A FEASIBILITY STUDY OF BARAKOFFEE: A TWO DIMENSIONAL BLACK AND

WHITE CAFÉ IN NASUGBU, BATANGAS

A Feasibility

presented to

the faculty Committee of the College of Accountancy, Business Economics and

International Hospitality Management

BatStateU ARASOF

In partial fulfillment

of the requirements for the degree

Bachelor of Science in Business Administration

major in Marketing Management

by

Catherine N. Gloria

Mae Ann N. Hernan

Angelika B. Javier

Jizelle M. Ricalde

May 2021
 ACKNOWLEDGEMENT

The researchers would like to offer their deepest gratitude of concern and sincere

appreciation to the following individuals who extend their effort toward the consideration and

accomplishment of the feasibility study.

The proponents spent effort, time and money to finish this feasibility study. Despite limiting time

constraints, they have been fortunate to meet men and women who made this journey possible.

To them, we would like to extend our deepest sincerity and appreciation and gratitude.

The proponents wholeheartedly thank Assoc. Prof. Allan Noel G. Tiangco Feasibility Study

adviser and instructor imparting his knowledge, for his guidance in this study and encouraging

the proponents to work harder for betterment’s sake.

To our family and friends for their invaluable support and assistance that definitely helped us to

go a long way.

And all, to our ALMIGHTY GOD, who bestowed strength, fighting spirit, health, patience,

perseverance and enough knowledge for us to overcome and conquer all the hardships and

difficulties as went through to complete this study.

iii
 EXECUTIVE SUMMARY

Coffee has been a growing industry for the past several years. It is one of the world’s favorite

beverages and a major source of caffeine for many students and employees, coffee continue to be an

integral factor in society’s daily routine. According to the article “Specialty Coffee Shops Market (2020-

2024)” published in www.businesswire.com,Technavio has been monitoring the specialty coffee shops

market and it is poised to grow by USD 80.78 during 2020-2024, progressing at a CAGR of almost 13%

during the forecast period.

According to the Agricultural Cooperative Development International and Volunteers in Overseas

Cooperative Assistance (ACDI-VOCA), an American nongovernment

organization giving specialized bolster to the Philippine coffee farmers, there are positive patterns for the

Philippine coffee industry – coffee consumption is on the uptick and there are presently more skilled

farmers. The ACDI/VOCA notes that Philippine coffee has as of now entered the markets in Canada,

Japan, and Unused Zealand which the household showcase proceeds to be strong, especially for

specialized coffee (Arabica coffee with a glass score of at least 80 points). According to Statista (2021),

revenue in the Coffee segment is projected to reach US$5,292m in 2021. The market is expected to grow

annually by 10.4% (2021-2025). The average revenue per person in the Coffee segment is expected to

amount to US$47.65 in 2021.

In conclusion, the coffee market is right now encountering impressive development in economies around

the world, with the rise in urbanization and the request for speedy, quality item fueling the development.

This expected growth indicates that there is an opportunity in the café’ industry and coffee is expected

to increase in the future.

The result of the demand and supply analysis showed that there is a market gap that the

proposed business can fill in and the proposed business estimate to have 0.25% market share

iv
based on the projected demand. Based on the result of the survey, the estimated number of

clients is 215 availing the services either once a week, twice a week, thrice a week, once a

month, twice a month and thrice a month with projected gross revenues of P9,252,244.00,

P9,744,681.00 and P10,169,940.00 for years 2021, 2022 and 2023 respectively.

The chapter two showed the marketing plan that will be used by the business. The target

market of the business is the income earner residents of the Municipality of Nasugbu, Batangas

and the principal place of business is also located therein. The main product to be offered will be

the Barakoffee that amounting to Php55.00. Other product to be offered are espresso coffee, ice

blended coffee, coffee free, milk tea, pastries, cakes and cookies. The business will be offered

through various promotional tools with estimated advertising expenses of P 6,000.00 allocated to

posters, tarpaulins, leaflets and flyers. Lastly the key advantages of the business are its

investment to people, product and the service to be offered.

Barakoffee Two-Dimensional Black & White Café offers a good service and best quality

of products for coffee lovers out there in Nasugbu. The office will be located at J P Laurel St.,

Abantihan Building, third floor, 4231, Nasugbu, Batangas and the business will open from 7:00

am to 4:00 pm every Mondays to Saturday. The business’s layout is well-organized, as is the

service procedure for obtaining the business’s products. Proponents must invest in equipment,

leasehold improvements, supplies, and expenses just as they would in any other business, to

provide an excellent service to their customers. The business will also ensure that good waste

management policies are followed to avoid environmental complaints.

The business will be formed as a Limited liabilities partnership type of business which

consists of four partners namely Catherine N. Gloria, Mae Ann N. Hernan, Angelika B. Javier
and Jizelle M. Ricalde. Each partner will represent the business, and has equal rights in the

management, decision making and control of the business. The organizational structure was

created with the various roles within the company in mind, such as in operation, finance and

other functions. In this regard, the business personnel requirements include the general manager,

marketing personnel, finance personnel, operational manager, motorcycle driver, pastries

supplier and barista. Organizational policies are also intended to act as basic instructions for

achieving the business’s goals. Employee pay and benefits are structured equitably, taking into

account their duties and responsibility. The proponent also ensures that all legal conditions are

met in order to operate and run the proposed business freely and legally, and that the

management can pay all necessary taxes.

Furthermore, the proponents have identified nineteen direct competitors which

were from the Municipality of Nasugbu, Batangas that also offered the same product like ours.

The core competency of the business is its two-dimension black & white theme, different

varieties of drinks and pastries, and its human resources. The main objective of the business is to

provide our customers the world’s best café with an excellent service, friendly and comfortable

atmosphere, offering a world class of coffee experience. The SWOT Analysis showed that the

strength of the company is attractive store design/layout, trained employees, good choice of

location, competitive price, good quality products and service. On the other hand, the business’s

weakness is new in business and its lack of brand recognition.

The business will grab the opportunity to attract new customers through special offers,

build customer relationship, demand for home delivery service and offering other products. The

key threats of the business are consumers become price sensitive, the existing competitors and

increase in supplier cost. The business created a strategic action plan to prepare for its
weaknesses and the risks of challenges it faces, including a successful compensation plan,

emergency training and the implementation of a contingency and business continuity plan.

The projected cost of the business is Php 2,800,000.00, where the partners will invest.

The amount would be used to buy the necessary equipment and supplies for the operations. For

the year 2021, the business expects a return on investment of 137.95%. The expected return on

investment for the next two years is 140.63 percent, with 147.08 percent for 2022 and 2023.

The proposed business will be established not only for the purpose of making money or

profit, but also to legally and morally resolve some community issues. The economic desirability

of the business is to help lessen the number of unemployed people in a community, by giving an

opportunity to those unemployed people to apply and get the job in the proposed business.

Furthermore, social desirability of the business is to help the Municipality of Nasugbu to attract

customers and tourist through its ambiance and looks, featuring the five (5) tourist attraction here

in Nasugbu, Batangas. Lastly, the environmental desirability of the business is to help the

government in improving the state's economic condition as it pays the taxes needed to pay. It will

lessen the environment impact since the business will be using recyclable plastic and materials to

reduce the number of wastes in our surroundings.

 TABLE OF CONTENTS

PAGE

TITLE PAGE ………………………………………………………………………………... ii

ACKNOWLEDGEMENT…………………………………………………………... iii

EXECUTIVE SUMMARY ………………………………………………………..... iv

TABLE OF CONTENTS.……………………………………………………...……………. v

LIST OF TABLES ………………….………………………………………………. vi

LIST OF FIGURES ………………………………………………………………… vii

CHAPTER 1: BACKGROUND OF THE BUSINESS AND INDUSTRY

Overview of the Business…………………………………………………………….. 1

Current Situation of Business………………………………………………………… 2

Vision…………………………………………………………………………………. 3

Mission………………………………………………………………………………... 4

Objectives of the Project……………………………………………………………… 4

Industry Background and Overview………………………………………………….. 4

Growth Potential and Outlook in the Future………………………………………….. 6

CHAPTER 2: MARKETING PLAN

Objectives of the Chapter …………………………………………………………….. 8

v
Research Design and Methodology…………………………………………………... 8

Data Gathering Instruments…………………………………………………………... 9

Data Gathering Procedure…………………………………………………………….. 9

Respondents of the Study……………………………………………………………... 10

Target Market…………………………………………………………………………. 10

Market Demand……………………………………………………………………….. 11

Demand and Supply Analysis………………………………………………………… 12

Projected Revenue…………………………………………………………………….. 13

Market Share………………………………………………………………………….. 25

Product Strategies…………………………………………………………………….. 26

Pricing Strategies……………………………………………………………………... 27

Placement and Distribution Strategies……………………………………………….. 31

Promotion Strategies …………………………………………………………………. 31

People Strategies……………………………………………………………………… 33

Physical Evidence…………………………………………………………………….. 34

Process Strategies……………………………………………………………………... 34

Generalization………………………………………………………………………… 35

CHAPTER 3: TECHNICAL SPECIFICATION

Objectives of the Chapter ……………………………………………………………. 36

Service Description…………………………………………………………………… 36

Product Description…………………………………………………………………… 38
Service Procedure…………………………………………………………………….. 39

Product Procedure…………………………………………………………………….. 40

Delivery Procedure…………………………………………………………………… 41

Business Schedule…………………………………………………………………….. 42

Store Layout and Location……………………………………………………………. 43

Leasehold Improvements ……………………………………………………………. 44

Machinery and Equipment…………………………………………………………… 45

Furniture and Fixtures………………………………………………………………… 47

Supplies……………………………………………………………………………….. 49

Training Expenses…………………………………………………………………….. 60

Rental Expenses………………………………………………………………………. 60

Fuel, Gas and Oil Expenses…………………………………………………………... 61

Repair and Maintenance Expenses…………………………………………………… 61

Utilities………………………………………………………………………………... 62

Representation Expenses……………………………………………………………… 63

Miscellaneous Expenses ……………………………………………………………... 63

Waste Disposal ……………………………………………………………………….. 64

Generalization………………………………………………………………………… 64

CHAPTER 4: ORGANIZATION AND MANAGERIAL SPECIFICATION

Objectives of the Chapter …………………………………………………………….. 65

Form of Ownership…………………………………………………………………… 65
Organizational Structure……………………………………………………………… 66

Manpower Requirements……………………………………………………………... 67

Workers Compensation……………………………………………………………….. 70

Company Policies…………………………………………………………………….. 71

Legal Requirements …………………………………………………………………. 73

Generalization………………………………………………………………………… 74

CHAPTER 5: STRATEGIC PLAN

Objectives of the Chapter ……………………………………………………………. 75

Existing Competitors…………………………………………………………………. 75

Potential Customers…………………………………………………………………... 76

Core Competence……………………………………………………………………. 77

Market Position and Image…………………………………………………………… 78

SWOT Analysis………………………………………………………………………. 78

Strategic Action Plan…………………………………………………………………. 81

Generalization………………………………………………………………………… 81

CHAPTER VI: FINANCIAL PLANS

Objectives of the Chapter ……………………………………………………………. 83

Total Project Cost…………………………………………………………………….. 83

Capital Requirements…………………………………………………………………. 85

Source of Funds………………………………………………………………………. 85

Financial Assumption………………………………………………………………… 85
Financial Statements………………………………………………………………….. 91

Return on Investment…………………………………………………………………. 96

Generalization………………………………………………………………………… 96

CHAPTER VII: SOCIO-ECONOMIC CONTRIBUTION

Objectives of the Chapter ……………………………………………………………. 97

Economic Desirability………………………………………………………………… 97

Social Desirability……………………………………………………………………. 97

Environmental Desirability…………………………………………………………… 98

Generalization………………………………………………………………………… 99

LIST OF TABLES

PAGE

Table 2.1 Willingness to avail the product…………………………………………. 11

Table 2.2 Market Gap………………………………………………………………. 12

Table 2.3 BARAKOFFEE Café Projected Revenue ………………………………. 14

Table 2.4 BARAKOFFEE Café Total Projected Revenue ………………………… 24

Table 2.5 Market Share…………………………………………………………….. 25

Table 2.6 Main Product…………………………………………………………….. 28

Table 2.7 Espresso & Coffee………………………………………………………. 28

Table 2.8 Ice blended Coffee……………………………………………………….. 28

Table 2.9 Coffee Free………………………………………………………………. 29

Table 2.10 Pastries, Cakes, and Cookies…………………………………………… 29

Table 2.11 Milk tea ………………………………………………………………… 30

Table 2.12 Promotional Mix Strategies ……………………………………………. 32

Table 3.1 Daily Operating Hours…………………………………………………… 42

Table 3.2 Leasehold of Improvements ……………………………………………. 44

Table 3.3 Machinery & Equipment………………………………………………… 46

Table 3.4 Furniture and Fixture……………………………………………………. 48

Table 3.5 Ingredients Supplies……………………………………………………... 49

vi

Table 3.6 Pastries Supplies…………………………………………………………. 54

Table 3.7 Office Supplies…………………………………………………………... 56

Table 3.8 To-go Supplies…………………………………………………………… 58

Table 3.9 Cleaning Supplies……………………………………………………….. 59

Table 3.10 Training Expenses……………………………………………………… 60

Table 3.11 Rent Expenses………………………………………………………….. 60

Table 3.12 Fuel, Gas and Oil Expenses……………………………………………. 61

Table 3.13 Repairs and Maintenance Expenses……………………………………. 61

Table 3.14 Utilities and Communication Supplies…………………………………. 62

Table 3.15 Representation Expenses……………………………………………….. 63

Table 3.16 Miscellaneous Expenses ……………………………………………….. 63

Table 4. 1 Compensation Schedule………………………………………………… 70

Table 4.2 Business Registration Fees………………………………………………. 73

Table 6.1 Total Projected Cost……………………………………………………... 84

Table 6.2 Partners Contributions…………………………………………………… 85

Table 6.3 Projected Statement of Financial Position……………………………….. 91

Table 6.4 Projected Statement of Comprehensive Income ………………………… 92

Table 6.5 Projected Statement of Cash Flows……………………………………… 94

Table 6.6 Projected Statement of Changes in Partners Equity……………………... 95

Table 6.7 Return on Investment…………………………………………………….. 96

 LIST OF FIGURES

PAGE

Figure 3.1 BARAKOFFEE; 2dimentional Black and White Theme Café Service 39

Procedure……………………………………………………………………………..

Figure 3.2 BARAKOFFEE Product Procedure……………………………………… 40

Figure 3.7 Delivery Process………………………………………………………….. 41

Figure 3.8 Business Location………………………………………………………… 43

Figure 3.9 Store Layout………………………………………………………………. 43

Figure 4.1 BARAKOFFEE Organizational Structure………………………………... 66

vii
 Chapter 1

BACKGROUND OF THE BUSINESS AND INDUSTRY

Overview of the Business

Coffee shops usually fall into restaurant industry. The restaurant industry is typically

considered part of the hospitality industry and employs a number of different types of

employees, from chefs and waiters to managers and bartenders. The restaurant industry is the

industry of professional restaurants, bars, and other food service providers that allow customers

to enter, order food, and eat on the premises. The COVID-19 crisis has forever altered most

functions of the restaurant industry–how we forecast supply, how we schedule labor, how we

configure our kitchens to meet off-premise demand, how consumers access restaurants in

general.

In a restaurant industry, innovations amplified and there was a tremendous change in

lifestyle of people. From the different parts of the country, that a number of coffee shops

increased and existing coffee shops franchises boomed in different regions like Region IV where

Batangas was very popular to be the key producer of the said Kapeng Barako. As to 2020, a lot

of challenges came up in the farming industry of coffee. When the Taal Volcano erupted in

January 2020, more than 450,000 residents were urged to leave their homes and farms. Damage

to farmland, crops, and livestock was estimated to cost around 577 million Philippine pesos

(around US $11 million) with more than 5,000 metric tons of coffee damaged. However, For the

first time in history, a locally-produced coffee won the 2020 Philippine National Barista

Championship (PNBC). The Coffee professionals in the Philippines hope that a local coffee

winning 2020’s PNCC will help bring attention to locally-produced specialty coffee. The fact

1
that a Philippine coffee won the 2020 PNBC is testament to the fact that local specialty coffees

are improving in quality.

According to the Philippine Coffee Industry Roadmap, the market of coffee shops (e.g.

Starbucks, Figaro, Bo‟s, Coffee Bean and Tea Leaf) has increased. There is a growing market of

retail third-wave (barista, preparation focus) and fourth wave (roaster innovation-roast types, on

demand roasting, home roasting etc.) coffee shops. These are usually patronized by young

professionals and more financially capable individuals who want to relax and catch up with

friends and business associates. Restaurants, fast food chains, donut shops and hole-in-the-wall

eateries also serve coffee. They usually purchase Arabica and Liberica varieties.

The growing consumption of coffee consequently increased the demand for it. One

industry player places total demand at 65,000 tons growing by an annual average of three percent

(3%) over the medium term. Others estimate that demand for Robusta is at a high of 100,000

tons with another 12,000 tons for Arabica, Liberica, and Excelsa. The industry group’s estimated

annual growth rate is 10% to 13%. According to PSA figures, the per capita Consumption of

GCBs for more than 20 years has been 0.3 – 0.5 kg per year.

There’s a promising growth in this industry because of increasing domestic demand in

the future and to participate in the global market. Likewise, we expect more coffee shops to

emerge as Filipinos have embraced “over a cup of coffee” social interaction with family, friends

and Business associates.

Current Situation of Business

As the global pandemic spread all over the world, and affects the lives of many

Filipino’s. It causes stress, frustration and many countries close their airport, and it takes a long

2
series of quarantine and protocol to follow just to enter a country. That's why we decided to

bring the most famous 2 dimensional black &white theme cafe in Nasugbu, Batangas. We want

to bring people Joy and let them forget all the worries, even just for a short period of time. It will

also give opportunities to the batangeuños to experience an instragramble place and remarkable

coffee. Nasugbu is a great location to build up this kind of business because of its large

population and great location. To make our BARAKOFFEE unique to other 2dimensional cafe

because we decided in putting up some features, which include all the beautiful places here in

Batangas like the Fortune Island, Anilao, Calegruega, Mt. Batulao, and Cape Santiago. Batangas

are abundant with Liberica or KapengBarako, we decided to use this kind of coffee to promote

and help local coffee farmers here in Batangas.

Coffee is a high demand beverage nationwide but has become a lifestyle beverage in the

Philippines within the last few years. According to Business Mirror, nine out of ten Filipino

households regularly consume the hot coffee beverage. Opening a coffee shop in the Philippines

would be very ideal since the demand for coffee has increased.

Furthermore, interior design has also a big impact in attracting customers. Having an

exciting and fun decorations give so much joy and love from the customers. Opening a coffee

shop in the Philippines is very beneficial as you will have candidates that will be in need of

employment. Making your candidate list easier to collect as many people loss their job because

of pandemic, but giving a proper training is still a must.

Vision

Barakoffee aims to establish a 2-Dimensional Cafe premier purveyor of the finest coffee

in the world by 2030.

3
Mission

Barakoffee’s mission is to provide our customers the world’s best café with an excellent

service, friendly and comfortable atmosphere, offering a world class of coffee experience.

Objectives of the Project

The main objective of the business plan is to know the feasibility of the Barakoffee: Two

Dimensional Black and White Café;

 To determine the marketability of the business.

 To determine the strategies and technical aspects that is needed in the business plan.

 To identify the organization structure of the business.

 To develop the strategic plan to promote the business.

 To determine the financial analysis of the chosen business.

 To determine the impact of the business in the community of Nasugbu.

