Z ZOUL CAFÉ

Submitted by

Redha Hassan

To

Dr. Lorenzo F. Garcia

Lam Family College of Business

SF State

8

Spring 2020

Table of Contents

Executive Summary………………………………………………………………………………………..1

Company Description……………………………………………………………………………………..2

Market Analysis………………………………………………………………………………………………3

Geographic location……………………………………………………………………………..3

Target market………………………………………………………………………………………3

Competition………………………………………………………………………………………….3

Unmet needs…………………………………………………………………………………………3

Competitive advantage…………………………………………………………………………3

Advertising Plan……………………………………………………………………………………………..4

Mission Statement Objective……………………………………………………………………………5

Implementation……………………………………………………………………………………………….6

Evaluation………………………………………………………………………………………………………7

Budget…………………………………………………………………………………………………………….8

References………………………………………………………………………………………………………

9

Appendices……………………………………………………………………………………………………10

Appendix A………………………………………………………………………………………..10

Appendix B………………………………………………………………………………………..11

Executive Summary

9

Company Description Products and Services

Market Analysis

Geographic Location

The proposed location for the Z Zoul Café is in 295 Eddy Street, San Francisco, California. This street is seen as a suitable location for the business because the area is suitable for setting up an African dish-based hotel. The US 2010 census showed that San Francisco has a large population of individuals from different races and ethnic groups. This includes Asians, the Whites, African Americans, Native Americans, and other races (Conrad, Hansen, & Lamott, 2020). Likewise, Eddy Street is also densely populated with residents and the working population. This will provide a good customer base for the business (“Location Inc.”, 2020). With such a diverse population, there is a need to introduce café services that cater to the needs of all its consumers despite their race or ethnicity.

Target Market

Our target consumers are the residents of the city and tourists (both local and international) who visit San Francisco due to its attractive tourist attraction sites. These target consumers can mainly be found within offices in the city and in tourist attraction sites and thus, they might require to have meals during lunch periods or for recreational purposes (Smith, 2017). Approximately, the target market is about 50% of the population of San Francisco since this will comprise the working individuals, tourists, and families/individuals that want to treat themselves to sweet African cuisines. A report by Location Inc (2020) indicates that about 35% of the population in Eddy Street are working there. The street has a relatively high population of residency with its vacancy rate being at 14.5%. Together with tourists who flock the city, the target market in San Francisco is well established.

The target market has various needs depending on the nature of their stay in San Francisco. First, tourists have the need of exploring and trying out new food items. Thus, providing them with a chance to taste African dishes (while outside Africa) will enable them to achieve their goals. Secondly, there are some populations, especially older individuals who are looking to feed on healthy foods that will boost their immunity. Thus, having the café in San Francisco will help to meet this need. Other potential consumers are of the African origin and setting up the café will enable these populations to meet their craving needs and also give them a ‘feel at home’ feeling while staying outside Africa. Finally, there are families that will require a good place with good food and leisure that will allow them to interact as a family. Having the café in San Francisco will aid in meeting this need (Smith, 2017) and, in doing so, the café will serve lunch and other full meals to these potential customers.

Analyzing the needs and the location of the potential consumers enabled us to figure out how their buying decisions will be. For instance, a tourist will definitely try out new foods within their vicinity. The working population and families seeking recreation will also look for a place with good food and one that is easily accessible (Smith, 2017).

Competition

Our competitors are other restaurants and café located within San Francisco city. Specifically, the top five competitors are discussed as follows. Tadu Ethiopian Kitchen is specialized in Ethiopian dishes and is located in Tenderloin. They offer a variety of white and red meat dishes alongside vegetables and eggplant. Their food prices range from 15-20 dollars per plate of serving. Their main strength is that they are offering quality Ethiopian dishes that attract many customers. Their main weakness is that they specialize in a few food dishes that are mainly Ethiopian-based.

They also have a branch in Mission Bay and this attracts many tourists to the business. They advertise their business through social media websites and TV commercials. Radio Africa Kitchen specializes in offering Ethiopian dishes and it is located on Oakdale Avenue. Their prices range from 20-30 dollars and they pride in offering best chicken and tuna dishes. One of their weakness, however, is that it mainly targets the rich population in San Francisco. They mainly advertise their business through social media websites and through consumers who recommend it to their friends (“Hoodline Neighbors”, 2018).

