Brew Desk Café Feasibility Study

1
 EXECUTIVE SUMMARY

PROJECT BACKGROUND

The proposed name of the project is “ Brew Desk Cafe”. It was named

Brew Desk Cafe because unlike other coffee shops within the region it is the

prime mover of the first Techno-Coffee Shop not just in Lipa City, Batangas but in

the Calabarzon as a whole. It is located at The Outlets, Lima Technology Center,

Special Economic Zone, Lipa, Batangas.

MANAGEMENT FEASIBILITY SUMMARY

The establishment will be a partnership type of business organization. It

will utilize a functional organization structure whereby people shall be focusing on

their prime area of expertise. The cafe manager will manage the business as well

as establish and accomplish business objectives.

MARKETING FEASIBILITY SUMMARY

The marketing strategies and the undestnading of the market will provide

the information taht will better comprehend the customers need and preferences.

With this understanding, the business will be able to offer the kind of service or

products the customer will be statisfied with. Hence, the market understanding

will lead to the success of the business.

The Brew Desk Cafe will focus its marketing efforts to the two groups of

their market. The first group is familiar with the Internet and desires a progressive

and inviting atmosphere where they can get out of their offices or homes to enjoy
a great cup of coffee, internet access and entertainment. This group is made up

of students from the University nearby and business people from nearby city

offices and professional centers.

PRODUCTION/TECHNICAL FEASIBILITY SUMMARY

Brew Desk Cafe is the first and only techno-coffee shop in the Calabarzon

wherein customer can have a sip from a cup of coffee while having their favoraite

movie or while dicussing business matters with their business partners or even

while enjoying playing their online games. It offers coffee, frappe, sweets and

light snacks, it also had service of online gaming, movie watching and business

meeting venue rentals.

The establishment will assign an effective and efficient staff. Brew Desk

Café is strategically located at The Outlets, Lima Technology Center, Special

Economic Zone, Lipa, Batangas.

Brew Desk Café will thoroughly select machineries and equipment to

ensure the good quality of the product for the customer. There will be

maintenance done every week by the technician to maintain the quality of

service.

For the wastes that are produced by the Brew Desk Café, there will be

separate trash for biodegradable and non-biodegradable wastes. This will be

collected by the waste collectors of the city government every day.

FINANCING/FINANCIAL FEASIBILITY SUMMARY

Brew Desk Café will meet its future needs for capital through cash flow

generated from its operation. The capital came from the proponents personal

resources for the business to come into existence. The proponent calculated the

projected income and expenditures; the assets, liabilities, equity and the inflow

and outflow of cash; as well as the gross profit that can be attained by the

business and it shows positive results for the business. The Return on

Investment ratios which is 19% shows that business has a high ROI since

investment will return on its 1st year of operation based on the financial

projections of the business.

SOCIO-ECONOMIC FEASIBILITY SUMMARY

Brew Desk Café aims in minimizing economic, social and environmental

benefits as well as involving local people in tourism to generate greater well-

being for the community; increase economic development by creating stable

sources of income and providing opportunities for both local employment and

local businesses; create a better place that is worth to visit and lastly, increase

recognition of tourism as an effective and efficient tool towards socio-economic

development of the City of Lipa and a Province of Batangas.

Brew Desk Café, as the first Techno-Coffee shop in Lipa and in the

Calabarzon as a whole, also aims to make profit out of the business and

promotes tourism.
 CHAPTER I
INTRODUCTION

Project Background Rationale

The demand for internet access are undeniably high. In this technological

era almost every uses internet for thier work, assignments, business transactions

and others.

Moreover, batangeno’s are also coffee lovers. Everywhere in the city you

can find coffee and food shops where you can dine and relax

The Brew Desk Café will establish its brand in the city of Lipa, creating a

successful business that enables us to fulfill our underlying mission: to provide

communities with the ability to access the internet and entertainment for

relaxation, enjoy a cup of coffee and share life experiences in a comfortable

environment.

Brew Desk Café, unlike typical coffee shops, provides a unique forum for

communication and entertainment through the medium of the internet, gaming

and entertainment. Brew Desk Café is the answer to an increasing demand. The

public wants a place to socialize and share these experiences with friends and

colleagues and a place for relaxation and access to the methods of

communication and volumes of information now available on the internet.

The physical structure of the coffee shop a two- story coffee shop, first

floor is centralized air conditioned and the second floor is an area for gaming,

business conferrence, and movie watching).

 There are rooms to be placed within the second floor for entertainment

(movie, music and gaming). Some of the areas are in the first floor are

associated for those who needs a quiet and romantic moment.

Differentiating ourselves from other more traditional cafes has given us the

ability to effectively compete on the beverage and pastry side of the business

with the already entrenched competition. Sales are brisk and in-line with

projections.

The Internet, gaming and entertainment services side of the business will

be our absolute competitive advantage to the local competitors in the area. Since

students love to gather for late-night sessions, nearby seniors/retirees are getting

a glimpse of what the internet offers and local business people love to stop by for

a quick bite and an email check.

Strategically, Brew Desk Café is located at the heart of the city, just a

walking distance to the main places like hospitals, schools, hotels and malls to

accommodate the customers craving for coffee with their choice of lifestyle.

Objectives

This study will determine the feasibility of the Brew Desk Café in the City of

Lipa. Specifically, it aims to achieve the following objectives:

a. One of the leading branded techno coffee shop in the city and be known

on the neighbouring provinces because of its new feature of an internet café and

coffee shops in one.

b. Attracts local consumers taste and loyalty.

c. 10% grow of annual sales.

 d. Sustains and maintains the quality of products and services.

e. Determines the marketability, technical feasibility and financial viability of

the proposed project.

Description of Proposed Project

The proposed project is a combination of café and a coffee shop.

The Internet has become a point of conversation and entertainment in

almost all social groups. People are talking about sites they visited, business

people are talking about Internet-based businesses, and kids are talking about

the latest Internet clubs and chat rooms. People like to communicate their

Internet experiences with their friends, colleagues, and family. However, it can be

difficult to do it in front of a computer terminal at the office or in the family study.

A comfortable place to gather and share these experiences is becoming a real

need.

Brew Desk Café will provide:

 A meeting place for business people interested in sharing their Internet-based

business ideas.

 A social hub for students and young people interested in sharing a beverage and

their Internet experiences with friends.

 A place as well for students and young people to gather in sharing a cup of

coffee and their internet based entertainment such movie watching and online

gaming with their friends.

 A place for nearby seniors to gather and learn about the powers of the Internet

and better communication methods.

 Brew Desk Café will provide its customers with full access to the internet,

common computer programs and equipment and movie watching. Some of the

entertainment, internet and computing services available to Brew Desk Café

customers are listed below:

 Customer can access social media applications.

 Access to popular software applications, like Adobe Photoshop and

Microsoft Word.

 Access to online games for entertainment.

 Customer can have a movie marathon of the latest movies both local and

international.

Brew Desk Café will build a client base familiar with its services. The

computers, Internet access, and entertainment wouldn't mean half as much if

taken out of the environment Brew Desk Café will provide. Good coffee, specialty

drinks, bakery goods, and a comfortable environment will provide Brew Desk

Café customers with a home away from home; a place to enjoy the benefits of

computing in a comfortable and well-kept environment.

Type of Business Organization

A partnership is an association of two or more persons to carry on, as co-

owners, a business and to share its profits and losses. The partnership may

come into existence by means of an agreement between two or more persons

desirous of forming a partnership.

In a partnership, two or more people share ownership of a single

business. Like proprietorships, the law does not distinguish between the
business and its owners. The partners should have a legal agreement that

establishes how decisions will be made, how profits will be shared, how disputes

will be resolved, how future partners will be admitted to the partnership, how

partners can be bought out or what steps will be taken to dissolve the partnership

when needed.

Brew Desk Café is a partnership type of business entity because it is

manned seven partners.

Proposed Name of the Project

The proposed project shall be registered under the name “Brew Desk

Café”.

The name Brew Desk Café was formulated because of its feature and

characteristic of the café which is the combination of coffee shop and internet

café.

Location of the Project

Brew Desk Café will be located at The Outlets, Lima Technology Center, Special

Economic Zone, Lipa, Batangas.

Strategically, Brew Desk Café is located at the heart of the city, just a

walking distance to the main places like hospitals, schools, hotels and malls to

accommodate the customers craving for coffee with their choice of lifestyle.
Figure 1. Location Map
 CHAPTER II
MANAGEMENT AND ORGANIZATION FEASIBILITY

Brew Desk Café Organizational Chart

 Management Proposals

a. Café Manager

Job Description: He/she responsible for recruiting and training employees,

assigning tasks, enforcing cleaning and safety standards, conducting meetings,

maintaining inventory and ensuring a high level of customer satisfaction. He/she

is also the one who makes sure that the employees cater good quality product to

every customer and he/she is responsible in the overall operation of the café.

Qualifications:

 Must be a graduate of any four year business course.

 With 1 year management experience.

 Must be able to work overtime, weekends, nights and special events.

 Must have excellent verbal and written English communication skills.

 Proficient on computer; familiar with software programs such as MS word,

MS Excel and Power point.

