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BUSINESS PLAN

TILHA SEASIDE CAFÉ

In Partial Fulfillment of the Requirements of the Subject

Entrepreneurship

Presented By:

Jimmy John R. Hofeleña

Ashlie Jane B. Balidio

Merry Lou Faye G. Domingo

Krishia I. Galona

Kristine Mae H. Tanudra

Grade 12-STEM Breccia

Presented to:

Ryan L. Garcia, LPT

Date of Submission:
June 18, 2021
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TABLE OF CONTENTS
I. Introduction…………………………………………………………………….. 3

II. Executive Summary............................................................................................. 4

III. Marketing /Sales Plan.......................................................................................... 6

IV. Operations and Production Management Plan………………………………..

V. Financial Plan…………………………………………………………………….
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INTRODUCTION

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It is quite undeniable that the list of things that the people are looking forward to after
this pandemic keeps growing. Surely, many are picturing themselves out doing something
they have been missing for the past few months.

Ashlie Jane Balidio and co proprietors has entered into negotiations to purchase a café
business called Tilha Seaside Café. Tilha is a hiligaynon word means serenity. The
proprietors wanted to provide a place where the customers can relax while eating or drinking
coffee together with the sunset, sunrise, and the sea breeze because of its great location in the
seaside of Bacolod Baywalk with a high number of passing city dwellers and shoppers who
come and visit which is supported by a large and growing population.

Tilha Seaside Café will serve take away beverages (especially fine coffee) and
moderately priced good quality light meals to the casual dining market within the seaside
near the SM mall. The café and restaurant is profitable, has a strong positive cash flow and
may be seen as a strong viable and growing business. The establishment will provide a
complete quality experience for patrons. The keys to success will be focused in product
quality service and atmosphere. Management will need to have a firm grasp on food beverage
and labor elements so as to deliver the experience to its customers in a fashion that will
inspire repeat business and encourage word-of-mouth recommendations to others.

EXECUTIVE SUMMARY

Mission statement

Vision- The company’s vision is ‘to be the Café of preference for SM City mall of Bacolod
customers’.

Mission- The mission of the business is to satisfy customers’ needs and wants for high
quality beverages, delicious nutritious meals and excellent service.

Business opportunity

Purchase of an established café within the shoreline of Bacolod Baywalk, a seaside

promenade with a beautiful coastline and dramatic sunset located at the Reclamation Area
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near SM City of Bacolod is a part of a large, well-developed community that is still growing,
residential, retail, and commercial development.

The business is ideally located for a Café, being situated on the Baywalk, near the shopping
mall with a high passing trade due to its proximity to the biggest supermarket chain and
several well-known retail chains. There is a limited number of cafés within the shoreline, and
the Tilha Seaside Café has the best location with the high number of local and non-local
people and the conducive beach environment that is specifically designed for relaxing,
socializing, networking, and free from all forms of violence will draw residents and visitors
to "Experience peace with the sea breeze."

Tilha Seaside Café’s primary customers are staff, shoppers, and city dwellers within the
Shopping area who take a break from their shopping or work and enjoy fine coffee or other
beverages as well as for people wanting a light, quick and healthy meal that provide a good
alternative to the fast food options. The success of the business is based on its excellent
location, quality of management and staff, great ‘value for money’ coffee and meals and
superior service. We want to be the café choice for all families and singles, young and old,
male or female. Employee welfare will be equally important to our success. Everyone will be
treated fairly and with the utmost respect so that employees will feel that they are a part of the
success of Tilha Seaside Café. Happy employees make happy guests. Moreover, we will
combine menu variety, atmosphere, ambiance, special theme nights and a friendly staff to
create a sense of ‘place’ in order to reach our goal of overall value in the dining/entertainment
experience. Lastly, we ensure fair profits for the owners, and a rewarding place to work for
the employees.

Objectives
The main objective of this market research is to bring a casual atmosphere enhanced by the
seaside location that will draw staffs, shoppers, and city dwellers to the “Experience peace
with the sea breeze”, taking advantage of the relaxing and dramatic sunset location at the
Bacolod Baywalk.

