Final Paper

F & D Coffee Shop
INTRODUCTION I. STATEMENT OF THE PROBLEM The researchers of the study are interested to determine the feasibility of establishing F&D Coffee Shop in JARS Bldg. 1810 JP Laurel St. San Miguel Manila. The questions that need to be researched on the following: 1. How realistic will F&D coffee shop be in terms of the location in San Miguel Manila? 2. What are the products and services of F&D Coffee Shop that will entice the target market? 3. What management technique is best for the proposed business? 4. How sustainable is F & D Coffee Shop? 5. What are the environmental programs will the F&D coffee shop implement? II. OBJECTIVES OF THE STUDY- As a consequence of the above research questions, the study has the following objectives: 1. To determine the feasibility of F&D coffee shop in San Miguel Manila. 2. 3. 4. To produce the products and services that will entice the target market. To determine an appropriate management techniques for the proposed business. To determine the sustainability of the business.
5. To enumerate the environmental programs used by F&D coffee shop.
A Feasibility Study on Establishing F&D Coffee Shop At 1810 JP Laurel St. San Miguel Manila
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III. BRIEF BACKGROUND OF THE STUDY Who among the students have not, at one time or another, spent time in Starbucks, Coffee Beans, Figaro, Seattles Best or even simply sat at McDonalds slowly sipping the new coffee roast it is offering? The reasons may be different each time---to wait for someone, to browse through some notes before an exam, to discuss issues of major or just to make celebrity gossip. The coffee shop seems to be the place to BE. The demand for this service is steadily increasing. It is also a nice addition to a food service facility. Filipinos loves coffee because it keeps them awake and the rich aroma scent that surely you will love. It had already been a tradition that Filipinos and coffee are always together almost the whole day. (http://www.soulcast.com/post/Why-do-we-drink-coffeeeven-on-hot-afternoons). Moreover, the Philippines boasts of two coffee beans which pass international quality requirements: robusta of Northern Luzon and barako of Batangas province. It would add to a sense of national pride to young coffee drinkers to know that we have our own coffee beans that can stand up against the American coffee beans that are touted by , say, Starbucks. Just like any business, opening a coffee shop starts with product familiarization and budget. The success of the business will be composed of deep understanding of the products that will eventually lead to a successful planning, marketing and lastly selling. (http://www.entrepreneur.com.ph//start-your-coffee-shop). The researchers wish to establish an F & D Coffee Shop because of their passion for coffee and its consequent social effects, particularly the bonding experience and the practicality that it offers. Additional pastries will also be included in the menu, such as cookies, pandesals, and the like, since Filipinos like dipping their bread or cookie in coffee. The mixture of both bread and coffee is creamier and will have a palatable texture A Feasibility Study on Establishing F&D Coffee Shop At 1810 JP Laurel St. San Miguel Manila Page 2
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and it resembles the "aristocratic" Spanish way of consuming their breakfast. (http://www.travelexpertguide.org) There are two major factors that the researchers have identified as positive in putting up Coffee Shop in JARS Building; one is the accessibility of the location to several colleges and universities and second, the absence of a serious competitor within a five kilometer radius which is Starbucks in Robinsons Otis and in SM Manila. The researchers chose JP Laurel St. San Miguel, Manila as the location for this F & D Coffee Shop near Malacaang Palace because of two previously mentioned reasons: JP Laurel street, Concepcion Aguila street and Mendiola street are lined up with colleges and offices with a number of students and employees. Moreover, for a simple cup of brewed coffee, one can only get it at McDonalds or Jollibee (fastfood) and Maxs (fine dining). IV. SCOPE AND LIMITATIONS The study will focus on the feasibility of putting up an F&D coffee shop at JARS (Jun, Aida, Ruth, Susan) building located at 1810 J.P. Laurel Street, San Miguel, Manila. The target market is the coffee drinking population of the college students of the Universities near the area namely San Beda College, CEU Mendiola, La Consolation, College of the Holy Spirit, Earist, Sta. Catalina and Arellano University. High school students are, however, not included as part of the target market. The target market does not also include household adults or senior citizens, although, naturally, these are always welcome customers. The coffee shop will focus on and aggressively promote its products and services to the young students and young professionals/ working students. Furthermore, the study will discuss the importance and concepts of management, marketing, financial, operational and socio-economic aspects of establishing F & D Coffee Shop. The time frame is three years starting in 2011 to 2014 only. V. IMPORTANCE OF THE STUDY A Feasibility Study on Establishing F&D Coffee Shop At 1810 JP Laurel St. San Miguel Manila Page 3
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The study aims to provide a place suitable for social and business meetings as well as other important functions, or intentional activities, like group review for a major exam or just simply having a brief time off after a tiring day. As we all know meetings should be held in a private place especially those meetings that government officials and college students attend or organize. The consumers will benefit from the proposed business since there is limited venue for conference and meetings like planning an event of the student councils sand the different organizations in school (Maxs restaurant). This study will also contribute to the coffee shop industry, service industry and marketing. The researchers will provide conclusions and recommendation about the coffee shop industry for the future references. Furthermore the researchers would also like to provide a possible practicum place for students near the area since the location is near the university belt. VI. DEFINITION OF TERMS Business meetings- planning of students organizations, heads of the organizations, student council meetings DOLE Department of Labor and Employment; Divisoria a place where you can buy almost all products at a cheaper price but with the same quality as those bought at the mall. JIT- Just in Time: Malacaang Palace Site of the Office of the President of the Philippines Employees are those who work at Malacanang area, schools and colleges along Mendiola. Students those who are enrolled in College of the Holy Spirit, Centro Escolar University, San Beda College, La Consolacion College, Arellano University, Earist University. SWOT Matrix - Strength, Weaknesses, Opportunities and Threats A Feasibility Study on Establishing F&D Coffee Shop At 1810 JP Laurel St. San Miguel Manila
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VII. METHODOLOGY Primary data will be gathered through surveys (Annex A) to be conducted within the target area. Secondary data will be gathered through background research to see the trend of this kind of business in the near future. Secondary information would also be coming from books, magazines, and the Internet.
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CHAPTER 2 REVIEW OF CURRENT SITUATION I. INDUSTRY PROFILE A. Growth and performance history Coffee is the world's second largest and most important traded commodity, next to oil. In the past, people were used to drinking instant coffee. This was before the beginning of specialty coffee shops in the Philippines. Today, coffee shops are a common sight especially in the Metro Manila (http://www.oppapers.com/essays/Coffee-Shops). Longer working hours and busier lifestyles for Filipinos, along with the desire to reorganize operations A Feasibility Study on Establishing F&D Coffee Shop At 1810 JP Laurel St. San Miguel Manila Page 6
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between food service establishments, are all expected to increase the demand for instant coffee mixes over the projected period. Nevertheless, consumption of fresh coffee is expected to improve over the same period. Higher demand should be driven by a niche group of wealthy consumers who are willing to pay more and focus on quality rather than convenience. (http://www.euromonitor.com/coffeein-the-philippines/report). Based on research the service group (coffee shops being part of the service sector) contributed the highest in the GDP of the Philippines with the 43.4% contribution.
Table 2-1 National and Sectoral Accounts of the Philippines from 2008 2010
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2008 8,161,73 GDP 9 2,538,46 100% 31%
2009 8,476,89 9 2545105 100% 30%
2010 9,505,15 9 2,932,27 8 100 31%
Industry 2 Electricity, Gas and Water Supply Service Sector Fishing Agri., Hunting, Forestry and Fishing 1022515 262757 4159928 178077
3% 51% 2%
271,893 4431164 178862
3% 52% 2%
321543 4962483 180137
3% 52% 2%
1,108,71 13% 1049875 12% 8 12%
Source: http://www.nscb.gov.ph/secstat/d_accounts.asp
Table 2-1 shows the percentages of contribution that each sector provided between 2008 t0 2010 to the overall Gross National Product (GNP): 51% for 2008, 52% for both 2009 and 2010. This means that the proposed coffee shop business, which falls under the service sector, will have a more than very good A Feasibility Study on Establishing F&D Coffee Shop At 1810 JP Laurel St. San Miguel Manila
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chance of succeeding.
Table 2-2. The Service Sector at Current Prices from 2008-2010 Industry Group TOTAL SERVICE SECTOR a. Transport., Comm., Stor. b. Trade c. Finance d. Dwellings & R. Estate e. Private Services f. Government Services 3,604,54 2 478,389 981,101 361,972 373,973 936,912 472,196 100% 13% 27% 10% 10% 26% 13% 4,022,85 0 506,552 1,124,27 1 414,483 416,764 1,045,40 4 515,376 100 13% 28% 10% 10% 26% 13% 4,229,40 2 519,680 1,144,93 6 448,624 423,208 1,112,74 6 580,208 100 12% 27% 11% 10% 26% 14% At current Price 2007 2008 2009
Source: http://www.nscb.gov.ph/sna/2009/4thQ2009/2009ser4.asp
The business to be established would fall under Private services. Based on the data above private services fall only as second to the highest contributor to the service sector; it may fall as second to the highest but still its an opportunity because of the weight it gives to the service sector. B. Market trends
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Coffee drinking has certainly evolved into more than just a stimulating beverage. Filipinos wake up with coffee, they refresh themselves with coffee, and it keeps the Filipinos going during the day. Staying in a coffee shop or drinking coffee can be a break, a chance to relax and reflect, and most especially, moments shared and many have conversations exchanged become means towards great relationships. C. Industry problems Over the past years, the coffee industry is plagued with problems, and that is: low production, low income of coffee farmers, poor quality of coffee beans, lack of post harvest facilities for quality processing, and the unstable market condition here in the Philippines. (http://www.bar.gov.ph/bardigest/2001/julsep01_nirdeapforcof.asp) Last September 2009 The initial P50 million, of which P25 million has already been released, targeted the rehabilitation, replanting and reconstruction of 1,280 hectares of coffee plantations around the country. Filipinos consume about 65,000 metric tons (MT) of coffee annually but the Philippines produces only about 35,000 MT. (http://www.abscbnnews.com/business/09/13/09/coffee-group-get-p100-m-replanting-rehabilitation) this is not a good indication to the industry since Philippines cannot generate enough coffee. Some coffee shops only focus on the kind of coffee they sell without looking at the proper style or lay out the coffee should have. As a new entrant in this kind of business the researchers would make the layout of the coffee shop unique and a comfortable place for the customers to stay for them to be able to enjoy their cup of coffee. D. Major Government Programs Affecting the Industry In the Philippines there are certain laws that business follows with regards to establishing and running a business. For the betterment of the proposed business it should be following the laws implemented by the government to be for safety purposes. Below A Feasibility Study on Establishing F&D Coffee Shop At 1810 JP Laurel St. San Miguel Manila
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are the following laws that the business should be following: Republic Act No. 7394 (Consumer Act) this law protects the rights of consumers to protect their own welfare through safe products, just practices and correct information. This law definitely is an opportunity because abiding to this law means that the business could for sees that there would be a continuous patronage of the service offered by Coffee House. Republic Act No. 8424 (Tax Reform Act of 1997) this defines the objective of the taxation system which is towards economic growth. Taxes in the Philippines are present everywhere in the Philippines; in any business there is tax. These taxes are used by the government to finance their other projects that would benefit every Filipino and the whole country. This can be considered as a threat to the business because it may cause the pricing of the products to be higher even the raw materials can become higher. Despite this obvious disadvantage, paying due taxes is an act of a good citizen. Republic Act No. 6715 (Labor Code of the Philippines) The business shall hire employees to be able to run the business smoothly. There is a law in the Philippines that protects the benefits of the workers. This law can be an opportunity because the workers would be properly compensated and they would not be in jeopardy of being treated unfairly. Happy employers will create a happy ambiance and a profitable enterprise. Republic Act No. 9257 (Expanded Senior Citizens Act of 2003). Although the senior citizens are not the primary market target, one s business must also provide for it. This law covers the benefits that our senior citizen people should receive. They are to have a 20% discount of the entire regular retail price available in the market, but then they shall not exceed Php 650.00 per calendar week. This could be a good Corporate Social Responsibility because coping with the said law would provide us with a good image but then it would be a cost to us thus this would be considered as a threat to the A Feasibility Study on Establishing F&D Coffee Shop At 1810 JP Laurel St. San Miguel Manila Page 11
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business. Republic Act No. 7581 (Price Act) - Today prices in the Philippines keep rising with unpredictable rate that every Filipino is now having a hard time to cope with for they dont know where to get the money for them to buy their basic needs. Due to this law some may overprice their raw materials that would be needed in the Coffee house thus it would be costly for the business that results to becoming a threat to the said business.
II.
INDUSTRY DATA Macro- Environmental Forces Political/ Legal Forces Taxation In the food chains where everyone eats there is tax, when you buy something tax is imposed. These taxes make our government officials more corrupt because the public does not see where these taxes go. Come to think of it there is still a huge percentage of unemployed people meaning that the taxes Filipinos pay goes to the pocket of the officials because these officials does not use those funds for the betterment of the people. Instead of having less poverty, poverty now becomes worse than before. Economic Forces Inflation Rate The latest inflation rate is for the year 2008 at 9.3% then 3.2% for
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the year 2009 and lastly 8% for 2010. (http://www.gfmag.com/gdp-datacountry-reports/198-the-philippines-gdp-countryreport.html#axzz1SSrqKEi2). Based on these the researchers saw a big opportunity even if there was a .01% increase in the inflation rate. Even though there is .01 inflation rate the researchers can see a big opportunity since it is still increasing. Socio- Cultural Forces Location The researchers chose the place where they will put the coffee shop since it is accessible for several colleges and universities and which is are target markets. Second is the absence of a serious competitor within the area. Technological Forces In terms of technology aspects the researchers would be using up to date equipments to be able to cater the needs of the customers. WIFI is one of those things to be provided and equipments that would help in the production of coffee in a fast way and tumbler for the loyal customers. Porter Model The Porter Model aims to provide a framework that would help the researchers see their edge in the business they are about to put up. The 5 forces in the said model are Supplier Power, buyer power, competitive rivalry, threat of substitution and threat of new entry. Porter model analyzes each competitor of the Coffee Shop. A Feasibility Study on Establishing F&D Coffee Shop At 1810 JP Laurel St. San Miguel Manila
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Coffee house will be located at JARS building 1810 J.P Laurel St. San Miguel Manila. The location is near the University belt, Malacanang, De Ocampo Hospital and other establishment that most people go to.
Figure 1 Modern Porter Model
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New Entrant F&D Coffee Shop
Suppliers Coffee Barako of Batangas province Conlins Coffee Milk Rizal Dairy Farms Fresh cows milk Sugar -quality refined sugar Equipments Colins Coffee Breads Wheat city Village Gorment Company Inc.
Industry Participants -Starbucks (Sm Manila)
Buyers Students (59,307 students)
Substitutes 7-11 Wendys
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Opportunity of New Entrants The coffee shop business is booming in this days even the fast food chains already have coffee as part of their menu. Almost every Filipino starts their day with coffee to boost their energy. Bargaining Power of Suppliers Supplies would be coming from different business establishments but in big bulk orders, storage in bodega would be possible to get bigger discount in ordering bulk items. The existing establishment offers high quality ingredients, and equipments with an affordable price of the products. Substitutes
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The existing substitutes are fast food chains and convenient stores there is something different about Coffee house because it is a coffee shop where there is no rush and it would be peaceful unlike when you are in a fast food chain the tendency is that there would be a huge commotion due to the volume of students eating. Due to opportunity the researchers saw in the location they are still assured that the business will be successful in the future. Bargaining Power of Buyers The capacity of students within the area is not that big since they have less allowance than those who study in Makati. Due to this factor the researchers thought that to be able to capture the market they should be providing the right ambiance for coffee would not be fun to drink without the proper ambiance. It is not only at school that students can do their papers but in the business the researchers propose they will have a new venue and at the same time enjoy a simple coffee with friends and at the same time meet new friends. The proposed business would be a venue for the market to unwind and relax.
III. -
CORPORATE PROFILE Company Mission, Vision, and Philosophy Vision A coffee shop to offer affordable and healthy ones foods for its customer. A venue that would provide a proper ambiance to study and at the same time relaxes students who are exhausted and those who need a place to review or finish their pending paper works. Mission The business aims to provide a fast service at an affordable price for the
