01 BME1-OM-Case-Analysis-about-CHN-Cafe
01 BME1-OM-Case-Analysis-about-CHN-Cafe
Submitted by:
DAN PAOLO J. BANASING
Submitted to:
OCT 2023
TABLE OF CONTENTS
V. DOCUMENTATION 27
CHAPTER I
OVERVIEW/BACKGROUND OF THE COMPANY
Owner
The franchisee of the store is Ms. Avegail Villalon F. Pham together with her
sister, Jamaica Frias. However, their two other siblings joined the ownership of the coffee
shop as the make it as a family business. In the other hand, the franchisor of CHN CAFÉ
Corporation is Mr. Patrick James Gabriel and Chinelle Gabriel.
The brand and corporation, CHN CAFÉ was started during 2021 (two (2) years in
the industry) specifically during the period of COVID-19 Pandemic by Mr. Patrick James
Gabriel, the CHN CAFÉ franchisor. Its first branch is in Orani, Bataan. After three (3)
months, two (2) other branches stood in the province, specifically in Dinalupihan and
Balanga. The Pasig Branch only started on 2023, month of April (approximately six (6)
months).
Target Market
As the café is located near schools, and offices in Pasig City, they attract various
types of customers and most of their customers are:
1. Students
2. Group of Friends
3. Couples
4. People/Individuals who prefer to do their homework or office works in a café.
5. Social Climbers/Social Media Influencers
6. Café Hunters/Triers or Coffee Enthusiasts/Analyst.
Operating Hours
CHN CAFÉ – Kapasigan, Pasig City is open from 11:00 AM to 10:00 PM during
weekdays (Monday to Friday) and 1:00PM to 10:00 PM during weekends (Saturday and
Sunday). They are also open during holidays.
The group provided sales reports of the CHN CAFÉ varying in 3 different reasons:
1) Per day during peak season and off season, 2) Per month during peak season and off-
season; and 3) Per month before and during the class starts, the group consider including
the third reasons as their topmost priority as target markets are students near their
location.
• Per Day (Peak Season) – PHP 12,870.00
• Per Day (Off-Season) – PHP 9,750.00
• Per Month (Peak Season) – PHP 386,100.00
/AUSHTMPasig [email protected] (2) 8 579-7297 7
ARELLANO UNIVERSITY
SCHOOL OF HOSPITALITY AND TOURISM MANAGEMENT
Andres Bonifacio Campus │ Pag-asa St., Caniogan, Pasig City
CHN CAFÉ placed in a strategic location where students, and other working
individuals can see their coffee shop and can try their different products. The group has
witnessed peak and off hours of the coffee shop as they stay there from afternoon to
evening. During their peak hours, there are around 34-42 customers dining in the café
and there are also around 11-17 customers that take out their orders. However, during
off hours, there are only 17-25 people customers dining in the café and there are also
around 5-7 customers that take out their orders.
CHAPTER II
HUMAN RESOURCES
Organization Structure
CHN CAFÉ follows a franchising system of organization structure. A franchise
system can be viewed as an organizational structure built on internal ownership
connections. The specifics of franchise agreements, whether for-profit or nonprofit, vary
widely, but the autonomy of ownership and the right to use the brand name in exchange
for a fee remain consistent. Below is the example of organizational structure of CHN
CAFÉ – Kapasigan, Pasig City.
Department/Areas/Manpower
CHN CAFÉ has corporate functions, wherein different activities to regulate, manage,
and maintain the orderliness of the business take place, such as financing, marketing
legalities, human resources, research and product development, corporate affairs, and
auditing and accounting. Franchisee and CHN CAFÉ – Kapasigan, Pasig City’s
Branch Manager, is headed by Avegail Villalon G. Pham, together with her sisters:
Raizen Luis Garcia, Jamaica Frias, and Edrem Frias. They are the ones who purchased
the rights to use and sell the franchisor’s brand, products, ideas, and other aspects of
their business. Their mother, Remedios Frias, acts as the coffee shop’s Assistant
Manager. As the siblings are not available every day to take responsibility for managing
the shop, she takes care of the shop’s daily management, tasks, accounts, and as a
mother to all of their staff. She assures operational excellence by executing managerial
activities like scheduling, inventory management, and employee performance evaluation.
