Xavier University – Ateneo de Cagayan

Corrales Avenue, Cagayan de Oro City

BaraKafé
“Brewing you home to Filipino coffee.”
Puli, Carmen

In partial fulfillment of
ENTREPRENEURSHIP

Performance Task
Business Plan

11 Kugler A – Group 3C
Malinao, Einnor Jude
Manlegro, Maria Lina Zenaida
Ngo, Robert
Pelagio, Rein Noel
Ranara, Crisbern Doroty
Salubre, Shaznae Micholle
Ubaub, Paula Gianmarie
Vasquez, Rosarienne Dawn

November 12, 2021

 TABLE OF CONTENTS

Page

EXECUTIVE SUMMARY 1

ORGANIZATION AND MANAGEMENT 4

Company Name 4
Company Logo 4
Address 4
Vision and Mission 7
Key Personnel 7
Organizational Chart 9
Type of Ownership 9
Capital 10
Salary 10

PRODUCTION PLAN 11
Purpose of the Product 11
Products Unique Feature 11
Production Process 11
Distribution Logistics 14
Regulatory and Other Compliance 14

MARKETING PLAN 18

Market Analysis 18

Marketing and Sales Strategies 23

Product Characteristics or Feature 25

Pricing Policy and Strategy 25
Sales projections 26

FINANCIAL PLAN 27

Projected Cost 27

Annual Marketing Expense 28

Annual Administrative Expense 28

Annual Production Cost 29

Cost of Goods 29

Administrative Expense/Salaries and Wages 30

Initial Investment 30

Capital 30

Financial Statements 30
A. Executive Summary

I. Business Description

BaraKafé unravels the wonders of the Philippines’ very own Kapeng Barako for people
to explore and savor the wondrous taste of the local Filipino coffee flavor. Our coffee
products are made from Kapeng Barako beans, a type of Liberica Bean, the pride of
Barakafé. We support locally sourced produce to bring a unique tasting homebrewed coffee
to everyone’s fingertips. With a range of interesting and customizable blends, people will
certainly enjoy delving into a unique and spiced up coffee experience. Our coffee will benefit
you by keeping you awake and alert all throughout the day. Therefore, increasing your
energy, thinking abilities, and productivity. Once you take a sip of our coffee, homebrewed
will never taste and feel the same again. BaraKafé’s striking and extraordinary array of
blends will serve people the comforting aroma of home.

Our target market are young adults and working individuals. Aside from being capable
of purchasing our products, they would most certainly enjoy sipping our coffee and reaping
its benefits. Our coffee will boost their energy levels, increase reaction time, and improve
productivity and brain function. Therefore, assisting them in their daily activities and
enhancing their everyday performance.

BaraKafé will initially operate as a homebased coffee outlet in the residence of Ms.
Shaznae Micholle Salubre at Puli, Carmen. It is the most strategic, desirable, and
accessible location due to its close proximity to both the uptown and downtown area where
most people will be. It is close to our target market who work in both areas. to Aside from
our target market, Carmen is also packed with people of all ages who can also try and
purchase our coffee. With the location being in Carmen, delivery to nearby consumers is
easier and cheaper. Our store opens at 7:00 A.M. in the morning and closes at 5:00 P.M. in
the afternoon.

II. History

The business was conceptualized by eight comrades from Xavier University Senior
High School who were inspired to channel their creativity and establish a business to serve
the demands of the market and be of service to the people. For quite some time, they have
exerted a great deal of effort to seek and settle with the right product that would greatly
intrigue and benefit not just them but the people surrounding them. After careful deliberation,

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they have arrived to a decision to venture into coffee business. With much luck, they were
guided by a great mentor and entrepreneur who has taught them how to successfully lay out
and actually begin their business. The comrades were enlightened. After thorough research,
they have discovered the wonders of the underemphasized uniqueness of the Philippines’
very own local coffee beans, “Kapeng Barako.” The young entrepreneurs eagerly welcomed
the idea of supporting and celebrating Filipino coffee, hence, the creation of BaraKafé on
October 2021.

