Cafe Aromagic

Chapter I
INTRODUCTION
Coffee has become the most consumed beverage around the world
(Weinberg & Bealer, 2001). There is a vast increase of coffee consumption in the
lifestyle of the urban population (Kasnaeny, Sudiro, Hadiwidjojo, & Rohman,
2013). Surprisingly, food and beverages rank number one on tourist spending
while they travel (Shenoy, 2005). In fact, most tourists will dine out when they
travel (Wolf, 2006). This phenomenon leads to the potential of coffee shops in
leisure destinations (Shenoy, 2005); including THE COFFEE SHOP
EXPERIENCE FOR ALL PJAEE, 17 (7) (2020) 2851 Jakarta that is experiencing
a new wave of coffee shops (Karina, 2016). The coffee shop complies not only as
a place to drink coffee, but also serves as a social place (Hung, 2012) as well as
a working space (O'Connor, 2018).
Café Aromagic stands out as a visionary endeavor, ready to fascinate and
fascinate the palates and sensations of coffee lovers and enthusiasts alike, in a
time when coffee culture has advanced beyond simple caffeination and
transformed into a multisensory experience. This feasibility study begins a
thorough investigation of Café Aromagic, a novel coffee business idea that
combines the magic of fragrances with the spirit of a café.
In recent years, the coffee business has witnessed a dramatic transition.
Instead of just a simple beverage, it has become a crucial component of the
modern lifestyle, where customers want more than just a cup of coffee. In this
thriving and fast-paced sector, Café Aromagic aims to reinvent the idea of the
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coffee shop. The name "Café Aromagic" wonderfully captures the essence of the
humble company. The word "café" represents our origins as a coffee shop. In
contrast, the term "aromagic" conjures up the promise of an enchanted and
aromatic experience that guests may look forward to when they enter the great
facility.
According to the Third Place Theory, beyond the home and workplace
boundaries, Ray Oldenburg highlights the value of welcoming, shared places.
Café Aromagic strives to be that welcoming "third place" where patrons may
unwind, mingle, and enjoy top-notch coffee. Second, with Experience Economy,
the Experience Economy hypothesis, advanced by Pine and Gilmore, contends
that firms can prosper through creating memorable experiences. This hypothesis
is supported by Café Aromagic, which makes a multimodal coffee experience
where the scent, atmosphere, and taste all work together to leave a lasting
impression. For the last and third theory, this company is based on branding and
sensory marketing theories because it understands how odor, sight, and taste
may significantly impact consumer perceptions and loyalty.
Café Aromagic choose partnership for this study. The group is consisting
of 9 members namely Abrin, Kate Hylene P., Alzate, Roger S., Bagni, Abegail B.,
Espinoza, Angeline M., Fabro, Zayin, Manzano, Trixie Ann L., Oliveras, Andrea,
Tingco, Rosalinda, Urbiztondo, Engilbert. In a partnership, the responsibilities
and decision-making are shared among the partners. This can be beneficial for a
cafe as it allows for a pooling of resources, skills, and expertise. The proposed
business will be located in McArthur Highway Canarvacanan Binalonan
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Pangasinan.
The proprietors conducted this business because of the extensive market
research prioritizing the growing demand for premium coffee. Not only that but
the business is also offering a unique proposition for the crowded coffee shop
landscape to be used for attracting the market segments to be targeted by the
said business. Specialty coffee and immersive, themed events are attracting
more and more customers. The strategy used by Café Aromagic precisely
accommodates these changing consumer demands. The committed group of
professionals and coffee enthusiasts at the company contribute a wealth of
experience to assure the success of this endeavor.
In order to determine the viability and potential success of Café Aromagic,
the company will examine a number of factors in this feasibility study, including
market analysis, management strategies, technological needs, financial
predictions, and the social impact. The goal is to construct a successful coffee
business as well as a sensory refuge where coffee enthusiasts may go on
enchanted aroma and taste adventures that will leave them with enduring
memories of Café Aromagic's charm.
Cafe Aromagic begins with a group of college students who shared a deep
passion for coffee. These researchers, named Trixie, Roger, Angeline, Rosalinda,
Zayin, Abegail, Kate, Andrea, and Engilbert, were not content with the ordinary
coffee options available on their university's campus. The researchers dreamed
of creating a haven for coffee lovers like themselves, a place where they could
indulge in the rich aroma and flavors of the sacred beverage. Driven by shared
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love for coffee and a desire to bring something unique to their campus, the
researchers decided to embark on a journey to create their very own coffee shop.
Through their dedication and hard work, the researchers of coffee lovers turned
Cafe Aromagic into a thriving business. Their love for coffee, combined with their
entrepreneurial spirit, allowed them to create a place that brought people
together, fostering a sense of community and appreciation for the art of coffee.
Chapter II
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MARKET STUDY
The market study is the most important part of the feasibility study. The
chapter contains details about the business product or service, customer, market
competitors, marketing and sales strategy, mission and vision of the business,
and business logo. This study's goal is to evaluate the product's marketability,
because they influence whether the project will be feasible and successful,
demand and supply for the product need to be carefully considered.
Business Product/Services
Café Aromagic generally offer the following categories of coffee and pastry
products. These are some of the varieties of frothy creation and pastries offered
by Café Aromagic such as: Frothy Vanilla Cloud, Hazelnut Haven Froth, Toasted
Coconut Cream Froth, Chocolate Bliss Frothy Coffee, Choco Charm Eclairs and
Aroma Twist Croissant.
Table 2.1 The Product, Product Description and Price
Particular Product Description Price
Frothy Vanilla Cloud. An ₱45.50

enchanting combination of
coffee and velvety foam
enhanced with a hint of vanilla.
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Hazelnut Haven Froth Indulge, ₱60.00
in the blend of coffee, velvety
froth and the enchanting allure
of hazelnut, in every sip of the
Hazelnut Haven Froth. It's an
embrace that will captivate your
taste buds.
Toasted Coconut Cream ₱55.00

Froth Experience a getaway in
every sip with the Toasted
Coconut Cream Froth. This
exquisite blend combines the
flavor of coffee, velvety foam
and the heavenly aroma of
coconut.
Chocolate Bliss Frothy ₱62.50

Coffee. Experience the
combination of chocolate and
aromatic coffee topped with a
creamy froth and cocoa. It's a
fusion of flavors that brings joy
with every sip creating a
flawless symphony, for your
coffee desires.
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Choco Charm Eclairs. Filled ₱60.00
with a creamy chocolate
mousse and topped with a
glossy ganache, they're finished
with a chocolate chip on top,
making each piece a luxurious
indulgence.
Aroma Twist Croissant. This ₱40.00

light and airy pastry is made
with layers of buttery dough that
give it a delicate, flaky texture.
Each bite is a perfect balance
of rich, buttery flavor and a hint
of sweetness
PRICING STRATEGY
The Café Aromagic pricing strategy is to price the product that affordable
to every customer. To cover the cost of our business, the use cost-plus pricing.
The price of business is not competitive, but to ensure that the coffee and
pastries are good taste to customers. Café Aromagic goal is to provide good
quality of product for a reasonable price.
Table 2.2, Costing of Frothy Vanilla Cloud

Product Name Frothy Vanilla Cloud
Standard Yield 1 Serving
INGREDIENT UNIT OF UNIT COST PORTION TOTAL
MEASURE CURRENT SIZE COST
CURRENT
Milk 1000 ml 104.00 125ml 13.00
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Brewed Coffee 500grams 106.00 28.3gram 6.00
s
Vanilla Syrup 950ml 158.33 15ml 2.49
Sugar 750ml 100.00 30ml 4.00
Total Cost 25.49

Total Cost Per Serving 25.49
Cost Ratio 66.50% 38.33
Computed Price Per Serving 38.33
VAT 12% 4.60
Total Price Per Serving 42.93
Recommended Price Per Serving ₱45.50
Table 2.3, Costing of Hazelnut Haven Froth

Product Name Hazelnut Haven Froth
TOTAL
UNIT OF UNIT COST PORTION
INGREDIENT COST
SIZE
MEASURE CURRENT CURRENT
Milk 1000 ml ₱104.00 125ml ₱13.00
Brewed Coffee 500grams ₱106.00 56.7grams ₱12.02
Hazelnut syrup 750ml ₱125.00 30ml ₱5.00
Crushed Hazelnut 250grams ₱70.52 14.18grams ₱3.99
Sugar 750ml ₱50.00 30ml ₱2.00
Total Cost ₱35.97

Total Cost Per Serving ₱35.97
Cost Ratio 66.50% ₱54.09
Computed Price Per Serving ₱54.09
VAT 12% ₱4.32
Total Price Per Serving ₱58.41
Table 2.4, Costing of Toasted Coconut Cream Froth

Product Name Toasted Coconut Cream Froth
TOTAL
INGREDIENT COST
SIZE
Coconut Milk 1000 ml ₱44.38 236.59ml ₱10.50
Heavy Cream 1000ml ₱92.99 118.29ml ₱11.00
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Coconut syrup 750ml ₱187.50 10ml ₱2.50
Sugar 750ml ₱50.00 30ml ₱2.00
Coconut Chips 100grams ₱100.00 5.69g ₱5.69
Total Cost ₱31.69

Cost Ratio 66.50% ₱47.65
VAT 12% ₱5.72
Table 2.5, Costing of Chocolate Bliss Frothy Coffee

Product Name Chocolate Bliss Frothy Coffee
TOTAL
INGREDIENT COST
SIZE
Brewed Coffee 500grams ₱106.00 28.3grams ₱6.00
Milk 1000ml ₱104.00 125ml ₱13.00
Chocolate syrup 1000ml ₱200.00 59ml ₱11.80
Sugar 750ml ₱50.00 30ml ₱2.00
Coconut Chips 250grams ₱100.00 14.18 ₱5.67
Total Cost ₱38.47

Cost Ratio 66.50% ₱57.85
VAT 12% ₱4.62
Table 2.6, Costing of Aroma Twist Croissant

Product Name Aroma Twist Croissant
TOTAL
INGREDIENT COST
SIZE
All-purpose flour 1000grams ₱55.00 540grams ₱29.70
Milk 1000ml ₱104.00 340ml ₱35.36
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Unsalted butter 500grams ₱145.00 400grams ₱116.00
Granulated Sugar 750ml ₱85.00 50grams ₱5.67
Salt 50grams ₱20.00 15grams ₱6.00
Yeast 50grams ₱35.00 15grams ₱10.50
Egg 1pc ₱8.00 1pc ₱8.00
Total Cost ₱211.23

Cost Ratio 66.50% ₱39.70
VAT 12% ₱4.76
Table 2.7, Costing of Choco Charm Eclairs
Product Name Choco Charm Eclairs

Standard Yield 8 pcs
TOTAL
INGREDIENT COST
SIZE
Heavy Cream 946ml ₱92.99 473.18ml ₱46.51
Chocolate Chips 500grams ₱100.00 200grams ₱40.00
All-purpose flour 1000grams ₱55.00 240grams ₱13.20
Unsalted Butter 200grams ₱145.00 125grams ₱90.63
Salt 50 grams ₱20.00 2grams ₱0.80
Milk 1000ml ₱104.00 240ml ₱24.96
Powdered Sugar 450grams ₱50.00 25grams ₱2.78
Vanilla Extract 20ml ₱25.00 14.78ml ₱18.48
Egg 4pcs ₱8.00 4pcs ₱32.00
Corn Syrup 500ml ₱45.00 14.78ml ₱1.33
Total Cost ₱270.68

