CHAPTER 1 and 2

LA ESPRESSO YOURSELF CAFÉ
A Feasibility Study
Presented to
The Faculty of the College of Business and Public Administration
Camarines Norte State College
Daet, Camarines Norte
In Partial Fulfillment of Requirements for the degree of
Bachelor of Science in Business Administration
Major in Business Economics
By
Fernandez, Dem Grace D.
Natino, Katherine A.
Ubana, Clarisse Joy P.
2019
Chapter 1
EXECUTIVE SUMMARY
Name of the Project : La Espresso Yourself Cafe
Location : Vinzons Avenue Daet, Camarines Norte
Proponents : DEM GRACE D. FERNANDEZ
KATHERINE A. NATINO
CLARISSE JOY P. UBANA
Form of Business Organization : Partnership
Total Project Cost : ₱ 468,486.22

Financial Sources : Partner’s Savings
Return on Investment : 79.19%

Payback Period : 2 years, 5 months and 12 days
Project Target Implementation : January, 2019

2
Vision
La Espresso Yourself Café as a leading café in Daet, Camarines Norte, providing
high quality coffee to customer through continuous innovation and excellent service.
Mission
La Espresso Yourself Café will make its best effort in providing every customer
with an ultimate coffee shop experience, offering the highest quality cup of coffee at a
reasonable price that will perfectly soothe every customer’s feeling and taste buds, an
entertainment and comfortable place where customers can relax, eliminate the daily
stresses of life, and an excellent service where every guest has a choice, and a feeling that
he deserve to be loved and has someone who is willing to accompany him. So, the La
Espresso Yourself family will never allow any of the customers to feel less than special.
Goals
The business aims to:
1. To earn reasonable profit.
2. To serve our guests through the best high quality coffee that will
satisfy or exceed customer’s satisfaction.
3. To create a business and working environment where both the
customers and employees are treated with dignity and respect.
4. Continuous improvements and innovation in the business.

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Brief Business Description
La Espresso Yourself Café with a business quotation “Just a Simple hug in a
mug” is a one of a kind coffee shop that will perfectly fit every customer’s mood with a
great choice of music. It has a relaxing, comforting, and soothing ambience that will help
the guest to escape the stress that life brings, wherein the customer can receive high
quality of coffee at a reasonable price and as generation continuous to change and
technology changes the world, coffee lovers would be able to create a place that is
Instagram/photo and an interior design of the building that will focus on projecting a
relaxed atmosphere and will adapt to every trend.
The café will offer a variety of choices to the customers. Coffee of different kinds
will be offered to perfectly satisfy their cravings. The menu has its different section
depending on their mood because La Espresso Yourself family is here to serve what the
guest really feels. Based on the study, Coffee and Health (2017), coffee has caffeine
which is a natural stimulant compound found in a coffee bean that lets them get
motivated to continue the routine and boosts their mental alertness. This compound will
bring every guest positive thinking and the feeling to be more capable of taking on the
day’s challenges. La Espresso Yourself Café will be divided into different areas wherein
every customer can freely espresso themselves. The advantage of having a different area
is that the customers who want to take a cup of coffee alone would be able to do it and so
the other customers can do other activities without bothering anyone. Getting a good start
affects how the rest of their day will go positively and improves the quality of life by
being happy by just having a cup of coffee. Providing customers with a comfortable
place will make them return repeatedly. With regard to our offer, good coffee, good
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mood, La Espresso Yourself Café’s another offer on selected nights, depending on the
occasion, will be different events such as: spoken poetry and singing events on a mini
stage with an open microphone where everyone is invited to join. The La Espresso
Yourself Café is not just a simple cafe; it’s like a family. A family that will not allow any
of its guest to feel uncomfortable, unhappy and unvalued. This café is giving customer a
chance to have courage, be strong, be happy and be confident to show he/she really is.
So, better drop by and try the store’s best coffee located at Vinzons Avenue Daet,
Camarines Norte
1.1 Introduction
As generation change through time, the trend of café business expands all over the
world. At some point the demand for coffee grows and coffee becomes their daily
necessity. People tend to find a place where they would be able to forget the daily
stresses of life, a place that would serve as their comfort zone where they could have
peace of mind by just having cups of coffee. A perfect combination of great choice of
songs that their heart really feels will be played while enjoying a cup of coffee. In market
situation, global coffee market is expected to grow with growing out of home coffee
consuming population, increasing e-commerce retail sales and raising disposable income.
High demand for coffee and the affordable nature of most industry products will support
its growth.
Today coffee is grown considerably in great number of countries around the
world. Way back then, coffee was considered 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

