0

CHAPTER I

INTRODUCTION

Background of the Study

Coffee business has recently become a popular industry and has seen a rise in
popularity in the business sector, there has been an increase in the rate. It has
created strong competition among opponents. Filipino individuals are coffee lovers,
remember how everybody continues to drink hot coffee even though the country is
naturally hot, blustery seasons, which is why they can't help themselves but to take
a cup of coffee. For some Filipinos, coffee is life. No big surprise the coffee, frappe,
and sweet healthy beverages industry is persistently striving right now. Coffee
shops and other varieties of food and beverages offered by business people 𝐴=𝜋𝑟2
regarded to be one of the most popular venues for people to work and be productive
in terms of working and looking for a good environment. For good reason,
Individuals tend to spend the majority of their budget on coffee and sweet healthy
beverages consumption mainly because it has many health benefits, and it serves as
a multi-beneficial investment for studying, working, socializing or simply gathering
to catch up and share ideas.
According to Han & Hyun et al. (2017), consumer behavior has concluded the
role of satisfaction in the market. An enormous assortment of literature provides
that customer satisfaction is a center component of the service industry as it will in
general give a positive 2 relationship of outcomes such as a higher significant level
of sales and customer loyalty. Moreover, despite its importance, previous studies
have rarely looked at the concept of customer happiness and the characteristics of a
coffee shop and sweet beverages business. The goal of this study is to fill a vacuum
in the literature by determining satisfaction-related consumer personality and traits
that can influence satisfaction, which is a key factor in business sales success.
Most consumers, especially students, tend to study in some places like café
that offer beverages such as prepared coffee, fresh fruit shakes and other gourmet

1
bakery products. The reason for these circumstances is that there are different types
of ambiance. Neilsen (2015), stated that coffee shops appear to be synonymous with
open space and library, people find it as peaceful, relaxed and ideal places to study
or use their leisure time because they have drinks and snacks to help them study.
Furthermore, because coffee is thought to be capable of relieving fatigue owing to
the enormous quantity and density of people's daily activities, it has become one of
the most popular drinks in the community, and the tradition of drinking coffee has
become an important element of most people's lifestyles.
A pleasant experience, a balanced blend of flavor, body, and scent in the
absence of flaws, has been defined as a good quality coffee flavor (Mori et al., 2003).
Flavor is still the most significant consumer criterion, and it deserves a thorough
research from both a sensory and compositional standpoint (Mori et al., 2003).
Coffee's composition and sensory qualities have been studied for over a century,
which is unsurprising.
Flavor coffee is still a driving reason behind coffee's sustained success in the
beverage business. People enjoyed coffee because it boosted their sensations of
relaxation, clear-headedness, and tranquility while decreasing tiredness, according
to his research. These findings prompted the creation of an emotion for the coffee
drinking experience, which includes terms like happiness, activity, alertness, and
decreased depression, among many others. It also reduced the risk of heart and liver
complications, as well as the risk of certain cancers like endometrial cancer and
colon cancer. Because coffee contains antioxidants, it may help with short-term
memory and cognitive upkeep. Performance of beverages, workout performance,
and the danger of developing diseases like Alzheimer's. Moreover, since the coffee
revolution it has become an inseparable element of our lives. Be a cup of coffee
every day to start a fresh day a cup of coffee is required. Be enjoyed every day,
whether early in the morning, late in the afternoon, or late at night. People drink
coffee no matter what type of coffee they drink, where they drink it, with whom they
drink it, or when they drink it. Coffee users from all over the world brew their coffee
in various ways. Ways using several types of coffee beans as a result, the flavor and

2
some people like a sweeter flavor, while others prefer a saltier flavor. Some people
enjoy a sour flavor, while others prefer a bitter flavor.
Most of the students nowadays tend to study in some places like coffee

shops because of the different types of ambiance. They prefer little noise to pure

silence. According to Nielsen, 2015), Coffee shops appear to be synonymous

with office space and library. People find it as a peaceful, relaxed and ideal place to

study because they have a drink and a snack to help with the study process.

According to the findings of the research, COVID-19 has had a significant impact on

food and beverage purchasing and consumption patterns in the Philippines. In 2020,

the pandemic scenario had a significant impact on dining out, which was

traditionally the preferred celebration in family gatherings. Although the industry

has experienced excellent growth in recent years, it is expected to continue to rise in

2020, thanks to increasing direct spending in retail outlets, as well as increased

consumption of hot beverages such as coffee and home-cooked meals.

It has been identified that key strategies of companies operating in the

Philippines Food and Beverage Market Industry include showcasing their touch-free

manufacturing and delivery methods, highlighting USP statements, concentrating on

product packaging, and increasing the presence of products on online marketplaces

and social media sites.

The food and beverage sector is expected to undergo some changes in 2021

as a result of greater customer awareness when it comes to food selection. In

addition to the trend toward sustainable, regenerative, plant-based meals and

beverages as well as the desire for foods and beverages that contain immunity

boosting components, these items and their constituents are driving demand for

these products and their constituents. The Do It Yourself (DIY) movement gained

3
significant traction under COVID-19's reign and is anticipated to continue beyond

2021.

Manufacturers in the Philippines' Food and Beverage Market will face

hurdles because of global lockdowns in 2020 and continuous limitations in 2021,

which will disrupt the supply chain. Vendor profit margins will continue to be

squeezed because of intense competition, price challenges, and altering consumer

preferences.