Industry Background and Overview

Satisfying the cravings of the customers is the main goal of every restaurant. The

restaurant industry is a very difficult and serious business. Maintaining the quality and safety of

the food and drinks are the everyday role of restaurants and café owners to ensure the success of

their business. This industry is one of the biggest sectors contributing to the overall economy by

providing job and opportunities to millions of people. There are many types of restaurants which

include Fine Dining, Casual Dining, Contemporary Casual, Family Style, Fast Casual, Fast

Food, Café, Buffet, Pop-Up Restaurant, and Ghost Restaurant. The most popular types of

4
restaurants are Fast food, Fast casual, Casual dining, Contemporary casual and café. Fast food, or

quick service restaurant (QSR) establishments offer food served on-the-go, whether from a

drive-through window or counter. Example of most popular fast food in the Philippines is

Jollibee, McDonald’s, Burger King, Dunkin' Donuts, and Starbucks. Fast casual restaurants offer

a more upscale and diverse (though still limited) menu selection with slightly higher price points

than fast food establishments. Casual dining encompasses a large segment of the restaurant

industry. These types of restaurants cover everything from local independent spots to big

franchises, but defining characteristics include table service and a sit-down meal. Contemporary

casual, a relatively new type of restaurant, is a sit-down dining experience marked by an

emphasis on the atmosphere and experience. Finally, café is a beverage-focused establishment.

Offerings usually include coffee, tea, and a smaller menu of food or snacks. These types of

restaurants typically offer counter service and prices are low to moderate. Example of the most

popular café in Manila, Philippines is The Curator, % Arabica, EDSA Beverage Design Group,

Caravan Black, and Drip Café at Commune.

Restaurant industry trends include online ordering, healthy foods, and restaurant tech take

over. Online ordering has been in demand nowadays, and people prepares more to order online

than going out their house. “Healthy foods for a longer life” and “fitness goals” have become

the trends as Covid-19 pandemic spread all over the world. People have become more conscious

about their health and start eating healthy foods to avoid being sick. Lastly, restaurant tech takes

over, to keep up with the new demands many restaurants embrace technology advancement

which help in point-of-sale, analytics, online ordering, inventory management, and more,

allowing them more time to pay attention to their guests. Many restaurants have established its

popularity by keeping up with the trends and by gaining the trust of the customers.

5
 The success of the YND 223-14 2 dimensions café in Seoul, South Korea since 2018

have continued to grow even pandemic and many people dreamed to visit the café. These cafés

blend reality and illusion together seamlessly with white interiors creating a stark contrast with

real and faux elements outlined in black, such as real tables, chairs, and mugs, plus illustrations

of potted plants, tufted leather, flowers, art frames, wooden tiles, and a window with a peeking

dog. Given the fun-filled design and delightful use of optical illusion, it’s no wonder why the

original café has quickly become “a must-visit for décor-loving Instagrammers,”

The Philippines have gone through many challenges as covid-19 pandemic hit and now

that people are adjusting in the new normal. It was a great opportunity to introduce the 2

Dimensional black & white café to the Batangeuños. To experience an instragramble place and

create new happy memories together with friends and family. It is a safe place with great scenery

that will offer extraordinary coffee. Kapeng Barako symbolizes bravery of the Batangeuños that

whatever happens they will stand up and continue to fight.

Growth Potential and Outlook in the Future

Coffee has been a growing industry for the past several years. It is one of the world’s

favorite beverages and a major source of caffeine for many students and employees, coffee

continue to be an integral factor in society’s daily routine. According to the article “Specialty

Coffee Shops Market (2020-2024)” published in www.businesswire.com,Technavio has been

monitoring the specialty coffee shops market and it is poised to grow by USD 80.78 during

2020-2024, progressing at a CAGR of almost 13% during the forecast period.

According to the Agricultural Cooperative Development International and Volunteers in

Overseas Cooperative Assistance (ACDI-VOCA), an American nongovernment

6
organization giving specialized bolster to the Philippine coffee farmers, there are

positive patterns for the Philippine coffee industry – coffee consumption is on the uptick and

there are presently more skilled farmers. The ACDI/VOCA notes that Philippine coffee has as of

now entered the markets in Canada, Japan,

and Unused Zealand which the household showcase proceeds to be strong, especially for

specialized coffee (Arabica coffee with a glass score of at least 80 points) According to Statista

(2021), revenue in the Coffee segment is projected to reach US$5,292m in 2021. The market is

expected to grow annually by 10.4% (2021-2025). The average revenue per person in the Coffee

segment is expected to amount to US$47.65 in 2021.

In conclusion, the coffee market is right now encountering impressive development in

economies around the world, with the rise in urbanization and the request for speedy,

quality item fueling the development. This expected growth indicates that there is an opportunity

in the café’ industry and coffee is expected to increase in the future.

7
 Chapter 2

MARKETING PLAN

This chapter covers the marketing strategies to be implemented by the business. It

discusses the target market, the 7Ps of marketing to be implemented by the business and the

related marketing/selling expenses.

Objectives of the Chapter

Generally, the study aims to determine the market feasibility of the proposed coffee shop

business in the market. Aligned with this, specific objectives are:

1. To conduct research study through surveys with the respondents and existing coffee shop

to determine the market share of the proposed business;

2. To determine the target market of the business;

3. To determine the marketing strategies needed for the coffee shop promotion; and

4. To determine the associated marketing expenses.

Research Design and Methodology

The research design will be used for this study is descriptive research. Descriptive

research is those who described the characteristics of a particular individual or group. This

research is more concerned with what rather than how or why something has happened. It aims to

accurately describe a research issues or problems through a process of data collection. Since the

study is intended to determine the feasibility of Barakoffee café in Nasugbu, Batangas. The

researcher will construct questionnaire as the main instrument to gather information from the

respondents. The questionnaire will be designed to gather accurate data to determine the demand

8
for the product through knowing the willingness and capability of the target market to avail the

service.

Data Gathering Instrument

To examine the feasibility of the business and to gather the necessary data for the study,

survey questionnaires will be given to the respondents. The customer survey questionnaire will

serveas the main instrument to gather information and opinions from different individual that

will support the establishment of the proposed business, such as the willingness of the target

market to avail the services of the proposed business, frequency of purchase, and the type of

goods and services to avail. Likewise, this survey questionnaire aims to gather data as to their

current practices and their service costing. The first part of the questionnaire is all about the

respondent’s profile while the second part was their familiarity about the proposed business,

willingness to pay and avail our product and how often they come in the said business.

Data Gathering Procedure

The proponents will do the following procedures to gather data to the target customers:

1. The proponents will formulate survey questionnaire to be presented to the Course

Professor.

2. After the survey questionnaire to be approved, the proponents will be using Google forms

that will be send through messenger and email, and print the survey questionnaire to

directly survey respondents.

3. After retrieving the answered questionnaires, the proponent will be the one to tallied,

analyzed, and interpreted the data.

9
The proponents will do the following procedures to gather data to the existing coffee shop;

1. The proponents will formulate survey questionnaire to be presented to the Course

Professor.

2. After the survey questionnaire to be approved, the proponents will print the survey

questionnaire, and will directly go to different coffee shop to conduct the survey.

3. After retrieving the answered questionnaires, the proponent will be the one to tallied,

analyzed, and interpreted the data.

Respondents of the Study

The residents of Nasugbu, Batangas are the primary market of the study. The proponents

will deliberately choose the residents of Nasugbu, Batangas because the proposed business will

be located therein. The specific respondents are those residents age 18- 74 which are the

students, employees and business owners.

According to Actual population of Nasugbu (2019), total population of 18-74 is 87,912

and using the RAOSOFT sample calculator with 95 % confidence level and 5% margin of error,

the sample computed was 383 respondents.

Target Market

The target market of the proposed Barakoffeecafé will be anyone who enjoys coffee, but

specifically the residents of Nasugbu, Batangas which age 18-74, both male and female and who

are in the working class or students. According to Jan Conway (2020), people aged 70 and over

drank about 2.18 cups of coffee per capita in the United States, making it the age group that

drank the most coffee on average that year. U.S. coffee consumption for respondents between the

10
ages of 25 and 29 stood at roughly 2.15 cups a day. Based on the statistics, the younger

generations are driving the increase in coffee consumption, which millennials fall into the 18-24-

year age group.

Market Demand

From the result of the survey conducted, the proponents only survey 219 respondents out

of the target respondents of 384. In the 219 respondents who answered 98.2 % of the respondents

are willing to buy in Barakoffee.

Table 2.1

Willingness to avail the product of Barakoffee

Number of Respondents Percentage

Respondents willing to avail 215 98.2%
the product
Respondents not willing to 4 1.8%
avail the product
TOTAL 219 100%
Source: Part II of the Customer Questionnaire

Table 2.1 shows that out of the 215 respondents, 98.2 % or majority of them are willing

to avail products in Barakoffee 2 dimensional Black & White Café and the remaining4

respondents are not willing to avail the service.

To determine the demand for the business, the following computations were used:

Average Demand = Willing and Capable/ Sample Population X 100%

= (215/219) X 100%

11
 = 98%

Actual Demand = Total Population X Average Demand

= 87,912 X 98%

= 86,153

Demand and Supply Analysis

Both goods and services traded in the market are subject to demand and supply analysis.

In order to decide whether demand surpassed supply, it is important to examine demand and

supply. This research will assist the proponent in determining if there is a market need. It is

therefore beneficial for the proponent to examine the considerations that would be taken into

account when evaluating the product strategy.

A highly competitive market is generally good for the consumers because suppliers tend

to produce up to the level that meets demand and price their products not higher than what is

necessary to cover cost and normal profit or the opportunity cost of capital.

Table 2.2

Market Gap

Year Projected Demand Projected Supply Market Gap

2021 86,153 36,000 50,000
2022 90,460 37,540 52,920
2023 94,983 39,146 55,837

12
 Table 2.2 shows the analysis of the projected demand and supply from year 2021 – 2023.

Projected demand represents the conservative demand of the products to be availed by the

customers in Nasugbu,

Batangas based on a 4.28 % growth rate. According to Mordor Intelligence, the global

coffee market USD 102.02 billion in 2020, and it is projected to reach a growth rate of 4.28 %

during forecasts of 2021-2026. Whereas, the projected supply was derived based on the number

of customers that the existing café can accommodate. However, based on the BPLO official list

of registered cafés in Nasugbu, Batangas, the proponent’s choice 10 existing coffee shop to

survey. Based on the survey findings, several coffee shops claim that 151-200 customers visit

their store a day, but only 101-150 are served. The other coffee shop responded that a day, 151-

200 customers visit their store, but only 51-100 are served. It implies that the two coffee shops

are unable to entertain or satisfy some of their customers' demands. It also suggests that there is a

market gap for coffee shop business, giving Barakoffee the chance to establish their brand. Since,

they are in the same industry, projected supply will also have a 4.28 percent growth. Based on

the result of the survey of the existing competitors, 2 out of the 10 coffee shops answered that not

all of the products in their menu are available. There is 1-3 or 4-6 product not available which

gives Barakoffee opportunity to market them. Typically speaking if a customer went to a coffee

shop and the coffee, they like are not available, they will tend to look for another coffee shop.

This gives the demand to fill the needs of the customers with a delicious and warm coffee.

Projected Revenues

After considering the market's demand and availability, the organization must also weigh

its current capability when determining its projected sales.

13
 Table 2.3
No. of
Customer Price Frequency 2021 2022 2023

Barakoffee
33 55 Once a week ₱ 87,120.00 ₱ 91,872.00 ₱ 96,624.00
30 55 Twice a week I58,400 167,040 175,680
5 55 Thrice a week 39,600 41,760 43,920
38 55 Once a month 25,080 26,448 27,816
13 55 Twice a month 17,160 18,096 19,032
11 55 Thrice a month 21,120 22,960 96,624
Total: 125 ₱ 315, 480.00 ₱ 368176 ₱ 459696
BARAKOFFEE Café Projected Revenues

ESPRESSO
Espresso
7 120 Once a week 40,320.00 41,328.00 42,000.00
9 120 Twice a week 103,680 106,272 108,864
0 120 Thrice a week 0 0 0
10 120 Once a month 14,400 14,760 15,120
4 120 Twice a month 11,520 11,808 12,096
1 120 Thrice a month 4,320 4,428 4,536
31 174240 178596 182616

Cappucino
19 130 Once a week 118,560.00 121,296.00 124,032.00
12 130 Twice a week 149,760 153,216 156,672
3 130 Thrice a week 56,160 57,456 58,752
9 130 Once a month 14,040 14,364 14,688
9 130 Twice a month 28,080 28,728 29,376
2 130 Thrice a month 9,360 9,576 9,792
54 375960 384636 393312

Americano
6 100 Once a week 28,800.00 29,664.00 30,528.00
5 100 Twice a week 48,000 49,440 50,880

14
 3 100 Thrice a week 43,200 44,496 45,792
8 100 Once a month 9,600 9,888 10,176
2 100 Twice a month 4,800 4,944 5,088
1 100 Thrice a month 3,600 3,708 3,816
25 138000 142140 146,280.00

Café Latte
10 105 Once a week 50,400.00 51,840 53,280
9 105 Twice a week 90,720 93,312 95,904
0 105 Thrice a week 0 0 0
7 105 Once a month 8,820 9,072 9,324
3 105 Twice a month 7,560 7,776 7,992
2 105 Thrice a month 7,560 7,776 7,992
31 165060 169,776 174,492

Mocha Latte
4 110 Once a week 21,120 21,696 22,272
7 110 Twice a week 73,920 75,936 77,952
1 110 Thrice a week 15,840 16,272 16,704
2 110 Once a month 2,640 2,712 2,784
1 110 Twice a month 2,640 2,712 2,784
3 110 Thrice a month 11,880 12,204 12,528
18 128040 131,532 135,024

Vanilla Latte
7 115 Once a week 38,640.00 39,648 40,656
6 115 Twice a week 66,240 67,968 69,696
1 115 Thrice a week 16,560 16,992 17,424
2 115 Once a month 2,760 2,832 2,904
3 115 Twice a month 8,280 8,496 8,712
1 115 Thrice a month 4,140 4,248 4,356
20 136,620.00 140,184 143,748

Double Chocolate
Latte
12 120 Once a week 69.120.00 70,848 72,576
12 120 Twice a week 138,240 141,696 145,152
4 120 Thrice a week 69,120 70,848 72,576

15
 10 120 Once a month 14,400 14,760 15,120
4 120 Twice a month 11,520 11,808 12,096
1 120 Thrice a month 4,320 4,428 4,536
47 237600 314,388 322,056

Macchiato
10 125 Once a week 60,000.00 61,440 62,880
9 125 Twice a week 108,000 110,592 113,184
3 125 Thrice a week 54,000 55,296 56,592
3 125 Once a month 4,500 4,608 4,716
6 125 Twice a month 18,000 18,432 18,864
3 125 Thrice a month 13,500 13,824 14,148
34 258000 264,192 270,384
Total: 235 ₱ 1,613,520.00 ₱ 1,726,444.00 ₱ 1,817,912.00

ICE BLENDED COFFEE

The Original
Mocha
22 90 Once a week 95,040.00 98,208 101,376
17 90 Twice a week 146,880 151,776 156,672
2 90 Thrice a week 25,920 26,784 27,648
18 90 Once a month 19,440 20,088 20,736
7 90 Twice a month 15,120 15,624 16,128
3 90 Thrice a month 9,720 10,044 10,368
69 312120 322,524 332,928

The Original
Vanilla
10 95 Once a week 45,600.00 47,040 48,480
8 95 Twice a week 72,960 75,264 77,568
1 95 Thrice a week 13,680 14,112 14,544
7 95 Once a month 7,980 8,232 8,484
6 95 Twice a month 13,680 14,112 14,544
2 95 Thrice a month 6,840 7,056 7,272
34 160740 165,816 170,892

Double
Chocolate

16
 16 100 Once a week 76,800.00 79,104.00 81,408.00
16 100 Twice a week 153,600 158,208.00 162,816.00
8 100 Thrice a week 109,440 118,656.00 122,112.00
4 100 Once a month 4,560 4,944.00 5,088.00
7 100 Twice a month 15,960 17,304 17,808.00
7 100 Thrice a month 23,940 25,956.00 26,712.00
58 384300 404,172.00 415,944.00

Caramel
9 120 Once a week 51,840.00 53,136.00 54,432.00
11 120 Twice a week 126,720 129,888.00 133,056.00
2 120 Thrice a week 34,560 35,424.00 36,288.00
6 120 Once a month 8,640 8,856.00 9,072.00
6 120 Twice a month 17,280 17,712.00 18,144.00
3 120 Thrice a month 12,960 13,284.00 13,608.00
37 252000 258,300.00 264,600.00

Hazelnut
Chocolate
8 120 Once a week 46,080 47,232.00 48,384.00
9 120 Twice a week 103,680 106,272.00 108,864.00
3 120 Thrice a week 51,840 53,136 54,432
8 120 Once a month 11,520 11,808 12,096
4 120 Twice a month 11,520 11,808 12,096
3 120 Thrice a month 12,960 13,284 13,608
35 237600 243,540.00 249,480.00

Mocha Chip
4 120 Once a week 23,040.00 23,616 24,192
9 120 Twice a week 103,680 106,272 108,864
3 120 Thrice a week 51,840 53,136 54,432
6 120 Once a month 8,640 11,808 12,096
5 120 Twice a month 14,400 11,808 12,096
3 120 Thrice a month 12,960 13,284 13,608
30 214,560 219924 225288

Dark
Chocolate

17
Chip
20 120 Once a week 115,200.00 118,080 120,960
11 120 Twice a week 126,720 129,888 133,056
4 120 Thrice a week 69,120 70,848 72,576
13 120 Once a month 18,720 19,188 19,656
9 120 Twice a month 25,920 26,568 27,216
2 120 Thrice a month 8,640 8,856 9,072
59 364320 373428 382536
Total: 322 ₱ 1,925,640.00 ₱ 1,987,704.00 ₱ 2,041,668.00

COFFEE FREE
Pure Vanilla
16 100 Once a week 76,800.00 79,104 81,408
13 100 Twice a week 124,800 128,544 132,288
1 100 Thrice a week 14,400 14, 832 15,264
10 100 Once a month 12,000 12,360 12,720
6 100 Twice a month 14,400 14,832 15,264
6 100 Thrice a month 21,600 22,248 22,896
52 264000 257088 279840

Pure Double
Chocolate
23 100 Once a week 110,400.00 113,712 117,024
19 100 Twice a week 182,400 187,872 193,344
6 100 Thrice a week 86,400 88,992 91,584
24 100 Once a month 28,800 29,664 30,528
8 100 Twice a month 19,200 19,776 20,352
3 100 Thrice a month 10,800 11,124 11,448
82 438000 451140 464280

Pure Hazelnut
Chocolate
12 115 Once a week 66,240.00 67,968 69,696
16 115 Twice a week 176,640 181,248 185,856
6 115 Thrice a week 99,360 101,952 104,544
14 115 Once a month 19,320 19,824 20,328
7 115 Twice a month 19,320 19,824 20,328
2 115 Thrice a month 8,280 8,496 8,712

18
 59 389160 399312 409464

Mango
6 115 Once a week 33,120.00 33,984 34,848
11 115 Twice a week 121,440 124,608 127,776
3 115 Thrice a week 49,680 50,976 52,272
11 115 Once a month 15,180 15,576 15,972
6 115 Twice a month 16,560 16,992 17,424
0 115 Thrice a month 0 0 0
37 235980 242136 248292

Matcha Green
Tea
8 115 Once a week 44,160.00 45,312 46,464
9 115 Twice a week 99,360 101,952 104,544
0 115 Thrice a week 0 0 0
10 115 Once a month 13,800 14,160 14,520
7 115 Twice a month 19,320 19,824 20,328
0 115 Thrice a month 0 0 0
34 176640 181,248 185856
Total: 264 ₱ 1,503,780.00 ₱ 1,530,924.00 ₱ 1,587,732.00

No. of Pric
Customer e Size Frequency 2021 2022 2023
MILK TEA
Royal
Once a
11 45 Regular week ₱ 23,760 ₱ 25,344 ₱ 26,928
Twice a
7 60 Large week 40,320 42,336 44,352
Thrice a
0 70 Xlarge week 0 0 0
Once a
14 45 Regular month 7,560 8,064 8,568
Twice a
9 60 Large month 12,960 13,608 14,256
Thrice a
2 70 XLarge month 5,040 5,256 5,472
32 89,640 94,608 99,576

