COFFEE CIRCUS

(BUSINESS PLAN)

SUBMITTED TO: MS.EVALINDA EUGENIO

SUBMITTED BY: ANGELICA CABALCE

LALA BANGIT

JERICHO MARTILLANO

ROWEL SUYAT

ELMERIO SANTOS

PIOLO LOMBOY

CONDRAD ANDRES
 STRENGTH’S WEAKNESSESS

I
 High-grade Arabica
N Coffee Beans  More popular known coffee shops

 Less popularity and reputation

 Expertly desingned and
T labeled cups and mugs to
compared to others

suit modern taste  New staff to train for operations

E  Need to get more funding from
 Unique concept loans and investors
R  Close to the school  As startup, less experience in
operating the business
N  Close to the public
transport
A

L
E
 Ability to attract customers  Lots of popular coffee shop
X from the BACNOR NATIONAL
 Prices of coffee beans and oter
High School
supplies may increase
T  The ability to appeal to a  Changing market taste
different target market than
E other cafes  Limited income of our target
market
 The ability to expand
R  Ability to build brand equity
 Opportunity to open franchising
N

A
OPPORTUNITIES THREATS
L
COFFEE CIRCUS
 I. DESCRIPTION OF THE GOOD/SERVICES TO BE
OFFERED

Coffee Circus will be a coffee house located in the Bacnor East in Burgos,
Isabela. The coffee house will offer a variety of choices to the customers. Coffee
and tea of all sorts will be offered. The choices of coffee will range from
espresso to latte, from regular flavor to raspberry-mocha. The teas will range
from English to flavored varieties.Juice, soda, and non-alcoholic beverages also
will be available. For those who want something else to drink, both wine and
beer will be on sale. Wine can be ordered by the glass or by the carafe. Bottled
micro-brewed beer will be available.
The Coffee Warehouse will provide a first-class delivery service of quality hot
and cold beverage related supplies, including whole bean or ground coffee,
flavor syrups, jet teas, fruit smoothies, bubble teas, concentrated milk, fresh
baked goods and assorted paper supplies. Our services will include invaluable
trade resources, effective promotional programs, custom-designed marketing
material, informative monthly newsletters, training and product demonstrations,
as well as information on the latest market trends in the coffee/specialty
beverage industry.The Coffee Warehouse will carry a variety of quality products
that will enable us to provide full service delivery to espresso stands and coffee
houses. Our underlying philosophy in selecting products is to choose lines that
will bring consistent quality, competitive prices, and product satisfaction to our
customers.
An important component of our business is not just our products, but our
service. In addition to our full service delivery, the following are other important
service elements that we will offer to our customers:Ideas to help our
customers increase sales through menu development, creative promotions,
co-op advertising, and much more, custom designed marketing material such as
printed banners, promotional posters, punch cards, pre-purchased beverage
cards, reader boards, etc., distribute a monthly newsletter featuring the latest
coffee trends, new industry equipment, breaking trade news, promotional ideas,
new creative recipes, and upcoming events,samples of the latest product
releases - with eye-catching point-of-sale to advertise new items to the end
consumer and routine equipment maintenance and training.
II.Target Market
COFFEE CIRCUS focus its marketing activities on reaching the students and faculty, people
working in offices located close to the coffee bar and on sophisticated teenagers.

COFFEE CIRCUS will cater to people who want to get their daily cup of great-tasting coffee in a
relaxing atmosphere. Such customers vary in age, although our location close to the campus
means that most of our client will behigh school students and faculty. As well to the:

Drip Coffee Drinkers

The latest research has found that 77 percent of adults in the United States drink coffee on a
daily basis. Depending on the price you charge for a cup of coffee, your target market may be
students and business workers on their way to work or class, who want a cheap cup for the
caffeine kick. On the other hand, you may choose to go after the upscale market, to appeal to
middle- and upper-class coffee drinkers, who have the income to pay several dollars for a cup of
coffee. The age of the coffee drinkers matters, too, with 40 percent of people aged 18- to 24-years
old drinking coffee daily, while 54 percent of people aged 25- to 39- years, indulge in a daily cup.

