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Feasibility Cafe Boostah
Feasibility Cafe Boostah
Introduction
Caf Boostah
VISION
Caf Boostah is established to satisfy its clients with the complete line of premier coffee
products brought about by a highly technological coffee machines and related equipment that
shall provide the customers with the highest quality of coffee products and excellent service at all
times in order to become the most dominant and most prestigious name in the food and beverage
MISSION
Caf Boostah shall provide the customers with the finest products and prompt and
friendly service so as to have the most profitable return, and also to enjoy an uninterrupted
Caf Boostah This name was derived from the word booster, it collaborates to our
main product which is a different mixture of coffee, that when you drink coffee it will give
you extra energy boost. This name was also adopted to imply that there is no love sincere
than the love of coffees. The name was also denotes the premises use for such activities, We
the proponents were inspired to use it, put to existence a place where people can meet and
B. LOCATION
One of the biggest deterrents to compete with large firms is the inability to access a good
To attract sufficient devotees a hip positive coffee shop will be situated at Maharlika
Highway, Barangay Mabini, Santiago City, in front of the newly Built Robinsons Plaza.
Parking space is no problem and premise are visible, this location has been preferred because
of the positive vibe of the place and convenience of the customer was the primary
consideration.
C. DESCRIPTIVE DEFINITION OF THE PROJECT
As the proponents search for a good name that would catch the attention of everyone,
they had come across the term BOOSTAH for its uniqueness and beckoning power unto the
customers. Caf Boostah is organized to serve different mixtures of coffee at reasonable price
to satisfy the customers. The proponents tend to inform the customers that coffee is drunk not
only because it is a habit but also as a trend. It is a trend because of the numerous coffee
houses that arise, most especially in the cities. Aside from the different coffee varieties, Caf
Boostah will also offer newly baked pastries that will surely its the clients taste. The coffee
The proponents are confident that in the near future this coffee bar will become one of the
leading food and beverages establishments in the region known for its distinct taste of coffee
D. OBJECTIVES
This project has its own goals and aims to be attained, these are:
To achieve initial development in productivity and profitability and to expand the
business.
To exceed customer expectations by providing a homely atmosphere and excellent
Santiago City, also the acceptance of the present and potential customers, on how they will
*Respondents are those only who belong in the age bracket 13 and above.
F. FEASIBILITY CRITERIA
The proposed project site could easily be located for it is very accessible and very
Food and Beverage is one of the fastest growing industries all over the world. The
proponents chose to put-up an establishment that serves different coffee mixtures and
pastries to complement it to provide variation from the usual type of food service here in
Santiago City. The proposed project seeks to set a new trend in the city similar to the
When the Feasibility Study of the proposed project is finished, the proceedings of the
legal documents will be initiated. And when everything is in order, it will start its
operation. Opening will coincide with the start of the Christmas seasons.
3. NATURE OF INDUSTRY
Mens pre-occupation and incapacity to prepare their food at home then compel them
to find alternative means of satisfying their needs outside their homes. It is in here, where
the idea of operating restaurants, coffee shops and bars and other related establishments.
This kind of establishments could be a great help to people who dont prepare their
foods. Bread could be a substitute to rice, as they both give carbohydrates. This is
perhaps one of the reasons why coffee shops or other related establishments gained a
4. MODE OF FINANCING
To meet the capital requirements of the proposed project, the proponents came up
with the decision that 100% of the total project cost will come from them equally and this
MARKET FEASIBILITY
The proposed project will be feasible since CAF BOOSTAH has a seating
capacity of twenty five (25), as per survey results, there on the minimum of 84
TECHNICAL FEASIBILITY
The location of the proposed project itself can greatly provide desirability
because it lies along National Highway, thus creating a direct approach for all
types of land vehicles. It is accessible to utilities and it is near the newly arise
Shopping Plaza. These show and justify that the proposed project is said to be
technically feasible.