Name and Purpose of the Study

The food and beverage industry, which includes coffee shops, arose from
simple beginnings: as individuals go from their homes to places with business
agendas, they are likely to have the need and desire to eat and drink. As a result,
businesspeople were encouraged to meet the demand by providing foods and
beverages.
Mood Lift Café will focus most of its marketing activity on the millennial
generation, who studies show they spend the most on coffee and coffee products
outside of the home. The mood lift café also offers different mind games that are
enjoyable while learning and attractive with good ambiance. They may save time
and do other things they enjoy while still eating nutritious food and tasting different
flavors of coffee that suited their liking because they have a healthy café as an
option. The market for ready-to-eat foods is constantly expanding, providing
opportunities for expansion, and capturing a larger portion of the market. Our
health is our source of income, so balancing the food that individuals eat to stay in
optimal health. That is why we built up this idea of selling a nutritious food café and
flavored coffee as a different option for the customer as our business.
The name Mood Lift Café is given the idea that something lifts your spirits or
your mood, or if they lift, you start feeling more cheerful. Lifting your mood is not
always easy, you can't stop thinking about what first made you furious, upset, or

4
terrified. Changing your focus is one of the most effective strategies to improve your
mood. In a healthy way, shift your attention and emotion. As a result of these, people
wanted to try new experiences that are good and appetizing to their eyes.

Nature of Business

The interest by consumers in the coffee house industry is sweeping the

country. Mood Lift Café is a Manufacturing business which is focused as the center of
social interaction and will provide a friendly, comfortable atmosphere where the
customer can congregate, talk, read, write, entertain one another, or pass the time,
whether individually or in small groups, also it is a place where we provide
customers a quality food, service and entertainment at a reasonable price.
The coffee house “Mood Lift Café” will offer a variety of choices to the
customers. Coffee with different varieties of flavor and tea of all sorts will be offered.
Waffles in different varieties such as waffles with ice cream or a chicken burger that
is made up of waffle and other burgers with a twist, like tuna burgers or veggie
burgers but would also be beneficial to the health of the consumer. The oil to be
used here is canola oil, which is good for health.
The business Mood Lift Café also supports the local products and the local
farmers here in the Philippines, with a unique structure that you can't see to others
where our company used the "shipping container" as our shop design to adapt the
modernization design which makes our coffee shop business unique.

Location of the Business

The establishment of Mood Lift Café is a private business built and located at
San Jose Road Zamboanga City fronting the Shell Gas Station and is about 190
meters from Brent Hospital and Colleges Incorporated with a total land area of
237.93 square meters.

5
 The chosen area of the physical store of Mood lift Café accessible from the
city proper and is situated along the road which could attract potential customers
who would love the good ambiance and its services.

Figure 1. Actual location of building construction

Objectives of the Study

This feasibility study was conducted to help the consumers to patronize our own
local product and to provide the best service, choosing for its good hospitality and a
friendly workers and environment. Furthermore, this study has the following
specific aims:
1. To provide products that encourage better health of customers and
determine the customer level of satisfaction regarding the purchase of
products.

6
 2. To introduce customers to new items made by the business inspired by local
products.
3. To help the customers relieve their daily stresses by providing peace of mind
through comfortable location, great ambiance, best product and friendly
customer service.

F. Significance of the Study

This study aims to provide students and workers a better place where they
can unwind themselves and offer them a good delicacy with a twist that they never
had; this concept of business is very vital in general categories. It will be in San Jose
Road Zamboanga City fronting near the Shell Gas Station.
The coffee shop is well-known, and many residents of Zamboanga City are
coffee enthusiasts. However, at our food business, we focus on our local products
where we promote and support our own products and to help our Filipino farmers.
In Mood Lift Café, the business sells a variety of foods, including not just coffee but
also different variety of flavor in the coffee just like Chocolate, Matcha, Vanilla, Ube
(purple yam), strawberry, hazelnuts coffee and fruit shakes that has different flavor
that has high nutrients and pantries such as burger, waffles with different side
dishes that are healthy and would benefit the consumer. The Mood Lift Café offers
something new to the people, and it will ensure to the customers that the business
serves healthy and high-quality products, while our café will be fashionable, worth
it, and relaxed and would be enjoyable to the people.

Scope and Limitation of the Study

The Coffee shop business Mood Lift Café focuses in Zamboanga city proper
only as we aim to prove the feasibility of establishing a locally-inspired coffee shop.
The target customers are the millennials and will be based on the trend nowadays.
This product has wider scope for Mood Lift Café to provide the best coffee
experience and will be served on the selected customer within Zamboanga city that
7
are willing to purchase the product and enjoy the suitable environment for them to
unwind and relax as they taste the coffee and other beverages from the store.

Definition of Terms

Beverages – any drinkable liquid that provide nutritional and health benefits to an
individual’s such as different flavored of coffee, sugar free fruit shakes. In this
study, beverages refers to the drinks offered by the Mood Lift Cafe which
ranges from chocolate, matcha, vanilla, ube (purple yam), strawberry,
hazelnuts coffee and fruit shakes.

Customers – are those who buy or pay for the goods or services provided and are
regarded as the business's primary beneficiaries. The Mood Lift Cafe targets
primarily those students who are busy with their academic works and are
looking for a place to chill and relax.

Mood- is an overall feeling, impression or the conscious state of mind that a person
or individuals portrays. In this study, it refers to the state in which the
customers are able to appreciate the ambience of the shop for relaxing.

