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Finals- Coffee Grind

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Business Plan: The Grind
Coffee
RETMANA
Submitted to:
INTRODUCTION
Filipinos had shifted from being moderate to heavy coffee drinkers according to a study
conducted by Kantar Worldpanel Philippines. These are the people who buy and consumes coffee
for at least thrice a week (126 times a year) with all the available instant coffee products or 3-in1 brands in the market aside from all those popular coffee restaurants or cafés like Starbucks.
Most people would usually start their day with a coffee, if not milk or milo, and some would drink
it to keep them awake if needed for work.
Starbucks has been a popular and a relevant coffee shop in the Filipino market. It is
perceived as luxurious and is contributing to the social jobs of its customers. People who cannot
afford to buy from this shop or other shops and coffee drink varieties in a same price bracket
could only settle for 3-in-1 brands or instant coffee brands like Nescafe, Kopiko, and Great Taste.
A good cup of coffee does not have to be expensive. It is our mission to provide a good
cup of coffee at an affordable and reasonable price. Finding a great coffee on a budget is not an
easy task. This is why we want to help ease the customers’ hassle and hardship and doing so and
we gladly present them good quality coffee for a good price.
EXECUTIVE SUMMARY
The Grind Coffee will make a coffee shop experience cheaper but still giving sophisticated vibes
at the same time. The business will offer pastries and coffees that are ground, roasted, and
brewed from local coffee brands like Basilio Coffee and FOB Coffee (Figures of Beans). The
business idea also aims to offer the convenience that the instant coffee is giving to people to give
them other options than a daily consumption of a coffee in sachets which could be unhealthy. A
space in the shop will be provided for dine-in, there are shelves for packed coffee displays, and a
space for the counter.
The café will be a small space with an interior design consisting of a white, black, and wood
touches complimented by plants hanging from the tables, and the walls. This is to ensure the
cleanliness and homy feel and vibe of the café. Soothing music will always be played to help sway
the emotions and mood of the customers. The area will be scented beautifully by the aroma of
the coffee beans being brewed to the customers.
Most of the popular coffee shops are located near and inside malls or other locations that are far
for some people who do not really want to travel to buy and drink coffee and for those who want
a quick purchase or just a drop-by. The Grind Coffee will be a great option for them specially for
those who are near Universities in Manila like the Polytechnic University of the Philippines (PUP)
since the business is eyeing for this specific location and the shop will also provide a free Wi-Fi
for customers.
The company aims to be the preferred coffee shops of the nearby university. We want the
students to think of our coffee and our place whenever they want to hang comfortably with their
friend or when they want to study. When they want to buy coffee, our product and our beans
should be the first thing they will think of.
A strong positive presence on the internet should always be maintained. Our Facebook page
should be flooded with positive reviews to entice new customers to try and drink in our small
café. Advertising on the internet and our signage and logos is noticeable in the busy streets of
Teresa. Events would be regularly held to continuously gain more customers. Students spreading
their pleasant experiences and good taste of coffee would be a good way of promoting the café.
INDUSTRY & SITUATION ANALYSIS
Product
Coffee is one the most popular caffeinated drink. About three billion cups of coffee are
consumed each day. The average daily coffee drinkers consume 3.1 cups per day. It can be
consumed either hot or cold. Coffee is brewed from roasted coffee beans that are harvested from
certain species of the Coffea plant. It is served both hot and cold and is prepared in a variety of
ways.
Market Segment
a. Coffee Shop Lovers
A large portion of coffee drinkers prefer going to the coffee shops for the ambience. They
want to have good coffee while also having a comfortable place and atmosphere while they drink
their coffee. The atmosphere of the coffee shop completes their entire coffee drinking
experience. People also loves to chat and hang out in coffee shops to enjoy the company with
each other.
b. Whole Bean Buyers
These customers love to have good drink and enjoy and brew their preferred drinks at the
comfort of their home. Coffee bean buyers are knowledgeable about the beans and are curious
on how their beans compare whether they taste it in the shop and if they made it at home.
c. Coffee Day Starters
People wants a good cup of coffee to start their day. Student and workers alike feel that
they won’t function properly without having a coffee to start their day. These customers want a
quick purchase and leaves the café once they have received their order.
d. Wi-Fi Enjoyer
These customers want the best bang for their buck. They want to connect their phones
and devices to the internet and do what their supposed to do. Some even goes to coffee shop to
have a quiet atmosphere and study in it. Studying in coffee shops have been the trend for young