Then, their five (5) Staffs are all-around employees that cook, act as cashiers at the
counter, waiters that serve and bust out customers’ utensils, dishwashers, baristas,
accounting, marketing (through their Facebook pages), and are responsible for logistics
and inventories of the coffee shop’s supplies.
As other managers and some of the staff are students, they work a shifting
schedule depending on their availability. Since the coffee shop is operating half of the
day, staff can go to work with flexibility; two (2) of their staff are full-time employees, so
there are people in the shop that can back up those part-timers. As well, some of the
managers (including Jamaica and Raizen) work on the café during their free time, and
the assistant manager and Remedios do some of the tasks like cooking foods and serving
them to the customers.
Their managers also assure that their employees will have government insurance
accounts and enough rest. With regards of the tipping, customers tips are centralized and
all of those are donated to the church rather than the personnel (an act of Community
Development and Charity tradition of the Frias-Garcia Family) according to Remedios.
CHN CAFÉ – Kapasigan, Pasig City is open for working students but also, they prefer
full-time workers as the coffee shops accommodates large number of customers daily.
Staffs are happy of how inclusive and accepting does CHN CAFÉ – Kapasigan,
Pasig City is, for teenagers, students, and there is no particular level of education does
the management requires for employees. As long as they are hardworking and flexible
for the operation hours. Their salary also sustain their daily needs, most especially those
working student staffs of CHN CAFÉ.
CHAPTER III
OPERATION MANAGEMENT ANALYSIS
A. Main Door/Entrance
B. Outdoor Dining Area
C. Waiting Area/Terrace of the
Neca Building
D. Round Tables with two (2)
chairs each (Seating Area)
E. Raised Wooden Floor with
Long Low Table
F. L-shaped Couch and a table
with two (2) chairs (Seating
Area)
G. Cashier, Counter and Barista
Area
H. Kitchen and Dishwashing
Area
I. Toilet
J. Storage Room (Restricted
Area)
K. High table/Bar table with
chairs
L. Board Games/Books and Entertainment Storage Cabinet
/AUSHTMPasig [email protected] (2) 8 579-7297 12
ARELLANO UNIVERSITY
SCHOOL OF HOSPITALITY AND TOURISM MANAGEMENT
Andres Bonifacio Campus │ Pag-asa St., Caniogan, Pasig City
CHN CAFÉ – Kapasigan, Pasig City offers a minimalist style of designs of its coffee
shop. Most of the shapes of its furnitures are quadrilateral (square and rectangular) and
circular/round (full or semi). Also, its interior and exterior colors follow a ‘Caramel Coated
Color Palette” which are 1) Blackish, 2) Wheat, 3) Dusty Rose, 4) Wind, and 5) Breathe.
CHN CAFÉ – Kapasigan, Pasig City displays the shop's delicious goodies to the
consumer effectively as the furnishings is simple/minimalist. The colors of the pastries
and the deep tones of the coffee are even more appealing in this endless sea of white-
toned colors. The counter's design (in L-shape) also has the same style of simplicity. Its
ceiling has pendant lights, recessed lights, and adjustable & directional ceiling Spotlights
which is good to make the presentations of all the materials or things inside the café more
appealing and inviting.
1. Floor Plan A, B, and C: Main Door 2. Floor Plan E & L: Raised Wooden
and Entrance, Outdoor Dining Floor with Long Low Table and a
Area, and Terrace of Neca Round/Circle Wall-mounted Seat.
Building.
This is the topmost favorite spot of the
If the indoor dining area is full of customers most like when the
customers, some prefer to stay customers go to the coffee shop for
outside and dine in. As CHN CAFÉ – relaxation, hanging out, or after their
Kapasigan, Pasig City offers outdoor classes. This spot is somehow
dine-in area, customers can enjoy the Instagram-able and offers sockets
view of Pasig City’s Poblacion Area where customers can plug in their
outside of the café. devices.
