VNU – International University

Engineering Economy IEM DEPARTMENT

Vietnam National University – HCMC

International University

SCHOOL OF INDUSTRIAL & ENGINEERING MANAGEMENT

Course: Engineering Economy

Lecturer: Nguyễn Hoàng Huy

Business project "Mều coffee"

Group 01

No FULL NAME STUDENT’S ID

1 Nguyễn Thị Như Quỳnh IELSIU19252

2 Trần Thị Kim Chi IELSIU19117

3 Phạm Minh Trí IELSIU19081
4 Phạm Thị Yến Ngọc IELSIU19215
5 Lê Thị Như Hà IELSIU19145

6 Phan Đức Đạt IELSIU19010

7 Tào Quốc Huy IELSIU19028

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 VNU – International University
Engineering Economy IEM DEPARTMENT
Ho Chi Minh City, June 2021

Table of Contents
I. Introduction........................................................................................................................................3
1. Mều coffee......................................................................................................................................4
a) The reason to choose the form of Pet coffee..............................................................................................4
b) Location........................................................................................................................................................4
c) Structure......................................................................................................................................................5
d) Working times.............................................................................................................................................6
e) Capital..........................................................................................................................................................6
f) Business strategy.........................................................................................................................................7
2. Products..........................................................................................................................................7
a) Types.............................................................................................................................................................8
b) Price..............................................................................................................................................................8
c) Target.........................................................................................................................................................10
d) Demand......................................................................................................................................................10
3. Market..........................................................................................................................................12
a) Competitors................................................................................................................................................12
b) Suppliers.....................................................................................................................................................15
4. Customers.....................................................................................................................................15
a) Competitiveness of Mều coffee.................................................................................................................15
b) Target customers.......................................................................................................................................16
c) Customers services....................................................................................................................................16
II. Methodology.................................................................................................................................16
1. Data...............................................................................................................................................16
a) Start-up cost...............................................................................................................................................16
b) Variable cost..............................................................................................................................................18
c) Fixed cost....................................................................................................................................................21
2. Applications breakeven point.....................................................................................................24
a) Calculated breakeven point......................................................................................................................24
b) Payback......................................................................................................................................................25
3. Cash flow data and cash flow......................................................................................................26
III. Conclusion and recommendation...............................................................................................28
1. Conclusion....................................................................................................................................28
2. Recommendation.........................................................................................................................29

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IV. Contribution table.......................................................................................................................30

List of Table
Table 1: Price of drink and dessert..................................................................................................9
Table 2: Price of cat's product.........................................................................................................9
Table 3: Demand of drink and dessert...........................................................................................11
Table 4: Demand of cat's product..................................................................................................12
Table 5: Cost of cats......................................................................................................................17
Table 6: Cost of facilities...............................................................................................................18
Table 7: Variable cost of each drink and dessert...........................................................................20
Table 8: Variable cost of each cat's product..................................................................................21
Table 9: Operation’ cost................................................................................................................21
Table 10: Facilities’ cost................................................................................................................21
Table 11: Labor cost......................................................................................................................22
Table 12: Average annual depreciation rate of fixed assets (monthly).........................................23
Table 13: Monthly cats care cost...................................................................................................23
Table 14: Breakeven point of drink and dessert............................................................................24
Table 15: Breakeven point of cat's product...................................................................................25
Table 16: Average monthly profit.................................................................................................26
Table 17: Expected monthly profit................................................................................................27

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I. Introduction
1. Mều coffee
a) The reason to choose the form of Pet coffee
To meet the refreshment needs of all social sectors in the area, nowadays, there are
many cafes in Ho Chi Minh City. Each cafe pursues a different style, but the same
purpose is to attract customers, generate revenue and profit. Coming from the love for
animals, but being too busy with work, owning and caring for every aspect of a cat can be
difficult.
For that reason, we have built a business that combines cats and coffee. Customers
coming here can not only enjoy delicious drinks, but also can interact and play with the
cute cats of the shop. In addition, customers can buy some products to care for their
"Emperor".
b) Location
“Mều coffee” is located at 386/19A, Le Van Sy Street, Ward 13, District 3, Ho Chi
Minh City
Site area: 400m2
This location has many advantages:
- Location: Mều is located near the big road of Le Van Sy in District 3 - one of the central
areas of Ho Chi Minh City, with many people living, many famous tourist and
entertainment places such as Ho Con Rua and Le Van Tam Park are not far away. It can
be said that it is able to attract attention, searching on the map is also easy for those who
have not visited Mều.
- Traffic: Traffic in front of Mều coffee is convenient, with 2-way road, so customers can
move conveniently and easily explore Mều coffee when moving from neighboring areas
such as District 1, Binh Thanh District, District 10.
- Density of passersby: Mều has two fronts plus is located near the wide alley leading to
Le Van Chi, so customers can find it quickly, cars can get in and out easily, the number
of people passing through is crowded. It is easy to see the shop.
- Surrounding area: The two fronts of Mều coffee have spacious sidewalks, convenient
for setting up menu boards and advertising Mều's promotions.
- Parking lot: Mều has a plan to renovate and redesign the Mều's ground floor to serve the
parking, together with the consistency with the surrounding households, it will ensure
adequate and convenient parking space.
- Ground rent: In addition, with a relatively large area (400m2, with ground floor, 3 floors
and terrace), modern, secure, clean, and beautiful residential area, but the rental location
in the alley will help reduce the fixed cost burden on the project.

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Figure 1: Estimated location of Mều coffee on the Figure 2: The front of the shop
map that is expected to open Mều
coffee

c) Structure

Baristas (change shift)

Founder (business
Staffs (change shift)
manager cum cashier)

Security (change shift)

Figure 3: Structure of Mều coffee

“Mều coffee” operating system includes:

- Mều’s founders: With our business model, Mều was founded from a group of members,
together we contributed capital to build it, so legally we have full control over Mều. Such
as decision-making including payroll staff, salary and bonuses, store spending control, set
spending on revenue targets to maintain Mều’s operations better, responsibility for the
resources and management of staff below to assign work, as well as to ensure the
continuous operation of Mều.