 Must have effective problem solving/ decision making abilities.

b. Kitchen and Dining Supervisor

Job Description: He/ she oversee the daily operations of café’s kitchen and

dining staff. He/she is also responsible for overseeing food preparation, ordering

supplies, scheduling shifts, prepare and serve food and drinks to customers,

ensuring efficiency and overseeing health and safety regulations and monitoring

inventory levels.

Qualifications:
  Bachelor’s degree in Restaurant Management or certification from culinary

school is required.

 A minimum of 3 years’ experience in a similar role.

 In-depth knowledge of kitchen health and safety regulations.

 Ability to work well in a stressful and fast-paced environment.

 Excellent problem-solving and conflict management abilities.

 Outstanding communication and organizational skills.

c. Accounting and Finance Head

Job Description: She/he will be responsible for daily bookkeeping, accounts

payable and receivables, payroll, assistance with end-of-month close, grant

reporting, audit preparation, and other related duties as assigned. He/she will

work closely with and report to the Café Manager.

Qualifications:

 Degree in finance, accounting, or related field

 A minimum of three years’ experience in non-profit accounting

 Experience in managing public or non-profit funds

 Outstanding client service, communication and organizational skills

 Ability to work collaboratively internally.

d. Engineering Head

Job Description: He/she presides over the entire Frontend and Backend

development teams, reporting directly to the Café Manager. He/she drives the

vision, design, strategy, and implementation of integrated web systems in order

to support the business. She/he leads the development teams and collaborates

with other business departments in sales, marketing, and finance in order to roll

out new web systems and implement the ongoing process improvements of the

current systems. She/he keeps up with new technologies and identifies correct

schema for the sites/software in development. She/he is responsible for feature

deployment, stability of the business’s core platform stability, and the overall

quality of the business’s web architecture.

Qualifications:

 Master’s degree (Ph.D preferred) in Computer Science or any other

relevant field.

 Had at least 3 years of working experience in a senior frontend or backend

development position.

 Preferably working as Senior Frontend Developer or a Lead Backend

Developer.

 He will have had vast experience in software engineering, site/software

development and experience working with numerous software-industry

business models inclusive of subscription, ecommerce, support and

fulfilment.

e. Customer Relations Head

Job Description: She/he responsible for engaging with key customers by

building and preserving trusting relationships. She/he will constantly identify

opportunities to grow the customer base and build positive relationships with new
clients. You should also be strategic and analytical when finding solutions to

problems to ensure maximum client satisfaction. He/she will conduct quality

assurance surveys to determine customer satisfaction and use the findings to

improve on areas of complaint.

Qualifications:

 A bachelor’s degree in Administration or related field.

 A minimum of 3 years’ experience.

 Excellent interpersonal and communication skills.

 Proficient in all Microsoft applications.

 Superior product knowledge.

 A team player with leadership skills.

 Maintain a positive attitude focused on customer satisfaction.

f. Head Cook

Job Description: He/she Design menus that enhance customers’ culinary

experience while keeping up high quality, Submit cost proposals for menu items,

Provide feedback regarding the food quality of large bulk purchases, Ensure that

all food preparation is in accordance with regulatory guidelines, Design

standardized food presentation guidelines for each dish, Monitor inventory levels

of commonly used items, and Look for ways to reduce spoilage of infrequently

used items.

Qualifications:

 3 year(s) experience as a Head Cook.

  Ability to track expenses and manage a budget.

 Ability to lead and inspire a team.

 Strong passion for the art of food design.

 Culinary Degree or equivalent experience.

 Excellent verbal and written communication.

g. Pastry Chef

Job Description: She/he is in charge of the baking aspect of kitchens and

restaurants, delivering cakes, breads, and any bread based components to

meals. He/she cooks to prepare, bake and decorate their food, and must keep

their team organized, stocked and motivated. She/he work with a head cook to

pair breads and desserts, and order supplies. She/he also create recipes or

follow existing ones, using a creative flair to their craft, but all the time

maintaining records, ordering food, and enforcing food safety standards.

Qualifications:

 Proven experience as Pastry Chef, baker or relevant role

 Great attention to detail and creativity

 Organizing and leadership skills

 Willingness to replenish professional knowledge

 In depth knowledge of sanitation principles, food preparation and baking

techniques and nutrition

 Working knowledge of baking with ingredient limitations (pastries that are

gluten free, sugarless etc.)

 Certificate in culinary arts, pastry-making, baking or relevant field.

 h. Barista

Job Description: She/he is passionate about food and beverage preparation

and education. She/he will greet customers, answer their questions, take orders

and accept payments, and prepare and serve food and drinks. She/he will also

maintain a clean and well-stocked workspace and dining area, update displays,

and continuously expand your knowledge of food and beverage quality controls,

preparation methods, and presentation. She/he should be positive, friendly,

knowledgeable, and polite.

Qualifications:

 High School Diploma or equivalent.

 Experience in food and beverage preparation or customer service

preferred.

 Training and willingness to continue learning about food and beverage

preparation.

 Exceptional listening and communication skills.

 Ability to walk, bend, and stand for extended periods.

 Availability to work around peak hours, including nights, early mornings,

weekends, and holidays.

 A polite, engaging personality.

 Commitment to customer satisfaction and service excellence.

 Willingness to work as part of a high-energy, efficient team in a fast-paced

environment.

i. Head Waiter
 Job Description: He/she responsible to provide professional service to our

guests, ensuring their restaurant visit will become a memorable dining

experience whereby your role will include key responsibilities such as: Work in

close cooperation with the Kitchen and Stewarding as well as the Outlet Cashiers

to ensure a smooth running operation, Conduct regular training sessions with the

assigned team in line with the departmental SOP’s, Monitor duty schedules for

the respective team, Ensure the proper appearance and grooming of assigned

employees, Work towards the timely set up of the assigned Food & Beverage

outlet, according to the meal settings and in line with the opening hours, Handle

the welcome of arriving guests and their seating through the hostess and take

over, if she is not available, Maintain a professional and friendly relationship with

the outlet patrons to ensure their well-being, Familiar with the outlets menu,

promotional activities and other relevant issues concerning the outlet, and

Contribute to meet and maximize the monthly revenue budget for the respective

outlet.

Qualifications:

 Diploma / degree in the hospitality field

 Maximum of two years experiences in a similar role.

 Must also have fluency in both written and spoken English

 Wide familiarity with Micros would be desirable.

 Previous experiences in leadership and supervisory roles are a definite

plus.

j. Food Server
 Job Description: She/he will maintain a positive and respectful relationship

with team members, engage with guests in a professional, dignified manner, and

inform management of potential service and product issues before they arise.

She/he will perform opening duties to prepare for service, and closing duties at

the end of your shift. She/he will employ sound judgment to establish whether to

take guests’ food orders swiftly or to allow them time to relax. He/she will be

sincere, hospitable and hard-working.

Qualifications:

 1+ years work experience in upmarket or high volume restaurant.

 Completion of product knowledge training, and written and verbal exams.

 Proficient with maintaining solid customer base.

 Excellent verbal communication skills.

 Outstanding people skills.

 Well-groomed, professional appearance.

 Available to work shifts, extended hours, over weekends and holidays.

 Physically fit, agile and dexterous.

 Ability to stand and walk for extended periods.

 Proficient time-management skills.

k. Book Keeper

Job Description: She/he oversee a café financial data and compliance by

maintaining accurate books on accounts payable and receivable, payroll, and

daily financial entries and reconciliations. He/she perform daily accounting tasks
such as monthly financial reporting, general ledger entries, and record payments

and adjustments.

Qualifications:

 Bachelor’s degree in accounting, finance, or related field

 CPA is a plus

 Previous bookkeeping experience preferred

 Experience in working with multiple legal entities under different legal

umbrellas

 Provides financial information to management by researching and

analyzing accounting data; preparing reports.

l. Accountant

Job Description: He/she manage all financial transactions, from fixed

payments and variable expenses to bank deposits and budgets. She/he

responsibilities include auditing financial documents and procedures, reconciling

bank statements and calculating tax payments and returns. She/he will provide

us with accurate quantitative information on financial position, liquidity and cash

flows of our café.

Qualifications:

 Work experience as an Accountant

 Excellent knowledge of accounting regulations and procedures, including

the Generally Accepted Accounting Principles (GAAP)

 Hands-on experience with accounting software like Fresh Books and

QuickBooks
  Advanced MS Excel skills including Vlook ups and pivot tables

 Experience with general ledger functions

 Strong attention to detail and good analytical skills

 BSc in Accounting, Finance or relevant degree

m. Technician 1 (Computer Technician)

Job Description: she/he manage, monitor, and repair our computer systems,

and also ensure that systems are configured correctly and are running efficiently.

she/he will installing software patches, diagnosing and repairing problems,

monitoring networks, repairing server errors, resolving hard disk failures,

configuring software and drivers, performing regular system upgrades, promoting

data security, managing workstations, and writing memos on computer best

practices.

Qualifications:

 Degree in Computer Science, Information Science or equivalent.

 Problem-solving skills.

 Active listening skills.

 Knowledge of data storage and data recovery.

 Service-oriented.

 Exceptional technical expertise.

 Superior working knowledge of computer systems.

