The Spot Coffee Shop

Sumulong highway, Brgy Sta. Cruz, Antipolo City

PALOMO, ERA MAY A.

[email protected]

09166960121
Executive Summary

Objectives:

The Business objectives are to have a substantial income and to create a market and work

atmosphere in which integrity and fairness are viewed by both consumers and employees.

Unique Selling Point:

Providing a good taste and affordable price of coffee at your choice.

Many consumers have high interest in the coffee house industry in the country. The Spot

Coffee shop is positioned to bring great taste coffee to the country. It will provide a friendly,

comfortable atmosphere and home like aura where the consumers can experience quality of

coffee, food, service and entertainment at a reasonable price. The coffee shop will offer a variety

of choices to the consumers. Variety of Coffee and tea will be offered. The Spot Coffee shop will

be open from 5am to 11pm.

The building's interior design will concentrate on creating a relaxed environment. The

Spot Coffee shop will have tables and chairs, book shelves full of books and magazines. A sound

system will be installed so that the music and entertainment can be heard throughout.

The Sole Proprietorship will be operated by The Spot Coffee shop. The Spot Coffee shop

will be needed 2,000,000 pesos as a capital

 The ability to change with the times is a strength this company will possess. Instead of

limiting future possibilities by having a small area, The Spot Coffee shop will have 50 sqm of

space.

The owner's responsibility will be general management. The owner should have 5 years

experiences to the venture and restaurant management. The general manager will have a

minimum experience of 5 years. Hiring socially vulnerable would be a big priority of The Spot

Coffee shop.

Description of the Business

The Spot Coffee shop will be a coffee house located in Sumulong Highway, Antipolo.

The interior design of the building will focus on projecting a relaxed atmosphere. The carpeting

will be nude aura. The table and chairs will be custom made from light wood. The chair will be

painted nude with padded for comfort. Plants will abound in white pots. The dishes and eating

utensils will be in the minimalist style and the coffee cups will be eco- friendly. The emphasis

will be on providing a comfortable environment for the customer where they will want to linger

and return many times.

Description of the product or service

The Spot Coffee shop will offer a variety of choices to the customers. The choices of coffee will

range from espresso to latte, from regular flavor to raspberry-mocha.

 Nightly entertainment will be held showcasing acoustic swing, blues and folk music. There will

be poetry readings and an open microphone on selected nights.

Market Strategies

 Definition of the market

The customer will be between 18 to 50 years old. They will live within three miles of The

Spot Coffee shop. The education level will range from some college to post-graduate work. A

majority of the customers will be persons who enjoy a relaxing atmosphere and conversation.

 Determination of market share

Based on the customer profile for The Spot Coffee shop the following numbers were

compiled. To determine market share of The Spot Coffee shop, a three-mile radius was used. The

National statistics shows that most persons do not travel more than three miles to eat or to listen

to entertainment. The report shows that 162,908 persons live in the three mile radius. The

following is the breakdown of target customers.

Age Percent % of Population

21-24 6.26%
25-29 7.97%
30-34 8.15%
35-39 8.03%
4049 16.67%
Total 47.08%
 Education % of Population
Some college 28.76%
Associate degree 9.09%
Bachelor degree 13.39%
Graduate degree 5.54%
Total 56.78%

Occupation % of Population
Executive 12.96%
Prof/Specialty 13.16%
Technical Support 4.67%
Administrative Support 20.12%
Total 50.91%

Formula for Market Share

The formula takes the total population and then multiplies that number by the percentages

in order of importance to the Target Customer.

Total Population × Age% × Income% × Education% × Occupation% = Total Market

162,908×47.08%×55.90%×56.78%×50.91% = 12,393 persons

Market Share for Coffee Circus

2.2% of Market=276 Customer/Day or 17 Customer/Hour

1.8% of Market=230 Customer/Day or 14 Customer/Hour

1.6% of Market=202 Customer/Day or 12 Customer/Hour

Positioning Strategy

The Spot Coffee shop will position itself as a local coffeehouse providing a sanctuary for those in

the ‘burbs’ without the hassle of having to drive too far.

Pricing Strategy
The price of the food will be moderate and comparable to that of other coffee houses in the area.

The cost would be measured not only by what the current average in the area is, but also by the proportion

of the real cost of the coffee and food. Not only would the price be competitive, but the coffee and food

will be delicious, well prepared, and big servings will be served in a relaxing setting where the consumer

will be relaxed. The image projected by the pricing would be that the consumer can get a good value for

their money; that at The Spot Coffee shop they don't have to be affluent to drink coffee and eat and

everyone can afford to come in.

Distribution Strategy

Food servers will distribute the product in the coffee shop. If a consumer enters The Spot Coffee

shop, a waitress who seats them and supplies them with menus will welcome them. They will be greeted

by a waiter. The server will ask you what they want to drink. The server will deliver the drinks.

Cleanliness is required above all else. The servers will keep all of their work areas clean at all times.

Spills must be cleaned immediately.

Promotion Strategy
 There will be a series of avenues for advertisement and promotion like social media, other

internet platform and leaflets will be posted. In all public places advertising will be taken out. With a part

of the proceeds going to the organizations, special activities can be encouraged.