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- Baristas (change shift): Mều will have two members to assist guests to order drinks and
food and pay bills. Besides, they will prepare the cafe's drinks. Mều coffee also serves 3
types of cakes. Because the cake is easy to make, the bartender takes over this part.
- Staffs (change shift): Due to the small scale of Mều's operations, Mều coffee has only
two staff to serve guests like bringing drinks to the table for customers. In addition, they
must take care of the cats, feed them and clean them regularly.
- Security (change shift): Mều needs an employee to take over this position, they will
ensure the security of Mều, take care of the motorbike of customers.
d) Working times
“Mều coffee” will operate from 9:00AM to 10:00PM (including the first shift from
8:00AM to 3:00PM and the second shift from 3:00PM to 10:00PM), so there will be
changes to work between employees. As follows:

- Baristas: They will serve from Monday to Sunday. Each shift will have two staff, so the
Mều needs to hire four bartenders
- Staffs: From Monday to Saturday, Mều only needs 2 employees for each shift. As for
Sundays, customers will usually come in more crowds than other days, so in order to
promptly meet the needs of customers, Mều coffee will arrange three staff members for
each shift. The total number of employees that will be hired for this position is six.
- Security: They will work from Monday to Sunday. Mều coffee needs to hire two security
guards so they can change shifts for each other.
e) Capital
With a business project combining coffee and cats. We estimate the total cost for this
model to be 400.000.000 VND.
Which includes:
- Investment capital to form fixed assets for the project: this is the cost including deposit,
equipment, costs of building Mều coffee, purchasing equipment, Mều's interior, the cost
of buying a cat, ... (shown below). This total cost is 295.589.000 VND.
- Amount of investment capital to form regular current assets for the project: It includes the
operating costs, the facilities cost, the cost of taking care of all cats of Mều, the cost of
buying materials to make the shop's products. Besides, there is also the cost of periodic
medical examination and treatment for the cats so that customers can ensure that they
play with healthy cats. This total cost is 104.411.000 VND.

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f) Business strategy
 Marketing
- Social networks: Using social networks such as Facebook, Instagram, including
Tik Tok to advertise, connect customers, introduce products and services, and get
customer feedback.
- Hire reviewers to promote the image and quality of Mều coffee on the above
social media platforms to build a good image with customers.
- Service: create sympathy for customers through service attitude, space to enjoy,
food and drink, ... If the service is good, customers will come back.
 Competitive solution
- Use Mều coffee's exclusive membership card to help customers have many
incentives and retain people.
- Customers can bring their own cats to interact with the cats of Mều coffee or
other customers.
- Serve free cakes to loyal patrons. It does not affect much revenue, but also helps
the cafe become more popular.
- Implement monthly discounts, vouchers, and give away programs to retain
customers.
2. Products
Like other cafes in Ho Chi Minh City, Mều Coffee will provide and serve customers
products made from coffee, fruit with dessert cake (especially for those who love sweets).
The products all ensure different product criteria to attract and impress young customers who
love the novelty and originality when visiting Mều. Customers can also buy bonus pate to
feed the lovely cats at Mều while playing with them.
In addition, customers can buy the products that Mều sells to care for their "Emperor" such
as Cat litter, Cat food, Pate, ...
Quality of the product:

- Drinks: Drinks of the Mều coffee are made from fresh ingredients with clear origin,
undamaged fruit, non-damp coffee beans, ... All are stored at the right temperature.
- Dessert: Ingredients for baking dessert are imported from quality bakeries, the baking
process ensures food hygiene and safety and is well preserved within the time allowed.
- Cat items: A wide variety of products provided by reputable, quality, and reliable brands,
ensuring a long shelf life.

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a) Types
The menu has 2 main types of products:

For people Coffee

Tea & Soda
Dessert
For cats Cat litter
Cat food
Pate
Others

Figure 4: Types of products

In each type of product, there are typical products:

 For people
- Coffee: Americano
- Tea & Soda: Peach Tea
- Dessert: Egg Tart
 For cats
- Cat litter: Cat Like
- Cat food: Catsrang
- Pate: Whiskas Junior
- Others: Nutrition Sausage
b) Price
Mều offers a wide range of products at reasonable prices. Mều coffee will do business
in the form of selling tickets to customers.
After purchasing tickets, customers can choose any drink they like for 79.000 VND,
similarly they can buy any dessert at the price of 10.000 VND.
The prices in all the tables below are in units of 1.000 VND.

Price on
Types of products No. Products Name
menu
1 Expresso 79
2 Cappuccino (Ice/Hot) 79
COFFEE 3 Americano (Ice/ Hot) 79
4 Coffee Late (Ice/ Hot) 79
5 Caramel Macchiato 79
TEA & SODA 6 Peach Tea 79

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7 Lychee Jasmine Tea 79
8 Longan Jasmine Tea 79
9 Strawberry Soda 79
10 Blueberry Soda 79
11 Lime Soda 79
12 Blue Soda 79
13 Orange Juice 79
14 Panna Cotta 10
DESSERT 15 Egg Tart 10
16 Choux Cream 10

Table 1: Price of drink and dessert

For cat products, the specific prices on the menu range from 4.000 VND to 63.000
VND. Specific prices are listed in the following table:

No.
Types of products Name Price on menu
Products
1 Cat Like 49
2 Maneki Neko 49
CAT LITTER 3 Oscar 59
4 King Cat 45
5 Moon Cat 63
8 Pro-Cat Kitten 42
9 Cat's Eye 45
10 Cat On 43
CAT FOOD 11 Catsrang 49
12 Me-O 32
13 Whiskas 44
14 Catsby 53
15 Whiskas Pate 14
16 Meowcat 12
17 Whiskas Junior 11
PATE
18 Wanpy Happy 15
19 Ciao Churu 10
20 Ciao 14
21 Nutrition Sausage 4
OTHERS 22 Catnip 15
23 Nutrition Soup 25

