Saint Joseph Institute of Technology

Accountancy, Business and Management

Butuan City

A Paper Presented to the Faculty of

Senior High School - Main
Saint Joseph Institute of Technology
Butuan City

In Partial Fulfillment of the Requirements

Of Entrepreneurship Subject

By:

Casindac, KC
Funesto, Elisha Kaye
Herrera, Jhon Nestor
Martinez, Charles Bryan P.
Marco,Ylvylyn
Patuasic, RJ Kyle
Torion,Jebjeb
Ygot, Christian C.

September, 2021
Executive Summary

Cafe de Luna, located next to Mcdo downtown, will provide

direct-trade coffee, tea, desserts, and pastries. The shop
will serve specialized coffee drinks such as cappuccinos, lattes,
and macchiatos, as well as teas and milktea. Because it is located
within the city, it is easily accessible to all clients. It will
provide beverages and light meals to satisfy a hungry stomach
while also allowing for conversation with a friend or colleague.
The café also provides free Wi-Fi, books to read, and a pleasant
ambiance to complement its product, allowing clients to feel at
ease and calm, making it the ideal spot to unwind.

It aspires to be one of the Philippines' most popular coffee

shops, consistently providing superior service by fostering
positive customer relationships while maintaining product quality.

Cafe de Luna provides a variety of services and products.

When choosing products for the café, we will look for products
that provide consistent quality, reasonable prices, and client
pleasure. Our cafe's product, as well as our service, is crucial.
To provide exceptional service to our customers, we will first
ensure that our servers are well-trained, well-mannered, and
presentable, and, most importantly, that they serve with a smile.
When it comes to online service, we will provide complete service
delivery to our consumers by delivering things to their doorsteps
at a fair delivery price. Caramel Macchiato, Americano, Latte,
Oreo cake, Milk and Chocolate Ice cream, Cherry Roll Cake,
Rainbow cake, Affogato, Cappuccino, Double Espresso, Coffee Beans,
Tea and Milk Tea, Bingsu (shaved ice dessert with sweet toppings)
will be available in the cafe.

The food and beverages will be prepared in a reasonable amount

of time, because management also focuses on providing fast and
quality service to its customers, in such a way that employees
attend to customers' concerns, long lines or orders are minimized
, and the premises are kept as clean as possible. Customer loyalty
may be improved, word-of-mouth may be fostered, and consumers may
feel more cherished, all of which highlights good customer
relationships.
 We also want to enhance our coffee cup to be a little bigger
than it was when we first opened our doors. The company anticipates
sales growth in the next years without affecting the pricing of the
products. It caters to all of its consumers by supplying each one
with the smallest detail, with products and services tailored to
their needs.
.
 Acknowledgement

Finding and staying on the path through the world of

academe is quite a challenge. For their help in guiding the

proponent through this journey, we are indebted to the

Accountancy, Business and Management Strand of SJIT Senior

High School- Main, especially to their instructor, Fe Maylen

Sanico Escobido, for her unconditional support and guidance

who kept the doors in her office open for consultations from

time to time.

To their parents though sometimes they’ve encounter

problems, still the consent, encouragement and general

support never fails.

To their friends and respondents whose patience and

interests is accompanied with smiles during those stressful

situations.

And above all, the realization of this project is nothing

without the accordance of divine will from our Almighty

Father.

The proponents are always thankful to our God Father in

heaven who gives all the passion and good gifts, and the best

way to show their appreciation is to pursue whole-heartedly

their business by giving satisfaction and jobs to others. And

if they do, it will mark as the wonderful plans that our

Almighty Father involves.

 Table of Contents

Cover Page i
Executive Summary ii
Acknowledgement iv
Table of Contents v
Chapter 1: Business Overview
Introduction 1
Business Description 3
Mission 5
Vision 5
7S Model 5
Chapter II: Market Analysis
Target market 8
Demand 9
Competitors
Chapter III: Sales and Marketing Plan
The Products
Cost of Materials
Marketing Strategy
Chapter IV: Competitive Analysis
SWOT Analysis
Social Desirability
Chapter V: Management Plan
Human Resource
Organizational Structure
Chapter VI: Operating Plan
Ordering Process – Walk In
Ordering Process – Online
Chapter VII: Financial Plan
Sales Forecast
Statement of Financial Position
Statement of Financial Performance
Statement of Changes in Equity
Statement of Cash Flows
Appendices
 Chapter I
Business Overview

Introduction

Coffee consumption is a way of life for many people. This is why we

intend to create a coffee shop in this small and charming town, where people
care about one another as much as they care about their coffee. We want to
sell freshly brewed coffee and beverages such as teas and milktea, as well
as pastries, desserts, cake series, ice cream, and our specialty products.
Cafe de Luna will serve coffee, foods, entertainment, and a friendly
atmosphere to both locals and visitors.

