BUSINESS PLAN

Seda Hotel Rooftop, Taguig, 1634 Metro Manila

www.thehideaway@yahoo.com

OWNED BY:
Shaina Loraine Gacutan
 INTRODUCTION

Description of the Business

The proposed name of the business is “Hideaway Coffee House”. The word
“hideaway” is defined as a place used as a retreat or a hiding place. Hideaway Coffee House
aims to provide a place of warmth and relaxation for anyone looking for a quick escape from
life’s struggles. It is a perfect place to enjoy brief moments of calm, recollection, and refresh.

Hideaway Coffee House focuses on bringing coffee drinks from various countries
around Asia. In this café, customers no longer need to travel abroad to explore the wide range
and unique blend of coffee. Aside from coffee drinks, the café also offers drinks such as tea
and fruit juice for non-coffee drinkers. In addition, this café offers quality foods such as
pastries and pasta dishes which are a great combination with coffee and fruit drinks.

The Hideaway’s vision is to become the go-to shop for all coffee lovers and coffee
enthusiasts in the Philippines, and to produce the richest and finest coffee served in Asian
nations. To achieve that vision, Hideaway is dedicated to serve the customers with a quality
blend of coffee and to introduce the diversified beauty of the countries in terms of culture and
tradition by serving various blends and tastes of coffee of different countries. The objectives
of the café are to establish a good brand image and to serve the customers with full
excellence and enthusiasm, and to provide a soothing atmosphere and stunning views of the
city.

Location of the Business

Seda Hotel Rooftop is located at Bonifacio Global City, Taguig City. This area is an
upscale city that is densely populated by young, affluent people with expendable income. The
area also has a high proportion of professionals who can afford to spend money on coffee and
other drinks. This is complemented by a significant number of middle-class and
professionals, who make up a significant percentage of those who frequently visit coffee
shops for leisure and meetings. This location is perfect for customers who want to experience
an admirable and comfortable rooftop view.

The reasons for the selection of the business location are the following:
 Customers accessibility is good with satisfactory proximity of target consumers
 Communication and transportation are easily accessed
 Resources such as supplies, labor and utilities are available and easily accessed
 Geographic and climate condition are good, adequate, and stable for the business
 Location has location has stunning upscale city view.
Funding Requirements and Sources
The Hideaway Coffee House will operate under the supervision of the sole owner,
Shaina Loraine Gacutan. The total needed capital for the shop is ₱2,140,000. The owner's
cash contribution is ₱1,140,000, while the amount needed in a loan is ₱1,000,000. The loans
will be funded by private sources payable within two years. The loans will be paid semi-
annually in equal installments with interest.

Sources of Capital Amount

Owner’s Cash Investment ₱1,140,000
Private Sources ₱1,000,000
Total Capital ₱ 2,140,000

Specifically, the funds will be used as follows:

Start-Up Cost
Equipment, Materials, and Supplies
Coffee Production Equipment ₱100,600
Food Service Equipment ₱ 92,000
Service Area Equipment ₱ 8,250
Store Equipment ₱ 78,000
Office Equipment ₱ 22,000
Furniture and Fixtures ₱ 225,000
Cleaning Materials ₱ 3,700
Direct Materials ₱ 200,000
Other Materials ₱ 1,850
Expenses
Rent Expense (6 months) ₱ 300,000
Salary Expense (6 months) ₱ 993,600
Utilities Expense (6 months) ₱ 40,000
Marketing Expense ₱ 20,000
Café Build-out ₱ 30,000
Legal Requirements ₱ 5,000
Repair and Maintenance ₱ 10,000
Other Expenses ₱10,000
Total Use of Funds ₱ 2,140,000
 BUSINESS DESCRIPTION

Product Description
Hideaway Coffee House is a café that aims to introduce the various types of coffee
served in Asian countries. Aside from coffee, the café also offers fruit juice. In addition, to
match the coffee and juice drinks with food, the shop will offer pastries and pasta dishes.
Thus, the Hideaway Coffee House’s products will be classified under five main categories:
coffee drinks, juice drinks, tea series, pasta dishes, and pastries.
The menu for coffee drinks offered may change, possible addition of coffee drinks
famous in Western countries. The pastries and pasta dishes in the menu may also change
depending on the menu schedule of the chef. Aside from coffee and tea listed on the menu,
customers can customize their drinks according to their blend, flavor, and combination
preference. In this way, customers can freely express their coffee and fruit drinks choices.
This can help the business to maintain a good relationship between the café and customers.
Moreover, this can lead to more opportunities to attract customers and to preserve customer
satisfaction and loyalty.

