CHRYSSTL COFFEE

SHOP
BUSINESS PLAN
Executive Summary

Chrysstl coffee shop will offer organic and gourmet coffee to

consumers in Davao. We are more than just your average run-of-the-
mill coffee shop and offers more than just coffee. Chrysstl coffee shop
provides an environment for the growing music scene in Davao.

Business Objectives

The primary objectives of the business plan for Chrysstl coffee shop
are below:

To increase revenues P100,000,000 or 5% in Year 2 and by

P100,200,000 or 10% by Year 3
Achieve a profit margin of 5.2% in Year 2 and 6.90% by Year 3
Be the Caf of Choice in the Overland Park area and recipient of the
Best CoffeeShop Award

MISSION

The mission of Chrysstl Coffee Shop is to provide the best possible

combination quality, product quality, price so that every costumer feels
they have received excellent value and is delighted to continue to
purchase from the Company in the future, to be able to offer
something for everyone, and to provide for the families of the
Company owners.
Keys to Success

Keys to the Companys success lie in managements ability to:

Execute the business model as described in this Business Plan.
Secure needed capital
Reliability administer and manage the Company on a daily basis so
that a successful and growth oriented business is developed and
maintained.
Attract new customers, retain existing customers, continue to grow
sales, maintain or improve profit margins, control expenses, meet or
exceed the financial projections outlined within this business plan.

Company Summary

Chrysstl Coffee Shop is a start-up operation that is located in Davao

City.

The business was very recently founded and will begin operations
shortly after.

This Business Plan is written and adopted by management

A source for capital is located, approved and acquired
Business space is acquired
Pre-opening asset acquisitions are made
Office and business equipment is set-up and operational
Business space is operationally ready for business use

Company Ownership

After extensive research and working closely with professionals to

determined which form of organization would be best for the
Companys circumstances, the founders chose to legally structure and
organize the business as a partnership. This legal structure was
chosen because it offers a means to minimize personal liability issues
for the owners.
Start-Up Summary

Within the Start-Up table below, the cost of required pre-opening

expenses and asset acquisitions are considered. Pre-opening costs
normally include legal and professional fees, licensing, supplies, office
furniture, shelving and displays, inventory, equipment such as coffee
equipment and a computer system with Microsoft Office and an
accounting software package, a broadband high speed internet
connection, and a printer.

The capital requirements for pre-opening expenses and asset

acquisition will be funded from the sources listed in the Start-Up
Funding table that appears later in this Business Plan. The primary
source of funding will be from a grant that is currently being
researched. Once the appropriate grant and grant source are located,
the grant request will be submitted shortly thereafter along with this
business plan.

Company Locations and Facilities

Chrysstl Coffee Shop will be located on the ground floor of the

commercial building at the corner of Holy Cross College of Sasa,
Km.9 Sasa, Davao City . The company has secured a one-year lease
of the vacant 2,500 square feet premises previously occupied by a
school. The lease contract has an option of renewal for three years at
a fixed rate that Chrysstl Coffee Shop will execute depending on the
financial strength of its business.
The floor plan will include a 200 square feet back office and a 2,300
square feet coffee shop, which will include a seating area with 15
tables, a kitchen, storage area and two bathrooms. The space in the
coffee shop will be approximately distributed the following way--1,260
square feet (i.e., 55% of the total) for the seating area, 600 square feet
(26%) for the production area, and the remaining 440 square feet
(19%) for the customer service area.
This property is located in a commercial area within a walking distance
from the Holy Cross College of Sasa campus on the corner of a major
thoroughfare connecting affluent Km.9 Sasa neighborhood with the
busy downtown commercial area. The commercially zoned premises
have the necessary water and electricity hookups and will require only
minor remodeling to accommodate the espresso bar, kitchen and
storage area. The coffee shop open and clean interior design with
modern wooden decor will convey the quality of the served beverages
and snacks, and will be in-line with the establishment's positioning as
an eclectic place where people can relax and enjoy their cup of coffee.
The clear window displays, through which passerby will be able to see
customers enjoying their beverages, and outside electric signs will be
aimed to grab the attention of the customer traffic.

