CITY UNIVERSITY OF PASAY

COLLEGE OF BUSINESS ADMINISTRATION

A Franchise Business Plan of Bea’s Happy Cup in

Eden Plaza Building No. 2464 Harrison, Pasay City

Presented To:

Mr. Edwin Bernas

A Partial Requirement for the Course

EEM 2 Franchising

Submitted By:

Lim, John Peter Cyrus B.

3-2 BSBA Marketing Management

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TABLE OF CONTENTS PAGES

Executive Summary 3

Business Description 6

2.1. Describe the company for you wish to purchase franchise rights

2.2. List your short-term and long-term objective

2.3. Describe the company’s challenges and obstacles

2.4. Describe the requirements to franchise

Market Analysis 11
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I. EXECUTIVE SUMMARY

Bea's Happy Cup is a charming coffee and cake establishment located in the

heart of downtown. Our mission is to provide customers with a warm and

inviting space where they can enjoy exceptional coffee and delectable cakes in

a relaxed atmosphere.

Key Highlights

Quality Coffee: We pride ourselves on serving premium coffee sourced from

the finest beans around the world. Our skilled baristas craft each cup with

precision and care, ensuring a consistently excellent coffee experience for our

patrons.

Delicious Cakes: At Bea's Happy Cup, we believe that every visit should be a

treat for the taste buds. That's why we offer a mouthwatering selection of cakes

and pastries made from scratch using high-quality ingredients. From classic

favorites to unique creations, there's something to satisfy every sweet craving.

Cozy Atmosphere: Our cozy cafe provides a welcoming retreat from the hustle

and bustle of city life. With comfortable seating, soothing music, and friendly

service, Bea's Happy Cup is the perfect place to unwind with a cup of coffee

and a slice of cake.

Community Engagement: We are committed to being an active member of the

community and regularly host events and activities that bring people together.

Whether it's a live music night, a book club meeting, or a charity fundraiser,

there's always something exciting happening at Bea's Happy Cup.

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Sustainability: We recognize the importance of environmental sustainability

and strive to minimize our impact on the planet. From using biodegradable

cups and utensils to sourcing ingredients from local suppliers, we're dedicated

to operating in an eco-friendly manner.

In summary, Bea's Happy Cup is more than just a coffee and cake shop—it's a

destination where customers can enjoy delicious treats, connect with friends,

and feel at home. With our commitment to quality, hospitality, and community,

we aim to create memorable experiences for everyone who walks through our

doors.
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II. BUSINESS DESCRIPTION

Describe the company for you wish to purchase franchise rights

The company interested in purchasing franchise rights of Bea's Happy Cup is a

well-established hospitality and food service conglomerate with a proven track

record of success in the industry. This company has a strong presence both

domestically and internationally, with a portfolio of successful franchise

brands across various sectors such as cafes, restaurants, and quick-service

chains.

Characteristics of the Company

Experience and Expertise: The company boasts a team of seasoned

professionals with extensive experience in franchising, operations

management, and brand development. They have a deep understanding of

consumer preferences and market trends, enabling them to identify lucrative

opportunities and capitalize on them effectively.

Financial Stability: With robust financial resources and a solid financial track

record, the company is well-positioned to invest in franchise opportunities and

support franchisees throughout the establishment and growth phases. They

have the capability to provide initial capital investment, operational support,

and ongoing resources to ensure the success of their franchise partners.

Global Reach: Leveraging their international network and market insights, the

company has the capability to expand Bea's Happy Cup franchise both

domestically and internationally. They have a strategic approach to market

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penetration, tailored to the unique characteristics and preferences of each target

market.

Commitment to Excellence: The company places a strong emphasis on quality,

consistency, and customer satisfaction. They are dedicated to upholding the

brand standards and values of Bea's Happy Cup, ensuring that every franchise

location delivers an exceptional experience to customers.