Table 2: Price of cat's product

c) Target

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There is no doubt that the target planning of one business can result in the success of
itself. Since Mều cafe is a new participant in the economy, its aim is to have as many
customers as it could. The customers that Mều cafe wants to concentrate on is cat lovers,
aged between 15-30 years old., especially office workers who love pets but are busy and
do not have time to raise and take care of them. Besides, they are the people who are
willing to pay a not-so-expensive amount of money in exchange for time playing with
pets. To achieve such a goal, the business should be in District 1. This is a significantly
busy and dynamic environment, which is suitable for running a pet cafe. Moreover,
District 1 is always a place that many people choose for the evenings after tiring working
hours.
In addition, the necessity of post-period planning is also vital. In particular, the first and
foremost target to achieve is to get the payback. As long as the business can reach the
forecast demand or beyond, it can hit the goal in no more than two years. After getting
the payback, the next step is to develop the shop to catch up with the pace of trends. In
fact, pet coffee is a new model in Vietnam with enormous potential, however, it is also
dramatically easy to be left behind if there are no changes, especially with the young, the
target customer of the business. Therefore, the profit now can be applied to the
enhancement of facility, service, and customer feeling. This investment is worthy since it
not only brings loyal customers but also contributes to the popularity of Mều cafe in the
long run.
The goal is to make a profit after 9 months:

- From Monday to Friday: about 50-55 customers

- Weekend: about 55-60 customers
- Consumption: about 1700 drinks and 900 desserts
 Tea & soda: 1000-1200
 Coffee: 600-650
 Dessert: 800-900
d) Demand
Products at Mều coffee are always diverse, meeting all needs of customers. Depending
on preferences, needs, gender, age, ... the needs of using these products in Mều are
different. The tables of average demand when Mều coffee comes into operation below are
all predicted by our survey at 4 other cat cafes that we went to for 3 consecutive days.
After making statistics, we have calculated the % demand for products that we intend to
sell at Mều coffee.

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Item sold
No.
Types of products Name Quantity % Demand
Products
1 Expresso 95 3,82
2 Cappuccino (Ice/Hot) 97 3,9
COFFEE 3 Americano (Ice/ Hot) 108 4,34
4 Coffee Late (Ice/ Hot) 84 3,38
5 Caramel Macchiato 85 3,42
6 Peach Tea 255 10,25
7 Lychee Jasmine Tea 172 6,91
8 Longan Jasmine Tea 164 6,59
9 Strawberry Soda 168 6,75
TEA & SODA
10 Blueberry Soda 135 5,43
11 Lime Soda 95 3,82
12 Blue Soda 102 4,1
13 Orange Juice 122 4,9
14 Panna Cotta 186 7,47
DESSERT 15 Egg Tart 342 13,74
16 Choux Cream 280 11,25
TOTAL 2490 100

Table 3: Demand of drink and dessert

- The demand rate for coffee products is not much different: 3,38% - 4,34%
- The products with the highest consumption demand are Peach Tea, which accounts for
10,25% of the total demand for beverages (Tea & Soda)
- Dessert products are in high demand, especially Egg tart and Choux cream which are
favored by customers with 13,74% and 11,25% respectively.

Item sold
Types of No.
Name Quantity % Demand
products Products
1 Cat Like 56 2,12
2 Maneki Neko 42 1,59
CAT LITTER 3 Oscar 33 1,25
4 King Cat 28 1,06
5 Moon Cat 24 0,91
CAT FOOD 8 Pro-Cat Kitten 124 4,7

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9 Cat's Eye 103 3,9
10 Cat On 132 5
11 Catsrang 184 6,97
12 Me-O 157 5,95
13 Whiskas 87 3,3
14 Catsby 61 2,31
15 Whiskas Pate 23 0,88
16 Meowcat 30 1,14
17 Whiskas Junior 69 2,62
PATE
18 Wanpy Happy 28 1,06
19 Ciao Churu 1000 37,86
20 Ciao 72 2,73
21 Nutrition Sausage 340 12,87
OTHERS 22 Catnip 17 0,65
23 Nutrition Soup 32 1,22
TOTAL 2642 100

Table 4: Demand of cat's product

- The highest percentage of demand for cat products is Pate Ciao Churu, which accounts
for 37,86% of the total demand for cat products because the product is sold in the store
for customers to buy to Reward the kittens of Mều coffee, so that the cats even more
tangerine with them. According to the survey, about 2/3 of customers who come to Mều
buy at least 1 pack of Pate Ciao Churu.
- The products with the lowest demand in Beverages and Cat's Products are Coffee Late
(ice / hot) (Coffee) at 3,5% and Catnip (Others) at 0,65%.
3. Market
a) Competitors
 Hachiko coffee

Hachiko is a typical name for a pet cafe in Saigon. The place is designed with two
separate floors: the radical floor is for those who just want to enjoy the coffee, the
second floor has a more modest area for 10 lovely puppies to play around. The varieties
are also diverse: pug, dachshund, poodle and especially the snow-white
Samoyed puppies which look gorgeous. Hachiko Coffee is not only a place where dog
lovers can meet and share experiences in a cool and friendly space, but also a relaxing
place where they can have fun with the pets. Most of the drinks of Hachiko coffee are
simple dishes such as yogurt, juice, and coffee, but still quite delicious.

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Drink:

- Yogurt fruit juices: 62.000 VND

- Smoothies: 55.000 VND
- Milk tea & tea: 90.000 VND
- Green tea: 62.000 VND
- Juice: 62.000 VND
- Soda: 60.000 VND
- Coffee: 60.000 VND
- Lipton: 60.000 VND

 Ken’s House coffee

Among the pet cafes in Saigon emerging, Ken's House Coffee is a prominent name.
This place has a cool, large space which is suitable for pet lovers, especially when there
are Alaska Malamute. This breed was originally a sled-dog breed in cold Alaska. They
have thick, fine feathers and a large body. However, it has a gentle, intelligent, and
significantly loyal personality. That is why this dog is popular in Vietnam as well as all
over the world. In addition, Ken's House Coffee also provides dog food services, which
are varied so that guests can choose for their dogs at home, or they can feed them at the
coffee shop. Drinks in Ken’s House are varied, and the price is not too high, ranging
from 35.000-60.000 VND, a price that is not too expensive in exchange for hours spent
with pets.