1. Develop a high quality of different kinds of coffee blends and other drinks that can satisfy
the customers.

2. Profit earning by providing a consistent quality foods and service at reasonable price.
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3. Provide an excellent experience and service to reach the needs and satisfaction of the
customers.

MARKETING SALES/PLAN

Overview

The café market is a competitive market with franchised operators starting to emerge
in the coffee shop segment (also offering light meals), which will over time increase
concentration in this segment. While the level of competition is increasing, the shopping mall
in which Tilha Seaside Café will be located has capped the number of cafés and coffee shops
within the complex. To this extent, there will be limited competition and it is anticipated that
all cafés and coffee shops within the complex will be quite profitable.

Key points about the café/coffee shop:

 Greater concentration in higher than average household income areas

 Sensitive to changes in real household disposable incomes
 The trend towards young singles, couples, families, and business people meeting and
eating out
 Growth with households increasing purchasing frequency and the amount spent in
each transaction in this area

The current general trend is for cafés to concentrate on offering value for money with an
emphasis on consumer taste, as well as franchised opportunities. The market will continue to
benefit from higher incomes and time constraints on some households as well as lifestyle
changes. This will include more dining out or take away food consumption. There are two
key success factors in the café industry that are essential for the business to do well in order
to be competitive. These factors are based on the positioning of the business as well as its’
place and physical appearance:

 Location of café in terms of:

Proximity to surrounding attractions
Short distance to consumers
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Convenience and accessibility

 Physical appearance in terms of:

Cleanliness of premises
Quality of food
Quality of service

Also, we will employ three different marketing tactics to increase customer awareness of
Tilha Seaside Café. Our most important tactic will be social media word-of-mouth/in-store
marketing. This will be by far the cheapest and most effective of our marketing programs.

Word-of-mouth/In-store marketing

 Free taste.
 V.I.P. party – We will host a V.I.P Dinner before the ‘Grand Opening’. It will serve
the dual purpose of training our staff and introducing ourselves to the community. The
list of individuals we will invite comes from the Chamber of Commerce. We will also
include a raffle on the Facebook page, allowing some lucky members of the public to
participate in the opening night.
 Grand opening celebration.

Local Store Marketing

 Make a brochure for the SMDC Bacolod Condominium, large hotels, and popular bed
& breakfast establishments in the city to provide to their guests, containing interior
pictures of our café, menus and prices.

Local Media

 Target social media campaign (via Facebook page, Twitter, and Instagram) to market
directly to businesses for regular business.

SPEET-C Analysis

Social
Tilha Seaside Café will be a favorite hangout spot for many millennial and Gen X
people, as well as a good gathering spot for many others. The company will concentrate on
features that appeal to this new generation of clients. The corporation will also pay a greater
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emphasis on the locations where its outlets are established and should pay greater attention to
changing lifestyle patterns in line with the new normal implementations due to the pandemic,
working circumstances, and the rising urban population. Now-a-days middle class people are
also preferring to hang out in café. These changing patterns and spending disposable income
more on food and beverages make company to focus social trends.

Political
In terms of the political sector, the company ensures that they adhere to the
government's norms and regulations. Tilha Seaside Café, for example, ensures that
employees always follow the company's regulations and that their organizational goals are
met without violating them. Moreover, anytime the organization undergoes changes, they
ensure that all rules and regulations are set and they are always ready to follow
it. Furthermore, Tilha Seaside Café mandated corporate governance at all levels of the
organization. Also, notify customers through Facebook page and other social media sites that
the business will still be operating and providing delivery and take-out instead of servicing
dine-in customers to adhere to government standards.

Environmental
Climate change awareness has risen dramatically, and the government has enacted a
number of regulations to minimize carbon emissions. As a result, Tilha Seaside Café should
place a greater emphasis on employing environmentally friendly products and recyclable
packaging. And given that the Philippines have two seasons; rainy season and summer, the
Café will serve special offers depends on the season.

