Our Lady of Fatima University

College of Hospitality and Institutional Management

BUSINESS PLAN
STRATEGIC MANAGEMENT AND TOTAL QUALITY MANAGEMENT

SUBMITTED TO:
Mr. Joseph Dimaano

SUBMITTED BY:
Gerlie Arzadon
Andrea Danoso
Cathymay Ganibo
Alyssa Peralta
Jennylyne Tribiana

DECEMBER, 2023
 INTRODUCTION
1.1 DESCRIPTION OF BUSINESS

The Cafe La Femme will offer a variety of choices to the customers, it is located at
Valenzuela City. The choices of coffee will range from espresso, latte, and frappes as
well may serve hot and iced coffee etc. It made by our professionally trained baristas.
Juice, soda, non-alcoholic beverages and foods such as light snacks, sandwiches and
pastries also will be available. The interior design of the cafe will focus on providing a
comfortable environment for the customer where they will want to linger and return many
times.

1.2 FINANCING

Café La Femme is a partnership business, wherein it consists of five owners. The

owners will equally invest their money at ₱241,304.8 per head with a total of ₱1,206,524
for the start-up fund. To cover the cost of materials, equipment, furniture, rental,
overheads and advertising. Raising money through debt is not being used at this stage
but is being considered for future expansion.

1.2.1 Funding Details

ITEM AMOUNT TOTAL

Fixed Assets
Leasehold Improvements ₱150,000
Equipment ₱17,924
Furniture & Fixture ₱200,000
₱367,924
Operating Capital
Salaries & Wages ₱158,600
Lease Rent ₱25,000
Insurance ₱100,000
Beginning Inventory ₱265,000
Legal and Accounting Fees ₱15,000
Supplies ₱25,000
Advertising & Promotions ₱50,000
Licenses ₱10,000
Working Capital (on hand) ₱190,000
₱838,600
Total Funds Required ₱1,206,524
Part 2: EXECUTIVE SUMMARY
Cafe La Femme is a unique Filipino-themed cafe situated in the vibrant city of
Valenzuela, offering an immersive experience inspired by the rich and diverse culture of
the Philippines. Our commitment to providing an authentic taste of Filipino hospitality sets
us apart in the local market. We pride ourselves on an extensive menu featuring a diverse
range of traditional Filipino beverages and specialty teas infused with local flavors.
Complementing our drinks are carefully curated handcrafted pastries and bread
emphasizing authenticity and taste.

Strategically located in Valenzuela City, our cafe benefits from a dynamic

atmosphere that fosters a sense of community and cultural appreciation. The thoughtfully
designed interior draws inspiration from Filipino art, creating an inviting ambiance for
customers to relax, socialize, and savor the flavors of our offerings. Cafe La Femme goes
beyond being a culinary destination; it serves as a hub for community engagement,
actively supporting local artisans and farmers and hosting regular cultural events and art
exhibitions.

Our business goals revolve around establishing Cafe La Femme as a premier

destination for those seeking an authentic Filipino cafe experience. We aim to build a
loyal customer base, expand our menu offerings, and explore opportunities for future
locations in key areas. We envision becoming a nationally recognized brand, known for
our commitment to quality, community engagement, and the promotion of Filipino
heritage. Our mission is to provide a welcoming space where customers can immerse
themselves in the flavors and warmth of Filipino culture. We are dedicated to offering a
diverse menu of traditional Filipino beverages, bread, and pastries, meticulously prepared
to showcase the authenticity and richness of our culinary heritage. Cafe La Femme is
poised to become Valenzuela City's go-to destination, embodying a genuine taste of
Filipino culture through delightful beverages and traditional pastries. Our commitment to
quality, community engagement, and cultural celebration sets us apart, making Cafe La
Femme a unique and beloved establishment in the local cafe scene.
PART 3: INDUSTRY ANALYSIS
3.1 OUTLOOK AND TRENDS
The shop's location is convenient to surrounding schools and industrial
establishments, as well as the Valenzuela city hall and park, where the majority of the
target market will meet. We anticipate that new offices and other businesses will open in
the region and that the employees of these new organizations will be part of our target
market. Being a sustainability, Cafe La Femme will increase consumer demand for eco-
friendly practices. Consider using biodegradable packaging, sourcing local produce, and
implementing energy-efficient operations. Cafe La Femme will also create a unique
experience through live music, or some comfortable entertainment for aiming to attract
and retain customers seeking more than just a dining experience.

