ABM 12-1

Group No. 2
Bigtime Coffee Hideout

Assigned Parts of the Business Plan:

Joaquin Alfonso C. Columbretis (leader) - Production & Operation Plan

Kershan Ashley G. Pe - Introduction & Business Description

Zyra Camille P. Japitana - Executive Summary & Appendix

Jerah Myka D. Jereza - Organizational & Marketing Plan

Anne Grace A. Escape - Environmental Analysis & Financial Plan

Table of Contents

Introduction-----------------------------------------------------------------------p.1-6

Executive Summary------------------------------------------------------------p.6-9

Environmental Analysis------------------------------------------------------p.9-14

Business Description---------------------------------------------------------p.14-17

Organizational Plan-----------------------------------------------------------p.18-21

Production Plan-----------------------------------------------------------------p.21-23

Operation Plan------------------------------------------------------------------p.24-27

Marketing Plan------------------------------------------------------------------p.28-30

Financial Plan-------------------------------------------------------------------p.30-32

Appendix--------------------------------------------------------------------------p.33
 Introduction

Proposed name of the business

Bigtime Coffee Hideout is the proposed name for the business, named in order to focus
the business’ commitment to offering customers a satisfactory and unique experience
without compromising their time. It is dedicated to promoting values that will strengthen
the business’ growth, development, and relationship with customers, provide customers
the ideal place for relaxation and offer exceptional products that will provide unique and
satisfactory taste as well as show outstanding customer service.

Address of the Business

Mandurriao, Iloilo City, Iloilo is the proper address of the business, where it will serve as
the cafe's location as well as a designation for any shipping of raw materials, foods, and
supplies needed by the business. The email address used for the business will be
bigtimecoffeehideout@gmail.com, which will utilize electronic communication with
customers, suppliers, and creditors.

Name of the owner or owners

1. Joaquin Alfonso Columbretis

2. Anne Grace Alto Escape

3. Zyra Camille Japitana

4. Jerah Myka Jereza

5. Kershan Ashley Pe

Description of the business

Bigtime Coffee Hideout is an establishment that aims to provide customers with a wide
variety of choices in foods and drinks. Drinks of all sorts will be presented varying from
hot coffee to a honey-infused lemonade drink. The selection of coffee will range from
cappuccino to espresso, with popular coffee flavors such as French vanilla, mocha, and
peppermint. Non-alcoholic beverages will also be accessible on the shop’s menu.
Foods offered by the shop mainly consisted of sandwiches, bread, and hot meals.
Breakfast will feature breakfast pastries, eggs, pancakes, and waffles. The lunch and
dinner menu will be comprised of sandwiches and salads. A wide assortment of
desserts such as different varieties of cookies, biscuits, and sweet rolls will be offered
daily in the café.

The mission of Bigtime Coffee Hideout is to serve and deliver high-quality foods and
drinks while providing healthy food security and a relaxing atmosphere to customers.
The vision of Bigtime Coffee Hideout is to be the leading café that offers quality coffee,
meals, and drink products while working with outstanding service that help support the
greater good of our customers and the community. Its objectives are centered on great
service and products in order to make the café a place of relaxation to minimize the
stress and tension of customers and offer products that are unique and exceptional in
terms of quality and taste.

Location of the business

Mandurriao, Iloilo City, Iloilo is the chosen location of the Bigtime Coffee Hideout, and it
is situated in Iloilo Business Park at Megaworld Blvd. The location offers a great
advantage to the business since it is filled with people and has multiple markets that are
significant sources of raw materials required for the business. Transportation is
available within the location, however, its cost may differ depending on the distance
needed to travel or the situation. Commercial zones such as restaurants and cafes are
prominent in the business park and may pose a direct competition to the café. The
geographic and climatic conditions in the location may vary but will present no threat to
the business since the area is modernized and efficient compared to its counterparts.

