Bean&Brew Cafe

BUSINESS PROPOSAL

PROPOSED BY:
Kyla Andrea Liberato
Christian Mark Tallo
Majani Prado
Breanna De Vibas
Arzemae Guihapon

CONTACT INFORMATION: beanandbrewcafe@gmail.com

DATE: May 16, 2022
HISTORY AND BACKGROUND OF THE BUSINESS IDEA

A. Business name and Location

Bean&Brew Cafe
Centro Sur, Pandan, Antique

B. Description of the Business

Bean&Brew Cafe’ (also known as “BBC”) will be located at Centro Sur, Pandan,
Antique and will be operated by Christian Tallo, Arzemae Guihapon, Majani
Prado, Kyla Liberato, and Breanna Vibas. It is a type of Book Cafe’ Shop where
book lovers and other interested people go to read books, rent books, have
coffee, and hold conversations as well as, providing an ambiance that
encourages relaxation. We focused on conveniently serving great coffee drinks
including Cappuccino, Latte, Mocha, Iced Coffee, Hot Chocolate, Americano,
Frappe, Espresso, and Takeaway Coffees. Additionally, we have a pastry
selection that includes sweet and buttery like doughnuts, Croissants,
Cupcakes, Macarons, Muffins, and Cookies. The Bean&Brew Cafe’ will offer a
variety of choices to the customers and will focus on projecting a relaxed
atmosphere. It aims to provide a substantial income and to create a business
and working environment where both the customers and employees are
treated with dignity and respect. This place will not only be have bittersweet
flavours, but will also present the world of books you can easily get lost in!

C. Vision of the Business

Our vision is to create a warm, relaxing and inviting community space for book
and coffee lovers of all people. To provide delicious food and beverages and
excellent, reliable services to our customers. To earn the trust of our
customers, employees, and our community and to contribute to good
development and prosperity. To inspire and connect people.

D. Why did we decide to open Bean&Brew Cafe?

We planned to put up this Book Cafe' Shop business because it never goes out
of style. I think it’s safe to say that coffee’s massive popularity is here to stay.
While certain cafe gimmicks or trends such as outrageously flavoured
frappuccinos or nitro cold brew might come and go, plain old coffee has
secured its spot as part of the culture of almost every part of the world.
Therefore, starting a coffee shop isn’t like starting a frozen yoghourt joint or
bubble tea bar. These new and stylish foods might do a booming business at
first that dies out in a year or two when people move on to the next big thing.
In the coffee world, there will always be a market for your product, which is
something not every business can boast about. We won't only offer different
drinks and pastries but we will also share amazing and educational books. We
want to bring back the popularity of books to the new generation.

GOALS

A.Long term-goal
Long-Term Goals:
Open three new branches throughout Antique
Increase overall brand awareness
Increase the total income of the cafe by 10% over the next two years
Reduce production expenses by 5% over the next three years

B. Future plans for expansion

We plan to develop new products. One of the most obvious ways to expand
business is to add new products to our mix. To do this, we need to know which
products or services our customers want from us, and how much they’d be
willing to pay for them. As enterprising business owners, we should always
evaluate the market and look for new opportunities—but if we need some help
figuring out what to sell next, we can start with market research. We can also
expand our business by offering delivery not only to our municipality but also
to the neighbouring municipalities.

MANAGEMENT SECTION

Management and Staffing

A.List of employees and its responsibilities

1. BARISTA - Is responsible for taking customer orders and
payments. They also clean and sanitize their work areas, seating
areas and equipment/tools.
 2. PASTRY CHEF - Supply your coffee shop with fresh-made pastries
and bread.
3. CAFE SERVER - in charge of preparing tables with special
attention to sanitation and order. Present restaurant menus and
help customers select food/beverages. Take and serve orders.

B. Business hours operation

We will start to operate at exactly 6:00 am and will open the shop at 7:00 am
until 9:00 pm.
To accommodate early morning commuters and the late night studiers .

