The Puzzler's LatteBusiness Description:
The Puzzler's Latte is a new, interactive cafe in Davis, California featuring a welcoming environment with puzzles and board games for all ages and personalities. Customers will visit this new cafe, where they can rent artisanal puzzles and board games. Similar to an internet cafe, customers will be charged for the time they spend in the cafe, and can purchase food and beverages. The Puzzler's Latte will sell brand merchandise, such as mugs, t-shirts, and stickers to advertise our business, and sell puzzles to increase the business of our partnered puzzle companies. We will be offering a loyalty program for members to work in a separate room on larger, collaborative puzzles with members of the community. Every week, we will change the puzzle, from a large 1000 piece puzzle to several 200-300 piece puzzles mixed together. Members of the loyalty program will also gain points for solving puzzles that can be used to purchase merchandise and puzzles. |
A Place Where Everyone Fits
Because Davis is a college town, we plan to target college students and adults who enjoy mentally stimulating activities, and families who would like to find alternative activities from video games for their children.
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Sales Pitch
At The Puzzler's Latte, we offer our customers a fun, interactive experience to destress from work and school, with a variety of unique board games and artisanal puzzles. We will be marketing ourselves as home away from home, a place where everyone fits, and a place where curiosity and creations are celebrated. Charging customers for the time they spend, our service will provide a new alternative to video games and streaming as a source of entertainment. |
Executive Summary
Justin Yeung - Product Developer Mr. Yeung is a smart cookie who knows that the customer is always right, he is always coming up with new ideas to keep our customers happy. |
Executive Summary
Teigen Johnson - Market & Finance Analyst Ms. Johnson is a curious spirit with a keen eye for detail and analysis, with an ear for our customers which helps our business run smoothly. |
Mission Vision Value
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Community Connection At The Puzzler’s Latte, we believe in supporting the community that has helped realize our dreams.
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Industry Outlook
Accommodation & Food Services Industry
The Puzzler's Latte is proudly part of the Accommodation & Food Services Industry as part of the sub-sector Limited Food Services and Drinking Places preparing meals, snacks, and beverages to customer order for immediate on-premises and off-premises consumption.
Accommodation & Food Services Industry
The Puzzler's Latte is proudly part of the Accommodation & Food Services Industry as part of the sub-sector Limited Food Services and Drinking Places preparing meals, snacks, and beverages to customer order for immediate on-premises and off-premises consumption.
- Statistics
- Revenue in 2019 increased to $51bn
- Number of businesses increased to 77,065
- Industry growth from 2014-2019 was 4.7%
- In the next five years, the industry is expected to rise at at an annualized rate of 0.9% (Smulison).
- Consumer Trends Our Business Fits
- Health consciousness is on the rise, we will partner with local bakeries for organic, health conscious foods & drinks
- Low economic growth leads to consumption decrease, but we promise affordable prices
Customer Profile
Market Size
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Psychographics We surveyed 60 respondents between the ages 16-24 Results
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Pricing Strategy & Position
The Puzzler's Latte will be economically competitive in several ways:
The Puzzler's Latte will earn a profit through several revenue streams:
The Puzzler's Latte will be economically competitive in several ways:
- We will be targeting a niche market in Davis. Instead of marketing as a new coffee shop, we will be positioning ourselves as an interactive cafe. Customers will come to our cafe for the activities while enjoying our food and beverages.
- We will hold unique activities for customers to do that very few local businesses offer, from our artisanal puzzles to our special board games.
- We will be charging people for the time they spend at our cafe, charging $10 for every half an hour they spend solving a puzzle or playing a game.
- We will create a loyalty program that benefits returning customers, giving them exclusive activities and discounts.
- We will hold event nights to increase community awareness and attract new customers, including puzzle competitions, Dungeons and Dragons nights, Magic the Gathering Nights, trivia nights, and weekly student discount nights.
- We will be selling branded merchandise to increase awareness of our company, and sell older and excess puzzles to our customers as another revenue stream.
- Every few months, we will introduce new puzzles to our customers, and sell the used puzzles at a discount
The Puzzler's Latte will earn a profit through several revenue streams:
- We will be charging our customers for the time they spend at our cafe. For every 15 minutes the spend solving a puzzle or playing a board game, we charge $10 per person.