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fastest growing segment of the restaurant business, having a seven percent annual growth
rate in the world.
The Philippines is one of the top exporters during the Spanish era. It was introduced by
the Franciscan Friars 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. In the Bicol region, there are
different coffee shops that offers different varieties of coffee. As a result, in the
continuous increase for the demand of coffee many coffee shops have been established.
There are many reasons why certain people go to coffee shops. One of the reasons,
besides having a great variety of coffee, is for the people to relax and have a great time
with their friends or loved ones. Coffee industry here in Daet, Camarines Norte continues
to develop and to be well-known, where 17 coffee shops are established, and many other
businessmen are interested in this kind of business.
The proponents of La Espresso Yourself Café are best friends who are fond of
going to different coffee shops. They have this dream that someday they will have their
own café business, so they came up with the idea of having this as a Feasibility Study.
Furthermore, the proponents think that coffee shop will be profitable as millennials today
are very fond of going to café’s. They are determined that this kind of business will
provide that perfect cup of coffee, which has become the ideal medium to enjoy life
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together, express emotions, providing piece of mind through great ambience, convenient
location, friendly customer service, and products of consistently high quality that offers
guests experience of great satisfaction. This holds true as further study concluded that an
intake of 100mg caffeine significantly decreased lethargy/fatigue and increased vigor.
The proponents are also eager to offer different varieties of coffee served in cups and will
perfectly soothe everyone’s emotion through its taste, design, great ambiance, and for the
customers to freely “Espresso Yourself”.

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Chapter 2
MARKET STUDY
2.1 Description of the Product
LA ESPRESSO YOURSELF CAFÉ is a proposed business which will offer an
excellent and unique quality products and services in the field of coffee industry in Daet,
Camarines Norte at a reasonable price. The business’ main objective is to offer different
kinds of coffee beverages that perfectly soothe one’s feelings and offer a service that will
exceed its customer’s expectations. The business will offer six different types of coffee.
The coffee shop will offer six different types of coffee, which consist of the
following: First is the Cappuccino which is made of hot milk, coffee and steamed milk
foam. It provides various psychological health benefits such as mind stimulation and
mental alertness. Second is the Espresso that is made by forcing very hot water under
high pressure through finely ground compacted coffee beans. Third is the Mocha Latte,
an espresso drink that consist of espresso, steamed milk, foam and chocolate syrup.
Fourth is the cold brew coffee. It is a smooth, cold beverage prepared by brewing freshly
ground coffee in cold water and has a low acid content, a balanced, soft and even slightly
sweet flavored. Fifth is the Iced Caramel Macchiato, a slightly sweetened milk on the
bottom, ice in the middle, bittersweet espresso on top and rich caramel sauce all over the
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cup. Lastly is the Java Chip Frappuccino made of frappuccino chips with coffee, milk,
and ice blended with mocha sauce, then topped with whipped cream and mocha drizzle to
bring the customers endless java joy.
The proposed business will operate 15 hours daily starting 9:00am to 12:00am
from Monday to Sunday. The services that the business will offer will assure customers a
great stay. The area has a seating capacity of a minimum with 20 people with a private
place for customers where they can enjoy some privacy. The Coffee shop will be Located
at Vinzon’s Ave. Daet, Camarines Norte in front of Centro Department Store. The
proponents chose that location because it is accessible to many establishments such as
schools, offices, and other people roaming around in Daet looking for a place to stay and
relax.
2.2 Demand Analysis
The target markets of the proposed business are the customers ages 15 and above
from the selected barangays of Daet, Camarines Norte namely, Barangay I, II, III, IV, and
VI– or any individual who loves to express emotions by just having a unique and high-
quality taste of coffee with excellent service and ambiance that would surely make them
relaxed, comfortable and enjoying just having a cup of coffee at a reasonable price within
the locality.
Table 1.1
Historical Population of Selected Barangays in Daet, Camarines Norte

Ages 15 years old and above
Barangay 2013 2014 2015 2016 2017
Brgy. I
1,652 1,677 1,710 1,738 1,769
Brgy. II
2,339 2,379 2,354 2,462 2,504
9
Brgy. III
1,436 1,462 1,487 1,512 1,538
Brgy. IV
5,296 5,385 5,478 5,570 5,667
Brgy. VI
1,483 1,509 1,536 1,561 1,589
TOTAL 12,206 12,412 12,565 12,843 13,067
Source: Municipal Planning Development Office, LGU-Daet
Table 1 shows the total number of population in the selected barangays in Daet,
Camarines Norte ages 15 years old and above from 2013 to 2017, who are the target
market of the proposed business. It will be noted that the total population of the selected
barangays from 2013 to 2017 had an average increase of 1.72% every year. This is
computed by subtracting the present population to the past population and dividing it by
the past population. This method is called arithmetic geometric curve method.
Table 2.1
Historical Demand for Cappuccino
Year Total Number of Population 50% of the Total Annual
Population Demand
(no. of cups)
2013 12,206 6,103 1,574,574
2014 12,412 6,206 1,601,148
2015 12,565 6,283 1,620,885
2016 12,843 6,422 1,656,747
2017 13,067 6,534 1,685,643
Table 2.1 shows the historical demand for Cappuccino of the proposed business
for the years 2013 to 2017. The demand was computed by multiplying the total
population of selected barangays from 2013 to 2017 by 50% and then multiplied by 258
which is the average number of cups of cappuccino the customers buy in a year. Fifty
percent (50%) was computed by dividing the total number of individuals who drink
cappuccino by the total number of respondents.