The following are the menu of Hideaway Coffee House:

 Coffee Drinks
Tea Series
Kapeng Barako (Philippines) -
Chai Tea – is a brewed black
It’s a rare and exotic coffee fully-
tea prepared with multiple
grown in Batangas, and known
aromatic spices like ginger and
for its strong taste.
cardamom, milk and sugar.
Kopi Terbalik (Indonesia) -
Green Tea - is made from
The coffee is brewed and poured
unoxidized leaves and is one of
in a glass, which is then turned
the less processed types of tea.
upside down and placed on a
large plate.
Black Tea - It has caffeine
Kopi Joss (Indonesia) – This as
well as other
coffee uniquestimulants
is due andto the
antioxidants.
addition of burning charcoal that
is added directly in a cup of
brewed coffee.
Egg Coffee (Vietnam) - is a
sweet and dense Vietnamese
beverage that traditionally
consists of strong black coffee
that is mixed with a combination of egg yolks and
sweetened condensed milk.
Dalgona (South Korea) - is a
frothy whipped coffee that is
served on top of milk.
Vietnamese Iced Coffee
(Vietnam) - is a drink that
combines strong coffee,
condensed milk, and ice.
Turkish Coffee (Turkey) -
extra finely ground roasted
coffee beans are combined
with cold water (and,
optionally, sugar) in a
traditional coffee pot called cezve or ibrik, and then resembles a thicker, more caffeinated espresso.
brewed over low heat
Fresh Fruit Juice Drinks
Apple Juice - is a fruit juice
made by the maceration and
pressing of an apple.
Ipoh White Coffee (Malaysia) -
Chamomile Tea - contains anti-
The name stems from the
inflammatory, antispasmodic,
roasting technique in which
and carminative properties,
coffee beans are lightly roasted in
which help in soothing the
margarine before they are ground and brewed.
stomach line.
Kopi Tubruk (Indonesia) -
Mint Tea - it has a fresh, cool
Served in a beer glass, kopi
flavor with a tingling finish.
tubruk contains only three
ingredients: ground coffee,
boiling water, and sugar.
Hibiscus
KopitiamTea - is rich
Coffee in vitamin-
(Singapore)
CKopi,
and minerals, and is also
the most popular, is
revered as a mild tonic.
coffee mixed with thick,
sweetened condensed milk
Oliang (Thailand) - is made
with chai tea instead of Ceylon.
Oliang is a mix of coffee, soy,
sesame seeds, and corn.
Arabic Coffee (Saudi Arabia) -
characterized by its dark color
and a uniquely strong and bitter
flavor and odor.
Khmer Coffee (Cambodia) -
coffee roasted in vegetable fat
before they are ground, and
prepared pour-over style using a
metal strainer and mixed with
condensed milk.
Vietnamese Coffee (Vietnam) -
is traditionally brewed in a phin –
a small metal cup that fits over a
mug or cup– and brews incredibly
slowly, but makes a strong and small coffee which
Pineapple Juice - is a liquid
made from pressing the natural
liquid from the pulp of the
pineapple tropical plant.
 Strawberry Juice - is made Raspberry Juice - liquid
solely from strawberries. created from raspberries.

Orange Juice - is a liquid Grape Juice - is a delightful

extract of the orange tree fruit. blend of pineapple, mango,
orange and guava.

