Java
Juice is a new company, formed in April 2006. The company is a privately owned
S1 corporation. Its CEO is Mike Splane, an experienced controller and a
business lecturer at
The
first Java Juice store opened in September 2006. The store is located at
A
foot traffic study showed an average of 148 pedestrians per hour pass by this
location in the daytime. In the evenings, this number increases to 227
pedestrians per hour. The extra evening foot-traffic is generated by several
theaters and restaurants located within a five-block radius. The study also
looked at the proportion of pedestrians who enter other restaurants in the
area, and found a capture rate of 23%. Based on this study, we estimated a
capture rate of 34 customers per hour during daytime hours, and 52 customers
per hour in the evening. The average customer was expected to spend between 30
and 45 minutes in the restaurant. Our experience has closely matched these
projections.
Take-out
orders are a significant percentage of early morning sales. The store began
offering a delivery service in March 2007, covering six counties in the
The
location is on the ground floor of a two-story building. The total floor space
of the restaurant is 2000 square feet. Of this footage, only 1200 square feet
is available for customer seating. The seating area contains twelve tables and
forty-eight chairs. Coffee
Shop Floorplan. The remainder is
used for restrooms, storage, and food preparation. Monthly rent to lease the
building is $4.30 per square foot, or $8,600 per month. Java Juice has a three-year
lease on the location, with an option to renew for an additional two years at
the end of year two. The lease allows Java Juice to make alterations to the
property at Java Juice’s expense, subject to approval from the property owners,
SKM Investments Inc. Such approval is not to be arbitrarily withheld without
just cause.