Another part of seating area of CHN This part represents the compliance of
CAFÉ – Kapasigan, Pasig City. This CHN CAFÉ – Kapasigan, Pasig City to
also has sockets where customers the regulations of the city and national
can plug-in their devices. agencies towards consumers safety,
establishment structure, and also,
product sanitation.
9. Floor Plan H: Kitchen and 10. Floor Plan G: Counter, Cashier, and
Dishwashing Area Barista Area
This is where supplies are stored, and This is where the baristas prepare the
foods are cooked. Also, this small beverage: frappe, espresso,
area in the coffee shop is where other refreshers, and non-coffee beverages.
appliances are placed for food Blenders, shakers, espresso, and
preparation such as pancake coffee machines are placed there. The
molder/cooker, rice cooker, air fryer, area also is where the cups is placed.
and deep fryer. This also where the
dishwashing area for customers and There is a little sink in the area where
cooking utensils/equipment are utensils are washed.
located.
c. Workflow of Services
CHN CAFÉ – Kapasigan, Pasig City do a pattern of activities that customers can
memorize how these procedures are done frequently. Below is the diagram of CHN
CAFÉ – Kapasigan, Pasig City workflow.
CHN CAFÉ – Kapasigan, Pasig City offers various products such as frappes, caffeine,
refreshers, sandwiches, meals, fries, and sweeties. The preparation time for these products to
be produced depends on the orders and number of the customers what among the said offerings
are then the customer/-s ordered. Below is the recording of the time of product produce in two
types of duration, peak hour or rush orders and off-hours), the group tried different sizes of the
beverages, Cute (8 oz), Classic (16 oz), and Colossal (20oz); Fries; Sandwich; and Chicken
Wings.
TIME OF
TIME OF PRODUCTION
PRODUCTION OR
OR PRODUCTION
CHN CAFÉ PRODUCTS ORDERED PRODUCTION
(DURING PEAK
(DURING OFF
HOURS)
HOURS)
1. Cute Size
6-8 minutes 7-9 minutes
- Matcha Latte (2)
2. Classic Size
- Cookies and Cream (2) 9-12 minutes 2-5 minutes
- Oreo Overload (1)
3. Colossal Size
10-13 minutes 6-8 minutes
- Lemonade (Refresher)
4. Fries Overload (2) 10-12 minutes 5-7 minutes
5. Buttermilk Toast Sandwich (1) 12-15 minutes 5-7 minutes
6. Garlic Parmesan Chicken Wings
27-30 minutes (max)
(1)
This time-recording for time of production (during peak hours) is based in a set of order by a
group of six (6). Time of production (during off hours) is given by the staffs of CHN CAFÉ –
Kapasigan, Pasig City.
CHN CAFÉ – Kapasigan, Pasig City has only 45 sqm. size of area, staff’s mobility is way
faster than other coffee shops. Staffs serve the customer’s foods or drinks for about 2-5 minutes
(per table) depending on if the shop is in its peak hours or not.
Beverages were served at the counter and customer do ‘self-service’, only those cooked
foods where serve to the guests table.
CHN CAFÉ – Kapasigan, Pasig City has only five (5) staffs where they are assigned to do
the following tasks in the coffee shop:
1. take customers’ orders
2. cook, prepare, and serve customers’ order
3. computing of shop’s expenditures and daily profit
4. marketing of the coffee shop in its FB Page
But somehow, staffs manage to clean and serve 2-3 tables every 4-7 minutes or depending
on when the customers’ order is ready and when the customers leave if their dining utensils and
cups are still on the table or self-cleaned by the customers. Even the managers and assistant
manager do the same thing also.
CHAPTER IV
INDIVIDUAL REFLECTION PAPER
In conclusion, the CHN cafe is very hands on when it comes to their customer, the drinks, the
snacks are good. Aside for their menu the place is such a good place to other the ambiance and
the design it is good for student and others. There are very accommodating, and their target is to
make their customer more comfortable and feels like home. – DAN PAOLO J. BANASING, 3 rd
Year BS Tourism Management
On October 5, 2023, Me and my groupmates got together to complete the project that Miss
Kathy Guevara, our BME1 professor, had assigned. The assignment required us to visit and
evaluate a business, and the Kapasigan location of CHN Cafe was the one we settled on. Due to
the fact that it was Teacher's Day, the cafe was expected to be busy when we arrived at around
3 p.m. This anticipation was realized as customers celebrating the event filled the cafe to capacity.
