Coffeeopedia

“We Treat your Obsession”

Business Plan
Prepared [October]

Contact Information

Leige Ann P. Dela Rea

Jemuel C. Dela Rea

Leigepdlr_coffeeopedia@gmail.com

Jemuelcdlr_coffeeopedia@gmail.com

Brgy. Javalera, Gen. Trias Coty, Cavite

Coffeeopedia

I. Executive Summary
Business Overview
Our store named Coffeeopedia at Barangay Manggahan, General Trias City, Cavite, is a new coffee shop
that sells snacks, teas, pastries and specially our high quality coffee, our product is perfect for those people who is
looking for drinks and snacks that they will surely like. Drink to go or just seat on our seating area can do to enjoy
our product.

Services
Coffeeopedia will propose extensive range of coffees, iced coffees, teas and snacks. Some products on the
menu will be accentuate as being specialties of the shop’s founders. Shop’s seating area can be the meeting place
of the persons that will visit the coffee shop. It is also free Wi-Fi that eases their boredom while waiting for their
companions or orders.

Customer Focus
Coffeeopedia will start serving residents who are living within 3 mile radius from our coffee shop and the
workers and students within domain mile radius. The demographics of these customers as follows:
• 30, 737 residents
• 1,550 workers ( do not live the neighborhood)
• Average Income 50, 500
•34.75% married
• Median Age: 18 years

Management Team
Coffeeopedia is led by Leige Ann Dela Rea and Jemuel Dela Rea who are not yet skilled business
man/woman. Leige and Jemuel are both fresh graduates and they decided to run a business in an early age with
the little knowledge that they have learn on their school days.

Success Factors
Coffeeopedia is remarkably qualified to succeed due to the following reasons:
• Our location is high volume area with little direct traffic therefore it will be highly convenient to
substantial numbers of passers each day
• There is only one shop targeting the young demographic we are break in. As we surveyed the
community, we saw that there’s only one coffee shop but it is infrequently open.
•The management is not skilled but had a lot of fresh ideas to attract the customers
Coffeeopedia

Financial Highlights
Coffeeopedia is currently pursuing P 300,000 to launch. These funds will be used at:
• Coffee shop design/build P 100,000
• Working capital P 150,000 to pay for salaries, marketing and land costs until coffeeopedia attain
break-even

II. Coffeeopedia Overview

Who is Coffeeopedia?
Coffeeopedia located at Barangay Manggahan General Trias City, Cavite is a new coffee shop
that sells snack, teas, pastries and specially our high quality coffee. It is perfect for those people who is
looking for food and drinks that match their taste buds. Drink to-go or just seat on our seating area can do
to enjoy our product.

Leige Ann Jemuel Dela Rea are the founders of café Coffeeopedia, they are fresh graduates but
not yet skilled in running a business. They decided to run a business with the little knowledge that they
have learned. The founders clearly implicit that a similar business would be fond of momentous success
on their hometown.

Coffeeopedia’s Name History

The founders came up in the store name Coffeeopedia after scribbling some words from coffee
and studying. They chose it because it is unique and their product can be easily recognized:
Coffeeopedia

The company has achieved the following breakthrough

• Created the Menu
• Determined equipment inventory requirements
•Developed the company’s name, logo, and website located at
www.halinasacoffeeopedia.com
• Began building relationships with coffee, tea and pastry suppliers

Coffeeopedia’s Services
Below is the Coffeeopedia’s initial menu. As ypu can see all the items are classified into four
categories.
1. Coffee and Espresso
2. Iced Beverages
3. Tea
4. Pastries
Coffeeopedia’s Initial Menu
Coffee and Coffeeopedia’s Iced Beverages Pastries Grab N’ Go
Espresso Tea Snacks
Latte Chai Latte Tea Iced Café Latte Brownies Burger
Americano Green Tea Iced Chai Tea Butter Croissant Carbonara
Latte
Vanilla Herbal Tea Iced Caramel Chocolate Spaghetti
Macchiato Macchiatto Croissant

Espresso Black Tea Iced Vanilla Latte Cookies Nachos

Decaf Coffee Iced Smoothies Pretzel Fries
Regular Coffee Iced Coffee Chocolate Chip Tapsilog

Iced Tea

Coffee Shop Design

Coffeeopedia will develop a 2,500 square foot coffee shop whose key element wil include the following:
•Ordering Counter
• Tables to comfortable seat (20 customer)
•Storage Area
• Restroom
 Coffeeopedia

The location has 12 parking spots that will be good enough even in peak hours. Coffeeopedia plans to
open 7 days a week from 7:00 a.m to 11:30 p.m. As demand dictates, we may extend or reduce hours.

