ESTABLISHMENT OF SENERE CAFÉ IN NORTHERN JUNOB,

DUMAGUETE CITY, NEGROS ORIENTAL

A Business Plan

Presented to

The College of Business Administration

Negros Oriental State University

Dumaguete City

In partial fulfillment of

The requirements for the Course

HRM 401 - Entrepreneurial Management

By

Alyanna M. Villamil

Betty Mae Bulay

Ceind Mayano

Emelynne Villarojo

Juhnrey Esic

Marry Narrize Joy Morqueda

EXECUTIVE SUMMARY

I. BACKGROUND

A. INTRODUCTION TO BUSINESS

Food is very important because it provides nutrients in our body. (Wendell Berry,
1990), eating good food especially with family and friends is one of the pleasures of life.
Nowadays eating out has become a way of life for most people, because they are busy
with work and other things. People find it less stressful to eat and drink out because they
do not have to worry about cooking which can be time consuming to an already busy
schedule. The researchers also noticed that some of the cafés do not offer food while
others offer foods and coffee, but need some improvements to accommodate the
increasing demands and preferences. Some people are looking for a place to relax and
study and also looking for a place to conduct special meetings. Eating out creates bonds
to people especially when families, friends, and colleagues get the chance to catch up
with each other while eating in a fancy cafe that provides some services. It keeps the
conversation going, strengthens ties and builds up a better relationship with one another,
as the saying goes, "The fondest memories are made when gathered around the table."
Whether staying at home or eating out, the thought which everyone cannot deny is being
together, enjoying food together at home as well as going out. In addition, some people
only prefer to be alone but the best way to reflect and make time for ourselves is to be in
the place where we feel most alive, and that is finding a place to treat ourselves with
some delicious foods. We all know that food is life, we can cheer ourselves up through
buying foods that we love.

The researchers aim to operate a café restaurant that provides a relaxing and spacious
eating place and offers exquisite foods and beverages that will satisfy all the customer’s
cravings. It is not just like a typical café because it is unique. The name of the café is
“Serene Café” it is unique from a typical Café because it has a good taste, quick-serve
 restaurant abounds, and with a delightful indoor and outdoor dining, with a VIP room for
those customers who want to conduct meetings and special gatherings, and a study area
for those college students who wants to study alone and it has a good parking area.
Serene Café will provide a comfortable, relaxing place and it is one of a kind dining
experience, aesthetic and Instagram-worthy place, and on top of it are the mouth-watering
foods and beverages with a very affordable price. The reason why the researchers choose
this type of business is that they see that a typical Café restaurant needs improvement to
accommodate the increasing customer demands and preferences.

B. COMPANY OVERVIEW

Serene Café contains the selection of the products and service as well as its uses, process,
and its materials. Analyzing its cost from raw materials, machineries and equipment,
production costs, utilities, up to the cost for building renovations that amounted to Php
1,116,273.03. The production schedule is also incorporated for a smooth working
schedule, where the operation is from 9:00 am to 9:00 pm everyday. The location was
selected due to its peacefulness and is away from the hustle and bustle of the city. The
layout of Serene Café is designed to have a spacious and 4 relaxing place to unwind. It
also determines the labor requirement for the Café productions and its waste disposal
schedules.

II. VISION AND MISSION STATEMENT

A. VISION STATEMENT

To serve happiness and warmth for our customers through delicious and affordable
quality coffee, pastries, and other meals while working towards the greater good for our
business, our employees and environment. The Serene Café will deliberately choose to
be distinctive and unique in its customer experience.

B. MISSION STATEMENT
 To create unique and coffee flavors as well as creating a good quality of pastries with
relaxing atmosphere to serve our community.

C. ORGANIZATIONAL CHART

III. ADMINISTRATION AND HUMAN RESOURCES PLAN

A. FORM OF BUSINESS

Sole or single proprietorship will be the form of business ownership. Some advantages of
a sole proprietorship is that it has the complete control as the owner, it adheres to fewer
regulatory requirements, and few government regulations. The disadvantages of choosing sole
proprietorship is dealing with wrong decisions, future selling complications and it has unlimited
liabilities. Since sole proprietorship is the form of business ownership for the proposed business
ownership, it should be addressed to the purpose, authority and the responsibility only to the
business owner itself. Hence commitment is entailed in the business and assumes liability for any
obligations, debts and or any losses. 

B. BUSINESS STRATEGIES

a. ADMINISTRATION AND HUMAN RESOURCE DEPARTMENT

The business associates will provide a set of guidelines for the proposed
business to have a pleasant organization, promote peace all over the workplace, keep
it running smoothly and well-executed. Such policies will provide fairness among all
the workers or employees, it provides efficiency, accountability and coherence on
how an organization will be operated. It serves as guidance and principles to follow
in order for the said business to achieve customer retention as well as its employees.

b. MARKETING DEPARTMENT

Social Media nowadays is considered to be the most effective way of

advertising. Using social media as a marketing tool helps the new business to reach
the information about the opening of a new Café. Posting regularly on Facebook
helps to reach prospective customers. Before the expected opening of the Café, huge
social media marketing campaigns will be launched. Tarpaulins will also be posted
outside of the Café to let the people know that the Café will open soon. Flyers will be
distributed to the public areas.

c. OPERATIONAL DEPART
 Serene Café will operate from 9:00 am to 9:00 pm in two shifts, a total of twelve
(12) hours a day for an entire month giving the employees an alternate day-off per
week. The figure below shows the time table of each worker in Serene Café each day.

Shift 1 Shift 2

Worker 9:00 AM – 1:00 PM 1:00 PM – 5:00 PM 5:00 PM – 9:00 PM

Cook 1

Assistant Cook 1

Cook 2

Assistant Cook 2

Baker 1

Assistant Baker 1

Baker 2

Assistant Baker 2

Serene Café will be open everyday giving each employee their designated day-off per
week.

