Business plan for a coffee franchise

Business plan for Cafe Latte

Executive summary

In line with South Africa's drive for gender equality and economical growth, two female entrepreneurs (one black and one white female) joint forces in pursuit of a Cafe Latte franchise from ABC Franchises. The franchise from ABC Franchises is well structured, managed and is set up to protect the branding of ABC Franchises, therefore ensuring the Cafe Latte success.


The entrepreneur are faced with the common challenge of having the required drive, energy, enthusiasm and will power to make the franchise work but lack the capital in acquiring the Cafe Latte franchise. This business case will show the feasibility to the funders in support of this business case and the two female entrepreneurs.


Business Overview


Cafe Latte introduced South Africans to healthy eating in the 70's, in line with the trend towards convenient, yet wholesome food. The brand holds the high ground in this niche of the Quick Service Restaurant market.


Cafe Latte is co-managed by Unilever and ABC Franchises, a subsidiary of Unilever PLC, a world leader in fast moving consumer goods, and a global leader in foods with a presence in 95 countries as well as 6 000 food retail outlets world-wide, Unilever offers advanced marketing, innovation and supply chain systems.


ABC Franchises manages the operational side of Cafe Latte. A team of entrepreneurs with a proven track record in South Africa and surrounding countries, the ABC Franchises management team gives franchisees access to the most professional operations and support systems and ensures the long term success of the brand.


ABC Franchises are taking the Cafe Latte brand into a new era adding a fresh new look, fresh ideas and fresh tastes to make Cafe Latte more successful than ever before. ABC Franchises plan to build Cafe Latte into a retail food experience for consumers on the go, who want fresh, wholesome food with a whole lot of taste.


The Product and Service


Cafe Latte offers a wide range of freshly prepared products to suit every need - from breakfasts, sandwiches, rolls, foldovers and salads, to juices, smoothies, bakes and speciality coffees.


Cafe Latte hero products are imported coffee, sandwiches, juices and smoothies, all of which are showing phenomenal growth world-wide. Currently, the growth of sandwiches outstrips that of burgers globally, with an annual growth rate of 9% versus 5%. There is also a growing trend towards health and wellness, with consumers taking an active interest in eating fresh, healthy foods that don't compromise on taste.




At present Cafe Latte stores are located nationally, across the country. The franchise considered is the Sunshine Mall Cafe Latte in Durban, that is already in constructed and closed awaiting an owner. Opening the site


The Franchiser provides a complete turnkey operation, from design and development to the fixtures and fittings of the site. The site is already constructed and fitted with furniture, ready to be opened. The site is currently closed awaiting a franchisee owner. The Sunshine Cafe Latte in Durban is available for opening from 1 August 2008.


Franchise Management

Franchise Structure


The current structure has been put in place in such a way as to allow the Cafe Latte brand to enter a significant sized shopping centre with a Franchisee who has an investment in the shop.

Currently the Franchisee contributes a franchisee fee (Royalty) of 7% on gross turnover (excluding VAT) and a 5% fee for marketing of the brand. Gross turnover comprises all sales taken through the point of sale system.


Operating Management Structure


A private company will be established and used to act as a vehicle for the business operations. Me Catherine Green and Me Alison Ntondo will be partners in a 50% / 50% shareholding structure. The daily operations management of the outlet will be the full time responsibility of Me Catherine Green.


The entrepreneurs


Catherine Green


Catherine Green matriculated with a N3 Business Matric from Damelin with subjects including small business management & entrepreneurship. Catherine also have short course qualifications in Drama, Graphic design, Art & film appreciation, Art management & administration. Her work experience includes (abbreviated):


business plan objective GSRC International - P.A. to Managing Director, my duties is to handle all Public Relations and Human Resources. Organising all events for staff, clients, etc. Handling clients and suppliers, helping with marketing.

business plan objective Plan International (UK) - Trainee Manager.


Alison Ntondo


Miss Alison Ntondo has attained the following qualifications:

business plan objective Diploma in Public Relations, UNISA, 2005.

business plan objective Diploma in Media Studies, Boston City Campus, 2002 Short courses included:

business plan objective Basic Business Communication (2001), PRISA.

business plan objective Financial Services: Wealth management (2006), Damelin School of Banking.

business plan objective It's My Tender (2005), Sunday Times and Cell C

Her work experience includes (Abbreviated):


business plan objective First National Bank, Client Service Consultant and Corporate Consultancy with her main responsibility providing financial advice, promoting and selling a range of financial solutions across a broad spectrum of product offerings to best meet and grow the financial service needs of high value customers

business plan objective Department of Public Service and Administration, Internship and acting as Coordinator of Employee Wellness with main responsibility including responsible for all marketing strategies on Employee Wellness Program, coordinating awareness campaigns and creating awareness on employee wellness campaign.



The Franchisor provides quality products through well trained people who are at all times responsive to customers needs, making it the first choice health food provider. The franchisor will oversee the training of the staff until the output quality is of satisfactory levels to sustain and increase the Cafe Latte brand name. ABC Franchises there after will provide continuous assistance and support on all related training.



Page 1 Page 2