Massawa Restaurant is an East African restaurant that is located in North Beach and it specializes in serving East African foods, mainly sambusa, beef, and fish stews. Their products are fairly priced ranging from 10-50 dollars per serving. Their main strength is that they offer legit East African dishes that attract many customers. Their weakness, however, is that they have a limited number of dishes for their dinner and snack servings, making it difficult to have a variety to choose from. They promote their business through advertisements and holding promotional sales during peak periods.

New Eritrea Restaurant is located at 907 Irving Street and it specializes in Eritrean dishes. They have a fair range of prices that attracts many customers to them. One strength s that they are located in a busy street and this provides them with a large pool of customers. Their weakness, however, is that they only specialize in Eritrean dishes. They do advertise their business through social media platforms and promotional activities.

Mourad Restaurant is located in New Montgomery Street and it specializes in serving dishes of North African Origin. Their prices range from 10-50 dollars depending on the food type being served. Their strength is that they have a large pool f customers due to their location. Their weakness, however, is that they only serve dishes from North Africa. Most of their advertisement is done via social media and through promotional activities (“Hoodline Neighbors”, 2018).

Unmet Customer Need

From this review, it can be seen that the unmet customer need in San Francisco is that there still lacks a restaurant offering good East African full-course meals. Although Massawa restaurant has tried, the types of dishes being served are limited. Therefore, venturing into the business is promising due to the existing pool of customers that will want to try out a variety of East African dishes.

Competitive Advantage

Our competitive advantage is that we shall be providing consumers with a wide variety of east African dishes which are prepared with a traditional recipe passed down from older generations to the present chefs. This will include a menu on different soups, red meat, salads, entrees, desserts, white meat, and fish dishes (“Z Zoul Café”, 2019). The café will also pride in providing full course meals to the customer’s present. This will make it unique from other restaurants that offer fast foods and snacks. Our location in the city will also give us a unique advantage as we shall serve the working populations and tourists who are interested in exploring the city.

Mission Statement and Objectives

Goals and Objectives Flowchart

Our Mission Statement

Mission Statement: to offer quality and reasonably priced food dishes that are unique to the African recipe and would meet the nutritional and satiety needs of all our customers.

GOAL

Provide consumers with unique African dishes

GOAL

Provide consumers with nutritious food items

GOAL

To allow consumers enjoy the value of their money

OBJECTIVES

Employe experienced chefs to prepare dishes using African recipes.

OBJECTIVES

Ensure that the meals being prepared have the desired nutritive value according to the health needs of the consumers.

OBJECTIVES

Ensure that all meals are reasonably priced to suit the financial capacity of all consumers

References
Conrad, B., Hansen, G.C, & Lamott, K (2020). San Francisco. Retrieved on February
21, 2020, from
https://www.britannica.com/place/San-Francisco-California

Hoodline Neighbors (2018). San Francisco’s Top 6 African Restaurants. Retrieved
on February 21, 2020, from
https://hoodline.com/2018/04/san-francisco-s-top-6-african-restaurants

Location Inc (2020). San Francisco CA (Fillmore St/Eddy St.). Retrieved on February 25, 2020, from
https://www.neighborhoodscout.com/ca/san-francisco/fillmore-st

Smith, A.N. (2017). 7 Things to Consider before Starting a Restaurant. Retrieved
on February 21, 2020, from https://www.business.com/articles/7- things-to-consider-restaurant/
Z Zoul Café (2019). A Story About Us. Retrieved on February 21, 2020, from

Home

Advertising Plan

Implementation

Evaluation

Budget

Why Is Business Location Important?

by Jason Luthor; Reviewed by: David Weedmark, MCSE ; Updated August 09, 2019

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The importance of location in business success cannot be understated. The location of a business positions it not only to attract a customer base but also to attract the right sort of talent to make the business a success. A business’s location also helps it create a brand and image, since there are always parts of a city that carry a reputation, whether it is a reputation for simple living or a reputation for luxurious extravagance.

Placing your business in a part of town that reflects your brand and products can impact the success of your establishing.

Research has shown that the location of a business is one of its most important factors for success. Location has an even larger effect for microentrepreneurs, those entrepreneurs opening a small scale business employing less than nine people. The importance of the location strategy is especially important for these small businesses becuse it impacts whether enough profits will be generated to sustain the business.