Pastries
Raisin Bread - is a type of Pretzels - with unique
bread made with raisins knotted shape made with
and flavored with baked dough in both soft and
cinnamon. hard varieties.
Croissant - contains Premium Red Velvet Cake
dough/roll-in fat layers to - has an acidic taste from the
create a flaky, crispy use of buttermilk, vinegar as
texture. well as the cream cheese.
Muffin - is a small baked Milk Chocolate Cake - is a
good made from batter and cake flavored with melted
are single-serving quick chocolate, cocoa powder, or
breads. both.
Pasta Dishes
Pasta Carbonara - is an Fettuccine Alfredo - is an
Italian pasta dish made with pasta dish of fresh
egg, hard cheese, cured fettuccine tossed with
pork, and black pepper. butter and parmesan.
Spaghetti Bolognese - Spaghetti Aglio e Olio -
consists of spaghetti with literally means olive oil
an Italian meat sauce made and garlic in Italian.
with minced beef, bacon
and tomatoes, served with parmesan cheese.
Spicy Parmesan Shrimp Classic Lasagna - is made
Pasta - spicy shrimp with with a meat sauce as the
penne noodles, coated with base layer the sauce with
parmesan cheese noodles and cheese.

Equipment/Materials Needed
The equipment and materials needed for the operation of the café are the following:
Coffee Production Quantity Acquisition Cost Total Cost
Equipment
Espresso Machine 1 ₱ 25,000 ₱ 25,000
Coffee Maker 2 ₱ 1,300 ₱ 2,600
Coffee Grinder 1 ₱ 18,000 ₱ 18,000
Tea Machine 1 ₱ 50,000 ₱ 50,000
French Press 1 ₱5,000 ₱5,000
Total ₱ 100,600

Food Service Equipment Quantity Acquisition Cost Total Cost

Microwave 1 ₱ 5,000 ₱ 5,000
Dishwasher 1 ₱ 17,000 ₱ 17,000
Refrigerator 1 ₱ 50,000 ₱ 50,000
Ice Machine 1 ₱ 15,000 ₱ 15,000
Other equipment ₱ 15,000
Total ₱ 92,000

Serving Area Equipment Quantity Acquisition Cost Total Cost

Plates 50 ₱ 80 ₱ 4,000
Glasses 50 ₱ 50 ₱ 2,500
Spoon 50 ₱10 ₱500
Fork 50 ₱10 ₱500
Dinner Knife 50 ₱15 ₱750
Total ₱ 8,250

Store Equipment Quantity Acquisition Cost Total Cost

Cash Register 1 ₱ 30,000 ₱ 30,000
CCTV Cameras 3 ₱ 16,000 ₱ 48,000
Total ₱ 78,000

Office Equipment Quantity Acquisition Cost Total Cost

Office Table 1 ₱ 6,000 ₱ 6,000
Office Chair 1 ₱ 3,000 ₱ 3,000
Printer 1 ₱ 10,000 ₱ 10,000
Office Supplies ₱ 3,000
Total ₱ 22,000

Furnitures and Fixtures Quantity Acquisition Cost Total Cost

Fixtures 10 ₱ 2,000 ₱ 20,000
Tables 15 ₱ 5,000 ₱ 75,000
Chairs 30 ₱ 3,000 ₱ 90,000
Sofa 2 ₱ 20,000 ₱ 40,000
Total ₱ 225,000

Cleaning Materials Quantity Acquisition Cost Total Cost

Floor Mop 3 ₱ 600 ₱ 1,800
Dust Pan 4 ₱ 50 ₱ 200
Garbage Bag 20 packs ₱ 70 ₱ 1,400
 Table Wiper 20 ₱ 15 ₱ 300
Total ₱ 3,700
Total Expenses for ₱ 529, 550
Equipment and Materials

Size of the Business

The ownership of Hideaway Coffee House is a sole proprietorship. The owner of the
business is Ms. Shaina Loraine M. Gacutan. It is a hybrid business in nature since it produces
various coffee, tea, juice drinks, and quality foods, even rendering service to the customers.
Hideaway Coffee House falls under the category of micro-business with a total start-up
capital of ₱2,140,000. The proposed business needs ten suitable employees for production
and operation.

Personnel Requirements
For Hideaway Coffee House to operate, it will need a financial manager, sales
manager, two baristas, two servers, bookkeeper, chef, and cashier. Therefore, the total
personnel of the business consist of ten workers, including the owner, as the general manager.

