Midterm project

in
Specialized Food and
Beverage Service

By:

Dumaran, Cherremie

Maca, Jairah Kristine

Perocho, Donnabille

Roz, Sheila Mae

Sabado, Purshia Nikka

1. Choose Your Establishment Type:

- Coffee Shop

2. Business Concept and Description:

 Describe your chosen establishment type:

- “Bean Around the World” is a coffee shop that offers various types of coffee, espresso,
latte, and cappuccino. Bean Around the World is not just a coffee shop; it's a passport to
a global coffee adventure.
- Location: “Bean Around the World “ is located at 6000 Archbishop Reyes Avenue,
Cebu City Philippines. The café opens at 9 am to 10 pm in weekdays, and every
weekends the café will be open from 10 am to 10 pm.

- Ambiance: As you enter this cozy establishment, you're greeted by the enticing aroma
of freshly roasted coffee beans that have journeyed from the far reaches of the globe to
your cup.

- Theme: The décor is a delightful mix of worldly elements, with vintage suitcases, world
maps, and travel memorabilia adorning the walls. The inviting ambiance invites you to
embark on a coffee expedition like no other. Seating area is designed to mimic the
coziness of an international café. There are Moroccan-inspired cushioned corners,
French-style bistro tables, and even a bamboo-filled section reminiscent of Southeast
Asian cafes. It’s a place where you can chat with friends, read a book, or get some work
done, all while savoring a cup of coffee that has crossed borders

Menu: The "Bean Around the World" menu is a world tour in a cup. From the bold and
rich espresso shots of Italy to the smooth pour-over brews of Ethiopia, every coffee
selection offers a taste of a different corner of the world. The “Bean Around the World”
also offers cold drinks such as iced coffee and iced tea, and other non-caffeinated
beverages as well as light snacks, sandwiches, muffins, fruit, or pastries. The baristas
 are your knowledgeable guides, helping you navigate this global coffee journey with
recommendations based on your flavor preferences.

"Bean around the World" is more than a coffee shop; it's a cultural and caffeinated
experience, inviting you to explore the diverse flavors and stories each coffee bean
offers. It's the perfect spot for coffee lovers with a wanderlust for the world's best brews.

 Target Audience “Caffeine Enthusiasts” includes:

 Coffee Connoisseurs - People who appreciate high-quality coffee, enjoy trying

different coffee beans, and may have their coffee-making equipment.

 Tea lovers (elderly)- Individuals who have a passion for various types of tea, tea
culture, and might seek premium tea products.

 Office Workers, Call Center Agents – Professionals who rely on caffeine to stay alert
during long working hours.

 Students, (HS & Colleges)- who use caffeine to stay awake and focused during study
sessions.

 Locals and Regulars – People in the neighborhood Cebuano’s who visit the coffee
shops regularly.

 Tourists – Visitors to the area who might be drawn to a coffee shop with a unique,
international appeal.

3. Market Research:

 Identify Competitors

 Local Observation and Use a third party for survey– To identify competitors we will
hire research firm to perform the observation and survey competitors may be more
willing to participate in surveys if they are conducted by a neutral third party. Enlist their
names, and any unique features.
  Online Search – We will utilize search engines like Google and social media platforms
for coffee shops in our area. Google Maps, Yelp, and Facebook can be useful for this.

 Use a Third Party: We will hire research firm to perform the survey, competitors may
be more willing to participate in surveys if they are conducted by a neutral third party.

 To identify Potential Customers:

 Demographics – We will analyze the demographics of the area where our coffee shop
is located. Consider factors such as age, gender, income, and occupation.

 Local Competition – As a business owner we will study our local competition. Identify
who frequents other coffee shops in our area and What are their preferences

 Market Research – We will conduct surveys or market research to gather information

from locals about their coffee preferences and habits.

 Promotions and Marketing – Every weekends the first 10 customers will have 20% off
of any purchase over 300 pesos and for those students we will give coupons 15% off
every Friday for their hard work.

4. Marketing Plan

Develop a Marketing Strategy, including advertising and promotion

 Marketing Strategy

 Local Partnerships – Bean around the world will partner with local businesses and
offer its employees VIP pricing for its coffee and food items.

 Content Marketing – Bean Around the World will start a blog on our website with
articles about coffee-related topics, brewing tips, and local community news.

 Influencer Marketing – Bean Around the World will accept collaboration with local
influencers who have a following in our area as to promote our very own coffee shop.

