D&M Coffee Bar

I. Cover Page

D & M Coffee Bar Business Plan

Sampaloc , Apalit, Pampanga,2016

Company Tel no: 09663249499 / 09494380104
April 06, 2019

Location and General Business Contact Information:

Mr. Marvic G. Dela Cruz
Berry St. #710 Santos Estate San Vicente, Apalit Pampang 2016
Mrs. Djanelene M. Dela Cruz
Berry St. #710 Santos Estate San Vicente, Apalit Pampang 2016

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Statement of Confidentiality Report

The undersigned reader of D&M Coffee Bar Business Plan hereby acknowledges that the
information provided is completely confidential and therefore the reader agrees not to disclose
anything found in the business plan without the express written consent of Mr. & Mrs. Dela Cruz.
It is also acknowledge by the reader that the information to be furnished in this business plan is in
all aspects confidential in nature, other than information that is in the public domain through other
means and that any disclosure or use of the same by the reader may cause serious harm and or
damage to D&M Coffee Bar.
Upon request this business plan document will be immediately returned to Mr. & Mrs. Dela Cruz.
This is a business plan. It does not imply an offer of any securities.

Djanelene M. Dela Cruz

Signature over Printed Name

Marvic G. Dela Cruz

Signature over Printed Name

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II. Executive Summary

D&M Coffee Bar is determined to become a necessity for every coffee

lovers. This is a perfect place to someone that wants to escape the daily
stress of life, also this is a perfect place to hang out with your friends. With
the growing demand for high quality gourmet coffee and great services,
D&M will be strategically located within easy walking distance from the
schools, hospitals and nearby establishments. Our convenient location and
excellent customer service should build a steady repeat customer base.
D&M will precisely offers the best prepared coffee in the area that will be
complimented with pastries.

Owners Marvic Dela Cruz and partner Djanelene Dela Cruz each have over
a decade in the food service industry, including management experience.

Our company will operate 1,500 sq. ft. coffee bar, a 2 story building that
can surely give the satisfaction of our customers. We secured our location
to a 5-year leased with an option of extending it. We decided to choose
coffee business because in this era millennials do want a lot of unique
product that can become famous in our country.

We expect sales revenue to grow from 3.5M in the first year of operations
P300, 000 per month and P10, 000 per day. To minimize operating
expenses both of the principals will be onsite on a full time basis to reduce
staffing costs, supervise and maintain quality control. We expect net
profits to grow from 5M in the next 2 years.
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Mission:

D&M Coffee Bar will guaranteed to make our best efforts to develop and
create a unique place where customers could find peace and satisfaction.
We will be in the business of providing a perfect, delicious coffee products
and excellent, reliable service to our customers.
D&M Coffee Bar is to inspire and nurture the human spirit--- one person,
one cup and one neighborhood at a time.
Vision:

To be established and trusted as the perfect coffee business partner in our

country. To be a leader in innovation, service and quality. To be among
the most admired and respected companies in our industry and to be the
leader in our markets.

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Objectives:

To become selected as the best coffee bar in the area of Apalit,

Pampanga
To earn profits from the first month of our operations.
Maintain a high standard of food quality and service
Ensure a friendly comfortable atmosphere
Offer discount coupons

Key to Success:

Product quality: Food, coffee-based beverages, and entertainment

are our products. They must be of the high quality and value.

Service: Our patrons are paying to have a good time. Each member of
the staff will be courteous, efficient, and attentive.

Marketing: We will need to target our audience early and often. While
the business is located in a central and accessible location, many
people will have to be re-introduced to the neighborhood.

Management: We will need to have a firm grasp on food, beverage,

and labor costs. The coffeehouse experience must be delivered in a
fashion that will not only inspire repeat business, but encourage word-
of-mouth recommendations to others. Proper inventory, employee
management, and quality control is key.

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I. Product

Expect More Than Coffee!

We’re not just passionate purveyors of coffee, but everything else that goes with
a full and rewarding coffeehouse experience. We also offer a selection of
premium teas, pastries and other treats to please the taste buds.