A spate of cafés and beverage-serving firms have risen to prominence

in today's business world, in addition to the more well-known culinary
industry. Several of these businesses initially just sold one type of
beverage, such as coffee, teas, and milk teas. However, as time has passed,
they have learned to adapt and seek out new ways to obtain a huge number
of customers in order to survive and grow in the commercial world. We
included foods and pastries in addition to the beverages they sell to appeal
to customers who would rather eat sweets, desserts, or foods than drink
Alone.

In the Philippines, a large number of cafes and coffee shops have

steadily grown in popularity. Milktea has become popular, particularly
among youths, in the same way that most Filipinos enjoy coffee and spend
time in coffee shops. As a result, a number of café enterprises have emerged
in the marketplace. Cafes, like coffee shops, are open and providing
services for people such as students who like to complete their tasks outside
of their homes, or professionals who need to meet people for negotiations
or simply want to hang out with friends.

Entities from many industries in the Philippines, such as cafés and

coffee shops, are adapting to changing demand and increasing profitability,
with many growing and broadening their market by going overseas. First,
they expand their market by adding new items or by opening a new branch
in a different market or area. Businesses can compete with other businesses
in the same industry by reaching and catering to a broader market with such
a development strategy.

Expansion, in a broad sense, is a natural process of a successful business.

However, in the case of café enterprises, this is not the case.
 This has also been true in Butuan City as the popularity of beverage
industries grew, particularly of the product coffee and other beverage.
A number of places have become well-known for catering to the needs,
desires, and cravings of those who have developed a taste for the stated
beverage. As a result, being in the said industry catering to the said
market necessitates a thorough examination, comprehension, and analysis
of market behavior in order to adapt and cope with the business's goal of
profit maximization through development and hence success.

As a result, the proponents devised a business plan to:

(1) assess the product's marketability in the proposed area; and
(2) assess the product's profitability in the proposed location by
doing a cost-benefit analysis using various capital budgeting approaches.
(3) determine whether or not the proposed enterprise is viable.
Business Description

 Business Name

The business name is Cafe de Luna.

This will establish to sell

refreshments and light meals enough to

aid a hungry stomach and to partner a

discourse with a friend or colleague.

Cafe de Luna’s target market are coffee lovers

Students, professionals, specialty coffee drinkers

And Whole bean buyers where it aims to serve
the best and cater their target markets’

needs where the facilities could be at

its best condition as possible.

 Business Location

The location of the business

will be at Downtown,Beside Mcdo,

J.C Aquino Avenue, Butuan City.
This area also attract customers from schools
and working places around the area making
 it susceptible for a wider range and
target market for coffee, includes drip coffee
drinkers, coffee shop lovers, specialty coffee drinkers,
and whole bean buyers. Not just students but
also from different areas and field
within the said vicinity.

 Business Logo

 Product Description

The Café de Luna will offer

the different varieties of beverage, food and

dessert products the business’

currently offering to the market

today. For coffee series there are

eleven (5) flavors offered namely,

Caramel Macchiato, Americano, Latte,

Affogato, Cappuccino, Double Espresso. Milk Tea series

Such as; Chocolate, Classic, Thai, Taro, Matcha.
Ice Cream Series; Milk & Chocolate. Specialty; Bingsu
(shaved ice dessert with sweet toppings) .

For cake series as well, there are three

variants such as, Oreo cake,

Cherry Roll Cake, Rainbow Cake.

 Mission

Café de Luna’s mission is to spread positivity by

putting joy in every cup, one person at a time, one community
at a time.

Vision
By 2030, To establish Cafe de Luna as the preferred
destination for the finest coffee specialty in Philippines,
while adhering to our unwavering core values and principles.

7S Model

 Strategy

 Traveled to different coffee shops

inside and outside the country.

 Became knowledgeable of the exact

taste they want to achieve. Ensuring
not to compromise the quality of
their beverage.

