University of Santo Tomas

Faculty of Arts and Letters

2 Legal Management 3

COFFEE AT TIFFANY’S
MARKETING PLAN

Submitted by:

BALASOLLA, Mary Jasmin Zennaia

BASBAS, Lorane Angeli

FRANCISCO, Joyce Anne

GAN, Danice

GUEVARRA, Ruth Esther Marie

LEGASPI, Chyles Denise

TENEDERO, Caryl Joy

2LM3

Submitted to:

Mr. Bong Laforga

I. EXECUTIVE SUMMARY

A. Market Research
International

Coffee is one of the world’s most traded commodities, petroleum being the first. There
are approximately 25 million coffee bean farmers and 50 countries who produce coffee like
Brazil and Colombia. 400 billion cups of coffee are consumed each year, which makes it one of
the most popular drinks in the world. In the United States alone, 83% of its population drink
coffee either to relax or to keep themselves awake. Due to its popularity, it is no surprise that
coffee lovers and businessmen venture into the coffee house industry. At present, there are
approximately 24,000 coffee shops in the US. It is expected that in 2015, the coffeehouse
industry in the United States would generate sales of 710 billion dollars even though it only
comprises a small part of the food and drink industry. In a study conducted by the Statista in
2011, the coffee industry was dominated by Starbucks and Dunkin Brands Inc. with a combined
market share of almost 50%.As of 2015, the coffee house company with the most number of
stores in the US is Starbucks, with 21,536 stores worldwide. It is also the largest in terms of
revenue with 16.45 billion US dollars.

Regional

Tea drinking is a part of the Asian culture especially in countries like China and Japan. It
has always dominated the hot drinks market in Asia .However, the results of the International
Coffee Organization reports state that coffee consumption in Asia is growing at a rate of 4.9%
since 2000. It is expected that by 2020, it would consume about 28 to 30 million bags of coffee.

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In Indonesia, Philippines, Thailand and Malaysia, the increase in demand for coffee was
attributed to Robusta, a coffee bean which is primarily used in instant coffees and espressos. It is
grown in Brazil, Africa, Indonesia and Vietnam, which is the world's single largest exporter of
Robusta.

The Asian region comprises 14% of world’s coffee consumption. In China, the number of
coffee shops increased to 31,283 between 2007 and 2012. Starbucks has more than 800 stores in
China since it entered the country in 1999. Meanwhile as of 2013, Costa Coffee has over 250
stores, 85 Degrees has 350 while Pacific Coffee plans to open 1000 stores in the country.
Although the Chinese embrace the coffee culture, the success of the coffee industry was not
because of the coffee quality, but more on the ambiance and environment of the cafes.

Local

The Philippines used to be fourth largest producer of coffee. However because of

industrialization, most of the lands used for coffee farming are turned into subdivisions.
Fortunately the Philippines is still producing varieties of coffee like Arabica and Robusta and is
still an exporting member of the International Coffee Organization. The Philippines ranked 49 on
the list of top coffee consuming countries conducted by the Euromonitor.com. According to a
news report by Manila Bulletin, Chit Juan, the president of the Philippine Coffee Board Inc,
stated that the coffee industry sees good prospects as more Filipinos drink coffee. It was revealed
that the coffee consumption in the country reaches up to 100,000 metric tons a year. Some of the
most popular coffee shops in the country is Starbucks with more than 200 stores in malls and gas
stations, Coffee Bean and Tea Leaf with over 65 branches and Figaro with 70 outlets.

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 B. SWOT Analysis
STRENGTHS WEAKNESSES
 Convenient cafe location  New and not yet established
 Extensive menu  Single branch
 Student-friendly prices  Lacks customer loyalty
 Relaxing ambiance  Some products are similar with other
 Bakery competitors
 Knowledgeable and friendly staffs  Does not offer meals/rice meals
 Flexibility to change products to
accommodate the consumers’ tastes
 Focused on a specific target market
 Creative Marketing Strategies

OPPORTUNITIES THREATS
 Further expansion  Increased competition
 New products  Changing trends and lifestyle choices
 Coffee industry is growing  Unpredictable change in prices
 Technological advancements  Bad economy
 Change in regulations

C. Competitor Analysis
Our three main competitors are Starbucks, Cafe Kivhan , and Cafe UK as they are the
popular coffee shops students often go to hangout near our place of distribution.

