ExpressoFresh Brew Café — Risk Analysis and Mitigation

A comprehensive risk assessment has been conducted to identify, evaluate, and develop mitigation strategies for the key risks facing the enterprise.

Section 13 · Business Plan

Risk Analysis and Mitigation

A comprehensive risk assessment has been conducted to identify, evaluate, and develop mitigation strategies for the key risks facing the enterprise.

Risk	Likelihood	Impact	Mitigation Strategy
Economic slowdown	Medium	Medium	Flexible menu pricing; student-focused value offerings; cost structure agility
High competition / new entrants	High	Medium	Strong brand differentiation; loyalty programme; superior product quality; community-building
Rental cost escalation	Medium	Medium	5-year lease with capped escalation clause; strong relationship with landlord
Input cost inflation (coffee, ingredients)	High	Medium	Long-term supplier agreements; multiple supplier relationships; menu price adjustments
Staff turnover	Medium	High	Competitive remuneration; training investment; positive work culture; career progression paths
Load shedding / electricity disruption	Medium	High	Generator backup; gas-powered kitchen equipment; solar PV installation (Year 3)
Food safety incident	Low	High	HACCP-aligned procedures; regular staff training; third-party audits; insurance
Seasonal demand fluctuation	Medium	Low	University calendar-aligned promotions; tourism season marketing; event hosting
Supplier disruption	Low	Medium	Multiple approved suppliers per category; safety stock management; local sourcing
Theft and security	Medium	Medium	POS inventory management; CCTV; cash handling procedures; insurance

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