Café Aromagic

University of Eastern Pangasinan

Binalonan, Pangasinan

A Business Feasibility Study

Presented to the
Faculty of the College of Hospitality Management

In Partial Fulfillment
of the Requirement for the Degree
Bachelor of Science in Hospitality Management

By
Abrin, Kate Hylene P.
Alzate, Roger S.
Bagni, Abegail B.
Espinoza, Angeline M.
Fabro, Zayin
Manzano, Trixie Ann L.
Oliveras, Andrea
Tingco, Rosalinda
Urbiztondo, Engilbert

November 2023
 EXECUTIVE SUMMARY

A. Proposed Business

Café Aromagic

B. Type of Business Organization

Café Aromagic is operated in partnership form. Where it has an agreement to

individuals between the groups to carry on a business. The duties and responsibilities are

equal that need to follow.

C. Location

The location of the proposed business be located at Mc Arthur Highway,

Canarvacanan, Pangasinan

D. Proponents

Abrin, Kate Hylene P.

Alzate, Roger S.

Bagni, Abegail B.

Espinoza, Angeline M.

Fabro, Zayin

Manzano, Trixie Ann L.

Oliveras, Andrea

Tingco, Rosalinda

Urbiztondo, Engilbert
 E. Proposed Capital

Partners Shares Capital

Abrin, Kate Hylene P 1 600,000

Alzate, Roger S. 1 400,000

Bagni, Abegail B. 1 600,000

Espinoza, Angeline M. 1 400,000

Fabro, Zayin 1 400,000

Manzano, Trixie Ann L. 1 2,500,000

Oliveras, Andrea 1 400,000

Tingco, Rosalinda 1 600,000

Urbiztondo, Engilbert 1 400,000

TOTAL 6,300,000

Marketing Aspect

The proponent estimated that it would fall at least 21% of gap, which is less than

that expected demand provided by seven direct competitors and indirect their competitors.

Additional modifications will be developed to address the demand supply gap. The

business' target audiences are young students and coffee connoisseurs seeking a warm,

welcoming setting.

Management Aspect
 The proposed business of Aromagic Cafe in Binalonan Pangasinan, will you a

business partnership, student from the Bachelor of Science in Hospitality Management

course. Trixie Ann Manzano, Rosalinda Tingco, Abegail Bagni, Kate Hylene Abrin,

Roger Alzate, Angeline Espinoza, Andrea Oliveras, Zayin Fabro, Engilbert Urbiztondo,

will manage the business. The Aromagic Cafe will have a manager, pastry chef, cashier,

head barista, kitchen staff, barista crew.

The proposed business will be more functional as a physical store. Because it will

attend more tourist. This company prioritize providing individualized service, cutting

edge products and ongoing feedback loops. As a result, Café Aromagic has built trust-

worthy connections with suppliers to ensure a steady supply of premium coffee beans and

seasonal ingredients.

Technical Aspect

The proposed Cafe Aromagic business would generate a lot of operations types of

equipment, furnishings, and fixtures in order to provide tourists with a seamless service.

This café will be carefully planned to produce a warm, magical atmosphere, increasing

the general user experience. The proprietors will purchase Modern coffee-making

equipment, providing practical and reliable coffee production.

Financial Aspect

The viability of Café Aromagic is demonstrated by a thorough financial study that

considers launch expenses, revenue estimates, and profitability. The owners will need

money upfront to buy a location, renovate it, purchase equipment, and start marketing. As

a result, these costs are considered in the firm's financial model. According to market

research, the firm owners project consistent revenue growth throughout the first three
years, emphasizing reaching profitability within the first 18 months. To achieve a healthy

profit margin, Café Aromagic appropriately manages costs, optimizes pricing, and grows

its clientele.

Socio Economic Aspect

The socioeconomic effects or benefits that the business might provide are taken

into account, the business has a significant economic impact on society. Functioning as a

catalyst for societal and economic growth. The creation of the Café Aromagic is

projected to generate cash and create countless job possibilities.

Summary, Conclusion, and Recommendation

The researcher discovered that the establishment of Cafe Aromagic reveals a very

feasible endeavor with a starting capital of 6,300,000 and a net profit of 6,023,160. As a

result, the projected Cafe Aromagic is feasible, and the researcher strongly recommends

that it be implemented as soon as possible in Mc Arthur Highway Canavarcanan.

 Chapter I

INTRODUCTION

Café Aromagic stands out as a visionary endeavor, ready to fascinate and

fascinate the palates and sensations of coffee lovers and enthusiasts alike, in a time when

coffee culture has advanced beyond simple caffeination and transformed into a

multisensory experience. This feasibility study begins a thorough investigation of Café

Aromagic, a novel coffee business idea that combines the magic of fragrances with the

spirit of a café.

In recent years, the coffee business has witnessed a dramatic transition. Instead of

just a simple beverage, it has become a crucial component of the modern lifestyle, where

customers want more than just a cup of coffee. In this thriving and fast-paced sector, Café

Aromagic aims to reinvent the idea of the coffee shop. The name "Café Aromagic"

wonderfully captures the essence of the humble company. The word "café" represents our

origins as a coffee shop. In contrast, the term "aromagic" conjures up the promise of an

enchanted and aromatic experience that guests may look forward to when they enter the

great facility.