Starbucks is a world renowned coffee house chain with over 200 stores nationwide. It
gains competitive advantage over other coffee shops because it has strong market position and
brand recognition in international and local markets. It is also well known for its knowledgeable
employees which are the main assets of the company. It also has good marketing strategies
which enables them to penetrate the market, attract customers and maintain the loyalty of their
clients. However, since Starbucks is a famous coffee shop, its stores are often too crowded and
noisy. Furthermore, even though Starbucks offers high quality coffee, its price is too expensive
especially for young students whose budgets are limited. In order to gain competitive advantage
over Starbucks, Coffee at Tiffany’s must keep the prices affordable and maintain a quiet and
relaxing atmosphere in the cafe. It must also employ effective and creative promotions and
marketing strategies to gain repeat customers.

Cafe Kivhan can be found just outside the Padre Noval gate in UST. It was featured in
the lifestyle show Kris TV. The pastries range from 20-100php while coffee and cakes are priced
100php and above. The ambiance is quiet and relaxing which is perfect for studying. Although

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Cafe Kivhan mixes their cakes every now and then, some people comment that their prices are
bit high and that their cakes are a little dry. Coffee at Tiffany’s advantage is that it offers free
wifi to its customers to entertain them. Our cafe has also designated a “study space” for the
students to aid them in their studying.

Cafe UK can be located on the streets of Padre Noval corner Delos Reyes. A lot of
students visit the place to study or just hang out with their friends. The coffee shop is well known
for its wide range of coffee and pastries. It also offers different flavors of cake which students
often rave about. It is open for 24 hours to accommodate those who stay up late to study.
However, the price range of their products is not student friendly as a slice of cake or a cup of
coffee is priced above 140php. This is something that Coffee at Tiffany’s can take advantage of
as most of our products are below 100php. Although the furniture in Cafe UK is comfortable
enough for relaxation, the atmosphere is quite noisy which would make concentrating hard. The
cafe has 4 floors, each with its own router, but many students comment on having difficulties
connecting to it.

II. MISSION STATEMENT

Coffee at Tiffany’s is a sanctuary to coffee lovers. It provides perfectly brewed coffee of
different kinds to soothe our customer’s taste. It has a cozy ambiance and is serve with a smile
from our staff, all for reasonable prices and within your reach.

III. OBJECTIVES
• Coffee at Tiffany’s aims to achieve a 10 percent return on investment from January 1, 2015
until December 31, 2015, with pay back on new investment of no longer than December 31,
2018, and an annual rate of at least 15%.

• Coffee at Tiffany’s seek to obtain a rating of 90% on the 2015 annual customer satisfaction
survey, and to make at least 85% of our 2015 customers as repeat purchasers in 2016.

• Coffee at Tiffany’s intends to increase market share from 5% in 2015 to 20% in 2018 through
12% increase in promotional expenditure.

• Coffee at Tiffany’s plan to protect and maintain all resources- equipment, inventory, human,
and funds.

• Coffee at Tiffany’s aspires to respond to social responsibility through providing work to local
community.

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IV. MARKETING STRATEGIES

1. The store front of the shop is made out of glass so that people outside can see the bread
that we offer. On the side is a glass window that has a view of the kitchen with cookies,
candies and chocolates in glass jars that serve as eye-candy so that people will be
attracted to it.

2. The scents of chocolate and of fresh bread are used in the shop’s air system. This smell
complements the bread that we offer. This smell marketing is used to influence our
customer’s senses, and apparently it really works to make people slow down and check
out the products displayed in the glass window where the merchandise can be found.

3. Our shop will also have a free wifi which is very essential to students and workers
nowadays. We will be open from 6 o’clock in the morning to 11 o’clock in the evening.
We open early in order to cater the students who have 7am classes who wish to have
coffee or breakfast. We close late in the evening for those who wish to study and stay in a
cozy coffee place instead.

