Samson Polytechnic College of Davao

Corner Chavez Street, Ramon Magsaysay Avenue, Davao City

CAFÉ ON WHEELS BUSINESS PLAN

IN PARTIAL FULFILLMENT OF THE SUBJECT

ENTREPRENEURSHIP IN THE TOURISM AND HOSPITALITY INDUSTRY

SUBMITTED BY:

MANLIGUEZ, LORE ANN

PASAOL, SHANNON CRISTY P.

PROSPERO, DEBIE P.

SAUCELO, MARIA GENESSA

SUBMITTED TO:

MRS. YVONNE JANET DELA FUENTE

OCTOBER 2021
 TABLE OF CONTENTS

EXECUTIVE SUMMARY 3

BACKGROUND AND HISTORY 5

BUSINESS GOALS AND OBJECTIVES 7

DESCRIPTION OF PRODUCT/SERVICES 8

Product Description 8

Packaging Design 9

Service Description 10

Service Marketing 11

MARKET DESCRIPTION 12

PROMOTION 14

Social Media 14

Discounts 15

TARGET MARKET 16

COMPETITION ASSESSMENT 17

MANUFACTURING PLANS 18

Production Layout 18

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 EXECUTIVE SUMMARY

Cafe On Wheels (CAO) is a startup business proposed by its originator, the 4th

year BSHM and BSTM students of Samson Polytechnic College of Davao. From the

trade name CAFÉ ON WHEELS, this type of café will be off-grid. The café will be built

inside a vehicle with a denomination: truck. As a starter, CAO will do business around

the crowded area of San Pedro St., Bankerohan, Bajada, etc. The business will offer 2

special coffees apart from other coffees commonly offered or known to the market.

These 2 special coffees are known as Devil Cappuccino and Fragaria Coffee. Pastries

are served as complimentary snacks/desserts to the coffee. CAO aims to attain

competitiveness and maintain a good reputation in the food industry. The business

strength lies in its drive to provide instant-free coffee made with pure coffee beans from

local coffee bean growers. Consumers who will patronize CAOs coffee will not only

satisfy their cravings but will also help promote local imports. It is CAO’s strength to

offer a very reasonable price in exchange for health-conscious products. As such, CAO

imparts food culture simply by means of traditional production practices.

CAO’s advances from competitors are the access of business jurisdiction, 24/7

service, and healthy lifestyle benefits at a reasonable price, thus including lower risk of

catching covid-19 virus because of the business setting. In addition, CAO employees

are well-trained and properly educated to identify and analyze the correct response for

emotional distress which CAO consumers are normally at risk of. Moreover, the primary

strategy is to offer a variety of delicious and nutritious coffee and pastries to retain

customers.

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 Change is constant and when customers’ taste changes from time to time, CAO

is dedicated and committed to innovation. CAO’s weakness is the customer retention

built by the renowned business names in the food industry. Despite these threats, CAO

will defy all odds.

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 BACKGROUND AND HISTORY

Cafe on Wheels (hereinafter referred to as CAO) startup business. Serving

various flavors apart from common flavors: Black and Brown coffee. It will commence

with only one truck from Damosa road via Rafael Castillo to San Pedro street, which is

known to be one of the busiest streets in the city. Starting a business while the economy

is facing a crisis because of the global pandemic will never come easy. If you happen to

witness what Davao City was like after the Enhanced Community Quarantine was lifted,

you may really picture that it wasn’t the same as before. Businesses are facing major

downturns and some have chosen cessation of business while they can. Many people

lose their employment and source of income. Imagine a city without cafes? CAO was

inspired by hardworking individuals who leave their homes early for work despite the

risk of Covid19.

The business thrives to retain old traditional café practices in which individuals,

in regulation with the law and city ordinances, authorized to be outside can still enjoy

the coffee but this time in an open space, free from worries of confined and enclosed

spaces. The business strength lies in its drive to provide excellent quality products

through maintaining high standards production of quality of raw materials up to the

delivery of goods to its growing number of satisfied customers. CAO would love to take

risks and do a 24-hour service and widened its business parameter, serving employees

in graveyard shifts like BPO companies, hospitals, and even overtime employees of

construction sites. Also, CAO will add various flavors in coffee while in the afternoon,

smoothies and cold drinks are being offered. Hot chocolates will be a trend during the

rainy season. CAO followers, potential customers, retained customers and the like can

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be accessed through Internet portals known as FoodPanda, Grab, Maxim, Foruta, and

its latest online food delivery provider, Toktok.