C. POSITION AND QUALIFICATION

 Position: General Manager

Job Qualification

Must be a graduate of any 4 year-course preferably a Business Administration degree

● Had at least 2 or more years of managerial related work experience
● Well-versed in verbal and written communication (Cebuano, Filipino, English)
● Wide background of Microsoft Word, Microsoft PowerPoint and Microsoft Excel
● Can work under pressure
● At least 24 years old and above
● Has an excellent time management
● Excellent leadership skills
● Great Mentorship
● Excellent interpersonal skills with a focus on customer service
Must be familiar with food handling, safety, and other restaurant guideline

Position: Café Restaurant Supervisor

Job Qualification

● Must be a graduate of any 4 year-course preferably a Business Administration degree

● Had at least a one year and a half experience of managerial related work
experience
● Wide background of Microsoft Word, Microsoft PowerPoint and Microsoft Excel
● Well-versed in verbal and written communication (Cebuano, Filipino, English)
● Has significant work experience in management and hospitality industry
● It has to have excellent working knowledge of food and beverages
● It must be decisive and a critical thinker
● Great leadership skills
 Position: Cook

Job Qualification

● Must be a graduate of a four year-course preferably Food Technology, Culinary Arts

Degree, and Hospitality Management
● Must have at least more than one year experience work-related to food and beverage
service industry
● Requires a culinary certification or degree from a culinary school
● Has an excellent knowledge about food and beverages

Position: Baker

Job Qualification
● Must be a graduate of a four year-course preferably Pastry Arts, Baking and
Pastry Course, Professional Cooking, Culinary Arts
● Baking certificate if there is any or any baking lessons
● Has a full knowledge of baking and pastry methods
● Had at least one year experience in baking lessons

Position: Assistant Cook

Job Qualification

● Must be a graduate of four year-course preferably Food Technology, Culinary Arts

degree and Hospitality Management
● Has an excellent knowledge about food and beverages
● Had at least a half year experience of food service or restaurant experience

Position: Assistant Baker

 Job Qualification

● At least a High School graduate but with full knowledge of baking and pastry
lessons
● Had at least half year experience in baking lessons
● Full understanding of baking and pastry methods

Position: Receiving/Dispatching Personnel

Job Qualification

● Must have at least Vocational Diploma or Short Course Certificate in Food

Technology
● Or a graduate of Food Technology degree, Hospitality Management, Nutrition and
Dietetics degree
● Preferably less than one year of experience in specializing in Food, Beverages,
Restaurant Service or its equivalent.
● Must have excellent working knowledge of food and beverages
● Well-versed in verbal and written communication to expedite delivery of food to
customers

Position: Cashier

Job Qualification

● At least a High School graduate with great academic performances

● At least had six months of experience in any related positions
● Must be at least excellent in Mathematics
● Proficiency in calculators and other machines that are required for transactions
● Well-versed in verbal and written communication (Cebuano, Filipino, English)
● Wide background of Microsoft Word, Microsoft PowerPoint and Microsoft Excel for
Profit Margin Formula

Position: Security Guard

 Job Qualification

● Must be a High School graduate and within 0-2 years of experience in the field or any
related area
● Police clearance, Barangay clearance, Sedula, NBI clearance, Medical Certificate,
NEURO
● Familiar with standard concepts, practices, and procedures within field
● Rely on limited experience and judgment to plan and accomplish goals
● Performs variety of tasks
● Work under general supervision; typically reports to a supervisor or manager
● A certain degree of creativity and latitude is expected

Position: Waiters/ Waitresses

Job Qualification

● Must be at least a High School graduate or any 4 year course degree

● Had at least six months of experience in work related food service industry
● Has a good multitasking skill
● Excellent interpersonal skills
● A Well-trained in hands on customer services
● Great knowledge of menus and what the food contains and with good memorization
● Has good physical strength and physical stamina

Position: Maintenance Personnel

Job Qualification

● Requires a high school diploma or its equivalent and at least a one year of experience
in the field or in a related area
● Has the great ability to use, repair and maintain machines and tools
● Has the ability to work well by hands on activities
● Great at paying attention to detail
● Good physical skills, coordination and dexterity
D. JOB DESCRIPTIONS

Job Description (General Manager)

● Regularly review product quality and research new vendors

● Ensures compliance with company standard
● Takes overall responsibility in directing daily operations of the restaurant
● Organizes and supervises each and every employee’s shifts
● Assess revenues and all profits
● Coordinates the overall business operation and to see what is beyond
● Appraises all its staff’s performances, give encouragement and provide feedback for
the improvement of productivity
● Controls the overall restaurant expenditures
● Control operational costs and promoting efficiency

Job Description (Café-Restaurant Supervisor)

● Restaurant Supervisor is tasked to ensure that the business runs smoothly

● Oversee the whole restaurant operations
● Accesses the General Manager in managing the business
● Maintains the quality control for all food served
● Ensures customer satisfaction by promoting excellent service
● Responds immediately to customer complaints professionalism and tactfulness
● Organize and supervises employee’s shifts

Job Description (Cook)

● Prepare meals and follow establishment recipes

● Follows recipes, includes measuring, weighing and mixing of ingredient
● Prepares ingredients adhering to the Café restaurant menu
● Follows food health and safety procedures
● Coordinates the kitchen stuff
● Maintains cleanliness and safe work area, includes handling utensils, equipment and
dishes
● Maintains food safety and sanitation standard
● Handles and store ingredients and food

Job Description (Baker)