Cost Ratio 45% ₱50.88
VAT 12% ₱6.11
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Sales Forecast
A sales forecast is a depth report that predicts what a salesperson,
team, or company will sell weekly, monthly, and annually. Sales forecasts
are typically created using past performance data. Café Aromagic hope to
gain 5% increase in sales revenue for the next 5 years.
The table shown the sales forecast of Café Aromagic illustrate the
daily sales, monthly sales, and annual sales forecast.
Table 2.8, Daily Target sales of Café Aromagic

TARGET DAILY MONTHLY ANNUAL
ITEMS PRICE SALES TARGET SALES SALES
PER SALES
ITEM
Frothy Php45.50 55 Php 2,502.50 Php 75,075.00 Php 900,900.00
Vanilla
Cloud
Hazelnut Php60.00 53 Php 3,180.00 Php 94,400.00 Php 1,144,800.00
Haven Froth
Toasted Php55.00 55 Php 3,025.00 Php 90,750.00 Php 1,089,000.00
Coconut
Cream Froth
Chocolate Php62.50 48 Php 3,000.00 Php 90,000.00 Php 1,080,000.00
Bliss Frothy
Coffee
Choco Php60.00 50 Php 3,000.00 Php.90,000.00 Php 1,080,000.00
Charm Éclair
Aroma Twist Php40.00 62 Php2,480.00 Php.74,400.00 Php 892.800.00
Croissant
Total Php 17,187.50 Php 515,625.00 Php 6,187,500.00
Monthly
Sales
Customer
The survey was conducted face to face with the use of survey forms. There
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are 100 respondents who completed the survey who lived within the vicinity of
Binalonan, Pangasinan. The result of survey are follows:
Figure 2.1, Classification of respondents According to Gender

Based on the conducted survey, it shows that 71% of the respondents are female
and 29% of the respondents are male.
Gender of Respondents
Female Male
29%
71%
Figure 2.2, Classification of respondents According to Age
Age of Respondents
18-20 21-30 31-40 40 and above
8%
13%
18% 61%
Based on the conducted survey, it shows that 61% of the respondents are aged
18-21, 18% are aged 21-30 years old, 13% are aged 31-40 years old and 8% are
aged 40 and above years old that makes the total of 100 respondents.
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Figure 2.3, Classification of respondents According to Occupational Status
Occupati onal Status

Student Employee Unemployed
7%
12%
81%
Ba
sed on the conducted survey, it shows that 81% of the respondents are students,
12% are employee, and 7% are unemployed that makes the total of 100
respondents.
Figure 2.4, Classification of respondents According to Coffee Intake

Based on the conducted survey, it shows that 42% of the respondents are twice
a day that drinks coffee, 36% are once a day, 11% are 3-4 times in a week and
7% are rarely that’s drinks coffee that makes the total of 100 respondents.
How frequently do you drink coff ee?

Twice a day Once a day 3-4 times in a week Rarely
11%
11%
42%
36%
Figure 2.5, Classification of respondents According to Coffee Flavors
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What coff ee fl avor do you want?
Chocolate Bliss Frothy Coffee Hazelnut Haven Froth
Toasted Coconut Cream Froth Frothy Vanilla Cloud
19%
35%
22%
24%
Based on our conducted survey, it shows that 35% of the respondents want
Chocolate Bliss Frothy Coffee flavor, 24% respondents want Frothy Vanilla
Cloud, 22% respondents want Hazelnut Haven Froth and the 19 respondents
wants Toasted Coconut Cream Froth with a total of 100%.
Figure 2.6, Classification of respondents According to Visiting a Coffee

Shop
Based on the conducted survey, it shows that 50 respondents visit coffee shop
twice a week, once a week with the total of 35% respondent and 15%of the
respondents visit a coffee shop not often.
How oft en do you visit a coff ee shop?

Twice a week Once a week Not Often
15%
50%
35%
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Figure 2.7, Classification of respondents According to place of drinking
coffee
Based on the conducted survey, it 63% respondents drinking coffee in coffee
shop and 37% drinking coffee in their home.
Where do you drink coff ee most oft en?

Coffee Shop Home
37%
63%
Figure 2.8, Classification of respondents According to building a shop. If

we well build a coffee shop in Binalonan, Pangasinan would you go?
If we well build a coff ee shop in Binalonan, Pan-

gasinan would you go?
Yes No
4%
96%
Based on our conducted survey, it shows 96% respondents choose YES and 4%
respondents choose NO. Therefore, out of 100% respondents most of them are
willing to go in our coffee shop which is the Café Aromagic.
Figure 2.9, Classification of respondents According to how much money
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they will spend
How much do you oft en spend at a coff ee shop?

50-100 100-150 150 above
19%
51%
30%
Based on our conducted survey, it shows 51% of the respondents choose a Php
50-100.00 followed by 30% of the respondents they choose Php 100-150.00 and
19% respondents they choose Php 150 above. Therefore, the respondents want
the product at affordable price and we will ensure that our product is reasonable
in their prices.
Market Competition
The café industry is quite competitive, with many cafés vying for customers
attention and loyalty. In this study on feasibility, it will explore the market
competition faced by Cafe Aromagic and evaluate its potential to thrive in this
environment. By comprehending the strengths and weaknesses of its
competitors we can pinpoint opportunities, for Cafe Aromagic to stand out and
attract customers in a captivating manner.
Table 2.9, Direct Competitor

Name of the Establishment Products Description
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1822 Café 1822 cafe has two branches which is
from the vicinity of Binalonan
Pangasinan. 1822 Cafe offers a
variety of items on their menu,
including coffee drinks, pastries,
sandwiches and 1822 Cafe also offer
milk tea
Brewnalonan Brewnalonan is located at Binalonan
beside of the BDO Network Bank.
Brewnalonan offers a different variety
of coffee and pastry products.
Kwings Café Kwings Café is located at Bued
McArthur Highway Binanlonan. The
products that they offered are coffee,
pizza, pasta and chicken wings.
Hebrews Café Hebrews Café is located at MacArthur
Highway Binalonan. Hebrews offers
coffee, soda coolers, frappe, salad,
finger foods, noodle, pasta,
sandwiches, pizza and milkteas.
GenZspot Resto Cafe GenZspot Resto Café is located at
Bued McArthur Highway Binanlonan.
GenZspot offers coffee, Fruit teas, rice
meal, milktea, desserts and
sandwiches.
Havens Brew Havens Brew is located at Binalonan
in front of UEP they offer a cheap but
satisfying products like coffee and
milkteas.
Hour Café Hour Café is located at Binalonan.
Hour café offers a different varieties of
coffee products and pastries.
Table 2.10, Indirect Competitor

Name of Establishment Product Description
Tea2go Tea2go in Binalonan offered various
milk tea flavors such as classic milk
tea, winter melon, taro, matcha,
strawberry, and honeydew. They also
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provided options for customized sugar
levels and toppings like pearls,
pudding, and jelly.
Milktea Project Milktea Project is located in the town
of Binalonan beside Holychild
Academy. Milktea Project offers
Frappe, Milkshake, Fruit shake and
different flavors of milk tea. Milktea
Project offer also Sandwich, Burger,
Nachos and fries.
Booba Booba Milk Tea typically offers a
variety of flavors like classic milk tea,
taro milk tea, matcha milk tea, jasmine
green tea, winter melon tea, fruit teas,
and Booba Milk tea offer their famous
milk tea which is the Magnum Milk
tea.
Channel of Distribution
Figure 2.10, Café Aromagic Channel of Distribution
Distributor Customer/Consumer
The Distribution Channel will be: DISTRIBUTOR to customers, it will
reach the customer mainly through store and deliver around their house, only in
the area of Binalonan. The channel of distribution is the pathway of the business
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to sell the products to end consumers.
Market Share
Market share is the percent of total sales in an industry generated by a
particular company. Market share is calculated by taking the company’s sales
over the period and dividing it by the total sales of the industry over the same
period. This metric is used to give a general idea of the size of a company
concerning its market and its competitors.
Figure 2.11, Market Share
MARKET SHARE
9%
17%
21%
16%
16%
8% 13%
1822 Café Brewnlonan GenZspot Hebrews

Kwings Café Haven Hour Café
The pie graph shows the market share of the three (7) major competitors
of Café Aromagic in Binalonan Pangasinan. 1822 Cafe got the highest market
share with 21% which means that they got the highest sales among the seven
Coffee shop. While Haven Café got 17 % of market share, which shows they are
second in having the highest sales. Brewnalonan Café and Kwing’s Café who got
16% of market share then genZspot Café who got 13% in market share and Hour
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Café who got 9% in market share. Lastly the Hebrews Café who got 8% in
market share that completes the total of 100%. Based on the results of pie graph,
the market shares of the seven competitors are not far apart which means that
the competition among them is intense.
Product and Market Focus
The proposed business Cafe Aromagic, offers various and different goods.
The products include Frothy Vanilla Cloud, Hazelnut Haven, Toasted Coconut
Cream, Aroma Twist Croissant, Choco Charm Eclairs and Chocolate Bliss.
The market focus of Cafe Aromagic is on individuals who appreciate and
enjoy a variety of coffee and pastries. This may include coffee lovers, pastry
Enthusiasts, and individuals who seek a cozy and relaxing environment to enjoy
their drinks. The cafe aims to attract customers from different demographic
groups, such as students, professionals, and local residents, by offering a
diverse menu and creating an inviting atmosphere.
SWOT Analysis
The SWOT analysis is a tool, for evaluating the strengths, weaknesses,
opportunities and threats of Cafe Aromagic. By examining both external factors
this analysis will provide insights, into the feasibility and potential success of
opening the cafe.
Table 2.11, SWOT Analysis
STRENGTH WEAKNESS
 Quality products and service  Difficult to Maintain Cash Flow.