Recently, it has been decided by all board members of CAO to accept catering

services or rental services on a commission basis or depending on what is agreed

upon.

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 BUSINESS GOALS AND OBJECTIVES

CAO’s main objective is to deliver coffee of its finest quality at a very reasonable price.

Furthermore, CAO is committed to achieving the following, to wit:

● Help local coffee growers in promoting their proudly grown coffee beans;

● Build a culture that patronizes Philippine products such as coffee;

● Continually anticipate, research, develop and innovate products & services that

meet the demand of our market/customer before it is offered to the clientele;

● Foster continuous learning and improvement to build capabilities among our

people;

● To develop strategies and techniques in order to gain entry into new target

markets and maintain their loyal base:

● To ensure that Cafe’ On Wheels achieves, maintains, and grows adequate levels

of profitability.

● Motivate customers by encouraging them to keep on moving forward and that

CAO will always be there to support their daily boost for the day.

● To be a trusted partner for those hard-working employees through their success

● To spread the product purpose throughout the country;

● To be a pioneer in helping the country's economy to rise from the world crisis

brought by the covid19 pandemic;

● To be recognized globally as Café On Wheels, a café that provides its customers

with high-quality products and services in a world-class manner at a very

reasonable price.

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 DESCRIPTION OF PRODUCT AND SERVICES

The Café On Wheels will start its business serving domestic and international

tourists in the City of Davao. Introducing products and services that will go through a

series of inspections and standardization of goods before they can be tagged as safe

and healthy to consume; is the duty of the management and its employees to

accomplish. Diligent efforts to give safe-to-consume coffees are CAOs way of showing

gratitude in return for the big favor customers will do such as patronizing their coffee,

help the business become popular, and etc... It is mandatory for CAO to serve its

customers the finest quality of products and services therefore, raw materials will be

carefully examined before a finished product is served and all examination tests or

checks are done in accordance with the law, rules, and regulations of all concerned

government agencies.

PRODUCT DESCRIPTION

The coffee beans will be bought from the local growers here in the Philippines

such as Benguet that exports to Spain and are known for its Arabica coffee, Batangas

known for its delicious success in growing coffee tree introduced by Spanish and as the

“Coffee Capital of the Philippines”, Socksargen for its abundance care on growing them

as one of the biggest producers of coffee beans in the country. These local coffee beans

are what make the shop’s coffee-based beverages not a typical drink. As for the

pastries, it will be specially made from the methods used by foreign and local cities that

are now progressing due to their unparalleled talent in making delicious desserts and it

is sometimes homemade. Some of the sweets sold at the shop are some of the

innovative creations of the cafe’s chef and the owners themselves. The coffee can be

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brewed while customers wait for their drinks and it can also be served via a vending

machine which is convenient for those individuals who are on a tight schedule. The

pastries are displayed in a glass rack with their specific names for the customer to

easily recognize and ask for the specific goods they want to have. Pastries that will be

sold at the truck vary each week which is one of the strategies of the café so that

products will gradually reach their maturity stage in the market.

PACKAGING DESIGN

Creating a design for the cups and good-to-go bags for the shop’s products is

very challenging to the founders, especially that this step is very influential in

maintaining the overall reputation of the cafe and its brand. The overgrowing of

expectations that the customers have is making every business take this step seriously.

In this step, the cafe, being a start-up company, begins its approach of using locally

made packaging ideas for the pastries, while the coffee cups shall take the form of

standard cups. These designs have been carefully gone through a lot of considerations

to deliver the shop’s product properly and so that customers can conveniently consume

the products while still enjoying the delightful flavors that harmonize within their mouths.

Both sides of the packaging box shall contain motivational quotes and bible verses,

while the product label shall be seen at the back except for the expiration and

manufactured dates that are displayed at the front top along with the generic name,

brand name, product actual picture, and lastly the logos of the private and public

associations that have inspected the product’s authenticity to its claims. The materials

that’d be used will vary between eco-friendly plastic, carton, or paper. CAO plans to still

continue its search for the perfect design that is both suitable and appropriate to use in

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bringing and carrying their products, for they believe that a good package design brings

the product to a greater height of profit and fame.