 Time and task management.

 Good communication skills.

 Extensive knowledge of computer software.

 n. Technician 2 (General Maintenance Technician)

Job Description: she/he is responsible for conducting general maintenance

and repairs on facility equipment and property structures. She/he ensure that

heating and plumbing systems perform at optimum functionality, the installations

HVAC and, the upkeep of the landscape. She/he maintains the facilities and

common areas in the best possible condition.

Qualifications:

 Basic understanding of electrical, hydraulic and other systems

 Demonstrated experience as a maintenance technician

 Physically capable of lifting 50 pounds

 Strong understanding of general maintenance processes and methods

 Experienced in operating a variety of equipment, including snow blowers,

lawn mowers, and small hand tools

 Working knowledge of tools, common appliances, and devices

 Outstanding written and verbal communication skills

 EPA technician certification required

 Excellent manual dexterity and problem-solving skills

o. Customer Service Associate

Job Description: He/she manages customer concerns with the objective of

maintaining positive customer relationships with an organization. He/she interact

directly with customers to listen to concerns, resolve problems, and recommend

products and services according to the needs of each individual. He/she will
anticipate customer questions and familiarize themselves with products and

services to offer the best recommendations.

Qualifications:

 2+ years of previous customer service experience a plus

 Friendly and welcoming manner with clients and other members of the

customer service team

 Extensive knowledge of the company's policies, procedures, goods and

services

 Ability to explain complex concepts in a clear, simple manner to customers

 Strong command of written and verbal English

 Excellent organizational and multitasking skills

 Ability to maintain a calm and polite manner in stressful situations

 Willingness to cooperate with customers and management to resolve any

issues that may arise

 CHAPTER III
MARKETING FEASIBILITY
MARKET DESCRIPTION

Brew Desk Café is faced with the exciting opportunity of being the first-

mover in the local cyber entertainment -cafe market. The consistent popularity of

coffee, combined with the growing interest in the internet, gaming and movies

has been proven to be a winning concept in other markets and will produce the

same results here.

All three target markets for the Brew Desk Café service are growing at a

relatively fast pace. We're faced with a large number of potential customers, and

we're offering a needed service.

Brew Desk Café customers can be divided into two groups. The first group

is familiar with the Internet and desires a progressive and inviting atmosphere

where they can get out of their offices or homes to enjoy a great cup of coffee,

internet access and entertainment. This group is made up of students from the

University nearby and business people from nearby city offices and professional

centers.

The second group is not as familiar with the Internet. This group is made

up of seniors. Seniors represent a growing segment of Internet users. They use

the Internet to communicate with friends and family and they will be regular users

of the Brew Desk Café service.

Demographic Breakdown of Target Market:

 Urban dwellers
  Ages:18-65

 Gender: Men & Women

 Income: Depends on life-stage, but relatively high

 Occupation: Depends on life-stage, ranges from college students, faculty

members, as well as persons in managerial, executive, professional

positions and retirees.

 Values: People who care about their employees, global issues, and the

environment for example. They also care a great deal about having a high

standard for customer service.

 VALS Results: Innovators, Achievers, Experiencers, and Thinkers

 Technology: Our target market consists of many internet users and

technical savvy. These people are ones that love to get newest technology

as soon as it is available. Thus, Brew Desk Café promoting itself on social

media networking sites.

DEMAND AND SUPPLY ANALYSIS

Target Market Growth:

University students continue to grow at a steady pace, at nearly 19.73%

Office workers in the city and nearby professional buildings continue to add

value, growing at 17.29%

Seniors/retirees are becoming an important part of the city business, growing

at almost 5.68%

Teens continue to play a major role in city foot-traffic, growing at 20.37%

 Target Market Growth

University Office Workers

Students 17.29%
19.73%

Seniors Teens
6.68% 20.37%

Percentage of the market growth is based on the total population of

760,307

Target Market Current Distribution:

University students continue to grow at a steady pace, at nearly 40%

Office workers in the city and nearby professional buildings continue to add

value, growing at 27%

Seniors are becoming an important part of the city business, growing at

almost 13%

Teens continue to play a major role in city foot-traffic, growing at 20%

Target Market Current

Distribution

Teens
20% University
Seniors Students
13% 40%

Office Workers
27%

Percentage of the market current distribution is based on the total population who rampantly go
to coffee shops.
 MARKET NEEDS

The rapid growth of the internet, online services, gaming and

entertainment such as movie watching that has been witnessed worldwide is only

the beginning of a long-lived trend towards an economy built on the infrastructure

of the internet, gaming and entertainment. The potential growth of the internet is

enormous, to the point where one day, a computer terminal with an online

connection will be as common and necessary as a telephone or toilet. This may

be 5 or 10 years down the road, but for the next five years, the online service

provider market is sure to experience tremendous growth. Establishing itself as

the first cyber entertainment -cafe in the area, Brew Desk Café will enjoy the first-

mover advantages of name recognition and customer loyalty. Initially, Brew Desk

Café will hold a 100 percent share of the cyber entertainment -cafe market

locally. In the next five years, competitors will enter the market. Brew Desk Café

has set a goal to consistently maintain a market share of greater than fifty

percent.

MARKET TRENDS

The Internet has become a point of conversation and entertainment in

almost all social groups. People are talking about sites they visited, business

people are talking about Internet-based businesses, and kids are talking about

the latest Internet clubs and chat rooms. People like to communicate their

Internet experiences with their friends, colleagues, and family. However, it can be

difficult to do it in front of a computer terminal at the office or in the family study.

A comfortable place to gather and share these experiences is becoming a real

need.

Brew Desk Café will provide:

 A meeting place for business people interested in sharing their Internet-

based business ideas.

 A social hub for students and young people interested in sharing a

beverage and their Internet experiences with friends.

 A place as well for students and young people to gather in sharing a cup

of coffee and their internet based entertainment such movie watching and

online gaming with their friends.

 A place for nearby seniors to gather and learn about the powers of the

Internet and better communication methods.

MARKET GROWTH

The cyber entertainment -cafe hasn't come to this area yet, but similar

services are growing rapidly on a global scale. Business people use the Internet

services to catch up on email and communications with their family, and tourists

do the same. Our area supports a population that has many of the same needs

and interests of this larger group.

The student population continues to grow as the University grows in

popularity with high-school graduates from out of city. These tend to have money

and an interest in up-scale social centers. Business in the city area is on the rise.

Brew Desk Café will target these groups with social media.
 The Brew Desk Café target market growth we as follows: University

students continue to grow at a steady pace, at nearly 19.73%, Office workers in

the city and nearby professional buildings continue to add value, growing at

17.29% annually, Seniors are becoming an important part of the city business,

growing at almost 5.68% and the Teens continue to play a major role in city foot-

traffic, growing at 20.37%.

THREATS & COMPETITION

There are coffee shops found in Lipa City. All of these coffee shops are

direct competitors because they produce and sell to the same target market as

Brew Desk Café.

Beanleaf

The Outlets

The Coffee Bean & Tea Leaf - Lipa

Cafe de Lipa

SWOT ANALYSIS

The SWOT analysis provides us with an opportunity to examine the

internal strengths and weaknesses Brew Desk Café must address. It also allows

us to examine the opportunities presented to Brew Desk Café as well as potential

threats.

Brew Desk Café has a valuable inventory of strengths that will help it

succeed. These strengths include: a knowledgeable and friendly staff, state-of-

the-art computer hardware, and a clear vision of the market need. Strengths are

valuable, but it is also important to realize the weaknesses Brew Desk Café
must address. These weaknesses include: a dependence on quickly changing

technology, and the cost factor associated with keeping state-of-the art computer

hardware.

Brew Desk Café strengths will help it capitalize on emerging opportunities.

These opportunities include, but are not limited to, a growing population of daily

Internet users, and the growing social bonds fostered by the Internet based

entertainment. Threats that Brew Desk Café should be aware of include, the

rapidly falling cost of Internet access, and emerging local competitors.

STRENGTHS

a. Knowledgeable and friendly staff. We've gone to great lengths at Brew

Desk Café to find people with a passion for teaching and sharing their

Internet based entertainment experiences. Our staffs are both

knowledgeable and eager to please.

b. State-of-the art equipment. Part of the Brew Desk Café experience

includes access to state-of-the-art computer equipment. Our customers

enjoy beautiful flat-screen displays, fast machines, and high-quality

printers.

c. Up-scale ambiance. When you walk into Brew Desk Café, you'll feel the

technology. High backed mahogany booths with flat-screen monitors inset

into the walls provide a cozy hideaway for meetings and small friendly

gatherings. Large round tables with displays viewable from above provide

a forum for larger gatherings and friendly "how-to" classes on the Internet.

Aluminum track lighting and art from local artists sets the mood. Last, but
 not least, quality cappuccino machines and a glass pastry display case

provide enticing refreshments.

d. Clear vision of the market need. Brew Desk Café knows what it takes to

build an upscale cyber entertainment cafe. We know the customers, we

know the technology, and we know how to build the service that will bring

the two together.

