Small batch locally roasted, artisanal coffee that can go where the people are here in the Hampton Roads area. Additionally selling coffee and merchandise via our ecommerce site that is still in development.
Several artisanal roasts ready for production.
Drink menu perfected
The plan is scalable. We can start as a mobile coffee truck able to bring small batch, locally roasted fair trade artisanal coffee and beverages to the major gathering sites around Hampton Roads, Virginia. Virginia Beach itself sees approximately 19 million visitors every year with little options for quality coffee outside of the major national brands of Starbucks and Dunkin. With the large visitor population as well as the US Navy demographic here, millennials make up about 35% of the population and provide a significant market for coffee and quality beverages.
Coffee is the substance that fuels the world, but there are limited options in Hampton Roads. There are only 6 shops that roast their own beans and none that offer mobile or drive up service. In the post pandemic world many people are still uncomfortable in a crowded environment and yet need coffee. This would provide that atmosphere. As Pacific Northwest natives we want to bring some of that hipster coffee culture to the area.
For a coffee truck:
$8.00 x 12 x 8 =$768 Gross Revenue per day
Gross Profit per Day =$768-$92.97 = $675.03 Gross Profit per day
Thus, to break even using those national averages would need to sell approximately 4 days per month. If we expand out to selling 20 days a month based on these averages:
$768 per day x 20 days = $15360 per month
Subtracting the operational costs gives a Gross Profit per month of:
Gross Revenue – Total Operational Costs = Gross Profit
$15360 - $2789 = $12571 per month
By either upselling the national average per receipt, or increasing the average number of drinks per hour we can increase our profitability substantially.
This is where location management will be key, keeping an eye on events and tracking where people are to maximize our sales per day. The intention will also be to work with the commercial kitchen to register for festivals and other catering operations to increase the return on the investment and maximize our own exposure.
Additionally these sales estimates do not take into account the potential for online sales of merchandise, coffee beans and cold brew growlers that could substantially increase profitability at no cost. By being able to develop our website and marketing internally we can reach markets beyond just where the trailer is located and expand our sales reach.
Objective/Future (Use of funds)
Purchase brick and mortar coffee shop and quality food truck, begin providing top quality, small batch, locally roasted coffee and beverages to Hampton Roads, Virginia area.
Being roasting coffee and sell at local farmers markets and events until enough revenue is generated to expand
Adam Christensen - CFO
Career Naval Officer with top flight MBA ready to launch new opportunity. Pacific Northwest native and coffee connoisseur.
Mehgan McMorries - CEO
Pacific Northwest native and world traveler. Coffee connoisseur.