III. Industry Analysis

Coffeeopedia will surely directly or indirectly competes with all the food service providers near the shop.
Competition will come from the bakeries, restaurants, retail establishments etc. Direct competition will come
from the companies that serve coffees and Grab to go products.

Industry Statistics Trends

The following Industry size facts and statistics bode well for Coffeeopedia
-50% of the adult population in the Philippines drinks coffee everyday.
- An additional 20% of the Filipinos drink coffee occasionally
- Among coffee drinkers coffee consumes 4.0 cups of coffee has risen inevitably in recent
years
- 68% of coffee drinkers believes that coffee helps to improve their mental activity.
Coffeeopedia

IV. Customer Analysis

Demographic Profile of Target Market
The exact demographics of the area in which one retail location resides is as follows:

General Trias Amadeo

Total Population 243, 322 37, 649
Square Miles 81.46 /km² (31.45/sq mi) 14.25
Population Density 3,900/km² (10,000/sq mi) 1, 620/km²
Population Male 49.5% 40.62%
Population Female 48.8% 38.73%
Target Population by Age Group
Age 18-24 5.68% 3.58%
Age 25-34 7.22% 4.50%
Age 35-44 10.80% 7.72%
Age 45-54 15.09% 9.88%
Target Population by Income
Income P20,000 to P25,000 9.16% 10.80%
Income P26,000 to P40,000 11.2% 12.72%
Income P41,000 to P45,000 9.10% 9.64%
Income P46,000 to P50, 000 8.81% 7.00%
Income P51,000 to P55,000 6.34% 5.95%
Income P56,000 to P60,000 6.24% 4.68%

Customer Segmentation
We will initially target the following four customer segments
Students: That will study on our place, they can connect to our Wi-Fi up to the moment that they
buy on our shop
Local Workers: Almost 1,150 individual works in stores or offices within the sector of our
location, we rely upon a fair portion of individuals to go to our store starting in the morning, lunch breaks,
breaks and leaving work.

Shoppers: Due to our location on a main street, the shoppers will surely visit when they are tired
of walking or just need a snack to eat.

Couples: Our shop attracts teenagers or couples looking for spot to meet or just study date.
 V. Competitive Analysis
Direct and Indirect Analysis
The following restaurants are located within 4 mile radius of Coffeeopedia, hence cater direct or
indirect competition for customers:

Domum Café: has been in business for 4 years, Domum Café serve basic options of coffee and
some drinks, and also snacks sandwiches.
Domum is a nice place because it has nice decorations, but it was infrequent to open that’s why it
has low customers.

Bon Appetea has been in business for 3 years. It offers tea and some snacks, coffee and to-go
snacks.

Mc Donalds: Mc Donalds has been successful especially from the kids and teens. It also offers to-
go snacks, coffee and ice cream

Coffeeopedia was certain advantages over Mc Donalds including:

-Mc Donalds does not offer as extensive a rotating menu of flavored coffee
-Mc Donalds cannot be a place to study because it is too noisy for the students who needs to
study
-They are not offering drinks as much as Coffeeopedia’s

We expect that Mc Donalds will continue to bloom and recognizable chain among some town people.
Anyhow we expect that more customers will go to Coffeeopedia because of the high quality ingredients
we use and product selection.

Coffeeopedia
 Competitive Pricing

Types of Foods Domum Bon Appetea Mc Donalds

Coffee/Tea P 50.00 P 80.00 P 50.00
Breakfast P 85.00 P 85.00 P 85.00
Lunch P 75.00 NA P 110.00
Pastries P 70.00 P 65.00 NA
Cakes/Bakery P 60.00 NA NA

Competitive Advantage
Coffeeopedia enjoy some advantages over competitors. These advantages include:
Management: Our Management allows to serve the customers in a much more sophisticated manner than
our competitors.
High Quality Ingredients: Coffeeopedia has the best local suppliers of coffees, teas, pastries and snacks.
And do a special care to create Market tests its own blends that the drinkers admire.
Relationships: The owners lived in the community for 20 years, Leige and Jemuel knows all the local
leaders, influencers. It will be easy for them to build a brand and awareness of the shop.

