CAF PARADISE YOUR BEST BUDDY

BUSINESS DESCRIPTION
Caf Paradise is a coffee bar for coffee addicts, a dreamland to every person who
escape the busy and stressful life, a place of friendship and a reading area all at the
same time. Caf Paradise will offer the best coffee ever that will be complimented with
pastries and books including wifi where customers can read and enjoy their stay and
visit.
MISSION
The mission of the business is to offer the finest selection of coffees, satisfy customers
needs and wants for high quality of coffee, delicious and nutritious pastries and
excellent service and make its best effort to create a unique place where customers can
socialize with each other in a comfortable and relaxing environment. We will be in the
business of helping our customers to relieve their daily stresses by providing piece of
mind through great ambience, convinient location, friendly customer service, and
products of consistently high quality.

VISION
The business vision is to be the Cafe preference for Tuguegarao Citys shopping
customers and students.

PRODUCTS AND SERVICES

The main activity of the company is the operation of a coffee shop. Business activities
include purchasing, storing, preparing, selling and serving pastries, small salads and
sandwiches to our valued customers. We expect to serve 3,500 and above customers
dine-in and take-out per month.
Our main point of differentiation from other coffee shops in the area is that we serve
fresh, light and healty products each day as well as develop new menu items to meet
the changing needs and tastes of people who care about what they drink and eat. The
high quality of coffee that simply offers good value for money at highly competitive
prices.
The menu offerings will be supplemented by free books and magazines that customers
can read inside the coffee bar including browsing in the internet through wifi. The menu
of the coffee bar will be built around espresso-based coffee drinks such as lattes,
mochas, cappucinos, etc. Each of these coffee beverages is based on a shot of
espresso, which is prepared in the espresso machine by forcing heated water through
ground coffee at high pressure, such espresso shots are combined with steamed milk
and/or other additives like cocoa, caramel, etc.
The coffee bar is open 24 hours from Sunday to Monday. The coffee bar comfortably
seats 36 persons.

The chart below outline the total market potential (in number of customers)
Market Analysis

Office workers
Students/Faculty
Teenagers
Others

START-UP BUDGET
MONTHLY EXPENSES
Salaries and wages
Rent/lease
Advertising & promotion
Delivery expense
Supplies
Telephone
Other utilities(electric, gas,etc.)
Insurance
Maintenance
Legal and Professional Costs
Miscellaneous
TOTAL

PROJECTED MONTHLY EXPENSES

70,000
10,000
5,000
1,000
50,000
1,000
30,000
500
5,000
20,000
5,000
P197,500.00

SALES ANALYSIS AND FORECAST

Our sales analysis has revealed that we can expect an average of 3500 and above
customers per month. Our sales forecast is based on an average industry selling price
of 85 to 120 per order depending on the size(i.e Baby- P85.00, Mom- P100.00 and DadP120.00).

Our Sales Forecast by quarter is shown in the figure below.

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Quarter 1

Quarter 2

Quarter 3

Quarter 4

LOCATION
The location selected for the coffee bar concept is in Tuguegarao City because of its
great location with the highest number of shoppers and students passing which is
supported by a large and growing local population. There are limited number of coffee
bar within the area which successfully operated. The outlook for the future of
Tuguegarao City is exceptionally positive and the most progressive area in Cagayan
Valley.
TARGET MARKET
There is a substantial population growth in the area as residential development
continues and commercial development commences.
Caf Paradise customers are the passing shoppers and students of all ages who enjoy
a fine coffee (dine-in and take-out) and a healthy, value-for-money pastries and salads.
The majority of the general public in the shopping center were families and young
singles. The cafe will make it particularly easy for a family and friends to enjoy a chat
while drinking coffee.
Caf Paradise will cater to those who wants to get their daily cup of great-tasting coffee
in relaxing atmosphere. Such customers vary in age, altough our location is close to the
Universities where most of our clientele will be students and faculty. Our market
research shows that these are discerning customers that gravitate towards better
tasting coffee. Furthermore, a lot of students consider coffee bars to be a convinient
studying or meeting location where they can read or meet with peers without necessity

to pay cover charges. For us, this will provide a unique possibility for building a loyal
client base.
OBJECTIVES
1.
2.
3.
4.