C. How will the business operate?

The day-to-day operations of our Brew&Bean Cafe’ business includes
providing the best customer service and making an effort to create a unique
haven where customers can socialize with others in a comfortable as well as a
relaxing atmosphere. We believe that the purpose of a “BBC” is to allow those in
our community to have a pleasant time and we commit to provide a variety of
entertainment choices to our regular and new customers. The premises we
have chosen is at Centro Sur, Pandan, Antique which is an indoor space in a
modern, well-maintained building in an ideal location. The staffs would walk
around towards customers to offer books,novels and journals and ensure that
they are satisfied with the food and services.
Additionally, owners and staff will share all regular duties including taking
orders, making coffees, clearing tables, restocking, dishwashing, maintaining
washroom facilities, etc. as well as, to increase employee loyalty, a bonus or
profit-sharing system will be put in place. It will likely need quite a bit of
equipment like coffee makers, espresso machines, coffee and espresso
grinders, cooking equipment, blenders, storage and shelving, refrigeration and
freezers, and coffee shop point of scale (POS) and other types of equipment
that are needed.
Supplies, on the other hand, are variable items. The typical coffee shop
supplies that will be needed include coffee, disposable cups, cake boxes,
disposable bags, cleaning supplies, straws and stirrers, Flavoring syrups, etc.
that will be supplied daily. To this end, a big part of our operational plan is to
continually attract customers through polite greetings and promptness while
at the same time provide our customers with the finest entertainment at a
price they can afford which will bring new customers through our doors. We
hope to achieve great success in using this strategy, and we intend to fully
implement this strategy in the future.

D. List of employee to fill

● Barista
● Pastry chef
● Cafe server
E. Job position and salaries
Barista - They create and serve hot or cold beverages, often tailored to the
customer's preferences. They are responsible for taking customer orders and
payments. They also clean and sanitize their work areas, seating areas and
equipment/tools. Monthly Salary is Php 14,000.00.

Pastry Chef - Preparing ingredients and handling baking and other kitchen
equipment. Creating pastries, baked goods, and confections, by following a set
recipe. Developing new recipes for seasonal menus. Decorating pastries and
desserts to ensure beautiful and tasteful presentation. Monthly Salary is Php
22,000.00.

Cafe Server - Servers greet customers, take food and drink orders, ensure
guests are satisfied throughout their meal and clear dishes and glasses when
possible. Monthly salary is Php 14,000.00

F. Benefits offered to employees

We will offer sick leaves, vacation as well as flexible alternative arrangements.

G. Belief system that shape the management

The belief systems that shape our management and staffing style are integrity,
teamwork, customer focus, accountability and innovation.These belief systems
are necessary in making our business prosper and improve our customer
service because it helps our staffs realize the importance of unity and
cooperation in managing the business.In addition, it also serves as a guideline
for staffs to follow in order achieve high customer satisfaction and great
business performance.

MARKETING SECTION

PRODUCTS AND SERVICE

A.Description of products and services

The Bean&Brew Cafe’ is an establishment that primarily serves coffee of
various types of quality hot and cold beverage related supplies, including
cappuccino, latte, mocha, hot chocolate, espresso, americano, iced coffee,
frappe, takeaway coffee, fresh baked goods, and assorted paper supplies, and
the different types of books. Our services will include barista, pastry chef, cafe’
server, effective promotional programs, distribution of reading materials, as
well as information on the latest market trends in the coffee or specialty
beverage industry. People go to coffee shops to spend time with friends, enjoy
the tranquillity of the third space, or simply give themselves an indulgent
break. To meet their wants and needs we will give them good quality not only of
our products but also our services.

PRODUCT DESCRIPTION
The Bean&Brew Cafe’ will carry a variety of quality products that will enable us
to provide full service. Our underlying philosophy in selecting products is to
choose lines that will bring consistent quality, competitive prices, and product
satisfaction to our customers. It will make these same products available
through our high quality, full service, and bringing these products directly at a
competitive price.

SERVICE DESCRIPTION
An important component of our business is not just our products, but our
service. In addition to our full service, the following are other important service
elements that we will offer to our customers:
* Ideas to help our customers increase sales through menu development,
creative promotions, and much more.
* Reading materials are available to the customers, such as books that are old
and new, which are distributed throughout the cafe’ on shelves lining the wall.
* Customers approach the counter to make their order, which they have the
choice to eat in or to takeaway.
* Creating new and exciting desserts to renew our menus and engage the
interest of customers
* Adhering to all food safety regulations and quality controls.