III. Product or Service Overview

1. #MadeEspressiallyForYou
A steaming-hot espresso, brewed with Barako beans for that iconic BaraKafé taste.
This drink is topped with steamed milk to balance creaminess and the taste of strong
coffee. #MadeEspressiallyForYou is available in 8 oz. and 12oz. It comes in a paper
cup with a sleeve to avoid too much heat on the customer’s hands.
2. #ColdKaayoBai
A cold beverage concocted with both espresso from Barako beans and milk. It comes
in a plastic cup in two sizes: 8oz ad 12oz.
3. Build Your Own Barako
A customizable drink created from the variety of syrups, milk, fruit flavors, and add-ons
we have selected from the results of our survey. The customers can mix and match
their own ingredients to make their dream blend. They can exercise their creativity in
a way that celebrates Filipino culture, all while still satisfying their taste buds.

Our coffee satisfies the need of the people to drink coffee. Based on our market survey,
people aged 19 and above drink coffee daily to jump-start their day, making them our target
market. This also increases the demand for our product as many people require it to
function and become productive all throughout the day. Moreover, consumers would most
likely prefer our coffee as it is unlike the usual coffee. It is stronger and more striking yet
still delicious at the same time. Most importantly, our product is unique as it is made from
Philippine-grown Barako Beans. We support farmers and revive local produce to bring
Filipinos a delicious cup of coffee.

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IV. Financial Overview

BaraKafé company’s capital is P143,800.00 allotted for pre-operational expenses,

marketing expenses, administrative expenses, and the production cost for the first two
weeks of operation. BaraKafé allocates a total of P28,000.00 for its three employees’
monthly salaries. The company is expected to produce a total of 180 cups of coffee per
day, consisting of 30 cups per type and per size. Each type and size have varying prices
of P50.00, P60.00, P38.00, P46.00, P108.00, and P130.00. Given these, BaraKafé is
expected to reach P287,760.00 worth of sales in a month, which is equivalent to 22
operation days. And for the first year, the company shall accumulate a total sales of
P3,453,120.00.

V. Future of the Business

BaraKafé in 5 years will be a booming business with people patronizing our coffee
product. We would have an actual place where customers will be able to dine in with great
ambiance. More choices will be added to the menu and more ingredients will be available
to serve more unique customized drinks customers might order. In 5 years, different types
of pastries and desserts, all containing the flavors of Kapeng Barako will be made available
on our menu. Sooner, we will be establishing more branches to satisfy the people’s coffee
needs.

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B. Organization and Management

I. Company Name
BaraKafé
BaraKafé, is a combination of the words “Barako”, which symbolizes our pride, the
Kapeng Barako, and “café”, which indicates what our business is.

II. Company Logo

Our logo includes a leaf, symbolizing growth,

stability, and the soothing comfort of home - our local
coffee flavor. It is surrounded by two coffee beans,
representing our product and the local Kapeng
Barako beans. It features our company name and
its baybayin translation, giving the logo a very
Filipino feel. And, written on its side is the founding
year of our company.

III. Business Address

BaraKafé will initially operate as a homebased coffee outlet in the residence of Ms.
Shaznae Micholle Salubre at Puli, Carmen.

Physical Evidence
While operating at Puli, Carmen, orders and inquiries will be entertained through our
website, Facebook page, and hotline:

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IV. Mission and Vision
Mission: BaraKafé provides the locals with the best tasting and authentic Barako
coffee sourced from the provinces of Batangas and Cavite. We work to satisfy the cravings
of local coffee lovers through flexible coffee recipes that suit their tastes—sharing a new and
great experience in the form of a remarkable cup of coffee.

Vision: BaraKafé aims to bring quality Filipino coffee service products around the
country and even around the world. We aim to be the leading coffee chain in the Philippines,
guided by the principles of quality, patriotism, integrity, service, and bonds, to create a better
everyday life for our beloved customers.

V. Key Personnel

Member’s Name Company Position Roles and Responsibilities

She oversees the overall

Maria Lina Zenaida Manlegro
business functions, activities,
and operations. She manages
the staff, monitors the progress
of each division, and leads all
General Manager
the members to reaching their
business goals. Furthermore,
she trains division heads, helps
in strategizing, and formulating
regulations.

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 She reports financial activities
and analyzes financial data.
She is responsible for
budgeting money and
Crisbern Doroty Ranara Finance Manager
monitoring cash flow. She
gathers and interprets financial
information to make forecasts
and predict trends.

She supervises the production

process and operations. She
creates production timelines
Paula Gianmarie Ubaub Production Manager and maintains quality control.
She ensures the equipment are
working well and processes are
proceeding smoothly.

