Republic Act.

of the Philippines
St. Rose Catholic School, Inc.
Paniqui, Tarlac

A Business Plan
entitled:

BREADY BREW
STA. ROSA ST. POB. SUR
PANIQUI, TARLAC
www.breadybrew@gmail.com

In partial fulfillment of requirements for the subject

(Entrepreneurship)

Submitted By:
GAJARDO, JUDE C.
GARSIN, SUNSHINE KATE C.
MANANGAN, NICOLE ANNE V.
TABIOS, LIMERY P.
TALENS, JOSETTE RHYZEL DC.

Submitted To:
Mrs. Janelle Santiago
cjsnsantiago@gmail.com

February 20, 2020

 BUSINESS PLAN

BREADY BREW

STA. ROSA ST. POB. SUR

PANIQUI, TARLAC

www.breadybrew@gmail.com

OWNED BY:

GAJARDO, JUDE C.

GARSIN, SUNSHINE KATE C.

MANANGAN, NICOLE ANNE V.

TABIOS, LIMERY P.

TALENS, JOSETTE RHYZEL D.

 TABLE OF CONTENTS

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1

Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Environmental Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Business Description . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Organizational Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17

Production Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Operation Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

Marketing Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

Financial Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .45
 INTRODUCTION

DESCRIPTION OF THE BUSINESS

Coffee shops are great places to socialize and a popular place for informal

business meetings or for students to catch up in schoolwork. They are also preferred

spot for individuals looking to pass the time to reading a book or magazine or surfing the

web while enjoying a beverage and snack statistic show that coffee shops are the most

popular to meet friends. Walk into any coffee shop and, chances are, you will see a

realtor reviewing listings with a client or a group of students collaborating on a school

project.

The business partners decided to name the business Bready brew for it offers

bread which is the doughnut and brew because it's a coffee shop and it offers different

kind of coffee.

College students needed a place to study, people with home-based work needed

a productive and social environment to work in, shoppers needed a place to stop by and

chat with friends, and people wanted a casual and relaxing way to get out at night and

take a break with bread and coffee.

Instead of simply offering customers coffee, the Bready Brew add extra services

and events to the establishment that would draw in this expansive crowd. Bready Brew

is offering different kind of doughnut such as munchkins, Bavarian etc., books and

magazines, free Wi-Fi and different kind of coffee such as iced coffee, coffee shake, tea

and hot coffee with different flavors.

1
LOCATION OF THE BUSINESS

Bready Brew transformed from a location where you could simply purchase a cup

of brew coffee and doughnut into a place you could grab a bite to eat, spend time with

friends, and get work done. So, why are coffee shops so popular? They’re more than

just a place to eat.

Bready Brew was located at Carried St. Paniqui, Tarlac in front of Red Camia,

Paniqui. It is near in BIR Paniqui, St Rose Catholic School and Paniqui Public market.

FUNDING REQUIREMENTS & SOURCE OF FUNDS

Bready Brew is located in front of Red Camia, Sta. Rosa St. Paniqui, Tarlac.

ASSETS COST

Lot size (200 square meter) Around PHP. 2,000,000

Equipment (cement, paint, plywood, etc.) Around PHP. 3,000,000

Salary per year for Manager PHP. 800,000

Salary per day for Employee PHP. 500

Chairs, Tables, Designs (flower vase, PHP. 500,000

flower)

Oven, Refrigerator, Kitchen Equipment Around PHP. 1,500,000

Carpenter PHP. 500 per day

2
 The company’s sources of capital are from personal assets of the owners such

as savings, some assistance from other companies, and borrowed loan from rural

banks.

EXECUTIVE SUMMARY

VISION, MISSION, GOALS, & OBJECTIVE

VISION

Bready Brew tends to build a strong relationship to its customers by providing a

valuable goods and services to satisfy the customer's needs and wants with the best

that the business can offer.

MISSION

Bready Brew is a business enterprise that is committed to:

- provide and serve a healthy and good quality if foods.

- satisfy the customer's needs and wants.

- build a profitable customer relationship

- ensure that each customer will receive a convenient service from our business.

GOALS OBJECTIVES

Enhance Staff Expertise

● Schedule regular training seminar

● Have all staff certified

Improvement of Products
● Creative and Effective Innovation

Improve Customer Service

● Hire friendly and sociable

3
 employee

BUSINESS MODEL

Strategy ● Bready Brew’s place is attractive that is

why customer’s will surely comeback to

the shop because of its ambiance and

peaceful place to catch up with friends and

lectures. Bready Brew is a good place to

discuss about business, schools, chit-chat

with friends and for those people whose

searching for a peaceful place to rest with

coffee, doughnut and books.

Knowledge in Management ● Business owner’s have the educational

background about business and has an

experience about the it. Some of the

owner’s took up Bachelor of Science of

Business Administration & Hotel and

Restaurant Management while the CEO is

4
 a CPA board passer that’s why Bready

Brew will surely lost its profit because the

owners has the capacity to handle the

Business.

Operation ● Bready Brew has five baristas which

oversee serving the customers. The

customers will order at the counter and

receive it, the doesn’t have waiters who’s

in charge of serving instead the customer

will receive their order at the counter.