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V. MARKETING MIX

A. Products and pricing

BREADS AND PASTRIES (Php 10 – 100)

Cream Puffs topped with dark

Red Velvet Cake pops
chocolate powder (sold in 5s)

Malunggay Pandesal (sold in 7s)

Pizza Bread

Pan de coco (packed in 4s)

Melon Bread

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3 cheese with Basil Calzone
Brownies

Garlic and Parmesan toast

Cheese Cakes

Glazed Cinnamon Roll

Cupcakes

Coffee Bun

Mini Cake

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 FRAPPES (50-75 PESOS)

Coffee Crumble Frappe Caramel Frappe Low Calorie Choco Frappe

Mocha Frappe Gingerbread Frappe Peppermint Mocha Coffee

MILKSHAKES (55 PESOS)

Cookies and Cream Chocolate Peppermint

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 LATTES (HOT/ICED) (30-50 PESOS)

Green Tea Latte Pumpkin Spice Latte Chai Tea latte

Gingerbread Latte Vanilla Latte Frozen Mocha Latte

TEAS (HOT/ICED) (35-50 PESOS)

Green Tea Hibiscus Tea Raspberry Tea

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 Lemongrass Tea Lime Mint Tea Gingerbread Tea

COFFEE (50-75 PESOS)

Italian Coffee Mocha Coffee

Irish Coffee Sweet Maple Cappuccino

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B. Promotion

During our opening day, we will be distributing coupons for the first 100 customers.

The customers are entitled to a 10% discount on their next purchase in our café. The coupons
will encourage them to go back to our café.

We will also be distributing “loyalty cards” which are regularly available at the coffee shop
counter.

Every purchase in our coffee shop entitles the customer to a stamp in their card. When they
accumulate 5 stamps, they will have free bread. When they complete all ten stamps, they will get
a free upsize on any drink of choice. Each card will be valid for a year.

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We will also make use of social networking sites namely Facebook and Instagram for
advertising. In our accounts, we will be posting updates on our products, promos, and everything
else.

Posters will also be posted with permission in bulletin boards inside UST and other universities
near us. Flyers in nearby areas will be distributed as well.

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C. Place of distribution

For the location of the café, we aim to establish this in a place where students and workers are
present. So, our team planned to establish the café at Espana. We chose this location because it is
near the university belt at the same time it is also near the offices.

INTERIOR

The cafe’s walls will mostly be of blacks and whites to highlight out vintage theme. There will
be portraits (similar to those above) of Audrey Hepburn artistically decorated on the walls.

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1ST FLOOR

Our café has 2 floors. The first floor is where we sell our products like the pastries and
beverages. There are sofas in the waiting area for the customers whether they are waiting for
their orders or for their peers. Our kitchen has a glass window so that our baking process will be
visible to the people.

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2ND FLOOR

There will be:

Freedom Wall

We want to put the freedom wall to know what our customers think and feel for our café and
other matters as well. They may also cite their suggestion for us to further improve the cafe.

Study Area

We will be putting study areas for the students. The picture above is the exact tables and chairs
we will be using. Whenever there is someone who needs alone time to study or work, we can
offer them this facility. The led spotlight will be hanging above the table.

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Dining

Some people will just dine and spend some quality time with friends. So, we also plan to put an
8-seater dining table for them. The table’s color will be the same as the picture shown on the left
same as the chair’s color which is the same as the picture on the right. We chose this color so
that we can match the vintage them or our café. The lights will be a hanging lamp light to also
match the vintage look.

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VI.

A. Implementation
a. Organization chart

2-Cashier
(TBH-PT)

Staff Manager (3) Service Crew

(Chyles Legaspi (TBH-PT)

Hr Manager (2) Dishwasher

(Jasmin Balasolla) (TBH-PT)

Beverage Manager (3) Assistant Barista

(TBH) (TBH)
Kitchen Manager
General Manager (Rem Guevarra) Executive (2) Assistant
(Danice Gan) Baker/Chef Baker/Cook
Marketing Manager (Rem Guevarra) (TBH)
(Caryl Tenedero)
Accountant
Financial and Legal (Joyce Francisco)
Department
(Joyce Francisco) Legal Consultant
(Jasmin Balasolla)
Operation Manager
(Lorane Basbas)