10
Table 2.2
Historical Demand for Espresso
Population Demand
(no. of cups)
2013 12,206 4,516 830,985
2014 12,412 4,592 845,009
2015 12,565 4,649. 855,425
2016 12,843 4,752 874,351
2017 13,067 4,835 889,601
Table 2.2 shows the historical demand for Espresso of the proposed business for
the years 2013 to 2017. The demand was computed by multiplying the total population of
selected barangays from 2013 to 2017 by 37% and then multiplied by 184 which is the
average number of cups of Espresso that the customers buy in a year. Thirty-seven
percent (37%) was computed by dividing the total number of individuals who drink
espresso by the total number of respondents.
Table 2.3
Historical Demand for Mocha Latte
Population Demand
(no. of cups)
2013 12,206 3,540 573,438
2014 12,412 3,599 583,116
2015 12,565 3,644 590,304
2016 12,843 3,724 603,364
2017 13,067 3,789 613,888
11
Table 2.3 shows the historical demand for Mocha Latte of the proposed business
for the years 2013 to 2017. The demand was computed by multiplying the total
population of selected barangays from 2013 to 2017 by 29% and then multiplying the
result by 162 which is the average number of cups of Mocha Latte that the customers buy
in a year. Twenty-nine (29%) was computed by dividing the total number of individuals
who drink mocha latte by the total number of respondents.
Table 2.4
Historical Demand for Cold Coffee Brew

Population Demand
(no. of cups)
2013 12,206 3,418 652,777
2014 12,412 3,475 663,794
2015 12,565 3,518 671,976
2016 12,843 3,596 686,844
2017 13,067 3,659 698,823
Table 2.4 shows the historical demand for Cold Brew Coffee of the proposed
business for the years 2013 to 2017. The demand was computed by multiplying the total
population of selected barangays from 2013 to 2017 by 28% and then multiplying it by
191 which is the average number of cups of Cold Brew Coffee the customers buy in a
year. Twenty-eight percent (28%) was computed by dividing the total number of
individuals who drink cold brew coffee by the total number of respondents.
Table 2.5
Historical Demand for Iced Caramel Macchiato
12

Population Demand
(no. of cups)
2013 12,206 5,004 1,040,928
2014 12,412 5,089 1,058,495
2015 12,565 5,151 1,071,543
2016 12,843 5,266 1,095,251
2017 13,067 5,357 1,114,354
Table 2.5 shows the historical demand for Iced Caramel Macchiato of the
proposed business for the years 2013 to 2017. The demand was computed by multiplying
the total population of selected barangays from 2013 to 2017 by 41% and then
multiplying it by 208 which is the average number of cups of Iced Caramel Macchiato
that the customers buy in a year. Forty-one percent (41%) was computed by dividing the
total number of individuals who drink iced caramel macchiato by the total number of
respondents.
Table 2.6
Historical Demand for Java Chip Frappuccino
Year Total Number of Population 32 % of the Total Annual
Population Demand
(no. of cups)
2013 12,206 3,906 890,550
2014 12,412 3,972 905,580
2015 12,565 4,021 916,742
2016 12,843 4,111 937,025
2017 13,067 4,181 953,368
Table 2.6 shows the historical demand for Java Chip Frappuccino of the proposed
business for the years 2013 to 2017. The demand was computed by multiplying the total
population of selected barangays from 2013 to 2017 by 32% and then multiplying it by
13
228 which is the average number of cups of Java Chip Frappuccino that the customers
buy in a year. Thirty-two percent (32%) was computed by dividing the total number of
individuals who drink java chip Frappuccino by the total number of respondents.
Table 3.1
Projected Demand for Cappuccino
Population Demand
2018 13,292 6,646 1,714,668
2019 13,521 6,761 1,744,209
2020 13,753 6,876 1,774,137
2021 13,989 6,994 1,804,581
2022 14,230 7,115 1,835,670
2023 14,475 7,238 1,867,404
Table 3.1 shows the projected demand for Cappuccino of the proposed business
for the year 2018 to 2022. The average annual demand for Cappuccino was obtained by
multiplying the 50% of the population then, multiplying it by 258, which is the average
servings of Cappuccino that the customers buy in a year. Fifty percent (50%) is
computed by dividing the total number of individuals who drinks cappuccino by the total
number of respondents.
Table 3.2
Projected Demand of Espresso
Population Demand
2018 13,292 4,918 904,919
2019 13,521 5,003 920,509
2020 13,753 5,089 936,304
14
2021 13,989 5,176 952,371

2022 14,230 5,265 968,778
2023 14,475 5,356 985,504
Table 3.2 shows the projected demand for Espresso of the proposed business for
the year 2018 to 2022. The average annual demand for Espresso was obtained by
multiplying the 37% of the population then, multiplying it by 184, which is the number of
cups of Espresso that the customers buy in a year. Thirty-seven percent (37%) was
computed by dividing the total number of individuals who drink espresso by the total
Table 3.3
Projected Demand for Mocha Latte
Year Total Number of Population 29%of the Total Annual
Population Demand
2018 13,292 3,855 624,458
2019 13,521 3,921 635,216
2020 13,753 3,988 646,116
2021 13,989 4,057 657,203
2022 14,230 4,127 668,525
2023 14,475 4,198 668,574
Table 3.3 shows the projected demand for Mocha Latte of the proposed business
for the year 2018 to 2022. The average annual demand for Mocha Latte was obtained by
multiplying the 29% of the population then, multiply it by 162, which is the average no.
of cups of Mocha Latte that the customers buy in a year. Twenty-nine percent (29%) is
computed by dividing the total number of individuals who drink mocha latte by the total
Table 3.4
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Projected Demand for Cold Brew Coffee

