BUSINESS PLAN

FOR
TEA-GANG

(PREMIUM TEA)

Team Gang

4400 Elias Angeles, St, Naga, Camarines Sur

Email: Tea-Gang@yahoo.com

Contact #: 09295348745

Members:
Gerald Vale
Daryl Mae Adante
Dianne Maru Flor
Ma. Josefa Grageda
Bianca Jeane Ciudadano
 Introduction

Millennial nowadays find entertainment in food especially on drinking beverages such as

milk tea of different flavors. Milk tea is originated from India and being known around the world

because of colonialization. Milk tea from India has its strong flavors due to the weather and

dinning habit that’s why British and Dutch replaced the Indian Spiciest, Dutch people added

milk into the milk tea in order to counteract the bitterness of the brewed tea. Speaking of milk

tea, people think of a warm and cozy afternoon while spending time with friends. "Milk tea is

life" is a favorite line of millennia’s and one of the reason why millennial drinks milk tea and also

because milk tea have health benefits such as anti-oxidants, promotes healthy bone, prevents

various types of cancer and milk tea is the best remedy for stress.

Tea-Gang is the place where flavored milk tea with snacks is found. This is to satisfy

the needs and wants of the customers, side from tastiest milk tea and snacks, its price is very

affordable and convenient to the consumer. Everyone wants leisure not just the millennia’s but

also the young adults to escape from stress that life brought. Anyone can see students and

young couples are drinking milk tea on the streets or while doing some window shopping that’s

why Tea-Gang will be build in the place where the target market is and a place where it is easily

to remember the exact location. Tea-Gang will provide the best milk tea in the Naga City. Milk

tea will always be one of the favorite go-to drinks. It doesn’t matter what time or occasion it is -

whether you are in good or bad mood milk tea is here to save the day.
 Background

One of the trends which attracts most of the youth is chain of coffee and milk tea shops.

Because they have air conditioning and free WIFI so now they become ideal. Many famous milk

tea trade names appear in recent years such as: I heart milk tea, Gong-Cha, Infinitea, Dakasi

they have 3 to 4 new shops. Especially around university zones they usually have about 5 big or

small milk tea shops. This proves that milk tea is one of the favorites drinking of youth

community, particularly students and employees.

Tea-Gang serves a wide variety of tasty and refreshing authentic pearl milk tea drinks

for all you fanatics out there . Guaranteed made from 100% freshly brewed loose leaf teas of

high quality for an overall healthier lifestyle .

Get your Tea-Gang CUP today and keep watching out for exciting new flavors .

Tea-Gang is located at 4400 Elias Angeles, St, Naga, Camarines Sur. And they have email,

social account for more details about our product. Email Tea-Gang@yahoo.com

For Facebook and Instagram look for Tea-Gang.

 Statement

This Business Plan is intended to evaluate the business plan of selling milk tea.

Specifically, it aims to evaluate and analyze the following area:

The Technical aspects

 Product Description

 Product Process

 Kitchen Equipment/Materials

 Store Location

 Store Lay-out

The Marketing aspects o

 General Business Condition

 Description & Outlook of the Industry

 Target Market

 Market Segmentation

 Demand Analysis

 Marketing and Sales Activities

 Detailed Product

 Competition

 The Product

 Packaging

 Marketing Strategy

 Pricing
The Financial aspects

 Capitalization

 Sources of Funds

 Total Sales

 Total Expenses

 Income Statement (3 years )

 Balance Sheet (3 years)

 Cash Flow Statements

The Management aspects

 Form of ownership

 Organizational Structure

 Job Analysis

 Company Policies

The Socio-Economic aspects o

 Contribution to Government

 Contribution to Society
 Conceptual Framework

The Technical Aspects is to comprise product description, product process, equipment

and materials, store location and plant lay-out. It discusses how the products are to be

produced where to produce the products and what technology or equipment to be used.

The Marketing Aspects is considered the most important area. This is because it

describes market situation where the product can be identified through the demand analysis. It

covers all the general business condition, such as: target market, market segmentation,

demand analysis, marketing sales activities, detailed product, competition, product, packaging,

marketing strategy and pricing.