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 b. Role
 General Manager – in-charge of the over-all management of the shop. She will also make
the summary report of all aspects of business and will do a briefing on the other board of
directors (owners) about the status of business.
 Staff Manager – ensures that the business is running smoothly. She is also expected to
supervise staff and deal with customer needs during her shift. Additional job assignment
is for her to act as one of the service crew.
o Cashier – in-charge of taking customers orders.
o Service Crew – this will be part-time employees, in-charge of serving, cleaning
and dishwashing.
 HR Manager – in- charge of recruitment, training, disciplinary issuances and employee
relations.
 Kitchen Manager – in- charge of kitchen matters and also the inventory of products.
o Executive Baker – in- charge of the bread and pastries to be served.
 Assistant Baker – in- charge of assisting the executive baker on baking.
o Beverage Manager – main in- charge of the beverages of the shop. He is also
expected to submit the inventory of beverage products to the kitchen manager.
 Assistant Barista – assist in making beverages.
 Marketing Manager – in- charge of developing marketing strategy, act as promotional
strategist on advertising the shop and researching on new product line.
 Financial and Legal Department – in- charge and financial and legal matters
o Accountant – ensures the allocation and editing of budget and also the paying of
taxes, payroll and other finances.
o Legal Consultant – in- charge of giving legal advices.
 Operation Manager – in-charge of overseeing the quality of production of goods and/or
providing of services. She ensures that the operation is running as efficiently as possible,
and that the goods and services meet the client’s needs. She is also in- charge of
contacting and meeting with suppliers and potential clients. Additional assignment is to
communicate with our partner local coffee farm.

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 c. Process of Operation

STAFF

Service crew
of the first Cashiers start
Staff Manager Check out of
shift start to taking orders Check out of Closing time
assign the task 1st shift enter
prepare and and crew 2nd shift enter 11:00, 3rd shift
to service crew 2nd shift of
clean the shop starts serving. 3rd shift (end starts cleaning
of the first service crew
for the (1st shift- 11:30) (end 11:30)
shift. (5:30 am) (end 5:30)
opening. 11:30 am)
(5:30-6:00 am)

BAKER

Bakers makes Bakers makes Executive Executive

Bakers starts the first batch breads and Baker makes Baker briefs
Assistant Baker
preparing the of breads and pastries the inventory the assistant of
cleans
ingredients pastries for (business of baking the menu for
breakfast line hours) goods the next day

BEVERAGE MANAGER

Beverage manager
Beverage Manager Beverage manager
and barista make Pass it to the
check equipments make an inventory
drinks (Business Kitchen Manager
and products list
hours)

OPERATION MANAGER

Kitchen manager Operation manager also

submits the inventory of makes an evaluation of Contact and meet the
products to the the equipments and supplier
operation manager ingredients

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 HR MANAGER

Recruitment
Kitchen and Cashier (we will be coordinating on a culinary
Service Crew (online ad and bulletin boards of schools)
school or manpower services)

Training
Kitchen staff will be trained by the Kitchen manager with the Cashier and Service Crew will be trained by Staff Manager
help of HR Manager and HR

Employee Relations
Issues should be address first to their manager then to the
Staffs will be oriented by the policies of the coffee shop
HR

STARTING UP BUSINESS

Create a Business Plan Buy equipments Decorate interior

Look for Potential

Secure financial source Hire and Train Staff
Supplier

Apply for Business

Lease location Start Advertising
Permit

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 d. Contingency (Risk Management)

Risk 1. Operational Disaster (death of a key executive or manager)

Impact

This event may threaten Coffee at Tiffany's to close for a period of time. Financial
problems might also occur. Succession might become an internal conflict and market
share may be affected due to the change of strategies implemented by the new leader.

Back Up Procedures

1. Insurance policies that provide for the cost of keeping Tiffany's in operation.
2. Have an effective succession planning

Post-event Recovery

1. Hire consultants that are specialists in solving this type of problem.

2. Have a clear organizational structure

Risk 2. Employee Theft and Destruction of Intellectual Property

Employee theft and destruction of intellectual properties are serious threats for Tiffany's.
Internal theft may occur if there is a misplaced trust, lax hiring and supervision, and a
failure to develop basic financial controls.

