Strategy to Start a Street Cafe in New Zealand

Strategic Analysis for starting a tea and coffee café in Wellington, New Zealand.

Client: The Great Indian Tea Company (TGITC) Firm: Vigzo- Varshi & Company, Wellington, New Zealand.

Notes to the reader

This is an entrepreneurial idea and the company The Great Indian Tea Company is a nonexistent company. I have simulated the possibility of opening an Indian style tea stall in Wellington, New Zealand.

Introduction

The Great Indian Tea Company (TGITC) is a start up firm in India that has taken the street style tea and filter coffee to a café environment. The company has taken street talent from Tamil Nadu and integrated this style of serving tea in a café environment, hence portraying it to the many foreign tourists that visit their cafes. TGITC has its own patented spice mix that is added to their tea. This spiced tea is then sold as “Special tea”. TGITC would like to venture their business into Wellington, New Zealand and have assigned Vigzo – Varshi & Company with the task of analyzing the market and provide them with an objective opinion on the decision to venture into this market.

Wellington – New Zealand’s capital for cafes.

Wellington, the capital city of New Zealand, is home to the most powerful people and businesses in New Zealand. It is also home to over 300 bars, cafes and restaurants and is also known as the city that invented the popular flat white coffee6. Wellington is known to have more cafes per capita than even the big apple so for any new entrant faces fierce competition1. Wellington has a predicted population of 201,8914 and its is assumed that almost every individual above the age of 16 consumes a cup of coffee a day in Wellington. From the year 2010 to 2011, the café industry has seen a 5.5% increase in growth and this number is predicted to increase in the coming years7. With the high number of café and highest number of roasters per capita than any other country8, it would seem that coffee is the hot beverage of choice. It must...