WEAKNESSES

a. A dependence on quickly changing technology. Brew Desk Café is a

place for people to experience the technology of the Internet. The

technology that is the Internet changes rapidly. Product lifecycles are

measured in weeks, not months. Brew Desk Café needs to keep up with

the technology because a lot of the Brew Desk Café experience is

technology.

b. Cost factor associated with keeping state-of-the-art

hardware. Keeping up with the technology of the Internet is an expensive

undertaking. Brew Desk Café needs to balance technology needs with the

other needs of the business. One aspect of the business can't be

sacrificed for the other.

OPPORTUNITIES

a. Growing population of daily Internet users. The importance of the

Internet almost equals that of the telephone. As the population of daily

Internet users increases, so will the need for the services Brew Desk Café

offers.
 b. Social bonds fostered by the new Internet communities. The Internet

is bringing people from across the world together unlike any other

communication medium. Brew Desk Café will capitalize on this social

trend by providing a place for smaller and local Internet communities to

meet in person. Brew Desk Café will grow some of these communities on

its own by establishing chat areas and community programs. These

programs will be designed to build customer loyalty.

THREATS

a. Rapidly falling cost of Internet access. The cost of access to the

Internet for home users is dropping rapidly. Internet access may become

so cheap and affordable that nobody will be willing to pay for access to it.

Brew Desk Café is aware of this threat and will closely monitor pricing.

b. Emerging local competitors. Currently, Brew Desk Café is enjoying a

first-mover advantage in the local cyber entertainment-cafe market.

However, additional competitors are on the horizon, and we need to be

prepared for their entry into the market. Many of our programs will be

designed to build customer loyalty, and it is our hope that our quality

service and up-scale ambiance won't be easily duplicated.

SERVICE OFFERING

Brew Desk Café will provide its customers with full access to the internet,

common computer programs and equipment and movie watching. Some of the

entertainment, internet and computing services available to Brew Desk Café

customers are listed below:

  Customer can access social media applications.

 Access to popular software applications, like Adobe Photoshop and

Microsoft Word.

 Access to online games for entertainment.

 Customer can have a movie marathon of the latest movies both local and

international.

Brew Desk Café will build a client base familiar with its services. The

computers, Internet access, and entertainment wouldn't mean half as much if

taken out of the environment Brew Desk Café will provide. Good coffee, specialty

drinks, bakery goods, and a comfortable environment will provide Brew Desk

Café customers with a home away from home; a place to enjoy the benefits of

computing in a comfortable and well-kept environment.

KEYS TO SUCCESS

The keys to the success for Brew Desk Café are:

The creation of a unique, innovative, upscale atmosphere that will

differentiate Brew Desk Café from other local coffee shops and future

Internet cafes.

The establishment of Brew Desk Café as a community hub for

socialization and entertainment.

The creation of an environment that won't intimidate the novice user. Brew

Desk Café will position itself as an educational resource for individuals

wishing to learn about the benefits the Internet has to offer.

Great coffee and bakery items.

 CRITICAL ISSUES

The risks involved for Brew Desk Café are:

 Will there be a continuing demand for the services offered by Brew Desk

Café?

 Will the popularity of the Internet continue to grow, or is the Internet a fad?

 Will individuals be willing to pay for the services Brew Desk Café offers?

 Will the cost of accessing the Internet from home drop so significantly that

there will not be a market for Internet Cafes such as Brew Desk Café?

EXTERNAL ENVIRONMENT

a. Technological Environment
Smart phones, interactive TV, social networking, and other new forms

of media are changing the way people connect. Technology is changing and

innovating faster than ever before. Laptops are getting lighter, smaller, faster,

and come more storage. Screen resolution is increasing and people demand to

see visually pleasing web site.

b. Social/Cultural Environment
People get sick of the traditional ways other coffee shops advertise.

They don’t like the clutter in advertising and this is huge for Brew Desk Café

customer. Social networking has taken over and controls the way people connect

with each other and businesses.

 c. Political/Legal Environment
In Philippines, Democratic ideas are in power. This means that the

democratic government wants to limit monopolies and domination of industries.

This is something that needs to be followed. The social responsibility activities

Brew Desk Café participates in counter much of this and put the coffee shop in

good standing.

d. Economic Environment
The economy has been relatively resilient in the first quarter of 2017.

Predictions of near future are looking good, slowly giving more confidence to

consumers, economic spending.

MACRO ENVIRONMENT

The retail coffee industry in this area experienced rapid growth at the

beginning of the decade and is now moving into the mature stage of its life cycle.

Many factors contribute to the large demand for good coffee: The student

population at the University is a main source of demand for coffee retailers; the

cold and damp climate is extremely conducive to coffee consumption.

The popularity of the Internet is growing exponentially. Those who are

familiar with the information superhighway are well aware of how fun and

addicting surfing the Internet can be. Those who have not yet experienced the

Internet need a convenient, relaxed atmosphere where they can feel comfortable

learning about and utilizing the current technologies. Brew Desk Café seeks to

provide its customers with affordable Internet and entertainment access in an

innovative and supportive environment.

 MARKETING STRATEGY

Brew Desk Café has three main strategies.

The first strategy focuses on attracting novice Internet users and

entertainment seekers. By providing a novice-friendly environment, Brew Desk

Café hopes to educate and train a loyal customer base.

The second and most important strategy focuses on pulling in power

Internet users and provides entertainment activities for relaxation. Entertainment

seekers and power internet users are extremely familiar with the Internet and its

offerings. This group of customers serves an important function at Brew Desk

Café. Power users have knowledge and web-browsing experience that novice

Internet users find attractive and exciting.

The third strategy focuses on building a social environment for Brew Desk

Café customers. A social environment that provides entertainment will serve to

attract customers that wouldn't normally think about using the Internet. Once on

location at Brew Desk Café, these customers that came for the more standard

entertainment offerings will realize the potential entertainment value the internet

can provide.

MISSION

Brew Desk Café provides communities with the ability to access the

Internet and entertainment for relaxation, enjoy a cup of coffee, and share

Internet experiences in a comfortable environment.

Brew Desk Café marketing will consistently build on this mission.

Everything we do, from the pricing structure for our services to the ambiance we
create, must be done with this mission in mind. We cater to: city business people,

traveling business people, university students, and seniors. Our ambiance and

our services are designed for this clientele and our marketing efforts are focused

on capturing this market.

MARKETING OBJECTIVES

Brew Desk Café marketing objectives for the first three years of operation

include:

Diversify the service offering to insulate the business against fluctuations

in any one component of the revenue stream.

Maintain a staff of enthusiastic employees excited to share their Internet

knowledge with Brew Desk Café customers.

Build the Brew Desk Café brand to the point where it becomes a

household word in the area.

TARGET MARKETING
Brew Desk Café intends to cater both to people who want a guided tour of

the internet and to experienced users eager to indulge their passion for

computers in a social setting as well as those who are entertainment seekers for

relaxation. Furthermore, Brew Desk Café will be a magnet for local and traveling

professionals who desire to work or check their email messages in a friendly

atmosphere. These professionals will either use Brew Desk Café PCs, or plug

their own notebook computers into Internet connections. Brew Desk Café target

market covers a wide range of ages: from members of "Generation X," who grew

up surrounded by computers, to seniors from local retirement centers.

Our primary target markets include:

 Students. The large student population will become an important part of

the Brew Desk Café customer base. The student population continues to

grow with the success of the University. Evening entertainment, access to

the Internet, and the up-scale ambiance will attract this demographic.

 Business people. The city business community is growing rapidly with

the addition of a new Compu-tech building and a flurry of new professional

centers. Brew Desk Café will provide a perfect setting for business

meetings. It will also give traveling business people an opportunity to plug

their laptops into the Brew Desk Café network to check email

communications.

 Seniors/Retirees. Represent a growing population of Internet users. The

Brew Desk Café staff will hold brief classes in the off hours to educate

seniors on how to use the Internet to communicate with friends and family.

This will build a regular base of customers that wouldn't typically use the

services offered by Brew Desk Café.

POSITIONING

Brew Desk Café will position itself as an upscale coffee house, Internet

service and entertainment provider. Business people of all types will use Brew

Desk Café as a place to hold meetings and catch-up on email communications.

Students from nearby city housing centers will use Brew Desk Café as a place to

socialize and discuss the latest Internet sites, go on gaming and movie watching.

Seniors will experience the Internet for the first time at Brew Desk Café.
 Programs designed to teach newcomers about the power of the Internet will help

build customer loyalty and spread the word about the services Brew Desk Café

offers.

STRATEGY PYRAMIDS

The following are the three key strategies Brew Desk Café will focus on:

Brew Desk Café first strategy focuses on attracting novice Internet users.

Brew Desk Café plans on attracting these customers by:

 Providing a novice-friendly environment. Brew Desk Café will be staffed by

knowledgeable employees focused on serving the customer's needs.

 A Customer Service desk will always be staffed. If a customer has any type of

question or concern, a Brew Desk Café employee will always be available to

assist.

Brew Desk Café second strategy will be focused on attracting

entertainment seekers and power Internet users who will provide an important

function at Brew Desk Café. Brew Desk Café plans on attracting this type of

customer by:

 Providing the latest in computing technology.

 Providing scanning and printing services.

 Providing access to powerful software applications.