Conversations and the sounds of cups and saucers as guests enjoyed their drinks and appetizers
positively made the Cafe a lively place. Freshly made coffee's scent and relaxing background
music are both present.
It is obvious that the CHN Cafe observations I made helped me immensely with my work.
When assessing the cafe's suitability for catering a large number of customers, it seems vital to
In all the observations that were made during the said visit, it surely clarifies the impression
of mine that the CHN CAFE is indeed one of the "IT CAFE'S" that will gain more and capture more
customers in the future as they both serve the goods and the views that most cafe visitors will
consider their satisfaction. The whole experience inside the CHN is somehow interesting as I've
witnessed how they process the orders and how they accommodate the comers/customers. –
MARIA ANGELA B. BORGA, 3rd Year BS Tourism Management Student
We then had a long discussion of what we observed. We were also entertained by the whole
ambience the place had to offer, together with the entertaining activities they had like board games
and card games. Overall, going to CHN Cafe is hands down not the best, but it is not terrible at
all. I will always remember the great times I had with the group mates I spent time with. –
CHRISTIAN G. DEL ROSARIO, 2nd BS Hospitality Management’
It's clear that my observations at CHN Cafe provided me with valuable insights for my
assignment. The cafe's small space and lack of proper air ventilation in the cooking area seem to
be important points to consider when evaluating its suitability for accommodating a large number
of people. This could affect the overall comfort of the customers.
On the positive side, I see that the pricing of the food and drinks is somewhat mismatched
with their sizes, which could be a factor affecting customer satisfaction. Despite this, I appreciated
the flavor and aroma of the food and drinks, highlighting their deliciousness.
Overall, with my rating of 7 out of 10, it's evident that I took both the strengths and
weaknesses of CHN Cafe into account. We also provide a balanced perspective that can be
helpful for our assignment, giving us a solid basis for our assessment of the establishment.
In conclusion, CHN Cafe is totally awesome! From being just a regular coffee shop to, like, a
big-time corporation, it's been quite a journey, you know? Our school project really opened my
eyes. Making a business isn't as easy as it sounds, especially in the food world. There are tons
of papers and legal stuff to deal with, and it's pretty crazy! But what totally blew my mind was how
CHN Cafe just keeps on evolving. They're always trying to make things better, and that's super
cool. It's like they never stop trying to be the best. Furthermore, CHN Cafe is, like, a real
inspiration. It shows that if you work hard and keep improving, you can turn a small idea into
something amazing. It's been a wild ride, and I've learned so much from this experience. – JHON
RAY M. LAGEN, 3rd Year BS Tourism Management
Staffs are accommodating, and quickly prepare and serve our orders. We do not see them
rushing but do their best on providing us what we need. Also, as we observe, they are not
panicking even though they are accommodating large number of customers, aside also from take-
out orders. The prices of the food may be not as affordable as others can but in a service like
CHN CAFÉ – Kapasigan, Pasig City has, it is realy justifiable.
At 5PM in the afternoon, the number of customers lowered although arrival is continuous. We
ordered again some foods for snacks, and as usual, waiting time is not that long. Also, they
respectfully ask us if they need something from us like picture of if our table must be busted out
and cleaned. Their amenities such as availability of sockets for people to charge their devices,
piano for musically inclined people/customers, board games and books, and music. One of my
observations also in the staffs working routine is that, they ensure that the dining area is sanitized
by spraying alcohol after busting out each table.
Our stay in CHN CAFÉ – Kapasigan, Pasig City is a 10/10 experience though my rating will
not be the same as others because I am not really a coffee enthusiast. But for people who wants
to stay somewhere to eat, drink, and hangout, I recommend CHN CAFÉ – Kapasigan Pasig City.
