BUSINESS PLAN

CAFEIT COMPANY

ELIAS ANGELES, COR ARANA STREET

NAGA CITY, CAMARINES SUR

[email protected]

OWNED BY:

SHANE BAGAPORO

JOHN NIÑO REALDA

RIZALINE PERALTA

LEIZIL SALCEDO

JONH REY AREVALO

 INTRODUCTION

Description of the Business

Cafeit Business is a privately owned corporation made up of five persons. It is a business that
makes provision for both hot and cold coffee depending on the customer’s preference. It is a
small business with a new system wherein there’s no concrete coffee shop but instead, a café put
in a trike. Coffee on wheels business will be quiet an advantage in today’s demand. Indeed, that
due to this pandemic, many businesses, restaurants, and even coffee shops were affected, health
protocols such as social distancing, usage of face masks and face shields have been required to
everyone. Thus, Cafeit business aims to still serve customers with our product with a 50%
guarantee of less contact and infection because of the open area we have unlike a close and
unventilated shops. Proper sanitation and cleanliness of the equipment’s, utensils and PPE’s must
be expected. Moreover, why we named our business cafeit is also because of the current situation
we are facing. CAFEIT derives from the two word “kapit” which means to hold on and “faith”
which means a strong belief. It aims to remind everyone of us that despite this crisis, we must
still hold on to our faiths, and never lose hope. And as our customers drink our product, our
ultimate goal is for them to taste the coffee that’s bundled with faith. As they have smelled the
aroma of our coffee, may it give them a nostalgia which bring back the good old days. We also
come up with an innovative idea of a personalized cup with a note as an encouragement for the
day (e.g., verses, quotes). Cafeit Business also offers delivery or pick up by sending an order
form via messaging our official Facebook page or sending as an email.

Location of the Business

The proposed business location will be in Elias Angeles Cor Arana Street. This business does not
require a storefront or shop. Practically speaking, the requirement for starting a mobile coffee
cart business is much lower than a traditional coffee shop. Our Cafeit trike will be located on
high traffic commuter routes and close to shopping facilities in order to catch customers going to
or from work, while they are out for lunch, or on a shopping expedition. The business will
operate from Monday through Saturday. Our targeted customers would be the daily Commuters
that goes to and from work, customers that deliver goods and services, customers that go for
shopping, church goers because the place is near San Francisco church, and those that are just
out for a drive or a walk. Sources of raw materials, labor and utilities are also within the vicinity
thus brings more convenience for us. Availability of transportation wouldn’t be a problem too,
waiting areas and terminals for designated routes are present just within the vicinity. Also,
presence of direct competitors isn’t risky for our business, nearest café beside ours is 0.2 km
away from our main area and others are 0.4km away.

Funding Requirement and Source of Funds

The initial investment in our coffee cart can be found for around P240,000.00 and a fully loaded
cart can reach up to P660,000.00 which is too expansive for us as a normal senior high school
students and we cannot totally afford this kind of money actually. So, we decided to create our
own cheapest cart but with high quality equipment used. Through this idea, we can spend an
initial capital for around P15,000.00 – P25,000.00. The estimated cost for the materials needed in
our coffee business reach for around P20,000 – P30,000. So, the estimated money that our
business needed reached for up to P55,000.00. To get this amount for our coffee business, we
had a fund-raising activity like selling our pre – loved shirts and other things or items that we
didn’t use anymore. We will also invest our money in the bank so that we can get more interest
once we withdrawn our money. To get an additional fund, we will get from our own money once
it is still not reaching our target money or fund
 EXECUTIVE SUMMARY

Vision, Mission, Goals and Objectives

Cafeit Business visualizes to be the leading café on cart and food service products around Bicol
Region by offering the guiding principles of integrity, quality, service and relationship. Branches
from different provinces in Bicol will be available and will eventually bring pride to its main
branch in Naga City. The Business aims to provide the best taste of coffee with such a reasonable
price that’s been patronized by all citizens. Our main goal is to achieve healthy and good profits
in the early years of the business’ operation and Cafeit’s objective is to establish a business that
goes beyond the expectations of each and every customer.