VI. Marketing Plan

Marketing Plan is describing the type of brand is Coffeeopedia, Coffeeopedia is seeking to create the
company’s planned promotions and Pricing Strategies

The Coffeeopedia Brand

The Coffeeopedia brand will focus on the company’s unique value proffer
- Administer exquisite customer service
- Offering amazing and unique house coffee blend
- Offering convenient location that offers both dine-in or take-out options.
- Have high quality beverages and food items
Promotion Strategy
Coffeeopedia is contemplating its Target Marketbe the persons that is near their location or a quarter mile
radius from the café. The store’s Promotion Strategy to the people includes:
•Public Relations
The founders will contact the area’s newspaper, television station and will send them
press release that is saying the opening of the Coffeeopedia

• Direct Mail
 Coffeeopedia will Direct Mail their neighborhoods. This will give some information
about Coffeeopedia. It provides inducements for people to be regularly at the restauant.

• Sampling
At the beginning, Coffeeopedia employees will give the passers free coffee samples for
them to know how good the products and visit our café

• Pre Opening Events

Coffeeopedia will organize pre-opening events for the customers before opening the café.
This events will create the awareness and buzz for Coffeeopedia in the area.

VII. Operations Plan

Functional Roles
In order to assasinate on Coffeeopedia’s business model. The company needs to perform
functions like the following:

Retail Functions
• Customer Service
•Maintenance Personnel/Janitor
• Order Taking and Fulfillment
Administrative Functions
• Hiring and Training Staff
• Sourcing and Storing Ingredients
•Administrative Functions including legal, Marketing, Bookkeeping and others.
Kitchen Functions
• Coffee Brewing
• Food Preparation

Milestones
Coffeeopedia expects to effectuate the following milestones the following eight months

Date Milestone
January 2020 Finalize lease agreement
February 2020 Design and build out Coffeeopedia
March 2020 Coffeeopedia coffee shop
April 2020 Hire and train initial staff
May 2020 Launch Coffeeopedia
June 2020 Reach break even
Coffeeopedia
VIII. Management Team
Management Team Members
Coffeeopedia is found by Leige and Jemuel Dela Rea who is fresh graduates and decided to run a
business
Leige worked part-time at fast food chains throughout their town. She was responsible for
overseeing the restaurant’s counter. The founders graduated from University of ABCDEF Major in Business
Management.

Hiring Plan
Leige and Jemuel will be the café’s manager. For them to run the business, we need to wire the
following personnel:

• Busboy (1 to start)
•Part-time Bookkeeper (who will create statement, accounts payable and execute other
administrative functions)
• Wait staff (2 full-time equivalents to start)

IX. Financial Plan

Revenue and Cost Drives
Coffeeopedia’s income will from the sale of food and drinks to it customers. The café will have
dine-in and take-out systems to cater to a expensive spun of customer in its target market.
The most costs for the company will be food and drink supply costs, rent of the location, staff’s
salaries.

Capital Requirements and Use of Funds

Coffeeopedia is looking a total Capitalization of P350, 000 to launch a coffee shop. The capital
will be used for financing capital expenditures, manpower costs, working capital and Marketing
expensive.

Particularly, these cash reserve will be used as follows:

-Working Capital: nearly 150,000 to pay for Marketing, Salaries and lease cost until
Coffeeopedia reaches break-even
-Coffee shop design/build: proximately 160,000

Key Assumption and Functions

Below, find the Key Assumptions that elapse into Financial Forecast and Financial Forecast and Financial
Projections’ summary over the next five years. Look for the appendix for more detailed Financial Forecasting
information.
Coffeeopedia

Key Assumptions
Number of Customers per day, per location, Number of location started

Numbers of Per Location Number of locations

Customers per Day started
FY1 85 FY1 2
FY2 90 FY2 1
FY3 95 FY3 0
FY4 100 FY4 0
FY5 105 FY5 1

Average order price P40.00 Cost of Good Sold

FY1 25.00%
Annual Increase 6.05% FY2 23.00%
Price
FY3 21.00%
Annual Lease (per P65,000 FY4 19.00%
location)
Yearly Lease % 3.65% FY5 17.00%