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young customers. It also aims to provide a suitable place where students and young professionals could unwind after a long school day on the other hand it would also be a suitable place where students could finish their own tasks. We are committed to provide and save the environment by observing waste segregation. Company History and Organization The Coffee House was proposed on June 2011. The business seeks to provide a place where students can unwind and at the same time enjoy a simple cup of coffee. The business to be established is proposed by the partnership of Donna B. Arbitrario and Danielle Beatrice S. Goan. To lessen costs they will seek the help of their family and the bank. Furthermore the partnership seeks to provide employment to the people at the same time both researchers are coffee lovers. IV. SWOT ANALYSIS Strengths 1. It is the first coffee shop in the area with a cozy ambiance. 2. The space to be used will be the capital contribution of one of the partner. 3. The partners would have the initial fund A Feasibility Study on Establishing F&D Coffee Shop At 1810 JP Laurel St. San Miguel Manila Weaknesses 1. Huge capital is needed as an investment 2. Super high tech machines maybe hard to operate and could breakdown easily 3. The business could
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for the operation at 60% from the owners and 40% from the bank. 4. The location is near the university belt where the target market is. 5. The manpower needed does not need too much training.
only offer few job opportunity for those jobless Filipino
6. The partners will be the initial manager of the Coffee House, thus the sense of responsibility and ownership is seen.
7. Modern machines are already available in the market for easier operation. 8. The shop is near a A Feasibility Study on Establishing F&D Coffee Shop At 1810 JP Laurel St. San Miguel Manila
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supermarket thus there would be easier source of remedy incase shortage of supplies occurs. 9. The business would abide in all the law policies regarding the business. 10. Employees to be hired are skilled. 11. Internet access such as WIFI is available in the proposed establishment
Opportunities 1. Existing government policies would provide a guide and at the same time protect the welfare
SO Strategy 1. (S5, O1) - There would be an implementation of personnel policies that
WO Strategy 1. (W3, O2) - The owners would provide training for a better service from the
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of the consumers. 2. 6.3% increase in the number of jobless Filipino 3. There are more consumers in the service sector
would provide sanctions for any violation done. 2. (S1, O2) - Provide additional job to Filipino with benefits and incentives. 3. (S4, O3) - Service Development, the business would offer products that would attract more customers based from a survey to be done. 4. (S1, O3) - Market Penetration Advertisements with the use of the flyers within the area can help introduce the newly opened Coffee Shop.
employees.
Threats 1. There are existing
ST Strategy 1. (S1, T4)
WT Strategy 1. (W1 T1)
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taxes in the Philippines that the business should follow such as Value added tax, withholding tax etc. These are unaffordable for the business. 2. Taxes collected may lead to more corrupt government officials in the Philippines. 3. The existing Senior Citizen Act may lead to lower sales due to the 20% discount given to them. 4. The boost of Service Sector in the Philippines
Service Differentiation The Coffee house may offer simple coffee drinks but with a different ambiance than a regular coffee shop.
The owners would seek financial aid from the financial institutions.
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Chapter 3 I. Target Market Identification For this study the researchers surveyed 100 students at the university belt. The schools covered are San Beda, Centro Escolar University, Arellano University, the estimated total population of the 3 schools is 59,307 college students. (Source: http://trifter.com/asia-pacific/philippines/top-40-largestphilippine-universities-by-campus/) The result of the survey shows that out of a 100, a total of 85 students drink coffee. 65% drink coffee in the morning, 2% in the afternoon and 18% drinks coffee at night (See Annex C). The kind of ambiance that the students prefer was also surveyed. Survey shows that students whose age is 15 to 19 prefer a cozy a ambiance, while those students whose age ranges from 20 to A Feasibility Study on Establishing F&D Coffee Shop At 1810 JP Laurel St. San Miguel Manila
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25 prefers a house ambiance (See Annex C). Also survey results shows, that college students drink coffee 100 out of 100 says so. For the estimation of the level of significance, the researchers will use the following formula: (total percentage of specific answer * level of significance) population
Potential Demand = (100%*0.95) 59,307 = 56341.65 or 56342 (100% based from the survey question #2)
Table 3-1 Demand Projection 2011 2012 2013 2014 56,342 people 57,671 people 59,032 people 60,425 people
The increase in population or demand projection is based from a 2.36% increase in growth of metro manila. (Source: http://www.ucl.ac.uk/dpuprojects/Global_Report/pdfs/Manila.pdf)
II.
Profile of Competitor
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The major competitor that F&D saw is Starbucks located at SM Manila. This coffee house opens at 10 am and closes at 9pm or 10 pm depending on mall hours. Based on the information given by the competitor
2011 2012 2013 2014
109,500 people 112, 084 people 114, 729 people 117,436 people
III.
Demand Supply Analysis Table 3-3 Demand-Supply Analysis Year Demand Supply Surplus of Supply 2011 2012 2013 2014 56,342 people 57,671 people 59,032 people 60,425 people 109,500 people 112, 084 people 114, 729 people 117,436 people -53, 158 -54,413 -55,697 57,011
Based on table 3-3, for the first year there surplus of supply and in the succeeding years. F&D coffee shop sees this as an opportunity despite of the surplus of supply; the first year of the business might be crucial but then due its unique layout and ambiance should be based on the said target market and might exceed the found competitor. A Feasibility Study on Establishing F&D Coffee Shop At 1810 JP Laurel St. San Miguel Manila
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IV.
Marketing Plan A. Product/ Service Strategy The F&D Coffee Shop is partnership business that operates inside the JARS building located in 1810 JP Laurel St. San Miguel Manila. The main product is obviously coffee with different types of frappes, flavors with other product such as pastries. The F&D Coffee Shop also have free wi-fi. The wi-fi can be only accessed at a given time to prevent over staying with buying only one cup. Students whose age is from 15-19 says that they prefer a cozy ambiance due to this F&D designed its interior with a cozy or relaxing ambiance (See Annex C (Table 3) and Annex D). The operating hours will start at 6am and close at 12 am. The store hours are set at that range because the location of F&D Coffee shop is only a few steps from Shot list bar and grill. The researchers for sees that the clients of Shot list bar and grill are future clients; after drinking alcoholic beverages clients might want to unwind
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or remove their hang over through coffee. B. Pricing Strategy A random survey within the area, the researchers found out that the majority of the students who are the target market (ages 18 to 19) are willing to pay 50 pesos for a cup of coffee. While 16% of the same age is willing to pay a cup of coffee at 55 pesos; on the other hand a 22% of the same age is willing to pay cup of coffee at 70 pesos and more. Based on these values the F&D coffee shop should start the offer a cup of coffee at 50 pesos but at the smallest cup in order to gain profit. Next is that F&D coffee shop could cater their biggest cup starting at 70 pesos depending on the kind of coffee they are to order. (See Annex C (table 1)) C. Promotion Strategy F&D Coffee will be using various strategies in promoting the business; before the grand opening of the business there will be leaflets given out in each Universities, schools, dormitories and offices. To attract the customer part the information in the leaflet that says grand opening, it will also indicate that the first 100 customers will be getting a 50% discount in their purchase. Aside from the leaflets tarpaulins will also be hanged in the location plus free tasting will be conducted as well. Upon the opening of the business, discount cards will be given out. The discount card said given out is a frequency visit card where in the customers should be visiting F&D coffee shop and buying coffee and each visit is equals to one stamp. A total 10 visits is required to finish the promo card with the following details. First is that they need to finish the first row it needs 5 visits then they are entitled to a free cup of coffee. Then they need to accomplish 3 more visits after they will be now entitled A Feasibility Study on Establishing F&D Coffee Shop At 1810 JP Laurel St. San Miguel Manila
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to a 50% discount on there coffee purchase. To be able to get the last freebee, they need to accomplish 2 more visits, once finished they are now entitled to free tumbler. Brochures will be available inside the F&D coffee shop so that other customers who are new in the area or just visiting the area will know more about the coffee shop. In the long run more promos will be done so that people will not forget F&D coffee shop. Souvenir items such as mugs, tumblers and pouch will be also available.
D. Distribution/ Place Strategy The researchers chose a location that is very accessible to students in the university belt. The location chosen will be part one of the partners capital contribution. Also the chosen location is a 5 floored building where in the 3rd and 4h floor are dormitory while the 2nd floor is a commercial area. There are existing tenants in the building; these are MLBS Tutorial Center, and Shinning Nail Salon. While on the ground floor the only existing business is the Shotlist Bar and Grill.
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E. Projected sales Table 3-4 Projected Sales for year 2011 Year 2011 Product Price Brewed Coffee 12 oz 14 oz Latte 12 oz 14 oz Mocha/Cappuccino 12 oz 14 oz 50.00 65.00 65.00 75.00 65.00 90.00 2981 425 425 1632 425 1632 149,050.00 27,625.00 27,625.00 122,400.00 27,625.00 No. of Units Sold Sales
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Frappe 16 oz Iced Coffee 16oz 80.00 1632 100.00 1632
146,880.00 163,200.00 130,560.00 794,965.00
Year 2011 Product Brewed Coffee 12 oz 14 oz Unit Cost 4.05 4.05 No. of Units Sold 2981 425 Cost of Sales 12,073.05 1,721.25 Page 30
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Latte 12 oz 14 oz Mocha/Cappuccino 12 oz 14 oz Frappe 16 oz Iced Coffee 16oz
12.43 12.43 17.43 17.43 24.60 24.60
425 1632 425 1632 1632 1632
5,282.75 20,285.76 7,407.75 28,445.76 40,147.20 40,147.20 155,510.72
Table 3-5 Projected Sales for the year 2012 Year 2012 Product Price Brewed Coffee 12 oz 14 oz Latte 12 oz 14 oz Mocha/Cappuccino 12 oz 14 oz 50.00 65.00 65.00 75.00 65.00 90.00 3473 485 485 1861 425 1861 173,650.00 31,525.00 31,525.00 139,575.00 27,625.00 167,490.00
No. of Units Sold Sales
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186,100.00 148,880.00
906,370.00
Year 2012 Product Brewed Coffee 12 oz 14 oz Latte 12 oz 14 oz Mocha/Cappuccino 12 oz Unit Cost 4.05 4.05 12.43 12.43 17.43 No. of Units Sold 3473 485 485 1861 425 Cost of Sales 14,065.65 1,964.25 6,028.55 23,132.23 7,407.75 Page 32
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14 oz Frappe 16 oz Iced Coffee 16oz
17.43 24.60 24.60
1861 1861 1861
32,437.23 45,780.60 45,780.60 176,596.86
Table 3-6 Projected Sales for the year 2013 Year 2013 Product Price Brewed Coffee 12 oz 14 oz Latte 12 oz 14 oz 50.00 70.00 70.00 75.00 3845 585 2121 2121 2121 2121 No. of Units Sold Sales 192,250.00 40,950.00 148,470.00 159,075.00 148,470.00 190,890.00 Page 33
Mocha/Cappuccino 12 oz 70.00 14 oz 90.00 Frappe
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16 oz Iced Coffee 16oz
100.00 2121 80.00 2121
212,100.00 169,680.00 1,261,885.00
Year 2013 Product Brewed Coffee 12 oz 14 oz Latte 12 oz 14 oz Unit Cost 4.05 4.05 12.43 12.43 No. of Units Sold 3845 585 2121 2121 2121 2121 2121 Cost of Sales 15,572.25 2,369.25 26,364.03 26,364.03 36,969.03 36,969.03 52,176.60 Page 34
Mocha/Cappuccino 12 oz 17.43 14 oz 17.43 Frappe 16 oz 24.60
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Iced Coffee 16oz 24.60 2121 52,176.60 248,960.82
Table 3-7 Projected Sales for the year 2014 Year 2014 Product Price Brewed Coffee 12 oz 14 oz Latte 12 oz 14 oz Mocha/Cappuccino 12 oz 14 oz 50.00 65.00 65.00 75.00 65.00 90.00 4416 630 2418 2418 2418 2418 No. of Units Sold Sales 220,800.00 40,950.00 157,170.00 181,350.00 157,170.00 217,620.00
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241,800.00 193,440.00
1,410,300.00
Year 2014 Product Brewed Coffee 12 oz 14 oz Latte 12 oz 14 oz Unit Cost 4.05 4.05 12.43 12.43 No. of Units Sold 4416 630 2418 2418 Cost of Sales 17,884.80 2,551.50 30,055.74 30,055.74
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Mocha/Cappuccino 12 oz 14 oz Frappe 16 oz Iced Coffee 16oz
17.43 17.43 24.60 24.60
2418 2418 2418 2418
42,145.74 42,145.74 59,482.80 59,482.80 283,804.86
Chapter 4 Operations Study I. TECHNICAL DESCRIPTION OF PRODUCT F&D Coffee Shop has a small location with approximately 100 sqm. Even if it is located in such area the business still aims to provide quality coffee drink at a cheaper price plus a different ambiance. Starbucks is just a simple coffee shop with regular stools etc, F&D coffee shop is a lot different for it will be providing books and magazine for the customers plus there will be a tv and sofa set so that the ambiance will be more cozy type. II. Process Flow The process flow of making Hot and Cold Coffee in the following figure:
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Figure 4-1 Process flow of creating a regular latte
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Figure 4-2 Process flow of making iced coffee A Feasibility Study on Establishing F&D Coffee Shop At 1810 JP Laurel St. San Miguel Manila
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Design Capacity A Feasibility Study on Establishing F&D Coffee Shop At 1810 JP Laurel St. San Miguel Manila
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Design capacity is the highest facility that can be attain under a certain circumstance. The total working hours for F&D coffee shop is 16 hours a day, starting at 8 am until 12am. 1 cup of ice coffee x 60 seconds x 60 minutes x 16 hours = 834 cups/day 69 seconds 1 min 1 hour 1 day
1 cup of ice coffee x 60 seconds x 60 minutes x 16 hours = 886 cups/day 65 seconds 1 min 1 hour 1 day
Effective Capacity Effective capacity is the capacity a firm or business expects to achieve given the operating constraints. In this research the expected peak hours are from 8 am until 10 am (the researchers assumed this time constraints based from the survey results see annex C table 2). The researchers assumed that there would be 10 turnovers per table (8) of F&D Coffee shop. 8 tables*(10 turnover/8 tables)*1.09 minutes cycle time*2 hours = 21 iced coffee cups 8 tables*(10 turnover/8 tables)*1.05 minutes cycle time*2 hours = 21 hot coffee cups
III. MACHINERY/ EQUIPMENT REQUIREMENTS A Feasibility Study on Establishing F&D Coffee Shop At 1810 JP Laurel St. San Miguel Manila Page 41
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The machinery and equipment are crucial in the successful of every business establishment. It is important that F&D Coffee Shop will acquire brand new machineries and equipments to avoid run-down the operations. The high quality with low cost machines and equipments will be endorsed by the coffee shop business for maximum customer satisfaction.
Table 4-3 Cost of Operations Equipments Machineries and Equipments Coffee Maker (Imarflex) Ice Blender (Dowell) Electric kettle (Dowell) Lamp (5 tall) Designed ceiling light Sony 32 LCD TV Whirlpool chest freezer 6CUFT 3.0TNS Kolin aircon Pastry case TOTAL QTY Cost/Unit 2 2 2 3 2 1 1 1 1 1,225.00 895 485 4,699.75 7,995.75 19,999.00 16,499.00 54,995.00 14,250 134,668.50 Total Cost 2,450.00 1,790.00 970 14,099.25 15,991.50 19,999.00 16,499.00 54,995.00 14,250 155,293.75 Useful life 5 5 5 5 5 5 5 5 5 Annual Depreciation 490.00 358.00 194.00 2,819.85 3,198.30 3,999.80 3,299.80 10,999.00 2,850.00 28,208.75
Table 4-4 Costs of Furniture and Fixtures A Feasibility Study on Establishing F&D Coffee Shop At 1810 JP Laurel St. San Miguel Manila
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Furnitures and Fixtures 2 SEATER Round black table with black and white hair 8 seater L-Shape black Book shelves TV rack Wooden Umbrella rack 4 SEATER Wooden Counter table with chairs Pocket door Revolving door Total
QTY 3 1 2 1 1 1 1 1
Cost/Unit 3,395.00 19,950.00 2,000.00 3,900.00 1,300.00 55,000.00 2,000.00 2,500.00 90,045.00
Total Cost 10,185.00 19,950.00 4,000.00 3,900.00 1,300.00 55,000.00 2,000.00 2,500.00 98,835.00
Useful life 5 5 5 5 5 5 5 5
Annual Depreciation 2,037.00 3,990.00 800.00 780.00 260.00 11,000.00 400.00 500.00 19,767.00
Table 4-5 Costs of office equipments Office Equipment Touch screen Cash Register including receipt printer, customer display and cash drawer Computer set Scanner fax machine (brother) Total QTY Cost/Unit Total Cost Useful life Annual Depreciation
1 1 1 1
95,000.00 23,000.00 2,900.00 4,000.00 124,900.00
95,000.00 23,000.00 2,900.00 4,000.00 124,900.00
5 5 5 5
19,000.00 4,600.00 800.00 24,400.00
IV.MATERIALS AND SUPPLIES RQUIREMENTS A Feasibility Study on Establishing F&D Coffee Shop At 1810 JP Laurel St. San Miguel Manila Page 43
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The materials and suppliers will be used by F&D coffee shop are distinguished in this section to measure their costs and be sure that they have the best quality of food and beverage so that they will gain more customers. This is the list of the materials and supplies that will be needed for the operation of F&D coffee shop listed below based on their categories KITHCHEN MATERIALS AND SUPPLIES Table 4-6 Unconsumable Kitchen Materials and Supplies Kitchen Materials and Supplies Plate for pastries water glass Mug (simply omega) Fork (Slique) set 6pcs. Spoon (Slique) set 6pcs. Tea spoon Bread knife Tumbler (Regular) Tumbler (Large) Hand towel set (3pcs) Total QTY Cost/Unit 30 15 20 16.75 25 6 6 30 30 25 25 10 39.75 79.75 79.75 24.75 28.75 99.75 149.75 99.75 633.75 Total Cost 450.00 335.00 993.75 478.50 478.50 742.50 862.50 2,493.75 3,743.75 997.50 11,575.75 Useful life 5 5 5 5 5 5 5 2 2 2 Annual Depreciation 90.00 67.00 198.75 95.70 95.70 148.50 172.50 498.75 748.75 199.50 2,315.15
Table 4-7 Ingridients A Feasibility Study on Establishing F&D Coffee Shop At 1810 JP Laurel St. San Miguel Manila Page 44
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Ingredients kapeng barako 1kl Fresh Cow's milk whip cream white sugar brown sugar
QTY 3 kl
Cost/Unit Total Cost 340.00 Php 1,020
5 liters 1 3 kilos 3 kilos
58.75 170.00 65.00 55.00
Php 289.75 Php 170 Php 195 Php 165
The quantity of each Office, Kitchen, Materials and Supplies and Ingredients will be purchased annually since the items can be stored for a long time. Some of these maybe bought in large amounts so there can be lesser expenses for the coffee shop. It will be coming from Landmark ad SM grocery stores and in SM appliances. V. Utilities Requirements One of the utilities needed by F&D Coffee shop to be able to operate is electricity. Electricity, would be provided by Meralco; the electricity shall be providing power to the equipments or machines to be used by the coffee shop
Tabel 4-8 Estimated Consumption of Electricity Monthly Equipments Power Supply Consumption Power Page 45
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Time
Consumption per Day
Coffee Maker Blender Microwave Oven Refrigerator Aircon Chest Freezer Computer Pin Lights Wall Lamp Bar Lights Total
.60 kw 1.9kw 1.4 kw .76 kw 1.91 kw .85kw .23 kw 5.25 kw 1.2 kw .40 kw
16 hours 16 hours 16 hours 24 hours 16 hours 16 hours 16 hours 16 hours 16 hours 16 hours
9.6 kwh 30.4 kwh 22.4 kwh 18.24 kwh 30.56 kwh 13.6 kwh 3.68 kwh 84 kwh 19.2 kwh 6.4 kwh 238.08 kwh
Electricity Yearly (Assuming no increase) Equipments Power x12 Supply Consumption Power Time Consumption per Day
5840 8760
Coffee Maker Blender
0.6 1.9
7.2 16 hours 22.8 16 hours
9.6 kwh 30.4 kwh

