BSM - kape inside™

Don Bosco College Canlubang

AY 2010-11

1st Sem.

Feasibility Study Basic Shop Management

By: John Armand A. Negrite

and

Franz Julius D. Sambrano

I. INTRODUCTION

This feasibility study was prepared by these two students, John Armand A.

Negrite and Franz Julius D. Sambrano from Don Bosco College Canlubang in partial

fulfillment of the course requirement in Basic Shop Management 101. All that is

included in this study will serve as a reference tool for every student who will

encounter this kind of study. When we graduate, we will be able to use this study

to guide us and serve as an example for planning such business.

A. Logo of the Business

B. The Concept

The “kape inside™” is a native culture of people in Laguna with interesting

flavor and aroma of exclusively made up of products of the establishment

especially that is made up of rice. “kape inside™” is designed with techno

artworks to add up for the modern Lagunian concept. It is composed of stall-

like facility coffeehouse. “kape inside™” will be located along Don Bosco

College Canlubang.

C. The Professional Planning Development Team

Name: John Armand A. Negrite

Position: Owner

Educational Background:

Tertiary Don Bosco College Canlubang

Secondary Quezon Central Institute

Primary Cometa Elementary School

Name: Franz Julius D. Sambrano

Position: Owner

Educational Background:

Tertiary Don Bosco College Canlubang

Secondary Don Bosco College Canlubang

Primary Laguna College of Business Arts

II. EXECUTIVE SUMMARY

A. The Name

The establishment categorized as coffeehouse, used the term “kape

inside™” which means a techno store that supplies coffee with exquisite flavor

and aroma.

B. The Logo

The logo represents being techno lover. The word “inside” symbolizes the

flavor and lovable smell of the coffee within it. And the word “kape” denotes of

course the coffee.

C. Location of the Firm

Our coffeehouse is located in front of Don Bosco College Canlubang which is

accessible and open to a lot of establishments. The location gives the

coffeehouse a friendly and pleasant appeal marketing itself as the choice of

people to relax and be simply entertained from the flurry of the city.

D. Brief Description of the Project

The coffeehouse will mainly be serving the costumers from 7:00 AM to

10:00 PM from Monday to Sunday. It is a stall-like neighbourhood coffeehouse,

a café, a one-stop shop, a meeting place designed to for all conscious

individuals focused on techno-world. In addition, to what is expected in today's

shops, such as Wi-Fi, a warm atmosphere of combo autochthonous and

modern world of Filipinos, environmentally friendly, and a variety of coffees

including organic and fair trade, especially its trademark, the coffee that is

infused with rice.

III. MANAGEMENT FEASIBILITY

A. Employee Salary Schedule

Employee Salary Schedule

Position Rate Monthly Cost Annual Cost

Manager Monthly P 30,000.00 P 360,000.00

Asst. Mngr. Monthly P 25,000.00 P 300,000.00

Supervisor Monthly P 20,000.00 P 240,000.00

Secretary P 400/day P 12,000.00 P 144,000.00

Server (3) P 350/day P 10,500.00 P 126,000.00

Cashier P 333/day P 9,990.00 P 119,880.00

Barista P 366/day P 10,980.00 P 131,760.00

Maintenance P 300/day P 9,000.00 P 108,000.00

B. Labor Code Provision

The commercial group abides by the Labor Code Provision of the state and

severe follows all the laws based on the Labor Code of the Philippines

(Presidential Decree no. 442).

C. Flow of Materials

All food supplies and beverage supplies will be taken in at the receiving

dock, where they will be weighed in and listed on supplies log book. The

materials will be brought to their respective storage areas. There will be 4 main

storage areas: chilled section, frozen section, dry food section and non-food

section. The non- food section is divided into 2 sub- stations, equipment

section and sanitary section. All coffee supplies and ingredients passes through

the preparation area for proper portioning and storage.

Cakes and pastries to be served go directly to the service area through the

pass-thru window or held in the holding cabinets until time to be served. From

the service area, the food is then brought to the customers in the dining area.