8
 CHAPTER II

TECHNICAL ASPECT

A. Workflow Process

Figure No. 1

9
 ● Customer enters coffee shop B. Service Offered
● Purchasing product control
● Customer order
● Storage
● Barista make beverage according
to order ● Final Preparation

● Processing order (Food ● Counters prepare bills

preparation) ● Customers pay bills

● Production control ● Customer may Dine in and take

o

The coffee house “Mood Lift Café” will offer a variety of choices to the customers.
Coffee with different varieties of flavor and tea of all sorts will be offered. Waffles in
different varieties such as waffles with ice cream or a chicken burger that is made up of
waffle and other burgers with a twist, like tuna burgers or veggie burgers but would also
be beneficial to the health of the consumer. Mood Lift Café is a company that focuses on
being the center of social interaction by providing a friendly, comfortable environment in
which customers can congregate, talk, read, write, entertain one another, or pass the
time, whether alone or in small groups. It is also a place where we provide customers
with highquality food, service, and entertainment at a reasonable price and enjoy the
comfortable furniture. The customers can relieve their daily stresses by providing peace
of mind through comfortable location, great ambiance, best product, and friendly
customer service with free internet access.

In addition, the Mood Lift Cafe also has an official Instagram, twitter and Facebook
page for up-to-date information, special orders, etc. Furthermore, the Mood Lift Café
offers multiple payment options that add up to your convenience.

10
MENU

Figure No. 3

C. Materials and Equipment

To render coffee café services, the Mood Lift Café which will be located at San Jose
Road Zamboanga City, will be equipped not only with its café but also can assure safety,
enjoyment, relaxation, and it will be beneficial to the health of the customer. Also, the
design in Mood Lift Café is a good design that can create potential and have a long-term
positive impact on people’s mind, body, and spirit.

11
 EXPENSES UNIT PRICE QUANTITY TOTAL PRICE

Light bulb 105 14 1,470

Mug
● Ceramic Mug and 2,500 48 (6 Set) 20,000
Plate

Cups
● Paper Cups 200 (25pcs) 300 (25 Set) 2,400

Tv 55” flat screen 27,850 1 27,850

Aircon 36.500 1 36,500

Burger griller 136,850 1 136,850

Waffle fryer 3,855 2 7,710

Blender 5,210 3 15,630

Coffee grinder 4,190 2 8,380

Coffee maker 40,999 2 81,998

Refrigerator 9,000 1 9,000

Telephone 427 1 427

Computer 19,500 1 19,500

Cctv 2,010 6 12,060

Toilet bowl 10,600 5 53,000

Bidet 1,430 5 7,150

12
Mirror 2,775 2 5,550

Sanitary tissue 243 5 1,215

Hand sanitizer 115 4 460

Hand Dryer 8,240 2 16,480

Disposable gloves 25 4 100

Hairnets 43 5 215

Floor mat 500 2 1,000

Signage 80 2 160

Trash bin 19,040 6 (3 Set) 38,080

Speakers (attach to 1,490 3 4,470

the wall)

Fire extinguisher 800 4 3,200

Water dispenser 1,999 2 3,998

Chalkboard standee 750 2 1,500

Wall Frames 375 4 1,500

Led lights letterings 7,000 2 14,000

Game board
● Chess board 90 2 180
● Snake and ladder 135 2 270
● Falling Tower of
wooden blocks 99 2 198
● Scramble words 378 2 756

ESTIMATED TOTAL: 534,242.00php.

13
D. General Guidelines/ protocols

The customer's and its employees' health and safety should be a primary priority.

The business Mood Lift Cafe assures that the coffee shops provide a safe and comfortable

environment in which to enjoy excellent coffee and food.

● Offer sanitizer at the door and in the cashier to encourage you to use it when

arriving, ordering, and leaving the premises.

● Accessibility of entrance and exit, such as narrow walkways, tables, and steps.

● Trip hazards throughout the café, such as changes in floor levels or the likelihood

of spillage.

● As for the safety of the health of customers, regularly and correctly maintained

and cleaned by the employees.

● Have a dedicated area where food and drinks are handled in line with appropriate

hygiene levels and ensure that the waste is disposed of properly.

● Ensure the ingredients and product are stored and labeled correctly.

● Provide employees with equipment like gloves, aprons, hairnets if appropriate.

E. Physical Plant/Floor Plan

14
Figure No. 4

Figure No. 4

Figure No. 5

15
 Figure No. 6

Figure No. 7

16
 Figure No. 8

Figure No. 9

17
Figure No. 10

Figure No. 11

18
 F. Personnel and Administrative Requirements

The Mood Lift Cafe will be located at San Jose Road, Zamboanga City. This
establishment will function to serve as a social interaction and quality time for an
individual. Mood Lift Cafe will manifest and provide quality services to the patron, thus
proficient staff members are required by the facility.

General Qualification:

● Must have good communication skills.

● Must have proper attitude/behavior.
● Must be active physically and mentally.
● Must have good customer skills.

Personnel No. of Qualifications Responsibility

staff

Manager 1 ● Manage day-to-day

● Bachelor’s degree or operations of the cafe
certification in ● Hire and onboard new wait
business staff and baristas
administration ● Train employees on drinks
or business preparation and proper use
management is of coffee equipment
advantageous. ● Coordinate with vendors
● At least 2 and order supplies, as
years management needed (like takeaway
experience. cups, coffee, milk and other
ingredients)
● Maintain updated records
of daily, weekly and
monthly revenues and
expenses
● Add new menu items based
on seasonality and
customers’ preferences (for
example vegan coffee

19
 drinks)

● Advise staff on the best

ways to resolve issues with
clients and deliver excellent
customer service
● Ensure all cafe areas are
clean and tidy
● Nurture friendly
relationships with
customers to
increase loyalty
and boost our
reputation.
Cashier 2 ● Male/ Female ● Take customer orders at
● 20 years old & above the counter
● College graduate ● Receive payments and
preferably business present change to
course customers
● 1-2 years’ ● Function as the
experience of host/hostess of
the
customer service restaurant
and cashier. Make reservations for
●
● Basic math customers
and computer Receive food checks from
●
skills. waiters or customers
● Manage the register,
including all credit card
and cash operations
● Ensure a balance of the
register at the end of the
shift or working period