Population Demand
2018 13,292 3,722 710,856
2019 13,521 3,786 723,103
2020 13,753 3,851 735,511
2021 13,989 3,917 748,132
2022 14,230 3,984 761,021
2023 14,475 4,053 774,123
Table 3.4 shows the projected demand for Cold Brew Coffee of the proposed
business for the year 2018 to 2022. The average annual demand for Cold Brew Coffee
was obtained by multiplying the 28% of the population then, multiplying it by 191, which
is the average number of cups of Cold Brew Coffee that the customers buy in a year.
Twenty-eight percent (28%) was computed by dividing the total number of individuals
who drink cold brew coffee by the total number of respondents.
Table 3.5
Projected Demand for Iced Caramel Macchiato
Population Demand
2018 13,292 5,450 1,133,542
2019 13,521 5,544 1,153,071
2020 13,753 5,639 1,172,856
2021 13,989 5,735 1,192,982
2022 14,230 5,834 1,213,534
2023 14,475 5,935 1,234,480
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Table 3.5 shows the projected demand for Iced Caramel Macchiato of the
proposed business for the year 2018 to 2022. The average annual demand for Iced
Caramel Macchiato was obtained by multiplying the 41% of the population then,
multiplying it by 208, which is the average number of cups of Iced Caramel Macchiato
that the customers buy in a year. Forty-one percent (41%) was computed by dividing the
total number of individuals who drink iced caramel macchiato by the total number of
respondents
Table 3.6
Projected Demand for Java Chip Frappuccino
Population Demand
2018 13,292 4,253 969,784
2019 13,521 4,327 986,492
2020 13,753 4,401 915,408
2021 13,989 4,476 931,008
2022 14,230 4,554 947,232
2023 14,475 4,632 963,456
Table 3.6 shows the projected demand for Java Chip Frappuccino of the
proposed business for the years 2018 to 2022. The average annual demand for Java Chip
Frappuccino can be obtained by multiplying the 32% of the population then, multiplying
it by 228, which is the average number of cups of Java Chip Frappuccino that the
customers buy in a year. Thirty-two percent (32%) was computed by dividing the total
number of individuals who drink iced caramel macchiato by the total number of
respondents.
Table 4.1
Supply Analysis of Cappuccino
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Name of Competitor Total Number of cups of Total Number of cups of

Cappuccino Sold Per Day Cappuccino Sold Per Year
#1327 6 2,160
Café Eli 5 1200
Café Morga 5 1,800
Cup n’ Cake 6 2,160
Infinitea 4 1,440
Lara’s 15 3,600
Living Room 3 864
Sophie’s 3 864
TOTAL 47 13,224
Table 4.1 shows the existing competitors of our proposed business that offer
cappuccino to the customers ages 15 years old and above. It shows the total number of
Cappuccino sold per day which is 47 or 13,224 annually. The total supply was obtained
by multiplying the total number of servings per day by the total number of days that each
competitor operates. The competitors have different numbers of working days.
Table 4.2
Supply Analysis of Espresso
Name of Competitor Total Number of Total Number
Espresso Sold Per Day Espresso Sold Per Year
#1327 3 1,080
Café eli 3 720
Café morga 6 2,160
Cup n’ cake 2 720
Infinitea 2 720
Lara’s 5 1,200
Living room 3 864
Sophie’s 2 576
TOTAL 26 8,040
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Espresso to the customers ages 15 years old and above. It shows the total number of
Espresso sold per day which is 26 or 8,040 annually. The total supply was obtained by
multiplying the total number of servings per day by the total number of days that each
Table 4.3
Supply Analysis of Mocha Latte
Name of Competitor Total Number of Mocha Total Number Mocha
Latte Sold Per Day Latte Sold Per Year
#1327 2 720
Café eli 6 1,440
Café morga 8 2,880
Cup n’ cake 5 1,800
Infinitea 3 1,080
Lara’s 15 3,600
Living room 1 288
Sophie’s 5 1,440
TOTAL 45 13,248
Mocha Latte to the customers ages 15 years old and above. It shows the total number of
Mocha Latte sold per day which is 45 or 13,248 annually. The total supply was obtained
by multiplying the total number of servings per day by the total number of days that each
Table 4.4
Supply Analysis of Cold Brew Coffee
Name of Competitor Total Number of Cold Total Number Cold
Brew Coffee Sold Per Brew Coffee Sold Per
Day Year
#1327 2 672
Café eli 3 1,008
Café morga 9 3,024
Infinitea 5 1,680
Lara’s 3 1,008
Living room 3 864
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Sophie’s 2 672
TOTAL 30 9,936
Table 4.4 shows the existing competitors of our proposed business that offers
Cold Brew Coffee to the customers ages 15 years old and above. It shows the total
number of Cold Brew Coffee sold per day which is 30 or 9,936 annually. The total supply
was obtained by multiplying the total number of servings per day by the total number of
days that each competitor operates. The competitors have different numbers of working
days
Table 4.5
Supply Analysis of Iced Caramel Macchiato
Name of Competitor Total Number of Iced Total Number Iced

