Republic of the Philippines

Province of Leyte
Eastern Visayas State University
Tanauan, Campus
Tanauan, Leyte

DREAM BEAN COFFEE SHOP

A Feasibility Study submitted by the

Bachelor of Science in Hotel and Restaurant Technology
II

Prepared by:

Angelio, David B.
Advincula, Sarah Jean
Almaden, Mary Rose
Magayones, Shiela
Verona, Ralph

November 2019
 CHAPTER I

INTRODUCTION

DESCRIPTION OF THE PROJECT

A demand of high quality coffee products, service and training/simulation for students of
the Hotel and Restaurant Technology Students, wherein the academic provide students in on the
job training, assessment and as a part of the curriculum. This will help the students practice in
handling a business by managing a café and will be train through the preparation of the coffee
itself. The business will also help the HRT Department to generate funds for sponsoring any
competitions and students activities. The said proposed business will benefit not only the
students of EVSU-TC and the HRT department but also the faculties, other employees and
visitors of the University.
We will be proposing an on-campus coffee shop or a café that will serve from common to
espresso coffee and other specialty coffee product as training/simulation room for HRT students.
Which can cater good quality coffee and pastry demands and needs of the students, faculties and
visitors of the University which will be name “DREAM BEAN COFFEE SHOP”.

We proposed the business, because as we the students, noticed that the establishment
need a place wherein you could sit down and enjoy coffee during vacant time. Having a coffee
while studying and reading is a bit relaxing. Instead of going outside the campus finding some
place to stay with friends they will prepare on-campus coffee shop. Since the closest
establishment which serves hot brewed coffee or tea is outside the campus and a little bit far and
expensive, we the students propose coffee shop that will evolve based on the demand and needs
of the clienteles within the university. What is good about this coffee shop is that, HRT students
will run the operation guided by a café manager with knowledge and expertise about the
business. 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.
HISTORICAL BACKGROUND

The main strategy is to educate the students in the coffee drinking culture and let them
experience the real world of coffee shop. Dream bean Coffee shop is the best first experience for
those students never experienced in a coffee shop industry. With a low overhead cost with the
help of OJT, a lower price can be presented to attract more clients in the coffee shop, this
concept is unique and a strategy that can separate its competitors. The customer will prepare to
buy coffee in Dream bean Coffee shop than the competitors outside the campus since Dream
bean Coffee shop offered same quality product of coffee but less and affordable price than
competitors. Proposed Coffee shop has their loyal based customers which are the students of
EVSU-TC and its faculties, that we can assure that this business will progress.

LOCATION

The Dream Bean Coffee shop will be located at the vicinity of Eastern Visayas State
University- Tanauan Campus, particularly the old Basketball court of the university, between the
administrative building and Student Center. It will be open to EVSU-TC students, faculties,
employees, and visitors. The location is favorable for the Coffee shop since the area is near the
Student Center where various events, functions and meetings of the different departments, and
other gathering such as seminars and trainings are often conducted. It is also a perfect spot for
many students to set down with friends during vacant time.

LEGAL STRUCTURE AND FORM OF OWNERSHIP

Dream Bean Coffee shop composed of 5 owners with an equivalent investment share of
20% from the total investment of the proposed business . The corporation will have an equal
profit sharing from the business.
MISSION

Dream Bean Coffee shop will create a unique place where customers can socialize with
each other in a comfortable and relaxing environment while enjoying the best brewed coffee or
espresso and pastries in town. We will be in the business of helping our customers to relieve their
daily stresses by providing piece of mind through great ambience, convenient location, friendly
customer service, and products consistently high quality. Dream bean Coffee shop will invest its
profits to increase the employee satisfaction while providing stable return to its stakeholder.

VISION

Our mission is to provide globally competitive training skills for hotel and restaurant
technology 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 Eastern Visayas State University values.

OBJECTIVE

The objectives of Dream Bean Coffee shop are the following:

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 Eastern Visayas State University community of espresso coffee.
4. To immerse the HRT students in the working industry.
5. To support the hotel and restaurant technology programs and activities
PRODUCT SERVICE 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. Dream bean Coffee shop offers the same service
and products quality as other coffee shop do. Dream bean Coffee shop will offer its customers
the best tasting coffee beverages in the area. This will be achieved by using high quality
ingredients and strictly following the preparation guidelines. The store layout, menu listing and
marketing activities will be focused on maximizing the sales of higher margin espresso drinks.
Along with the espresso drinks, brewed coffee and teas, as well some refreshment beverages,
will be sold in the coffee shop. Dream bean Coffee shop will also offer its clients pastries, small
salads and sandwiches.
The names of the products will be based on the standard recipe of the different types of
coffee so that the customers will not be confused and informing the customers of the types of
coffee concoctions. Pastries and other products in the coffee shop will be produced by HRT from
their laboratory in bread and pastries. The menu offerings will be supplemented by free books
and magazines that customers can read inside the coffee shop. The following are the types of
coffee serving in Dream Bean Coffee Shop:

 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.
 Hot and Cold Chocolate – a heated or iced drink consisting of
shaved chocolate or melted chocolate or cocoa powder, heated
milk or water, and usually a sweetener.
 Café Latte – which means “milk coffee” in northern Europe and

Scandinavia the term café “au lait” has traditionally made with

espresso and four parts steamed milk with no foam on top.

 Black Tea –from the variety of the best green, long black

flavored teas or herbal.

 Caffe Americano – is an espresso based drink designed to resemble coffee brewed in a drip

filter.

 Milk tea - refers to any form of beverage found in many cultures, containing some

combination of tea and milk.