Embracing and celebrating Filipino culture through cuisine, décor, and ambiance is
not only a unique selling point but also aligns with the growing interest in local and
authentic experiences. The emphasis on locally sourced ingredients and traditional
Filipino recipes can attract patrons seeking a genuine taste of the country's culinary
heritage. Additionally, the rise of cultural appreciation and the desire for immersive dining
experiences can position Café La Femme as a cultural hub within the community.
Leveraging technology for online engagement, delivery services, and social media
marketing can enhance brand visibility and accessibility. Engaging with local artists and
showcasing Filipino talent can further enrich the café's identity and contribute to a vibrant
community space. As Valenzuela City continues to evolve, Café La Femme's commitment
to authenticity, community engagement, and a fusion of traditional and modern elements
positions it to thrive in the dynamic culinary landscape.
3.2 ENVIRONMENTAL ANALYSIS: SWOT ANALYSIS

Strengths:

• Central, accessible location attracting foot traffic.

• Signature coffee blends attract a loyal customer base.
• Trained baristas and friendly service, enhancing customer experience.
• Cozy and welcoming atmosphere with comfortable seating.
• Active social media presence, engaging with customers and promoting events.
• Offers a unique atmosphere, theme, and specialty products,
• Providing high-quality coffee, snacks, and other offerings can contribute to
customer satisfaction and positive word-of-mouth.

Weaknesses:

• Costly rental space or operational expenses impacting profitability.

• Menu might be limited or not diversified enough to cater to various dietary
preferences.
• As a new establishment, building brand awareness may take time
• Fluctuating sales during certain seasons or times of the year.
• High turnover affecting service quality and consistency.

Opportunities:

• Opening new locations or franchise opportunities.

• Partnerships with local businesses or events to expand customer base.
• Introducing new dishes or catering to health-conscious trends.
• Implementing or improving delivery services to reach a broader audience.
• Offering catering services or hosting events to increase revenue streams.
• Leveraging technology for online orders, payments, and loyalty programs
Threats:

• Presence of existing or new competitors in the area. High competition with big
companies like Starbucks, Coffee Project, Dunkin Donut, etc. may threaten new
entrants.
• Fluctuations in the economy affecting consumer spending.
• Rapid changes in customer preferences or industry trends.
• Compliance issues with health and safety regulations impacting operations.
• Issues with suppliers affecting product availability and quality.
• Political factors such as changes in leadership or government policies, can
influence the business environment. These changes may impact consumer
confidence, taxes, or business incentives, requiring Café La Femme to stay
informed and agile in adjusting strategies accordingly.
3.3 ANALYSIS OF COMPETITORS

Name of Seattle's best Big brew Daily Cup Cafe

Competitors:

Price Range 100 PHP to 300 PHP 29 PHP TO 39 PHP 100 PHP TO 200
PHP

Marketing • Understanding • Target • Offering

Local Taste Audience discounts to
Preferences • Affordable students
• Mobile Apps and price
Loyalty Programs
• Localized
Packaging and
Messaging

Location G/F, Cecilio J Santos St, Cecilio J. Santos 1445 St. Louis
MacArthur Hwy, St, Valenzuela, Compound 5
Valenzuela Town Center, Metro Manila Governor Santiago
Karuhatan, Valenzuela, Street, Valenzuela,
Metro Manila 1440 Metro Manila

Strength Quality Coffee: Seattle's • The coffee Offer high-quality

Best is known for its high- itself is just coffee, tea, as well
quality coffee beans and plain good as fresh and tasty
carefully crafted blends, and this is food options.
appealing to coffee the main
enthusiasts who value selling point
taste and quality. of a good
coffee shop
• more
accessible to
more
customers

weakness Some consumers • A lot of the A cafe's location

perceive Seattle's Best as big brew can significantly
relatively more expensive branches impact foot traffic
compared to other coffee. don't have and sales. If Cafe
Capitino is situated
 any dine-in in an area with low
area. visibility, limited
• Big brew parking, or high
only caters competition, it
drinks and could face
they don’t challenges in
have any attracting
other options customers.
in their menu
like pastries
or desserts.

Differentiators • Heritage and Cheaper for buyers A café with a

History distinct and inviting
• Adaptation within ambiance, whether
the Market it's cozy, modern,
rustic, or themed.