42048 133152
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Microwave Oven Refrigerator Aircon Chest Freezer Computer Pin Lights Wall Lamp Bar Lights Total
1.4 0.76 1.91 0.85 0.23 5.25 1.2 0.4
16.8 16 hours 9.12 24 hours 22.9 16 hours 2 10.2 16 hours 2.76 16 hours 63 16 hours 14.4 16 hours 4.8 16 hours
22.4 kwh
98112
18.24 kwh
79891.2
30.56 kwh 13.6 kwh
133852. 8 59568
3.68 kwh
16118.4
84 kwh
367920
19.2 kwh
84096
6.4 kwh
28032
238.08 kwh
112688 6.4
Second will be water it will be provided by the Maynilad Water Services. Water is essential for the business since the main product of F&D coffee shop needs water. Water will also be used for washing the equipments, plates, saucer, glasses, etc.
Table 4-9 Estimated Water Consumption Monthly Basic Charge FCDA Environmental Charge Sewer Charge MSC 542.21 0.54 86.67 108.33 2 Page 47
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Total Current Charges before Taxes VAT Total Current Charges Total per month
738.67 88.64 827.31 2393.29
Lastly telephone, used for communication. PLDT will be providing a bundle for F&D coffee shop. It will be providing telephone services and at the same time internet. VI. Plant/ Office Location F&D Coffee shop will be established at JARS Building 1810 JP Laurel St. San Miguel Manila. This site is chosen by the researchers is near the target market. The chosen site has also various means of transportation passing by such as jeepneys, taxis and private vehicles
Figure 4-1 Map of the Area
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Max's near San Miguel, Manila, Metro Manila, Philippines - Google Maps
11/ 23/ 11 12:44 AM
To see all the details that are visible on the screen, use the link next to the map. F & D"Print" Coffee Shop
2011 Google - Map data 2011 Google -
http:/ / maps.google.com/
Page 1 of 1
VII. Plant/ Office Lay out
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Chapter 5
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I.
Business Structure F&D Coffee Shop will be owned by partnership namely Ms. Donna B. Arbitrario and Ms. Danielle Beatrice S. Goan. This proposed business will be established at JARS Building, 1810 JP Laurel St. San Miguel Manila.
II.
Organizational Structure F&D Coffee Shop will be hiring only a few since a coffee shop does not need to much workers. Hiring a few employee for the business will still give a smooth flow in the operations and at the same time they will also have work shifitngs. The owners will be having their work shift at 5pm so as the waitress or waiter and the barista. The tasks that the owner will be performing are the following: Screening the applicants, checking the inventories and will be the cashiers of the store. The waitress shall do the following serving the order of the customer, do the dishes and clean the store. The Barista shall do the following they are to make sure that the working area is clean and be able to prepare the order of coffee as fast as possible.
Figure 5-1 Organization Structure A Feasibility Study on Establishing F&D Coffee Shop At 1810 JP Laurel St. San Miguel Manila
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Partners
Barista (In charge in making coffee drinks, maintaining the cleanliness of the work area.)
Cashier (The owners will serve as the cashier)
Waiters (In charge in cleaning the store and serving the products to the customers and at the same time wash the used utensils etc)
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Table 5-1 Salary Schedule
(No Increase in salary for 3 years)
Table 5-2 Benefits Schedule A Feasibility Study on Establishing F&D Coffee Shop At 1810 JP Laurel St. San Miguel Manila Page 53
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III.
Code of Ethics Page 54
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Confidentiality We are to keep everything in within the premises whatever is heard inside remains inside. Contracts with suppliers and sales records are kept highly confidential. Salaries and benefits of employees are strictly prohibited to be said to customers or clients. Personal records of employees are kept confidential. Ethics F&D serves honestly, and expects that clients and suppliers to do the same. Treating properly the clients and suppliers is being observed whether inside the shop or outside. Duty of care F&D shall be following the laws implemented by the government that is suitable for the nature of the business. We are to remit and pay all necessary accounts needed and never fail to comply. Contracts The contracts that F&D will be signing are legal and best for the company. They are to comply with everything stated in the contract Fees Salaries and Benefits will be provided by the partnership. All are to be given sufficient wages based on the total job done by Quality assurance Despite of the low cost of the products that F&D offers we are still very competitive in terms of ambiance and price without affecting the quality of the products we offer. Equality and discrimination Our actions on issues will never be influenced by issues of gender, race, creed, colour, age or personal disability.
Remember that good ethics is good business A Feasibility Study on Establishing F&D Coffee Shop At 1810 JP Laurel St. San Miguel Manila Page 55
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Business Policy F&D Coffee Shop wants to encourage a safe and pleasant work atmosphere. This can only happen when everyone cooperates and commits to appropriate standards of behavior. The following is a list of behaviors that the company considers unacceptable. Any employee found engaging in these behaviors will be subject to disciplinary actions including reprimand, warning, layoff, or dismissal: 1. Coming in late and not ready during work hours. 2. If the employee had intentionally destroyed any work property. 3. Not following any instructions of a supervisor. 4. Leaving your work station (except for reasonable personal needs) without permission from your supervisor. 5. Does not perform work duties or loafing during working hours. 6. Coming to work under the influence of alcohol or any drug, or bringing alcoholic beverages or drugs onto company property. 7. Misleading or lying about information to obtain employment or a leave of absence. 8. Habitually violating safety or health regulations. 9. Failing to wear clothing conforming to standards set by the company. Personal Appearance 1. If employees have tattoos it should not be visible. 2. Employees hair should always be kept neat with the use of hair net. A Feasibility Study on Establishing F&D Coffee Shop At 1810 JP Laurel St. San Miguel Manila
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3. Female employees should wear makeup but it should be light and natural. 4. Loud hair colors are strictly not allowed 5. Employees should not use perfumes with strong scent. 6. Clean and short nails
7. Clean and Pressed uniform should be worn at all times
8. Being tardy or taking unexcused absences from work. 9. Not taking proper care of, neglecting, or abusing company equipment and tools. 10. Using company equipment in an unauthorized manner. 11. Possessing firearms or weapons of any kind on company property. 12. Payroll every 15th and 30th day of the month salaries will be released. 13. Valid reasons will only be allowed for the advance salaries
Reference: http://www.smetoolkit.org/smetoolkit/en/content/en/1014/SampleWork-Rules
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Chapter 6 Financial Assumptions 1. The partners agreed capital contribution amounted to P 2,000,000.00 each. It is also agreed that the their profit and loss ratio will be allowing each partner to receive a salary of P 12,000 monthly which they can withdrew every month and balance to be divided in a ratio of 50:50 respectively. 2. An organization cost of P 20,325.00 will be allotted for the organization cost to be incurred for securing business name (DTI), Partnership firm (SEC) and etc
3. All depreciable assets will be having a estimated useful life of five year except for building that will have an annual depreciation of P 5,000 only.
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4. Taxes and Licenses will be 3% of the sales to be remitted to BIR because the entity will not be subject to VAT. Annual sales of the entity does not exceed One million five hundred pesos (P 1,500,000)and a five hundred pesos(P500) for registration fee. The 5% of the gross sales will be for the mayors permit which is 1500 monthly. 5. It is assumed the entity will provide supplies amounting to P 18000 with an increase of 5% annually.
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VERTICAL ANALYSIS As per vertical analysis it shows that during the first two years of the entity it incurred losses due quantity sold but in the third year of operation the quantity showed that there is enough resources to cover all the expenses by the entity. It also manifests that most of the entity resources went only to utilities and salary expenses. In addition to that, in the third and fourth year it surpasses its losses due to quantity sold.
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HORIZONTAL ANALYSIS In comparison with the first year as the base year, even if the sales increased in the second year of operation it does not enough to cover the losses but it decreases the losses to 46%. In the third year of operation, it shows that the 59% increase in sales was enough to cover the losses and it surpasses a 12% net profit and as well as in the succeeding period. It means that during the first two years of the entity that the company was not able to cover all of the expenses even if there are resources or demand in the market place. But maybe due to the increase of population in the vicinity or market place in the third year of operation onward were able to capture the market and incurred losses. Financial Ratio Analysis
The current ration shows that the company has the capability of paying short term debts. The decrease of current ratio shows that the business has the capability of turning products into cash.
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The figure shows that there is a decrease in the Fixed asset turnover which the researchers found it bad for the proposed business.
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Chapter 7 I. Contribution to the economy F&D Coffee Shop aims to provide a fast but with an affordable price. It also aims to provide a venue for students and young professionals to unwind all are stated in the mission statement of the business; with the mission mentioned F&D Coffee shop is able to contribute to the economy of the country, Philippines by paying various taxes imposed by the government. F&D Coffee Shop is a small business but strives to alleviate poverty .In line with this F&D coffee shop may not be hiring many employees but still hiring a few will help decrease the number of unemployed since the coffee shop will hire employees it will also contribute to the economy and as individuals. F&D Coffee Shop will contribute to the growth of the agricultural sector since the main product of the business is coffee in line with this it can also contribute for the farmers profit and in promoting production of coffee. This business is also for service sector, by increasing the number of demand in coffee. II. Employment Generation F&D Coffee Shop strives to be a place for students to hold their practicum and at the same time the business will contribute into decreasing the number of unemployed people in the country. The business is only a small entity it cannot afford to give minimum wage at the start but then it still sees an opportunity to alleviate poverty to people by providing them jobs.
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III.
Social Desirability F&D will be selling tumblers so that the use of cups for take out orders of coffee would be less. In addition as part of their environmental advocacies F&D Coffee Shop is implementing no smoking vicinity. Customers are not allowed to smoke inside the shop. The business will be strictly following the policies on proper waste segregation as well.
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CHAPTER 8 FINDINGS AND RECOMMENDATIONS I. FEASIBILITY FINDINGS The researchers found out that the study is not feasible, but then they see an opportunity in the study due to the increase of net sales; the researchers sees this as an opportunity that after 6 years the sales will become positive once the proposed business already makes a name in the area. II. RECOMMENDATIONS FOR FURTHER STUDY Due to lack of time the researchers recommends to do more researches for this project. Furthermore if more data will be gathered and a second look on the area the study for this project will better be enhanced and perhaps in the future study this business will make a name in the coffee industry.
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Reference:
2007 Census of Population http://census.gov.ph/data/census2007/index.html http://www.adlsu.com/2011/04/02/top-largest-universities-in-the-philippines/ http://trifter.com/asia-pacific/philippines/top-40-largest-philippine-universities-bycampus/ http://www.istorya.net/forums/campus-talk/206347-slovins-formula-need-help.html http://www.dti.gov.ph/uploads/DownloadableForms/FormsAppForCorpPartnership.pdf ccebu.net/cipc/forms/ccbpmt.doc http://www.nwpc.dole.gov.ph/pages/statistics/stat_current_regional.html
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Annex A
Good day! We, Donna B. Arbitrario and Danielle Beatrice S. Goan, 4th year Students of Assumption College are conducting feasibility study on putting up F&D Coffee Shop at JARS Building 1810 JP Laurel St. San Miguel Manila. We would like to hear your opinion on our proposed business and all your answers would be strictly confidential. Thank you very much Name: _____________________________ Gender: ___F ___M School: _______________________ Directions: Please read and check your answer. 1. Age: ___ 15-19 ___ 20-25 ___ 26-30 ___ 31-35 ___ 36 and above 2. Do you drink coffee? ___ Yes ___ No 3. When do you drink coffee? ___ Morning ___ Afternoon ___ Night 4. Do you do outside meetings/ events? ___ Yes ___ No 5. How often do you have meetings/ events? ___ Once a week ___ Twice a week ___ Once a month ___ Twice a month ___ More than twice a month 6. What do you consider in choosing a place for meeting/ events? ___ Location ___ Ambiance ___ Food ___ Fees ___ Internet Access 7. What kind of ambiance do you prefer in doing the meetings or events? ___ Cozy Ambiance ___ House Ambiance ___ Beach Ambiance ___ Library Ambiance 8. Usually how many are you during the meeting? ___ 2 -3 ___ 4-5 ___ 6 and more 9. How much do you spend during the meetings? ___ Below 1000 ___ 1001 1500 ___ 1501 2000 ___ 2001 and above 10. How much are you willing to spend for a cup of coffee? ___ Php 50 ___ Php 55 ___ Php 60 ___ Php 65 ___ Php 70 and above
Thank you, and Good day!
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A Proposal on Establishing F&D Coffee Shop at JARS Bldg. 1810 J.P. Laurel St. San Miguel Manila
Annex C Table 1 age * willingtospend Crosstabulation willingtospend 50 age 15-19 20-25 26-30 Count % of Total Count % of Total Count % of Total 36 and above Count % of Total Total Count % of Total Table 2 37 37.0% 1 1.0% 3 3.0% 1 1.0% 42 42.0% 55 16 16.0% 5 5.0% 0 .0% 1 1.0% 22 22.0% 60 4 4.0% 2 2.0% 0 .0% 1 1.0% 7 7.0% 65 6 6.0% 0 .0% 0 .0% 0 .0% 6 6.0% 70 and above 22 22.0% 1 1.0% 0 .0% 0 .0% 23 23.0% Total 85 85.0% 9 9.0% 3 3.0% 3 3.0% 100 100.0%
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age * when Crosstabulation when morning afternoon age 15-19 20-25 26-30 Count % of Total Count % of Total Count % of Total 36 and above Count % of Total Total Table 3 age * ambiance Crosstabulation ambiance cozy ambiance Age 15-19 20-25 26-30 Count % of Total Count % of Total Count % of Total 36 and above Count % of Total Total Count % of Total Table 4 77
night 18 18.0% 0 .0% 1 1.0% 2 2.0% 21 21.0%
Total 85 85.0% 9 9.0% 3 3.0% 3 3.0% 100 100.0%
65 65.0% 8 8.0% 2 2.0% 1 1.0% 76 76.0%
2 2.0% 1 1.0% 0 .0% 0 .0% 3 3.0%
Count % of Total
house ambiance 73 6 6.0% 4 4.0% 0 .0% 0 .0% 10 10.0%
beach ambiance 2 2.0% 2 2.0% 0 .0% 0 .0% 4 4.0%
library ambiance 4 4.0% 1 1.0% 0 .0% 0 .0% 5 5.0%
Total 85 85.0% 9 9.0% 3 3.0% 3 3.0% 100 100.0%
73.0% 2 2.0% 3 3.0% 3 3.0% 81 81.0%
willingtospend Frequency Percent Valid 50 55 60 65 70 and above Total 42 22 7 6 23 100 42.0 22.0 7.0 6.0 23.0 100.0 Valid Percent 42.0 22.0 7.0 6.0 23.0 100.0 Cumulative Percent 42.0 64.0 71.0 77.0 100.0
Table 5 often * willingtospend * drinkcoffe Crosstabulation Willing to spend Drink coffe Yes often once a week Count % of Total twice a week Count % of Total once a month Count % of Total twice a month Count % of Total Total Count % of Total 50 9 9.0% 2 2.0% 30 30.0% 1 1.0% 42 42.0% 55 0 .0% 3 3.0% 18 18.0% 1 1.0% 22 22.0% 60 1 1.0% 1 1.0% 5 5.0% 0 .0% 7 7.0% 65 1 1.0% 1 1.0% 4 4.0% 0 .0% 6 6.0% 70 and above 3 3.0% 1 1.0% 19 19.0% 0 .0% 23 23.0% Total 14 14.0% 8 8.0% 76 76.0% 2 2.0% 100 100.0%
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Annex E Frequency Table (Result of Survey)

