Khobar is a coastal city and visited by many visitors due to its shopping malls and restaurants. The city is famous for its merchants and shopkeepers. Many people from the country visit the city for shopping, scuba diving, and other water sports. The city has many coffee bars and restaurants. Recent statistics have shown that Saudi Arabia is the fastest growing coffee market in the region. It means that the demand for coffee will increase significantly over the years. For meeting the increasing need for coffee demand in the country and the region more coffee bars or shops will be needed. There is a need to establish a coffee bar in the city because not only it will meet the increasing coffee demand in the country but also help the city to attract more visitors from the country and neighboring GCC states. As mentioned above this coffee bar will be different from the existing coffee bars and will provide a unique ambiance to its customers. The look of the coffee bar will be different and its menu will have a variety of options for the customers. In short, the coffee bar will become a popular destination for the residents of the city. The coffee has the potential to generate a significant amount of revenue.

Introduction of a new coffee bar in the city of Khobar

Project Overview / Statement of the Problem of a new coffee bar in the city of Khobar

Khobar city is situated in the Eastern province of Saudi Arabia and among the largest cities in the country. Khobar is a coastal city and visited by many visitors due to its shopping malls and restaurants. The city is famous for its merchants and shopkeepers. Many people from the country visit the city for shopping, scuba diving, and other water sports. Not only the city is visited by the people of Saudi Arabia but also the people of neighboring GCC states also visit the city. In short, it can be said that Khobar is a major tourist attraction.

The city has many coffee bars and restaurants. Recent statistics have shown that Saudi Arabia is the fastest growing coffee market in the region. It means that the demand for coffee will increase significantly over the years. For meeting the increasing need for coffee demand in the country and the region more coffee bars or shops will be needed. Not only the new coffee shops will meet the increasing need for coffee but it also will provide a place in Khobar city where tourists can hang out or enjoy quality time. as discussed, earlier Khobar is visited by the people from the country and neighboring states. In the upcoming year, the number of visitors will increase which means that more coffee bars will be needed in the city.

Therefore, for meeting the increasing needs of coffee in the country and attracting more tourists in the city of Khobar a new coffee bar will be established. This project (new coffee bar) will contribute to the existing lifestyle of the city and will become a popular place for the residents of Khobar city and the visitors who visit the city. This coffee bar will differentiate itself from the existing coffee bars by providing a unique ambiance to the visitors. Through its unique ambiance not only the coffee bar will be able to stand out in the market but also will be able to attract a significant number of customers.

Background of a new coffee bar in the city of Khobar

As mentioned earlier the city is famous for its lifestyle and many people visit the city for its shopping malls coffee bars and restaurants. Being a coastal city, it attracts dozens of people who like activities like scuba divining, fishing, and other water sports. The people who visit the city demands of the products such as coffee. The demand for coffee is increasing significantly in Saudi Arabia and the other GCC countries. So it can be said that there is a need to establish more coffee shops so that increasing demand for coffee can be fulfilled. Furthermore, the city will be able to attract more visitors if it has more coffee shops and restaurants (GOVINDARAJAN, 2007).

Need of a new coffee bar in the city of Khobar

There is a need to establish a coffee bar in the city because not only it will meet the increasing coffee demand in the country but also help the city to attract more visitors from the country and neighboring GCC states. As mentioned above this coffee bar will be different from the existing coffee bars and will provide a unique ambiance to its customers. The look of the coffee bar will be different and its menu will have a variety of options for the customers. In short, the coffee bar will become a popular destination for the residents of the city. The coffee has the potential to generate a significant amount of revenue (Spender, 2014).

Benefit of a new coffee bar in the city of Khobar

This project is beneficial for both the residents of the city and for the company that will establish the coffee bar in the city. The business has the potential to generate a huge amount of profit. The demand for coffee is increasing in the GCC region which means that a significant amount of customers will visit the coffee bar. Also, the coffee bar is going to be opened in the city of Khobar which is already famous for its shops and restaurants. This feature of the location is another plus point for the business. By differentiation and providing a variety of food products in the menu the coffee bar has the opportunity to become a popular destination for the visitors.

Qualifications of Personnel of a new coffee bar in the city of Khobar

For running and management of the coffee bar employees are needed. Employees are going to be recruited based on their experience and relevant qualification. Those employees are going to be preferred who have relevant working experience in the coffee shops. The employees must be graduate to be selected for different positions. Different employees are needed in the coffee bar such as manager, cashier, barista and supervisor, etc. the interviews will be conducted and employees will be shortlisted after the interview (Simons, 2011).

Data Sources of a new coffee bar in the city of Khobar

Before starting a business a significant amount of data will be gathered so that the business can meet the requirements of the company and can become successful in the upcoming future. The information regarding the current market trends will be gathered to know what the customers are looking for.

Limitations and Contingencies of a new coffee bar in the city of Khobar

The external environment factors such as economic, political, social and technological factors can cause an impact on the revenue and profitability of the business. The sudden changes in the market trends can limit the success and profit of the business. To counter the external environment factors contingency plan will be established at the beginning of the project. The contingency plan will help the business to counter the sudden changes in the market trends efficiently. If the sudden changes in market trends immerge then the strategy which is mentioned in the contingency plan will be adopted to save the business from financial loss (International Organizations, 2018).

Scope of a new coffee bar in the city of Khobar

This project has huge scope because not only it is meeting the increasing demand for coffee but will also provide a new attraction in the city of Khobar. The coffee shop will increase the visitors in the city by providing them unique ambiance and a variety of food options on the menu. The coffee shop is located in a city that is famous for its lifestyle, shopping, and dining. It can be said that in a short amount of time the business will be able to generate a significant amount of profit. Due to differentiation, the business will soon create an image in the mind of its customers. (Kourdi, 2015).