Supportive Infrastructure: The company offers comprehensive support services

to franchisees, including site selection assistance, training programs, marketing

support, supply chain management, and ongoing operational guidance. They

prioritize the success and profitability of their franchise partners, providing

them with the tools and resources needed to thrive in the competitive coffee

and cafe industry.

Overall, the company seeking franchise rights of Bea's Happy Cup is a

reputable and forward-thinking organization with the expertise, resources, and

commitment to drive the expansion and success of the brand on a global scale.

They are dedicated to fostering a collaborative partnership with franchisees and

building a thriving network of Bea's Happy Cup locations that delight

customers and generate sustainable growth.

List your short-term and long-term objective

Short-term Objectives (1-3 years):

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1. Market Penetration: Establish Bea's Happy Cup as a recognizable and

preferred coffee and cake destination in the local market through targeted

marketing campaigns, promotions, and community engagement initiatives.

2. Franchise Expansion: Secure franchise agreements with qualified partners to

expand Bea's Happy Cup presence in key geographic locations, focusing on

areas with high foot traffic, affluent demographics, and strong demand for

specialty coffee and artisanal baked goods.

3. Product Innovation: Continuously enhance the menu offerings by

introducing new and seasonal coffee blends, cakes, and pastries that cater to

evolving consumer preferences and trends, ensuring a diverse and appealing

selection for customers.

4. Operational Efficiency: Streamline operational processes and optimize

resource utilization to improve efficiency, reduce overhead costs, and

maximize profitability across Bea's Happy Cup locations.

5. Customer Experience: Prioritize exceptional customer service and

satisfaction by providing attentive staff training, maintaining a clean and

inviting ambiance, and soliciting feedback from patrons to address any issues

promptly and effectively.

Long-term Objectives (3-5 years and beyond):

1. National and International Expansion: Expand Bea's Happy Cup presence

beyond the local market by establishing franchise locations in new cities and
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countries, leveraging market research and strategic partnerships to identify

lucrative growth opportunities.

2. Brand Recognition: Position Bea's Happy Cup as a globally recognized

brand synonymous with quality, authenticity, and innovation, earning

accolades and awards for excellence in the coffee and cake industry.

3. Sustainable Growth: Maintain sustainable growth and profitability while

upholding the brand's commitment to environmental stewardship, ethical

sourcing practices, and social responsibility initiatives that positively impact

communities and the planet.

4. Digital Transformation: Embrace technology-driven solutions to enhance the

customer experience, streamline operations, and facilitate online ordering,

delivery, and loyalty programs, catering to the preferences of tech-savvy

consumers and adapting to changing market dynamics.

5. Cultural Integration: Foster a cohesive corporate culture and franchise

network characterized by collaboration, transparency, and shared values,

empowering franchisees to take ownership of their businesses while aligning

with Bea's Happy Cup overarching mission and vision. By pursuing these

short-term and long-term objectives, Bea's Happy Cup aims to achieve

sustained growth, profitability, and brand loyalty while enriching the lives of

customers and stakeholders alike with delightful coffee and cake experiences.

Describe the company’s challenges and obstacles

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Bea's Happy Cup, like any business, faces several challenges and obstacles that

can impact its operations and growth. Some of the key challenges include.

1. Competition: The coffee and cake industry is highly competitive, with

numerous established chains, independent cafes, and specialty bakeries vying

for market share. Bea's Happy Cup must differentiate itself through unique

offerings, exceptional customer service, and effective branding to stand out in a

crowded market.

2. Changing Consumer Preferences: Consumer preferences and trends in the

food and beverage industry can shift rapidly, posing a challenge for Bea's

Happy Cup to stay relevant and adapt its menu offerings accordingly. Keeping

up with evolving tastes, dietary preferences, and lifestyle choices requires

continuous market research and product innovation.