D. Flow of Equipment

Newly ordered equipment is secured in the receiving dock, and then stored

in the non-food section in the equipment section. Kitchen utensils and other

equipments are brought to the wash area for cleaning. After washing, cutleries,

coffee cups and glasses will be placed in a cabinet within the service area.

Plates for cakes and pastries will be brought to the kitchen for plating, then to

service area.

E. Flow of Waste

All sections in the storage area as well as the service area and dining area

and the comfort rooms have waste bins strategically located in their respected

areas which are underlined with black plastic garbage bags to facilitate

disposal. Full garbage bags will be brought to the garbage disposal area at the

back of the store where there are garbage containers. These garbage

containers will be cleaned every 2 days for sanitation purposes.

F. Flow of Personnel

1. Service Personnel

All service personnel enter through the rear entrance, punches his

timecards in the Bundy clock, before proceeding to the crew room where

they can change their uniform, then proceed to his task. The reverse

process is followed at the end of their shift.

2. Manager

His arrival time is also logged through the timecard as he enters the

rear entrance. Supervising and checking all the transactions and the

facilities must be done several times during the day to sure that all areas are

completely checked and well-maintained. After his duty, he exits the back

entrance as he logs in his time – out.

G. Flow of Customers

The guests arrived at the parking area and enter through the fore entrance

proceeding in the dining area. Also the fore entrance door will be their exit

door, leaving the coffeehouse.

H. Sanitation

The management has its preventive measures to avoid contamination of

the foods and beverages.

1. Building Construction

The facility should have floors, walls, and ceilings constructed of

suitable, approved materials which are durable, smooth, not responsive and

easily-cleaned. Walls should be light-colored and well-joined, and floors

should be adequately sloped for drainage to trapped outlets. Openings

to outside and/or non-food- processing or non-handling rooms or

facilities must be sealed.

2. Overhead Structures and Lighting

Overhead structures should be situated and constructed to prevent

contamination of the food and beverage products, and lighting is to be

adequate with properly sealed, safety type overhead fixtures.

3. Heating, Ventilation, and Air Conditioning (HVAC)

Systems must be designed and installed to prevent build-up of heat,

steam, condensation, or dust, and to remove contaminated air. HVAC

systems should be designed to be cleanable, and air intakes located to

prevent intake of contaminated air.

4. Drainage and Sewage Systems

Appropriate traps and vents are to be used throughout the facility.

There should be no potential of cross connections existing between human

waste and other wastes in the plant. Appropriate vacuum breakers or air

breaks must be used.

5. Flow-Through Pattern

A well-designed food-processing or well-handling facility is

constructed to minimize traffic to prevent contamination. It is desirable to

have a product flow-through that physically and operationally separates raw

product functions from processing functions and finished product

functions in order to avoid cross-contamination.

6. Hand Washing Facilities

Sufficient numbers of hand-washing sinks, with hot and cold potable

water, soap, sanitary hand drying supplies or devices, must be provided in

washrooms. A sufficient amount of appropriately located hand-washing

sinks is also necessary in food processing and handling areas. Hand-washing

sinks should be separate from sinks used for equipment cleaning and other

operations.

I. Storage

1. Temperature and Humidity Controls

Where appropriate and applicable, the temperature and humidity of

storage rooms for raw materials, ingredients and packaging materials

should be maintained and monitored.

2. Returned Foods

Foods returned from retail outlets must be clearly identified and

stored in a designated area for appropriate disposition. Storage conditions

need be such that the safety of the returned food is not compromised.

IV. MARKET FEASIBILITY

A. Market Description

� Objectives of the Feasibility Study

The following are the objectives of this feasibility study:

1. To determine the resources availability and its accessibility to

produce quality products.

2. To determine if the location is best for the business in order to gain

profit.

3. To know the relationship of demand and supply of the products in the

hands of the market.

4. To determine the marketing strategy of the business in order to

attract the target customers.

5. To compute the total capital requirements and identify the source of

capital.

6. To know the benefit it can give to the individuals within the

community.

B. Users of Services offered by the Firm

� Mission

• To be the coffeehouse of choice for the local Calamba City

community, downtown business workers, tourists who visit the city,

and students, by providing a high-quality experience through serving

the best varieties of brewed coffee specials.