 Direct relationship with customer  Low Profit Margin.
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 Creative and attractive product  Price Sensitive Market.
 Continuous sale  Costly Supplier.
 Located at the long highway near at  The Low Price of Competitors.
UEP, MEAB, JUAN G  Newly open business
 Convenience and relaxing  Strong exist competitors
environment
 Affordable product price that can be
avail by student, teachers and
lower upper class
OPPORTUNITIES THREAT
 Open for small meetings and  Economic stability that affects
seminars. the cost of raw materials ang
 Provide and training students in the ingredients.
coffee industry.  Competitors is located nearby.
 Can implement a loyalty program.  Emerging customer needs and
 Loyal returning customers. trends.
 Introduce an app or QR menu for  Customer relationships and
ordering. customer lifetime value.
 Attract new customers through  Disaster and Calamities
special offers.
 Develop an innovation culture for
lots of new ideas.
 Build stronger customer
relationships.
 Unique coffee recipes and flavors.
MARKETING AND SALES STRATEGY
Business Mission and Vision
Mission
Café Aromagic mission is to become the go-to destination for coffee and
tea lovers, offering a unique and unforgettable sensory experience through a
variety of aromas and flavors.
Vision
5 Years from now we will be among the top 10 best coffee shop in the
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Pangasinan. To become the foremost destination for sensory delight, and we'll
make sure Café Aromagic is remembered by following the trend.
Business Logo
Figure 2.12, Café Aromagic Logo
The logo is on the aroma cup symbolizing the delicious coffee you can
smell. And the cup you can smell and sip will leave a magical feeling you will feel.
As you can see, the sun and moon are used in the logo to represent the fact that
cafe is open from sunrise till midnight and that don't just serve you coffee or sell
you coffee but also provide you with magical experiences each and every day.
The magic referred to in the logo is the taste of coffee. Café Aromagic prove that
with every sip you will be surprised by its taste and you will come back so that
you can give the cafe aromatic more than the magical that we did not expect.
“Magical in every cup" our tagline suggests that Café Aromagic is not just
a place to get coffee but a destination where each cup of coffee is carefully
crafted to be a magical and enchanting experience. It conveys the idea that every
detail, from the selection of coffee beans to the brewing process, with a touch of
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magic we create a truly delightful and memorable coffee experience for
customers. So, to all coffee lovers there it's been a while, have a magical break.
1. Digital Presence
Café Aromagic will use social media platforms, like Instagram, Facebook and
Tiktok to showcase the cafes atmosphere, like coffee and pastries. Make sure to
share high quality photos interact with your followers and organize promotions or
giveaways to increase brand visibility and attract new customers.
Figure 2.13, Facebook Page, Instagram Account and Tiktok Account
2. Loyalty Programs
Having a loyalty program, in place can be beneficial for attracting and
keeping customers. This may involve providing discounts, complimentary
items or incentives for visits or purchases, at Café Aromagic.
Figure 2.14, Café Aromagic Loyalty Card
3.
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Online Reviews and Referrals
It is crucial for any business to receive reviews and recommendations,
through word of mouth. The strategy involves encouraging the customers to
share their experiences by leaving reviews on the website and social media
platforms. Additionally, it will provide incentives, like coffee or meals as a way
to motivate our customers to help us promote the café.
4. Special Offers and Promotions
Café Aromagic plan to provide promotions and discounts in order to attract
new customers and keep existing ones. This may involve giving first time
customers a discount highlighting seasonal menu items or implementing a loyalty
program that rewards customers after they make a number of purchases.
Figure 2.15, Café Aromagic Flyers
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Chapter III
MANAGEMENT STUDY
Management study play a role, in helping organizations improve their
performance. By equipping leaders, with the knowledge and skills it enables
them to make decisions effectively manage resources and achieve organizational
goals. Within management studies important aspects include job analysis charts
and employee compensation schemes.
Job Analysis
Coffee shops are frequently hives of activity, and maintaining the smooth
functioning requires a staff of knowledgeable experts. Employing staff members
who are enthusiastic about creating coffee products, offering superior customer
service, and maintaining a clean and organized shop are crucial for coffee shop
owners. By doing this, you can make sure that your clients are content, your staff
are pleased, and your business is successful.
RECRUITMENT AND SELECTION PROCESS
When you need to fill a position, you want to be certain that you choose the
applicant with the qualifications that will best suit the role and advance your
business. Here is a 9-step recruitment process you may use to improve your
success rate in locating an ideal applicant.
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Figure 3.1, Recruitment and selection process
Perform
Define Job Make Job
Background
Requirements Offers
Checks
Determine
Conduct Onboarding
Recruitment
Interviews and Training
Methods
Create a Job Evaluate and

Screening Resume
Advertisement Improve
Step 1: Define Job Requirements
The first step in creating a recruitment and selection process is to clearly
define the job requirements for the position in Cafe Aromagic. This includes the
qualifications, skills, and experience required for the role, as well as the job
description and responsibilities.
Step 2: Determine Recruitment Methods
Next, decide on the methods you will use to attract qualified candidates for
the job. This could include a combination of internal job postings, external job
postings on job boards and social media, employee referrals, and partnering with
recruitment agencies.
Step 3: Create a Job Advertisement
Using the information from step 1, create a job advertisement that clearly
outlines the role and requirements. The job advertisement should also include
information about the company culture and any benefits or perks offered by Cafe
26
Aromagic.
Step 4: Screening Resumes
Once the job advertisement is posted, you will start to receive resumes and
applications. Develop a screening process to review these applications and
identify potential candidates for the position. This could include reviewing
resumes, conducting phone screenings, or using applicant tracking software.
Step 5: Conduct Interviews
Next, conduct interviews with the top candidates to further assess their
qualifications, skills, and fit for the company culture. Depending on the role and
level of the position, this could involve multiple rounds of interviews with different
managers or team members.
Step 6: Perform Background Checks
Before making a job offer, it is important to conduct background checks on the
final candidate. This may include reference checks, criminal background checks,
and verification of education and past employment.
Step 7: Make Job Offers
Once a final candidate has been selected and all background checks are
clear, it's time to make a job offer. This should include details such as salary,
benefits, and start date.
Step 8: Onboarding and Training
After the candidate accepts the job offer, it is important to have a thorough
onboarding and training process in place. This will help the new employee get up
27
to speed quickly and feel comfortable in their new role.
Step 9: Evaluate and Improve
After the recruitment and selection process has been completed, it is
important to evaluate its effectiveness and make any necessary improvements
for future hiring needs. This could include gathering feedback from the new
employee and hiring managers, as well as analyzing the success of the new hire
in their role.
Requirements of the Employees
 Resume with 3 recent 2x2 photos.
 Photo copy of NSO Birth Certificate.
 NBI, Police Clearance, Barangay clearance.
 Certification of previous employer (if any).
 Transcript of Records or any Credentials.
 Pag – ibig
 SSS – E1
 Health Permit from the Municipal health office
Job Description, Job Qualifications and Job Responsibilities
This part of the study shows the position of the employees in the business,
the description of the work they will do and the qualification of an employee must
28
possess.
JOB DESCRIPTION
Manager- plays a crucial role in ensuring the cafe runs efficiently and
responsible implementing marketing strategies to attract and retain customers,
such as advertising, promotions, and social media engagement.
JOB QUALIFICATIONS
 Any Bachelor's degree in BS Hospitality Management or Business
Administration
 Knowledgeable of food health and safety and regulations
 Proven management experience in the hospitality industry.
 A food handler’s license.
 Knowledgeable of food health and safety regulations.
 Excellent organizational and the management skills.
 Effective communication skills.
DUTIES AND RESPONSIBILITIES
 Hiring, training, and scheduling employees, including baristas, servers,
and kitchen staff.
 Manage day to day operations of the café.
 Hire and on-board new wait staff and baristas.
 Coordinate with vendors and order supplies, as needed.
 Maintain updated records of daily, weekly, and monthly revenues and
expenses.
29
 Add new menu items based on seasonality and customers preferences.
 Advise staff on the best ways to resolve issues with clients and deliver
excellent customer service.
JOB DESCRIPTION
Head Barista- managing the coffee preparation and service aspects of the
establishment and have a passion for coffee and a deep knowledge of different
coffee brewing methods and techniques. Responsible for ensuring the quality
and consistency of coffee beverages.
JOB QUALIFICATIONS
 Extensive experience in the coffee industry, with at least 5 years as a
barista.
 Knowledge of coffee bean varieties, brewing methods, and latte art.
 Certification or training in coffee making and barista skills.
 Excellent customer service and communication skills.
 Strong leadership and management skills.
 Training and mentoring other baristas to make sure they can create high-
quality coffee drinks and provide excellent customer service.
 Train and supervise other baristas to ensure quality and consistency in
coffee preparation.
 Create and maintain a welcoming environment for customers,
30
encouraging them to try new coffee drinks and interact with the staff.
 Keep up-to-date with the latest trends and techniques in coffee making.
 Work closely with the kitchen staff to ensure timely service of food and
drinks.
 Maintain the cleanliness and organization of the coffee bar and the dining
area.
JOB DESCRIPTION
Cashier - in charge of managing financial transactions with patrons. They are
primarily responsible for ringing up orders, taking payments, giving change, and
maintaining the accuracy and security of the cafe's cash register or point-of-sale
system.
JOB QUALIFICATIONS
 Knowledgeable regarding of Pos Machine
 Friendly and positive attitude.
 Excellent customer service.
 Excellent communication skills.
 Ability to make change.
 Basic Math skills.
 Promote cafe items or specials to increase sales, such as suggesting add-
ons or upsizing drinks.
31
 Process sales transactions.
 Calculate the cost of products or services.
 Accept payments.
 Calculate and return change when required by the payment method.
 Maintain adequate change denominations in the cash drawer and
request additional change.
 Answer customer questions about products or services.
 Reconcile cash drawers and sales receipts.
 Repost issues with equipment.
JOB DESCRIPTION
Pastry Chef- responsible for preparing a wide variety of delicious desserts,
pastries, and sweet goods.
JOB QUALIFICATIONS
 Culinary Degree: A degree in pastry arts or a related culinary field.
 Experience: Minimum of 2 years’ experience in a professional baking
environment.
 Creativity: Ability to create unique, eye-catching pastry designs.
 Time Management: Efficient time management skills to handle a busy
kitchen environment.
 Teamwork: Excellent teamwork and communication skills to ensure a
harmonious work environment.
32
 Operating and managing the pastry section of the kitchen and liaising with
the executive and sous chefs to ensure a successful working environment.
 Preparing ingredients and handling baking and other kitchen equipment.
 Decorating pastries and desserts to ensure beautiful and tasteful
presentation.
 Monitoring the stock of baking ingredients.
 Ordering new supplies, ingredients, and equipment for the pastry section,
when needed, and within budget.
JOB DESCRIPTION
Kitchen Staff-refers to those who work in a kitchen, frequently in hotels,
restaurants, or other food service organizations. They play a variety of jobs in the
food preparation and serving process, including chefs, cooks, sous chefs,
dishwashers, and prep cooks.
JOB QUALIFICATIONS
 Previous experience in a kitchen, even as a dishwasher or prep cook, is
valuable.
 Understanding of food safety and sanitation regulations is crucial.
 Good knife skills, cooking techniques, and the ability to follow recipes
accurately are important.
33
 Cutting, chopping, and prepping ingredients as per recipes and
instructions.
 Adhering to food safety guidelines, maintaining cleanliness, and handling
food safely.
 Keeping track of ingredient levels, restocking, and informing the chef or
manager when supplies are low.
 Regularly cleaning and sanitizing workstations, utensils, and equipment.
 Collaborating with other kitchen staff to ensure smooth operations during
service.
JOB DESCRIPTION
Service Crew – Greet customers and offers restaurant or café menus, answers
questions about menu offerings, processes food and drink order, carries food
and drinks from kitchen to tables, and prepares bills and process payments.
JOB QUALIFICATIONS
 Highschool Diploma
 Attention to detail.
 Ability to multitask.
 Written and verbal communication.
 Customers service skills.
 Ability to work under pressure.
34
 Positive attitude.
 Greeting guests and taking drink and food orders.
 Staying attentive to the needs of guests in the dining area.
 Delivering food from the kitchen to the guests.
 Ensuring the food order is made correctly by kitchen staff and looks
presentable for guests.
 Checking the quality and presentation of dishes before they are served.
Organizational Structure
An organizational structure is a system that outlines how certain activities
are directed in order to achieve the goals of an organization. An
organizational structure details how certain activities are delegated toward
achieving an organization’s goal. It outlines an employee’s duties and
obligations in a corporation. Café Aromagic uses partnerships as their form of
business organization.
Figure 3.2: Organizational Structure
35
Employee Compensation Scheme
Workers face one of two types of compensation schemes. Under both
contracts, workers are paid a fixed base wage plus additional pay based on
performance after reaching a productivity target.
Salaries will be computed accordance to their position and day of work,
employees are assuming to receive a “minimum wage” in exchange of their work
that they complete.
Name Monthly Daily Gross Gross