Table 1 (Question 1) willingtospend Frequency Valid 50 55 60 65 70 and above Total 42 22 7 6 23 100 Percent 42.0 22.0 7.0 6.0 23.0 100.0 Valid Percent 42.0 22.0 7.0 6.0 23.0 100.0 Cumulative Percent 42.0 64.0 71.0 77.0 100.0
Table 2 (Question 2)
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age Frequency Valid 15-19 20-25 26-30 36 and above Total 85 9 3 3 100 Percent 85.0 9.0 3.0 3.0 100.0 Valid Percent 85.0 9.0 3.0 3.0 100.0 Cumulative Percent 85.0 94.0 97.0 100.0
Table 3 (Question 3) drinkcoffe Frequency Valid yes 100 Percent 100.0 Valid Percent 100.0 Cumulative Percent 100.0
Table 4 (Question 4) when Frequency Valid morning afternoon night Total 76 3 21 100 Percent 76.0 3.0 21.0 100.0 Valid Percent 76.0 3.0 21.0 100.0 Cumulative Percent 76.0 79.0 100.0
Table 5 (Question 5) outside Frequency Valid yes 100 Percent 100.0 Valid Percent 100.0 81
Cumulative Percent 100.0
Table 6 (Question 6) often Frequency Valid once a week twice a week once a month twice a month Total 14 8 76 2 100 Percent 14.0 8.0 76.0 2.0 100.0 Valid Percent 14.0 8.0 76.0 2.0 100.0 Cumulative Percent 14.0 22.0 98.0 100.0
Table 7 (Question 7) consider Frequency Valid location ambiance food fees internet access Total 31 47 8 2 12 100 Percent 31.0 47.0 8.0 2.0 12.0 100.0 Valid Percent 31.0 47.0 8.0 2.0 12.0 100.0 Cumulative Percent 31.0 78.0 86.0 88.0 100.0
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ambiance Frequency Valid cozy ambiance house ambiance beach ambiance library ambiance Total 81 10 4 5 100 Percent 81.0 10.0 4.0 5.0 100.0 Valid Percent 81.0 10.0 4.0 5.0 100.0 Cumulative Percent 81.0 91.0 95.0 100.0
Table 9 (Question 9) Many Frequency Valid 2-3 4-5 6 and more Total 25 49 26 100 Percent 25.0 49.0 26.0 100.0 Valid Percent 25.0 49.0 26.0 100.0 Cumulative Percent 25.0 74.0 100.0
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much Frequency Valid below 1000 1001-1500 1501-2000 2001 and above Total 30 30 28 12 100 Percent 30.0 30.0 28.0 12.0 100.0 Valid Percent 30.0 30.0 28.0 12.0 100.0 Cumulative Percent 30.0 60.0 88.0 100.0
LEASE REFERENCE:
ANNEX F CONTRACT OF LEASE