The following are the brief job description for each job role:
General Manager
A general manager is expected to improve efficiency and increase profits while
managing the overall operations of a business. He is also tasked to develop strategies that
reduce costs and increase sales within the business. He ensures that patrons
have a positive experience when dining in the café

Financial Manager

A financial manager performs data analysis and advises general manager on profit-
maximizing ideas. Financial manager is responsible for the financial health of an
organization. He creates financial reports, direct investment activities, and develop plans for
the long-term financial goals of their organization.

Sales Manager

Sales manager you are responsible to develop and foster business through pro-active
direct sales, marketing, telemarketing, direct mail, appointment calls.
Baristas
Baristas make drinks, such as coffee and tea. They package coffee blends, make
coffee and tea, explain menu items to customers, clean, and attempt to ensure that customers
are comfortable and satisfied.
Chef
 The chefs are in charge of baking pastries and cooking pastas for customers and
arranging food/drinks in display cases. Chef is responsible for handling all food-related
concerns and taking care of all food preparation needs. Chef responsibilities include studying
recipes, setting up menus and preparing high-quality dishes. The chef should ensure meals
are prepared in a timely manner.

Servers
A restaurant server takes orders, answers questions about the menu and food, sells the
restaurant's food and drinks, takes payment, communicates orders with the kitchen staff, seats
customers, and helps with customer service and cleaning.
Cashier
Cashier responsibilities include receiving payments and issuing receipts, bagging
products and keeping track of all cash and credit transactions.

Bookkeeper

Bookkeepers oversee a company's financial data and compliance by maintaining

accurate books on accounts payable and receivable, payroll, and daily financial entries and
reconciliations. They perform daily accounting tasks such as monthly financial reporting,
general ledger entries, and record payments and adjustments.
 ORGANIZATIONAL PLAN

Form of Business Organization

The Hideaway Coffee House will be organized as a sole proprietorship where only
one person called the sole proprietor owns and runs the business. The proposed business is a
hybrid business in nature because it intends to produce various coffees, juice drinks, pastries,
and pasta dishes. At the same time, the business will also render a service to the customers.

Liability of the Owner

The proposed business is a sole proprietorship hence the owner has unlimited liability.
If the business fails to fulfill obligations to creditors, the business owner is responsible. The
owner is personally liable for all debts, liabilities, or losses incurred by the business. The
creditors can run after the personal assets of the proprietor. Creditors can take personal
properties such as houses, cars, furniture, and personal bank accounts to satisfy the business
debt.

Organizational Structure
Hideaway Coffee House consists of ten (10) personnel. Specifically, it consists of two
(2) baristas, two (2) servers, chef, cashier, financial manager, book keeper, sales manager,
and the proprietor as the general manager of the organization.

Proprietor/
General
Manager

Financial Baristas and

Sales Manager
Manager Chef

Book keeper Servers Cashier

Roles and Responsibilities

General Manager
General Manager is an executive who has overall responsibility for all administrative
functions in company's business. General Managers set policies, operations, create and
maintain budgets. General Manager coordinates employees and supervises lower-level
managers.

Financial Manager

A financial manager helps the business organization develop and manage financial
goals. He is responsible in reviewing financial reports, monitoring the accounts, preparing of
financial forecasts and managing the available resources and finance of the business
enterprise. He is also tasked to investigate ways on how to improve the profitability of the
business and analyzing target markets for better business opportunities such as business
expansion.

Sales Manager

Sales manager is responsible in leading all workers under his supervision. A sales
manager orients the team’s focus, set goals and objectives, and help in creating better training
opportunities. They are responsible with customer complaints, analyze budgets and determine
ways in improving the performance of the business. He usually set prices and plans for future
sales and deals in the enterprise.
Baristas
The Baristas are expected to be knowledgeable and skillful in creating drinks,
especially coffee in particular. They must possess basic knowledge of latte art and must be
clean and organized at all times, especially in the preparation of the drinks. They are also
expected to provide excellent customer service and always ready to answer any questions and
concerns customers may have especially about the drinks they made.
Chef
The chef is responsible for cooking food served in the cafe. He is also responsible for
preparing food items in advance and seeing that the service area is kept stocked. It is his
responsibility to see that the kitchen is kept in a clean, sanitary and working order.
Servers

The servers are responsible for waiting on tables, taking the customers' food and drink
orders, and responsible for keeping dirty dishes off the tables. They are responsible for
helping to keep the serving area and the customer areas clean and sanitary.