Drink:

- Original: 49.000 VND

- Ice blended: 58.000 VND
- Milk tea: 48.000 VND
- Tea: 48.000 VND
- Fresh juice: 45.000 VND
- Smoothies: 58.000 VND
- Soda: 48.000 VND
- Sorbet: 48.000 VND
- Soft drink: 35.000 VND
 Katholic

Katholic is among the most popular pet coffee in Ho Chi Minh City which amazes the
customer, especially youngsters, with its decoration as well as the variety and
friendliness of its cats. It is located in 93 - 95 Street 41, ward 6, district 4, a place which

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is near to district 1 and also easy to find. With the purpose of providing a lovely space
for customers and raising awareness of people about pets, Katholic adopts a great
number of wild cats on the streets to increase their number as well as gives them shelter
to be loved. In addition, Linh Ngoc Dam, the owner of Katholic, is a famous person
who has influence on plenty of people. She shares her experience and shows her
sympathy for those animals and promises to use the Katholic profit to donate to animal
rescue organizations, resulting more in the success of the place.
Menu: The place sells their tickets with reasonable prices, 89.000 VND for
individuals and 164.000 VND for couples. The ticket provides any one or two drinks,
respectively, on the menu. If they want extra drinks, they must pay for those drinks;
nevertheless, the price is fine.
Drink:

- Ice blended: 59.000 VND

- Macchiato: 39.000-45.000 VND
- Fruit tea: 45.000 VND
- Fruit yogurt: 59.000 VND
 Catfe

Catfe Coffee is beloved and known by young cat lovers in and outside of Vietnam.
Being one of the top cat cafes in town, Catfe has been highly recommended by
Japanese News Paper in Vietnam. Catfe Coffee is currently featuring more than 30 cats,
whose breeds are all from around Europe such as short legged Munchkins, Hairless
Sphynx, Bengal, Emerald Eyed Chinchilla, adorable Scottish fold and to top it all off a
giant Main Coon. 
Catfe is currently residing in District 1 with a fancy and spacious space of 300m 2. 
With a glamorous and clean Northern European decoration style, the coffee is equipped
with full air conditioner on all floors, clean and hair-free air, delicious beverage, and
devoted staff members.  Along a 4-year long journey of development, Catfe guarantees
a fresh and classy experience for every customer.
In addition, Catfe Coffee also offers other services in animal caring such as Cat hotel,
Cat spa and Pet Shop.
Menu: The place also sells their tickets with reasonable prices, 79.000 VND,
providing any one drink on the menu. The drinks are also diverse, from coffee to tea,
even chocolate.

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b) Suppliers
For Mều Coffee, the supplier plays an important role in the success of the coffee shop,
creating a good relationship with quality suppliers will have great advantages for Mều
Coffee but to find the supplier. Good quality and reasonable prices are not easy. Through
searching and consulting on the Internet as well as other coffee shops, the main supplier
of Mều Coffee is:

- Coffee roast: Coffee provided by An Vien Cafe. An Vien Cafe offers the best coffee
selected from the raw material areas of Buon Me Thuot, Dak Lak, Cau Dat Da Lat, ....;
selective collection; do not mix impurity flavoring; meticulously hand-packed so that
each cup of brewed coffee reaches the user's hands retains the finest inherent
quintessence.
- Milk supplier: milk is purchased in bulk from the "World Milk Store". Most imported
milk types are TH true milk, Vinamilk, and Dutch Lady.
- Other materials: mainly provided by authorized sources nearby such as: An Nam
Gourmet Shop, Big C Supermarket, ...
4. Customers
a) Competitiveness of Mều coffee
 Strength:

Despite having direct or indirect competitiveness with other cafés is unavoidable,

being located at District 1 is a massive advantage that any café wishes for. It will attract
more customers from other districts as District 1 is the center of Ho Chi Minh city,
which is obviously a decent deal for people who want to experience a unique café
among the normal ones.
Main target the café aims at can be various in ages as it mentioned before. For
instance, after a long and hard-working day, people may find themselves stressed and
demand for a place to relax outside the rooms, or some families would love to have
some precious time with family members and cute pets may be the perfect bonds. Mều
café can be one of the top choices for relaxation or having a great time with friends.
Depending on collected data, “Mều” café might have the most adequate price for such
pet café. Additionally, having cute pets is another positive point for people who are
keen on adorable animals, cats from “Mều” café may humor the most fastidious
customers. With two critical advantages mentioned above, “Mều” café can be a perfect
hotspot for animal lovers. 

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 Weakness:

Cat coffee is the place where customers can find lovely pets to play, of course. Since
several cafes having some similarities with this one have been opened in Ho Chi Minh
city, it will cause more difficulties having indirect competitiveness with other coffee
shops and direct such as CATFE coffee also located at District 1.
b) Target customers
The target audience of Mều Coffee is customers who share a passion for cats and those
who bring their cats here so that their cats can interact (sometimes mate) with other cats.
To make our target customer strategy a reality, we decided to open Mều Coffee at a
location near the city center.
According to surveys at other pet cafes, about 60% of customers who come to these
shops are animal lovers (especially dogs and cats), 20% are people who bring their dogs /
cats to play with the dogs / cats of the shop. The rest of the customers more or less love
animals and they follow their lovers so that their lovers can play with the shop's
emperors. Without a doubt, Mều Coffee will succeed in targeting customers and bringing
in stable revenue.
c) Customers services
In addition, customer service is another factor that attracts both new and frequent
customers. Services that Mều Coffee gives to customers must be of high quality to make
Mều coffee target customers become familiar customers. Communication through social
networking sites such as Tik Tok, YouTube, Facebook, and Instagram are also effective
in providing customers with more information about Mều coffee as well as answering
questions for them to get the best experience.
II. Methodology
1. Data
a) Start-up cost