KNOW BY ALL MEN THESE PRESENTS: The LESSOR and the LESSEE named hereunder agree to enter and be bound by this Contract of Lease containing the following terms and conditions mutually agreed upon by the parties:
Part One: BASIC PROVISIONS

PARTIES
ORAS REALTY CORPORATION, a corporation duly organized and existing under Philippine laws, represented by its President, AIDA L. SIOSON Address 2/F JARS Building, 1810 J.P. Laurel St., San Miguel, Manila Lessee a partnership duly organized and existing under Philippine laws, represented by its Partners, DONNA B. ARBITRARIO and
Lessor
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Address LEASED PREMISES Area (sq.m.) Location / Address LEASE PERIOD Effectivity Expiration PAYMENTS
DANIELLE BEATRICE S. GOAN, 15 Jordan Drive, Jordan Valley Village, Baesa, QC Unit C Ground Floor Ninety-Eight (98) sq.m., more or less JARS Building 1810 J.P. Laurel, San Miguel, Manila Three (3) years 16 November 2010 15 November 2013
TEN THOUSAND PESOS (P10,000.00), net of all applicable taxes (including but not limited to VAT and withholding tax) Security Deposit ONE HUNDRED FIFTY THOUSAND PESOS (P30,000.00)
Monthly Rent Others (CUSA, etc.) Pre-termination Penalty
Forfeiture of Security Deposit plus payment of the total rent for the unexpired portion of the lease.
Part Two: TERMS AND CONDITIONS 1. LEASED PREMISES

1.1. LESSOR, for and in consideration of the covenants hereinafter contained and made on the part of the LESSEE, does hereby lease, surrender and turn-over unto LESSEE, and LESSEE does hereby lease from LESSOR the Leased Premises. The LESSOR further allows the LESSEE to install only within the leased premises facilities and utilities required for its business. 1.2. LESSEE shall have peaceful and uninterrupted possession of the Leased Premises for the entire term agreed upon in the Basic Lease Provisions, subject to the terms and conditions stated in this agreement. 1.3. The use of the leased premises shall be limited to the business operation of the F&D Coffee Shop, owned and managed by the LESSEE. The leased premises cannot be used as residence, temporary or otherwise, of the LESSEE, its employees and representatives. 1.3.1. LESSEE shall conduct its daily business operations only from 8am until 12am. It is absolutely prohibited for any person to remain within the leased premises, or stay in common areas of the building, at any time before and/or after the said business hours.
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1.3.2.
No person, including the LESSEE and its employees and representatives, shall be allowed to sleep within the leased premises as well as in the common areas (e.g., covered parking area) after business hours stated above. This prohibition is absolute and any incident in violation of this provision will be deemed conclusively as having been made with the express consent of the LESSEE and shall be a ground for the termination of this contract for cause.
1.3.3. 1.4. The LESSEE acknowledges that it enjoyed actual possession and use of the Leased Premises on May 19, 2012 and any provision to the contrary notwithstanding, the LESSEE shall be deemed conclusively in possession of the Leased Premises until such time that the Leased Premises shall have been vacated, surrendered and formally accepted by the LESSOR in writing. The pertinent provisions of this Contract of Lease and other applicable laws shall govern the LESSEEs obligations and other liabilities arising from such possession, even upon termination and/or expiration of this Contract of Lease and until such time that possession shall been restored with the LESSOR. 1.5. LESSEE shall be allowed access and use of all common ways and areas within the building of which the leased premises form a part and together with easements in such areas of the building as LESSEE may require for trash purposes, for loading and unloading LESSEEs supplies through the front and rear of the building, for ingress and egress of LESSEEs equipment, and for the installation, repair and maintenance of LESSEEs utility lines and HVAC systems, with access to such lines and equipment, throughout the term of this lease.
2. TERM OF LEASE
2.1. Unless otherwise terminated before the agreed term, the lease shall automatically end on the date indicated herein. The lease may be renewed for a similar period subject to terms and conditions mutually agreed by the parties. 2.2. If at any time during the term of this lease or within ninety (90) days before the expiration of the term of this Lease, LESSOR shall desire to accept a bono fide offer received by it to lease the Leased Premises for a term commencing at or after the expiration of the term of this lease or, if LESSEE has an option to extend or after the expiration of the option period(s), LESSOR shall notify LESSEE of such offer in the manner provided in this lease for the giving of notice. In the event the LESSEE fails to notify LESSOR of its election within the thirty (30) day period, LESSOR shall have the right to lease the Leased Premises to any person upon the terms and conditions contained in such notice of lease. LESSEEs acceptance or rejection of this offer shall have no effect on LESSEEs option to purchase or option to extend, if any.
3. RENT AND OTHER CHARGES

3.1. LESSEE shall pay LESSOR rent for the Leased Premises per month in accordance with the rates prescribed herein. All monthly rentals, CUSA and other charges due to the LESSOR are NET of all applicable taxes, including, but not limited to VAT, Creditable Withholding Tax, etc.
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3.1.1.
LESSOR grants to the LESSEE a thirty (30) construction / renovation period, from 1 April 2012 to 1 May 2012, rent-free. Monthly lease rental shall be charged and collected thereafter in accordance with the provisions of this Contract, despite the non-completion of the construction / renovation required by the business of the LESSEE. Any cause of delay in the completion of the said construction / renovation, not attributable to the gross negligence of the LESSOR, shall not absolve the LESSEE from paying the rent due after the said period. LESSEE further acknowledges that it has conducted due diligence with respect to the said construction / renovation and hereby waive any cause of action against the LESSOR arising from the delay or non-completion of its construction / renovation works within the said period. LESSEE further waives and absolves the LESSOR from any liability from any loss it may suffer on the account non-operation of its business due to the delay and/or noncompletion of the construction / renovation required of its business.
3.1.2.
3.1.3.
3.2. The LESSEE shall shoulder the corresponding Expanded Value-Added Tax and other applicable taxes due to the LESSOR, provided, a duly registered VAT-TIN Invoice and Official Receipt is issued to the LESSEE by the LESSOR for every payment made by the LESSEE in the Contract of Lease. 3.3. LESSEE shall shoulder among others, the creditable withholding tax on all rental payments and remit the same to the Bureau of Internal Revenue within the time prescribed by law. LESSEE shall immediately furnish LESSOR the copy of Certificate of Creditable Withholding Tax (BIR Form 2307) covering the abovementioned tax withheld. 3.4. The monthly rental shall be paid by the LESSEE at the office address of the LESSOR as mentioned herein on or before the fifth (5th) day of each month without the necessity of demand and without delay. In the event that the deadline for payment of any rental, charge or any other amount under and pursuant to this Contract of Lease falls on a Sunday or a legal holiday, payment shall be made on the next succeeding business day and the LESSEE shall not be considered in default or breach of the provisions of this Contract. 3.4.1. Upon the signing of this Agreement, LESSEE shall deposit with the LESSOR Check Payments for the entire term of the lease and dated in accordance with the above. Payment for the current month shall be deemed to have been made only upon the clearing of and crediting in favor of the LESSORs account, the Check payment deposited with the LESSOR.
3.5. In the event of delay or default by the LESSEE in the payment of rentals or any other charge on the date fixed herein for the payment thereof, an interest at the rate of three percent (3%) per month, compounded monthly, on any outstanding amounts due the LESSOR computed from the date of default until full payment thereof shall be applied.
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4. SECURITY DEPOSIT
4.1. The LESSEE shall pay the LESSOR an additional security deposit which shall be non-interest bearing, and shall serve as guarantee for the faithful compliance by LESSEE of all covenants and conditions of this Contract. The security deposit shall answer for any damage the LESSEE may cause unto the Leased Premises/Property of the LESSOR while LESSEE is in possession of the Leased Premises, unless otherwise forfeited by the LESSOR in such cases as provided for in this Contract of Lease. 4.2. Said security deposit cannot be applied by LESSEE to any rental payment including CUSA charges or any other unpaid obligations of the LESSEE under this Contract of Lease. The total security deposit in the aforementioned amount shall be maintained and kept intact throughout the life of this Contract. LESSEEs liability to the LESSOR arising from the implementation of Contract of Lease and use of the Leased Premises during the life of this Contract shall not be limited to the security deposit. 4.3. The security deposit or any balance thereof, after LESSOR has deducted any amount chargeable to the security deposit as provided herein, shall be returned to LESSEE only upon the expiration of this Contract of Lease and/or upon other grounds as may be provided in this Contract within sixty (60) days after possession of the Leased shall been restored to the LESSOR and upon proof of full settlement of its obligations to the pertinent utility companies servicing the Leased Premises. Should LESSEE terminate this Contract of Lease before the expiration thereof for any cause or reason and the termination is not brought about by the gross negligence or substantial breach of any provision of this Contract of Lease by the LESSOR, said security deposit shall be automatically forfeited by LESSEE in favor of LESSOR, which shall serve as liquidated damages to the LESSOR. 4.4. Any provision of this Contract of Lease notwithstanding, the amount of liquidated damages due to the LESSOR shall in no case be less than the amount of Security Deposit forfeited in favor of the LESSOR plus the total rent due from the unexpired portion of the lease. Forfeiture of the security deposit shall not, in any way, limit or absolve the LESSEE from payment of its outstanding and unpaid obligations and liabilities that are existing and accruing at the time of the termination of the Contract. Any such outstanding and unpaid obligations of the LESSEE shall not be deducted from and shall be paid in addition to the security deposited already forfeited in favor of the LESSOR. The LESSOR shall have the right to claim from the LESSEE damages or reimbursement for expenses and costs it incurred the arising from any damages caused to the Leased Premises and/or the Building while in possession of the LESSEE, wear and tear excepted. 4.5. In the event that the pre-termination of the Contract of Lease is brought about by the gross negligence or substantial breach of any of the provisions of this Contract of Lease by the LESSOR, the security deposit shall be returned to the LESSEE without need of further demand from the LESSEE within a period of ninety (90) days from the effective date of the termination of the Contract of Lease; provided that possession has been restored to the LESSOR.
5. CONDITIONS, REPRESENTATIONS AND WARRANTIES 88