Basic Rate Pay Pay
Rate
36
Manzano, Trixie Ann 18,000.00 600.00 9,000.00 9,000.00
Total Confi 18,000.00 9,000.00 9,000.00
Bagni, Abegail 12,000.00 400.00 6,000.00 6,000.00
Abrin Kate 12,000.00 400.00 6,000.00 6,000.00
Tingco, Rosalinda 12,000.00 400.00 6,000.00 6,000.00
Uzbiztondo, Engilbert 11,250.00 375.00 5,625.00 5,625.00
Alzate, Roger 11,250.00 375.00 5,625.00 5,625.00
Espinoza, Angeline 11,250.00 375.00 5,625.00 5,625.00
Oliveras, Andrea 11,250.00 375.00 5,625.00 5,625.00
Fabro, Zayin 11,250.00 375.00 5,625.00 5,625.00
Total Non-Confi. 92,250.00 - 46,125.00 46,125.00
Grand Total 110,250.00 55,125.00 55,125.00
Table 3.1 Salary of Management Staff
Table3.2, Schedule of the Staff
Mon Tue Wed Thurs Fri Satur Sun

Café 10:00am 10:00am- 10:00am 10:00am 10:00am- 10:00am-
Manager -7:00pm 7:00pm -7:00pm -7:00pm 7:00pm 7:00pm
Head 10:00am- 10:00am- 10:00am- 10:00am- 10:00am- 10:00am-

Barista 7:00pm 7:00pm 7:00pm 7:00pm 7:00pm 7:00pm
Pastry 10:00am- 10:00am- 10:00am- 10:00am- 10:00am- 10:00am-

Chef 7:00pm 7:00pm 7:00pm 7:00pm 7:00pm 7:00pm
Barista 10:00am- 10:00am- 10:00am- 10:00am- 10:00am- 10:00am-

7:00pm 7:00pm 7:00pm 7:00pm 7:00pm 7:00pm
Cashier 10:00am- 10:00am- 10:00am- 10:00am- 10:00am- 10:00am-
7:00pm 7:00pm 7:00pm 7:00pm 7:00pm 7:00pm
Cashier 10:00am- 10:00am- 10:00am- 10:00am- 10:00am- 10:00am-
7:00pm 7:00pm 7:00pm 7:00pm 7:00pm 7:00pm
Kitchen 10:00am- 10:00am- 10:00am- 10:00am- 10:00am- 10:00am-
staff 7:00pm 7:00pm 7:00pm 7:00pm 7:00pm 7:00pm
37
Kitchen 10:00am- 10:00am- 10:00am- 10:00am- 10:00am- 10:00am-
staff 7:00pm 7:00pm 7:00pm 7:00pm 7:00pm 7:00pm
Service 10:00am- 10:00am- 10:00am- 10:00am- 10:00am- 10:00am-

Crew 7:00pm 7:00pm 7:00pm 7:00pm 7:00pm 7:00pm
*All the red marks on the working schedule means closed
Sunday is the day off for the staff at Cafe Aromagic because it is
observed as the holy day of the Lord. It's also their one day off to relax and
spend quality time together as a family.
Coffee Shop Rules and Policies
In order to allow each guest or customer to experience the best use of
coffee shop facilities without causing undue strain or excessive cost of
operation the coffee shop management encourages everyone to observe
and abide with the following.
 Business Hour- Our business hours are 10 am to 7 pm, Mondays to

Sundays with their specific day off
 Standard Delivery- Expect the delivery of most orders of the Cup
and Beans within 30 minutes after placing the order.
 WIFI/ Internet use- By using the coffee shop’s WIFI/ internet access
the customer agrees and / or accepts the rules of Café Aromagic.
Each guest shall be allowed to use the WIFI password to only one
electronic device. Sharing WIFI password is not allowed.
 Use of the coffee shop’s electrical outlet- Prolonged plugging for
more than one hour of any electronic device is generally not allowed.
38
 No bringing in of outside food/ drinks- Food and drinks purchased
outside of the coffee shop or hotel shall not be allowed to be brought
inside the coffee shop area.
 Liquor/ Smoking- Liquor and or any kind of alcoholic beverages are
not allowed inside the coffee shop. Smoking is likewise not allowed
inside the coffee shop.
 Parking/ Unattended Vehicles- Parking for coffee shop is allowed
in front of the Café Aromagic and shall be first come first serve.
 Proper behavior/conduct- Guest are advise to observe proper and
orderly conduct inside the coffee shop. Placing or putting their legs or
feet on the chair or table is prohibited.
 One-hour Meal Period – All employees are entitled to a meal period
not less than or more than 60 minutes.
 Absences – Employees must acquire manager consent for an
unnecessary absence due to personal reasons at least one day
beforehand. The employee’s absence will be regarded as an absent
without leave if he or she does not report for work within two (2)
days.
 Punctuality (Late) – Each employee will be given a five (5) minute
grace period.
 Performance Review – The performance reviews are designed for
the employees to discuss their tasks and are required to submit at
the end of the month for the monitoring of activities.
Grooming and hygiene Policy
 Hair should be clean, combed, and neatly trimmed or arranged. Unkempt

hair is not permitted. Sideburns, mustaches, and beards should be neatly
trimmed.
 Use proper uniform, wearing apron and hairnet to the kitchen staff is
appropriate.
39
 Kitchen staff and cleaning staff should always wear the safety shoes issued
when on duty.
 Use the correct chemicals to clean equipment, make sure there are no food
residues and rinse the equipment with clean water of drinking quality
 Clean as you go -do not leave dirty equipment until the end of the day
before cleaning it.
Personal Belongings
Visitors to the milk tea shop are encouraged to protect their items or
personal/valuables both inside and outside their automobiles. The administration
will not be held liable for any damage or loss of valuable/personal items. To avoid
loss of belongings, guests are encouraged to keep their vehicles secured and
locked.
Behavior Policy
Respect is vital in the workplace for preventing discrimination,
harassment, and victimization. Employees must follow our equal opportunity
policy in all facets of their employment.
Violating above all the policies will be punished accordingly, as follow:
1st Offense – Warning
2nd Offense – Management will talk to the violator
3rd Offense – Contract Terminated
40
Employee’s Benefits, Coverage and Contribution
Table 3.3, Employee’s Benefits
Holiday Among the pre-identified Philippine holidays for the

current fiscal year, Café Aromagic allows employees to elect
Guidelines
thirteen (13) elective holidays to observe from among the list
of the regular and special non-working days. This provides
employees the ability to choose the holidays they would like
to observe in line with their preference/life situation. Failure to
report to work on a non-elective holiday shall be considered
an absence. Details / guidelines are subject to changes and
updates based on annually released
SSS/Phil Health Benefits under SSS/Phil Health Benefits will be granted in

accordance with applicable law. Implementation of producers
Benefits
relative to entitlement of said benefits should be done in
accordance with the regulations to be promulgated by the
management.
 Retirement. Cash benefit paid out as a monthly
pension or as lump sum granted to a retiree who
are at least 60 years old.
 Sick leave. Entitles employees to at least 90% of their
daily wage in case of hospitalization or need to stay
home due to illness. Employees can receive this sick
pay up to 120 days a year. Employers pay this leave
benefit, which then gets reimbursed by the SSS.
 Disability. Employees who develop permanent
41
disabilities are entitled to a minimum monthly pension
depending on years of service.
 Maternity leave. Grants 105 days of fully-paid leave to
employees becoming mothers.
 Death benefit. Beneficiaries of deceased employees
are given a lump sum or monthly pension.
 Unemployment insurance. Offers a one-time
payment to employees who are “involuntarily
separated” from work. This does not apply to
employees who are let go due to misconduct.
 Funeral grants. Given to fund the funeral expenses of
the deceased employee.
13th Month Pay 13th month pay equivalent to 1-month base pay,
based on service for the year; payout is every November.
Uniform
Figure 3.3, Uniform
42
MANAGER STAFF (Barista, Cashier, Crew and
Kitchen Staff)
Chapter IV
TECHNICAL STUDY
In this section will discuss the specifications, for the facilities, such, as
their size and quantity. It will also cover the list of materials needed to produce
43
the product well as the procedures involved in creating top notch goods and
services and the floor plan perspective.
Table 4.1, Coffee shop store facilities and Equipment

Particular/ Description Price QTY Total Cost
Picture
Air pots Airpots, short for airpots, 2,600 1 2,600
typically refer to insulated
beverage dispensers used
to keep liquids, such as
coffee or tea, hot or cold
for an extended period.
Espresso An espresso 200,000 1 200,000
Machine machine is a
specialized coffee
appliance designed
to brew concentrated
coffee called
espresso. It operates
by forcing hot water
through finely-ground
coffee under high
pressure, producing
a small, strong shot
of coffee with a rich
flavor and a layer of
crema
Coffee A coffee grinder is a 15,000 1 15,000
Grinder kitchen appliance
specifically designed
for grinding coffee
beans into the
desired consistency
for brewing.
Espresso A coffee tamper is a 690 3 2,070
stamp tool used to compact,
or tamp, the coffee
grounds into the
portafilter of an
espresso machine
before brewing.
Frothing Frothing pitchers are 600 5 3,000
Pitchers stainless steel
containers designed
for steaming and
frothing milk,
commonly used in
conjunction with
espresso machines
A milk frother is a 7,500 1 7,500
44
Milk frother small, handheld or
countertop device
designed to aerate
and froth milk,
creating a light and
creamy foam.
Coffee and Coffee and beverage 30 5 150
Beverage labeling involves
Labeling providing information
on packaging or
containers to inform
consumers about the
product.
Display A display case in a 5,299 1 5,299
case coffee shop is a
stylish and functional
fixture designed to
showcase an
assortment of
tempting treats and
beverages.
Fridge A refrigerator in a 27,999 1 27,999
coffee shop is an
essential appliance
designed to store
and preserve various
perishable items,
ensuring freshness
and quality.
Gas A gas burner with an 18,523 1 18,523
Burner oven is a kitchen
with Oven appliance that
combines a cooktop
with burners for
cooking on the top
surface and an oven
for baking and
roasting.
Kitchen A kitchen exhaust 10,000 1 10,000

Exhaust fan, also known as a
Fan range hood or
extractor hood, is a
ventilation appliance
installed above the
cooking surface in a
kitchen.
Air An air conditioner is 28,899 1 28,899

condition a cooling system
designed to regulate
and maintain indoor
45
temperature and
humidity levels
Total 361,620
Table 4.2, Coffee shop store Utensils

Picture
Coffee A coffee container is 10 pcs 200 2,000

Container a specialized storage
vessel designed to
preserve the
freshness and flavor
of coffee beans or
ground coffee.
Coffee A coffee mug is a 25 pcs 390 9,500
Mug cylindrical or conical-
shaped cup
for the consumption
of coffee.
Espresso Espresso cups are 10 pcs 3 380

Cups small, specialized 8
cups designed for
serving concentrated
shots of espresso
Disposable Disposable paper 500 pcs 1,250