The Management Aspect describes the form of business organization that is best suited

for the proposed subject, the organizational structure, the number of personnel needed, their

qualifications and company policies

The Financial Aspect is to shows the capitalization, total sales, total expenses, source of

funds, income statement, balance sheet, cash flow statement and return of investment. In this

aspect they will not if the business is profitable or not if they gain money instead of business

lost and it will set a guide for the researchers to know if the transactions are increasing

annually.
 The Socio-Economic Aspect this area proves that the business existed not only for profit

purposes, but also for the improvement of the welfare of the people and also by paying taxes to

the government. The purpose of putting up a business is not just to generate profit but to give

importance to social and economic benefit that it can provide

Framework

Technical
Kitchen Equipment/
Product Description Product Process Store Location Store Layout
Materials

Marketing
Description and
General Business Market Marketing &
Outlook of the Target Market Demand Analysis Detailed Product
Condition Segmentation Sales Activity
Industry

Financing
Cash Flow
Capitalization Sources of Funds Total Sales Total Expenses Income Statement Balance Sheet
Statement

Form of Ownership
Organizational Structure Job Analysis Company Policies

Socio-Economic

Contribution to Government
 Product Description

Tea-Gang serves a favorite milk tea that uses traditional and untraditional powdered

flavors which suits to the tastes of the customers. Use the quality product to flavor the milk, tea

blended milk tea smoothies or blended ice you want. Tea-Gang also offers products which are

good to combine with milk tea. Tea-Gang Fries and Tea-Gang Nachos will be served according

to the customer’s choice.

Winter Melon Tea

Winter melon milk tea is caffeine-free, making it an ideal

choice for anyone looking for a soothing, but refreshing, drink

that won't keep them awake.

Chocolate Tea

Chocolate Tea is a refreshing chocolate drink that is best

blended or served over ice. When Chocolate Tea flavored

powder is blended with vanilla ice cream, it makes an

incredible chocolate shake.

 Product Process

A step by step procedure on how to make a “MILK TEA”

Step 1: MAKE THE SUGAR SYRUP

Step 2: STORE THE SYRUP FOR LATER USE.

Step 3: COOK THE TAPIOCA PEARLS

Step 4: COOL OFF THE TAPIOCA PEARLS.

Step 5: PUT THE INGREDIENTS IN THE COCKTAIL MIXER

TO MIX.

Step 6: SHAKE THE INGREDIENTS.

Step 7: PUT SOME ICE IN THE CUP AND PUT EVERYTHING

OUT FROM THE COCKTAIL MIXER IN THE CUP AS WELL.

Step 8: PUT A LID ON AND STRAW IN THE CUP AND ENJOY

YOUR MILK TEA!

 WORK FLOW OF THE PROCESS
MILK TEA

Boil the brown sugar to make sugar syrup.

Store the syrup for later use

cook the tapioca pearl and then set aside.

Put the ingredients in the cocktail mixer to mix and shake well.

Put some ice in a cup with everything out from the cocktail mixer in the cup as well.

Put a lid on straw in the cup and enjoy your milk tea!
 Kitchen Equipment and Materials

Stainless steel shaking cup is perfect for your bubble tea creations.

A great alternative to plastic. (Shaking cup)

A spoon for measuring amounts, as in cooking, usually part of a

Set of spoons of different sizes.

Things kept inside of a container are protected by being inside of its

structure. The term is most frequently applied to devices made from

materials that are durable and are usually at least partly rigid.

(Container)

A portable stove is a cooking stove specially designed to be portable and

lightweight, used in camping, picnicking, backpacking, or other use in

remote locations where an easily transportable means of cooking or

heating is needed. (Mini stove)

Any vessel (such as a saucepan), with or without a lid, used to cook

food. (Cooking pot)

 Spoon is a utensil consisting of a small shallow bowl oval or round,

at the end of a handle. (Spoon)

Ladle (dipper) is a type of spoon used for soup, stew, or other foods.