 Mocha - a cappuccino with chocolate mixed in by whipping with steam

MENU PRICING

Espresso 35 pesos Caffé Americano 45 pesos

Hot Chocolate 25 pesos Milk Tea 50 pesos

Cold Chocolate 25 pesos Mocha 35 pesos

Café Latte 30 pesos

Black Tea 30 pesos

 CHAPTER II
ECONOMIC/MARKET STUDY

DEMAND/SUPPLY ANALYSIS

The study has been prepared by a group of students in Hotel and Restaurant Technology
as part of the requirements of the Technology Department. This study was developed to assist the
School Campus of EVSU-TC to evaluate the potential to develop an on-campus coffee shop.
As we conduct verbal survey as a temporary survey before this study begins, we have confirmed
feedback from almost 50 students that they prepare to have an on-campus coffee shop than off-
campus. Almost ¾ of the students who been asked never try an espresso coffee and don’t have
experience in a real coffee shop so they prepare to have one in the campus, but with a simple
demand as per stated:

 Coffee shop would need to have a unique atmosphere and offer competitively price of
premium coffee as well as wide selection of specialty drinks.
 They want a good social atmosphere wherein they can study while having a cup of
coffee.
 85(%) percent of the student been ask said that they prefer on-campus coffee shop.
15(%) we’re unlikely and they prepare to go out the campus for a new environment.
 The size, atmosphere and services would have to be competitive with off-campus coffee
shop sites to meet the customer’s desire, especially the students desire to socialize and
study at the coffee shop. Out of 50 students been asked what is their reason in visiting a
coffee shop and out of 50 students visit in the coffee shop their primary purpose is to
socialize (35%), grab and go (30%), to study (35%), and the rest of this visits are just sit
down.
 The on-campus location is not a big of an issue as the distinctive atmosphere of the coffee
shop. Students were given an opportunity to rank the union, library and academic
building, or another preferred location inside the campus.
 This student survey explores only the traditional undergraduate student market. An on-
campus coffee shop with a unique and distinctive atmosphere, excellent service, and competitive
pricing and may also attract the faculty, part-time lecturers, non-teaching staff, adult students in
the degree completion and graduate programs and other visitors from outside the campus.
“Dream bean Coffee shop” is visible and easily accessible may also attract students from other
school who are seeking for Christian Fellowship.

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 Eastern Visayas State University Tanauan Campus. 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
Part-Timer Lecturer
Non- Teaching Staff
Other employees
Visitors
GEOGRAPHIC AREA
The proposed business will be located inside the Eastern Visayas State University
Tanauan Campus between the student Center and the Admin Building of the School. We
proposed this location as we know this is the perfect spot where most of the students stay during
vacant time.
COMPETITION

Tie up with the university as a marketing tool to promote new HRT 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. Dream Bean Coffee shop recognized this problem.
The strategies of Dream Bean Coffee shop are offering customers with a friendly service. For
instance, Dream Bean Coffee shop treat their employees as their partner rather than employees.
They provide their partner with one months training, which educate them with the basic
knowledge of Dream bean Coffee shop 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 Dream bean Coffee shop 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.
Dream bean Coffee shop will position itself as a unique coffee shop where its patrons can
not only enjoy a cup of perfectly brewed coffee but also spend their time in an ambient
environment, comfortable chairs, quiet relaxing music that will help the customers to relax from
the daily stresses and will different Dream bean Coffee shop from incumbent competitors
The following are the captures key strengths and weaknesses of Dream bean Coffee shop
and describes the opportunities and threats facing the business.

COMPETITORS

The proposed business has its direct competitors outside the campus which is the Ara
Busta Café of Remlit Hotel located along the highway of Barangay Canramos Tanauan, Leyte
and the outside 5 peso vendor machine . Dream bean Coffee shop still marketable, since the
proposed business has the same quality of coffee same with the competitors but unlike the
competitors outside the campus, Dream bean Coffee shop offers product in an affordable price.
STRENGTHS
Dream bean Coffee shop is located where most of the students stay during vacant time
and near from its location is the Student Center that caters different activities such as
seminars, training, meetings for the students and visitors which is the key strength of the
business.
A quality coffee but not expensive and very much affordable.
Well trained employees with experiences in management in restaurant establishment.
Low overhead expenses
Student involvement
Non-profit establishment
Minimal operation input
Convenience environment

WEAKNESSES

Academic calendar break and major holidays

Limited menu
The Mug Café limited brand equity.
A limited marketing budget to develop brand awareness.

OPPORTUNITY

Abundant new prospect of coffee drinkers such as students, faculties, part-timers, non-
teaching staff, visitors and guest.
Provide and training students in the coffee industry
A growing market with a significant percentage of the of the target market still unaware
of the Dream bean Coffee shop.
Future expansions for an assessment venue
New skill opportunity for the students
Can be offer during meetings and seminar venue
Additional income of the Department
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.
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 Dream bean Coffee shop offering and who
will frequent visit the Shop regularly in order to meet like-minded single people.
PRICING STRATEGY

The Dream bean Coffee shop 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. Dream
bean Coffee shop, 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, Dream bean Coffee shop comparably priced.
By offering a wide selection of both regular and gourmet coffee, we believe that Dream bean
Coffee prices can appeal to even the most price sensitive consumers.

PRODUCT STRATEGY

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. The propose coffee shop 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 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. Dream bean Coffee shop will
also offer its clients pastries, small salads and sandwiches.

PROMOTIONAL ACTIVITIES

One thousand flyers will be distributed in the adjacent neighborhood, on the university
campus, in the office buildings and we will be posting in the social media about the opening of
the business within two weeks prior to the opening of Dream bean Coffee shop.