• Recognize that profitability is essential to our future success.

• We will support the farmers who grow our coffee by using Fair Trade,

Sustainable Production and Organic products whenever possible.

• The establishment will provide a "complete high-quality" experience.

The coffeehouse's aim is simple. It will provide a completely

sophisticated, modern yet techno coffeehouse experience for the

visitors who frequent the city's casual dining spots. It will be an

affordable venture for patrons, one that will encourage them to

return on many occasions.

C. Competitiveness of the Firm

“kape inside™” envisions itself to be the leading innovative coffeehouse in

Laguna where the best varieties of coffee specials and excellent service is

experienced while maintaining the goals of the establishment.

D. Advertisements

1. Website

http://www.kape-inside.com.ph

The establishment will have a website done by the computer

specialist to promote the opening of the coffeehouse and to let the end-

users visualize what “kape inside™” looks like, services, features, products

offered and the history of the establishment.

2. Print Materials

These materials will provide information about the establishment and

will serve as an invitation to attract people to visit and experience the high-

quality service of “kape inside™”.

3. Local TV Spots

“kape inside™”will be introduced to the public people through local

channels. Basic information about “kape inside™” will be viewed on

television.

4. Direct Marketing

It involves promoting the establishment through the personnel of

“kape inside™” directly to the customers.

E. Transportation

Means of transportation will be provided by the owners and employees

themselves.

V. TECHNICAL FEASIBILITY

A. The Product

� Brewed Coffee

1. House Coffee

Always fresh, full flavored, never bitter. Choose from our gourmet

coffee varieties of the day.

2. Iced Coffee

A fine, 12 hour, cold water brewing process extracting the natural

delicious flavors of coffee.

3. Café Au Lait

Your choice of any of the above coffees combined with steamed milk

& topped with velvety milk foam.

� Espresso Traditions

1. Cappuccino

Espresso Coffee combined with velvety milk foam.

2. Caffé Latté

Espresso Coffee & steamed milk topped with a milky foam. (iced upon

request)

3. Espresso

A concentrated extract of coffee

� Espresso Specialties

All available hot, iced, or blended

All drinks made with whole milk, nonfat or soy available upon request.

1. Caffé Mocha

Espresso, gourmet chocolate & milk. Topped with real whipped

cream.

2. Very Vanilla Latté

Espresso, gourmet vanilla syrup & milk. Topped with real whipped

cream.

3. Caramel Latté

Espresso, gourmet caramel & milk. Topped with real whipped cream.

4. Mocha Bianca

Espresso, gourmet white chocolate & mango syrups and milk. Topped

with real whipped cream.

5. White Mocha Sunset

Espresso, gourmet white chocolate & milk. Topped with real whipped

cream.

B. Building Facilities and Structure

� Temperature and Humidity

“kape inside™” does have a non-smoking and smoking area and

preferably an air-conditioned coffee house.

� Lighting and Music

A snug-like place filled with techno music with well-lighted bulbs that fits

with its graffiti-painted wall and ceiling.

� Furniture and Furnishings

Some “kape inside™” furniture is an Asian-inspired yet Filipino touch of

artworks. Inside can be found wooden armchairs, service station

cabinets, coffee tables, couches and other selected furniture that go well

with its selected theme. Combinations of nature arts and aboriginal

color paints like, red, orange, black, yellow, and green are used to

emphasize its friendly and relaxing atmosphere.

Examples of Chair

Examples of Table

� Landscaping

“kape inside™” setting is a combination of Filipino and Asian

Artworks. The ambiance will be more inviting and relaxing because of

the brilliant showcases of modern art. The stall-like coffee house

structure is in a form of modernized shapes showing the said concept of

arts. Its outside environment is bounded with a garden-like friendly

ambiance. Below are some examples of the artworks that can be found

inside the coffee house.