adults and wi-fi connections is a must to this market.
Market Growth
The coffee market is expected to grow by 5.6% over the next five years, according to the
World Bank. The market has been growing steadily since 2000, with a 4% annual increase in
consumption since then. In terms of volume, per capita consumption has increased from 1.3
kilograms per person in 2000 to 1.7 kilograms in 2015, an increase of 18%.
There are many factors that contribute to this growth: more people have access to higherquality coffee options; people's tastes have been changing; and there has been a shift in how
people purchase their coffee from convenience stores rather than groceries stores (which used
to be the primary source).
SWOT Analysis
Strength
Weakness
High Quality Products and Service
Competitive Market
Attractive Store/Layout
Limited Market Share
High Quality Products
Low Brand Awareness
Effective Sales and Service Culture
Reliant on one main channel
Close to the Customers
High Operating Cost
Opportunities
Threats
Develop customer relationship
Ability to meet cash flow requirements
Improve overall customer experience
Consumers becoming more price sensitive
Build Brand Awareness
Limited Profit Levels
Porter’s Five Forces Model of the Coffee Industry
1. Bargaining Power of Buyers
The bargaining power of the consumer for the coffee industry is the most significant
factor among the forces in the coffee industry. There are many coffee providers that sells to
consumers with little differentiation with the product through cafes and through online apps.
Customers have several options to what they want to buy and can also purchase substitutes with
easy availability. Customers have their preferred coffee provider, but the loyalty is not strong
enough to make them buy to only one coffee provider. The switching behaviors of the customers
in the coffee industry is high with low to zero switching cost. Because of these factors, the
bargaining power of the buyers is very high and also shows how vital customers are to the state
of the company.
2. Threats of Substitute
Customers have several reasons on why they buy coffees. To some, they want coffee to
help start their days right and give them energy and focus to battle through the day. Others buy
coffee as a pass for their group of friends to sit on a place comfortably and chat. Many other
trends are on the rise that may be a substitute to a coffee or a coffee place. Milk teas, teas, and
fruit shakes are emerging threats to the coffee industry. This makes the threat of substitute in
the coffee industry high because of the availability of multiple substitutes.
3. Competitive Rivalry
The Coffee industry is as strong as ever. The competitive rivalries among players in the
coffee industry is fierce because there are so many strong major players in the coffee industry
scene. Starbucks being one the leading coffee providers opening stores left and right, is taking
up a huge chunk of the market share. Other notable players in the coffee industry include Tim
Hortons, Bo’s Coffee, J. Co’s, Dunkin, and many more. This makes the competitive rivalry among
the coffee industry very high.
4. Bargaining Power of Suppliers
The Bargaining power of suppliers is low because the power of the companies is very strong and
commanding. Companies have the option to buy different from a different supplier which puts
them in a dominant position during their negotiations. Suppliers want to have a contract from
big companies to secure sales and this puts them in the mercy of the bigger companies.
Additionally, most companies try to produce their own coffee beans which are the key ingredient
in the coffee to lower cost which makes it even more difficult for suppliers to have power over
the company.
5. Threats of New Entrants
The threat of new entrants in the coffee industry is very high because customers keep
wanting to try more variety to their coffee preferences. Also, the differentiation in the coffee
product is low compared to other products. Customers are still drinking coffee whether they are
trying a famous brand and a start-up company. This makes the hurdle of customers to market
entry low. Starting a local coffee shop would not cost a big capital as the skills of brewing and
roasting the coffee is trainable because it is not highly technical. Consumers of coffee are
increasing, and this makes the coffee industry strong and booming.
COMPETITION ANALYSIS
Advantages
BigBrew
The Coffee Syllables
The Coffee Realm
Staffs are attentive and The stall is in Newton Plaza. Has dine-in option and good
organized
customers.
in
handling Customer can buy coffee while ambience to enjoy your
doing grocery.
coffee
When ordering two 12oz brewed The brand has a credible
coffee they will give you a discount Facebook page
The price of their product is
affordable
specially
for
students
Good social media presence,
they post the photos of their
customer on their Facebook
page.
Fast
ordering
and
preparing
process. Good for customers who High pedestrian traffic
want coffee but can’t wait.
Disadvantages
BigBrew
They don’t have dine-in
option
The Coffee Syllables
The store is only a small stall
The Coffee Realm
Price point is not very
affordable for students
The store doesn’t offer Wi-Fi They don’t have a good social Slow Wi-Fi Speed
for their customers
Not student friendly because
the students can’t study in
the store
media presence
Stall is not aesthetic pleasing to The branch don’t have their
look at
own Social Media Page
Key Findings