The third strategy focuses on building a social environment for Brew Desk

Café customers. A social environment that provides entertainment will serve to

attract customers that wouldn't normally think about using the Internet. Once on

location at Brew Desk Café, these customers that came for the more standard
entertainment offerings will realize the potential entertainment value that Brew

Desk Café can provide.

MARKETING MIX

Brew Desk Café marketing efforts will focus on building a loyal base of

customers that will use the services provided on an almost daily basis.

Services and Service Marketing

As the popularity of the Internet and entertainment seekers continues to

grow at an exponential rate, easy and affordable access to the information

superhighway is quickly becoming a necessity of life. Brew Desk Café provides

the local community with the ability to access the Internet, go on gaming, catch

on latest local and international movies, enjoy a cup of coffee, and share

entertainment experiences in a comfortable environment. People of all ages and

backgrounds will come to enjoy the unique, upscale, educational, and innovative

environment that Brew Desk Café provides.

Pricing

Brew Desk Café adopted cost plus pricing strategy to price its products

and services to have a solid pricing strategy.

Determining a fair market, hourly price for online use is more difficult

because there is no direct competition from another cyber-cafe in our area. Brew

Desk Café will adopt the product-bundle pricing.

Promotion
 The Brew Desk Café plan used combination of media advertising and

direct marketing tools to communicate with current and prospective target

market.

The propose promotion goal will be one differentiation and promotion

activities will help reinforce the Brew Desk Café positioning status.

A Few Specific Marketing Efforts:

 Local TV spots

 Local Radio Spots

 Online Advertising

 Brew Desk Café Events

Service

This topic is a critical reminder of the fact that Brew Desk Café is a service

business. The success of our business depends upon the quality of the service

we offer and delivering that service consistently. Brew Desk Café is dedicated to

delivering this quality service.

Dedicated to Quality Service Programs:

We've gone to great lengths at Brew Desk Café to find people with a

passion. Our staffs are both knowledgeable and eager to please. An

excess of staff members will consistently be on hand to provide service to

Brew Desk Café customers. Performance will be frequently evaluated both

internally and through customer surveys.

 A highly valued member of the Brew Desk Café staff will be the "Customer

Happiness Representative." This individual will be available forty hours a

week to monitor the level of happiness amongst Brew Desk Café

customers. This individual will be responsible for: developing customer

satisfaction programs, monitoring happiness levels, responding to

customer concerns, and the general well-being of every Brew Desk Café

customer.

CONTROLS

The goal of this marketing plan is to outline the strategies, tactics, and

programs that will make the sales goals outlined in the Brew Desk Café business

plan a reality in the year 2018. We have these marketing obstacles to face:

The creation of a unique, innovative, upscale atmosphere that will

differentiate Brew Desk Café from other local coffee shops and future

Internet cafes.

The establishment of Brew Desk Café as a community hub for

socialization and entertainment.

CONTINGENCY PLANNING

This marketing plan is just that, a plan. Plans don't always work out and

we have to be ready to deal with the likelihood that Brew Desk Café won't make

good on the projections outlined in this plan. We also have to prepare ourselves

for overwhelming success.

The following are some possible scenarios:

 1. Revenues miss projections - We have to be prepared for this possibility.

If we miss our projections, we simply have to re-double our marketing efforts.

The danger in this scenario is that the first reaction to missed projections is to

decrease spending, particularly marketing expenses. We can't do that! We have

to get our message out to the target market, and we can't do that if we stop

spending on marketing. Additional capital infusions may become necessary and

that possibility is detailed in the business plan.

2. Internet side of business plays a lesser role - Our customers might not

be willing to pay for Internet access or Brew Desk Café memberships as Internet

access costs and hardware costs continue to fall. If this scenario materializes, we

will need to move our focus to beverages and pastry items, perhaps even

providing deli-style lunches. Internet services in the scenario would still play an

important role in attracting customers; we'd just have to charge less and move

our numbers around to accommodate this trend.

IMPLEMENTATION

Our marketing efforts will be focused on building the image outlined

above. We have milestones to meet for the business. It will be critical to use this

marketing plan as living/working documents. We can't allow them to sit in a file. It

must be used as a map for the future success of Brew Desk Café.

Advertising Milestones 2022

Radio
Advertisement
TV
Advertisement
 Online/Website
Advertisement
Direct Marketing
Customer Survey
Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec

Advertising Start Date End Date Budget

TV Ad Creative 05/01/2022 08/30/2022 35,600.00

Radio Spot 1 Creative 02/01/2022 02/28/2022

04/01/2022 04/30/2022 30,000.00
06/01/2022 06/30/2022
Radio Spot 2 Creative 08/01/2022 08/31/2022
10/01/2022 10/31/2022 30,000.00
12/01/2022 12/31/2022
Online Ad Creative 01/01/2022 12/31/2022 25,000.00

Other 3,300.00
Total Advertising Budget
123,900.00

Direct Marketing Start Date End Date Budget

Brew Desk Café 01/01/2022 01/01/2022
Event 1 Creative 02/10/2022 02/14/2022
27,000.00
03/01/2022 03/14/2022
05/01/2022 05/14/2022
Brew Desk Café 07/01/2022 07/14/2022
Event 2 Creative 09/01/2022 09/14/2022 35,000.00
11/01/2022 11/14/2022
12/01/2022 12/31/2022
Other 10,000.00

Total Direct Marketing

Budget 72,000.00
 Other Start Date End Date Budget

Customer Survey 01/01/2022 01/31/2022

06/01/2022 06/30/2022 20,000.00
12/01/2022 12/31/2022
Other 10,900.00

Total Other Budget 30,900.00

Totals 226,800.00

Brew Desk Café Sales and Cost of Sales Projection (External)

2022 2023 2024 2025 2026

 BREAK EVEN ANALYSIS

The chart below shows the 5-year break-even analysis of Brew Desk

Café. The break-even analysis shows the level of sales in the 5 years which

there will be no profit and no loss. The break-even in sales has an average

increase of 35% due to the increase in variable and fixed costs.

2022 2023 2024 2025 2026

0.52 0.54 0.54 0.56 0.56
Contribution Margin
Ratio

3,868,156.42 4,087,100.81 4,407,543.06 4,715,711.68

Break Even in Sales 3,494,204.12

2,104,670.03 2,220,295.93 2,473,385.09 2,642,891.44

Variable Costs 1,803,405.53

2,104,670.03 2,220,295.93 2,473,385.09 2,642,891.44

Fixed Cost 1,803,405.53

Net Income - - - - -
 CHAPTER IV
PRODUCTION/TECHNICAL FEASIBILITY

DESCRIPTION OF THE P ROPOSED PRODUCTS/SER VICE

Brew Desk Café will provide its customers with full access to the internet,

common computer programs and equipment and movie watching. Some of the

entertainment, internet and computing services available to Brew Desk Café

customers are listed below:

 Customer can access social media applications.

 Access to popular software applications, like Adobe Photoshop and

Microsoft Word.

 Access to online games for entertainment.

 Customer can have a movie marathon of the latest movies both local and

international.

Brew Desk Café will build a client base familiar with its services. The

computers, Internet access, and entertainment wouldn't mean half as much if

taken out of the environment Brew Desk Café will provide. Good coffee, specialty

drinks, bakery goods, and a comfortable environment will provide Brew Desk

Café customers with a home away from home; a place to enjoy the benefits of

computing in a comfortable and well-kept environment.

Brew Desk Café offers and serve hot and cold beverages, baked pastries

and cookies and other sweets.

Product Description
 Brew Espresso It is brewed by forcing a small amount

nearly boiling water under pressure

through finely ground coffee beans. It is

topped with cream.

Brew Desk Latte It is an espresso with steamed milk.

Café de Brew It is an espresso made gentler and into a

longer drink by adding hot water.

MochaLava Desk It is an espresso with milk froth, chocolate

syrup, and various toppings.

Brewcafecinno An espresso based drink with equal parts

steamed milk and foamed milk.

Cookies and Cream It is a variety of ice cream and milkshake

based on flavoring from chocolate

cookies.

Salted Caramel It is mocha sauce and toffee nut syrup

combined with coffee and milk then

topped with sweetened whipped cream,

caramel drizzle and a blend of sugar and

sea salt.

Vanilla It is a roast coffee and vanilla bean

powder, combine them with milk and ice,

and top it with whipped cream.

Chocolate mocha It’s made up of roast coffee, chocolate

 mocha sauce, milk and whipped cream,

sprinkled with cocoa powder on top.

Chocolate Coconut Frappe It is made up of cold coffee, milk and

chocolate syrup, whipped cream and

dried coconut.

Chocolate Mousse Cake Dessert mousses are typically made up of

whipped cream, flavored with chocolate,

coffee and caramel. Sweetened mousse

is served as a dessert, or used as an airy

cake filling.

Sansrival It is a Filipino dessert cake made of layers

of butter cream, meringue and chopped

cashews.

Cookies It’s a type of biscuit traditionally made of 1

part of sugar, 2 parts of butter and 3 parts

of flour.

Tuna Sandwich It is made up of canned tuna, mixed with

mayonnaise and other ingredients such

as chopped celery, pickles, hardboiled

egg, onion and cucumber.

