Chapter I

INTRODUCTION
Coffee has become the most consumed beverage around the world

(Weinberg & Bealer, 2001). There is a vast increase of coffee consumption in the

lifestyle of the urban population (Kasnaeny, Sudiro, Hadiwidjojo, & Rohman,

2013). Surprisingly, food and beverages rank number one on tourist spending

while they travel (Shenoy, 2005). In fact, most tourists will dine out when they

travel (Wolf, 2006). This phenomenon leads to the potential of coffee shops in

leisure destinations (Shenoy, 2005); including THE COFFEE SHOP

EXPERIENCE FOR ALL PJAEE, 17 (7) (2020) 2851 Jakarta that is experiencing

a new wave of coffee shops (Karina, 2016). The coffee shop complies not only as

a place to drink coffee, but also serves as a social place (Hung, 2012) as well as

a working space (O'Connor, 2018).

Café Aromagic stands out as a visionary endeavor, ready to fascinate and

fascinate the palates and sensations of coffee lovers and enthusiasts alike, in a

time when coffee culture has advanced beyond simple caffeination and

transformed into a multisensory experience. This feasibility study begins a

thorough investigation of Café Aromagic, a novel coffee business idea that

combines the magic of fragrances with the spirit of a café.

In recent years, the coffee business has witnessed a dramatic transition.

Instead of just a simple beverage, it has become a crucial component of the

modern lifestyle, where customers want more than just a cup of coffee. In this

thriving and fast-paced sector, Café Aromagic aims to reinvent the idea of the

1
coffee shop. The name "Café Aromagic" wonderfully captures the essence of the

humble company. The word "café" represents our origins as a coffee shop. In

contrast, the term "aromagic" conjures up the promise of an enchanted and

aromatic experience that guests may look forward to when they enter the great

facility.

According to the Third Place Theory, beyond the home and workplace

boundaries, Ray Oldenburg highlights the value of welcoming, shared places.

Café Aromagic strives to be that welcoming "third place" where patrons may

unwind, mingle, and enjoy top-notch coffee. Second, with Experience Economy,

the Experience Economy hypothesis, advanced by Pine and Gilmore, contends

that firms can prosper through creating memorable experiences. This hypothesis

is supported by Café Aromagic, which makes a multimodal coffee experience

where the scent, atmosphere, and taste all work together to leave a lasting

impression. For the last and third theory, this company is based on branding and

sensory marketing theories because it understands how odor, sight, and taste

may significantly impact consumer perceptions and loyalty.

Café Aromagic choose partnership for this study. The group is consisting

of 9 members namely Abrin, Kate Hylene P., Alzate, Roger S., Bagni, Abegail B.,

Espinoza, Angeline M., Fabro, Zayin, Manzano, Trixie Ann L., Oliveras, Andrea,

Tingco, Rosalinda, Urbiztondo, Engilbert. In a partnership, the responsibilities

and decision-making are shared among the partners. This can be beneficial for a

cafe as it allows for a pooling of resources, skills, and expertise. The proposed

business will be located in McArthur Highway Canarvacanan Binalonan

2
Pangasinan.

The proprietors conducted this business because of the extensive market

research prioritizing the growing demand for premium coffee. Not only that but

the business is also offering a unique proposition for the crowded coffee shop

landscape to be used for attracting the market segments to be targeted by the

said business. Specialty coffee and immersive, themed events are attracting

more and more customers. The strategy used by Café Aromagic precisely

accommodates these changing consumer demands. The committed group of

professionals and coffee enthusiasts at the company contribute a wealth of

experience to assure the success of this endeavor.

In order to determine the viability and potential success of Café Aromagic,

the company will examine a number of factors in this feasibility study, including

market analysis, management strategies, technological needs, financial

predictions, and the social impact. The goal is to construct a successful coffee

business as well as a sensory refuge where coffee enthusiasts may go on

enchanted aroma and taste adventures that will leave them with enduring

memories of Café Aromagic's charm.

Cafe Aromagic begins with a group of college students who shared a deep

passion for coffee. These researchers, named Trixie, Roger, Angeline, Rosalinda,

Zayin, Abegail, Kate, Andrea, and Engilbert, were not content with the ordinary

coffee options available on their university's campus. The researchers dreamed

of creating a haven for coffee lovers like themselves, a place where they could

indulge in the rich aroma and flavors of the sacred beverage. Driven by shared

3
love for coffee and a desire to bring something unique to their campus, the

researchers decided to embark on a journey to create their very own coffee shop.

Through their dedication and hard work, the researchers of coffee lovers turned

Cafe Aromagic into a thriving business. Their love for coffee, combined with their

entrepreneurial spirit, allowed them to create a place that brought people

together, fostering a sense of community and appreciation for the art of coffee.

Chapter II

4
 MARKET STUDY
The market study is the most important part of the feasibility study. The

chapter contains details about the business product or service, customer, market

competitors, marketing and sales strategy, mission and vision of the business,

and business logo. This study's goal is to evaluate the product's marketability,

because they influence whether the project will be feasible and successful,

demand and supply for the product need to be carefully considered.

Business Product/Services

Café Aromagic generally offer the following categories of coffee and pastry

products. These are some of the varieties of frothy creation and pastries offered

by Café Aromagic such as: Frothy Vanilla Cloud, Hazelnut Haven Froth, Toasted

Coconut Cream Froth, Chocolate Bliss Frothy Coffee, Choco Charm Eclairs and

Aroma Twist Croissant.

Table 2.1 The Product, Product Description and Price

Particular Product Description Price

Frothy Vanilla Cloud. An ₱45.50

enchanting combination of
coffee and velvety foam
enhanced with a hint of vanilla.

5
Hazelnut Haven Froth Indulge, ₱60.00
in the blend of coffee, velvety
froth and the enchanting allure
of hazelnut, in every sip of the
Hazelnut Haven Froth. It's an
embrace that will captivate your
taste buds.

Toasted Coconut Cream ₱55.00

Froth Experience a getaway in
every sip with the Toasted
Coconut Cream Froth. This
exquisite blend combines the
flavor of coffee, velvety foam
and the heavenly aroma of
coconut.

Chocolate Bliss Frothy ₱62.50

Coffee. Experience the
combination of chocolate and
aromatic coffee topped with a
creamy froth and cocoa. It's a
fusion of flavors that brings joy
with every sip creating a
flawless symphony, for your
coffee desires.

6
 Choco Charm Eclairs. Filled ₱60.00
with a creamy chocolate
mousse and topped with a
glossy ganache, they're finished
with a chocolate chip on top,
making each piece a luxurious
indulgence.

Aroma Twist Croissant. This ₱40.00

light and airy pastry is made
with layers of buttery dough that
give it a delicate, flaky texture.
Each bite is a perfect balance
of rich, buttery flavor and a hint
of sweetness

PRICING STRATEGY

The Café Aromagic pricing strategy is to price the product that affordable

to every customer. To cover the cost of our business, the use cost-plus pricing.

The price of business is not competitive, but to ensure that the coffee and

pastries are good taste to customers. Café Aromagic goal is to provide good

quality of product for a reasonable price.

Table 2.2, Costing of Frothy Vanilla Cloud

Product Name Frothy Vanilla Cloud
Standard Yield 1 Serving
INGREDIENT UNIT OF UNIT COST PORTION TOTAL
MEASURE CURRENT SIZE COST
CURRENT
Milk 1000 ml 104.00 125ml 13.00

7
Brewed Coffee 500grams 106.00 28.3gram 6.00
s
Vanilla Syrup 950ml 158.33 15ml 2.49
Sugar 750ml 100.00 30ml 4.00

Total Cost 25.49

Total Cost Per Serving 25.49
Cost Ratio 66.50% 38.33
Computed Price Per Serving 38.33
VAT 12% 4.60
Total Price Per Serving 42.93
Recommended Price Per Serving ₱45.50

Table 2.3, Costing of Hazelnut Haven Froth

Product Name Hazelnut Haven Froth
Standard Yield 1 Serving
TOTAL
UNIT OF UNIT COST PORTION
INGREDIENT COST
SIZE
MEASURE CURRENT CURRENT
Milk 1000 ml ₱104.00 125ml ₱13.00
Brewed Coffee 500grams ₱106.00 56.7grams ₱12.02
Hazelnut syrup 750ml ₱125.00 30ml ₱5.00
Crushed Hazelnut 250grams ₱70.52 14.18grams ₱3.99
Sugar 750ml ₱50.00 30ml ₱2.00

Total Cost ₱35.97

Total Cost Per Serving ₱35.97
Cost Ratio 66.50% ₱54.09
Computed Price Per Serving ₱54.09
VAT 12% ₱4.32
Total Price Per Serving ₱58.41
Recommended Price Per Serving ₱60.00

Table 2.4, Costing of Toasted Coconut Cream Froth

Product Name Toasted Coconut Cream Froth
Standard Yield 1 Serving
TOTAL
UNIT OF UNIT COST PORTION
INGREDIENT COST
SIZE
MEASURE CURRENT CURRENT
Coconut Milk 1000 ml ₱44.38 236.59ml ₱10.50
Heavy Cream 1000ml ₱92.99 118.29ml ₱11.00

8
Coconut syrup 750ml ₱187.50 10ml ₱2.50
Sugar 750ml ₱50.00 30ml ₱2.00
Coconut Chips 100grams ₱100.00 5.69g ₱5.69

Total Cost ₱31.69

Total Cost Per Serving ₱31.69
Cost Ratio 66.50% ₱47.65
Computed Price Per Serving ₱47.65
VAT 12% ₱5.72
Total Price Per Serving ₱53.37
Recommended Price Per Serving ₱55.00

Table 2.5, Costing of Chocolate Bliss Frothy Coffee

Product Name Chocolate Bliss Frothy Coffee
Standard Yield 1 Serving
TOTAL
UNIT OF UNIT COST PORTION
INGREDIENT COST
SIZE
MEASURE CURRENT CURRENT
Brewed Coffee 500grams ₱106.00 28.3grams ₱6.00
Milk 1000ml ₱104.00 125ml ₱13.00
Chocolate syrup 1000ml ₱200.00 59ml ₱11.80
Sugar 750ml ₱50.00 30ml ₱2.00
Coconut Chips 250grams ₱100.00 14.18 ₱5.67

Total Cost ₱38.47

Total Cost Per Serving ₱38.47
Cost Ratio 66.50% ₱57.85
Computed Price Per Serving ₱57.85
VAT 12% ₱4.62
Total Price Per Serving ₱62.47
Recommended Price Per Serving ₱62.50

Table 2.6, Costing of Aroma Twist Croissant

Product Name Aroma Twist Croissant
Standard Yield 8 Serving
TOTAL
UNIT OF UNIT COST PORTION
INGREDIENT COST
SIZE
MEASURE CURRENT CURRENT
All-purpose flour 1000grams ₱55.00 540grams ₱29.70
Milk 1000ml ₱104.00 340ml ₱35.36

9
Unsalted butter 500grams ₱145.00 400grams ₱116.00
Granulated Sugar 750ml ₱85.00 50grams ₱5.67
Salt 50grams ₱20.00 15grams ₱6.00
Yeast 50grams ₱35.00 15grams ₱10.50
Egg 1pc ₱8.00 1pc ₱8.00

