Republic of the Philippines

TECHNOLOGICAL UNIVERSITY OF THE PHILIPPINES

Batangas Extension Program
Brgy. Bungahan Cuenca Batangas

BUSINESS PLAN
SACRET CAFÉ

Leader:
Dela Vega, Emerace
Member:
Aquino, Rosalie
Chavez, Joy
Diatore, Jeny
Hernandez, Gino
Manalo, Kim Nicole L.
Nitro, Marvin
 Company Overview
Sacret Cafe is a industrial style café shop it is a designed by creating natural-looking
environment with creative lighting added with light modern touches. The word Sacret is also
term as Sacred means for devotion, dedicated to God as well dedicated to the customers. We all
know Filipinos loves to drink coffee most of the time even they are happy, sad , or in other
mood. They tend to drink coffee to calm their minds and selves. That is the reason why we come
up to the idea of offering a variety of coffee flavors out of our local coffee beans that we
purchased to our local farmers, to attract our customer and to showcase our local product. The
Sacret Kafe is a type of partnership build together with Ms. Emerace & Ms. Lavadia.
Sacret coffee thought to use different types of coffee beans, the Barako blend, arabica dark
roast and espresso blend that we could introduce to our costumer. they can choose what type of
coffee they want and what kind of coffee beans to be use for them to be satisfied in their order.
We come up to this kind of business not because of our preference but for the preference and
satisfaction of our customers. Our business is ageless, and time less. Coffee has become part of
Filipino culture, because for us coffee is not just a hot drink but a delicacy, masterpiece, a life
and an art and a drink that completes and awakens the spirit of each Filipino. Children and adults
are welcome here we also Offer other treats for the children and if they want we also offer some
delicacy out of coffee.

MISSION
We want to build franchise, welcoming force in every group we represent, as well as
wherever else we happen to be. We understand that our guests have a preference, and we never
want them to feel unwelcome.
VISION
We are committed to the outstanding quality of our food, service, people, and out-of-
home dining and entertainment concepts that enrich the lives and experiences of our guests and
employees alike in our relentless pursuit of excellence.

Sacret Kafe
The Sacret Kafe is located in Calamba Rd, Tagaytay City in need of a cafe that serves the
residents and people that work in the area. there population iscontineously growing and the
places where people can get a meal are overcrowded. The cafe that was serving the function.
People use these spaces to spend time with good friends or to meet new ones. Some rely on their
daily stop at the coffee shop to get them through a tough day, while others find their inspiration
in the bustle of the environment. Sakret Café has a free wifi for the customers. The café will be
owned and operated by Emerace Dela Vega & Diane Lavadia a graduate student in TUP
Batangas in a Bachelor Degree of Marketing Administration. The café will be open for business
Monday – Thursday 7-10, Fridays and Saturdays 7-11 and closed Sundays
Sacret Coffee Shop Start-Up Cost
Starting a coffee shop not only takes a ton of research, but within that research, we will
be educating our self about everything from budgeting, potential locations, and every piece of
equipment needed to run a successful coffee shop. There are a countless number of coffee lovers
out there; just pass by any busy coffee shop and you’ll be shocked by the number of coffee
lovers in and out of the venue, specially here in Batangas.
We included financial forecasting, including information on our funding requirements, on
our general business running costs and our predicted profits. We knew that the harder work we
put into our business plan, the more chance our coffee shop business will have of being
successful as soon as possible.
We agreed to withdraw money amounting Php 2,500,000.00 to start the business.
Considering all the start up expenses for our business.
Hiring a team and finding vendors
Having a good, skilled team of staff is crucial to the success of our business, especially in an
industry as fast-paced as the coffee shop industry. If our staff aren’t up to job, we won’t see the
results you’re looking for. The average yearly wages for coffee shop workers in the Philippines
include:

Personnel table FY2021

Manager 15,000

Baristas (2) 12,000

Other employees (2) 8,000

Totals 55,000

The start-up expenses of Php 600,000.00 include:

 • Legal expenses for obtaining licenses and permits as well as the accounting services
totaling Php 62,000.00.
• Marketing promotion expenses for the grand opening of Sacret café in the amount of Php
60,00.00 and as well as flyer printing (1,000 flyers at Php 1.92.00 per copy) for the total
amount of Php 61,920.00 .
• Insurance (general liability, workers’ compensation and property casualty) coverage at a
total premium of Php 70,000.00.
• Pre-paid rent expenses for one month at Php 30,00 per square feet in the total amount of
Php 27,000.00 .
• Premises remodeling in the amount of 300,000.00.
• Other start-up expenses including stationery (Php 24,000) and phone and utility deposits
(40,000).
Another ongoing cost we’ll need to factor in is inventory:
• Start-up inventory of Php 405,000.00 which includes:
• Coffee beans (4 local brand) – Php 80,000.00
• Coffee filters, baked goods, salads, sandwiches, tea, beverages, etc. – Php
300,000.00
• Retail supplies (napkins, coffee bags, cleaning, etc.) – Php 20,000.00
• Office supplies – Php 5,000.00
Equipment for the total amount of Php 1,300,000.00:
• Espresso machine – Php 50,000.00
• Coffee maker – Php 10,000.00
• Coffee grinder – Php 10,000.00
• Food service equipment (microwave, toasters, dishwasher, refrigerator, blender,
etc.) – Php 350,000.00
• Storage hardware (bins, utensil rack, shelves, food case) – Php 90,000.00
• Counter area equipment (counter top, sink, ice machine, etc.) – Php 100,000.00
• Serving area equipment (plates, glasses, flatware) Php 70,000.00

• Store equipment (cash register, security, ventilation, signage) – Php 500,00.00

 • Office equipment (PC, fax/printer, phone, furniture, file cabinets) – Php 80,000.00
• Other miscellaneous expenses – Php 20,000.00
Product cost:

Expresso Php 150.00 – 230.00

Ristretto Php 170.00 – 210.00
Americano Php 180.00 – 200.00
Long black Php 100.00 – 120.00
Dopio Php200.00 – 250.00
Pour over coffee Php 100.00 – 150.00
Drip coffee Php 150.00 – 180.00
Instant coffee Php 50.00 – 70.00

Milk based coffee 100.00 – 120.00

 Flat white Php 150.00 – 200.00
Cappuccino Php150.00 -200.00
Latte Php 200.00 – 220.00
Macchiato Latte Php 150.00 – 200.00
Macchiato Php 150.00 – 200.00
Iced coffee Php 120.00 – 200.00
Affogato Php 150.00 – 200.00

STRENGTH
Our coffee shop named Sakret Cafe is located at Calamba Rd, Tagaytay Cavite - People's
Park in the Sky. The strength of our business in the market is well known since we offer coffee
and beans to our target customers, we are not just selling a cup of coffee but we are also
introducing local beans to our customers, another one is that we loon a perfect place that we
knew that coffee is in demand and some factor that we consider is the weather of the said
location. In service, our advantage will be how organized we are, how clean we are and specially
how detailed the coffee we served. When it comes to staff, we make sure that we have a staff
who are passionate about their job, we make sure that they are not just offering a cup of coffee
but they also welcome the customer so whelmed as they enter to our cafe. We are also willing to
innovate new flavored coffee according to the customer's personal demand.

WEAKNESS 
• As a newer café and/or coffee shop, potential consumers and customers have not heard of
our delicious exotic coffee flavors, coffee beans, expressos and lattes; so proper
marketing will need to be established to assure our target demographic knows and
understands our products.
 • Owners and decision makers at large companies, like restaurant chain suppliers, grocery
chains and corporations, may be hard to get in touch with, which will make it harder to
course quality products at an affordable price.
OPPORTUNITIES
The positive thing about our coffee shop is that we get to meet our clients face to face.
Since we must perform tasks manually, we can continue to experiment with new methods to
improve our company's results. It could take the form of a new product's flavor, new seating
arrangements, new work routines, and so on. Daily customers should be rewarded with discounts
and incentives. Such promotions will assist us in not only increasing brand loyalty, but also in
attracting new customers and retaining existing ones. Customers would have a great experience
if we provide loyalty schemes, innovative deals, and introduce new techniques. We will be able
to expand the product line by selling cookies, chips, cakes, and other similar products. Along
with our Coffee, we give similar things to our customers. It'll not only be a pleasant addition to
our product, but it'll also bring in some extra cash. If our shop reach its success we will
stablished new franchises in different regions under the same brand name, we will expand our
target market. This is how we can expand our target market as well as our market share. If we're
opening a new franchise in a new places or region, we can also use to paid social media
advertising platform to reach a new market. If our company does well we can also have a home
delivery service in partnership with grab Philippines.
Tourists may go to our café not only to converse with their traveling companions, but
also to connect with other individuals. A café is a unique meeting spot where residents and
tourists can mingle without interfering with one another (in most of the cases). It's more of a
neutral zone, a place where everyone may relax. Cafés, particularly for persons traveling alone,
may be seen as secure locations where individuals can seek social interaction with both other
customers and the baristas. Not necessary to strike up a conversation with a stranger, but simply
to blend in with the crowd. The coffee shop has a relaxing ambience where individuals can meet
up with family and friends over a cup of coffee or a snack. Our Coffee shops provide the ideal
meeting spot due to their distinctive environment and placement in the neighborhood