Cook 2 ● HRM/Culinary Arts/ Set up workstations with all

Pastry Arts graduate ● needed ingredients and
or equivalent. cooking equipment
● Have at least 1-2 Prepare ingredients to use
years working ● in cooking (chopping and
experience. peeling vegetables, cutting

20
 ● Must have excellent meat etc.)
●
knowledge of the Cook food in various

latest food safety and

utensils.
quality standards.
● Check food while cooking
to stir or turn
● Ensure great presentation
by dressing dishes before
they are served
● Keep a sanitized and orderly
environment in the kitchen
● Ensure all food and other
items are stored properly
● Check quality of
ingredients
● Monitor stock and place
orders when there are
shortages

Server 2 ● Male/ Female

● Provide excellent customer
● 21 to 30 years old services
● HRM graduate ● Greet customers and present
or equivalent menus
● With good oral ● Make suggestions based on
communication skills. their preferences
● Take and serve food/drinks
orders
● Up-sell when appropriate
● Arrange table settings
● Always keep tables clean and
tidy
● Deliver checks and collect
payments
● Cooperate and communicate
with all
serving and kitchen staff
● Adhere to all relevant health

21
 department
rules/regulations and all
customer service guidelines
Dishwasher 1 ● Male/ Female or ● Maintains a clean kitchen,
● High school properly washes and sort’s
college graduate. soiled dishes, and preps
foods as needed. Keeps dish
area free of clutter and
organized.
● Sets up dish stations,
including dish machines
and sinks.
● Properly washes, stacks,
and stores glassware,
silverware, cookware, and
storage containers.
● Assists in the timely storing
of food deliveries.
● Maintains the dry storage
area and the organization
of storage shelves.
●

Security 1 ● Must be an
● Inspect and patrol premises
experienced security
regularly
guard.
● Monitor property entrance
● Must be a licensed
● Authorize entrance of
security.
people and vehicles
● Report any suspicious
behaviors and happenings
● Secure all exits, doors and
windows
● Monitor surveillance
cameras
● Respond to alarms and
react in a timely manner
● Aid people in need
● Submit reports of daily

22
 surveillance activity
● Submit reports of every
suspicious action

G. Operational Management

ACTIVITY PEOPLE EQUIPME FURNITURE FLOOR PLANNING

NT & FIXTURE ARE IN RELATIONSHIP
SQUARE
METERS

Service Receiving Staff/Crew Coffee Tables and 2.77 sq. Accessible and
of Manager maker Chairs m. adjacent to
Area
Customers Refrigerat Drawers Cashier
or Cabinets

Entrance Access Customers Concrete

flat form 10 sq. m Adjacent to
Customers
main entrance
Cashier Payment Cashier Computer Drawers 1.48 sq. Accessible and
transactio m Adjacent to
n service area

Customers & 12.05

Toilets/ Managing Staff Hand Water sq.m Accessible and
Comfort customer’ Dryer Lavatory Adjacent to
rooms s personal Hand customers
hygiene Sanitizer

53.51 sq.
Dining Customers Dining m Adjacent and
Area Tables (Open Accessible to
Area)
*Open Chairs customers
Area
157 sq.m
* Second (Second
Floor Floor)

23
 Customers
Waiting For take Riders Air Chairs 12.86 Accessible to
area outs/ Condition Long sofa sq.m Customers or
dine out er Table Riders

Storage Storage of Staff/Crew Cabinets 7.58 Adjacent and

Room supplies Manager Drawers sq.m Accessible to
Staffs or Crews
and Manager,
Service Area
and Staff
Room

Staff Where Staffs Air Tables 7.58 Easy access to

Room staffs take Condition Chairs sq.m the kitchen
time –out er Cabinets and at a
or want to Locker convenient
rest and Bed time when
place their they need it.
belongings

21.68
Motor Place to Customers sq.m Accessible to
and Car park their Staffs ( Customers,
Parking Vehicles Manager Motorcyc Staffs, Riders
Space Security Guard le)

30.24
sq.m
Car)

H. Security

The Mood lift café would install close circuit television (CCTv) camera on all floors
and outside the shop, install an alarm system that would alert us, a security company,
and the police will assist in scaring off would-be intruders and initiating a response and

24
hire some security personnel as well to keep customers and staff safe from crime and
vandalism and to prevent any kind of accidents or other problems. Should have a list of
emergency numbers posted at work and on their cell phones so that they can notify the
manager and other employees in the event of an emergency.

I. Working Hours

Working hours is the period that a person spends at paid labor. The term "working
hours’/Business hours" refers to the "open" and "closed" schedule that a business
determines for its operations. Small and large businesses adhere to a wide range of
business hours depending on such factors as customer expectations, technology, and
seasonal fluctuations in business. Our shop serves from Mondays to Sunday ‘s from 9 a.m.
until 10:00 p.m. Our shop also includes delivery services; delivery service is the process
of transporting goods from a source location to a predefined destination. Taking good
control of the delivery process to make sure that the product is delivered to the
customers on time. It may lead to the efficiency of businesses being increased and the
amount of time and effort spent can be reduced in dealing with deliveries. Furthermore,
the reputation of businesses can be increased as the product to be delivered is on time
often. It may produce the constant promises to build upon customer’s trust in the
company.

J. Delivery Service

This study aims to have an online transaction to help the customers make it convenient
to buy the product. Also, by using social media platforms such us Facebook, twitter and
Instagram to promote and also consider the health of our customer due to the pandemic.
In this way, the Café can connect to the customer widely and conveniently.

25
 CHAPTER III

MARKETING ASPECT

This chapter presents the aspect of marketing that will cover the market
competition, demands, pricing, and promotional strategies.