Total Cost ₱211.23

Total Cost Per Serving ₱26.40
Cost Ratio 66.50% ₱39.70
Computed Price Per Serving ₱39.70
VAT 12% ₱4.76
Total Price Per Serving ₱44.47
Recommended Price Per Serving ₱40.00

Table 2.7, Costing of Choco Charm Eclairs

Product Name Choco Charm Eclairs

Standard Yield 8 pcs
TOTAL
UNIT OF UNIT COST PORTION
INGREDIENT COST
SIZE
MEASURE CURRENT CURRENT
Heavy Cream 946ml ₱92.99 473.18ml ₱46.51
Chocolate Chips 500grams ₱100.00 200grams ₱40.00
All-purpose flour 1000grams ₱55.00 240grams ₱13.20
Unsalted Butter 200grams ₱145.00 125grams ₱90.63
Salt 50 grams ₱20.00 2grams ₱0.80
Milk 1000ml ₱104.00 240ml ₱24.96
Powdered Sugar 450grams ₱50.00 25grams ₱2.78
Vanilla Extract 20ml ₱25.00 14.78ml ₱18.48
Egg 4pcs ₱8.00 4pcs ₱32.00
Corn Syrup 500ml ₱45.00 14.78ml ₱1.33

Total Cost ₱270.68

Total Cost Per Serving ₱33.84
Cost Ratio 45% ₱50.88
Computed Price Per Serving ₱50.88
VAT 12% ₱6.11
Total Price Per Serving ₱56.99
Recommended Price Per Serving ₱60.00

10
Sales Forecast

A sales forecast is a depth report that predicts what a salesperson,

team, or company will sell weekly, monthly, and annually. Sales forecasts

are typically created using past performance data. Café Aromagic hope to

gain 5% increase in sales revenue for the next 5 years.

The table shown the sales forecast of Café Aromagic illustrate the

daily sales, monthly sales, and annual sales forecast.

Table 2.8, Daily Target sales of Café Aromagic

TARGET DAILY MONTHLY ANNUAL
ITEMS PRICE SALES TARGET SALES SALES
PER SALES
ITEM
Frothy Php45.50 55 Php 2,502.50 Php 75,075.00 Php 900,900.00
Vanilla
Cloud
Hazelnut Php60.00 53 Php 3,180.00 Php 94,400.00 Php 1,144,800.00
Haven Froth
Toasted Php55.00 55 Php 3,025.00 Php 90,750.00 Php 1,089,000.00
Coconut
Cream Froth
Chocolate Php62.50 48 Php 3,000.00 Php 90,000.00 Php 1,080,000.00
Bliss Frothy
Coffee
Choco Php60.00 50 Php 3,000.00 Php.90,000.00 Php 1,080,000.00
Charm Éclair
Aroma Twist Php40.00 62 Php2,480.00 Php.74,400.00 Php 892.800.00
Croissant
Total Php 17,187.50 Php 515,625.00 Php 6,187,500.00
Monthly
Sales

Customer

The survey was conducted face to face with the use of survey forms. There

11
are 100 respondents who completed the survey who lived within the vicinity of

Binalonan, Pangasinan. The result of survey are follows:

Figure 2.1, Classification of respondents According to Gender

Based on the conducted survey, it shows that 71% of the respondents are female

and 29% of the respondents are male.

Gender of Respondents
Female Male

29%

71%

Figure 2.2, Classification of respondents According to Age

Age of Respondents
18-20 21-30 31-40 40 and above

8%
13%

18% 61%

Based on the conducted survey, it shows that 61% of the respondents are aged

18-21, 18% are aged 21-30 years old, 13% are aged 31-40 years old and 8% are

aged 40 and above years old that makes the total of 100 respondents.

12
Figure 2.3, Classification of respondents According to Occupational Status

Occupati onal Status

Student Employee Unemployed

7%
12%

81%
Ba

sed on the conducted survey, it shows that 81% of the respondents are students,

12% are employee, and 7% are unemployed that makes the total of 100

respondents.

Figure 2.4, Classification of respondents According to Coffee Intake

Based on the conducted survey, it shows that 42% of the respondents are twice

a day that drinks coffee, 36% are once a day, 11% are 3-4 times in a week and

7% are rarely that’s drinks coffee that makes the total of 100 respondents.

How frequently do you drink coff ee?

Twice a day Once a day 3-4 times in a week Rarely

11%

11%
42%

36%

Figure 2.5, Classification of respondents According to Coffee Flavors

13
 What coff ee fl avor do you want?
Chocolate Bliss Frothy Coffee Hazelnut Haven Froth
Toasted Coconut Cream Froth Frothy Vanilla Cloud

19%

35%

22%

24%

Based on our conducted survey, it shows that 35% of the respondents want

Chocolate Bliss Frothy Coffee flavor, 24% respondents want Frothy Vanilla

Cloud, 22% respondents want Hazelnut Haven Froth and the 19 respondents

wants Toasted Coconut Cream Froth with a total of 100%.

Figure 2.6, Classification of respondents According to Visiting a Coffee

Shop
Based on the conducted survey, it shows that 50 respondents visit coffee shop

twice a week, once a week with the total of 35% respondent and 15%of the

respondents visit a coffee shop not often.

How oft en do you visit a coff ee shop?

Twice a week Once a week Not Often

15%

50%
35%

14
 Figure 2.7, Classification of respondents According to place of drinking
coffee
Based on the conducted survey, it 63% respondents drinking coffee in coffee

shop and 37% drinking coffee in their home.

Where do you drink coff ee most oft en?

Coffee Shop Home

37%

63%

Figure 2.8, Classification of respondents According to building a shop. If

we well build a coffee shop in Binalonan, Pangasinan would you go?

If we well build a coff ee shop in Binalonan, Pan-

gasinan would you go?
Yes No

4%

96%

Based on our conducted survey, it shows 96% respondents choose YES and 4%

respondents choose NO. Therefore, out of 100% respondents most of them are

willing to go in our coffee shop which is the Café Aromagic.

Figure 2.9, Classification of respondents According to how much money

15
 they will spend

How much do you oft en spend at a coff ee shop?

50-100 100-150 150 above

19%

51%

30%

Based on our conducted survey, it shows 51% of the respondents choose a Php

50-100.00 followed by 30% of the respondents they choose Php 100-150.00 and

19% respondents they choose Php 150 above. Therefore, the respondents want

the product at affordable price and we will ensure that our product is reasonable

in their prices.

Market Competition

The café industry is quite competitive, with many cafés vying for customers

attention and loyalty. In this study on feasibility, it will explore the market

competition faced by Cafe Aromagic and evaluate its potential to thrive in this

environment. By comprehending the strengths and weaknesses of its

competitors we can pinpoint opportunities, for Cafe Aromagic to stand out and

attract customers in a captivating manner.

Table 2.9, Direct Competitor

Name of the Establishment Products Description

16
1822 Café 1822 cafe has two branches which is
from the vicinity of Binalonan
Pangasinan. 1822 Cafe offers a
variety of items on their menu,
including coffee drinks, pastries,
sandwiches and 1822 Cafe also offer
milk tea
Brewnalonan Brewnalonan is located at Binalonan
beside of the BDO Network Bank.
Brewnalonan offers a different variety
of coffee and pastry products.
Kwings Café Kwings Café is located at Bued
McArthur Highway Binanlonan. The
products that they offered are coffee,
pizza, pasta and chicken wings.
Hebrews Café Hebrews Café is located at MacArthur
Highway Binalonan. Hebrews offers
coffee, soda coolers, frappe, salad,
finger foods, noodle, pasta,
sandwiches, pizza and milkteas.
GenZspot Resto Cafe GenZspot Resto Café is located at
Bued McArthur Highway Binanlonan.
GenZspot offers coffee, Fruit teas, rice
meal, milktea, desserts and
sandwiches.
Havens Brew Havens Brew is located at Binalonan
in front of UEP they offer a cheap but
satisfying products like coffee and
milkteas.
Hour Café Hour Café is located at Binalonan.
Hour café offers a different varieties of
coffee products and pastries.

Table 2.10, Indirect Competitor

Name of Establishment Product Description
Tea2go Tea2go in Binalonan offered various
milk tea flavors such as classic milk
tea, winter melon, taro, matcha,
strawberry, and honeydew. They also

17
 provided options for customized sugar
levels and toppings like pearls,
pudding, and jelly.
Milktea Project Milktea Project is located in the town
of Binalonan beside Holychild
Academy. Milktea Project offers
Frappe, Milkshake, Fruit shake and
different flavors of milk tea. Milktea
Project offer also Sandwich, Burger,
Nachos and fries.
Booba Booba Milk Tea typically offers a
variety of flavors like classic milk tea,
taro milk tea, matcha milk tea, jasmine
green tea, winter melon tea, fruit teas,
and Booba Milk tea offer their famous
milk tea which is the Magnum Milk
tea.

Channel of Distribution

Figure 2.10, Café Aromagic Channel of Distribution

Distributor Customer/Consumer

The Distribution Channel will be: DISTRIBUTOR to customers, it will

reach the customer mainly through store and deliver around their house, only in

the area of Binalonan. The channel of distribution is the pathway of the business

18
to sell the products to end consumers.

Market Share

Market share is the percent of total sales in an industry generated by a

particular company. Market share is calculated by taking the company’s sales

over the period and dividing it by the total sales of the industry over the same

period. This metric is used to give a general idea of the size of a company

concerning its market and its competitors.

Figure 2.11, Market Share

MARKET SHARE
9%
17%
21%

16%
16%
8% 13%

1822 Café Brewnlonan GenZspot Hebrews

Kwings Café Haven Hour Café

The pie graph shows the market share of the three (7) major competitors

of Café Aromagic in Binalonan Pangasinan. 1822 Cafe got the highest market

share with 21% which means that they got the highest sales among the seven

Coffee shop. While Haven Café got 17 % of market share, which shows they are

second in having the highest sales. Brewnalonan Café and Kwing’s Café who got

16% of market share then genZspot Café who got 13% in market share and Hour

19
Café who got 9% in market share. Lastly the Hebrews Café who got 8% in

market share that completes the total of 100%. Based on the results of pie graph,

the market shares of the seven competitors are not far apart which means that

the competition among them is intense.

Product and Market Focus

The proposed business Cafe Aromagic, offers various and different goods.

The products include Frothy Vanilla Cloud, Hazelnut Haven, Toasted Coconut

Cream, Aroma Twist Croissant, Choco Charm Eclairs and Chocolate Bliss.

The market focus of Cafe Aromagic is on individuals who appreciate and

enjoy a variety of coffee and pastries. This may include coffee lovers, pastry

Enthusiasts, and individuals who seek a cozy and relaxing environment to enjoy

their drinks. The cafe aims to attract customers from different demographic

groups, such as students, professionals, and local residents, by offering a

diverse menu and creating an inviting atmosphere.

SWOT Analysis

The SWOT analysis is a tool, for evaluating the strengths, weaknesses,

opportunities and threats of Cafe Aromagic. By examining both external factors

this analysis will provide insights, into the feasibility and potential success of

opening the cafe.