As principal consideration which induced the Parties to enter into this Contract of Lease, both has represented and warranted, as it represents and warrants to each other that, upon the execution of this Contract of Lease and/or throughout the entire duration of this Contract: 5.1. It has the legal power and authority to lease the Leased Premises to LESSEE and to execute this Contract of Lease, and when executed, this Contract of Lease shall be legal, valid, binding, and enforceable in accordance with its terms and conditions: 5.2. Parties acknowledge that the Leased Premises are free and clear of any liens and/or encumbrances of whatever nature, except those annotated at the back of the title of the property; and are not subject of and/or involved in any suit pending before the courts or administrative bodies at the time of the execution of this Contract of Lease. 5.3. The applicable Government bodys approved use for the Leased Premises is for commercial purposes. Further, LESSOR shall furnish LESSEE, upon written request of LESSEE, all certifications and clearances in support thereto. 5.4. LESSOR shall defend its title over the Property and the Leased Premises against claim/s of any nature whatsoever that may be initiated and / or filed by any third party or parties. 5.5. LESSOR have turned the possession of the Leased Premises over to the LESSEE clear of accounts in arrears for real estate taxes on land and any other taxes, fees or charges due to National/local Government Unit, agencies and instrumentalities. In the event LESSOR is unable to settle all real property taxes, charges, fees and other taxes in arrears, the LESSEE may advance payment subject to reimbursement by the LESSOR. LESSOR shall furnish LESSEE a copy of the latest payment of real property taxes and all other taxes, tax declaration covering the Leased Premises as well as zoning provisions of the said Leased Premises. 5.6. The LESSOR warrants that it shall not erect, alter or consent to the erection or alteration of any structure located or to be located on any of its properties adjoining or neighboring the Leased Premises, or otherwise make or consent to be made any construction on or development of or in the Leased Premises, as well as of the surrounding or adjoining properties that it owns, which would change the nature of the Leased Premises as agreed upon by the Parties, or would impede the visibility, traffic or accessibility to the Leased Premises or suitableness of the Leased Premises for the business of the LESSEE. 5.7. Subject to the other pertinent provisions for pre-termination stated herein, should the LESSEES business operations be interrupted, suspended or impeded substantially for a period exceeding ninety (90) days from the actual day thereof, the LESSEE may terminate this Contract of Lease, provided that the cause of such interruption or suspension is not caused by any act of the LESSOR amounting to gross negligence. 5.8. If, at any time, the LESSORs title or right to receive rent under this Lease is disputed or there is a change of ownership of the LESSORs property by act of any of the parties or operation of law, only upon the issuance of a lawful order from a court of competent jurisdiction that the LESSEE shall either deposit in judicial escrow or deposit in escrow with a reputable banking institution the rent and any compensation thereafter accruing to the LESSOR. The deposit of the rent and any compensation of the LESSOR in judicial or bank escrow shall continue until the issue shall have been resolved
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and/or the party entitled to receive the rent is determined by the said court of competent jurisdiction. LESSEE agrees to advance and shoulder all reasonable and documented costs, expenses, charges and damages incurred or sustained by either Party in effecting the deposit of the rentals in escrow, judicial or otherwise, and in the prosecution of any proceeding or action commenced for the purpose of enabling the LESSEE to deposit the rentals in escrow, judicial or otherwise. Any advance payments made by the LESSEE cannot be deducted from the rentals deposited in escrow or from the rentals due over the Leased Premises prior to their deposit in escrow, judicial or otherwise. 5.9. The LESSOR warrants that the Leased Premises and the Building shall be maintained and kept in such condition and state as it is in upon execution of this Contract, normal wear and tear excepted and throughout the duration of this Contract. Said warranty of the LESSOR is a primary consideration of the LESSEE in entering into this contract. In the event that the Leased Premises and/or the Building is not properly maintained by the LESSOR or the Leased Premises becomes of or is in such a state that renders unsuitable for the LESSEE to continue its business operations, the LESSEE shall have a right to terminate or cancel this Contract without the need for judicial action and without prejudice to the right of the LESSEE to enforce other rights or to seek other relief or remedies provided elsewhere in this Contract, by law or equity; provided that the cause of the deterioration or rendering of the leased premises as unsuitable for the LESSEE to continue its business operations is not attributable to the LESSEE. 5.10. Violation/s of the warranties above-provided, as well as of those provided by law, shall constitute material breach of this Contract of Lease and may be considered as grounds for the Parties to exercise their rights, remedies and/or options provided in this Contract of Lease, or to consider this Contract of Lease terminated and cancelled without need for judicial action, and without prejudice to the right of the LESSOR to enforce other rights or to seek other relief or remedies provided elsewhere in this Contract of Lease, by law or equity.
6. PERMITS AND LICENSES

6.1. The LESSEE shall obtain, at its own expense, permits and licenses required by the City and/or National Government for the construction of LESSEEs desired improvements and the operation of its business. The LESSOR shall exert its best endeavors to assist the LESSEE in obtaining all the necessary permits, licenses and clearances, by providing the LESSEE with any and all documents and instruments relating to the Leased Premises or to the Contract of Lease needed to obtain said permits, licenses and clearances. 6.2. Lessee agrees that the cancellation or pre-termination of this Contract of Lease on the basis that it is unable to, for any reason whatsoever and not attributable to the gross negligence of the LESSOR, obtain all permits and approvals necessary to construct LESSEEs improvements in the Leased Premises or introduce the facilities, equipment and utilities necessary and indispensable in the operation of LESSEEs business in the Leased Premises shall among others, cause the forfeiture of the security deposit in favor of the LESSOR. 6.3. LESSEE shall comply with all the laws, ordinances, rules and regulations promulgated by the duly constituted authorities of the National, and/or City Government regarding the use, occupancy,
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security and sanitation of the Leased Premises: PROVIDED, that all works of temporary character, which may be ordained by the National, and/or City authorities to be placed or done on the Leased Premises shall be for the account and expense of LESSEE.
7.
UTILITIES
7.1. The LESSEE acknowledges that the following utility lines: (1) water line, (ii) sanitary sewer line, (iii) electric current, have been so provided by the LESSOR. It shall be the obligation of the LESSEE to repair and maintain the foregoing utility service lines in the Leased Premises throughout the term of this Lease. If the utility service is interrupted to the Leased Premises due to the need of maintenance and repair to the utility lines, the LESSEE at its expense and upon prior notification and consent of the LESSOR immediately commence restoration and repair of the lines and conduits in order that the utility service is resumed at the earliest possible time. 7.2. Subject to prior notice and approval of the LESSOR, the LESSEE may apply for the increase of the utility service to the Leased Premises. LESSEE, at its expense, may to request from the utility company servicing the Building of which the Leased Premises is a part of, an increase in service either directly to the Leased Premises or through the existing service to the Building. 7.3. LESSEE may apply with the pertinent utility companies for separate electrical, water and other utility supply for the Leased Premises. However, in the event the power, water or other utility companies require that LESSEE apply for electrical, water or other utility connections with or through LESSOR or Building, LESSOR shall provide complete documents and assistance needed by LESSEE to effect such electrical and/or water connections. 7.4. The LESSEE shall pay when due all proper charges for all utility consumption used in the Leased Premises directly with the pertinent utility companies while in possession of the Leased Premises. 7.5. The LESSEE shall pay to the LESSOR within five (5) days of receipt of the appropriate monthly billing for its electricity and water consumption. The said monthly billings shall be based on the electric and water sub-meter readings plus a pro-rata amount of the other fees and charges imposed by the respective utility companies. 8.
TRADE FIXTURES, MACHINERY, EQUIPMENT & GAS
LESSOR agrees that all trade fixtures, machinery, equipment, furniture or other personal property of whatever kind and nature kept or installed in the Leased premises by the LESSEE shall not become the property of the LESSOR or a part of the property, no matter how affixed to the Leased Premises and may be removed by the LESSEE; provided that such removal is done in good faith and that the LESSEEs monthly rents and other obligations are updated; and provided that the LESSEE shall be liable for any damage to the Leased Premises and/or the LESSOR caused by such removal by the LESSEE or any other person or entity made at any time while the LESSEE is in possession of the Leased Premises as defined herein.
9.
PARKING SPACES/SIDEWALK & COMMON AREAS 91
9.1. The LESSEE shall have priority in the use of the open parking space in front of its leased premises. Except specific areas reserved for the LESSORs use, the covered parking area located at the back of the building will be on a first-come-first-park basis. No reservation of any parking area shall be allowed unless with the written consent of the LESSOR. 9.2. All open parking areas in front of the building cannot be used other than for parking vehicles owned by the LESSOR, other tenants of the building and their guests / clients. LESSEE waives and absolves the LESSOR from any liability arising from the damage caused on the LESSEEs and/or its guests / clients vehicles parked on the said area as well as those parked in the covered parking area. 9.3. The LESSOR hereby appoints the LESSEE, and the LESSEE so accepts such appointment, as attorney-in-fact of the LESSOR to exercise such special power to abate and/or remove any and all obstructions on the street or sidewalk around the Leased Premises and adjoining premises or the entrance of the Leased Premises. With such acceptance, LESSEE acknowledges that it shall have the primary obligation to maintain the sidewalks and keep them free and clear of vendors, rubbish, trash, vehicles whether public or private, tricycles whether motorized or not and similar obstacles, which may affect its the operations and business.
10. SUBLEASE & TRANSFER OF RIGHTS

LESSEE does not have the right to assign, sublet or transfer its right under this Contract of Lease without prior written consent of the LESSOR. In the event that the LESSOR consents to such assignment or transfer, LESSEE agrees, any provision in the subsequent assignment or transfer notwithstanding, that the terms and conditions of this Lease shall be respected; and in cases where the LESSEE subleases the Leased Premises in accordance with the provisions herein, LESSEE shall continue to be primarily liable for the compliance with terms and conditions of the lease. In the event of such assignment and transfer of rights, the security deposit shall remain with the LESSOR and subject to the other pertinent provisions of this Contract of Lease.
11. PRE-TERMINATION OF LEASE

11.1. Subject to prior payment of the Pre-termination Penalty herein stated, LESSEE shall have the right to terminate this Contract of Lease before the expiration, for whatever cause or reason upon service of a written notice of termination to the LESSOR at least ninety (90) days prior to the intended date of termination of the Contract of Lease. At least fifteen (15) days before the intended date of pretermination, the LESSEE shall settle any and all of its outstanding obligations arising from the Contract, which shall be due and accruing on the said date. 11.2. In addition to the forfeiture of the security deposit and other conditions in this Contract of Lease, should possession of the Leased Premises remain with the LESSEE after the date of the intended pre-termination, the LESSEE shall, among others, pay the applicable monthly rentals and CUSA charges as provided herein until such time that possession of the Leased Premises have been restored to the LESSOR.
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11.3. The LESSEE shall remove any movable property introduced to or placed in the Leased Premises at its own expense. Such removal shall be done such that no substantial damage is caused to the building and/or the Leased Premises in the process of removal. LESSEE shall be liable for any damage upon or caused to the Leased Premises while in possession of the Leased Premises. 11.4. The LESSEE shall peacefully vacate and surrender to the LESSOR the Leased Premises and shall restore possession thereof to the LESSOR in good condition, excepting ordinary wear and tear. The LESSEE shall turn over to the LESSOR all keys to the Leased Premises, including all duplicates. All permanent improvements introduced by the LESSEE shall automatically belong to the LESSOR upon termination of this Contract of Lease without need of reimbursement to the LESSEE. The said permanent improvements shall automatically belong to the LESSOR upon the expiration or at the end of the term of this Contract of Lease, any subsequent renewal of the lease executed thereafter notwithstanding. 11.5. In all instances provided in this Contract of Lease for termination and/or for expiration of the term of the lease, the LESSEE may only remove movable property introduced to or placed in the Leased Premises, in good faith and at its own expense; provided that the LESSEE have no more outstanding obligations and/or other liabilities due to the LESSOR. Further, subject to the pertinent provisions of this Contract of Lease, LESSEE shall have the right to remove improvements, it being understood that LESSEE shall repair, at its expense, any damage that may be caused to the Building and/or Leased Premises as a direct result of the process of removing such improvements or additions, normal wear and tear excepted upon the termination of the Contract of Lease.
12. IMPROVEMENTS, ALTERATIONS, ADDITIONS & USE OF PREMISES
INSTALLATION
OF
SIGNAGES,
12.1. The Leased Premises shall be used by LESSEE for lawful purposes. LESSEE, for its own account, and with prior notice and written consent of the LESSOR, shall have the right to install or display on the designated area on the entrance of the leased premises, one (1) business signage bearing its company name and logo, free of charge. Additional signages may be installed by the LESSEE upon prior payment of additional fee. 12.2. The LESSEE shall be liable and shall hold the LESSOR free and harmless from any liability or damage caused by any existing signages it introduced in the Leased Premises and other signages it may introduce in the future provided however that no fault or gross negligence is attributable to the LESSOR, its directors, employees, officers or agents for such damage or liability. 12.3. The LESSEE may only introduce or commence construction of such additional signages upon receipt of the LESSOR of the payment of the agreed additional monthly charges for the signages. 12.4. Upon expiration or termination of this Contract of Lease, LESSEE may remove only such detachable improvements, additions, and installations and other movable additions and improvements, provided that no substantial damage is caused to the Building and/or the Leased Premises in the process of removal.
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13. CARE OF LEASED PREMISES