Analysis of the competition

Café Sinauna

SWOT Analysis

 Strength

1. High Service Culture

2. Quick & Motivated Staff

3. Customer-focused strategy

 Weaknesses

1. Less Market Data

2. Manual System

3. Difficult to Estimate Capital & Profit

 Opportunities

1. Developing a Direct Relationship with Customers

2. Better Customer Experience

3. Advertisement to Build Brand Awareness

 Threats

1. Difficult to Maintain Cash Flow

2. Low Profit Margin

3. The Low Price of Competitors

The Spot Coffee shop

SWOT Analysis

 Strength

1. The coffee shop will offer a variety of products in addition to the

hot cup of coffee which will lead more customers in the door.

2. The neighborhood is a close nit community and grabbing our first

core group of customers will lead to word of mouth marketing and

more customers.

 Weaknesses

1. Our financial resources, such as funding, sources of income and

investment opportunities limit our reach and impact in the market.

2. Poor consumer confidence, uncertainty and pessimism in new

startups, new cafes and new coffee shops are not only valid but

also fueled by the media and competitor marketing.

 Opportunities

1. Local competition is not open late and opening for later hours can

lead to increased market share for the café.

 2. New flavors and the opening of new markets and industries within

coffee can increase our market share and demand for coffee in

general.

 Threats

1. New marketing strategies and tactics by established coffee shops

& investors can limit our sales and potential market share.

2. Emergence of new coffee shops who are already in business with

our potential clients deliver a compelling value proposition for

customers not to switch to our brand.

Operation Management

Organizational Structure

The Spot Coffee shop will be operated as a Sole Proprietorship. Overall

management will be the responsibility of the owner. There will be a general manager,

Marketing and service crew.

 General Manager

 Marketing

 Operations & Service

Operating Expenses

Operating Expenses April,2021 May, 2021 June, 2021

Owner's Salary 12,500 12,500 12,500
Salaries, Wages 18,000 18,000 18,000
Advertising 5,000 5,000 5,000
Supplies 10,000 10,500 11,000
Dishwasher 8,000 8,000 8,000
Rent & Lease 10,000 10,000 10,000
Repairs & Maint. 5,000 5,000 5,000
Utilities 10,000 10,500 11,000
Miscellaneous 5,000 5,500 6,000
Depreciation 10,000 10,000 10,000
Ammortization 5,000 5,000 5,000
Total Operating Expenses 98,500 100,000 101,500

Equipment Cost

Small Kitchen 5,000

Tables 5,000 Capital Equipment

Chairs 10,000

Sound System 2,000

System-PC 5,000

Signage 3,000

Uniform Shirts 2,000

Coffee Maker Equipment 41,700

Total Cost Capital Equipment 32,000

 Coffee Maker Equipment

 Regular Coffee Grinder Php.13,000

 Coffee Brewers Php.500

 Decanters, Airpots, and Satellite Servers Php.700

 Frappe and Smoothie Blenders Php.500

 Hot Water Dispenser Php.2000

 Reach-In Refrigerator Php.12,000

Total Php.41, 700

Cost of Goods Sold

Opening Inventory = Php.3,000

Purchases for the Period= Php.5,000

Closing Inventory = Php.2,000

 The Cost of Goods Sold = Php.6,000

Income Statement

The Spot Coffee Shop

Projected Income Statement

For the Year Ending Dec. 31, 2021

Gross Annual Sales P 2, 160, 000

Less:

Product Cost P 700, 000

Gross Profit P 1, 460, 000

Less:

Operating Costs

Rent P 120, 000

Salaries P 312, 000

Utilities P 120, 000

Owner Salary P 150, 000

Net Profit P 702, 000

 P 758, 000

Balance Sheet

The Spot Coffee Shop

Projected Balance Sheet Statement

As of December 31, 2021

Assets

Cash P 50, 000

Accounts Receivable 100, 000

Inventories 360,000

Prepaid Expense 36, 000

Net Fixed Assets 73, 700

Total Assets P 619, 700

Liabilities and Owner’s Equity

Notes Payable P 80, 000

Accounts Payable 50, 000

Accrued Liabilities 100, 000

 Long-term debt 250, 000

Total Liabilities P 480, 000

Owner’s Equity P 139, 700

Total Liabilities and Owner’s Equity P 619, 700

Cash Flow Statement

The Spot Coffee Shop

Projected Cash Flow Statement

2021 to 2023

2021 2022 2023

Cash Sales 2,160,000 2,808,000 3,456,000

Receivables 100,000 130,000 160,000

Other Income 109,000 159,000 209,000

Total Income P2,369,000 P3,097,000 P3,825,000

Material 180,000 200,000 280,000

Direct Labor 107,000 200,000 307,000

Overhead 93,400 82,500 77,500

Marketing and Sales 5,000 5,500 6,000

Research and Development 5,000 5,500 6,000

Taxes 55 80 110
Capital 73,700 75,000 78,700

Loans 250,000 250,000 250,000

Total Expenses 714,155 818,580 1,005,310

Cash Flow 1,654,845 2,278,420 2,819,690

Cumulative Cash Flow 3,933,265 5,098,110