BUSINESS MODEL
Business Model

Partner Network Key Activities Value Proposition Customer Customer

Relationship Segment
 Social  Production  Free delivery fee
Media  Marketing  Convenient  Personal  Demographi
 Supplier  Staying on top  Eco- friendly cup Assistance c
 Coffee of Marketing  Good quality  Monthly Segmentatio
lover trends coffee-bean promos n
(consume  Improving the  Easy-payment  Office
rs) website  Got it done in workers
 Market less time  Commuters/
Research  Saves money, Drivers
 Improving time and effort  Morning
Sales process persons
 Proper  Regular By
communicatio passers
n with clients
Key Resources Distribution
 Channels
 Delivery
scooter  Social
 New Media
equipment  Official
 Cash (owner’s business
assets) page and
 Innovative Gmail
mind
 Raw materials
Cost Structure Revenue Statements

 Coffee cart preparation costs  Sales

 Cost of raw materials  Fees earned

Business and Product Position

Cafeit Shop is a small business meant for coffee lovers. If a customer is looking for a place
where you can relax, chill and at the same time, wants to take in caffeine in their system, then
this shop is definitely what the customer is looking for. It aims to provide affordable yet
delicious and satisfying coffee menus for the consumer. Moreover, we also provide free delivery
services for those who're busy and too lazy to have make their way to the branch. All that the
customer needs to do is to send a message to Cafeit’s official Facebook page and Gmail, choose
and check out the desired coffee and wait until the product is delivered. Fast and no hassle.
Having the strategy of making an Fb page for our business will definitely mark to our dearest
customers. To that, they can visit our page and just tap away and order the coffee they want. It is
very convenient as the customers can just sit to their house and wait for the rider to come. This
kind of business product positioning will happen to encourage clients to buy.

Wealth Improvement Approaches

This time of pandemic, all businesses were indeed affected. Everyone was at stake on how
they’ll manage to have daily income that’s why we come up to a decision that we are going to
build and run a simple coffee business. But due to the health protocols implemented by the
government, our costumers are not going to our shop to buy our product that’s why instead of
building a coffee shop we decided to run a coffee cart. Since we are still in the middle of
pandemic, many restrictions have been given but for us to still maintain our position in the
market, we decided to have an online form of ordering via our official Facebook page and Gmail.
Online selling is indeed quiet all over the social media, it became an alternative way in this new
normal. With this, we can still serve our valued customers by offering free delivery within Naga
city as they place their order. Through this, we maintain a competitive advantage and economic
performance of our business.

Parties Supporting the Business

There will be several parties, both individual and groups that would help support our business,
further parties that’ll support our business are as follows:

Customer Loyal- customers provide positive endorsements and good online reviews that can help
businesses strengthen their brand. A loyal customer, on average, is 10 times more valuable than
their first purchase. Nearly 70% of people would spend more money with a company that has
excellent customer service.

Supplier- Suppliers provide the materials in our small business used to produce our own goods
and/or services. Suppliers provide their transportation of those materials.

Staff (Owners) – We, the owners of the business will be the staffs and the one’s who’ll manage
everything even the production. We’ll be the ones to make sales and build the brand via positive
customer interactions.
 ENVIRONMENTAL ANALYSIS

Trend in the Industry

In the whole European countries, the trend in the global market for cafes are highly in demand.
According to research, Europe is said to be the largest coffee market in the world accounting for
34% of global consumption. Asia and Oceania rank second with market share of 22% followed
by Latin America and North America, both with a market share of 19%. Currently, millennials
are the largest living generation worldwide. For most millennials, drinking coffee is a lifestyle
choice rather than a mandatory need to jumpstart a hectic day. With this, we come up to a new
business ideas and own marketing gimmicks that the global business trend offers such as
Investing unique and visually attractive packaging, making sure it’s social media worthy or
instagrammable, Experiment with new ordering and delivery systems, the simpler the better, and
Connect with our customers by letting them know the story behind every cup of coffee by
posting it on different social media platforms using our official business page. Another emerging
coffee industry trend is the Ready- to- drink coffee. Nowadays, people want things quick and
easy, including their coffee. With this rising trend of ready-to-drink coffees, it creates new
opportunities for our small business in the market to capitalize on this newest coffee
consumption mania. We can offer a bottled coffees which is convenient and easy to bring along
with them wherever they'll go. On the economic view, The Ph Coffee Board Inc. (PCBI) recently
announced the rising consumption on coffee of Filipinos in all forms. Therefore, this kind of
business would really fit in our industry and to all the consumer’s demand. With coffee, its high
demand and profitability would really make it a smart investment.