Customers around Polytechnic University of Philippine Sta. Mesa preferred buying
affordable drinks than more luxurious coffee brand. They are very practical in their
busying decisions because most of them are in the low-income family bracket.

Most students who buy coffee daily are expecting a comfortable store ambiance for them
to have an option to study peacefully.

For some students, a store with a reliable wi-fi is what they are looking for because they
can use it for their research and other school activities

There are customers who preferred making their own coffee at home but they specifically
select the coffee brand of their favorite coffee shop.
There are only few great coffees shop around Polytechnic University of the Philippines. It
will be very beneficial for starting coffee shop to penetrate the market and take advantage on
the spots that existing shops are not utilizing. There are coffee shops that are offering affordable
coffee but they don’t have dine-in options.
Customers around the community are mostly PUP students that is why having a dine-in
option is very advantageous for the coffee shops because many students prefer studying inside
a coffee shop so they can peacefully study on it. Some students also rely on free wi-fi of different
restaurant and even students who have internet at home prefer going to coffee shops to have a
faster wi-fi for them to finish their school activities.
There is only one coffee shop in the premise, that offers dine-in option and free wi-fi but
there the products they sell are not affordable for students. If there will be a coffee shop near
PUP that sells good quality coffee for an affordable price and offer dine-in option and free fast
wi-fi it will surely be loved by students of PUP and near residents. There is a large potential for
coffee shops in penetrating the market in PUP.
OPERATION PLAN
Goals

The goal is to provide a substantial income to the business and to establish a working
place environment where both the customer and employee are treated with respect.

To provide a friendly, comfortable ambience where the customer can receive quality of
drinks and service at a reasonable price.

Establish the brand message and voice.

Hiring students to support them financially and providing both training and work
experience.
Tasks and Responsibilities
POSITION
CEO
LOGISTICS
ROLES

Managerial Decisions and

Manages the store during business hours
Implementations

Monitor and guide employees

Managing Finance

Keep track and secure finances

Marketing and Sales

Strategize and implement marketing activities

Human Resources

Hire and fire when needed

Train or orient employees
Planning and managing

Negotiate with suppliers
logistics and stocks

Plan vehicle route

Product/stock purchase

Coordinate and control order cycle

Storing of products

Tracking and Recording stocks
Deal with payments and

Store preparations
other finance related

Product displays (stocking

AND
INVENTORY
CASHIER
TASKS

activities during business
shelves) and rearranging
hours.
store layout designs
payments
b) Interact with customers
in a friendly-manner

Protect store property

Promotional Displays
c) Operate cash register

Attend to business

Open the shop at exactly
d) Respond to any
activities at physical store
7:00am.

BARISTA
a) Process customer

Coffee making

Protect store property

Attend to business
activities at physical store
Operate the physical shop
during open hours

Close the shop at exactly
10:00pm.