Economical
As a result of the Covid-19 pandemic, unemployment has increased and people's
discretionary income has decreased, reducing the company's revenues. People have been
spending more cautiously since the pandemic, and they are not spending too much on
expensive items. Tilha Seaside Café would have to shift its labor and operating costs as a
result of the change. The company should concentrate on lowering labor and operational
costs. For instance, we will offer take-outs and delivery service through takeout counters and
Facebook page as an alternative for people who want to relax at home and when dining area
has reached its maximum capacity.

Technology
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Tilha Seaside Café will continuously look for new ways to improve their cuisine. The
Café’s distinctive customer interaction options, as well as their food and beverage
innovations, will help them to attract new customers. The Café will also modify their menu
with the seasons and holidays. Fruit-based drinks were also introduced. To adapt to the
circumstances, they created a no-contact strategy like online selling of products through
website or Facebook webpage and store to home deliveries. With the help of big data
analytics, they understand the need of the customers and design a personalized experience for
them.
Competitors
Our two main direct competitors are Starbucks and Bo’s Café since they both have
strong brand recognition, with high product quality and well-documented processes for
managing business strategy, which comes from being a national franchise business. However,
they have the operating boundaries of the franchisor- which does not give them the flexibility
to change menu items easily. Their flexibility is Tilha Seaside Café can take advantage of by
having a chef who can develop new menu items to meet the changing preferences of
customers. Our competitors have no history of discounting, and while the number of cafés
within the mall is limited, pricing should remain very stable. Tilha Seaside Café will need to
maintain current marketing activities and a high level of service and product quality to ensure
its competitiveness. It needs to have a clear market position to target and promote the quality
and value for money of products and services.

Unique Selling Proposition or Value Proposition

The direct competitors of the Tilha Seaside Café are brand coffee shops and family
Cafés. There are also various indirect competitors, such as bubble tea shops, traditional tea
shops, and other substitutes (instant coffee, bottled coffee, and vending machine coffee). The
existing competitors, both direct and indirect, are numerous in the Bacolod City.

Many of these Cafés have already become frequented destinations of a large number of
customers. The fact is that it costs customers little to check out a different café, which could
be both a positive and negative point: customers are not prevented greatly from trying a
newly opened café, but if this new café does not meet their expectations, they are most likely
to visit other Cafés or go back to their favorites. Substitutes such as instant coffee, vending
machine coffee, and convenience store bottled coffee pose a serious challenge. These are
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very cost-effective and easy alternatives to a cup of coffee from a Café. Although these items
cannot substitute the experience and consistency of buying a cup of coffee from a café, they
remain the preferred option for many consumers seeking a fast and inexpensive dose of
caffeine. Coffee shops are likely to draw more new entrants as a growing and promising
industry. These newcomers may pose a significant challenge to the Tilha Seaside Café. Given
its growing popularity, there's also a good chance that many new entrants will prefer the
seaside, eco-friendly style. The Tilha Seaside Café has two options for obtaining its supplies:
from a Filipino supplier or directly from the exporting countries' farmers. It is important to
check information and the suppliers' trustworthiness to ensure that the source is genuine and
truthful. Coffee shop consumers often buy single items or limited quantities of goods. It's a
great chance to customize based on customers' needs and tastes, which is sure to attract young
singles, couples, and shoppers. Buyer information, such as demographic characteristics and
preferences, is easily gathered and analyzed. Lastly, the cost of materials is likely to be
unaffordable. It is essential to invest in advanced, high-quality equipment at the start (for
example, roaster or coffee machine). Coffee beans that are organic or fair-trade are also more
expensive than regular coffee beans.

As a new and small start-up, Tilha Seaside Café will face many challenges, in addition to the
competitive environment. The first is the limited supply of capital resources. The
commissioner is a small radio station with a minimal start-up budget, and renting, equipment,
and ingredients, among other things, will cost a significant amount of money. The Tilha
Seaside Café also has the problem of not being able to accurately assess its efficiency.
Starting from the initial concept, the founder of the Tilha Seaside Café must envision the
café's operations and tactics before putting them into action. Along with the market's
pressure, it's a concern and a risk for the café.