He assures that the product

meets the company's vision
and objectives He is in charge
of bringing to the market a
unique product that meets the
Rein Noel Pelagio
Product Manager consumers’ demand and offers
a feasible business opportunity.
He ensures that the company
develops the right product for
the people.

She is in charge of assessing

market trends, reviewing and
optimizing marketing and
pricing strategies, and
introducing new business
Rosarienne Dawn Vasquez Marketing Manager
leads. She also oversees
branding, advertising, and
promotional activities to further
increase brand awareness and
market share.

She is in charge of managing

organizational sales,
establishing sales, revenue,
Shaznae Micholle Salubre Sales Manager and expense management
plans, setting and meeting
sales targets, and tracking and
reporting sales goals.

Einnor Jude Malinao Purchasing Manager He is in charge of designing

and implementing purchasing

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 strategies. He is also
responsible for procuring
resources, maintaining
supplier relations, which
includes negotiating contracts,
prices, and schedules. He
keeps supplier database as
well as the purchasing records.

He is in charge of staff
recruiting and selection. He
plans trainings for all of the
employees to ensure that they
Human Resource
Robert Ngo continue to improve, engage,
Manager
and be motivated in their work.
He also devises wage
structures and benefit
programs.

VI. Organizational Chart

VII. Type of Ownership

General Partnership – BaraKafé, established through a business agreement between
8 individuals, is categorized under the ownership general partnership. All partners are in
accord to share the business’ assets and profits, including the responsibility for legal liabilities
and financial obligations. Losses and gains are equally divided among each partner. In the
event the company is sued, every partner is held accountable.

All individuals involved in BaraKafé’s general partnership ensure transparency, loyalty,

integrity, equality, and faith to provide the people the best coffee experience there is. Each
one aims to exert his utmost efforts to fulfill the company’s endeavors successfully.

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VIII. Capital
Name Capital Contribution
1. Maria Lina Zenaida Manlegro (Investor) P17,975.00
2. Crisbern Doroty Ranara 17,975.00
3. Paula Gianmarie Ubaub 17,975.00
4. Einnor Jude Malinao (Investor) 17,975.00
5. Rein Noel Pelagio (Investor) 17,975.00
6. Shaznae Micholle Salubre (Investor) 17,975.00
7. Rosarienne Dawn Vasquez (Investor) 17,975.00
8. Robert Ngo (Investor) 17,975.00
Total P143,800.00

IX. Salary of Employees Per Month

Employee’s Name Salary/ Month
Paula Ubaub (Production Manager) P9,500.00
Shaznae Salubre (Sales Manager) 9,500.00
Cashier 9,000.00
Total P28,000.00

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C. Production Plan
I. Purpose of the Product to Your Customers
The main purpose of our product is to satisfy the people’s coffee needs. It will jump-
start their day by waking and energizing them through caffeine. It will boost their energy
levels, thinking abilities, brain function, and their overall productivity.

II. Products’ Unique Feature Over Existing Products

BaraKafé’s products are uniquely Filipino as we use locally grown and sourced Kapeng
Barako beans, which cafes in the city or even the country scarcely use. Aside from that, our
coffee is fun and creative as customers are not limited to a given menu. They can build their
own desired coffee according to their taste and ingredient preferences. Most importantly,
Barakafé’s coffee products, from its name “Barako”, will surely enliven you and keep you
awake like no other coffee can.

III. Production Process

Direct, Materials, Direct Labor, Production Cost
8oz #MadeEspressiallyForYou

Material Quantity/Unit Cost Total Cost/Unit

Barako Espresso 78mL P3.00/44mL P5.31
Whole Milk 157mL P0.64/10mL 10.04
Total Direct Materials / Unit P15.35

12oz #MadeEspressiallyForYou

Material Quantity/Unit Cost Total Cost/Unit

Barako Espresso 118mL P3.00/44mL P8.04
Whole Milk 237mL P0.64/10mL 15.17
Total Direct Materials / Unit P23.21

8oz #ColdKaayoBai
Material Quantity/Unit Cost Total Cost/Unit
Barako Espresso 59mL P3.00/44mL P4.02
Water 117mL 0.024/mL 2.81
Ice 2oz P0.68/oz 1.36
Total Direct Materials / Unit P8.19