SERVICE DESCRIPTION

The CAO’s target markets will be early employees and graveyard shifts

individuals that’s why it’s important for those employees to get their meals to be eaten at

an appropriate time, but not all of these employees have the luxury to waste their time

on meals knowing how tired they are for yesterday’s duty and to waking up early. As

more households become two-income families, the adults have less time to prepare

meals, and foremost, individuals prefer to go out to buy their dinner, breakfast, or even

snacks. Businesses are driven by individuals. Many go out at snack time to get out of

the work setting. Others have business meetings at lunch. This creates attraction to a

large market of potential customers. To support these hardworking employees and

somehow ease their worries, Cafe On Wheels is there to provide them with a morning

energy boost of the day to temporarily satiate their hunger and prevent them from

having diseases such as ulcers, high blood pressure, obesity, and many more. The

services that CAO will be offering are not only limited in offering their products but also

its main duty is to inspire customers to move forward and empower them not to lose the

passion to work. CAO will always support them from the sidelines. It is in the culture and

upbringing of every employee of CAO to empathize with the customers knowing that

they are either stressed, exhausted, and maybe just having a bad day because CAO

clients are mostly sleepless individuals, graveyard shift workers such as call centers,

bodyguards, and sometimes construction workers. CAO employees are also trained to

develop skills of handling irate customers thus, they mastered being friendly,

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approachable, and also a pathfinder for hidden expressions or feelings one cannot

express while making order in their food truck.

SERVICE MARKETING

The strategy of giving customers entertainment holds customer attention as to

the display of educational trivia, riddles, and quotes about health benefits and

information on the ingredients of their products. It is just one of the strategies CAO has

taken into account. They will also put up a stand-up freedom wall for the customers to

write their feedback and express their response towards CAO staff service. CAO

freedom wall will be made available online and users of online apps (see page 13 -

Social Media Marketing) may access the room for CAO Online Freedom Wall by using

their hashtags (#). Aside from all that, CAO will ensure to have an alluring stall to entice

potential customers and ensemble an image to show the existence of the café; this shall

answer the inquisitive brains of the customer by making them stop and see what awaits

them in the café.

Delivery Apps

These days, the usage of delivery apps is past the zenith. It is to be used by CAO as a

means of marketing strategy for it is pretty convenient to reach customers locally. Apart

from being convenient and reliable, food delivery services or applications are also a way

for customers to gain access to limited offers and promotions. With this, CAO ventured

its way in to adapt to the trend and compete with other food trucks businesses or even

the big-name cafes. Grab, FoodPanda, Maxim, Foruta, and Toktok are the companies

that CAO has chosen to partner in delivering the shop’s goods to the customers.

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 MARKET DESCRIPTION

Most places are now commercialized for gustatory delight. CAO derives its name

from the word “Café On wheels” since it's timely-relevant to make sense of something.

CAO decided to start up with a coffee and pastries business. From its original form,

coffee has evolved into different kinds of flavors. CAO Coffee is made of nutritious,

authentic locally grown coffee beans instead of instant coffee. The different flavors of

CAOs coffee will vary in ingredients but will be made of natural ingredients. Using fruits

and vegetables as one of their main ingredients in making coffee and pastries, as a

result, CAO products will be more nutritious and unique. This will gather attention to

health-conscious people, who are presently active knowing that health experts and

professionals advised people to consume healthy foods, especially during this global

pandemic. Further, it proves that CAO will have a place in the business industry. CAO

chooses to build a health-conscious café on wheels to captivate potential customers to

be concerned about their health while enjoying the usual: life starts after coffee.

serving the people in Davao City with varieties of coffee and pastries. Devil

Cappuccino and Fragaria Coffee will make CAO a unique café apart from it being

off-grid. Devil Cappuccino is made up of rich chocolatey mocha with a kick of cinnamon,

nutmeg, cashew/coconut cream, and cayenne pepper making it a spicy flavored coffee.

