Executive Summary

Blue Chair Coffee is a coffeehouse located in downtown Denver, Colorado. The caf
features European-style coffees, teas from around the world, light sandwiches and salads, a
bakery and dessert bar, and a space for live performers.
The downtown location has become a popular gathering place for visitors and locals,
especially those who work downtown. The business has grown quickly in the last two years
and is near capacity. Lucy Tennyson and Roberta Jackson are the owners of the
coffeehouse (50% ownership each). They want to expand to two other locations on the east
and west sides of town and are seeking investors to fund that growth.

Background Highlights
Opened in the fall of 2014
Earnings increased 30% after the first year
Serve an average of 165 people per day
Average sale per person is $14.65
Owners are experienced coffeehouse managers
Net profit this year is 12% and is projected to increase to 15% next year

Organization Structure
Blue Chair Coffee is a privately held, limited liability corporation (LLC) owned by Lucy
Tennyson (50%) and Roberta Jackson (50%). Both operate as general managers and
manageing partners. Marketing and accounting services are handled by independent
consultants. The coffeehouse also employs 10 part-time servers, baristas, and dishwashers.

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Keys to Success
The keys to success for Blue Chair Coffee (or any food service business) are summarized
below.

Market Analysis
The target market audience is a mix of residents, visitors, and workers who seek a
sophisticated yet casual coffeehouse experience. Members of this audience dine out three
or more times per week and prefer pedestrian-friendly, social environments. The following
chart shows the potential growth in this market.

Market Analysis
Potential Customers

Growth

Residents

10%

Visitors

15%

Workers

20%

Sales Forecast
The sales forecast assumes no change in the price of goods sold at the three Blue Chair
Coffee locations.
The owners expect to increase sales from $1.5 million at the end of 2016 to $2.3 million by the
end of 2018. This growth is average for coffeehouses and restaurants in Denver and takes
into account the projected increase in population in the Denver area.
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The following table summarizes projected sales in the three Blue Chair Coffee locations from
2016 to 2018.

Management Team
General Manager Roberta Jackson
Assistant Managers Bruce Glaze and Lucy Tennyson
Executive Chef Zachary Mallon
Pastry Chef Leslie Garcia

This file created specifically for Gursahil Bedi