12oz #ColdKaayoBai

Material Quantity/Unit Cost Total Cost/Unit

Barako Espresso 99mL P3.00/44mL P6.75
Water 197mL 0.024/mL 4.73
Ice 2oz P0.68/oz 1.36
Total Direct Materials / Unit P12.84

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8oz Build Your Own Barako

Material Quantity/Unit Cost Total Cost/Unit

Barako Espresso 59mL P3.00/44mL P4.02
Ice 2oz 0.68/oz 1.36
Milk 59mL 1.66/10mL 9.79
Syrup 20mL 6.84/10mL 13.68
Fruit Flavoring 30mL 3.00/10mL 9.00
Add-ons 30mL P3.80/10mL 11.40
Total Direct Materials / Unit P49.25

12oz Build Your Own Barako

Material Quantity/Unit Cost Total Cost/Unit

Barako Espresso 99mL P3.00/44mL P6.75
Ice 2oz 0.68/oz 1.36
Milk 99mL 1.66/10mL 16.43
Syrup 25mL 6.84/10mL 17.1
Fruit Flavoring 30mL 3.00/10mL 9.00
Add-ons 30mL P3.80/10mL 11.40
Total Direct Materials / Unit P62.04

NOTE ON THE COMPUTATION:

How did we obtain our Total Cost/Unit?
Ex. 12oz Build Your Own Barako – Barako Espresso
99 mL / 44 mL = 2.25 x 3.00 = P6.75

Direct Labor
Monthly Wage Total Products Produced/Month Direct Labor/Unit
11,246.40 3,960 P2.84
11,246.40 3,960 2.84
Total Direct Labor P5.68

Production Cost
Production Cost
Prices No. of Units/Month TOTAL
per Unit
Direct Materials
8 oz #MEFY P15.35 660 P10,131.00
12 oz #MEFY 23.21 660 15,318.60
8 oz #CKB 8.19 660 5,405.40
12 oz #CKB 12.84 660 8,474.40
8 oz BYOB 49.25 660 32,505.00
12 oz BYOB 62.04 660 40,946.40
Direct Materials Total 112,780.80
Direct Labor P5.68 3,960 22,492.80
Factory Overhead
Procurement/
Transportation 2,500.00
Electricity 4,000.00
Water 2,500.00
Packaging
Paper Cup + Sleeve 8.20 1,320 10,824.00

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Stirrer 0.50 1,320 660.00
Napkin 0.25 7,380 1,845.00
Plastic Cup 2.62 2,640 6,916.80
Straw 1.00 2,640 2,640.00
House/Location Rent 2,000.00
Factory Overhead Total 33,885.80
TOTAL P169,159.40
No. of Units per Month /3,960
Total Production Cost/Unit P42.72

Production/
Operation Process
Materials Needed Time
Production
Process Production Process Description
Steps
Purchase local ingredients at
Step 1 1.5 hrs
supplier/grocery, then store appropriately

Sterilize and prepare equipment, work Dishwashing liquid,

Step 2 20 mins
surface, and other tools for use sponge, dishcloths
Milk jug, coffee
Once an order has been placed, prepare the
Step 3 machine, dry and liquid 2 mins.
necessary ingredients
measuring cups
Pour Barako grounds into the group head
Step 4 that has already been fitted with a coffee machine 1 min.
portafilter and press down until compact
Add water to hot water tap and while it heats
Step 5 up, insert group head into designated coffee machine 1 min
slot and twist to lock
Brew the coffee. In the meantime, measure Steel jug, liquid
Step 6 6 mins
out milk (if needed), and pour into steel jug measuring cup

Churn the milk using the steam wand coffee machine, steam
Step 7 2 mins
attachment (for hot drinks only) wand tip, steel jug

Add ice into disposable cup and drizzle

coffee machine, syrup
Step 8 syrup around sides if needed, then pour milk 2 mins
bottle, disposable cup
in
Once the coffee is finished, pour measured
Step 9 amount into cup, reserving the excess for the coffee machine 1 min
next order

Disposable cup, dry

Step 10 Top with add-ons if applicable 1 min
measuring cups

Seal with lid and serve to Plastic lid, delivery

2 mins
Step 11 customer with sleeve, napkin, straw, or vehicle, napkin, straw,
minimum
stirrer stirrer, coffee sleeve

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 IV. Distribution Logistics

We plan to offer our services both in-store and online. Ideally, the layout of our location
would have booths for the cashier and pick-up. Prior to pick-up they have already placed their
order online. When their order is not yet ready, they can sit at the available chairs while waiting
for their order to be called.

