Coffee shop business plan

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Graduate School Chapter I BACKGROUND OF THE BUSINESS AND INDUSTRY Introduction Filipino people are coffee lovers. Remember how everyone keeps drinking hot coffee even though the country is naturally hot, even on rainy season, which is because they cannot help themselves, but take that cup of coffee. For many Filipinos, coffee is life. No wonder the coffee and frappe industry is continuously striving right now. Incidentally, 70% of the 88,000 metric tons of coffee that is produced every year in the Philippines goes to instant coffee production and most of it is reserved for local consumption. Yes, the Philippines has always had a strong coffee culture, but it has been a coffee culture that is more for mass production and that which is often related to practices that are opposite of the ethos of specialty coffee. The high demand for coffee nationally easily explains that culture. On the demand side, an average Filipino would probably be more willing to purchase instant coffee and ‘3-in-1’ coffees because good coffee comes at a price. A sachet of instant coffee from the local “sari-sari” store costs around Php 5.00 - 8.00, while an espresso or filter coffee from a specialty coffee shop costs around Php 90.00 – 160.00. Filipinos who belong to the middle and upper socioeconomic class tend to be the major

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Graduate School purchasers of specialty coffee. The majority of the country is considered to be living at the poverty line or below it so the instant coffee consumer trends make sense. Coffee has always been inextricably woven into the fabric of Filipino culture. With the emergence of instant coffee and coffee shops, coffee making has never been easier. Most people wake up in the morning and reach for their cups to be filled in with this warm or cold drink which they can’t start their day without having. However, drinking this delighting treat isn’t always confined during mornings. It could actually be drank regardless the time of the day or even depending on one’s mood. Nowadays, emergence of coffee houses all over the country continues to proliferate. Typical café offers most common types of coffee such as Americano, Cappucino, Latte and Espresso, complemented with cakes and pastries. Coffee houses today are coined “third wave”, as this means that coffee is made out of high-quality beans and are meant to be appreciated like fine wine. Hence, these cafés are usually established in urban and suburban districts where nearby colleges/universities and business organizations/offices exist.

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Graduate School All of the specialty coffee shops opened up their doors to the public and have been very transparent with their coffee origins. You will find the coveted beans from Ethiopia, Brazil and even the highland coffees of Panama. You won’t simply find a third wave espresso culture, but a variety of filter brewing options such as Hario V60s, Kalitas, AeroPress, Clovers and so forth. These specialty coffee shops pride themselves on their standards of quality and consistent roasting whether light or medium roast. Like in many other specialty coffee scenes around the world, you can also find public cuppings to evaluate roasts and flavour profiles. Since then, the province of Batangas has also been known for coffee production, i.e “kapeng barako”, a Liberica type of coffee. However, all of the established cafés offer this Batangas brew and frappe in a very high price so the proponent had an idea of establishing a coffee shop that would provide various coffee blends and pastries. Brief Background of the Study From a cultural standpoint, coffee houses largely serve as centers of social interaction: the coffee house provides patrons with a place to congregate, talk, read, write, entertain one another, or pass the time, whether

10 individually or in small groups. Since the development of Wi-Fi, coffee houses with this capability have also become places for patrons to access the Internet

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Graduate School on their cellphones, laptops and tablet computers. A coffee house can serve as an informal club for its regular members.

In places like Batangas, where industrial opportunities are present and at Among others, Bauan, Taal, Mabini, Lemery, Alitagtag and Batangas City, are places which are frequently visited by the travelers in the province. On the other hand, the town of San Pascual, known for booming business opportunities, interconnects and provides access to the abovementioned localities. The ever Batangueños’ pride“ Kapeng Barako” make the travelers and/or tourists and visitors of Batangas wants to try it. However, very seldom do these travelers get a chance to experience a cup of brewed kapeng barako passionately and exclusively prepared by true Batangueños in its hometown. To cater to this need, Sofee’s Cake and Coffee which would be expanded in San Pascual shall then provide peace of mind through great ambience, convenient location, friendly customer service, and products of consistently high quality like the famous Kapeng Barako, frappe and pastries in this coffee house. This too shall provide job opportunities to fellow Batangueños.

12 In this café you can read books, surf the net, color some sophisticated coloring books and have chitchat with workmates or friends

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Graduate School to relieve stress and gives unwinding experiences for those who would like to take a break from their work places and academic endeavors, and where groups of people can enjoy together the light snacks and beverages. Vision Sofee’s Cake and Coffee envisions to become the leading cake and coffee shop in the province taking into account the mood of consumer. Mission Sofee’s Cake and Coffee will make its best effort to 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, frappe and pastries with affordable price. We will be in the business of helping our customers to relieve their daily stresses by providing peace of mind through great ambience, convenient location, friendly customer service, and products of consistently high quality. Goals and Objectives Its goal is to gain a repeat set of loyal customer base as it offers them excellent products and efficient service at all times through a pleasant, welcoming atmosphere, while maintaining an empowered staff in a respectful workplace, controlling costs both in production and operations, sustaining profit margins, and fostering the charm and well-being of our community.

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Graduate School Sofee’s Cake and Coffees objectives are: a)

To offer and serve the best coffee, frappe and pastries in

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affordable price. Use the quality of our service and advertising to soon become well-known throughout Batangas.

c)

To aim for a 20% rate-of-return on investment for the first 6 months and even higher for the succeeding years

d)

To monitor the coffee shop processes periodically by using customer feedback survey questionnaires in order to handle positively the challenge/s if need to

e)

To employ driven crews and continually train them (at least once in 6 months) for utmost competency in their assigned functions

f)

To help our customers relieve their daily stresses by providing peace of mind through great ambiance, convenient location, friendly customer service, and products of consistently high quality.

g)

To earn the coffee patrons’ trust by engaging in any community worthwhile endeavors and participating in charitable missions at least once a year.

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Graduate School Growth Potential Usually, growth of coffee shop industry can be measured in terms of local and international expansion. Established coffee houses like Starbucks and Bo’s Coffee indeed are some of those which have penetrated the global market through their significant business strategies.

One of the keys to success of Sofee’s cake and Coffee shall be its ability to offer very affordable brewed coffee, frappe and pastries. In addition, Sofee’s Cake and Coffee shall take advantage of its target location of high-traffic, high visibility centers where people are just around the corners.

Committed to its vision and mission, the coffee shop shall strive to offer comfortable and relaxing environment at a very affordable price.. Thus, this strategy shall drive more and more customers toward the coffee house. Through word-of-mouth, soon, Sofee’s Cake and Coffee shall be known for the best coffee shop which could result to local expansion and might as well play too in the global arena. R&D shall play a very significant role in this endeavor.