Proposed Plan of a new coffee bar in the city of Khobar
Objectives and Methods of a new coffee bar in the city of Khobar

The following are the key objectives of this business project:

· To meet the increasing demand for coffee in the region

· To provide a place for hangout

· To become a new attraction in the city

· To provide a variety of food and beverage options to customers

· To provide an exciting ambiance to customers

· To create a significant amount of revenue for the company

· To increase the number of visitors in the city

The place will be rented in the prominent location of the city and then the place will be refurbished to meet the requirements of the business.

Timetable of a new coffee bar in the city of Khobar

A period of 4 months will be taken to plan and deliver the whole project. In the first phase project plan will be established. The budget and the design of the shop is planned in the first month of the project. In the same month, the place will be rented where the shop is going to be established. The refurbishment of the place will begin in the second month of the project. The whole place will be redesigned to meet the needs of the business. In the third-month, refurbished work will be completed and the advertisement for the shop will begin. In 4^th month the project will be completed and the shop will be opened for the public (Campbel, Edgar, & Stonehouse, 2011).

Materials and Equipment of a new coffee bar in the city of Khobar

The material will be required for renovating the shop. Wood will be required for renovating the interior, new chairs and furniture will be purchased for sitting purposes. The coffee and food making equipment will be purchased. The light and air conditioning system will be installed in the shop. For making the atmosphere of the shop unique decoration items and lighting systems will be installed for making the look of the shop different than other coffee shops (Campbel, Edgar, & Stonehouse, 2011).

Personnel of a new coffee bar in the city of Khobar

As discussed earlier different employees are going to be recruited for running the shop. The coffee bar needs a manager for managing the whole operations of the coffee bar. The manger will be responsible for giving directions to the employees and maintain customer satisfaction. The cashier will hand the cash operations of the shop. The barista will prepare the coffee and serves the coffee to the customers. The supervisor will look at the operations of the coffee shop and make sure that the issues of the customers are going to be addressed efficiently. The employees are going to be recruited based on their qualifications and experience (Simons, 2011).

Available Facilities of a new coffee bar in the city of Khobar

The place is already available for rent where the coffee shop is going to be established. The shop which is rented for establishing the current coffee bar is empty which means that equipment, furniture, and decorative items will be required for making the coffee shop functional. The suppliers are also available from whom material and equipment are going to be purchased. The coffee shop as discussed earlier is located in a prominent location of the city. It means that the shop will be visited by the number of residents of the city. The prominent location is a major plus point for the shop.

Needed Facilities of a new coffee bar in the city of Khobar

The shop which is rented for establishing the current coffee bar is empty which means that equipment, furniture, and decorative items will be required for making the coffee shop functional. The employees who are going to run the coffee bar are also required. The promotional activities are also yet to be performed. The facility of business registration and legal consultancy is also needed so that the business can be registered. The shop is going to be designed in such a way that it standouts from the rest of the coffee bars and create its image in the minds of the customers (Warren, Reeve, & Duchac, 2016).

Cost and Budget of a new coffee bar in the city of Khobar

monthly expenses	cash needed to start	% of the total

salary of manager	12500	38.72
salaries & wages	1450	4.49
rent	6454	19.99
advertisement	757	2.35
delivery expense	646	2.00
supplies	567	1.76
telephone	875	2.71
utilities	345	1.07
insurance	2345	7.26
consumables	765	2.37
bank loan	3456	10.71
maintenance	567	1.76
legal and professional fee	987	3.06
misc.	567	1.76
total	32281

One-Off Costs
fixtures and equipment’s	45678	54.23
installation charges	5465	6.49
starting charges	7654	9.09
starting inventory	8765	10.41
deposits for utilities	678	0.80
legal and professional fee	789	0.94
registration fee	987	1.17
advertisement and promotion	5678	6.74
cash	7654	9.09
other	876	1.04
total	84224

total estimated startup cost	116505

Expected Results of a new coffee bar in the city of Khobar

It is expected that in a short amount of time the shop will become popular in the residents of Khobar city. As mentioned earlier many people in Saudi Arabia like to drink coffee and this shop will provide high-quality coffee. It is expected that in a short period the shop will generate a significant amount of revenue. The higher will be the revenue the more profit it will generate. The purpose of every business is to generate profit. In a short time period, the business is expecting that it will create its presence in the market.

Feasibility of a new coffee bar in the city of Khobar

The current project is feasible and practically possible. Creating a coffee shop in the business does not require a huge amount of resources. In limited resources, the coffee shop can be established in the city. For creating a coffee shop a huge amount of funding is not required. From a reasonable amount of funding, the business can be established. Furthermore, there are already many restaurants and coffee shops in the city which indicates that opening a coffee shop in the city is a rational decision. It is estimated that in a short period the business will be able to generate high profits.

Conclusion of a new coffee bar in the city of Khobar

It is concluded that this project has a huge scope because not only it is meeting the increasing demand for coffee but it will also provide a new attraction in the city of Khobar. The coffee shop will increase the visitors in the city by providing them unique ambiance and a variety of food options on the menu. The coffee shop is located in a city that is famous for its lifestyle, shopping, and dining. It can be said that in a short amount of time the business will be able to generate a significant amount of profit. The current project is feasible and practically possible. Creating a coffee shop in the business does not require a huge amount of resources. In limited resources, the coffee shop can be established in the city. For creating a coffee shop a huge amount of funding is not required. From a reasonable amount of funding, the business can be established. Furthermore, there are already many restaurants and coffee shops in the city which indicates that opening a coffee shop in the city is a rational decision. It is estimated that in a short time period the business will be able to generate high profits.