Alternatively, they can opt to have their drinks delivered, given that they shoulder the
delivery fee. They may order via the Facebook page, website, or hotline, and payment can be
made upon delivery or online. Customers must also fill out an order form with their name,
complete address, and contact number to ensure that the products are delivered efficiently.
We will make use of a third-party company that will allow customers to pay with cash upon
delivery. As we are based in Cagayan de Oro City, we hope to use Maxim as they provide low
cost yet quick and excellent service. For the fee, it will depend on the customer’s location and
mode of payment.

Mode of Payment
If they want to pay with the cash-on-delivery option, they will be the one to shoulder
the fee along with the cost of their order. Should they pay online (Gcash), we will be the ones
to reimburse the fee to the rider once the transaction has been confirmed.

V. Regulatory and Other Compliance

New Business Amount
Bureau of Internal Revenue (BIR) Permit P530.00/year
Business Permit/Mayor’s Permit 500.00/year
Department of Trade and Industry (DTI) Permit 500.00/5 years
Barangay Clearance 500.00/year
Sanitary Permit 15.00/year
Food and Drug Administration (FDA) LTO Permit 4,040.00/2 years
Website Domain 800.00/year
Total Expenses P6,885.00

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D. Marketing Plan
I. Market Analysis
48 (82.4%) respondents of our Market Survey are 16-18 years old, 13 (17.6%) are above 31,
9 (12.2%) are 19-30, and 4 (5.4%) are below 16 years old.

Survey Question 1: If you are 19 and above, how much is your monthly income?

48 of the recipients (56.4% or ) have a monthly income of P5000-P15000 while, 11

(28.2%) of the respondents earn P36000 and above in a month. Given this data, it is safe to
say that people who belong in this age bracket are capable of purchasing our coffee. As their
income is enough to allot a budget for coffee from cafes, they can be our target market.

Survey Question 2: If you’re a student, how much is your weekly allowance?

48 (84.2%) of the recipients have a weekly allowance ranging from P500-P1000. 5 of

the respondents (8.8%) receive P2100 and above, followed by 4 (7%) of the students receiving
P1000-P2000 as their total weekly allowance. The majority of the students will only be able to
afford a very affordable cup of coffee given their limited budget. With this, we can infer that
students, especially those who belong in the 16-18 years old age bracket will not be our main
target market.

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Survey Question 3: Do you like your coffee hot or cold?

When it comes to hot and cold coffee, 46 of the respondents (63.5%) prefer hot.
However, there is only a very slight difference with the number of people who chose cold which
are 45 (60.8%). Therefore, we will be serving both hot and cold coffee to satisfy our customers’
preference.

Survey Question 5: What coffee flavor do you prefer?

Based on the recipients answers on the survey, 47 of them answered Caramel (63.5%)
as the flavor they prefer. 45 answered Vanilla (60.8%), and 36 of them preferred Mocha
(48.8%) as well. Therefore, we will focus on these flavors to sell in our business since it is
what they want.

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Survey Question 6: What fruit flavor would you want to blend with your coffee?

41 of the respondents (55.4%) chose Strawberry as the fruit flavor they want to
incorporate in their drink. This was followed by Peppermint with 8 respondents (10.8%) and
then Lemon with 6 respondents (8.1%). With this, we will be offering Strawberry, Peppermint,
and Lemon flavors if they wish to blend fruity tastes with their coffee.

Survey Question 7: How much is your budget for a cup of coffee?

49 (66.2%) had a budget of P130 - P150 for a cup of coffee. This is followed by 14
(18.9%) of the respondents having P151- P170 and 4 respondents for both P171- P190 and
P230 above as their budget for a cup of coffee – recipients with these responses belonged to
the age bracket 19 and above. With this, we can conclude that our coffee shall not go beyond
the price of P150 pesos.

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Survey Question 8: How much are you willing to pay for a 12oz cup of coffee?

31 (41.9%) coffee drinkers opt to pay P60-P70 for a 12 oz cup of coffee. Then, 26 of
them (35.1%) can pay P80-P90. This shows that they prefer to purchase coffee below P90-
P100. This can be our target price range for a plain cup of coffee with no additional milk,
syrups, and other extras. Moreover, if we are able to sell our plain coffee at this price, it can
be an advantage for us since the cheaper the product, the higher the number of people would
catch interest and promote our products.