Although designs vary, a typical ladle has a long handle terminating in a

deep bowl, frequently with the bowl oriented at an angle to the handle to

facilitate lifting liquid out of a pot or other vessel and conveying it to a

bowl. (Ladle)
 Store Location

Tea-Gang is Located at 4400 Elias Angeles, St, Naga, Camarines Sur In front of Universidad De

Sta. Isabel.
Store Layout
 Target Market

The Tea-Gang will serve an affordable price and yet can satisfy you. The employee and

students are the target market of Tea-Gang. Male or Female. We target the students because

they can influence their fellow students to try and taste the Tea-Gang Cup as one of the good

serve beverage

Market Segmentation

Tea-Gang Cup considers all types of people in all ages it is not matter of their gender

they have, culture or even religion and how big their income is and where they from as long as

we give what they needs and wants and we satisfy them.

 Competition

Business exists in a competitive environment. Our best example of competition is the

fruit shake vendors, lemon juice vendors and other higher brand of milk teas. Competition

typical drinks are commonly within a market businesses are faced by direct competitors. With

regards to our consideration about our competition, we consider vendors of juices because it

will threat in our business. However, most products are differentiated in some way.

Pricing Strategy

Each Milk tea cost 60 pesos . But it will adjust based on the allowance of those students and

income of the employees or the price of the minor and major ingredients of the tea-Gang and

for the processing cost and etc. that will affect the price of our product.

The prices of Tea-Gang will be dependent on how the market price of the main ingredients is.

Any change of the price of the Tea-Gang will be taken into consideration to the factor that

measures the consumers capability to purchase the product.

 Packaging

Packaging plays in Tea-Gang an important role as medium in the marketing mix, in

promotional campaigns, as a pricing criterion, in defining the character of new products, as a

setter of trends and as an instrument to create brand identify and shelf impact in all groups.

Plastic Cup

Plastic cup is a cup made out of plastic. It is most commonly used as

a container to hold beverages (plastic cup).

Straw

Straw is an agricultural by-product; the dry stalks of cereal plants,

after the grain and chaff have been removed. (Straw).

Plastic bag

plastic bag, polybag, or pouch is a type of container made of thin,

flexible, plastic film, nonwoven fabric, or plastic textile. Plastic bags

are used for containing and transporting goods such as foods,

produce, powders, ice, magazines, chemicals, and waste. It is a

common form of packaging.

Paper Plate

Made from 100% recyclable Kraft paper that can serve delicious

foods that have dry or wet ingredients since they are grease

resistant and sauces will not leak through.

Tissue

Wrapping Tissue is a type of thin, translucent tissue paper used

for wrapping/packing various articles & cushioning fragile items.

 Roles And Responsibilities

This is the organizational arrangement of the business. The management aspect

suggests a clear and precise identification of duties and responsibilities, flow of authority and

manpower level requirement. Management study contains the organizational chart and the

qualifications of the people involved in the formation of organizational structure. It must be set

up aimed to optimum effectiveness. To attain this, management must be able to plan all

activities for the company to become dynamic and competitive business over and done with

human resource, financially and new technologies.

Forms of Ownership

The type of business will be a partnership; in which partners pool money, skills, and

other resources and share profit and loss in accordance with the term of the partnership

agreement. The compensation made is every 15th and 30th day of the month and the business

decided to have a general partnership wherein the [partner will contribute money and will be

liable up to the extent of their personal properties.