Types of No.
Name Quantity Price Total
products Products
CATS 1 British Longhair 1 3000 3000
2 British Shorthair 1 6000 6000
3 Siamese Cat 1 2000 2000
4 Russian Blue Cat 1 10000 10000
5 Scottish Fold 1 10000 10000
6 Munchkin 1 12000 12000

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7 Norwegian Forest 1 10000 10000

8 Ragdoll 1 5000 5000
9 Persian Longhair 1 4000 4000
10 Bengal 1 5000 5000
11 Burmese 1 5000 5000
12 American Shorthair 1 3000 3000
13 Exotic 1 10000 10000
14 Oriental Shorthair 1 8000 8000
15 Siberian 1 14000 14000
16 Maine Coon 1 15000 15000
17 Birman 1 12000 12000
18 American Curl 1 13000 13000
19 Napoleon 1 12000 12000
20 Japanese Bobtail 1 11000 11000
TOTAL 170000

Table 5: Cost of cats

Types of No. Price for 1

Name Quantity Total cost
products Product unit
1 Home Mattress 5 120 600
Grooming Comb for
2 3 70 210
Cats
3 Bed 5 65 325
4 Bowl 20 20 400
5 Pet Roller 5 10 50
6 Lice Comb 3 55 165
ITEMS FOR 7 Claw Clippers 3 35 105
CATS 8 Cat Scratch Pan 2 150 300
9 Cat Fishing Rod 5 30 150
10 Cat Tree 3 Floors 5 1500 7500
11 Cat Necklace 20 15 300
12 Cotton Fish Toy 5 9 45
13 Others     500
Water Purifier For
14 2 350 700
Cats
14 Air Purifier 2 5190 10380
FURNITURE 15 Air-Conditioner LG 4 6590 26360
16 Camera 10 1290 12900

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17 Cat Cabinet 10 690 6900
18 Wall Photo 30 30 900
19 Low Wooden Table 10 260 2600
20 Seat Mattress 40 37 1480
21 Cabinets 3 300 900
22 Wall Lamp 15 149 2235
Wall Mounted Large
23 8 299 2392
Mirror
24 Stereo 3 3500 10500
25 Computer 1 6520 6520
26 Receipt Printers 1 1049 1049
27 Bar Cabinets 1 4000 4000
18-Compartment
28 2 2670 5340
Locker Iron Cabinet
29 Wall Cabinet 2 3000 6000
30 Others     3000
31 Coffee Maker 1 5560 5560
32 Shaker 1 63 63
33 Blender 1 1400 1400
EQUIPMENT 34 Microwave 1 1650 1650
35 Hybrid Hobs 1 750 750
36 Coffee Uniform 1 360 360
41 Others     1000
TOTAL 125589

Table 6: Cost of facilities

 Total start-up cost is: 170.000 + 125.589.000 + 104.411.000 = 400.000.000 VND

b) Variable cost

Cost of
No. Materials Quantity for 1 Price for 1 each
Types of Cost of 1
Prod Name for 1 box/1 pack of pack of material
products product
ucts product materials materials of 1
product
gr coffee
1 Expresso 23 500 250 11,5 11,5
power
gr coffee
9 500 250 4,5
COFFEE Cappuccino power
2 12
(Ice/Hot) ml milk
250 1000 30 7,5
bottle
3 Americano 10 700 gr coffee 220 3,15 3,15

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(powder)
(Ice/ Hot)
for filler
gr coffee
9 700 360 4,63
Coffee Late seed
4 12,13
(Ice/ Hot) ml milk
250 1000 30 7,5
bottle
gr coffee
9 700 360 4,63
seed
ml milk
Caramel 150 1000 30 4,5
5 bottle 13,63
Macchiato
ml
20 2000 360 3,6
caramel
5 2000 ml vanilla 360 0,9
gr black
4,5 1000 120 0,54
tea
ml peach
6 Peach Tea 25 700 150 5,36 13,7
syrup
25 1500 ml syrup 450 7,5
2 100 kumquats 15 0,3
gr
4,5 1000 jasmine 150 0,68
Lychee tea
7 Jasmine ml lychee 15,98
35 700 150 7,5
Tea syrup
25 1500 ml syrup 450 7,5
2 100 kumquats 15 0,3
gr
4,5 1000 jasmine 150 0,68
TEA &
Longan tea
SODA
8 Jasmine ml longan 15,975
35 700 150 7,5
Tea syrup
25 1500 ml syrup 450 7,5
2 100 kumquats 15 0,3
strawberr
30 700 160 6,86
Strawberry y syrup
9 15,06
Soda 1 10 lemon 12 1,2
1 1 soda can 7 7
blueberry
30 700 160 6,86
Blueberry syrup
10 15,05
Soda 1 10 lemon 12 1,2
1 1 soda can 7 7
lime
11 Lime Soda 20 700 150 4,29 12,49
syrup

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1 10 lemon 12 1,2
1 1 soda can 7 7
blue
30 700 160 6,86
syrup
1 10 lemon 12 1,2
12 Blue Soda 1 1 soda can 7 7 15,05
2 5 orange 25 10
Orange
13 20 1500 ml syrup 450 6 16
Juice
ml milk
33 1000 30 1,69
bottle
ml
13 1000 whipping 130 0,83
14 Panna Cotta cream 5,28
1,1 4 gr gelatin 3 0,36
gr passion
DESSERT
10 900 fruit 32 2,4
sauce
1 30 case bake 72 2,31
15 Egg Tart ml egg 4,81
33 1000 70 2,5
cream
Choux
16 1 10 box 25 4,95 2,5
Cream