Geography "Seattle's Best Coffee" is BigBrew Main

a coffeehouse chain that opened its first
originated in Seattle, location in Maypajo,
Washington, known for its Caloocan
specialty coffees. While it City. They can be
was founded in Seattle, found next to
the chain expanded Puregold Maypajo
nationally and even and Mercury Drug
internationally, so you can Maypajo. has just
find Seattle's Best Coffee joined the market.
shops in various locations
around the United States
and in some other
countries.

Customer ★★★★☆ ★ ★ ★ ★★ ★ ★ ★ ★★
Reviews
3.4 MARKET SEGMENTATION
Demographic Segmentation:

• Young professionals: Those working or studying who seek a place for meetings or
to work remotely.

• Students: Often looking for a relaxed atmosphere to study or socialize.

• Older adults: Seeking a comfortable space for social gatherings or to enjoy leisure
time.

Psychographic Segmentation:

• Health-conscious consumers: Interested in organic or healthier coffee options.

• Trend-conscious individuals: Looking for specialty or trendy coffee beverages and

ambiance.

• Environmentally conscious: Preferring eco-friendly practices in coffee sourcing

and sustainability efforts.

Behavioral Segmentation:

• Occasional customers: Those who visit for specific occasions or events.

• Regulars: Loyal customers who frequent the coffee shop daily or weekly.

• Grab-and-go customers: People looking for quick service and convenience.

Geographic Segmentation:

• Urban vs. suburban customers: Preferences might differ based on the area's
lifestyle and demographics.

• Different regions or cities might have varying tastes in coffee or café culture.
3.5 FUNCTIONAL PLANS
3.5.1 Key Performance Indicator:
The Cafe La Femme promotional plan using KPI

Focus of Objectives Person Time frame KPI Budget Plan

concerns responsible

The most - To help Cafe 1 post per The Cafe Boost post only in 3
effective recognize Manager, day, either the La days in a week:
way to the Cafe La who gives a recommended Femme Facebook: $1 USD is
promote Femme to cafe's products to needs to equivalent to 55.55
and guide opinion as offer and the boost a pesos, if computed in a
posting customers well customer post to month the cost will be
about the and responding visiting the attract 666. 6 pesos
Cafe La discover to comments Cafe La more Instagram: $0.50 USD
Femme in what cafe's and creating Femme or people is equivalent to 27.78
any social to offer. content to feedbacks who are pesos, if computed in a
media - To provide any social likely month the cost will be
platforms instant media become 250.02
like information platforms. interested TikTok: $3 USD is
Facebook, about any in the equivalent to 166.66
Instagram, trends or cafe, pesos (posting within
and changes even two weeks) if computed
TikTok. about the though in a month the cost will
Cafe La he/she be 333.32
Femme follow or Computation:
- To not but 666.6+250.02+333.32=
increase still can 1,249. 94 in a month
engagement discover
and reach, the page
and of the
engaging cafe.
with the
online
community.
3.6 RISK ANALYSIS
Starting a Cafe La Femme can be very fulfilling, especially when it has an aromatic
atmosphere and allows people to talk about various topics while sipping their favorite
coffee. However, starting a cafe business is always risky, even though it can be very
intriguing. It can be prevented by being aware of the risk and establishing the cause in a
timely manner. It can also assist in developing more effective plans of action to deal with
upcoming difficulties.

Market Risk Solution

Competitive Market The business is kind of experiencing

With a lot of different café in the city, there competition, but we make sure that
is a competition when other cafés offer a ongoing competition must be able to find
product that can make interesting to the solutions before it make huge impact to the
customer's to purchased. customer. Our staff is adding different
varieties of coffee that can increase the
level of satisfaction of every customer,
which can surely add quality and growth to
the business.
Customer Changing Taste
We can't make sure of the consistency of Our business trying to adapt every trend in
the customer because they have different the café industry; adapt every customer's
taste of what they actually like in a café but desires and cravings so that the business
we did our best to make the best offerings would be able to last long.
to them.

Rising of Prices
Since the inflation is happening, the drinks The customer may react about the rising
and foods that we get from the supplier prices but we make sure that we give the
are quite overpriced so that the prices of best of what's to offer, it is worth paying for
and we offered sometime to them
the cafe menu will range to 100-300 discounted product when they purchased
pesos. in the café.