19
Winter melon
Once a
13 70 Regular week 43,680 45,552 47,424
Twice a
11 60 Large week 63,360 66,528 69,696
Thrice a
2 45 Xlarge week 12,960 13,824 14,688
Once a
14 70 Regular month 11,760 12,264 12,768
Twice a
9 60 Large month 12,960 13,608 14,256
Thrice a
2 45 XLarge month 3,240 3,456 3,672
51 147,960 155,232 162,504

Pearl Milk
Tea
Once a
4 60 Large week 11,520 12,096 12,672
Twice a
8 45 Regular week 34,560 36,864 39,168
Thrice a
1 70 Xlarge week 10,080 10,512 10,944
Once a
7 45 Regular month 3,780 4,032 4,284
Twice a
6 60 Large month 8,640 9,072 9,504
Thrice a
1 70 Xlarge month 2,520 2,628 2,736
27 71,100 75,204 79,308

Hazelnut
Once a
7 45 Regular week 15,120 16,128 17,136
Twice a
7 45 Regular week 30,240 32,256 34,272
Thrice a
1 70 Xlarge week 6,480 6,912 7,344
Once a
7 45 Regular month 3,780 4,032 4,284
Twice a
3 60 Large month 4,320 4,536 4,752
2 60 Large Thrice a 4,320 4,536 4,752

20
 month
27 64,260 68,400 72,540

Caramel
Once a
5 Large week 14,400 15,120 15,840
Twice a
10 Regular week 43,200 46,080 48,960
Thrice a
2 Large week 17,280 18,144 19,008
Once a
7 Regular month 3,780 4,032 4,284
Twice a
2 Xlarge month 1,680 1,752 1,824
Thrice a
2 XLarge month 5,040 5,256 5,472
28 85,380 90,384 95,388

Taro
Once a
8 45 Regular week 17,280 18,432 19,584
Twice a
11 45 Regular week 47,520 50,688 53,856
Thrice a
6 60 Large week 51,840 54,432 57,024
Once a
6 60 Large month 4,320 4,536 4,752
Twice a
6 60 Large month 8,640 9,072 9,504
Thrice a
3 70 Xlarge month 7,560 7,884 8,208
36 137,160 145,044 152,928

Chocolate
Once a
15 45 Regular week 30,400 34,560 36,720
Twice a
9 45 Regular week 38,880 41,752 44,064
Thrice a
3 60 Large week 25,920 27,216 28,512
Once a
8 45 Regular month 4,320 4,608 4,896
3 60 Large Twice a 4,320 4,536 4,752

21
 month
Thrice a
2 70 Xlarge month 5,040 5,256 5,472
40 108,880 117,928 124,416

Mocha
Once a
6 45 Regular week 12,960 13,824 14,688
Twice a
9 45 Regular week 38,880 41,472 44,604
Thrice a
0 70 Xlarge week 0 0 0
Once a
3 60 Large month 2,160 2,268 2,376
Twice a
3 45 Regular month 3,240 3,456 3,672
Thrice a
1 60 Large month 2,160 2,268 2,376
22 59,400 63,288 67,716

Cookies &
Cream
Once a
11 45 Regular week 23,760 25,344 26,928
Twice a
13 45 Regular week 56,160 59,904 63,648
Thrice a
5 60 Large week 43,200 45,360 47,520
Once a
5 60 Large month 3,600 3,780 3,960
Twice a
8 70 Xlarge month 13,440 14,016 14,592
Thrice a
5 60 Large month 10,800 11,340 11,880
47 150,960 159,744 168,528

Black forest
Once a
14 45 Regular week 30,240 32,256 34,272
Twice a
12 45 Regular week 51,840 55,296 58,752
3 70 Xlarge Thrice a 30,240 31,536 32,832

22
 week
Once a
7 60 Large month 5,040 5,292 5,544
Twice a
5 60 Large month 7,200 7,560 7,920
Thrice a
0 70 Xlarge month 0 0 0
41 124,560 131,940 139,320

Double Dutch
Once a
7 60 Large week 20,160 21,168 22,176
Twice a
12 45 Regular week 51,840 55,296 58,752
Thrice a
3 60 Large week 25,920 27,216 28,512
Once a
9 45 Regular month 4,860 5,184 5,508
Twice a
2 70 Xlarge month 3,360 3,504 3,648
Thrice a
2 70 Xlarge month 5,040 5,256 5,472
35 111,180 117,624 124,068
₱1,150,480.0 ₱1,279,396.0
Total: 386 0 0 ₱ 1,286,292.00

Pric
No. of customer e Frequency 2021 2022 2023

PASTRIES

Choco Chip
Banana Slice
7 45 Once a week ₱ 15,120.00 ₱ 16,128.00 ₱ 17,136.00
14 45 Twice a week 60,480 64,512 68,544
3 45 Thrice a week 19,440 20,736 22,032
6 45 Once a month 3,240 3,456 3,672
5 45 Twice a month 5,400 5,760 6,120
3 45 Thrice a month 4,860 5,184 5,508
38 108,540 115,776 123,012

23
Ensaymada
15 35 Once a week 25,200 27,360 29,520
17 35 Twice a week 57,120 62,016 62,912
4 35 Thrice a week 20,160 21,888 23,616
15 35 Once a month 6,300 6,840 7,380
14 35 Twice a month 11,760 12,768 13,776
3 35 Thrice a month 3,780 4,104 4,428
68 124,320 134,976 141,632

Caramel
Cinamon Bun
14 35 Once a week 23,520 25,536 27,552
15 35 Twice a week 50,400 54,720 59,040
3 35 Thrice a week 15,120 16,416 17,712
16 35 Once a month 6,720 7,296 7,872
6 35 Twice a month 5,040 5,472 5,904
5 35 Thrice a month 6,300 6,840 7,380
59 107,100 116,280 125,460

Double Chocolate
Brownie
17 50 Once a week 40,800 43,248 45,696
18 50 Twice a week 86,400 91,584 96,768
2 50 Thrice a week 14,400 15,264 16,128
12 50 Once a month 7,200 7,632 8,064
7 50 Twice a month 8,400 8,904 9,408
2 50 Thrice a month 3,600 3,816 4,032
58 160,800 170,448 180,096
₱ ₱
Total: 223 ₱ 500,760.00 537,480.00 573,196.00

Table 2.4
BARAKOFFEE Café Total Projected Revenues

No. of
Product Customer 2021 2022 2023

Barakoffee 125 315,480.00 368,176.00 459,696.00

Espresso 225 1,613,520 1,726,444 1,817,912
Ice blended 322 1,925,640 1,987,704 2,041,668

24
 Coffee Free 264 1,503,780 1,530,924 1,587,732
Milk Tea 386 1,150,480 1,279,396 1,286,292
Pastries 223 500,760 537,480 573,196
Cakes 275 1,830,144 1,875,120 1,920,300
Cookies 243 412,440 439,437 483,144
Total 2063 ₱ 9,252,244.00 ₱ 9,744,681.00 ₱ 10,169,940.00

Market Share

Market share is the projected revenue in relation to the projected demand. It is determined

by ascertaining sales in relation to the projected demand. The proponent expects that the

distribution of the service could be able to fill the gap between the demand of the customers and

the supply of the proposed business.

Table 2.5

Market Share

Year Projected No. of Projected Demand Market Share

Clients
2021 215 86,153 .25%
2022 224 90,460 .25%
2023 234 94,983 .25%

Table 2.4 shows the market share on the first three years of operation. It is indicated that

the business can penetrate the market and gain a share in the industry where it belongs.

25
Product Strategies

The business will offer the great experie.nce of 2 Dimensional black and white theme

Café showcasing different tourist spot of Batangas to the Nasugbuñeous. The Batangas tourist

spot includes Fortune Island, Anilao, Caleruega, Mt. Batulao, and Cape Santiago lighthouse. The

strong aroma of KapengBarako, different varieties of drinks, and desserts will complete the

menu. The varieties of drinks are Espresso, Ice blend coffee, coffee free and milk tea. The dessert

includes pastries, cakes and cookies.

Every corners of the café from ceiling, walls, curtains, floors and furniture are picture

perfect and instragramable. Although some of the drinks may come in regular glasses, you

cannot go wrong with the coffee. The powerful taste and aroma of KapengBarako is almost

enough to wake any sleepy fellow who takes a sip.

The business will also focus in providing excellent service for the customer and ensuring

the safety of the foods and drinks. The staff will undergo training and orientation on how to

properly approach customers and prepare the foods and drinks. To ensure that the staffs are fit to

work, they are required to measures their temperature before and after the working hours. The

business will strictly follow the social distancing and maintain the cleanliness of the coffee shop.

As the customer and staff safety is the main priority of the business.

Brand name, logo and tag-line will be used to create brand awareness, promote the business and

to make a business recall.

Brand Name. The brand name will be Barakoffee, same as the company name.

26
 Tag-line. The tag-line of the business will be stated as: “Experience love at first sip“.

The goal is to tell the customers that they will not just be fascinated by the stunning and

Instragramable place but also with the great coffee. Fall in love with the powerful taste and

aroma with the first sip of KapengBarako.

Business Logo. The business logo will help the business be easily identified by the
customers.

The man in the logo symbolizes that Batangeuños are brave and strong. It has a yellow

hair, because Batangeuños has a bright personalityand smile. The blue eyes symbolize the

tourist, even the tourist in our own country. A cup of coffee symbolizes our main coffee which is

Barako coffee. The color green symbolizes the tourist spot here in Batangas.

Pricing Strategies

We price our product at a level comparable to our competitors and also take into account:

production costs, competitive pricing strategies and consumer price sensitivity. The objective of

the pricing strategy is determining the amount that a business can charge to attract customers.

Aside from quality, pricing is one of the key factors that gives leverage to business like this, it is

27
normal for consumers to go to places where they can get quality foods and service at cheaper

price that will attract more individual clients. Since Barakoffee: A two-dimensional café is new

to the market here in Nasugbu, Batangas, we price our product in line with the competitor’s

prices, and may sometimes charge more or less depending on the value of the product or services

being offered.

Table 2.6

Main Product
BARAKOFFEE Php 55.00

Table 2.1 indicate the main product of this coffee shop which is the Barakoffee with its price.

Table 2.7
ESPRESSO & COFFEE
Flavors Price
Espresso Php 120.00
Cappuccino Php 130.00
Americano Php 100.00
Cafe Latte Php 105.00
Mocha Latte Php 110.00
Vanilla Latte Php 115.00
Double Chocolate Php 120.00
Latte
Macchiato Php 125.00

Table 2.2 shows the list of possible coffee flavor and its price.

Table 2.8
ICE BLENDED COFFEE
Flavors Price
The Original Vanilla Php 90.00

28
 The Original Vanilla Php 95.00
Double Chocolate Php 100 .00
White Chocolate Dream Php 100 .00
Caramel Php 120.00
Hazelnut Chocolate Php 120.00
Mocha Chip Php 120.00
Dark Chocolate Chip Php 120.00

Table 2.3 indicates the coffee we offer in ice blend and its price.

Table 2.9
COFFEE FREE
Flavors Price
Pure Vanilla Php 100 .00
Pure Double Chocolate Php 100.00
Pure Hazelnut Chocolate Php 115.00
Sunrise Php 115 .00
Mango Php 115.00
Matcha Green Tea Php 115.00

Table 2.4 shows the available coffee free with price.

Table 2.10
Pastries, Cakes and Cookies
PASTRIES
Choco Chip Banana Slice 65
Ensaymada 75
Caramel Cinnamon Bun 85
Double Chocolate Brownie 75
Cheese & Bacon Croissant 105
CAKES
Blueberry Cheesecake 125
Dark Chocolate Cake 110
Oreo Cheesecake 125

29
 Red Velvet Cake 125
COOKIES
Choco Chip Cookie 60
Matcha Cookie 65

Table 2.5 indicates the list of pastries, cakes and cookies that we will also serve to have a

nice pair with the coffee you love.

Table 2.11
Milk Tea
Flavors Regular Large XL
Royal 45 60 70
Wintermelon 45 60 70
Pearl Milk Tea 45 60 70
Hazelnut 45 60 70
Caramel 45 60 70
Taro 45 60 70
Chocolate 45 60 70
Mocha 45 60 70
Cookies&Cream 45 60 70
Black Forrest 45 60 70
Double Dutch 45 60 70
Choco Oats 45 60 70
Choco Java 45 60 70
Belgian Chocolate 45 60 70
Café Macchiato 45 60 70
Caramel Fudge 45 60 70
Wintermalt 45 60 70
Chocomalt 45 60 70

Table 2.6 shows the possible flavor of milk tea indicate the size and its price where we

also serve for having better experience.

30
Placement and Distribution Strategies

Physical location is also an essential consideration in putting-up the business. The

location strategy of the business is that the location should be easily seen, recognized and

accessible by the customers. The coffee shop will be located at Jose P. Laurel, Abantihan

building first floor 4231 Nasugbu, Batangas, Philippines. This is ourchosen location because

Caltex gas station is only on the opposite road, and it is near in the highway. It gives as lots of

opportunity to attract more customers which are the drivers, commuters and pedestrian who

happened to pass by in our coffee shops. In the second floor of the building are dorm / apartment,

and people who occupant that are sometimes students, family or a minimum wage earner which

give us more possible customer. The customers can avail the proposed business by directly going

to the coffee shop and/or order online in official social media accounts. The delivery fees will

depend on the location and it was limited only around Nasugbu.

Promotion Strategies

The business will use social media marketing to target people nearby, and we will

connect with people through our social media accounts in every social media platform. We will

use these accounts to keep people updated with new menu items as well as offers and discounts.

Barakoffee will also develop a simple Web site, which will provide basic information

about the business, the menu, and links to their presence on the aforementioned social media

channels.

Finally, we will display posters, tarpaulin, leaflets and fliers in our shop, which, due to its

location, will market our coffee shop to a high number of potential customers at a very low cost.

31
 Our marketing will focus on the quality of the coffee we sell, as well as the benefits of

our shop to customers. During the week after we open, we will offer substantial discounts on

coffee to attract people to our business. This offer will be central to our marketing during this

period.

Table 2.12
Promotional Mix Strategies

What Who Where How Budget

Social Media The Partners Messenger, One of the partners The partners will
Accounts Instagram, will create accounts visit and update
Twitter and in different social social media
Facebook. media platform. All every day. The
products, activities costs of the
internet and
and offerings will
telephone bill
be posted and also
forms part of the
these accounts will operating
serve as for expenses of the
inquiries, business.
suggestion and
comments of
customers
Website The Partners Website or One of the partners The partners will
URL will develop visit and update
develop by any of website that will information in
the partners provide basic the website every
information about week. The costs
of the internet
the business, the
and telephone
menu, and links to
bill forms part of
their presence on the operating
the aforementioned expenses of the
social media business.
channels.
Posters The Partners Inside the café Any partners will The budget for
create posters that posters will be
will encourage P1,000.00
many customers.

32
 Tarpaulins The Partners Will be posted in Any of the partners The budget for
public market, will look for tarpaulins will be
near schools and tarpaulin printing P4,000.00
universities shops and will seek
consent for placing
tarpaulins from
authorized
personnel on the
proposed places.
Leaflets and The Partners The fliers will be Any of the partners The budget for
Fliers distributed at the will look for leaflets and fliers
business printing shops to will be P1,000.00
location, public have the fliers
market, near printed.
schools and in Distribution will be
front of done by the
Waltermart partners.
Nasugbu

Table 2.7 shows the promotion mix strategies that will be used to promote the business

and influence prospective customers. These tools are expected to create awareness on the

benefits of the service being offered.

People Strategies

Employees are the backbone of every business in the industry. The proposed venture,

“BARAKOFFEE,” a two-dimensional café, would first begin recruiting baristas and driver as

they are only beginning with the business. In hiring the employees, the proponents will choose

based on their knowledge about the work that they are applying for and with their proper

credentials and all. The proponents of the study would also provide their employees with the

proper training program to be successful in representing and pleasing their customers.

Having reliable suppliers will improve the business customer service and efficiency. A

good relationship with a supplier can also provide you a long-term supporter in your business

33
goals. And to build a strong and trusting relationship with the proponent’s suppliers, they will

need to communicate with them effectively. The proponent’s pastry supplier is Helen’s place

Bake shop in Matabungkay, Batangas. They made homemade cakes and pastries, which are

known and popular in the area.

Physical Evidence Strategies

The physical strategy of the business does not pertain only to the physical location of the

business but as well as the equipment and tools to be used. Also, various visual elements from

brand/logo, store design and decor, presentation and packaging of coffee, and even employee

appearance are included.

Since our Café’ is a Two-Dimensional café’ chairs, tables, and even the refrigerator is

painted over to provide the ultimate 2D experience. The Barakoffee will be passed sanitary

inspection, and will implement new normal protocol and policies for the safety of the customer.

Process Strategies

In every business, systems or procedures should be in place to make things organized.

Barakoffee: A Two-dimensional café offer a quality of foods, drinks and services. This proposed

business will bring you to five (5) tourist spot of Batangas namely Fortune Island, Anilao,

Caleruega, Mt. Batulao, and Cape Santiago lighthouse. So Barakoffee: A Two-dimensional café

have a friendly service where we promptly welcome the customer, take the order clearly, collect

the payment accurately, make the order completely and serve the order politely. We believe that

when customers have an amazing experience, they will definitely share it, so we really value

customers.

34
Generalization

The result of the demand and supply analysis showed that there is a market gap that the

proposed business can fill in and the proposed business estimate to have 0.25% market share

based on the projected demand. Based on the result of the survey, the estimated number of

clients is 215 availing the services either once a week, twice a week, thrice a week, once a

month, twice a month and thrice a month with projected gross revenues of P9,252,244.00,

P9,744,681.00 and P10,169,940.00 for years 2021, 2022 and 2023 respectively.

This chapter also showed the marketing plan that will be used by the business. The target

market of the business is the income earner residents of the Municipality of Nasugbu, Batangas

and the principal place of business is also located therein. The main product to be offered will be

the Barakoffee that amounting to Php55.00. Other product to be offered are espresso coffee, ice

blended coffee, coffee free, milk tea, pastries, cakes and cookies. The business will be offered

through various promotional tools with estimated advertising expenses of P 6,000.00 allocated to

posters, tarpaulins, leaflets and flyers. Lastly the key advantages of the business are its

investment to people, product and the service to be offered.

35
 CHAPTER 3

TECHNICAL SPECIFICATION

This chapter deals with the presentation of the technical specifications of

BARAKOFFEE: A 2 DIMENSIONAL Black &White Cafe. Specifically, this presents the

service description, product description, service procedure, product procedure, store layout and

location, machinery/equipment requirement, supplies, leasehold improvement and waste disposal

system.

Objectives of the Chapter

The general objective of this study is to determine the technical feasibility of the service to be

offered. Specifically, this study will discuss the following objectives:

1. To determine the product and service description

2. To distinguish the business location and come up with the design and facilities needed for the

business.

3. To determine the equipment, materials and supplies required within the day to day operation.

4. To outline other operational requirements such as the waste disposal management.

Service Description

The Barakoffee: A two Dimensional Black &White Café intend to provide an

instagramable theme that will give customers ‘the vibe’ of five tourist spots in Batangas. The

36
proponents also aim to provide a good quality service to our customers in serving hot and cold

beverages including the pastries. With this, the business needs to provide the following;

1. The employees should know basic knowledge to the chosen tourist spots in

Batangas.

a.) Fortune Island- this vibe will captivate the customers that love an ancient

Greek style.

b.) Anilao- this is for customers that love to dive underwater.

c.) Calaruega- this is for those customers who love serene and natural

ambiance.

d.) Mt. Batulao-this is for a customer who loves nature and thrill.

e.) Cape Santiago Light House-this is for customers who love sceneries that

have old history.