BUSINESS AND PRODUCT POSITION

Business and product positioning are arranging for our product to occupy clear,

distinctive, and desirable place relative to competing products in the minds of our target

customers. A product position is the place that the product occupies relative to

competitors in consumers’ minds to meet them. Bready Brew has developed a unique

market position for our products because if a product is the same as the others on the

market, then the customers would have no reason to buy it. Bready Brew, in this case,

has planned positioning in such a way that it will distinguish our products from

competing brands and give them the greatest strategic advantage in our target markets.

Bready Brew positioning strategy was customer based so we can give the best service

more than what our target customers are expecting to experience or encounter. Bready

Brew will gain a competitive advantage over customer satisfaction and employee

satisfaction as our company had developed its positioning strategy based on the

customer and provided the utmost facility in terms of layout, furniture to the music since

5
the students, employees, coffee and doughnut lover are the target customers, and in

terms of employee satisfaction the Bready Brew make employee as a partners and

gave them a personal security with a freedom to participate in the every decision of the

business and make it successful.

We started to train our workers to attain and maintain the best services that we

can give to our target customers. Bready Brew distinguish the products from competing

brands and give our greatest strategic advantage in our target markets. Bready Brew

position is defined by consumers on important attributes such as price, quality,

competitor, product class, application, and other so we consider our target markets. We

even made sure to put ourselves in their shoe to see if our marketing mix is right and

just.

WEALTH IMPROVEMENT APPROACHES

● Bready brew tends to maintain its competitive advantage by training the

staff/employees to be courteous, helpful and knowledgeable, because

employees who are courteous will make the customer feel more comfortable.

Bready brew will offer a free Wi-Fi, by providing free Internet, bready brew can

encourage more people with smart phones and laptops to visit and stay longer

which in turn mean that they sip more coffee. Bready brew obviously offers a

coffee, but this does not mean we can't sell a few extras like selling croissants,

breakfast and sandwiches, doughnuts etc.

● Bready brew improves market share through innovation, innovation is the one

method by which the company may increase market share, because of

innovation many of the consumer become loyal customers, which adds to the

company’s market share. Smart hiring practices, bready brew will be bringing the

6
 best employees and to attract the best employees bready brew will be offering a

competitive salaries and benefits. Lastly, bready brew will increase the market

share by acquiring a competitor and strengthening customer relationship.

PARTIES SUPPORTING THE BUSINESS

● Bready Brew customers are students, employees, and coffee lovers. They are

the reason why we build, and we continue give services that truly satisfy their

cravings, needs and wants. Without them, Bready Brew will be nothing and will

be out of service.

● Our creditors are rural banks. Which are very helpful in achieving our Vision,

Mission, Goals and Objective. They have been our source of funds that have big

impact in our enterprise which is the Bready Brew. We assure to our creditors

that we are trustworthy, and we have the capacity to pay our debts. Because we

don’t want to ruin our reputation which is very important in the image of Bready

Brew.

● Bready Brew has a lot of supplier. That can accommodate our operational

grounds to produce distinct products to satisfy the needs and wants of our

beloved customers. Bready Brew don’t stick into one supplier. We canvas the

less expense for us to save money.

● Bready Brew hired workers that has high level of experience in terms of their

fields and course. This helps the business to have an advantage in terms of

services. We want to make sure that our employees are trustworthy and friendly.

7
 ENVIRONMENTAL ANALYSIS

TREND IN THE INDUSTRY

The restaurants and coffeehouses that make up the community of

establishments in the area surrounding The Bready Brew are quite diverse. Their

concepts range from typical fast food/chain and milk tea shop.

Paniqui is experiencing a trend toward milk tea shops and venues that is calm

because people now are so stress with studies, works, papers etc. These venues/milk

tea shops is usually at the Paniqui proper town. But right now it seems like people is not

that addictive to milk tea as before so the company thinks what would be the best

8
substitute for tea so the company comes up with coffee shop but as stated customers’

needs calm venue so Bready Brew offered books for those people who needs time to

rest and escape the reality for a while with a cup of coffee and doughnut as snack.

CONSUMER ANALYSIS

Students, Employees, and early bird people usually needs coffee and sometimes

they forget to eat their meal because of busy schedule, and that’s the reason why the

business decided to build a coffee shop with doughnut. Doughnut can be substitute for

meal and while taking a rest, customers won’t get bored because Bready Brew placed

near at schools, BIR, Red Camia and Public Market because its target customers are

students, employees, and people who loves coffee and usually people come in the

market as early as they can. Some of them needs coffee and bread for breakfast and

Bready Brew is ready to offer a healthy, and great breakfast which can surely satisfy

customer’s needs and wants.

COMPETITOR ANALYSIS

STRENGTH WEAKNESSES

● Bready Brew have a mini library ● Bready Brew is new in industry so

that other coffee and milk tea
shops does not have.
● The price of the products is
affordable and reasonable.
● Quality of the product can satisfy
the needs of the customers.
expected that customers has doubt
about the business.
● The shop is close every Sunday,
but we can do an innovation to
make it strength.

OPPORTUNITIES THREAT

● Having the good relationship with
the staffs, by that their morale will
get boosted. By having a high
morale, the staffs will be
productive on work that will create
● Competitors exist a long time and
they have the customers’ loyalty.
● There are many alternatives that is
more affordable than the Bready

9
 a great relationship with the Brew’s product.
customers.