FINANCIAL FEASIBILITY
The financial statement will serve as one of the most important part of this
study for the prospect to have aspect on hoe funds will be allocated. With regards
to the financial status of this proposed project, it was found out to be profitable in
terms of estimated projection of sales income and return of investment. These are
employees for the jobs required with the corresponding compensation and
Economic Aspect
The economic aspect of the business shall give positive effect not only to
its location but also outside the City. It aims to lessen the labor problems
part time job. Caf Boostah will pay due taxes to the Bureau of Internal
Revenue (BIR) so that the tax collection will increase, hence, greater
MARKET STUDY
Market Description:
The project site will be located at Maharlika Highway Mabini, Santiago City, in front of
the newly arise Robinsons Plaza. The site is preferred to the rest because it can be easily reached
physically, easy to locate the place for it is very accessible and very convenient to any type of
clients.
The foremost goal of the business is to provide and to gratify the desires and wishes of its
target clients, giving the quality service they deserve by providing the best benefit they be
worthy of in particular.
A. PRODUCT DESCRIPTION:
1. Name of the Product
Caf Boostah is an establishment that will engage in providing safe, high
quality coffee mixture. Their main products are: espresso, cappuccino, coffee
mocha, coffee latte, granite de caf, brewed coffee, hot chocolate, Choco milk,
plain coffee and other non-coffee beverages like mango juice, pineapple juice and
calamansi juice, accompanied by pastries like Choc marble muffin, banana cake
slice, ube Choc bar , cheese cake, black forest cake and others. It is also a Wi-fi
the customers by giving them a convenient and affordable place to relax. Coffee is
a beverage made by percolation, infusion from the roasted and ground seed of a
coffee tree. Pastry is sweet freshly baked goods made of dough having a low fat
content.
B. DEMAND
Project Demand:
A. Table 1: Respondents who drink coffee outside and inside their homes.
drinker
1. Respondents who drink 84 56%
on their home.
TOTAL:
Table 1 shows that out of 150 respondents there are 84 or 56% of them drinks
coffee outside their home and 66 or 44% of the respondents drink coffee at home.
This shows that there is a demand for coffee which the proposed project offers. Caf
clients
1. Respondents who usually 78 52%
hang out.
3. Respondents who usually
150 100%
go to videoke bars for
go to coffee shops for relaxation and hang outs, 48 or 32% for malls and food chains,
and 24 or 16% for videoke bars. It shows that the demand for the coffee shops is
feasible.
TOTAL NUMBER OF RESPONDENTS OF THE TARGET MARKET OF THE
PROPOSED BUSINESS
TOTAL: 150
C. SUPPLY
Establishments Number of customer/day Seating Capacity
French Kiss Espresso 10 15
Monte Carlo Hotel 20 40
Caf Vito 18 35
Blends and Bites 38 50
TOTAL 86 140
This gathered figured show the number of customers per day and a total number seating
capacity. Based from this data, the proponents expects a 100% supply for coffee every day
because these establishments offers the same coffee products but Caf Boostah offers unique
drink coffee outside their home. Therefore, demand for coffee in the vicinity of Santiago
City is feasible.
Based on the gathered data through interview method, out of the four (4) business
establishments offering coffee there were only 86 customers per day with a total of 140
seating capacity. This means that out of 150 respondents, there are 86 who went through
these establishments, so there is a deficit of 64. This would only imply that the proposed
project can supply more than 30 customers per day. It is therefore assumed that supply is
feasible.
E. PRICE STUDY
The pricing strategy used in this study is Cost - based Approach.
Product Pricing
Pastries
Cheesecake 20
Banana Slice 22
Marble Cake 23
Brownies 20
Carrot Cake 25
Tarts 10
Coffee
Espresso 45
Cappucino 50
Iced Cappuccino 55
Coffee Mocha 55
Espresso macchiato 50
Coffee Latte 55
Granita de Caf 55
Brewed Coffee 45
Hot Chocolate 50
Non-Coffee Beverage
Iced Tea 35
Mango Juice 45
Pineapple Juice 40
Calamansi Juice 40
control this because of the existing businesses in the city. Competition then is one of the
major factors that will affect the operation of their proposed business.