Toasted Ham & Cheese Sandwich It consist of toasted bread, ham, cheese,

and dressing.

Camote Fries In a large bowl toss sweet potatoes with

 just enough oil to coat. Sprinkle with

house seasoning and paprika. Spread

Sweet potatoes in single layer on

prepared baking sheet, being sure not to

over crowd.

Potato Fries Cut and Deep fried potatoes, serve hot

and eaten as part of lunch, dinner, or

snack

Calamares Calamares is dish of breaded or flour-

coated squid rings, which was derived

from a Spanish dish. Its taste resembles

with squid tempura.

Baked Mac This dish consists of macaroni pasta mix

together with meat sauce then topped

with creamy white cheese and baked until

topped cheese starts to light brown.

Creamy Garlic Penne Pasta It is easy to cook and it is delicious.

Perfect for garlic and pasta lovers.

PRODUCTION PROCESS

In the counter area where

customer takes orders

(In the kitchen/bar area)

Raw materials will now be used
for process. Barista will grind
coffee beans then, brew the
coffee as the customer’s order.

(In the dining area)

Customer is enjoying his/her
order.
 PRODUCTION PROCESS

Start

Customer informs
the personnel to
rent a computer

Personnel records
Yes
costumers’ time Open hour?
start

No
Costumer informs Payment
personnel that he is
to end rental period
Personnel records
costumers’ rental start
and expiration period
Payment

Costumers’ rental
period is about to
expire

Personnel ask if
costumer will extend
rental period

Yes
Extend?

No
End
 MATERIALS HANDLING D ESIGN

 Provide refrigerators which provide access from all sides.

 Provide storage space in the bar and conference area with slide out

shelves if design permits.

 Provides adequate space around machines to be used for removal either

by staff or outside vendor.

 Provide space for electronic for plugging in of equipment.

 Provide adequate space adjacent to coffee powders, teas, dispensers for

equipment maintenance, loading/unloading products, including space for a

step tool or safety ladder.

 Specify adjustable or variable height and depth counters to accommodate

varying sizes and designs of dispensing machines so they can be

accessed easily during loading and cleaning.

 Installation of electrical, plumbing, and drainage system must

accommodate placement of ice machines.

 Locate ice machines close where is used most frequently.

 Provide adequate aisle and door clearance in bakery to accommodate the

movement of automatic bowl filters.

TECHNOLOGY ASSISTANCE

Brew Desk Café suppliers of equipment will be responsible for the test run

of all equipment and machineries assisted by the engineering department, thus,

they will inform the technicians as to the installation, operation and

troubleshooting. Brew Desk Café will ensure that all of its machines and

equipment’s are operational so that it will deliver its purpose to the customer. If

there will be problems on the equipment’s the engineering will take charge for its

repair.

PROJECT SITE AND LAYOUT

BUILDING AND FACILIT IES

Brew Desk Café will rent a lot at The Outlets, Lima Technology Center, Special

Economic Zone, Lipa, Batangas. These includes the processing/kitchen, the

display, movie room, gaming room, conference room, the cashiers area and the

waiting or service area of the business.

FLOOR PLAN (FIRST FLOOR)
FLOOR PLAN (SECOND FLOOR)
 MACHINIRIES AND EQUIPM ENTS

Table 1. T otal Cost of Machiniries and Equipments

Qty. Description Unit Cost Total Cost
1 Unit Espresso Machine 58,599.00 58,599.00
1 Unit Espresso Grinder 13,250.00 13,250.00
2 Units Blender 2,400.00 4,800.00
2 Units W hipper 1,241.00 2,482.00
1 Unit Ice Crusher 2,115.05 2,115.05
1 Unit Filtration System 5,999.00 5,999.00
1 Unit Microwave Oven 3,850.00 3,850.00
1 Unit Electric Grills 2,200.00 2,200.00
1 Unit Burner 2,399.00 2,399.00
1 Unit Milk Frother 1,390.00 1,390.00
1 Unit POS Machine 16,250.00 16,250.00
1 Unit Laptop 15,000.00 15,000.00
1 Unit Pastry Glass Display 30,000.00 30,000.00
1 Unit Counterfeit Money 450.00 450.00
Detector
1 Unit Speakers 2,600.00 2,600.00
1 Unit T elephone 1,500.00 1,500.00
1 Unit Refregerator 15,000.00 15,000.00
TOTAL 174,243.00 177,884.00

UTILITIES

Table 2. Projected cost of Utilities for 5 years.

Item Cost Year 1 Year 2 Year 3 Year 4 Year 5
per
Month
Electricity 5,500 66,000 67,980 70,019.4 72,119.9 74,283.5
0 8 8
Water Bill 2,000 24,000 24,720 25,461.6 26,225.4 27,012.2
0 5 1
Telephone/Inter 1,999 23,988 24,707.6 25,448.8 26,212.3 26,998.7
net 4 7 3 0
TOTAL 9,499.0 113,988. 117,407. 120,929. 124,557. 128,294.
0 00 64 87 76 50

RAW MATERIALS REQUIR EMENTS

Table 3. Projected Cost of Raw Materials puchases monthly.

Qty Description Cost per day Cost per Month
2 Kg Coffee Beans 800.00 24,000.00
1 Kg Chocolate 250.00 7,500.00
 1 Kg Vanilla 264.00 7,920.00
1 Kg Caramel 278.75 8,362.50
1 Kg Mocha 283.50 8,505.00
6 Litre Fresh Milk 501.00 15,030.00
2 Litre Chocolate Syrup 600.00 18,000.00
1 Kg Elbow Macaroni 90.00 2,700.00
1 pack Cookies 30g x 10 packs 61.00 1,830.00
7 Pcs Chocolate Bars 40g 327.25 9,817.50
150 Pcs Sugar 70.00 2,100.00
150 Pcs Creamer 100.00 3,000.00
1 Pack Cheese 950 grams 237.00 7,110.00
2 Packs Wheat Bread 600 grams 180.00 5,400.00
800 gms Ham 99.50 2,985.00
6 pcs Egg 36.00 1,080.00
3 cans Tuna 180 gms 108.00 3,240.00
1 Kg Potatoes 83.00 2,490.00
1 Kg Sweet Potato 50.00 1,500.00
1 Kg Squid 150.00 4,500.00
TOTAL 4,569.00 137,070.00

Table 4. Projected cost of raw materials purchase for 5 years.

Description Cost per Year 1 Year 2 Year 3 Year 4 Year 5
Month
Coffee Beans 24,000.00 288,000.00 290,880.00 293,788.80 296,726.69 299,693.95
Chocolate 7,500.00 90,000.00 90,900.00 91,809. 00 92,727.09 93,654.36
Vanilla 7,920.00 95,040.00 95,990.40 96,950.30 97,919.81 98,899.01
Caramel 8,362.50 100,350.00 101,353.50 102,367.04 103,390.71 104,424.61
Mocha 8,505.00 102,060.00 103,080.60 104,111.41 105,152.52 106,204.05
Fresh Milk 15,030.00 180,360.00 182,163.60 183,985.24 185,825.09 187,683.34
Chocolate Syrup 18,000.00 216,000.00 218,160.00 220,341.60 222,545.02 224,770.47
Elbow Macaroni 2,700.00 81,000.00 81,810.00 82,628.10 83,454.38 84,288.66
Cookies 30g x10 1,830.00 21,960.00 22,179.60 22,401.40 22,625.41 122,593.56
packs
Chocolate Bars 40g 9,817.50 117,810.00 118,988.10 120,177.98 121,379.76 26,223.22
Sugar 2,100.00 25,200.00 25,452.00 25,706.52 25,963.59 37,461.74
Creamer 3,000.00 36,000.00 36,360.00 36,723.60 37,090.84 88,784.33
Cheese 950g 7,110.00 85,320.00 86,173.20 87,034.93 87,905.28 67,431.14
Wheat Bread 600g 5,400.00 64,800.00 65,448.00 66,102.48 66,763.50 37,274.44
Ham 2,985.00 12,960.00 36,178.20 36,539.98 36,905.38 13,486.23
Egg 1,080.00 38,880.00 13,089.60 13,220.50 13,352.70 40,458.68
Tuna 180 g 3,240.00 29,880.00 39,268.80 39,661.49 40,058.10 31, 093.25
Potatoes 2,490.00 18,000.00 30,178.80 30,480.59 30,785.39 18,730.87
Sweet Potato 1,500.00 54,000.00 18,180.00 18, 361.80 18,545.42 56,192.62
Squid 4,500.00 12,960.00 54,540.00 55,085.40 55,636.25 56,192.62
TOTAL 137,070.00 1,693,440.00 1,710,375.40 1,727,47814 1,744,752.93 1,762,200.45

Table 5. Projected cost of suppliesand materials monthly.

Qty. Description Cost per day Cost per month
100 pcs Hot Cups w/lid 389.17 10,118.50
100 pcs Plastic cold cups w/lid 348.83 9,069.50
100 pcs Staws 150.00 3,900.00
100 pcs Stir sticks 35.00 910.00
1 pack Table Napkins 80.00 2,080.00
TOTAL 1,003.00 26,078.00

Table 6. Projected cost of suppliesand materials purchases for 5 years.