Funding requirement and source

Source of Funds

Bigtime Coffee Hideout is seeking ₱ 235,000 financing to open its location. For the
start-up in a span of 3 – 4 months, 60 percent will be funded from the people who own
the business and the remaining 40 percent will come from the loans that will be
acquired from selected bank institutions. Funding would come prominently from the five
founding members of the establishment namely: Joaquin Alfonso Columbretis, Anne
Grace Alto Escape, Zyra Camille Japitana, Jerah Myka Jereza, and Kershan Ashley Pe.
For the remaining funds in the following months, reinvestment of the profits made in the
business will be considered until the amount made is satisfactory in order to resupply
and improve the products and their quality as time passes on.

Funding Requirements

These are the list of costs and requirements for the location, items, ingredients, and
equipment needed in the establishment of the café. The overall cost of all requirements
needed for the café is ₱ 229,460.

Location Cost Total

1 Store ₱ 50,000 ₱ 50,000

Maintenance
and Design
Build (Yearly)

2 Water ₱ 5,000 ₱ 5,000

(Monthly)

3 Electricity ₱ 6,000 ₱ 6,000

(Monthly)

4 Rent ₱ 15,000 ₱ 15,000

(Monthly)

Total Cost ₱ 76,000

Items Nos. Cost for each item Total

Needed
1 Commercial 1 ₱ 20,900 ₱ 20,900
Espresso
Machine

2 Automatic 1 ₱ 12,850 ₱ 12,850

Drip Coffee
Maker

3 Refrigerator 1 ₱ 7,600 ₱ 7,600

4 Industrial 2 ₱ 300 ₱ 600

Grinder

5 Toaster 2 ₱ 2,450 ₱ 4,900

6 Oven 2 ₱ 2,500 ₱ 5,000

7 Freezer 1 ₱ 19,800 ₱ 19,800

8 Commercial 2 ₱ 2,000 ₱ 4,000

Blender

9 Display 4 ₱ 1,500 ₱ 6,000

Cases

10 Café POS 1 ₱ 2,300 ₱ 2,300

system

11 Tables 8 ₱ 3,600 ₱ 28,800

(Round)

12 Wooden 16 ₱ 250 ₱ 4,000

Chairs

13 Spoon and 50 pairs ₱ 30 ₱ 1,500

Fork

14 Napkins 25 ₱ 50 ₱ 1,250
(Weekly)

15 Cups 50 ₱ 35 ₱ 1,750

Total Cost of the Items ₱ 121,250

 Ingredients Nos. Cost for each item Total
Needed

1 Egg 300 ₱7 ₱ 2,100

(Weekly)

2 Coffee 3 kg ₱ 1,010 ₱ 3,030

Beans
(Weekly)

3 Sugar 20 kg ₱ 50 ₱ 1,000
(Weekly)

4 Milk 40 l ₱ 100 ₱ 4,000

(Weekly)

5 Vanilla 4 ₱ 250 ₱ 1,000

Extract
(Weekly)

6 Assortment 10 kg ₱ 45 ₱ 450
of Leafy
Green
Vegetables
(Weekly)

7 Pancake 20 ₱ 125 ₱ 2,500

Mix
(Weekly)

8 Flour 20 kg ₱ 89 ₱ 1,780
(Weekly)

9 Butter 430g 15 ₱ 140 ₱ 2,100

(Weekly)

10 Lemon 4 kg ₱ 300 ₱ 1,200

(Weekly)

11 Honey 1L 2 ₱ 500 ₱ 1,000

(Weekly)

12 Assortment 10 packs ₱ 300 ₱ 3,000

of Bread
 (Weekly)

13 Cookies 30 packs ₱ 45 ₱ 1,350

(Weekly)

14 Biscuits 50 packs ₱ 25 ₱ 1,250

(Weekly)

15 Mineral 15 l ₱ 280 ₱ 4,200

Water
(Weekly)

16 Baking 18 ₱ 75 ₱ 1,350
Powder
(Weekly)

17 150 ml 2 ₱ 135 ₱ 270

Olive Oil
(Weekly)

18 Mustard 2 ₱ 230 ₱ 460

30oz
(Weekly)

19 Chicken 1 kg ₱ 170 ₱170

Breast
(Weekly)

Total Cost of the Ingredients ₱ 32,210

Executive Summary

VMGO of the Business

Vision
To be the leading café that offers quality coffee, meals, and drink products while
working with outstanding service that help support the greater good of our customers
and the community.

