Chapter I-5

Chapter I Industry Analysis
A. Industry trends
The coffee business has boomed in recent years, especially with regards to specialty coffees. The market for specialty coffees has grown as consumers become more educated about espresso-based drinks and how they are made. According to National Coffee Association, Annual Drinking Trends Survey, specialty coffee consumption has risen from 9 percent in 2000 to16 percent in 2004. Every day, more than half of the adult population drinks coffee, 108.9 million people. The United States accounts for 52 million of those coffee drinkers.
Coffee shops make up the FASTEST GROWING part of the restaurant business, checking in with a 7% annual growth rate! World coffee production is estimated at 110 120 million bags per year! 14 billion espresso coffees are consumed each year in Italy, reaching over 200,000 coffee bars, and still growing! Americans consume 400 million cups of coffee per day, or equivalent to 146,000,000,000 (146 Billion) cups of coffee per year; making the United States the LEADING CONSUMER of coffee in the world. 5. Japan ranks number 3 in the world for coffee consumption. Coffee represents 75% of all the caffeine consume in the United States. Caf Bars average sales of 230 cups a day. (http://coffee-statistics.com)
A coffeehouse or coffee shop is an establishment which primarily serves prepared coffee or other hot beverages. As the name suggests, coffeehouses focus on providing coffee and tea as well as light snacks. Coffee has been around for more than 1,000 years. During that time, coffee has been considered a food, a medicine, an aphrodisiac, and even a wine. This industry is booming at the present time, there is a trend toward small cozy places and away from the large generic chain. (http://en.wikipedia.org/wiki/Coffeehouse)
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Coffee Houses does not show signs of slowing down. With new innovations such as flavorings and additives, it should continue for some time. Coffee mixes continued to gain popularity in both off-trade and on-trade channels in 2010. In todays advanced technology wellness makes money, and because coffee is the second most consumed beverage next to water. No wonder drinking a healthy coffee is the best way to go. With new innovations such as technology enhanced machine and improve culinary skills available in the market, it gives rise to opportunities for new entrants to enter the industry and be able to create a unique and distinguished product and service.
People are drinking more coffee with the change in lifestyles. People are working 24-7 in call centers so there is more opportunity to drink coffee. So there is also a greater opportunity for the coffee businesses to expand and to thrive faster.
B. Socio- Cultural trends
Population
The Lipa City is a first class city in the province of Batangas, Philippines. It is one of the three component cities of Batangas province (the others being Batangas City and the City of Tanauan). It is situated 78 kilometers south of Manila, and according to the latest census, it has a population of 260,568 inhabitants in 41,962 households.
Lipa City is bounded by the town of Santo Tomas in the northeast, San Pablo City of Laguna and San Antonio of Quezon in the east, the municipalities of Padre Garcia and Rosario in the southeast, the municipalities of Ibaan and San Jose in the southwest, the municipaltities of Cuenca and Mataas Na Kahoy and Taal Lake in the west and the municipalities of Balete and Malvar in the northwest. Lipa City is a major recreational, religious, commercial, industrial and educational center in central Batangas province. (http://en.wikipedia.org/wiki/Lipa,_Batangas)
Male-Female Ratio
The Lipa City has a total population of 260,558 inhabitants in 41,962 households the total population of female is143, 269 an143, 901 of male. Out of 72 barangays in Lipa City, male has the higher population.
Population Density
Based on the number of its inhabitants Lipa City is number 41 of the most populous cities of the Philippines and at position 30 in Luzon group of islands. With an area of 209.40 km Lipa City occupies a relatively small urban area. Accordingly, there is a high population density. In Lipa City, by average, 1,244.36 people live in one square kilometer. Thus, Lipa City ranks nationwide only as the 107th populated cities in the Philippines and even within the Luzon group of islands; it is only number 88 in terms of population density. The urbanization status of Lipa City is classified as urban. (htttp://www.philippine-islands.ph/en/lipa_city-batangas-philippines-barangays.html)
Urban and Rural Distribution
Lipa City is a Philippine component city. It is located in the province Batangas in Region IV CALABARZON which is a part of the Luzon group of islands. The component city Lipa City is seated about 23 km north-north-east of province capital Batangas City and about 75 km south-south-east of Philippine main capital Manila. The geographic coordinates of Lipa City are 13 55' 59'' N; 121 10' 0'' E. out of 72 barangays of Lipa there are 26 barangays that are urbanization.
C. Technological Trends
The latest coffee technology advances are immediately appealing to those that line up on the side of any and all advances in coffee technology must be good.
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Coffee pods, now becoming popular, have a sizable market with practically all the coffee majors offering them to the consumer under their brand names. The list include some of the big names in coffee market such as Starbucks, Folgers, Senseo, Keurig, Nestle, Mars Inc, Cafitaly, A Modo, Mio etc. and in spite of the fact that these pods require appropriate preparation gadgets to get coffee brew, they seem to be growing in popularity, probably because of the convenience factor. Coffee pods are prepacked and sealed plastic cups with their own filter and ready to brew powder inside and are used in special machines where they are punctured at the top as well as the bottom for infusion with steam generated in situ. The brewed coffee drains into the glass mug positioned below the pod. The pod is discarded as it is a single use cartridge type product. Since the pods are hermetically sealed, the chances of the aroma, being lost are low and some manufacturers even flush the pod with nitrogen before sealing. Also flavored coffee pods are also possible using different flavor blends. One of the problems facing the coffee pod manufacturers is the large volume of waste generated though attempts are being made to find alternative recyclable pods which of course presents another problem of collection logistics from the premises of the users.
(vhpotty,blogspot.com)
The Tassimo Brewbot brews seven (7) different beverages all from one small coffee machine that could fit on your kitchen counter or even your desk. Tassimo uses T-Discs. T-Discs are pre-measured coffee and coffee ingredients which all have embedded instructions that are "read" by the Tassimo Brewbot to make a precise cup of coffee (or any of the other 6 possible beverages) each time. One-button LED interface with multilingual LCD display makes it simple for anyone to use. It is very simple and almost impossible to mess up making a coffeehouse style coffee drink at home with the Brewbot. Variable drink strength lets you customize the flavor of your beverage. Fully automatic design allows for interruptions, extended brew time and reverts to stand-by mode after each brewing cycle. And it is quiet enough to use at your desk in your office. It is a single serve coffee maker with virtually no clean up and no messy coffee grounds to clean out. (www.prlog.org)
D. Economic trends One of the worlds most popular drinks is coffee. From breakfast at home to the coffee shop at mall or coffee breaks at office, eight out of ten adults drink an average of three cups of coffee per day. Coffee has an economics as rich as its flavor.
The production and export of coffee was once a major industry in the Philippines, which 200 years ago was the fourth largest coffee producing nation. Today, however, the Philippines produce only .012% of the worlds coffee supply. Effort are being undertaken to revive the industry however with the majority of coffee produced on the mountain areas of Batangas, Bukidnon, Benguet, Cavite, Kalinga, Apayao, Davao and Claveria.
Coffee is one of the most important crops not only in the Philippinesbut also n the other countries. It is said that water maybe the essential liquid for Earths life forms, but the coffee really gets the bodys motor going. Each day, million stagers to the kitchen coffee pot, it is among the top ten agricultural crops in terms of value. No wonder why coffee occupies an important role in the economy. In world trade, coffee ranks first among the enjoyment good, surpassing alcohol drinks, tea and tobacco.
It has chronicled historical records that date back to as far as 1200 A.D. when coffee became a very important crop in the economy of many nations. Most authorities agree that is originated in the forest of Africa.
In the Philippines, the coffee industry began in 1740 during the Spanish regime and was once a flourishing industry until the coffee rust disease almost wiped out during the last quarter of the 19 century.
Arabica thrived in Batangas before it was wiped out by coffee rust at the turn of the 19 century. Arabica beans are considered the coffee of the world market because of
their superior flavor and aroma. Characterized by the wavy leaf margin, light green leaf color, thin leaves, pulp and parchment and known a Kapeng Tagalog.
Robusta is harder and yields more than the Arabica but has the poorest flavor and aroma among the four varieties of coffee. A more popular variety among growers, it is widely cultivated in the highlands of Cavite. The plants start to flower in 2 to 5 years after transplant. Characterized by large umbrella shaped growth with thinner leaves which have more wavy margins and known by its local name as Kapeng Robusta.
Excelsa has better flavor and aroma than Robusta and Liberica. The plants start bearing 4 to 5 years from transplanting. Have wide leaves with smooth edge that are thicker than Robusta but thinner, smoother and more rounded than Liberica. Belongs to the species coffee excelsa and locally known as Kapeng Excelsa. Liberica is locally known as Kapeng Barako because it produces the biggest berry. This variety belongs to the species of Coffee Liberica. It is rounded and borne singly or in a small cluster, has thicker leaves than Excelsa and twicw as long as Arabica. The pulp is thick and the parchment is woody. Liberica also characterized a very strong pharmacopeia taste and flavor.
Consumer confidence has improved, which has brought about an increase in spending as Filipinos enjoy more job security and are more financially stable. As a result, hot drinks recorded stronger volume sales growth in 2010 compared to 2009 when most consumers were reluctant to spend money on non- essential products due to the economic slowdown.
Although Filipinos are accustomed to a tropical climate, the Philippines experienced higher than usual temperatures and humidity levels in 2010 compared to previous years. The hot weather significantly affected consumers beverages choices in 2010, resulting in a greater preference for chilled and more refreshing drinks.
Nevertheless, better economic condition resulted in positive volume sales despite slightly less demand for hot drinks such as coffee and drinks.
E. Political- Legal trends
The Department of Agriculture (DA) is planning to set aside as much as P200 million for the coffee sector to expand plantations and boost production.
In a renewed hope to plant coffee in light of the attractive price of coffee in the market, the government is optimistic it is possible to displace the country's importation through planting in the identified areas.
Department of Agriculture is distributing this year one million seedlings as intervention for the coffee planting. It will also provide farmers with small farm equipment and machinery and will establish greenhouses, 18 nurseries, seven bioorganic fertilizer plants, and a laboratory for the production of planting materials, according to DA-High Value Commercial Crop Director Dante S. De Lima.
Coffee bean buying price has risen to more than P100 per kilo from just P75 per kilo last year which is prompting renewed interest in coffee planting.
(http://www.pinoyprogress.com)
In 2005, an investment banker and real estate developer discovered a 200hectare agricultural farm in the mountainous town of Alcoy, a two-hour drive south of Cebu City. Six years later, the same plantation has now become the Philippines' largest coffee farm, located 700 meters above sea level; the area enjoys adequate rainfall and has so far managed to avoid bad weather for the past 15 years. It started with a pilot-test for Robusta (the variety used in most instant coffee brands) in a two-hectare land in Alcoy, Cebu in January last year. Now, were expecting
our harvest in the third quarter of 2011, said Noel Gonzales, president and chief executive officer of Corporate Holdings Management Inc.
For this project, the company has to spend P66,000 per hectare, or roughly 14 million for 2011 alone. Losses are expected until 2013 but forecast profits will come a year later. Nonetheless, Gonzales believes that coffee delivers a reliable source of income. A kilo of coffee beans costs around P106 in this weeks trading as traditional tea lovers China and India have gradually acquired the taste for coffee.
(http://www.sunstar.com.ph)
F. Market trends
Coffee is one of the most popular beverages worldwide. It turned out to be not just typical beverages at home but also a comparative substitute to other drink offered in the market. The Philippines is one of the few countries that produces the four varieties of commercially viable coffee, the National Coffee Development Board states. Climatic and soil condition in the Philippines, from the lowland to mountain regions, make the country suitable for all varieties. But why is coffee getting popular among Filipinos these days. Coffees popularity is also largely due to the fact that I a smoothing, flavorful drink that has become very easy to obtain, the National Coffee Development Board said Farmers and sellers have made sure anyone who wants a cup of coffee can get one. Coffee producers have created so many ways of packaging and serving the brew that this guarantees that one form/ another will appeal to just about everyone.
Coffee shop, market places, farms and of course, the groceries, supermarkets, and convenience stores and in the Philippines, the sari- sari store, all have made sure
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coffee is accessible to anyone at anytime. Coffee dispensers in supermarkets allow the aficionados to customize the selection, weight, form and cost of the coffee they purchase.
The recent world wide popularity of special brews and exotic blends of coffee gives a silver of hope to the Philippine coffee industry. This new trend might be breath of life that Philippine coffee industry needs to savor is again the taste of its coffees golden years.
In the history of coffee in the Philippines, Lipa in Batangas is said to be the world sole supplier of coffee beans that makes Lipa as the richest municipality in the entire archipelago. Coffee being still part of most Filipinos morning and also a part of the history in our country, there is great opportunity to start- up a coffee shop that will provide the basic needs and wants- food and drinks. Coffee shop is one of the best places where people meet for companionship and to exchange ideas and information. It serves as a venue for personal and business transaction and also a place to merely sit down and relax to relieve their minds from stress while taking a sip of a cup of coffee.
Coffee is one product that is continually on demand in the market. Rising demand for these products was due to part of Filipinos breakfast, fast growing population and high rate of employment. It creates an opportunity to establish a coffee shop that will cater to those factors of demand by providing their primary needs. Because they need it, they tend to consume more food and drinks. Those factors are the evidence that establishing a coffee shop is great way to promote our coffee and we expected to have it continues grows in the coming years.
Chapter II Management Plan
A. Corporate Goal
Mission:
Herb Brew Caf will have their best exertion to become one of the progressive coffee houses here in Lipa but also in our country wherein the target market can socialize in a comfortable and relaxing environment while enjoying the best coffee, espresso, and sandwich in town. We also provide the target market to relieve their stresses by relaxing their minds through good ambiance, convenient location and consistent high quality product.
Vision
We visualize Herb Brew Caf to be one of the greatest coffee houses in the province, by providing accessible and affordable high quality of food coffee based products and other activities to all customers in the coffee house. Herb Brew coffee house will also envision itself as a destination of choice in the province that will provide complete high quality experience.
B. Business Name
Herb Brew Caf is an establishment which serves herbal coffee. It is created to the name of the main ingredients coffee and herbs. The group has coined the name Herb Brew Caf from three words. First is the word Herb which means a plant grown for medicinal value or for flavoring food second, is the word Brew which means the production of the beverage and Caf an establishment focuses on serving coffee. We come up to this business name because it is easy to mention and be remembered by the customer.
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Herb Brew Caf will offer to its customer the best tasting coffee beverages in the province. The shop will be using high quality ingredients at affordable price. The menu will be built around healthy and delicious coffee and espresso based drinks such as latte, mocha and cappuccino. Herb Brew Caf will also offer its clients freshly prepared sandwiches. At the same time, we will be supplemented by WIFI connection in order to satisfy the needs of the guest by socializing while inside the coffee shop.
The logo itself explains why we choose this kind of concept. The background is color white which defines hospitality and the two big letters signifies the name of the business. The coffee bean and the leaves defines that we are selling coffee and it signifies that we are not about selling just a coffee but a healthy one. And the circle of leaves symbolizing that our business flows continuously and it has no end.
C. Organizational Chart Herb Brew Caf