2. Trained Employees;

a.) Barista- They will provide customers a good quality of coffee.

b.) Manager- the one that will negotiate if there’s a problem with the

customers or any inquiries.

In addition to the service offered by the Barakoffee two-Dimensional B&W Café, we

will offer delivery services around Nasugbu area. The proponents would ensure that the

consumers can expect a good customer service.

37
Product Description

BARAKOFFE Café provides its customers with the finest and quality coffee beverages.

Each Barista will be trained in the fine art of brewing, blending and serving the highest quality

hot and cold beverages, with exceptional attention to detail.

Besides BARAKOFFEE coffee shop will offer other coffee beverages, pastries, cakes and

cookies.

 For hot espresso and coffee beverages, the shop will offer espresso, cappuccino,

Americano, café latte, vanilla latte, mocha latte, double chocolate latte and

macchiato.

 For ice blended coffee, the shop will offer the original mocha, the original vanilla,

double chocolate, white chocolate dream, caramel, hazelnut chocolate, mocha

chip, dark chocolate chip.

 For coffee free beverages, the shop will offer pure double chocolate, pure

hazelnut chocolate, mango and matcha green tea.

 Helen’s Place bakeshop will supply the following; Chocochip Banana slice,

ensaymada, Caramel cinnamon Bun, Double chocolate brownie, Dark chocolate

cake, Oreo cheese cake, Red velvet cake, Yema cake, Matcha cake, Choco chip

cookie, Oatmeal Cookie and Matcha Cookie.

38
Service Procedure

Start

Customer enters the

coffee shop

Taking orders

No
Preparing
Will the customer dine in?
orders for take

Yes

Preparing

orders for dine

Serve

Figure 3.1
BARAKOFFEE; A 2Dimensional Black and White Theme Café Service Procedure

Figure 3.1 shows the step-by-step process of availing the service of the business. It began

when the customer enters the shop. The Barista asks the customer for their order and asking the

39
 customer if they will be dining in or will take out the order. The barista prepares the beverage

according to the order and serves the beverage to the customer.

Product Procedure

Grinding the coffee

Start
beans

Boil the amount of water Fill the Sugar

depending on the cup size coffee cup ?

Yes No

Give the coffee to

End the customer named

on the cup

Figure 3.2
BARAKOFFEE Product Procedure

Figure 3.2 shows the process where the coffee will be made from ingredients to a final product.

First the coffee beans have to be grinded, the appropriate amount of water has to be boiled and

then the cup can be filled. As a finishing touch the coffee has to be adjusted to the wishes of the

customer, and then there is the final product, a cup of barakoffee. Figure 3.3 Expresso Product

Procedure, Figure 3.4 Ice blend Products Procedure, Figure 3.5 Coffee Free Products Procedure,

and Figure 3.6 Milk Tea Products Procedure are in Appendix E.

40
 Delivery Process

Customer call to
Start
inquire

Manager will answer the call Ask for Order

the order

Yes
No
Order will No Ask for the address Getting the
Confirm

not be and confirmation of order

entertained identity
Yes Thank you

Prepare the for calling.

order

Delivered the

order

End

Figure 3.7

Delivery Process

Figure 3.7 will show the delivery process of Barakoffee. First if the customer call it will

be assisted by the manager. If the customer says, No the call will be polite ended. If the customer

41
will be said, yes to order they will ask for the address and confirmation of identity (valid ID). If

the customer rejects to confirm their identity the order will not be process. If the customer

confirms their identity order will be process and will be deliver immediately.

Business Schedule

Daily Operating Hours

Table 3.1

DAY OPENING HOUR CLOSING HOUR

Monday to Saturday 7:00 am 4:00 pm

It is important to set the service schedule to serve the customer better. Table 3.1 shows

the daily business operating hours of Barakoffee. The business will be accessible (9) hours a day

Monday to Friday from 7:00 am to 4:00 pm. The senior barista, junior staff and delivery man

working hours are (8) hours a day for Monday to Saturday and rest day of Sunday. There are (1)

hour lunch break per barista, with alternate schedule. One barista will have lunch 11:00 am to

12:00 pm and other one for 12:00 pm to 1:00 pm. The manager will be working hours are (8)

hours a day Monday-Saturday from 7:00 am to 4:00 pm with the rest day of Sunday. Manager

will going to have (1) hour lunch break, specifically 11:00-12:00 pm.

42
 For online inquiries regarding delivery, the customers can message to the business social

media page, contact us with our official Gmail account barakoffee@gmail.com.ph ,hotline

number (02) 84530629 and mobile number 0977-676-1076 / 0916-709-0387.

Store Layout and Location

Figure 3.8
Business Location
This figure shows the official business location. The location of the business will be at

Abantihan Building third floor, JP Laurel St. Brgy. 9 Nasugbu, Batangas.

43
 Figure 3.9
Store Layout

Figure 3.3 shows the store layout. It will be rented P40,000.00 monthly. The initial

payment for the space will be two months deposit and one-month advance or a total of

P120,000.00. The store is 470 square meters in area. There will be 6 doors, one in front, one for

emergency exit, office, kitchen, Restroom and counter door. There will be a total of 4 Nordic

coffee tables, 4 folding tables, 2 L-shape tables, 2 rectangular snack bar table set with 2 chairs

and 1 table, 4 single sofa, 8 modern Windsor chair, and 4 office chair. There will be one cabinet

in the office, one in between the office and kitchen, and one customized cabinet in the kitchen.

The two aircon will be installed in the office and dining area. Lastly, there will be 4 CCTV

cameras to be placed in the exit door, outside the front door near stairs, inside the store and to the

counter.

Leasehold Improvement

Table 3.2

Leasehold of improvements

Description Total Cost

Floor tiles and installation cost Php 22,927.00

Paint 5,994.00

44
Paint brush 960.00

Wall décor 2,000.00

Singnage 797.00

Plywood 4,640.00

Total Php 37,318.00

Source: Home Advisor Calculator, Alibaba.com, Shopee, Projectestimate.com,

Goldpeaktools.com

Table 3.2 shows the list of improvements to be done in the business space. The

total tiles needed are 277 pieces with 18x18 inches, and with the price per piece of Php 101.00.

The business needed 96 liters (6 balde) of black and white paint and the price of 16 liters is Php

999.00. The business needed a 4 plywood with 4ft x 8ft with¾ inches thickness with the price of

Php 1,160.00. The provide 2 pieces of paint roller with the price of Php 75.00, and 5 pieces of

paint brush with the price of Php 162.00. This will enable the business to be pleasant for working

and to be easily identified by the clients.

Barakoffee’s Machinery and Equipment

Since this is a start-up business, to will initially restrict the procurement of office

machinery and equipment in order to optimize the partners’ investment, but once the operation is

developed, it will be acquired additional if necessary. The prize of each commodity is calculated

using information found on the internet. The assets have (5) five to (7) year estimated useful life

and will be depreciated using straight line approach with a residual value of 5%.

45
 Table 3.3

Barakoffee’s Machinery and Equipment

Particulars Quantity Unit Cost Total Cost

Machinery

Espresso Machine 2 37,164 74,328

Coffee Grinder 3 4,999 14,997

Water Filtration 1 11,000 11,000

System

Oven and Toasters 1 6,830 6,830

Refrigerator and 2 22,185 44,370

Freezer

Blender 2 3,985 7,970

Cake Cabinet Freezers 1 28,015 28,015

Air conditioner 2 19,208 38,416

Receipt Scanning 1 38,707 38,707

Software

Automatic Hand 2 1,846 3,692

Sanitizer

Thermal Scanner 2 313 626

Sealing Machine 1 2,600 2,600

Office Equipment

Air conditioner 1 19,208 19,208

Laptop 2 27,198 54,396

46
 Printer 1 8,650 8,650

Telephone 1 2,589 2,589

Automatic Hand 1 1,846 1,846

Sanitizer

Information and
Communication

Mobile Phone 1 12,999 12,999

Wi-Fi 1 1,499 1,499

Disaster Response
and Rescue

CCTV Camera with 4 17,500 17,500

system

Fire Extinguisher 2 1,100 2,200

First Aid Kit 1 1,000 1,000

Total Php270,441.00 Php393,438.00

Sources: Shopee, Lazada

Table 3.3 shows that machinery and equipment to be used in the business operations.

Machineries are the one to be used in making the coffee, preserving ingredients and storing

pastries. Office Equipment are the electronic items to be found in office. Information and

communication Equipment includes the laptops, telephone and printer for official business use

for its clients and monitoring social media website. For the safety and security of the customer,

employees and the place fire extinguisher, first aid kit and CCTV camera will be installed.

Furniture and Fixtures

In an office, furniture and fixtures are larger pieces of movable equipment. They are

classified as a non-current asset because they are used in the sector in an indirect manner. It

includes products such as customized cabinet set, table and chairs and the like. The business will

47
purchase the bare minimum of furniture and fixture during the first year of operation, but once

the operation is developed, it will acquire additional items as required. The price of each object

is calculated using data from the internet. These assets have a five-year estimated useful life and

will be depreciated using the straight-line approach with a residual value of 5%.

Table 3.4

Furniture and Fixtures

Particulars Quantity Unit Cost Total Cost

Single Sofa 4 Php 639 Php 2,556

Nordic coffee table 4 1,297 5,188

Modern Windsor 8 2,050 16,400

chair

Folding table 4 1,200 4,800

Rectangular snack bar 2 2,380 4,760

table set

Office chair 4 999 3,996

Corner desk L shaped 2 3,888 7,776

office table

Customized Cabinet 1 25,000 25,000

set

Stackable 3-layer 1 2,500 2,500

shelf

Total Php 72,976.00

Source: Shopee, Lazada, Norpel furniture and Furniture Manila

The Single sofa are seat cushion length 40-30 cm, total length 65-95 cm, height 70-90

cm, and width 55-75 cm. Nordic coffee table is a 60cm square white marble pattern. Modern

Windsor chair has length 45cm, height 86cm and width 45 cm. folding table 55cm*55cm and

48
height 75cm*75cm. Office chair is a 360 degrees swivel function are adjustable and comfortable.

It used 12mm plywood for a stronger seated frame and 300mm, steel leg with PU wheel. Corner

desk L shaped office table is constructed by high quality P2 MDF board metal frame. The desk

frame is made of heavy-duty powder-coated steel which ensures stability and durability, 1.2” by

0.6” bar width strong enough to support heavy duty parcels. Stackable 3-layer shelf is a classic

contemporary bookcase. Rectangular snack bar table set is a one table and two stools. This self is

easy to assemble with complete instructions and is a snap to keep clean with a damp cloth.

Maximum weight load per shelf 5kg.

Supplies

Supplies of Barakoffee will be categorized into five. These are the Ingredients supplies

needed in making the coffee, Pastries supplies that will come from the Pastries supplier, Office

supplies or the consumable materials needed for office work, Cleaning supplies needed in

maintaining the cleanliness of the coffee shop, and To go supplies or the supplies that allow

customers to order drinks and menu items for take-out.

Ingredients Supplies

This are the supplies for the products of the business that will offer to the customers.

Ingredients Supplies

Table 3.5

Quantity Unit
Particular 2021 2022 2023
(Month) Cost

49
 Liberica
(coffee 5 395 23,700.00 24,885.00 26,129.25
packs)

Arabica
(coffee 5 477 28,620.00 30,051.00 31,553.55
packs)

Excelsa
(coffee 5 387 23,220.00 24,381.00 25,600.05
packs)
Whole milk
4 87 4,176.00 4,867.13 5,110.49
(1L)

Vanilla flavor
1 680 8,160.00 8,568.00 8,996.40
syrup (1L)

Chocolate
1 690 8,280.00 8,694.00 9,128.70
syrup (1L)

Chocolate
powder (1 2 352 8,448.00 8,870.40 9,313.92
kg)

Caramel
2 349 8,376.00 8,794.80 9,234.54
syrup (1kg)

White
chocolate 2 350 8,400.00 8,820.00 9,261.00
syrup (1L)

White
chocolate
1 200 2,400.00 2,520.00 2,646.00
powder (1
kg)

50
 Chocolate
hazelnut 1 189 2,268.00 2,381.40 2,500.47
syrup (1kg)

Refined
4 100 4,800.00 5,040.00 5,292.00
Sugar (1 kg)

Chocolate
fudge syrup 2 150 3,600.00 3,780.00 3,969.00

(400g)
Chocolate
chips 3 230 8,280.00 8,694.00 9,128.70
(600g)
Whipped
cream
2 250 6,000.00 6,300.00 6,615.00
(10 pcs in a
box)

Boba pearls
4 150 7,200.00 7,560.00 7,938.00
(1 kg)
Pearls
4 110 5,280.00 5,554.00 5,821.20
(1 kg)

Nata (1 kg) 2 244 5,856.00 6,148.80 6,456.24

Alaska
Condensed 20 57 13,680.00 14,364.00 15,082.20
milk

Alaska
Evaporated 20 43 10,320.00 10,836.00 11,377.80
Milk

Royal milk
tea powder 1 380 4,560.00 4,788.00 5,027.40
(1kg)

51
Winter melon
milk tea 1 290 3,480.00 3,654.00 3,836.70
powder (1kg)

Hazelnut
milk tea 1 200 2,400.00 2,520.00 2,646.00
powder (1kg)

Caramel milk
tea powder 1 290 3,480.00 3,654.00 3,836.70
(1kg)

Taro milk tea

1 380 4,560.00 4,788.00 5,027.40
powder (1kg)

Chocolate
milk tea 1 290 3,480.00 3,654.00 3,836.70
powder (1kg)

Mocha milk
tea powder 1 270 3,240.00 3,402.00 3,572.10
(1kg)

Cookies and
cream milk
1 200 2,400.00 2,520.00 2,646.00
tea powder
(1kg)

Black forest
milk tea 1 270 3,240.00 3,402.00 3,572.10
powder (1kg)

52
Double Dutch
milk tea 1 230 2,760.00 2,898.00 3,042.90
powder (1kg)

Choco oats 7,140.00

milk tea 1 595 7,497.00 7,871.85
powder (1kg)

Choco java
milk tea 1 265 3,180.00 3,339.00 3,505.95
powder (1kg)

Belgian
chocolate
milk tea 1 570 6,840.00 7,182.00 7,541.10
powder
(1 kg)

Café
macchiato
1 280 3,360.00 3,528.00 3,704.00
milk tea
powder (1kg)

Caramel
fudge milk
1 200 2,400.00 2,520.00 2,646.00
tea powder
(1kg)

Winter malt
milk tea 1 200 2,400.00 2,520.00 2,646.00
powder (1kg)

53
 Choco malt
milk tea 1 200 2,400.00 2,520.00 2,646.00
powder (1kg)

Total Php 252,384.00 Php265,495.53 Php278,759.41

Sources: Lazada, Shopee, iprice.ph, milkteasupplier.ph, cafedelipa.ph

Table 3.5 shows the monthly expenses of the ingredients that the business will need to

make a product that will be serve to the customers.

Pastries Supplies

Pastries supplies are the ideal accompaniment to a freshly brewed cup of coffee. Helen’s

kitchen Bakeshop in Matabungkay, Lian Batangas is the primary supplier of our pastries. Their

delicious cakes, pastries, and cookies are well-known among tourists and locals in that area.

Table 3.6

Pastries Supplies

Particular Quantity Unit Cost 2021 2022 2023

(Month)

Yema Cake 8 500 Php48,000.00 Php48,960.00 Php49,939.2

Matcha Cake 8 500 48000 48960 49939.2

Dark 8 600 57600 58752 59927.04

chocolate
Cake

Oreo 8 600 57600 58752 59927.94

Cheesecake

Red Velvet 8 550 52800 53856 54933.12

Cake

54
Choco chip 8 250 24000 24480 26969.6
Banana slice

Ensaymada 192 (6pcs.) 150 49000 49980 50979.6

Caramel 192 (6pcs.) 49000 49980 50979.6

Cinnamon
Bun 150

Double 8 500 48000 48960 50959.2

Chocolate
Brownie

Choco Chip 192 (4pcs) 50 29400 29988 30587.76

Cookie

Oatmeal 192 50 29400 29988 30587.76

Cookie

Matcha 192 50 29400 29988 30587.76

Cookie

Total Php522,200.00 Php532,644.00 Php546,318.48

Source: Helen’s Kitchen Bakeshop employee

Table 3.6 shows the corresponding prizes of the pastries given by the bakeshop supplier.

These pastries supplies will go well with the coffee offer by Barakoffee. It will show the

estimated number of Pastries supplies needed for one month × 12 for one year of business

operations, and the total estimated cost.

Office Supplies

Office supplies are consumables and equipment that are often used in offices by

companies and other organizations, as well as by individuals who are involved in written

correspondence, recordkeeping or bookkeeping, janitorial and cleaning, and storage of supplies

or records. Tiny, expendable, daily-use items and consumable goods, such as pens, printer ink,

and paper, are usually included in the category of office supplies.

55
 Table 3.7

Office Supplies

Particular Quantity Unit Cost 2021 2022 2022

Portable Money 1 Php 749.00 Php 749.00 0.00 0.00

Secret Safe Box

Lock

Sticky notes 10 8.00 80.00 82.4 84.87

60 sheets 2 125.00 250.00 257.5 265.25

monthly or

weekly planner

Record /log 2 98.00 196.00 201.88 207.94

books

Printer Ink 9 75.00 675.00 695.25 716.11

Short bond 10 148.00 1480.00 1524.4 1570.1

paper

Long bond paper 8 179.00 1432.00 1474.96 1519.21

Folder 10 5.00 50.00 51.5 51.55

Puncher 2 349.00 698.00 0.00 0.00

Stapler 2 85.00 170.00 175.1 180.35

56
Ring binder 12 30.00 360.00 370.80 381.92

Paper clips 12 12.00 144.00 148.32 152.77

Ball pen 12 10.00 120.00 123.6 127.31

Scissor 3 58.00 174.00 179.22 184.60

Correlation tape 5 20.00 100.00 103 106.09

Double sided 5 25.00 125.00 128.75 132.61

tape

Glue 3 55.00 165.00 169.95 175.05

Calculator 2 278.00 556.00 572.68 589.86

Official receipt 12 105.00 1260.00 1297.8 1335.73

Total Php Php7,557.1 Php7,781.32

8,785.00 1

Sources: Lazada and Shopee

Table 3.7 shows the supplies needed by employees to complete their daily tasks on the

first year of operation. These supplies will be used to produce work orders, financial reports, and

other required documents. In that year, all materials would be considered released and used.

To-go Supplies

57
 Table 3.8

To-go Supplies

Particular Quantity Unit Cost 2021 2022 2022

Monthly

Coffee Cup 5 packs 120 Php 7,200.00 Php 7,560.00 Php 7,938.00
Sleeves

Coffee Stirrers 2 packs 80 1,920 2,016 2,117

Boba Straws 6 packs 69 4,968 5,216 7,817

Plastic Cup 3 bundle 88 3,168 3,344 3,511

Carrier

Coffee Cup 5 bundle 410 24,600 25,830 27,122

Carrier

Paper Hot Cups 1 box 2,330 27,960 29,358 30,826

Coffee Lids 1 box 1,240 14,880 15,624 16,405

Napkins 5 – ply brown 100 6,000 6,300 6,615

Total Php90,696.00 Php95,248.00 Php102,351.00

Table 3. shows the to-go supplies that allow customers to order drinks and menu items

for take-out.

