LEGAL FORM OF BUSINESS

Tea o`clock will be a sole proprietorship form of business. This form of business is the simplest type of
business structure that will allow Tea o`clock to operate the business with ease, as it only requires the
business with a low startup cost to begin its operation. Sole proprietorship is also the least complex form of
business, as it doesn’t require the owner to do lots of paper works from its registration process down to its
tax reporting. Therefore, Gerry will have an ample amount of time that will allow him to focus on developing
or improving its strategic plan for Tea o`clock. And unlike with other forms of business, Sole proprietor can
operate with freedom and it is flexible for a small type of business, like Tea o`clock. You can make any
decisions and actions for your business without asking permission from anybody. And this is all the reason
that Tea o`clock is a Sole proprietorship form of business.

EFFECTIVE DATE OF BUSINESS

With the business plan successfully developed in November 23, 2021 by Gerry Barata Jr. Tea o`clock will then
start its refurbishment of their rented space by the end of the year 2021. And will begin their operations by
April 1,2022

COMPANY VISION & MISSION

The vision of Tea o`clock is to become the most valued and patronized milktea shop in Mandaluyong. And to
build a strong brand identity by creating an image or an idea that Tea o`clock is the safe heaven for those
people who are looking for a peaceful area that has classic filipino vibes for them relax or to be productive.

The mission of Tea o`clock is to provide the finest flavors of milktea inspired from the different variety of
milktea around the globe. And to introduce a filipino variety of milktea inspired from our local desserts at a
reasonable price. We also aim to deliver a consistent classic filipino vibe or ambiance in the place to show the
uniqueness of Tea o`clock from its competitors.

COMPANY GOVERNANCE

Tea o`clock will be governed by only one person which is the owner, Gerry. This means that he will be the
only one who has a full control of the business. But that doesn’t mean that he will not be open for his
employee’s opinion whenever he is planning for something. Tea o’clock employees has a freedom to suggest
and express their opinion about something that is related to the business. That is why Tea o`clock will held
monthly meetings for its employee`s to discuss anything related to the business and to build a strong
relationship with its employee`s.
COMPANY LOCATION

Tea o`clock is a small milk tea business that will be located in the street of Sierra Madre near Starmall
Mandaluyong. The street of Sierra Madre is the perfect place for Tea o`clock to launch its business since this
is a busy street, and lots of people go through this street whenever they are going to their work or they`re
going for a shopping. Sierra madre is only 141 meters away from Starmall Shaw, 188 meters away from
Shangri La plaza and 440 meters away from SM Megamall. These three malls are the shopping center of
Mandaluyong, so being located nearby to this establishment makes Tea o`clock presence visible to the
audiences specially to those people who visits these malls. Additionaly, Tea o`clock is also few steps away to
the nearest MRT station, allowing Tea o`clock to expose and showcase the quality of product and service they
offer to the commuters.

IMMEDIATE DEVELOPMENT GOALS

To provide and introduce a premium quality of products, a classic filipino vibe experience or ambiance and to
have a strong presence on the internet/social media, Tea o`clock will need to meet the following immediate
goals:

 Refurbish the rented space to design a classic Filipino vibe environment.

OVERVIEW OF COMPANY`S FINANCIAL STATUS

The staring amount of investment required to launch Tea o`clock is 100,000 php. This total amount of
investment will be divided according to its immediate development goals. These includes renovating the
rented space, purchasing necessary supplies and equipment’s and developing website, pages and online
campaigns in order to have a strong online presence.