Check stocks, tools,
equipment, and materials
for the next day’s
operation

customer needs
Track, record, and check
sales/revenues
a) Wait and process orders
(brewing coffee)
b) Recommend something
to customers
c) Pack or serve orders
The table shows the specific roles and tasks for every employee including the CEO. Every
employee could actually help in doing tasks in line with the store opening preparations, although,
those are specifically assigned to our cashier and barista.
Required Resources
A. Business Requirements
1. Business Name Registration
The business must comply to all business requirements. A business name registration
secures our reputation to be a legitimate business.
2. BIR Registration
Registration Fee
A registration to the BIR is one of the main requirements in doing a proper
business in the Philippines. Any entity that receives income from business has an
obligation to register and pay their taxes. Failure to do so may result in a fine, penalty, or
imprisonment
Documentary Stamp Tax
Documentary Stamp Tax is a tax on documents, instruments, evidence, loan
agreements, and papers evidencing to the acceptance, assignment, sale, or transfer of an
obligation, right or property incident thereto.
3. Barangay Permit
A barangay clearance certifies that our business properly complies with the requirement
of the local barangay and allows the business to operate.
4. Staff SSS
the shop is obligated to give the monthly SSS contribution of our employees.
B. Location and Rent
This will be our priority resource because this is the place where our business will officially to
operate. We prefer location near universities with approximately 40 sqm and 5x8m with a low
rental cost.
263 Teresa Street, Sta. Mesa, Metro Manila

High pedestrian Traffic

Walking distance from Polytechnic University of the Philippines

It is near every store such as grocery, hardware, convenience store and many more

Many students from PUP are using Teresa Street to go to school and back at their house

High residential population

High visibility because it is located along Teresa Street
C. Shop Aesthetics
1. Theme
The coffee shop will have a wood theme with a color combination of black, white, and
brown which will also have a touch of modern designs. This theme will surely
contribute in setting atmosphere inside the shop as it gives color of coffee combinations
and aura.
2. Interior Decoration

Seating and Tables
We have four tables with four chairs each table that can accommodate up to sixteen
customers inside the shop.

Countertop
This counter will be a divider for barista and cashier from the customer inside the shop.
This counter will be the working space for both our barista and cashier enable for them
to do their job efficiently and effectively.

Smart TV
For both entertainment and advertising purposes.

Plants
We want to put plants as interior decorations for the shop. Putting plants give the aura of
the shop as clean, relaxing, and comforting. Plants also contribute to aesthetically
pleasing the customers

Speakers and Music
Music sways the emotion of the customers. We want to play music to help get the in the
right mood when they drink our products
D. Coffee Business Essentials

Coffee Maker
This equipment will be use by our barista to brew our coffee and served it freshly brewed
to the customer.

Espresso Machine
Machine use to produced thick and concentrated coffee called expresso.

Refrigerators
For storing liquids and easy to spoil food items.

Water and Electricity
essential needs for the shop to operate.

Pumps and Containers (for syrups and beans)
for fast and easy usage.

Sugars and Syrups
optional items to choose by customers to add for their coffee adjust the taste to the
customers’ liking

Cash Register (PoS)
This will be operated by our cashier personnel. This machine will help us to accurately
record our sales and stores the money safely.

Shelves
Properly display our equipment and our retail products.

Wi Fi
For the students to have a free access of internet whenever the drink coffee inside the
shop.

Cleaning Materials
Basic things for cleaning to maintain the cleanliness and hygiene to our shop.
E Inventory and Miscellaneous

Beans/Coffee Products
Coffee Brands
Basilio Coffee
a. Price Range 36.00 – 1400.00
b. Varieties: Ground, Beans, Coffee Drip, Civet Coffee, and Powdered
c. Beans: Arabica, Robusta, Liberica, and Excelsa
d. Source: Bukidnon, Quezon, Benguet, Mindoro, and Mt. Province
FOB Coffee (Figures of Beans)
a. Price Range: 369.00 - 1,099.00
b. Sizes: 250g, 500g, and 1kg
c. Beans: Arabica and Robusta
d. Varieties: Dark Roast, Hazelnut, Caramel, and Vanilla
e. Sources: Benguet and Sagada
f. Inclusions: Coffee tools and complements
Caffeine Brothers (With subscription options and available in Shopee, Lazada,
GrabMart, Foodpanda, MetroDeal)
a. Price range: 150.00 – 725.00
b. Sizes: 200g, 400g, 800g, and 1kg
c. Beans: Robusta, Liberica, Arabica, CB’s Finest,
d. Varieties: Coffee Drip Bag, Beans, and Powder (Medium roast, dark roast,
etc.)
Kape Maria (Deliveries will be through Grab, Angkas, Lalamove, Mr. Speedy, and
LBC)
a. Price range: 285.00 – 325.00
b. Sizes: 200g
c. Beans: Arabica, Robusta, and Excelsa
d. Varieties: Pulag, Amuyao, Maynila, and Cordillera
e. Sources: Benguet, Cavite, Ifugao Province, and Luzon Farms

