________________________________________________ In partial fulfillment of the Requirement in the subject Entrepreneurship and Business Plan



Submitted to

Ms. Grace Betanzor

Submitted by

Bryan Gacho Merasol Gumapac Mark Denver Marilla

S.Y 2010-2011


TABLE OF CONTENTS Acknowledgement I. Introductory Page A. Name and address of business B. Nature of business C. Statement of financial needed D. Statement of confidentiality report II. III. Executive Summary Industry Analysis A. Future outlook and trends B. 1. Economic Condition 2. Socio-Cultural Condition 3. Demographic profile C. Analysis of Competitors IV. Description of Venture A. Product B. Service C. Size of the Business D. Office Equipment & Personnel 12 5 5 5 5 6 6 7 8 9 10 10 10 11

V.Production Plan 2

A. Production Process B. Physical Plant C. Machinery and Equipment VI. Marketing Plan A. Pricing B. Distribution C. Production D. Target Market Forecast E. Controls VII. Organizational Plan A. Form of Ownership B. Org. Structure C. Roles and responsibilities and manners of organization




17 18



VIII. Assessment of Risk IX. Financial Plan A. Financial Object B. Projected Income Statement C. Projected Cash Flow D. Projected Balance Sheet

22 23

24-26 27-28 27


4 .

Tacloban. Introductory Page A. It is also that the downtown district is the commercial center of the region.000. “R Express: Coffee and T. The partnership will be incurring a loan at the Development Bank of the Philippines. Tac.00. Partnership will be the form of this business venture.P3. The total investment requirement will be P2.000. Nature of Business The business is a coffee shop that caters mostly to students. Name and Address of business The group comes up to name the business “R8 EXPRESS: Coffee and T. for our business is located at the heart of the region.V & G Subd. 4. Statement of Financial Needed Starting a business entails a certain amount of capital. this loan will be worth P1. specifically general partnership which means that all of the partners will be involved in management.00. green and blue as accent as its concept. Gacho  Merasol R.000. thus.City Sampagita.L7. Its unique concept will give a differential advantage among other coffee shop. 500. and individuals that belongs in the average to above average earner group and has high disposable income. B. 000. 5 Brgy.I.00 with an interest of 10% annually and 7% discount rate. Gumapac  Mark Denver Marilla C. coffee shop goers. each partner’s contribution will be P250. The partner’s equity will be divided equally among the partners. Downtown district of Tacloban is the proposed location of the business for it ideal source of our potential target market.Sagkahan Tacloban City . 60% will be the partner’s equity and 40% from loan equity. Names and Addresses of Principals  Bryan M.” will be adopting a mix of nature and tourism inspired photo gallery style with Earth color. Lawaan Eastern Samar Blk11.” R8 stands for Region 8 or the Eastern Visayas Region. D. The letter T stands for tourism since our course THRM is related to Hospitality and Tourism Industry and also to promote the region’s paradise and attractions through photo gallery concepts.A7.

Executive Summary An innovative coffee business with nature inspired and a twist of nature and tourism photo gallery concept will be launched as a new competition in the coffee shop market. costs less products and pricing scheme that is significantly lower than that of competitor. it will not only offer affordable product but also the quality and health benefit of it specifically patterned to suit the local taste preference. the souvenir items at affordable prices and the quality services that will offer recreation. Food and beverage are not only our main product but also the ambiance and business concept. R8 EXPRESS target market are classified into students. The venture will cater to both the informed and uninformed market segments and will also expect to attract a substantial number of 1st-time coffee shop goers and adventurous coffee shop goers. “R8 EXPRESS” will ensure that customers will get 6 . specifically general partnership and will be located at the downtown district of Tacloban. Statement of Confidentiality Report This business plan report is confidential and a property of the partners listed above. young and middle age professionals. The business venture will offer. Any reproduction of any of its contents without the prior consent of the group is prohibited. II. Finding of the business comes from two major sources. freshly baked cakes and pastries and delicacies that will depend on the availability and demand. middle and high class individuals. “ this will not only serve coffee and the usual cakes but will also introduce high quality and nutritious region’s delicacies that adds twist to the coffee shop. The important values that will be associated with our venture is that. comfort and satisfaction. 60% partner’s equity and 40% from loan equity. health conscious and travelers/tourists. And we will also looking forward that our business will help in the tourism promotion of the region. We will offer different kinds of coffee.E. and other beverage. With the brand name “ R8 EXPRESS: Coffee and T. This business venture will be a partnership.