Consumer Analysis

Plaza Quince Martires is highly regarded by the people of Naga or the Naguenos. It’s where
people mostly go or spend their day with, especially teenagers who somehow made this area
their meeting place. With the demographic segmentation we used to distinguish possible
customers, we’ve been able to target the customers depending on the age bracket. Based on
statistics, most of coffee drinkers ranges from age 18-24 years old and people aged 60 and older.
But in today’s demand, what we so called millennials are always up to trend that even visiting
cafe’s become hit. With this, we’ve come up to target teenagers for they are the ones who come
to quince martires most of the time. Office workers, jeepney and tricycle drivers, commuters,
morning persons, or even regular by passers are also being targeted as our main consumers. As
we discovered their needs and pain points, this eventually gives us the opportunity to supply
them their needs. It was truly quiet challenging for all the targeted consumers to face up a hectic
day ahead of them, thus our coffee would serve as their jumpstart.

Competitor Analysis

WHITE BEAN RELICS CAFE RAFABEL’S CAFEIT

CAFE

STRENGTHS They offer online Customers can Customers can Customers can
selling with assure of what take out their take out our
partnership of they buying order. product.
Food Panda. because they can The price was Our price was
The price was see it. affordable. affordable
affordable. The price was The location they because it’s
The location they affordable. choose was a Pandemic.
choose was a Location of the crowded. Has a story
crowded. business isn’t The decoration behind the
The building was crowded because of the building business name
great especially it is in the second was awesome and historical
in designs. floor. and attractive. theme.
The decoration is
good because it
made of
antiques.
WEAKNESS When ordering It doesn’t It doesn’t Limited sales
online, support online support online area coverage.
customers can’t selling. selling. No company
assure that the Limited social Limited market app,
coffee they order media access. share. Strong existing
is in proper Weak financial Weak bargaining competitors and
decoration on reserves. power with the no physical shop.
what they see supplier.
online.
LOCATION Naga Land 2nd Floor Dabu Villa Caceres Elias Angeles
Hotel, Elias Building, Elias Hotel, Street., corner
Angeles, Angeles Street, Magsaysay Ave, Arana Street,
 Barangay Santa Naga City, 4400 Naga City Naga City, 4400
Cruz, Naga, Camarines Sur Camarines Sur Camarines Sur
4400 Camarines
Sur
OPENING 7:00 A.M – 10:00 A.M – 9:00 A.M – 6:00 A.M –
HOUR 10:00 P.M 10:00 P.M 11:00 P.M 10:00 P.M

TARGET Online The target The target We target walk

CUSTOMER Customers and customer of customer of the through
walk-through Relics Cafe is Rafabel’s Cafe is customers and
Customer that only walk- only walk- online
loves coffee. through through customers.
customers. customers.

Market Forecast

Cafeit's Market Forecast

120,000

100,000

80,000

60,000

40,000

20,000

0
2022 2023 2024 2025 2026

Sales Advertising Baked Goods Coffee Net profit

Market Share
 11%

7%

Starbucks
42%
8% Dunkin Donuts
Einstein
Tim Hortons
Pronto
Others
9%

23%

Market Position

Cafeit is just a regular coffee cart where anyone can be accommodated. Our edge among other
café is our cart itself and the story behind our business name with a historical theme. Moreover,
our advantage is that we are new in the industry of cafes thus creates a fresh impression toward
customers especially millennials. We also come up to a gimmick wherein we’ll put in papers and
let the buyers write what they want. It can be random thought, today’s mood or a quote and
verses. And those papers were to be pasted in the café’s cart. The concept of this plan will give
enjoyment to our customers as they share their thoughts to others who can read it. Customers
will be excited for this amazing idea and will mark our business' brand.