Mission
 Our mission is to serve and deliver high-quality foods and drinks while providing
healthy food security and a relaxing atmosphere to customers.

Goals
● Have a successful business opening.
● To be a well-known café within a year after opening the business.
● Mark business’ name in the marketplace and in customers.
● Introduce and spread nationwide.
● Extend help to humanities.

Objectives:
● Product: Offer a high quality standard of products and services.
● Service: We ensure to treat our customers respectfully and nicely while working
with outstanding service that is prompt and efficient.
● Atmosphere: Provide and ensure a comfortable, relaxing, and pleasant
atmosphere.
● Work Environment: We aim to achieve a healthy and positive workplace for the
welfare of the business.

Business Model Adopted

Partner Network Key Activities Offer Customer

Relationship

● Internet and ● Season and ● Drinks ● Order over

Social Media Holiday the counter
Platforms Promo ● Main Dish
(Facebook, ● Customer
Instagram, ● Discount ● Meals Contact No.
Twitter, etc.) Coupons or Hotline
● Dessert for Delivery
● Posters, ● Free
Banners, and Delivery: ● Non-alcoholic ● Self-service
Flyers. ● Daily: beverages through
Direct Online Food
telephon Delivery.
e and
phone
calls.

● Every
 Wednesd
ay: Food
Panda &
Grab

Customer Segments Key Sources Distributing Channel

● Demographic Personal savings and Direct Sales

Segmentation investments of business
partners
● Psychographic
Segmentation

● Behavioral
Segmentation

● Value-based
Segmentation

Cost Structure Revenue Statement

● Rent The target revenue:

● Materials and labor for the interior Expenses: 229,460

of the store
Capital: 235,000
● Furniture
Profit: 5,540
● Utilities

● Kitchen equipment and materials

● Ingredients

Overall, these costs Php 229,460.

Business and Product Positions

Our business is centered on great service and products to make the café a place
of relaxation to minimize the stress and tension of customers and offer products that are
unique and exceptional in terms of quality and taste. Additionally, we will promote eco-
friendly packaging to help sustain the environment. These qualities will be the strength
of our business. Moreover, the factors to be considered on this business are:

1. Reasonable price range

2. Consumer satisfaction
3. Great place and foods
4. Respectful and nice staffs

Wealth Improvement Approaches

The basis for the improvement and changes of the business daily operation will
be the evaluation and feedback from the customers. In addition, with this modern time,
we intend to be diverse with our marketing strategies in promoting our business. These
would be the approaches we would prioritize for the business’ growth.

Parties Supporting the Business

● Customers: They are the ones who make the profit of our business. Anyone can
freely enter our business and try our products, and we will serve them the best
service they deserve.

● Suppliers: They are the source or foundation of providing raw materials and
ingredients for the production of our products.

● Employees and Staff: They are the backbone of our business. They intend to
supply, produce, and manage the day-to-day operations of the business.

Environmental Analysis

This section is a strategic tool that determine the external and internal factors affecting
the business

Global Analysis

The Philippines has rich land where it is possible to cultivate, grow and produce quality
coffee. Filipinos love to drink coffee because of its energizing effect. It is the go-to drink
of every Filipino. Filipinos consume 100,000 metric tons of coffee a year. Since the
middle of the 18th century, the Philippines has been a coffee-producing country. In the
1880s, when coffee rust struck Brazil, portions of Africa, and Java, Indonesia, the
country became the world's leading producer. From then many coffee shops were
established in the Philippines due to the love of Filipinos to the coffee.

Due to the consumer's demand, many coffee bean suppliers in the Philippines have
become popular. The Philippines has rich land where it is possible to cultivate ,grow and
produce quality coffee. Coffee shops offer different types of coffee such as Arabica
,Robusta ,Liberica and Excelsa. Many Coffee shops focus their product only on coffee.
The business aims to offer different varieties of coffee, drinks and food to the customers

Societal Analysis

Political Environment:
Workers Benefits can help a company recruit top talent, and it is critical to keep top
talent in the company. According to an Aflact study, 49% of employees will look for a
new job within a year if they are dissatisfied with the benefits that their employers
provide. Investing in employees is a win-win situation wherein employees gain good
benefits from the employer while the employer attains steadily increasing performance
of the business.