B. Current trends affecting coffee shop industry

The sheer number of milk tea fans keep growing as milk tea shops keep
popping up with their extensive menus that ensure that anyone can find their
exact, perfect cup. Nowadays, it's not surprising to see someone you know
drinking milk tea at least once a week, lining up for hours, or having it
delivered to their doorstep. Filipinos have always had a taste for tea. Milk tea
shops began to compete with coffee shops. Milk tea shops, after all, carried a
similar ambience, a casual space that allowed visitors to stay for long periods
of time-perfect for the student with a paper to finish or friends to hang out
with. Over the years, coffee had always been the preferred drink among teens
and adults who know it is served not only as the traditional hot, brewed coffee
but also a wide variety of choices like cold coffee drinks to cater their needs.
But when milk tea appeared, a much healthier version of the cold drink,
competition between the two famous beverage grew wide as milk tea shops
started to mushroom nationwide.

C.Unique features of the company/product

The unique features of our Bean & Brew Cafe is that it offers a variety of
different flavors and types of coffee and food and it also provides meal
combos and discounts. As for book lovers,we offer them free books,journals
and novels to read while they are enjoying their coffee. We also allow our
customers to rent books if they want to borrow reading materials and read it
at home.
Meanwhile,for those people who are not fond of reading books,we offer them
puzzles and board games that can be played with friends and family
members.With these offers, we assure that our customers will be as
comfortable and satisfied as possible and that they will be relaxed and
entertained in our establishment.

D.Location of the business (advantages/disadvantages)

Centru Sur, Pandan, Antique will be the location of the business.

Advantages
● Big population
● More possible customers
● Lower overhead expenses
● Financing is more accessible

Disadvantages
● More competitors
● High rent

MARKETING

A.Target market
The target market of Bean & Brew Cafe' is of all ages and genders.Students or
workers who need a place to discuss projects or just chat are also part of our
target market.Whether it may be male or female, old or young may it be for a
coffee drinker or coffee lover, someone who loves to play board and puzzle
games or book lovers,they are all welcome to enter and experience the
services our cafe offers.
B.Competitors (advantages/disadvantages)
Business Competitors:
● DUNKIN DONUTS
● 7-ELEVEN
● BREAD & BUTTER
● FRANKS

"DUNKIN DONUTS"
Advantages:
-Brand authority in coffee and doughnut industry
-Recognized worldwide
-Focuses in the middle class
-Offers low cost products while maintaining quality
Disadvantages:
-Financial barrier to entry
-Limited creativity

"7-ELEVEN"
Advantages:
-Provides stocked,turnkey operation
-Offers a variety of goods ranging from provisions to sanitary ware
Disadvantages:
-Often targeted by local criminal element
-Offers 24/7 operational hours which is too long
-Cleaning and maintenance are frequent requirement

"BREAD & BUTTER"

Advantages:
-Has control on the products they provide and their quantity
-Offers a variety of different pastries and goods
-Focuses on a particular product line to specialize in to perfect its recipe and
manufacturing
Disadvantages:
-Cost of ingredients is high which results in high selling price
-Pastries and goods often have short shelf life or quickly expires

MILK TEA SHOPS

Advantages:
-Offers a diverse selection of milk tea flavors
-Is popular among young people or millennials
Disadvantages:
-Selling price is too high
-Focuses on the wants and preferences of younger generation customers
C.Positioning the business to compete
The Bean&Brew Cafe’ will position itself as a unique Book Café Shop that not
only offers the best-tasting coffee, pastries, and free and paid book promotion
service but also provides a home-like, cozy and comfortable environment,
which established corporate establishments lack. We will cater to customers'
bodies and minds, which will help us grow our market share in this competitive
market. Hence, the “BBC” will be close to its target market. To differentiate our
Book Café Shop, we will embark upon a unique physical appearance, provide
free reading materials and we will be providing a Café for customers in which
they can relax and escape from the daily pressures of work, and problems and
offers a place to converse with mates over a cup of coffee. Furthermore, it will
gain its competitive advantage in the market by the quality of its products,
warm customer service provided by our staffs and the uniqueness of our
facilities, which offers an escape from the everyday rustics. Additionally, the
main promotional strategy employed by the business is the word of its satisfied
customers and the various discounts the business will offer.

D. Ways to promote the business

Three Ways to Promote our Business
● Offer customers half-priced refills(we offer half the price for customers
who wants a refill for the second time only)
● Offer combo treats(we give a free cup of coffee which is the customers
choice in every dozen of pastry ordered)
● Create a page to endorse business in social media and gain publicity(we
create a page to post the products we offer to attract more possible
customers in social media such as Facebook and Instagram)

E.Description of how Filipino value system affects the attitude of your target
customers

The Filipino values can be traced to our very own Filipino culture. It can be
inherently good or bad, it is a collective term for the shared assumptions and
beliefs of Filipinos which are the basis of their response to facts, events, and
situations. Filipino values serve as Filipinos’ lenses on how they see things
around them.