We offer a lot of coffee products list with a lot of blended flavors. We ensure our
customers the satisfaction that they’re looking for a coffee product.

Here are some of our best seller coffee and refreshers list:

Espresso Coffee

Cafe Latte

Caramel Macchiato

Flat White Tall Creamy Espresso

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Caramel Mocha

Frappuccino’s and Refreshers:

Caramel Frappuccino

Strawberry and Creamy Frappuccino

Vanilla Bean Frappuccino

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Here are some of our best seller pastries:

Blueberry Muffin

Oat Cake Muffin

Chocolate Chunk Brownie

Everybody’s Favorite Dream Muffin

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We will be offering counter service in a professionally designed, cozy, inviting

interior space. Interior seating will be a mix of smaller individual tables for intimacy
and longer, bench style ones for larger groups. Exterior seating will consist of
weatherproof tables and chairs with available sunshade umbrellas. We intend to be
open from 7:30 AM to 9:00 PM weekdays, and 9:00 AM to 9:00 PM weekends.

What Makes D&M Coffee Bar Unique

D&M Coffee Bar is to cater to the young and "young at heart" with top quality
products, great service, and plenty of seating indoors and out. We aim to be the
destination place to meet with friends, relax, and enjoy a great cup of coffee. Ultra-
fast Wi-Fi will enable students and business people to readily communicate and
work on school or business activities.

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II. Marketing Plan

A. Target Market

As we know, our generation now is Millennials and as we see they do want always
to relax and feel comfortable and they always finds products that has the lower price
but has the same quality of taste and satisfactions with the other famous coffee bars.
And for us to conduct the target market of our product, we conduct surveys and
below is the result of it.

Potential Market Customers:

MARKET ANALYSIS

STUDENTS & FACULTY

(55%)

TEENAGERS(20%)

OFFICE WORKERS(15%)

OTHER(10%)

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B. Competition

Our company is located at Sampaloc between school and hospital and nearby Town
of Apalit, Pampanga that’s why we always predicted a lot of competitors like Café
Amazon, and other milk tea shop. But in the other hand we always think that any
business has/have their competitors and we always think that our competitors makes
our company strong, And as we know Coffee shop deals with both product and
services, we provide products and also we provide services with the help of our
employees, and also our location we think that our location is very convenient to
everyone it very accessible to everyone because it is located beside of the main road.
And also it has very comfortable environment inside of it. Very friendly place.

C. Competitive Edge

D&M Coffee bar will position itself as a unique coffee bar where its patrons cannot
only enjoy a cup of hot coffee or a serve of iced coffee but also spend their time not
wasted and in a peacefully and ambient environment. Comfortable sofas and chairs,
deemed light that can relax their feelings and mind and also quiet and relaxing music
that will help them to focus on their doings and also to relieve the stress and pain,
all of these will tell the difference of our coffee shop to the other competitors of it.

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D. Pricing

We intend to mainly focus on specialty coffees including espresso, Frappuccino’s,

mochas, etc. Coffee has always been our best friend, in times of waking-up
struggles, stress, and chit-chat with friends, and just about everything. And what
better than sit in D&M Coffee Bar as you do your own thing while sipping on a
customized cup of your favorite coffee and nibbling on some amazing snacks.

Choose your portions from Tall, Grand and Venti and you are good to go!

Espresso Coffee and Tea

Caffe Latte Tall ₱ 90

Caffe Latte Grande ₱ 120

Caffe Latte Venti ₱ 150

Caramel Macchiato Tall ₱ 90

Caramel Macchiato Grande ₱ 120

Caramel Macchiato Venti ₱ 150

Flat White Tall ₱ 120

Freshly Brewed Coffee Tall ₱110

Freshly Brewed Coffee Grande ₱130

Freshly Brewed Coffee Venti ₱150

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Cinnamon Dolce Latte Tall ₱120