Paper Cup cups are favored for 250
their convenience
and ease of use,
eliminating the need
for washing and
reducing
environmental impact
compared to
reusable alternatives.
Mixing A mixing bowl is a 5 pcs 150 750

Bowl kitchen essential
designed for
combining, stirring,
and blending
ingredients during
food preparation.
Measuring A measuring spoon 3 set 109 327

Spoon is a kitchen utensil
46
for accurately
measuring and
portioning small
quantities of dry or
liquid ingredients.
Measuring Measuring cups for 3 set 300 900
Cup dry ingredients
usually have a flat
rim to allow for
leveling off the
ingredients with a
straight edge for
precise
measurements.
Plates Plates are versatile 25 pcs 70 1,750
and can be
categorized based on
their intended use,
such as dinner plates
for main courses,
salad plates for
appetizers or salads,
and dessert plates
for sweets.
Spatula A spatula is a kitchen 5 pcs 60 300
tool with a broad, flat,
and typically flexible
blade. It is used for a
variety of purposes in
cooking and baking,
such as flipping,
turning, and lifting
food items.
Spoon and Spoons and forks are 25 set 150 3,750
Fork essential
components of table
settings, providing
practical tools for
conveying food to the
mouth while allowing
for a comfortable and
enjoyable dining
experience
Saucier A saucier is a 20 pcs 140 2,800
specialized cooking
pan characterized by
its wide, shallow, and
rounded shape.
Total 23,707
Table 4.3, Coffee Shop furniture’s and fixtures
47
Picture
Table A coffee shop table is 5,500 12 66,000
a functional and
aesthetically pleasing
piece of furniture
designed to enhance
the overall
experience of
patrons enjoying
coffee and other
beverages
Chairs Chairs for a coffee 1,100 40 44,000
shop are carefully
chosen furnishings
that contribute to the
ambiance and
comfort of the space.
Long Table A long table for a 7,300 1 7,300

coffee shop is a
communal and
versatile piece of
furniture designed to
accommodate
multiple patrons in a
shared seating
arrangement.
Couch A couch for a coffee 16,700 1 16,700
shop is a comfortable
and inviting piece of
seating designed to
enhance the lounge
or relaxation area
within the
establishment
Storage A storage cabinet for 11,000 1 11,000
Cabinet a coffee shop is a
functional and
practical piece of
furniture designed to
organize and store
various items
essential for daily
operations
Shelf shelf organizer for a 6,799 3 20,397
Organizer coffee shop is a
practical and space-
efficient storage
solution designed to
keep various items
neatly arranged and
easily accessible.
48
Total 165,397
Table 4.4, Coffee Shop Office Supplies

Particulars/ Description Price QTY Total Cost
Picture
Ballpen ballpoint pen is a 10.00 10 80.00
small, practical tool
often branded with
the coffee shop's
logo or name.
Carbon Carbon receipt 130.00 1 130.00
Receipts paper for a coffee
paper shop is a
specialized type of
paper used to print
customer receipts
Log Book A log book for a 250.00 1 250.00
coffee shop is a
written record or
journal that helps
manage and
organize various
aspects of daily
operations.
Scissors Scissors are hand- 100.00 1 100.00
operated cutting
tools with two
blades that pivot
around a fulcrum
Coupon Coupons are 200.00 1 200.00

commonly
distributed by
businesses,
including coffee
shops
Total 760
Table 4.5, Coffee shop Cleaning Tools

Name Description Price Total
49
Floor mat A floor mat is a protective 250.00 1 250.00
and functional covering
placed on the floor to
serve various purposes,
such as enhancing
safety, cleanliness, and
comfort within a space.
Sweep broom and A sweep broom and 230.00 1 230.00
Dustpan dustpan are essential
cleaning tools used to
remove debris, dust, and
dirt from floors
Trash Bin A trash bin, also known 100.000 5 500.00

as a garbage bin or waste
receptacle, is a container
specifically designed for
the disposal of waste
materials.
Plants Plants in a coffee shop 350.00 3 1,000.00
serve both aesthetic and
functional purposes. They
contribute to the overall
ambiance, creating a
welcoming and relaxing
atmosphere for patrons.
Alcohol "Alcohol" is a term that 350 500ml 350.00
generally refers to a class
of organic compounds
characterized by the
presence of a hydroxyl (-
OH) functional group
attached to a carbon
atom.
Tissue Roll 2 ply In everyday use, "tissue" 500 48 rolls 500.00
often refers to tissue
paper. This is a thin, soft
paper commonly used for
personal hygiene, such
as wiping the nose or
face.
Handwash Soap Hand soap is a cleansing 150.00 3 450.00
agent specifically
formulated for washing
hands. It is designed to
remove dirt, bacteria, and
other contaminants from
the skin, promoting good
hygiene
Cleaning Cloth A cleaning cloth is a 50.00 5 250.00
piece of fabric or material
specifically designed for
cleaning surfaces and
objects.
50
Dishwashing Dishwashing liquid, often 200.00 1000ml 200.00
Liquid simply referred to as dish
soap, is a detergent
specifically formulated for
washing dishes, utensils,
and cookware.
Small Paper Bag A paper bag is a 500.00 1,600 pcs 500.00
disposable bag made
primarily from paper,
typically with handles for
carrying.11
Total 4,230.00
51
Plant Location and Size.
Café Aromagic will be located on the Mc Arthur Canarvacanan
Binalonan, Pangasinan beside the HBI Hardware and in front of University
of Eastern Binalonan with the size of 238 square meters. The rental fee is
30,000 pesos. All operational activities are held here in the area.
Floor Plan and Perspective
Figure 4.1, Floor Plan
52
53
Figure 4.2, Perspective
54
Figure 4.3, Front View
Figure
55
4.4, Side View
Figure 4.5,
Interior
Vicinity Map
Figure 4.6,
Vicinity Map
56
Pre-Operating Activities
Pre-operating activities are activities that will take place before the
actual operation of the proposed business.
Conducting of Feasibility Study
This activity will be done to determine the profitability and viability of
the proposed business including the four (4) aspects of the business such
as the market, management, technical, and socio-economic aspect. This
activity will be done within two (2) months to complete.
Formation of Partnership
In this activity, the partnership will be formally organized. The
organizational set-up will be considered. The source of financing will be
discussed and the proposed business will be studied based on the
capability. This study would take about one (1) month to complete the
setting-up of the organization.
Processing of Business Permits and Licenses
This activity, the partners will make sure to operate the business
legally and by accordance with the government laws by securing permits
57
and licenses. It would take one (1) month before the business would have
permits and licenses.
Building Renovation
This activity will be the preparation of the target location and the building
renovation of the proposed project will be raised settled on the site selected
based on the design and lay-out. This would take two (3) months to
complete.
Acquisition of Equipment
This activity will be the purchasing of the equipment’s and furniture and
fixtures that is needed in the operation of the business. This would take one
(1) month to complete.
Hiring and Training of Employees
In this activity, the partners will undertake hiring procedures to fill in the
needed position in the proposed business with the most qualified
applicants. Then the hired applicant will be oriented and trained about their
job description and the policies imposed by the management. This activity
would take one (1) month to complete.
Promotional Activities
Pre-Operating activities will also include the promotional activities to
properly introduce the business to the market. This activity would take one
(1) month to complete before the actual operation.
Start of Actual Business operation.
58
After the above-mentioned activities, the proposed business will be
starting in the actual operation.
Project Time-table (Gantt chart)

Table 4.6, Project Time-Table
Pre- Monthly Duration

Operating
Activities
1 2 3 4 5 6 7 8
Conducting a
Feasibility
Study
Formation of
Partnership
Processing
of Business
Permits and
Licenses
Building
Renovation
Hiring and
Orientation
of
Employment
Acquisition
of Equipment
Promotional
Activities
Start of
Actual
Operation
Process and Services Flow
At Cafe Aromagic, our main goal is to provide our customers with a
unique and memorable dining experience through the high-quality food,
warm atmosphere, and exceptional service. To achieve this, Café Aromagic
have developed a comprehensive process and service flow that focuses on
59
delivering the products to the customers in the most convenient and
efficient ways possible.
1. Thru Walk in;
Figure 4.7, Thru walk in customer
For the walk-in customer, Café Aromagic gave them a comfortable in
terms of ordering their coffee. It will need to check the cleanliness of our
café shop before the opening of the Café Aromagic. As you can see first
step is start which mean open , next step is take the order of the customer
in the counter, next is introduce the available menu, next is take the order of
customer, next is customer will pay the order in the counter, next is check
the available table and guide the customer in their table, next step is serve
their order and if they are done the next step is we thank them for coming in
Café Aromagic, next is clean the table and end.
2. Thru Delivery
Figure 4.8, Thru Delivery;
60
And for the delivery café aromagic will create a Facebook page for
the customer but it will have a delivery fee it cost 10-50 pesos it depends on
the location, therefore the first step is check the Facebook page message
request, next is send the available menu, next is ask them what they want,
next is check the order, next is take their order, next is ask their address or
details of location, next is deliver the order, next is get the payment and the
delivery fee, next is leave and end of transaction.
3.Drive Thru Experience
Figure 4.9, Drive Thru Experience
61
Cafe Aromagic Drive-Thru is a type of service provided by a
business that allows customers to purchase products without leaving their
cars, and less hassle. The Drive-Thru process at Cafe Aromagic might go
as follows: The customer drives up to the monitor machine and shows up
the menu board and reviews the options. Cafe Aromagic employee, through
an intercom system, greets the customer and takes their order. A customer
will use their voice to take an order after reviewing the menu board. After
taking an order, a customer will drive by the cashier's window to pay the
bills. The order is keyed into the computer system making a record for the
kitchen staff, who then prepare the order. Once ready, the order is passed
to the drive-thru window station, where the customer pays and receives
their order
List of Suppliers
Table 4.7, Café Aromagic Suppliers
62
Company Description Address
Name
1.Everyday Everyday Coffee Roasters is Santa Rosa,
Coffee an e-commerce coffee 4026 Laguna
Roasters company that offers various
high-quality green bean
coffee beans sourced from all
over the world, roasted upon
order and delivered right to
your door-step.
2. Curve Curve Coffee Collaborators Tunasan,
Coffee are roasters and distributors Muntinlupa
Collaborators of Philippine Specialty Coffee. City,
As collaborators, they are Philippines
proud to be able to work with
various stakeholders from
farmers, processors, barista
and cafes.
3. Coffeellera Coffeellera is a coffee beans Mandaluyong
supplier for local coffee shop City, Metro
owners, coffee lovers, and Manila,
coffee souvenir buyers. Philippines
1550
63
4.Escolta The Escolta coffee company G/F First
Coffee Manila-based coffee roaster United
Company whose team is obsessed with Building, 413
coffee and its journey from Escolta Street,
cherry to cup and the Manila,
potential unlocked every step Philippines
of the way.
Labor Supply
The proposed business will select the best person that will fit to the
position to perform the responsibilities effectively and efficiently who are coming
from the residents of Binalonan. There is no difficulty in hiring the needed
employees because they can be seen in Binalonan where the proposed business
will be raised.
Table 4.8, Coffee shop Utilities