Suki System may develop between two people who agree to become a regular
customers. It is a process wherein a certain business is building and
maintaining profitable customer relationships using delivering superior
customer value and satisfaction. Then once the customers meet their
satisfaction with a certain business it is more likely that they will become loyal
customers and they will start patronizing the brand. That’s why customer
loyalty became the key factor in relationships so, in this case, the customer will
be motivated to continue to support the business and patronize its products.

The debt of gratitude is a relationship-sustaining emotion, with an important

impact on maintaining trust in a relationship. Thus, customers in exchange
relationships with higher levels of gratitude-based reciprocal behaviors should
have higher levels of trust. Customers’ feelings of gratitude and
gratitude-based reciprocal behaviors positively affect customer trust.

Hospitality is how to treat and provide excellent service by welcoming the

customers to create a good reputation and relationship since, it plays a
fundamental role to increase or decrease the volume of sales, popularity, and
production growth in a business.

Fellowship means to accompany someone, it is used to maintain good

relations with customers because it implies closeness that would create
sustainable growth for the business.

It can greatly affect our target market because it improves marketing

strategies and builds brand awareness and loyalty, and even leads to better
products and services. Plus, a target market is potential buyers of our
products and services, which makes it easier for brands to reach customers in
an authentic, more meaningful, and personal way.

FINANCE SECTION

A.Start up cost (Estimation)

Equipments - Php 75,000.00
Materials - Php 30,000.00
Rent - Php 3,000.00
Interior design - Php 7,000.00
Other expenses - Php 10,000.00

Total: Php 125,000.00

B.Monthly operation cost (Estimation)

Electricity bill- 1,500.00
Water bill - 500.00
Rent- 3,000.00
Payroll-50,000.00
Supplies-10,000.00

Total: Php 69,500.00

C.Sales needed in order to break even the first year
Break-Even For 1st Year Cost:
Php 834,000
Solution:
Break-Even MEANS equal

Monthly Operation Cost (MOC) =69,500

Annual Operation Cost= (MOC) x 12 (months a year)
Annual Operation Cost=834,000 pesos

( Our business needs a sale of 834,000 pesos in order to achieve a break-even

for the first year.)

D.Risks that may encounter

In business, there are many risks involved in the process such as accidents,
related to employees, poor customer service, and undercapitalization. Luckily,
all of these are covered, which is why it's good to take the time to think through
them.

E.Plan on how to minimize these risks

Minimize doing everything unnecessary as much as possible to reduce the
impact of risk towards zero. Accidents are everywhere, we don't know what will
happen next so to ensure we need to be careful, apply safety clothing, and
clean the surroundings to prevent slipping and falling. Related to a business
situation we can minimize the risk by ensuring that the employees are
well-trained and experience more. Applying in a good manner and prioritizing
the customer. Good communication is important. On hiring the staff read their
resume to see if they are qualified for that work, and observe and interview
them if they suit and do good work for the business. To prevent poor staffing
and training staff. To avoid undercapitalization, choose an industry you know.
Do not rush into a business in which you have little or no experience. Have a
thorough business plan. Inform potential investors and lenders about your
business and entice them to invest.

PRODUCTION SECTION
A.Production area (lay out) of Bean&Brew Cafe

B.Equipments needed
● Sinks
● Dishwasher
● Scales
● Thermometers
● Measuring spoons and timers
● Sugar pourers
● Condiment organizers
● Frothing pitchers
● Knock boxes
● Tampers
● Freezers
● Toaster
● Ovens
● Commercial blenders
● Industrial grinder
● Drip coffee maker
● Commercial espresso machine

C.Materials needed
● Coffee beans
● Disposable cup
● Paper Hot Cups and Lids
● Cup sleeves
● Cup carriers
● Coffee to go boxes
● Cake boxes
● Disposable bags
● Paper bags
● Milk and creamer
● Straws and stirrers
● Napkins
● Coffee filters
● Cleaning supplies
● Sugar and other sweeteners
● Flavouring syrups
● Mugs and espresso cups
● Silverware
● Plates