THREATHS
• Economy of surrounding areas can directly impact the possible customer and revenue
stream of our coffee shop café.
 • New marketing strategies and tactics by established coffee shops & investors can limit
our sales and potential market share.
• High cost for maintenance of FDA regulations can lead to unpredicted expenses or
liability to our Company.
• The Low Price of Competitors
 Sometimes competitors lower the prices of the product to attract the market. It’s a loss for
your business either way if you lower it or not.
• Varying prices for resources (food, electricity, gas, oil, water)
INDUSTRY ANALYSIS
The Philippines coffee has a rich history. The first coffee tree was introduced in Lipa,
Batangas in 1740 by a Spanish Franciscan monk. From there Coffee growing spread to other
parts of the batangas. Allowing the province to grow in wealth over the decades. Filipinos
consume 100,000 metric tons as much coffee a year and drink almost as the people of the (united
states, brazil, japan and the European union). The Philippines is looking to be one of the leading
producers of top grade coffee around the world. The industry where a coffee shop falls under
grew out from simple origin, as people tend to travel coming from their homes, going to places
for business agenda, they most likely have the needs and want to eat and drink. People were
encouraged to meet such a demand by providing foods and drinks. Coffee shops in Tagaytay
have now become a new business trend.since tagaytay is one of the country's most popular
destinations for domestic tourism because of its scenery and cooler climate provided by its
altitude. Tagaytay overlooks Taal Lake in Batangas and provides views of Taal Volcano Island
in the middle of the lake. There are many coffee shops businesses being established due to
increased of demand for such coffee shops as being centralized for socialization and a place to
meet up.
Major products sold by coffee shops include beverages as well as complimentary food
items. Beverages include brewed coffee and tea; espresso drinks (cappuccinos, cafe lattes); cold
blended beverages; bottled water; soft drinks; and juices. Food products include pastries, bakery
items, desserts, sandwiches, and candy. Many coffee shops sell whole or ground coffee beans for
home consumption. Some coffee shops sell coffee or espresso-making equipment, grinders,
mugs, and other accessories. Most coffee shops serve high-quality, premium coffee known as
specialty coffee. Philippine farmers have grown coffee for hundreds of years. The country has
produced commercial robusta for decades, with specialty arabica production making up a tiny
percentage of the local coffee industry. 

The Philippines is one of the top exporters during the Spanish era. It was introduced by
Franciscan Friar in 1749. According to Census of Agriculture in 1991, there are a total of
409,698 farms in the Philippines that produces three kinds of coffee covering 141,000 hectares
with 102,183,404 trees. Northern Mindanao is one of the largest coffee production areas in the
Philippines, all in all covering 4,585 hectares of farm lands yielding 0.68 tons/ha of coffee
produced. Coffee shops are also increasing in the region. This project examines the potential of
coffee industry in Northern Mindanao focusing mainly on the demand of coffee shops for coffee
beans.
Natural disasters, environmental issues, and unstable economic conditions have
hampered production in recent years. Demand is also considerably higher than local supply: in
2018, the Philippines consumed 170,000 metric tons of coffee, but produced only 35,000. While
2020 brought further challenges – including the Covid-19 pandemic and the Taal Volcano
eruption – it could also mark the beginning of a new era for Philippine specialty coffee. For the
first time in history, a locally-produced coffee won the 2020 Philippine National Barista
Championship (PNBC). Read on to learn about why this success is so important for the future of
Philippine coffee production. Today coffee is grown considerably in great number of countries
around the world. Way back then, coffee was considered as a food, a medicine, an aphrodisiac
and even a wine. But now coffee is known as a beverage to be savored and enjoyed and this
appreciation in coffee is deliberately growing exponentially. Coffee shops make up the fastest
growing segment of the restaurant business, having a seven percent annual growth rate.