● In charge of designing and preparing baked goods for the establish business
Coordinating baking schedule to produce pastries and other baked goods
● Operating production machinery
● Well understanding of ingredients and sweet food preparation to craft recipe and
create baked goods
● Organize kitchen baking stuffs
● Ensures that kitchen utensils are well sterilized
● Ensures that all the raw materials for baking process must be fresh and clean
● Maintaining the safety of food and practice sanitation standard

Job Description (Assistant Cook)

● Assist head cooks, clean utensils and follow establishment recipes
● Assist in organizing kitchen stuffs
● Take over the head cook when it is scheduled for a day-off
● Assess the head cook by maintaining the cleanliness and safe work area, includes
handling utensils, equipment and dishes

Job Description (Assistant Baker)

● Assess the head baker in maintaining the cleanliness and safe work area, includes
handling utensils, and equipment
● Assist in organizing kitchen baking stuffs
● Takes over the head baker when it is scheduled for a day-off
● Well understanding of ingredients and sweet food preparation to craft recipes and
create baked goods

Job Description (Receiving/Dispatching Personnel)

● Ensures compliance with all food health and safety requirements
● Ensures raw materials and its ingredients are fresh
● Also helps to assist the General Manager and Café Restaurant Supervisor in
operating the business as well as to monitor its overall performances

Job Description (Cashier)

● Accepts cash payments and making exchange
● Assists the General Manager as well as the Café Restaurant supervisor in
computing total revenues
● Processes credit payments if there is any customer who use other payment method
● Communicate and welcoming the customers
● Ensuring correct meal prices
● Ensuring correct meal prices
● Administering receipts to the customers
● Process customers’ orders and record in the Café Restaurant database

Job Description (Security Guard)

● Must secure the establishment from harm by patrolling the premises
● Must prevent the establishment from any losses and damages by reporting
irregularities, restraining trespassers, and informing violators of the policies and
procedures
● Must control traffic by directing drivers and maintaining
establishment peacefulness and reputation by complying with legal requirements
● Respond to emergencies to provide necessary assistance to employees and
customers
● Protect the company’s assets from assault, theft, fire and other safety issues

Job Description (Waiters/Waitresses)

● Provides wait service ensure customer satisfaction

● Greetings of customers in a polite manner
● Taking customer orders and delivers food and beverages with full coordination
● Provides detailed information on the menus for the customers
● Collects the customers’ bills

Job Description (Maintenance Personnel)

● Performs cleaning activities

● Ability to remain professional with difficult customers
● Assists various repair material and components needed for the maintenance work
● Also performs basic repairs
● The Café Restaurant will take charge as Cashier position when the assigned
employee will take her scheduled day-off
● Assistant Cooks and Baker will take over the duties and responsibilities of the
Head Cooks and Bakers if they will take their scheduled day-off
● The Security Guard has only one shift which is from 1:00pm-9:00pm. Security guard
will be taken from the Security Guard Agency company. The proposed business only
 needs one security guard position therefore the security agency company are the one’s in
charge of the scheduling of their working days or to be on duty for the said business. The
proposed business will directly compensate unto the Security Agency company which
will be for monthly basis. The Security Agency will be the one to provide benefits to the
security guard employees.

IV. MARKETING PLAN

A. INTRODUCTION

The marketing aspect is one of the most important key aspects of all feasibility
studies because it describes the market situations where the service can be
identified through the demand analysis. Also, it will make a big impact on the
study because it will serve as the basis for the proponents to have a clear picture
to whether to pursue the business or not. The factors that have to be considered in
establishing and coming up with the business, as well as the financial basis for the
projected demand, will be determined.
B. OB/ECTIVES OF MARKETING

● To be able to determine the target market.

● To be able to identify the consumer public’s preferences and taste with regard
to the product.

● To be able to determine the demand and supply of the proposed business.

● To be able to develop good competition and marketing strategies for the

business using the four P’s in marketing.
 ● To be able to determine the pricing strategy of the business.

● To be able to give projections on the product’s future demand and supply

situation.

C. ANALYSIS OF MARKETING

a. MARKET TRENT
The present world today, Coffee is the second largest commodity market next
to oil, and growth is expected to continue at a strong pace for the foreseeable
future. Coffee has been a growing industry for the past several years This growth
offers excellent opportunities for new businesses to enter this market, and we are
excited about the possibilities of what Serene Cafe can accomplish in Negros
specifically Dumaguete City.

While there are a handful of coffee and specialty beverage suppliers providing
products in our market, there is still a great deal of room for new business. Most
importantly, there is room for new business that understands the need for high-
quality service and sales support – in addition to products at competitive prices.
Consumers today, especially pandemics, have caused some of them to have a low
income but by positioning Serene Cafe in the market with in-demand, quality
products at competitive prices, with a consistent high level of customer service –
we are confident that we will see customers and Serene Cafe continue to
increase.

b. EXTERNAL ENVIRONMENT ANALYSIS

The setting for this proposes business is in Dumaguete City with an estimated
total population of 134,103 people. Dumaguete City is the capital in the Negros
Oriental, which is one of the provinces in the Philippines situated in the Central
Visayas Region. Dumaguete City has a land area of 33.62 square kilometers or
 12.98 square miles, which constitutes 0.62% of Negros Oriental’s total area (Phi
Atlas, 2021).

c. INTERNAL ENVIRONMENT ANALYSIS (SWOT ANALYSIS)

The following represents our strengths, weaknesses, opportunities and threats for this Serene
Coffee Shop business plan:

STRENGTH WEAKNESS OPPORTUNITI

S ES ES
THREATS

Offering quality Usage of Manual Innovation and New Increasing cost

product and System techniques from suppliers
service to
customers

Quick and Health and safety The chance to Products copied by

motivated staff of customers expand the business Competing coffee
internationally and shops
globally

Reasonable Cost Ability to develop a The low price of

prices for disadvantage direct relationship other Competing
products offered with customers Coffee shops

Customer Highly Later offer home Limited profit

focused strategy competitive delivery service
D. MARKET SEGMENTATION (SIZE, USAGE, INDUSTRTY) AND
POSITIONING

Size
There are 80% of the respondents of the survey that will patronize the proposed
business as well as the good results in terms of the purchasing power of the
respondents which influence the profitability and sustainability. The location of the
coffee shop has high footfall, especially before and after work and during lunchtimes.
The area has a high proportion of local professionals who can afford to spend money on
coffee and other drinks which include workers, students and private individuals
providing them with a safe, comfortable and relaxing place to stay with affordable and
tasty food and drinks.