DESCRIPTION OF INDUTRY

Milk tea is a famous beverage that is traditionally originated from Taiwan, and is basically consisted of black
tea, milk, ice, and chewy tapioca pearls. Though this refreshing beverage recipes may vary from its
preparation from different regions and countries. In fact, there are lots of new flavors or variety arises from

different countries as they adopt to this trend. And in the past few years, we notice that tea is becoming
more widely embraced by Filipinos. We notice that there are lots of new tea shops that emerges, and lots of
café`s and restaurant started offering different variety of tea and milktea to their customers. This occurrence
resulted for the industry to rapidly grow, which only indicates that the level of competition on the tea
industry is very high and at the same time it is very profitable. Consumer’s lifestyles are changing, and they
are gradually shifting from over consuming unhealthy beverages to an healthy alternative one, like tea. Trend
is also one of the factors that made tea industry grow here in the Philippines. It is common to us Filipinos that
whenever there’s a trend, we hop in to the trend. And when tea and milktea became a trend, most of the
Filipino started buying milktea. They come up with an idea that this famous drink is an affordable luxury. In
fact, According to Business inquirer, in 2019, the Philippines ranked second among the countries with the
most number of bubble tea drinkers in Southeast Asia. A food delivery survey found out that Filipinos
consume an average of five cups of milk tea in a month. That’s significantly greater than Indonesia, Malaysia,
Singapore, and Vietnam’s average three cups in a month per drinker. This statistic only shows how obsessed
Filipinos on this famous drink.

SIZE
According on the report of Statistica.com, “revenue in the Tea segment amounts to US$87.3m in 2021. And
the market is still expected to grow annually by 7.00% (CAGR 2021-2025). And by 2025, 39% of spending and
4% of volume consumption in the Tea segment will be attributable to out-of-home consumption (e.g., in bars
and restaurants)” This is an opportunity for Tea o`clock to successfully penetrate the market as it will lead
them to more audiences.

GROWTH RATES

Modified tea products called Milktea continues to gain popularity across the country. This popular beverage
keeps at attracting new customers from time to time, especially those sophisticated teenagers. According to
statistica.com, the market is still expected to grow annually by 7.00% (CAGR 2021-2025). And by 2025, 39% of
spending and 4% of volume consumption in the Tea segment will be attributable to out-of-home
consumption (e.g., in bars and restaurants). This growth rate only indicates that the Milktea craze is far from
over.

NATURE OF COMPETITION

The growing popularity of Milktea in the Philippines urges lots of businesspeople to enter the industry.
Overtime new brands of Milktea emerges from different places, especially here in Metro Manila. This
indicates that the competition level is very high in the industry. In addition, Coffee and Soda that are usual
beverages consumed by Filipinos, also makes the competition in the beverage industry even more tough, as
they already have an established market. Filipinos are heavy drinkers of coffee. In fact, according to
Vancouver.org, in 2019 Filipino consume 100,000 metric tons of coffee a year and drink almost as much
coffee as the people of the United States, Brazil, Japan, and the European Union . While carbonated soft
drinks or SODA are still way out in front when it comes to consumption of non-alcoholic drinks. And since Tea
o`clock is new to the market it expects that these threats will give them a tough competition on the entering
the market.

HISTORY

The famous Asian beverage Bubble tea or also known as Milktea, originated in Taiwan in the early 1980`s.
Bubble tea or Milktea is a product of food innovation from a natural tea, by some businessmen in Taiwan.
The idea of innovating or improving the product started when the competition among Taiwanese stores that
offers tea arises. Some businessmen tried experimenting the classic tea by adding some flavors or other
ingredients that would complement with the tea. And later, they come up with the Bubble tea. This unique
beverage is basically consisted of tea, milk, and chewy tapioca pearls. Though this refreshing beverage have
different variations or flavors across different countries, as this Taiwanese drink became a global addiction.
Here in the Philippines Milktea was introduce by Peter and Juliet Chen in late December year 2008. They
launch Serenity in San Juan City; Metro Manila and it was considered as the first milktea store in the country.
Then two years after the launch of Serenity, the milktea craze finally reach the country. This occurrence leads
the market to grow rapidly as competition arises in the tea industry.
https://www.vancouverpcg.org/wp-content/uploads/2020/09/2-The-Philippine-Coffe-
Industry-Rev3.pdf
https://www.statista.com/outlook/cmo/hot-drinks/tea/philippines
https://business.inquirer.net/302191/milk-tea-madness-equilibrium-offers-tea-rrific-
discounts-for-july#ixzz75ynibry9