Cinnamon Dolce Latte Grande ₱130

Cinnamon Dolce Latte Venti ₱160

Caramel Flan Latte Tall ₱130

Caramel Flan Latte Grande ₱160

Caramel Flan Latte Venti ₱180

Skinny Mocha Tall ₱130

Skinny Mocha Grande ₱150

Skinny Mocha Venti ₱180

Caramel Mocha Tall ₱130

Caramel Mocha Grande ₱160

Caramel Mocha Venti ₱180

Graham Latte (Limited Time) Tall ₱140

Graham Latte (Limited Time) Grande ₱160

Graham Latte (Limited Time) Venti ₱180

Frappuccino, Refreshers & Iced Coffee

Iced Coffee (with or without Milk) ₱80

Iced Coffee (with or without Milk) Grande ₱100

Iced Coffee (with or without Milk) Venti ₱120

Caramel Frappuccino Tall ₱140

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Caramel Frappuccino Grande ₱160

Caramel Frappuccino Venti ₱180

Mocha Frappuccino Tall ₱130

Mocha Frappuccino Grande ₱150

Mocha Frappuccino Venti ₱180

Strawberry and Creamy Frappuccino Tall ₱130

Strawberry and Creamy Frappuccino Grande ₱150

Strawberry and Creamy Frappuccino Venti ₱180

Coffee Frappuccino Tall ₱120

Coffee Frappuccino Grande ₱150

Coffee Frappuccino Venti ₱180

Vanilla Bean Frappuccino Tall ₱120

Vanilla Bean Frappuccino Grande ₱150

Vanilla Bean Frappuccino Venti ₱180

Iced Caramel Tall ₱120

Iced Caramel Grande ₱150

Iced Caramel Venti ₱80

Salted Caramel Mocha Frappuccino ( Limited Time) Tall ₱120

Salted Caramel Mocha Frappuccino ( Limited Time) Grande ₱150

Salted Caramel Mocha Frappuccino ( Limited Time) Venti ₱180

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Teavana Shaken Iced Tea Tall ₱110

Teavana Shaken Iced Tea Grande ₱130

Teavana Shaken Iced Tea Venti ₱160

Teavana Shaken Iced Tea Trenta ₱80

Evolution Fresh Grande ₱120

Pastries
Ham & Cheese Savory ₱120

Wheat Spinach Savory ₱120

Pepperoni & Tomato Savory ₱130

Cheese Danish ₱100

Butter Muffin ₱100

Chocolate Muffin ₱90

Blueberry Muffin ₱90

Banana Nut Bread ₱90

Morning Bun 100

Chocolate Chip Cookie ₱80

Chocolate Chunk Brownie ₱90

Oat Cake Muffin ₱100

Everybody’s Favorite Dream Muffin ₱100

Apple Pound Cake (Limited Time) ₱120

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III. Organizational Plan

A. Management Summary

D&M Coffee Bar is owned by the two couples, Mr. Marvic Dela Cruz and Ms.
Djanelene Dela Cruz. Both of them holds a Bachelor’s Degree in Business
Administration from ACLC College of Apalit. They work several years as an
independent business consultant. They also owned different businesses like
Automobile Buy and Sell, they also have extensive business contract in Angeles City
Pampanga an Automobile Industry that they will leverage to help their new venture
succeed. Ms. Djanelene Dela Cruz also worked as a former Manager in Gloria Jeans
Coffee a successful coffee shop under her leadership the Gloria Jeans Coffee has
consistently increased their sales while maintaining a lower average level of
operating expenses. Both of them is eager to achieve their dream and this is what
their dreaming of to have a successful Coffee Shop business.

B. Management Team

We manage to have a full time manager to oversee the daily operation of our Coffee
Shop and his name is Mr. Paul Gamao he is currently had a ten years managerial
experience in his current employment and his responsibility will include the
managing of our staff, ordering inventory, and developing marketing strategy that
will help our company achieving its target and other managerial duties. We believe
that even though our Coffee Shop starts as a small business, with the help of our
manager we can make all things possible.

