TANAUAN INSTITUTE INC.

BRGY. 4, TANAUAN CITY

BATANGAS

HUG A MUG CAFÉ AND BAKE MY DAY BAKERY

[January 10, 2021]

PROPONENTS:

PANGHULAN IVY ROSE R.

ATUTUBO MICHAELA
PETATE ALJOHN
PIGAR ALLAN
PALANGANAN RENZ PAULO
 BUNO JOHN ALVIN

Table of Contents
I. Executive summary……………………………………………………………
II. Company Description…………………………………………………………
A. Company Mission statement…………………………………………….
B. Company Vision statement………………………………………………
C. Company Goals…………………………………………………………….
D. Target market……………………………………………………………….
E. Industry………………………………………………………………………
F. Legal Structure……………………………………………………………..
Company Description Worksheet
III. Product/Service………………………………………………………………...
Product & Service Description Worksheet………………………………..
IV. Marketing Plan………………………………………………………………….
A. Market Research……………………………………………………………
B. Barriers to Entry……………………………………………………………
C. Threats and Opportunity………………………………………………….
D. Product/Service features and benefits…………………………………
E. Target Customers………………………………………………………….
F. Key competitors……………………………………………………………
G. Market Product/Service…………………………………………………...
H. Promotional Budget……………………………………………………….
I. Pricing………………………………………………………………………..
J. Location or Proposed Location………………………………………….
K. Distribution Channel……………………………………………………….
L. 12-months Sale cost……………………………………………………….
V. Operational Plan………………………………………………………………..
A. Production…………………………………………………………………...
B. Quality control………………………………………………………………
C. Location………………………………………………………………………
D. Legal Environment………………………………………………………….
E. Personnel…………………………………………………………………….
F. Suppliers……………………………………………………………………..
VI. Management & Organization…………………………………………………
A. Biographies………………………………………………………………….
B. Gaps…………………………………………………………………………..
C. Organizational Chart……………………………………………………….
VII. Start-up Expenses % Capitalization…………………………………………
1. Start-up Expenses………………………………………………………….
2. Personnel Financial Statement…………………………………………..
VIII. Financial Plan……………………………………………………………………
A.12-month Profit & loss Projection………………………………………...
 B. Use of Capital………………………………………………………………...
IX. Appendices………………………………………………………………...........
I. Executive summary

Hug a mug café and my day bakery, Is a

start coffee and bakery retail
establishment located at Tanauan city
batangas. Hug a mug café and bake my
day bakery expert to catch interest of a
regular loyal coffee and pastry
customers based with it broad variety of
products. People near in Tanauan need
not just coffee and tea, or pastries and
snacks but also a place to meet
comfortably, have a group discussion, or
just sit quietly, work and read, that is
available in Hug a mug café and Bake
my day Bakery in Tanauan, City
Batangas, Additionally we are decided to
do this Hug a mug café and bake my day
bakery for purpose of satisfying
costumers wants. And we want to build
places that can connect this generation
to the next, where we respect those that
came before us while trying to make
something entirely new. Together, as a
group of friends, as fellow humans,
naturally, liberally, we can do this.
I do believe that we can connect, we can
start something new through just one
cup of coffee.
Hug a mug café and bake my day bakery
will serve high quality coffee and pastry
to the costumers.
Through a place called a “café”, we want
to shine a light in the heart of lifestylists,
and we hope to continue to have the
opportunity to do this.
I. Company Description

A. Company mission statement

-To make distribute and sell the finest quality of all natural products, natural
ingredients and promoting business practices that respect the earth and the
environment.
-Create a product which makes the best quality goods on site, which is fresh
daily.
-Create an atmosphere where we can attract retain and motivate the highest and
talented people in the Industry.
-To create an inviting warm place and presentable nature for our clients and
customers to be able to purchase their good needs.

B. Company philosophy and vision

-Safety first, including proper food handling and sanitation.
-Service and excitement, with speed, friendliness, and consistency.
-Our success is defined by serving people.
-More variety to give people more choices.
-Greater speed so we can serve more guests.
-Value pricing so more people can afford to eat in cafeteria.

Vision
-Continually innovate the skills of improving the products and services we
served.
-Continually donating items from the extra income we get from the tip of
customers, to give to the poor family.
-Continually updating the teams to have a good health so that they can focus on
their job to serve with full of effort for us to be able to visit again and again with our
customers.
-Continually serve the best we can do to challenge our competitors so that we
can get their attention.