Cashier
 A cashier’s primary role is to assist the customers with their orders. The
responsibilities also include verifying price, scanning prices, bagging of take-out items,
collecting payment and giving appropriate amount of change.

Bookkeeper

A bookkeeper is tasked to prepare financial reports about the business such as balance
sheets, income statement and other related documents. He is also responsible in analyzing
trends, cost, revenues, and other obligations that are expected to predict future performance
of the business.
Roles and Responsibilities of the Owner
The owner of Hideaway Coffee House is Shaina Loraine Gacutan. Aside from being
the proprietor of the proposed business, she is also the general manager of the organization.
The general manager is in charge in the over-all management and daily operations of the
business.

The following are some of the roles and responsibilities of the sole proprietor and
general manager:
1. Design strategy and set goals for growth
2. Control budgets and optimize expenses
3. Ensure employees are motivated and productive
4. Overseeing daily activities of the cafe
5. Developing strategic plans and creating policies
6. Hiring and onboarding new wait staff and baristas
7. Create schedules and assign shifts of the employees
8. Approve budgets, expenses, and operational and marketing plans
9. Advise staff on the best ways to resolve issues with clients and deliver excellent
customer service

Salary Requirements
Hideaway Coffee House consists of 10 workers. The organization consists of two (2)
baristas, two (2) servers, chef, cashier, financial manager, book keeper, sales manager, and
the proprietor as the general manager of the organization.

The following are the proposed salary of workers in regards to their work.

Position Daily Working No. of Monthly Annually

Days Weeks
General ₱1,000.00 6 4 ₱24,000.00 ₱288,000.00
Manager
Financial ₱850.00 6 4 ₱20,400.00 ₱244,800.00
Manager
Sales Manager ₱850.00 6 4 ₱20,400.00 ₱244,800.00
Bookkeeper ₱750.00 6 4 ₱18,000.00 ₱216,000.00
 Chef ₱750.00 6 4 ₱18,000.00 ₱216,000.00
(2) Barista ₱600.00(2) 6 4 ₱14,400.00(2) ₱172,800.00(2)
(2) Servers ₱500.00(2) 6 4 ₱12,000.00(2) ₱144,000.00(2)
Cashier ₱500.00 6 4 ₱12,000.00 ₱144,000.00
Total ₱6,900.00 ₱165,600.00 ₱1,987,200.00

PRODUCTION PLAN

Process Schedule
The Hideaway Coffee House will operate from Monday to Saturday. The operating
hours will be from 10 AM to 8 PM.

Production Process
Brewing Procedures of Coffee Drink
Drip Coffee Maker
Coffee that comes from a drip coffee maker is brewed through a filter containing the
ground, coarse coffee beans as boiling water is “dripped” on top. The filter leaves behind the
ground coffee beans as liquid passes through and into a decanter or coffee pot that is then
used for serving.

Add ground coffee beans

Grind the coffee beans Place a new coffee filter to the filter in a ratio of 2
using coffee grinder. in the drip coffee maker. tablespoons to every cup
of water.

Program the machine to

brew at a certain time, or
Add filtered water to the Serve the coffee using a
press the brew button to
reservoir container. coffee pot
start working
immediately.

Brewing Coffee Using Drip Coffee Maker

French Press

A French press features a cylindrical glass carafe with a mesh filter inside which
separates the ground coffee from the hot water. When it’s time to pour and serve, a lever is
pushed down which strains and separates the coffee grounds from the brewed coffee, leaving
the grounds on the bottom and liquid coffee above the filter. Before brewing with a French
press coffee maker, coffee grounds should be a medium or coarse grind to obtain the best
flavor possible, and to prevent them from passing through the filter.