Table 2.11, SWOT Analysis

STRENGTH WEAKNESS

 Quality products and service  Difficult to Maintain Cash Flow.

 Direct relationship with customer  Low Profit Margin.

20
  Creative and attractive product  Price Sensitive Market.
 Continuous sale  Costly Supplier.
 Located at the long highway near at  The Low Price of Competitors.
UEP, MEAB, JUAN G  Newly open business
 Convenience and relaxing  Strong exist competitors
environment
 Affordable product price that can be
avail by student, teachers and
lower upper class
OPPORTUNITIES THREAT
 Open for small meetings and  Economic stability that affects
seminars. the cost of raw materials ang
 Provide and training students in the ingredients.
coffee industry.  Competitors is located nearby.
 Can implement a loyalty program.  Emerging customer needs and
 Loyal returning customers. trends.
 Introduce an app or QR menu for  Customer relationships and
ordering. customer lifetime value.
 Attract new customers through  Disaster and Calamities
special offers.
 Develop an innovation culture for
lots of new ideas.
 Build stronger customer
relationships.
 Unique coffee recipes and flavors.

MARKETING AND SALES STRATEGY

Business Mission and Vision

Mission

Café Aromagic mission is to become the go-to destination for coffee and

tea lovers, offering a unique and unforgettable sensory experience through a

variety of aromas and flavors.

Vision

5 Years from now we will be among the top 10 best coffee shop in the

21
Pangasinan. To become the foremost destination for sensory delight, and we'll

make sure Café Aromagic is remembered by following the trend.

Business Logo

Figure 2.12, Café Aromagic Logo

The logo is on the aroma cup symbolizing the delicious coffee you can

smell. And the cup you can smell and sip will leave a magical feeling you will feel.

As you can see, the sun and moon are used in the logo to represent the fact that

cafe is open from sunrise till midnight and that don't just serve you coffee or sell

you coffee but also provide you with magical experiences each and every day.

The magic referred to in the logo is the taste of coffee. Café Aromagic prove that

with every sip you will be surprised by its taste and you will come back so that

you can give the cafe aromatic more than the magical that we did not expect.

“Magical in every cup" our tagline suggests that Café Aromagic is not just

a place to get coffee but a destination where each cup of coffee is carefully

crafted to be a magical and enchanting experience. It conveys the idea that every

detail, from the selection of coffee beans to the brewing process, with a touch of

22
magic we create a truly delightful and memorable coffee experience for

customers. So, to all coffee lovers there it's been a while, have a magical break.

1. Digital Presence

Café Aromagic will use social media platforms, like Instagram, Facebook and

Tiktok to showcase the cafes atmosphere, like coffee and pastries. Make sure to

share high quality photos interact with your followers and organize promotions or

giveaways to increase brand visibility and attract new customers.

Figure 2.13, Facebook Page, Instagram Account and Tiktok Account

2. Loyalty Programs

Having a loyalty program, in place can be beneficial for attracting and

keeping customers. This may involve providing discounts, complimentary

items or incentives for visits or purchases, at Café Aromagic.

Figure 2.14, Café Aromagic Loyalty Card

3.

23
 Online Reviews and Referrals

It is crucial for any business to receive reviews and recommendations,

through word of mouth. The strategy involves encouraging the customers to

share their experiences by leaving reviews on the website and social media

platforms. Additionally, it will provide incentives, like coffee or meals as a way

to motivate our customers to help us promote the café.

4. Special Offers and Promotions

Café Aromagic plan to provide promotions and discounts in order to attract

new customers and keep existing ones. This may involve giving first time

customers a discount highlighting seasonal menu items or implementing a loyalty

program that rewards customers after they make a number of purchases.

Figure 2.15, Café Aromagic Flyers

24
 Chapter III

MANAGEMENT STUDY

Management study play a role, in helping organizations improve their

performance. By equipping leaders, with the knowledge and skills it enables

them to make decisions effectively manage resources and achieve organizational

goals. Within management studies important aspects include job analysis charts

and employee compensation schemes.

Job Analysis

Coffee shops are frequently hives of activity, and maintaining the smooth

functioning requires a staff of knowledgeable experts. Employing staff members

who are enthusiastic about creating coffee products, offering superior customer

service, and maintaining a clean and organized shop are crucial for coffee shop

owners. By doing this, you can make sure that your clients are content, your staff

are pleased, and your business is successful.

RECRUITMENT AND SELECTION PROCESS

When you need to fill a position, you want to be certain that you choose the

applicant with the qualifications that will best suit the role and advance your

business. Here is a 9-step recruitment process you may use to improve your

success rate in locating an ideal applicant.

25
 Figure 3.1, Recruitment and selection process

Perform
Define Job Make Job
Background
Requirements Offers
Checks

Determine
Conduct Onboarding
Recruitment
Interviews and Training
Methods

Create a Job Evaluate and

Screening Resume
Advertisement Improve

Step 1: Define Job Requirements

The first step in creating a recruitment and selection process is to clearly

define the job requirements for the position in Cafe Aromagic. This includes the

qualifications, skills, and experience required for the role, as well as the job

description and responsibilities.

Step 2: Determine Recruitment Methods

Next, decide on the methods you will use to attract qualified candidates for

the job. This could include a combination of internal job postings, external job

postings on job boards and social media, employee referrals, and partnering with

recruitment agencies.

Step 3: Create a Job Advertisement

Using the information from step 1, create a job advertisement that clearly

outlines the role and requirements. The job advertisement should also include

information about the company culture and any benefits or perks offered by Cafe

26
Aromagic.

Step 4: Screening Resumes

Once the job advertisement is posted, you will start to receive resumes and

applications. Develop a screening process to review these applications and

identify potential candidates for the position. This could include reviewing

resumes, conducting phone screenings, or using applicant tracking software.

Step 5: Conduct Interviews

Next, conduct interviews with the top candidates to further assess their

qualifications, skills, and fit for the company culture. Depending on the role and

level of the position, this could involve multiple rounds of interviews with different

managers or team members.

Step 6: Perform Background Checks

Before making a job offer, it is important to conduct background checks on the

final candidate. This may include reference checks, criminal background checks,

and verification of education and past employment.

Step 7: Make Job Offers

Once a final candidate has been selected and all background checks are

clear, it's time to make a job offer. This should include details such as salary,

benefits, and start date.

Step 8: Onboarding and Training

After the candidate accepts the job offer, it is important to have a thorough

onboarding and training process in place. This will help the new employee get up

27
to speed quickly and feel comfortable in their new role.

Step 9: Evaluate and Improve

After the recruitment and selection process has been completed, it is

important to evaluate its effectiveness and make any necessary improvements

for future hiring needs. This could include gathering feedback from the new

employee and hiring managers, as well as analyzing the success of the new hire

in their role.

Requirements of the Employees

 Resume with 3 recent 2x2 photos.

 Photo copy of NSO Birth Certificate.

 NBI, Police Clearance, Barangay clearance.

 Certification of previous employer (if any).

 Transcript of Records or any Credentials.

 Pag – ibig

 SSS – E1

 Health Permit from the Municipal health office

Job Description, Job Qualifications and Job Responsibilities

This part of the study shows the position of the employees in the business,

the description of the work they will do and the qualification of an employee must

28
possess.

JOB DESCRIPTION

Manager- plays a crucial role in ensuring the cafe runs efficiently and

responsible implementing marketing strategies to attract and retain customers,

such as advertising, promotions, and social media engagement.

JOB QUALIFICATIONS

 Any Bachelor's degree in BS Hospitality Management or Business

Administration

 Knowledgeable of food health and safety and regulations

 Proven management experience in the hospitality industry.

 A food handler’s license.

 Knowledgeable of food health and safety regulations.

 Excellent organizational and the management skills.

 Effective communication skills.

DUTIES AND RESPONSIBILITIES

 Hiring, training, and scheduling employees, including baristas, servers,

and kitchen staff.

 Manage day to day operations of the café.

 Hire and on-board new wait staff and baristas.

 Coordinate with vendors and order supplies, as needed.

 Maintain updated records of daily, weekly, and monthly revenues and

expenses.

29
  Add new menu items based on seasonality and customers preferences.

 Advise staff on the best ways to resolve issues with clients and deliver

excellent customer service.

JOB DESCRIPTION

Head Barista- managing the coffee preparation and service aspects of the

establishment and have a passion for coffee and a deep knowledge of different

coffee brewing methods and techniques. Responsible for ensuring the quality

and consistency of coffee beverages.

JOB QUALIFICATIONS

 Extensive experience in the coffee industry, with at least 5 years as a

barista.

 Knowledge of coffee bean varieties, brewing methods, and latte art.

 Certification or training in coffee making and barista skills.

 Excellent customer service and communication skills.

 Strong leadership and management skills.

DUTIES AND RESPONSIBILITIES

 Training and mentoring other baristas to make sure they can create high-

quality coffee drinks and provide excellent customer service.

 Train and supervise other baristas to ensure quality and consistency in

coffee preparation.

 Create and maintain a welcoming environment for customers,

30
 encouraging them to try new coffee drinks and interact with the staff.

 Keep up-to-date with the latest trends and techniques in coffee making.

 Work closely with the kitchen staff to ensure timely service of food and

drinks.

 Maintain the cleanliness and organization of the coffee bar and the dining

area.

JOB DESCRIPTION

Cashier - in charge of managing financial transactions with patrons. They are

primarily responsible for ringing up orders, taking payments, giving change, and

maintaining the accuracy and security of the cafe's cash register or point-of-sale

system.

JOB QUALIFICATIONS

 Knowledgeable regarding of Pos Machine

 Friendly and positive attitude.

 Excellent customer service.

 Excellent communication skills.

 Ability to make change.

 Basic Math skills.

DUTIES AND RESPONSIBILITIES

 Promote cafe items or specials to increase sales, such as suggesting add-

ons or upsizing drinks.

31
  Process sales transactions.

 Calculate the cost of products or services.

 Accept payments.

 Calculate and return change when required by the payment method.

 Maintain adequate change denominations in the cash drawer and

request additional change.

 Answer customer questions about products or services.

 Reconcile cash drawers and sales receipts.

 Repost issues with equipment.

JOB DESCRIPTION

Pastry Chef- responsible for preparing a wide variety of delicious desserts,

pastries, and sweet goods.

JOB QUALIFICATIONS

 Culinary Degree: A degree in pastry arts or a related culinary field.

 Experience: Minimum of 2 years’ experience in a professional baking

environment.

 Creativity: Ability to create unique, eye-catching pastry designs.

 Time Management: Efficient time management skills to handle a busy

kitchen environment.

 Teamwork: Excellent teamwork and communication skills to ensure a

harmonious work environment.

32
DUTIES AND RESPONSIBILITIES

 Operating and managing the pastry section of the kitchen and liaising with

the executive and sous chefs to ensure a successful working environment.

 Preparing ingredients and handling baking and other kitchen equipment.

 Decorating pastries and desserts to ensure beautiful and tasteful

presentation.

 Monitoring the stock of baking ingredients.

 Ordering new supplies, ingredients, and equipment for the pastry section,

when needed, and within budget.