PRODUCTION PLAN
The Sakret Kafe will offer a variety of choices to the customers. Juice, soda, and non-
alcoholic beverages also will be available. For those who want something else to drink. Most
commonly used in making a coffee drinks is Arabica, Espresso and Robusta. The Sakret Café
has 4 main types of coffee.
ARABICA
Dark roasted coffee takes things to extremes in terms of richness, boldness and body. The
whole thing takes on an almost burnt and acrid flavor, which for those who like their coffee
intense can be perfect. Nevertheless, the further you go with the roasting process, the more
difficult it becomes to separate an everyday Arabica coffee from a truly exquisite cup of gourmet
coffee. Arabica originated in the southwestern highlands of Ethiopia and is the most popular kind
of coffee worldwide – making up 60% or more of coffee production in the world.
BENGUET BARAKO
Barako coffee features a strong, bold, and intense flavor profile with distinctively strong
aroma. With its rich and intense taste, it lives up to its name, as "barako" means strong or tough.
Kapeng Barako is more on the dark chocolatey side, with a hint of a fruity taste. It can be drunk
black or sweetened with sugar or honey.
MARKETING ANALYSIS
Coffee is the world's second-largest commodity market, behind oil, and it is predicted to
grow at a rapid rate for the foreseeable future. The speciality beverage sector is growing at a
similar rate, with sales growth rates of up to 40% per year expected in some categories. The
Sakret Café will carry a variety of quality products that will enable us to provide full service
delivery to espresso stands and coffee houses. Our underlying philosophy in selecting products is
to choose lines that will bring consistent quality, competitive prices, and product satisfaction to
our customers.
SERVICE DESCRIPTION
An important component of our business is not just our products, but our service. In addition to
our full service delivery, the following are other important service elements that we will offer to
our customers:
• Custom designed marketing material such as printed banners, promotional posters, punch
cards, pre-purchased beverage cards, reader boards, etc.
• Samples of the latest product releases – with eye-catching point-of-sale to advertise new
items to the end consumer.
• Routine equipment maintenance and training.
Market Size & Segments
The Sakret Kafe will focus on two markets:
The Daily Commuter – someone traveling to or from work, out shopping, delivering goods or
services, or just out for a drive.
The Captive Consumer – someone who is in a restricted environment that does not allow
convenient departure and return while searching for refreshments, or where refreshments stands
are an integral part of the environment.
We will closely integrate all of our marketing and sales efforts to project a consistent
image of our company and a consistent positioning of our products and services. We will build
this image around our name “The Sakret Café “ and emphasize to customers the high-quality
service that is behind this name support our marketing initiatives and product knowledge, we
will attend as many area conventions and trade shows as possible to ensure we are offering the
most up-to-date market trend information.
Facebook : The Sakret Café
Instagram : _The Sakret Café_
Website : www.Secret Café.com

Advertising and Promotion:

We will be using Social Media to help create and promote our brand.  Twitter tweets and
retweets will be used to make sure we have a conversation with our customers. It will also be
used to let them communicate directly with us. Facebook page views and promotions of our
charitable enterprises will be used to get people talking about us and wanting to stop by and try
our unique coffee. Everyone appreciates a good cause. 
COMPETITIVE EDGE:
COMPETITIVE STRENGTHS
No other wholesaler in the market offers full service delivery with the variety of product
we feature. We are better positioned than our main competitors to take advantage of the
increasing demands of coffee and specialty beverage supplies because we focus exclusively on
high-quality distribution and customer service. In addition to the variety of products we feature,
we have a exclusive distribution of our suppplier together with Gourmet Farm and Milk
Dispensing system for our products.
COMPETITIVE WEAKNESSES
Our main flaw is that we are a new business competing primarily against established
vendors. We must not only attract new consumers, but also take clients away from existing
suppliers, in order to considerably increase revenues. However, we believe that by providing a
larger assortment of supplies, introducing new ground-breaking products to the market, and
focusing on high-quality service and full service delivery, we will be able to swiftly establish
accounts and develop solid connections.
COMPETITIVE COMPARISONS
• The sakret café closest competitors ( relative to location) are Java Coffee Shop and
Coffee bean.
• Both Competitors Café has a similarly prices and menus offerings but the difference are
the sakret café is located in near highways and has a good entertainment inside of coffee
shop. The location will easily allow for patrons from these other establishments to finish
an evening with dessert, coffee, drinks.

