SENIOR HIGH SCHOOL DEPARTMENT

A Feasibility Study of Establishing A Coffee Shop Along Dalupan St.

Sampaloc Manila

Celestino, She-Ann Mae

Decipar, Giselle Ann Torres

Lobo, Luisa Battung

Navarro, Ma. Angelina

12 – Patience ABM Strand

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CHAPTER I

INTRODUCTION

Background of the study

Failure is an issue with small businesses globally. (Hider & Lussier, 2016). Coffee Shop

owners find it increasingly difficult to remain in business because of intense competition and the

vagaries of customer preferences (Mohammad & Lee, 2015).

Business Failure is the termination of participation in an undertaking because

it has not met a minimum threshold for economic survival envisaged by the business. (Fe, H.,

Singh, S., and Krogh, V., 2017). There is no documentation from the government agencies

unique to the closure of coffee shops. However, Starbucks, the largest coffee shop company, has

closed 443 stores throughout the company history: 240 stores in 2009, 42 in 2010, and 161 in

2011 (Knoema, 2016) Scholars have asked whether a marketing plan incorporating an element of

personal branding, perseverance, practice, and coproduction, may assist owner-managers in

surviving in small businesses (Resnick, Cheng, Simpson, & Lourenço, 2016).

Business failure is always a part of establishing a business. In the field of coffee shops, no one

can really expect whether the business will succeed right away. Even the largest company has

closed hundreds of stores because even if it is a famous coffee shop, if there's no right location

for the owner to establish it, there's no guarantee that it will be successful. In short, choosing the

right location will be a major factor in establishing a coffee shop.

Food and Beverages business is one of the most and profitable business with a high potential

expansion and growth especially if the owner have already the knowledge to run a business.

According to states in Canada, the food beverages sector comprises “establishments primarily

engaged in preparing meals, snacks, and beverages, to customer order, for the immediate

consumption on and off the premises.” (Government of Canada, 2012).

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In the hospitality industry, satisfied customers are the top priority. To put it another way, to

meet the needs of consumers. The food and beverage industry developed from quite modest

origins. While people were out of their homes and engaged in various activities, they often felt

that they needed or wanted to consume something to eat or drink. Others were requested to

provide food and beverages in order to satisfy this demand, which was filled. The variety of

products available for purchase in the food and beverage industry has grown in tandem with

people's expanding interests.

According to Beacan (2017) Coffee shop is an establishment which primarily serves prepared

coffee or other hot and cold beverages. It partakes some of the idea of a bar, and some of the

characteristics of a restaurant, but totally unlike from a cafeteria. Coffee houses focus on

providing coffee and tea as well as light snacks.

In establishing a coffee shop, it will be beneficial to the students, professionals, and workers.

Coffee shop aims to create relaxed and peaceful, free from stress, and mostly where people and

want to drink and rest. It serves as a place that students can conduct a meeting, a group study to

do their assignment while relaxing and drinking a cup of coffee.

Nowadays, a lot of coffee shops are being established around Dalupan St., Sampaloc, Manila.

There is huge competition in this kind of business. Moreover, a coffee shop is one of the easiest

to establish because there’s no need to occupy an extensive space. But again, finding location

might be hard because there’s a need to consider the population of every location where you

want to establish your coffee shop business.

Many of us are left wondering about how these coffee shop owners established their coffee

shop. What motivates them to build one? And the challenged they faced as they started their very

own business. It is not easy, that’s for sure. But it would be very much helpful if we hear their

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experiences from the start, to feed everyone’s curiosity, and as well as help the students who

aspire to establish their own coffee shop one day.

There are a lot of people who want to establish a business like a coffee shop, and this study

will tackle their success indicators and their preparation for putting up a business like this. This

research study will surely help tons of people. (beacan, 2017)

Statement of the Problem

General Question: What are the various challenges that current coffee shop owners have faced

while establishing their business, as well as the perspectives of students who are interested in

opening their own coffee shop in the future?

Research Questions: What are the feasibility and viability of the proposed coffee shop business

in terms of:

A. Marketing Aspect

- Marketing strategy used to promote the business

- choice of location

- choice of menu/selling products

B. Technical Aspect

- Product Supplier

- Process flow of the business

C. Financial Aspect

- Annual Profit

- Amount of Capital used to establish a coffee shop

- the salary of the owner’s employees

D. Management Aspect

- Number of employees

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- Standard in hiring staff and employees

Significance of the Study

The researchers aim that this feasibility study will be useful and valuable to the following

individuals:

1. For current coffee shop owners, this study can be used as a reference in dealing with

challenges that may arise along the way by validating various aspects of the business.

2. For future coffee shop owners, they can infer from this study how a coffee shop

business operates and what potential challenges they may encounter in establishing the

coffee shop. Furthermore, business owners’ different personal experiences may enable

them in preparing for setting expectations for all aspects of the business.

3. For the researchers, this study will broaden their knowledge in starting a business,

provide experience in gathering data from specific respondents, and serve as a reference

to their future personal interests in starting their own business.

4. For the school, the outcome of this research is expected to be a valuable resource for

future business students conducting their own research. This will also serve as a

reference for other researchers who want to expand or conduct additional research on

this topic.

Conceptual Framework

INPUT PROCESS OUTPUT

1. Listing of all coffee

a.) Future coffee shop ● Evaluate the
shops along Dalupan St.
owners challenges that the
Sampaloc, Manila.
b.) Current coffee shop coffee shop's
2. Conduct or gathering of
owners owners faced when
data thru a survey
c.) Marketing Aspect establishing their
questionnaire and an
- Marketing strategy used coffee shops.

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to promote the business informal interview. ● Evaluate the

- Choice of location 3. Validate the responses challenges that the

- Choice of menu/selling of the students and the future coffee shop

products coffee shop owners. owners may

d.) Technical Aspect 4. Statistical Analysis of encounter when

- Product Supplier Data establishing their

- Process flow of the coffee shop.

business

e.) Financial Aspect

- Annual Profit

- Amount of Capital used

to establish a coffee shop

- The salary of the owner’s

employees

f.) Management Aspect

- Number of employees

- Standard in hiring staff

and employees

Scope and Delimitation

Scope

The goal of this study is to collect information on the difficulties that coffee shop owners

encountered when they first opened their businesses, as well as the varying viewpoints of

students who are interested in opening their own coffee shop in the future, through interviews and

the use of questionnaire. The respondents on this feasibility study are 5 current coffee shop

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owners, particularly on Dalupan St. Sampaloc, Manila, and 10 Mary Chiles College Students who

aspire to be coffee shop owners. The interview will take 15 to 30 minutes to complete and will

take place within the year.

Delimitation

The specific respondents chosen from a single location are one of the limitations of the study.

There may be several coffee shops in that location, but their willingness to participate in the study

may pose a challenge. Additionally, finding students who want to open their own coffee shop may

take some time, and the intended number of respondents for the study may be lowered as a

result.

Definition of Terms

1. Coffee Shop Owners - These are the coffee shop owners along Dalupan St., Sampaloc,

Manila.

2. Financial Aspect – Is the outcome of all other aspects such as Marketing, Technical,

and Management. This covers financial loss and gain of the business.

3. Management Aspect – Involves the organizational structure of the business, target

headcounts for manpower and their duties and responsibilities.

4. Marketing Aspect – Includes the description of the industry, competition, target market

and location, as well as the marketing strategy.

5. Senior High School Students – These are the students who wants to establish their

coffee shop in the future.

6. Technical Aspect – Covers the operational flow of the business, discussion of the

product, equipment used as well as the process making.

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