MARKET FORECAST

Year 1 Year 2

Potential Customer Growth

Students & Faculty 2% 18,000 18,360

Teenagers 1% 3,000 3,030

Office Workers 2% 8,000 8,160

Others 0% 5,000 5,000

Total 1.63% 34,000 34,550

MARKET SHARE

10
MARKET POSITION

The moment that the company has decided which market segments to enter it

should decide what positions it wants to occupy in those segments. Market Positioning

is arranging for a product to occupy clear, distinctive, and desirable place relative to

competing products in the minds of target customers. A products position is the place

that the product occupies relative to competitors in consumers’ minds. Here in this case,

the Bready Brew has developed a unique market position for their products because if a

product is exactly the same as the others on the market, then the customers would have

no reason to buy it. Bready Brew, in this case, has planned positioning in such a way

that it will distinguish their products from competing brands and give them the greatest

strategic advantage in their target markets. Bready Brew positioning strategy was

customer base so that it can give the best service more than what the customers

expect. Bready Brew will gain a competitive advantage over customer satisfaction and

employee satisfaction as the company itself had developed its positioning strategy

based on the customer and provided the utmost facility in terms of layout, furniture to

the music since the students, employees, coffee and doughnut lover are the target

customers, and in terms of employee satisfaction the Bready Brew make employee as a

partners and gave them a personal security with a freedom to participate in the every

decision of the business and make it successful.

11
MARKETING STRATEGY

Bready brew can especially benefit from developing a wide, customer-friendly

suite of services, since word-of-mouth advertising can be an effective way to turn large

groups of people into loyal customers.

Bready brew will offer free Wi-Fi, bready brew will also install electrical outlets at

each table for laptops. Book live entertainment on a regular basis, host poetry readings

and other events with a community feel.

● Loyalty and Incentive Programs

Bready brew will be having a loyalty program. Loyalty programs can be as simple

as punch cards with the promise of receiving every Nth cup of coffee free.

● Promotions and Advertising

Couple sales promotions and advertising from time to time will give Bready brew

a boost in new visits. Bready brew will place coupons in local newspapers and

magazines or advertise a weekly special, bready brew will also use an ad to promote

any live entertainment, literary events or group meetings and etc.

● Digital and Social Media

Bready brew will promote store events and sales to customers on our social

media channels while maintaining an active, more conversational presence.

12
 Bready brew will also use social media by posting printable coupons on

Facebook and Twitter or use a service like Groupon to distribute coupons to internet-

users in your local area.

BUSINESS DESCRIPTION

PRODUCT DESCRIPTION

13
 Bready Brew offers Doughnut, Coffee and Books for freebies. We offer different

kinds of doughnut such as Munchkins, Bavarian, Cinnamon, Chocolate or Strawberry

Frosted Jelly, Cream-filled and Glazed Doughnut. Bready Brew also offers different kind

of coffee such as Cappuccino, Espresso, Flat White, Long Black, Macchiato, and

Mochaccino coffee. Shops will be boring if it doesn’t offer books, and usually a coffee

lover is a book lover too, so Bready Brew decided to offer books but for free, it is free to

read but you can take it home. When you completed the 10 stubs, you’ll get one book

as a reward for being a loyal customer.

EQUIPMENT/MATERIALS NEEDED

The preparation of coffee beverages and food is at the center of the business

and Bready brew need a wide variety of equipment and materials to ensure we can

provide our customers with the items/products they want.

Bready brew list of equipment includes:

● Drip coffeemakers

● Coffee presses

● Coffee beans

● Industrial coffee grinders

● A water filtration system

● Food preparation tables

14
 ● Food storage bins, bottles, and pumps

● Commercial blenders

● Ovens/toasters/grills

● An ice maker

Another aspect Bready brew consider is the make and model of a high-quality

espresso machine. Since a good brew is likely to be the business core offering, Bready

brew need a machine that goes the distance and pulls its weight. Busy periods may put

strain on staff and pressure on equipment, so having a machine that supports the

process is key.

You may have gotten away with it in the past but including a Wi-Fi connection in

your cafe is almost a must these days. From business professionals through to those

on-the-go, give back to your customer base by allowing them to access free internet

within your venue. This will also keep them onsite longer. Additionally, you’ll inspire

those looking for a work lunch spot or meeting place to choose you over competitors

who may not have this functionality.

SIZE OF THE BUSINESS

TARGET MARKET NO. OF TARGET MARKET SIZE (RM)

MARKET (MONTHLY)

Weekend Getaway 27% 158,000

Customers

Students 43% 250,000

Residents of Urban Areas 30% 180,000

15
 Total 100% 588,000

PERSONNEL REQUIREMENT

Bready Brew will need baristas and at least one manager, Bready Brew also

need a pastry chef or chefs that can cook the full menu.

General Manager in Bready brew case, the business owner (Jude C. Gajardo) will act

as general manager.

Typical Salary: 800,000 per year

What Does This Role Entail?