Survey Question 9: On average, how often in a week do you purchase coffee from cafes?

On average, in a week, 42 (56.8%) coffee drinkers can purchase 1-2 times of coffee
from cafes. Additionally, there are only 12 (16.2%) coffee drinkers that can purchase coffee 3-
4 times. To sum up, a lot of our recipients are drinking coffee making it a good thing for our
business enterprise.

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Survey Quest ion 10: Would you want your coffee to be delivered?

41 (55.4%) of our survey respondents prefer to have their coffee delivered. On the
other hand, 33 (44.6%) of the participants would want to pick their coffee up themselves. In
that case, we can ensure that our products will attract more customers because of the
accessibility of our products. Customers can opt to pick-up their drinks or have them delivered
with a minimal fee (subject to change depending on the location of the buyer).

Survey Question 11: With the little idea of what our product will be, how likely will you
purchase coffee from BaraKafé?

The survey revealed that 27 (36.5%) of the respondents are likely, and most likely
(36.5%) to purchase products from BaraKafe. 14 of them were undecided (18.9%), and 3 of
each were both less likely (4.1%) and unlikely (4.1%). Therefore, most people responded
positively to our business, gearing us to be more successful in our endeavors.

From the market survey analysis, we can conclude that our coffee business is highly
feasible and predictably successful as there many who need and want coffee. Moreover, upon
our computation and planning, their price, drink, and mode of delivery preference were met.
We, BaraKafé, will ensure to further meet the expectations of the consumers to provide them
the best Filipino coffee experience.

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II. Marketing and Sales Strategies
Month Marketing Activities Purpose Cost
To attract a wide range of P50.00
Online Posters local costumers or
October
Computer Access + customers from different
2021 Data for Upload places to encourage them
to try our products.
A limited-edition cup that 250.00
will be used only for the
first 125 cups to be sold
Halloween Cup in November. This will
November Cup Printing
– P2.00/cup
make customers want to
our coffee as there is
something “fun” and
“special”.
We will offer gift cards 300.00
that people can purchase
and give to their friends
Christmas Gift Card
December and loved ones as
Card Printing Expense
Christmas presents. In
turn, this will increase our
holiday sales.
We will be giving out 15 220.00
New Year Discount discount coupons (₱10
January Coupons off) to welcome the new
2022 P10.00 x P15.00 = P150.00
Printing Expense: P70.00 year and attract more
customers.
There will be a few free 350.00
Valentine’s Day drinks given to couples
Free Drinks who follow certain
February x7 8oz #Made guidelines. This will
EspressiallyForYou – attract people to buy from
P350.00 as a free drink is very
appealing.
Loyalty coupons will 300.00
Loyalty Coupons encourage customers to
March (Buy 9 take 1) buy more products from
Card Printing Expense us. Therefore increase
our sales.
By allowing consumers to 100.00
Video Promotions view a glimpse of our
non-professional production process, they
April
video, to be filmed will surely be enticed and
by key personnel potentially buy our
products.
Tarpaulin is a convenient 200.00
item because it lasts
Tarpaulin longer, which means we
May 2x3ft Tarpaulin can promote our products
Printing – P200.00 for months; this helps us
save money and attract
customers.

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 There will be ₱ 20 off 200.00
discount for the first ten
Month of customers in honor of the
June Independence Day country’s Independence
Discount Day. This is to once again
attract customers through
discounts.
Loyalty coupons will 300.00
Loyalty Coupons encourage customers to
July (Buy 9 take 1) buy more products from
Card Printing Expense us. Therefore, increasing
our sales.
To attract a wide range of 50.00
Online Fiesta Posters local costumers or
August Computer Access + customers from different
Data for Upload places and encourage
them to try our products.
To make our café more 80.00
Online Posters well-known locally.
September Computer Access +
Data for Upload
Therefore, more people
will try our products.
Total P2,400.00

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 III. Product Characteristics and Feature
Features Benefits
You can enjoy a delicious cup of coffee,
It is made from a locally sourced bean,
while experiencing the taste of Filipino
Kapeng Barako, a variety of Liberica Beans.
coffee.
Our products can certainly boost your
It has a good amount of caffeine and a
energy levels and stimulate your brain,
unique, woody coffee flavor.
keeping you alert and productive.