 Advertising Strategy included:

  Social Media Advertising – We will Use platforms like Facebook, Instagram, and
Twitter to run targeted ads. These platforms offer advanced targeting options based on
demographics, interests, and location.

 Paid Advertising (Google ads, Facebook ads) – Bean Around the World will invest in
Paid Advertising such as Google ads, Facebook ads to promote our products.

 Promotion Strategy

 Events and Promotions (Coffee Tasting) – Bean Around the World will host coffee
tasting and let customers try different coffees and find their favorite. This can build
relationships with customers and educate them about coffee

5. Financial Plan

Expenses

INSURANCE ₱ 60,000Per/Month

LOGO DESIGN ₱ 40,000

STAFFING ₱ 120,000Per/Month

MARKETING ₱ 17,000Per/Month

PERMIT/LICENSE ₱ 50,000Per/Month

DÉCOR/FURNITURE ₱ 500,000

UTILITIES ₱ 60,000Per/Month

INVENTORY ₱ 350,000Per/Month

CONTINGENCY ₱ 1,000,000
TOTAL = 2, 197,000

Assets

LAND ₱ 500,00

BUILDING ₱ 1,000,000

EQUIPMENT ₱ 1,500,000/2,000,000

TOTAL = 3,500,000

Start-Up Funding

INVESTOR 1 ₱ 2Million

INVESTOR 2 ₱ 2Million

INVESTOR 3 ₱ 2Million

INVESTOR 4 ₱ 2Million

OWNER 5 ₱ 2Million

TOTAL = 10 Million
 Revenue Projections

Income statement 2023 2024 2025

Revenue 8,100,000 12,240,000 15,120,000

Cost of Goods Sold 4,200,000 4,800,000 6,000,000

Gross Profit 3,900,000 2,440,000 9,120,000

Expenses

Marketing (Ad, Promotion) 204,000 300,000 360,000

Staffing 1,440,000 1,965,000 2,995,200

Permit/License
600,000 720,000 780,000
Utilities
720,000 960,000 1,200,000

Total Expenses 2,964,000 3,945,000 3,784,800

Earnings before TAX 936,000 3,495.000

Tax 0.50 .50 x.50

Net Income 468,000 per yr./ 39,000 per 1,747,500 per yr./145,625 1,892,400 per yr./1
per month
 month per month

6. Operations Plan

Pre opening

 Prepare today’s food and beverage stocks as well coffee cups, tissue
 Clean and set the area, furnitures and Rest room.
 Keep enough change.
 Run the water and electricity.
 Check employee attendance
Café Operating
 Maintain the cleanliness and the tidiness of the café. Always check the food and
beverage stock
 In every shift. Behave the employees’ attitude over Customers’ satisfaction.
 Count revenue of every shift.
Allocating Working Hours
 1st Shift From 9.00 am to 4.00 pm.
 2nd Shift From 4.00 pm to 10.00 pm.
The Employees Duty
 Employees should be one hour coming earlier to prepare themselves and have daily
briefing.
 Employees should leave the café one hour later to make final checking and brief the
next shift.

7. Technology integration

 Point of Sale (POS) System - The Bean Around the World will employ a modern POS
system that allows for quick and efficient order processing. This system will streamline
 the ordering process, reduce errors, and enable easy customization of orders to meet
customer preferences.
 Online Ordering and Mobile App - Bean Around the World will offer an online ordering
platform and a mobile app for customers to place orders in advance. This technology
enhances convenience, reduces wait times, and allows for contactless payments.
 Digital Menu Boards – Bean Around the World will invest in menu boards will display
real-time menu items, prices, and promotions. They can be updated instantly, making it
easier to showcase daily specials and provide accurate information to customers.
 Customer Relationship Management (CRM) Software – Bean Around the World will
use CRM software, the coffee shop can collect and analyze customer data to tailor
promotions, loyalty programs, and special offers. This enhances the customer
experience by offering personalized recommendations and rewards.
 Wireless Internet (Wi-Fi) - Free and reliable Wi-Fi will be available for customers. This
not only attracts tech-savvy patrons but also creates a comfortable environment for
remote workers and students.
 Inventory Management System - An integrated inventory management system
ensures that the coffee shop maintains optimal stock levels, reducing the risk of running
out of key items during peak hours and minimizing waste.
In Conclusion These technology tools and systems will collectively enhance customer
service by improving order accuracy, reducing wait times, and personalizing the
experience. They will also streamline operations by optimizing inventory management,
ensuring data security, and increasing marketing effectiveness, ultimately contributing to
the success of the "Bean Around the World" coffee shop.