C. Company goals
Our Goals; we aspire for quality, character and excellence in all we do.
Product- We aim to serve the best quality and most interesting varieties of
coffees, teas, espresso drinks and accompaniments at all times to everyone.
 Service- We strive to treat our customers respectfully as our guest;
we intend to offer our guests service that is prompt, efficient, friendly, and
relaxed.

Atmosphere- We will provide a pleasant, welcoming environment, and will

maintain a clean and attractive coffee house all times.

Work Environment- We want Hug A Mug Café and Bake My Day Bakery to be
great place to work. We aim to create a positive, respectful workplace and to
empower our staff to be themselves and to achieve their fullest potential.

Community-Hug A Mug Café and Bake My Day Bakery is co mitted to furthering

the spirit and well-being of our neighborhood and the overall Tanauan
community.

D. Target market
-Our target market are those from middle to higher local market. Since this
business can afford with all people and is suitable for all of them.
-Every customer can relax here because of a good atmosphere.

E. Industry
Coffee shops are part of the specialty eatery industry, which also includes outlets
specializing in products such as coffees, teas, espresso, pastry and etc.
Consumer taste and personal income drive demand.

F. Legal structure
The Hug A Mug Café and Bake
My Day Bakery will be formed as
an Café-corporation wholly owned
by IVY ROSE PANGHULAN. Also
secured a business development
position for regional restaurant
 chain, which provided additional
first-hand exposure to the food
and beverages industry especially
the steps involved in establishing
new locations. This cafeteria has
consistently increased sales while
maintaining a lower than average
level of operating expenses.

Company Description Worksheet

HUG A MUG CAFÉ AND BAKE MY DAY BAKERY

Business Name

-To make distribute and sell the finest quality of all natural products,
natural ingredients and promoting business practices that respect the
earth and the environment.
Company -Create a product which makes the best quality goods on site, which is
Mission fresh daily.
Statement -Create an atmosphere where we can attract retain and motivate the
highest and talented people in the industry.
-To create an inviting warm place and a presentable nature for our
clients and customers to be able to purchase their goods needs.
-Safety first, including proper food handling and sanitation.
-Service and excitement, with speed, friendliness, and consistency.
Company
-Our success is defined by serving people
Philosophy/
-More variety to give people more choices.
Values
-Greater speed so we can serve more guests.
-Value pricing so more people can afford to eat in cafeteria.
-Continually innovate the skills of improving the products and services
we served.
-Continually donating items from the extra income we get from the tip of
the costumers, to give to the poor family.
Company Vision -Continually updating the teams to have a good health so that they can
focus on their job to serve with full of effort for us to be able to visit again
and again with our customer.
-Continually serve the best we can do to challenge our competitors so
that we can get their attention.

1.

Goals &
Milestones 2.
 3.

-Our target market are those from middle to higher local market. Since
this business can afford with all people and is suitable for all of them.
Target Market
-Every customer can relax here because of a good atmosphere.

1. Pastry project
Industry/
Competitors 2. Café tribu

3. Cafe76

The Hug a mug café and Bake my Day Bakery will be formed as an
Café-Corporation wholly owned by IVY ROSE PANGHULAN. Also
secured a business development position for regional restaurant chain,
Legal Structure/
which provided additional first-hand exposure to the food and beverages
Ownership
industry especially the steps involved in establishing new locations. This
cafeteria has consistently increased sales while maintaining a lower than
average level of operating expenses.

III. Products/ Services

The Hug A Mug Café and Bake My Day Bakery offer a broad range of coffee and
espresso products from imported coffee beans and product of the Philippine ingredients
which combined to hit the great taste.
The Hug A Mug Café and Bake My Day Bakery also caters to all its customer by
providing each customer coffee and espresso products made to suit their needs.
The Hug A Mug Café and Bake My Day Bakery provides freshly delicious pastry
products are prepared during the day to assure fresh bake goods always.
Product & Service Description Worksheet

Business HUG A MUG CAFÉ AND BAKE MY DAY BAKERY

Name
The Hug a Mug Café and Bake My Day Bakery offer a broad range of coffee
and espresso products from imported coffee beans and product of the
Philippine ingredients which combined to hit the great taste.
The Hug a Mug Café and Bake My Day Bakery also caters to all its customer
Product/
by providing each customer coffee and espresso products made to suit their
Service Idea
needs.
The Hug a Mug Café and Bake My Day Bakery provides freshly delicious
pastry products are prepared during the day to assure fresh bake goods
always.
-Meal Breaks
-Social Security
-Perk and Bonuses
Special -Pay raise
Benefits -Employees Allowance
-Achievement Award
-Health Insurance
-Paid Vacation
The Hug A Mug Café and Bake My Day Bakery has consistently increased
sales while maintaining a lower than average level of operating expenses. As
Unique
we get into the business we’ll develop standards based on their experience
Features
for Facebook likes, Twitter follows, and other social media engagement. We
expect to watch these very carefully.
-Food Safety
Limits and -Employee Accidents
Liabilities -Delivery Disaster