● Hiring and scheduling employees

● Keeping track of inventory

● Adhering to health and safety standards

● Ensuring customer satisfaction

Who to Look For:

● Previous management experience

● Able to manage customers’ complaints

16
 ● Available for many shifts, as they are an integral part of everyday business

Barista

Barista oversees making coffee drinks for customers, and Bready Brew will need

several baristas.

Typical Salary: 500 per day (not including tips)

What Does This Role Entail?

● Making coffee drinks

● Operating cash registers

● Washing equipment

Who to Look For:

● No experience necessary (but trained baristas will be able to make drinks more

quickly

● Friendly when interacting with customer

Pastry Chef

17
 Bready Brew will serve pastries and other small snacks to complement their

drinks.

Typical Salary: 900,000 per year

What Does This Role Entail?

● Baking pastries

● Arranging food in display cases

Who to Look For:

● Experience strongly preferred

● Chefs need to arrive at work very early to ensure that there are plenty of fresh

pastries ready when customers arrive.

ORGANIZATIONAL PLAN

FORM OF THE BUSINESS ORGANIZATION

The Bready Brew’s form of business organization is a general partnership. The

responsibilities are divided but our vision is still aligned by being equally passionate on

running the Bready Brew. As we all care on Bready Brew, disagreements are inevitable

and for our employees’ morale and trust on our strategy we will avoid having

discussions in front of them because it will make us unprofessional.

LIABILITY OF THE OWNER OR OWNERS

18
 The general partner of Bready Brew is personally responsible for business debts

and obligations of the partnership. If the general partner cannot pay a business debt out

of the partnership assets, the creditors can sue any of the partners personally to collect

the debt. While us, the limited or silent partners are liable for any losses up to our

invested capital amount and we are also assumed as part of the creation of Bready

Brew.

ORGANIZATIONAL STRUCTURE

Jude C. Gajardo
CEO

Nicole Anne V. Manangan

Manager

Sunshine Kate C. Garsin

Vice President - Finance

Josette Rhyzel DC. Talens Limery P. Tabios

Vice President - Marketing Vice President - Production

19

Barista
 ROLES AND RESPONSIBILITIES

Position Duties and Responsibilities Qualifications

CEO Conducts the business plan of the Bachelor’s degree or

company. Creates specific master degree in a
objectives for every department, relevant discipline or
leading the company’s strategy. MBA. Clearly have a
Overall, directs the business or knowledge of profit and
company for its vision. loss, balance sheet and
cash flow management
and general finance and
budgeting.
Manager Supervise daily activities responsible Master’s Degree in
for managing budgets and checking Business Administration.
the profit and loss of the business or Excellent in
company. communication skills.
20

Finance Investigate ways to improve
profitability, and analyze markets
for business opportunities.
Analyzing targets and monitors the
cash in and cash out of the business.
Marketing Managing all marketing for the
business or company and activities
within the marketing department.
Coordinate the marketing
campaigns with sales activities.
Oversee the business’ or company’s
marketing budget. Focuses on one
particular thing to promote.
Production Runs the technical management,
supervise the industrial production
processes. Making sure that the
health and safety regulations are
met in production. Planning and
organizing the production
schedules. Estimating the project
and resource requirements.
Deciding the quality sway
standards.
Barista The one who’s in charge in grinding
the coffee beans, preparing and
serving light food and snacks. Taking
orders and ringing up payment.
Making sure that the coffee
machines and other equipments are
neat and clean.
Strong Leadership
qualities. Strong work
Ethic.
Degree Field: Finance,
accounting, business or a
comparable discipline. In
experience, it is often
required that you are
more than five years in
finance.
Preferred master’s
degree holder.
Experience building
complex marketing
programs and reporting
on the result. Strong
project management
skills. Ability to travel as
necessary.
Bachelor’s degree
holder. Excellent in
project management
skills. 5 years and above
experience in
manufacturing
operations.
Experience in food and
beverage preparation or
customer service
preferred. High School
Diploma or equivalent.
Have the willingness to
continue learning and
21

Pastry Chef Have the general duties including
ordering ingredients and supplies
for the restaurant to hiring
employees to be assist in the
production of pastry goods and
other aspects of the Bready Brew.
Janitor Maintains the cleanliness of floors,
rugs, washing walls and glass, and
removes the rubbish. Duties may
include performing routine
maintenance activities, notifying
management of need for repairs.
Security Guard Secure premises and personnel by
patrolling property. Monitors the
surveillance equipment, inspects
the building, equipments and access
points.
SALARY REQUIREMENTS
communication skills.
Have a great attention to
detail and creativity, and
organizing and
leadership skills.
Knowledgeable in
sanitation principles,
food preparation and
baking techniques and
nutrition. Proven to have
an experience as Pastry
Chef.
Attentive on the details.
Have the ability to work
independently.
Knowledgeable of
electrical work and
carpentry.
Proven work experience
as a security guard or
connected position.
Ability to operate
detecting systems and
emergency equipment.
Trained security officer
with diploma.
Knowledgeable of public
safety and security
procedures or protocols.
22
 Salaries or Wages Structures

POSITION WAGE RATE SALARIES/WAGES PER

MONTH

Manger PHP. 2,191.78/day PHP. 800,000

Barista PHP. 887.67/day PHP. 324,000

Pastry Chef PHP. 1,331.51/day PHP. 486,000

Janitor PHP. 265.75/day PHP. 97,000

Security Guard PHP. 443.84/day PHP. 162,000

PRODUCTION PLAN

PRODUCTION SCHEDULE

23
PRODUCTION PROCESS

● Drying and husking the cherries

1. First, the coffee cherries must be harvested, a process that is still done

manually. Next, the cherries are dried and husked using one of two methods. The dry

method is an older, primitive, and labor-intensive process of distributing the cherries in

the sun, raking them several times a day, and allowing them to dry. When they have

dried to the point at which they contain only 12 percent water, the beans' husks become

shriveled. At this stage they are hulled, either by hand or by a machine.