Add ground coffee to Bring water to a boil

the bottom of the
Grind the coffee beans French press carafe.
using coffee grinder. Use a ratio of 1
tablespoon ground
coffee to 4 oz. of water.
(about 195 degrees
Fahrenheit) and add to
the French press carafe.
Stir to mix with the
coffee grounds.

Place the lid and filter on top of Press down on the

the press and steep 90 seconds to French press “plunger”
4 minutes depending on your with a firm, yet slow
desired flavor. The longer you motion to strain the
Serve the coffee.
let your coffee steep, the beans from the liquid
stronger the flavor will be. brew. 

Brewing Coffee Using French Press

Espresso Machines

Espresso machines are designed to force a small amount of hot water through the
coffee grounds at a very fast speed, and a single shot of espresso can take as little as 20
seconds to brew. Espresso is stronger in taste than the other two brewing methods, and is also
creamier due to the creamy froth called crema that is produced.
Pour filtered water into the
Grind coffee beans espresso machine’s water Add espresso
to a consistency of chamber. Use 1 oz. of water grounds to the
powdered sugar. for every shot of espresso portafilter.
desired.

Place an espresso
Use a tamping
cup underneath the Place the portafilter
tool to pack the
espresso machine’s into its holder and
grounds into the
spout to catch the lock into position.
portafilter.
liquid.

Press the “start”

button and espresso
will be extracted in Serve the espresso.
as little as 20
seconds.

Brewing Coffee Using Espresso Machine

 Brewing Procedures of Loose Tea Leaf

Weight out 2 to 3 grams

Heat the water until it
Pour fresh, cold water of loose leaf tea for
reaches 160 to 212 °F
into a saucepan or kettle. every 6  fl oz (180 mL)
(71 to 100 °C).
of water.

Remove the tea leaves

Steep the tea in hot water
from the water once
for 3 to 5 minutes.
they’ve steeped.

Production Process of Fresh Fruit Juice

Using a nut milk bag,

Peel the fruits. Place the water and peeled
strain the blended
fruits into a blender and
mixture to remove the
blend until smooth.
pulp.

Place a nut milk bag Using hands, squeeze the bag

inside of a bowl and pour until all the juice has been Pour the fresh juice
the blended mixture removed and only the pulp into two glasses
through the bag.  remains.

Production Process of Pastry


Combine flour, yeast and sugar in a
large bowl. Stir in salt. Make a well in
the centre. Add milk and butter.
Use a wooden spoon to stir the mixture until
well combined, then use your hands to bring the
dough together in the bowl. Turn onto a lightly
floured surface and knead for 10 minutes or
until the dough is smooth and elastic.

Brush a large bowl with olive oil to

Punch down the centre of the dough with your fist.
grease. Place the dough in the bowl
Turn onto a lightly floured surface. Knead for 2
and cover with a damp tea towel. Set
minutes or until the dough is elastic and has
aside in a warm, draught-free place to
returned to its original size. Continue following
prove for 45 minutes-1 hour or until
the recipe of choice 
the dough has almost doubled in size.

Making Bread Dough Procedure

Production Process of Pasta Dishes

Cook 1lb/500g of dried When pasta is ready,

pasta) in a large pot Meanwhile, prepare one scoop out 1 cup of pasta
of salted boiling water per of the pasta sauces. cooking water, and drain
packet MINUS 1 minute. pasta.

Add pasta into chosen sauce with 3/4 cup

pasta cooking water. Toss pasta until sauce Season with salt and
thickens and sticks to pasta (called pepper to taste. Finish
"emulsifying" the sauce), 1 - 2 pasta per chosen recipe.
minutes. Use more pasta water if needed to
loosen sauce.

