CHAPTER I
A. PURPOSE OF THE BUSINESS
A demand of high quality coffee products, service and training/simulation for
students of the Hotel and Restaurant Management, wherein the academic and administration
provide a low operating cost of products and services and income and on the job training,
assessment and as a part of the curriculum, which will help generate funds for the hotel and
restaurant department in sponsoring for competitions, student activities and maintenance of
laboratory equipment will
be the sole purpose of the study which will benefit not only the
students of NWU but also the
faculties, other employees and visitors of the University.
Therefore, we are proposing for a coffee shop or a café that will serve espresso coffee and
other specialty coffee product as a training/simulation room for HRM students, which can
cater good quality coffee and pastry demands and needs of the students, faculties, and
visitors of the University which will be named as “COFFEE MATE CAFE”.
B. SUMMARY
A survey was conducted on the 10’th of July wherein 100 respondents were
gathered from the high school, college, graduate school, employee and visitors were given a
questionnaire about their knowledge in coffee and willingness for a new experience here in
northwestern university, we noticed that:
1. The need of an establishment wherein you could sit down and enjoy coffee
2. No option in coffee based drinks within the campus
3. There is a positive reaction of the introduction of espresso coffee in the university.
1
4. Most have not tried a cup of “real coffee”
5. Willing to pay a more expensive coffee rather than 3 in 1 coffee
Since the closest establishment which serves hot brewed coffee or tea is outside, we
the students proposed coffee shop that will evolved basing on the demand and needs of the
clienteles within the university. If proposed project will be approved, INTEGRATION OF
THE ACADEME CORRICULUM as part of the On the Job Training of HRM students,
simulation of bartending, demo showcase of bread and pastry, and service area for food and
beverage service program, and funding and support from the ADMINISTRATION in the
financial capital of the and to fill the needs for a higher accreditation requirement.
What is good about this coffee shop is that, HRM students will run the
operation guided by a café manager which will be employed as staff of the university
overseeing the technical and non technical aspects of the café operation. Training of students
and introduction of the workplace is also part of its responsibility. And prepare the coffee
drinks in the absence of students: (semestral brake, enrollment, vacations). Along with the
manager will be 2 the custodial employee working in shift (AM and PM) to assist in the
preparation and maintenance of the working area, service and also perform the task of the
students in their absence.
This will also help the HRM students to practice handling a business particularly in
a Café environment by managing the café, preparation of mise and place with the help of
manager and custodial to be hired. Since HRM students will give their major share in the
operation of the canteen, it will be an advantage of the canteen to have a minimal expense in
the manpower because HRM students will not be paid but they will work in the canteen as a
trainee/OJTs and could be used to show case products of the HRM in their laboratory..
2
CHAPTER II
THE BUSINESS
A. MISSION STATEMENT
Our mission is to provide globally competitive training skills for hotel and
restaurant management students; promote products and continuously grow through
innovation and dedication to excellence, to be in class above our competitors by providing
personalized service and excellent performance with upholding the Northwestern University
values.
B. OBJECTIVE
1.
To provide a globally competitive students through hands on training and
application of academic knowledge in the industry.
2.
To provide affordable and quality cup of coffee to the customers.
3.
To educate the northwestern university community of espresso coffee.
4.
To immerse the HRM students in the working industry.
5.
To support the hotel and restaurant management programs and activities
C. COMPETITIVE ADVANTAGES
Among other establishments that offer coffee drinks to their customers are most
Coffee Mate’s limited and full service coffee shops. Coffee Mate’s direct competitors will be
other coffee shops located at University of Northwestern campus and outside business
establishment. Food service establishments that offer coffee and a coffee shop located beside
3
the university The Stone House. Coffee Mate will definitely be one of the major competitors
because of volume of clients and established marketing and operational practices. However,
despite of Coffee Mate’s entrenched market position, many customers favor smaller
independent establishments that offer cozy atmosphere and good coffee affordable prices.
Coffee Mate Cafe is a good example of such competition. We estimate that Coffee Mate’s
hold approximately 35% market share in that neighborhood, Coffee Mate’s appeals 25% of
customer’s, with the remaining market shares split among other establishments. Coffee Mate
will position itself as a unique coffee shop that not only offers the best tasting coffee and
pastries but also provide home-like cozy and comfortable environment, which established
corporate establishment’s lack. We will cater to customer’s bodies and minds, which will
help us grow our market shares in this competitive market.
Location – The café will be situated at the Student Lounge in front of the Mega canteen
and may be used as a venue for seminars and meetings
Manpower –Low overhead cost in labor wages because the HRM will run the entire
operation with the help of a manager and custodial worker
Non Commercial Establishment – Also a laboratory for hotel and restaurant
management students, this can also be used as an assessment area for bartending
NC IV or also known as “Barista”
Price – Products priced at or lower than indirect competitors.
SWOT ANALYSIS
The following SWOT analysis captures key strengths and weaknesses within the
company and describes the opportunities and threats facing the business.
4
Strengths

CMC will be located at the center of the school where the customers mostly
walk by.