Operational Risk Solution

Shortage of Supplies/Materials By establishing relationships with new

When there is a disruption in the flow of suppliers, it will help the cafe not to have
goods and services from suppliers or may shortage of supplies, if our trusted supplier
be delay to delivered on time. is run out of supplies, we still have another
supplier to source of quality ingredients and
materials.
Workplace Injury
The staff may be injured when it comes of We create a safety plan to reduce this kind
burns from hot coffee, slip on wet floor, or of injury in café, from the beginning of the
even repetitive motion at work etc. When staff being hired they know the possible
there's a lot of customer sometimes staff injury they get as well to prevent this in
felt kind of rush to do things so that the many case. Also they can ask if they felt
hazard might be ignored. tired or need a rest.

Failure Equipment
Due to the excessive use of equipments We're making a budget plan for the
throughout the day, it often breaks necessary things to purchase like for coffee
unexpectedly. equipments is quite expensive so we're
budgeting what we earned at the cafe
especially the right equipment is very
crucial.
Part 4: DESCRIPTION OF VENTURE

4.1 Products

Beverages:

4.1.1 Product Composition and Description

• Caffe Mocha- A caffè latte with chocolate and whipped cream, made by pouring
about 2 cl of chocolate sauce into the glass, followed by an espresso shot and
steamed milk.

• Espresso con Panna-A shot of espresso topped with whipped cream.

• Iced Mocha- Cold Caffè mocha. Prepared like iced latte, but garnished and
flavoured like caffè mocha

• Irish Coffee- Classic coffee cocktail where Irish whiskey is mixed with filter coffee
and topped with thin layer of gently whipped cream.

• Cafe Au Lait- This drink is simply half brewed coffee and half warmed or steamed
milk

• Café Bombon- is a type of coffee drink that includes espresso mixed with
sweetened condensed milk in a one-to-one proportion

• Sprudge Frappe - A frappe is an iced coffee that has been shaken, blended or
beaten to produce a tasty, foamy, and refreshing drink. It is served cold, often with
whipped cream and toppings.

• Red Eye- a very, very strong drink. Unlike most other coffees that blend the source
of caffeine with water, milk, or other non-caffeinated mix-ins, the red eye combines
coffee with ... more coffee.
 • Turkish coffee- is made by boiling extra-fine coffee grounds in water along with
sugar and cardamom. The result is a strong, bitter brew that is typically served
unfiltered

• Nitro cold brew -is a cold brew that has had pressurized nitrogen infused into it,
giving it a frothier consistency.

• Dalgona coffee - The drink is made by whipping together sugar, instant coffee
crystals, and water and serving it over ice and milk.

• Eiskaffee- is basically an ice cream float. It’s strong, cold coffee poured over
vanilla ice cream and topped with whipped cream

• Mustang coffee- is a drink that is 2 parts coffee and 1 part a mixture of honey or
sugar, rice wine, and butter.

• Caffe marocchino -made by dusting a glass with cocoa powder, adding a shot of
espresso topped with milk froth, and coating it with another dusting of cocoa
powder.

• Cafe Bombon- It’s made with equal parts espresso and condensed milk, served
in a clear glass to show off the layering of the coffee on top of the milk.

Bread & Pastries:

• Pan de Coco – This Panaderia Faroutire very soft round bread filled with sweet
coconut filling made with sugar, butter and grated coconut.

• Cheese Bread – This Panaderia Favourite looks like an intensified colour

pandesal, this bread is denser, sweeter, milkier, moist and most importantly
studded with sweet cheese granules instead of breadcrumbs hence the name.

• Asado Roll – another soft bread similar to pan de coco, slightly larger but instead
of sweetened coconut strips this one is filled with savoury sweet pork
• Buko Pie – type of pie made out of semi flaky pastry filled with custard made out
of young coconut meat and condensed milk.

• Crema de fruta- was originally a soft cake layered with cream, custard, and
candied fruit, and topped off with gelatin.

• Puto Seko- Light, crunchy and a bit tough on the outside, puto seko is a Filipino
butter pastry that Pinoys love to dip into coffee or hot chocolate.

• Sans Rival- a layered cake with caramelized sugar and a variety of nuts.

• Napoleones- This exquisite dessert is prepared with custard cream in layers and
the top layer is sprinkled with a coating of sugar.

