Business Plan

The Hideout
(Name of your Business
or Product/Service)

1. Executive Summary

For many Filipinos, coffee is one of the most popular beverages. In fact,
coffee is consumed on a daily basis by 9 out of 10 Filipino households. Coffee
is rapidly evolving from a household beverage to a lifestyle beverage. Filipinos
have sparked new dynamics in coffee consumption, buoyed by rising income
prospects and an increasing number of international and third-wave coffee
chains in the country.

As the demand for gourmet coffee and other similar products grows, The
Hideout will exist not only to give best coffees and services, but also will
continue to attract local customers in order to build a loyal customer base.

We will provide a high-volume, upscale, quality-driven cafe with a warm,

comfortable atmosphere where customers can sip coffee, eat delectable
pastries, and enjoy the comfortable furniture and free internet access, as well
as free books to read during their visit.

Business Description

The Hideout will offer a unique, welcoming and comfortable environment

in which customers can enjoy delicious food, service, and entertainment at a
reasonable cost.

Customers will have a variety of options at the coffee shop. Various types
of coffee such as espresso, latte, cappuccinos, mocha as well as tea and
other refreshment will be available. We will also offer different pastries such
as croissant, donuts, bagels and specialty breads. Breakfast, lunch, and
dinner will also be served.

The Hideout will provide a build-your-own-drink style of service where we

will have a plethora of toppings and other items to choose from to customize
the taste of the products to the customer's liking.

Milk (skim and soy), caramel, whipped cream, a variety of coffee

creamers, vanilla extract, cinnamon, and other similar products will be among
the toppings and other items available.
Objectives

The company set out to achieve the following goals and objectives:

● Establish brand awareness by increasing the number of new

customers on a monthly basis and retain customer satisfaction.
● Reach profitability within the first year and generate an increased
sales and revenue while maintaining the status quo or lowering
marketing costs.
● Reduce variable costs by improving efficiency.

Potential Market

Aside from the obvious boost that caffeine delivers, the appeal of sipping
a cup of coffee has somehow become a part of today's growing number of
millennials' everyday lifestyle—or, in some cases, an addiction. The most
popular caffeine-infused drinks are frequently found at premium coffee shops,
where they are, of course, provided at a higher price than usual.

According to a Department of Agriculture (DA) Davao Region official,

millennials’ interest in coffee shops is slowly trickling down to small-scale
coffee farmers, as this interest helps cultivate the industry as well. Based on
the data from the Davao City Investment and Promotions Center (DCIPC), the
number of coffee shops in the city increased by 34.45% to 160 in 2017, up
from only 119 in 2016.

The Hideout will be located in Davao City's Downtown area, where Davao
City Central Business District can be found, as well as a variety of commercial
establishments, banks, public markets, shopping malls, medical centers,
hotels, parks, churches, entertainment areas, and some of the city's
landmarks.

The demographics of our projected customers belong to the millennials’

age group of 15-38 years old who spend the most on coffee and coffee
products outside at home.

Marketing Strategies

The Hideout will focus on our marketing efforts on millennials since they
are more active on social media and more likely than their seniors to seek out
a modern coffee shop to spend time after school or during a break from work.
As a result, we will focus significant resources on recruiting college students
from neighboring campuses to our clubs to significantly increase our client
base.

We will hire a manager to promote the business through different social

platforms in order to reach a large segment of our target market. This will
include numerous online advertisements, including those posted on
Facebook, Instagram, Youtube, and other social media sites, as well as blogs
about coffee and coffee products to attract viewers' attention.

The Hideout will create a loyalty card with a reward system that includes
free coffee, products, freebies, and/or product tie-ins in order to foster long-
term client relationships. Items for merchandising will include, but are not
limited to T-shirts, caps, tumblers, and mugs are all available
.
There will be also a discount card which is a substitute coupon for clients
who do not wish to enroll in a loyalty card program to keep clients coming
back for more. Customers will hopefully become more loyal as they continue
to receive good service and eventually enroll in a loyalty card as a result of
this.

The Hideout business plan menu also distinguishes us from other

coffeehouses and gives us a competitive advantage.

● We have six drink categories: coffee, milktea, milkshake, juice, and

cocoa, each with various options. This allows us to offer more diversity
than our competitors while keeping the drink preparation simple.
● We are also capitalizing on the enormous popularity of flavored drinks,
and milktea by providing a product mix that includes products that other
coffeehouses do not carry as well as more known drinks.
● We are the only cafe that offers a diverse selection of gourmet hot
cocoa and milkshake.
● We only sell high-quality fresh juices.

