The market for Laundromat Cafes is an evolving market. Its current volume is very low (almost non-existent direct competitors) in contrast to that of the laundromats that are close to saturation. We propose to establish a laundry-friendly laundromat which will be a place with full wireless internet access available in comfortable quiet coffee rooms.
Our company has €30,000 for personal contributions. Each partner brings the same share in cash: €7500.
Our main goal is to become the main reference in the French market in particular by developing a chain of coffee-laundromats. We can thus contribute to the expansion of this growing market.
We believe our financing needs is at €50,000 for us to pay for our property and especially the laundry equipment.
We want the bank to borrow €20 000, with a negotiated interest rate of 5% over 3 years. In 3 years, we hope to make a net profit of at least €50,000 to invest in a new cafe and laundromat and to eventually become a chain. According to our estimates, the profit achieved in 2010 was €57,638. There are studies on traditional laundries: Xerfi IC marketing figures and studies suggest that our pay cannot be seen as too expensive (€456!). On the other hand, there is no market research on coffee laundries.
You will find in the survey we conducted in Rouen with 203 people.The terms of this investigation can be referred to in the appendix. We interviewed several managers of laundromats to assess the coffee market volume, number of customers, and other aspects. The two telephone conversations that we had with R. Soler and E. Chevauche seemed very promising. The two managers have told us that their coffee laundromats met a great success thanks to competitive pricing, ads and art exhibitions held 2-3 times per month, but especially through the concept that allows customers to wash their laundry and spend a pleasant time reading a book, newspaper or simply contemplating the works on display in the store.
Also, according to the two managers, they turned the laundromats services full time. The number of customers dropping their clothes in the morning to get it clean and dry by night ranged between 15 and 25 clients. Regarding the customers who frequented the cafe-laundromat, R. Soler told us that he had noticed a change: at the very beginning, the laundromat was more frequented by people with average or limited incomes, then because of mouth to mouth communication, different categories of customers with higher incomes started coming.
R Soler, during the telephone conversation, repeatedly emphasized the fact that affluent customers had a habit of coming often to the laundromat and that ultimately the customers comprised 80% of wealthy people and 20% people with lower incomes.
To be clear, the two managers have clearly outlined the project's feasibility and the existence of a clientele that far from wanting to satisfy a desire, simply loves to come to laundromats and wait there while sipping a coffee and juice, leafing through a book or newspaper.
Tags: Laundromat Cafes, Xerfi IC marketing figures, negotiated interest rate, Rouen,
[...] invest in a new cafe and expectations laundromat and to eventually become a chain. According to our estimates, the profit achieved in 2010 was €57,638 Risks - Finance: Financial investment in the establishment of the enterprise. Business: Insufficient demand, lack of enthusiasm for the concept. Commercial: Range of services not offered adequately and not sufficiently developed Opportunities - Developing a range of packages around that might be more appropriate to our clients. Emphasize the laundromat services (Privilege Offer) to increase our revenue and our clients. [...]
[...] Moreover, it will allow us to slightly increase the prices of coffee with only a slightly higher cost. Our second idea of development is the exhibition of photographs or paintings of artists in our cafe-laundromat. This will allow us to propose a cultural touch to our customers who will have an additional occupation while their machine is running. This idea has the advantage of being free for us and also for the artist who will exhibit his arts in our coffee lounge at no charge. [...]
[...] Each employee brings €7500 and there are 4 employees so the share capital amounts to €30000. IV.5. Availability forecast Receipts Disbursements Receipts Disbursements Receipts Disbursements external charges profits V. Risks and opportunities V.1. Risks Our project comprises of a business with financial risks. First, this project may be suffering from insufficient demand. Specifically, if our laundry cafe meets no success and the number of daily customers does not exceed 20 per day, profitability problems could be expected. If our company can not succeed and if competition from traditional laundromats is still too high, cash-flow problems could be expected. [...]
[...] III The marketing plan Product policy: The client comes to the laundromat cafe to wash clothes and buy a coffee, or a nonalcoholic cocktail, or a soda while waiting for the laundry to get finished. The client can also access the press, work, read or surf the internet. Specifically, to use the machine, the customer will pay once, then again when he wants to consume a drink. The client may also file his dirty laundry in the morning and get it back in the evening washed, folded and ironed. [...]
[...] Our main advantage over the competition is that our service provides in the same place the opportunity to wash clothes, consume a soft drink, concentrate on work or rest. Our strategy when compared to the competition is to bring together in one place what already exists but in a different way. On the other hand, the coffee room could be a laundry place in its own right. The only technology we have is based on the technical capabilities of our washing machines. [...]
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