A. Marketing Condition

The nature of Mood Lift Café which will be in San Jose Road, Zamboanga city is a for
profit institution at the same time our café provides a place to gather, work, and drink.
The primary market for the Mood Lift Café is the beverages and snacks that will be sold.
Based on the list, it can be noted that there are a lot of coffee shops in Zamboanga City of
the same services as our café offered, our cafe has smart use of atmospherics and not
only help us attract more customers, but also create a space in which they'll savor both of
their coffee and their experience in our establishment.

B. Marketing Competition

Before starting our coffee shop, it is important to analyze the Direct competitors
of our coffee shop. The most typical reason behind the popularity of coffee here in the
Philippines is its energy-boosting effects. Most Filipinos see it as an instant pick-me-up
when they're feeling under the weather and to keep them awake while at work. There are
about 20+ coffee shops here in Zamboanga city to name some direct competitors are
Daydream Cafe, Coffee Hour and Bo’s Coffee and most of them are already known. Mood
lift café's mission is to provide the highest quality of food and beverages especially coffee
market for a reasonable price that has a different variety of flavor to choose. Our café
26
wants to be in the business of helping the customer relieve their daily stress activity by
providing peace of mind through great ambiance, convenient location and best customer
service. Also, Mood Lift Café is a gathering spot in the center of the community where
people can meet up with friends, get up on the latest gossip, relax, eat a snack, and, of
course, enjoy a delicious cup of coffee. Alternatively, a businessperson can catch up on
emails or conduct fewer formal meetings with clients while away from the office.

C. Marketing Demand

Mood Lift Café can provide a safe space and a pleasant environment for the customers. It

also gives customers space to socialize and pass the time whether individually or in a

small group. Mood Lift Café provides high quality goods and services such as Hot and

Cold beverages and as well as food products. Beverages include local coffee, espresso,

cappuccinos, cafe lattes, iced blended and smoothies. Food products include macaroons,

fries, mozzarella sticks and waffles such as chick n’ cone, waffle burger and ice cream

waffle. Pricing per customer during a particular period depending on the price of

different quantities of goods and services that the customers are willing and able to

purchase.

D. Pricing

The Mood Lift Cafe offers different varieties of flavors that the customer can choose
from, to coffee, smoothies, snacks and more. The price of the food menu depends on what
the customer chooses or orders. Listed below are the proposed prices in Mood Lift Cafe
will institute over each product.

27
 ESPRESSO PRICE

Cafe Tsokolate 110 php

Cafe Mocha 130 php

Cafe Latte 145 php

Vanilla Latte 145 php

Cappuccino 135 php

Espresso 150 php

ICE BLENDED PRICE

Caramel 165php
Macha Cream 175php

Strawberry 160php

Vanilla Cream 110php

Hazelnut 180php

Ube 145php

LOCAL COFFEE

Rose Latte 180php

Malunggay Latte 165php

Latik Latte 165php

Ube Latte 165php

Durian Cappuccino 190php

Kapeng Barako 210php

28
 Robusta Coffee 180php

Excelsa Coffee 165php

Civet Coffee 170php

Rice Coffee 180php

WAFFLES

CHICK N’ CONE PRICE

·Barbeque 180php

·Cheesy 180php

·Spicy 180php

·Honey Buttered 180php

·Sour Cream 180php

WAFFLE BURGER

·Chicken 210php

·Beef 240php

·Pork 210php

·Veggies 200php

·Tuna 230php

ICE CREAM WAFFLE

29
·Cookies N’ Cream 120php

·Chocolate 120php

·Strawberry 120php

·Vanilla 120php

·Mango 120php

·Macha 120php

SMOOTHIES PRICE

Mango 90php

Strawberry 90php

Watermelon 90php

Guyabano 90php

Avocado 90php

Blueberry 90php

O T
ERS
H
Macaroons 50php

Fries 50php

Mozzarellas Sticks 65php

30
E. Marketing Strategy

Mood Lift Cafe is one of the businesses that offers a good ambiance to its
customers that helps them relax and have fun. This business offers the most convenient
coffee in Zamboanga City, and the price depends on what variety they choose. This
market is very competitive in giving good satisfaction.

The list below will be utilized in marketing strategies.

Social media marketing – Our goals in social media marketing are to promote our
products and services and raise brand awareness by providing engaging content and
reaching our target audience through the most popular social media platforms.

Blogging- In online blogging, we integrate it with our social media platforms for higher
exposure. It is one of the easiest as well as best ways to improve our brand in a short
period of time, and we can also get influencers to post on social media about our
products. ⮚ Local advertising and promotion

Online platform, radio, local newspapers, magazines and for the first 7 days,
there will be a grand opening and promotion.

⮚ Online websites and hotlines

Mood lift café will have an online website as well as hotlines to respond to
customers.

⮚ Location post
By advertising our business with all the necessary information, as well to
promote in all forms of social media by advertising in detail.

⮚ Plan and schedule of service

Mood lift café will be open from 9:00 a.m. to 10:00 p.m. and will serve at least
200 customers per day. Clients can also order a drink with a different type of
coffee, and we'll work with them to provide the best service possible. We'll also

31
look for ways to improve our customer experience and serve them to the best of
our abilities.

Activity Completion Date

• Creating a page through social Upon launching the store

media (Facebook and
Instagram)

• Flyers Distributed before 1 week of store opening

• Radio/Magazine Promote before 1 month of store opening.

32
F. SWOT Analysis

33
G. Contingency Plan

RISK
PREVENTION CONTROL CONTIGENCY PLAN
• If business sales begin to • Have personal savings
Business failing drop, promote offers to try from income and profit
while needing to boost sales. from the business to
pay leasehold • Keep an eye on cash flows. cover if the business
begins to fail.