Economic Environment:
Income is money received on a regular basis from work or investments. Income has a
positive and negative effect in the business; if the consumers have a high income, the
business's sales increase; if the consumers' income decreases, the business's sales
decrease. Since food and beverage are essential to the physiological needs of the
consumers, income has a positive and negative effect in the business. A total of 3.6
percent of income is spent on food and beverages consumed outside of the house.

Socioeconomic Environment:

It assists businesses in identifying the consumption patterns of their consumers. It also

assists businesses in identifying the purchase patterns of their customers. It teaches
organizations how to develop their products according on the preferences of their
customers.
Technological Environment:

Social media is important nowadays since it helps businesses gain clients by marketing
their products through social media. With the use of social media, businesses may
develop meaningful relationships with their consumers and get to know their potential
customers better. Customer input can provide suggestions to businesses on how to
enhance their products.

The growth of technology is a huge assistance in the development of an organization. It

will make commercial transactions such as communication easier because starting a
new firm necessitates a large number of transactions. In terms of productivity,
technological innovation allows businesses to manufacture goods more quickly.

Ecological Environment:

Wide places provide a greater variety of consumers if they have a greater population.
Growing population means greater demand and greater supply also .However climate
change affects the supplies of raw products needed for making the products like coffee,
the rising temperature decreases the area that is suitable for growing coffee.

Legal Environment:
According to the RA 11058, employers are required to comply with occupational safety
and health standards, including informing workers about all types of hazards in the
workplace and providing facilities and personal protective equipment for workers. The
RA 11058 allows businesses to put measures in place to protect the environment of the
business.

Industry Analysis

a. Target consumers
Target customers include coffee lovers, students and workers .The location of
the business is in Iloilo Business park ,it will cater the needs of customers with
affordable products that cater their physiological needs , a peaceful environment
that can help them to relax and focus .

b. Competitors
Competitors are coffee shops within the location with well-known brand names to
customers. They offer high quality but pricey products. The business will produce
budget friendly products to the customers.

c. Creditors
The financial aspects of the business will be assisted by financial institutions. The
business will seek assistance from the Bank of the Philippine Islands.

d. Suppliers
The ingredients of the business will mostly come from local suppliers and
supermarkets so the business can also help the local people in the community. In
addition, the price of ingredients is much cheaper compared to other suppliers.

e. Government
The business is located in Mandurriao, Iloilo City .The business will cooperate
from the activities of the government that provide for the industry.

f. Employees
The business hired 10 employees to operate and serve the customers, the
business owners will also be involved in operation they will be managing the
administrative, financial, production, and marketing.
 SWOT ANALYSIS Business Strength Business Weakness
The budget friendly products Business is not well known
,since the ingredients will
come from local markets

Business Opportunities (Opportunity-Strength (Opportunity -Weakness

Customers interest in high Strategy) Strategy)
quality but budget friendly Ingredients from local markets Budget friendly product will
products can help the products to be overcome the weakness ,to
budget friendly be known of customers

Business Threats (Threat-Strength Strategy) (Threats - Weakness

Competitors with well-known Budget Friendly products of Strategy)
brand name the business will be use to Marketing the product will
ahead with competitors help the business to
overcome the weakness and
competitors.

Market Forecast

Demand and supply are important factors that affect the business. The Iloilo Business
Park is centered on businesses with a huge number of employees and customers. In
order to avoid any troubles in the business, the business must keep a detailed supply of
ingredients in order to avoid negative effects on profit and customers. To run a
successful business, you must prevent every possible threat.

Market Shares
Iloilo Business Park will be the market area for the market shares .There are 6 - 8
businesses in the area that are similar to the business, 15 - 20 % will be the market
share of the business in the area. Assumes that other businesses have an average
profit of 700,000 - 950,000 the business should lower the profit from others since it is
new in the market. Estimated that about 400,000 - 600,000 the profit of the business in
the few months.