Owner
General Manager Food and Beverage Supervisor
Accountant
Marketing Supervisor
Security
Cashier
Barista
Host/ Hostess
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Duties and Responsibilities
General Manager
Taking responsibility for the overall production of the business. Will represent the company in all its business dealing and will implement and execute policies and rules. Interpret the procedures and policies adequately so that any unprofessional fact could be modified or removed. Ensure precise documentation of quality and production control records and data. Will be in charge of the overall management of the business and responsible in making sure that the business will stay viable and profitable in all its dealing. Coordinate the work and activities of staff. Monitor actions of staff and customers to ensure that health and safety standards. Recruit, hire and oversee training for staff. Maintain relationships with customers and staff. Organize, plan and prioritize. Guide, direct and train staff. Perform administrative activities such as scheduling, budgeting and payroll. Oversee activities directly related in making products and providing services. Direct and coordinate organizations financial and budget activities to fund operation. Plan and direct activities such as sales promotion. Help market the business
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Accountant
Responsible to keep the record of the employees profile and record of the company wages and salaries. Prepare the employees payroll. Responsible in monitoring the expenditure, budget planning and forecasting preparation. Make sure that the employees are receiving the right pay for his or her job. Process and analyze information when budgeting.
Cashier
Will be primary responsible in receiving and disbursing payment. Will be responsible in formulating cash receipt reports and cash disbursement reports in the daily business. Concern in receiving and disbursement of payment. Patiently handling the customers queries. Knowing all the details on the ongoing sales, discounts and promotion offers. Having a knowledge about the types of products that be sold in the store.
Marketing Supervisor
Developing marketing strategies and plan. Provides information needed. Manages the advertising and promoting of the product. In charge in sale operation of the company. Responsible in purchasing materials and other equipment needed in the business operation. Instilling a market to conduct ethos throughout the business. Conducts marketing surveys on current and new product concepts.
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Overseeing and implementing product distribution. Monitoring and arranging the distribution of promotional materials.
Food and Beverage Supervisor
Do the effective and efficient management and delivery of the coffee house. Provide the highest level of customer service. To be able to work within any section with the F&B department. To act as team leader within the F&B operation. Supervise the operation of dining facilities. Responsible for a variety of tasks dealing with the serving and preparation of all food and beverages. Assisting in the design of menus, helping to determine price, selection and specials. Ensuring a high standard of cleanliness of food facilities. Inspect supplies, equipment and work areas to ensure efficient service and conformance to standard. Responsible for inventories of food, equipment small ware and beverages.
Barista
Mix, make and invent different varieties of coffee. Making delicious and relaxing coffee. Make and designs appealing presentations of coffee. Make hot and cold variety of coffee. Serve hot and cold coffee to customer. Responsible to learn the different procedures of making coffee and other beverages get acquainted with the flavors. Should take care of the coffee house and its ambiance. Have a good hygiene skill.
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Should be well versed with coffee making such as milk steaming, blending and brewing.
Host/ Hostess
Responsibility for supervising the display and serving of food and coffee Seats dining room customers Establish and maintain friendly relationships with the dining room customers Control and manage routine coffee and food serving operation Responsibility in setting the table, cleaning and polishing silverware and cleaning and maintain dining equipment and premises
Security
Coordinates with the security agency service provider Develops and implement security plan and program Reviews daily guard posting details Conducts investigation and prepares incident reports Coordinate with other department in the effective implementation of the security plan and programs Conducts random inspection of the security system (guards and facilities)
D. Initial Staffing
Position
Employment Status
Salary/Day
Salary/Month
General Manager Marketing Supervisor
Regular Regular
Php500 Php400
Php15, 000 Php12, 000
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Food & Beverage Supervisor Accountant Security 1 Security 2 Security 3 Barista 1 Barista 2 Barista 3 Host/ Hostess 1 Host/ Hostess 2 Host/ Hostess 3 Cashier 1 Cashier 2 Cashier 3
Regular
Php400
Php12, 000
Freelance Contractual Contractual Contractual Regular Regular Regular
Php800 Php310 Php310 Php310 Php310 Php310 Php310
Php2, 400 Php9, 300 Php9, 300 Php9, 300 Php9, 300 Php9, 300 Php9, 300 Php9, 300 Php9, 300 Php9, 300 Php9, 300 Php9, 300 Php9, 300
Contractual/on call Php310 Contractual/on call Php310 Contractual/on call Php310 Contractual Contractual Contractual Php310 Php310 Php310
Total Man Power Salary/ Month Php153, 000
The table shows the number of employees and their status in Herb Brew Caf, the amount of salary per day and per month, Herb Brew Caf has 1 General Manager, 1 Marketing Supervisor, 1 Food and Beverage Supervisor, 1 Accountant, 3 Security, 3 Barista, 3 Host/ Hostess and 3 Cashier.
Fringe Benefits
1. Sick Leave- employees may use sick leave for illness of, injury to, or nee to obtain medical or dental consultation. 2. Vacation Leave- given to the employees one to two days off from their work. 3. Social Security System (SSS)- provide private employees and their families with protection against disability, sickness, old age and death.
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4. Philippine Health Insurance Corporation (PhilHealth)- provide employees with a practical means of paying for adequate medical care in the Philippines. 5. Educational Assistance- given to the employees wants to pursue their degree. 6. Christmas Bonuses- employees receive bonuses and gifts. 7. Salary Increase- employees receive salary increase base on their performance.
E. Staff Training
Budget General Manager Leadership Training Php. 3, 000
Target Date
February 2013
Understand the nature of leadership and how different styles impact others. Demonstrate understanding of and concern for others. Build coherence by clarifying rules and process. Serve as a source of optimism and enthusiasm while eliciting excellence and innovation. Recognize ways to lead effectively under a variety of condition or circumstances. Lead effectively in time of change. Understanding the nature of human decision making.
Barista Barista Training and Seminar Php. 3,000 February 2013
Understand the responsibilities of a barista. Develop the skills in making a coffee. Expert in making espresso and other specialty coffee using machines. Develop their understanding about coffee quality.
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Learn the art of presentation for a wide variety of coffee drinks.
Security Security Service Training Php. 2, 000 February 2013
Provide education and certification to protection and security. Develop and maintain security training standards that improve the quality of job performance of protection. Establish standards of ethics for protection. Improve the public perception and awareness of duties and
responsibilities.
Food and beverage Supervisor and Host/ Hostess Food and Beverage service Training Php. 4, 000 April 2013
Learn safe food handling procedures and sanitation practices. Describe the importance of the menu to food service operation. Exploring the nature of customer demand. Developing sales and increasing profits. Developing understanding of the service sequence and the service process.
All Staff Customer Service Training and Seminar Php. 1, 500 May 2013
Provide each staff with the basic understanding about customer service and how one goes about providing good customers service.
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Chapter III Marketing Plan
According to John Walker marketing is finding out what guest wants and needs are and providing the customer with solutions. Another definition is Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational goals. Marketing is the process used to determine what products or services may be of interest to customers and strategy to use in sales, communications and business development. It generates the strategy that underlies sales, techniques, business communication and business developments. It is an integrated process through which companies build strong customer relations and create value for their customer and for themselves. Marketing concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions. It proposes that in order to satisfy its organizational objectives should anticipate the needs and wants of customers and satisfy these more effectively than competitors. We all know that coffee is one of the most popular beverages worldwide. The business marketing focus on the products which is coffee with the mix of a herbal plant which are Malunggay and Pandan for the benefits of our customer and for the customer who are health conscious that Herbrew Caf offer to our target market. A. Marketing Objectives Herb Brew Caf aims to: To become a destination of choice offering coffee based product in the province of Batangas. To become an established and best coffee house in the City of Lipa. To produce product that suitable to the guest and give satisfaction.
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Ensure a friendly comfortable atmosphere. Having a different branch not only here in the province of Batangas but in nationwide. To gain profit as well.
B. Target Market
The Lipa City is a first class city in the province of Batangas, Philippines. It is one of the three component cities of Batangas province (the others being Batangas City and the City of Tanauan). It is situated 78 kilometers south of Manila, and according to the latest census, it has a population of 260,568 inhabitants in 41,962 households.
Our survey shows that most of our respondents are male which is 36 out of 60 respondents and the other 24 is female which is 16 years old and above. Based on our survey they drink 1 2 cups of coffee a day. 49 out of 60 respondents are willing to spend money and have a coffee outside their home while the other 11 respondents are not and prefer to drink coffee at home.
Most of our respondents have jobs so they can afford to check our caf and have a coffee and snack, most of them are call center agents, employees, travelers, some are students and families as well.
Based on research, Coffee is the second most consumed beverage on the planet after water. Its the second most traded commodity after oil. People drink coffee all day, every day in almost every country around the world. And were bringing them delicious coffee that will also help to improve peoples health, wealth and bring more balance into their lives. With these reasons, it is a good idea to put up a coffee shop business, especially in our strategic location where it is near from all kinds of target market, we have the opportunity of reaching out different kinds of customers.
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Coffee has really become a part of the lifestyle of the Batangueo. Its discerning coffee drinkers are in favor of well prepared, strong coffee based beverages, which they can consume in relaxing environment. Coffee has been considered a food, a medicine, and even a wine. Today, however, coffee is known as a beverage to be served and enjoy.
Our target market includes the following: Businessman- Because Herb Brew Caf is in the business area, it is a perfect place for them to stop by and have a coffee break before long hours of work. Travelers / Passengers Herb Brew Caf is also a perfect place for them, a cup of coffee and a delicious sandwich is worth it while waiting for their friends and family, also while waiting for the jeep and bus to come. Students Our location is near away from universities like De La Salle Lipa and Canossa Academy while 1-2 km away from other schools near the market and church. Research shows those 16-25 years old are responsible for the most increases coffee consumption in the past year. Our business aims to offer affordable prices that are suitable for students allowance. Also it is a perfect place to hang out. Employees Hospital, Call Center, Hotels and other offices is near from our Caf, so it is a great advantage for us because even after a heavy workloads, job stress they have a time to relax and have a break at our caf knowing that our coffee will give them positive health effects. Others - With our relaxed atmosphere, pleasant, fully air conditioned, spacious place, working table and a cozy sofa, flexibility lighting schemes that create a different and proper mood each of the day, and also our outdoor seating area, we will be able to attract customers to stop by and check our Caf.
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Coffee drinkers in Lipa City are among the most demanding ones. Herb Brew Caf will strive to build a loyal customer based on offering a great tasting coffee in relaxing environment of its coffee houses. Such customer vary in age, although our location close to the schools means they must clientele will be the student and faculty and other people working in offices. Furthermore, a lot of students consider coffee house to be a convenient studying or meeting location, where they can read or meet with peers without the necessity to pay cover changes. For us, this will provide a unique possibility for building a loyal client base. These target customers will frequent the Herb Brew Caf before work for a cup of coffee, at lunch for a tasty sandwich and after work and studying for a treat and to check their email and surf the web because of its Wi-Fi Zone.
C. Competitors Analysis
Business Name
Address
Special Features Highest
Price Lowest
Starbucks
SM City Lipa Ayala Highway, Balintawak, Lipa City
The
best
coffee Php.180.00 Php.80.00
provider and they also offer cakes and pastries.
Caf de Lipa
San Carlos drive, Mataas na Lupa, Lipa City
They
also
offer Php.140.00 Php.80.00
coffee, cakes and pastries.
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Caf 78
Hotel ni Mang Jose Ayala Highway, Balintawak, Lipa City
Serves
unique Php.120.00 Php.60.00
coffee and pastries to the guest.
Others:
Jollibee
Robinsons Place, JP, Laurel Mataas na Lupa, Lipa City
Fast food chain that offers hot coffee and
Php.31.00
Php.31.00
chocolate
during breakfast.
Mc Donalds
Mataas na Lupa , Lipa City
Fast food chain that offers hot coffee and
Php.35.00
Php.35.00
chocolate
during breakfast.
Mister Donut
Robinsons Place JP Laurel Mataas na Lupa, Lipa City
Offers coffee, hot chocolate donuts. and
Php.35.00
Php.25.00
Brownies Unlimited
Offers simple coffee and pastries.
Php.30.00
Php.20.00
Herb Brew Caf
Mataas na Lupa, Lipa City
Offer a healthy and Php.190.00 Php.40.00 delicious beverages sandwiches affordable price coffee and a
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The table showed all the possible competitor of the Herb Brew Caf in Lipa City. Starbucks has a big company name all over the world, this will one of their possible competitor in offering a coffee. Caf de Lipa and Caf 78 will offer also a coffee thats why this will be considered as a competitor of the Herb Brew Caf. Jollibee, Mc Donalds, Mister Donut and Brownies Unlimited will be the indirect competitor of the Herb Brew Caf.
D. Market Share
Market Share
10% 10% 10% 40% Starbucks Caf de Lipa Caf 78 30% Herbrew Caf Others
Herb Brew Caf shall be giving out its market with its competitors like Starbucks, Caf de Lipa, Caf 78 and others. In coffee industry the Starbucks has 40% market share, the Caf de Lipa has 30%, Caf 78 has 10%, Herb Brew Caf has 10% and others has 10%. As a new entrant in this industry, in 200 coffee drinker they implicit that 80 customers are in the Starbucks, 60 customers are in Caf de Lipa, 20 customers are in Caf 78, Herb Brew Caf and others.
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E. Positioning
Positioning Statement: Make your Daily Habit a Healthy one in Herb Brew Caf
Herb Brew Caf will be located in a commercial area in Lipa City, which is near from schools, malls, hospital, bus terminal, subdivisions and offices such as call centers. Our chosen location is very accessible to all our target market namely, students, drivers, employees, families and other residents near Herb Brew Caf.
Herb Brew Caf is a perfect place to share moments with a cup. We find new ways to provide nutritious foods and beverages for our customers especially we know that majority of our customers are health-conscious and actively seek reliable nutrition information. We offer delicious coffee and sandwiches despite of its herbal content just to make sure that we can satisfy our customers needs. You can also enjoy our great coffee while surfing the net as we offer a free unlimited Wi-Fi.
Herb Brew Caf offer delicious and healthy coffee product that are originally created at Herb Brew Caf. Because we believe that a delicious cup of coffee in a comfortable, warm and welcoming place will make your day. Our coffee prices are much cheaper than the other coffee houses such as Starbucks and Caf de Lipa, as we are a new entrant and starting we offer great healthy coffee for a very affordable prices. You can enjoy its delicious taste and health benefits at the same time.
Our comfortable place will surely invite you to have a break, have a snack with your families, friends, and loved ones as we serve the best healthy coffee that you will enjoy and surely get back. We offer a warm and welcoming place for people of all ages. With our relaxed atmosphere, pleasant, fully air conditioned, spacious place, working table and a cozy sofa we will attract customers to stop by and check our caf. Flexibility lighting scheme also attracts customers for it create a different and proper mood each of the day. Outdoor seating is also important especially if the weather is right.
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F. Place
Herb Brew Caf Location Map