Restaurants are perhaps the ideal business to point to when discussing the impact of location. Researchers investigating restaurants found that certain parts of a city will attract customers more often than others. Whether a customer returns for a follow-up visit has a lot to do with the location. Even when the quality of service is high and the food is good, restaurants tend to attract repeat visitors only if the business is located in specific high-demand parts of a city.

Locating a Business

There are several factors to consider when choosing a business location. One of the first concerns of any business owner should be toward establishing a business that appeals to the local demographics. If the people in an area have no need for a specific kind of business, then there will be little traffic.

Conducting market research can help identify parts of a city where a business will thrive.

It’s also important to consider the location costs. The surrounding area might be high traffic, but the cost of that high traffic may come in the form of higher rent.

Business owners should find a balance between well-trafficked parts of town and the cost of the planned location. Again, researching an area in advance is the best way to identify whether it will make a suitable home for the business.

There are also other factors that come into play when choosing where to locate a business. Amenities in the surrounding area, such as available parking, may attract customers to the area. Business owners will also want to consider whether the surrounding area has a well-developed infrastructure. Without sufficient connections, it may be difficult to maintain a consistent internet connection, which may impact the efficiency with which the business conducts its operations.

Importance of Location in Business

When deciding where to open a new location, there are a few business location advantages and disadvantages to consider. As previously noted, identifying a well-trafficked area can be critical to getting a business off the ground.

Consistent traffic is the key to driving daily revenues and can help generate the money necessary to pay back debts, such as business loans.

On the other hand, the same high-traffic areas may be expensive to locate in. The cost of paying the building’s rent may only add further to existing debt. Business owners will often try to locate a store in a more affordable part of town as a result.

However, the disadvantage of locating in less costly parts of town may include low traffic, sometimes owing to a lack of surrounding amenities that would otherwise help attract business.

RETAIL SMALL BUSINESS 

 

STARTING YOUR BUSINESS

Choosing a Retail Store Location

Important Location Factors When Opening a Store

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BY 

SHARI WATERS

 Updated April 30, 2019

Where you choose to locate your 

retail business

 will have a major impact on your public presence, walk-in traffic, the potential for future income, and other elements. Choosing a location that does not account for such factors may limit the business’s ability to succeed and grow.

Before choosing a retail store location, define how you see your business now and in the future.

· What are the demographics of your core customers?

· Can you visualize your building?

· Do you know what you want to sell and what you want your business to be known for?

· Have you determined how much retail space, storage area, or the size of the office you need?

If you do not answer these basic questions, it will be hard to find the perfect location for generating the maximum amount of profit for your retail store.

Type of Goods Sold

Examine what kind of products you sell, as some goods will require certain 

types of locations

. Would your store be considered a convenience store, a specialty shop or a shopping store?

Convenience goods require easy access to let the customer quickly make a purchase. These products are also of general interest among consumers. A mall might not be a good location for convenience goods because this product type may be priced on a different scale compared with other retailers on the property. Consumers might be inclined to patronize convenience stores located on the path of their daily commutes. This can mean occupying space situated in or near a transit hub or along heavily trafficked routes.

Specialty goods fulfill more unique needs than general purpose products. Customers generally won’t mind traveling out of their way to purchase this type of product because they cannot procure them through convenience or general goods retailers. This type of store may perform well near other shopping locations because their offerings may complement each other.

A big-ticket shopping store usually sells items at a higher price that are bought infrequently by the customer. Furniture, cars, and upscale clothing are examples of goods found at a big-ticket shopping store. Because the prices of these items are higher, this 

type of customer

 will want to compare prices before making a purchase. Retailers in this segment will do well to locate their stores far away from their rivals.

Population and Your Customer

When choosing a city or state to locate your 

retail store

, research the area thoroughly before making a final decision. Read local papers and speak to other small businesses in the area. Obtain location demographics from the local library, chamber of commerce or the Census Bureau. Specialty research firms that cater to retailers could also provide demographic information. Any of these sources should have information on the area’s population, income brackets, and median age. You know who your customers are, so make sure you find a location near where your customers live, work and shop.