3. Economic Factors: Economic fluctuations, including changes in disposable

income, inflation, and consumer spending habits, can impact Bea's Happy

Cup's sales and profitability. Economic downturns may lead to decreased

consumer spending on discretionary items like specialty coffee and cakes,

requiring the company to implement cost-saving measures and marketing

strategies to maintain revenue.

4. Operational Efficiency: Managing day-to-day operations efficiently while

maintaining high standards of quality and service can be challenging for Bea's

Happy Cup, particularly as the business expands. Ensuring consistency across

multiple franchise locations, optimizing supply chain logistics, and minimizing

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wastage are ongoing operational challenges that require effective management

and oversight.

5. Real Estate and Location: Securing prime real estate locations for Bea's

Happy Cup outlets can be challenging due to high rental costs, limited

availability, and intense competition for desirable spots. Identifying strategic

locations with sufficient foot traffic, parking, and visibility is essential for the

success of each franchise unit.

6. Staffing and Training: Recruiting and retaining qualified staff members who

are passionate about delivering exceptional customer experiences can be a

challenge for Bea's Happy Cup. Providing comprehensive training, competitive

wages, and opportunities for career advancement are crucial for attracting and

retaining top talent in a competitive labor market.

7. Health and Safety Compliance: Ensuring compliance with health and safety

regulations, particularly in food preparation and handling, is essential for Bea's

Happy Cup to maintain its reputation and avoid potential legal issues.

Implementing rigorous hygiene protocols, staff training, and regular

inspections are necessary to safeguard the health and well-being of customers

and employees.

Addressing these challenges requires proactive management, strategic

planning, and a commitment to continuous improvement and innovation. By

effectively navigating these obstacles, Bea's Happy Cup can strengthen its
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competitive position, enhance customer satisfaction, and achieve sustainable

growth in the coffee and cake industry.

Describe the requirements to franchise To franchise

Bea's Happy Cup, potential franchisees must meet certain requirements and

adhere to specific criteria set forth by the company. Here are the typical

requirements to franchise Bea's Happy Cup.

1. Financial Qualifications: Prospective franchisees must demonstrate financial

stability and meet minimum financial requirements set by Bea's Happy Cup.

This may include a minimum net worth and liquid capital requirement to

ensure the franchisee has the necessary funds to invest in and operate the

franchise successfully.

2. Business Experience: While prior experience in the food and beverage

industry is not always required, Bea's Happy Cup may prefer franchisees with

relevant business experience or management skills. Experience in hospitality,

retail, or franchising can be advantageous and may increase the likelihood of

franchise approval.

3. Commitment to Brand Standards: Franchisees must be committed to

upholding Bea's Happy Cup's brand standards, values, and customer service

principles. This includes adhering to operational protocols, maintaining

consistency in product quality, and delivering exceptional customer

experiences at all times.

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4. Site Selection and Development: Franchisees are responsible for securing

suitable real estate locations for Bea's Happy Cup outlets in accordance with

the company's site selection criteria. This may involve conducting market

research, negotiating lease agreements, and obtaining necessary permits and

approvals for store development.

5. Initial Investment: Franchisees must be prepared to make an initial

investment to cover the franchise fee, build-out costs, equipment purchases,

and other startup expenses associated with opening a Bea's Happy Cup

franchise. The total initial investment can vary depending on factors such as

location, size of the store, and local market conditions.

6. Training and Support: Bea's Happy Cup provides comprehensive training

and support to franchisees and their staff members to ensure a successful

launch and ongoing operations. This may include initial training at corporate

headquarters or existing franchise locations, as well as ongoing support in

areas such as operations, marketing, and product sourcing.

7. Legal and Regulatory Compliance: Franchisees must comply with all

applicable laws, regulations, and licensing requirements governing the

operation of a food service business in their jurisdiction. This includes

obtaining necessary permits, licenses, and certifications, as well as adhering to

health and safety standards and labor regulations.