Impact

Disproportionate losses because of the limited resources Coffee at Tiffany's has for
detecting fraud and theft such as CCTV cameras. Financial problems will also occur. It
may ruin the company's professional image and ability to do business.

Back Up Procedures

1. Create a system of checks and balances

2. Have a careful attention to legal considerations and liabilities to the stakeholders

3. Create a positive work environment

4. Have a fair employment practices

5. Have positive employee recognition

6. Implement internal controls

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 Post-Recovery Response

1. Investigate the incident

2. Implement a more strict policy
3. Educate and supervise the employees
4. Hire a consultant
Risk 3. Natural Disasters

Natural disasters that may affect Tiffany's include floods, earthquakes, hurricanes, etc.

Impact

Disasters may significantly damage the Cafe's assets leading to a temporary discontinuity
of the business operations. It may also result to:

1. Delayed payroll
2. Increased expenses
3. Contractual penalties or loss of contractual bonuses
4. Customer dissatisfaction
5. Delayed new business plans

Back Up Procedures

1. Keep enough stock on hand to supply the customers in the event of severe disaster
damage.

2. Identify where equipment will be relocated or how it could be protected.

3. Back up critical data to a portable storage device and store it in a secure location.

4. Clear guttering and downpipes

5. Trim any tree branches hanging over the cafe

6. Have a regular maintenance

Emergency Response:

1. Regard first the safety of the customers and the staff

2. Evacuate if needed

3. Relocate the equipment to a secure location

4. If there is an injured person, call 117

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 Post-Event Recovery:

1. Clean up the Cafe and its surroundings

2. Demonstrate the ability of the organization to recover

3. Provide motivation for the employees in participating the disaster recovery plan

4. Perform social responsibilities

5. Hire a consultant

Risk 4. Fire Emergency

Impact

1. Destruction of properties

2. Safety of the staff

3. Lost productivity due to time dealing with; and waiting for:

 Police
 Insurance assessors
 Glass repairers
 Producing an inventory of stolen goods
 Disposing of smoke or fire-damaged stock

Back Up Procedures

1. Prepare prevention systems such as alarms and fire extinguishers

2. Have surge protectors to minimize the effect of power surges on electronic equipment

Emergency Response

In the event of a fire in the Café, the following contingency plan will be put into action.

1. Call 117 immediately and report the fire

2. Notify the Person In Charge (PIC) for handling this risk
3. In the case of a minor fire, all personnel in the area subject to smoke inhalation
should be evacuated
4. The PIC will attempt to extinguish the fire
5. If the fire is not minor, or is not extinguishable, the PIC will be responsible for
signalling the fire alarm and evacuating their department.

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 6. All employees should be evacuated from the building and gather at the designated
emergency meeting area.

Risk 5. Bomb Threat

Impact

1. Low market share due to the decreased number of customers

2. It may affect the internal operation of the Café
3. Services may not be as good as before because of the scared staff
4. Loss of productivity

Emergency Response

In the event that the Coffee at Tiffany’s is contacted with a threat of bomb, the following
step should be followed so evacuation will be set in motion.

1. Immediately call 117 and notify the authorities of the situation.

2. Immediately report the threat to all so that they may notified of the threat
3. All personnel are to evacuate the premises and gather at the emergency meeting area
so that they can be accounted for.

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 B. Evaluation
a. Customer Evaluation on the Product

To improve our café further, it is important that we would hear feedbacks from the customers
regarding our products and service. To obtain these feedbacks, here is a sample of customer
evaluation survey:

Customer Evaluation Survey

As our customer, your feedbacks are valuable to us. Please take a few minutes and rate the following
questions as 5 being the highest and 1 being the lowest. Thank you.

How often do you dine with us?