Market Position
Our company's industry is diverse. We compete with a number of companies whose brand
names are well-known among customers. Competitors provide high-quality products, but
they are not affordable. Our company's goal is to provide a moderate-cost, high-quality
product that caters to our target market of coffee drinkers, students, and workers. Using
social media to advertise our business can entice buyers.

Business Description

Product or service that it plans to produce and serve

Bigtime Coffee Hideout will be a café located in Iloilo Business Park at Megaworld Blvd.

It is an establishment that aims to provide customers with a wide variety of choices in

foods and drinks. Drinks of all sorts will be presented varying from hot coffee to a
honey-infused lemonade drink. The selection of coffee will range from cappuccino to
espresso, with popular coffee flavors such as French vanilla, mocha, and peppermint.
Non-alcoholic beverages will also be accessible on the shop’s menu. Foods offered by
the shop mainly consisted of sandwiches and hot meals. Breakfast will feature breakfast
pastries, eggs, pancakes, and waffles. The lunch and dinner menu will be comprised of
sandwiches and salads. A wide assortment of desserts such as cookies and biscuits will
be offered daily in the café.

Various plant and office equipment

The quality and productivity of the business are also determined based on the
equipment and material used to make an outstanding product or service. Equipment
and materials are essential and significant for the effective functioning of a business.
With the right equipment and materials used, it can ensure products are well-made as
well as providing outstanding service thanks to the improvements from various
equipment and materials.

The equipment that will be needed for the business is shown based on the table below.

Equipment and Materials needed

Commercial Espresso Machine Café POS system

Automatic Drip Coffee Maker Commercial Blender

Refrigeration System Measuring Cups and Spoons

Industrial Grinder Hot Water Dispenser

Toaster Aprons

Oven Freezer

Size of the proposed business

The size of the proposed business is a small-scale business, which ranges from 1500 to
2000 square feet, where the interior design of the building will focus on envisioning a
peaceful and harmonious atmosphere. It will have 10 employees, which consist of
organizational roles such as Administrative Operations Manager, Assistant Manager,
Finance Manager, Production Manager, Marketing Manager, and minor roles such as
barista, café manager, kitchen staff, and cashier.

Future parties with whom contracts may be necessary

The Megaworld Corporation will be the company involved in establishing the location for
the cafe, since they hold jurisdiction in the area, the business owners will have to
negotiate and deal with the Megaworld Corporation for the use of the location. In the
procurement of foods and ingredients, future parties with necessary contracts for the
café will be nearby local farms and markets such as Mandurriao Public Market, and
Iloilo Supermart Mandurriao.
Personnel requirement

The required personnel for the café will consist of ten people, who are each tasked with
different roles such as barista, café manager, kitchen staff, and cashier. Additionally, the
owners of the business are tasked with organizational roles namely: Administrative
Operations Manager, Assistant Manager, Finance Manager, Production Manager, and
Marketing Manager. There will be two baristas assigned in making and serving drinks
such as coffee and beverages with the inclusion of being responsible for taking
customer orders and payments. Cleaning and sanitization of work areas will also be
included in the barista’s role and responsibility. A café manager will be assigned to the
café who oversees all aspects and phases of the café's operations with the inclusion of
managing staff, planning, and assessing the cafe's activities. The kitchen staff will
consist of two people, each given the responsibility of offering assistance with the
preparation of food and are also tasked with maintaining the cleanliness of dishes and
respective food storage facilities. A café cashier will be required to operate the cashier
register, deliver customer service, and assist other café personnel if needed. In the
hiring process, the documents that are needed and required are the following: Birth
Certificate, any legal ID/s, resume, NBI clearance, tax forms, diploma, and transcript of
records.

Administrative operation

Bigtime Coffee Hideout will be operated as a partnership, where the partnership

agreement specifically requires the partners to incur such expenses and pay for them
personally. As an administrative operations manager, Joaquin Alfonso Columbretis
will be responsible for administrative management operations, which are coordinating,
planning, and directing services that support the business organization like
bookkeeping, café operations, and data management.
 ORGANIZATION PLAN

This section describes the form of business organization, the liability of the
owner, the organizational structure, the role of the owner, and the proposed salary.