The Hug a Mug Café and Bake My Day Bakery cafeteria will provide a First
class delivery service of quality hot and cold beverage related supplies,
including whole bean or ground coffee, and fresh baked goods.
Production
To streamline the efficiency of our distribution methods, The Hug a Mug Café
and Delivery
and Bake my Day Bakery plans to use the latest in cutting edge technology-
not only in the warehouse but also in this trade.

We use suppliers that source their beams directly from farms, including
those that are fair trade certified. And also have a high quality coffee that is
Suppliers sure to satisfy the customers.
And our pastry products our suppliers is the San Pablo Manufacturing
 Corporation (food retail and service)
Bio chemicals, Cooking oils, Butter and margarine, Cooking and Baking
ingredients, Shortening and land
Intellectual
Property
Special
Permits
The Hug A Mug Café and Bake my Day Bakery,
offer a broad range of coffee and espresso
products, all from imported coffee beans and
products of the Philippine ingredients which
combined hit the great taste.
The Hug A Mug Café and Bake My Day Bakery also caters to all its
customers by providing each customers coffee and espresso products made
to suit their needs.

The Hug a Mug Café and Bake my Day Bakery,

provides freshly delicious pastry products at all
times. Pastry products are prepared during the day
to assure fresh bake goods always.

Product/
Service The HUG A MUG CAFÉ AND BAKE MY DAY BAKERY will carry a variety of
Description quality products that will enable us to provide full service delivery to our
customers. Our underlying philosophy in selecting products is to choose lines
that will bring consistent quality, competitive prices, and product satisfaction
to our customers. An important component of our business is not just our
products, but also our service. Our full service delivery are important service
elements that we will offer to our customers like;
-Ideas to help our customers increase sales through menu development,
creative promotions, and much more.

-custom designed marketing material such as printed banners, posters,

punch cards, reader boards and etc.

IV. Marketing Plan

A. Market research
HUG A MUG CAFÉ AND BAKE MY DAY BAKERY SURVEY FORM

1.What is your gender?

Female
Male

2.Howw Old are you?

Younger than 15
15-20
20-29
30-39
40-49
50 and Above

3.What is your Occupation?

Student
Working
Unemployed
Other

4.How often do you go to café?

Never
Once a week
2-4 times a week
once in a month
Everyday

5.Do you have pets?

No, but I plan to adopt a pet soon
No, and I do not want to own pet
No, because I am not allowed to have one
Yes, non-caged pets
Yes, caged pets
Yes, both caged and non-caged pets

6.Do you like Sweet foods?

Yes
No

7.What do you think of a Hug a Mug Café and Bake my Day Bakery?
 Love to visit one
I would visit one if a friend ask me to
I do not want to visit

8.How would you rate as a customer the staff at our café?

A member of staff noticed me and served me immediately

1 3 5
2 4

The staff were helpful and pleasant

1 3 5
2 4

The staff didn’t create any tension

1 3 5
2 4

The service I was provided was quick

1 3 5
2 4

The staff met all my needs quickly and to my satisfaction

1 3 5
2 4

9.To what extent do you agree with the following statements referring to your
experience in our café?

The quality and speed of service was excellent

I strongly agree
I agree
I disagree
I strongly disagree

The food served was of a high quality and tasted good

I strongly agree
I agree
I disagree
 I strongly disagree

The price list was affordable

I strongly agree
I agree
I disagree
I strongly disagree

The café environment was comfortable and shooting

I strongly agree
I agree
I disagree
I strongly disagree

The café menu was adequate for my needs

I strongly agree
I agree
I disagree
I strongly disagree

An Internet connection was and fast enough for my needs

I strongly agree
I agree
I disagree
I strongly disagree

Would you recommend our café to a friend or colleague?

Yes
No

Would you like us to improve any aspect of our café to suit you better?
 B. Barriers to entry
Competition- for example a competitor who copies your new product thus
decreasing its unique value on the market.

Prices- For example you may set the price of your coffee at a very low price. then, raise the
price of your sandwiches to just a little more than your competitors.