JOB DESCRIPTION

Kitchen Staff-refers to those who work in a kitchen, frequently in hotels,

restaurants, or other food service organizations. They play a variety of jobs in the

food preparation and serving process, including chefs, cooks, sous chefs,

dishwashers, and prep cooks.

JOB QUALIFICATIONS

 Previous experience in a kitchen, even as a dishwasher or prep cook, is

valuable.

 Understanding of food safety and sanitation regulations is crucial.

 Good knife skills, cooking techniques, and the ability to follow recipes

accurately are important.

33
DUTIES AND RESPONSIBILITIES

 Cutting, chopping, and prepping ingredients as per recipes and

instructions.

 Adhering to food safety guidelines, maintaining cleanliness, and handling

food safely.

 Keeping track of ingredient levels, restocking, and informing the chef or

manager when supplies are low.

 Regularly cleaning and sanitizing workstations, utensils, and equipment.

 Collaborating with other kitchen staff to ensure smooth operations during

service.

JOB DESCRIPTION

Service Crew – Greet customers and offers restaurant or café menus, answers

questions about menu offerings, processes food and drink order, carries food

and drinks from kitchen to tables, and prepares bills and process payments.

JOB QUALIFICATIONS

 Highschool Diploma

 Attention to detail.

 Ability to multitask.

 Written and verbal communication.

 Customers service skills.

 Ability to work under pressure.

34
  Positive attitude.

DUTIES AND RESPONSIBILITIES

 Greeting guests and taking drink and food orders.

 Staying attentive to the needs of guests in the dining area.

 Delivering food from the kitchen to the guests.

 Ensuring the food order is made correctly by kitchen staff and looks

presentable for guests.

 Checking the quality and presentation of dishes before they are served.

Organizational Structure

An organizational structure is a system that outlines how certain activities

are directed in order to achieve the goals of an organization. An

organizational structure details how certain activities are delegated toward

achieving an organization’s goal. It outlines an employee’s duties and

obligations in a corporation. Café Aromagic uses partnerships as their form of

business organization.

Figure 3.2: Organizational Structure

35
Employee Compensation Scheme

Workers face one of two types of compensation schemes. Under both

contracts, workers are paid a fixed base wage plus additional pay based on

performance after reaching a productivity target.

Salaries will be computed accordance to their position and day of work,

employees are assuming to receive a “minimum wage” in exchange of their work

that they complete.

Name Monthly Daily Gross Gross

Basic Rate Pay Pay
Rate

36
Manzano, Trixie Ann 18,000.00 600.00 9,000.00 9,000.00

Total Confi 18,000.00 9,000.00 9,000.00

Bagni, Abegail 12,000.00 400.00 6,000.00 6,000.00

Abrin Kate 12,000.00 400.00 6,000.00 6,000.00

Tingco, Rosalinda 12,000.00 400.00 6,000.00 6,000.00

Uzbiztondo, Engilbert 11,250.00 375.00 5,625.00 5,625.00

Alzate, Roger 11,250.00 375.00 5,625.00 5,625.00

Espinoza, Angeline 11,250.00 375.00 5,625.00 5,625.00

Oliveras, Andrea 11,250.00 375.00 5,625.00 5,625.00

Fabro, Zayin 11,250.00 375.00 5,625.00 5,625.00

Total Non-Confi. 92,250.00 - 46,125.00 46,125.00

Grand Total 110,250.00 55,125.00 55,125.00

Table 3.1 Salary of Management Staff

Table3.2, Schedule of the Staff

Mon Tue Wed Thurs Fri Satur Sun

Café 10:00am 10:00am- 10:00am 10:00am 10:00am- 10:00am-
Manager -7:00pm 7:00pm -7:00pm -7:00pm 7:00pm 7:00pm

Head 10:00am- 10:00am- 10:00am- 10:00am- 10:00am- 10:00am-

Barista 7:00pm 7:00pm 7:00pm 7:00pm 7:00pm 7:00pm

Pastry 10:00am- 10:00am- 10:00am- 10:00am- 10:00am- 10:00am-

Chef 7:00pm 7:00pm 7:00pm 7:00pm 7:00pm 7:00pm

Barista 10:00am- 10:00am- 10:00am- 10:00am- 10:00am- 10:00am-

7:00pm 7:00pm 7:00pm 7:00pm 7:00pm 7:00pm
Cashier 10:00am- 10:00am- 10:00am- 10:00am- 10:00am- 10:00am-
7:00pm 7:00pm 7:00pm 7:00pm 7:00pm 7:00pm
Cashier 10:00am- 10:00am- 10:00am- 10:00am- 10:00am- 10:00am-
7:00pm 7:00pm 7:00pm 7:00pm 7:00pm 7:00pm
Kitchen 10:00am- 10:00am- 10:00am- 10:00am- 10:00am- 10:00am-
staff 7:00pm 7:00pm 7:00pm 7:00pm 7:00pm 7:00pm

37
 Kitchen 10:00am- 10:00am- 10:00am- 10:00am- 10:00am- 10:00am-
staff 7:00pm 7:00pm 7:00pm 7:00pm 7:00pm 7:00pm

Service 10:00am- 10:00am- 10:00am- 10:00am- 10:00am- 10:00am-

Crew 7:00pm 7:00pm 7:00pm 7:00pm 7:00pm 7:00pm

*All the red marks on the working schedule means closed

Sunday is the day off for the staff at Cafe Aromagic because it is

observed as the holy day of the Lord. It's also their one day off to relax and

spend quality time together as a family.

Coffee Shop Rules and Policies

In order to allow each guest or customer to experience the best use of

coffee shop facilities without causing undue strain or excessive cost of

operation the coffee shop management encourages everyone to observe

and abide with the following.

 Business Hour- Our business hours are 10 am to 7 pm, Mondays to

Sundays with their specific day off
 Standard Delivery- Expect the delivery of most orders of the Cup
and Beans within 30 minutes after placing the order.
 WIFI/ Internet use- By using the coffee shop’s WIFI/ internet access
the customer agrees and / or accepts the rules of Café Aromagic.
Each guest shall be allowed to use the WIFI password to only one
electronic device. Sharing WIFI password is not allowed.
 Use of the coffee shop’s electrical outlet- Prolonged plugging for
more than one hour of any electronic device is generally not allowed.

38
  No bringing in of outside food/ drinks- Food and drinks purchased
outside of the coffee shop or hotel shall not be allowed to be brought
inside the coffee shop area.
 Liquor/ Smoking- Liquor and or any kind of alcoholic beverages are
not allowed inside the coffee shop. Smoking is likewise not allowed
inside the coffee shop.
 Parking/ Unattended Vehicles- Parking for coffee shop is allowed
in front of the Café Aromagic and shall be first come first serve.
 Proper behavior/conduct- Guest are advise to observe proper and
orderly conduct inside the coffee shop. Placing or putting their legs or
feet on the chair or table is prohibited.
 One-hour Meal Period – All employees are entitled to a meal period
not less than or more than 60 minutes.
 Absences – Employees must acquire manager consent for an
unnecessary absence due to personal reasons at least one day
beforehand. The employee’s absence will be regarded as an absent
without leave if he or she does not report for work within two (2)
days.
 Punctuality (Late) – Each employee will be given a five (5) minute
grace period.
 Performance Review – The performance reviews are designed for
the employees to discuss their tasks and are required to submit at
the end of the month for the monitoring of activities.

Grooming and hygiene Policy

 Hair should be clean, combed, and neatly trimmed or arranged. Unkempt

hair is not permitted. Sideburns, mustaches, and beards should be neatly
trimmed.
 Use proper uniform, wearing apron and hairnet to the kitchen staff is
appropriate.

39
  Kitchen staff and cleaning staff should always wear the safety shoes issued
when on duty.
 Use the correct chemicals to clean equipment, make sure there are no food
residues and rinse the equipment with clean water of drinking quality
 Clean as you go -do not leave dirty equipment until the end of the day
before cleaning it.

Personal Belongings

Visitors to the milk tea shop are encouraged to protect their items or

personal/valuables both inside and outside their automobiles. The administration

will not be held liable for any damage or loss of valuable/personal items. To avoid

loss of belongings, guests are encouraged to keep their vehicles secured and

locked.

Behavior Policy

Respect is vital in the workplace for preventing discrimination,

harassment, and victimization. Employees must follow our equal opportunity

policy in all facets of their employment.

Violating above all the policies will be punished accordingly, as follow:

1st Offense – Warning

2nd Offense – Management will talk to the violator

3rd Offense – Contract Terminated

40
Employee’s Benefits, Coverage and Contribution

Table 3.3, Employee’s Benefits

Holiday Among the pre-identified Philippine holidays for the

current fiscal year, Café Aromagic allows employees to elect
Guidelines
thirteen (13) elective holidays to observe from among the list
of the regular and special non-working days. This provides
employees the ability to choose the holidays they would like
to observe in line with their preference/life situation. Failure to
report to work on a non-elective holiday shall be considered
an absence. Details / guidelines are subject to changes and
updates based on annually released

SSS/Phil Health Benefits under SSS/Phil Health Benefits will be granted in

accordance with applicable law. Implementation of producers
Benefits
relative to entitlement of said benefits should be done in
accordance with the regulations to be promulgated by the
management.
 Retirement. Cash benefit paid out as a monthly
pension or as lump sum granted to a retiree who
are at least 60 years old.
 Sick leave. Entitles employees to at least 90% of their
daily wage in case of hospitalization or need to stay
home due to illness. Employees can receive this sick
pay up to 120 days a year. Employers pay this leave
benefit, which then gets reimbursed by the SSS.
 Disability. Employees who develop permanent

41
 disabilities are entitled to a minimum monthly pension
depending on years of service.
 Maternity leave. Grants 105 days of fully-paid leave to
employees becoming mothers.
 Death benefit. Beneficiaries of deceased employees
are given a lump sum or monthly pension.
 Unemployment insurance. Offers a one-time
payment to employees who are “involuntarily
separated” from work. This does not apply to
employees who are let go due to misconduct.
 Funeral grants. Given to fund the funeral expenses of
the deceased employee.

13th Month Pay 13th month pay equivalent to 1-month base pay,
based on service for the year; payout is every November.

Uniform

Figure 3.3, Uniform

42
 MANAGER STAFF (Barista, Cashier, Crew and

Kitchen Staff)

Chapter IV

TECHNICAL STUDY

In this section will discuss the specifications, for the facilities, such, as

their size and quantity. It will also cover the list of materials needed to produce

43
 the product well as the procedures involved in creating top notch goods and

services and the floor plan perspective.