The coffee shop industry in the Philippines, and specifically in Bacolod City, is rising. The
demand is substantial and consistent. Therefore, there is room for newcomers. Coffee shop
enterprises in the Philippines must be modern, innovative, and trend-conscious to compete in
the Filipino market. For Filipino patrons, going to a cafe is more than just a place to get a cup
of coffee, work, or socialize; it is a symbol, a way of life. Understanding this and being able
to capitalize on it would ensure a new manager's success.

Having young singles and couples (students or professionals) as a consumer target has
several advantages. They are diversified and enjoy trying new things. Maximizing the
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curiosity of this customer target, a firm could attract more customers with its unique concept
and ideals. Filipino students and professionals, on the other hand, are well-known for their
excitement and demand for change, as mentioned in the PESTEL Analysis. Since a result,
believing in the potential of a Tilha Seaside Café is an excellent foundation, as it might attract
millennial and Gen Z patrons who are concerned about social, environmental, and economic
issues and demand change.

Tilha Seaside Cafés should have a considerable competitive advantage over less eco-
conscious enterprises, especially since too many customers link themselves with
environmental and low-waste lifestyles. According to Kang et al. (2011), research of
congruity showed that a high level of self-image congruity of the customer towards a coffee
shop directly impacts their positive view toward the shop, resulting in a stronger intention to
repurchase. As a result, as the number of eco-conscious costumers grows, so will the demand
and level of consumer loyalty to the café. If the firm can maximize this feature, it will be far
more likely to attract attention and support from potential customers, most of whom are
predicted to be students (city inhabitants and shoppers), particularly university students,
either undergraduate or graduate.

Another advantage of the Tilha Seaside Café is that, although customer awareness of social
and environmental issues is growing, few cafes in the Baywalk area have adopted this
subject. Hence, a new Tilha Seaside Café, which its theme focuses on social trends and
environmental awareness, could be an exceptional and viable business. It would provide the
cafe a significant competitive advantage.

Market Segmentation
There is substantial population growth in the area as residential development
continues and commercial development commences. The master-planned community attracts
a high socio-economic demographic with high employment and higher than average per
capita income. Tilha Seaside Café customers are the passing shoppers, shopping mall staff,
and city dwellers of ages from 16 years old and above either students, professionals or self-
employed who enjoy a fine coffee or other beverages (dine-in or take away) and a healthy,
value-for-money meal. The majority of the general public consulted in the shopping mall
were young singles, couples, and families. The Café will make it particularly easy for a
young family to enjoy a meal by providing a range of children meals and activities. Our
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takeaway beverages will also appeal to this group and the segments made up largely of
couples and singles between the ages of 18 – 40 who shop or work within the shopping mall
precinct. They tend to have moderate incomes with high discretionary spending. The majority
of customers who purchase coffee from Tilha Seaside Café are ‘social drinkers’, followed by
customers who want their daily fix or a pick-me-up. They are wanting a convenient, friendly,
and relaxing environment to recharge their batteries, have an internet connection, or socialize
over a fine coffee, choice of beverages, and quality fresh, light, and healthy meals that
provide an alternative to fast food options. The market needs to satisfy customers' needs and
wants. And it is based on convenience, quality, and value for the coffee drinkers plus the
health-conscious consumer- who is concerned about what they eat.

Market Research
The Café proprietors was interested in determining the functional needs, perceptions,
attributes, and major contributing factors of customer satisfaction whether it can make or
break the success of the café regardless of its size, location, demographics, or even the quality
of the cuisine. The proprietors conduct a survey among 20 respondents of ages 16 years old
and above within the Bacolod City area using google forms.
THIS MUST BE A SUPPORTING DOCUMENT PLS TRANSFER THIS AT THE
LAST PART
Name of Respondent (optional): ______________________________________________
Age _______________ Gender:  Male  Female  Prefer not to say
Occupation:  Student  Professional Self-employed  Others:______________
1. What do you prefer?
 Coffee
 Tea
 Frappe
 Milktea
 None
2. How often do you visit coffee shops?
o 1-2 times a week
o 3-4 times a week
o 5+ times a week
o once a month
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3. Amount spent per visit (Php)?

o less than 150
o 150- 200
o 201- 300
o above 300

4. What would you prefer to eat with your beverage?

 Pastries
 Street foods (fishball, fries, corndog)
 Healthy snack (fruits, vegetable salad)
 None