The benefits of spicy flavored coffee, with cayenne pepper it can manage stomach

problems, give a nutrient boost, circulatory issues for a thousand years in Native

American medicine, with cinnamon as one of its main ingredients this will make the

coffee much healthier knowing that this herb boost antioxidants and cut the risk of heart

disease. Aside from all the health benefits, it can provide through a small coffee cup,

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one can say that this flavored coffee has covered the bad impression of caffeine in

people’s mindsets.

Fragaria Coffee is composed of widely grown hybrid species of the genus

Fragaria, collectively known as strawberries. Science shows that the benefits of

strawberries are to protect the heart, increase HDL (good) cholesterol, lower blood

pressure, and guard against cancer. It is also packed with vitamins, fiber, and

particularly high levels of antioxidants known as polyphenols, strawberries are a

sodium-free, fat-free, cholesterol-free, low-calorie food. These coffees will be saleable in

the market, especially that their benefits are suitable for sleepless individuals. It is also

recommended for individuals who have never tried the above-named coffees. CAOs

coffee beans together with other raw ingredients will be bought from the farm of local

coffee growers to ensure their freshness.

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 PROMOTION

To officially promote the products of CAO, fliers will be spread out around the city.

Customers who will purchase their products will also be given fliers as part of the

promotion/marketing. CAO is also enthusiastic about doing workshops and offering their

services for some occasions such as company conferences, meetings, conventions,

and the like. This will bring CAO additional profit and popularity. CAO will continue to

expand its services by finding new recipes that will bring CAO’s glory to the top. Today,

CAO will focus its attention on marketing and promotion strategy in order for them to

gain profit and be financially stable; and to further expand the market once the budget is

suitable for a new expansion.

SOCIAL MEDIA

In relation to staying afloat with the trends in the marketplace and having a good

standing in the industry, CAO pursues promoting its product through social media

marketing. By doing this, they can garner a lot of attention. Café On Wheels promotes

its products and services in its social media accounts. CAO will use blogs, referrals

(word-of-mouth), and video ads (done in social media) for marketing. These tactics will

help them advocate their products and services which then build customer trust and

loyalty in the long run. Social Media Marketing (SMM) will open a room for freedom of

building rapport with potential customers instead of the common strategy: showing

pushy sales pitches while interacting with the business. SMM will give local and foreign

potential consumers to see the constant posts of CAO's offers, promotions,

advertisements, or even about their day-to-day happenings and events. Future events

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they’d like to organize will be posted online and this will somehow call the attention of

the social media users, etc.

The wide range of audiences that social media have will be helpful to CAO in

establishing its way through the competition of becoming a top-notch local café on

wheels. Facebook, Twitter, Instagram, and YouTube are the websites CAO prefers to

use for its online advertisement. Today, CAO plans on diving its claw on live selling via

KUMU and other online apps where most people are always gathering and watching out

for. The catch is that staff shall do a vlogging type of video via live and will organize a

contest every end of the week and the price will be a coupon, discount vouchers, and

even some artworks varying from 50-500 pesos worth. Aside from that, the live selling

shall also contain selling combo coffee and pastry products with a special gift along with

it for a lower price and the purchase shall be limited by the end of the stream.

Besides, doing the promotion in social media is much cheaper, convenient, and

easy to do than purchasing a limited time on radio and television which could also cost

CAO a big sum of money to invest. As the business uses social media platforms for

advertising, if success is feasible, CAO will proudly be one of the successful users of

online advertisements and promotions done through social media apps.

DISCOUNTS

In gratitude and as a way of showing CAO's appreciation to customers that patronize

and purchase their items regularly, discounts will be provided through coupons. Bulk

buying may also qualify for discounts. Loyalty cards are taken into consideration for

discounts. But as a starter, for now, coupons will give offs the usual prices.

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 TARGET MARKET

The customers that CAO is targeting are the early bird employees who go off to

work in the morning and go home late at night such as call center agents, health

workers, construction workers, or individuals who go to market early or workers that

leave their homes at the time of the day when no stores are available or open in sight.