radio ad. Stiff competition is highly expected for coffee shop business is one of the fastest growing ventures here in Tacloban. However.  To establish an effective and profitable marketing mix of product. with an annual growth rate of 10%.the best purchase and post-purchase experience and as well as memorable experience as our main service so as to encourage repeat buyers. sales promotion and internet advertising. Future Outlook and Trends About the Coffee Drinking Trends Each year. flyers/pamphlets. with a unique concept and marketing strategy with the positive results from the market research.  To increase sales by 10 to 20 per cent annually for the first three years  To evaluate the competitive environment and continue to establish a differential advantage  To make agreement with coffee and delicacies distributors and bakery ventures for high quality and best choice of products  To create a cozy and friendly environment  To become the foremost coffeehouse in the area  III. Those reports tell how much coffee is bought and sold. That will be projected after the first 2 years of “R8 EXPRESS” operation. the interior design.. maximum profitability may be expected from this business venture. They tell who buys and drinks coffee. place. The coffee shop itself. BUSINESS OBJECTIVES AND GOALS:  To meet the growing needs of the target market  To create social responsibility as to promote the tourism of Eastern Visayas ad environmental awareness. theme and the exterior as well are also set to attract customers. how much coffee people drink in different 7 . The promotional strategies that will be employed would include signage. Industry Analysis A. tarpaulins. price and promotion. An additional product variety and product innovation will be offered as part of the market development strategy and after achieving sufficient product compliance from the target market. several different organizations publish reports on coffee drinking trends in the United States and around the world.

An increase in the number of people drinking coffee outside the home from 1950 to the present . The Facts  The most significant coffee drinking trends in the past 50 years include: . according to the 2008 report on coffee drinking trends: .An increase in the consumption of flavored coffees starting about 1992 . many small businesses have capitalized on this need. but coffee shops have only become popular over the last 100 years. Significance Understanding trends in coffee drinking can help coffee shop owners. Coffee shops tend to do very well. even if it would do them some good. and they don't always have time to sit down for a full breakfast. Benefits  The NCDT shows that a growing number of people are concerned about the benefits of drinking coffee.parts of the country and the world.61 percent of coffee drinkers said that coffee improves their focus . both personally and for the world at large. and what kind of coffee and coffee drinks are most and least popular. For instance.A growing awareness of ecological and economic issues surrounding coffee since 2002 . History A. Coffee has been around for thousands of years. The information is also useful to other food retailers. This is partly due to our fast-paced society.The growing number of people concerned with health effects of coffee . the coffee drinking trends from 2003 to 2008 clearly show an increase n the number of people who are more likely to buy a coffee that is Fair Trade certified.Fair Trade certified and organic coffees are the fastest-growing segment of the specialty coffee market About Coffee Shop Trends Coffee is the drink of choice for many people across the world. Most people would rather get a cup of coffee than enjoy a healthy breakfast.46 percent listed the health benefits of drinking coffee as one of the reasons they drink coffee . As more people have relied on caffeine to wake them up in the mornings. Coffee has become so popular that there are a number of different flavors and combinations available. It is now one of the largest coffee shop chains around. For instance. Coffee shops in general provide a lot of business. You can fill up on anything from a white chocolate mocha to a double chocolate chip iced coffee.A steady drop in daily coffee consumption from 1950 to 1993 . Benefits 8 . Many people are busy.An increase in coffee consumption in both young (18 to 24) and senior (60-plus) age groups Each of these trends has represented significant changes in the way that people view and drink coffee. those in the hospitality industry and anyone who is considering a career in the coffee industry. Back in the 1990s.A steady upward trend in daily coffee consumption from 1993 onward . or even vanilla bean treats. which suggests that consumers are growing more concerned with paying a fair price for the coffee that they drink. roasters and other coffee professionals make business decisions about what products to order and offer in their shops. Every morning millions of people rely on their morning fix to get going for the day. Starbucks started to expand across the entire world. especially the giant coffee shop chain known as Starbucks.A growing upward trend in specialty coffee consumption beginning in the early 1990s .