Usage
The usage rate for all competitors is both medium users and heavy users who love the
great taste of coffee and tasty food that we are offering. All competitors market to those
who are aware, informed, interested, and intending to buy.

Industry
The coffee industry is expected to keep growing between 2020 and 2024 in the U.S.
Research suggests that coffee is one of the most consumed beverages in the country,
with the average person drinking two cups per day. We believe that this growth, plus
the high volume of coffee people drink each day, makes opening a coffee shop a good
business opportunity. Looking into the product knowledge we came up with the idea of
having a VIP for those customers who want to have meetings, and study rooms for
those students who want to study alone in a coffee shop, which then gave us the idea of
a Coffee Restaurant for the involvement segment. Our competitors are not currently
targeting these segments, which makes them great opportunities for us to gain a
competitive advantage. This analysis will explore when segments our competitors are
currently marketing to and how our new ideas could be built into a new successful
business.

Positioning
We decided to focus on a café restaurant that provides a relaxing and spacious eating
place and offers exquisite foods and beverages that will satisfy all the customer’s
cravings. This is not just a typical Café but it is one of unique coffee restaurant because it
offers a good taste, a quick-serve restaurant abounds, and with a delightful indoor and
outdoor dining, with a VIP room for those customers who want to conduct meetings and
special gatherings, and a study area for those college students who wants to study alone
and it has a good parking area. This cafe will also provide a comfortable, relaxing place
 and it is one of a kind dining experience, aesthetic and Instagram-worthy place, and on
top of it are the mouth-watering foods and beverages with a very affordable price.

E. 4 P's MARKETING STRATEGY

a. PRODUCT STRATEGY

Product

The business name will be Serene Café, in short it is a Café that offers foods and
beverages. As there are many Cafés that offer different foods and drinks, the proposed
business will focus on developing mouth-watering foods and beverages. For the Main
Dishes: BB back ribs with rice, Fried garlic chicken, Crispy pork chop with rice, Beef
steak with rice, Fish fillet with Coleslaw, Sizzling sisig with rice; for Silog Meals:
Tocilog, Tapsilog and Cornsilog; for Fast Food: Fries, Chicken sandwich, Clubhouse
burger, Mushroom-beef spaghetti, Spaghetti carbonara; For Breads and Desserts: Ham
and cheese bread, Chocolate fudge brownie, and Rocky road brownies; For sliced cakes:
Red velvet cake, Chocolate moist cake, and Cream cheese cake, for Beverages: Brewed
coffee, Ice coffee, Hot/Cold chocolate, Tea (Green tea, chamomile tea, lemon tea), Ice
tea, Lemonade, Pineapple juice, Chocolate shake, Mango shake, and Halo-halo.

b. PRICE STRATEGY

Pricing. Serene Café is composed of a study area that can occupy 6 people. The
Indoor dining can occupy 12 people and Outdoor dining can occupy 25 people; the VIP
room can occupy a maximum of 10 persons is Php 150.00 per hour.
The price is based on the prevailing rates used in Dumaguete City because the
industry is very competitive. To compete more effectively, the researchers will have to
take into consideration how much the other price rate is charging. Further considerations
taken are the economic situations and lifestyles of the target market to make prices as
reasonable as possible.
c. PLACE STRATEGY

The proposed business is located at Purok Jusuda 2, along Dumaguete-Balugo

Road in Northern Junob, Dumaguete City with an area of 224.25 square meters. The said
land will be bought by the proponent which provided already with a residential building
wherein few enhancements of the area and renovation of the parts of building are needed.
The researchers chose this place because it is peaceful, not crowded, less noisy,
accessible, less pollution and surrounded by trees that provide good ambiance.
d. PROMOTIONAL STRATEGY

Promotion

Social Media nowadays is considered to be the most effective way of advertising.

Using social media as a marketing tool helps the new business to reach the information
about the opening of a new Café. Posting regularly on Facebook helps to reach
prospective customers. Before the expected opening of the Café, huge social media
marketing campaigns will be launched. Tarpaulins will also be posted outside of the Café
to let the people know that the Café will open soon. Flyers will be distributed to the
public areas. A total of Php1,000.00 will be allocated for advertising.

Product Category. The products that will be sold are foods and drinks such as
 the main dishes, fast foods, silog meals, bread and desserts and beverages that are the
choices foods and drinks.

Brand. It symbolizes the primary logo of the Café.

Shown below is the brand of Serene Café

V. OPERATIONS PLANNING

A. INTRODUCTION

The operation aspect contains the selection of the products and service as well as its uses,
process, and its materials. Analyzing its cost from raw materials, machineries and equipment,
production costs, utilities, up to the cost for building renovations. The production schedule is
also incorporated for a smooth working schedule. The location was selected due to its
peacefulness and is away from the hustle and bustle of the city. The layout of the said
business plan is designed to have a spacious and relaxing place to unwind. It also determines
the labor requirement for the Café productions and its waste disposal schedules.

B. OBJECTIVE OF OPERATIONS

To determine the products and service that the café will offer.

● To determine the cost of each machine or equipment needed.

