café that acquired its coffee beans locally. Additionally, he liked coffee drinking, and this job was an opportunity for him to learn more about the business. While in the university, Mohammed worked at the college coffee outlet for five years and was appointed as the assistant operational manager. After graduation, he got a job position of a senior business administrator for a large coffee house which gave him first-hand exposure in the hospitality industry, mainly the experience in initiating new businesses.

For a start, the company will hire one manager, seven glasses of water and three cashiers who will work part-time except for the manager. These workers will work on a part-time basis and in each work session there will be three waiters and one cashier during breakfast, lunch and supper and two waiters for non-peak hours. The works are expected to work for 36-38 hours for each week, as is required by the Australian labor Workers (ALW, 2016).v

Key Performance Indicators

Coffee Mug Cafe will adopt a particular criterion for hiring employees such as the use of advertisements in the local radio stations and social media. Well-designed posters for open entries will be placed on the County business boards. Then the interview date is scheduled for the selected candidates from the applicants. They will be vetted by the interviewing panel and all terms and conditions of employment communicated clearly to the successful candidates (Hoque, 2013).

This is inclusive of offering guidelines to the recruits and orientation is carried out to create an awareness of their roles and responsibilities, company policies, missions, and vision. We will make use of the on job training method to equip the newly employed staff because this technique is affordable and practical. This will give the workers an overview of what is expected and thus provide them to perform best by offering quality services to customers (Nickson, 2013).

Seminars and workshops will also be used semi-annually in county conference halls where a consultant will be contracted to undertake the task. Employees will also be exposed to other workers from established competitors to share knowledge and brainstorm (Balassa, 2014).

All employees are also to undertake capacity building sessions which will be organized by the human resource officer at the end of each financial year to commend workforce for their work and to associate outside the work setting. This aims at equipping the employees with new skills and recognizes new ways of thinking (Elnaga & Imran, 2013).

Job promotions will be based on employee performance. Employees whose performance is outstanding are more likely to be promoted. This is also dependent on the business growth and expansion. The promotion is always accompanied by the rise in salaries and allowances (Naveed,  Ahmad, & Bushra, 2011).





 General Manager

 $             200,650.00

 $     280,992.00

 $     350,004.00

 Waiters -7

 $120, 400

 $     453,243.00

 $     574,030.00


 $             352,180.00

 $     778,500.00

 $ 1,238,238.00

 Total employees




 Total payroll

 $             552,830.00

 $ 1,512,735.00

 $ 2,162,272.00

The objective of the incentives is to motivate workers. The organization will offer tea and lunch meals on a daily basis. They will also be entitled to leave on an annual basis. This is inclusive of maternity leave for three months and paternity leave of three weeks, overtime pay and bonus will also be paid accordingly (ALW, 2016)

All equipment including beverage dispensers, food warmers are to be acquired before business commencement. Equipment selection will be carried out based on factors such as durability; where the item must offer quality service within its usage period. Availability of spare parts for the serviceable machine will also be considered. Another factor of consideration in selection is cost-effectiveness and affordability. The equipment must be affordable and easy to operate (Slack, 2015).

Before the acquisition of various items, the organization will make inquiries from the respective manufacturers regarding their terms and conditions of service before settling on particular suppliers. The priority will be given to local manufacturers to minimize on assembly and delivery costs. In the event of machine breakdown, the Coffee Mug Café will contract a technician for maintenance and repairs

The business will register its intellectual property with the Intellectual Property Australian to avoid infringement (IP Australia, 2016). The company will secure Patent Protection of its invention, designs, and copyright of its new and innovative ideas and implementation. The organization has internal control measures to safeguard its intellectual property. For instance, the access to the IP will be restricted to the Chief Executive Officer only with only some aspects allowed to the general manager after entering into an assignment invention (Jolly, Fletcher and Bourne, 2012).

In alignment with the objectives and goals of Coffee Mug Café, employee performance will highly be emphasized to accomplish the organization's mission.

Expectations: All the employees will be notified of the goals and requirements. Then relevant instructions to the assigned lists of activities will be attached including standard operating procedures and the set deadlines

Concrete actions: the observable facts will be noted such as the activities employee does while watching, employee’s response when asked about actual individual performance. Self-monitoring tools will also be used (Draghici, Popescu, & Gogan, 2014).

Measurements: the outcomes will be compared to the expectations. Has the worker achieved the requirements? Were instructions and standard operating procedures followed? Were the goals attained within the timeframe? 

Capital sources

Amount ($)

Percentage Contribution

Owners Contribution



Bank Loan



Youth fund



Total Source of Funds


Use of Funds

Fixed Assets


Working Capital


Total funds Use


Start-up Expenses

Amount ($)

 Operating Capital

 Salaries and Wages

 Insurance Premiums


 Starting Inventory

 Legal and Accounting charges


 Rent deposits


 Utility deposits



 Advertising and Promotions


 Licenses and Permits


 Other initial costs


 Cash at hand


 Total Start-Up Expenses


 Start-Up Assets


 Leasehold improvements




 Furniture and Fittings


 Motor vehicles

 Other Fixed assets

 Total Start-up Assets


 Total Required Start-Up Costs



Jolly M, Fletcher AC, Bourne PE (2012) Ten Simple Rules to Protect Your Intellectual Property. PLoS Comput Biol 8(11): e1002766. Accessed on 9 October 2017

Pereira, L., & Almeida, P. (2014). Marketing and promotion in the hotel industry: A case study in family hotel and hotel group. CONSELHO EDITORIAL| EDITORIAL BOARD.

Narteh, B., Agbemabiese, G. C., Kodua, P., & Braimah, M. (2013). Relationship marketing and customer loyalty: Evidence from the Ghanaian luxury hotel industry. Journal of Hospitality Marketing & Management, 22(4), 407-436.

Australian Bureau of Statistics, 2016. 2016 Census :Tasmania. Accessed on 9 October 2017.[email protected]/mediareleasesbyReleaseDate/7F1A862B6F8B6BA0CA258148000A41AC?OpenDocument

Australian Worker Union (2016). National Employment Standards.

Hoque, K. (2013). Human resource management in the hotel industry: Strategy, innovation and performance. Routledge.

Nickson, D. (2013). Human resource management for hospitality, tourism and events. Routledge.

Balassa, B. (2014). Development Strategies'. International Economics and Development: Essays in Honor of Raúl Prebisch, 159.

Elnaga, A., & Imran, A. (2013). The effect of training on employee performance. European  Journal of Business and Management, 5(4), 137-147.

Naveed, A., Ahmad, U., & Bushra, F. (2011). Promotion: A predictor of job satisfaction a study of glass industry of Lahore (Pakistan). International Journal of Business and Social Science, 2(16).

Slack, N. (2015). Operations strategy. John Wiley & Sons, Ltd. IP Australia (2016).Australia Government. Accessed on 9 October 2017.

Draghici, A., Popescu, A. D., & Gogan, L. M. (2014). A proposed model for monitoring organizational performance. Procedia-Social and Behavioral Sciences, 124, 544-551.

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