Caramel Macchiato Sold Caramel Macchiato
Per Day Sold Per Year
#1327 5 1,800
Café eli 5 1,200
Café morga 7 2,520
Infinitea 7 2,520
Lara’s 3 720
Living room 7 2,016
Sophie’s 8 2,304
TOTAL 48 15,240
Table 4.5 shows the existing competitors of our proposed business that offers Iced
Caramel Macchiato to the customers ages 15 years old and above. It shows the total
number of Iced Caramel Macchiato sold per day which is 48 or 15,240 annually. The
total supply was obtained by multiplying the total number of servings per day by the total
number of days that each competitor operates. The competitors have different numbers of
working days.
Table 4.6
Supply Analysis of Java Chip Frappuccino
Name of Competitor Total Number of Java Total Number Java
Chip Frappuccino Sold Chip Frappuccino Sold
20
Per Day Per Year

#1327 10 3,600
Café eli 4 960
Café morga 4 1,440
Infinitea 6 2,160
Lara’s 5 1,200
Living room 4 1152
Sophie’s 5 1,440
TOTAL 45 14,472
Table 4.6 shows the existing competitors of our proposed business that offers Java
Chip Frappuccino to the customers ages 15 years old and above. It shows the total
number of Java Chip Frappuccino sold per day which is 45 or 14,472 annually. The total
supply was obtained by multiplying the total number of servings per day by the total
number of days that each competitor operates. The competitors have different numbers of
working days.
Table 5.1
Projected Supply of Cappuccino
Year Total Supply
2018 15,208
2019 17,489
2020 20,112
2021 23,129
2022 26,598
2023 30,588
21
Table 5.1 shows the projected supply of Cappuccino. As guided by the

competitors the total number of cups of Cappuccino served in a year grow by the average
of 15% per year. The total projected supply was obtained by getting the projected number
of Cappuccino to be sold per day multiplied by 360.
Table 5.2
Projected Supply of Espresso
Year Total Supply

2018 9,246
2019 10,633
2020 12,228
2021 14,062
2022 16,171
2023 18,597
Table 5.1 shows the projected supply of Espresso. As guided by the competitors
the total number of cups of Espresso served in a year grow by the average of 15% per
year. The total projected supply was obtained by getting the projected number of
Espresso to be sold per day multiplied by 360.
Table 5.3
Projected Supply of Mocha Latte
Year Total Supply

2018 15,235
2019 17,520
2020 20,148
2021 23,170
2022 26,646
2023 30,643
22
Table 5.3 shows the projected supply of Mocha Latte. As guided by the competitors the
total number of cups of Mocha Latte served in a year grow by the average of 15% per
year. The total projected supply was obtained by getting the projected number of Mocha
Latte to be sold per day multiplied by 360.
Table 5.4
Projected Supply of Cold Brew Coffee
Year Total Supply

2018 11,426
2019 13,140
2020 15,111
2021 17,378
2022 19,985
2023 22,983
Table 5.4 shows the projected supply of Cold Brew Coffee. As guided by the competitors
the total number of cups of Cold Brew Coffee served in a year grow by the average of
15% per year. The total projected supply was obtained by getting the projected number of
Cold Brew Coffee to be sold per day multiplied by 360.
Table 5.5
Projected Supply of Iced Caramel Macchiato
Year Total Supply

2018 17,526
2019 20,155
2020 23,178
2021 26,655
2022 30,653
2023 35,251
23
Table 5.5 shows the projected supply of Iced Caramel Macchiato. As guided by the
competitors the total number of cups of Iced Caramel Macchiato served in a year grow by
the average of 15% per year. The total projected supply was obtained by getting the
projected number of Iced Caramel Macchiato to be sold per day multiplied by 360.
Table 5.6
Projected Supply of Java Chip Frappuccino
Year Total Supply
2018 16,643
2019 19,139
2020 22,010
2021 25,312
2022 29,109
2023 33,475
Table 5.6 shows the projected supply of Java Chip Frappuccino. As guided by the
competitors the total number of cups of Java Chip Frappuccino served in a year grow by
the average of 15% per year. The total projected supply was obtained by getting the
projected number of Java Chip Frappuccino to be sold per day multiplied by 360.
Table 6.1
Demand and Supply Gap for Cappuccino
Year Total Demand Total Supply Gap Market Share
2018 1,714,668 15,208 1,699,460
2019 1,744,209 17,489 1,726,720 0.36%
2020 1,774,137 20,112 1,754,025 0.41%
2021 1,804,581 23,129 1,781,452 0.46%
2022 1,835,670 26,598 1,809,072 0.52%
2023 1,867,404 30,588 1,836,816 0.59%
24
Table 6.1 shows the Demand and Supply Gap for Cappuccino which was obtained
by subtracting the total supply from market share determined by dividing the projected
product capacity by the gap and multiplied by 100%.
Table 6.2
Demand and Supply Gap for Espresso
2018 904,919 9,246 895,673
2019 920,509 10,633 909,876 0.68%
2020 936,304 12,228 924,076 0.78%
2021 952,371 14,062 938,309 0.87%
2022 968,778 16,171 952,607 0.99%
2023 985,504 18,597 966,907 1.12%
Table 6.2 shows the Demand and Supply Gap for Espresso which was obtained by
subtracting the total supply from market share determined by dividing the projected
product capacity to the gap and multiplied by 100%.
Table 6.3
Demand and Supply Gap for Mocha Latte
2018 624,458 15,235 609,223
2019 635,216 17,520 617,696 1.01%
2020 646,116 20,148 625,968 1.14%
2021 657,203 23,170 634,033 1.29%
2022 668,525 26,646 641,879 1.47%
2023 668,574 30,643 637,931 1.70%
Table 6.3 shows the Demand and Supply Gap for Mocha Latte which was
obtained by subtracting the total supply from market share determined by dividing the
projected product capacity to the gap and multiplied by 100%.
Table 6.4
Demand and Supply Gap for Cold Brew Coffee
2018 710,856 11,426 699,430
2019 723,103 13,140 709,963 0.87%
25
2020 735,511 15,111 720,400 0.99%