Total Cost/ Total Cost/ Year
Utilities Sources Price Month
Electricity PANELCO 10,000 10,000 120,000
Telephone 1,500 1,500 18,000
with Internet PLDT
Water BIWAD 500 500 6,000
Rent 30,000 30,000 360,000
Total 504,000
Waste Disposal
Waste disposal is including the activities and actions required to
manage waste from its inception to its disposal. This includes the collection,
treatment and disposal of waste together with monitoring and regulation of
64
the waste management process. The advantage of waste disposal is it
keeps our environment clean and fresh.
Café Aromagic will follow the proper waste disposal by using the
biodegradable and non-biodegradable disposal. We are responsible for
whatever trash or waste our business produces for we believe that simple
mistake and unethical doing of the people inside of the organization will
reflect to the company itself.
Production Process
The production process of the business products is the highlight of
the business to attain the specific goals, to create output from input
conversion process.
Table 4.9, Procedure in making Frothy Vanilla cloud

FROTHY VANILLA CLOUD
Ingredients Procedure
1 cup milk 1.Heat the Milk:
1 tbsp sugar  Warm the milk in a small saucepan over
1/2 tsp vanilla extract medium heat or in the microwave until it's
2 tbsp brewed coffee warm but not boiling.
2.Mix Vanilla Sugar:
 In a small bowl, mix the sugar and vanilla
extract together until well combined.
3.Froth the Milk:
 If you have a milk frother, froth the warm
milk until it becomes light and frothy.
4.Add Vanilla Sugar:
65
 While the milk is still frothy, add the vanilla
sugar mixture. Stir until the sugar is
dissolved.
5.Serve:
 Pour the frothy vanilla milk over your
favorite beverage, such as coffee or hot
chocolate.
Table 4.10, Procedure in making Hazelnut Haven Froth

Hazelnut Haven Froth
1 cup milk 1.Heat the Milk:
1 tbsp hazelnut syrup  Warm the milk in a small saucepan over
1 tbsp chopped medium heat or in the microwave until it's
hazelnuts warm but not boiling.
1/2 teaspoon sugar 2.Add Hazelnut Syrup:
 While the milk is warming, add the
hazelnut syrup to the cup.
3.Froth the Milk:
 If you have a milk frother, froth the warm
milk until it becomes light and frothy.
4.Combine with Hazelnuts:
 Stir in the chopped hazelnuts into the
frothy milk.
5.Adjust Sweetness:
 Taste the froth and adjust the sweetness
by adding sugar if needed. The hazelnut
syrup may already provide sweetness, so
adjust according to your taste.
66
6.Serve:
 Pour the hazelnut-infused frothy milk over
your favorite beverage, such as coffee or
hot chocolate.
7.Optional Garnish:
 You can sprinkle a few chopped hazelnuts
on top for garnish
Table 4.11, Procedure in making Toasted Coconut Cream Froth

Toasted Coconut Cream Froth
1 cup hot brewed 1.Brew the Coffee:
coffee  Brew your favorite coffee using your
1/2 cup coconut preferred method. Make sure it's hot and
cream ready to go.
1 tbsp sweetened 2.Toast the Coconut:
shredded coconut  In a small pan over medium heat, add the
1 tsp sugar shredded coconut. Stir constantly until the
1/4 teaspoon vanilla coconut turns golden brown and releases
extract a fragrant aroma.
3.Prepare the Coconut Cream:
 In a small saucepan, heat the coconut
cream over medium heat until it's warm
but not boiling.
 Stir in the toasted coconut, sugar, and
vanilla extract. Continue to heat, stirring,
until the sugar is dissolved and the
67
mixture is well combined.
4.Froth the Coconut Cream:
 If you have a milk frother, froth the
coconut cream mixture until it becomes
light and frothy.
5.Assemble Your Coffee:
 Pour the hot brewed coffee into your mug.
Carefully spoon the frothed coconut cream
on top of the coffee.
6.Optional Garnish:
 Sprinkle a little extra toasted coconut on
top for garnish.
Table 4.12, Procedure in making Chocolate Bliss Frothy Coffee

Chocolate Bliss Frothy Coffee
1 cup hot brewed 1.Brew the Coffee:
coffee  Brew your favorite coffee using your
2 tbsp cocoa powder preferred method. Make sure it's hot and
2 tbsp milk ready to go.
1 tbsp sugar 2.Prepare Chocolate Milk:
 In a small bowl, mix the chocolate syrup or
cocoa powder with the milk until well
combined. You're essentially making a
chocolate milk mixture.
3.Heat the Chocolate Milk:
 Warm the chocolate milk mixture in a
small saucepan over medium heat or in
the microwave until it's warm but not
68
boiling.
4.Froth the Chocolate Milk:
 Froth the warm chocolate milk until it
becomes light and frothy.
5.Sweeten to Taste:
 Add sugar to the frothed chocolate milk
and stir until the sugar is dissolved.
6.Pour over Coffee:
 Pour the frothy chocolate milk over the hot
brewed coffee.
7.Optional Toppings:
 Top with whipped cream for an extra
indulgent treat.
Table 4.13, Procedure in making Aroma Twist Croissant

Aroma Twist Croissant
2 1/4 tsp yeast 1.Activate the Yeast:
1/4 cup warm water  In a small bowl, combine the warm water
1 cup warm milk and yeast. Let it sit for about 5-10 minutes
1/4 cup sugar until it becomes frothy.
3 cups all-purpose 2. Prepare the Dough:
1 teaspoon salt  In a large mixing bowl, combine the
1 cup butter activated yeast mixture, warm milk, sugar,
flour, and salt. Mix until a dough forms.
3. Incorporate Butter:
 Roll out the dough on a floured surface
into a rectangle. Place the cold butter in
the center and fold the dough over the
butter. Roll it out again and fold it into
69
thirds. Repeat this process 3-4 times,
allowing the dough to rest in the
refrigerator for 30 minutes between each
fold.
4. Add Aromatic Twist:
 In a small bowl, mix the orange zest,
ground cinnamon, and brown sugar. Roll
out the croissant dough into a large
rectangle. Sprinkle the aromatic twist
mixture evenly over the dough.
5. Shape the Croissants:
 Cut the dough into triangles. Roll each
triangle tightly from the wider end to the
tip.
6. Let Them Rise:
 Place the rolled croissants on a baking
sheet lined with parchment paper. Cover
them with a clean kitchen towel and let
them rise for about 1-2 hours, or until
doubled in size.
7. Bake:
 Preheat your oven to 400°F (200°C).Bake
the croissants for 15-20 minutes or until
they are golden brown and puffed up.
Table 4.14, Procedure in making Choco Charm Eclairs
Choco Charm Eclairs
For Pastry: 1. Prepare the Pastry:
1 cup water  In a medium saucepan, combine water
1/2 cup unsalted
70
butter and butter. Bring to a boil.
1 cup all-purpose  Add the flour and salt all at once, stirring
flour vigorously with a wooden spoon until the
1/4 teaspoon salt mixture forms a ball and pulls away from
4 large eggs the sides of the pan.
 Remove from heat and let it cool for a
For the Chocolate couple of minutes.
Filling:  Add the eggs one at a time, beating well
1 cup heavy cream after each addition, until the batter is
1 cup semi-sweet smooth.
chocolate chips  Preheat your oven to 425°F (220°C).
1 tablespoon  Pipe or spoon the choux pastry onto a
unsalted butter baking sheet lined with parchment paper,

forming eclairs of your desired size.
For the Chocolate  Bake for 15 minutes at 425°F (220°C),
Glaze: then reduce the oven temperature to

375°F (190°C) and bake for an additional
1/2 cup semi-sweet
15 minutes or until the éclairs are golden
chocolate chips
brown. Allow them to cool.
1/4 cup heavy cream
2. Prepare the Chocolate Filling:
1 tbsp powdered
sugar  In a small saucepan, heat the heavy
cream until it just begins to simmer.
 Pour the hot cream over the chocolate
chips and let it sit for a minute, then stir
until smooth.
 Add the butter and stir until incorporated.
 Allow the chocolate filling to cool and
thicken.
3. Fill the Eclairs:
 Once the éclairs are completely cooled,
71
use a piping bag or a small spoon to fill
them with the chocolate filling.
4. Prepare the Chocolate Glaze:
 Microwave in short intervals, stirring
between each, until the chocolate is
melted and the glaze is smooth.
5. Glaze the Eclairs:
 Dip the top of each filled éclair into the
chocolate glaze.
6. Serve and Enjoy:
 Allow the chocolate glaze to set before
serving.
 Optionally, you can drizzle extra melted
chocolate or sprinkle some chopped nuts
on top for an added touch.
Capital Investment
The capital investment will be coming from the 9 (nine) owners namely:
Abrin, Kate Hylene P, Alzate, Roger S., Bagni, Abegail B., Espinoza, Angeline M.,
Fabro, Zayin, Manzano, Trixie Ann L., , Oliveras, Andrea, Tingco, Rosalinda and
Urbiztondo, Engilbert The capital investment budget will be Php.6,300,000.00
(Six million three hundred thousand pesos) the capital is divided to the nine
owners, each of them will be providing a capital investment budget share for
Trixie 2,500,000, Kate Hylene, Abegail and Rosalinda will share 600,000 each
and Zayin, Roger, Andrea, Angeline and Engilbert will share 400,000 each the
capital covers all the expenses including the land, building and equipment’s
72
Source Capital
The source capital of the proposed business will be the savings of the
proprietor. The capital is amounting ₱6,300,000.00. The proponents identify the
project cost in order to determine the pre-operating and operating expense of the
business.
BILL OF MATERIALS
Table 4.15, Material Expenses
Scope of Works
Item Description Qty Unit Cost Total Cost
73
I Mobilization 5 LS 20,000 100,000
Sub Total P 100,000
II Concrete and Masonry Works And

Formworks, Scaffolding
Portland 600 bags 300 180,000
Cement
Sand 50 cu.m. 650 32,500
Gravel 30 cu.m. 950 28,500
4"CHB 250 pcs 70 175,000

0
Ordinary 170 pcs 450 76,500
Plywood (1/4)
2”2” Wood 1,50 bd.ft 90 135,000
Frame 0
Lumber 2"x2"x10 260 bd.ft 80 208,000
ft 0
Lumber 2"x 950 bd.ft 250 237,500
3"x14 ft
Sub Total P 1,073,000
III STEEL AND REINFORCEMENT WORKS
10 mm Dia. Bar x 500 pcs 350 175,000

6m
12 mm Dia. Bar x 55 pcs 500 27,500
6m
16 mm Dia. Bar x 68 pcs 600 40,800
6m
25 mm Dia. Bar x 90 pcs 1500 135,000
6m
#16 - G.I Tie 32 kg 90 2,880
Wire
Sub Total P 381,180
74
IV EARTHWORKS
Excavation 55 cu.m 500 27,500

.
Backfill and 48 cu.m 350 16,800
Compaction .
Sub Total P 44,300
V ROOFING WORKS
32" x 9' Corrugated G.I 20 pcs 1200 24,000

she

she

she

she
2" x 4' C Purlins 30 pcs 600 18,000
2" x 8' Rafter 28 pcs 1250 35,000
2" x 6' Facia Board 17 pcs 1100 18,700
G.I Rivets 15 kg 180 2,700
G.I Washers 30 kg 200 6,000
Sub Total P 154,400
VI CEILING WORKS
Gypsum Board Ceiling 25 pcs 500 12500