Well trained employees with experiences in management in restaurant
establishment.

No direct competitors

Low overhead expenses

Student and university involvement

Supported by the university

Non profit establishment

Minimal operation input

Convenience and relaxing environment
Weaknesses

Academic calendar break and major holidays

Limited menu

The Coffee Mate Coffee Shop's limited brand equity.

A limited marketing budget to develop brand awareness.
Opportunity

Abundant new prospects of coffee drinkers

Provide and training students in the coffee industry
5

A growing market with a significant percentage of the of the target market still
unaware of the Coffee Mate Coffee shop.

Increasing sales opportunities as people become familiar with the advantages of
the structured conversation system.

The ability to lower variable costs through efficiency gains.

Future expansions for an assessment venue

Small meetings and seminar venue
Threats

K212

Economic stability which affects the cost of raw materials

Outside factors which sells 5 peso coffee vendo machine
KEY SUCCESS FACTORS

Store design that will be both visually attractive to customers, and designed for
fast and efficient operations.

Employee training to insure the best coffee preparation techniques

Marketing strategies aimed to build a solid base of loyal customers, as well as
maximizing the sales of high margin products, such as espresso drinks.

Provide the best products and easy to recall to every customers so that it’s their
trademark for them to go back again in our business.

Staff. Hire employees with a work experience and have a strong background
with the position that they want to fill up if they are fit to their job satisfaction.
6

Product. They must be original recipe or menu with no copying of different
styles to the other business establishment.

Service. Serve your customers very well and treat them properly. Because
customers always right. Be humble to every customers.

Maintaining a cost of goods on foods at below 50%.

Excellent customer service.

Attracting customers who find value in the Coffee Mate, Coffee Shops offering
and who will frequent the Shop regularly in order to meet like-minded single
people.
D. MARKETING STRATEGY
The main strategy is to educate and target the students in the coffee drinking culture.
With a low overhead cost with the help of OJT, a lower price can be presented to attract more
clients in the coffee shop. A concept that is unique and a strategy that can separate the its
competitors. Since the café has their loyal based customers which are the students of NWU
and its faculties, we came up to an idea which is to establish a membership fee for those
interested students and faculties. Hotel and Restaurant Management (HRM) students will be
the key of success for the coffee shop.
Product Strategy
The café will launch new products through social media and offer its customers the
best tasting coffee beverages in the area. This will be achieved by using high quality
ingredients and strictly following preparation guidelines. The store layout, menu listings and
7
marketing activities will be focused on maximizing the sales or higher margin espresso
drinks. Along with the espresso drinks, brewed coffee and teas, as well as some refreshment
beverages, will be sold in the coffee shop. Coffee Mate Coffee shop will also offer its clients
pastries, small salads and sandwiches.
Pricing Strategy
The café will have its products at a very low price consistently to maintain the
loyalty of our customers pricing will be in a medium basis, meaning it is between a lower
and higher price. It will be offer at a reasonable price especially to the customers. Coffee
mate, primarily utilizes coupons and discounts because we believe that the most valuable
customers demographic of daily coffee consumers is not influenced by discount programs or
coupon. Compared to our competitors Coffee Mate comparably priced. By offering a wide
selection of both regular and gourmet coffee, we believe that coffee mate’s prices can appeal
to even the most price sensitive consumers.
Customer Service Strategy
Tie up with the university as a marketing tool to promote new HRM enrollee in the
future. Many services are involving both actions of employees and customers, which is
essentially showed in the case of Coffee Shop. Strategically, service personnel are important
source of product differentiation. It is often challenging for café to differentiate itself from
similar business in benefit bundles it offers or delivery system. Coffee Mate recognized this
problem. The strategies of Coffee Mate are offering customers with the friendly service. For
instance, Coffee Mate treat their employees as their partner rather than employees. They
8
provide their partner with three months training, which educate them with the basic
knowledge of Coffee Mate services skills and culture. The promotion training is also offered
for staff self-development. The management will record the names of their customers,
personalized their service and offer the service individually.
In Coffee Mate case, customers have to stay in the actual process of production in
order to receive service, so their behavior and their reaction for the service encounter will
play important role. The nature of these interactions strongly influences the customer’s
perception of service quality.
Process strategy
Process refers to the procedures or processes that are developed to ensure the
customer has a positive and memorable experience. When marketing products:
 Products are manufactured or purchased on time.
 Products deliver the required quality and performance levels.
 Sufficient stock is on hand to meet customer demand.
 Products reach the customer in a timely manner.
 Products reach the customers in good condition.
 The paperwork is accurate and timely.
When marketing services:
 Staff and trainees are available to perform the service when and where
required.
 Staff and trainees provide the service to the required performance level.
 Sufficient staff and trainees are available to perform the service.
9
E. TARGET MARKET
With very limited when it comes to market because it is located inside the
University, which means that the possible numbers of market of the cafe will depend on the
enrollment population of Northwestern University. However, it is somewhat a good location
because competitors are also limited and there is a very high profit margin due to low
overhead expenses. Employees and undergrads are potential target since they are the most
active market in coffee, therefore target the following markets:

Students

Academic Faculties

Other employees

Visitors
Market Segmentation
Coffee Mate Cafe will focus its marketing activities on reaching the University
student, faculty, and staffs, people working in offices located close to the coffee shop and on
sophisticated teenagers. Our market research shows that these are the customers group hat are
the most likely to buy gourmet coffee products. Since gourmet coffee consumption is
universal across different income, categories and mostly depends on the level of higher
education, proximity to the Northwestern University campus will provide access to the
targeted customers audience.
F. COMMENCEMENT DATE
The café will be ready on the month of June 2016 for operation and but still the
10
decision lies on the University Administrations.
G. BUSINESS STRUCTURE
Coffee mate cafe is owned by the Northwestern University administrations therefore,
it is registered as a corporation wherein they are equally sharing their resources and effort in
building the business and managed by the project proponents and by the Hotel and
Restaurant Management (HRM) students as part of their laboratory to be integrated with
their curriculum in Food and Beverage Services (F&B) and Bartending Services as
on-the-job training and barista to cater the needs and wants of the customers into maximum
efficiency. It can also be used as an assessment center in the future for Bartending NC IV
(BARISTA).
H. ORGANIZATIONAL CHART
Ferdinand S. Nicolas
UNIVERSITY PRESIDENT
Maria Liza S. Nicolas
VP for Administration
Roseli T. Aurelio
VP for Academic Affairs
Josephine G. Bolusan
VP for Finance
College of Business Education
COFFEE
MATE CAFE
Hotel and Restaurant Management
Manager
Custodial
Custodial
11
I. QUALIFICATIONS
MANAGER

Must be a graduate of Hotel and Restaurant Management with working
experience of at least 2 years in managing service

Trainings and certificate of Barista or TESDA NC4 Barista

Excellent customer and training service skills

Good communication skills

Must have a strong planning and organizational skills

Must be flexible

Must have the ability to cope under pressure

Good accounting skills
CUSTODIANS

At least high school graduate with at least 5 months of working experience in
restaurant industry