2021 748,132 17,378 730,754 1.12%
2022 761,021 19,985 741,036 1.27%
2023 774,123 22,983 751,140 1.45%
Table 6.4 shows the Demand and Supply Gap for Cold Brew Coffee which was
obtained by subtracting the total suppl from market share determined by dividing the
projected product capacity to the gap and multiplied by 100%.
Table 6.5
Demand and Supply Gap for Iced Caramel Macchiato
2018 1,133,542 17,526 1,116,016
2019 1,153,071 20,155 1,132,916 0.55%
2020 1,172,856 23,178 1,149,678 0.62%
2021 1,192,982 26,655 1,166,327 0.71%
2022 1,213,534 30,653 1,182,881 0.80%
2023 1,234,480 35,251 1,199,229 0.91%
Table 6.5 shows the Demand and Supply Gap for Iced Caramel Macchiato which
was obtained by subtracting the total demand to the total supply. Market share
determined by dividing the projected service capacity by the gap and multiply it by
100%.
Table 6.6
Demand and Supply Gap for java Chip Frappuccino
2018 969,784 16,643 953,141
2019 986,492 19,139 967,353 0.65%
2020 915,408 22,010 893,398 0.80%
2021 931,008 25,312 905,696 0.91%
2022 947,232 29,109 918,123 1.03%
2023 963,456 33,475 929,981 1.17%
26
Table 6.6 shows the Demand and Supply Gap for Java Chip Frappuccino which
was obtained by subtracting the total supply from market share determined by dividing
the projected product capacity by the gap and multiplied by 100%.
Table 7
Projected Product Capacity
Types of Coffee Product Capacity Product Capacity Product Capacity

Per Day Per Month Per Year
Cappuccino 15 450 5,400
Espresso 15 450 5,400
Mocha Latte 15 450 5,400
Cold Brew Coffee 15 450 5,400
Iced Caramel Macchiato 15 450 5,400
Java Chip Frappuccino 15 450 5,400
TOTAL 90 2,700.00 32,400.00
Table 7 shows the projected product capacity for each type of coffee. It is shown
that there is a total of 90 servings of coffee that can be produced a day. To get the
monthly capacity, multiply the product capacity by the number of days the business
operates and to obtain the product capacity per year, the product capacity per month was
multiplied by 12.
Table 8
Price
Without VAT (2019)
Quantity Cost per Mark up Selling Price

Serving
Cappuccino ₱50.90 19.34% ₱ 70.00
Espresso 44.45 20.44% 65.00
27
Mocha Latte 51.62 18.58% 70.00

Cold Brew Coffee 50.30 19.62% 70.00
Iced Caramel Macchiato 52.00 18.2% 70.00
Java Chip Frappuccino ₱47.33 22.72% ₱ 70.00
Table 8.1
Break Down
Pricing for Cappuccino
Raw Materials 37.65
Freight In 0.19
Packaging and Labelling 2.50
Employee Benefits – Production 0.06
13th month pay – production 3.33
Direct Labor 3.33
Rent 1.11
Depreciation - Kitchen Equipment 1.11
Utilities Expense 1.62
Cost per serving 50.90
Mark-up (38%) 19.34
Selling Price ₱70.00
Table 8.2
Break Down
Pricing for Espresso
Raw Materials 31.20
Freight In 0.19
Employee Benefits - Production 0.06
28
13th month pay - production 3.33

Direct Labor 3.33
Rent 1.11
Mark-up (46%) 20.44
Table 8.3
Break Down
Pricing for Mocha Latte

Raw Materials 38.37
Freight In 0.19
Direct Labor 3.33
Rent 1.11
Mark-up (36%) 18.38
Table 8.4
Break Down
Pricing for Cold Brew Coffee
Raw Materials 37.05
Freight In 0.19
29
Employee Benefits - Production 0.06

13th month pay - production 3.33
Direct Labor 3.33
Rent 1.11
Mark-up (39%) 19.62
Table 8.5
Break Down
Pricing for Iced Caramel Macchiato
Raw Materials 38.75
Freight In 0.19
Direct Labor 3.33
Rent 1.11
Mark-up (35%) 18.2
Table 8.6
Break Down
Pricing for Java Chip Frappuccino
30
Raw Materials 34.08

Freight In 0.19
Direct Labor 3.33
Rent 1.11
Mark-up (48%) 22.72
Table 9
Price
Without VAT (2020)