● To be able to calculate the cost of production for each product.

● To illustrate the store size and store layout of the business.

● To be able to estimate the cost for renovations of the building.

● To be able to know the method of waste disposal for the maintenance of the store.

D. OPERATION STRATEGIES

As the humble beginning of the normal operation, the business is expected to fulfill its
objectives from this point forward. It will be strategically located in Purok Jusuda 2, along
Dumaguete-Balugo Road in Northern Junob, Dumaguete City, Negros Oriental for the start-
up of the said business, but in the near future, Serene Café will be able to expand its services
by expanding the business, to open up Café restaurant branches to other locations such as in
Cebu, Bacolod or within local. The production schedule is also incorporated for a smooth
working schedule, where the operation is from 9:00 am to 9:00 pm everyday. The location
was selected due to its peacefulness and is away from the hustle and bustle of the city. The
layout of Serene Café is designed to have a spacious and relaxing place to unwind. It also
determines the labor requirement for the Café productions and its waste disposal schedules.

E. SUPPLIER

Based on the survey being conducted by the researchers there is no existing competitor in the
location and because of this gathered information, the management can provide a unique way
to attract customers and putting such a Café in the area is still an advantage of the proponent
because of its accessible location and positive characteristics.

It is a privilege to work with various meat suppliers from various parts of Negros Oriental, of
which Kings Meatshop is the chosen supplier for our meats used. Our main suppliers for the
Cafe's production is Savemore which is located at Veterans Avenue, Nat'l Highway,
Dumaguete City, Negros Oriental and Yanyan Commercial which is located at Sta. Rosa St.
Dumaguete City, Negros Oriental. Team collaboration, knowledge of the business brand, and
budget optimization are all important factors in the success of this Café.
 E. PROCESS PLANNING (FLOW CHART)

Production Process

Description of the Process

Shown in the figure 6-32 is the process of the product offered in Serene Café.

“BB Back Ribs”

1. Divide and weigh the meat for 250 grams each and boil for 10-15 minutes.

2. Let the boiled meat cool for 10-15 minutes.

3. Make the sauce. Combine the garlic powder, salt, pepper, worcestershire sauce,

and barbeque sauce in a bowl.

4. Tear off 18 pieces of aluminum foil big enough to enclose each portion of meat.

5. Spray each piece of foil with vegetable cooking spray.

6. Brush the ribs liberally with barbeque sauce and place each portion in its own

piece of foil.

7. Wrap tightly and store each portion in a ziplock. Store inside the freezer.

8. When someone orders BB Back Ribs. The cook will pull out the pre-cooked BB

Back Ribs from the freezer and preheat the oven.

9. Cook the BB Back Ribs in the oven for 15-20 minutes.

10. Place the BB Back Ribs in a sizzling plate and serve with rice.
Process Flow Chart for BB Back Ribs

“Fried Garlic Chicken”

1. Season the chicken with garlic powder, salt, and black pepper.

2. Weigh the chicken for 150 grams in one portion and put each portion inside the

ziplock bag.

3. Heat the pan and add the cooking oil.

4. Dip the slices of chicken in the egg mixture and roll in the breadcrumbs.

5. Deep fry the chicken for 5 minutes each side.

6. Place the freshly cooked chicken on a clean plate and serve with rice.
Process Flow Chart of Fried Garlic Chicken

“Chicken Sandwich”

1. Prepare the boneless chicken for the filling.

1. Weigh the boneless chicken for 150 grams on each portion.

2. Season the chicken with salt and pepper.

3. Coat the chicken with flour and cornstarch.

4. Deep fry the chicken for 5 minutes.

5. Assemble the sandwich. Place the chicken on buns and add lettuce and

mayonnaise
Process Flow Chart of Chicken Sandwich

“Clubhouse Burger”

1. ‘Make the patties. Combine the ground meat, minced garlic and onion, egg,

breadcrumbs, salt, and pepper in a bowl.

2. Weigh the meat mixture to 100 grams each portion and form into a ball.

3. Sear each burger patty in the pan for 3 minutes each side.

4. Place the patty on buns, add lettuce and mayonnaise.

Process Flow Chart of Clubhouse Burger

“Mushroom-Beef Spaghetti”

1. Make the Spaghetti Sauce. Saute the minced onion and garlic in a pot.

2. Add in the ground beef and let cook for 3 minutes, season with salt and pepper.

3. Add in the minced mushroom and cream of mushroom, stir well.

4. Pour in the spaghetti sauce and stir thoroughly, let simmer for 3 minutes.

5. Boil the noodles for 8 minutes or according to package instructions.

6. Once cooked, quickly wash the noodles to wash off the excess starch to prevent

from sticking and strain the noodles.

7. Place the noodles in a clean plate and pour the sauce on top of the noodles.

Garnish with freshly grated cheese.

Process Flow Chart of Mushroom-Beef Spaghetti

“Spaghetti Carbonara”

1. Make the carbonara sauce. Saute the minced onion and garlic in a pot.

2. Add in the ground beef and let cook for 3 minutes, season with salt and pepper.

3. Add in the chopped ham and stir.

4. Pour in the carbonara sauce and stir thoroughly, let simmer for 3 minutes.

5. Boil the noodles for 8 minutes or according to package instructions.

6. Once cooked, quickly wash the noodles to wash off the excess starch to prevent

from sticking and strain the noodles.

7. Place the noodles in a clean plate and pour the carbonara sauce on top of the

noodles. Garnish with freshly grated cheese.

Process Flow Chart of Spaghetti Carbonara

“Ham and Cheese Bread”

1. Combine the flour, yeast, sugar, salt, and water in a bowl.

2. Knead the dough for 15 minutes and once done, rest for 1 hour.

3. Cut and proportion each dough precisely.

4. Flattened each dough and placed the ham and cheese on one side, then folded the

dough over to fully enclose it.