• Reduce prices to lower than • Use psychological pricing

New competitors. and offers quality pizza
competition to • Keep up with any opening to overtake from the
the area offers the new competitors competitors.
affecting may do and try better.
business
• Ensure that the store has the • Ask of any known
correct safety and illnesses that the
Customer hygiene requirements. customer has.
becoming ill • Ensure that the stock use by
date is checked every time
before use.

• Have fire extinguisher and • Get all customers and

Fire blanket in the kitchen employees to safety.

• Introduce something new to • Research into why the

Fluctuation in the try gain new attention Cafe industry has
Food • Create new officers. fluctuated and try
industry solving the issues
within the store.

34
 CHAPTER IV

FINANCIAL ASPECT

A. Initial Capital Requirement:

This chapter presents the financial position of the Mood Lift Café, which have
been deliberated by proponents of this feasibility study and considering the cost of
constructing the building, the materials, equipment’s, furniture, and other expenses such
as salaries and water and electrical expenses incurred to start a business. The
proponents of the business will contribute an equal amount of money and take out a
bank loan to compensate the remaining fund needed. Each proponent agreed to invest
500,000 each, since there are 10 proponents for the business, it shall sum up to
5,000,000 as capital. The following shows the breakdown of initial investment.

Acquisition of Fixed Assets:

Building Construction ₱ 991,778

Labor 80,000
Materials and Equipment 534,242

Land 2,200,000

Office Furniture and Fixtures 430,699 4,236,719

Pre-Operational Cost:

Permits and Licenses 9,254

Promotional Expense 94,000

Office Supplies 10,620

Utilities Expense 23,000 136,874

Total Initial Investment 4,373,593

35
 B. Cost and Schedule of Expenses

SCEDULE 1: BUILDING AND CONSTRUCTION EXPENSES

DESCRIPTION QUANTITY UNIT UNIT PRICE TOTAL COST (Php)

I. Site work

Excavation 30 250 7,500.00

Backfilling and compaction 60 510.00 30,600.00

Gravel base 50 1,200.00 60,000.00

40 ft. Shipping container 1 573,628.00 573,628.00

Steel 100 150.00 15,000.00

TOTAL 686,728.00

DESCRIPTION QUANTITY UNIT UNIT PRICE TOTAL COST (Php)

II. Concrete and masonry work

Portland cement 100 Bags 285.00 28,500.00

Sand 300 sacks 35.00 10,500.00

4” Concrete hollow block 500 Pcs 16.00 8,000.00

TOTAL 47,000.00

DESCRIPTION QUANTITY UNIT UNIT PRICE TOTAL COST (Php)

36
III. Electrical

Panel board 8 holes 1 pcs 600.00 600.00

15A, 20A, 30A breaker 2 pcs 200.00 400.00

60A breaker 1 pcs 230.00 230.00

#10 Single Stranded Wire 50 Meter 25 1,250.00

s

#12 Single Stranded Wire 30 Meter 22 600.00

s

#14 Single Stranded Wire 20 Meter 18 360.00

s

6 Watts Light bulbs 14 pcs 105.00 1470.00

Switch and outlets 10 pcs 120.00 1200.00

TOTAL 6,110.00

DESCRIPTION QUANTITY UNIT UNIT PRICE TOTAL COST (Php)

IV. Plumbing works

2x4 septic tank 1 Lot 40,00.00 40,00.00

Pipes and fitting 5 pcs 1,350.00 6,750.00

TOTAL 46,750.00

DESCRIPTION QUANTITY UNIT UNIT PRICE TOTAL COST (Php)

37
V. Steel works

16 mm deformed bar 6m 100 Pcs 200.00 20,000.00

12 mm deformed bar 6m 70 Pcs 150.00 10,500.00

10 mm deformed bar 6m 130 Pcs 120.00 15,600.00

Welding rod 20 Kg 135 2,700.00

# 16 tie wire 30 Kg 50 1,500.00

1”x4” C- purline, 6m 20 pcs 500 10,000.00

¼”x3” angle bar, 6m 10 Pcs 1,035 10,350.00

TOTAL 70,650.00

DESCRIPTION QUANTITY UNIT UNIT PRICE TOTAL COST (Php)

VI. Carpentry work

13 mm plywood 20 Pcs 1,100.00 22,000.00

2x4 12 lumber 20 Pcs 180.00 3,600.00

2x2 16 lumber 10 pcs 150.00 1,500.00

Blind rivet nails 10 Box 200.00 2,000.00

TOTAL 29,100.00

DESCRIPTION QUANTITY UNIT UNIT PRICE TOTAL COST (Php)

38
VII. tinsmithry

Upvc heat resistant roof 20 168.00 3,360.00

TOTAL 3,360.00

DESCRIPTION QUANTITY UNIT UNIT PRICE TOTAL COST (Php)

VIII. Tile works

Porcelain flooring tiles 200 Pcs 105 21,000.00

TOTAL 21,000.00

DESCRIPTION QUANTITY UNIT UNIT PRICE TOTAL COST (Php)

IX. Painting/finishing

Wall enamel 2 Gal 575.00 1,150.00

Quick drying enamel (white) 2 Gal 560.00 1,120.00

Wall latex (army green) 4 gal 575.00 2,300.00

Paint brush 5 pcs 30.00 150.00

Paint thinner 1 gal 320.00 320.00

Sand paper 15 pcs 40.00 600.00

Grout 10 sacks 320.00 3,200.00

TOTAL 15,480.00

DESCRIPTION QUANTITY UNIT UNIT PRICE TOTAL COST (Php)

39
X. Door and window installation

Glass sliding door (waiting 2 20,000.00 40,000.00

area)