2. In employing the wet method, the hulls are removed before the beans have dried.

Although the fruit is initially processed in a pulping machine that removes most of the

material surrounding the beans, some of this glutinous covering remains after pulping.

This residue is removed by letting the beans ferment in tanks, where their natural

enzymes digest the gluey substance over a period of 18 to 36 hours. Upon removal

from the fermenting tank, the beans are washed, dried by exposure to hot air, and put

into large mechanical stirrers called hullers. There, the beans' last parchment covering,

the pergamino, crumbles and falls away easily. The huller then polishes the bean to a

clean, glossy finish.

● Cleaning and grading the beans

24
3. The beans are then placed on a conveyor belt that carries them past workers

who remove sticks and other debris. Next, they are graded according to size, the

location and altitude of the plantation where they were grown, drying and husking

methods, and taste. All these factors contribute to certain flavors that consumers will be

able to select thanks in part to the grade.

4. Once these processes are completed, workers select and pack particular types

and grades of beans to fill orders from the various roasting companies that will finish

preparing the beans. When beans (usually robusta) are harvested under the

undesirable conditions of hot, humid countries or coastal regions, they must be shipped

as quickly as possible, because such climates encourage insects and fungi that can

severely damage a shipment.

5. When the coffee beans arrive at a roasting plant, they are again cleaned and

sorted by mechanical screening devices to remove leaves, bark, and other remaining

debris. If the beans are not to be decaffeinated, they are ready for roasting.

● Decaffeinating

6. If the coffee is to be decaffeinated, it is now processed using either a solvent or a

water method. In the first process, the coffee beans are treated with a solvent (usually

methylene chloride) that leaches out the caffeine. If this decaffeination method is used,

the beans must be thoroughly washed to remove traces of the solvent prior to roasting.

The other method entails steaming the beans to bring the caffeine to the surface and

then scraping off this caffeine-rich layer.

● Roasting

7. The beans are roasted in huge commercial roasters according to procedures and

specifications which vary among manufacturers (specialty shops usually purchase

beans directly from the growers and roast them on-site). The most common process

25
entails placing the beans in a large metal cylinder and blowing hot air into it. An older

method, called singeing, calls for placing the beans in a metal cylinder that is then

rotated over an electric, gas, or charcoal heater. Regardless of the particular method

used, roasting gradually raises the temperature of the beans to between 431- and 449-

degrees Fahrenheit (220-230 degrees Celsius). This triggers the release of steam,

carbon monoxide, carbon dioxide, and other volatiles, reducing the weight of the beans

by 14 to 23 percent. The pressure of these escaping internal gases causes the beans to

swell, and they increase their volume by 30 to 100 percent. Roasting also darkens the

color of the beans, gives them a crumbly texture, and triggers the chemical reactions

that imbue the coffee with its familiar aroma (which it has not heretofore possessed).

8. After leaving the roaster, the beans are placed in a cooling vat, wherein they are

stirred while cold air is blown over them. If the coffee being prepared is high-quality, the

cooled beans will now be sent through an electronic sorter equipped to detect and

eliminate beans that emerged from the roasting process too light or too dark.

9. If the coffee is to be pre-ground, the manufacturer mills it immediately after

roasting. Special types of grinding have been developed for each of the different types

of coffee makers, as each function best with coffee ground to a specific fineness.

● Instant coffee

10. If the coffee is to be instant, it is I V brewed with water in huge percolators after

the grinding stage. An extract is clarified from the brewed coffee and sprayed into a

large cylinder. As it falls downward through this cylinder, it enters a warm air stream that

converts it into a dry powder.

● Packaging

11. Because it is less vulnerable to flavor and aroma loss than other types of coffee,

whole bean coffee is usually packaged in foil-lined bags. If it is to retain its aromatic

26
qualities, pre-ground coffee must be hermetically sealed: it is usually packaged in

impermeable plastic film, aluminum foil, or cans. Instant coffee picks up moisture easily,

so it is vacuum-packed in tin cans or glass jars before being shipped to retail stores.

● Grinding Coffee

12. The objective of a proper grind is to get the most flavor in a cup of coffee. How

coarse or fine the coffee is ground depends on the brewing method. The length of time

the grounds will be in contact with water determines the ideal grade of grind Generally,

the finer the grind, the more quickly the coffee should be prepared. That’s why coffee

ground for an espresso machine is much finer than coffee brewed in a drip system.