Accessibility, Visibility, and Traffic

Don’t confuse a lot of traffic for a lot of customers. Retailers want to be located where there are many shoppers but only if those shoppers meet the definition of their 

target

market

. Small retail stores may benefit from the traffic generated by nearby larger stores. There are several aspects retailers should consider along these lines.

· How many people walk or drive past the location?

· How well is the area served by public transportation?

· Can customers and delivery trucks easily get in and out of the parking lot?

· Is there adequate parking?

Depending on the 

type of business

, it would be wise to have somewhere between 5 to 8 parking spaces per 1,000 square feet of retail space.

When considering visibility, look at the location from the customer’s viewpoint. In many cases, the better visibility your retail store has, the less advertising is needed. A specialty retail store located six miles out of town in a free-standing building will need more marketing than a shopping store located in a mall.

Signage, Zoning, and Planning

Before signing a lease, be sure you understand all the rules, policies and procedures related to your retail store location. Contact the local city hall and zoning commission for information on regulations regarding signage. There may be limits on the size and imagery used in signs that advertise your business. Ask about any restrictions that may affect your retail operation and any future planning that could change traffic, such as highway construction.

Competition and Neighbors

Other area businesses in your prospective location can actually help or hurt your retail shop. Determine if the types of businesses nearby are compatible with your store. For example, a high-end fashion boutique may not be successful next door to a discount variety store. Position it next to a nail or hair salon, which tend to draw the same demographic of customers, to more optimal results.

Location Costs

Along with the base rent, consider all location-based costs involved when choosing a retail store location.

· Who pays for lawn care and security?

· Who pays for the upkeep and repair of the heating/air units?

· Will you need to do any painting or remodeling to have the location fit your needs?

· Will the retailer be responsible for 

property taxes

?

The location you can afford now and what you can afford in the future may vary. It is difficult to create sales projections for a new business. One way to determine how much rent you can pay is to find out how much sales similar retail businesses generate and how much rent they pay.

Personal Factors

If you plan to work in your store, think about work-life balance issues such as the distance from the shop to home and other personal considerations. If you spend much of your 

time traveling

 to and from work, the commute may overshadow the benefits of being your own boss. Also, many restrictions placed on a tenant by a landlord, management company, or community can hamper a retailer’s independence.

Final Considerations

Your retail shop may require additional handling when it comes to choosing a location. Make a list of any special characteristic of your business that may need to be addressed.

· Will the store require distinct lighting, fixtures or other hardware installed?

· Are restrooms for staff and customers available?

· Is there adequate fire and police protection for the area?

· Is there a sanitation service available?

· Does the building have a canopy that provides shelter if raining?

· Are there (blue laws) restrictions on Sunday sales?

Don’t feel rushed into making a decision on where to put your retail store. Take your time and research the area. If you have to change your schedule and push back the date of the store’s opening, then do so. Waiting to find the perfect store location is better than just settling for the first place that comes along.

ARTICLE TABLE OF CONTENTSSkip to section

· Type of Goods Sold

· Population and Your Customer

· Accessibility, Visibility, and Traffic

· Signage, Zoning, and Planning

· Competition and Neighbors

· Location Costs

· Personal Factors

· Final Considerations

Steps To Identify Your Target Market

Chuck Cohn

Former Contributor 

Entrepreneurs

This article is more than 2 years old.

·
·
·

You have put in the long hours and finally finished making that killer product or service, but your work is not yet done – now you need to introduce people to this offering. While it is relatively simple to develop general advertising for the masses, devoting time and resources to identify more targeted markets can help you maximize your marketing ROI.

Ford and GM likely know that marketing pick-up trucks to drivers in North Dakota or Texas is more effective than doing so in California or New York. Likewise, whenever my company, Varsity Tutors, introduces a new service, such as online tutoring, we carefully analyze who we market to, how, and when.

This process – knowing to whom and when to market your product or service – can result in much higher rates of return, and it involves implementing systems, rather than relying on indiscriminate marketing. If you are not sure where to begin, the steps below can help you identify your target 

TGT +0%

 market.