Panel door 8 3,200.00 25,600.00

TOTAL 65,600.00

BUILDING CONSTRUCTION SUMMARY

DESCRIPTION TOTAL

BUILDING CONSTRUCTION SUMMARY

I. Site work 686,728.00

II. Concrete and masonry work 47,000.00

III. Electrical 6,110.00

IV. Plumbing works 46,750.00

V. Steel works 70,650.00

VI. Carpentry work 29,100.00

VII. Tinsmithry 3,360.00

VIII. Tile works 21,000.00

IX. Painting/finishing 15,480.00

X. Door and window installation 65,600.00

TOTAL 991,778.00

40
 SCHEDULE 2: ESTABLISHMENT OF FURNITURE AND FIXTURES

ITEM QUANTITY UNIT COST TOTAL COST

Chair
● Café Chair 13,500 12 162,00
● Rattan Chair 9, 150 16 146,400
● Sofa 28,910 2 (Set) 28,910

Table
● Round Table 10,000 4 40,000
● Rectangle Table 12,000 7 84,000

Cabinet (Games, 6,155 1 6,155

Books, Magazine)
Cabinet (Storage 3,800 4 15,200
Room)

Hanging Cabinet 4,228 2 8,456

Cabinet (Games, 6,155 1 6,155

Books, Magazine)

Mirror 1495 6 8,970

CR sink 2059 6 12,354

Kitchen sink 2395 2 4,790

Plants 300 4 1,200

Patio umbrella 1,601 3 4,803

TOTAL 430,699.00

SCHEDULE 3: CONSTRUCTION OF BUIDILNG (LABOR COST)

No. of Construction Completion Date Daily Wages Total Labor Cost

Worker
4 40days 500 80,000

41
SCHEDULE 4: OFFICE SUPPLIES EXPENSE

Item Quantity Unit Price per Unit Amount Cost

Official Receipt 1 Pcs. 10,000 10,000

Machine

Record book 2 Pcs. 80 160

Bond paper 1 Pcs. 5 200
Puncher 1 Pad 200 100
Stapler 1 Pcs. 100 50
Fastener 1 Pcs. 50 100
Ballpen 2 Pcs. 5 10
Total 9 10,620

42
SCHEDULE 5: PERMITS AND LISENCES

A. BUSINESS PERMIT 2 ,370.00

● Mayor's Permit 1,800.00

● Filling 200.00
● Zoning 120.00

● Police Clearance 150.00

● Barangay Clearance 100.00
B. BIR 500.00 ( registration )
C. BUREAU OF FIRE 4,000.00
E. SANITARY PERMIT 2 ,384.00
TOTAL: 9 ,254.00

SCHEDULE 6: PROMOTIONAL EXPENSES

PROMOTIONAL EXPENSES

DESCRIPTION COST FREQUENCY ANNUAL COST

Flyers and brochure 10.00 100 1,000.00

Magazine 5,000 50 25,000.00

Radio 8,000 8,000.00

Newspaper 10,000 50 50,000.00

Social Media 1,000 10,000 10, 000

(Facebook,
YouTube, TikTok)

43
 TOTAL 94,000.00

SCHEDULE 7: Projected Utilities Expense

Description Monthly cost Annual cost

Water consumption 8,000 96,000.00

Electricity 15,000 180,000.00

TOTAL 276,000.00

Assumptions:
1. Water fees are based on the number of expected consumptions by the
consumer.

2. Electric fees are based on the numbers of appliances available in the area.

SCHEDULE 8 : SALARY AND WAGES EXPENSE

Personnel Amount of Amount of Salary Schedule of Duty Total

Salary Yearly per staff
Monthly

1. 1 Café 13,000 156,000 Monday- 156,000

Manager Saturday

2. 2 Cashiers 9,000 108,000 Mon.-Sat. Tue.-Sun. 216,000

3. 2 Cook 8,000 96,000 192,000

Mon.-Sat. Tue.-Sun.

44
4. 2 Service Crew 8,000 96,000 Mon.-Sat. Tue.-Sun. 192,000

5. 1 Dishwasher 8,000 96,000 MondaySunday 96,000

6. 1 Security 9,000 108,000 MondaySunday 108,000

Guard

Monthly Total Amount: 80,000

Annually Total Amount: 960,000

C. PROJECTED PRODUCT COST

The proponents used 3 items of product to determine its projected cost, cost per
unit, sales price, sales, gross income, net income or loss, and cash inflows and
outflows.

Raw Materials:
Café Tsokolate ₱ 60
Mango Ice Cream 75

Smoothes (watermelon) 45

Total cost of raw materials 180

Divided by No. of units /3 60

Manufacturing Overhead:
Plastic Cup 6

Straw 1

45
 Plastic Cellophane 1

Total cost of Manufacturing Overhead 8

Total product cost per unit ₱ 68

Projected Yearly Production Cost

Cost per unit Average Daily Monthy Yearly Production

customers (x200) Production Cost Cost (x12months)
(x30days)

Direct Materials 60 12000 360,000 4,320,000

Manufacturing 8 1600 48,000 576,000

Overhead

D. COST OF GOOD SOLD

Statement of Cost of Good Sold

Beg. Inventory -

Add:

Direct Materials 4,320,000

Manufacturing Overhead 576,000

Cost of Good Sold: 4,896,000

46
FINANCIAL SALES AND ASSUMPTION

Expected # of Minimum Expected Expected Expected

client purchase income day income month income year
volume

200/ day 110 22,000 660,000 7,920,000

Considering the capacity of the area of the business, together with the number of hours a
customer stays inside the business, 200 customers is feasible. Notwithstanding the
number of customers who order their drinks for takeout

PROJECTED SALES (YEAR OF 2022 – 2024)