This provides consumers with the added convenience of saving time by being able to pick up a quick cup of coffee regardless of where they are.B. The benefits of these coffee shop trends are many. This is especially helpful for busy students on the go. It is one of the few first class cities in the Philippines (cities with an annual income of more than PhP300 million) and is slated to be declared as a highly urbanized city in 2008 (having exceeded the minimum qualfying standards in terms of income and population). With coffee shops on every corner. has been linked to a lower risk of type 2 diabetes.worldlingo. People love coffee.com http://www. If you took a road trip across America. The coffee shop trend continues because there is a huge demand for it. and coffee shops have come up with the trend of offering many coffee drinks and treats that are low-fat. The sectors that are of key importance in the Philippines Economy are agriculture. it is not difficult to find a place to buy your morning coffee.html#ixzz1FQBsIsJe B.2 billion. At constant 1985 prices and current prices in million PHP (Pesos). especially decaffeinated varieties. There are many other health benefits of drinking coffee in moderation. While the biggest and most well-known chain is Starbucks. Industrial Sector contributes 18. industry and mining each of which can be detailed under the following heads. According to the Archives of Internal Medicine. you would find coffee shops on just about every corner.1% in the GDP.” (http://www. and government in the region.com/world_economy/philippines/) The Philippines is a newly • Tacloban City Economy It is the regional center of commerce. Agricultural sector contributes about 17. culture. Brazil has by far the most coffee drinkers worldwide. Coffee with no sugar or added creamers has no calories.economywatch. tourism. The proliferation of coffee shops help the economy to flourish because they encourage spending and create jobs.1% of the GDP. which is the reason why coffee shops are so popular. Some people even say that they can smell the aroma of coffee in the air. In terms of the purchasing power parity it ranked 24th according to the World Bank. Economic Condition: • Philippine Economy The Philippines is located in South East Asia and the Philippines economy has been industrialized in the recent times.com/about_4567371_coffee-shop-trends. Features C. Some coffee shops provide Internet access so that people can use their laptops while they enjoy their coffee.ehow. [2] http://www. coffee. so many small business people capitalize on this by opening up coffee shops. Even gas stations sell coffee to truckers and other travelers on the road. education. Coffee is the most popular and widely used herb around. Read more: About Coffee Shop Trends | eHow. so you will certainly notice that the coffee shop trends are very popular in Brazil. you will also see many mom-and-pop coffee shops or small coffee shop stands.com/ma/enwiki/en/Tacloban_City#Official_Seal_of_The_Cit y_of_Tacloban Philippine Agribusiness Report Q4 2010 9 • . 1. “The Gross Domestic product (GDP) for 2004 was $84. The per capita gross domestic product was $976.

com/philippines-agribusiness-report-q-r2111912. and the LIKE. People nowadays are leading a fast paced life so they have lesser time devoted to eating. http://www.199. Government and private investment will help increase yields as new trees mature over the forecast period.8mn bags. Demographic Profile During the 2007 population census. http://www.106 persons per square kilometer or 11 persons per hectare. the country will not reach the government's planed selfsufficiency in the next few years. Jose Karlos. Using the same method. Starzrocks.tacloban.73 percent. Analysis of Competitors The current competitors of business venture in Tacloban City are classified into two: The direct competitors which includes all coffee shop within the tacloban area that offers unique concept and service. Tacloban City has an actual total populationcount of 217. With an average annual population growth rate of 2. Despite the growth. Indirect competitors includes food establishments that offers coffee. This includes. it is projected that for the year 2008. Tacloban’ City’s population would be 223.415 for 2008. 3. Dunken Donuts and Mister Donuts.Coffee Production Growth to 2013/14: 13% to 7. Total Number of Families counts at 47.014 with an Average Household Size of 5. Tacloban City has a proportionate total household of 43.1. Soocio-cultural Condition The socio-cultural condition and urbanization affects the food and recreation preference of individual as more people become preoccupied with their job that also leads to a changing lifestyle.gov. Bo’s Coffee. Tacloban City has a population density of 1. relaxation and food and beverage.130 and based on this projected population.htm 2.pr-inside. Libro: Books and coffee. food preparation and long out-of-town vacation so they tend to find within the downtown establishments that offers recreation.ph/ C. The disaggregated population results of the 2007 census is yet to be released as of this documentation but using ratio and proportion using the 2000 census as baseline data. 10 .