___Daily
___Weekly
___Monthly
___ Once in three months
___First time
___Others __________________________________

FOOD 1 2 3 4 5
The menu had an excellent selection of items
The quality of the food was excellent
The food was served fresh and with the right
temperature
The food was tasty and flavorful
The food had a great value for the money

Would you recommend our café to a friend? ____YES ____NO

Other comments:
_________________________________________________________________________________________
_________________________________________________________________________________________
______________________________________________________________________________________

b. Employee’s Services Evaluation

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 We will be having two types of evaluation for the employees’ services: one coming from the
employees themselves and the other one coming from the customers. The self-evaluation of the
employees will provide us a greater view of their performance. Evaluation of the employees’
performance will occur annually with formal or informal observations by the employee's
supervisor or other supervisory staff.
The purpose of the evaluation is to determine the quality performance of the employee and
provide guidance for improvement. The employee's supervisor will, at the end of the year, award
the employees if they meet the expectations. If not, employees will undergo several trainings to
improve their services.
Employees Self-evaluation SERVICE EVALUATION FORM
STONG Coffee at Tiffany’s
LY Espana, ManilaSTRON
Job satisfaction
DISAGR GLY
The Coffee at Tiffany’s goal is to provide qualityEE
customer service. You will helpAGREE
us reach that goal by taking a few moments to complete the following survey.
1 2 3 4 5
(Please circle your response)
I am making a meaningful contribution to critical company
1. Overall, please rate the quality of service you received.
goals: 1) Very Good 2) Good 3) Neutral 4) Poor 5) Very Poor

I have 2.
adequate equipment and training:
Did the staff person address your questions or concerns to your satisfaction
while visiting the Coffee at Tiffany’s?
My work environment is positive and helpful:
1) Yes 2) No
I know what my goals and responsibilities are on
3. How knowledgeable was the staff person who assisted you?
daily/weekly basis: knowledgeable
1) Extremely
2) Very knowledgeable
I feel comfortable with the amount of work which is required
3) Somewhat knowledgeable
of me:4) A little knowledgeable
5) Not at all knowledgeable
I am generally satisfied with my job:
4. Please rate the speed of service you received.
Job Performance
1) Very Good 2) Good 3) Neutral 4) Poor 5) Very Poor
I am producing high quality work
5. Was the staff person courteous?
1) Extremely courteous
I complete my work in a timely manner
2) Very courteous
I keep 3) Somewhat
accurate courteous
calendar records of deadlines.
4) A little courteous
5) Noton
I collaborate ata all courteous
regular basis with team members.
6. all
My over Please share your iscomments
job performance excellent.and suggestions.
___________________________________________________________________________________
___________________________________________________________________________________
Customers’ evaluation form on Employees’ services
___________

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 C. Control
DISCIPLINARY MEASURES

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Certain actions and behaviors detract from the guests' enjoyment or jeopardize the safety of
company personnel. Tiffany’s Coffee & Pastries has established written guidelines to help
achieve our goals and maintain a safe, orderly environment. We will treat everyone
professionally and fairly while enforcing our established guidelines at all times.

Any team member who engages in an activity detrimental to the best interests of Tiffany’s
Coffee & Pastries’ guests, visitors, or other personnel will be appropriately disciplined.
Depending on the degree or the nature of the offense, disciplinary action can include a verbal or
written notice, suspension or immediate discharge (in serious cases).

Verbal warnings- for relatively minor violations, or for first-time violations.

Written warnings- given after verbal warnings, or when the violation is serious enough for a
written warning.

Suspensions- result from very serious violations, or after a manager has given both verbal and
written warnings.

Demotions- typically happen when a manager determines that the employee is no longer able to
perform the required tasks or responsibilities.

Termination- the final disciplinary action, usually taking place after multiple warnings.