2022 2023 2024

Target Customer 200 220 250

Monthly Income 660,000 726,000 825,000

Annual Total 7,920,000 8,712,000 9,900,000

E. INCOME STATEMENT

Mood Lift Café

Statement of Income and Expenses

For the year ended December 31, 2022

Sales: ₱ 7,920, 000

Less: Cost of Good Sold 4,896,000

Gross Income: 3,024,000

47
 Less: Operating Expenses

Office Supplies Expense: 10,620

Advertising Expense: 94,000

Salaries and Wages Expense: 960,000

Permit and Licenses: 9,254
Utilities Expense: 276,000

Total Operating Expenses: 1,349,874

Expense before Income Tax (EBIT) 1,674,126

Less: Income Tax (32%) 535,720.32

Net Income: ₱ 1,138,405.68

F. CASHFLOW STATEMENT

Mood Lift Café

Projected Cash Flow Statement

For the year ended December 31, 2022

Cash Inflows:

Beginning Cash

48
 Partner’s Capital ₱ 5,000,000

Sales: 7,920,000

Total Cash Inflows: 12,920,000

Less: Cash Outflows:

Cash used in manufacturing 4,896,000

Cash paid for operating expenses 1,349,874

Cash used to acquire equipment 534,242

Cash used to acquire furniture and fixtures 430,699

Cash Paid to BIR 535,720.32

Total Operating Expenses 7,746,535.32

Cash Balance, End ₱ 5,173,464.68

G. CONTINGENCY FUND

RISK RATE OF RISK Amount Allocated

(626,407)
Customer becoming ill 30% 187,922

49
 New competition to the 20% 125,281
area of affecting business

Fluctuation in the food 40% 250,563

industry

Fire 10% 62,641

Total 100% 626,407

Available amount of Contingency Funds= Capital Investments-Total Initial

Investments
=5,000,000-4,373,593
=626,407php.

G. Return of Investment

Return on Investment= Net Income/Capital Investment*100%

= 1,138,405.68/5,000,000*100%
= 0.227*100%
= 23%

CHAPTER V

SOCIO-ECONOMC ASPECT

The chapter includes the socio-economic benefits in the proposed project. The
proposed project aims to help our localities and farmers of the country and to give
healthy snacks to the target market in Zamboanga City.

50
Contribution to Income and Employment

The main goal of a certain business is to have high income especially in the
part of the owner. The business should generate pleasantly relationship between the
manager and employees to attain the main goal of the business which is to have
income. At workers and employees in the business need income to support their own
needs and also for the services rendered in the business. Building up business is a
great opportunity for an employed people to have jobs.

Tax Contribution

The business is expected to give a great contribution to the government in the

form of taxes. The tax payment from the business would help the localities as well as
the economy in its future project especially for the people that will benefit. This
would help the people to sprightlier.

Contribution to the Society

The proposed business will provide help to the community and our countrymen.
We recognize that the nature of the business, especially the partnership focuses on
quality affordable nutritious menu of Mood Lift Cafe, give us a unique opportunity
to make a very positive contribution to the health of the customers we serve.

CHAPTER VI

SUMMARY OF FINDINGS, CONCLUSION, AND RECOMMENDATION

A. Summary of Findings

1. The business will have its initial capital from all of the proponents of the business and
said amount will be equally divided among themselves.
2. The business used different marketing strategies and pricing research to effectively
come up with a profitable business.
51
 3. The business carefully and systematically reviewed the target market of the business,
as well as, the pricing of each of the products that will be offered by the business.
4. The business made sure that all equipment and furniture that will be needed for the
business can last long and will be of the best quality.

B. Conclusion

1. The business is feasible in all aspects and is ready to be undertaken.

2. Opening a business is not a simple task to do. Doing extensive research in all
aspects of the business to determine its feasibility.
3. There is a market for such a business in the location of the business that Mood Lift
Cafe can penetrate.
4. There is a demand that the business can fulfill in the market.

C. Recommendation

1. The business should continue to rise among its competitors by expanding product
offering and creating a strong brand awareness among prospective customers.
2. The business should employ best practices from other established coffee shops in
making sure that they are practicing the most efficient and effective practices in
the day to day operation of the business.
3. The owners of the business should invest in the research and development to
make sure that the business will always be updated to the current trends and
needs of the customers.

52
 EXECUTIVE SUMMARY

A. Project Name: Mood Lift Cafe

B. Location:
The Mood Lift Café will be located at San

Jose Road, Zamboanga City fronting Shell Gas

Station and is about 190 meters from Brent

Hospital and Colleges.

C. Proponent:

D. Project Description:

This proposal is to introduce the Mood Lift

Café to all people who reside in Zamboanga

and from provinces who came in the City.

E. Objective Of the Project:

To determine the feasibility of producing and selling Mood lift

Café’s products from Brent Hospital and College nursing

students.

The specific objective:

• To determine the market ability of the product.

• To determine the cost of the production.

• To determine the selling price of the item.
• To determine the size that will be offered to the

53
 customer.

• To determine the return on investment of this kind of

business.

F. Project Benefit. Since the proponents are a startup business the

benefits of this project would be a good advantage
for us. Customer experience that typically measured
in terms of customer satisfaction, customer lifetime
values preventing customer churn by fixing a
problem with the products, services, and
experiences of the customers. The knowledge by
developing the proponent’s capabilities in the team
with training, knowledge tools and knowledge
resources, the proponents will be happy to the
success of the feasibility.

G. Project Cost:
The project cost has an estimated cost of
₱ 4,373,593.

H. Project Funding:
The initial capital of Mood Lift Cafe is
partly funded by the capital contribution
of the proponents. Each proponent will
contribute ₱500,000 for the first year.

54
BIBLIOGRAPHY

APPENDICES

Business Permit

Certificate/Authorization

Electrical Permit

D. BIR

55