Table 7: Variable cost of each drink and dessert

Types of No. Quantity for 1 box/1

Name Cost of 1 product
products Products bag
1 Cat Like 8 liter per bag 36,2
2 Maneki Neko 5 liter per bag 34
CAT LITTER 3 Oscar 8 liter per bag 47,3
4 King Cat 8 liter per bag 33,3
5 Moon Cat 8 liter per bag 54,5
8 Pro-Cat Kitten 400 gr per bag 30,1
9 Cat's Eye 500 gr per bag 34
10 Cat On 500 gr per bag 31,6
CAT FOOD 11 Catsrang 500 gr per bag 36,9
12 Me-O 350 gr per bag 24,2
13 Whiskas 400 gr per bag 34
14 Catsby 400 gr per bag 41
PATE 15 Whiskas Pate 85 gr per pack 8,2

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16 Meowcat 70 gr per pack 7,1

17 Whiskas Junior 85 gr per pack 5,9
18 Wanpy Happy 100 gr per pack 9,9
19 Ciao Churu 14 gr per pack 4,95
29 Ciao 60 gr per pack 7,7
21 Nutrition Sausage 1 unit 2,3
OTHERS 22 Catnip 1 unit 10
23 Nutrition Soup 90 gr per pack 19,8

Table 8: Variable cost of each cat's product

c) Fixed cost

Operation Cost/month
Electricity 4300
Water 500
Rental Charge 33000
Decorations 500
Repair machine + Clean up 1500
Wi-fi 215
Staff meal 3000
TOTAL 43015

Table 9: Operation’ cost

Facilities/month Quantity Price per box/pack Price

Gloves 100 28 28
Plastic cup 500ml 600 0,58 348
Plastic cup 350ml 1000 0,62 620
Wet handkerchief 5 10 50
Garbage bag 3 42 126
Glass cleaner water 1 21 21
Cleaning liquid 1 21 21
TOTAL 1214

Table 10: Facilities’ cost

Labor cost (average per month)

Staff no Job Salary/hour Working hour Total Salary
S1 Bartender 24 140 3360
S2 Bartender 24 140 3360

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S3 Bartender 24 140 3360
S4 Bartender 24 140 3360
S5 Staff 20 140 2800
S6 Staff 20 140 2800
S7 Staff 20 140 2800
S8 Staff 20 140 2800
S9 Staff 20 140 2800
S10 Staff 20 140 2800
S11 Security 18 210 3780
S12 Security 18 210 3780
TOTAL 37800

Table 11: Labor cost

Average annual depreciation rate of fixed assets (monthly)

Price
Types of No. Total Depreciation Depreciation
Name Quantity for 1
products Product cost life fee
unit
1 Home Mattress 5 120 600 12 45
Grooming
2 3 70 210 18 10.5
Comb for Cats
3 Bed 5 65 325 12 24.38
4 Bowl 20 20 400 12 30
5 Pet Roller 5 10 50 6 7.5
6 Lice Comb 3 55 165 18 8.25
7 Claw Clippers 3 35 105 18 5.25
ITEMS FOR
CATS 8 Cat Scratch Pan 2 150 300 12 22.5
9 Cat Fishing Rod 5 30 150 6 22.5
Cat Tree 3
10 5 1500 7500 18 375
Floors
11 Cat Necklace 20 15 300 6 45
12 Cotton Fish Toy 5 9 45 6 6.75
13 Others     500 12 37.5
Water Purifier
14 2 350 700 18 35
for Cats
FURNITURE 14 Air Purifier 2 5190 10380 96 97.32
Air-Conditioner
15 4 6590 26360 96 247.13
LG
16 Camera 10 1290 12900 60 193.5
17 Cat Cabinet 10 690 6900 36 172.5
18 Wall Photo 30 30 900 36 22.5
19 Low Wooden 10 260 2600 96 24.38
Table

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20 Seat Mattress 40 37 1480 36 37
21 Cabinets 3 300 900 144 5.63
22 Wall Lamp 15 149 2235 96 20.96
Wall Mounted
23 8 299 2392 96 22.43
Large Mirror
24 Stereo 3 3500 10500 72 131.25
25 Computer 1 6520 6520 96 61.13
26 Receipt Printers 1 1049 1049 96 9.84
27 Bar Cabinets 1 4000 4000 96 37.5
18-
Compartment
28 2 2670 5340 96 50.07
Locker Iron
Cabinet
29 Wall Cabinet 2 3000 6000 96 56.25
30 Others     3000 36 75
31 Coffee Maker 1 5560 5560 96 52.13
32 Shaker 1 63 63 12 4.73
33 Blender 1 1400 1400 24 52.5
EQUIPMENT 34 Microwave 1 1650 1650 96 15.47
35 Hybrid Hobs 1 750 750 96 7.04
36 Coffee Uniform 1 360 360 24 13.5
41 Others     1000 36 25
TOTAL 125589   2109.89

Table 12: Average annual depreciation rate of fixed assets (monthly)

Monthly cats care costs

No. Quantity for all Cost of 1
Name Quantity for 1 bag Price
Products cats product
1 Cat Litter 160 8 liter/bag 44 880
2 Cat Food 40 5 kg/bag 300 2400
3 Veterinary 2000 per month 2000

Table 13: Monthly cats care cost

 Total fixed cost/month is: 89.418.890 VND.

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2. Applications breakeven point
a) Calculated breakeven point
The breakeven point is the point at which sales are just enough to cover all costs, including
fixed costs and variable costs. This means that at the breakeven point the producer makes no
profit, but also no loss. Where P is the selling price, Q is the quantity of the product, C f is the
fixed cost and Cv is the variable cost per unit of output. The breakeven point on output is the
ratio of fixed costs to the difference between selling price and variable costs per unit of
output, we have the following equation:
Q = Cf/(P-Cv)