Must be flexible and have initiative

Good communication skills

Must have a training in barista and bartending

Must be alert and active

NC holder for bartending and barista
12
CHAPTER III
A. DESCRIPTION OF BUSINESS ACTIVITY
Coffee Shop serves coffees, teas, milk and snack, and aside from the laboratory
aspect of the café, the venue can also be used to hold small functions, meeting and seminar.
Small, local coffee shop can establish a solid reputation in their communities, attracting
large volumes of highly loyal, sometimes daily patrons. Marketing a coffee shop requires
more subtlety than other business, however, as these establishment is s noncommercial
establishment and serve as a training area for hotel and restaurant student which can
providers a highly social experience greatly reliant on word of mouth advertising and
personal invitations existing customers. Coffee Mate Cafe utilizes a focus strategy on its
market. By specifically primary segments they can cater specifically to their need
Our target market are all people that they want to eat or to buy our products whether
dine in
or take out in our business establishment, especially to the students and employees
of the Northwestern University. Whenever you are single, have partners or have friends are
always welcome to eat and enjoy the snacks and pastries that they want to order.
Coffee Mate Café target market includes professional and working class citizens
who will appreciate affordable, good quality coffee on their way to work. Such Customers
vary age, although our location is inside the University Campus means that most of our
clientele will be college students and faculty. Our market research shows that these are
discerning customers that gravitate toward better tasting coffee. Furthermore, a lot of
college students considers coffee bars to be a convenient studying or meeting location,
where they can read or meet with peers without the necessity to pay cover charges. For us,
13
this will provide a unique possibility for building a loyal client base
The operation flow will follow the ISO process of the university, and as part of the
university, profit sharing will adopted as 20% HRM funds and 80% for the university as the
financer. All request should be approved by the VPA and the president of the university and
all financial matters should be addressed to the VP finance to be approved by the president.
All income will be remitted at the finance and it’s the responsibility of the manager to record
all transactions and balancing the accounts. Only daily the operating expenses or petty cash
will be endorsed to the manager. Construction, repairs and renovations will be placed in
charged by the PPDO while hiring of qualified employee should be the responsibility of the
IPODD.
Placement of students as OJT is the responsibility OJT coordinator and will render
at least 50hr in the Café for training. This should be done upon within the 2nd week of the
Semester to plot the students until the last week in school. Instructors of Bartending, Bread
and pastry, food and beverage can also have their simulation within the premises. And as a
business venture that aims to attract customers who loves coffee. It is a coffee shop which
offers excellent quality of espresso-based coffee and pastries. It also offers good dining
experience managed by the project proponents and owned by the University Administrators.
A. PRODUCT AND SERVICES
Coffee Mate Cafe offers hot and cold coffee, tea and snacks for the client and it will
be served to them by employees with respect to the customers at their satisfaction. Espresso,
brewed coffee coffees with such varieties such as mocha, candy bar, latte and brewed coffee.
Complementing the coffee will be a smoothie line including wild berry, peach, strawberry
14
and lemonade. Rounding out the simple menu line will be pastries. The offering may vary
with season ability but the primary line will muffins, bread, cookies, scones and rolls. We are
offering at a cheaper price.
PRODUCT DESCRIPTION
Quality of a product service is determined by the customer’s perception of the
degree and excellence of its characteristics. Quality is the key issue of the relationship
marketing which heavily influences the customer’s satisfaction. Most customers thinks that
coffee mate coffee shop offers the same service and products quality as other coffee shop do.
MENU DESCRIPTION
The names of the products are will be based on the standard recipe of the different
types of coffee so that the customers will not be confused and as part of education the public
of the types of coffee concoctions. Pastries and other products will supplied by the suppliers
of university. Some products are also produced by HRM from their laboratory in bread and
pastries.
Espresso a short black coffee topped with natural crema (the
Holy Grail of espresso) poured to a length of 30ml and not
filling the cup.
Strong Espresso a double shot of coffee.
Short Black an espresso run longer until the cup is nearly full. Should have a dark layer of