Table 4.1, Coffee shop store facilities and Equipment

Particular/ Description Price QTY Total Cost
Picture
Air pots Airpots, short for airpots, 2,600 1 2,600
typically refer to insulated
beverage dispensers used
to keep liquids, such as
coffee or tea, hot or cold
for an extended period.
Espresso An espresso 200,000 1 200,000
Machine machine is a
specialized coffee
appliance designed
to brew concentrated
coffee called
espresso. It operates
by forcing hot water
through finely-ground
coffee under high
pressure, producing
a small, strong shot
of coffee with a rich
flavor and a layer of
crema
Coffee A coffee grinder is a 15,000 1 15,000
Grinder kitchen appliance
specifically designed
for grinding coffee
beans into the
desired consistency
for brewing.
Espresso A coffee tamper is a 690 3 2,070
stamp tool used to compact,
or tamp, the coffee
grounds into the
portafilter of an
espresso machine
before brewing.
Frothing Frothing pitchers are 600 5 3,000
Pitchers stainless steel
containers designed
for steaming and
frothing milk,
commonly used in
conjunction with
espresso machines

A milk frother is a 7,500 1 7,500

44
Milk frother small, handheld or
countertop device
designed to aerate
and froth milk,
creating a light and
creamy foam.
Coffee and Coffee and beverage 30 5 150
Beverage labeling involves
Labeling providing information
on packaging or
containers to inform
consumers about the
product.
Display A display case in a 5,299 1 5,299
case coffee shop is a
stylish and functional
fixture designed to
showcase an
assortment of
tempting treats and
beverages.
Fridge A refrigerator in a 27,999 1 27,999
coffee shop is an
essential appliance
designed to store
and preserve various
perishable items,
ensuring freshness
and quality.
Gas A gas burner with an 18,523 1 18,523
Burner oven is a kitchen
with Oven appliance that
combines a cooktop
with burners for
cooking on the top
surface and an oven
for baking and
roasting.

Kitchen A kitchen exhaust 10,000 1 10,000

Exhaust fan, also known as a
Fan range hood or
extractor hood, is a
ventilation appliance
installed above the
cooking surface in a
kitchen.

Air An air conditioner is 28,899 1 28,899

condition a cooling system
designed to regulate
and maintain indoor

45
 temperature and
humidity levels
Total 361,620

Table 4.2, Coffee shop store Utensils

Particular/ Description Price QTY Total Cost
Picture

Coffee A coffee container is 10 pcs 200 2,000

Container a specialized storage
vessel designed to
preserve the
freshness and flavor
of coffee beans or
ground coffee.
Coffee A coffee mug is a 25 pcs 390 9,500
Mug cylindrical or conical-
shaped cup
specifically designed
for the consumption
of coffee.

Espresso Espresso cups are 10 pcs 3 380

Cups small, specialized 8
cups designed for
serving concentrated
shots of espresso

Disposable Disposable paper 500 pcs 1,250

Paper Cup cups are favored for 250
their convenience
and ease of use,
eliminating the need
for washing and
reducing
environmental impact
compared to
reusable alternatives.

Mixing A mixing bowl is a 5 pcs 150 750

Bowl kitchen essential
designed for
combining, stirring,
and blending
ingredients during
food preparation.

Measuring A measuring spoon 3 set 109 327

Spoon is a kitchen utensil

46
 specifically designed
for accurately
measuring and
portioning small
quantities of dry or
liquid ingredients.
Measuring Measuring cups for 3 set 300 900
Cup dry ingredients
usually have a flat
rim to allow for
leveling off the
ingredients with a
straight edge for
precise
measurements.
Plates Plates are versatile 25 pcs 70 1,750
and can be
categorized based on
their intended use,
such as dinner plates
for main courses,
salad plates for
appetizers or salads,
and dessert plates
for sweets.
Spatula A spatula is a kitchen 5 pcs 60 300
tool with a broad, flat,
and typically flexible
blade. It is used for a
variety of purposes in
cooking and baking,
such as flipping,
turning, and lifting
food items.
Spoon and Spoons and forks are 25 set 150 3,750
Fork essential
components of table
settings, providing
practical tools for
conveying food to the
mouth while allowing
for a comfortable and
enjoyable dining
experience
Saucier A saucier is a 20 pcs 140 2,800
specialized cooking
pan characterized by
its wide, shallow, and
rounded shape.

Total 23,707

Table 4.3, Coffee Shop furniture’s and fixtures

47
Particular/ Description Price QTY Total Cost
Picture
Table A coffee shop table is 5,500 12 66,000
a functional and
aesthetically pleasing
piece of furniture
designed to enhance
the overall
experience of
patrons enjoying
coffee and other
beverages
Chairs Chairs for a coffee 1,100 40 44,000
shop are carefully
chosen furnishings
that contribute to the
ambiance and
comfort of the space.

Long Table A long table for a 7,300 1 7,300

coffee shop is a
communal and
versatile piece of
furniture designed to
accommodate
multiple patrons in a
shared seating
arrangement.
Couch A couch for a coffee 16,700 1 16,700
shop is a comfortable
and inviting piece of
seating designed to
enhance the lounge
or relaxation area
within the
establishment
Storage A storage cabinet for 11,000 1 11,000
Cabinet a coffee shop is a
functional and
practical piece of
furniture designed to
organize and store
various items
essential for daily
operations
Shelf shelf organizer for a 6,799 3 20,397
Organizer coffee shop is a
practical and space-
efficient storage
solution designed to
keep various items
neatly arranged and
easily accessible.

48
Total 165,397

Table 4.4, Coffee Shop Office Supplies

Particulars/ Description Price QTY Total Cost
Picture
Ballpen ballpoint pen is a 10.00 10 80.00
small, practical tool
often branded with
the coffee shop's
logo or name.
Carbon Carbon receipt 130.00 1 130.00
Receipts paper for a coffee
paper shop is a
specialized type of
paper used to print
customer receipts
Log Book A log book for a 250.00 1 250.00
coffee shop is a
written record or
journal that helps
manage and
organize various
aspects of daily
operations.
Scissors Scissors are hand- 100.00 1 100.00
operated cutting
tools with two
blades that pivot
around a fulcrum

Coupon Coupons are 200.00 1 200.00

commonly
distributed by
businesses,
including coffee
shops

Total 760

Table 4.5, Coffee shop Cleaning Tools

Name Description Price Total

49
Floor mat A floor mat is a protective 250.00 1 250.00
and functional covering
placed on the floor to
serve various purposes,
such as enhancing
safety, cleanliness, and
comfort within a space.
Sweep broom and A sweep broom and 230.00 1 230.00
Dustpan dustpan are essential
cleaning tools used to
remove debris, dust, and
dirt from floors

Trash Bin A trash bin, also known 100.000 5 500.00

as a garbage bin or waste
receptacle, is a container
specifically designed for
the disposal of waste
materials.
Plants Plants in a coffee shop 350.00 3 1,000.00
serve both aesthetic and
functional purposes. They
contribute to the overall
ambiance, creating a
welcoming and relaxing
atmosphere for patrons.
Alcohol "Alcohol" is a term that 350 500ml 350.00
generally refers to a class
of organic compounds
characterized by the
presence of a hydroxyl (-
OH) functional group
attached to a carbon
atom.
Tissue Roll 2 ply In everyday use, "tissue" 500 48 rolls 500.00
often refers to tissue
paper. This is a thin, soft
paper commonly used for
personal hygiene, such
as wiping the nose or
face.
Handwash Soap Hand soap is a cleansing 150.00 3 450.00
agent specifically
formulated for washing
hands. It is designed to
remove dirt, bacteria, and
other contaminants from
the skin, promoting good
hygiene
Cleaning Cloth A cleaning cloth is a 50.00 5 250.00
piece of fabric or material
specifically designed for
cleaning surfaces and
objects.

50
Dishwashing Dishwashing liquid, often 200.00 1000ml 200.00
Liquid simply referred to as dish
soap, is a detergent
specifically formulated for
washing dishes, utensils,
and cookware.
Small Paper Bag A paper bag is a 500.00 1,600 pcs 500.00
disposable bag made
primarily from paper,
typically with handles for
carrying.11

Total 4,230.00

51
Plant Location and Size.
Café Aromagic will be located on the Mc Arthur Canarvacanan

Binalonan, Pangasinan beside the HBI Hardware and in front of University

of Eastern Binalonan with the size of 238 square meters. The rental fee is

30,000 pesos. All operational activities are held here in the area.

Floor Plan and Perspective

Figure 4.1, Floor Plan

52
53
Figure 4.2, Perspective

54
 Figure 4.3, Front View

Figure

55
 4.4, Side View

Figure 4.5,

Interior

Vicinity Map

Figure 4.6,

Vicinity Map

56
Pre-Operating Activities

Pre-operating activities are activities that will take place before the

actual operation of the proposed business.

Conducting of Feasibility Study

This activity will be done to determine the profitability and viability of

the proposed business including the four (4) aspects of the business such

as the market, management, technical, and socio-economic aspect. This

activity will be done within two (2) months to complete.

Formation of Partnership

In this activity, the partnership will be formally organized. The

organizational set-up will be considered. The source of financing will be

discussed and the proposed business will be studied based on the

capability. This study would take about one (1) month to complete the

setting-up of the organization.

Processing of Business Permits and Licenses

This activity, the partners will make sure to operate the business

legally and by accordance with the government laws by securing permits

57
and licenses. It would take one (1) month before the business would have

permits and licenses.

Building Renovation

This activity will be the preparation of the target location and the building

renovation of the proposed project will be raised settled on the site selected

based on the design and lay-out. This would take two (3) months to

complete.

Acquisition of Equipment

This activity will be the purchasing of the equipment’s and furniture and

fixtures that is needed in the operation of the business. This would take one

(1) month to complete.

Hiring and Training of Employees

In this activity, the partners will undertake hiring procedures to fill in the

needed position in the proposed business with the most qualified

applicants. Then the hired applicant will be oriented and trained about their

job description and the policies imposed by the management. This activity

would take one (1) month to complete.

Promotional Activities

Pre-Operating activities will also include the promotional activities to

properly introduce the business to the market. This activity would take one

(1) month to complete before the actual operation.

Start of Actual Business operation.

58
 After the above-mentioned activities, the proposed business will be

starting in the actual operation.

Project Time-table (Gantt chart)

Table 4.6, Project Time-Table

Pre- Monthly Duration

Operating
Activities
1 2 3 4 5 6 7 8
Conducting a
Feasibility
Study
Formation of
Partnership
Processing
of Business
Permits and
Licenses
Building
Renovation
Hiring and
Orientation
of
Employment
Acquisition
of Equipment
Promotional
Activities
Start of
Actual
Operation

Process and Services Flow

At Cafe Aromagic, our main goal is to provide our customers with a

unique and memorable dining experience through the high-quality food,

warm atmosphere, and exceptional service. To achieve this, Café Aromagic

have developed a comprehensive process and service flow that focuses on

59
delivering the products to the customers in the most convenient and

efficient ways possible.

1. Thru Walk in;

Figure 4.7, Thru walk in customer

For the walk-in customer, Café Aromagic gave them a comfortable in

terms of ordering their coffee. It will need to check the cleanliness of our

café shop before the opening of the Café Aromagic. As you can see first

step is start which mean open , next step is take the order of the customer

in the counter, next is introduce the available menu, next is take the order of

customer, next is customer will pay the order in the counter, next is check

the available table and guide the customer in their table, next step is serve

their order and if they are done the next step is we thank them for coming in

Café Aromagic, next is clean the table and end.

2. Thru Delivery

Figure 4.8, Thru Delivery;

60
 And for the delivery café aromagic will create a Facebook page for

the customer but it will have a delivery fee it cost 10-50 pesos it depends on

the location, therefore the first step is check the Facebook page message

request, next is send the available menu, next is ask them what they want,

next is check the order, next is take their order, next is ask their address or

details of location, next is deliver the order, next is get the payment and the

delivery fee, next is leave and end of transaction.