Marketing Strategy

Nowadays, people are attracted to discounts and promos that’s why we use this to let our
costumers patronize our product. We will post our café’s events and sales to our social media
platforms while maintaining an active and more conversational presence. We will also give a
10% discount for our first five (5) beloved costumers that will buy our product. Aside from these
promos, we will also give a reward to our loyal customers. We will give them a coupon that they
will use to have a 5% discount every time they buy our coffee. We will also have a monthly
celebration wherein we will give a buy 1 take 1 promo with freebies to our valued and beloved
costumers and also to attract more buyers.

BUSINESS DESCRIPTION
Product Description

The Coffee Warehouse will carry a variety of quality products that will enable us to provide full-
service delivery to espresso stands and coffee houses. Our underlying philosophy in selecting
products is to choose lines that will bring consistent quality, competitive prices yet worthy, and
product satisfaction to our customers. We have personally researched and sampled each of the
following products that we offer to ensure the quality we guarantee.

 Whole Bean and White Coffee

 Assorted Gourmet Syrups & Coffee Toppings
 Chocolate, White Chocolate and Caramel Syrups/Sauces
 Whole milk
 Good Cow Concentrated Milk with Custom Dispensing Equipment
 Fresh Baked Goods
 Assortment of White, Pre-printed Paper, and Clear Beverage Cups Systems – as well as
an assortment of other paper supplies

At this time, the majority of these products are only available to customers through wholesale
vendors such as Cash and Carry retail outlets. Therefore, it is the customer’s responsibility to
acquire these products by their own means. The Coffee Warehouse will make these same
products available through our high-quality, full-service delivery bringing these products directly
to their doorstep at a competitive price.

Equipment/Materials Needed

The equipment and materials needed in our coffee business are Espresso Machine, Espresso
grinder, regular coffee grinder, coffee brewers, decanter, airpots, satellite server, frothing
pitchers, measuring cups and spoons, coffee mugs, paper hot cups and lid, custom coffee sleeves,
straw and stirrers, napkin, coffee filter and take-out cup carrier.

Size of the Business

 5 or less -micro business

 6-20- Small business
 21-40-macro business

Our coffee shop has 5 employees or staffs so our coffee shop is small business. Our coffee shop
is not like other large coffee shops or a cafe that can serve even more. It is more vulnerable to
those in a hurry especially those who work, study and so on. But even though our coffee shop is
small, it can serve an estimated maximum of 150 to 200 people per day.
Personnel Requirements

The Cafeit business is a micro business wherein the owners are the staff themselves and be the
ones to manage the entire production and over all process in the business. Hiring staffs or other
employees aren’t necessary in our business. This only means that we the owners will be the ones
to manage, perform the business activities that includes coffee making and others. By means of
training and researching on how to create a coffee, we will be knowledgeable on how to carry the
business only by ourselves. The day-to-day operation will be something to be done by unifying
ourselves, the owners slash the crews, coffee makers, managers and etc. Hiring staffs are no
longer to acquire as we the owners will also be the workers at the same time.
ENTREPRENEURSHIP

MODULE 1
Introduction to Business
Plan Preparation

Submitted by:

Shane B. Bagaporo
John Niño J. Realda
Leizil A. Salcedo
Rizaline P. Peralta
Jonh Rey G. Arevalo

(12-HUMSS)
Mr. Erwin Dy

(Teacher)
ENTREPRENEURSHIP

MODULE 2
Executive Summary, Environment Analysis,
and Business Description

Submitted by:

Shane B. Bagaporo
John Niño J. Realda
Leizil A. Salcedo
Rizaline P. Peralta
Jonh Rey G. Arevalo

(12-HUMSS)
Mr. Erwin Dy

(Teacher)