Cleaning supplies

58
 Table 3.9

Cleaning supplies

Particular Quantity Unit Cost 2021 2022 2022

Dishwashing 1 pair 250 250 263 176

Gloves

Bleach 1 gallon 179 179 188 197

Microfiber Cloths 10 pcs 13 130 137 144

Broom and 1 150 150 158 166

Dustpan Set

Garbage Can 5 149 745 728 764

Garbage Bag 3 rolls 28 84 88 92

Sponges 12 pcs 40 480 504 529

Hand Towels 3 pcs 15 45 47 49

Mop with 1 369 369 387 406

wringer
bucket
Door Mat 5 pcs 136 168 176 185

Soap 1 42 42 44 46

Total P 2,642.00 P 2,720.00 P 2,754.00

Table 3. shows the cleaning supplies of Barakoffee café

Training Expenses

59
 The training expenses are the costs incurred for seminar and trainings.

Training Expenses

Table 3.10

Particulars Quantity Unit Cost 2021 2022 2023

Online 2 2,500.00 5,000.00 5,000.00 5,000.00

Barista
training

Business 2 3,500.00 7,000.00 7,000.00 7,000.00

Coach
Seminar

Total 12,000.00 12,000.00 12,000.00

Sources: Chao.ph, Businesstrainingph.com

Table 3.8 shows the seminars and trainings that the business needed to do to train the

employees. The business owners will also have seminars on how to handle the café.

Rental Expenses

Rental expenses are the costs incurred for leasing a property and vehicle.

Table 3.11

Rent expense

Particulars Quantity Unit Cost 2021 2022 2023

Store rent 12 Php 40,000 Php Php Php

480,000.00 480,000.00 480,000.00

Total Php Php Php

480,000.00 480,000.00 480,000.00

Source: owner of abantihan dormitory

60
 Table 3.9 shows the rent expenses to be incurred by the business. Rental fee will be based
on the leased agreement with the owner of the building.
Fuel, Gas and Oil
Table 3.12
Fuel, Gas and Oil Expenses

Particulars Quantity Unit Cost 2021 2022 2023

Fuel 12 P5,610.00 P67,320.00 P70,686.00 P74,220.30
Total P 67,320.00 P70,686.00 P74,220.30

Sources: autodeal,com

Table 3.9 shows the estimated fuel expenses of the business. The price of 1 liter of fuel

are 51 pesos, and it is equal to 10.63 kilometers. Barakoffee assumed to have 100 deliveries in a

day, and by that the proponents will be consumed 5 liter a day. Therefore, allotted budget will be

P255.00 per day for 22 working days in a month or 264 days in a year. The route will be all

around the area of Nasugbu,Batangas.

Repair and Maintenance Expense

Repair and maintenance expense are costs to be incurred for the maintenance of the office

and the equipment being used in the operation.

Table 3.13
Repairs and Maintenance Expense

Particulars Qty Unit Cost 2021 2022 2023

4 Php Php 4,088.00 Php
Store Wall Paint 1,022.00 Php 4,292.00 4,507.50
Machinery and Equipment 1 565 .00 565.00 593.00 623.00
Php 4,653.00 Php 4,885.00 Php
Total 5,130.00

Sources: Salary Exployer, and ph.indeed,com

61
 Table 3.10 shows the estimated costs to be incurred for maintaining the store and the

equipment to be used. The average labor rate of 2d artist in the Philippines is Php 1,022.00 per

day. To maintain the quality of the wall painting in the store, there will be repair for every 3

months. The average labor rate of a repairman in the Philippines is 565 per day. These costs are

needed to ensure that the equipment are functioning as intended for their use.

Utilities

Utilities are costs incurred by using public utility services such as the telephones,

electricity and internet, which account for a large portion of a business’s expenses.

Utilities and Communication Supplies

Table 3.14

Particulars Providers Monthly 2021 2022 2023

Electricity Meralco Php 18, Php Php Php

750.00 225,000.00 249,750.00 277,222.50

Internet Converge 1,500.00 18, 000 18,000 18,000

expenses

Telephone PLDT 199.00 2,388.00 2,388.00 2,388.00

Total Php 245, Php Php

388.00 270,138.00 297,610.50

Sources: Meralco, Converge, PLDT

Table 3.9 shows the utilities expenses that will be incurred in the first year of business.

Electricity costs would include office lighting, air conditioning, and electronic equipment

charging.

62
Representation Expenses

Table 3.15
Representation Expense

Particulars 2021 2022 2023

Meals and others Php 49,014.00 Php 49,259.07 Php 49,504.14

Total Php Php Php

49,014.00 49,259.07 49,504.14

Table 3.11 display the total cost for meals and other representation that the company

would incur.

Miscellaneous Expenses

Table 3.16
Miscellaneous Expense

Particulars Unit Cost per Unit 2021 2022 2023

Uniforms 7 P1,000.00 P7,000 P0.00 P0.00
Face Mask 50 100.00 5,000.00 5,140.00 5,283.92

Face Shield 15 50.00 750.00 771.00 792.59

Total Php Php Php 6,076.51

12,750.00 5,911.00

Table 3.12 shows the expected costs to be incurred by the company for uniforms and

product that can help combat the virus’s spread since the corona virus is still a concern.

63
Waste Management

Barakoffee will adhere to the mandates of the local government unit and the concerned

national government agencies on the proper segregation and disposal of the garbage. Implement

recycling or composting programs is one of the strategies to reduce the waste of barakoffee.

According to Perfect daily Grind coffee grounds can be used as fertilizer for acid-loving plants.

They are a great component in a compost pile. The coffee shop will also encourage customers to

bring their own tumbler to reduce the use of disposable cups. According to LS Retail most

disposable coffee cups cannot be recycled, even though consumers often think they can. Most

are lined with polyethylene to make it waterproof, but it also makes it non-recyclable for most

facilities.

Generalization

Barakoffee Two-Dimensional Black & White Café offers a good service and best quality

of products for coffee lovers out there in Nasugbu. The office will be located at J P Laurel St.,

Abantihan Building, third floor, 4231, Nasugbu, Batangas and the business will open from 7:00

am to 4:00 pm every Mondays to Saturday. The business’s layout is well-organized, as is the

service procedure for obtaining the business’s products. Proponents must invest in equipment,

leasehold improvements, supplies, and expenses just as they would in any other business, to

provide an excellent service to their customers. The business will also ensure that good waste

management policies are followed to avoid environmental complaints.

Chapter 4

ORGANIZATION AND MANAGERIAL SPECIFICATION

64
 This chapter discusses the form of business structure required for the proposed business,

as well as the organizational structure, manpower requirements, policies, and legal requirements.

This chapter addresses the duties and responsibilities of each member of the organization to plan,

organize, direct and control towards achieving the goals and objectives of the organization.

Objectives of the Chapter

The general objective of the study is to assess the management capability of the business

by means of identifying the form of the business organization, capital contribution and

cooperation of the partners in the study and the business operation with legal process.

Specifically, it attempts to discuss the following objectives:

1. To determine the form of business organization and ownership;

2. To establish the organizational structure of the business;

3. To determine the required manpower needed in the organization;

4. To assess the benefits and compensation that the company will provide;

5. To regulate the different policies and strategies that the business will implement; and

6. To distinguish the legal requirements of the business.

Form of Business Ownership

The business will be registered by the following legal structure of Limited Liabilities

Partnership. According to Andrew Bettie Limited Liability Partnership are a flexible legal and

tax entity that allows partners to benefit from economies of scale by working together while also

reducing their liability for the actions of other partners. In a limited liabilities partnership, the

partner is not accountable from the negligence of any other partner and protects the member's

personal assets from the liabilities of the business.

65
 The partners are composed of Catherine N. Gloria, Mae Ann N. Hernan, Angelika B.

Javier and Jizelle M. Ricalde. Each partner represents the business, and has equal rights in the

management, decision making and control of the business. However, Catherine N. Gloria will act

as the managing partner of the business and at the same time capital partner. The initial

investment of the partner is Php 2,800,000.00 and thereafter, there will be equal distribution of

profits and losses of the business at year end. The proposed Article of the Partnership is attached

in Appendix D.

Organizational Structure

Managing Partner

Manager

Delivery Man

Regular Barista Regular Barista On - call Barista

Figure 4.1
BARAKOFFEE Organizational structure

Figure 4.1 shows the organizational structure that will be used by the proposed business.

The Managing partner will oversee the overall operations of the business and will supervised the

manager and baristas. The manager will be monitoring the scheduling and word performed by

66
the senior and junior barista, on-call barista, and delivery man. Ultimately, the (2) regular

barista’s will be the person in – charge in preparing beverages and assisting customers. The on-

call barista will be the one who will replace one barista when absent or on leave, and the

delivery man will be in charge in delivering orders to the customers.

Manpower Requirements

One employee is needed in the initial operations of the business who will act as the

manager. The senior barista, junior barista and delivery man will be hired depending on the need

qualifications towards the job and on call barista will be called of needed.

The job description includes the responsibilities of each workers and job specifications

details qualities needed in the certain job. Listed below are the workers and pastries supplier

respective responsibilities and specifications.

Job Title: Office Staff

Job Title: Manager

Duties and Responsibilities Job Specifications

 Overseeing daily business operations,  Degree in Business Management or a

assigning weekly performance goals
and assuring their completion;
 Developing and implementing growth
strategies;
 Evaluating performance and
productivity;
 Oversee recruitment and training of
new employee;
 Provide solutions to issues (e.g., profit
decline, employee conflicts, loss to
business to competitors)
 Address customer inquiries promptly
Master’s in Business Administration;
 Have 2 to 3 years’ experience of being
a manager.
 Good knowledge of different business
functions;
 Strong leadership qualities;
 Excellent communication skills;
 Having a strong work ethics;
 Outstanding organizational and
leadership skills
 Good interpersonal skills;
 Have meticulous attention to detail;

67
 and professionally and ensure  Proactive nature
customer satisfaction
Motorcycle Driver
Duties and Responsibilities
 Loading, transporting and delivering
items to clients or businesses in a safe,
timely manner;
 Reviewing orders before and after
delivery to ensure that orders are
complete, the charges are correct, and
the customer is satisfied;
 Accepting payments for delivered
items;
 Providing excellent customer service,
answering questions, handling
complaints from clients;
 Adhering to assigned routes and
following time schedules;
 Abiding by all transportation laws and
maintaining safe driving record; and
 Preparing reports and other documents
relating to deliveries
Job Title: Pastries Supplier
Duties and Responsibilities
 Preparing and making baked goods such
as cookies, cakes and pastries;
 Gathering ingredients to measure and
mix them, operating ovens and grills, and
keeping the work surfaces and equipment
clean and sanitary;
 Decorating pastries using different icing,
topping etc. to ensure the presentation
will be beautiful and exciting;
 Check quality of material and condition
of equipment and devices use for
cooking;
 Maintain a lean and orderly cooking
station and adhere to health and safety
Job Specifications
 High school diploma or equivalent;
 Valid driver’s license issued by the
state where you intended to work;
 Clean driving record;
 Willingness to adhere to assigned
routes, schedules, safety procedures
and transportation laws;
 Strong time management and customer
service skills; and
 Attention to detail
Job Specifications
 Proven experience as Pastry Chef, baker
or relevant role;
 Great attention to detail and creativity;
 In depth knowledge of sanitation
principles, food preparation and baking
techniques and nutrition;
 Working knowledge of baking with
ingredient limitation (pastries that are
gluten free, sugarless etc.)
 Certificate in culinary arts, pastry-
making, baking or relevant field;
 Demonstrated knowledge of and skill in
ability to safely and effectively operate
standard foodservice equipment;
68
 standards;
 Testing ingredients and finished goods to
ensure that each item meets food safety
and quality controls; and  Flexibility to work around customer
 Ensuring that deliveries are fulfilled
accurately and on time
Job Title: Senior Barista
Duties and Responsibilities
 Prepare or serve hot or cold beverages,
such as coffee, espresso drinks, blended
coffees, or teas.
 Take orders and accept payment
 Clean or sanitize work areas, utensils,
or equipment.
 Clean service or seating areas.
 Check temperatures of freezers,
refrigerators, or heating equipment to
ensure proper functioning.
 Describe menu items to customers or
suggest products that might appeal to
them.
 Receive and process customer
payments.
 Maintain a clean work environment
Job title; Junior Barista
Duties and Responsibilities
 Attention to detail, especially when
performing quality inspection on
ingredients and product; and
demands
Job Specifications
 Have 2-3 years’ experience in being a
barista
 Have college diploma.
 Can present trainings certificate.
 Being efficient and organize.
 Know how to build good relationships
with customers
 Can work well under pressure
 Have strong communication skills.
Listen well and communicate in a
professional and friendly manner.
 Have passion and dedication for work.
 Multi-tasking ability
Job Specifications
69
  Assist senior barista in preparing or
serve hot or cold beverages, such as
coffee, espresso drinks, blended
coffees, or teas.
 Clean or sanitize work areas, utensils,
or equipment.
 Clean service or seating areas.
 Check temperatures of freezers,
refrigerators, or heating equipment to
ensure proper functioning.
 Describe menu items to customers or
suggest products that might appeal to
them.
 Receive and process customer
payments.
 Maintain a clean work environment
 Have at least one year experience in
being a barista
 High school Diploma
 Can present trainings certificate.
 Being efficient and organize.
 Know how to build good relationships
with customers
 Can work well under pressure
 Have strong communication skills.
Listen well and communicate in a
professional and friendly manner.
 Have passion and dedication for work.
 Multi-tasking ability

Workers’ Compensation

Compensation is the key to successful human resource management. It basically entails

aligning employee efforts with the organization’s goals and objectives. As shown in the table

below, the proposed business will have a justifiable compensation and benefit package.

Table 4. 1

Compensation Schedule

On call
Particulars Senior barista Junior barista Delivery man
Office Staff barista
Number of personnel 1 1 1 1 1
Multiply: Number of
288 288 648 hrs 288
days 288
Per hour
Multiply: Labor rate 500 400 300
625 54.94
Annual Basic ₱ ₱ ₱ ₱
₱ 86,400.00
Salary 180,000.00 144,000.00 115,200.00 35,601.12
Add benefits:
Mandatory

70
 contribution
Social Security
12,870 10,320 8,280 0 6,240
System
Philhealth 5,250 4,200 3,360 0 0
13th month pay 15,000 12,000 9,600 0 7,200
Total Annual
₱ ₱ ₱ ₱
Compensation ₱ 99,840.00
213,120.00 170,520.00 136,440.00 35,601.12
(2021)
₱ ₱ ₱ ₱ ₱
2022
223,776.00 179,046.00 143,262.00 35,601.00 104,832.00
₱ ₱ ₱ ₱
₱ 110,073.60
2023 234,964.00 187,998.30 150,425.10 37,381.00
Source: DOLE, Pay scale, SSS, Philhealth,

Table 4. 1 shows the computation of the total company of the office staff, senior barista

and junior barista in the first year of operation. There are 5% increase in the salary of the

employees in 2021

Company Policies

Company policies and procedures set up the rules of conduct inside an organization,

outlining the obligations of both workers and managers. Company policies and procedures are in

put to secure the rights of workers as well as the business interest of employers. Depending on

the needs of the organization, different approaches and methods establish rules with respect to

worker conduct, attendance, dress code, security and other areas related to the terms and

conditions of employment.

Personnel Policies

1. The employees will report to their work on time and strictly start from seven o’clock in

the morning to seven o’clock in the evening from Sunday to Friday.

71
2. All employees will be given a five-minute grace period for the time that they will come

late; the said five minutes should be offset. Two times late will be considered absent.

They must observe proper work decorum.

3. Absences without a letter of leave of absence will not be paid. The management will not

be tolerating absenteeism.

4. Absences from the business without prior approval will be treated as an offense.

Absences such as due to an accident or sickness are permitted.

5. The employees will also have one-hour lunch break starting at twelve o’clock noontime

to one o’clock in the afternoon. The employees will only be allowed to leave the premises

during breaks.

6. The employees have been regularly employed after six months of employment will have

a vacation leave of 5 days per year. Employee who will be planning to go in a vacation

must prepare a leave form ahead of time.

7. Employees should wear their uniforms, face shield and facemask at all times. Remove it

if necessary.

8. Employees are not allowed to use their mobile phones while working. For this purpose,

the employees are directed to give the contact details of the office staff to their relatives

for emergency purposes.

Client Policy

72
 1. Unsatisfied customers and complaints to the product offered and services rendered by the

employees will be handled by the manager. Any decision will be based on the

professional judgment of the management

Legal Requirements

The partner will comply with the legal requirements for establishing the business and the

partners will honor the entire contract they will enter into.

Table 4.2
Business Registration Fees

Kinds of fees/ Taxes 2021 2022 2023

BIR Registration Php 500.00 Php 500.00 Php 500.00

DTI/ SEC Registration Php 500.00 0 0

Barangay Business Permit Php 100.00 0 0

Zoning clearance Php 225.00 Php 250.00 Php 250.00

Sanitary Permit/Health Php 250.00 Php 250.00 Php 250.00

Clearance

City Environmental Fee Php 250.00 Php 250.00 Php 250.00

Fire Safety Inspection Fee Php 300.00 Php 300.00 Php 300.00

Police Clearance Php 450.00 0 0

Tax Clearance Php 80.00 Php 80.00 Php 80.00

Business Name Registration Php 230.00 0 0

TOTAL Php 2,885.00 Php 1,630.00 Php 1,639.00

Table 4.2 shows the costs to be paid in relation to business registration of the business on

its first year of operation. The partners will personally apply for this registration and licensed.

73
Generalization

Barakoffee Two Dimensional Black & White Cafe will be formed as a Limited liabities

partnership type of business which consists of four partners namely Catherine N. Gloria, Mae

Ann N. Hernan, Angelika B. Javier and Jizelle M. Ricalde. Each partner will represent the

business, and has equal rights in the management, decision making and control of the business.

Catherine N. Gloria will act as the managing partner of the business and at the same time capital

partner. The initial investment of the partner is Php 2,800,000.00 and thereafter, there will be

equal distribution of profits and losses of the business at year end. Organizational policies are

also intended to act as basic instructions for achieving the business’s goals. Moreover, employee

pay and benefits are structured equitably, taking into account their duties and responsibility. The

proponents also ensures that all legal conditions are met in order to operate and run the proposed

business freely and legally, and that the management can pay all necessary taxes.

Chapter 5

STRATEGIC PLAN

74
 This chapter describes the detailed strategies to be implemented by the business. It

describes the existing competitions of the business, potential customers, core competence,

market position and image, SWOT analysis and the strategic action plan.

Objectives of the Chapter

The general objective of the study is to determine the strategic plan of the business.

Specifically, it attempts to discuss the following objectives:

1. to recognize the existing competitors of the business;

2. to determine the potential customers;

3. to determine the core competence of the company;

4. to determine the business’ market position and image;

5. to determine the strengths and weaknesses of the company;

6. to analyze the opportunity and threats of the business; and

7. to determine the strategic action plan to be implemented by the company to attain its

objectives.

Existing Competitors

As inquired from the Business Permit Licensing Office (BPLO) of the Municipality of

Nasugbu, Batangas there are 19 existing registered café businesses that offer different kinds of

foods and beverages in the area. They offer wide variety of foods and drinks such as different

flavor of milk tea, fruit tea, Expresso, Rice meals, Pica-pica, sandwiches, pasta, waffle ice

75
cream, cakes and cookies. Furthermore, result of the survey showed that two (2) out of ten (10)

cafés earned less than Php 350,000. 00 annually, three (3) earned Php 350,000.00 – Php

450,000.00, three (3) earned Php 550,000.00 – Php 650,000.00 and two (2) earned Php

650,000.00 above. In all the ten (10) café we survey two (2) answered “no “in the question, “if

all the products in the menu available?”. There are 1-3, or 3-4 product in the menu not available.

As barakoffee’s will also going to offer pastries not only the cafés are the competitors of

the business but also all the bakeshops near the area. Some of them offered different flavor and

types of cakes, cookies, and bread. Having a delicious breads and pastries are the best partner

that complement the drinks will going to offer.

Potential Customers

Potential Customer is someone who is capable of becoming a purchaser of product and/or

services from an organization. BARAKOFFEE café is aiming to cater the needs of the customers

who enjoy coffee, drink coffee, and want a nice ambiance and cozy place to release stress.

Workers (professional and non-professional), students and people residing in Nasugbu,

Batangas, will be the target market of the business. Customers who are coffee drinkers,

workaholic, studying and want to relax are the primary target of the business. Moreover, those

household in the nearby vicinity are also included in the target market of the business.