• Silvañas- are large, oval-shaped, cookie-sized desserts, with a thin meringue on

either side of a buttercream filling and dusted with crumbed cookies.
 4.1.2 Equipment

Type of equipment/Materials Quantity Unit Cost Total Cost

Regular Coffee Grinder 1 ₱1,449.00 ₱1,449.00

Coffees Maker Machine 1 ₱4,599.00 ₱4,599.00

Hot Water Dispenser 1 ₱7,093.00 ₱7,093.00

Espresso Tamper 3 ₱379.00 ₱1,137.00

Frothing Pitcher 3 ₱199.00 ₱597.00

Measuring Cups and Spoon 20 ₱60.00 ₱1,200.00

Paper hot cups and lids (8onz /12 oz/16oz) 75 ₱8.00 ₱600.00

Straws and stirrers 50 ₱4.00 ₱200.00

Take-out cup carriers 50 ₱9.00 ₱450.00

Coffee Equipment Cleaners and Coffee Pot 1 ₱599.00 ₱599.00

Cleaners

Total: ₱17,924.00
 4.1.2 Fit Outs
FLOOR PLAN
Sample layout with ample seating for guests, back bar and workplace for employees, and
with 50-100 seating capacity.

Reference: [Link]

INTERIOR DESIGN

Reference: [Link]
Iloilo_City_Iloilo_Province_Panay_Island_Visayas.html#photos;aggregationId=&albumid=101&filter=7&ff=300380014
EXTERIOR DESIGN

Reference: [Link]
 PRODUCTION AND OPERATION PLAN

5.1.1 Flow of Operation

1. Planning Phase

• Define the business concept and goals.

• Conduct market research and analysis of the coffee industry.
• Identify the target market and create market segmentation.
• Perform a SWOT analysis to understand strengths, weaknesses, opportunities,
and threats.
• Assess the competition and analyze their pricing, marketing, and customer
reviews.
• Develop product offerings, including a variety of specialty coffee drinks, breads,
and pastries.
• Determine the financing required and establish a partnership with six owners.
• Set the start-up fund and budget for materials, rental, overheads, advertising,
equipment, and fixtures.
• Choose a location in Valenzuela City.
• Design the café with a traditional Filipino theme to promote the Filipino culture.
• Source sustainably produced coffee beans from local suppliers in the Philippines.
• Focus on providing fast, efficient, friendly, and consistent customer service.

2. Pre-Opening Phase

• Secure all necessary permits and licenses to operate the coffee shop.
• Finalize the lease agreement for the chosen location.
• Hire and train a committed workforce to ensure quality service.
• Establish partnerships with local suppliers for bread, pastries, and other
ingredients.
• Order equipment, furniture, and fixtures required for the café.
• Develop a marketing plan to create awareness and attract customers.
• Create social media accounts and build an online presence.
• Design and print menus, signage, and promotional materials.
 • Set up the café's interior and exterior in a traditional Filipino-themed aesthetic.

3. Opening Phase

• Conduct a soft opening for friends, family, and guests to test operations and gather
feedback.
• Implement any necessary adjustments based on feedback received.
• Café is officially opened to the public on December 26, 2023.
• Advertise the grand opening through social media, local promotions, and word-of-
mouth.
• Provide a warm and welcoming atmosphere for customers.
• Offer a promo menu with a selection of specialty coffee drinks, breads, and
pastries.
• Focus on delivering quality products at a reasonable cost.
• Emphasize eco-friendly packaging and promote strawless cups and paper straws.
• Ensure efficient and friendly customer service to create a positive experience.

4. Daily Operations

• Open café la femme at the designated operating hours. Regular days, Monday-
Friday (7:00 am - 10:00 pm) and Weekends, (Saturday-Sunday 8:00 am - 11:00
pm). During Holidays the store will extend the operating hours from 6:00 am to
11:00 pm, Monday to Friday, and 7:00 am to 11:00 pm, Saturday-Sunday.
• Prepare and serve specialty coffee drinks, breads, and pastries.
• Customize drinks according to customers' preferences.
• Maintain a clean and organized workspace.
• Monitor inventory and restock supplies as needed.
• Ensure all equipment is in working order and perform routine maintenance.
• Continuously train and motivate the staff to provide excellent service.
• Regularly interact with customers to build relationships and gather feedback.
• Maintain an active social media presence and engage with customers online.
• Implement marketing strategies to attract new customers and retain existing ones.
• Monitor and analyze sales, expenses, and customer satisfaction.
 • Stay updated on industry trends and adapt offerings as necessary.

5. Expansion Phase (Future Consideration)

• Evaluate the café's performance and profitability.

• Consider raising funds through debt for future expansion.
• Explore opportunities to open additional branches in other locations.
• Conduct market research for potential new markets.
• Develop a growth strategy and create a business plan for expansion.
• Secure additional permits, licenses, and leases for new locations.
• Replicate successful operations and maintain consistency across branches.
• Continuously innovate and improve products and customer experience.