cream.
15
Macchiato meaning stained or spotted (i.e. with milk). A serving of espresso stained with a
teaspoon of milk.
Cappuccino a full-bodied intense espresso topped with two kinds of
heated milk, steamed and frothed. Steamed milk is milk that has been
scalded –its volume is unchanged. Foamed milk is both heated and
aerated. The classic proportions are one-third espresso, one-third steamed
milk and one-third foamed milk.
Café Latte made with espresso and four parts steamed milk with no foam on top.
Vienna Coffee cup is filled two-thirds with espresso coffee and topped with whipped cream.
Mocha a cappuccino with chocolate mixed in by whipping with steam
Frappuccino is a trademark for a line of frozen coffee beverages sold by Starbucks. It
consists of coffee or other base ingredient (e.g., strawberries and cream), blended with ice
and other various ingredients, usually topped with whipped cream.
Milk tea refers to any form of beverage found in many cultures, containing some
combination of tea and milk.
MENU PRICING
Espresso
55 pesos
Café Latte
75 pesos
Strong Espresso
60 pesos
Vienna Coffee
55 pesos
Short Black
55 pesos
Frappuccino
70 pesos
Cappuccino
60 pesos
Mocha
65 pesos
Macchiato
55 pesos
Milk tea
65 pesos
16
CHAPTER IV
FINANCIAL ANALYSIS
A. Recipe Costing
Espresso
INGRIDIENTS
AMOUNT
TOTAL COST
Shot espresso coffee
1shot
3.00
Water
1 cup
0.30
3.30/serving
Yield: 1 serving
Computation:
3.30*400
100 = 13.2
Desired Food Cost of 400%
= 13.2
Selling Price
= 55.00 (52.8)
Cappuccino
INGRIDIENTS
AMOUNT
TOTAL COST
Shot espresso coffee
1shot
3.00
Steamed milk
½ cup
7.50
Milk foam
½ cup
3.75
14.25/serving
Yield: 1 serving
Computation:
14.25*400
100 = 57
Desired Food Cost of 400%
= 57
Selling Price
= 60.00
17
Short Black
INGRIDIENTS
AMOUNT
TOTAL COST
Shot espresso coffee
1shot
3.00
Water
1 cup
0.30
3.30
Yield: 1 servings
Computation:
3.30*400
100 = 13.2
Desired Food Cost of 400%
= 13.2
Selling Price
= 55.00 (52.8)
Mocha
INGRIDIENTS
AMOUNT
TOTAL COST
Milk
1 cups
15.00
Cocoa
1 tablespoons
0.68
Brown Sugar
1 tablespoons
0.70
Ground Coffee
½ tablespoon
0.59
Vanilla Extract
½ teaspoon
0.14
17.11/serving
Yield: 1 servings
Computation:
17.11*400
100 = 59.86
Desired Food Cost of 400%
= 59.86
Selling Price
= 65.00
18
Macchiato
INGRIDIENTS
AMOUNT
TOTAL COST
espresso
1 jigger
3.00
chocolate milk
1/3 cup
5.00
syrup
2 tablespoons
1.43
sugar
1 tablespoon
0.55
vanilla extract
1/4 teaspoon
0.07
10.05
Yield: 2 servings
Computation:
5.03*350
100 = 20.12
8.86/2 servings = 5.03/serving
Desired Food Cost of 350%
= 20.12
Selling Price
= 55
Cafe Latte
INGRIDIENTS
AMOUNT
TOTAL COST
Milk
1 1/4 cups
18.75
Flavored syrup
2 tablespoons
2.10
Espresso
1 (1.5 fluid ounce) jigger
3.00
23.35/serving
Yield: 1 serving
Computation:
23.35*300
100 = 70.05
Desired Food Cost of 400%
= 70.05
Selling Price
= 75.00
19
Frappuccino
INGRIDIENTS
AMOUNT
TOTAL COST
espresso
1 jigger
3.00
chocolate milk
1/3 cup
5.00
Flavored syrup
2 tablespoons
2.25
sugar
1 tablespoon
0.55
vanilla extract
1/4 teaspoon
0.07
ice cubes
3/4 cup
0.31
11.18
Yield: 2 servings 11.18/2 servings = 5.59/serving
Computation:
5.59*400
100 = 22.36
Desired Food Cost of 400%
= 22.36
Selling Price
= 70
Milk tea
INGRIDIENTS
AMOUNT
TOTAL COST
Tea
½ cup
8.00
Milk
½ cup
7.50
Flavored syrup
2 tablespoons
2.10
ice cubes
1 cup
0.41
18.01/serving
Yield: 1 serving
Computation:
18.01*350
100 = 63.04
20
Desired Food Cost of 350%
= 63.04
Selling Price
= 70
Vienna coffee
INGRIDIENTS
AMOUNT
TOTAL COST
Espresso
1 (1.5 fluid ounce) jigger
3.00
Whipped Cream
1 tablespoon
0.74
3.74/serving
Yield: 1 serving
Computation:
3.74*400
100 = 14.96
Desired Food Cost of 400%
= 14.96
Selling Price
= 55.00
B. Specification of Equipment
Here are following which is needed in the operation of the business. Cleaning and
maintaining of this equipment must be based on the lifespan of the item
Machineries and Equipment
Item
Quantity
Unit Price
Total Price
Espresso Coffee Maker
1
180,000.00
180,000.00
POS System
1
15,000.00
15,000.00
Blender
1
2,500.00
2,500.00
Television
1
4,500.00
4,500.00
Wi-Fi Router
1
1,500.00
1,500.00
TOTAL
203,900.00
21
Supplies per Week
Description
Quantity
Unit Price
Total Price
Thermal Paper
2
23.00
46.00
Tissue Paper
3 packs
15.00
45.00
Cleaning Towel
2
8.00
16.00
Sponge and scrub
1
6.00
6.00
Dishwashing Liquid
1 bottle
12.00
12.00
Glass Cleaner
1
70.00
70.00
TOTAL
195.00
Supplies per Month
Description
Quantity
Unit Price
Total Price
Thermal Paper
8
23.00
184.00
Tissue Paper
10 packs
15.00
150.00
Cleaning Towel
3
8.00
24.00
Sponge and scrub
2
6.00
12.00
Dishwashing Liquid
3 bottles
12.00
36.00
Glass Cleaner
2
70.00
140.00
TOTAL
546.00
Supplies per Year
Description
Quantity
Unit Price
Total Price
Thermal Paper
90
23.00
2070.00
22
Tissue Paper
110 packs
15.00
1650.00
Pot Holder
6
5.00
30.00
Cleaning Towel
9
8.00
72.00
Sponge and scrub
6
6.00
36.00
Dishwashing Liquid
30 bottles
12.00
360.00
Glass Cleaner
5
70.00
350.00
Spin mop
1
510.00
510.00
TOTAL
5,078.00
Inventories
Weekly
Monthly
Yearly
Descrip