and cakes. B. In addition. the business venture will also offer same of Region’s delicacies like “moron” and “binagol” just to add twist to the venture. We will also market premium items and souvenirs such as mugs and T-shirts with imprinted tourist attractions of Eastern Visayas and other premium items like key chains. Products R8 Express: Coffee and T. coin purse. teas and other custom drinks at a very reasonable price.IV. Services We will be having the following service:  Opens 7 days a week (from 7:00am-9:00 pm)  Casual dining atmosphere  Internet connection/ WIFI  Dine in and take out  Free seating  Guests or customers will feels at home C. Seasonally. The desired size is 80 square meter. Description of Venture A. etc. We will also sell fresh-baked pastries and other confections like cookies. will be renting a space within the downtown area feasible to our target market. will be offering high quality coffee. the business will add specialty and customized product during peal seasons. with a seating capacity of 30 pax. Size of Business R8 Express: Coffee and T. 11 . hot and cold beverages. brownies.

D.800 Total PERSONNEL        General Manager –Owner Financial Manager – Owner Marketing Manager – Owner Store Attendant – Employee Barista – Employee Cashier – Employee Service Crew – Employee 12 . Office Equipment and Personnel OFFICE EQUIPMENT Items Computer Fax/Printer Telephone File Cabinet Tables Chairs Ceiling Fan Office supplies Quantity 1 set 1 1 2 1 3 1 40000 2500 3500 3000 500 100 3000 Unit Cost 40000 2500 3500 6000 500 300 3000 2000 P57.

V. Production Plan A. Production Process 13 .

A well designed receiving process is important to cost and quality control and therefore warrants careful planning and implementation. 14 . In storing f & b items required a certain degree of temperature and should be well ventilated.  Production/Preparation.proper storing of the purchased item maintains the quality of the product.  Serving.  Purchasing – getting the desired product of the right quality.  Storing.  Receiving.is a print at which the purchaser inspects products and tasks legal possession of the product ordered.dividing the product into how many serving ensuring that each portion are consistent and in quality. at the right quantity.serving the finish product to our customers based on their orders. Budgeting – is a list of all planned expenses and revenue.  Controlling.concerned with the management measure with current performance.this should be done properly and accordingly to produce the desired product that is high quality and satisfying to customers. right price and time from the right and reliable sources or suppliers.  Portioning. It is plan from saving and spending to what is going to be purchased in working our product.

Machinery and Equipment Items Espresso Machine Coffee Maker Coffee Grinder Coffee/Tea Pots Blender Refrigerator Oven with Burner Air conditioner Cash Register Microwave Toaster Mixer Quantity 1 1 1 3 2 1 1 2 1 2 1 1 Unit Cost 65000 25000 10000 2000 2500 21000 30000 8000 6000 5500 1000 2500 TOTAL 65000 25000 8000 6000 5000 21000 30000 16000 6000 11000 1000 2500 P195.C.500.00 15 .

online/internet advertisement. Distribution The customers can dine at the coffee shop or have a take out. Marketing Plan A. The product will consistently be priced lower than the competitors so as to improve its market share. For pastries and cakes the price range is P20-P50. tarpaulins. Souvenirs and other items will depend upon purchase from suppliers. radio advertisement. Promotion We will develop an intensive marketing effort through promotions and advertising strategies to attract attention and to create awareness. Specialty products that are only unique in our venture will be priced higher. Product price range from P20-P100 for coffee and other beverage. Among the strategies are signage. and a 20% mark-up is utilized B. The price . Discount coupons and promos like offering a “Frequent drinkers club” discount to our best customers. 16 . flyers and stickers. For coffee and other beverage product will be made upon order.VI. Product will be displayed at the counter section with their specific price (for pastries and souvenir items). C. Pricing will depend on the variable cost of each product. Pricing Pricing strategy is based on the quality and how much ingredients is being used per product. size and the picture of the product are on the menu.