The actions below, on the part of any team member, may result in disciplinary action up to
immediate termination. They include, but are not limited to, the following:

1. Damage to company property, including your wardrobe and assigned tools and supplies

2. Allowing unauthorized people to enter the property without management approval

3. Rummaging through another team member's personal property

4. Possession of, or being under the influence of, alcohol while on café premises

5. Possession of, or being under the influence of, an illegal drug or narcotic while on café
premises

6. Possession of, or being under the influence of, or using any instrument or paraphernalia related
to illegal drugs, narcotics, or alcohol, while on café premises

7. Possession of firearms or other weapons

8. Violence, physical assault, or threats to any team member, guest, manager, visitor, or other
person

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9. Gambling while on café premises

10. Falsifying or manipulating company documents, including, but not limited to, employment
applications, payroll and financial documents, time cards, inventory, credit card vouchers,
invoices, or any other documents

11. Dishonesty

12. Insubordination or refusal to follow a manager's directive

13. Sleeping on the job

14. Theft or aiding in theft of our operation or the property of management, co-workers, guests,
visitors or any other person

15. Unauthorized discussion about or disclosure of confidential information including the

individual's salary

16. Discourteous behavior

17. Harassment of any kind

18. Habitual tardiness or absenteeism without management approval

19. Inability to work in harmony and failure to cooperate with fellow personnel

20. Repeated failure to follow the required dress code

21. Using abusive or foul language

22. Confronting a guest about a gratuity

23. Conducting illegal activities such as selling alcoholic beverages to minors

24. Giving away food or beverages without authorization

25. Unauthorized consumption of food and/or beverages while on duty

26. Refusal to follow policies as defined by management

27. Any other activity, which is viewed as harmful or detrimental to the cafe or jeopardizes
the safety of team members, guests, managers, visitors, or any other person or may be
detrimental to our company

Also, in effort preventing these series of misconduct from occurring, our management ha come
up with a code of conduct for the employees in which it will be made clear to the staff the

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expectations of the management from their employees. Through this, it can help the employees
perform their tasks in their best potential. Provided below are some expectations that the
management imparts for the employees:

Code of Conduct

1. The staff of Tiffany’s Coffee & Pastries must greet each customer warmly

2. The staff should not refuse to seat incomplete parties and should put effort into describing
specials instead of reciting them in monotone.

3. Employees must conduct themselves in a manner that won't disrupt the operation of the
restaurant.

4. Further, employees are not allowed to be insubordinate to managers or other supervisors.

5. The employee should try to accommodate any reasonable customer request.

6. Involve a manager in every instance in which a customer complains. This notification

allows the manager to step in, if necessary, to handle a problem.

7. Chefs and their assistants must conduct themselves in such a manner that both customer
and employer are happy.

8. The kitchen must be clean at all times and must adhere to all food safety standards, even
during busy services.

9. The staff must arrive to work on time

10. Cashiers should observe proper cash handling practices.

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VII.Financial projection

Capital: P 1 300 000 Million

The figure shows the allocation of the starting budget (1.3 Million). For inventory and
ingredients, P320 000 or 24.6% of the total budget will be used. P 230 000 will be for the payroll
which includes the salaries and bonuses of the employees for a month. The promotions and
advertisement will get 6.15% or P80 000 of the total budget. P50 000 or 3.85% of the total
budget will be for the commercial space rent. Utilities will get P20 000 budget to be used for a
month. 26.92% or P 350 000 will be for the interior. Lastly, P250 000 or 19.23% of the total
starting budget is for the equipment.

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 Projected Profit and Loss (in Pesos)

Year 1 Year 2 Year 3

SALES 3 000 000 3 500 000 4 000 000

Direct Cost of Sales (ingredients) 1 500 000 1 600 000 1 600 000

Other 0 0 0

Total Cost of Sales 1 500 000 1 600 000 1 600 000

Gross Margin 1 500 000 1 900 000 2 400 000

Gross Margin % 50% 54.29% 60%

EXPENSES

Payroll 500 000 620 000 620 000

Promotions and Advertisements 30 000 60 000 60 000

Rent 170 000 180 000 180 000

Maintenance 10 000 10 000 10 000

Utilities 80 000 100 000 120 000

Other 10 000 10 000 10 000

Total Operating Expenses 796 000 980 000 1 000 000

Net Profit 704 000 920 000 940 000

Net Sales 23% 26% 36%

The projected sales for year 1 is P3 000 000. We are targeting more than 15% increase of sales
for the years following year 1. Expenses increases as we grow because of the future plans such as
better quality products, more promotions, hiring of more employees, etc. By the end of each
year, it is projected that as our business ages, net profit increases

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