Cups
A disposable cup with a cup cover.

Utensils
Coffee stir stick and spoons will be needed for mixing and scooping.

Paper Bags (to go)
A shopping carrier or packaging for customers who’ll buy 2 or more products.

Tissues
Will be handed to customers for wiping or cleaning purposes.
Timeline
Possible Challenges
A. Crowded Space
The Coffee Shop industry has been steadily on the rise for several recent years. Coffee
shops, international brands and local brands alike, has been appearing left and right to serve the
customers that likes to drink their coffee. We, the owners, have to understand the market and
keep up with the trend to the coffee industry. A delicious coffee bean, better location, or creative
promos would help us distance and have an edge to our competitors. We must regularly conduct
market research and collect information on what the customer’s buying behaviour is and what
will it be in the future.
B. Financial Managements
Poor financial managements have always been a downfall of many start-up businesses.
We must understand our margins and how much it delivers profit to our business. Understanding
our costs to make sure it doesn’t affect our cash flow negatively should always be kept in mind.
Pricing our products should be a priority to keep as afloat in the business. To improve the
company’s financial management, we must regularly check and update our balance sheets and
should conduct sales forecast to predict our sales to measure our profits and losses.
C. Knowledge and Skill gaps
As first-time entrepreneurs, we must understand that we are a beginner in the space.
Always yearn for knowledge and experience to know the ins and out of the industry. Arrogance
can be a major downfall of every business. Seeking advice to experts and actively reading
business advice and lessons would help us significantly to help further our business.
D. Hiring the Right People
The Grind Coffee plans to hire students as part time workers for our shop. This is to help
nearby colleges have a source of income and a convenient workplace to their primary jobs as
students. With this in mind, we understand that they are part time workers and inexperienced.
Inexperience may lead to poor performance or poor work ethic. To avoid this problem, we must
be thorough in our hiring process. Carefully examining the applicants during the interview must
be done. After the hiring process, trainings should be conducted properly with strictness.
E. Time Management and Productivity
Time Management is crucial to every business. Planning and scheduling will be very vital
to keep our business on track and help us achieve our goals. Following the time and abiding the
schedules would help greatly in maintaining the trajectory of the business. Important tasks such
as the day of deliveries, cleaning the area, managing tax schedules should be handled properly
to avoid future hassles. The owner’s and employee’s productivity must also be kept in check if it
is beneficial to the business. Motivating them to help improve our performance must always be
done to also increase efficiency as it will reflect to the business’s sales performance.
Measuring Success

The business got return on investment on year one

Having 100 customers to shop in our store daily

Revenue is increasing minimum of 60% per year

Getting 30,000 likes on our Facebook Page and 5,000 followers on Instagram

Full of positive review on our Facebook page

Employees loved their job and work environment

Opening new branch on different location
Preparations for Emergencies
The Grind Coffee will also make a plan and will prepare things needed when emergency arise.
The business could consider the following:
Fire disaster

Install smoke alarm detector

Keep exits clear and mark emergency exit

Educate employees: fire safety procedure and evacuation plan

Fire extinguisher
Heavy rains and flash flood

Stock emergency kit (flashlight, batteries and first aid kit)
Earthquake

Conduct an earthquake drill for employees (Drop, cover and hold procedure)
Bio security threats

Hygiene practices must be observed for all employees
Workplace accidents or deaths

Train employees for Standard first Aid and Basic life Support (i.e., CPR)
Loss of power