Espresso machines use 132 pounds per square inch of pressure to extract coffee. We

recommend taking a moment to examine the beans and smell their aroma — in fact, the

scent of coffee alone has been shown to have energizing effects on the brain.

● Brewing Coffee

13. Made by pouring hot water onto ground coffee beans, then allowing to brew.

There are several methods for doing this, including using a filter, a percolator, and a

French press.

PROCESSING PLANT & EQUIPMENT

Espresso Machine P 6,028

Espresso Grinder P 20,000
Regular Coffee Grinder P 1,080
Coffee Brewers P 30,500
Decanters, Airpots, and Satellite Servers P 6,156
Frappe and Smoothie Blenders P 3,056
Iced Tea Brewers and Iced Tea Dispensers P 37,892
Hot water dispenser P 3,150
Ice machine P 1,458
Display case P 38,500
Frothing pitchers P 444
Measuring cups and spoons P 500
Timers P 251
Coffee mugs and teacups P 10,000

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Espresso cups P 500

SOURCES OF MATERIALS

Bready Brew has negotiated supplier agreements with several local food service

wholesalers in the area that have a reputation for quality and reliability:

● Bukidnon Coffee Beans Farm

● Benguet Coffee Beans Farm

● Antigua, Guatemala Coffee Beans Farm

In the event that one of the suppliers cannot meet their needs, the following suppliers

can both provide all of the food-service product that they require in addition, the

following wholesalers will supply the café with general restaurant supplies:

● Lawrence Food Products Corp.

● Gerry Food Supply Inc.

PRODUCTION COST

● LABOR

Salaries or Wages Structures

Position Wage Rate Salaries or Wages per month
Manager Not Applicable P60,000
Barista P500/day P15,000
Pastry Chef P2,500/day P75,000
Janitor P300/day P9,000
Security Guard P1,500/day P18,000

● DIRECT MATERIALS

1. Coffee and Espresso P 16,028

2. Milk P 13,000

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3. Tea Bags or Loose Tea P 10,000
4. Chai P 30,500
5. Hot Chocolate P 37,892
6. Flavoring Syrups P 23,249
7. Sugar, Sweetener, and Creamer P 18,054

● FACTORY OVERHEAD

If the drink contains one double shot of espresso and a P 37.50 pound of beans makes
32 double shots, the coffee cost is 23.4 cents. 1.25 ounces of syrup that comes in a P
17.50 25.4 ounces bottle costs 22.1 cents. This gives a total food cost of 100.6 cents.
Cups, lids and sleeves add additional cost and if they add up to 20 cents, the total cost
of the drink would be 120.6 cents.

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 OPERATION PLAN

EVALUATION OF SUPPLIER

Bready Brew has its trustable suppliers that have low price but have the

characteristic of high-quality supplies. Bready Brew did not depend on one supplier. We

look for cheaper but has high standard of materials included to the supplies that we

need, and we use to our business. Bready Brew has its criteria in choosing the best

supplier, here are some:

E-Commerce
Capability

Financial Delivery
Stability Supplier Time
Evaluation
Criteria

Price Quality

MATERIAL REQUISITION & RECEIVING PROCEDURES

Bready Brew will have its purchase requisition form to the suppliers to have its

materials and other equipment that is need to our business. This is our example of form:

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 PURCHASE ORDER REQUEST FORM
Req. No. _________________________ Purchase Order No. __________________________
Account No. ______________________ Account Name ______________________________
Professor’s Name __________________ Signature __________________________________
Your Name _______________________ Your E-mail __________ Your Phone No. _________
Date _____________
Special Instructions:
Item Description Quantity Unit (each, Per-Unit Line Item
No. pkg. case) Price Total Price

In Stock Lead Time ____________ Total Price _______________

Shipping Preference Ground Express

Complete Name of Vendor _____________________ Name of Contact ____________________

Address of Vendor ____________________________ Contact’s Phone No. _________________
____________________________ Contact’s Fax No. ___________________

● Flow Chart of Receiving Area Activities

Truck Arrival

First Control on ID Is this good type

necessary in the Waiting for Checking
stock?

Dock & Order No.

Assignment

Inbound goods
checking
Waiting

Door Assignment
Checking Rejected Goods
Loading

Truck Entrance
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 Empty truck Loaded truck
departure departure
Unloading Truck
STORAGE & INVENTORY CONTROL SYSTEM

● Mix and Breadth of Products

While it's impossible to carry every product, a customer may potentially want, stocking a

very limited selection may alienate some customers who expect to have a reasonable

number of options. The trick is to strike an appropriate balance when deciding what

products to carry. Start with a relatively wide variety of products and phase out those

that are rarely ordered. It's better to slowly run out of an item that rarely sells than it is to

risk losing customers because you don't have anything that appeals to them. Offer to

place special orders for customers looking for a product that you don't normally carry.

● Appropriate Level of Inventory

Avoid overstocking inventory, especially inventory that is perishable. This is especially

true of baked goods and dairy products that have a very short shelf life. Keep a limited

stock of coffee beans, as customers typically expect their coffee to be brewed with fresh

beans. Overstocking ties up capital that could be used to improve the business in other

ways, and overstocking perishable items runs the risk that you'll have to throw money

away in the form of goods gone bad. On the other hand, you don't want to stock too little

inventory and have nothing to sell your customers. A good way to avoid either is to

monitor sales levels for individual items. Use this data to establish a minimum threshold

for each item, and re-order inventory when your stock dwindles. Order fresh inventory

frequently, rather than stocking up for weeks on end.