You will enjoy your drink as you handpicked

You can be fun and creative with your drink
the ingredients according to your taste and
as you choose the contents of your coffee.
preference.

IV. Pricing Policy

Product Production Cost/Unit Mark-up (70%) Selling Price

8oz #Made
P50.31
Espressially P29.59 P20.72
50.00
For You

12oz #Made
63.69
Espressially 37.45 26.24
64.00
For You

8oz #Cold 38.13

22.43 15.70
KaayoBai 38.00

12oz #Cold 46.04

27.08 18.96
KaayoBai 46.00

8oz Build Your 107.93

63.49 44.44
Own Barako 108.00

12oz Build Your 129.68

P76.28 P53.40
Own Barako P130.00

NOTE ON THE PRICE:

Production Cost/Unit + 70% Mark-up = Selling Price
BOLD numbers are the actual and final prices. We rounded off the results of our calculations to avoid
fractional prices.

Pricing Strategy
Our products are classified into three: Hot Drinks (#MadeEspressiallyForYou), Cold
(#ColdKaayoBai), and Build Your Own. Each of them has designated prices depending on the
cup sizes that the customer orders. We employed the cost-plus pricing strategy by taking our
total production cost and adding a 70% mark-up.

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V. Sales Projections
Oct Nov Dec Jan Feb Mar
Product
2021 2021 2021 2022 2022 2022
8oz #MadeEspressiallyForYou, 12oz #MadeEspressiallyForYou, 8oz #ColdKaayoBai, 12oz
#ColdKaayoBai, 8oz Build Your Own Barako, 12oz Build Your Own Barako
Price P436.00 P436.00 P436.00 P436.00 P436.00 P436.00
Cups Sold 660 660 660 660 660 660
Total P287,760.00 P287,760.00 P287,760.00 P287,760.00 P287,760.00 P287,760.00

Apr May Jun Jul Aug Sep

Product
2022 2022 2022 2022 2022 2022
8oz #MadeEspressiallyForYou, 12oz #MadeEspressiallyForYou, 8oz #ColdKaayoBai, 12oz
#ColdKaayoBai, 8oz Build Your Own Barako, 12oz Build Your Own Barako
Price P436.00 P436.00 P436.00 P436.00 P436.0 P436.00
Cups Sold 660 660 660 660 660 660
Total P287,760.00 P287,760.00 P287,760.00 P287,760.00 P287,760.00 P287,760.00

Grand Total P3,453,120.00

NOTE ON THE PRICE:

BaraKafé has 6 products with different prices. To make it less complicated, we took the sum of the
prices of all products since all of them also have the same number of cups to be sold per month, which
is 660. Here is the breakdown of the P436.00 price listed above:

P50.00 + 64.00 + 38.00 + 46.00 + 108.00 + 130.00 = P436.00

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E. Financial Plan
I. Projected Cost

Business Permit and Licenses TOTAL

Bureau of Internal Revenue P530.00
(BIR) Permit
Business Permit/ 500.00
Mayor’s Permit
Department of Trade and 500.00
Industry (DTI) Permit
Barangay Clearance 500.00

Sanitary Permit 500.00

Food and Drug Administration 4,040.00
(FDA) LTO Permit
Website Domain 800.00

TOTAL P6,885.00
Office Supplies

1 pc. Thermal Receipt Printer P721.00 P721.00

1 box Receipt Paper 628.00 628.00

2 pcs. Record Book 22.00 44.00

1 box Pen 55.00 55.00
Phone and Data 12,000.00 12,000.00
1 Cash Drawer Box Case
2,585.00 2,585.00
Storage w/ Printer
1 Standard Calculator P93.00 93.00
TOTAL P16,126.00
Kitchen Tools and Equipment

6 Milk Jugs P143.50 P861.00

1 dozen Scoops 420.00 420.00

1 dozen Shot Glasses 112.00 112.00

1 pc. Can Opener 127.00 127.00

2 measuring cups 25.00 50.00

1 bottle Dishwashing Liquid 50.00 50.00

Dishwashing Sponge
50.00 50.00
and Cloths
6 spatulas P69.00 414.00

TOTAL P2,084.00

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 Machine and Equipment
2 pcs. Coffee/Espresso
Machine with Frother and P15,000.00 P30,000.00
Steamer
Refrigerator P4,000.00 4,000.00