3.Drive Thru Experience

Figure 4.9, Drive Thru Experience

61
 Cafe Aromagic Drive-Thru is a type of service provided by a

business that allows customers to purchase products without leaving their

cars, and less hassle. The Drive-Thru process at Cafe Aromagic might go

as follows: The customer drives up to the monitor machine and shows up

the menu board and reviews the options. Cafe Aromagic employee, through

an intercom system, greets the customer and takes their order. A customer

will use their voice to take an order after reviewing the menu board. After

taking an order, a customer will drive by the cashier's window to pay the

bills. The order is keyed into the computer system making a record for the

kitchen staff, who then prepare the order. Once ready, the order is passed

to the drive-thru window station, where the customer pays and receives

their order

List of Suppliers

Table 4.7, Café Aromagic Suppliers

62
Company Description Address

Name

1.Everyday Everyday Coffee Roasters is Santa Rosa,

Coffee an e-commerce coffee 4026 Laguna

Roasters company that offers various

high-quality green bean

coffee beans sourced from all

over the world, roasted upon

order and delivered right to

your door-step.

2. Curve Curve Coffee Collaborators Tunasan,

Coffee are roasters and distributors Muntinlupa

Collaborators of Philippine Specialty Coffee. City,

As collaborators, they are Philippines

proud to be able to work with

various stakeholders from

farmers, processors, barista

and cafes.

3. Coffeellera Coffeellera is a coffee beans Mandaluyong

supplier for local coffee shop City, Metro

owners, coffee lovers, and Manila,

coffee souvenir buyers. Philippines

1550

63
 4.Escolta The Escolta coffee company G/F First

Coffee Manila-based coffee roaster United

Company whose team is obsessed with Building, 413

coffee and its journey from Escolta Street,

cherry to cup and the Manila,

potential unlocked every step Philippines

of the way.

Labor Supply
The proposed business will select the best person that will fit to the

position to perform the responsibilities effectively and efficiently who are coming

from the residents of Binalonan. There is no difficulty in hiring the needed

employees because they can be seen in Binalonan where the proposed business

will be raised.

Table 4.8, Coffee shop Utilities

Total Cost/ Total Cost/ Year
Utilities Sources Price Month
Electricity PANELCO 10,000 10,000 120,000
Telephone 1,500 1,500 18,000
with Internet PLDT
Water BIWAD 500 500 6,000
Rent 30,000 30,000 360,000
Total 504,000
Waste Disposal

Waste disposal is including the activities and actions required to

manage waste from its inception to its disposal. This includes the collection,

treatment and disposal of waste together with monitoring and regulation of

64
the waste management process. The advantage of waste disposal is it

keeps our environment clean and fresh.

Café Aromagic will follow the proper waste disposal by using the

biodegradable and non-biodegradable disposal. We are responsible for

whatever trash or waste our business produces for we believe that simple

mistake and unethical doing of the people inside of the organization will

reflect to the company itself.

Production Process

The production process of the business products is the highlight of

the business to attain the specific goals, to create output from input

conversion process.

Table 4.9, Procedure in making Frothy Vanilla cloud

FROTHY VANILLA CLOUD
Ingredients Procedure
1 cup milk 1.Heat the Milk:
1 tbsp sugar  Warm the milk in a small saucepan over
1/2 tsp vanilla extract medium heat or in the microwave until it's
2 tbsp brewed coffee warm but not boiling.
2.Mix Vanilla Sugar:
 In a small bowl, mix the sugar and vanilla
extract together until well combined.
3.Froth the Milk:
 If you have a milk frother, froth the warm
milk until it becomes light and frothy.
4.Add Vanilla Sugar:

65
  While the milk is still frothy, add the vanilla
sugar mixture. Stir until the sugar is
dissolved.
5.Serve:
 Pour the frothy vanilla milk over your
favorite beverage, such as coffee or hot
chocolate.

Table 4.10, Procedure in making Hazelnut Haven Froth

Hazelnut Haven Froth
Ingredients Procedure
1 cup milk 1.Heat the Milk:
1 tbsp hazelnut syrup  Warm the milk in a small saucepan over
1 tbsp chopped medium heat or in the microwave until it's
hazelnuts warm but not boiling.
1/2 teaspoon sugar 2.Add Hazelnut Syrup:
 While the milk is warming, add the
hazelnut syrup to the cup.
3.Froth the Milk:
 If you have a milk frother, froth the warm
milk until it becomes light and frothy.
4.Combine with Hazelnuts:
 Stir in the chopped hazelnuts into the
frothy milk.
5.Adjust Sweetness:
 Taste the froth and adjust the sweetness
by adding sugar if needed. The hazelnut
syrup may already provide sweetness, so
adjust according to your taste.

66
 6.Serve:
 Pour the hazelnut-infused frothy milk over
your favorite beverage, such as coffee or
hot chocolate.
7.Optional Garnish:
 You can sprinkle a few chopped hazelnuts
on top for garnish

Table 4.11, Procedure in making Toasted Coconut Cream Froth

Toasted Coconut Cream Froth
Ingredients Procedure
1 cup hot brewed 1.Brew the Coffee:
coffee  Brew your favorite coffee using your
1/2 cup coconut preferred method. Make sure it's hot and
cream ready to go.
1 tbsp sweetened 2.Toast the Coconut:
shredded coconut  In a small pan over medium heat, add the
1 tsp sugar shredded coconut. Stir constantly until the
1/4 teaspoon vanilla coconut turns golden brown and releases
extract a fragrant aroma.
3.Prepare the Coconut Cream:
 In a small saucepan, heat the coconut
cream over medium heat until it's warm
but not boiling.
 Stir in the toasted coconut, sugar, and
vanilla extract. Continue to heat, stirring,
until the sugar is dissolved and the

67
 mixture is well combined.
4.Froth the Coconut Cream:
 If you have a milk frother, froth the
coconut cream mixture until it becomes
light and frothy.
5.Assemble Your Coffee:
 Pour the hot brewed coffee into your mug.
Carefully spoon the frothed coconut cream
on top of the coffee.
6.Optional Garnish:
 Sprinkle a little extra toasted coconut on
top for garnish.

Table 4.12, Procedure in making Chocolate Bliss Frothy Coffee

Chocolate Bliss Frothy Coffee
Ingredients Procedure
1 cup hot brewed 1.Brew the Coffee:
coffee  Brew your favorite coffee using your
2 tbsp cocoa powder preferred method. Make sure it's hot and
2 tbsp milk ready to go.
1 tbsp sugar 2.Prepare Chocolate Milk:
 In a small bowl, mix the chocolate syrup or
cocoa powder with the milk until well
combined. You're essentially making a
chocolate milk mixture.
3.Heat the Chocolate Milk:
 Warm the chocolate milk mixture in a
small saucepan over medium heat or in
the microwave until it's warm but not

68
 boiling.
4.Froth the Chocolate Milk:
 Froth the warm chocolate milk until it
becomes light and frothy.
5.Sweeten to Taste:
 Add sugar to the frothed chocolate milk
and stir until the sugar is dissolved.
6.Pour over Coffee:
 Pour the frothy chocolate milk over the hot
brewed coffee.
7.Optional Toppings:
 Top with whipped cream for an extra
indulgent treat.

Table 4.13, Procedure in making Aroma Twist Croissant

Aroma Twist Croissant
Ingredients Procedure
2 1/4 tsp yeast 1.Activate the Yeast:
1/4 cup warm water  In a small bowl, combine the warm water
1 cup warm milk and yeast. Let it sit for about 5-10 minutes
1/4 cup sugar until it becomes frothy.
3 cups all-purpose 2. Prepare the Dough:
1 teaspoon salt  In a large mixing bowl, combine the
1 cup butter activated yeast mixture, warm milk, sugar,
flour, and salt. Mix until a dough forms.
3. Incorporate Butter:
 Roll out the dough on a floured surface
into a rectangle. Place the cold butter in
the center and fold the dough over the
butter. Roll it out again and fold it into

69
 thirds. Repeat this process 3-4 times,
allowing the dough to rest in the
refrigerator for 30 minutes between each
fold.
4. Add Aromatic Twist:
 In a small bowl, mix the orange zest,
ground cinnamon, and brown sugar. Roll
out the croissant dough into a large
rectangle. Sprinkle the aromatic twist
mixture evenly over the dough.
5. Shape the Croissants:
 Cut the dough into triangles. Roll each
triangle tightly from the wider end to the
tip.
6. Let Them Rise:
 Place the rolled croissants on a baking
sheet lined with parchment paper. Cover
them with a clean kitchen towel and let
them rise for about 1-2 hours, or until
doubled in size.
7. Bake:
 Preheat your oven to 400°F (200°C).Bake
the croissants for 15-20 minutes or until
they are golden brown and puffed up.
Table 4.14, Procedure in making Choco Charm Eclairs
Choco Charm Eclairs
Ingredients Procedure
For Pastry: 1. Prepare the Pastry:
1 cup water  In a medium saucepan, combine water
1/2 cup unsalted

70
butter and butter. Bring to a boil.
1 cup all-purpose  Add the flour and salt all at once, stirring
flour vigorously with a wooden spoon until the
1/4 teaspoon salt mixture forms a ball and pulls away from
4 large eggs the sides of the pan.
 Remove from heat and let it cool for a

For the Chocolate couple of minutes.

Filling:  Add the eggs one at a time, beating well

1 cup heavy cream after each addition, until the batter is

1 cup semi-sweet smooth.

chocolate chips  Preheat your oven to 425°F (220°C).

1 tablespoon  Pipe or spoon the choux pastry onto a

unsalted butter baking sheet lined with parchment paper,

forming eclairs of your desired size.

For the Chocolate  Bake for 15 minutes at 425°F (220°C),

Glaze: then reduce the oven temperature to

375°F (190°C) and bake for an additional
1/2 cup semi-sweet
15 minutes or until the éclairs are golden
chocolate chips
brown. Allow them to cool.
1/4 cup heavy cream
2. Prepare the Chocolate Filling:
1 tbsp powdered
sugar  In a small saucepan, heat the heavy
cream until it just begins to simmer.
 Pour the hot cream over the chocolate
chips and let it sit for a minute, then stir
until smooth.
 Add the butter and stir until incorporated.
 Allow the chocolate filling to cool and
thicken.
3. Fill the Eclairs:
 Once the éclairs are completely cooled,

71
 use a piping bag or a small spoon to fill
them with the chocolate filling.
4. Prepare the Chocolate Glaze:
 Microwave in short intervals, stirring
between each, until the chocolate is
melted and the glaze is smooth.
5. Glaze the Eclairs:
 Dip the top of each filled éclair into the
chocolate glaze.
6. Serve and Enjoy:
 Allow the chocolate glaze to set before
serving.
 Optionally, you can drizzle extra melted
chocolate or sprinkle some chopped nuts
on top for an added touch.