Core Competence

76
 The competitive advantage of the business is its two-dimension black & white theme,

different varieties of drinks and pastries, and its human resources. The two-dimension black &

white theme is a very famous café theme in other countries. Some of the coffee shops here in the

Philippines already adapt this kind of theme, and Barakoffee will going to be the first two

dimensional black & white theme café here in Nasugbu, Batangas. The drinks will include

different flavors of milk tea, Ice blend coffee, Expresso and Barakoffee. Based on the survey,

and by knowing the menu of 10 coffee shops, barakoffee’s is the only café that will offered

Kapengbarako, and more choices of Expresso and ice blend coffee. The pastries will come from

Helen’s bakeshop in Matabungkay, Lian Batangas which are famous in that area and it will

perfectly complement the drinks offered by the business.

Having a strong investment in human resources is also the key for successful business.

Barakoffee will going to provide training program for its barista to improve their skills and

acquire more knowledge. In building a successful team it must have a reliable leader that will

monitor and guide its member. To have a harmonious relationship towards the staff the General

Manager will be open with all the questions and suggestions. Having a proper staff orientation

regarding their duties and responsibilities will be implemented to ensure better productivity and

results.

To build a strong connection and gain more loyal customers the business will going to

provide a good customer service. The staff will going to have a proper orientation on how to

properly approach the customers. As for safety and security of the customers are the main

priority of the business social distancing will be practice and every corner of the coffee shop will

always be sanitized.

77
 The business will strictly implement the proper segregation of recyclable plastic. The

coffee grounds will put on a compose pile to be used as a fertilizer. Also, will encourage the

customers to bring their own tumbler or mug to lessen the used of recyclable cup. Other business

does not really care about growing problem in plastic and didn’t do anything to lessen it.

Moreover, the business will be registered with regulatory bodies to prove that the

business is doing the service legally and to gain public trust. This is an advantage compared to

other businesses that operate illegally because more customers prepared to buy with the place

where they can ensure their safety.

Market Position and Image

The customer’s perception of Barakoffee and its services are vital in establishing the

identity of the business. Barakoffee: A Two Dimensional Black and White Cafe will position

itself in the market by providing customers the world’s best café with an excellent service,

friendly and comfortable atmosphere at an affordable price. By positioning the business in the

market with quality product at competitive prices, with a consistent high level of customer

service and a satisfying quality of a product we will see customers continue to increase.

SWOT Analysis

A business must first determine its strengths and weaknesses in able to compete in the

market. To develop an appropriate strategic action plan for the business, the proponents will

identify the business’s opportunities and threats in the market.

Strengths

78
 Attractive store design/layout. The business will be showcasing a two-dimensional café

offering Nasugbuenos the view of five Batangas tourist spots. It will give them a relaxing nature

vibe while sipping their coffees.

Trained employees. Aside from the business's criteria for hiring, the staff would receive

training at the expense of the business.

Good choice of location. The business location is very accessible for the customers

because it is located in J P Laurel St. Nasugbu, Batangas.

Competitive price. The prices of the products offered by the business is cheaper than the

other competitors. The business will ensure that the prices is appropriate by the product’s

quality.

Good quality products and service. The proponents will ensure the satisfaction of the

customers by providing good quality of service and products.

Weaknesses

New in the business. The barakoffee two-dimensional café is a new business in the

market thus there will be challenges in entering the market.

Low brand awareness. The business is still new in the market, for this reason the brand is

still not known.

Opportunities

Attract new customers through special offers. The proponents will offer discounts for

customers to be motivated to comeback in the coffee shop again.

79
 Build customer relationship. The proponents will ensure to show the customers a good

quality of service in accommodating them in their needs.

Demand for home delivery service. The demand for home deliveries is increasing because

of covid-19 pandemic, the proponents will take advantage of this situation to offer services to

their possible customers that want to avail of the business service.

Offering other products. The business with a product such as coffee can potentially

expand the products line by selling raw coffee beans, and other coffee related products for higher

profit margins than coffee.

Threats

Consumer becoming price sensitive. The customers might compare the price of the

offering products of the business to the other competitors that may lead them to be sensitive to

price that the proponents offer to the customers.

Existing competitors. The other coffee shops that have established their business have

advantage because they have built better strategies to gain more customers.

Increase in supplier cost. The prices for raw materials may increase, for that reason the

supplier may increase their price and it may affect the business prices for the offered products.

Strategic Action Plan

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 The business will post advertisements on social media accounts on a regular basis, both

for the business official account and for the personal accounts of its partners. Its aim is to raise

community awareness of the business existence. Similarly, fliers and tarpaulins will be

distributed in prominent locations in Nasugbu, Batangas.

The business partners will continuously analyze and study the industry and its competitor

to keep the product and service being offered will meet the customer’s expectation. With these,

the business will improve its employees' abilities and skills to provide service with productivity,

consistency, and professionalism. The business will gain market and develop relationships with

customers as a result of these efforts to improve business efficiency.

In addition, employees and staff will receive emergency management training and will

develop contingency and business continuity plans in the event of a potential disaster.

Generalization

The business has identified nineteen direct competitors which were from the Municipality

of Nasugbu Batangas that also offered the same product like ours. The core competency of the

business are its two dimension black & white theme, different varieties of drinks and pastries,

and it’s human resources. The main objective of the business is to provide our customers the

world’s best café with an excellent service, friendly and comfortable atmosphere, offering a

world class of coffee experience. The SWOT Analysis showed that the strength of the company

are attractive store design/layout, trained employees, good choice of location, competitive price,

good quality products and service. On the other hand, the business’s weakness is new in business

and its lack of brand recognition.

81
 The business will grab the opportunity to attract new customers through special offers,

build customer relationship, demand for home delivery service and offering other products. The

key threats of the business are consumers become price sensitive, the existing competitors and

increase in supplier cost. The business created a strategic action plan to prepare for its

weaknesses and the risks of challenges it faces, including a successful compensation plan,

emergency training and the implementation of a contingency and business continuity plan.

82
 Chapter 6

FINANCIAL PLANS

This chapter explains the financial aspect of BARAKOFFEE Café’. Specifically, it

discusses about the source of capital requirements, source of funding, total projected cost,

financial assumptions and projected financial statements of the company.

Objectives of the Chapter

The overall objective of the study is to identify the project feasibility of the proposed

business. Specifically, it attempts to discuss the following objectives:

1. to identify the capital requirements;

2. to calculate the total project cost;

3. to determine the source of funding;

4. to identify the financial assumptions; and

5. to figure the financial statements in the next three years.

Total Project Cost

The first phase in presenting the financial aspect of the company is determining the

project expense. The overall project cost is calculated using costs needed in the first year of

service, such as the business facility, materials, supplies, equipment, manpower requirements,

and pre-operational expenses such as permits and licenses.

83
 Table 6.1
Total Project Cost

Fixed Asset Requirement

Leasehold Improvement P 37,318.00

Barakoffee’s Machinery and 393,438.00

Equipment

Furniture and Fixtures 100,206.00 P 530,962.00

Pre and Operating Expenses

Training Expenses 12,000.00

Rent Expense 480,000.00

Repair and Maintenance 4,653.00

Expense

Utilities Expense 245, 388.00

Compensation and Benefits 653,121.12

Fuel, Gas and Oil 67,320.00

Office Supplies Expense 8,785.00

Representation Expense 49,014.00

Miscellaneous Expenses 12,750.00

Pastries Supplies 522,200.00

Ingredients Supplies 252,384.00

Cleaning Supplies Expense 2,642.00

To go Supplies 90,696.00

Advertising Expense 6,000.00

Taxes and Licenses 2,885.00

Cash Contingencies 104,587.88 2,269,038.00

Total Project Costs P2,800,000.00

84
Capital Requirements

The capital required will be determined by the business's total project cost. The business

would need a total investment of P 3,000,000.00

Source of Funds

Table 6.2
Partners’ Contributions

Partners Amount Contributed

Gloria, Catherine N. P 850,000.00
Hernan, Mae Ann N. 650,000.00
Javier, Angelika B. 650,000.00
Ricalde, Jizelle M. 650,000.00
Total Initial Capital P 2,800,000.00

Table 6.2 shows the every partner's potential capital investment. It would be paid for out

of the partners' own savings and other personal assets. The partners will contribute to the

financing of the proposed business's initial operations.

Financial Assumptions

The following assumptions were used in the financial projection and analysis of the

proposed café business.

1. Initial capital requirement. The business has initial capital of P 2,800,000.00 from its

partners which will be used on the first year of operation.

2. Working days. There will be six (6) working days in a week or an average of twenty-four

(24) days in a month and two hundred eighty - eight (288) days in a year. Work schedules of

the manager, baristas and the delivery driver are discussed in Chapter III.

85
3. Accounting reporting period. The calendar year of accounting will be implemented by the

business which will start every January 1 and ends on December 31.

4. Cash. All cash collections will be deposited intact daily to the depository bank. The increase

in cash will be used if there’s a need to purchase new equipment during or after three years

of operations.

5. Inventories. Ingredients supplies inventory will be good for 1 month usage. On the other

hand, Pastries supplies will be delivered by the bakeshop twice a week, and this supplies for

1 week. The office supplies, cleaning supplies, and To-go supplies are expected to be fully

consumed within the year. All purchases from the suppliers will be on cash basis.

Based on the result of the survey, the average percentage of ingredients supplies

expenses is 2.86 % and pastries supplies expenses is 5.64% of the gross revenue. This will

be used to project the estimated costs of the company allotted to the pastry’s supplies, and

ingredients supplies both wet and dry. In addition to that the average percentage for the

office supplies, cleaning supplies and To-go supplies is 1.10% of the gross revenue. This

will be used to project the estimated costs of the company allotted to the office supplies,

cleaning supplies, and To-go supplies.

6. Rental Deposit. The store space will be rented P 40,000.00 monthly and there will be two

months advance amounting to P 80,000.00

7. Property, Plant and Equipment

a. Acquisition of equipment, furniture and fixtures are on cash basis; and

86
 b. The company will apply the straight-line method of depreciation with the 5% residual

value and three to five years estimated useful life.

8. Accounts Payable. Trade payables at year end will be based on the December’s unbilled

utilities for electricity and internet usage.

9. Government Remittances. All employees will be given the mandatory benefits as required

by the Labor Code of the Philippines. The employer and employee share is computed based

on the premium contribution table of SSS, Phil health and Home Development Mutual Fund.

The remaining balance at year end pertains to unremitted contributions for the month of

December.

10. Other Percentage Tax Payable The business will exceed P3,000,000 in the gross annual

receipts which means the business will be considered as a vat registered business; and

a) the mandated other percentage tax of three (3) percent on the gross receipts will be paid

on or before the 25th day after the end of every quarter.

11. Withholding Tax on Compensation Payable. All the employees of the business are

minimum wage earners, thus no withholding tax on compensation shall be required.

12. Final Withholding Tax (FWT) Payable. The partnership will withhold 10% from the

distributive share of individual partners every year end.

13. Expanded Withholding Tax (EWT) Payable. EWT is a tax imposed and prescribed on the

items of income payable to natural or juridical persons, residing in the Philippines, by a

payor-corporation/person which shall be credited against the income tax liability of the

taxpayer for the taxable year. For this purpose, the business will withhold five percent EWT

87
 from its payment to the lessors and thereafter, will be remitted to the Bureau of Internal

Revenue on or before the tenth (10th) day following the close of the month. The business

will withhold 5% of its monthly payment to the lessor of the building. At year end, the

remaining amount will be based on December’s billing.

14. Income Tax Payable. Partnerships are taxed as corporations. The existing corporate income

tax rate is 30% of income before tax. Income Tax Payable is being filed quarterly. The

remaining balance as of year-end represents the 30% of earnings before tax for the 4th

quarter of every year and adjustments, if any.

15. Partners’ Equity. It represents the net worth of the business.

a) Partners will receive return on equity or withdrawal amounting to 80 percent of the net

income which will be equally divided among Four partners.

b) No additional capital planned after the initial investment. It will be reviewed when

unexpected cash needs arise.

16. Product Revenue. This represents the amount paid by the customer for purchasing in

Barakoffee’s. According to Mordor Intelligence, the global coffee market USD 102.02

billion in 2020, and it is projected to reach a growth rate of 4.28 % during forecasts of 2021-

2026. Detailed computation was presented in Chapter II.

17. Direct Labor. This represents the amount paid to office staff, baristas and on call barista as

their basic annual compensation. There will be an increase of 5% annually to their monthly

basic pay.

88
18. Salaries and Wages. The office staff will be paid on the 15th and 31st day of each month.

When the 15th and 31st fall on Sunday or holiday, it will be paid on the day prior that

period. There will be an increase of 5% annually to their monthly basic pay.

19. Employee Benefits. Employees are entitled to mandatory benefits such as SSS, PhilHealth

and 13th month pay.

20. Training Expenses. There will be online barista training for senior and junior barista

amounting to P 5,000.00. In addition, business coach seminars will be attended by the

partners and employees in relation to business management, consumer behavior, disaster

response and the like.

21. Rent Expenses. Amount to be paid for use of lessor’s property.

a) Rent on Building. Lease term will be good for one year and renewable thereafter.

Payment terms will be one-month advance and two months deposit at a monthly rate of

P 40,000.00 to be paid every end of the month. Sample Contract of Lease is shown in

Appendix F.

22. Fuel, Gas and Oil. The amount that will be incurred for the delivery of products to the

customers. The projected daily usage will be P255.00 per day for 22 working days in a

month or 264 days in a year.

23. Representation Expenses. This pertains to the disbursements for meals and gifts for

employees and clients. The allowable limit set by the Bureau of Internal Revenue for this

type of expenses is 1% of service revenue.

24. Utilities. These are the expenses for electricity and internet usage. Detailed computation is

presented in Chapter 3.

89
25. Advertising Expenses. The expenses were calculated depending on the business's

marketing mix, which includes tarpaulins, social media, posters, and flyers. Following that,

the business would concentrate on social media ads, such as Facebook post boosting and

conversions.

26. Repairs and Maintenance. Costs to be incurred for maintaining the store and the

equipment to be used. The average labor rate of 2d artist in the Philippines is Php1,022.00

per day. To maintain the quality of the wall painting in the store, there will be repair for

every 3 months. The average labor rate of a repairman in the Philippines is Php565.00 per

day.

27. Taxes and Licenses. The costs to be paid in relation to business registration of the business

on its first year of operation s are amounted to Php2,885.00. The percentage tax to be paid is

based on 3% of gross revenue.

28. Miscellaneous Expenses. There are some unexpected expenses in every business. Uniforms

and items that can be used to deter the transmission of the corona virus were considered for

this research.

29. Income Tax Expenses. Business partnerships are taxed at 30% same with corporations.

30. Inflation Rate. According to BSP (2021) the latest 2021 inflation rate projection is 4.2%

caused by the supply side pressures while the projection of inflation rate in 2022 is 2.8%.

This information will be use to adjust the costs of the projected expenses.

Financial Statements

Table 6.3
Projected Statement of Financial Position
BARAKOFFEE Café

90
 Projected Statement of Financial Position

as at December 31, 2021 – 2023

2021 2022 2023

ASSETS

Current Assets

Cash 2,588,300.51 3,008,759.06 3,426,850.74

Inventory 876,707.00 903,664.64 935,210.21

Rent Deposit 80,000.00 80,000.00 80,000.00

Total Current Assets 3,545,007.51 3,992,423.70 4,442,060.95

Non-Current Asset

Property, Plant & Equipment (net) 493,644.00 493,644.00 493,644.00

Total Non-Current Assets 493,644.00 493,644.00 493,644.00

TOTAL ASSETS 4,038,651.51 4,486,067.70 4,935,704.95

LIABILITIES & PARTNERS' EQUITY

Current Liabilities

Accounts Payable 0.00 0.00 0.00

SSS and PHIC Payable 50,520.00 53,046.00 55,698.30

Withholding Tax Payable 318,626.17 358,003.33 370,639.53

Percentage Tax Payable 69,391.83 73,085.10 76,274.55

Income Tax Payable 413,851.75 421,899.95 441,237.54

Total Liabilities 852,389.75 906,034.38 943,849.92

Partners' Equity

Gloria, Capital 946,565.44 1,045,008.33 1,147,963.75

Hernan, Capital 746,565.44 845,008.33 947,963.75

91
 Javier, Capital 746,565.44 845,008.33 947,963.75

Ricalde, Capital 746,565.44 845,008.33 947,963.75

Total Partners' Equity 3,186,261.76 3,580,033.32 3,991,855.00

TOTAL LIABILITIES &

4,038,651.51 4,486,067.70 4,935,704.92
PARTNERS’ EQUITY

Table 6.4
Projected Statement of Comprehensive Income

BARAKOFFEE Café

Projected Statement of Comprehensive Income

For the Years Ended December 31, 2021-2023

2021 2022 2023

Gross Sales P9,252,244.00 P9,744,681.00 P10,169,940.00

Less: Cost of Services 1,493,801.10 1,553,334.71 1,620,373.43

Gross Profit 7,758,442.90 8,191,346.29 8,549,566.57

Less: Operating Expense

Salaries and Wages 561,201.12 589,261.18 618,724.24

Employee Benefits 43,800.00 45,990.00 48,289.50

SSS and PhilHealth 50,520.00 53,021.00 55,673.30

Training expenses 12,000.00 12,000.00 12,000.00

Rental Expenses 480,000.00 480,000.00 480,000.00

Fuel, Gas and Oil 67,320.00 70,686.00 74,220.30

Representation Expenses 49,014.00 49,259.07 49,504.14

Utilities Expenses 245, 388.00 270,138.00 297,610.50

Office Supplies Expenses 8,785.00 7,557.11 7,781.32

92
 Cleaning Supplies Expenses 2,642.00 2,720.00 2,754.00

Ingredients Supplies 252,384.00 265,495.53 278,759.41

Pastries Supplies 522,200.00 532,644.00 546,318.48

To-go Supplies 90,696.00 95,248.00 102,351.00

Advertising Expenses 6,000.00 6,000.00 6,000.00

Depreciation Expenses 73,567.63 73,567.63 73,567.63

Repairs and Maintenance Expenses 4,653.00 4,885.00 5,130.00

Taxes and Licenses 2,885.00 1,630.00 1,639.00

Miscellaneous Expense 12,750.00 5,911.00 6,076.51

Total Operating Expense 2,240,417.75 2,566,013.52 2,666,399.33

Earnings Before Taxes (EBT) 5,518,025.15 5,625,332.77 5,883,167.24

Income Tax Expense (30%) 1,655,407,55 1,687,599.83 1,764,950.17

Net Income P3,862,617.60 P 3,937,732.93 P 4,118,217.07

Table 6.5
Projected Statement of Cash Flows
BARAKOFFEE Café

Projected Statement of Cash Flows

For the Years Ended December 2021 – 2023

2021 2022 2023

Cash Flow from Operating Activities

Net Income P3,862,617.60 P 3,937,732.93 P 4,118,217.07

Add (Deduct)

Depreciation 73,567.63 73,567.63 73,567.63

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 Increase in Other Current Assets (80,000) 0.00 0.00

Increase in Inventories (876,707.00) (26,965.16) (31,545.57)

Increase in Accounts Payable 0.00 0.00 0.00

Increase in SSS & PHIC Payables 50,520.00 2,501.00 2,652.30

Increase in Withholding Tax Payable 318,626.17 39,377.16 12,636.20

Increase in Percentage Tax Payable 69,391.83 3,693.27 3,189.45

Increase in Income Tax Payable 413,851.75 8,048.20 19,337.59

Net Cash Provided (used) by Operating 3,758,300.35 3,964,402.44 4,124,487.04

Cash Flow from Investing Activities

Purchase of Property, Plant and

Equipment 493,644.00 0.00 0.00

Net Cash Provided (used) by Investing (493,644.00) 0.00 0.00

Cash Flow from Financing Activities

Initial Investment 2,800,000.00 0.00 0.00

Withdrawal 3,476,355.84 3,543,943.89 3,706,395.36

Net Cash Provided by Financing (676,355.84) (3,543,943.89) (3,706,395.36)

Net Increase in Cash 2,588,300.51 420,458.55 418,091.68

Cash Balance Beginning 0.00 2,588,300.51 3,008,759.06

Cash Balance Ending 2,588,300.51 3,008,759.06 3,426,850.74

Table 6.6
Projected Statement of Changes in Partners’ Equity

BARAKOFFEE Café
Projected Statement of Changes in Partners' Equity
For the Years Ended December 31, 2021 – 2023

94
 2021 2022 2023
Gloria, Capital balance beginning ₱0.00 946,565.44 1,045,008.33
Add: Investment 850,000.00 0.00 0.00
Add: Share in Operating Income 965,654.40 984,428.86 1,029,554.26
Less: Withdrawal 869,088.96 885,985.97 926,598.84
Gloria, Capital balance ending 946,565.44 1,045,008.33 1,147,963.75

Hernan, Capital balance beginning ₱ 0.00 746,565.44 845,008.33

Add: Investment 650,000 0.00 0.00
Add: Share in Operating Income 965,654.40 984,428.86 1,029,554.26
Less: Withdrawal 869,088.96 885,985.97 926,598.84
Hernan, Capital balance ending 746,565.44 845,008.33 947,963.75

Javier, Capital balance beginning ₱ 0.00 746,565.44 845,008.33

Add: Investment 650,000 0.00 0.00
Add: Share in Operating Income 965,654.40 984,428.86 1,029,554.26
Less: Withdrawal 869,088.96 885,985.97 926,598.84
Javier, Capital balance ending 746,565.44 845,008.33 947,963.75

Ricalde, Capital balance beginning ₱ 0.00 746,565.44 845,008.33

Add: Investment 650,000 0.00 0.00
Add: Share in Operating Income 965,654.40 984,428.86 1,029,554.26
Less: Withdrawal 869,088.96 885,985.97 926,598.84
Ricalde, Capital balance ending 746,565.44 845,008.33 947,963.75

Table 6.7
Return on Investment

Year Net Income Investment ROI (%)

2021
₱ 3,862,617.60 ₱ 2,800,000.00 137.95%
2022
P 3,937,732.93 ₱ 2,800,000.00 140.63%

95
 2023
P 4,118,217.07 ₱ 2,800,000.00 147.08%
(formula:Net Profit/Total Investment*100)

Generalization

The projected cost of the business is Php 2,800,000.00, where the partners will invest.