Unit
Quantit
Total
Quant
Total
tion
Price
y
Price
ity
Price
Milk
63.00/L
2
126.00
16
1,008.00
160
10,080.00
Cocoa
309.00/
(2)
618.00
(5)
1,545.00
(50)
15,450.00
Powder
454g
454g
Brown
47.00/K
2
94.00
6
282.00
70
3,290.00
Vanilla
139.00/
1
139.00
2
278.00
10
1,390.00
Extract
bottles
bottle
White
55.00/K
3
454g
Qty
Total
Price
454g
Sugar
bottles
165.00
8
bottles
440.00
80
4,400.00
Sugar
23
Syrup
100.00/
2 bottle
(Chocol
bottles
each
Chocola
120.00/
3
360.00
10
1,200.00
50
6,000.00
te Bar
100g
Melon
100.00/K
2
200.00
8
800.00
48
4,800.00
Lime
120.00/K
2
240.00
8
960.00
48
5,760.00
Banana
30.00/K
2
60.00
8
240.00
48
1,440.00
Apple
65.00/K
2
130.00
8
520.00
48
3,120.00
Orange
65.00/K
2
130.00
8
520.00
48
3,120.00
Mango
100.00/K
2
200.00
8
800.00
48
4,800.00
Instant
260.00/
Coffee
200g
(2) 200g
520.00
(8)
2,080.00
(96)
24,960.00
200.00
4
400.00
bottles
48
4,800.00
bottles
ate,
Caramel
)
Granule
200g
200g
s
Strawbe
100.00/K
2
200.00
8
800.00
48
4,800.00
25.00/K
2
50.00
8
200.00
48
1,200.00
Plain
78.00/
(2) 350g
156.00
8
624.00
48
3,744.00
Yogurt
350g
rries
Waterm
elon
24
Peanut
75.00/65
Butter
5g
Honey
2,500/L
(1) 655g
75.00
(30)
225.00
655g
(35)
2,625.00
655g
1L
2,500
1L
2,500.00
2 gal
16,000.00
8000/gal
Papaya
20.00/K
2
40.00
8
160.00
48
960.00
Honey
100.00/K
1
100.00
3
300.00
30
3,000.00
Vanilla
95.00/
(1) 350
95.00
(3)
285.00
(35)
3,325.00
Yogurt
350g
g
Almond
780.00/K
1
780.00
2
1,560.00
20
15,600.00
Powdere
56.00/55
1
56.00
3
168.00
24
1,344.00
d Sugar
0g
Water
25.00/gal
3
75.00
15
375.00
36
900.00
Dew
Melon
350g
350g
s
=20L
Salt
10.00/K
1
10.00
1
10.00
8
80.00
Caramel
100.00/2
1
100.00
2
200.00
22
2,200.00
Sauce
83g
Creamer
67.50/30
2
135.00
7
472.50
75
5,062.50
1
360.00
2
720.00
20.00
7,200.00
0g
Chocola
360/gal
te Ice
25
Cream
Iced Tea
10.00/pac
15
150.00
60
600.00
600
6,000.00
305.00/K
2
610.00
4
1,220.00
48
14,640.00
20.00/K
4
80.00
16
320.00
192
3,840
25.00/1
1
25.00
1
25.00
10
250.00
k
Coffee
Bean
(Arabica
&
Robusta
)
Ice
Cubes
Straw
pack(100
pcs)
TOTAL
8,779.00
TOTAL
21,837.50
TOTAL
185,932.50
Kitchen Utensils
Description
Quantity
Unit Price
Total Price
Measuring Cups
1
35.00
35.00
Measuring Spoons
1
35.00
35.00
Measuring Glass
1
55.00
55.00
26
Weighing Scale
1
255.00
255.00
Spoon
15
15.00
225.00
Fork
15
15.00
225.00
Pastry Plates
15
20.00
300.00
Pitcher
3
65.00
195.00
Irish Coffee Glass
3 box (6 pcs)
150.00 (6 pcs/box)
450.00
Coffee Mugs
20
30.00
600.00
Hi ball Glass
2 box (6 pcs)
150.00 (6 pcs/box)
300.00
Glass (ordinary)
3 box (5pcs)
80.00 (5pcs/box)
240.00
Water Goblet
3 box (6 pcs)
80.00 (6 pcs/box)
240.00
TOTAL
3,155.00
Salary and Wages
The salaries are in minimum wage wherein the project proponents follow the
minimum rate as set by the DOLE.
Employee
Hour/
Day/
Salary/wages
No. of
Day/
Salary/wages
Position
day
week
daily (PHP)
Employ
mont
monthly
ees
h
(PHP)
Manager
8
7
350.00
1
30
10, 500.00
Custodial
8
6
253.00
2
24
12,144.00
856.00
3
TOTAL
22,644.00
27
Building Cost
Equipment
Price
Cements @ 120bags
Php25,200.00
Sand @ 12cum
Php1,560.00
Gravel @ 6cum
Php1,500.00
Back fill @ 38cum
Php4,940.00
Excavation @ 14cum
Php3,500.00
CHB Sand 4’’ @ 35pcs
Php1,750.00
PSB 10mm @ 80pcs
Php9,200.00
Tie wire @ 17kg
Php1,360.00
Tiles @ 700pcs
Php10,360.00
Tile Bounding @ 11bags
Php2,640.00
Colum Post 8’’x8’’@ 6 sets
Php9,000.00
Vertical stubs @ 560
Php33.600.00
Horizontal stubs @ 420
Php25,200.00
Hardiflex siding @ 31pcs
Php100.00
Discgride blade @ 2pcs
Php1,400.00
Circular Saw Blade @ 1pcs
Php2,000.00
Drill bits @ 5pcs
Php600.00
CWN @ 60kg
Php4,800.00
Cor g1 Sheet 4mm @ 30 LRT
Php1,800.00
Roof nail @ 2kgs
Php200.00
Gutter @ 1pcs
Php200.00
28
Flashing @ 3pcs
Php600.00
Blind riverts @ 100pcs
Php100.00
Drill bit (metal) @1pcs
Php70.00
Wood Framing @1lot
Php25,500.00
Wood Shingles 0.40mx0.40m @1294lot
Php19,410.00
Interior bar @1lot
Php10,000.00
Exterior bar @1lot
Php15,000.00
0.20mx0.20m wall tile @ 234pcs
Php11,700.00
0.20mx0.20m Unglazed floor @ 25pcs
Php1000.00
Cement mortar @ 1bag
Php250.00
White cement filter @5kgs
Php125.00
Rough-in @1lot
Php9,000.00
Fixture @ 1lot
Php8,000.00
Total
Php241,675
C. Commencement Capital
The financial cost will be provided by the University since it is owned and a part of
Northwestern University.
Since it is just a renovation, there will be minimal cost because
the Student lounge are is still in a good condition.
The initial capital of the will be Php 623,113.5
29
Total Project Cost
COST FACTORS
Construction Cost (Renovation)
 Interior design
 Exterior design
- Paving Bricks
- Tables and Chairs with
umbrella
- Others
AMOUNT
241,675.00
Pre operating Expenses
 Recipe testing
2,000.00
Equipment and Machineries
 Espresso Coffee Maker
 POS System
 Bakery Case Refrigerated
 Blender
 Television
 Wi-Fi Router
 Kitchen equipment
207,055.00
Startup Cost
 Supplies per month
 Inventories per month
22,383.50
TOTAL INVESTMENT COST
623,113.5
Projected Income Statement
For June 13-19, 2016 (per week)
Sales
6,500.00
Cost of Sales (15%)
975.00
Gross Profit
5,525.00
Less: Operating Expenses
Supplies
195.00
Net Profit