Pan
G.I. Metal Furring Studs 50 pcs 400 20000

a
Gypsum Putty 40 kg 55 2200
P 34,700
Sub Total
75
VII PLUMBING FIXTURES AND
INSTALLATIONS
Lavatory 1 pcs 1500 1500
Faucet 2 Pcs 100 200
Valve 2 Pcs 300 300
Floor Drain 1 Pcs 100 100
Kitchen Sink 1 pcs 1600 1600
Water Closet 1 Pcs 1250 2500
90 deg. Elbow 4 pcs 100 400
45 deg. Elbow 2 Pcs 100 200
Reducer Tee 1 Pcs 100 100
PVP PIPE (Complete 2 Pcs 150 300

System)
PPR PIPE (6m) 3 pcs 150 450
Tee 8 pcs 100 800
Sub Total P 7,200
VIII ELECTRICAL WORKS
Pin light 10 Pcs 200 2000
Wall Lamp 2 Pcs 300 600
Incandescent Lamp 12 Pcs 200 2400
Utility Box 15 Pcs 30 450
Receptable with screw 17 Pcs 50 850
Fuse Box 1 Pcs 0 0
Convenience Outlet 14 Pcs 150 2100
Switch Outlet 1 gang 13 Pcs 100 300
Switch Outlet 2 gang 5 Pcs 150 750
76
Circuit Breaker 1 Pcs 1000 1000
Aircon Outlet 3 Pcs 300 900
Water Heater 2 Pcs 800 1600
LO Conduits 50 Meters 20 1000
LO Wires 150 Meters 30 4500
CO conduits 47 Meters 125 5875
CO Wires 141 Meters 30 4230
Sub Total P 28,555
IX DOORS ANSD WINDOW
Main Door (Panel Type) 1 Pcs 6500 6500
Doors (Flush Type) 3 Pcs 2500 7500
Toilet Door (PVC Type) 1 Pcs 1500 1500
Doorknob 4 Pcs 250 1000
Sliding Windows 1 Pcs 4500 4500
Sub Total P 21,500
X PAINTING WORKS
Surface Primer 10 Gal. 1000 10000
Neutralizer 2 Lit. 200 400
Acrylic Roof Shield Pain 4 Gal. 950 3800
Wood Primer 2 Gal. 200 400
Quick Drying Enamel 2 Gal. 1000 2000
Paint Thinner 0.5 Gal. 150 75
Sub Total P 16,675
XII WALL
77
Glass Wall 14 Pcs 20000 280,000
Sub Total P 105,000
TOTAL MATERIAL COST P1,078,410
LABOR COST (30% of material cost) P 716,625

Total Construction Cost P 2,586,100
Table 4.16, Work Duration
CHAPTER V
FINANCIAL STUDY
78
Building a financial plan can be the most intimidating part of writing
your feasibility study. It's also one of the most vital. Business that has a full
financial plan in place more prepared to pitch to investors, receive funding,
and achieve long term success. A financial plan is simple an overview of
your current business financials and projections for growth. Think of any
documents that represent your current monetary situation and the
projections being your future expectations.
Major Assumptions
• All transactions are paid in cash basis and all amounts are in
Philippine pesos
• Cost of Service/cost of sales/cost of goods sold will increase by 3%
per year to cover inflation.
• Supplies will be replenished on a yearly basis and the cost will
increase by 3% per year
• Salaries of employees will remain constant for the next 5 years.
• SSS, Phil health, Pag-ibig premiums will be paid on a monthly basis.
• Depreciation expense is computed using straight line depreciation
method. Assets' useful life is 10 years.
• Long-term assets will not have any salvage value
• Income tax rate is pegged at 30%
• Taxes withheld for the month of December will be remitted on the
following year (January).
79
• Sales revenue will increase by 5% due to increase in pricing of the
product/service
Start-up Costs and Funds

The General Partners will invest their own personal savings
amounting to PHP 6,300,000.00 each in the form of cash and personal
loans for a total of ordinary share capital of PHP 6,300,000.00. Indicated
below are the names of the partners, their respective contributions and
number of shares owned.
Table 5.1, Start-up Costs and Funds.
Partners No. of shares owned Capital
Abrin, Kate Hylene P 1 600,000
Alzate, Roger S. 1 400,000
Bagni, Abegail B. 1 600,000
Espinoza, Angeline M. 1 400,000
Fabro, Zayin 1 400,000
Manzano, Trixie Ann L. 1 2,500,000
Oliveras, Andrea 1 400,000
Tingco, Rosalinda 1 600,000
Urbiztondo, Engilbert 1 400,000
TOTAL 6,300,000
CAFÉ AROMAGIC
FINANCIAL RATIOS
Table 5.2, Projected Financial Ratios
80
2024 2025 2026 2027
Return of
Investment
1,157,28 1,353,62
Net Income 946,801 976,674 9 5 1,5
6,300,00 6,300,00
Investment 6,300,000 6,300,000 0 0 6,3
ROI 0.15 0.16 0.18 0.21
Payback Period 0.14 0.41 0.70 1.01

6,300,00 6,300,00
Investment 6,300,000 6,300,000 0 0 6,3
Cumm. Cash 4,386,70 6,380,82
Flow 892,055 2,607,362 7 1 8,7
Rate of Return
of Assets
1,157,28 1,353,62
Net Income 946,801 976,674 9 5 1,5
6,162,92 7,257,31
Total Asset 3,277,408 5,117,137 4 5 8,5
ROA 0.29 0.19 0.19 0.19
Total Current
Asset
3,773,32 4,867,71
Current Asset 1,527,808 2,727,537 4 5 6,2
6,162,92 7,257,31
Total Asset 3,277,408 5,117,137 4 5 8,5
CAFÉ AROMAGIC
INCOME STATEMENT
Table 5.3, Projected Income Statement
2024 2025 2026 2027 2028
Gross Revenue 6,187,500 6,682,500 7,217,100 7,794,468 8,418,025
Less: Sale Tax 804,375 804,375 868,725 938,223 1,013,281
NET SALES 5,383,125 5,878,125 6,348,375 6,856,245 7,404,745
Total Revenue 5,383,125 5,878,125 6,348,375 6,856,245 7,404,745
81
Cost of Sales 1,803,347 1,969,172 2,126,706 2,296,842 2,480,589
GROSS PROFIT 3,579,778 3,908,953 4,221,669 4,559,403 4,924,155
Labor 716,625 741,707 767,667 794,535 822,344
Telephone 30,000 31,050 32,137 33,262 34,426
Supplies 35,000 36,225 37,493 38,805 40,163
Utilities- Light &power 120,000 124,200 128,547 146,351 151,473
- Water 21,600 22,356 23,138 23,948 24,786
Repair & Maintenance 132,000 136,620 141,402 146,351 151,473
Proffesional Fee 80,000 82,800 85,698 88,697 91,802
Total Semi Variable 418,600 433,251 448,415 464,109 480,353
Total Controllable Cost 1,135,225 1,174,958 1,216,081 1,258,644 1,302,697
MNGR.CONTRIBUTION 2,444,553 2,733,995 3,005,588 3,300,759 3,621,458

PROFIT
Marketing 180,000 186,300 192,821 199,569 206,554
Depreciation & 437,400 597,400 597,400 597,400 597,400

Amozataztion
Rent 360,000 360,000 360,000 360,000 360,000
Taxes & Licenses 24,580 45,884 49,554 53,518 57,800
Insurances 75,000 81,000 87,480 94,478 102,037
Bank Charges 25,000 27,000 29,160 31,493 34,012
Miscellaneous 50,000 54,000 58,320 62,986 68,024
Total Fixed Costs 474,580 507,884 524,515 542,475 561,873
Total Operating Expenses 2,227,205 2,466,541 2,530,816 2,598,089 2,668,524
UNIT CONTRIBUTION 1,352,574 1,442,412 1,690,853 1,961,314 2,255,631

(LOSS)
Interest Expenses - 33,014 26,309 19,295 11,960
Net Income 1,352,574 1,409,398 1,664,545 1,942,019 2,243,671
Income Tax Effect 405,772 432,724 507,256 588,394 676,689
NETOPERATING 946,801 976,674 1,157,289 1,353,625 1,566,982

PROFIT
Depreciation 597,400 597,400 597,400 597,400 597,400
82
OPERATING CASH 1,304,201 1,574,074 1,754,689 1,951,025 2,164,382
FLOWS
CAFÉ AROMAGIC
BALANCE SHEET
Table 5.4, Projected Balance Sheet
2024 2025 2026 2027 2028
Asset
Current Assets:
Cash and cash 892,055 1,715,307 2,671,400 3,709,421 5,033,767
equivqlents
Inventory 425,753 862,230 921,924 963,295 1,006,355
Prepared Expenses 210,000 150,000 180,000 195,000 170,000
Total Current Assets 1,527,808 2,727,537 3,773,324 4,867,715 6,210,121
Property and equipment 2,187,000 2,987,000 2,987,000 2,987,000 2,987,000

Accumulated (437,400) (597,400) (597,400) (597,400) (597,400)
Depreciation
Total Assets 3,277,408 5,117,137 6,162,924 7,257,315 8,559,721
Liabilities and sharehoders equity

Accounts payable 179,100 257,155 286,612 170,043 100,146
Accountts Expenses 50,000 35,000 40,000 50,000 55,000
Current Portion of Long - 145,959 152,664 159,678 167,013
Total Current Liabilities 229,100 438,114 479,277 379,721 322,159
Long Term Debt _ 654,041 501,377 341,699 174,686
Total Liabilities 229,100 1,092,155 980,654 721,420 496,845
Shareholders equity
Current Liabilities
Income Tax Payable 229,100 438,114 479,277 379,721 322,159
Total Liabilities 229,100 438,114 479,277 379,721 322,159
SHAREHOLDERS EQUILTY
Shareholders equity 3,048,308 4,024,982 5,182,270 6,535,895 8,102,877
TOTAL SHAREHOLDERS 3,048,308 4,024,982 5,182,270 6,535,895 8,102,877
EQUILTY
Total Liabilities and 3,277,408 5,117,137 6,162,924 7,257,315 8,599,721
83
Shareholders equity
CAFÉ AROMAGIC
STATEMENT OF CASH FLOW
Table 5.5, Projected Cash Flow Statement
2024 2025 2026 2027 2028
Cash Flows from Operating Activities
Net Earning 946,801 976,674 1,157,28 1,353,625 1,566,982
9
Adjustments to reconcile net earnings to net cash provided by operating activities
Depreciation and 437,400 597,400 597,400 597,400 597,400
Amortization
Changes in operating assets and liabilities:
Inventory (824,247) (436,477) (59,694) (41,370) (43,067)
Prepaid Expenses (210,000) (60,000) 30,000 (15,000) 25,000
Accounts Payable 179,100 78,055 29,458 (116,569) (69,898)
Accrued Expenses 50,000 15,000 5,000 10,000 5,000
Net cash provided 579,055 1,260,652 1,699,45 1,788,085 2,081,432
by operating 2
activities
Cash flow 2,187,000 1,058,427 597,400 597,400 597,400
investing
activities:
Purchases of
property and
equipment
Net cash used in 2,187,000 1,058,427 597,400 597,400 597,400
investing activities
Cash flows from financing activities:
Proceeds from long- - 800,000 - - -
term debt`
Repayments of - (178,973) (178,973) (178,973) (178,973)
long-term debt
Repayments of - - 33,014 26,309 19,295
short-term debt
Net cash provided - 621,027 (145,959) (152,664) (159,678)
by financing
activities
Cash and cash 2,500,000 892,055 1,751,30 2,671,400 3,709,421
equivalents at 7
84
beginning of year
Cash and cash 892,055 1,715,307 2,671,40 3,709,421 5,033,767
equivalents at end 0
of year
Table 5.6, Assumption
I/S
Sales Growth 8%
2,586,100.0 Annual Gross
Construction 0 Sales 6,187,500
Average Monthly
Sales 515,625
Materials
Management Daily Sales 17,187.50
Small Wares 108,000.00