Coffee Shop Lovers

People who spend time at shops and cafes where specialty drinks and regular cups of coffee
are available along with an inviting atmosphere –– rather than coming in to grab a cup of Joe
on the go –– are another target market.
Specialty Coffee Drinkers

Espressos, cappuccinos, lattes, and mochas are just the start, if you want to sell specialty
coffee drinks. The target market for this coffee product consists of those who love specific
ingredients in their coffee-based beverage, and are willing to pay a premium to get what they
want.

Whole Bean Buyers

Another target market consists of people who buy whole bean coffee to make at home or in
the office. These buyers ask to have the beans ground in the store, or they grind the coffee
themselves, for the freshest cup possible
 III.LOCATION

Our location will be in BACNOR EAST, BURGOS,ISABELA because here we will have no
competitors, since we are the first who builds a coffe shop here.

Profile of the respondents

Categories Frequency %

Gender
Male 133 44.3
Female 167 55.7

Age
15-24 127 42.3
25-44 80 26.7
45-64 69 23
65+ 24 8

Experience of coffee shops

Categories Frequency %

Like Coffee Shops

Yes 287 95.7
No 13 4.3

Coffee Shop Visits The coffee-drinking

Often 95 31.7 behaviour of our
Sometimes 146 48.7 choosen location is
Rarely 53 17.7
Never 6 2
summarised in
table .95.7%of
Preferred Coffee Shop Type
respondents liked coffee
International Brand 139 46.3 shops.
Local Brand 161 53.7

Visits With Who

Alone 33 11
Friends 151 50.3
Family 51 17
Partner 51 17
Work Colleagues 14 4.7
VI.Organization
Coffee Circus will be operated as a Sole Proprietorship. There will
be private investors. However, these investors will be silent
investors with a payoff of investment within three years. These
investments will be paid twice-yearly in equal installments
including interest.
Overall management will be the responsibility of the owner. There
will be a general manager and shift supervisors.

VII.Promotion & Advertising

The advertising and promotion will take a number of
avenues. First, flyers will be distributed in the
neighborhood. Ads will be taken out in all of the
Catholic church even in Born Again churches
bulletins in the area. These ads will offer 10% off, if the
parishioner brings the bulletin with them.Special
events will be promoted with a portion of the proceeds
going to the school. Since Coffee Circus will be the
first union restaurant in the barangay, ads will be
placed in all of the union newsletters offering a 10%
discount to anyone showing their union card. Ads will
also be placed in the target areas of the Badong’s
Grocery, and the local neighborhood newsletters. For
special entertainment nights, radio and newspaper
ads will be placed. Entertainment and food critics will
be given an invitation. On opening night we will have
an invitation only party, with over 1,200 invitations
being sent.

V.CAPITAL
Cost Analysis

Start-Up Expenses
Owner's Initial cash contribution $10,000
Equipment Loan $30,800
Remodeling Loan $20,000
Operating Loan $23,000
Investors $16,100
Total available cash $99,900
Total Cost of Capital Equipment
Beginning Inventory $8,000
Building Lease $11,238
Equipment $30,800
Legal Fees $500
Accounting fees $1,000
Licenses & Permits $12,000
Remodeling work $20,000
Deposits (public utilities, etc.) $500
Adverting (grand opening, etc.) $1,000
Promotions (door prizes, etc.) $1,000
Other $1,000
Total Start-up Expenses $87,038
Beginning Cash Balance $12,862
Equipment Cost
Large Kitchen $9,750
Small Kitchen $3,000
Tables $1,000
Chairs $3,100
 Couches, Chairs $2,500
20 Lamps $500
10 End Tables $300
Curtains $500
Braided Rugs $250
Sound System $1,000
Space Planner $2,000
POS System-PC $2,000
Software $300
Dishes $1,000
Signage $3,000
Uniform Shirts $600
Total Cost Capital Equipment $30,800

IV.GOALS AND OBJECTIVE’S

Goals
Keep cost of goods sold at or below 30%. Provide customers with prompt and courteous service.
Objective

 Provide initial training for all employees

 Hold monthly employee meetings
 Have an open door policy for employee suggestions and concerns
 Implement the use of the Business Plan systems
 Purchase and use the Food Fax software package
 Have clearly defined job descriptions and duties
 Have an employee policy handbook
 Do employee reviews every six months
 Customer suggestion box
 Design kitchen and service area to be efficient

MANAGEMENT

Goal
To have a competent and knowledgeable management staff which functions as a team.
Objectives
  Hire experienced, qualified persons
 Conduct weekly management meetings
 On-going training to include outside classes in food service, management, etc.
 Reviews every six months
 Performance incentives
 Encourage creativity

FINANCIAL
To maintain costs of goods sold to 30% or less. To increase sales within an 18 month period to 3%
of the target market. To maintain financial records.