5,330.00
30
Projected Income Statement
For June-July, 2016 (per month)
Sales
27,500.00
Cost of Sales (15%)
4,125.00
Gross Profit
23,375.00
Less: Operating Expenses
Supplies
546.00
Net Profit
22,829.00
Projected Income Statement
For June-May, ‘16-17 (per year)
Sales
900,000.00
Cost of Sales (15%)
Gross Profit
135,000.00
765,000.00
less: Operating Expenses
Supplies
5,078.00
Net Profit
759,922.00
31
Income Statement forecast
Forecast Income Statement for Five (3) Years
2016
2017
2018
Sales
900,000.00
1,035,000.00
1,190,250.00
Costs of Sales 15%
135,000.00
155,250.00
178,537.50
Gross Profit
765,000.00
879,750.00
1,011,712.50
Supplies
5,078.00
5,585.80
6,423.67
Net Profit
759,922.00
880,914.20
1,005,288.83
Less: Operating
Expenses
Note: Increase in revenue for all the year is 15%.
Profit Sharing
University
HRM departement
30%
70%
Seventy percent (70%) of the profit will be for the University Administrators for the
maintenance of the café and for the operating and other expenses of the café as well as the café’s
indirect expenses (electricity, water bills, etc.) Thirty percent (30%) will be for the HRM
department and this will help them for their laboratory expenses and it will also serve as their
fund and it will use for academic purposes.
32
CHAPTER V
A.
Licenses and Registrations
The Coffee Mate Café is tied up with the business licenses and registrations of
Northwestern University.
B. Business Advisors
The Coffee Mate Café business advisors of Northwestern University.
Banker
JOSSIE BULUSAN
Vice President, Finance
Northwestern University
Lawyer
ATTY. ROBERT CAMARILLO
Assistant of the President
Northwestern University
Accountant
FEDINANAD QUIROGGA
Chief Accountant
Northwestern University
C. Industry Analysis
The Coffee Mate Café is located inside Northwestern University wherein the
project proponents renovated the University Hostel with its indirect competitor, the NWU
canteen in which they serve drinks and as well as foods. The Coffee Mate Café has its direct
competitor which is Bon Appetea that is located outside/in front of the school where in some
student’s loves to go through and the Stone House.
The three major competitors of the coffee shop is not a hindrance to the future
operational success because based on the survey that we’ve conducted 85% of the
33
respondents would like having a coffee shop inside the University and majority of them has
visited a coffee shop and they often go. The Coffee Mate Café has its market which is the
students especially young generations who loves coffee because they will be our walking
advertisers as well as the employees, graduates of the University and the possible visitors of
the University.
D. Key Success Factors
o Store design that will be both visually attractive to customers, and designed for
fast and efficient operations.
o Employee training to insure the best coffee preparation techniques
o Marketing strategies aimed to build a solid base of loyal customers, as well as
maximizing the sales of high margin products, such as espresso drinks.
o Provide the best products and easy to recall to every customers so that it’s their
trademark for them to go back again in our business.
o Staff. Hire employees with a work experience and have a strong background with
the position that they want to fill up if they are fit to their job satisfaction.
o Product. They must be original recipe or menu with no copying of different styles
to the other business establishment.
o Service. Serve your customers very well and treat them properly. Because
customers always right. Be humble to every customers.
o Maintaining a cost of goods on foods at below 50%.
o Excellent customer service.
34
o Attracting customers who find value in the Coffee Mate, Coffee Shops offering
and who will frequent the Shop regularly in order to meet like-minded single
people.
E. Competitive Environment/ Competitive Analysis
Among other establishments that offer coffee drinks to their customers are most
Coffee Mate’s limited and full service coffee shops. Coffee Mate’s direct competitors will be
other coffee shops located at University of Northwestern campus. A food service
establishments that offers coffee. Coffee Mate will definitely be one of the major competitors
because of its strong financial position and established marketing and operational practices.
However, despite of Coffee Mate’s entrenched market position, many customers favor
smaller, independent establishments that offer cozy atmosphere and good coffee affordable
prices. Coffee Mate Cafe is a good example of such competition. We estimate that Coffee
Mate’s hold approximately 35% market share in that neighborhood, Coffee Mate’s appeals 25%
of customer’s, with the remaining market shares split among other establishments. Coffee
Mate will position itself as a unique coffee shop that not only offers the best tasting coffee
and pastries but also provide home-like cozy and comfortable environment, which
established corporate establishment’s lack. We will cater to customer’s bodies and minds,
