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Business Description

Chocco Loco Café is a unique project that combines the best European coffee-shop traditions and the relaxing atmosphere of Chinese tea culture. Chocco Loco Café is meant to be the perfect place for a morning cup of coffee to start the day and set the mood, or for a lunch break, to take one’s mind off of business issues and have a relaxing half-hour respite, as well as an ideal evening breather after a tough day in a pleasant and stress-free environment. Chocco Loco Café’s target clientele can be quite broad—from adolescents to adult businessmen, or just anybody who appreciates gourmet coffee and values comfort.

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Vision and Target Clientele

Chocco Loco Café will always aim at setting the perfect atmosphere for a comfortable and stress-free time, any hour of the day or night. Chocco Loco Café will also be particularly distinguished by its broad menu of home-brewed coffee drinks, prepared in accordance with various traditions from all over the world. Whether one is a definite gourmet coffee specialist or simply an inquisitive visitor, Chocco Loco Café will make everyone fall in love with global coffee culture traditions.

Mission and Goals

Chocco Loco Café will seek to offer an exceptionally rich menu of coffee-based drinks and desserts for every taste. Furthermore, Chocco Loco Café will also offer its visitors the opportunity to brew their own coffee and make their own chocolate under the supervision of the restaurant’s chef. Chocco Loco Café’s ultimate aim is to position itself as a special place with original coffee-brewing recipes from all over the world, perfect for a romantic date or a cozy getaway for anyone who values exceptional atmosphere and top-quality service.

Business Strategies:

Chocco Loco Café will rely on:

  • a unique menu that offers even for the most sophisticated coffee lovers
  • a wide range of original desserts for every taste
  • qualified and polite personnel offering exceptional personalized service
  • special interior design, aimed at creating a peaceful home-like atmosphere
  • exceptional quality of all ingredients provided by the world’s most reliable coffee producers famous for the quality of their products

Funds Requirements and Financial Planning

The funds required by Chocco Loco Café will be derived from the owner’s savings and a substantial bank loan from Chase Loan Services of $150,000.


The projected expenditure is as follows.

Fixed and sunk costs (in $)

Club development and sunk costs: 453,000

Capital expenditure: 211,000

License and registration: 3,000

Consulting services: 80,000

Web domain registration: 1,000

Equipment: 13,000

Promotion: 10,000

Personnel: 300,000

Total Expenses 1,071,000

Income Projections and Explanation

Chocco Loco Café will base its income on the restaurant’s profit, as well as selling professional coffee-brewing equipment. There will be a flexible discount system for regular customers. In two to three years, the number of regular customers is forecasted to grow as follows: year one – 500; year two – 2,000; year three – 4,000 customers. Coffee equipment sales are expected to increase each year by 30 percent, except year one. The daily sales during the first six months are expected to be around $500, progressing to $2000 in year two and $5000 in year three.

The revenue derived from one restaurant will be 500 x 360 days =$180,000 in year one; 2,000 x 360 days =$720,000 in year two and; 5,000 x 360 days =$1,800,000 in year three. The revenues gained from equipment sales are expected to be $87,000 ($10,000 in year one, $22,000 in year two, and $55,000 in year three). In year three, after deducting all expenditures, the net amount will be (1,855,000 – 1,071,000) = $784,000. Deducting the bank rate of 150,000 per year then the net profit, it will be $634,000.

Future Prospects

Chocco Loco Café will seek to diversify its services in other areas by opening a network of restaurants across the state and ultimately, enter the market of other states as well. Chocco Loco Café will seek renown mainly through its quality service, unique menu offerings and exceptional hospitality. The Chocco Loco Café will plough back a substantial amount of its profit into enhancing services and menu, and expanding to other areas.

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