Goals
Objectives

 Purchase and use Food Fax software

 Train employees proper food handling to prevent waste
 Maintain a weight and portioning system for food
 Check for quality of food from suppliers when food is delivered
 Maintain storage equipment in proper working condition
 Hire an experienced and qualified accounting firm
 Contract out payroll
 Purchase a personnel computer
 Utilize Business Plan equipment Use Accounting software

X.Coffee and its social impact

Everyday, millions of people wake up and start their day with a fresh, hot and comforting cup of
coffee.
Coffee is enjoyed all over the world and all coffee lovers would agree that a freshly brewed coffee
made from the finest beans is the best way to enjoy a coffee. It’s the best way to start your day as
well as relax at the end of the day.

Coffee unifies various characteristics that make it a crop with an enormous social and economical
significance.The income generated by this product has traditionally been considered as a source of
social and economical stability for more than 25 million farming families in tropical and subtropical
regions around the world.
Additionally, and given that a good portion of those coffee producers are owners of farms with
limited dimensions, the export of coffee is an important source of income distribution. In fact, in the
absence of market distortions the income from coffee operations is circulated amongst a broad
population base, in contrast with other products such as petroleum, whose income produces profits
mostly for the governments and companies in charge of its exploration, refinement and distribution.
The small coffee producers usually confront buyers that have greater liquidity and capacity to
purchase, if not more information regarding the development of the current international prices of
the product. Unfortunately producers frequently do not receive a transparent price that would avoid
local merchants, exporters and processors to generate greater margins at the expense of producers.
Diverse NGOs, multilateral banks, and organizations for international cooperation have searched for
ways to create new models of commerce that guarantee minimum prices or transparent prices for
many small coffee producers. On their part different coffee producing countries have attempted to
develop institutional models for coffee that would correct these inequities.The distortions that are
generated in a market composed of large buyers and small sellers. At the same time the
organization has been able to leverage significant resources of social and environmental investment
behind its Sustainability That Matters programs.
From the point of view of its consumption, coffee is amongst the products most used on a daily basis
around the world. In the main markets, such as the United States, nearly half of the adult population
drinks coffee on a daily basis. In other markets, such as China, Japan or even Great Britain, which are
characterized by the high consumption of other hot beverages, such as tea, the consumption of
coffee has shown signs of steady growth.
As coffee is a beverage whose consumption is associated with social interaction, such as reunions
with family and friends, it has penetrated various cultures and has become,, as time goes by,an
instrument to build relationships in diverse societies around the world. The history of
coffee demonstrates that the social influence of the beverage has had an effect in even the most
diverse environments. Accordingly there are many conversations that can revolve around the rites
and customs associated with coffee, the politics of coffee and even coffee and the environment. The
topics that can be discussed around a cup of coffee are countless.
VIII.PRICING
The food price will be in the moderate range and comparable to other
coffee houses in the area. The cost will be determined by not only what the
going rate in the area is but also by the percentage of actual cost of the
food. The price will not only be competitive, but the food will be tasty, well
presented, and large portions will be served in a relaxing atmosphere
where the customer will be comfortable. The image projected by the pricing
will be that the customer will be getting a fair value for their money; that
they do not need to be rich to eat at Coffee Circus and anyone can afford to
come in. They will be able to use the books and games. In the evening,
they will be able to listen to the live entertainment. During the day, music
will be played over the PA.
Credit terms will be offered only in the form of credit card service, such as
Visa, MasterCard and Discover. Many people who eat out prefer to pay
with credit

IX.EQUIPMENT LIST FOR COFFEE CIRCUS

1. Automatic Drip Coffee Makers

2. A High-Quality Espresso Machine

3. An Industrial Coffee Grinder

4. Refrigeration System

5. Containers, Pumps and Assorted Miscellaneous

6. Ovens, Toasters, and Devices Used for Cooking

7. Security System

8. Freezers and Cold Product Storage

9. A Few Industrial Blenders

10. POS System and Related Hardware