which will help us grow our market shares in this competitive market.
35
Competitors SWOT analysis
Indirect
Strength
Weakness
Opportunity
Threat
Well-known
Very expensive
Accessible location
Located near
prices of products
of our target markets
Northwestern
Competitors
Stone House
not for students
Bon Appetea
Well-known
University
Limited space for
Accessible location
Located near
customers
of our target markets
Northwestern
University
Joe
10’s Well-known
Too expensive food
Coffee
items
City Cup Café Well-known
No parking area
Location wise
Changing
market tastes
Along high way
Intense
competition
Tea
Well-known
Generation
Limited space for
customers
Near the church
Increasing
number of
competition
F. Market Segmentation
Geographic
Coffee Mate Cafe is located inside Northwestern University at the NWU hostel.
University hostel was renovated to have its multiple purposes. Northwestern University is a
nine-hectare lot. It is a suburban area located at Airport Avenue. They have a huge number
of enrollees and employees.
36
Demographic
The customers of the café are the Northwestern University students, employees,
graduates and possible visitors of the University. There will be no age limit because we will
not just be offering coffees and teas but we will be offering varieties of pastries and
smoothies.
Psychographic
The coffee shop is open and it suits all levels of the society from the high class
(white collar jobs/professionals), to average and down to below average depending on their
product choice and prices are in moderate range.
37
Behavioral
Coffee shops are very popular nowadays this is because it is already part of our
lives to drink coffee anytime of the day. Coffee gives extra relaxation to the customers and a
time to think coffee mate will provide the best products to the target market to promote brand
loyalty.
Marketing Research Findings
During the initial phases of the marketing plan development, several focus groups
were held to gain insight into a variety of likely customers. These focus groups provided
useful insight into the decision making process of these customers. An additional source of
dynamic market research is a feedback system based on a suggestion card system. The
suggestion card has several statements that patrons are asked to rate in term of given scale.
There are also several open ended questions that allow the customers to freely offer
constructive criticism or praise. The Coffee Mate will offer coffee beverages, teas, chocolate
drink, milk, and snack. Hard implementation of policy and reasonable suggestion will be
audited in order to improve their service offerings as well as show their committed to the
customers that their suggestion is valued.
38
CHAPTER VI
A.
DEFINITION OF TERMS
Espresso a short black coffee topped with natural crema (the Holy Grail of
espresso) poured to a length of 30ml and not filling the cup.
Strong Espresso a double shot of coffee.
Short Black an espresso run longer until the cup is nearly full. Should have a dark
layer of cream.
Macchiato meaning stained or spotted (i.e. with milk). A serving of espresso
stained with a teaspoon of milk.
Cappuccino a full-bodied intense espresso topped with two kinds of heated milk,
steamed and frothed. Steamed milk is milk that has been scalded –its volume is unchanged.
Foamed milk is both heated and aerated. The classic proportions are one-third espresso,
one-third steamed milk and one-third foamed milk.
Café Latte made with espresso and four parts steamed milk with no foam on top.
Vienna Coffee cup is filled two-thirds with espresso coffee and topped with
whipped cream.
Mocha a cappuccino with chocolate mixed in by whipping with steam
Frappuccino is a trademark for a line of frozen coffee beverages sold by Starbucks.
It consists of coffee or other base ingredient (e.g., strawberries and cream), blended with ice
and other various ingredients, usually topped with whipped cream.
Milk tea refers to any form of beverage found in many cultures, containing some
combination of tea and milk.
39
B. PANELISTS
APPROVAL SHEET
This feasibility study entitled, “UNIVERSITEA,” prepared and submitted
by_________________________________________________________________________
___________________________________________________________________________
______________, in partial fulfillment of the requirements for the degree, BACHELOR OF
SCIENCE IN HOTEL AND RESTAURANT MANAGEMENT is recommended for
acceptance and approval for ORAL EXAMINATION.
MR. NEMESIS JERICOl. DE CASTRO
Adviser
ORAL EXAMINATION TRIBUNAL
Approved by the oral examination tribunal with a grade of ____% on the __th day of
___________2015.
Mr.Christopher Ching G. Viloria
Mr. Marco Paolo M. Dela Cruz
Accepted and approved in partial fulfillment of the requirements for the degree,
Bachelor of Science in Hotel and Restaurant Management.
Dr. Elmer M. Dela Cruz
Dean, College of Business Education
40
CHAPTER VII
A. FLOORPLAN LAYOUT
41
B.
PERSPECTIVE VIEW
42
CHAPTER VIII
A. CURRICULUM VITAE
43