Serving
Cappuccino ₱51.00 21.10% ₱ 72.10
Espresso 44.36 22.59% 66.95
Mocha Latte 51.74 20.35% 72.10
Java Chip Frappuccino ₱47.33 24.76% ₱ 72.10
Table 9.1
Breakdown
31

Raw Materials 38.78
Freight In 0.16
Direct Labor 3.19
Rent 0.97
Mark-up (41.37%) 21.10
Table 9.2
Breakdown

Raw Materials 32.14
Freight In 0.16
Direct Labor 3.19
Rent 0.97
Mark-up (50.92%) 22.59
Table 9.3
Breakdown
32

Raw Materials 39.52
Freight In 0.16
Direct Labor 3.19
Rent 0.97
Mark-up (39.34%) 20.35
Table 9.4
Breakdown

Raw Materials 38.16
Freight In 0.16
Direct Labor 3.19
Rent 0.97
Mark-up (43.09%) 21.71
Table 9.5
Breakdown
33

Raw Materials 39.91
Freight In 0.16
Direct Labor 3.19
Rent 0.97
Mark-up (38.29%) 19.96
Table 9.6
Breakdown

Raw Materials 35.10
Freight In 0.16
Direct Labor 3.19
Rent 0.97
Mark-up (52.35%) 24.76
Table 10
Price
34
With VAT (2021)

Serving
Cappuccino ₱51.36 31.81% ₱ 83.00
Espresso 44.53 32.70% 77.00
Mocha Latte 52.13 31.04% 83.00
Java Chip Frappuccino 47.58 35.59% 83.00
Table 10.1
Break Down

Raw Materials 39.94
Freight In 0.14
Direct Labor 3.05
Rent 0.84
Mark-up (44.58%) 22.90
Unit Price 74.26
VAT (12%) 8.91
Table 10.2
Break Down
35

Raw Materials 33.10
Freight In 0.14
Direct Labor 3.05
Rent 0.84
Mark-up (54.87%) 24.43
Unit Price 68.96
VAT (12%) 8.28
Table 10.3
Break Down

Raw Materials 40.70
Freight In 0.14
Direct Labor 3.05
Rent 0.84
Mark-up (42.46%) 22.13
Unit Price 74.26
VAT (12%) 8.91
Table 10.4
Break Down

36
Raw Materials 40.70

Freight In 0.14
Direct Labor 3.05
Rent 0.84
Mark-up (46.38%) 23.53
Unit Price 74.26
VAT (12%) 8.91
Table 10.5
Break Down

Raw Materials 41.11
Freight In 0.14
Direct Labor 3.05
Rent 0.84
Mark-up (41.36%) 21.73
Unit Price 74.26
VAT (12%) 8.91
Table 10.6
37
Break Down

Raw Materials 40.70
Freight In 0.14
Direct Labor 3.05
Rent 0.84
Mark-up (56.08%) 26.68
Unit Price 74.26
VAT (12%) 8.91
Table 11
Price
With VAT (2022)

Serving
Cappuccino ₱49.28 36.39 ₱86.00
Espresso 42.23 37.32 80.00
Mocha Latte 50.06 35.61 86.00
Cold Brew Coffee 48.63 37.04 86.00
Iced Caramel Macchiato 50.48 35.19 86.00
Java Chip Frappuccino ₱45.38 40.56 ₱86.00
Table 11.1
Breakdown
38

Raw Materials 41.14
Freight In 0.12
Direct Labor 2.92
Rent 0.73
Mark-up (55.22%) 27.21
Unit Price 76.49
VAT (12%) 9.18
Table 11.2
Breakdown

Raw Materials 34.09
Freight In 0.12
Direct Labor 2.92
Rent 0.73
Mark-up (68.18%) 28.80
Unit Price 71.03
VAT (12%) 8.52
Table 11.3
Breakdown
39

Raw Materials 41.92
Freight In 0.12
Direct Labor 2.92
Rent 0.73
Mark-up (52.78%) 26.43
Unit Price 76.49
VAT (12%) 9.18
Table 11.4
Breakdown

Raw Materials 40.49
Freight In 0.12
Direct Labor 2.92
Rent 0.73
Mark-up (57.30%) 27.86
Unit Price 76.49
VAT (12%) 9.18
Table 11.5
Breakdown
40

Raw Materials 42.34
Freight In 0.12
Direct Labor 2.92
Rent 0.73
Mark-up (51.52%) 26.01
Unit Price 76.49
VAT (12%) 9.18
Table 11.6
Breakdown

Raw Materials 37.24
Freight In 0.12
Direct Labor 2.92
Rent 0.73
Mark-up (51.52%) 31.11
Unit Price 76.49
VAT (12%) 9.18
Table 12
Price
41
With VAT (2023)

Serving
Cappuccino ₱47.58 40.66 ₱88.00
Espresso 40.33 41.66 82.00
Mocha Latte 48.40 39.84 88.00
Cold Brew Coffee 46.91 41.33 88.00
Iced Caramel Macchiato 48.83 38.41 88.00
Java Chip Frappuccino ₱43.57 44.67 ₱88.00
Table 12.1
Breakdown

Raw Materials 42.37
Freight In 0.11
Rent 1.06
Mark-up (65.57%) 31.20
Unit Price 78.79
VAT (12%) 9.45
Table 12.2
42
Breakdown