5 Year Annual Income Statement

Year 1 Year 2 Year 3 Year 4 Year 5

Revenues
Product/Service P175,150 P185,250 P195,340 P200,780 P205,111
A
Product/Service P150,100 P155,174 P160,560 P165,890 P170,215
B
Total Revenues P485,150 P340,425 P355,900 P366,326 P375,326

Expenses and Year 1 Year 2 Year 3 Year 4 Year 5

Cost
Cost of Good 59,560 65,456 67,550 72, 265 74,338
Sold
Lease 62,150 65,123 67,333 72,810 75,183
Marketing 30,000 35,481 37,285 41,514 43,162
Salaries 140,850 143,650 145,780 149,184 153,843
Other 4,650 5,050 7,650 11,483 13,568
Expenses
Total 297,210 314,760 325,598 347,256 360,094
Expenses and
Cost

Coffeeopedia
 EBITDA (P20,860) P242,995 P188,232 P331 388 P382,485
Depreciation P36,950 P36,950 P36,950 P36,950 P36,950
EBIT P57,911 P206,935 P240,162 P195,427 P345,525
Interest P33,731 P30,779 P18,826 P15,873 P12,911
PRE TAX (P80,431) P85, 257 P122,436 P169,554 P222,604
INCOME
Net Operating (P80,431) (P80,431) 0 0 0
Loss
Income Tax 0 P1,689 P42,833 P59,344 P77,911
Expense
NET (P840,431) P83,568 P79,583 P109,210
INCOME P144,693
NET - 15.00% 13.00% 16.30% 19.40%
PROFIT
MARGIN
(%)

5 Year Annual Sheet

Year 1 Year 2 Year 3 Year 4 Year 5

Assets
Cash 16, 710 90,188 158,957 258,570 392,389
Accounts 0 0 0 0 0
Receivable
Inventory 21,000 23,153 25,526 28,142 31, 027
Total 37,710 113,340 184,482 286,712 428,416
Current
Asset
Fixed Asset 246,450 246,450 246,450 246,450 246,450
Depreciation 36,960 73,920 110,880 147, 840 184,800
Net Fixed 209,890 173,530 135,570 98,680 61,650
Assets
TOTAL 247,200 285,870 320,057 385,322 485,064
ASSETS
LIABILITIES
AND
EQUITY
Debt 317,971 272, 546 227,122 181,698 136,273
Accounts 9,660 10,187 10, 210 10, 694 11, 170
Payable
Total 307, 631 282, 733 237, 332 192, 391 147, 443
Liabilities
Share 0 0 0 0 0
Capital
Retained (P80, 431) 3,137 82, 720 192, 936 337, 623
Earnings
Total Equity (P80, 431) 3, 137 82, 720 192, 936 337, 623
TOTL 247, 200 285, 870 320, 052 385, 322 485, 066
LIABILITIES
EQUITY
Coffeeopedia
5 Year Annual Cash Flow

Year 1 Year 2 Year 3 Year 4 Year 5

CASH FLOW
FROM
OPERATION
Net Income (P80,431) P83,B 568 P79, 583 P110, 210 P144, 693
(Loss)
Change in (P11, 340) (P1, 625) (2, 350) (P2,133) (2, 409)
Working
Capital
Depreciation P36, 960 P36, 960 P36, 960 P36, 960 P36, 960
Net Cash Flow (P54, 811) P118, 902 P114, 193 P145, 037‘ P179, 244
from Operations
CASH FLOW
FROM
INVESTMENT
Investment (P246, 450) 0 0 0 0
Net Cash Flow (P246, 450) 0 0 0 0
from
Investments
CASH FLOW
FROM
FINANCIAL
Cash from 0 0 0 0 0
Equity
Cash from debt P317, 971 (P45, 424) (P45,424) (P45, 424) (P45, 424)
Net Cash Flow P317, 971 (P45, 424) (P45, 424) (P45, 424) (P45, 424)
from Financing
SUMMARY
Net Cash Flow P16, 710 P73, 478 P68, 769 P99, 613 P133, 819
Cash at the P0 P16, 710 P90, 188 P 158, 657 P255, 570
Beginning of
Period
Cash at the End P16, 710 P90, 188 P 158, 957 P258, 570 P 292, 389
of Period