● Inventory and Theft

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Besides maintaining your stock of salable goods, preventing theft by customers or

employees is another major benefit of regularly taking inventory. It's a good idea to

compare your existing stock against delivery invoices and sales data at least every

other week. If your inventory calculations indicate that theft may be occurring, take

inventory more frequently until you isolate the source of the missing inventory. Conduct

inventory yourself or assign the task to a trusted manager, as an employee involved in

theft may try to hide evidence by manipulating the numbers.

● POS Systems

Although it's possible to track deliveries, sales and inventory by hand, it's also time-

consuming and prone to error. There are many point-of-sale computers systems and

software available for retail establishments, some of which are designed specifically for

coffee shops. Some POS systems not only streamline the inventory process, but also

trigger automatic orders when available stock of an item reaches a certain level. Point-

of-sale systems also track sales data, making it easier to forecast the level of inventory

you need to have on hand.

SHIPMENT SYSTEM & CONTROL

Bready Brew still don’t have shipping system. However, in its future functions we

planned something that is related ang helpful in our business. Bready Brew consider

this:

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FUNCTIONS OF SUPPORT SERVICES

● Bready Brew Customer Service representatives help customers with complaints

and questions, give customers information about products and services, take

orders, and process returns. By helping customers understand the product and

answering questions about their reservations, they are sometimes seen as

having a role in sales.

● Bready Brew Information Technology refers to the process of making your

technology work better for you, either as a standalone process or as part of a

wider network. Implementing these procedures can be a big step and affects

many different aspects of your business, although most of the time it isn’t overly

complicated. These range from basic management functions relating to staff and

budgeting to planning and utilizing network systems.

● Bready Brew Human Resource Management deals with issues related to

compensation, performance management, organization development, safety,

wellness, benefits, employee motivation, training and others. HRM plays a

strategic role in managing people and the workplace culture and environment.

● Bready Brew Project Manager who specializes in planning, managing and

executing projects related to marketing campaigns. They are responsible for

turning the strategist’s vision into reality. Marketing Project Managers identify all

the tasks that need to be completed within a marketing campaign, and then

strategically delegates those tasks to the appropriate team members. The role of

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 Marketing Project Manager is a supervisory position. They are responsible for

managing people as well as projects. Marketing Project Managers typically work

in an office setting. They can work in-house within the marketing department of a

large company, or they can work at a marketing agency that caters to small to

mid-sized businesses.

● Bready Brew Financial Managers perform data analysis and advise senior

managers on profit-maximizing ideas. Financial managers are responsible for the

financial health of an organization. They produce financial reports, direct

investment activities, and develop strategies and plans for the long-term financial

goals of their organization. Financial managers typically:

1. Prepare financial statements, business activity reports, and forecasts,

2. Monitor financial details to ensure that legal requirements are met,

3. Supervise employees who do financial reporting and budgeting,

4. Review company financial reports and seek ways to reduce costs,

5. Analyze market trends to find opportunities for expansion or for acquiring

other companies,

6. Help management make financial decisions.

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 MARKETING PLAN

THE 7P’S MARKETING MIX

● PRODUCT

Coffee shops are great place to socialize and a popular place for informal business

meeting or for students to catch up in schoolwork’s. The business partners decided to

name the business - Bready Brew because it offers doughnut where the word bready

comes from and Brew because it is a coffee shop. The shop offers different kinds of

doughnuts such as munchkins, Bavarian, cinnamon, chocolate and strawberry frosted

jelly, cream-filled, and glazed doughnut. And of course, as a coffee shop, it offers

different kinds of coffee such as cappuccino, espresso, flat white, long black, macchiato,

mochaccino coffee, iced coffee and coffee shake.

DOUGHNUTS COFFEES

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 MUNCHKINS CAPPUCINNO

BAVARIAN ESPRESSO

CINNAMON ROLL FLAT WHITE

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CHOCO/BERRY FROSTED JELLY LONG BLACK

CREAM-FILLED MACHIATO

GLAZED MOCHACCINO

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 ● PLACE

Bready Brew is placed at Sta. Rosa St. Paniqui, Tarlac in front of Red Camia near BIR,

Paniqui Public Market and schools.

● PRICE

The pricing scheme is based on standard industry practices. The maximum price for

doughnut is 35 pesos each but if the customer bought 1 box of doughnut in any kind it is

only 200 pesos; the customer will get 10 pesos discount each box and each box

contains 6 pieces of bready doughnut. The pricing for coffee is depend on size, small

cup/10 oz is worth 50 pesos and for large cup/15 oz is 65 pesos, iced coffee 40 pesos

for small cup and 50 pesos for large cup, and for coffee shake which only has a regular

size is worth 35 pesos.

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● PROMOTION

40
 ● PEOPLE

Bready Brew has a professional employee such as barista, pastry chef, security guard,

and managers. They will assure customers that the shop is secured because it has a

highly trained security guard, a delicious doughnut who serves by pastry chefs, a hot

and cold aroma of coffee made by barista and a stable business undertaken by

managers.