The amount would be used to buy the necessary equipment and supplies for the operations. For

the year 2021, the business expects a return on investment of 137.95%. The expected return on

investment for the next two years is 140.63 percent, with 147.08 percent for 2022 and 2023.

96
 Chapter 7

Socio-Economic Contribution

This chapter deals with the societal and economic relationship of the proposed business

as to its potential contribution to the nation’s economy, its ability to generate employment and

the level of its social desirability. Considering these aspects could help the proposed business

develop a positive figure within the market.

General objectives

The socio-economic contribution is generally concerned with the desirability in economic, social

and environmental.

1. To identify the desirability in the economy.

2. To determine the social desirability of the business.

3. To identify the environment desirability of the business.

Economic Desirability

Businesses exist to serve not only the single function of making a profit, but also to serve

the best interests of the whole population. Despite the fact that profit creation is the highest

priority, profits must be balanced by contributions to the general population. In addition, the new

business would help the government in improving the state's economic condition. The business

will pay a total of Php 1,655,407,55 which will be used to serve its people.

97
Social Desirability

The business would aim to reduce the number of unemployed people by providing these

workers with fair and decent salaries and benefits that are proportional with their jobs. The

Barakoffee Two-Dimensional café will offer 4 vacant positions. The business will hire (2)

barista and (1) on-call barista and (1) delivery driver. Although these positions are not enough to

resolve unemployment, this would individually benefit and improve the economic status of these

persons to be hired.

The business will assist the municipality of Nasugbu in attracting more tourists to visit

more often in the place. It will provide another destination for tourists looking to unwind in

Nasugbu, Batangas. The Barakoffee two-Dimensional Black & White Cafe will provide

opportunities for communities seeking employment to meet the financial and social needs. We

would employ proper salaries and benefits for our employees when recruiting.

Customers will be able to feel the vibe of various tourist destinations in Batangas while

enjoying a cup of coffee, according to the proponents. Everyone is exhausted by the tension we

are under as the COVID-19 pandemic continues. The proponents want the Nasugbuenos to see a

variety of places while remaining in one location. There’s no need to go to different places just

to have your peace of mind, the Barakoffee Two-Dimensional Black & White Café will serve

you the good service.

Environment Desirability

The proposed business will promote the use of recyclable plastics to reduce its impact to

the environment. Barakoffee will encourage the customer to bring their own tumbler to reduce

the use of plastic cups. Barakoffee will adhere to the mandates of the local government unit and

98
the concerned national government agencies on the proper segregation and disposal of the

garbage. Implementing recycling or composting programs is one of the strategies of barakoffee

to reduce the waste.

Generalization

The proposed business will be established not only for the purpose of making money or

profit, but also to legally and morally resolve some community issues. The economic desirability

of the business is to help lessen the number of unemployed people in a community, by giving an

opportunity to those unemployed people to apply and get the job in the proposed business.

Furthermore, social desirability of the business is to help the Municipality of Nasugbu to attract

customers and tourist through its ambiance and looks, featuring the five (5) tourist attraction here

in Nasugbu Batangas. Lastly, the environmental desirability of the business is to help the

government in improving the state's economic condition as it pays the taxes needed to pay. It will

lessen the environment impact since the business will be using recyclable plastic and materials to

reduce the number of wastes in our surroundings.

99
 BIBLIOGRAPHY

A. Online websites

Joann Villanueva retrieved April 26,2021 from

https://www.pna.gov.ph/articles/1134920#:~:text=In%20a%20briefing%20via

%20the,2022%20projection%20is%202.8%20percent

Kelson A. (2020).What Does The Restaurant Industry Look Like In 2021 And Beyond?

Retrieved from: https://www.forbes.com/sites/aliciakelso/2021/12/30/what-does-the-restaurant-

industry-look-like-in-2021-and-beyond/?sh=ca3f0d726a4e

“Launching & Growing a Profitable Coffee Business In The Philippines”(2019) Retrieved

from: https://www.google.com/amp/s/businessdiary.com.ph/18389/launching-growing-a-

profitable-coffee-business-in-the-philippines/

Partnership-bizfix retrieved April 26,2021 from

https://bizfix.ph/partnership/#:~:text=Business%20partnerships%20are%20taxed%20at

%2030%25%20of%20their%20next%20income%20tax.

Percentage tax for businesses in the Philippines (2020) retrieved April 26, 2021 from

https://cloudcfo.ph/blog/taxes/percentage-tax-for-businesses-in-the-philippines-explained/

100
 “Pinoy youths perk up coffee-shop trend” (2018) Retrieved from:

https://businessmirror.com.ph/2018/10/14/pinoy-youths-perk-up-coffee-shop-trend/

Tax and accounting center Philippines retrieved April 26,2021 from

https://taxacctgcenter.ph/3-tax-deductible-expenses-with-limitations-in-philippines/

“The Success Of Locally-Produced Coffee In The Philippines” (2020) Retrieved from:

https://perfectdailygrind.com/2020/08/the-success-of-locally-produced-philippine-coffee-barista-

championship-2020-specialty/

Weisen G. (2021). What is the restaurant industry?Retrieved from:

https://www.delightedcooking.com/what-is-the-restaurant-industry.htm#:~:text=The

%20restaurant%20industry%20is%20the,and%20eat%20on%20the%20premises.

101
 APPENDICES

APPENDIX A

Survey Questionnaire
I. Demographic Profile

Name: (Optional) _____________

Status: __Student __ Employed __ Self – Employed __Retired
__Other: ____
Monthly Income/Allowance: __Php1,000 - 5,000 __Php5,000-10,000 __Php10,000-20,000
___Php20,000-30,000 ___Php30,000 - above
II.

1. If BARAKOFFEE will be established (a two-dimensional black and white theme Café

showcasing different tourist spot of Batangas) will you try to buy from it?
o Yes
o No
2. What product of BARAKOFFEE do you prefer?
o BARAKOFFEE Php 55

o Espresso Php 120

o Cappuccino Php 130

o Americano Php 100

o Café Latte Php 105

o Mocha Latte Php 110

o Vanilla Latte Php 115

102
 o Double Chocolate Latte Php 120

o Macchiato Php 125

ICE BLENDED COFFEE

Flavors Price

o The Original Mocha o Php 90

o The Original Vanilla o Php 95
o Double Chocolate o Php 100
o Caramel o Php 120
o Hazelnut Chocolate o Php 120
o Mocha Chip o Php 120
o Dark Chocolate Chip o Php 120
COFEE FREE

Flavors Price

o Pure Vanilla o Php 100

o Pure Double Chocolate o Php 100
o Pure Hazelnut Chocolate o Php 115
o Mango o Php 115
o Matcha Green Tea o Php 115
Milk Tea
Flavors Regular Large XL

o Royal o Php 45 o Php 60 o Php 70

o Wintermelon o Php 45 o Php 60 o Php 70
o Pearl Milk Tea o Php 45 o Php 60 o Php 70
o Hazelnut o Php 45 o Php 60 o Php 70
o Caramel o Php 45 o Php 60 o Php 70
o Taro o Php 45 o Php 60 o Php 70
o Chocolate o Php 45 o Php 60 o Php 70
o Mocha o Php 45 o Php 60 o Php 70
o Cookies&Cream o Php 45 o Php 60 o Php 70
o Black Forrest o Php 45 o Php 60 o Php 70
o Double Dutch o Php 45 o Php 60 o Php 70
3. What will be the product you will want to eat while drinking coffee?

PASTRIES

o Choco Chip Banana Slice Php 45

o Ensaymada Php 35

103
 o Caramel Cinnamon Bun Php 35

o Double Chocolate Brownie Php 50

CAKES

o Dark Chocolate Cake Php 125

o Oreo Cheesecake Php 125

o Red Velvet Cake Php 120

o Yema Cake Php 115

o Php 115

o Matcha Cake

COOKIES

o Choco Chip Cookie Php 35

o Oatmeal Cookie Php 35

o Matcha Cookie Php 35

o Once a week o Once a month
4. o Twice a week o Twice a month How
o Thrice a week o Thrice a month
frequent will you eat or dine in barakoffee?

104
 Respondent’s Signature

APPENDIX B

Existing Coffee Shop Survey Questionnaire

Name of the Business: ____________________________

1. What is the general average sale of your business per year?

o Php350,000 – Php450,000
o Php450,000 – Php550,000
o Php550,000 – Php650,000
o Php650,000 and above
2. What are the products you’re offering?

3. Isall the product in your menu available?

o Yes
o No
4. If no, how many are not available?
o 1-3
o 4-6
o 7-9
o 10 and above
5. How many people usually go to your store on daily basis?
o 10-50
o 51-100

105
 o 101-150
o 151-200
o 201 and above

6. How many do you served in a day?

o 10-50
o 51-100
o 101-150
o 151-200
o 201 and above

Respondent’s Signature
Appendix C

Letter BPLO

106
 Appendix D

ARTICLES OF PARTNERSHIP

Of

BARAKOFFEE TWO-DIMENSIONAL BLACK & WHITE CAFÉ

KNOW ALL MEN BY THESE PRESENTS:

That we, the undersigned, all of legal age and residents of the Republic of the Philippines have

agreed to amend a limited partnership under the terms and conditions herein set forth and subject to the

provisions of existing laws of Republic of the Philippines.

AND WE HEREBY CERTIFY:

Article I.

That the name of partnership shall be: Barakoffee Two-Dimensional Black & White Café.

Article II

107
That the principal office of the partnership shall be located at J P Laurel St.AbantihanBuilding,first

floor4231,Nasugbu, Batangas.

Article III.

That the names, citizenship, residence and designation of the partners of said partneship are as follows:

NAME CITIZENSHIP RESIDENCE DESIGNATION

Catherine N. Gloria Filipino Calatagan,Batangas Limited Partner

MhaeAhnne N. Hernan Filipino Nasugbu, Batangas Limited Partner

Angelika B. Javier Filipino Nasugbu, Batangas Limited Partner

Jizelle M. Ricalde Filipino Lian,s Batangas Limited Partner

Article IV.

That the partnership is to exist is __years from the original recording of said partnership by the Securities

and Exchange Commission.

Article V.

That the purpose of the said partnership is formed are as follows:

1. To conduct a cafe business in Nasugbu, Batangas.

2. To manage a Café to serve the Nasugbuenos,

Article VI.

That the capital of partnership shall be one million and five hundred thousand, Philippine currency

contributed in cash by the partners as follows:

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 NAME AMOUNT CONTRIBUTED

Catherine N. Gloria 1,500,000.00

MhaeAhnne N. Hernan 1 500,000.00

Angelika B. Javier 1,500,000.00

Jizelle M. Ricalde 1.500,000.00

Signed by:

GLORIA, CATHERINE N.

HERNAN, MAE ANN N.

JAVIER, ANGELIKA B.

RICALDE, JIZELLE M.

109
 Appendix E

Product Procedure

Warm the cup Check the portafilter Dose the ground

Start
before using it handle to ensure it’s coffee into your

clean and dry. portafilter.

Tamp

Pull the espresso

Serve

Figure 3.3

Expresso Products Procedure

Prepare the Blend on low speed,

Combine the
Start and slowly
expresso and increasing the speed
expresso, milk, sugar
then chill it until
and ice in blender.
completely
Pour in
to glass

Serve
Figure 3.4

110
 Ice blend Products Procedure

Pour a milk into a Add powdered sugar

Prepare the glass and slowly add
Start
ingredients flavor power while until well blended
blending

Pour in
to glass

Serve

Figure 3.5

Coffee Free Products Procedure

Prepare the Pour a 3 tblps of

Using the a shaker,
ingredients for non-dairy creamer
Start combine 3 tbps of
the milk tea. and ask for sugar
flavor milktea
level

Continue to add ½ Shake this

Pour in the cup of ice to the ingredients
Serve glass together until the
shaker and mix until
its cold mixtures is
smooth

Figure 3.6

111
Milk Tea Products Procedure

112
 Appendix F

Sample Contract of Lease

Commercial Lease Agreement

This Commercial Lease Agreement ("Lease") is made and effective _______________________ [Date], by and
between _______________________ [Landlord] ("Landlord") and _______________________ [Tenant]
("Tenant").

Landlord is the owner of land and improvements commonly known and numbered as
_____________________________________________________________________ [Address of Building] and
legally described as follows (the "Building"):
_____________________________________________________________________
_____________________________________________________________________ [Legal Description of
Building]

Landlord makes available for lease a portion of the Building designated as

__________________________________________________ [Suite or Other Number of Leased Building] (the
"Leased Premises").

Landlord desires to lease the Leased Premises to Tenant, and Tenant desires to lease the Leased Premises from
Landlord for the term, at the rental and upon the covenants, conditions and provisions herein set forth.

THEREFORE, in consideration of the mutual promises herein, contained and other good and valuable consideration,
it is agreed:

1. Term.

A. Landlord hereby leases the Leased Premises to Tenant, and Tenant hereby leases the same from Landlord, for an
"Initial Term" beginning _______________________ [Start Date] and ending _______________________ [End
Date]. Landlord shall use its best efforts to give Tenant possession as nearly as possible at the beginning of the
Lease term. If Landlord is unable to timely provide the Leased Premises, rent shall abate for the period of delay.
Tenant shall make no other claim against Landlord for any such delay.

B. Tenant may renew the Lease for one extended term of _______________________ [Renewal Term]. Tenant
shall exercise such renewal option, if at all, by giving written notice to Landlord not less than ninety (90) days prior
to the expiration of the Initial Term. The renewal term shall be at the rental set forth below and otherwise upon the
same covenants, conditions and provisions as provided in this Lease.

2. Rental.

A. Tenant shall pay to Landlord during the Initial Term rental of _______________________ [Annual Rent] per
year, payable in installments of _______________________ [Monthly Rental Amount] per month. Each
installment payment shall be due in advance on the first day of each calendar month during the lease term to
Landlord at _____________________________________________________________________ [Landlord's
Designated Payment Address] or at such other place designated by written notice from Landlord or Tenant. The
rental payment amount for any partial calendar months included in the lease term shall be prorated on a daily basis.
Tenant shall also pay to Landlord a "Security Deposit" in the amount of _______________________ [Security
Deposit].

113
B. The rental for any renewal lease term, if created as permitted under this Lease, shall be
_______________________ [Annual Rent in Renewal Term] per year payable in installments of
_______________________ [Monthly Rental Amount] per month.

3. Use

Notwithstanding the forgoing, Tenant shall not use the Leased Premises for the purposes of storing, manufacturing
or selling any explosives, flammables or other inherently dangerous substance, chemical, thing or device.

4. Sublease and Assignment.

Tenant shall have the right without Landlord's consent, to assign this Lease to a corporation with which Tenant may
merge or consolidate, to any subsidiary of Tenant, to any corporation under common control with Tenant, or to a
purchaser of substantially all of Tenant's assets. Except as set forth above, Tenant shall not sublease all or any part
of the Leased Premises, or assign this Lease in whole or in part without Landlord's consent, such consent not to be
unreasonably withheld or delayed.

5. Repairs.

During the Lease term, Tenant shall make, at Tenant's expense, all necessary repairs to the Leased Premises. Repairs
shall include such items as routine repairs of floors, walls, ceilings, and other parts of the Leased Premises damaged
or worn through normal occupancy, except for major mechanical systems or the roof, subject to the obligations of
the parties otherwise set forth in this Lease.

6. Alterations and Improvements.

Tenant, at Tenant's expense, shall have the right following Landlord's consent to remodel, redecorate, and make
additions, improvements and replacements of and to all or any part of the Leased Premises from time to time as
Tenant may deem desirable, provided the same are made in a workmanlike manner and utilizing good quality
materials. Tenant shall have the right to place and install personal property, trade fixtures, equipment and other
temporary installations in and upon the Leased Premises, and fasten the same to the premises. All personal property,
equipment, machinery, trade fixtures and temporary installations, whether acquired by Tenant at the commencement
of the Lease term or placed or installed on the Leased Premises by Tenant thereafter, shall remain Tenant's property
free and clear of any claim by Landlord. Tenant shall have the right to remove the same at any time during the term
of this Lease provided that all damage to the Leased Premises caused by such removal shall be repaired by Tenant at
Tenant's expense.

7. Property Taxes.

Landlord shall pay, prior to delinquency, all general real estate taxes and installments of special assessments coming
due during the Lease term on the Leased Premises, and all personal property taxes with respect to Landlord's
personal property, if any, on the Leased Premises. Tenant shall be responsible for paying all personal property taxes
with respect to Tenant's personal property at the Leased Premises.

8. Insurance.

A. If the Leased Premises or any other part of the Building is damaged by fire or other casualty resulting from any
act or negligence of Tenant or any of Tenant's agents, employees or invitees, rent shall not be diminished or abated
while such damages are under repair, and Tenant shall be responsible for the costs of repair not covered by
insurance.

B. Landlord shall maintain fire and extended coverage insurance on the Building and the Leased Premises in such
amounts as Landlord shall deem appropriate. Tenant shall be responsible, at its expense, for fire and extended

114
coverage insurance on all of its personal property, including removable trade fixtures, located in the Leased
Premises.

C. Tenant and Landlord shall, each at its own expense, maintain a policy or policies of comprehensive general
liability insurance with respect to the respective activities of each in the Building with the premiums thereon fully
paid on or before due date, issued by and binding upon some insurance company approved by Landlord, such
insurance to afford minimum protection of not less than $1,000,000 combined single limit coverage of bodily injury,
property damage or combination thereof. Landlord shall be listed as an additional insured on Tenant's policy or
policies of comprehensive general liability insurance, and Tenant shall provide Landlord with current Certificates of
Insurance evidencing Tenant's compliance with this Paragraph. Tenant shall obtain the agreement of Tenant's
insurers to notify Landlord that a policy is due to expire at least (10) days prior to such expiration. Landlord shall
not be required to maintain insurance against thefts within the Leased Premises or the Building.