5. Brush the top of the dough with beaten egg and bake for 30-40 minutes.

Process Flow Chart of Ham and Cheese Bread

“Burger Buns”

1. Combine flour, salt, and sugar in a separate bowl.

2. Combine milk, egg, butter, and yeast.

3. Combine the flour mixture to the milk mixture, mix well.

4. Knead the dough for 10-15 minutes, once done, rest the dough for 1 hour.

5. Cut and weigh the dough making sure it has an exact proportion.

6. Shape the dough into a ball and place in a baking sheet.

7. Bake for 30-40 minutes

Process Flow chart of Burger Buns

“Chocolate Fudge Brownie”

1. Combine flour, baking powder, and salt.

2. Combine coffee powder, cocoa powder, and water.

3. Combine butter, sugar, and egg.

4. Add the flour mixture alternately with the cocoa mixture into the butter mixture.

5. Mix well and place in a baking tray.

6. Bake for 30-40 minutes.

7. Once cooked, cut evenly the brownie and place each brownie in a saucer plate and

display in the display chiller.

Process Flow Chart of Chocolate Fudge Brownie

“Rocky Road Fudge Brownie”

1. Combine flour, baking powder, and salt.

2. Combine coffee powder, cocoa powder, and water.

3. Combine butter, sugar, and egg.

4. Add the flour mixture alternately with the cocoa mixture into the butter mixture.

5. Add nuts and marshmallows.

6. Mix well and place in a baking tray.

7. Bake for 30-40 minutes.

8. Once cooked, cut evenly the brownie and place each brownie in a saucer plate and

display in the display chiller.

Process Flow Chart of Rocky Road Fudge Brownie

“Chocolate Cake”

1. Combine flour, baking powder, baking soda, and salt in a bowl.

2. Combine coffee powder, cocoa powder, and water in a separate bowl.

3. Combine butter, sugar, and egg in a separate bowl.

4. Add the flour mixture alternately with the cocoa mixture into the butter mixture.

5. Mix well and place in a greased round baking pan.

6. Bake for 45 minutes.

7. Once cooked, let cool for 15 minutes and add the frosting.

8. Slice the Chocolate cake into 8 equal slices.

9. Place each cake slice in a saucer plate and display in the display chiller.
Process Flow Chart of Chocolate Cake

“Red Velvet Cake”

1. Combine flour, baking powder, baking soda, cocoa powder, and salt in a bowl.

2. Combine butter, sugar, egg, milk, and red food coloring in a separate bowl.

3. Combine the flour mixture into the milk mixture.

4. Mix well and place in a greased round baking pan.

5. Bake for 45 minutes.

 6. Once cooked, let cool for 15 minutes and add the buttercream frosting.

7. Slice the Red Velvet Cake into 8 equal slices.

8. Place each cake slice in a saucer plate and display in the display chiller

Process Flow Chart of Red Velvet Cake

“Cream Cheese Cake”

1. Make the crust. In a medium bowl, combine the crushed grahams, melted butter,

sugar, and salt. Mix well

2. Press the grahams into an even layer on the bottom of the prepared round baking

pan. Bake the crust for 10 minutes, until set.

 3. Make the batter. Combine the cream cheese, sugar, and flour.

4. Add the vanilla, lemon zest, lemon juice, and salt.

5. Add the egg and sour cream one at a time.

6. Pour the batter on top of the crust and bake for 1 hour and 30 minutes on low

heat.

7. Let cool and slice the cream cheese cake into 8 equal portions.

8. Place each slice in a saucer plate and display in a display chiller.

Process Flow Chart of Cream Cheese Cake

“Plain Rice”
 1. Put 10-15 cups of rice in a pot.

2. Wash the rice thrice.

3. Pour water depending on how many cups of rice to cook.

4. Place in the rice cooker and wait for the rice to cook.

Process Flow Chart of Plain Rice

“Fries”

1. Get the ready-to-cook fries in the freezer.

2. Heat the cooking oil enough to deep fry the fries.

3. Once the oil is smoking, add the fries and cook for 5-10 minutes.

4. Once cooked, weigh the fries for 100 grams in each serving.

5. Place each serving in a saucer plate or ramekin together with a sauce.

Process Flow Chart of Fries

“Tocilog”

1. Get the ready-to-cook marinated tocino in the freezer.

2. Heat the pan and add in the tocino and cook for 5-10 minutes on low heat.

3. Once cooked, place the tocino together with 1 cup of rice on a clean plate. Set

aside

4. Heat another pan and cook a sunny side-up egg.

5. Once the egg is cooked, place it on top of the rice.

Process Flow Chart of Tocilog

“Tapsilog”

1. Get the ready-to-cook marinated tapa in the freezer.

2. Heat the pan and add in the tapa and cook for 5-10 minutes on low heat.

3. Once cooked, place the tapa together with 1 cup of rice on a clean plate. Set aside

4. Heat another pan and cook a sunny side-up egg.

5. Once the egg is cooked, place it on top of the rice.

Process Flow Chart of Tapsilog

“Cornsilog”

1. Get the canned corned beef in the pantry.

2. Saute the chopped onion in the pan, add in the corned beef and cook for 5

minutes.

3. Once cooked, place the corned beef together with 1 cup of rice on a clean plate.

Set aside

4. Heat another pan and cook a sunny side-up egg.

5. Once the egg is cooked, place it on top of the rice.

Process Flow Chart of Cornsilog

“Brewed Coffee”

1. Grind the coffee bean using the electric blender.

2. Once done, measure enough ground coffee for 5 cups of water.

3. Add the ground coffee and water in a pot, boil for 5-10 minutes for richer taste.

4. Once done, strain the coffee and place in a mug.

5. Serve with milk and sugar.

Process Flow Chart of Brewed Coffee

“Iced Coffee”

1. Get a clean plastic cup with a lid and drizzle a little caramel syrup onto the sides

of the serving cup.