13.1. LESSEE shall keep and take care of the Leased Premises with extra-ordinary diligence, ensuring that the same is in good, clean, sanitary and tenantable condition and free from all obnoxious or unpleasant odors, unnecessary loud noises or other nuisances. 13.2. LESSEE hereby agrees further, that any damage to the Leased Premises or its appurtenances caused by said LESSEE or his agents employees, customers, guests or any other persons without any gross negligence attributable to LESSOR, its directors, officers, employees, agents or authorized representatives shall be LESSEEs sole responsibility and liability, which damage shall be repaired promptly, at its expense, within thirty (30) days, otherwise LESSOR may cause said repairs to be made at the reasonable expense and for the account of LESSEE. 13.3. LESSEE must notify LESSOR within the shortest possible time of any damage to the Leased Premises or its appurtenances, as well as any occupation, usurpation or untoward act which any third persons may have committed or may be committing or threatening to do upon the Leased Premises. LESSEE is granted, and hereby accepts the grant of a special power of attorney and act as the LESSORs attorney-in-fact to exercise full power and authority to abate and prevent any such occupation, usurpation or untoward act of any third persons may have committed, may be committing or threatening to do upon the Leased Premises. Failure of the LESSEE to exercise such power or authority, despite the notification made to the LESSOR, shall not absolve the LESSEE from liability from the any damage caused to the Leased Premises and/or to the LESSOR. 13.4. LESSEE shall, at his own expense, maintain the leased area in good order, and all expenses for the repairs of locks, electrical switches and other items turned over shall be for the account of the LESSEE. When the Leased Premises are returned, these items must be intact and working wear and tear excepted. Breakage of glass materials and other breakable parts within the Leased Premises caused by the fault, negligence and other movements of LESSEE, its employees and visitors shall likewise be for the account and paid for by LESSEE provided that no gross negligence may be attributable to the LESSOR, its directors, officers, employees, personnel, agents and/or authorized representatives.
14. REPAIR & MAINTENANCE

14.1. Ordinary repairs as well as extraordinary repairs caused by the LESSEE or its officers, employees, customers or agents, made in or upon the Leased Premises and/or the equipment areas shall be for the account of LESSEE. 14.2. LESSOR shall promptly repair and maintain common utility lines under its control, roofs, water proofing of deck roof, foundations and building/structural elements, which are not the responsibility of LESSEE, in good condition and repair and in compliance with the law, governmental and insurance regulations throughout the term of this Contract of Lease. 14.3. In the event the LESSOR commence works for the preservation, maintenance, improvement and/or ornamentation of the Building in which the Leased Premises are located, it shall exert all efforts to ensure that such works are performed in a manner which shall not greatly disturb or interrupt the business operations of the LESSEE and are completed in the least amount of time. The Parties
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herein agree that the state of the Building at the time of the execution, normal wear and tear excepted and the maintenance of trading area of the Building was a primary inducement on the part of the LESSEE in entering into this Contract. 14.4. In the event that immediate repairs of areas/structures under the LESSORs responsibility are required and are affecting LESSEEs operations in the Leased Premises, LESSEE shall notify LESSOR in writing. If LESSOR does not act on the written notice within fifteen (15) days from receipt of such written notice, LESSEE may be allowed to enter and repair subject area or structure. Provided that a prior written consent of the LESSOR for the repair and its estimated costs has been obtained, all actual costs of such repairs may be reimbursed by the LESSOR upon presentation of evidence of actual expenses incurred. For this purpose, LESSOR hereby appoints the LESSEE as Attorney-in-fact to all local government agencies, units, instrumentalities and local government units only for the purpose of obtaining all permits, licenses and documents necessary for the immediate repair of the premises. The LESSEE shall furnish the LESSOR a summary of all cost, expense, and disbursements incurred by the LESSEE on all repairs. The LESSOR shall reimburse the LESSEE for such costs, expenses and disbursements within thirty (30) days from receipt of the summary together with the pertinent attachments. For purposes of this provision, the definition of immediate repairs shall constitute but shall not limited to structural foundation of the Building/Leased Premises, roofing and waterproofing of all areas of the building, main building drainage and any and all areas which may affect the operations in the Leased Premises that are within the LESSORs responsibility.
15. PROHIBITIONS AGAINST INFLAMMABLE MATERIALS

Except for cooking materials, supplies and equipment which are inherent or necessary to, or part of the operations of, LESSEEs business, LESSEE shall not bring into or store in the Leased Premises anything of commercial volume or quantity of highly inflammable explosives, chemicals or materials, or install therein any apparatus, machinery or equipment which may cause obnoxious odors, tremors, or noise, or expose the Leased Premises to fire or increase the fire hazards of the Building.
16. SALE/MORTGAGE OR ASSIGNMENT OF PROPERTY/BUILDING TO THIRD PARTY

16.1. Any sale by the LESSOR of the Property and/or the Building and/or the Leased Premises during the term of this Contract of Lease shall be with prior notice to the LESSEE and any such sale must be subject to the terms and conditions hereof. 16.2. In the event the LESSOR decides to sell the property and/or the building and/or the Leased Premises to a third-party, the LESSEE shall have the right of first refusal to buy the property and/or the Building and/or the Leased Premises at the price not lower than the price offered by the third party. Provided, that said right should be exercised within thirty days (30) from receipt by the LESSEE of notice from the LESSOR of its intent to sell. 16.3. If the LESSEE is not able to acquire the Property and/or the Building and/or the Leased Premises at the said price and the LESSOR sells, transfers or conveys its ownership over the Property and/or the Building and/or the Leased Premises, the LESSOR hereby warrants that they shall disclose this
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Contract of Lease and will require as a condition for such sale, transfer or conveyance that the buyer shall respect this Contract of Lease and shall comply with all of the obligations of the LESSOR as provided under this Contract of Lease or in law including the obligation to return to the LESSEE the security deposit of the LESSEE upon the expiration or termination of this Contract of Lease. 16.4. Likewise any mortgage, lien or encumbrance by the LESSOR of the property and/or the Building during the term of this Contract of Lease shall be with prior notice the LESSEE and must be subject to the terms and conditions hereof. 16.5. Moreover, the mortgage, trust deed, or other instrument creating such encumbrance shall contain an apt provision under the terms of which the existence of this lease shall be recognized, and shall provide that so long as the LESSEE, its successors and assigns, shall keep and perform the terms, covenants, and conditions in this lease contained on its part to be kept and performed, neither the holder of the indebtedness, nor any other person, shall, in attempting to enforce collection of such indebtedness or to realize upon such security have any power to impair, modify, abrogate or adversely affect the rights of LESSEE, its successors and assigns, under this lease, to the full enjoyment of the entire term. LESSEE, while not in default under this lease shall, notwithstanding the creation of or default under any such encumbrance or indebtedness secured by the Leased Premises, peacefully and quietly have, hold and enjoy the Leased Premises for the entire terms, and all other rights, privileges and benefits to which it may be entitled under and pursuant to the terms of the lease. 16.6. In all instances, in the event of any sale, mortgage, transfer or assignment of the property and/or Building, the LESSOR shall furnish the LESSEE a duly notarized signed copy of the Deed within fifteen (15) days upon execution by the parties.
17. EXPROPRIATION AND CONDEMNATION

17.1. If the whole of the Leased Premises, or such portion thereof as will make the Leased Premises unsuitable for the purposes Leased, is expropriated for any public use or purpose by the Government or any of its instrumentalities or political subdivisions or any public service company, this Contract of Lease shall cease only from the time when possession is taken by such government authority upon a lawful order of a court of competent jurisdiction. Rental shall be accounted for between LESSOR and LESSEE as of the date of the actual surrender of possession upon a lawful order of a court of competent jurisdiction. LESSEE shall forfeit its security deposit in favor of the LESSOR and be liable for other damages to the LESSOR in case it surrenders possession of the Leased Premises without any prior notice and written acknowledgement and consent from the LESSOR of its intention to surrender the possession of the Leased Premises that has become the subject of expropriation. 17.2. Such termination shall be without prejudice to the rights of either LESSOR or LESSEE to recover compensation from the condemning authority for any loss or damage caused by such expropriation or condemnation. 17.3. In the event only a portion of the Leased Premises is expropriated or condemned, LESSEE shall
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continue the lease with the same terms and conditions under reduced rentals in proportion to the area or portion of the Leased Premises remaining. Any cancellation and termination of said contract resulting from a partial expropriation shall be subject to the pertinent provisions on pretermination and other applicable provisions of this Contract of Lease.
18. DAMAGE OR DESTRUCTION TO LEASED PREMISES

19.1. If the building constructed in the Leased Premises is rendered substantially unfit for the occupancy or use herein contemplated by any force majeure or fortuitous event or any other cause beyond LESSEEs control, and such force majeure or fortuitous event subsists for a period of not less than ninety (90) days, LESSEE shall notify LESSOR of its intention to continue the lease of the Leased Premises within a period of thirty (30) days after the said ninety (90) day period. LESSEE shall promptly and diligently restore the Leased Premises to the condition existing prior to the occurrence of the casualty or peril. The term of lease shall be extended to such corresponding period that Leased Premises is being restored. Thereafter, LESSEE shall promptly and diligently restore the necessary improvements and alterations for the operation of LESSEEs business. 19.2. In the alternative, the LESSEE may terminate this Contract of Lease upon giving due notice to the LESSOR within reasonable time from the occurrence of such casualty or peril, subject to the pertinent provisions on pre-termination and other applicable provisions; provided that the amount to be received by the LESSOR shall in no case be less than the agreed pre-termination penalty.
19. INSURANCE
The LESSEE shall, at its sole cost and expense and during the entire term of this lease, keep its leasehold improvements in the Leased Premises insured against destruction or damage by fire and extended coverage risks in an amount equivalent to the replacement value of the same with a reputable insurance company and will pay the premiums thereon at the dates and places that the same are payable to insure coverage. The LESSEE may, upon the request of the LESSOR, provide the LESSOR a Certification from LESSEEs insurer as to existence of said insurance policy.
20. CONFLICTS OF INTEREST

Both Parties represent that to the best of their knowledge, no other person connected directly or indirectly with the other Party is an agent, employee, supplier, licensee or officer of the other or any subsidiary, affiliate or parent corporation. The Parties executing this contract acknowledge that these representations are being relied upon by each other as inducement to enter into this contract.
21. EXCLUSIVITY
22.1. LESSOR covenants and agrees that no property (other than the leased premises) now or hereafter owned, leased or controlled, directly or indirectly, by the LESSOR or, if LESSOR is a corporation, any subsidiary or affiliate of LESSOR, adjacent or contiguous to the Leased Premises or within the building complex shall, during the term of this lease and any extensions, be leased, used or
97
occupied by any of the LESSEE known direct business competitors. 22.2. LESSOR further covenants and agrees that it will not do anything to interfere with the visibility of or access to the Leased Premises or LESSEEs signage.
22. TERMINATION OF THE LEASE

23.1. In addition to grounds for termination of this Contract provided elsewhere herein. the Contract of Lease shall be considered terminated upon the expiration of the lease term. 23.2. LESSEE agrees to return and surrender the Leased Premises at the expiration of the term of this Lease and restore possession to the LESSOR, in as good condition as reasonable wear and tear will permit and without delay whatsoever, devoid of all occupants, furniture, machinery, equipment, signages, and articles and effects of any kind subject to the pertinent provisions stated in this Contract of Lease. 23.3. If after the expiration of Contract of Lease the possession of the Leased Premises remains with the LESSEE, the LESSEE shall be liable and agrees to pay the LESSOR monthly rental and plus other applicable charges equivalent to the existing rate plus ten percent (10%), with an annual escalation of ten percent (10%), until such time it has restored to the LESSOR the possession of the leased premises and/or a new lease contract has been duly executed. Such amounts shall be immediately due and paid in the same manner as the payment for monthly rentals and CUSA charges are provided herein. 23.3.1. Any provision of this Contract of Lease to the contrary notwithstanding, LESSEE shall be liable and pay the said amounts, even in the absence of any formal agreement, provided that possession as herein defined remains with the LESSEE. LESSEE acknowledges that payment of such rentals and other charges shall not be construed as consent of the LESSOR, implied or otherwise, for the renewal and/or extension of the lease. 23.3.2. Any renewal or extension of the lease shall be void unless made in writing and formally executed by the Parties.
24. MISCELLANEOUS PROVISIONS