Equipment Required
The following are the machineries and equipment and various tools that will be used
in the production of coffee drinks, fresh juice drinks, teas, pastries, and pasta dishes:

Production Tools
Tools Item Sources Quantity Cost/Unit Amount
Description
Coffee Mug Tinkleo 50 ₱ 90 ₱ 4,500
Drinkware
Store
Espresso Cup Department 50 ₱ 150 ₱ 7,500
and Saucer Store
Tamping Tool Department 2 ₱ 850 ₱ 1,700
Store

Coffee Department 1 ₱ 1,800 ₱ 1,800

Portafilter Store
(Barsetto)

Strainer Department 3 ₱ 200 ₱ 600

Store

Tea Cup and Department 50 ₱ 200 ₱ 10,000

Saucer Store

Peeler Department 2 ₱ 200 ₱ 400

Store

Professional Department 2 ₱ 1,500 ₱ 3,000

Chef’s Knife Store

Nut Milk Bag Department 1 ₱ 200 ₱ 200

Store

Bottle Glass Department 50 ₱ 60 ₱ 3,000

Store

Stainless Bowl Department 5 ₱ 350 ₱ 1,750

Store

Wooden Department 3 ₱ 140 ₱ 420

Spatula Store
 Tea Towel Department 5 ₱ 100 ₱ 500
Store

Steel Casserole Department 3 ₱ 1,500 ₱ 4,500

Pot Store

Equipment and Machineries

Tools Item Sources Quantity Cost/Unit Amount

Description
Drip Coffee Appliance 2 ₱ 1,300 ₱ 2,600
Maker Center
(Imarflex)

Coffee Appliance 1 ₱ 18,000 ₱ 18,000

Grinder Center

French Press Appliance 1 ₱5,000 ₱5,000

Center
(Stanport)

Espresso Appliance 1 ₱ 25,000 ₱ 25,000

Machine Center
(Barsetto)

Blender Appliance 2 ₱ 6,000 ₱ 12,000

Center
(Imarflex)
 Electric Kettle Appliance 2 ₱ 1,400 ₱ 2,800
Center
(Hanabishi)

Gas Stove Appliance 2 ₱ 4,000 ₱ 8,000

Center
(Electrolux)

Gas Tank Petron 2 ₱ 930 ₱ 1,860

Sources of Materials
The sources of raw materials of the Hideaway Coffee House will be coming from the
Philippines and various countries from Asia such as Indonesia, Vietnam, Malaysia, etc. The
café will obtain the vast majority of its raw materials from Filipino suppliers. Moreover, the
proposed business is committed to engage local suppliers and local businesses for trade and
promotion. Batangas’ Best Kapeng Barako will be the supplier of roasted Liberica beans. The
other coffee beans will be coming from their respective country of origin to ensure the quality
and authenticity of the coffee drinks. The fresh fruits will be transported by various local fruit
plantations around Luzon. The supplier for other coffee and tea ingredients will be the MSCS
PrimeGoods, Inc., Magnolia Inc., Teavolution, and Tsaa Laya. The ingredients for pastries
and pasta dishes will be supplied by the SM Market.

Estimated Production Cost

The table shows the estimated production cost of the business for the first six months
of business operation.

Production Cost Amount

Workers Salary ₱ 993,600
Rental Expense ₱ 300,000
Utilities Expense ₱ 40,000
Repair and Maintenance ₱ 10,000
Direct Materials ₱ 200,000
Total Estimated Production Cost ₱ 1,543,600
 OPERATION PLAN
Evaluation of Suppliers
The supplier quality management system of Hideaway Coffee House is essential to
ensure that suppliers are providing the highest quality materials and services while also
conforming to pre-established requirements. Quality Management Systems (QMS) also allow
the proposed business to monitor to monitor supply chains and inspect or audit materials and
services at regular intervals. The supplier quality management system of Hideaway Coffee
House is based from the American Society of Quality.

The Hideaway Coffee House will use the following criteria for the selection of its
suppliers:
 Previous experience and past performance with the product/service to be purchased
 Relative level of sophistication of the quality system, including meeting regulatory
requirements or mandated quality system registration (e.g., ISO 9001)
 Ability to meet current and potential capacity requirements on the desired delivery
schedule
 Financial stability
 Technical support availability and support in developing and optimizing processes
 Total cost of dealing with the supplier, including material cost, communications
methods, inventory requirements, and incoming verification required
 The supplier's track record for business-performance improvement
 Total cost assessment