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Duties and Responsibilities of the Management Team

An additional manager (to be hired) will assist in maintaining and reviewing

operations of the entertainment Coffee Bar.

A barista (to be hired) will manage kitchen operations and be crucial to maintaining
food inventory stability and assistance in menu development.

An assistant manager/senior server (to be hired) who will be a salaried employee,

will provide regular table service as well as assistance to the manager and the general
manager.

Part-time personnel will be hired to handle serving, and dishwashing functions.

The marketing, and accounting function will be handled by independent

contractors/consultants.

C. Personnel Plan

The personnel plan calls for hiring 5 full-time salaried employees at start-up. Part
time baristas / bartenders will have to be hired to manage approximately 135 hours
of operation per week, servers/waiters will have to be hired for approximately 203
hours of operation per week, and dishwashers will have to be hired to handle
approximately 62 hours of operation per week.

Any additional hires will be part time and devoted to the expansion of any
catering function, as well as increased capacity/operation of a private party
function.

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Employee salaries are as follows:

Position Salary
General Manager ₱540.000/year
Baristas/Bartenders ₱360.000/year

Assistant Manager/Senior Server ₱360.000/year

Servers ₱180.000/year
Dishwashers/Bussers ₱145.000/year
Total salaries ₱1.585.000/year

D. Management Team Gaps

The management team will have to partially rely upon outside
contractors/consultants for both the marketing and accounting functions.

The management team is still in the early stages of formation. and are under heavy
consideration.

IV. Operating Plan

Facilities

The premises we have chosen are at Sampaloc Apalit, Pampanga The space
features:

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1,000 square feet of indoor space in a modern, well-maintained building in an

excellent location

Approximately 500 square feet of outdoor patio space, with lockup racks for
bicycles

A four-year lease at P100,000/month with a fifth year free

The building owner is responsible for trash collection, recycling, pest control, and
security

Utilities (water, electricity, gas, internet, phone) are estimated to be P15,000

per month

The previous tenant was a restaurant and there are existing kitchen, counter and
sufficient washroom facilities already in place. The previous tenant has offered to
sell used kitchen equipment at heavily discounted prices.

Staffing

Two full-time and four to six part-time baristas will be hired at industry standard
wages. Baristas will be trained at a regional barista training academy. The two full-
time employees are previous employees of the owners. The part-time employees
will be sourced from the local post-secondary institutions.

Owners and staff will share all regular duties, including taking orders, making
coffee/tea, clearing tables, restocking, dishwashing, maintaining washroom
facilities, etc.

To increase employee loyalty a bonus/profit sharing system will be put in place.

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Equipment

The following equipment will be purchased:

Commercial grade La Marzocco Espresso machine

Espresso grinder

We are currently negotiating the purchase of used commercial equipment from the
previous tenant, including:

Glass door fridge

Dishwasher

Microwave

Misc. shelving, storage bins, etc.

Maintenance contracts for the equipment will be negotiated with local vendors.

Supplies

We have negotiated an agreement with Murphy's Coffee Wholesalers to supply

premium gourmet Columbian coffee/espresso beans with two-day shipping. Milk,
juices, fruit, etc. will be sourced from the local Costco.

Muffins, scones, cookies, yogurt fruit cups, and sandwiches will be supplied on a
daily basis by Ruth’s Catering.

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V. Financial Plan

D&M Coffee Bar capitalize on the strong demand for high quality gourmet coffee
shop. We the owners provided the company with sufficient capital, comes with a
very successful management aimed at establishing and growing a loyal customer
base and also with the help of our relatives and family, most especially our parents
they make our business possible. Our company will see its net worth doubling in
two years and we will maintain a healthy 70% gross margin. To ensure that our
company will provide enough cash to finance further growth.

Break-even Analysis

The monthly break-even point is shown in the table and chart below. It is based
on the Company's conservatively forecasted monthly expenses, cost of sales, and
gross margins.