And also, throughout the whole analysis and research of this café, I realize that students like us
can start a business like this too and become successful in the future. CHN CAFÉ type of
management is a best way to unite employees and managers as they look like a family rather
than workers and bosses. This school project is not just a requirement but a great way for us to
realize how hard to manage and start a company, business, or establishment that is aligned in
our field which is tourism and hospitality management. – KURT IVERSON R. PETRAS, 3rd Year
BS Tourism Management
CHN CAFÉ is a new minimalist, comfy, and cozy coffee shop in Pasig City that offers iced
coffee, etc. A good hangout for everybody who enjoys coffee and other drinks. One thing that I've
learned in this project is if we are in the hospitality industry, we should be more friendly,
approachable, and welcoming to our customers. A warm, friendly welcome assures guests that
they can relax and enjoy their meal. By the same token, a warm goodbye makes guests feel
appreciated and encouraged to return. – MAY SHANE J. POLITUD, 2nd Year BS Tourism
Management
Last Thursday at 3:00 in the afternoon, we conduct an evaluation on a business together with
a group of Kurt Iverson Petras, Dan Paolo Banasing, Jhonray Lagen, Russel Victo, Angela Borga,
May Shane Politud, and Christian Del Rosario. We decided to evaluate a category of coffee shop
which is the name of the coffee shop is CHN Café, located in Brgy. Kapasigan.
In this scenario, we arrive in the coffee shop that shop is almost occupied the seats due to
the celebration of Teacher’s Month. So, the teachers intend to enjoy their moment in the coffee
shop to dedicate their hard work for the future of our students. Step into their welcoming space,
designed to be a haven where you can escape the hustle and bustle of daily life. Whether you're
The passive scenario is they get the engagement from the buyer to expand their business
and while the aggressive scenario is will not be considered a “aesthetic” because of the randomly
people to come over to the shop anytime. There is no pointing out of good place for the lonely
people to relax their mind. The more people over-occupied the place, the more you don’t get focus
on what you are doing.
Kurt Iverson Petras has conduct interview with a staff and with a business owner of the CHN
Café about how they built a business and branding of CHN Café. Dan Paolo Banasing took a
documentation while Kurt Iverson Petras doing an interview. Additionally, we took a
documentation of the place to inspired by all the people to come in the ambiance place.
Lastly, to overview or analyze of the business permit of the coffee shop before they build the
business. Before that, you do must have to complete the requirements like a business permit from
Barangay, City Hall, insurance from the agencies like SSS, GSIS, PhilHealth, and so on.
We support the small business because everyone deserves the engagement from the people.
Many of the influencers promote a small business, not just to support the small business, is to
determine the menu, ingredients, and a place on what they invent for their future generation. As
a business manager, I would like to collaborate with the biggest company like Starbucks, Mary
Grace, Seattle Best etc. to get full ownership of the needs of every small business. It is about the
relationship between small business and the famous business around the world. – CHRISTIAN
RUSSEL P. VICTO, 3rd Year BS Tourism Management
CHAPTER V
PHOTO DOCUMENTATION
The group is ordering in CHN CAFÉ – The orders served to the group.
Kapasigan, Pasig City.
The baristas will preparing our ordered The teachers celebrating the World and
beverage and refreshers. National Teachers Day 2023.
The group enjoying the café. Mother and Son customer in café.
A couple waiting for their order in the A customer doing self-cleaning (CLAYGO)
café. of his table.
The member of the group, Mr. Kurt The member of the group, Mr. Kurt Iverson
Iverson R. Petras is interviewing Ms. R. Petras is interviewing one of the staffs
Remedios Frias, the assistant manager of CHN CAFÉ – Kapasigan, Pasig City.
of CHN CAFÉ – Kapasigan, Pasig City.
CHN CAFÉ – Kapasigan, Pasig City’s Another picture of the barista creating and
Wall Decorations of its business permits, preparing customer’s beverage.
and compliance.
After the teachers, some students of the The group member, Mr. Kurt Iverson R.
nearby school visited the café to Petras creating the floor plan of CHN
hangout after their class. CAFÉ – Kapasigan, Pasig City.
The group members enjoying the wall A staff cleaning the table and spraying it
mounted seat. with alcohol.