Lipa City Public Market
JP Laurel, Mataas na Lupa, Lipa City
Lipa City Proper
Rotonda Bus Stop Big Ben
Batangas City Proper
De La Salle Canossa To Lipa City Hall Mary Mediatrix Medical Center Academy
In starting a business, location is one of the most important to consider. It determines the sale ability of the business. Proposed project has decided to establish a coffee house/shop at JP Laurel, Mataas na Lupa, Lipa City. The land to be bought is 300 square meters. According to Mr. / Ms. Jose Mercado, the owner of the land it is for sale for the amount of Php15, 000 per square meter.
15, 000 x 310 square meter = Php4, 650, 000
The chosen site of proposed project is very accessible. From Batangas City, you can go there at JP Laurel, Mataas na Lupa, Lipa City by using the public jeepneys from
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more or less 1 hour at the amount of Php38.00. Another is by using the bus from 30 minutes taking the Star Toll Way (Tambo Exit) at the amount of Php35.00.
Licenses In putting up a business, there are several government agencies that we have to register with depending on the type of the business. Permits or licenses are required to ensure that the standards are met and that business complies with the specific requirements of the business local. Registration procedure varies across cities and municipalities. All business involved in the distribution of food and drinks in the Philippines need to obtain a license or permit to operate.
Permit to Operate Food establishment cannot operate without permit to operate. Must be posted visible to customers. Inspected by health officer. Inspection are focused on: Food and supplies Personal hygiene and employees health Cleaning and sanitizing solutions Equipment and utensils Water supply and waste disposal Pest Control
Process on applying License to Operate in the Philippine Government under the Department of Health: 1. Submission of application of License to Operate and all requirements to Bureau of Food and Drug. 2. Registration fees to be paid for the processing. 3. Bureau of Food and Drug will evaluate all the requirements and prepare endorsement for License to Operate (LTO). 4. If approved, Bureau of Food and Drug will issue License to Operate.
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The total processing time for business registration is just 2-3 weeks from submission of requirements.
Herb Brew Caf also undergo with the registering of Business Name to Department of Trade and Industry (DTI). There are reasons why we have to register our business. First, we are ensuring that no one else is carrying on an operation under our name. Second, it allows for members of the public to look up the register business so that they can see who is behind to the operation. Lastly, business name registration ensures our level of protection, certainly and publicity.
Process on applying for a Business Name Permit 1. Submit application form to the DTI Processor. 2. The DTI Processor will check if the Business Name is still available. 3. Pay the required registration and processing fees. 4. After showing the receipt to the Processor, the Business Name Certificate will be released. 5. Business Name Certificate is valid for 5 years from the date of registration.
Other Permits in the City of Lipa that we need to accomplish: Mayors Permit Business Permit Sanitation Permit Fire Protection Permit Building Permit Tax Permit
Product Herb Brew Caf product constitutes a wide range of products that appeal primarily to the Batangueos coffee and snack lover. Product that Batangueo taste be it food or coffee.Most of the eatables have been adopted to meet the Batangueos
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taste buds like Sandwiches. Thus, we have to capture the Batangueos taste along with classical coffee. The best selling item in summer is the herbal coffee that fit to the season it is the Moringa Coffee, which is coffee and ice cream blended together which people will love. In rainy season, it is brewed coffee with pandan or what we called Pandan Brewed Coffee which originated here in the province of Batangas. These will be prepared by our hired Barista.
Product Health Benefits
In the past, coffee has been overlooked as a healthy food. There has an always been some level of suspicion around coffee and its long term impact on health. For some reason, coffee has this association of being unhealthy. It looks like that link between coffee and unhealthiness is wrong. In fact, there is a good bit if evidence that coffee is good for us and it may even be good for us.
Herb Brew Caf made a coffee product that many people will love. This will be come from the leaves of malunggay. Malunggay leaves was once considered apoor mans vegetables but now it is known as a miracle tree or natures medicine cabinet by scientist and healthcare workers from around the world because it is loaded with vitamins and minerals that can be an effective remedy against many kinds of ailments.
Moringa Coffee Health Benefits Helps strengthen the immune system Help restore skin condition controls, blood pressure relieves headaches and mind grain Strengthen eye muscles Normalize blood sugar level preventing diabetes It has an anti cancer compounds that help stop the growth of cancer cells Used to treat fever and asthma Three times the potassium of banana
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Four times the Vitamin A of carrots Two tim Pandan Brewed Coffee Relieving headaches and pain Treats leprosy and smallpox Reduce fever Solve skin problems Cures ear and chest pain Reduce stomach spasm Strengthen gums Cure arthritis Normalize blood sugar
Coffee Health Benefits Prevention of cell damage because of antioxidants Prevention of dental caries Boost athletic performance Mental alertness Against Constipation Reduces risk of asthma and cancer Loses fats Anti-diabetic Cardio protective
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Herb Brew Caf Menu Price List
Hot Coffee
Espresso Kape Americano Kape Latte Caramel Macchiato
Price
Php.40.00 Php.45.00 Php.65.00 Php.100.00
Cold Coffee
Iced Kape Latte Coffee Shake Iced Kappuccino Iced Mocha Iced Vanilla Coffee Php.85.00 Php.85.00 Php.90.00 Php.90.00 Php.95.00
Herbal Coffee
Pandan Brewed Coffee Moringa Coffee Php.40.00 Php.190.00
Sandwiches
Ham and Cheese Sandwich Egg Sandwich Bacon Sandwich Clubhouse Sandwich Php.30.00 Php.40.00 Php.110.00 Php.110.00
Juices Orange Juice Pineapple Juice Buko Juice
Php.25.00 Php.25.00 Php.25.00
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G. Price Pricing in this industry is very competitive. The price of freshly brewed coffee and specialty beverages do not vary by more than a few cents between the corner coffee shop and the large chains. The price of roasted coffee bean can vary. Larger chains, having the benefit of volume, can charge slightly lower. Herb Brew Caf will charge a slightly higher price as our coffees are freshly roasted on-site daily. Herb Brew Caf will roast its coffee to maximize the flavor of the specific bean. We will also roast coffee to the customers specifications. This strategy of bringing the customer in to the whole coffee experience, gives the customer an additional service, for which a slightly higher price will not be deemed excessive. Herb Brew Caf offers different kind of coffee and sandwiches that will adapt to the market. There are two ways to consider in getting the selling price of all items: Recipe Costing- a process or activity of determining the amount of resources, in the form of money, needed to produce a specific amount of serving portions. The recipe cost represents the amount of money spend on ingredients to produce the product using a set of standard. Food cost percentage method- a pricing method that uses a standard food cost as percentage of sales that ensure profitable operation. This is done by multiplying the raw food cost or recipe cost by the food cost percentage. The formula for this is: Cost per serving= total recipe cost Yield Selling Price= cost per serving Food cost %
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Coffee
Espresso Ingredient: 150g espresso 54oml water Procedure: Put the coffee bean into an espresso machine with water.
Recipe Cost Sheet Title of Recipe: Double Espresso Original Yield: 3 serving Desired Yield: 12 serving
Quantity
Unit of Measure
Unit Price
Cost of Ingredient use
Ingredient
Quantity
Unit of Measure
Unit Price
Cost of Ingredient use
Coffee/ espresso 150 g 260/k 39.00 600 g 260/k 156.00
Total
39.00
Total
156.00
Cost per serving= Php.156.00 12 = Php.13.00
Selling Price= Php.13.00 .35 = Php.37.14/ 40.00
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Kape Americano Ingredient: 290g coffee 65g sugar to taste 6-8oz. water Procedure: Coffee combined with 6 to 8 ounces of hot water out of an espresso machine. The result is a very smooth cup of coffee that is much hotter than brewed coffee.
Recipe Cost Sheet
Title of Recipe: Kape Americano Original Yield: 3 serving Desired Yield: 12 serving
Quantity
Unit of Measure g g oz.
Unit Price 260/k 260/k
Cost of Ingredient use 59.74 2.99
Ingredient
Quantity
Unit of Measure G G Oz
Unit Price 206/k 46/k
Cost of Ingredient use 179.22 8.97
290 65 18 Total
Coffee/ espresso sugar water
870 195 72 Total
62.73
188.19
Cost per serving= Php.188.19 12 = 15.68
Selling Price= Php.15.68 .35 =44.80/ 45.00
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Kape Latte
Ingredients: 74g coffee 4c milk I00g sugar to taste Procedure: Heat milk in a saucepan set over medium-low heat. Whisk briskly with a wire whisk to create foam. Brew espresso and pour into cups. Pour in milk, holding back the foam with a spoon.
Recipe Cost Sheet Title of Recipe: Kape Latte Original Yield: 4 serving Desired Yield: 8 serving
Quantity
Unit of Measure g c g
Unit Price 206/k 77/L 46/k
Cost of Ingredient use 15.24 70.22 4.60 90.06
Ingredient
Quantity
Unit of Measure g c g
Unit Price 206/k 77/L 46/k
Cost of Ingredient use 30.49 140.45 9.20 180.12
74 4 100 Total
Coffee/ espresso Milk sugar
148 8 200 Total
Cost per serving= Php.180.12 8 =22.52
Selling Price=Php.22.52 .35 = 64.34/ 65.00
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Caramel Macchiato
Ingredients: 4 oz. coffee/ espresso 32 oz. milk Procedure: To a coffee mug, add vanilla syrup and steamed milk. Top with milk foam and add freshly brewed espresso through the foam. Drizzle with caramel sauce. 8 tbsp. vanilla syrup 300 ml. caramel
Recipe Cost Sheet Title of Recipe: Caramel Macchiato Original Yield: 4 serving Desired Yield: 20 serving
Quantity 4 32 8 300 Total
Unit of measure oz oz tbsp ml
Unit Price 206/k 77/L 20/240ml 115/L
Cost of ingredient use 23.36 69.85 12.80 34.60 140.61
Ingredient Coffee/ espresso Milk Vanilla syrup Caramel
Quantity 20 160 40 1.5 Total
Unit of measure oz oz tbsp L
Unit Price 206/k 77/k 20/240ml 115/L
Cost of ingredient use 116.80 346.80 32.80 173 703.05
Selling Price= Php.35.15 .35 = Php.100.43/100.00
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Iced Kape Latte
Ingredients: c coffee/ espresso 1 c milk 60 ml cinnamon syrup Procedure:
Cinnamon Syrup: 240 g sugar 5 g cinnamon powder c water
Combine the espresso, flavored simple syrup, and milk in a small pitcher. Fill each of the mason jars with crushed ice. Pour the latte mixture over the ice and serve immediately.
Recipe Cost Sheet Title of Recipe: Iced Kape Latte Original Yield: 2 serving Desired Yield: 8 serving
Quantity 1 60
Unit of measure c c ml
Unit Price 206/k 77/k 13.51/ 60ml
Cost of ingredient use 11.74 33.27 13.51
Ingredient Coffee Milk Cinnamon syrup
Quantity 1 6 240
Unit of measure c c ml
Unit Price 206/k 77/L 13.51/60 ml
Cost of Ingredient use 46.97 133.07 53.96
Total For syrup 240 5 Total
58.52
Total
234.00
g g c
46/k 14.80/ 30g
11.04 2.47
Sugar Cinnamon powder Water
960 20 2
g g c
46/k 14.80/30 g
44.16 9.80
13.51
53.96
Selling Price= Php.29.25 .35 = Php.83.57/ 85.00
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Iced Kappuccino
Ingredients: 1 c coffee 1 c milk 104 g sugar Procedure:

Mix ingredients in a blender until ice is chopped and slushy.Pour into glasses and add the toppings if you like (a dollop of whipped cream dusted with cinnamon or cocoa).
200 ml whipped cream 30 ml chocolate syrup 1 c ice
Recipe Cost Sheet
Title of Recipe: Iced Kappuccino Original Yield: 4 serving Desired Yield: 12 serving
Quantity 1 1 104 200 30 1 Total
Unit of measure c c g ml ml c
Unit Price 260/k 77/L 46/k 336.25/L 206.75/ 623g
Cost of Ingredient use 22.36 17.56 4.78 67.25 9.95
Ingredients Coffee Milk Sugar Whipped cream Chocolate syrup Cube ice
Unit of measure c c g ml ml c
Unit Price 260/k 77/k 46/k 336.25/L 206.75/ 623g
Cost of Ingredient use 67.08 52.68 14.34 201.75 29.85
121.90
365.70
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Iced Mocha
Ingredients: 1tbsp. instant coffee 45g sugar 2tbsp. chocolate syrup 1c milk Procedure: In blender add chocolate syrup, milk, sugar and coffee pulse blender to mix .Add ice to until thick. Pour into tall glass top with whipped cream and chocolate syrup. 100ml whipped cream c ice 1c water
Recipe Cost Sheet Title of Recipe: Iced Mocha Original Yield: 2 serving Desired Yield: 10 serving
Unit of measure tbsp g tbsp c ml c c
Unit Price 77/100g 46/k 206.75/6 23g 77/L 336.25/L
Ingredient Instant coffee Sugar Chocolate syrup Milk Whipped cream Ice water
Quantity 5 225 10 5 250 2 5 Total
Unit of measure tbsp g tbsp c ml c c
Unit Price 77/100g 46/k 206.75/ 623g 77/L 336.25L
61.75
308.75
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Iced Vanilla Coffee
Ingredients: 4tsp. instant coffee 1tsp. vanilla 1 c milk c sugar Procedure: Combine coffee, sugar, and vanilla, stirring until sugar dissolves. Stir in milk; cover and chill. To serve, pour 1 cup coffee into a glass, and top with whipped cream and chocolate shaving. 100ml whipped cream 10g chocolate shaving 4tsp. water
Recipe Cost Sheet Title of recipe: Iced Vanilla Coffee Original Yield: 2 serving Desired Yield: 10 serving
Quantity
Unit of measure tsp tsp c C ml g tsp
Unit Price
4 1 1 10 10 4 Total
77.25/100g 29/20ml 77/L 46/k 336.25/L 43.50/40g
Cost of ingredient use 7.73 10.15 26.33 4.92 3.36 10.88
Ingredient
Quantity
Unit of measure tsp tsp c c ml g tsp
Unit Price
Instant coffee Vanilla Milk Sugar Whipped cream Chocolate Water
20 5 7 20 2 100 20 Total
77.252/100g 29/20ml 77/L 46/k 336.25/L 43.50/40g
63.37
333.68
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Coffee Shake
Ingredients: 2tsp. instant coffee 360ml milk 10ml vanilla Procedure: Combine the instant coffee, milk, vanilla extract, sugar, ice, and chocolate syrup in a blender; blend until smooth. 160g sugar 20ml chocolate syrup 1/2c ice
Recipe Cost Sheet Title of Recipe: Coffee Shake Original Yield: 2 serving Desired yield: 10 serving
Quantity 2 360 10 160 20 Total
Unit of measure tsp ml ml g ml c
Unit Price 77.25/ 100g 77/L 29/20ml 46/k 206.75/ 623g
Ingredient Instant coffee Milk Vanilla Sugar Chocolate syrup Ice
Quantity 10 1800 50 80 100 2 Total
Unit of measure tsp ml ml g ml c
Unit Price 77.25/ 100g 77/L 29/20ml 46/k 206.75/6 23g
58.15
290.75
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Pandan Brewed Coffee
Ingredients: 1c grind coffee 1 c sugar 2 pc Pandan leaves 6c water Procedure: In a pot put water and pandan leaves. Bring to boil then add coffee and sugar.
Recipe Cost Sheet Title of Recipe: Pandan Brewed Coffee Original Yield: 6 serving Desired Yield: 18 serving
Unit of measure c c pc c
Unit Price 206/k 46/k 5/12pc
Cost of ingredient use 49.44 14.77 .83
Ingredient Grind coffee Sugar Pandan leaves Water
Unit of measure c c pc c
Unit Price 206/k 46/k 5/12
Cost of ingredient use 148.32 88.61 2.50
65.04
231.43
Selling Price= Php.13.30 .35 =Php.38.00/40.00
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Moringa Coffee
Ingredients: 5g malunggay leaves 1tbsp. instant coffee 240ml milk 1c ice cream Procedure: Pour all ingredients into a blender and blend till creamy (about 30 seconds). Spoon into a 16 oz cup. Top with whipped cream and drizzle with chocolate sauce. 60ml chocolate syrup 100ml. whipped cream 1c ice
Recipe Cost Sheet Title of Recipe: Moringga Coffee Original Yield: 2 serving Desired Yield: 10 serving
Quantity 5 1 240 1 60 100 1 Total
Unit of measure g tbsp ml c ml ml c
Unit Price 6/100g 77.25/ 100g 77/L 170/ 800ml 206.75/ 623g 336.25/L
Cost of ingredient use .30 3.86 18.48 51 19.19 39.44
Ingredient Malunggay leaves Instant coffee Milk Ice cream Chocolate syrup Whipped cream water
Quantity 25 5 1200 5 300 500 5 Total
Unit of measure g tbsp ml c ml ml c
Unit Price 6/100g 77.25/ 100g 77/L 170/ 800ml 206.75/ 623g 336.25/L
Cost of ingredient use 150 19.30 92.40 255 99.65 197.20
132.99
664.95
Cost per serving= Php.664.95 10 =Php.66.50
Selling Price= Php.66.50 .35 = Php.190

