Birch Coffee is a curiously quickly growing franchise in New York City. One of the reasons is that turning a profit was not the main goal in the birth of the operation. Rather, the Birch creators wanted to serve the world’s best brew while making a worldwide impact on the coffee trade as a whole. Only purchasing beans from fair trade farms that are completely environmentally sustainable, they wanted their shops to benefit “everyone from the tractor to the table” (Birch, 2017). Once a customer orders and is handed their hand crafted drink, one will find “Birch Loves You” on each cup; the “Birch Guys” send their love personally to every customer. Thus, I chose this business as it offers something a little different than other …show more content…
Appendix 2 shows the typical saturation of specialty coffee shops in Brooklyn, causing the site location to be daunting. Next, Appendix 3 shows the map of the Brooklyn location selection in relation to other specialty shops and notes ample foot traffic. Keeping with Pape’s guide, foot traffic, and are 2 possible sites that fit into budget and lease requirements, note the location selection. There is indeed a Japanese/French Café within 3 blocks; however, they do not serve much coffee and primarily serve wine and …show more content…
This means making no profit and simply being able to cover all costs. This is not typically an ideal number and profit is always good, but it is indeed valuable to see where a lowest possible volume could be. Note: For the purpose of this exercise, only drinks will be used in calculating a breakeven point. There is a small amount of pastries and retail sold, but the purpose is to sell higher ticketed drinks. Most companies will see a mix of products in determining their BE point however. Additionally,only one year will be used in the calculation as well, as it is assumed the goals and costs should increase each