Item sold
Price Quantity -
Types of No. Breakeven Variable
Name Quantity on Breakeven Evaluate
products Products point cost
menu point
1 Expresso 95 79 30,81 11,5 64,19 Gain
Cappuccino
2 97 79 31,04 65,96
(Ice/Hot) 12 Gain
COFFEE 3 Americano (Ice/ Hot) 108 79 27,42 3,15 80,58 Gain
Coffee Late (Ice/
4 84 79 31,18 52,82
Hot) 12,3 Gain
5 Caramel Macchiato 85 79 31,82 13,63 53,18 Gain
6 Peach Tea 255 79 31,85 13,7 223,15 Gain
7 Lychee Jasmine Tea 172 79 33 15,98 139 Gain
8 Longan Jasmine Tea 164 79 33 16 131 Gain
TEA & 9 Strawberry Soda 168 79 32,53 15,06 135,47 Gain
SODA 10 Blueberry Soda 135 79 32,52 15,05 102,48 Gain
11 Lime Soda 95 79 31,27 12,49 63,73 Gain
12 Blue Soda 102 79 32,52 15,05 69,48 Gain
13 Orange Juice 122 79 33,01 16 88,99 Gain
14 Panna Cotta 186 10 440,58 5,28 -254,58 Loss
DESSERT 15 Egg Tart 342 10 400,69 4,81 -58,69 Loss
16 Choux Cream 280 10 277,28 2,5 2,72 Gain

Table 14: Breakeven point of drink and dessert

Item sold
Price Quantity -
Types of No. Breakeven Variable
Name Quantity on Breakeven Evaluate
products Products point cost
menu point
CAT 1 Cat Like 56 49 162,47 36,2 -106,47 Loss
LITTER 2 Maneki Neko 42 49 138,64 34 -96,64 Loss

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3 Oscar 33 59 177,74 47,3 -144,74 Loss
4 King Cat 28 45 177,74 33,3 -149,74 Loss
5 Moon Cat 24 63 244,66 54,5 -220,66 Loss
8 Pro-Cat Kitten 124 42 174,76 30,1 -50,76 Loss
9 Cat's Eye 103 45 189,05 34 -86,05 Loss
10 Cat On 132 43 182,42 31,6 -50,42 Loss
CAT
11 Catsrang 184 49 171,87 36,9 12,13 Gain
FOOD
12 Me-O 157 32 266,61 24,2 -109,61 Loss
13 Whiskas 87 44 207,96 34 -120,96 Loss
14 Catsby 61 53 173,3 41 -112,3 Loss
15 Whiskas Pate 23 14 358,55 8,2 -335,55 Loss
16 Meowcat 30 12 424,4 7,1 -394,4 Loss
17 Whiskas Junior 69 11 407,76 5,9 -338,76 Loss
PATE
18 Wanpy Happy 28 15 407,76 9,9 -379,76 Loss
19 Ciao Churu 1000 10 411,79 4,95 588,21 Gain
20 Ciao 72 14 330,09 7,7 -258,09 Loss
21 Nutrition Sausage 340 4 1223,26 2,3 -883,26 Loss
OTHERS 22 Catnip 17 15 415,91 10 -398,91 Loss
23 Nutrition Soup 32 25 399,92 19,8 -367,92 Loss

Table 15: Breakeven point of cat's product

According to the above tables, in the first month, there are 16 items were sold more than
breakeven point, of which 14 were in the beverage and dessert category including: Expresso,
Cappuccino, Americano, Coffee Late, Caramel Macchiato, Peach Tea, Lychee Jasmine Tea,
Longan Jasmine Tea, Strawberry Soda, Blueberry Soda, Lime Soda, Blue Soda, Orange
Juice, Choux Cream; 2 items in the cat products category are Catsrang Nuts and Ciao Churu
pate.
b) Payback
A business project that we are considering for implementation has the following estimated
costs:

- Investment capital to form fixed assets for the project is 295.589.000 VND,
- Investment capital to form regular current assets for the project is 104.411.000 VND,
- Average monthly fixed cost to operate the cafe is 158.517.880 VND,
- Average monthly revenue is calculated as VND 202.383.000.
We see that this business is very profitable. Specifically, we calculate that the average
monthly profit earned by the cafe is 43.865.120 VND by subtracting the average monthly

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revenue from the average amount to be paid each month. So, the time that Mều coffee can
fully return their investment be calculated by 400.000.000/43.865.120  9.12  10 months.
Our business model will take about 10 months to payback and start to become profitable.
There is a difference from our initial target of being profitable after 9 months because the
actual number of customers may be less than we expected. This difference is within a safe
range, and we can manage it. Therefore, we accept that this model is delayed by 1 month of
expected payback.
3. Cash flow data and cash flow
Cash outflow of an investment project is the amount of money that the business (or
investor) spends to form the required amount of assets for the project. Contents of cash
outflows of Mều coffee include:

- Investment capital to form fixed assets for the project.

- Amount of investment capital to form regular current assets for the project.

Cash inflow of an investment project represents the cash flow brought back by the
investment project to the business (or to the investor). Cash inflow of Mều coffee include:

- Annual net operating cash flow: Is the difference between the amount received (cash
inflows) and the amount spent (cash outflows) arising from regular monthly operations
when the project comes into operation.

Average monthly profit

Cash Inflow = Total revenue 202.383.000
Cash Outflow = Fixed cost + Variable cost 89.418.890 + 68.098.990 = 158.517.880
Profit = Cash Inflow – Cash Outflow 43.865.120

Table 16: Average monthly profit

Based on the demand we predicted above, we assume that in our plan the standard
deviation for profit is ±5.000.000 VND. From there, it is possible to come up with a 12-
month profit of Mều coffee as follows:

End of month Profit

1 43865,12
2 44732,5
3 45314,1
4 43562
5 42364
6 44651,7
7 41430,2

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8 40213,4
9 39432,9
10 46745
11 47879
12 48342,41
TOTAL 528532,33

Table 17: Expected monthly profit.

So, we will draw the cash flow diagram for “Mều Coffee” Business Plan (assume that the
first month start from next January).