9. Utilities.

Tenant shall pay all charges for water, sewer, gas, electricity, telephone and other services and utilities used by
Tenant on the Leased Premises during the term of this Lease unless otherwise expressly agreed in writing by
Landlord. In the event that any utility or service provided to the Leased Premises is not separately metered, Landlord
shall pay the amount due and separately invoice Tenant for Tenant's pro rata share of the charges. Tenant shall pay
such amounts within fifteen (15) days of invoice. Tenant acknowledges that the Leased Premises are designed to
provide standard office use electrical facilities and standard office lighting. Tenant shall not use any equipment or
devices that utilizes excessive electrical energy or which may, in Landlord's reasonable opinion, overload the wiring
or interfere with electrical services to other tenants.

10. Signs.

Following Landlord's consent, Tenant shall have the right to place on the Leased Premises, at locations selected by
Tenant, any signs which are permitted by applicable zoning ordinances and private restrictions. Landlord may refuse
consent to any proposed signage that is in Landlord's opinion too large, deceptive, unattractive or otherwise
inconsistent with or inappropriate to the Leased Premises or use of any other tenant. Landlord shall assist and
cooperate with Tenant in obtaining any necessary permission from governmental authorities or adjoining owners
and occupants for Tenant to place or construct the foregoing signs. Tenant shall repair all damage to the Leased
Premises resulting from the removal of signs installed by Tenant.

11. Entry.

Landlord shall have the right to enter upon the Leased Premises at reasonable hours to inspect the same, provided
Landlord shall not thereby unreasonably interfere with Tenant's business on the Leased Premises.

12. Parking.

During the term of this Lease, Tenant shall have the non-exclusive use in common with Landlord, other tenants of
the Building, their guests and invitees, of the non-reserved common automobile parking areas, driveways, and
footways, subject to rules and regulations for the use thereof as prescribed from time to time by Landlord. Landlord
reserves the right to designate parking areas within the Building or in reasonable proximity thereto, for Tenant and
Tenant's agents and employees. Tenant shall provide Landlord with a list of all license numbers for the cars owned
by Tenant, its agents and employees. Separated structured parking, if any, located about the Building is reserved for
tenants of the Building who rent such parking s paces. Tenant hereby leases from Landlord
_______________________ [Number of Parking Spaces] spaces in such structural parking area, such spaces to be
on a first come-first served basis. In consideration of the leasing to Tenant of such spaces, Tenant shall pay a
monthly rental of _______________________ [Parking Space Rental] per space throughout the term of the Lease.
Such rental shall be due and payable each month without demand at the time herein set for the payment of other
monthly rentals, in addition to such other rentals.

115
13. Building Rules.

Tenant will comply with the rules of the Building adopted and altered by Landlord from time to time and will cause
all of its agents, employees, invitees and visitors to do so; all changes to such rules will be sent by Landlord to
Tenant in writing. The initial rules for the Building are attached hereto as Exhibit "A" and incorporated herein for all
purposes.

14. Damage and Destruction.

Subject to Section 8 A. above, if the Leased Premises or any part thereof or any appurtenance thereto is so damaged
by fire, casualty or structural defects that the same cannot be used for Tenant's purposes, then Tenant shall have the
right within ninety (90) days following damage to elect by notice to Landlord to terminate this Lease as of the date
of such damage. In the event of minor damage to any part of the Leased Premises, and if such damage does not
render the Leased Premises unusable for Tenant's purposes, Landlord shall promptly repair such damage at the cost
of the Landlord. In making the repairs called for in this paragraph, Landlord shall not be liable for any delays
resulting from strikes, governmental restrictions, inability to obtain necessary materials or labor or other matters
which are beyond the reasonable control of Landlord. Tenant shall be relieved from paying rent and other charges
during any portion of the Lease term that the Leased Premises are inoperable or unfit for occupancy, or use, in
whole or in part, for Tenant's purposes. Rentals and other charges paid in advance for any such periods shall be
credited on the next ensuing payments, if any, but if no further payments are to be made, any such advance
payments shall be refunded to Tenant. The provisions of this paragraph extend not only to the matters aforesaid, but
also to any occurrence which is beyond Tenant's reasonable control and which renders the Leased Premises, or any
appurtenance thereto, inoperable or unfit for occupancy or use, in whole or in part, for Tenant's purposes.

15. Default.

If default shall at any time be made by Tenant in the payment of rent when due to Landlord as herein provided, and
if said default shall continue for fifteen (15) days after written notice thereof shall have been given to Tenant by
Landlord, or if default shall be made in any of the other covenants or conditions to be kept, observed and performed
by Tenant, and such default shall continue for thirty (30) days after notice thereof in writing to Tenant by Landlord
without correction thereof then having been commenced and thereafter diligently prosecuted, Landlord may declare
the term of this Lease ended and terminated by giving Tenant written notice of such intention, and if possession of
the Leased Premises is not surrendered, Landlord may reenter said premises. Landlord shall have, in addition to the
remedy above provided, any other right or remedy available to Landlord on account of any Tenant default, either in
law or equity. Landlord shall use reasonable efforts to mitigate its damages.

16. Quiet Possession.

Landlord covenants and warrants that upon performance by Tenant of its obligations hereunder, Landlord will keep
and maintain Tenant in exclusive, quiet, peaceable and undisturbed and uninterrupted possession of the Leased
Premises during the term of this Lease.

17. Condemnation.

If any legally, constituted authority condemns the Building or such part thereof which shall make the Leased Premises unsuitable
for leasing, this Lease shall cease when the public authority takes possession, and Landlord and Tenant shall account for rental as
of that date. Such termination shall be without prejudice to the rights of either party to recover compensation from the
condemning authority for any loss or damage caused by the condemnation. Neither party shall have any rights in or to any award
made to the other by the condemning authority.

18. Subordination.

116
Tenant accepts this Lease subject and subordinate to any mortgage, deed of trust or other lien presently existing or hereafter
arising upon the Leased Premises, or upon the Building and to any renewals, refinancing and extensions thereof, but Tenant
agrees that any such mortgagee shall have the right at any time to subordinate such mortgage, deed of trust or other lien to this
Lease on such terms and subject to such conditions as such mortgagee may deem appropriate in its discretion. Landlord is hereby
irrevocably vested with full power and authority to subordinate this Lease to any mortgage, deed of trust or other lien now
existing or hereafter placed upon the Leased Premises of the Building, and Tenant agrees upon demand to execute such further
instruments subordinating this Lease or attorning to the holder of any such liens as Landlord may request. In the event that
Tenant should fail to execute any instrument of subordination herein require d to be executed by Tenant promptly as requested,
Tenant hereby irrevocably constitutes Landlord as its attorney-in-fact to execute such instrument in Tenant's name, place and
stead, it being agreed that such power is one coupled with an interest. Tenant agrees that it will from time to time upon request by
Landlord execute and deliver to such persons as Landlord shall request a statement in recordable form certifying that this Lease is
unmodified and in full force and effect (or if there have been modifications, that the same is in full force and effect as so
modified), stating the dates to which rent and other charges payable under this Lease have been paid, stating that Landlord is not
in default hereunder (or if Tenant alleges a default stating the nature of such alleged default) and further stating such other
matters as Landlord shall reasonably require.

19. Security Deposit.

The Security Deposit shall be held by Landlord without liability for interest and as security for the performance by Tenant of
Tenant's covenants and obligations under this Lease, it being expressly understood that the Security Deposit shall not be
considered an advance payment of rental or a measure of Landlord's damages in case of default by Tenant. Unless otherwise
provided by mandatory non-waivable law or regulation, Landlord may commingle the Security Deposit with Landlord' s other
funds. Landlord may, from time to time, without prejudice to any other remedy, use the Security Deposit to the extent necessary
to make good any arrearages of rent or to satisfy any other covenant or obligation of Tenant hereunder. Following any such
application of the Security Deposit, Tenant shall pay to Landlord on demand the amount so applied in order to restore the
Security Deposit to its original amount. If Tenant is not in default at the termination of this Lease, the balance of the Security
Deposit remaining after any such application shall be returned by Landlord to Tenant. If Landlord transfers its interest in the
Premises during the term of this Lease, Landlord may assign the Security Deposit to the transferee and thereafter shall have no
further liability for the return of such Security Deposit.

20. Notice.

Any notice required or permitted under this Lease shall be deemed sufficiently given or served if sent by United
States certified mail, return receipt requested, addressed as follows:

If to Landlord to:

______________________________________________
[Landlord]

______________________________________________
[Landlord's Address]

If to Tenant to:

______________________________________________
[Tenant]

______________________________________________
[Tenant's Address]

117
Landlord and Tenant shall each have the right from time to time to change the place notice is to be given under this
paragraph by written notice thereof to the other party.

21. Brokers.

Tenant represents that Tenant was not shown the Premises by any real estate broker or agent and that Tenant has not
otherwise engaged in, any activity which could form the basis for a claim for real estate commission, brokerage fee,
finder's fee or other similar charge, in connection with this Lease.

22. Waiver.

No waiver of any default of Landlord or Tenant hereunder shall be implied from any omission to take any action on account of
such default if such default persists or is repeated, and no express waiver shall affect any default other than the default specified
in the express waiver and that only for the time and to the extent therein stated. One or more waivers by Landlord or Tenant shall
not be construed as a waiver of a subsequent breach of the same covenant, term or condition.

23. Memorandum of Lease.

The parties hereto contemplate that this Lease should not and shall not be filed for record, but in lieu thereof, at the
request of either party, Landlord and Tenant shall execute a Memorandum of Lease to be recorded for the purpose of
giving record notice of the appropriate provisions of this Lease.

24. Headings.

The headings used in this Lease are for convenience of the parties only and shall not be considered in interpreting the meaning of
any provision of this Lease.

25. Successors.

The provisions of this Lease shall extend to and be binding upon Landlord and Tenant and their respective legal representatives,
successors and assigns.

26. Consent.

Landlord shall not unreasonably withhold or delay its consent with respect to any matter for which Landlord's consent is required
or desirable under this Lease.

27. Performance.

If there is a default with respect to any of Landlord's covenants, warranties or representations under this Lease, and if the default
continues more than fifteen (15) days after notice in writing from Tenant to Landlord specifying the default, Tenant may, at its
option and without affecting any other remedy hereunder, cure such default and deduct the cost thereof from the next accruing
installment or installments of rent payable hereunder until Tenant shall have been fully reimbursed for such expenditures,
together with interest thereon at a rate equal to the lessor of twelve percent (12%) per annum or the then highest lawful rate. If
this Lease terminates prior to Tenant's receiving full reimbursement, Landlord shall pay the unreimbursed balance plus accrued
interest to Tenant on demand.

28. Compliance with Law.

Tenant shall comply with all laws, orders, ordinances and other public requirements now or hereafter pertaining to
Tenant's use of the Leased Premises. Landlord shall comply with all laws, orders, ordinances and other public
requirements now or hereafter affecting the Leased Premises.

29. Final Agreement.

118
This Agreement terminates and supersedes all prior understandings or agreements on the subject matter hereof. This
Agreement may be modified only by a further writing that is duly executed by both parties.

30. Governing Law.

This Agreement shall be governed, construed and interpreted by, through and under the Laws of the State of New
Jersey.

IN WITNESS WHEREOF, the parties have executed this Lease as of the day and year first above written.

______________________________________________
[Landlord] Signature Block

______________________________________________
[Tenant] Signature Block

119
 Appendix G

BARAKOFFEE’S MNENU

120
121
 Appendix H

Certificate of Occupancy

122
 Appendix I

Fire Safety Inspection Certificate

123
 Appendix J

Sanitary Permit To Operate

124
 Appendix K

Tax Clearance

125
126
 Appendix L

MPDC Clearance

127
 CURRICULUM VITAE

CATHERINE NAME GLORIA

Brgy. Bucal Calatagan, Batangas

Contact #: 09776761076 Email Address: catherinegloria2119@gmail.com

I. Personal Information

Birthdate: March 25, 2000

Age: 21

Gender: Female

Religion: Roman Catholic

Father’s Name: Alberto G. Gloria Jr.

Occupation: Carpenter

Mother’s Name: Luisa N. Gloria

Occupation: Housewife

128
II. Educational Background
Tertiary Level (Third year)

Batangas State University ARASOF

Brgy. Bucana, Nasugbu, Batangas

2018 –present

Secondary Level (Senior)

Senior High School in Calatagan

Poblacion II, Calatagan, Batangas

April 2018

Secondary Level (Junior)

Lucsuhin National High School

Lucsuhin, Calatagan, Batangas

April 2016

Elementary Level

Bucal Elementary School

Bucal, Calatagan, Batangas

129
 April 2012

III. Work Experience

November 21, 2017 – December 4, 2017. Work Immersion

Caritas Banco Ng Masa

Poblacion 1, Calatagan Batangas

IV. Seminar Attended

March 07, 2021 Philippine Junior Marketing Association: Juan

Big Idea

Nationwide Facebook Live stream

Facebook private group

April 17, 2021 Online Business Management

Webinar/Workshop

V. Special Talent or Skills

 Communication effectively and fluently in English and Filipino

 Writing poems and songs both English and Filipino
 Proficiency in MS Office and;

130
VI. Awards and Recognition

Academic Achiever with Honors

Senior High School in Calatagan

Poblacion II, Calatagan Batangas

S. Y 2017-2018

Academic Achiever with Honors

Senior High School in Calatagan

Poblacion II, Calatagan Batangas

S. Y 2016-2017

Quiz bee by group – 2nd placer

Nutrition Month Celebration

Senior High School in Calatagan

Poblacion II, Calatagan Batangas

S. Y 2016-2017

Academic Achiever with Honors

Bucal Elementary School

Bucal Calatagan Batangas

131
VII. Character References

NAME POSITION CONTACT NO.

1. Mark Leonel T. Noche Work Immersion Focal 09061829129

Person- ACADEMICS

2. Edeliza B. Macalalad Class Adviser 09178611896

hereby certify that the information above is true and correct.

CATHERINE N. GLORIA
Signature over Printed Name

132
 CURRICULUM VITAE

MAE ANN NORCIO HERNAN

Brgy. Bayabasan, Aga Nasugbu, Batangas

Contact #: 09066258458 Email Address: maeannhernan96@gmail.com

I. Personal Information

Birthdate: May 15, 2000

Age: 21

Gender: Female

Religion: Roman Catholic

Father’s Name: Constancio A. Hernan

Occupation: Construction Worker

Mother’s Name: Marilyn N. Hernan

Occupation: Housewife

133
II. Educational Background
Tertiary Level (Third year)

Batangas State University ARASOF

Brgy. Bucana, Nasugbu, Batangas

2018 –present

Secondary Level (Senior)

Nasugbu East Senior Highschool I

Nasugbu, Batangas

April 2018

Secondary Level (Junior)

Banilad National High School

Banilad Nasugbu, Batangas

April 2016

Elementary Level

Bayabasan Elementary School

Bayabasan Nasugbu, Batangas

April 2012

134
III. Seminar Attended

March 07, 2021 Philippine Junior Marketing Association: Juan

Big Idea

April 17, 2021 Online Business Management

Webinar/Workshop

IV. Special Talent or Skills

 Communication effectively and fluently in English and Filipino

 Writing poems and songs both English and Filipino
 Proficiency in MS Office and;

V. Awards and Recognition

Academic Achiever with Honors

Nasugbu East Senior Highschool I

Nasugbu, Batangas

S. Y 2017-2018

Outstanding Work Immersion Trainee

Nasugbu East Senior Highschool I

Lumbangan Nasugbu, Batangas

S. Y 2017-2018

Conduct Awardee

135
 Nasugbu East Senior Highschool I

Lumbangan Nasugbu, Batangas

S. Y 2017-2018

Academic Achiever with Honors

Bayabasan Elementary School

Bayabasan Aga Nasugbu, Batangas

S. Y 2010-2011

VI. Character References

NAME POSITION CONTACT NO.

1. Norberto Apolonia Barangay Chairman 09978165433

2. Vher Limbo Barangay Councilor 09676099501

I hereby certify that the information above is true and correct.

MAE ANN N. HERNAN

Signature over Printed Name

136
 CURRICULUM VITAE

ANGELIKA BAYANI JAVIER

Brgy. Dayap Nasugbu, Batangas

Contact #: 09066258458 Email Address: gieeejavier@gmail.com

I. Personal Information

Birthdate: October 2, 1999

Age: 21

Gender: Female

Religion: Roman Catholic

Father’s Name: Fernando B. Javier

Occupation: Carpenter

Mother’s Name: Anabel B. Javier

Occupation: Housewife

137
I. Educational Background
Tertiary Level (Third year)

Batangas State University ARASOF

Brgy. Bucana, Nasugbu, Batangas

2018 –present

Secondary Level (Senior)

Nasugbu East Senior Highschool I

Nasugbu, Batangas

April 2018

Secondary Level (Junior)

Lumbanagan National High School

Nasugbu, Batangas

April 2016

Elementary Level

Dayap Elementary School

Dayap Nasugbu, Batangas

April 2012

138
 II. Seminar Attended

March 07, 2021 Philippine Junior Marketing Association: Juan

Big Idea

April 17, 2021 Online Business Management

Webinar/Workshop

III. Special Talent or Skills

 Communication effectively and fluently in English and Filipino

 Writing poems and songs both English and Filipino
 Proficiency in MS Office and;

IV. Awards and Recognition

Academic Achiever with Honors

Nasugbu East Senior Highschool I

Nasugbu, Batangas

S. Y 2017-2018

Cooperative Award

Lumbangan National Highschool

Lumbangan Nasugbu, Batangas

S. Y 2016-2017

139
V. Character References

NAME POSITION CONTACT NO.

1. Norberto Apolonia Barangay Chairman 09978165433

2. Vher Limbo Barangay Councilor 09676099501

I hereby certify that the information above is true and correct.

ANGELIKA B. JAVIER
Signature over Printed Name

140
 CURRICULUM VITAE

JIZELLE MORSILLO RICALDE

Brgy. Ligtasin Luyahan Lian, Batangas

Contact #: 09166090387 Email Address: jizzricalde@gmail.com

II. Personal Information

Birthdate: January 2, 1999

Age: 22

Gender: Female

Religion: Roman Catholic

Father’s Name: Ronaldo F. Ricalde

Occupation: Fisherman

Mother’s Name: Josephine M. Ricalde

Occupation: Housewife

141
VI. Educational Background
Tertiary Level (Third year)

Batangas State University ARASOF

Brgy. Bucana, Nasugbu, Batangas

2018 –present

Secondary Level (Senior)

STI College Balayan

Balayan, Batangas

April 2018

Secondary Level (Junior)

Matabungkay National High School

Matabungkay Lian, Batangas

April 2016

Elementary Level

Luyahan Elementary School

Luyahan Lian, Batangas

April 2012

142
 VII. Seminar Attended

March 07, 2021 Philippine Junior Marketing Association: Juan

Big Idea

April 17, 2021 Online Business Management

Webinar/Workshop

VIII. Special Talent or Skills

 Communication effectively and fluently in English and Filipino

 Writing poems and songs both English and Filipino
 Proficiency in MS Office and;

IX. Awards and Recognition

Academic Achiever with Honors

STI College Balayan

Balayan, Batangas

S. Y 2017-2018

Academic Achiever with Honors

Matabungkay National Highschool

Matabungkay Lian, Batangas

S. Y 2016-2017

143
NAME POSITION CONTACT NO.

1. Carmen Baroha Barangay Captain 09978165433

2.

X. Character References

I hereby certify that the information above is true and correct.

JIZILLE M. RICALDE
Signature over Printed Name

144