Furniture’s &
Fixtures 299,000.00
1,450,000.0
Equipment 0
Cost of Sales
MIS / POS 330,000.00 Rate Rate 33.5%
Labor Rate 716,625.00 11.6%
Administrativ Telephone/
e Internet 30,000.00 0.5%
Funds & Other
Deposits 15,000.00 Supplies 35,000.00 0.6%
Security
Deposit 150,000.00 Light and Power 120,000.00 1.9%
Construction
Bond 45,000.00 Water 21,600.00 0.3%
Repairs &
Permits 18,900.00 Maintenance 132,000.00 2.1%
Miscellaneous 3,000.00 Professional Fee 80,000.00 1.3%
Advance Rent 45,000.00 Marketing 180,000.00 2.9%
Insurance 75,000.00 1.2%
1,250,000.0
Inventory 0 Bank Charges 25,000.00 0.4%
Miscellaneous 50,000.00 0.8%
Total 6,300,000.0
Investment 0 Taxes & Licenses Rate 0.7%
Rent 360,000.00 4.8%
Income Tax Rate 30.00% 30.0%
Inflation Rate 3.50%

5Year
Asset Life s
85
Table 5.7, Cost of Goods Sold
Cost of Goods
Sold
2024 2025 2026 2027 2028
1,250,00 1,803,34 1,969,17 2,126,70 2,296,84
Beg Inventory 0 7 2 6 2
1,028,05 1,079,45 1,133,43 1,190,10
Purchases 979,100 5 8 1 2
2,229,10 2,831,40 3,048,63 3,260,13 3,486,94
TGAS 0 2 0 6 4
1,006,35
Inventory, End 425,753 862,230 921,924 963,294 5
1,803,34 1,969,17 2,126,70 2,296,84 2,480,58
COGS 7 2 6 2 9
Accounts
Payable
Beginning - 179,100 257,155 286,613 170,043
1,028,05 1,079,45 1,133,43 1,190,10
Purchases 979,100 5 8 1 2
Less: Payment 1,050,00 1,250,00 1,260,00
made 800,000 950,000 0 0 0
AP, End 179,100 257,155 286,613 170,043 100,146
Permits and Licenses

Table 5.8, Permits and Licenses
Particulars Annual Cost

Business Location Clearance 200.00
Sanitary Health Clearance 300.00
Fire Safety Clearance 500.00
Business Tax 7,500.00
DTI Business Name Registration Certificate 500.00
Brgy. Clearance 500.00
Community Tax 500.00
BIR Registration 500.00
Garbage Collection Fee 500.00
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Total 11,000.00
CHAPTER VI
SOCIO- ECONOMIC STUDY
Cafe Aromagic is a proposed coffee shop situated in a commercial. The
cafe aims to provide customers with high-quality coffee and a relaxing
atmosphere where they can enjoy their drinks and socialize with friends. This
feasibility study will evaluate the economic and social viability.
EMPLOYEE
The success of any business greatly depends on its employees. In the
case of Cafe Aromagic, it is crucial to have a well-trained and motivated team to
ensure the delivery of excellent customer service and quality products. The cafe
will have a staff of 9 employees. Most of the employees and laborers in
Binalonan were residents, thus they will profit from the revenue they make to
cover their living expenses.
CUSTOMERS
Consumers are the soul of every business, and the cafe's ability to attract
in and keep loyal customers will be key to its success. The target market for Cafe
Aromagic includes office workers, students, and tourists visiting the city. The
location of the cafe in a busy commercial area and its proximity to offices and
educational institutions make it an ideal spot for these target customers.
ENVIRONMENT
87
The environment is an important factor to consider in the feasibility of any
project. Cafe Aromagic strives to promote an eco-friendly environment by using
sustainable practices in its operations. These practices include using recyclable
materials, proper waste management, and sourcing coffee beans from suppliers
who engage in ethical and sustainable practices.
GOVERNMENT
The government's role in the feasibility of Cafe Aromagic is crucial, as it
has the power to create an enabling environment for businesses to thrive. One of
the main areas where the government can support the cafe is through the
provision of necessary licenses and permits. The process of obtaining these
permits can be time-consuming and expensive, which can affect the project's
feasibility.
CONTRIBUTE TO THE LOCAL GOVERNMENT
The proposed business will benefit the economy by giving a tax income for
local government. These taxes will help to the economy to enhance the nature,
highways, and rail roads. And that’s due to the taxes that the proposed business
will pay.
GROWTH OF RELATED INDUSTRY
The proposed business can make a contribution to the growth and event
in the locality of Binalonan. Since the business innovates strategy in promoting
coffee and pastries it’d inspire different industry to innovate other products too. In
88
establishing the business, it will also promote and entice other investor to have
interaction on this sort of busine
CHAPTER VII
SUMMARY, CONCLUSION AND RECOMMENDATION
Café Aromagic, a quaint coffee shop located at McArthur. Highway,
Canarvacanan, Binalonan Pangasinan has been a delightful addition to the local
coffee scene. Café Aromagic will operate partnership, Café Aromagic will provide
our customers the world’s best coffees with excellent service at a price that is fair
to the cafe and our customers, Café Aromagic interior design focuses on cozy
and aesthetic to keep up with trend and to attract customers. Our shop is 238
sqm with drive thru. The advertising promotion we have flyers and accounts on
TikTok, Facebook, and Instagram. The Café Aromagic will rent We`ve looked at
the cafe`s success over the last year, including its special offerings, client
feedback and fin uncials. Because of its distinctive aromatic coffee blends,
inviting atmosphere, and warm service. Café Aromagic has swiftly developed a
loyal following of patrons. Revenue at the cafe has consistently risen, a sign of its
rising notoriety.
However, there is still room for growth and progress in terms of upholding
consistent quality and expanding the menu. Apart from the food and drink, the
atmosphere in cafe is what sets it apart. The staff are friendly and attentive,
always ready to strike up a conversation or recommend their favorite menu
items. Whether it`s a quick pit stop for your daily caffeine fix or a place to relax
89
and connect with friends, our coffee shop provides a welcoming haven for coffee
connoisseurs and casual drinkers alike.
Conclusion
The conclusion of Cafe Aromagic Business Feasibility by analyzing the
competitor, operational aspects, marketings aspects and financial aspects, can
be concluded that Cafe Aromagic business is profitable and therefore feasible to
operated. This feasibility study is useful for the next generation of students and
the investors, and company management to improve our economy. One of the
most important aspects of starting a business is choosing the right location, along
with having reliable sources of product supply to meet the expanding consumer
demand. The partnership business structure is the best suitable for restaurants.
To start up Café Aromagic, the adequate amount is Php 6,300,000.
Furthermore, that this study, which includes time and motion studies, provide
consistency in tastes and manufacturing efficiency. Additionally, the café will gain
from creating a unique product range and offering a characteristic flavor for some
of its beverages.
Recommendation
The researchers derived at the following recommendations.
1. Conduct market research and gather data that would serves as a guide in
establishing the business.
2. Present products that will suit the budget of the consumers but with high
quality so as to attract more of target market.
90
3. Design a competitive tactics that would attract customers and promote your
establishment.
4. Identify your possible competitors and know your advantages and
disadvantages over them.
5. Formulate operational system, policies and procedures in all areas of
operation.
6. Establish a good public relation which would attract customers.
7. Know the needs of your customers. Make sure to satisfy the needs and
demands of the customers.
8. Establish an employee’s development program which would help them
improve rendering those services. So as to satisfy your customer's needs.
91

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Chapter I

lifestyle of the urban population (Kasnaeny, Sudiro, Hadiwidjojo, & Rohman,

leisure destinations (Shenoy, 2005); including THE COFFEE SHOP

a working space (O'Connor, 2018).

Café Aromagic stands out as a visionary endeavor, ready to fascinate and

transformed into a multisensory experience. This feasibility study begins a

thorough investigation of Café Aromagic, a novel coffee business idea that

combines the magic of fragrances with the spirit of a café.

In recent years, the coffee business has witnessed a dramatic transition.

Instead of just a simple beverage, it has become a crucial component of the

contrast, the term "aromagic" conjures up the promise of an enchanted and

boundaries, Ray Oldenburg highlights the value of welcoming, shared places.

the Experience Economy hypothesis, advanced by Pine and Gilmore, contends

is supported by Café Aromagic, which makes a multimodal coffee experience

may significantly impact consumer perceptions and loyalty.

Tingco, Rosalinda, Urbiztondo, Engilbert. In a partnership, the responsibilities

business will be located in McArthur Highway Canarvacanan Binalonan

The proprietors conducted this business because of the extensive market

landscape to be used for attracting the market segments to be targeted by the

accommodates these changing consumer demands. The committed group of

professionals and coffee enthusiasts at the company contribute a wealth of

experience to assure the success of this endeavor.

In order to determine the viability and potential success of Café Aromagic,

market analysis, management strategies, technological needs, financial

business as well as a sensory refuge where coffee enthusiasts may go on

memories of Café Aromagic's charm.

coffee options available on their university's campus. The researchers dreamed

entrepreneurial spirit, allowed them to create a place that brought people

demand and supply for the product need to be carefully considered.

Aroma Twist Croissant.

Table 2.1 The Product, Product Description and Price

Particular Product Description Price

Frothy Vanilla Cloud. An ₱45.50

Toasted Coconut Cream ₱55.00

Chocolate Bliss Frothy ₱62.50

Aroma Twist Croissant. This ₱40.00

quality of product for a reasonable price.

Table 2.2, Costing of Frothy Vanilla Cloud

Total Cost 25.49

Table 2.3, Costing of Hazelnut Haven Froth

Total Cost ₱35.97

Table 2.4, Costing of Toasted Coconut Cream Froth

Total Cost ₱31.69

Table 2.5, Costing of Chocolate Bliss Frothy Coffee

Total Cost ₱38.47

Table 2.6, Costing of Aroma Twist Croissant

Total Cost ₱211.23

Table 2.7, Costing of Choco Charm Eclairs

Product Name Choco Charm Eclairs

Total Cost ₱270.68

A sales forecast is a depth report that predicts what a salesperson,

gain 5% increase in sales revenue for the next 5 years.

daily sales, monthly sales, and annual sales forecast.

Table 2.8, Daily Target sales of Café Aromagic

Binalonan, Pangasinan. The result of survey are follows:

Figure 2.1, Classification of respondents According to Gender

and 29% of the respondents are male.

Figure 2.2, Classification of respondents According to Age

Occupati onal Status

Figure 2.4, Classification of respondents According to Coffee Intake

How frequently do you drink coff ee?

Figure 2.5, Classification of respondents According to Coffee Flavors

wants Toasted Coconut Cream Froth with a total of 100%.

Figure 2.6, Classification of respondents According to Visiting a Coffee