48342,41
47879
46745
45314,1
44732,5
43865,12 43562 42364 44651,7
41430,2
40213,4 39432,9

0 1 2 3 4 5 6 7 8 9 10 11 12

Initial investment =
400.000.000 VND

We assume that the interest rate is 4%/month for the whole time.
PW(4%) = -400.000.000 + 43.865.120*(P/F,4%,1) + 44.732.500*(P/F,4%,2) +
45.314.100*(P/F,4%,3) + 43.562.000*(P/F,4%,4) + 42.363.000*(P/F,4%,5) +
44.651.700*(P/F,4%,6) + 41.430.200*(P/F,4%,7) + 40.213.400*(P/F,4%,8) +
39.432.900*(P/F,4%,9) + 46.754.000*(P/F,4%,10) + 47.879.000*(P/F,4%,11) +
48.342.410*(P/F,4%,12)
= -400.000.000 + 43.865.120*0,9615 + 44.732.500*0,9246 + 45.314.100*0,8890 +
43.562.000*0,8548 + 42.363.000*0,8219 + 44.651.700*0,7903 + 41.430.200*0,7599 +

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40.213.400*0,7307 + 39.432.900*0,7026 + 46.754.000*0,6756 + 47.879.000*0,6496 +
48.342.410*0,6246
= - 400.000.000 + 42.176.312.88 + 41359669.5 + 40284234.9 + 37236797.6 + 34818149.7 +
35288238.51 + 31482808.98 + 29383931.38 + 27705555.54 + 31587002.4 + 31102198.4 +
30194669.286
= 12.619.569,076
 This investment will be accepted.
 After analyzing all the necessary costs for pet coffee such as cats, materials, facilities,
initial working capital... from other competitors and prices above in the market, we offer an
amount that satisfies all the conditions to open Mều coffee at 400.000.000 VND. From the
cost of investment, the expected profit per month that we have shown in the tables above, we
have calculated the present worth of this model in one year to have a comprehensive view. In
general, the Mều coffee business model brings profits to investors, specifically the present
value is 12.619.569,076 VND. However, this number is not really accurate, as market
demand can be changed by a number of external factors on a daily basis, resulting in affected
profitability levels. But we expect that the price will not deviate more than the predicted level
of about 2.000.000 VND. Therefore, to become smart investors, we should choose to invest
in Mều coffee model.
III. Conclusion and recommendation
1. Conclusion
In a nutshell, Mều coffee is unquestionable to be a start-up with high economic potential
which can affirm its abilities. The plan we are representing here is to show the process of
making the pet coffee shop become popular with the new trend. The coffee shop is not only
focusing on making a good cup of drink but also providing a new environment with cats.
Beside the advance that the plan has brought to the investors and fund raisers, the plan also
delivers plenty of social benefits. After analyzing, we believe that the investment into the
coffee is a right decision because it is not only profitable but also for its further development.
For instance, with the present worth of 12.619.569,076 VND and the payback period of 10
months. In addition, it is ensured to be an ideal place for youngsters, especially cat lovers and
among the most popular pet coffee in Ho Chi Minh City. Therefore, the future for Mều
coffee will undoubtedly have remarks with flying colors, as a proof of a well-planned
business.

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2. Recommendation
Although pet cafe is a model with great revenue potential, if Mều coffee add a few
catalysts, the business can be much better. Here are a few tips to help the business project
increase more profits and shorten the payback period.
Mều coffee also should be paying attention to advertising to achieve the highest efficiency.
With the development of information today, it is not difficult to bring your own image and
brand to customers. With just a little basic understanding of the media, along with the current
trends, the owner can attract the attention of customers. To increase interaction, it is
necessary to have attractive advertising contents, accompanied by impressive images, invite
viewers to visit the fan page or invite friends to visit. Animal lovers will surely not be able to
resist the charming images of cats at Mều. Actively collect beautiful photos to make the
advertising program more effective.
Making profiles, resumes for dogs and cats seems very silly, but it is an effective way when
running Mều coffee. On the shop's fan page, the personal information of each pet, from the
name, age, date of birth, breed, personality, and characteristics should be clearly listed so that
customers can easily visualize.
The application of technology to Mều management is inevitable to operate well and
increase revenue. If Mều is still "strange" with this trend, a suitable management software
should be installed right away. Coffee shop management software helps employees order at
the table, automatically calculate bills, allocate reasonable shifts, save personnel costs as well
as improve service quality.
Above all, about the quality of product at the shop, customers can be assured that products
in the shop are safe, and delicious with professional and dedicated service. It does not
directly advertise for you, but it will indirectly affect people's tastes, helping them share with
others about the Mều coffee.
Mều coffee also should meet the needs and tastes of customers by diverse menu (even for
cats) to attract more customers of all ages and jobs. If you only follow a standard menu from
the beginning, it will be boring for customers when the shop has been in operation for a long
time. Mều coffee needs finding out new drinks and process them with different tools or
import more new cat products. Besides attractive drinks, the menu can be added with a few
treats for dogs and cats for customers to use as rewards when playing with them. Some
popular dishes can be referring to our pate, nuts, cheese, bones for dogs, etc.
It is advisable to regularly monitor customers’ expenses to understand monthly demand at
the shop to stabilize revenue. To grasp the psychology of customers, Mều coffee should be
listening to customers regularly, learn their needs, update trends to regulate the business of

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the shop. For example, in the winter, the demand for drinks to keep the body heat and warm
increases, and in the summer, refreshing drinks are paid more attention.
Furthermore, improving the professional qualifications and employees, and their
compensation and benefits also need to be guaranteed firmly and appropriately. This is a
standard that must never be ignored and must be continuously improved.
Finally, from the above data and analysis, it shows that the pet cafe is a potential
development of society, because it helps many people, especially children, have a greater
sense of love for animals. Therefore, Mều coffee should be asking the Department of
Planning and Investment of Ho Chi Minh City to support so that the shop can quickly build
and put into operation as soon as possible.
IV. Contribution table

Full name Student’s ID Group 01’s contribution

Nguyễn Thị Như Quỳnh IELSIU19252 100%
Trần Thị Kim Chi IELSIU19117 100%
Phạm Minh Trí IELSIU19081 100%
Phạm Thị Yến Ngọc IELSIU19215 100%
Lê Thị Như Hà IELSIU19145 100%
Phan Đức Đạt IELSIU19010 95%
Tào Quốc Huy IELSIU19028 90%

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