 Organizational Chart

Dianne Maru Flor

Barista
Gerald Vale
Manager
Ma. Josefa Grageda
Bianca Ciudadano
Barista
Server

Daryl Mae Adante

Manager Ma. Josefa Grageda
Cashier
POSITION RESPONSIBILITIES QUALIFICATIONS

1.Manager  Staffing the business  High School, College or

 Communicating with University Degree

the employees Preferred

 Ensures the direct  2-4 tears supervisory

reports are properly experience in either a

trained food service or retail

 Prime responsibility is environment, including

to the success of the profit and loss

company responsibility

 Basic business math

and accounting skills

 Good moral/written

communication skills

 Strong

analytical/decision

making skills

 Basic personal

computer literacy
2. Cashier  handling all the cash  At least college level

transaction of an  With pleasing

organization personality

 Receive payment by  High skilled in proving

cash a timely, efficient and

 Guiding and solving considerate customer

queries of customer service

 Providing training and  Accurate with math

assistance to new

joined cashier

 Maintaining monthly

,weekly and daily

report of transaction

3. Barista  Welcomes customers  Listening

by determining their
 Verbal communication
coffee interests and
 Customer focus
needs
 Educates customers by  Customer service
presenting and
 Basic safety
explaining the coffee
 People skills
drink menu, answering
questions  Action oriented
 Sets coffees and
 Organization
coffee grinding and
 Selling to customer
 equipment needs

 Prepare and sells  Attendance

coffee drinks by  Client relationships

following prescribed

recipes and

preparations

techniques for coffee

drinks such as

expresso, expresso

lungo, caffe latte and

cappuccino

 Maintains inventories

by refreshing coffee

bean supply, stocking

coffee brewing

equipment maintaining

supplies, pastries and

cookies for coffee bar

4. Server  Check with customers  Hands-on experience

to ensure that they are in setting tables and

enjoying their coffee placing decorations

and take actions to  Special talents for

correct any problem learning menu items

 Prepare checks that and describing them

itemize and total meal appropriately to

costs and sales taxes patrons

 Takes orders from  Highly skilled in taking

patrons for foods or orders and relaying to

beverages kitchen and bar staff

 Serve food or  Proven ability to

beverages to patrons, communicate with

and prepare to serve kitchen staff

specialty dishes at  Provide orders to

tables as required customers, collect cash

and maintain proper

accountability for

orders and funds.

 Company Policies

Equal Opportunity

Equal opportunity laws are rules that promote fair treatment in the workplace. Most

organizations implement equal opportunity policies -- anti-discrimination and affirmative action

policies, for example -- to encourage unprejudiced behavior within the workplace. These

policies discourage inappropriate behavior from employees, supervisors and independent

contractors in regard to the race, gender, sexual orientation or religious and cultural beliefs of

another person within the organization.

Attendance and Time Off

Attendance policies set rules and guidelines surrounding employee adherence to work

schedules. Attendance policies define how employees may schedule time off or notify superiors

of an absence or late arrival. This policy also sets forth the consequences for failing to adhere

to a schedule. For example, employers may allow only a certain number of absences within a

specified time frame. The attendance policy discusses the disciplinary action employees face if

they miss more days than the company allows.

Substance Abuse

Many companies have substance abuse policies that prohibit the use of drugs, alcohol

and tobacco products during work hours, on company property or during company functions.

These policies often outline smoking procedures employees must follow if allowed to smoke on

business premises. Substance abuse policies also discuss the testing procedures for suspected

drug and alcohol abuses

 Financial Plan

To understand it needs money to start. To determine whether the future industry will

remain profitable through the existence competitors and unfavorable economic conditions, the

researchers have to project a three years financial statement.

includes the source of funds, balance sheet, income statement, cost of goods sold, and cash

flow.

Financial Assumptions:

Selling price of the products are the following:

Tea-Gang Product Price Lists

Variety Price

1 Chocolate ₱60

2 Winter melon ₱ 60

Sales demand increases 10% per year.

Raw materials increases 5% per the sales year.

Initial Capital Requirements:

The partners agreed to contributed and equal sharing of capital in amount of 13,000 each for one

month and divide the income equally.