TOTAL P34,000.00

Furnitures and Fixtures

2 pcs. table P550.00 P1,100.00

4 pcs. chair P440.00 1,760.00

TOTAL P2,860.00

Total Pre-Operating Expense P61,915.00

II. Annual Marketing Expense

Month Marketing Activities Cost (Php)
Oct 2021 Online Posters P50.00
Nov 2021 Halloween Cup 250.00
Dec 2021 Christmas Gift Card 300.00
Jan 2022 New Year Discount Coupons 220.00
Feb 2022 Valentine’s Day Free Drink 350.00
Mar 2022 Loyalty Coupons 300.00
(Buy 9 take 1)
Apr 2022 Video Promotions 100.00
May 2022 Tarpaulin 200.00
Jun 2022 Month of Independence Day Discount 200.00
Jul 2022 Loyalty Coupons 300.00
(Buy 9 take 1)
Aug 2022 Online Fiesta Posters 50.00
Sep 2022 Online Flyers 80.00
Total P 2,400.00

III. Annual Administrative Expense

Month Salary
Oct 2021 P28,000.00
Nov 2021 28,000.00
Dec 2021 28,000.00
Jan 2022 28,000.00
Feb 2022 28,000.00
Mar 2022 28,000.00
Apr 2022 28,000.00
May 2022 28,000.00
Jun 2022 28,000.00
Jul 2022 28,000.00
Aug 2022 28,000.00
Sep 2022 28,000.00
Total P336,000.00

28
IV. Annual Production Cost

Number of Cups to
Number of Cups to be
Month No. of Selling Days be Produced Per
Produced Per Day
Month

Oct 2021 22 180 3,960

Nov 2021 22 180 3,960
Dec 2021 22 180 3,960
Jan 2022 22 180 3,960
Feb 2022 22 180 3,960
Mar 2022 22 180 3,960
Apr 2022 22 180 3,960
May 2022 22 180 3,960
Jun 2022 22 180 3,960
Jul 2022 22 180 3,960
Aug 2022 22 180 3,960
Sep 2022 22 180 3,960
Total Annual Production in Cups 47,520
Total Annual Production in Cups

TOTAL ANNUAL PRODUCTION IN CUPS 47,520

ANNUAL

September 2022 47,520

September 2023 52, 272

September 2024 57,499

September 2025 63, 249

September 2026 69, 573

INCREASE BY 10% PER YEAR (assumption for sales increase)

V. Cost of Goods Sold

Product Production Cost/Unit

8oz #MadeEspressiallyForYou P29.59
12oz #MadeEspressiallyForYou 37.45
8oz #ColdKaayoBai 22.43
12oz #ColdKaayoBai 27.08
8oz Build Your Own Barako 63.49
12oz Build Your Own Barako 76.28
TOTAL P256.32
Multiply: No. of Units to be Sold /Day 30
Cost of Goods Sold /Day P7,689.60
Multiply: No. of Selling Days/Month 22
Cost of Goods Sold /Month P169,171.20

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 VI. Administrative Expense/Salaries and Wages
Employee’s Name Salary/ Month
Paula Ubaub (Production Manager) P9,500.00
Shaznae Salubre (Sales Manager) 9,500.00
Cashier 9,000.00
Total P28,000.00

VII. Initial Investment

Pre-Operating Expenses P61,915.00
Marketing Expense (October 2021) 50.00
Administrative Expense (October 2021) 28,000.00
Cost of Goods Sold 169,171.20
Total P259,136.20

VIII. Capital

Pre – Operating Expense + Administrative Expense + Marketing Expense + 1st Week Production Cost = Capital

Name Capital Contribution

1. Maria Lina Zenaida Manlegro (Investor) P17,975.00
2. Crisbern Doroty Ranara 17,975.00
3. Paula Gianmarie Ubaub 17,975.00
4. Einnor Jude Malinao (Investor) 17,975.00
5. Rein Noel Pelagio (Investor) 17,975.00
6. Shaznae Micholle Salubre (Investor) 17,975.00
7. Rosarienne Dawn Vasquez (Investor) 17,975.00
8. Robert Ngo (Investor) 17,975.00
Total P143,800.00

IX. Financial Statements

Projected Income Statement

30
Projected Income Statement (5 Year)

Projected Statement of Cash Flow

Projected Statement of Cash Flow (5 Year)

31