Pricing is extremely competitive in this industry. The cost of freshly

brewed coffee, tea and other beverages varies by only a few cents between
the other coffee shop and the large chains.

The Hideout will use a competition-based pricing uses where we utilizes

pricing data from competitors for similar products to establish a base price for
our own products. Rather than focusing on production costs or item value, this
pricing method will heavily relies on market data. The reason why we rely on
competition-based pricing is straightforward because it's simple, and you have
total control over your market position. Market information gathered on
competitors can provide more insights than just pricing, which we can use to
replicate similar results in our brand.

Coffee and Espresso Drinks:

Regular Large
Name

Espresso Php 110

double

Cappuccino Php 120 Php 150

 Caffe Latte Php 120 Php 150

Caffe Mocha Php 135 Php 165

Caffe Americano Php 110 Php 140

Caramel Macchiato Php 145 Php 170

Flavored Espresso and Frappe Coffee:

Regular Large
Name

Coffee Frappuccino Php 145 Php 160

Mocha Frappuccino Php 150 Php 165

Caramel Frappuccino Php 150 Php 165

Strawberries & Cream Php 165 Php 185

Frappuccino

Green Tea Cream Frappuccino Php 165 Php 185

Chocolate Matcha Latte Php 170 Php 190

Raspberry Mocha Latte Php 170 Php 190

Blubbery Mocha Latte Php 170 Php 190

Milktea:

Large
Name

Cheesecake Panda PHp 170

Cheesecake Oreo Php 160

Cheesecake Matcha Php 175

Cheesecake Chocolate Php 155

Cheesecake Taro Php 185

 Cheesecake and Pearl Milk Php 180
Tea

Cream Cheese Jasmine Green Php 130

Tea

Black Forest Caramel Php 185

Milkshake:

Name Large

Leche Flan Php 145

Black Forest Php 145

Chocolate Mousse Php 160

Coffee Crumble Php 130

Double Dutch Php 145

Cookies and Cream Php 160

Strawberry Php 160

Production Methods

Our basic idea in product selection is to select lines that will provide our
consumers with consistent quality, competitive pricing, and product
satisfaction.

The cafés' fierce competition among Davao cafes has paved the way for
the introduction of many innovative ideas in coffee-making, as well as
dynamic techniques adopted by cafe managers and owners in terms of
marketing and establishing cutting-edge interior designs. Blugre Café, Basti's
Brew, Kasagingan, Kangaroo, Cups & Lowercase, Caffe Vivere, Caffe Palma
Gil, and other restaurants and food chains that provide the same meals and
beverages are some well-known coffee shops in Davao City. Café Firenzo,
Coffee Cat, and Java Jive have been identified as our primary competitors.

The current competition uses lower-quality beans, low-cost equipment,

and inadequate employee training, resulting in variable product quality and
disgruntled customers.
 The Hideout are passionate about coffee and intend to focus on
constantly offering the finest quality product and best services among coffee
shops. We believed that we would be uniquely suited and positioned to
provide the best coffees and service, and that we would be able to make a
number of improvements in the future years.

Our employees who prepare coffee (baristas) are also well-trained and
experienced. To deliver a clearly superior result, we use only the best quality
equipment and ingredients.

Using a basic coffee machine, all coffee will be made black, and the
barista will then follow the customer's requests for what they want in their
drink. There will also be drink suggestions on the menu to assist customers
who are new to the coffee world.

For our coffee supplies, we will be partnering with Coffee Grounds Davao,
one of the best coffee coffee supplier in Davao Area.

Customers will also be enticed to take photos and post them on social
media by using our custom-designed and recyclable coffee cups to promote
the product.

For the logo designs, we will also going to partnered with Marketing Media
Cloud (MMC) which is a Davao-based inbound marketing and growth-driven
design agency. They assist local and international businesses, as well as
small and medium-sized enterprises (SMEs.)

In addition, the company has obtained intellectual property (IP) rights for
its logo, label, and brand name. With a registered trademark in hand, the we
The Hideout will now has exclusive rights to use it in the Philippines for a
minimum of ten years.

Our design style is also unique among coffeehouses, with an affluent

"Cote d'Azur" feel. Stained glass decorations, art glass work, Mediterranean
Riviera style furnishings, and alfresco eating are all included.