 They have loyalty cards, they offer

one free of any preferred
mixture after the 10th coffee or any
Beverage purchase

 They will offer holiday promos.

 Structure

 The owner will give the employees the

freedom to choose where they wanted to

be assigned.
 Systems

 They have set standards on how to do

their task and all the work needed to
be done.

 Guidelines and procedures will be

strictly implemented to meet the set
objectives.
 Staffs

 Employees will be hired through the

recommendations of employees and

interviews with the owner.

 Trainings are done and are accessible to

all employees so everyone can learn and

knowledgeable to every task.

 Style

 Their supervisor will be participative and

hands-on, making his/her leadership

effective.

 Skills

 Known for quality service as well as

Customer services.

 Shared Values

Values Practice

Manifesting

Values

Integrity Perform

 Knowing and doing task with

What is right. Courage,honesty

Well-disciplined,

And resiliency

Hospitable Serves the

 Committed to guest with

 serve its grace and

customers courtesy

with as honored

enthusiasm. guests.

Teamwork Supporting

 Coordinate each other

with each with the

other to work belief

efficiently that they

and work best

effectively. when they

work

together.
 Application given:

N =26,827

E = 5%

n= 26, 827

1+[(26,827)(.05) 2]

= 26,827

68.0675

n= 379 respondents

Considering the inherent limitations, unforeseen

circumstances and the conflicting schedules, the

proponents have decided to distribute the survey

questionnaires in a convenient way by proportionating

the three hundred seventy nine (379) respondents into

70% FSUU students and 30% outside respondents

respectively. This discretion resulted to

distribution of two hundred seventy-nine (265) survey

questionnaires to FSUU respondents and one hundred

nineteen (119) survey questionnaires to outside

respondents. 379x70%= 265 respondents - FSUU 398x30%=

119 respondents – Barangay

Demand

The demand of Café de Luna is

reached after a thorough analysis of the data

extracted from the survey conducted. In order to

effectively assess the entity and its products' demand

in the proposed area, the consultants have purposely

placed the most important question pertaining to the

market's willingness to avail the entity's products

given the possibility of opening a new Café

in Downtown beside Mcdo, in the last part of the

questionnaire. This is to ensure a reasonable and

independent judgment from the respondents, adding more

strength and reliability to the data gathered.

Figure 1: Age Demography

 The respondents with an age ranging from 14

to 20 years old cover 69% of the three hundred

seventy nine (379) total number of the sample

population which is approximately to two

hundred sixty one (261) respondents. The

remaining 31% which is equivalent to one

hundred seventeen (117) represent the 13 &

below, 21 to 30, 31 to 40, and 41 year old &

above respondents of this study. This likely

proves that the marketability of the entity’s

product depends mostly on these ranges,

classified as teenagers and mostly students of

Senior High and College.

It shows the gender of the total sample

population. Majority of the respondents are

female representing the 68% of the total sample

population and 32% representing

the male population.

 Figure 3: Monthly Income or Allowances

The figure shows that 56% of the respondents

population have 1000 pesos and below and the 24% of

the respondents population have 2000-5000 pesos

monthly income or allowance.

0.08

0.18
Coffee
Milktea
Others

0.74

Figure 4: Preferred
Figure 4 shows that 74% or two hundred eighty

(280) respondents prefer Iced Coffee while 18% or sixty

eight (68) prefer Milk Tea and the remaining 8% prefer

others beverages. With this difference,

it can be determined that there is a huge demand of

Iced Coffee.
The Competitors

0.13

0.12
TAHME cafe
Bo's coffee
0.47
2D cafe
Maharba cafe
Infinitea
0.12

0.16

Figure 5: Direct Competitors

Figure 5 shows the result of the survey on which

direct competitor the respondents usually buy Coffee.

Out of the three hundred ninety-eight (379)

respondents, 47% and one hundred seventy eight (178)

answered that they usually buy Coffee from TAHME

cafe, 16% and sixty (60) respondents buy from

Bo’s Coffee, 12% or fourty- five (45) respondents buy

from 2D Cafe , 12% or fourty-five (48) respondents

buy from Maharba Cafe comprise and 13% of the total respondents

with twenty-eight (28) from Infinitea and twenty- four (24) respondents,
respectively. This shows that among the direct
competitors of Cafe de Luna, TAHME cafe has the highest
market share.