- We will be selling our surplus puzzles and older, used puzzles to customers. The surplus puzzles can be sold for a profit, while the older puzzles can be sold to minimize operational costs.
- We will be selling branded merchandise, including t-shirts, mugs, stickers, and reusable water bottles, each one sold for a small profit. For example, we will be printing our shirts at Quali-tees in Woodland for $10 and selling them for $15.
- We will be selling beverages and food for a small profit to our customers, sourcing food from Upper Crust and beverages from Tea List.
Future Expansion
As The Puzzler's Latte grows, we have several plans to expand our business and community connections:
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Competition
The Puzzler's Latte has several competitors in Davis: Teabo, T4U, Starbucks, and Philz Coffee. Here are how we differ from the competition:
Teabo and T4U
Starbucks and Philz Coffee
The Puzzler's Latte has several competitors in Davis: Teabo, T4U, Starbucks, and Philz Coffee. Here are how we differ from the competition:
Teabo and T4U
- Similarities
- Interactive cafe selling drinks and entertainment
- Used as a study space
- Target audience of high school & college age students
- Differences
- Food and beverages are primary focus of business
- Serve boba instead of cafe drinks
- Strengths
- Affordable drinks
- Fairly affordable will a fun space where students enjoy their time to gather together
- Davis Staple
- Weaknesses
- Limited seating
- Expensive food
Starbucks and Philz Coffee
- Similarities
- Cafe style location
- Used as a study space
- Large customer base
- Differences
- Corporate chains
- No interactive activities
- Food and beverages are primary focus of business
- Strengths
- Brand recognition - large customer base
- Free wifi
- Can advertise as a premium business
- Strong advertising
- Weaknesses
- Expensive
- Rely on corporate recipes and supplies
Promotion & Marketing
The Puzzler's Latte will be marketing and promoting our business in several ways:
The Puzzler's Latte will entice customers with three different plans:
The Puzzler's Latte will offer the following incentives:
The Puzzler's Latte will be marketing and promoting our business in several ways:
- Grand Opening: We will be holding a grand opening, where we will be offering free merchandise for anyone who solves a puzzle, and stickers for anyone who attends. We will also be offering a 1 month 50%-off trial to our loyalty program to community members who attend as well as discounts on the time slots.
- Online Advertising: We will create online ads to attract Yolo County members to our venue, as well as raising interest in signature events. Occasionally, we will give discounts for people who show the advertisement upon arrival.
- Flyers: We will distribute flyers at schools to attract Yolo County members to our venue, as well as raising interest in signature events.
- Branded merchandise: We will offer branded merchandise for our customers to purchase or win as rewards.
The Puzzler's Latte will entice customers with three different plans:
- Point system: We will award points to customers who complete puzzles, with the reward varying based on the difficulty of it. These points can be used to purchase food and beverages, branded merchandise, or older and excess puzzles.
- Loyalty program: Members of the loyalty program will be given access to larger puzzles, from 1000 piece puzzles to several smaller puzzles mixed together. These will be held in a separate room for loyalty members to collaborate on. Loyalty members will also earn discounts and the right to reserve puzzles and board games for specific time slots.
- Event Nights: We will be holding special nights focused on Dungeons and Dragons nights, Magic the Gathering Nights, trivia nights, and weekly student discounts to attract new customers and raise community awareness.
The Puzzler's Latte will offer the following incentives:
- Cost effective: Instead of buying a variety of puzzles and games, it would be cheaper for an individual or family to rent the activity, and continue using our service for new puzzles and games.
- Loyalty program: Often times, larger challenging puzzles are more expensive. By offering these larger puzzles through a loyalty program, they are more feasible for customers to afford. Members of the loyalty program will also save money when they rent the regular activities, enticing them to visit to make the most of their membership.
- Reward system: By using a reward system, we give our customers a goal to reach, resulting in them using our service more.
- Academic Activity: Instead of playing video games or streaming on platforms such as Netflix or Hulu, our customers are given the chance to participate in mentally stimulating activities.
- DJUSD Support: By donating part of our proceeds to the local schools, DJUSD families will be inclined to pay for our service to help support the schools as well.
- Instagrammable: People who complete puzzles will be able to post unique and mesmerizing photos on their social media.