Raw Materials 35.12
Freight In 0.11
Rent 1.06
Mark-up (81.40%) 32.82
Unit Price 73.16
VAT (12%) 8.78
Table 12.3
Breakdown

Raw Materials 48.40
Freight In 0.11
Rent 1.06
Mark-up (62.80%) 30.39
Unit Price 78.79
VAT (12%) 9.45
Table 12.4
43
Breakdown

Raw Materials 41.70
Freight In 0.11
Rent 1.06
Mark-up (67.94%) 31.87
Unit Price 78.79
VAT (12%) 9.45
Table 12.5
Breakdown

Raw Materials 43.61
Freight In 0.11
Rent 1.06
Mark-up (61.36%) 21.95
Unit Price 78.79
VAT (12%) 9.45
Table 12.6
Breakdown
44

Raw Materials 38.36
Freight In 0.11
Rent 1.06
Mark-up (80.83%) 35.21
Unit Price 78.79
VAT (12%) 9.45
2.5 Marketing Strategies

The marketing strategy of the proposed business is to provide customers with
ultimate coffee shop experience, producing highest quality cup of coffee and providing a
comfortable, relaxing, unique environment and entertainment, with an excellent and
reliable customer service to meet and exceed their satisfaction. The proposed business
will focus on getting customers through the use of advertisements such as installing
tarpaulin, giving away specialized keychains and pins or through the use of
website/social media. The proposed business will focus on the 4p’s of marketing, the
product, place, pricing, and promotion providing consumers the right product, in the right
place with a right price at the right time to contribute customer’s satisfaction, promote
sales growth and ensure the business success.
Product
The proposed business will offer the consumers the highest quality cup of coffee
with six different kinds such as Cappuccino, Espresso, Mocha Latte, Cold brew coffee,
iced caramel macchiato and Java chip Frappuccino that the consumer can choose from.
La Espresso Yourself Café will provide the highest quality cup of coffee, customizing the
cup depending on the customer’s mood and an excellent service for customer satisfaction.
Price
45
La Espresso Yourself Café will offer the highest quality cup of coffee at an
affordable price that everyone could enjoy. The proposed business will use the
penetration strategy.
Promotion
La Espresso Yourself café will build awareness to the consumers using tarpaulin,
pins, keychains and social media. Tarpaulin will be hanged near the area and pins and
keychains will be distributed to the customers as freebies. Through social media, it would
be easy to promote the proposed business by posting the products and services La
Espresso Yourself Café offers.
Place
La Espresso Yourself Café will be located at Vinzon’s Avenue Daet, Camarines

Norte. This place is very accessible and convenient to stay in since it is along the road
and there are many establishments, schools, offices around the area that would serve as
advantage for the business as potential customer source.

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LA ESPRESSO YOURSELF CAFÉ

The Faculty of the College of Business and Public Administration

Camarines Norte State College

Daet, Camarines Norte

In Partial Fulfillment of Requirements for the degree of

Bachelor of Science in Business Administration

Major in Business Economics

Fernandez, Dem Grace D.

Ubana, Clarisse Joy P.

Name of the Project : La Espresso Yourself Cafe

Location : Vinzons Avenue Daet, Camarines Norte

Proponents : DEM GRACE D. FERNANDEZ

CLARISSE JOY P. UBANA

Form of Business Organization : Partnership

Total Project Cost : ₱ 468,486.22

Return on Investment : 79.19%

Project Target Implementation : January, 2019

La Espresso Yourself Café as a leading café in Daet, Camarines Norte, providing

The business aims to:

1. To earn reasonable profit.

satisfy or exceed customer’s satisfaction.

3. To create a business and working environment where both the

customers and employees are treated with dignity and respect.

4. Continuous improvements and innovation in the business.

Brief Business Description

La Espresso Yourself Café with a business quotation “Just a Simple hug in a

quality of coffee at a reasonable price and as generation continuous to change and

relaxed atmosphere and will adapt to every trend.

Today coffee is grown considerably in great number of countries around the

appreciation in coffee is deliberately growing exponentially. Coffee shops make up the

rate in the world.

businessmen are interested in this kind of business.

together, express emotions, providing piece of mind through great ambience, convenient

intake of 100mg caffeine significantly decreased lethargy/fatigue and increased vigor.

customers to freely “Espresso Yourself”.

2.1 Description of the Product

LA ESPRESSO YOURSELF CAFÉ is a proposed business which will offer an

bring the customers endless java joy.

proponents chose that location because it is accessible to many establishments such as

2.2 Demand Analysis

Historical Population of Selected Barangays in Daet, Camarines Norte

cappuccino by the total number of respondents.

espresso by the total number of respondents.

who drink mocha latte by the total number of respondents.

Year Total Number of Population 28% of the Total Annual

Year Total Number of Population 41% of the Total Annual

2021 13,989 5,176 952,371

Projected Demand for Cold Brew Coffee

who drink cold brew coffee by the total number of respondents.

Name of Competitor Total Number of cups of Total Number of cups of

Name of Competitor Total Number of Iced Total Number Iced

Per Day Per Year

Table 5.1 shows the projected supply of Cappuccino. As guided by the

Year Total Supply

Year Total Supply

Year Total Supply

Year Total Supply

2020 735,511 15,111 720,400 0.99%