8. Franchise Agreement: Prospective franchisees must review and sign a

franchise agreement outlining the terms and conditions of the franchise

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relationship, including rights and obligations of both parties, fees and royalties,

territory restrictions, and other important provisions.

By meeting these requirements and demonstrating a genuine commitment to

the success of the Bea's Happy Cup brand, prospective franchisees can pursue

the opportunity to join the franchise system and become part of the company's

growth and expansion efforts in the coffee and cake industry.

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III. MARKET ANALYSIS

Market Analysis of Bea's Happy Cup (Coffee and Cake):

1. Industry Overview:

- The coffee and cake industry is a lucrative and competitive sector within the

broader food and beverage market.

- Consumer demand for specialty coffee and artisanal baked goods has been

steadily increasing, driven by factors such as changing lifestyles, rising

disposable incomes, and a growing appreciation for quality and authenticity.

2. Market Trends:

- Shift Towards Specialty Coffee: Consumers are increasingly seeking high

quality, specialty coffee experiences, with a growing interest in single-origin

beans, unique brewing methods, and premium espresso drinks.

- Health and Wellness: There is a rising demand for healthier and more nutritious

food options, including low-sugar and gluten-free cake alternatives, as

consumers become more health-conscious.

- Sustainability: Eco-conscious consumers are prioritizing brands that

demonstrate environmental responsibility and ethical sourcing practices, leading

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to an increased demand for sustainably sourced coffee beans and eco-friendly

packaging.

- Convenience and Digitalization: The adoption of online ordering, delivery

services, and mobile payment solutions has become more prevalent, providing

opportunities for coffee and cake establishments to enhance convenience and

accessibility for customers.

3. Market Segmentation:

- Demographic Segments: Bea's Happy Cup caters to a diverse customer base,

including coffee enthusiasts, dessert lovers, professionals seeking a cozy

workspace, families looking for a casual dining experience, and tourists

exploring the local culinary scene.

- Geographic Segments: The market analysis may identify specific geographic

areas or neighborhoods with high demand for specialty coffee and artisanal

cakes, such as urban centers, commercial districts, tourist hotspots, and affluent

residential communities.

4. Competitive Landscape:

- Direct Competitors: Bea's Happy Cup competes with a mix of direct

competitors, including national and international coffee chains, local cafes,

specialty bakeries, and quick-service restaurants offering similar coffee and cake

offerings.

- Indirect Competitors: Other food and beverage establishments, such as tea

houses, ice cream parlors, juice bars, and dessert cafes, may also pose indirect
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competition to Bea's Happy Cup by offering alternative snack and beverage

options.

5. SWOT Analysis:

- Strengths: Bea's Happy Cup's strengths may include its unique brand identity,

high-quality coffee and cake offerings, cozy ambiance, customer loyalty

programs, and commitment to sustainability.

- Weaknesses: Potential weaknesses could include limited brand recognition in

certain markets, operational challenges, dependence on seasonal or trendy menu

items, and vulnerability to fluctuations in commodity prices.

- Opportunities: Opportunities for growth may include expanding into new

geographic markets, introducing innovative menu items, leveraging digital

marketing and online sales channels, and partnering with complementary

businesses or events.

- Threats: Threats to Bea's Happy Cup's success could include increasing

competition, economic downturns impacting consumer spending, regulatory

changes affecting food safety or labor practices, and negative publicity or brand

reputation issues.

6. Market Entry Strategy:

- Based on the market analysis, Bea's Happy Cup may develop a strategic market

entry plan tailored to its target demographics, competitive landscape, and growth

objectives. This may involve identifying priority markets, conducting thorough

site selection research, securing strategic partnerships or franchise agreements,

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and implementing targeted marketing and promotional campaigns to drive brand

awareness and customer acquisition.

Overall, a comprehensive market analysis provides valuable insights into the

dynamics of the coffee and cake industry, helping Bea's Happy Cup identify

growth opportunities, mitigate risks, and develop a winning strategy for success

in its chosen markets.