Examples of Artwork

Wall Design

Financial Analysis of KOPE-Mix Coffeehouse

The “kape inside™” Coffeehouse Financial Analysis Capital Investment

1. Land P 750,000.00

2. Construction Cost

Building (including all professional fees for designers and

construction labor cost and materials)

P 300,000.00

Floor Area P 250,000.00

Landscaping P 40,000.00

Furniture and Fixtures P 200,000.00

3. Equipment and Utensils

Dining and Kitchen Equipment P 150,000.00

Computer P 60,000.00

Utensils (beverage ware, tableware) P 100,000.00

4. Pre-operating Expenses

Recipe Testing P 25,000.00

Training Expenses P 75,000.00

Pre-opening Marketing Expenses P 20,000.00

Permits P 8,000.00

Building Permit P 15,000.00

City Tax P 35,000.00

5. Planning Cost

Consultants Fee P 200,000.00

6. Working Capital P 400,000.00

TOTAL CAPITAL INVESTMENT P 2,628,000.00

Computation for Food Cost and Beverage Sales

Food P 2,000,000.00

Less VAT and Service Charge P 600,000.00

FOOD COST P 2,600,000.00

Beverages P 1,800,000.00

Less VAT and Service charge P 600,000.00

BEVERAGE COST P 2,400,000.00

Computation for Total Revenue

Food P 10,000,000.00

Beverage P 15,000,000.00 P 25,000,000.00

Cover Charge P 2,000,000.00

Gross Sales P 29,033,000.00

NET SALES (less VAT and Service Charge) P 24,678,050.00

C. Site Location

D. Floor Plan

VI. FINANCIAL FEASIBILITY

Computation for the First Two Years of Operation

EXPENSES FIRST YEAR SECOND YEAR

Salaries and Wages P 5,000,000.00 P 8,000,000.00

Employee Benefits P 1,000,000.00 P 1,000,000.00

Marketing Expenses P 1,000,000.00 P 200,000.00

Utilities

Water P 6,000,000.00 P 8,000,000.00

Electricity P 1,000,000.00 P 1,000,000.00

Gas P 300,000.00 P 300,000.00

Telephone P 20,000.00 P 25,000.00

Repairs and Maintenance P 30,000.00 P 30,000.00

Security P 180,000.00 P 200,000.00

Legal and Professional Fee P 10,000.00 P 10,000.00

General Supplies P 400,000.00 P 400,000.00

Insurance P 300,000.00 P 300.000.00

Depreciation

Building P 2,000,000.00 P 2,000,000.00

Equipment P 500,000.00 P 500,000.00

Utensils P 100,000.00 P 150,000.00

Furniture’s and Fixtures P 400,000.00 P 400,000.00

TOTAL EXPENSES P 17,740,000.00 P 22,215,000.00

Projected Income Statement

FIRST YEAR SECOND YEAR

Gross Sales P 34,000,000.00 P 36,000,000.00

Less: VAT & Service Charge P 6,000,000.00 P 8,000,000.00

Net Sales P 30,000,000.00 P 31,000,000.00

Less: Food & Beverage Cost P 8,000,000.00 P 10,000,000.00

Less: Expenses P 17,000,000.00 P 19,000,000.00

Taxable Income P 9,000,000.00 P 10,000,000.00

Less Taxes P 1,000,000.00 P 2,000,000.00

NET INCOME P 105,000,000.00 P 116,000,000.00

Taxation

Business Tax (Annually) 300.00

Mayor’s Permit 120.00

Application Form 50.00

Business Plate 250.00

Business Sticker 10.00

Police Clearance 70.00

Sanitary Free 40.00

Medical Certification 100.00

Mayor’s Clearance 150.00

Calling Fee 50.00

Inspection 200.00

FCF 220.00

Environmental Sanitation Fee 500.00

Signboard 300.00

Occupational Permit 1000.00

Total amount due P3, 360.00

Occupational Permit:

1000.00 / employee (x 10) 10,000.00

Occupation permit: 70.00

Police Clearance 70.00

Mayor’s Clearance 150.00

Community Tax Certificate 20.00

Medical Certificate 100.00

Drug Test 200.00

VII. SOCIO-ECONOMIC FEASIBILITY

Contribution to the Philippine Economy

The existence of new businesses in the community indicates rapid growth of

Philippine economy. This project will divide something among many a social share

of its profit to the government by means of paying taxes and also through permits,

licenses, and registration paid to the government.

In accumulation, our consumers will also be benefited because of our

affordable services.