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Ham and Cheese Sandwich
Ingredients 125g cheese 125g ham c mayonnaise Procedure: Pre-heat oven to 375F (190C). Combine cheese, ham, mayonnaise, green onions and pepper in a medium bowl. Slice bread on the diagonal into 25 1/4-inch (5 mm) slices. Spread a tablespoon of dip on each slice and place on a baking sheet. Bake for about 20 minutes, or until bread begin to brown. Serve immediately. c green onion tsp pepper 750g bread
Recipe Cost Sheet Title of Recipe: Ham and Cheese Sandwich Original Yield: 20 serving Desired Yield: 40 serving
Quantity 125 125 750
Unit of measure g g c c tsp g
Unit Price 43/125g 102/250g 632/3.5L 90/k 12.75/ 25g 59.50/ 600g
Ingredient Cheese Ham Mayonnaise Green onion Pepper bread
Quantity 250 250 1 1 1500
Unit of measure g g c c tsp g
Unit Price 43/125g 102/250g 632/3.5L 90/k 12.75/25 g 59.50/ 600g
Cost of ingredient use 86 102 41.18 14.14 2.56 148.74
Total
197.31
Total
394.62
Selling Price= Php.9.87 .35 = Php.30.00
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Egg Sandwich
Ingredients 4pc egg 4tbsp mayonnaise 2tsp pickles 2tbsp green onion Procedure: Fill a small sauce pan with enough water to just cover eggs and bring to a full boil. Reduce heat to low and cover. Cook eggs for about 10 minutes. Remove from heat, drain, and immediately cool eggs with cold running water. Peel eggs and finely chop. Add mayonnaise, pickle relish, chopped onion, salt, and pepper and mix. Spread on bread of your choice. Garnish with lettuce. 1/8tsp salt 1/8tsp pepper 300g bread
Recipe Cost Sheet Title of Recipe: Egg Sandwich Original Yield: 4 serving Desired Yield: 20 serving
Quantity 4 4 2 2 1/8 1/8 300
Unit of measure pc tbsp tsp tbsp tsp tsp g
Unit Price 135/30pc 623/3.5L 116/k 90/k 30/k 12.75/ 25g 59.50/ 600g
Cost of ingredient use 18 2.53 .81 1.80 .24 .24 29.75
Ingredient Egg Mayonnaise Pickles Green onion Salt Pepper bread
Quantity 20 20 10 10 2/3 2/3 1500
Unit of measure pc tbsp tsp tbsp tsp tsp g
Unit Price 135/30pc 623/3.5L 116/k 90/k 30/k 12.75/ 25g 59.50/ 600g
Cost of ingredient use 90 12.65 4.05 9 1.20 1.20 148.75
Total
53.22
Total
226.10
Selling Price= Php.13.31 .35 = 38.02/40.00