2. Add in a cup of ice cubes and pour in the half cup of brewed coffee.

3. Lastly, pour in milk and serve.

Process Flow Chart of Iced Coffee

“Hot or Cold Chocolate”

1. Get a clean pot with a lid.

2. Add in cocoa powder, sugar, and evaporated milk.

3. Stir well and bring to a boil for 5 minutes, continue stirring

4. Once done, place in a mug (serve with marshmallow on top for Hot Chocolate)

5. For Cold Chocolate, prepare a plastic cup with a cup of ice cubes.

6. Add in sugar syrup and pour in the hot chocolate.

Process Flow Chart of Hot or Cold Chocolate

Tea (Green Tea, Chamomile Tea, Lemon Tea)

1. Boil water in a pot.

2. Once done, place the hot water in a teapot.

 3. Prepare a tea cup and place inside a sealed tea bag.

4. Serve the teapot and teacup together with sugar and milk condiments.

Process Flow Chart of Tea

“Iced Tea”

1. Boil water in a pot.

2. Once done, add the hot water in a prepared mug with a bag of tea.

3. Prepare a glass with a cup of ice cubes.

4. Add in sugar syrup and pour in the hot tea.

Process Flow Chart of Iced Tea

“Lemonade”

1. Slice half a lemon and cut one thin slice in the middle, set aside.

2. Extract the juice of a lemon.

3. Prepare a glass of ice cubes and add in sugar syrup.

4. Pour in a quarter cup of water together with the lemon juice onto the glass of ice.

5. Serve with a thin slice of lemon on top.

Process Flow Chart of Lemonade

“Chocolate Shake”

1. In a blender, add a cup of crushed ice, 1 big scoop of chocolate ice cream, and

sugar syrup.

2. Blend until smooth.

3. Prepare a glass and drizzle a little amount of chocolate syrup onto the side.

4. Once done, pour in the chocolate shake and serve.

Process Flow Chart of Chocolate Shake

“Mango Shake”

1. In a blender, add a cup of crushed ice, 1 big scoop of mango ice cream, and sugar

syrup.

2. Blend until smooth.

3. Prepare a glass and add fresh diced mango.

4. Once done, pour in the mango shake and serve.

Process Flow Chart of Mango Shake

“Halo-halo”

1. Slice a banana and mango into small pieces, set aside.

2. In a glass, add in 2 tablespoon sliced mango and banana, 2 tablespoon coconut

meat, and 1 tablespoon garbanzos.

3. Add in sugar syrup and crushed ice.

4. Pour in the milk and top with a scoop of ube ice cream and corn flakes.
Process Flow Chart of Halo-halo

F. IMPLEMENTATION SCHEDULE (GANTT CHART)

Gantt Chart of Production Schedule

 The working schedules of workers in the kitchen everyday. Cook 1 and Assistant Cook 1

are scheduled from 9 am to 5 pm. Cook 2 and Assistant Cook 2 are scheduled from 1 pm to 9

pm. Baker 1 and Assistant Baker 1 are scheduled from 9 am to 5 pm. Baker 2 and Assistant

Baker 2 are scheduled from 1 pm to 9 pm.

G. MACHINERY AND EQUIPMENT

Price and Quantity of the Machinery and Equipment

 Quantity Material/Equipment Price per Unit Total Price

2 Chest Freezer Php 18,000 Php 36,000

2 Chiller Php 27,538 Php 55,076

1 Display Chiller Php 10,000 Php 10,000

1 Oven Php 55,800 Php 55,800

1 Small Oven Php 4,600 Php 4,600

1 Dough Mixer Php 48,000 Php 48,000

2 Stand Mixer Php 27,230 Php 54,460

1 Gas Stove Php 38,970 Php 38,970

1 Electric Blender Php 1,590 Php 1,590

1 Ice Crusher Php 3,574 Php 3,574

2 Cake Turntable Php 760 Php 1,520

3 Rubber Spatula Php 120 Php 360

3 Cake Spatula Php 70 Php 210

5 Pastry Bag Php 36 Php 180

2 sets Pastry tip Php 39 Php 78

3 Measuring cup Php 160 Php 480

3 Measuring glass Php 160 Php 480

3 Measuring spoon Php 240 Php 720

3 Kitchen scissors Php 130 Php 390

4 Parchment paper Php 75 Php 300

4 Round Baking Pan Php 85 Php 340

4 Baking Sheet Php 120 Php 480

6 Mixing Bowl Php 176 Php 1,068

2 Sifter Php 49 Php 98

3 Scooper Php 149 Php 447

3 sets Cake Board Php 166 Php 498

20 Plates Php 86 Php 1,720

20 Goblet Php 70 Php 1,400

10 Sizzling plate Php 229 Php 2,290

20 Table Napkin Php 35 Php 700

10 Kitchen Tissue Php 10 Php 100

Paper

5 Condiments Php 55 Php 275

Container

1 Digital Weighing Php 668 Php 688

Scale

1 Knife Php 4,629 Php 4,629

5 Kitchenware Php 83 Php 415

1 set Cookware Php 1,799 Php 1,799

5 Packs Packaging Php 80 Php 400

2 sets Paper Meal Box Php 350 Php 700

2 sets Plastic Cups with Php 476 Php 952

Lids

2 sets Plastic Spoon and Php 185 Php 370

Fork

VI. FINANCIAL PLAN

A. INTRODUCTION

The financial study primarily prepares the financial statements, and the analysis of the

selected amounts from the financial statements that will help determine if the proposed business

is feasible through the financial analysis.