Initial Capital Requirements

Partners Ratio of Investment Invested amount

1. Vale, Gerald 17% ₱ 13,000

2. Adante, Daryl mae 17% ₱ 13,000
3. Flor, Dianne Maru 17% ₱13,000
4. Gradeda,Ma. Josefa 17% ₱13,000
5. Ciudadano. Bianca 17% ₱13,000
6. Vale, Gerald 17% ₱13,000

TOTAL 100% ₱ 78,000

Cost and Expense

Winter Melon

Schedule 1: Purchase of Raw Materials

Cost per production

Item Monthly Yearly Unit Price Amount Price

Flavor 20kgs 240 ₱ 130.00 ₱ 2,600.00

Pearls 25kgs 300 ₱ 250.00 ₱ 6,250.00

Ice 30sacks 360 ₱ 90.00 ₱ 2,700.00

Sugar 150kilos 1800 ₱ 60.00 ₱ 9,000.00

Water 60galloon 720 ₱ 25.00 ₱ 1,500.00

Tea 60kilos 720 ₱ 130.00 ₱ 7,800.00

Schedule 2: Rent Expense

Monthly Annual Cost

₱ 3,500.00 ₱ 42,000.00

TOTAL ₱42,000.00
Schedule 3: Compensation – Salary Expense

Position Cost Per Month 13th Month Cost Per

Annual

Manager ₱3,500 ₱3,000 ₱45,000.00

Manager ₱3,500 ₱3,000 ₱45,000.00

Cashier ₱1,500 ₱1,500 ₱19,500.00

Bartender ₱2,000 ₱2,000 ₱26,000.00

Bartender ₱2,000 ₱2,000 ₱26,000.00

Server ₱1,500 ₱1,500 ₱19,500.00

TOTAL ₱14,000 ₱17,500 ₱181,500.00

Schedule 4: Office Supplies

ITEM QUANTITY PRICE ANNUAL COST

Ball pen 12 pcs ₱ 5.00 ₱ 720.00

Stapler 2 pcs ₱30.00 ₱ 720.00
Staple wire 10 boxes ₱ 6.00 ₱ 720.00
Record Book 1 pc ₱70.00 ₱ 840.00

Official receipt 10 pcs ₱ 20.00 ₱ 2,400

TOTAL ₱ 6,680.00
Schedule 5: Packaging

Item Quantity Price Monthly Annual Cost

Plastic Cups 200pcs ₱8.00 ₱48,000 ₱576,000

Plastic Straws 200pcs ₱.5cents ₱3,000 ₱36,000

Styrofoam 100pcs ₱1.00 ₱3,000 ₱36,000

Toothpicks 2boxes ₱20 ₱600 ₱7,200

TOTAL: ₱655,200

Schedule 6: Transportation
Monthly Cost Annual Cost

Transportation fair P ₱216.00 ₱ 2,592.00

TOTAL ₱ 2,592.00

Schedule: 7 Promotional Cost

Cost No. of Months Annual Cost

Free taste ₱ 500.00 1 ₱ 500.00

Flyers ₱ 250.00 12 ₱ 3,000.00

TOTAL ₱ 3,500
Schedule 8: FURNITURE AND FIXTURE

ITEM Annual Cost

Long chair ₱200.00

TOTAL P ₱200.00

SCHEDULE 9 – Kitchen tools

Item Quantity Price Amount

Stove 1 ₱165 ₱165.00

Casserole 1 ₱280 ₱280.00

Tong 1 ₱50 ₱50.00

Measuring Cups 1 (set) ₱300 ₱300.00

Scissor 1 ₱20 ₱20.00

Strainer 1 ₱50 ₱50.00

Shaker Bottle 1 ₱450 ₱450.00

TOTAL ₱1,315.00
SCHEDULE 10: Utility Expense

Schedule to Utilities Cost Per month Annual cost

Water ₱750 ₱9,000

Electric bill ₱300 ₱3,600

Rag ₱150 ₱1,800

Alcohol ₱150 ₱1,800

Dishwashing soap ₱50 ₱600

Dipper ₱20 ₱20

Mop ₱150 ₱150

Plunger ₱70 ₱70

Albatros ₱50 ₱600

Sponge ₱50 ₱600

Pail ₱40 ₱1,680

Gloves ₱50 ₱80

TOTAL ₱1,830 ₱20,000

Statement of Cost of Goods Sold

2019 2020 2021

Beg. Inventory

Add:

Purchased of Raw Materials ₱358, 250 376,162.50 394,470.625

Packaging ₱655, 000 656,000 655,000

Cost of Goods Sold ₱1, 013,250 1,031,162.50 1,049,470.625

Projected Sales for 2019-2021

Demand 2019 2020 2021

Milk tea 72,000 80,000 90,500
Fries 9,000 10,400 11,200
Nachos 5,400 6,200 7,500
Total 86,400 96,200 109,200

Sales
Milk tea 4,320,00 4,800,000 5,430,000
Fries 135,000 156,000 168,000
Nachos 135,000 155,000 187,500
Total 4,590,000 5,111,000 5,785,500

Income Statement

For the year December 2019

Gross sales ₱4, 590,000

Less: Cost of goods sold ₱1, 013,250

Gross Profit ₱3, 576,750.00

Operating Expense

Compensation expense ₱181, 500.00

Rent expense ₱42, 000.00

Utility expense ₱20, 000.00

Office supplies ₱1, 950.00

Kitchen tools ₱1, 315.00

Transportation cost ₱2, 592.00

Furniture and fixtures ₱200.00

Promotional expense ₱3, 500.00

Total operating expense ₱253, 057.00

Operating income ₱3,323,693

Income before tax ₱3,323,693

Less: income tax(35%) ₱1,163,292.55

Net Income ₱2,160,450.45

Tea-Gang

Income Statement

For the year December 2020

Gross sales ₱5, 111,000.00

Less: Cost of goods sold ₱1, 013,162.50

Gross Profit ₱4, 079,838.50

Operating Expense

Compensation expense ₱181, 500.00

Rent expense ₱42, 000.00

Utility expense ₱20, 000.00

Office supplies ₱1, 950.00

Kitchen tools ₱1, 315.00

Transportation cost ₱2, 592.00

Furniture and fixtures ₱200.00

Promotional expense ₱3, 500.00

Total operating expense ₱253, 057.00

Operating income ₱3,826,781.50

Income before tax ₱3,826,781.50

Less: income tax(35%) ₱1,339,373.53

Net Income ₱2,487,407.97

 Tea-Gang

Income Statement

For the year December 2021

Gross sales ₱5,785,500

Less: Cost of goods sold ₱1,049,470.63

Gross Profit ₱4,736,029.37

Operating Expense

Compensation expense ₱181,500.00

Rent expense ₱42,000.00

Utility expense ₱20,000.00

Office supplies ₱1,950.00

Furniture and fixtures ₱200.00

Kitchen tools ₱1,315.00

Transportation cost ₱2,592.00

Promotional expense ₱3,500.00

Total operating expense ₱253,057.00

Operating income ₱4,482,972.37

Income before tax ₱4,482,972.37

Less: income tax(35%) ₱1,569,040.33

Net Income ₱2,913,432.04

 Tea-Gang

Statement of cash flow

For the year 2019-2021

2019 2020 2021

Cash, Beginning ₱3,096,400.45 ₱5,583,807.42
Partners ₱936,000
contribution
Sales ₱4,590,000 ₱5,111,000 ₱5,785,500
Total cash ₱5,526,000 ₱8,207,400.45 ₱11,369,307.42
Less: payments
Raw materials ₱358,250 ₱376,162.50 ₱394,970.625
Packaging ₱655,000.00 ₱655,000 ₱655,000
Utilities expense ₱20,000 ₱20,000 ₱20,000
Rent expense ₱42,000 ₱42,000 ₱42,000
Office supplies ₱1,950 ₱1950 ₱1950
Furniture and ₱200 ₱200 ₱200
fixtures
Kitchen tools ₱1,315 ₱1,315 ₱1315
Compensation ₱181,500 ₱181,500 ₱181,500
expense
Transportation cost ₱2,592 ₱2,592 ₱2,592
Promotional cost ₱3,500 ₱3,500 ₱3,500
Income tax ₱1,163,292.55 ₱1,339,373.53 ₱1,569,040.33
Total operating ₱2,429,599.55 ₱2,623,593.03 ₱2,872,067.96
expense

Cash, ending ₱3,096,400.45 ₱5,583,807.42 ₱8,497,239.46

balance