Descriptio Cost per Year 1 Year 2 Year 3 Year 4 Year 5
n Month
Hot Cups 10,118.5 121,422.0 122,636.2 123,862.5 125,101.2 126,352.2
w/lid 0 0 2 8 1 2
Plastic 108,834.0 109,922.3 111,021.5 112,131.7 113,253.1
cold cups 9,069.50 0 4 6 8 0
w/lid
Staws 3,900.00 46,800.00 47,268.00 47,740.68 48,218.09 48,700.27
Stir 910.00 10,920.00 11,029.20 11,139.49 11,250.89 11,363.40
sticks
Table 2,080.00 24,960.00 25,209.60 25,461.70 25,716.31 25,973.48
Napkins
TOTAL 26,078.0 287,976.0 316,065.3 319,226.0 322,418.2 325,642.4
0 0 6 1 7 6

Table 7. Projected Cost of Kitchen Utensils

Qty Description Unit Cost Total Cost
1 Unit Steaming Pitcher 617.50
1 Set Measuring Spoon 436.00
2 pcs Long Handled 266.61 533.22
2 pcs Scooper 499.30 1497.90
3 Dozen Mugs and Saucer 1,500.00 4,500.00
3 Dozen Plates 900.00 2,700.00
3 Dozen Spoon and Fork 250.00 750.00
3 Dozen High Ball Glass 630.00 1,890.00
3 Dozen Teaspoons 210.00 630.00
TOTAL 5,309.41 13,554.62
 MANPOWER REQUIREMENTS

Policies of Hiring

Brew Desk Cafe will announce job vacancies. T he proposed

business will recruit and employ workers on the basis of thier

qualifications of work. Referrals qualified applicants will then pass

the necessary requirements to the managements such as:

 Barangay, Police and NBI Clearance

 Copy of Birth Certificate

 College Diploma/T OR/Form 137

 Medical Certificat e

 SSS, Pag-Ibig and Phil- health Registration

 WASTE DISPOSAL METHOD

Most of the waste of t he Brew Desk Cafe are plastic cups and

straws, product packaging, empty plastics of ingredients and raw

and teh remained foods from the customer. T hese waste were being

segregated to biodegradable and non -biodegradable. All t hese

waste generated by the bus iness will be collected by the city waste

collector everyday.

PRODUCTION COST

Table 8. Total Production Cost

Variable Production Cost
Costs
Year 1 Year 2 Year 3 Year 4 Year 5
Raw 2,310,840.00 2,333,840.40 2,357,287.88 2,380,860.77 2,404,669.37
Materials
Cost
Labor 404,928.00 404,928.00 404,928.00 404,928.00 404,928.00
Cost
Cost of 113,988.00 117,407.64 120,929.87 124,557.76 128,294.50
Utilities
TOTAL 2,829,756.00 2,856,284.04 2,883,145.75 2,910,346.53 2,937,891.87
 CHAPTER V
FINANCING AND FINANCIAL FEASIBILITY

Table 9. Total Project Cost for the First Year of Operation.

Project Cost

A. Fixed Assets
Machineries and 177,884.05
Equipments
Building Improvements 197,765.55
Furniture and Fixtures 227,800.00
Sub-Total P 603,449.60
B. Working Capital
Rental 240,000.00
Raw Materials 2,310,840.00
Supplies 323,412.00
Salaries and Wages 404,928.00
Employees Benefits 33,744.00
Utilities 113,988.00
Repair and Maintenance -
Cash 727,490.50
Sub-Total P 4,899,593.00
C. Pre-Operating Expense
Permits and Licenses 6,490.00
Promotion 4,500.00
Sub-Total P 10,990.00
TOTAL 4,910,583.00

FINANCIERS

As partnership, the proponents will use thier personal savings to start up a

business. Personal savings are commonly used by business owners to help pay

for the start up costs. It wont incur any interest expense when they use their own

money to finance the business. They wont also have any creditors to pay back,

and no one will come for them for money if thier business fails or isnt sucessful
right away. They might also be able to tap their home equity, but its big risk to tie

the success of their business up with having a place to live.

MAJOR ASSUMPTION USED

 Sales increase by 10% every year

 Depreciation Method used is straight line method

 VAT paid is for 11 months (January to November) and VAT for December

is paid on the 25th of January of teh subsequent year stated in the NIRC.

 Utilities expense is paid as it comes due.

 Administrative ans Selling expense increase 5% per year.

PROJECTED FINANCIAL STATEMENTS (5 YEARS)

The following pages will show the statement of comprehensive income or

income statement, statement of cashflows, statement of changes in equity,

statement of financial position, and the notes to financial statements.

 Brew Desk Cafe
The Outlets, Lima Technology Center, Special Economic Zone, Lipa,
Batangas.

PROJECTED INCOME STATEMENT FOR 5 YEAR PERIOD

(Statement of Financial Performance)
 Brew Desk Cafe
The Outlets, Lima Technology Center, Special Economic Zone, Lipa, Batangas.

PROJECTED CASHFLOW STATEMENT FOR 5 YEAR PERIOD

 Brew Desk Cafe
The Outlets, Lima Technology Center, Special Economic Zone, Lipa, Batangas.

PROJECTED FINANCIAL POSITION FOR 5 YEAR PERIOD

 Brew Desk Cafe
The Outlets, Lima Technology Center, Special Economic Zone, Lipa, Batangas.

STATEMENT OF CHANGES NET, ASSETS AND EQUITY

 FINANCIAL ANALYSIS

The business utilized various financial ananlysis and evaluation models in

evaulating the study. These are Statement of Financial Positions, Cashflow

Statement, and Statement of Changes in Equity, Notes to Financial Statements,

and the Financial Ratios.

The statement of finacial position provides information about an

organizations assets, liabilities, and owners equity as of particular date namely,

the last date of the accounting or fiscal period. The format of the financial position

reflecs thebasic accounting equation: assets is equal to total liabilities and equity.

The Income Statement summarizes the enterprises revenues, expenses,

gains, and loses. In addition to disclosing revenues and expenses, the income

statement also identifies gains and loses fro other kinds of transactions.

The Cashflow Statement provides information not otherwise available in

either an income statement or a balance sheet. The statement of Cashflows

presents the sources and the uses of enterprise cash by classifying each type of

cash inflow and cash outflow.

 CHAPTER VI
SOCIO ECONOMIC FEASIBILITY

Every business organization has the goal not only to gain profit but also

the contribustion for the growth and development of the society. It has its social

responsibility that tend to .

CONTRIBUTION TO THE COMMUNITY

Brew Desk Cafe is commited to offer high quality service, prodcts,

affordable price, delcious and nutritious foods to the customer. Secured, friendly

and peaceful environment. The said business will increase rate of employment

through providing job opportunities that would help thier family in sustaining thier

daily needs.

GENERATE EMPLOYMENT

It will create employement, for those who will be hired. These employees

will recieve fair compensation and benefits according to thier qualifications and

performance that will help them uplift thier economic status. They will be given

incentives for those good performing employee and if they have more sales as

well as thier bunos at the end of the year.

CONTRIBUTION TO GOVERNMENT

In putting up a business, registration for business is necessary to have

permits and license from the government office. These are DTI registration, BIR

resgistration, Mayors permit, health permit, environmental fee and other fees
needed beore the start of operation of the business. These, along with taxes are

then paid as the business operates. Taxes from part of the government revenues

that help to support the needs of the public.

LEGAL ASPECTS

In order for the business to operate legally, it must comply with the

government requirements as follows:

 Mayors Permit, Business Permit, Certificate of Non Coverage and other

Municipal Lisences.

 Environmental Compliance Certificate

 Registration with the SSS, Philhealth and PAG-IBIG.

 Registration with Bureau of Internal Revenue.

 CHAPTER VII
PROJECT IMPLEMENTATION AND RESULTS

This chapter comprises the details of all activities to be considered during

pre-investment and pre-operating phases of the project including the surveys and

results conducted by the researcher to determine the acceptability of the

proposed project. It also includes the recommendations and conlusions of the

researcher that will help the financiers in decision making whether to invest or not

on the project.

TIME AND PLACE OF IM PLEMENTATION

Table 10. Gantt Chart of Activities

Activity J F M A M J J A S O N D
1. Negotiations/Approval of Finance
from the project
Proponents/Financier
2. Determination/Awarding of
Engineering/Management/Marketi
ng Contracts
3. Incorporation/Legal Registration
with:
a. The Department of Trade and
Industry
b. Municipatlity/City Government
c. Bureau of Internal Revenue
d. Other Regulatory and
Registration Office
4. Arrangement /Suppervision for
Management
Selection/Recruitment/Training of:
Top/Middle Management
Workers/Labourers
5. Arrangements/Supervision for
Operations
(Preparation/Canvassing and
Negotiations/Delivery
Reciept/Acquisition/Construction/I
 nstallation of your projects:
a. Building and Facilities
b. Machineries, Equipments and
Acessories
c. Policies
6. Arrangement/Supervision for
Marketing
(Presentation/Canvassing/and
Negotiations of:
a. Marketing Budgets
b. Test Marketing
7. Dry Run of Operations
8. Start of Normal Operations

SAMPLING DESIGN

The researcher gathers data thru handling out questionnaires to selected

respondents. They consist of young professionals, professionals, students,

businessmen, senior and other respondents. There are 150 respondents which

are among the to be the client or customer of Brew Desk Cafe were chosen to

help the researcher determine the acceptability of the proposed project.