Economic instability is another factor because of the currency and the distribution
the focal point. Despite the existing food and beverage establishments like fast foods,
restaurants, and bars the proponents decided to introduce coffee bar named CAF
BOOSTAH.
A. PROMOTIONAL OR ADVERTISING
The marketing program planned is to display panaflex signboard in front of the
coffee bar giving identity to the proposed project CAF BOOSTAH so that ut can be
easily recognized by potential clients. The opening of the Caf will be broadcasted and
announced in radio stations. It will also propose promotional offers like free taste for the
first 20 customers during the opening. For the Caf Boostah bar to be well known,
brochure and leaflets will be distributed before and during its operations.
Before the opening, invitations and discounted coupons will be distributed to major
B. PRICE
The suggested price of the products will depend on the cost of the ingredients. An
C. DISTRIBUTION STRATEGY
Dine in and free delivery ( on a minimum order amount)
COMPETITIVE POSITION
Caf Bosstah has 100% market share because based on the gathered data, there are
such existing establishment that sells the same products as the proposed project with in
the area.
If ever that there will be an establishment that offers the same product and service
as the proposed project in the future, here are the competitive strategies to be
unfeasible to sell it at a higher price than at which comparable products is being offered.
Competition of the Quality of the Product: The quality of the products is not
only measured on its appearance but also on what is proper and acceptable socially.
Convenience of the Place: It is our concept to create a place where comfort of the
home. They will always be available to serve, and giving the best smile guests deserves.
TECHNICAL FEASIBILITY
A. THE PRODUCTS
Food and Beverages are the basic needs of human being to nourish the body and to
sustain life.
The proposed business will offer mainly coffee. Other non alcoholic beverages
All of the food and beverage products will be prepared by the concerned staff on
site as needed. As much as possible, pastries will be baked daily to maintain the quality
standards of the proposed business while all beverages will be prepared as ordered.
Caf Boostah will be open 5:00 in the morning until 9:00 in the evening, There will
be two (2) shifts, an eight hours work per shift to maintain daily operation. The two -
storey building has a seating capacity of twenty five (25), The total lot area is perceived
Production will be based from the projected number of guest per day. Expansion
possibilities will depend on increase in the market share and availability of financing.
D. EQUIPMENTS
Equipment, tools and utensils required for production and provision of service for
the target clients of the proposed business are listed below. These are locally available
The proposed project will be located along Maharlika Highway Mabini, Santiago
City in front of newly arise Robinsons Plaza. This site was chosen because of its
accessibility to potential clients. The availability of manpower will not be problems since
the City is abound with skilled manpower that could fill in the positions necessary for the
Building Description
Cafe Boostah will be a two storey building. With the following breakdown
areas:
Parking Area
Dining Area (1st and second floor)
Production Area
Counter
Comfort room
Description Cost
T & B Accessories
Water Closet with soap
And tissue holder set 2 5000/set 10,000
Lavatory with Accessories set 2 650/set 1,300
4x4 floor drain pc 3 65/pc 195
Painting
QDA white gal. 8 492/gal 3,936
Flat wall gal. 8 415/gal 3,320
Patching Compound kg 90 25/kg 2,250
Electrical Works
Material cost 4,475
Exhaust Fan (kitchen) pc 2 2000/pc 4000
Exhaust fan (C.R.) pc 2 2000/pc 4000
Pre-Opening
Raw ingredients:
H. UTILITIES
1. Electricity
The Isabela Electric Cooperative 1 (ISELCO1) will supply the power
used.
2. Fuel
Liquefied Petroleum Gas (LPG) will be used and the target source is the
I. WASTE DISPOSAL
Because of the nature of the business, wastes are expected to be minimal. All
waste will be placed in garbage bin lined with black garbage bag. Biodegradable will
as scheduled.