Even though the plan is to reach this break-even goal and become profitable
sometime during the first three years in business, management prefers to project
conservatively to make certain cash balances are not strained

Table: Break-even Analysis

Break-even Analysis

Monthly Revenue Break-even ₱33,525

Assumptions:
Average Percent Variable Cost 50%

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Estimated Monthly Fixed Cost ₱16,763

Projected Cash Flow

The Projected Cash Flow is summarized in the table below. The projection for
cash indicates that each year within the three-year projection will end with a
positive accumulated cash flow total.

With continued sales growth, cost controls, and gross margin maintenance, the
financial projections contained in this Business Plan should allow D&M Coffee
Bar] to maintain a positive cash flow and cash balance for years to come. This
indicates the Company will have the ability to sustain its operational cash
requirements and provide Company ownership with dividend distribution.

Table: Pro Forma Cash Flow

Pro Forma Cash Flow

Year 1 Year 2 Year 3
Cash Received

Cash from Operations

Cash Sales 250,000 312,500 359,375
Subtotal Cash from Operations 250,000 312,500 359,375

Additional Cash Received

Sales Tax, VAT, HST/GST 0 0 0
Received
New Current Borrowing 0 0 0
New Other Liabilities (interest- 0 0 0
free)
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New Long-term Liabilities 0 0 0

Sales of Other Current Assets 0 0 0
Sales of Long-term Assets 0 0 0
New Investment Received 0 0 0
Subtotal Cash Received ₱250,000 ₱312,500 ₱359,375

Expenditures Year 1 Year 2 Year 3

Expenditures from Operations

Cash Spending ₱98,000 ₱100,940 ₱103,968
Bill Payments ₱173,611 ₱205,128 ₱143,461
Subtotal Spent on Operations ₱271,611 ₱306,068 ₱247,429

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid 0 0 0
Out
Principal Repayment of Current 0 0 0
Borrowing
Other Liabilities Principal 0 0 0
Repayment
Long-term Liabilities Principal 0 0 0
Repayment
Purchase Other Current Assets 0 0 0
Purchase Long-term Assets 0 0 0
Dividends 0 0 0
Subtotal Cash Spent ₱271,611 ₱306,068 ₱247,429

Net Cash Flow (₱21,611) ₱6,432 ₱111,946

Cash Balance ₱65,889 ₱72,321 ₱184,267

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Projected Balance Sheet

The Balance Sheet table (below) shows the Pro-Forma Balance Sheet
projections. As is illustrated, the asset base will grow through accumulated cash
balances and retained earnings will grow through accumulated net profits.

Based on these financial projections, the management of D&M Coffee Bar

expects to build a business with a solid balance sheet for years to come.

Pro Forma Balance Sheet

Pro Forma Balance Sheet

Year 1 Year 2 Year 3
Assets

Current Assets
Cash ₱65,889 ₱72,321 ₱184,267
Other Current Assets ₱150,000 ₱150,000 ₱150,000
Total Current Assets ₱215,889 ₱222,321 ₱334,267

Long-term Assets
Long-term Assets ₱200,000 ₱200,000 ₱200,000
Accumulated Depreciation ₱31,752 ₱63,504 ₱95,256
Total Long-term Assets ₱168,248 ₱136,496 ₱104,744
Total Assets ₱384,137 ₱358,817 ₱439,011

Liabilities and Capital Year 1 Year 2 Year 3

Current Liabilities
Accounts Payable ₱22,789 ₱16,329 ₱11,385
Current Borrowing 0 0 0
Other Current Liabilities 0 0 0
Subtotal Current Liabilities ₱22,789 ₱16,329 ₱11,385

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Long-term Liabilities 0 0 0
Total Liabilities ₱22,789 ₱16,329 ₱11,385

Paid-in Capital ₱450,000 ₱450,000 ₱450,000

Retained Earnings (₱12,500) (₱88,652) (₱107,512)
Earnings (₱76,152) (₱18,860) ₱85,138
Total Capital ₱361,348 ₱342,488 ₱427,626
Total Liabilities and Capital ₱384,137 ₱358,817 ₱439,011

Net Worth ₱361,348 ₱342,488 ₱427,626

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