The researcher adopted the the purposive sampling design to evaluate the

characteristics from the target respondents which will give the best possible

result of the survey.

RESEARCH DESIGN

Descriptive research design was used in this study. It involves the

collection of data in order to test the hypothesis or to answer the questions

concerning the current status of the respondents under study.

 INSTRUMENTATION AND VALIDATION

The instrument used in this study is questionairre consisting items about

the selected personnel characteristics of the respondents. Those characteritics

included gender, age, education, occupation and monthly income. It also, provide

buying behaviour of respondents toward the choice of cafe and coffee shops.

The questionaire goal is to determine the acceptability and feasibility of the

proposed project to the respondents. It is also designed to evaluate the level of

willingness of the respondents to patronize the products of the proposed project.

RESULTS AND DISCUSSION

Table 11 shows the distribution of 150 respondents according to selected

personal related variables namely; gender, age, civil status, status in life, and

monthly income.

Statistic revealed that out of 150 respondents covered by the study,

females were predominant because 61.33 percent. Most of them or 41.33

percent with ages 21-30 years old, 59.33 percent were single, 42.67 percent

were professionals and 32.67 percent has an income of 15,000-20,000.

Table 11. Demographic Profile of the Respondents.

VARIABLES FREQUENCIES PERCENTAGE
AGE F %
Below 20 years old 37 24.67
21-30 years old 62 41.33
31-40 years old 34 22.67
Above 41 years old 17 11.33
TOTAL 150 100
SEX F %
Male 58 38.67
Female 92 61.33
 TOTAL 150 100
CIVIL STATUS F %
Single 89 59.33
Married 54 36
Others 7 4.67
TOTAL 150 100
STATUS IN LIFE F %
Businessmen 21 14
Professional 64 42.67
Student 58 38.67
Other 7 4.67
TOTAL 150 100
MONTHLY INCOME F %
1,000-500 below 28 18.67
5,000-1,000 12 8
10,000-5,000 22 14.67
15,000-10,000 39 26
20,000-15,000 49 32.67
TOTAL 150 100

Table 12 shows the result and respond of the respondents towards the

acceptability of a techno-coffee shop business. Statistic revelaed that most of the

respondents were having coffee everyday it constitutes around 77.33 percent of

the total respondents. Beanleaf was the most visited coffee shop in Lipa City,

typically customers ordered were coffee, hot drink that are likely to buy were

espresso and, cold drinks that are typically to buy were frappucino blended.

Furthermore, most of the respondents or 96 percent would like to have a coffee

shop that served sandwiches, pasta, fries, and breakfast meals and spead 200-

400 pesos. 66 percent constituted of respondent that drink coffee twice a day,

and would prefer to order dine in.

Respondents were also scaled (1-5, 5 being highest) how important the

following; in terms, 75.33 answered 5 being the highest, in terms of parking

space and location, 56.33 answered 5, ambiance and interior, 95.33 answered 5

and 84.67 percent respondents were rated high quality in terms of internet

accessibility, 60.67 percent from the uniqueness of the products and services

and with a friendly personnel which respondents rated 74.67 percent.

Moreover, most of the respondents or around 98 percent were interested

to a coffee shops with combination of relation and access of internet. On the

other hand, respondents considered visiting more often the coffee shops which

offecred quality service. 142 respondents or 94.67 percent loved to visit place

were they can acess internet, play online game, and watch movie for relaxtion.

Table 12. Result and respond of the respondents towards acceptability of a

techno-coffee shop.
Q1. How do you often go to a coffee shop?
F %
Daily 116 77.33
Weekly 23 15.33
Monthly 7 4.67
Occasionally 3 2
Never 1 0.67
TOTAL 150 100

Q2. What is your favourite coffee shop in Lipa City?

F %
Bean Leaf 48 32
Cebrew 31 20.67
ACC 22 14.67
Coffeebreak 31 20.67
All about Tea 14 9.33
Others 4 2.67
TOTAL 150 100

Q3. What do you typically order to drink?

F %
Coffee 86 57.33
Frappe 32 21.33
Tea 20 13.33
Fruit Juice 9 6
Others 3 2
 TOTAL 150 100

Q4. What type of hot drink would you likely to buy?

F %
Espresso 76 50.67
Brewed Coffee 35 23.33
Brewed Tea 22 14.67
Chocolate 17 11.33
TOTAL 150 100

Q5. What type of cold drink would you likely to buy?

F %
Frappuccino Blended 87 58
Milktea 32 21.33
Icedtea 19 12.67
Iced Coffee 12 8
TOTAL 150 100

Q6. Would prefer a coffee shop that serves snadwiches, pasta, fries, and
breakfast meal?
F %
Yes 144 96
No 6 4
TOTAL 150 100

Q7. How much do you spend when you go to a coffee shop?

F %
100-200 38 25.33
200-400 67 44.67
400-500 41 27.67
500-1,000 4 2.67
TOTAL 150 100

Q8. How do you take your orders?

F %
Dine In 142 94.67
Take Out 8 5.33
TOTAL 150 100

Q9. Would a coffee shop that offers gaming/online service, movie watching
and business meeting venue appeals to you?
F %
Yes 90 60
No 60 40
TOTAL 150 100

Q10. On the scale of 1-5 (5 being the highest) how important are the
following qualities when choosing a coffee shop?
a. Quality of Coffee
F %
1 0 0
2 4 2.667
3 13 8.667
4 20 13.33
5 113 75.33
TOTAL 150 100

b. Parking space & Location

F %
1 0 0
2 0 0
3 12 8
4 40 26.67
5 98 65.33
TOTAL 150 100

c. Ambiance & Interior

F %
1 0 0
2 0 0
3 1 0.667
4 6 4
5 143 95.33
TOTAL 150 100

d. Price of the products

F %
1 0 0
2 0 0
3 2 1.333
4 21 14
5 127 84.67
 TOTAL 150 100

e. Uniqueness of the product & service

F %
1 1 0.667
2 3 2
3 12 8
4 43 28.67
5 91 60.67
TOTAL 150 100

f. Friendly personnel/staff
F %
1 0 0
2 0 0
3 6 4
4 32 21.67
5 5 74.33
TOTAL 150 100

Q11. A coffee shop who offered combo price and discounts would
encourge me to go
F %
Yes 147 98
No 3 2
TOTAL 150 100

Q12. What are the purpose in visiting the coffee shop?

F %
Just for meal 37 24.67
Gathering 34 22.67
Study/Reading 12 8
Relaxation 39 26
Others 28 18.67
TOTAL 150 100

Q13. Will you consider visiting more often due to the service?
F %
Yes 136 94.67
No 14 9.33
TOTAL 150 100

Q14. Would you recommend or introduce to others for such first techno-
coffee shop?
F %
Yes 146 97.33
No 4 2.67
TOTAL 150 100

Brew Desk Cafe in terms of managemnet and organization aspect will

become more effective beacuse all the needed information for the management

is being presented. Duties and responsibilities for each positions are being

defined to function effectively. Qualifications for each position are being

implemented so taht the organization will not spend on trainings and seminars for

the hired employee.

In terms of masrketing aspect, Brew Desk Cafe will be feasible because it

uses the combination of internet and the latest trend in promotional activities. All

posible markeing strategies are being presented to help the proposed business

to become more effective and profitable. These will lead the business to achieve

the vision and mission not only fro profit benefit but also to help the government

and the individuals who were employ by the business in thier source of income.

The production feasibility also provided the specific need of the proposed

business. It emphasize the latest technology to help and to perform effective and

efficient service to the customers. Machineries and equipment chosen are based
on the minimum requirement of a techno-coffee shop, thus it will serve their

purpose properly.

The financial feasibility however, provided the needed capitalization,

assumption and cash projection for at least five years. Through this, the

management will be wisely informed about the cash inflows and outflows of the

proposed business.

RECOMMENDATIONS AND CONCLUSIONS

Today, the coffee shops has been branding itself and adapting to a

changing cunsumer marketplace. To gain fresh input to the proposed techno-

coffee shop business, the reseracher conducted a feasibility study on Brew Desk

Cafe. Reseracher results was then provided, and asked other coffee buisness for

thiet ideas and recommendations.

Faced with local competition from Bean Leaf, Coffee Break, as well as

othe fast-growing array of local coffee shops, the Brew Desk Cafe has several

differentiation strategies which stand out from others aside from being the first

techno-coffee shop in the region.

If the proposed business “ Brew Desk Cafe” is opened here in Lipa City, it

will face a huge competition towards other coffee shop, however the proposed

business is feasible because of the increasing demand of a compfy place for

individuals, specifically the young professionals, students, businessmens and

seniors. It becomes their avenue in every meeting, leisure time and for

relaxation.
Appendix A

Brand Logo
 Appendix B

Promotional Flyers
 Appendix C

Brew Desk Cafe Website

 Appendix D

A perspective view of the Brew Desk Cafe Coffee Shop