Form of Business Organization

Bigtime Coffee Hideout will operate as a partnership business. The business is

founded by five (5) members namely: Joaquin Alfonso Columbretis, Anne Grace
Escape, Zyra Camille Japitana, Jerah Myka Jereza, and Kershan Ashley Pe. The
members take part in contributing to raising capital to start the business. The
accumulated funds for the business will be utilized for improvements of the store,
design, working capital, and opening inventory. The business partners will combine their
knowledge and skills to make the business a success. The partners will also have a
written agreement addressing the rights, obligations, and the division of profits.

Liability of the Owner

Bigtime Coffee Hideout operates as an unlimited liability business. Business

activities and assets are generally not separated from the owner’s personal property.
The business partners are responsible to settle the financial commitments and debts
that may incur in the business.

Organizational Structure

Bigtime Coffee Hideout acquires a line organizational structure with the

administrative operations manager as the highest position, followed by the assistant
manager. Under the two are production manager, finance manager, and marketing
manager.
Roles and Responsibilities

Position Responsibilities

Joaquin Alfonso Columbretis Administrative His responsibility is to

Operations Manager manage the overall aspects
of the day-to-day operation
of the business. He also
evaluates the productivity
and performance of the
business. He coordinates,
plans, and directs services
that support the business
organization.
Kershan Ashley Pe Assistant Manager He takes part in
implementing the strategies
or procedures ordered by
the general manager. He
trains new staff and assists
with customers’ concerns.

Anne Grace Escape Finance Manager She analyzes the financial

statements of the business.
She is also in charge of
bookkeeping and office
operations.

Zyra Camille Japitana Production Manager She supervises the food

production staff. She is
responsible for managing
the supplies and ensuring
that health and safety
regulations are applied.

Jerah Myka Jereza Marketing Manager She is responsible for

promoting the products of
the business. She also
oversees branding,
advertising, and
promotional campaigns.
She manages to build
brand awareness among
customers.
Salary Requirements

The proposed salary of the employees of Bigtime Coffee Hideout will be

computed based on the number of their working days. Each employee is required to
work in the cafe for 8 hours per day. The minimum wage of the employees per day is
Php 395. With the estimated 26 days of work, they will receive monthly compensation of
Php 10,270. Employees will receive benefits such as the contribution of employers' to
their Social System System (SSS) and Philhealth. The employees may also receive
double pay for working on regular holidays. The remaining revenue in the business will
be divided among the business partners.

Production Plan

This section presents the production schedule, production process, equipment required,
sources of materials, and estimated production cost.

Production Schedule
Weekly
Product Time to Produce Yield
Honey Mustard 5-10 Mins 1L or 1Liter
(for salads)
Chicken Spread 35 Mins 1L or 1Liter
(for sandwich)

Daily
Product Time to Produce Yield
French Vanilla 6-45 Mins 28 (150ml)
Cappuccino 4-15 Mins 24 (150ml)
Espresso 4-15 Mins 24 (150ml)
Pancakes 40 Mins 40 servings
Salad 45 Mins 9 (6 inch bowl)
Chicken 40 Mins 20
Sandwich
Honey Lemonade 50 Mins 20 (240ml)
Production Process
For Espresso:
1. Procurement of materials (coffee beans).
2. Grind beans using Industrial Grinder.
3. Coffee to be put in filter basket and add water to reservoir in the drip maker.
4. Brew coffee and serve while hot.

For Cappuccino:
1. Prepare Espresso
2. Prep milk into a pitcher
3. Swirl it around while pouring onto the Espresso and then serve.

For French Vanilla:

1. Prepare Espresso
2. In a pan, add milk and vanilla extract.
3. Add sugar into the milk mixture.
4. Pour some of the milk mixture into a blender and froth.
5. Pour the milk mixture onto espresso and add froth milk on top and serve.

For Honey Lemonade

1. Juice some lemons.
2. Add honey into the lemon juice, stir and serve.

For Pancakes:
1. Add butter on a sheet pan and place inside a preheating oven until butter is melted.
2. Whisk flour, egg, milk, sugar, and salt together in a bowl to make a batter.
3. Pour batter into the hot butter.
4. Bake until pancake is brown on the edges and a toothpick inserted in the center
comes out clean.
5. Portion servings then serve.