8. Sustainability and Social Responsibility:

 Sustainable Sourcing - Bean Around the World" will source its coffee beans from
ethically and sustainably managed farms. This ensures that the coffee production is
environmentally responsible and supports fair labor practices.
 Local and Organic Ingredients - The coffee shop will prioritize local and organic
ingredients whenever possible. This reduces the carbon footprint associated with
transportation and supports local farmers.
 Zero-Waste Practices - To minimize waste, the coffee shop will implement practices
like using reusable or compostable cups and utensils. Recycling bins will be available
for customers, and efforts will be made to reduce single-use plastics.
 Energy Efficiency - The establishment will invest in energy-efficient appliances and
lighting to reduce energy consumption. Solar panels may be installed to generate clean
energy.
 Community Engagement - Bean Around the World" will actively engage with the local
community. This may include partnerships with local charities, hosting community
events, or donating a portion of profits to causes like education, hunger relief, or
environmental conservation.
 Employee Welfare - The coffee shop will prioritize fair wages and benefits for its
employees. Training programs and opportunities for career advancement will be
provided to create a supportive work environment.
 Educational Initiatives - "Bean Around the World" will educate customers about
sustainability and responsible coffee consumption. Information on the coffee's origin,
farming practices, and environmental impact will be shared through in-store materials
and the website.
 Waste Reduction and Recycling - A comprehensive waste reduction program will be
in place, with recycling and composting bins for both customers and staff. The goal is to
divert as much waste from landfills as possible.
 Conclusion - These sustainability and social responsibility initiatives demonstrate
"Bean Around the World's" commitment to ethical and environmentally conscious
business practices, while also engaging with and giving back to the local community.

9. Challenges and Mitigation Strategies

 Competition - Challenge: Facing competition from established coffee chains and local
cafes. Mitigation Strategy: Focus on unique offerings, personalized service, and
community engagement. Continuously innovate the menu to stand out.
 Seasonal Fluctuations - Challenge: Seasonal changes in customer traffic. Mitigation
Strategy: Offer seasonal promotions and diversify the menu to attract customers year-
round. Consider catering to local events and festivals.
 Rising Costs - Challenge: Escalating costs of coffee beans, rent, and labor. Mitigation
Strategy: Regularly review expenses and adjust pricing if necessary. Explore bulk
purchasing options for coffee beans and implement cost-saving technologies.
 Staff Turnover - Challenge: High turnover in the service industry. Mitigation Strategy:
Invest in employee training, offer competitive wages, and create a positive work
environment to reduce turnover. Develop a strong company culture to retain talent.
 Regulatory Compliance - Challenge: Navigating local health and safety regulations.
Mitigation Strategy: Stay informed about and comply with all regulations. Regularly train
staff on health and safety protocols and conduct inspections to ensure compliance.
 Supply Chain Disruptions - Challenge: Potential disruptions in the supply chain,
affecting the availability of key ingredients. Mitigation Strategy: Diversify suppliers,
maintain a safe stock of essential items, and have contingency plans in place to adapt
to supply chain disruptions.
 Online Reviews and Reputation Management - Challenge: Negative online reviews
can impact reputation. Mitigation Strategy: Monitor online reviews and promptly address
any concerns or negative feedback. Focus on delivering excellent customer service to
generate positive reviews.
 Technology Issues - Challenge: Technical glitches with POS systems or online
ordering. Mitigation Strategy: Invest in reliable technology solutions, regularly update
software, and provide staff with training to handle technical issues promptly.
 Marketing Effectiveness - Challenge: Ensuring marketing efforts yield results.
Mitigation Strategy: Regularly assess the impact of marketing campaigns and adjust
strategies as needed. Use customer feedback and data analytics to fine-tune marketing
efforts.
 Sustainability Costs - Challenge: Implementing sustainable practices can be cost-
intensive. Mitigation Strategy: Gradually introduce sustainability initiatives to spread
costs over time. Highlight these efforts to attract eco-conscious customers who are
willing to pay a premium.
 Conclusion - By proactively addressing these challenges with well-thought-out
strategies, "Bean Around the World" can improve its chances of long-term success and
sustainability in a competitive coffee shop industry.