Considering the criteria, Hideaway Coffee House will use the following methods to
determine how well potential suppliers fit the selected criteria indicated above:
 Requesting a formal quote, which includes providing the supplier with specifications
and other requirements, such as testing
  Visits to the supplier by management and/or the selection team
 Confirmation of quality system status either by on-site assessment, a written survey,
or request for a certificate of quality system registration
 Discussions with other customers served by the supplier
 Review of databases or industry sources for the product line and supplier
 Evaluation, such as prototyping, lab testing, or validation testing, of samples obtained
from the supplier

Purchase Procedures
The financial manager and chef will be in charge of purchasing the supplies and other
materials needed for production. Particularly, the chef will be responsible for ensuring that
the ingredients and supplies for the foods and drinks are of high quality. As a business that
serves foods and beverages, ingredients must be thoroughly evaluated and carefully chosen to
ensure the highest quality of the raw materials.

Creating and
Determining Determining
Sending
Purchase Budget Purchase Budget
Purchase Order

Checking and Receipt and

Recording Inspection of
Invoices Supplies

Purchase Procedures of Hideaway Coffee House

The following will be the flow in the purchasing procedure of the Hideaway Coffee
House:

1. Determining Purchase Budget

The financial manager will prepare the purchase budget of the business. It contains
detailed information regarding quantity to be purchased, prices of materials, sources of
procurement, and the day of purchase.

2. Determining Purchase Budget

The financial manager will determine the specific supplier that will provide the
respective needed supplies. Quotation will be requested from suppliers. Evaluation will be
conducted to determine the most apt supplier by considering the price, quantity and quality,
time of delivery, terms of payment, trade discount and reputation of suppliers. The chef will
aid in determining the sources of supply to ensure the high quality of ingredients.
3. Creating and Sending Purchase Order
After selecting the supplier where particular supplies will be ordered, a formal
purchase order will be sent. This order should contain details about the quantity, quality,
price, mode of delivery, terms of payment etc.
Note: If supplies needed by the business are bought by specific personnel,
reimbursement process will be conducted.

4. Receipt and Inspection of Supplies

The financial manager and chef are going to receive and inspect the ordered supplies.
All goods must be checked on delivery to ensure that they meet the purchase, quality and
quality specifications.

5. Checking and Recording Invoices

The financial manager is responsible in inspecting the delivery and checks it against
the purchase order and invoice. The bookkeeper is responsible to keep track of receipts and to
account the purchase.
Storage and Inventory Control System
As a small business, it shall be the policy of the company to ensure that all raw
materials are stored in a secure, clean and pest free manner. The materials and supplies will
be stored in the storeroom near the kitchen area. The FIFO method will be used to organize
the items in shelves, freezer, cooler, and dry storage in an orderly manner. This method
essentially means first in, first out. This system will help to minimize food waste and spoilage
issues and to make sure that older items are used first. The supplies and ingredients will be
organized by category and label to easily access and identify the supplies. A proper control of
temperature, light, and moisture will be maintained to keep the supplies and ingredients from
spoiling in the storeroom.

Hideaway Coffee House will use the Point of Sales (POS) Inventory Management
System in the management of the inventory of the business. Beyond serving as a cash
register, a POS system tracks inventory and pricing in real time. As soon as a product is
purchased, the system is updated. As a small business that sells various drinks and food
products, POS systems have reduced the complexity of inventory management in café
business setting. This enables the owner to track the availability of ingredients and drinks in
real time, preventing them from running out of popular items. It also includes low-inventory
alerts that notify you when supplies are low. This inventory tracking helps determine whether
there is a need to purchase a certain product. A good POS inventory management system
automates both inventory tracking and purchase ordering. POS inventory management
system is efficient and effective in storage and inventory control of the café.

Listed below are the benefits of using a POS for inventory management:
• Track inventory. A POS system enables a business owner to track inventory.
• Automate purchase ordering. POS software with built-in inventory management can
automate the purchase-ordering process by alerting you when inventory is depleted below a
set threshold.
• Identify trends. A big benefit of using a POS system is the reporting tools that show which
items are moving and which items are languishing. This data can be filter by week, month
and year, which helps to identify sales trends.
• Expands inventory. If inventory management is optimized, it's easier to handle more
products, which means that it can increase the number of SKUs in the inventory. Having
more items to sell improves your potential to increase sales.