Products and Services

Chrysstl Coffee Shop will offer its customers the best tasting coffee
beverages in the area. This will be achieved by using high-quality
ingredients and strictly following preparation guidelines. The store
layout, menu listings and marketing activities will be focused on
maximizing the sales of higher margin espresso drinks. Along with the
espresso drinks, brewed coffee and teas, as well as some
refreshment beverages, will be sold in the coffee shop . Chrysstl
Coffee Shop will also offer its clients pastries, small salads and
sandwiches. For the gourmet clientele that prefers to prepare its
coffee at home, Chrysstl Coffee Shop will also be selling coffee beans.
The menu offerings will be supplemented by free books and
magazines that customers can read inside the coffee bar.

Product and Service Description

The menu of the Chrysstl Coffee Shop will be built around espresso-
based coffee drinks such as lattes, mochas, cappuccinos, etc. Each of
the espresso-based drinks will be offered with whole, skimmed, or soy
milk. 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., to prepare the espresso-based beverages. Proper
preparation techniques are of paramount importance for such drinks.
A minor deviation from the amount of coffee in the shot, the size of the
coffee particles, the temperature of milk, etc., can negatively affect the
quality of the prepared drink.

Sales Literature

Two thousand flyers will be distributed in the adjacent neighborhood,

on the Holy Cross College of Sasa campus, at the malls and in the
selected office buildings within two weeks prior to the opening of
Chrysstl Coffee Shop. Subsequently, free postcards with Chrysstl
Coffee Shop endorsement will be printed to increase the company
visibility among the patrons.

Competitive Comparison

Starbucks coffee consumption has shown steady growth, with

gourmet coffee having the strongest growth. Coffee drinkers in the
Chrysstl Coffee Shop are among the most demanding ones. They
favor well-brewed gourmet coffee drinks and demand great service..
Chrysstl Coffee Shop will strive to build a loyal customer base by
offering a great tasting coffee in a relaxing environment of its coffee
bar located close to the bustling Holy Cross College of Sasa campus.
TECHNOLOGY

As a large scale coffee shop, Chrysstl Coffee Shop will rely on several
pieces of technology to reliably serve its customers a consistent and
delicious product.
Automatic Espresso Machine
Boiler capacity of 12 liters
Water softener
Automatic Espresso Grinders with doser/coffee hopper
1 Decaf
1 Regular
Full Scale Bulk Coffee Grinder
Automatic Coffee Maker (drip)
Under Counter Refrigerator
Storage Refrigerator
Ice Maker
Freezer
Credit Card Machine

Service and Support

Chrysstl Coffee Shop is majority-owned by Dece Ryle Krysstl B.

Gayoba and Chris John Allan A. Enriquez. Ms. Dece Ryle Krysstl B.
Gayoba holds a Bachelor's Degree in Information Technology from the
Holy Cross College of Sasa. He's worked for several years as an
independent business consultant. Previously, he owned the ABC
Travel Agency, which he profitably sold four years ago. Ms. Dece Ryle
Krysstl B. Gayoba has extensive business contacts in Manila that he
will leverage to help his new venture succeed. Mr. Chris John Allan A.
Enriquez has a Bachelor's Degree in Information Technology from the
Holy Cross College of Sasa. For the last five years he has worked as
a manager of Jollibe.And a programmer of one of the famous call
center company in Davao City. Ms Gayoba and Mr.Enriquez is in
relationship right now and this is one of their investment.
Future Products/Services

Enriquez families which comprise the third largest market share in

Davao City, are often overlooked in the coffee market. Coffeehouses
traditionally have not been considered kid friendly. To overcome this
hurdle, the Russet Cup has long term plans (5 years) to open a 2nd
coffee shop: A combination indoor play area / coffee shop. This
concept allows parents and caregivers an opportunity to meet and
relax with other adults while the children can enjoy the indoor
playground amenities.
Additional future services will include in-store sales for home purchase
as well as an online store.
The website will have an option to purchase prepaid gift card program
Prepaid gift cards not only provide immediate cash, but also reduce
credit card transaction charges and draw new customers to the
business.

Financial Plan

Chrysstl Coffee Shop will capitalize on the strong demand for high-
quality gourmet coffee. The owners have provided the company with
sufficient start-up capital. With successful management aimed at
establishing and growing a loyal customer base, the company will see
its net worth doubling in two years. Chrysstl Coffee Shop will maintain
a healthy 65% gross margin, which combined with reasonable
operating expenses, will provide enough cash to finance further
growth.