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Bacon Sandwich
Ingredients: 31.25g bacon 37.50g bread c mayonnaise Procedure: In large skillet, cook bacon until crisp. Drain and set aside. Split bread in half lengthwise. Put mayonnaise; spread on bread slices. Alternate layers of bacon, tomato, cheese and lettuce on bread. Top with slice of bread. Cut into sandwiches. Serve immediately. 40g tomatoes 125g cheese 1c shredded lettuce
Recipe Cost Sheet Title of recipe: Bacon Sandwich Original Yield: 6 servings Desired Yield: 18 serving
Quantity 31.25 37.50 40 125 1 Total
Unit of measure g g c g g c
Unit Price 180/500g 59.50/60 0g 632/3.5L 100/k 43/125g 180/k
Cost of ingredient use 11.25 3.72 20.59 4.00 43 43.20 234.54
Ingredient Bacon Bread Mayonnaise tomatoes Cheese lettuce
Quantity 93.75 112.50 1 120 375 3 Total
Unit of measure g g c g g c
Unit Price 180/500g 59.50/600 g 632/3.5L 100/k 43/125g 180/k
Cost of ingredient use 33.75 337.50 61.77 12.00 129 129.60 703.62
Cost per serving= Php.703.62 18 = 39.09
Selling Price= Php.93.09 .35 = 111.69/110.00
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Clubhouse Sandwich
Ingredient 675g bread 9tbsp mayonnaise 40g tomatoes Procedure: Grill chicken in a frying pan until it cooked and set aside. Fry bacon until crisp and set aside. Let rest for 5 minutes before slicing thinly on a bias. To assemble, layer everything in this order: a slice of bread; layer of mayonnaise; lettuce; grilled chicken; bacon; tomatoes; and finally the last slice of bread. Secure the 4 sides with cocktail toothpicks and slice the sandwich into two diagonally. 280g bacon 250g chicken 15g lettuce
Recipe Cost Sheet Title of Recipe: Clubhouse Sandwich Original Yield: 6 serving Desired Yield: 18 serving
Quantity 675 9 40 280 250 15 Total
Unit of measure g tbsp g g g g
Unit Price 59.50/ 600g 632/3.5L 100/k 180/ 500g 110/k 180/k
Cost of ingredient use 66.94 22.75 4.00 100.80 27.50 2.70 224.69
Ingredient bread Mayonnaise Tomato Bacon Chicken Lettuce
Quantity 2025 27 120 840 750 45 Total
Unit of measure g tbsp g g g g
Unit Price 59.50/ 600g 632/3.5L 100/k 180/500g 110/k 180/k
Cost of ingredient use 200.82 68.25 12 302.40 27.50 8.10 674.07
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H. Promotion
Promotion is a form of corporate communication that uses various methods to reach a target customer with a certain message in order to achieve specific organization objectives.
Promotional Tools Tarpaulin 24x36 Php.300.00 100 pcs
Mechanics Posting every month at the store, along the high way and in different place in Lipa city.
Total Php.30, 000
Flyers 4x5.5 Php. 10. 00 5,000 pcs
Distribution at least 3x a week at the market, mall, bustop, outside schools.
Php.50,000
Radio add at GV99.9 FM 2,500x24
Will be promoting two times a month by the DJ.
Php.60,000
Internet www.facebook.com www.twitter.com www.multiply.com
August 2012
None
Free taste Double shot of Moriga Coffee 47.50x100=4,750 Bite of Ham and Cheese Sandwich 15.00x100=1,500
August 2012 Within the establishment vicinity.
Php.6,250
Total
Php.146,250
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Advertising is the most familiar component of the promotional mix. Herbrew Caf uses the two categories of advertising. First is the Print Advertising, we are going to post some tarpaulins and give some flyers in our target customer. The text or copy of our ad describes the product of our company and the words that we are going to use encourage the readers to buy our product. Second is the Broadcast Advertising, we are going to advertise our product through radio which is not expensive as television advertising and it is often to use to and reach large groups of our potential customer because people listen to radio in their cars, at work and at home. When Internet came this is also a way to promote our product and customer wants fast information. Internet is directing customer attention to new sellers of product. We promote it through facebook, twitter and we also have free tasting outside our establishment for them to try our product.
I. Service and Customer Relationship The most important goal of the Herb Brew Caf to provide long term relation with the customers that will continue buying the product and service offered by the company. In that way we have a chance to recommending it to others. The company wants to meet this goal, we need to build a strong reputation to the customers with a unique service, and give discount to the senior citizen. Our employees are like friend to the customers but at the same time they know about the standards of hygiene and cleanliness and personal grooming. We provide a novice- friendly environment. Herb Brew Cafe will be staffed by knowledgeable employees focused on serving the customers need. They greet the customers with a smile and treat the customers as a king and queen.
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CHAPTER IV OPERATIONAL PLAN
A. Purchasing
Purchasing refers to a business or organization attempting for acquiring goods or services to accomplish the goals of the enterprise. Through there are several organization that attempt to set standards in the purchasing process, process can vary greatly between organizations. (en.wikipedia.org/wiki/purchasing)
Herb Brew Caf use Purchase Order or Market Order as communication tools between purchasing and production. They serve as a periodic record of the production area this rationalizing the ordering and purchasing activity. Purchase Order (PO for short) is tools designed to help the purchaser in determining which ingredients would be purchased at what quantity, with what quality and at what price. This is very important to the establishment because as production and management tools, it serve several purposes. This Purchase Order will serve for the supplies, equipment and other similar goods for coffee house accomplishment.
The Purchase Order is usually done in triplicate or three copies. The original copy is sent to the vendor or supplier. The second copy is given to the receiving or Food and Beverage Department. The receiving clerk will use the copy of the purchase order to check and compare the delivery of goods by the supplier. The third copy is usually an accounting copy which is used for recording purposes and payment of invoices to suppliers.
More often than we purchase from a supplier that provides as with the lowest prices. Sometimes on the other hand, there are suppliers that may be a bit more expensive but provides better quality or provides special services like delivery, offer payment terms (every half and last day of the month) or even simply because they can
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be relied on. Finding the best supplier is no easy task but it is always worth the effort. Herb Brew Caf will be considered the buying guide purchasing 5Rs. These are: Buy in the Right Quantity- buy quantities based on operations needs and balance stocks to avoid storage cost, wastage, pilferage and too much many tied up in the store room. Buy the Right Quality- the right quality is not always the best qualities. The right quality is that determined by the needs of operations and communicated through food specification. Buy at the Right Time- delivery schedules are very important part of effective purchasing. All purchasing orders should be made implemented in such a way that these are made available in time when needed. Buy at the Right Price- Price is the major factor for purchase decision. For most of the people, price comes first from the quality. Buy from the Right Source- Allocation factor are dependent upon the source. The product must be safe and comes from sure sources. Must also be able to deliver what they promise 100% of the time.
Effective purchasing paves the way for a successful food and beverage service operation. Purchasing is highly skilled activity requiring knowledge of products and market conditions. Herb Brew Caf have some guidelines in buying from approved sources, these are: Always purchase food that is safe and wholesome. Something wholesome is favorable to or promotes health. Reputable supplier must deliver food products in vehicles that are clean and good repair. The vehicles should keep perishable foods at safe temperatures during transport. Reputable suppliers keep food products separate from general supplies. Suppliers must protect food packages from damage.
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Prices of Raw Materials
Ingredients Coffee Coffee bean Nestle Milk Sugar Cinnamon Anchor Whipped Cream Hersheys Chocolate syrup Nestle instant Coffee Vanilla Chocolate Nestle Ice cream Coffee mate Mr. Gulaman Sandwiches Pure foods bacon Pure foods ham Gardenia bread Mayonnaise Tomato Eden Cheese Lettuce Egg Pickles Onion Chicken Salt Pepper
Price 206.00 77.00 46.00 14.80 336.25 206.75 77.25 29.00 43.50 170.00 89.00 11.50
180.00 102.00 59.50 632.00 100.00 43.00 180.00 135.00 116.00 90.00 110.00 31.25 12.75
Nestle Philippines in Brgy. Bagong Pook, San Vicente and Magnolia in Brgy. Pinagtung-ulan, Lipa City are one of the suppliers of Herb Brew Caf in terms of coffee raw materials. They have a capability to provide all raw materials that we need in making our products both coffee and sandwich.
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B. Receiving
The receiving function is critical because at this control point, ownership of the products is transferred from the suppliers to vendor to the operation. Receiving comes into focus after the menu has been planned and the products dictated by the menu have been purchased. The objectives of the receiving function include inspecting deliveries to evaluate the quality and determine the quantity of the products, checking prices and arriving at an acceptance or reject decision.
The manager or Food and Beverage Supervisor is usually in- charge of receiving. For receiving products must carefully inspect all incoming food supplies to make sure they are in sound condition, free from filth or spoilage and are at the proper temperature. A proper trained receiver knows what to do when there is a problem with product deliveries. They need to observe food for color, texture and visual evidence of spoilage. Proper receiving facilities are essential to the attainment of the establishments sanitation, quality and cost standard. Receiving facilities include inside and outside areas surrounding, the loading dock and the backdoor.
Proper Receiving is required to Avoid: Theft Acceptance of underweight merchandise Contamination Waste Acceptance of products that do not meet specification
The Receiving Process: Inspect the delivery and check it against the purchase order. Inspect the delivery against the invoice. Accept order only if specification are met.
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Complete receiving records. Immediate place goods in appropriate storage.
C. Storage Management
Herb Brew Caf aims to provide a safe inventory. Foods must be stored in a clean sanitized area, storage system is responsible for letting the management know whats on hand and will use FIFO (First In, First Out) to avoid waist and spoilage.
Dry Storage
Criteria for Dry Storage It is at ambient temperature (not get too hot nor is too humid) and is where shelf stable foods, packaging, plastic and paper products are kept. The dry storage area of your business is where stocks of cereals, flour, rice, dried pasta, fruit and vegetables, tinned products and packaged foods are kept that do not require temperature control. Food storage areas must be clean and well maintained. The storage area needs to be dry, cool, well-lit, ventilated and vermin-proof. Foods must be protected from exposure to moisture and direct sunlight. The dry food storage areas should be appropriately labeled and different food groups stored separately. Foods must be stored well away from chemicals and cleaning equipment. Foods must be stored such that cross contamination from physical, chemical or biological contaminants is prevented. Foods must be stored off the floor, on shelving or in cupboards so that you can clean around it. Packaged foods which have been opened must be stored in clean, non-toxic, food grade, pest proof containers with tight fitting lids or are wrapped in protective packaging (such as foil, plastic food wrap, grease proof paper etc). They then need to be properly labeled and dated.
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When receiving foods you must check that the packaging is intact and undamaged and the food is within its use-by-date. Any food out of date or packaging that is damaged should be returned to the supplier. Foods should be labeled with the receive date prior to storage and then rotated on a first in, first out basis. Make sure food is stored according to manufacturers instructions. Food spills should be cleaned up promptly to minimize the attraction of pests and to reduce the risk of contamination. If pests are sighted it is important that they are deterred and eradicated as soon as possible. Signs of pest activity include droppings, eggs, webs, feathers, and smells. Make sure staff adhere to good housekeeping practices and visually inspect products for signs of damage, contamination or spoilage.
Monitoring Make sure you check the condition of the dry store as well as the dry foods daily. If there are any damaged, contaminated, spoiled or out-of-date products it is important that they are thrown away. Monitor and record the pest activity and your control measures as per the instructions in your Food Safety Program.
Management should strive for the following: Dry food storage temperature meets FDA or state standards (usually a maximum of 50-70F). Dry food storage areas kept dry, clean, and are well lighted and ventilated. Dry food storage has a two-foot ceiling clearance to avoid high temperatures at ceiling. Dry food stock rotation follows the FIFO principle.
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Working containers holding dry food or ingredients that are removed from their original packages are identified with the common name of the food, unless the food is easily recognizable such as dry pasta. All discarded dry food is recorded with food item, amount, date, and reason. Staff receives training on the proper dry food storage time and temperature. Storage area is kept clean, secure, and is inspected regularly. Only food purchased from approved vendors is stored in dry storage. There are separate storage compartments for chemical storage. Personnel look for and follow best before dates. They also honor store in a cool dry place or keep in the refrigerator once opened. (Note: Best before dates mean personnel must look for additional instructions on the label; best before dates also mean the item is no longer at its best quality but may still be safe to eat.)
Refrigerated Storage
Criteria for Refrigerator Storage Refrigerator storage temperature meets FDA or state standards (usually a maximum of 35-41F) and is recorded once each shift. Refrigerators are used for short-term storage (usually a maximum of 7 days). Food storage procedures are followed to diminish environmental and crosscontamination. (example: All foods are covered and raw meat items are stored below cooked items.) Refrigerator storage areas meet FDA or state standards (e.g. 6 inches off the floor, clean, slatted shelving). Ready-to-eat refrigerated foods are labeled according to FDA or state standards (e.g. the date or day by which the food should be consumed, sold, or discarded). Refrigerated ready-to-eat food that is not labeled is discarded. Staff receives training on the proper refrigerator storage time and temperature.
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All discarded refrigerated food is recorded with food item, amount, date, and reason. Blast chillers, if available, are used to quickly cool foods to safe refrigeration temperatures. Refrigeration unit is cleaned and inspected on a regular basis. Only food purchased from approved vendors is refrigerated. Refrigerated food stock rotation follows the FIFO (first in, first out) principle. Personnel look for and follow Use by dates. (For example: Use by dates mean that a product cannot be used after that date, even if it appears and smells good. Products can be safely frozen before the use by date.)
Criteria for Freezer Storage Freezer storage temperature meets FDA or state standards (usually a minimum of -10-0F) and is recorded once each shift. Freezers are used for long-term storage and not used for cooling foods. Freezer storage areas are designed and maintained to promote proper air circulation. Frozen food stock rotation follows the FIFO principle. Staff receives training on the proper freezer storage time and temperature. All discarded frozen food is recorded with food item, amount, date, and reason. Freezers are cleaned and inspected on a regular basis. Only food purchased from approved vendors is frozen.
Maximizing Shelf Life Check that your refrigerator is operating correctly. To do this you should use a refrigerator thermometer. These are available from some supermarkets, hardware and department stores. Your thermometer should show a temperature below 5 C in the main section of the refrigerator.
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Avoid crowding stored products in the refrigerator; ensure good air circulation around each item. Proper storage not only keeps your food in good condition and safe from the growth of food poisoning bacteria, but saves you shopping time and money because it reduces waste.
D. Menu Planning
Menu planning is the advanced planning of the menu for the next few days, or even the entire month. Complete menu planning involves planning the meals to be prepared, as well as the items needed to be purchased to prepare them. Herb Brew Caf target markets are both male and female of all ages. We all know that coffee is one of the most popular beverages in the Philippines.
Process in Making Coffee
Raw Material Acquisition
Purchasing Receiving Storage Issuing
Production
Mise-en-place Preparation Presentation Packaging