● PACKAGING

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 ● POSITIONING

Bready Brew has planned positioning in such a way that it will distinguish their products

from competing brands and give them the greatest strategic advantage in their target

markets.

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 FINANCIAL PLAN

MAJOR ASSUMPTIONS

The business operates at least 27 days a month equivalent of 324 days a year.

Bready Brew assumed that its sales for the year ending 2019 is 18,079,200 pesos

because the shop expected to sell:

Capital = 15,000,00
Sales = 18,079,200
Cost of Goods Sold = 30% of Sales = 5,432,760
Expenses Monthly Annual
Salaries & Wages 89,000 1,859,200
Electricity Bill 3,000 36,000
Land 2,000,000
Equipment for Building 3,000,000
Utilities 1,500,000
Furnitures 500,000
Flyers, Advertisements 300,000

Position Salaries/Wages Monthly Salaries/Wages Annual

Manger --------- 800,000
Barista 27,000 324,000
Pastry Chef 40,500 486,000
Janitor 8,083 162,000
Security Guard 13,500 97,000

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Note: The shop (Bready Brew) operates only for 6 days a week

Product Quantity Amount Each Sales Daily Sales Yearly

S Coffee 100 50.00 5,000.00 1,620,000.00
L Coffee 100 65.00 6,500.00 2,106,000.00
S Iced Coffee 150 40.00 6,000.00 1,944,000.00
L Iced Coffee 100 50.00 5,000.00 1,620,000.00
Coffee Shake 130 35.00 4,550.00 1,474,200.00
Doughnut 250 35.00 8,750.00 2,835,000.00
Box of 100 200.00 20,000.00 6,480,000.00
Doughnut
Total 55,700.00 18,079,200.00

PROJECTED STATEMENT OF COMPREHENSIVE INCOME

Bready Brew Company

Statement of Comprehensive Income
For the year ending December 31, 2019

Sales 18,079,200
Cost of Goods Sold (5,432,760)
Gross Profit 12,655,440
Operational Expenses
Salaries Expense 1,859,200
Utilities Expense 1,500,000
Interest Expense 700,000
Supplies Expense 800,000
Insurance Expense 850,000
Miscellaneous Expense 500,000
Electricity Expense 192,000
Furniture Expense 800,000
Advertisement Expense 300,000
Depreciation Expense – Equipment 25,000
Depreciation Expense – Building 15,000 (7,541,200)

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Net Income 5,114,240

PROJECTED STATEMENT OF CASH FLOWS

Bready Brew Company

Statement of Cash Flows
For the period ended December 31, 2019

Operating Activities
Net Income 310,240
Increase in Accounts Receivable (2,000)
Decrease in Inventory 1,500
Increase in Accounts Payable 1,000
Cash Provided by (Used in) Operating Activities 310,740

Investing Activities
Purchase of Equipment (30,000)
Cash Provided (Used in) Investing Activities (30,000)

Financing Activities
Issuance of Common Stock 5,000
Cash Provided (used in) Financing Activities 5,000

Net Increase/(Decrease) in Cash 285,740

Cash Balance 12/01 9,000
Cash Balance 12/31 10,000
Cash Flow 304,740

PROJECTED STATEMENT OF CHANGES IN EQUITY

Bready Brew Company

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 Statement of Changes in Equity
For the year ended December 31, 2019

Bready Brew, Owners Equity 12/01/2019 15,000,000

Add: Additional Investment 450,800
Profit 310,240
Total 15,761,040
Less: Withdrawals 20,000
Bready Brew, Owners Equity 12/31/2019 15,741,040

PROJECTED STATEMENT OF FINANCIAL POSITION

Bready Brew Company

Statement of Financial Position
As of December 31, 2019

ASSETS
Current Assets
Cash 12,101,000
Accounts Receivable 32,000
Prep. Insurance 850,000
Total Current Assets 12,980,000

Non-Current Assets
Land 2,000,000
Building 1,293,000
Accumulated Depreciation (15,000) 1,278,000
Furniture & Fixtures 800,000
Accumulated Depreciation (1,000) 799,000

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 Machinery & Equipment 3,000,000
Accumulated Depreciation (25,000) 2,975,000
Long-Term Notes Receivable 40,000
Long-Term Bonds Receivable 15,000
Total Non-Current Assets 6,927,000
TOTAL ASSETS 19,910,000

LIABILITIES
Current Liabilities
Accounts Payable 1,029,000
Accrued Interest Payable 700,000
Salaries Payable 1,859,200
Total Current Liabilities 3,588,200

Non-Current Liabilities
Long-Term Payable 90,000
Long-Term Bonds Payable 60,000
Mortgage Payable 65,000
Total Non-Current Liabilities 215,000
TOTAL LIABILITIES 3,803,200

EQUITY
Common Share Capital 15,000,000
Additional Paid-In Capital 450,800
Retained Earnings 656,000
TOTAL EQUITY 16,106,800

TOTAL LIABILITIES AND EQUITY 19,910,000

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 APPENDIX

For more information and to be updated visit our Facebook page.

https://www.facebook.com/106315107629535/posts/106315700962809/?sfnsn=mo

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