200 130*360 =46.400 10% 20 21 22 23 24 10% 10 11 12 13 14 10% 35 39 43 47 51 10% 35 39 43 47 51 Growth 2013 2014 2015 2016 2017 17 .800 140*360 =50.600 120*360 =43.000 110*360 =39.D. Target Market Forecast Potential Custome rs Students (35%) Young Professio nals (35%) Travellers (10%) First timers (20%) Total/year 10% 100*360 =36.

flyers and discount coupon will be the usual promotional activities for those plays major role in promotions. 18 .The pricing of the product will be followed by the business aggressively.Once the product would be able to gain a market share. Controls a) Product Control – The making of the product will be monitored and the avoidance of use of substitute ingredient will be implemented to assure that the product will maintain its standard tasks. Tarpaulins. advertisements would be lessened. b) Price Control. nutritional value and quality.E. c) Promotional Control. Product’s price will not go lower than the average cost to ensure profitability.

VII. Form of Ownership A type of business entity in which partners (owners) share with each other the profit or losses of the business undertaking in which all have invested. Organizational Structure Manager Finance Manager Cashier Store Supervisor Marketing Manager Barista Service Crew Baker 19 . Partnership’s are often favoured over corporations for taxation purposes. as the partnership structured does not generally incur a tax on profit before it is distributed to the partners. B. Organizational Plan A.

 Responsible for the design and distribution of all direct marketing materials. taxes and any other matter related to sales and revenue budgets. beverage services and health safety  Prepares the working schedule of all personnel including their shift and day off. inventory. equipment. payroll. planning/creating and execution of marketing and promotional activities.  Ensure that the coffee shop operate efficiently and profitably while maintaining their reputation  Responsible of maintain of high standards of food. d) Store Supervisor  Makes decision regarding hiring. b) Marketing Manager  Responsible in the research. payroll and other basic operational processes. sanitation and safety standards 20 . evaluation and termination of employees or makes related recommendations. monitoring sales and establish strategies for creating awareness of the business.  Monitors work methods. accountings. standards of performance. Roles & Responsibilities of Members of Organization a) Manager  Manage the facilities. c) Financial Manager  Responsible for finance. billing.C.

000 19. Compensation: Employees Store attendant Barista Baker Service Crew No.500 9.000 14. presentation and service to the customers e) Cashier  Responsible on the billing of customers  Coordinates activities of employees engaged in receiving money and keeping records of transactions  Works with financial manager to handle records and cash correctly f) Barista  Ensure the quality of the coffee and other complimentary and supplementary ingredients  Prepares coffee orders from the customers –coordinates with the store supervisor g) Baker  Ensure the quality of pastries  Maintains proper sanitation of the kitchen h) Service Crew  Attends/Welcome/Entertain customers and responsible in taking their orders  Clears table and do dish washing ALSO.000 9.500 21 Total 15.000 7. Maintains proper security of units  Ensure quality food preparation.000 9.000 . of Employees 1 2 1 2 Salar/month 15.

22 . It will add awareness to our business as well as help in our operation for this we can be used for production and promotion.00 VIII.000 9. B.Cashier 1 9. New Technologies New Technology can improve the business operations for most of the people are techno savvy.000. With the growing number of food and beverage establishments.000 P798. Evaluate the Weakness of Business Although th business venture has a different concept among other coffee shop. the emergence of more competitive brand may cause the decline of R8 Express: Coffee & T. Assessment of Risk A. stiff competition still high.000 MONTHLY: Annual Salaries Expense P66.

Financial Objectives • • Increase earnings by 15% annually Stable earnings during recessionary periods B.IX. Start-up Expense/Pre-operating Expense 23 . Financial Plan A.

000 24 (Good for 3 months) .000/mos) Premises Remodelling Workers Compensation Other Startup Expense TOTAL 105.000 3.Start-up Expense/ Pre-operating Expense Legal Expense Business Registration Marketing Expenses Signage Tarpaulins Stickers/Flyers Radio Advertisements OTHER TOTAL Prepaid Rent Expense One month advance.000 (GOOD for 2 months) -Cash Reserves 100.000 5.000 P5. one month deposit(35.000 15.500/month P133.000 19.000 Required Start-up asset • Operating Capital -Payroll 66.000 150.000/month P300.000 43.000 10.000 P352.000 5.000 30.000 10.