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All of the ingredient to be needed in making variety of coffee will be purchase at Nestle Philippines in Brgy. Bagong Pook, San Vicente, Lipa City, Batangas.
Machine and Equipment
Supplier: Conlins Coffee Company Location: 2753 Park Ave., Pasay City, Metro Manila Contact #: (632) 551-3216/ 831-2729 Website: www.conlins.com
Items Espresso Machine with Coffee Grinder
Quantity 1
Specification Roncillo Epoca I
Unit Cost 145,000
Amount 145,000
Blender
Model KX767
8,500
17,000
Coffee Maker
Cusinart coffee maker Black Chrome series
4,000
4,000
Ice Maker Machine
Hiskage AC250
105,000
105,000
Coffee Paper Filter
250 pcs. Aero Coffee Filter
587
1,174
Total
272,174.00
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Tools and Equipment
Supplier: Willy and Sons Corporation Location: Esteban Mayo Street, Lipa City, Batangas Contact #: (043) 312- 2518
Items Refrigerator
Quantity 1
Specification 2 door LG 17 cu. ft.
Unit Cost 31,600
Amount 31,600
Oven Toaster
La Germania
1,900
3,800
Measuring Cup
Hope sun
136
272
Measuring Spoon
Cuisipiro
97
194
Cup and Saucer
50
125
6,250
Shot Glass
25
125
Air Conditioner
62,000
124,000
Total
166,241
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Furniture and Fixtures
Supplier: SYLPULJOYCE Furniture, Lights and Dcor Location: Sabang, Lipa City Contact: (043) 756-7903 Items Office Table Swivel Chair Filling Cabinet Chairs Table Sofa with Table Total Supplier: Robinsons Lipa Location: J.P. Laurel, Mataas na Lupa, Lipa City Contact: Quantity 3 3 3 35 6 2 Specification Unit Cost 4,266.70 2,666.70 9,431.30 1,500 3,066.70 14,000 Amount 12,800 8,000 28,294 52,500 18,400 28,000 147,994
Items Cups with lead Cups with lead Paper Bags Straw Total
Quantity 30pack 30pack 1000pcs 20pack
Specification Paper Plastic
Unit Cost 45 35 3 15
Amount 1,350 1,050 3,000 300 5,700
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Supplier: Del Nor Marketing Location: Morada Avenue, Lipa City, Batangas Contact #: (043) 756-2730 Items Quantity 2 Bond Paper 10 Ball pen 20 Folder 20 Envelope 599.50 Total 3.00 60 3.25 65 6.25 62.50 Specification Unit Cost 206 Amount 412
E. Employees Uniform
Herb Brew's employees and staffs must wear their proper and clean uniform. Uniforms build brand awareness, respect and team spirit. Work clothes of the employees use to distinguish them to their establishment to other establishment. They can also help distinguish an employees position. Herb Brew's employees and staff wear a light green polo shirt, black pants, and black flat shoes. They must wear an apron and hairnets to help prevent food contamination. And also a disposable gloves specially in preparing sandwiches.
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Employees Uniform
E. Design and Layout Facility design and layout is an important component of a businesss overall operations. Facility layout is the physical arrangement of everything needed for the product or service, including machines, personnel, raw materials and finished goods.
The commercial zone premises have the necessary water and electricity hookups and will require only minor remodeling to accommodate the espresso bar, kitchen and storage area. Their coffee house open and clean interior design will convey the quality of the served beverages and snacks, and will be in line with the establishments positioning as an electric place where people can relax and enjoy their cup of coffee. The clear window displays, through which passerby will be able to see customers enjoying their beverages, and outside electric signs will be aimed to grab the attention of the customer traffic. Herb Brew Caf has its own architecture and dcor like
largely wood and granite based interior with colors of today. The literature provided by the Herb Brew Caf is indicative of its youthful image. The menus, posters and pamphlets are all designed to attract young and young at heart.
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Perspective
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Projected Sales for the First Year (per day)

Hot Beverages Number of Customers Espresso Kape Americano Kape Latte Caramel Macchiato 15 15 10 20 Php.40.00 Php.45.00 Php.65.00 Php.100.00 Php.600.00 Php.675.00 Php.650.00 Php.2,000,00 Price Total
Cold Cofee Iced Kape Latte Coffee Shake Iced Kappuccino Iced Mocha Iced Vanilla Coffee 10 15 11 13 17 Php.85.00 Php.85.00 Php.90.00 Php.90.00 Php.95.00 Php.850.00 Php.1,275.00 Php.990.00 Php.1,170.00 Php.1,615.00
Herbal Coffee Pandan Brewed Coffee Moringa Coffee 10 9 Php.40.00 Php.190.00 Php.400.00 Php.1,170.00
Sandwiches Ham and Cheese Sandwich Egg Sandwich Bacon Sandwich Clubhouse Sandwich Juices Orange Juice Pineapple Juice Buko Juice 40 35 42 Php.25.00 Php.25.00 Php.25.00 Php.1,000.00 Php.875.00 Php.1,050.00 25 31 29 Php.40.00 Php.110.00 Php.110.00 Php.1,000.00 Php.3,410.00 Php.4,290.00 27 Php.30.00 Php.810.00
Total
Php.24,370.00
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Schedule 2 SALES REVENUE
1
Projected sales per day (schedule 1) Multiply by: working days in a year Projected Sales Revenue 24,370.00 360 8, 773,200
2
29,244.00 360 10,527,840
3
35,092.80 360 12,633,408
Schedule 3 COST OFSALES
1
Total Sale Revenue Dived by: Mark up of 35% above cost Projected Cost of Sale 8,772,200 1.35 6,498,666.60
2
10,527,840 1.35 7,798,400
3
35,092.80 1.35 9,358,080
Schedule 4 DEPRECIATION EXPENSE