Become selected as the Best Coffee Bar in the Philippines;

Turn in profits from the first month and succeeding operations;
Maintain continuity of customer relationships;
Increase the number of customers and average sales size.

MARKETING STRATEGY
Product
Healthy and light meals are the key point of differentiation for the business because the
coffee bar has the capabilities and flexibility to develop new menu to meet the changing
needs and tastes of the customers.
Price
We propose to offer high quality food and services at a price comparative to our major
competitors. We will meet the market on price to retain market share if we need to.our
clientele have a medium to high disposable income and seek high quality products and
hood service, pricing will reflect the value of our products and services.
Place
Customers access and purchase products and services through our batr front. The
location of the cafe is at the wsetern partof Tuguegarao City. It is situated on the main
area near the major supermarkets and universities.
Promotion
We will be undertaking a range of promotions of thye cafe. These promotions will
include offers of discounted meals and coffee, but will only run for two weeks. We
estimate that this will be sufficient time to allow a smooth transition to ourselves as
owners.Our regular advertising will consist of shopfront, a frame advertising boards,
monthly newspaper advertising and a three monthly flyer drop in barangay areas. As
most of our business will be passing trade, shop front signages will be bright and
appealing. We will develop and offer a loyalty card scheme to increase repeat
business.Word of mouth advertising is very important and the best advertising that we
will be providing is the quality of our products and services.
Physical Evidence
The acfe is fully fitted out with table, chair and decor that projects the deisre image of
quality and value as well as aligns with CAFE PARADISE- YOUR BEST BUDDY. This
also applies to uniforms for the staff. The cleanliness of the premise, tables and chairs
will be mmaintained to a consistently high standard at all times.

SALES STRATEGY
4

Two thousand flyers will be distributed in the adjacent neighborhood, university

campuses, malls and in selected office within two weeks prior to the opening of the Cafe
Paradise. . subsequently, free postcards with Cafe Paradise endorsement will be
printedto increase the company visibility among the patrons.

STORE
Starbucks
Coffee Bean
Others
Caf Paradise

BRANCHES

Caf Paradise
Starbucks
Coffee Bean
Others

TARGET BUSINESS STORE PROPOSAL

1st-3rd Year
3 Stores nearby Universities and/or Business area
4th Year
3 Stores located in Luzon Area (Manila, Palawan and Baguio)
5th Year
3 Stores located in Visayas and Mindanao Area (Cebu, Cagayan De Oro and Davao)
CAF PARADISE TREND FORECAST FOR FIVE YEARS

10
9
8
7
6

Cafe Paradise

Starbucks
Coffee Bean

Others

3
2
1
0
Year 1

Year 2

Year 3

Year 4

Year 5

SWOT ANALYSIS
STRENGTH
STRATEGY
Sales and Marketing- currently holds Maintain and grow market share by
market share in City
improving marketing and promotions both
within and outside Tuguegarao City
Location is within the Universities and Provide quality products and services to
Regional Centers
generate word of mouth endorsements
and repeat business
Skills- knowledge, skills and experience of Train and develop stafeff to deliver
owners/managers in running successful superior quality of products and services
caf businesses
Financial- owners access to financial Fund training, marketing and develop new
resources and strong cash flow from menu items
operations
WEAKNESS
STRATEGY
Location- capacity due to floor space
Investigate the option of negotiating
acquisition of additional floor space from
other shops
OPPORTUNITY
STRATEGY
Economy- well positioned to take Expand marketing and promotion and
advantage of a strong economy, low maintain prices at current market levels
interest rates and high disposable income
Social Patterns- Population growth and Increase advertising and investigate
increased standard of living
potential to increase floor space
Physical
Factorsimproved
public Increase advertising in the surrounding
transport and infastructure
areas to attract new customers
THREATS
STRATEGY
Competitors- other coffee shops within the Providing good services to the customers
area
6