24.1. REAL ESTATE TAXES, FEES AND CHARGES. For the entire duration of this Contract, the LESSOR shall pay the real estate taxes and other property assessments except on all the improvements the LESSEE has introduced and which it shall be liable to pay. Any taxes, including documentary stamps, fees or charges whether national/local which may be imposed by virtue and as a result of the execution, implementation and/or operation of this Contract of Lease shall be for the account of the LESSEE. 24.2. ANNOTATION. Upon signing of this Contract of Lease, the LESSOR may allow upon a formal request of the LESSEE, at LESSEEs expense, to annotate this Contract of Lease on Transfer Certificate of Title covering the Leased Premises. The LESSOR shall assist the LESSEE for the
98
said purpose and shall furnish LESSEE with all the necessary documents in its possession or control required for such annotation. 24.3. BUILDING CODE VIOLATIONS. That, if there is any building code violations in the Leased Premises, on the exterior of the building or any portion of the Building not leased to the LESSEE, which violations would affect LESSEEs receipt of any necessary approvals for the work LESSEE intends to perform within the Leased Premises or which would prevent LESSEE from obtaining a Certificate of Occupancy upon completion of its work or which would at anytime prevent or hinder LESSEEs business operations within the Leased Premises, LESSOR will promptly commence the removal of such violations and complete such removal of violations within a reasonable time, provided that such violations, if any is not attributable to the LESSEE. If the LESSOR shall fail to commence to remove them within sixty (60) days after due notice from the proper government authority, the LESSEE shall have the right to perform any and all work necessary to remove such violations. 24.4. LOSS BY THEFT, ROBBERY AND OTHER CRIMES. LESSEE shall provide for LESSEEs own security service for the Leased Premises and LESSOR shall not be held liable for damages suffered by LESSEE in the Leased Premises by reason of theft, robbery and other crimes. 24.5. NON-WAIVER. The failure of the parties to insist upon a strict performance of any of the terms, conditions and covenants hereof shall not be deemed a relinquishment or waiver of any rights or remedies that said Party may have nor shall it be construed as a waiver of any subsequent breach or default of the terms, conditions, covenants which shall continue to be in effects. No waiver by the Parties of any of their rights under this Contract of Lease shall be deemed to have been made unless expressed in writing and signed by both of them. 24.6. BINDING EFFECTS. This Contract of Lease shall be binding not only between the Parties thereto but also upon their respective successors and assigns. 24.7. All grants of general and special powers and appointments of the LESSEE as attorney-in-facts as stated herein are co-terminus with this Contract of Lease and shall automatically be revoked and terminated upon the termination and or expiration of this of Contract of Lease. 24.8. CAPTIONS. The captions appearing in this Contract of Lease are inserted only as a matter of convenience and for reference and in no way define, limit or describe the scope and intent of this agreement or of any of the provisions hereof. 24.9. NOTICES. For all intents and purposes, notices, correspondence and processes shall be directed to the Parties as stated in Part One. Any such notice sent by registered post shall be deemed to have been given fourteen (14) days after the date of mailing, which date shall be evidenced by the postmark at the point of mailing. Any such notice by facsimile or telex shall be considered to be given as of the date of such facsimile or telex if the date appears on the face thereof; if not, the date of such notice shall be in accordance with the above with regard to the confirming airmail letter relating thereto. Otherwise, any such notice shall be deemed to have been given when received by the Party to whom such notice is sent as evidenced by a receipt signed and dated by the Party or its representative.
99
A Party may change the address at which it receives notice by so notifying the other Party hereto in writing. Any notice sent by the LESSEE at the last known address of the LESSOR or to the address indicated herein shall be effective and binding upon the LESSOR until the receipt of any notice by the LESSEE of such change in address. 24.3. FORCE MAJEURE. As defined herein, Force majeure is any event beyond the reasonable control of either party, which effectively cause the cessation or stoppage of the business operations of the LESSEE for a period of not less than ninety (90) days, and shall be limited to the following: war (whether declared or not), rebellion, natural calamities other than flooding and fire. In the event of force majeure, the affected Party shall notify the other Party without delay. Any deadlines, which cannot be met as a result of force majeure, shall automatically be extended taking into account the necessary preparation periods for the resumption of the said performance of obligations SEPARABILITY CLAUSE. In the event that any paragraph, sub-paragraph or part of this Contract of Lease shall be declared contrary to law or public policy, or is otherwise declared invalid by a court of competent jurisdiction, such paragraph, sub-paragraph or part shall not affect the validity of the remaining provisions or stipulations hereof. ENTIRETY OF AGREEMENT. This Contract embodies the entire agreement of the parties hereto. This Contract shall supersede all previous communications, representations or agreements, either oral or written, between the parties hereto particularly pertaining to the lease of the premises covered by this Contract. No amendments to the Contract of Lease shall be valid unless the same are reduced to writing and signed by the parties hereto. VENUE. All actions under this Contract of Lease shall be instituted at the proper court of ___________________ City to the exclusion of all others.
24.4.
24.5.
24.6.
IN WITNESS WHEREOF, the parties hereto have signed this at _______________, Philippines on this _____ day of _____________, 20__. LESSOR LESSEE
Witnesses: __________________________________ __________________________________
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ACKNOWLEDGMENT REPUBLIC OF THE PHILIPPINES) MANILA CITY ) S. S.
BEFORE ME, a Notary Public for and in _________________________, this __ day of ________________, 2010, the parties personally appeared: Name Evidence of Identity Date/Place Issued
and to me known to be the same persons who executed the foregoing and acknowledged to me that the same is their free and voluntary act and deed of the parties, which have duly authorized them as their representatives in this Contract of Lease. This document consisting of _________________ (__) pages including t the page where this acknowledgment is written, has been signed by the parties together with their instrumental witnesses on
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each and every page hereof. WITNESS MY HAND AND SEAL on the date and place herein above written.
NOTARY PUBLIC
Doc. No. ________ Page No. ________ Book No. ________ Series of 2010.
Annex G
Business Permit Application Form _____ New _____ Additional His Honor; the Mayor City of Manila Sir: We, Donna B. Arbitrario and Danielle Beatrice S. Goan owners/operation, of legal age and citizen of Manila, hereby apply for a permit to engage in business and for this purpose the following information are submitted: BUSINESS/TRADE NAME : F&D Coffee Shop SIGNAGE NAME (if differ from business/trade name: _____________________ NAME OF PERMITEE- F&D Coffee Shop >in case of Corp., the name of Corporation: _____________________________ 102
Application No. ___________________ Date Received ___________________ Received by: __________________
>in case of Single Proprietor,name of Owner: BUSINESS ADDRESS : 1810 JP Laurel St. San Miguel Manila CAPITAL INVESTED : 10,000,000.00 DATE OF OPERATION : _________________________________________ DESCRIPTION OF BUSINESS : Coffe Shop BARANGAY : San Miguel Manila The above declaration is subject to verification by proper authorities upon demand without objection. I promise to open only the business(es) granted approval by this application, subject to submission of the applicable requirements as listed at the back of this application form. The permit issued shall be posted in a conspicuous place in the establishment together with all the receipts evidencing payments of taxes, fees and other charges provided for in Section 11, City Ord. LXIX, as amended, series of 1993, otherwise I shall be liable to pay the penalties prescribed thereon. I promise to surrender the business permit with tax receipts duly annotated by the City Treasurer, upon expiration of the period stated therein or upon transfer for any cause. Otherwise, by non-compliance therewith, shall subject me to whatever amount of tax and other charges that may be imposed by the government. ________________________________ Signature of Applicant Community Tax Cert. No. ___________ Issued on __________ at ___________ TIN: ____________________________ SUBSCRIBED AND SWORN to before me this _____ day of _________________, 20___ at ________________________, Philippines. Affiant exhibiting to me his/her Community Tax Certificate No. ____________ issued on __________________, 20___ at ________________________, Philippines.
________________________________ Notary Public
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REQUIREMENTS FOR BUSINESS PERMIT APPLICATION:

GENERAL REQUIREMENTS: (Must be submitted by all types of Application) [ ] 1. Latest Barangay Clearance or duly accomplished application for Barangay Clearance [ ] 2. Sketch Plan of business location (to be drawn in separate sheet of paper) Note: [ [ [ [ [ [ ] 3. ] 4. ] 5. ] 6. ] 7. ] 8. ADDITIONAL DOCUMENTS: (To be submitted within 30 days upon Issuance of certification)
Sanitary Permit SSS Clearance Declaration for Electrical and/or Mechanical Provisions Public Liability Insurance Residence Certificate A and B for Single Proprietorship, C and C1 for Corporation Lease Contract between the Lessor and the Lease. If leased, attached mayors Permit, registration of the building owner/landlord as a real Estate Lessor. If not, Lease Contract between the Lessee and the Sub-Lessee with conformity of the Owner of the Building Administration. If owned, transfer Certificate of Title (TCT) or Tax Declaration (photocopy copy). [ ] 9. Fire Safety Inspection Certificate SPECIFIC REQUIREMENTS: (In addition to the General Requirements must be complied upon application) TYPE OF BUSINESS [ ] Sole/Single Proprietor [ ] Corporations/Branch Offices of Corporations REQUIREMENTS Business Name registration from DTI SEC/CDA; Certificate of Registration; Board Resolution in case of Corporation whose main office is outside Cebu City authorizing the opening of a branch in Cebu City and indicating the Capital Investment thereat. DTI Accreditation Certificate BFAD License Central Bank Authorization Custom Brokers License NFA License BFAD License PCAB Contractors License ERB Permit POEA Accreditation Future Commodity Merchant/Brokers License DOTC Permit DENR Clearance Pest Control License DTI Issued Real Estate Brokers License Occupancy Permit & Ownership DOLE Permit LTFRB License Camp Crame License to Operate PCSUCIA National License Liquor License NTC License Videogram Permit issued by VRB
[ ] Auto repair Shop, Electronics, Radio & other Electrical Equipments [ ] Bakery [ ] Banking Institution [ ] Custom Brokerage [ ] Dealers of Rice, Corn & Wheat [ ] Drugstore [ ] General/Specialty & Engineering Contractor [ ] LPG Dealer [ ] Manning & Crewing Services [ ] Merchant/Broker of Commodities for Future Transactions [ ] Messengerial & Courier Service [ ] Mining [ ] Pest Control Services [ ] Real Estate Broker [ ] Real estate Lessor [ ] Recruitment Agency [ ] Rent-A-Car & Transport Service [ ] Sell/Operation Firearms & Explosives [ ] Security Agency [ ] Selling, Disposing, and/or Dispensing of Liquor [ ] Telecommunication [ ] Video rental Services
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[ [ [ [
] Videoke Machine/Video Game Machine ] Video Music Machine (coin-operated) ] Government-owned lot/clearance ] Others: _______________________________
PNP Approval SPEED Approval ______________________________________
-------------------------------------------------------------------------------------------------------------------------------------------HOW DO YOU WANT THE CITY GOVERNMENT TO USE THE MONEY THAT YOU PAY FOR BUSINESS PERMIT? Please Check one (1) only. [ ] For the improvement of Peace & Order (more police, more patrol cars, etc.) Pls. Specify ___________ _________________________________________________________________________________ [ ] Asphalting of road (name of road) _____________________________________________________ [ ] Sodium lights (name of road/location) __________________________________________________ [ ] Artesian Well (location) ______________________________________________________________ [ ] Drainage improvement (location) ______________________________________________________ [ ] Others (pls. specify) ________________________________________________________________
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F & D Coffee Shop

5. To enumerate the environmental programs used by F&D coffee shop.

F & D Coffee Shop

F & D Coffee Shop

F & D Coffee Shop

F & D Coffee Shop

F & D Coffee Shop

F & D Coffee Shop

F & D Coffee Shop

2008 8,161,73 GDP 9 2,538,46 100% 31%

2009 8,476,89 9 2545105 100% 30%

2010 9,505,15 9 2,932,27 8 100 31%

271,893 4431164 178862

321543 4962483 180137

1,108,71 13% 1049875 12% 8 12%

F & D Coffee Shop

F & D Coffee Shop

F & D Coffee Shop

F & D Coffee Shop

F & D Coffee Shop

F & D Coffee Shop

Figure 1 Modern Porter Model

F & D Coffee Shop

New Entrant F&D Coffee Shop

Industry Participants -Starbucks (Sm Manila)

Buyers Students (59,307 students)

Substitutes 7-11 Wendys

F & D Coffee Shop

F & D Coffee Shop

F & D Coffee Shop

F & D Coffee Shop

only offer few job opportunity for those jobless Filipino

F & D Coffee Shop

SO Strategy 1. (S5, O1) - There would be an implementation of personnel policies that

F & D Coffee Shop

Threats 1. There are existing

ST Strategy 1. (S1, T4)

WT Strategy 1. (W1 T1)

F & D Coffee Shop

F & D Coffee Shop

F & D Coffee Shop

F & D Coffee Shop

2011 2012 2013 2014

F & D Coffee Shop

F & D Coffee Shop

F & D Coffee Shop

F & D Coffee Shop

F & D Coffee Shop

Frappe 16 oz Iced Coffee 16oz 80.00 1632 100.00 1632

146,880.00 163,200.00 130,560.00 794,965.00

F & D Coffee Shop

Latte 12 oz 14 oz Mocha/Cappuccino 12 oz 14 oz Frappe 16 oz Iced Coffee 16oz

12.43 12.43 17.43 17.43 24.60 24.60

425 1632 425 1632 1632 1632

5,282.75 20,285.76 7,407.75 28,445.76 40,147.20 40,147.20 155,510.72

No. of Units Sold Sales

F & D Coffee Shop

Frappe 16 oz Iced Coffee 16oz 80.00 1861 100.00 1861

F & D Coffee Shop

14 oz Frappe 16 oz Iced Coffee 16oz

17.43 24.60 24.60

1861 1861 1861

32,437.23 45,780.60 45,780.60 176,596.86

Mocha/Cappuccino 12 oz 70.00 14 oz 90.00 Frappe