For Honey Mustard Salad:

1. In a bowl, mix honey, mustard, and a little olive oil.
2. Set aside, then prep vegetables.
3. In a bowl, toss the vegetables along with the honey mustard dressing then serve.

For Chicken Sandwich:

1. Cook chicken in an oven.
2. Once chicken is cooked, shred then set aside.
3. In a blender, add lemon, egg and a drizzle of olive oil then blend to make
mayonnaise.
4. In a bowl, add shredded chicken and mayonnaise.
5. Spread on top of bread, toast then serve.

Equipment required
In producing the food as well as beverages of the establishment, Bigtime Coffee
Hangout lists down the equipment used for production:
Oven Toaster
Industrial Grinder Automatic Coffee Drip Maker
Commercial Espresso Machine

Sources of Materials
Sources of raw materials will be provided by local farms and markets such as
Mandurriao Public Market and Iloilo Supermart Mandurriao. Goods are to be shipped to
a storehouse where they shall be assessed, if materials were received with no
damages, payment shall be given accordingly. In terms of shipment, all materials
ordered should be delivered within the specified time stated. If ever the materials
shipped somehow were late or small damages were seen after inspection, a 5-10%
discount shall be insured depending on how severe the damages were.

Estimated production cost

Direct Materials Php 32,210

Direct Labor Php 3,160
Factory Overhead Php 76,000
Production Cost Php 111,370
 Operation Plan

This section presents the evaluation of suppliers, purchase procedures, storage and
inventory control, and sales procedures.

Evaluation of Suppliers

The business must conduct a critical evaluation of the suppliers of raw materials and
establish harmonious working relationships with them. A survey is made to conduct and
evaluate a supplier’s performance to the business with a comments or remarks section
to further evaluate their performance from criteria.

Supplier Evaluation Form

Supplier Information

Supplier name Supplier ID

Business title Date

Review Period Manager

Evaluation

1 = 2 = 3 = 4 = 5 =
Poor Fair Satisfactory Good Excellent

Job
Knowledge

Comments

Work Quality

Comments

Punctuality

Comments

Initiative

Comments

Communicati
on

Comments

Dependability
 Comments

Overall
Rating

Evaluation report

Final Comment

Reviewer’s Signature:

Purchase Procedures
Storage and Inventory Control

All goods and raw materials will be bought from the supplier then to be delivered to a
storeroom, behind the establishment. A manager shall be there to assess the materials
or ingredients delivered. Raw materials are to be thoroughly examined ensuring quality
control and the required quantity delivered are met. Once proper assessment is finished
and passed a certain criteria, the suppliers are then paid for their services and staff can
easily procure the materials.

Sales Procedures
 MARKETING PLAN

This section contains the following factors of the marketing mix: product, place,
price, promotion, people, packaging and positioning

Product

Bigtime Coffee Hideout is a cafe that offers a variety of drinks and foods to its
customers. The café offers a selection of drinks such as Hot Choco, Honey Infused
Lemonade Drink, Cappuccino, Espresso, French Vanilla, Mocha, and Peppermint. Non-
alcoholic beverages will also be available in the cafe such as soda and juice. The foods
offered by the café consist primarily of sandwiches, soups, and hot meals. The menu for
breakfast includes breakfast pastries, eggs, pancakes, and waffles. While for the lunch
and dinner menu, it will consist of sandwiches and salads. The café will also offer
desserts such as cookies and biscuits available daily in the café. The business partners
plan to expand the variety of coffees as the business grows in the future and gain more
patronage from its customers.

Place

Bigtime Coffee Hideout will be located at Iloilo Business Park at Megaworld

Boulevard, Mandurriao. The store location is a perfect spot since it is accessible to a lot
of people. The owners ensure that the café will offer a great ambiance for its customers.
A place where they can relax and socialize with their friends.