Capital Investment

The capital investment will be coming from the 9 (nine) owners namely:

Abrin, Kate Hylene P, Alzate, Roger S., Bagni, Abegail B., Espinoza, Angeline M.,

Fabro, Zayin, Manzano, Trixie Ann L., , Oliveras, Andrea, Tingco, Rosalinda and

Urbiztondo, Engilbert The capital investment budget will be Php.6,300,000.00

(Six million three hundred thousand pesos) the capital is divided to the nine

owners, each of them will be providing a capital investment budget share for

Trixie 2,500,000, Kate Hylene, Abegail and Rosalinda will share 600,000 each

and Zayin, Roger, Andrea, Angeline and Engilbert will share 400,000 each the

capital covers all the expenses including the land, building and equipment’s

72
Source Capital

The source capital of the proposed business will be the savings of the

proprietor. The capital is amounting ₱6,300,000.00. The proponents identify the

project cost in order to determine the pre-operating and operating expense of the

business.

BILL OF MATERIALS
Table 4.15, Material Expenses
Scope of Works

Item Description Qty Unit Cost Total Cost

73
I Mobilization 5 LS 20,000 100,000

Sub Total P 100,000

II Concrete and Masonry Works And

Formworks, Scaffolding
Portland 600 bags 300 180,000
Cement
Sand 50 cu.m. 650 32,500

Gravel 30 cu.m. 950 28,500

4"CHB 250 pcs 70 175,000

0
Ordinary 170 pcs 450 76,500
Plywood (1/4)
2”2” Wood 1,50 bd.ft 90 135,000
Frame 0
Lumber 2"x2"x10 260 bd.ft 80 208,000
ft 0
Lumber 2"x 950 bd.ft 250 237,500
3"x14 ft
Sub Total P 1,073,000

III STEEL AND REINFORCEMENT WORKS

10 mm Dia. Bar x 500 pcs 350 175,000

6m
12 mm Dia. Bar x 55 pcs 500 27,500
6m
16 mm Dia. Bar x 68 pcs 600 40,800
6m
25 mm Dia. Bar x 90 pcs 1500 135,000
6m
#16 - G.I Tie 32 kg 90 2,880
Wire
Sub Total P 381,180

74
IV EARTHWORKS

Excavation 55 cu.m 500 27,500

.
Backfill and 48 cu.m 350 16,800
Compaction .
Sub Total P 44,300

V ROOFING WORKS

32" x 9' Corrugated G.I 20 pcs 1200 24,000

she

32" x 8' Corrugated G.I 20 pcs 1000 20,000

she

32" x 7' Corrugated G.I 20 pcs 800 16,000

she

32" x 5' Corrugated G.I 20 pcs 700 14,000

she

2" x 4' C Purlins 30 pcs 600 18,000

2" x 8' Rafter 28 pcs 1250 35,000

2" x 6' Facia Board 17 pcs 1100 18,700

G.I Rivets 15 kg 180 2,700

G.I Washers 30 kg 200 6,000

Sub Total P 154,400

VI CEILING WORKS

Gypsum Board Ceiling 25 pcs 500 12500

Pan

G.I. Metal Furring Studs 50 pcs 400 20000

a

Gypsum Putty 40 kg 55 2200

P 34,700
Sub Total

75
VII PLUMBING FIXTURES AND
INSTALLATIONS
Lavatory 1 pcs 1500 1500

Faucet 2 Pcs 100 200

Valve 2 Pcs 300 300

Floor Drain 1 Pcs 100 100

Kitchen Sink 1 pcs 1600 1600

Water Closet 1 Pcs 1250 2500

90 deg. Elbow 4 pcs 100 400

45 deg. Elbow 2 Pcs 100 200

Reducer Tee 1 Pcs 100 100

PVP PIPE (Complete 2 Pcs 150 300

System)
PPR PIPE (6m) 3 pcs 150 450

Tee 8 pcs 100 800

Sub Total P 7,200

VIII ELECTRICAL WORKS

Pin light 10 Pcs 200 2000

Wall Lamp 2 Pcs 300 600

Incandescent Lamp 12 Pcs 200 2400

Utility Box 15 Pcs 30 450

Receptable with screw 17 Pcs 50 850

Fuse Box 1 Pcs 0 0

Convenience Outlet 14 Pcs 150 2100

Switch Outlet 1 gang 13 Pcs 100 300

Switch Outlet 2 gang 5 Pcs 150 750

76
 Circuit Breaker 1 Pcs 1000 1000

Aircon Outlet 3 Pcs 300 900

Water Heater 2 Pcs 800 1600

LO Conduits 50 Meters 20 1000

LO Wires 150 Meters 30 4500

CO conduits 47 Meters 125 5875

CO Wires 141 Meters 30 4230

Sub Total P 28,555

IX DOORS ANSD WINDOW

Main Door (Panel Type) 1 Pcs 6500 6500

Doors (Flush Type) 3 Pcs 2500 7500

Toilet Door (PVC Type) 1 Pcs 1500 1500

Doorknob 4 Pcs 250 1000

Sliding Windows 1 Pcs 4500 4500

Sub Total P 21,500

X PAINTING WORKS

Surface Primer 10 Gal. 1000 10000

Neutralizer 2 Lit. 200 400

Acrylic Roof Shield Pain 4 Gal. 950 3800

Wood Primer 2 Gal. 200 400

Quick Drying Enamel 2 Gal. 1000 2000

Paint Thinner 0.5 Gal. 150 75

Sub Total P 16,675

XII WALL

77
Glass Wall 14 Pcs 20000 280,000

Sub Total P 105,000

TOTAL MATERIAL COST P1,078,410

LABOR COST (30% of material cost) P 716,625

Total Construction Cost P 2,586,100

Table 4.16, Work Duration

CHAPTER V
FINANCIAL STUDY

78
 Building a financial plan can be the most intimidating part of writing

your feasibility study. It's also one of the most vital. Business that has a full

financial plan in place more prepared to pitch to investors, receive funding,

and achieve long term success. A financial plan is simple an overview of

your current business financials and projections for growth. Think of any

documents that represent your current monetary situation and the

projections being your future expectations.

Major Assumptions

• All transactions are paid in cash basis and all amounts are in

Philippine pesos

• Cost of Service/cost of sales/cost of goods sold will increase by 3%

per year to cover inflation.

• Supplies will be replenished on a yearly basis and the cost will

increase by 3% per year

• Salaries of employees will remain constant for the next 5 years.

• SSS, Phil health, Pag-ibig premiums will be paid on a monthly basis.

• Depreciation expense is computed using straight line depreciation

method. Assets' useful life is 10 years.

• Long-term assets will not have any salvage value

• Income tax rate is pegged at 30%

• Taxes withheld for the month of December will be remitted on the

following year (January).

79
 • Sales revenue will increase by 5% due to increase in pricing of the

product/service

Start-up Costs and Funds

The General Partners will invest their own personal savings

amounting to PHP 6,300,000.00 each in the form of cash and personal

loans for a total of ordinary share capital of PHP 6,300,000.00. Indicated

below are the names of the partners, their respective contributions and

number of shares owned.

Table 5.1, Start-up Costs and Funds.

Partners No. of shares owned Capital

Abrin, Kate Hylene P 1 600,000

Alzate, Roger S. 1 400,000

Bagni, Abegail B. 1 600,000

Espinoza, Angeline M. 1 400,000

Fabro, Zayin 1 400,000

Manzano, Trixie Ann L. 1 2,500,000

Oliveras, Andrea 1 400,000

Tingco, Rosalinda 1 600,000

Urbiztondo, Engilbert 1 400,000

TOTAL 6,300,000

CAFÉ AROMAGIC
FINANCIAL RATIOS
Table 5.2, Projected Financial Ratios

80
 2024 2025 2026 2027
Return of
Investment
1,157,28 1,353,62
Net Income 946,801 976,674 9 5 1,5
6,300,00 6,300,00
Investment 6,300,000 6,300,000 0 0 6,3
ROI 0.15 0.16 0.18 0.21

Payback Period 0.14 0.41 0.70 1.01

6,300,00 6,300,00
Investment 6,300,000 6,300,000 0 0 6,3
Cumm. Cash 4,386,70 6,380,82
Flow 892,055 2,607,362 7 1 8,7

Rate of Return
of Assets
1,157,28 1,353,62
Net Income 946,801 976,674 9 5 1,5
6,162,92 7,257,31
Total Asset 3,277,408 5,117,137 4 5 8,5
ROA 0.29 0.19 0.19 0.19

Total Current
Asset
3,773,32 4,867,71
Current Asset 1,527,808 2,727,537 4 5 6,2
6,162,92 7,257,31
Total Asset 3,277,408 5,117,137 4 5 8,5

CAFÉ AROMAGIC
INCOME STATEMENT
Table 5.3, Projected Income Statement
2024 2025 2026 2027 2028

Gross Revenue 6,187,500 6,682,500 7,217,100 7,794,468 8,418,025

Less: Sale Tax 804,375 804,375 868,725 938,223 1,013,281

NET SALES 5,383,125 5,878,125 6,348,375 6,856,245 7,404,745

Total Revenue 5,383,125 5,878,125 6,348,375 6,856,245 7,404,745

81
Cost of Sales 1,803,347 1,969,172 2,126,706 2,296,842 2,480,589

GROSS PROFIT 3,579,778 3,908,953 4,221,669 4,559,403 4,924,155

Labor 716,625 741,707 767,667 794,535 822,344

Telephone 30,000 31,050 32,137 33,262 34,426

Supplies 35,000 36,225 37,493 38,805 40,163

Utilities- Light &power 120,000 124,200 128,547 146,351 151,473

- Water 21,600 22,356 23,138 23,948 24,786

Repair & Maintenance 132,000 136,620 141,402 146,351 151,473

Proffesional Fee 80,000 82,800 85,698 88,697 91,802

Total Semi Variable 418,600 433,251 448,415 464,109 480,353

Total Controllable Cost 1,135,225 1,174,958 1,216,081 1,258,644 1,302,697

MNGR.CONTRIBUTION 2,444,553 2,733,995 3,005,588 3,300,759 3,621,458

PROFIT
Marketing 180,000 186,300 192,821 199,569 206,554

Depreciation & 437,400 597,400 597,400 597,400 597,400

Amozataztion
Rent 360,000 360,000 360,000 360,000 360,000

Taxes & Licenses 24,580 45,884 49,554 53,518 57,800

Insurances 75,000 81,000 87,480 94,478 102,037

Bank Charges 25,000 27,000 29,160 31,493 34,012

Miscellaneous 50,000 54,000 58,320 62,986 68,024

Total Fixed Costs 474,580 507,884 524,515 542,475 561,873

Total Operating Expenses 2,227,205 2,466,541 2,530,816 2,598,089 2,668,524

UNIT CONTRIBUTION 1,352,574 1,442,412 1,690,853 1,961,314 2,255,631

(LOSS)
Interest Expenses - 33,014 26,309 19,295 11,960

Net Income 1,352,574 1,409,398 1,664,545 1,942,019 2,243,671

Income Tax Effect 405,772 432,724 507,256 588,394 676,689

NETOPERATING 946,801 976,674 1,157,289 1,353,625 1,566,982

PROFIT
Depreciation 597,400 597,400 597,400 597,400 597,400

82
 OPERATING CASH 1,304,201 1,574,074 1,754,689 1,951,025 2,164,382
FLOWS

CAFÉ AROMAGIC
BALANCE SHEET
Table 5.4, Projected Balance Sheet

2024 2025 2026 2027 2028

Asset
Current Assets:
Cash and cash 892,055 1,715,307 2,671,400 3,709,421 5,033,767
equivqlents
Inventory 425,753 862,230 921,924 963,295 1,006,355
Prepared Expenses 210,000 150,000 180,000 195,000 170,000
Total Current Assets 1,527,808 2,727,537 3,773,324 4,867,715 6,210,121