Coffees are served to adults or customers of legal age. Cold drinks will be offered in the

afternoon, purposely made available for the younger customers and coffee isn't a good

idea especially in summer. Since the target market is late-night employees or early-riser

individuals, CAO will not only aid their cravings for caffeine but offer pastries to fill their

empty stomachs. CAO will deliver the exact benefit needed by the target market - coffee

that helps them relieve stress, stay awake and maybe just to make them motivated or

get warm; the pastries they will offer will quench their hunger whenever they feel like it.

Apart from the above-mentioned target markets, some of the prospective customers

they wished to deliver service to are the people waiting in a queue at the front of a bank

for a transaction, people waiting for their turn in processing documents for their personal

usage, or simply mass gathering of individuals, or the like. To be in a coffee/café truck

business makes comfortable in changing location to where CAO wishes to sell their

products.

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 COMPETITION ASSESSMENT

During the year 2019 Kantar WorldPanel Philippines discovered that Filipinos

become moderate to heavy drinkers of coffee. The rise of milk tea in 2010 made the

popularization of coffee-based beverages ascend to the top. Later then, 3-in-1 coffee

made its way on the market, and that’s what made most of the Filipinos' love for the

coffee grew much deeper. 3-in-1 coffees which are very much easy to make can be

bought at sari-sari stores, malls, convenience shops, and coffee shops that can be

found in almost all the barangays in Davao City. Instant coffees sold in Sari-sari stores,

Starbucks, or other local Coffee Shops are a few of CAO’s direct competitors. With the

highest level form of notification, CAO will face real competition to business owners of

the food trucks that are now on the streets and highways of the city doing business. In

addition, some food carts that sell street food at the side of the road come very

compelling to potential customers.

The weakness of the above-mentioned competitors is their location. Food Carts

may do business in places familiar to them while shops stay in one place only. Food

carts may not be available anytime in the market unless at a specific time. Like for

example, in Roxas Night Market, businesses in food carts are only available at night.

For coffee shops, people who are near to them can conveniently purchase their product,

however, those outlets have a specific time of opening and closing. Unlike CAO, they

will operate 24/7 and will be available in the market anytime, anywhere.

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 MANUFACTURING PLANS

CAO, as a startup business, plans to buy a new truck for their business. The

founders of the CAO thought that food trucks were way more flexible in terms of

schedule. CAO would like to run on the streets of Bankerohan for customers who work

around the wet market; San Pedro City where government employees are in good

numbers; known BPO areas such as Ecoland Drive, Gen. Douglas McArthur Highway,

Talomo, Belisario Heights, Lanang, and Landco Building, Bajada; in the streets of

known hospitals like SPMC in J.P Laurel, Bajada, Davao Doctors in Malvar, and San

Pedro Hospital in Guzman St.; and lastly, areas to have construction going around like

J.P Laurel Corner Acacia St. and Bajada. Being in a business that will rely on the

condition of the motor vehicle, it is very important that the regular check-up of the

condition of the truck be checked thoroughly. As such, CAO will seek the hands and

eyes of experts in vehicular types of machinery. If proven effective, CAO would prefer to

replace some pieces of the truck’s and shop’s machinery according to the standard

components to avoid predictable accidents and solely for the purpose of safer travel.

PRODUCTION LAYOUT PLANS

The production layout will basically include the order assembly table, main entrance

door, counter, burners stove/oven, cooler, sink, hand sink, stocks cabinet, service

counter, freezer, concession window, waste water tank, water heater, freshwater tank,

receiving counter, and serving line. It will be designed based on efficiency and flexibility

to accommodate customers during peak periods. Customers' orders are taken through

the assistance of a waiter or counterman. The waiter or counterman will receive the

customer’s order and write it down on a piece of paper. Once the customer’s order is

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taken, the order will be forwarded to the Barista for production. For payments of order,

CAO will use a printing calculator. Customers who wished to have an itemized receipt

will be given a BIR official receipt. The order receipt and issued official receipts will be

used for inventory and shall not be thrown away. The truck will be operated by a

minimum staff of 1 Barista/Head Manager and a maximum of 2 line staff in addition.

This design allows line staffing to be adjusted to the business volume. Shift changes for

all staff will involve cleanup, restocking, and preparation. All monies will be settled at the

end of each shift. The closing shift will involve designated closing duties that will leave

the vehicle clean and fully prepared for the following shifts.

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