FINANCIAL PLAN
 We want to finance growth mainly through cash flow. We recognize that this means we will
have to grow more slowly than we might like. The most important indicator in our case is
inventory turnover. We have to make sure that food inventory turnover stays at approximately
four turns per month, or we risk loss through spoilage. We do not want to let our average
collection days get above 45 under any circumstances. This could cause a serious problem with
cash flow, because our working capital situation is tight. Most credit sales will be via credit and
debit cards. We do have plans to initiate direct billing for law firms and other businesses
conducting regular visits. We have to target a net profit of 14% at the least, and hold marketing
costs to no more than one to three percent of gross sales.
Financial Plan 
Forecast
Key Assumptions
1. We assume a steadily growing potential market in line with growth of population and
trends in our business location. 
2. We assume industry standard gross margins
3. We assume relative status quo regarding technology and trends in the coffee industry
Revenue by Month

EXPENSES BY MONTHS
Net Profit (or Loss) by Year

STATEMENT
 FY 2021 FY 2022 FY 2023

REVENUE Php 2,160,000.00 Php 2,600,00.00 Php

3,100,000.00

DIRECT COST 864,000 1,040,000.00 1,240,000.00

GROSS MARGIN 1,296,000.00 1,560,000.00 1,860,000.00

GROSS MARGIN PERCENT 60 percent 60 percent 60 percent

OPERATING EXPENSES

SALARIES AND WAGES 660,000.00 680,000.00 720,000.00

EMPLOYEE RELATED EXPENSES 70,000.00 78,000.00 82,000.00

RENT 324,000 330,000 333,000.00

MARKETING 61,920,00 64,050.00 66,000.00

UTILITIES, PHONE, INTERNET, ETC. 11,000.00 13,000.00 15,000.00

TOTAL OPERATING EXPENSES Php 1,126,920.00 Php Php

1,165,050.00 1,216,000.00

PROJECTED BALANCE SHEET

STARTING FY 2021 FY 2022 FY 2023

BALANCES
CASH 340,000.00 340,000.00 450,000.00 620,000.00

ACCOUNT 0 0 0 0
RECIEVABLE

INVENTORY 160,000.00 220,000.00 380,000.00 470,000.00

OTHER ASSETS

TOTAL CURRENT 500,000.00 560,000.00 830,000.00 1,090,000.00

ASSETS

LONG TERM ASSETS 150,000.00 150,000.00 150,000.00 150,000.00

ACCUMULATED 30,000.00 60,000.00 90,000.00

DEPRECIATION

TOTAL LONG TERM 150,000.00 120,000.00 90,000.00 60,000.00

ASSETS

TOTAL ASSETS 650,000.00 680,000.00 920,000.00 1,150,000.00

STARTING FY 2021 FY 2022 FY 2023

BALANCES

TOTAL CURRENT 600,000.00 330,000.00 400,000.00 450,000.00

LIABILITIES

LONG TERM DEPT 0 0 0 0

LONG TERM LIABILITIES 0 0 0 0

TOTAL LIABILITIES 600,000.00 330,000.00 400,000.00 450,000.00

TOTAL OWNERS EQUITY 50,000.00 350,000.00 520,000.00 700,000.00

TOTAL LIABILITIES AND 650,000.00 680,000.00 920,000.00 1,150,000.00

EQUITY

PROJECTED CASH FLOW STATEMENT

FY 2021 FY 2022 FY 2023

NET CASH FLOW

FROM
OPERATION
 NET PROFIT 153,018.00 356,570.00 582,820.00

CHANGE IN 0 0 0
ACOUNT
RECEIVABLE

CHANGE IN
20,000.00 8,000.00 0
INVENTORY

CHANGES IN 0 0 0
ACCOUNT
PAYABLE

CHANGE IN 0 0 0
PREPAID
REVENUE

NET CASHFLOW 173,018.00 364,570.00 582,820.00

FROM
OPERATION

FY 2021 FY 2022 FY

INVESTING AND FINANCING

ASSET PURCHASED OR SOLD 0 0 0

NET CASH FROM INVESTING 0 0 0

INVESTMENT RECIEVED 0 0 0

DIVEDENTS AND DISTRIBUTION 0 0 0

CHANGE IS SHORT TERM DEPT 0 0 0

CHANGES IN LONG TERM DEPT 0 0 0

NET CASH FROM FINANCING

CASH AT BEGINNING OF PERIOD 340,000.00 450,000.00 620,000.00

NET CHANGE IN CASH 68,000.00 90,000.00 124,000.00

CASH AT END PERIOD 408,000.00 540,000.00 744,000.00