Price

Bigtime Coffee Hideout will offer a variety of drinks and foods at a very
reasonable price. The prices of products on the menu range from Php 90 to Php 200,
which also appeals to customers that look for quality taste coffees. Bigtime Coffee
Hideout will ensure a moderate range of pricing compared to other cafes in the area.
The business also aims to maintain a high standard of drinks & foods quality and
service. The customers will get a fair value for their money and also enjoy the relaxing
ambiance of the café.
Promotion

The business partners will market the products using various platforms such as
social media, business websites, and printed promotional materials. The owners will
create a website for the business that allows customers to contact the store and view
the complete list of products and services. They will also utilize printing flyers and
posters to promote the special promos. The owners will also post the printed
advertisements outside the physical store to keep the customers aware of the products
offered in the café.

People

Bigtime Coffee Hideout is managed by the business partners specifically:

Joaquin Alfonso Columbretis, Anne Grace Escape, Zyra Camille Japitana, Jerah Myka
Jereza, and Kershan Ashley Pe. As managers with different positions, each member is
required to be part of the operations and impart their knowledge and skills in running the
business. Managing the physical store will be the main priority of the business partners.
The owners will hire specific employees with different roles such as baristas, kitchen
staff, and cashiers. The baristas are in charge of creating a variety of drinks for
customers ensuring their taste and quality. The kitchen staff will be in charge of
preparing and cooking the foods offered by the café. They must ensure that the food
served follows the safety standards. By that, the business could gain positive feedback
and satisfy customers. On the other hand, the cashiers are in charge of taking orders
from customers. They must ensure the completeness of the orders and must possess
honesty towards the customers.

Packaging

Bigtime Coffee Hideout aims to promote eco-friendly packaging to help sustain

the environment. The business will utilize paper cups to serve coffees and other
beverages. The logo of the café will be attached to the cups to help the product stand
out and attract potential customers. The café will also use paper food trays, spoons &
forks, and table napkins.

Positioning

Bigtime Coffee Hideout focuses on providing high-quality products at a moderate

cost. As competitors remain setting higher prices on their products, Bigtime Coffee
Hideout develops a strategy to make them stand out in the industry. It aims to promote
awareness among its customers by using eco-friendly packaging. The business will
effectively cater to its target market specifically the students, workers, and coffee lovers.
Customers can enjoy a stress-free cup of coffee while helping the environment and
enjoying the great ambiance of the café. The business will run a promotion on its soft
opening to build brand awareness among its customers.

Financial Plan

Major Assumption
● Monthly Increase in Rent 1.5%
● Monthly Increase in Utilities 2%
● Monthly Increase in Sales 2%

Bigtime Coffee Hideout

Projected Monthly Statement of Comprehensive Income
For May 2, 2022 - June 2, 2022

Total Sales Php 465,000

Less:Cost of Goods 32,210
Gross Profit 432,790
Less :Expense
Rent 15,000
Utilities 11,000
 Maintenance 4,166.66
Total Expenses 30,166.66
Net Income before tax 402,623.34
Income Tax 32% 148,800.00
Net Income After Tax Php 253,823.34

Bigtime Coffee Hideout

Projected Monthly Cash Flow Statement
For May 2, 2022 - June 2, 2022

Beginning Balance Php 253,000.00

Cash Inflow
Income from sales 465,000.00
Total Inflows
Cash outflows
Cost of Goods 32,210.00
Equipment 121,250.00
Business Expense 30,166.66
Tax 148,800.00
Notes Payable 25% 23,500.00
Total Cash Outflow Php 355,926.66

Bigtime Coffee Hideout

Projected Monthly Balance Sheet
For May 2, 2022 - June 2, 2022
Current Assets
Cash and cash equivalent Php 253,823.34
Total Current Assets 253,823.34
Non- Current Assets
 Equipment 121,250
Total Non-Current Assets 121,250
Total Assets Php 278,443
Current Liabilities
Rent 15,000.00
Utilities 11,000.00
Maintenance 4,166.66
Note Payable 25% 23,500.00
Tax payable 148,800.00
Total Liabilities 202,466.66
Owners Equity 75,976.34
Total Liabilities and Equity Php 278,443
 Appendix

Joaquin Alfonso Columbretis (Administrative Operations Manager)

Anne Grace Escape (Finance Manager)
Zyra Camille Japitana (Production Manager)
Jerah Myka Jereza (Marketing Manager)
Kershan Ashley Pe (Assistant Manager)