C .Threats and opportunities

Threats;
Difficult to maintain cash flow- it’s difficult to maintain the same cash
flow everyday in the coffee shop business. It’s because of several reasons like
weekends, holidays, pandemic and etc.
Low profit Margin- profits come in the form of bits and pieces, and out of which
you’ve to cover a list of expenses.
Price sensitive market- Coffee is such a product that you can’t raise
the price at a certain limit. If you that people would stop coming to your shop for coffee
at being too expensive. Soon you’ll run out of business .
Costly supplier- supplies know that your business completely relies on their support. It
gives them an upper hand, and they raise the prices of daily supplies whenever they want.
The low Price of Competitors- sometimes competitors lower the prices of the product
to attract the market. It’s a loss for your business either way if you lower it or not.

Opportunities;
Developing a Direct relationship with customers- the good thing coffee shop
business is that it provides you an opportunity to establish a direct relationship with customers face to
face.
Innovation and New Technique- since you have to do things manually, therefore you
should keep on trying innovation techniques to increase the performance of your business. It could in the
form of a new product taste, different seating arrangements, changing work routines, etc.
 Better Customer Experience- By offering reward programs, new techniques would
help you to develop a better experience.
Advertisement to Build Brand Awareness- use a paid social media advertising toll to
target a new market if you’re opening a new franchise in the new region.
Mobile Application & Home delivery service- you should launch a mobile app to
give an additional option to your customers. When they’re using your mobile application, you should also
provide a home delivery service.

D. Product/service features and benefits

Customers have wants and needs. Customer buy benefits, not products/services; for
example, when you purchase food from a restaurant you are purchasing convenience. You could buy the
same food at a grocery store but without the convenience rather than the actual food. The features of our
product/services should deliver benefits. Features create benefits, and benefits give the customer a reason
to purchase a product/service. A feature is a part or piece of your product or service. A benefit is a need or
want, you need food, transportation, shelter, etc.

a. Target customer
Our target customer is drip coffee drinkers, coffee shop lovers, specialty
coffee drinkers, and Mainstream Coffee drinkers.

b. Key competitors
One of the first steps in developing a successful marketing strategy is identifying and
analyzing your fellow competitors. You can do this through detailed market research.
If you do not know who your competitors are, it is likely that someone else will gain a
competitive advantage. For example, someone may have a more user-friendly
website or offer the same product at a lower price. After you have identified your
competitors, you must stay current on their offers and products, in order to stay
competitive in business.

c. Market product/service
d. Promotional budget

e. Pricing

f. Location or proposed location

g. Distribution channels

h. 12-month sales forecast

 DI. Operational Plan
a. Production
Providing exemplary products at market prices will make customers want to return
again and again so that the product was have a small amount but the quality is so expensive. Also primary
offering is gourmet roasted coffees with such varieties such as mocha, carmelicious, white mocha and
brewed coffee. Also the homemade cakes like Blueberry Cheesecake, strawberry cheesecake, chocolate
cakes and so on and so forth.

b. Quality control
Assign manager and staff to food-related control logs .Temperature checks are not
something that should only be done if someone remembers to do them.

-Have a specific people assigned to each certain control activity during every shift.
-Have a cross contamination policy and educate your employees about it frequently.

c. Location
Hug A Mug Café and Bake My Day Bakery will be located on
J .Gonzales St. Barangay 4 Tanauan City Batangas for the Landmark
id beside of slaughter.

d. Legal environment
The start up in the form of a sole proprietorship is inexpensive and manageable in
terms of bureaucracy and accounting. In addition, no corporate tax is owned. The
entrepreneur is liable with his private assets, but the risk is manageable if the
operations are run in a good and reasonable manner.

e. Personnel
Initially the Hug A Mug Café and Bake My Day Bakery will hire 1
manager, 2 baristas, and 1 part time server. Also 2 Baker for the
prepare of cakes. In year 2, The Hug A Mug Café and Bake My Day
Bakery plans to hire 1 additional full time barista.

f. Supplier
 DII. Management & Organization

a. Biographies

b. Gaps

c. Organization Chart
 DIII. Startup Expenses & Capitalization

a. Start-Up Expenses
OPENING BUDGET
Expenditure Low High
Construction cost

Includes design/drawings, flooring,

duct work, surfaces, bar, tiling, panels,
paint, GC (assumes TG provides, P.175,000 P.300,000
 framing, plumbing, electrical, water,
grease trap
)

Kitchen/ Coffee equipment P.110,000 P.150,000

Tables/Chairs P.25,000 P.40,000
Signage P.8,000 P.10,000
POS/Office electronics/security/music P.12,000 P.20,000

b. Personal Financial Statement

 DIV. Financial Plan
a. 12-month profit & loss projection

b. Use of capital
DV. Appendices