The Rate Of Growth Of Coffee - 1114 Words

Expected rate of growth Coffee beverages are extremely popular in the United States, as they represent 75% of all caffeinated beverages consumed in the United States (Reynolds, 2014). Coffee shops make up the fastest growing restaurant business in the United States (Reynolds, 2014). VR Coffee Cafà © first year of sales is expected to be $850,000. We expect year two sales to increase 17.65% to $1,000,000 and year three to increase 20% to $1,200,000. We fully expect this large increase in sales because of two main reasons. First, we expect that our coffee shop will become increasingly popular in our community, due to word of mouth, increased store recognition, and increased store rating and positive feedback on social media apps like Yelp†¦show more content†¦Because of this statistic, we be focusing on one establishment, at least for five years until we feel that establishment will not meet the fate of so many small businesses that came before it. After the five year waiting period, we will look to expand into new markets, especially markets that are populated by young adult male gamers. We will look to strategically place our new businesses next to where there they are gathered in a high population, particularly near military training bases. One of those strategically placed locations will most likely be Biloxi, Mississippi. Biloxi is home to Keesler Air Force Base, which is a training base for new Airmen. Another thing that makes Biloxi, MS such an attractive location is that it is located in a highly tourist environment. Having a steady flow of Airmen, as well as having a lot of tourists, will definitely help this potential VR Coffee Cafà © location gain positive traction in the community. If this location turns out to be a success, we will then be looking at more locations near military training bases. Other potential expansion locations, besides being in close proximity to military training bases, are next to large college universities or cities that have large populati on of college students. Potential locations include: Gainesville, Florida (Home of University of Florida), State College, Pennsylvania (Home of Penn State University), and Blacksburg, Virginia (Home of Virginia Tech).