300 PROJECTED INCOME STATEMENT R8 EXPRESS: COFFEE AND T. Glass & Silverwares Furniture’s and Fixtures Employees Uniform & Linens Other Miscellaneous Expense TOTAL P438.905.800 P50.000 P150.000 P30.874.000 (2.178.960.000 (2.4 3.000 2014 3.464.000 P150.782.TOTAL • Start-up Inventory -Coffee Beans -Pastries and Confectionaries -Beverages --Souvenirs -Office Supplies TOTAL • • • • • • Machinery and Equipment Office Equipment China.291.960.000 P1.476 2017 5.458.296) 2.683.374.395.600.9 .000 P20.000 P3.620.000 P130.720 (2.5) 2.800) 1.878.000 P195.980.000 P160.000) 1.200 25 2016 4.000 P50.500 P57.000) 1.000 P453.356. Projected Income Statement 2013 Sales Less: Cost of Sales Gross: Profit 3.000 2015 (1.

050) (30.9 (90.000) 674.739 1.77) P681.000) 30.468.4 (15.5 (100.000) (50.000) (420.000) P1.000) (420.000) (12.607.212.135.000) (798.519.000) (54.000) (36.135.000) 471.000) (3.5 77.162.5 Operating Profit/loss Less: Interest Expense Net income/loss before taxes Less: Taxes (30%) Net Income(loss) after tax P22.000) (45.5) (30.000) (12.000) (798.000) (96.050) (25.8 (90.940) (463.34) P225.000) P1.731.2 561.000) (798.Less: Operating Expenses Permit & Licenses Salaries & Wages Rent Expense Marketing Expense Maintenance Depreciation Expense Miscellaneous Expense Remodelling Other Expense (5.8 (25.000) (15.000) 974.000) (821.6 764.54) P330.274.98 (292.9 (3.4 (90.42) P471.940.5 10.000) 321.468.000) (41.000) (15.2 411.64) (35.370.000 P1.8 (20.000) P1.000) (47.394.000) (15.482.000) ( (43.940) (463.2) (30.000) (31.000) 22.2) ( ( 26 .000) (821.607.392.000) (3.731.431.064.000) (441.46 ( (150.000 P1.398.837.06) (20.26 (202.392.

000 2.600.000 2015 4.000 450.430.980.000 3.960.000 27 4.000 2.720 2017 5.395.464.178.000 3.005.000 2016 4.356.291.000 3.356.960.296 5.000 30.464.878.4 .4 45.000 2.000 1.000 2.000 1.166. Projected Cash Flow Preoperating Sales Bank Loan Partner’s Equity Total Inflow Supplies Merchandise 930.000 2014 3.878.720 40.R8 Express: Coffee and T.000 50.166.000 83.5 2013 3.600.800 4.683.500.

34 3.000 420.000 798.431.000 420.000 30.000 798.898.000 35.050 30.517.58 2.2 7 683.000 202.700 1.260.Inventory Furniture & Fixtures Machinery & equipment License and permit Salaries and expense Rent Expense Mktg.780.774.000 15.385.217.77 4.000 90.4 2 493.000 90.300 5.388.1 2 821.5 4 341.42 4.000 212.643.071.000 3.8 3 28 .482.715.000 5.000 3.7 82.000 141.000 43.265.3 4 342.000 292.173.643. Cash end 1.700s 786.70-0 1.617.54 4.014.66 1.000 1.582.000 3.522.46 1.000 96.088.000 100.000 90.6 6 2.000 45.519.700 130.6 6 798.13 2.000 441.774.644.7 3.300 1.680.700 3.000 90.000 253.643.217.240.000 35.000 15.940 463.000 15.000 20.071.000 12.546.000 50.482.582.088.940 463. Expense Maintenance Expense Miscellaneous expense Interest expense Tax expense Total Cash out flow Net In flow Cash Beg.898.050 25.431.000 30.000 12.319.1 2 2.

000 253.162.5 1.837.997 Less: Accumulated Depreciation . Projected Balance Sheet 2013 Assets Current Assets Cash Inventories Total Non-current assets Furniture and Fixtures Machinery and Equipment 130.700 355.643.998.000 383.5) 29 328.000 (54.R8 Express: Coffee and T.297 1.

Appendix A.834. 407.000 30. Glass and Silverware Uniforms and Licenses Total Total Assets Liabilities Long Term Debt.5 930.China.5 P2.837. 407.000 P1. 477.5 P2.000 408. Letters 30 .834.834. Net Capital Owner’s Equity Total Liability and Capital 50.5 X.

2011 31 .March 7.

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