J. PRODUCTION COST
In producing the products for sale (Foods and Beverages), it is assumed that an
K. LABOR REQUIREMENT
In operation of the business a manager will be hired one month before the opening
to oversee the pre-opening preparations and the financial success of the proposed
project. The rest of the personnel required will be hired at least a week before the
opening. The number of workers to be employed for each job classification, the pay
SALARY
Store Manager 15,000 1 15,000
Security Guard 7,000 1 7,000
Cashier 7,500 2 14,000
Barista 8,000 2 16,000
Baker 9,500 1 9,500
Dish Washer / Utility 4,500 1 4,500
F and B attendants
7,000 4 28,000
Total: 58,500 12 94,000
FINANCIAL ASPECTS
Building 623,776.00
__________
Source of Financing
This project is financed by the owners equal shares through their personal money.
Financial Assumptions:
ORGANIZATION AND MANAGEMENT
Organization also connotes a creative process. All that parts of business do not
come into existence spontaneously. They are the results of managerial efforts to carry out
because this is the simplest form of structure and refers to a direct straight-line
responsibility and control form the top management to the middle management and to
organization.
This form of organization is common in many small and medium sized
companies. The managers of the departments are given complete authority and
responsibility over the activities involving their functional areas. One of the
disadvantages of this type of structure is that the manager must be familiar with
clear in this type of organization and the clarity helps to avoid several organizational
problems because subordinates knows whom to report and the also known the scope
of his authority.
B. Form of Ownership
The venture is a partnership form of business. Partnership is a legal association
this kind of ownership because there are more persons to conduct the business and to
C. Organizational Chart
STORE
MANAGER
CASHIER
BARTENDER
F&B
ATTENTAND
BAKER
DISHWASHER/UTIL
ITY
SECURITY
D. Officers and Key PersonnelGUARD
STORE MANAGER
Job Description:
1. Monitors the necessary preparation before the start of the operation
and sees to it that all needed supplies will be available, clean and in
good condition.
2. Conducts daily briefing among his/her staff.
3. Monitors the performance of the staff and sees to it that they will
cashier.
8. Responsible in negotiating or dealing the product to potential clients.
9. Responsible in promoting the product.
Job Specification:
Job Specification:
Job Description:
1. Prepares and mixes the coffee and other beverages, following standard
recipe.
2. Sets-up the bar, equipping it with coffee and other supplies.
3. Ensures that the stocks of supplies and equipment are maintained:
Job Specification:
BAKER
Job Description:
Job Specification:
Job Description:
equipment.
4. Reports to the Bartender.
5. Maintain the Cleanliness and orderliness of the dining area.
6. Performs side duties and other assignment given by his superior.
Job Specification:
DISHWASHER / UTILITY
Job description:
the bar.
2. Maintains cleanliness and orderliness of the production area.
3. Do the utility works as per directed to him.
Job Specification:
SECURITY GUARD
Job description:
Job Specification:
Employees of the Caf Bosstah will be paid for their corresponding position.
Employees will render a minimum of 8 working hours a day, 6 days a week. 100.00/hour
Salaries and wages will be given every 15 th and 30th day of the month.
Special awards will be given to the most outstanding employee in cash or in kind, to
motivate them. Benefits like SSS and Christmas bonus will also be given.
SOCIO-ECONOMIC ASPECT
GOVERNMENT:
of the people with in their territorial confines, the relations of the people with the
community as a whole and the dealings of the community with other entities. In order for
the government to perform its duties and responsibilities, funds are the essential thing it
need so, the proposed project will give respect to the Bureau of Internal Revenue code of
practice.
ECONOMY:
The business will ensure its big contribution to the economy as it provides
CUSTOMER / CLIENTS:
The business will endow sensible handing to the customers so that they
will endlessly be condescending to the place. Interminably, the customer will have their
superior position to make sure that they are treated well and their rights were expressly
exercised.
COMMUNITY:
community in form of tax. As it generates income, the large toll will be given to the
community. And these taxes are used for the revitalization of the place. Every individual
INDUSTRIES:
Some of the existing industries not only in Santiago city but also in the
olace where the needed supplies will come from shall be benefited because they will act
ENVIRONMENT:
of waste products will be implemented and will be practiced by segregating the no-