Power generator
Terrorist or major criminal incidents

Install CCTV for documenting/recording incident purposes

Emergency alarm button
MARKETING STRATEGY
Social media marketing strategy
We will connect with our customers through the use of social media, including TikTok,
Instagram, Twitter, and other well-known social platforms, as we can advertise our coffee shop
by posting videos, sharing pictures of our coffee shop and menu items, promoting new products,
announcing coffee shop events and news, sharing a behind-the-scenes look at our employees
and culture, and directly engaging with customers.
Influencer Marketing
We will employ influencers to market our goods by inviting them and providing them with
special treatment and benefits so they may promote our coffee shop in their specialized sectors.
Influencers include food bloggers, local leaders, news anchors, and even well-known student
athletes.
Online Reviews
We will utilize Yelp and Google My Business since they will make it easier for people to
find us online, allow us to display images of our menu and items, and can also assist us by
enhancing our profile through paid advertisements and page upgrades.
Word of Mouth and Networking
We may get to know our "neighbors" at adjacent firms by joining local Chambers of
Commerce, entrepreneur clubs, or small company groups. Find consumers that share our
interests, and we might be able to work together to increase traffic to our coffee shop. We can
better understand and help the local population by getting involved with local clubs,
organizations, or schools.
Events and Experiences
We will be able to attract new clients via hosting. This may also be a fantastic approach
to build brand recognition and create loyal customers.
TEAM MANAGEMENT STRUCTURE
Flat Structure
This structure is mostly used by small businesses or start-up businesses since it only
requires fewer levels of management, thus, makes the reporting line more direct than other
structures like hierarchical team structure. It could also initiate more communication and
collaborations between workers.
In this case, less staffs are required which means reduced expenses and employees will
feel more appreciated and encouraged because of greater responsibility given to them with the
absence of middle management. The management structure could still change in the future
depending on what will be more appropriate for the business if it expand or grow which could
require more employees or middle management.
FINANCAL BUDGET AND FORECAST PLAN
RENT COST
40SQM
30,000x3Mos. deposit
90,000 = TOTAL
CONSTRUCTION COST
Paint job
10,000
Electrical fixtures
8,000
Decoration
5,000
Tiles
10,000
Laminated wood floor
40,000
Woodworks
8,000
Masonry works
5,000
Labor
4x600 per day (6 days)
14,400
100,400 = TOTAL
FURNITURES, APPLIANCES, & MISCELLANEOUS
Tables and Chairs
4 sets (6,000)
24,000
A/C Unit
2HP Split type TCL
35,000
Espresso Machine
Asahi CM039
6,700
Coffee Maker
Dowell CM-1050
1,100
Coffee Grinder
Barista Brothers Smart Coffee Grinder
5,500
Water dispenser
Asahi
8,000
Refrigerator/Chiller
11 cu.ft Fujidenzo chiller
25,000
Airpot
5L Imarflex
3,000
Wifi
Globe 100MBps
2,000/month
Television
LG 43inch Smart TV
22,000
Basic POS System
Employee Uniform
3,000
500/set (top, apron, cap, nameplate)
2,000
124,000 = TOTAL
INVENTORY
Beans
P 200/kg
20 kg
4,000
Cups w/ Lid for warm drink
P 175/25pcs
20 packs
3,500
Cups w/ Lid for cold drink
P 275/50pcs
10 packs
2,750
straw
P 43/100pcs
10 packs
430
Wooden coffee stirrer
P 39/100pcs
10 packs
390
Paper bag
P 5/pc
1000 pcs
5,000
Tissue Paper
P 80
10 packs
800
stickers
P 45/50pcs
10 packs
450
Sugar
P 85/kg
10 kg
850
Syrup
P 300/L
5L
1,500
milk
P1,000/ 12L
24 L
2,000
21,670 = TOTAL
HUMAN RESOURCE
Logistics
/
Inventory P75/hr
1 staff
14,400/month
2 staffs
26,880/month
Personnel
Cashier / Barista
P70/hr
41,280 = TOTAL
Grand Total = 377,350
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