Cost Useful Life Annual Depreciation
Land Improvement Machinery and Equipment Furniture and Fixture
4, 650, 000 376,290 207,519
40 10 5
116, 250.00 37,629.00 1,503.80
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Chapter V Financial Plan Initial Capital Requirement Initially the business will require a total amount of amount of Php. 5,893,560.77 enough to cover all its operating costs and expenses on the first year of operation. It will be contributed equally by the partners. Sources of Financing The total capital of the business is Php. 5,893,560.77. An amount is to be provided by the shareholders. The amount that they need to provide is Php. 982,260.13. Major Financial Assumptions Sales assumed to increase of 10% annually. The Cost of Sales assumed 65% of Gross Sales. The Salaries and Wages are assumed to increase by 5% annually. Fringe Benefits assumed 10% of Salaries and Wages. Taxes and Licenses are assumed 2.5% of Gross Sales. Supplies Expense is assumed to increase 10% annually. Advertising Expense is assumed to increase 10%annually. Miscellaneous Expense is assumed to increase 10% annually. Repairs and Maintenance is assumed to increase 10% annually. There will be 360 working days in a year.
Project Cost Requirements
Raising capital to organize a new firm is important in the operations of the business. Thus, the researchers should work the most adaptable financing scheme for the project. The projected cost requirement is based on the one month period of operation. The business will need a capital investment of Php.5, 893, 560.77
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Particulars Land Improvement Kitchen Equipment & Utensils Furniture and Fixtures Cost of sales Operating Expenses Salaries and Wages Fringe Benefits Depreciation Expense Registration Expenses Taxes & Licenses Supplies Expenses Advertising Expense Miscellaneous Expense Repair & Maintenance Total Projected Cost
Amount 4,650,000.00 434,290.00 147,994.00 475,215.00
105,300.00 10,530.00 22,079.62 8,079.17 18,277.50 7,254.00 12,187.50 1,250.00 1,103.98 5,893,560.77
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Herb Brew Caf Projected Income Statement For Three Years
Year 1 Sales 8,773,200.00 5,702,580.00 Less: Cost of Sales Less: Operating Expenses Salaries and Wages Fringe Benefits Depreciation Expense Registration Expense Taxes and Licenses Supplies Expense Advertising Expense Miscellaneous Expense Repair and Maintenance Total Operating Expenses 1,263,600.00 126,360.00 193,705.47 96,950.00 219,330.00 87,048.00 146,250.00 15,000.00 9,685.27 2,157,928.74
Year 2 10,133,046.00 6,586,479.90
Year 3 11,703,668.13 7,607,384.28
1,326,780.00 132,678.00 193,705.47
1,393,119.00 139,311.90 193,705.47
253,326.15 95,752.80 160.875.00 16,500.00 10,653.80 2,190,271.22
292,591.70 105,328.08 176,962.50 181,500.00 11,719.18 2,330,887.83
Net Income Before Tax Less: Provision for Income Tax Income after Tax Net
912,691.26 292,061.20 620,630.06
1,356,294.88 434,014.36 922,280.52
1,765,396.01 564,926.72 1,200,469.29
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Herb Brew Cafe Projected Balance Sheet For Three years

Year 1 Assets Current Assets Cash Account Receivable Inventory Total Current Assets Year 2 Year 3
899,440.42 43,866.00 28,512.90 971,819.32
2,042,528.98 50,665.23 32,932.40 2,126,126.61
3,459,746.33 58,518.34 38,036.92 3,556,301.59
Property and Equipment Land improvement Kitchen Utensils & Equipment Furnitures & Fixtures Total Less: Acc. Depreciation Net Property and Equipment TOTAL ASSETS 4,650,000.00 376,290.00 207,519.00 5,233,809.00 193,705.47 5,040,103.53 6,011,922.86 4,650,000.00 376,290.00 207,519.00 5,233,809.00 387,410.94 4,846,398.06 6,972,524.67 4,650,000.00 376,290.00 207,519.00 5,233,809.00 581,116.41 4,652,692.59 8,208,994.18
Liabilities and Equity Current Liabilities Vat Payable Income Tax Payable Total Current Liabilities 18,277.50 73,015.30 91,292.80 21,110.51 108,503.59 129,614.10 24,382.64 141,231.68 165,614.32
Stock Holders Equity Paid-Up Capital Add: Retained Earnings Total Stock Holders Equity
5,300,000.00 620,630 5,920,630.06
5,300,000.00 1,542,910.57 6,842,910.57
5,300,000.00 2,743,379.86 8,043,379.86
TOTAL LIABILITIES AND STOCK HOLDERS EQUITY
6,011,922.86
6,972,524.68
8,208,994.19
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Herb Brew Caf Projected Cash Flow For Three years

Year 1 Year 2 Year 3
Cash Inflow Cash Balance, Beg. Add: Cash Receipts From Equity From Operation Net Income Add: Non Cash Expense Depreciation Increase in Current Liabilities Total 193,705.47 91,292.80 905,628.33 193,705.47 38,321.30 1,154,307.29 193,705.47 36,000.22 1,430,201.98 620,630.06 922,280.52 1,200,496.29 5,300,000.00 899,440.42 2,042,528.98
Total Cash Receipts Total Cash Available for Use
6,205,628.33 6,205,628.33
1,154,307.29 1,154,307.29
1,403,201.98 1,403,201.98
Less: Cash Disbursement Land Improvement Kitchen Utensils and Equipment Furnitures & Fixtures Increase in Non-Cash Current Assets Total Cash Balance End 4,650,000.00 376,290.00 207,519.00 72,378.90 5,306,187.90 899,440.42 11,218.73 11,218.73 2,042,528.98 12,957.63 12,957.63 3,432,773.33
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Financial Analysis
Test of Liquidity Ratio
Current Ratio
Current Asset Current Liabilities
Current Ratio Year 1 2 3 Total Liabilities 971,819.80 2,126,126.61 3,556,301.59 Total Assets 91,292.80 129,614.10 165,614.32 Debt Ratio 10.7 16.4 21.5
Current ratio measures the short term debt paying ability of the firm. The company shows an increasing current ratio from 10.7 during the first year up to 21.5 during the third year. This increasing ratio might indicate an improving financial situation and liquidity of the business.
Test of Profitability
Net Profit Margin =
Net Income Net Sales
Net Profit Margin Year 1 2 3 Net Income 912,691.26 1,356,294.88 1,765,396.01 Net Sales 8,773,200.00 10,133,046.00 11,703,668.13 Net Profit Margin 0.10 0.13 0.15
The increasing trends of the ratio presented above means that business has the ability to operate with sufficient success not only in recovering cost from revenue during
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the three years projection period but in leaving a margin of reasonable compensation to the owners for providing their capital at risk.
Operating Net Profit Margin
Income before Tax Sales
Operating Net Profit Margin Year 1 2 3 Net Income 620,630.06 922,280.52 1,200,469.29 Net Sales 8,773,200.00 10,133,046.00 11,703,668.13 Net Profit Margin 0.07 0.09 0.10
This means for every peso invented the owner will have a return of 0.10 on the investment. Through the business is newly established, the researchers can expect a relatively high return on investment. The ratio has increasing trend because of the increase in the sales.
Debt Ratio
Total Liabilities Total Assets
Debt Ratio Year 1 2 3 Total Liabilities 91,292.80 129,614.10 165,614.32 Total Assets 6,011,922.86 6,972,524.67 8,208,994.18 Debt Ratio 0.015 0.018 0.020
Debt ratio measures the proportion of all assets that is financed with debt. The debt ratio during the first year of operation is 15% while on the second year is 18% and it continuous to decrease until third year.
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Equity Ratio Equity Ratio Year 1 2 3
Total Equity Total Assets
Total Equity 5,920,630.06 6,842,910.57 8,043,379.86
Total Assets 6,011,922.86 6,972,524.67 8,208,994.18
Equity Ratio 0.99 0.98 0.97
Equity ratio indicates the proportion of assets provided by the owners.
Debt to Equity Ratio =
Total Liabilities Total Equity
Debt to Equity Ratio Year 1 2 3 Total Liabilities 91,292.80 129,614.10 165,614.32 Total Equity 5,920,630.06 6,842,910.57 8,043,379.86 Debt Ratio 0.015 0.018 0.020
Debt to equity ratio measures the riskiness of the firms capital structure in terms of relationship between the funds by the creditor and investors.
Capital Recovery Payback Period= Initial Investment Cash Inflow
Year 1 2 3
Cost to be Recovered 5,893,560.77
Net cash Inflow 899,440.42 1,143,088.56 1,417,217
Balance 4,994,120.35 3,851,031.79 2,433,814.44
Payback Year 4 years 3 years 2 years
The payback period measures the length of the time within which the amount of the initial investment is to recover.
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Chapter I-5

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Chapter I Industry Analysis

B. Socio- Cultural trends

Urban and Rural Distribution

E. Political- Legal trends

Chapter II Management Plan

C. Organizational Chart Herb Brew Caf

General Manager Food and Beverage Supervisor

Duties and Responsibilities

Food and Beverage Supervisor

General Manager Marketing Supervisor

Php15, 000 Php12, 000

Freelance Contractual Contractual Contractual Regular Regular Regular

Php800 Php310 Php310 Php310 Php310 Php310 Php310

Total Man Power Salary/ Month Php153, 000

Budget General Manager Leadership Training Php. 3, 000

Barista Barista Training and Seminar Php. 3,000 February 2013

Learn the art of presentation for a wide variety of coffee drinks.

Security Security Service Training Php. 2, 000 February 2013

Chapter III Marketing Plan

Special Features Highest

SM City Lipa Ayala Highway, Balintawak, Lipa City

coffee Php.180.00 Php.80.00

provider and they also offer cakes and pastries.

San Carlos drive, Mataas na Lupa, Lipa City

offer Php.140.00 Php.80.00

coffee, cakes and pastries.

SM City Lipa Ayala Highway, Balintawak, Lipa City

Hotel ni Mang Jose Ayala Highway, Balintawak, Lipa City

unique Php.120.00 Php.60.00

coffee and pastries to the guest.

Robinsons Place, JP, Laurel Mataas na Lupa, Lipa City

Fast food chain that offers hot coffee and

Mataas na Lupa , Lipa City

Fast food chain that offers hot coffee and

Robinsons Place JP Laurel Mataas na Lupa, Lipa City

Offers coffee, hot chocolate donuts. and

SM City Lipa Ayala Highway, Balintawak, Lipa City

Offers simple coffee and pastries.

Herb Brew Caf

Mataas na Lupa, Lipa City

Herb Brew Caf Location Map

Lipa City Proper

Rotonda Bus Stop Big Ben

Batangas City Proper

15, 000 x 310 square meter = Php4, 650, 000

Product Health Benefits

Herb Brew Caf Menu Price List

Juices Orange Juice Pineapple Juice Buko Juice

Php.25.00 Php.25.00 Php.25.00

Cost of Ingredient use

Cost of Ingredient use

Coffee/ espresso 150 g 260/k 39.00 600 g 260/k 156.00

Cost per serving= Php.156.00 12 = Php.13.00

Selling Price= Php.13.00 .35 = Php.37.14/ 40.00

Recipe Cost Sheet

Unit of Measure g g oz.

Unit Price 260/k 260/k

Cost of Ingredient use 59.74 2.99

Unit Price 206/k 46/k

Cost of Ingredient use 179.22 8.97

Coffee/ espresso sugar water

870 195 72 Total

Cost per serving= Php.188.19 12 = 15.68