Lovims Coffee

Coffee Enterprise is a digital first beverage delivery company run in Kota Kinabalu, Sabah and focuses on high quality coffee and non-coffee drinks to young adults, students, and working professional. Commencing operations on January 15, 2025, the enterprise operates as a partnership of six equal partners with combined equity investment of RM36,000 and bank financing of RM31,359 bringing total project capital to RM67,359. The business is filling a well-established market gap in the specialty drink delivery market in residential and business district of Kota Kinabalu. The product range includes matcha series, taro series, chocolate drinks, strawberry beverages, and classic coffee priced between RM6.00 and RM12.00, Lovims coffee will position itself as a premium cheap competitor. The digital-first model removes the traditional overhead expenses of the cafe but does not compromise quality standards due to standardized recipes and efficient delivery systems with average time of 25-35 minutes. The market analysis shows that there is a lot of opportunity in a target population of 18,000 potential customers among the UiTM students, Alamesra residents, and working professionals. The business ventures that will take over 15% of the market share of the existing competitors such as ZUS Coffee, Ara Coffee, and Kopi Saigon, with annual revenues of RM449,280 in the first year, and RM619,996 in the third year. This expansion plan is based on social media marketing on Instagram and Tik Tok, loyalty programs, and strategic partnerships to create brand awareness and customer retention of over 60%. Operationally, Lovims Coffee uses an assembly-line production system that has the potential to grow to 150+ orders per end of Year 1 and 50 daily orders. The business is fully compliant with the Malaysian food safety laws, SSM registration and Ministry of Health standards. The business model is financially viable as total project implementation costs are RM67,359 which includes administrative budget of RM34,362, marketing budget of RM7,904 and operations budget of RM22,878 and projected net profit margins of 25% and above and a stable monthly revenue of at least RM15,000.