Property and equipment 2,187,000 2,987,000 2,987,000 2,987,000 2,987,000

Accumulated (437,400) (597,400) (597,400) (597,400) (597,400)
Depreciation
Total Assets 3,277,408 5,117,137 6,162,924 7,257,315 8,559,721

Liabilities and sharehoders equity

Accounts payable 179,100 257,155 286,612 170,043 100,146
Accountts Expenses 50,000 35,000 40,000 50,000 55,000
Current Portion of Long - 145,959 152,664 159,678 167,013
Total Current Liabilities 229,100 438,114 479,277 379,721 322,159
Long Term Debt _ 654,041 501,377 341,699 174,686
Total Liabilities 229,100 1,092,155 980,654 721,420 496,845
Shareholders equity
Current Liabilities
Income Tax Payable 229,100 438,114 479,277 379,721 322,159
Total Liabilities 229,100 438,114 479,277 379,721 322,159

SHAREHOLDERS EQUILTY
Shareholders equity 3,048,308 4,024,982 5,182,270 6,535,895 8,102,877
TOTAL SHAREHOLDERS 3,048,308 4,024,982 5,182,270 6,535,895 8,102,877
EQUILTY
Total Liabilities and 3,277,408 5,117,137 6,162,924 7,257,315 8,599,721

83
Shareholders equity

CAFÉ AROMAGIC
STATEMENT OF CASH FLOW
Table 5.5, Projected Cash Flow Statement
2024 2025 2026 2027 2028
Cash Flows from Operating Activities
Net Earning 946,801 976,674 1,157,28 1,353,625 1,566,982
9
Adjustments to reconcile net earnings to net cash provided by operating activities
Depreciation and 437,400 597,400 597,400 597,400 597,400
Amortization
Changes in operating assets and liabilities:
Inventory (824,247) (436,477) (59,694) (41,370) (43,067)
Prepaid Expenses (210,000) (60,000) 30,000 (15,000) 25,000
Accounts Payable 179,100 78,055 29,458 (116,569) (69,898)
Accrued Expenses 50,000 15,000 5,000 10,000 5,000
Net cash provided 579,055 1,260,652 1,699,45 1,788,085 2,081,432
by operating 2
activities
Cash flow 2,187,000 1,058,427 597,400 597,400 597,400
investing
activities:
Purchases of
property and
equipment
Net cash used in 2,187,000 1,058,427 597,400 597,400 597,400
investing activities
Cash flows from financing activities:
Proceeds from long- - 800,000 - - -
term debt`
Repayments of - (178,973) (178,973) (178,973) (178,973)
long-term debt
Repayments of - - 33,014 26,309 19,295
short-term debt
Net cash provided - 621,027 (145,959) (152,664) (159,678)
by financing
activities
Cash and cash 2,500,000 892,055 1,751,30 2,671,400 3,709,421
equivalents at 7

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beginning of year
Cash and cash 892,055 1,715,307 2,671,40 3,709,421 5,033,767
equivalents at end 0
of year

Table 5.6, Assumption

I/S
Sales Growth 8%
2,586,100.0 Annual Gross
Construction 0 Sales 6,187,500
Average Monthly
Sales 515,625
Materials
Management Daily Sales 17,187.50

Small Wares 108,000.00

Furniture’s &
Fixtures 299,000.00
1,450,000.0
Equipment 0
Cost of Sales
MIS / POS 330,000.00 Rate Rate 33.5%
Labor Rate 716,625.00 11.6%
Administrativ Telephone/
e Internet 30,000.00 0.5%
Funds & Other
Deposits 15,000.00 Supplies 35,000.00 0.6%
Security
Deposit 150,000.00 Light and Power 120,000.00 1.9%
Construction
Bond 45,000.00 Water 21,600.00 0.3%
Repairs &
Permits 18,900.00 Maintenance 132,000.00 2.1%
Miscellaneous 3,000.00 Professional Fee 80,000.00 1.3%
Advance Rent 45,000.00 Marketing 180,000.00 2.9%
Insurance 75,000.00 1.2%
1,250,000.0
Inventory 0 Bank Charges 25,000.00 0.4%
Miscellaneous 50,000.00 0.8%
Total 6,300,000.0
Investment 0 Taxes & Licenses Rate 0.7%
Rent 360,000.00 4.8%
Income Tax Rate 30.00% 30.0%

Inflation Rate 3.50%

5Year
Asset Life s

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 Table 5.7, Cost of Goods Sold
Cost of Goods
Sold
2024 2025 2026 2027 2028
1,250,00 1,803,34 1,969,17 2,126,70 2,296,84
Beg Inventory 0 7 2 6 2
1,028,05 1,079,45 1,133,43 1,190,10
Purchases 979,100 5 8 1 2
2,229,10 2,831,40 3,048,63 3,260,13 3,486,94
TGAS 0 2 0 6 4
1,006,35
Inventory, End 425,753 862,230 921,924 963,294 5
1,803,34 1,969,17 2,126,70 2,296,84 2,480,58
COGS 7 2 6 2 9

Accounts
Payable
Beginning - 179,100 257,155 286,613 170,043
1,028,05 1,079,45 1,133,43 1,190,10
Purchases 979,100 5 8 1 2
Less: Payment 1,050,00 1,250,00 1,260,00
made 800,000 950,000 0 0 0
AP, End 179,100 257,155 286,613 170,043 100,146

Permits and Licenses

Table 5.8, Permits and Licenses

Particulars Annual Cost

Business Location Clearance 200.00
Sanitary Health Clearance 300.00
Fire Safety Clearance 500.00
Business Tax 7,500.00
DTI Business Name Registration Certificate 500.00
Brgy. Clearance 500.00
Community Tax 500.00
BIR Registration 500.00
Garbage Collection Fee 500.00

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Total 11,000.00

CHAPTER VI
SOCIO- ECONOMIC STUDY
Cafe Aromagic is a proposed coffee shop situated in a commercial. The

cafe aims to provide customers with high-quality coffee and a relaxing

atmosphere where they can enjoy their drinks and socialize with friends. This

feasibility study will evaluate the economic and social viability.

EMPLOYEE

The success of any business greatly depends on its employees. In the

case of Cafe Aromagic, it is crucial to have a well-trained and motivated team to

ensure the delivery of excellent customer service and quality products. The cafe

will have a staff of 9 employees. Most of the employees and laborers in

Binalonan were residents, thus they will profit from the revenue they make to

cover their living expenses.

CUSTOMERS

Consumers are the soul of every business, and the cafe's ability to attract

in and keep loyal customers will be key to its success. The target market for Cafe

Aromagic includes office workers, students, and tourists visiting the city. The

location of the cafe in a busy commercial area and its proximity to offices and

educational institutions make it an ideal spot for these target customers.

ENVIRONMENT

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 The environment is an important factor to consider in the feasibility of any

project. Cafe Aromagic strives to promote an eco-friendly environment by using

sustainable practices in its operations. These practices include using recyclable

materials, proper waste management, and sourcing coffee beans from suppliers

who engage in ethical and sustainable practices.

GOVERNMENT

The government's role in the feasibility of Cafe Aromagic is crucial, as it

has the power to create an enabling environment for businesses to thrive. One of

the main areas where the government can support the cafe is through the

provision of necessary licenses and permits. The process of obtaining these

permits can be time-consuming and expensive, which can affect the project's

feasibility.

CONTRIBUTE TO THE LOCAL GOVERNMENT

The proposed business will benefit the economy by giving a tax income for

local government. These taxes will help to the economy to enhance the nature,

highways, and rail roads. And that’s due to the taxes that the proposed business

will pay.

GROWTH OF RELATED INDUSTRY

The proposed business can make a contribution to the growth and event

in the locality of Binalonan. Since the business innovates strategy in promoting

coffee and pastries it’d inspire different industry to innovate other products too. In

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establishing the business, it will also promote and entice other investor to have

interaction on this sort of busine

CHAPTER VII

SUMMARY, CONCLUSION AND RECOMMENDATION

Café Aromagic, a quaint coffee shop located at McArthur. Highway,

Canarvacanan, Binalonan Pangasinan has been a delightful addition to the local

coffee scene. Café Aromagic will operate partnership, Café Aromagic will provide

our customers the world’s best coffees with excellent service at a price that is fair

to the cafe and our customers, Café Aromagic interior design focuses on cozy

and aesthetic to keep up with trend and to attract customers. Our shop is 238

sqm with drive thru. The advertising promotion we have flyers and accounts on

TikTok, Facebook, and Instagram. The Café Aromagic will rent We`ve looked at

the cafe`s success over the last year, including its special offerings, client

feedback and fin uncials. Because of its distinctive aromatic coffee blends,

inviting atmosphere, and warm service. Café Aromagic has swiftly developed a

loyal following of patrons. Revenue at the cafe has consistently risen, a sign of its

rising notoriety.

However, there is still room for growth and progress in terms of upholding

consistent quality and expanding the menu. Apart from the food and drink, the

atmosphere in cafe is what sets it apart. The staff are friendly and attentive,

always ready to strike up a conversation or recommend their favorite menu

items. Whether it`s a quick pit stop for your daily caffeine fix or a place to relax

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and connect with friends, our coffee shop provides a welcoming haven for coffee

connoisseurs and casual drinkers alike.

Conclusion

The conclusion of Cafe Aromagic Business Feasibility by analyzing the

competitor, operational aspects, marketings aspects and financial aspects, can

be concluded that Cafe Aromagic business is profitable and therefore feasible to

operated. This feasibility study is useful for the next generation of students and

the investors, and company management to improve our economy. One of the

most important aspects of starting a business is choosing the right location, along

with having reliable sources of product supply to meet the expanding consumer

demand. The partnership business structure is the best suitable for restaurants.

To start up Café Aromagic, the adequate amount is Php 6,300,000.

Furthermore, that this study, which includes time and motion studies, provide

consistency in tastes and manufacturing efficiency. Additionally, the café will gain

from creating a unique product range and offering a characteristic flavor for some

of its beverages.

Recommendation

The researchers derived at the following recommendations.

1. Conduct market research and gather data that would serves as a guide in

establishing the business.

2. Present products that will suit the budget of the consumers but with high

quality so as to attract more of target market.

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3. Design a competitive tactics that would attract customers and promote your

establishment.

4. Identify your possible competitors and know your advantages and

disadvantages over them.

5. Formulate operational system, policies and procedures in all areas of

operation.

6. Establish a good public relation which would attract customers.

7. Know the needs of your customers. Make sure to satisfy the needs and

demands of the customers.

8. Establish an employee’s development program which would help them

improve rendering those services. So as to satisfy your customer's needs.

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