5. How long do you spend in coffee shops?

o Short time (take outs)

o Long time (dine in, studying, hang out, enjoy the services)
o N/A

6. Which do you prefer?

o Café in the city (Buildings and establishments view)
o Café near the sea (Seaside view)
o Café in the mountain (Mountain view)
o None

7. What time of the day would you most likely to visit a Café?

o 7am to 9:30 am
o 10 am to 11:30 am
o 12 pm to 2:30 pm
o 3pm-6pm
o 6 PM onwards
o N/A

8. What attributes are important to you when consuming coffee at coffee shop?

o Quality of beverages
o Quality of food
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o Quality of service
o Price
o Friendly services
o Speed of services
o Location
o Spacious environment
o Cleanliness of the shop
o Enjoyable atmosphere
o Peaceful and unique ambiance
o Wi-Fi access

Marketing Mix or 7P’S of Marketing

1. Product Description:
Our products are based on the most loved snacks of the Filipinos. The cafe decided to have
coffee, milktea, shakes, corndogs, tacos, fries, and pastries as their menu.

2. Price: cheap and affordable

The cafe is considering and assuming that most of the WRONG SPELLING costumers will
be around 16-29 years old. So, it is decided that the price of each product should be
affordable and cheap but can also satisfy the needs of its customers.

3. Selling location: Seaside

The Tilha seaside cafe is located at Baywalk near SM Bacolod. These days, most of the
coffee shops are located on the mountains and inside the cities and this cafe wanted to start
something new. The area was chosen so that there will be a new scenery for customers while
drinking coffee and relaxing as they watch the sunset with someone that are dear to them for
example.

4. Promotional Activity: Print media/ Social media promotion

We will offer loyalty cards if you have already consumed 100 cups of coffee in the cafés
store. Also, print advertisements such as posters and brochures for promos. The cafe will also
use social media for the campaign via Facebook, Twitter, and Instagram.
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5. People/Team: People with good communication, presentation and service for the
costumers.
The cafe will ensure that they will have the best people that can serve their customers with
their satisfaction. The team should also be the best in preparing the food for the costumers.
Not only that, presenting and communicating with the costumers is the most important thing
that our team should have.

6. Packaging:
Tilha Seaside Coffee would leave every customer an impression that they wouldn’t definitely
find on other cafe because of the vibe and the light atmosphere that cafe brings. The moment
you enter the shop, you’ll feel relaxed of the minimalist design and the color of the place.
You could also witness a breathtaking scenery because of its location. The products’
packaging will be reusable containers, biodegradable straws, and paper bags which encourage
the customers to be an environmental friendly individuals. Also, the product's packaging
includes the logo and the signature line that could leave a good impression to the customers
and could also attract new ones.

7. Positioning:
For individuals looking for a high-quality products and services at a reasonable price, Tilha
Seaside Café offers varieties of coffee blends, other drinks, and food –each creates a peaceful
experience for the customers. Tilha Seaside Café products inspire happiness and make a
positive difference in the customers’ lives, and the brand is intensely focused on the needs of
consumers and customers.

Brand Name
Our products are beverages such as coffee, milktea, frappe, and shakes. We also offer foods
like pastries and street foods. I chose the name “Tilha”, a Hiligaynon word that means
serenity because it clearly describes the quality and ambiance of our café and the mission to
meet our customers’ need and satisfaction.
You can use it to grab attention and to have a good first impression as it provides the
customer with instant recognition of your brand, business or service that you offer and it
promotes the awareness of the business to stand out from other businesses.
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I chose the Brand Name Tilha Seaside Café because we wanted to provide a place where the
customers can relax while eating or drinking coffee together with the sunset, sunrise, and the sea
breeze. The color of the logo, which is brown is a safe color that explains a state, where they
can let go of their stresses and relax which every customers could experience while staying in
our café. Also, brown represents quality, organic, warmth, earthiness in food, drink, and
home. The Sun icon means that we will be open for everyone from dusk 'til dawn for our cafe
is open 24/7.
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