B. OBJECTIVE OF THE FINANCIAL

•To determine the total project cost of the proposed business.

• To determine the initial capital requirements needed for the proposed business.

• To determine the liquidity, solvency, profitability, and operating efficiency of the proposed
business.

• To determine the breakeven point.

• To determine the payback period.

• To determine the net present value and profitability index.

C. SOURCES OF FUND
D. PROJECT IMPLEMENTATION COST

The total amount needed to start the business are the following:

Land 224,500.00

Building 30,500.00

Building renovation 298,338.00

Machinery and equipment 333,257.00

Furniture 49,426.00

Production supply 5,450.00

Raw materials 24,152.03

Permits and licenses 10,500.00

LPG Tank 5,400.00

Salary and Wages 146,250.00

Water 7,500.00

Electricity 8, 000.00

Telephone and Wi-Fi package 2, 000.00

Advertising 1, 000.00

Uniform 1, 500.00

Total project cost 1,147,773.03

E. LIST OF EXPENSES

F. FINANCIAL STATEMENTS

Advertising. This expense is projected to increase by 5% annually.

BMBE. This means that Serene Cafe operating income tax is zero (0.00)

because the business acquires the Republic Act 9178 or the Barangay Micro

Business Enterprise law.

Depreciation. The straight-line method was used in estimating the depreciation

expense of all the equipment, furniture and fixtures.

Electricity. This expense is projected to increase by 5% annually.

LPG Tank. This expense is projected to increase by 5% annually.

Miscellaneous. This expense is projected to increase by 5% annually.

Pag-IBIG. Pag-IBIG contribution expense will increase by 2% annually pursuant

to RA no. 9679 Implementing Rules and Regulation, popularly known as the

Home Development Mutual Fund Law of 2009, or Pag-IBIG.

PhilHealth. As per Philhealth Circular no. 2019-0009, which went into effect on

December 7, 2019, PhilHealth contribution will increase by 5% annually.

Raw Materials. This is projected to increase by 3% annually.

Repair and Maintenance. This expense is projected to increase by

5% annually.

Sales. This is projected to increase by 5% annually.

Social Security System (SSS). SSS Contribution will increase by 5% annually in

pursuant to RA 11199 otherwise known as Social Security Act of 2018 which

took effect in January 2021.

Salaries and Wages. This expense is projected to increase by 2% annually.

Supply. This expense is projected to increase by 5% annually.

Water. This expense is projected to increase by 5% annually.

13th Month Pay. It is 1/12 of the total basic salary earned within the year.

Senior Citizen 20% Discounts. Serene Cafe in pursuant to Republic Act No.

9994, also known as the “ expanded senior citizens act of 2010.” Senior citizens

will be given a 20% discount.

PWD 20% Discounts. Serene Cafe pursuant to Republic Act No. 10754, an act

expanding the benefits and privileges of persons with disability. Persons with

disability (PWD) will be given a 20% discount.

a. INCOME STATEMENT

Liquidity

Current Ratio. Current ratio is used to determine if the business is capable of

meeting its short-term obligation. The table shows that the formula, current assets

divided by current liabilities, the current ratio from 2022 to 2026 are 31.5, 51.2, 73.5,

98.6, and 126.6 respectively. This means that Serene Café has sufficient short-term

assets to pay its short-term liabilities.

Debt-to-equity ratio. Debt-to-equity ratio is used to determine the proportion of all

assets the business has that are financed with liabilities. As you can see , the debt-to-

equity ratio of Serene Café is 1.61%, 1.27%, 1.01%, 0.82%, and 0.68% respectively.
 Return on Assets. Return on assets is used to determine how much profit a business can

generate from its asset. As you can see in Table, the return on assets of Serene Café are

24.16%, 22.53%, 21.30%, 20.07%, and 18.90% respectively.

Operating Efficiency Ratio. Operating efficiency ratio is used to determine a business’s

operating performance. The table shows that the operating efficiency ratios from 2022 to 2026

are 10.96%, 12.57%, 14.38%, 16.14%, and 17.86% respectively. This implies that Serene Café

efficiently generates optimal income while keeping the costs low.

b.CASH FLOW STATEMENT

c. BALANCE SHEET
G. PAYBACK PERIOD

Payback Period. Payback period is the length of time needed to recover the cost

of Serene Café. As you can see in Table, the payback period is 2.41 years. This

means that Serene Café is desirable and less risky.

H. GROSS PROFIT MARGIN

Net Present Value

 In this table the discounted cash flow of the proposed business. As you can see,

the net present value is 1,350,873.47 pesos, and the profitability index is 1.90.

The profitability index of 1.90 implies that Serene Café is worth pursuing as it

indicates profit.

VII. CONCLUSION

Through the financial analysis, Serene Café current ratios from 2022 to 2026 are 31.9, 51.2, 73.5,

98.6, and 126.6 respectively, and a debt-to-equity ratio of 1.61%, 1.27%, 1.01%, 0.82%, and

0.68% from 2020 to 2026 respectively. This proves that Serene Café is financially capable of

meeting its maturing short-term and long-term debts. Serene Café return on assets from 2022 to

2026 are 24.16%, 22.53%, 21.30%, 20.07%, and 18.90% respectively. This means that in spite of
the falling return on assets, the business can still generate optimal profit. However, owners must

take action as the falling return on assets indicates future financial issues. Falling return on assets

can be changed by increasing profit margin or by using assets to generate more sales. The

operating efficiency ratios of Serene Café are 10.96%, 12.57%, 14.38%, 16.14%, and 17.86%

respectively. This implies that Serene Café can efficiently generate optimal income while

keeping the costs low. In conclusion, Serene Café is feasible, because it shows profitability and

capability of paying short-term and long-term obligations.