1. Sharpen your focus

One of the most effective things you can do to market your product smartly and efficiently is narrow your gaze – in other words, prioritize. Which efforts should you prioritize? Here are three tips to help you focus your marketing approaches:

A. Determine what needs your product fulfills

Today In: 
Entrepreneurs

Who is most likely to use your product? As you answer this question, consider factors like age, buying power, geographical location, and marital status. Take, for instance, a recent college graduate who has just started her first job – she will have different needs than a mother of four teenage children. Both women require food and shelter, but at the same time, they might choose to spend their discretionary income in very different ways. Almost 50% of millennial women, for instance, shop for clothes 

more than twice a month

, compared to only 36% of women from older generations. Millennial men, meanwhile, spend twice as much on clothing as non-millennials do.

What does this mean in a business context? If you are a clothing retailer, whether you are offering $15 t-shirts or $500 coats will lead to you very different target markets. T-shirts that retail for $15 can be bought multiple times each year, while a $500 coat might be a once-in-a-lifetime purchase. If you plan to sell $15 t-shirts, you now have a clearer idea of your target market: millennials who want variety at a lower cost.

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B. Use a funnel approach

For some CEOs, it might be helpful to think of the market selection process as a multiple staged funnel. For example, your first bucket might be gender. If your product or service is gender-specific, you can immediately narrow your audience. Your second filter might be age range. If you manufacture surfboards, marketing your product to octogenarians might result in very limited success. Your third and final sieve might be income level – the family purchasing a Kia probably occupies a different income bracket than the family purchasing a 

Lexus

 .

As you move through these successive filters, you will eventually arrive at a more focused target market for your product. You can experiment with the order of the sieves and different combinations of filters to see whether you receive a different final result. These final groups you arrive at will make it easier to find the sweet spot that is the intersection of “highly interested” and “able to buy.”

C. Emphasize primary value propositions

Who is most likely to be interested in the values your product or service offers? Suppose your company makes a baby stroller that is easy to fold into a compact, portable shape. What types of parents will value it? Perhaps it is those who travel frequently. Maybe you manufacture a DSLR camera that can withstand drops onto hard rock and submersion in water. In this case, your target market might be outdoor enthusiasts who shop at stores such as Patagonia and REI. Whatever your product or service, list out the core values that your product offers, and then draw a line (or lines) to the demographic groups that prioritize these values.

2. Obtain data

Choosing the right markets also means infusing conclusions with objective data. This data might come from a variety of sources. As you work to gather it, here are some guidelines in mind:

A. Gather survey data to identify potential markets

Metrics are a great way to pinpoint promising demographic groups. This might mean conducting surveys via e-mail blasts or newsletters, or you might find it worthwhile to contact a marketing firm that can help you gather preliminary data. Either way, the key is to collect demographic data in your surveys. This can enable you to correlate positive responses to your product or service with specific demographic groups – the same groups that you should later target.

B. Draw on existing data aggressively

If your business offers a product or service similar to those already on the market, do as much homework as possible. What demographic groups are buying these products? When do they buy them? Which specific products in the entire lineup are most popular? There is a plethora of data that you can find online to gather a macro view of the type of customers who are purchasing products similar to what you will offer. You can also build your own micro view of specific types of target customers. Here is one example of basic market research:

Go spend half a day at your local coffee shop. As people place their orders at the counter, take careful notes – what drink did each person buy? How old is each person, and what is his or her gender and ethnicity? Is a particular drink especially popular? When is the store busiest? Once you compile your data, you can then apply the findings to the marketing efforts for your own coffee company.

C. Look to your own network for data

The next time you are with family or friends, look at what products they use. Would they purchase your own product or service? Asking questions as straightforward as, “Would you use this? Do you have a need for this product?” or, “Do you know anyone who would use this?” can provide you with valuable data.

You can also tap into your network of business colleagues, funders, and mentors. Ask them to carefully examine your product or service, maybe even to the extent of trying it for several days or weeks. They might surprise you and think of target markets that you would have never imagined, as well as innovative ways for those groups to use your product.

Whenever possible, draw on diverse perspectives as you build your marketing efforts. Your end goal is to make it easy for your target demographic groups to see connections between their needs and your product. The analysis of multiple streams of data, as well as a continual effort to identify your target customers, can help you achieve this end and maximize your ROI.

Chuck Cohn is the CEO and founder of 

Varsity Tutors

, a technology platform for private academic tutoring and test prep designed to help students at all levels of education achieve academic excellence.

Chuck Cohn

I am the Founder and CEO of Varsity Tutors, a live learning platform that connects students and professionals with personalized instruction to achieve any goal. I founde…

 Read More