According to the Third Place Theory, beyond the home and workplace boundaries,

Ray Oldenburg highlights the value of welcoming, shared places. Café Aromagic strives

to be that welcoming "third place" where patrons may unwind, mingle, and enjoy top-

notch coffee. Second, with Experience Economy, the Experience Economy hypothesis,

advanced by Pine and Gilmore, contends that firms can prosper through creating

memorable experiences. This hypothesis is supported by Café Aromagic, which makes a

multimodal coffee experience where the scent, atmosphere, and taste all work together to
leave a lasting impression.

Cafe Aromagic begins with a group of college students who shared a deep passion

for coffee. These researchers, named Trixie, Roger, Angeline, Rosalinda, Zayin, Abegail,

Kate, Andrea, and Engilbert, were not content with the ordinary coffee options available

on their university's campus. The researchers dreamed of creating a haven for coffee

lovers like themselves, a place where they could indulge in the rich aroma and flavors of

the sacred beverage. Driven by shared love for coffee and a desire to bring something

unique to their campus, the researchers decided to embark on a journey to create their

very own coffee shop. Through their dedication and hard work, the researchers of coffee

lovers turned Cafe Aromagic into a thriving business. Their love for coffee, combined

with their entrepreneurial spirit, allowed them to create a place that brought people

together, fostering a sense of community and appreciation for the art of coffee.

The researchers conducted this business because of the extensive market research

prioritizing the growing demand for premium coffee. Not only that but the business is

also offering a unique proposition for the crowded coffee shop landscape to be used for

attracting the market segments to be targeted by the said business. Specialty coffee and

immersive, themed events are attracting more and more customers. The strategy used by

Café Aromagic precisely accommodates these changing consumer demands. The

committed group of professionals and coffee enthusiasts at the company contribute a

wealth of experience to assure the success of this endeavor. The goal is to construct a

successful coffee business as well as a sensory refuge where coffee enthusiasts may go on

enchanted aroma and taste adventures that will leave them with enduring memories of

Café Aromagic's charm.

 Chapter II

MARKET STUDY

The market study is the most important part of the feasibility study. The chapter

contains details about the business product or service, customer, market competitors,

marketing and sales strategy, mission and vision of the business, and business logo. This

study's goal is to evaluate the product's marketability, because they influence whether the

project will be feasible and successful, demand and supply for the product need to be

carefully considered.

A. Business Product/Services

At Cafe Aromagic, we are excited to introduce our new line of frothy coffee drinks

and pastries. We have taken the classic coffee experience and elevated it to new heights

with our perfectly whipped and frothy creations.

The Product and Product Description

Product Picture Product Description

Frothy Vanilla Cloud. An enchanting

combination of coffee and velvety foam

enhanced with a hint of vanilla. It feels like

indulging in a concoction of flavors.

Hazelnut Haven Froth Indulge, in the blend

of coffee, velvety froth and the enchanting

allure of hazelnut, in every sip of our

Hazelnut Haven Froth. It's an embrace that

will captivate your taste buds.

Toasted Coconut Cream Froth Experience

a getaway in every sip with our Toasted

Coconut Cream Froth. This exquisite blend

combines the flavor of coffee, velvety foam

and the heavenly aroma of coconut.

Chocolate Bliss Frothy Coffee. Experience

the combination of chocolate and aromatic

coffee topped with a creamy froth and cocoa.

It's a fusion of flavors that brings joy with

every sip creating a flawless symphony, for

your coffee desires.

 Choco Charm Eclairs. Filled with a creamy

chocolate mousse and topped with a glossy

ganache, they're finished with a chocolate

chip on top, making each piece a luxurious

indulgence.

Aroma Twist Croissant. This light and airy

pastry is made with layers of buttery dough that

give it a delicate, flaky texture. Each bite is a

perfect balance of rich, buttery flavor and a hint

of sweetness

B. Customer

Survey of Demand from the Target Market

The Café Aromagic has conducted a survey to determine whether the proposed

business is feasible. The respondents answered the questionnaire respectively using their

Google accounts. Which become the researchers' basis in determining the conclusion and

assumptions regarding the feasibility of the proposed project. 100 respondents answered

the survey.

Description Frequency Percentage

Male 29 29%

Female 71 71%
 Total 100 100%

Table 1, Classification of respondents According to Gender

Based on the conducted survey, the table shows that 29% which is 29 respondents

are male and the 71% which is 71 respondents are female.

Description Frequency Percentage

18-20 61 61%

21-30 18 18%

31-40 13 13%

40 and above 8 8%

Total 100 100%

Table 2, Classification of respondents According to Gender

Based on the conducted survey, the highest age is 18-25 with the total of 61%

which is 61 respondents. Followed by, 36-45 with the total of 18% which is 18

respondents then 46-55 with the total of 13% which is 13 respondents. Last is 56-65

above with same 8% which is 8 respondents only.

Description Frequency Percentage

Student 81 81%

Employee 12 12%

Unemployed 7 7%

Total 100 100%

Table 3, Classification of respondents According to Occupational status

 Based on the conducted survey, the highest is student with the total of 81% which

is 81 respondents. Followed by, Employee with the total of 12% which is 12 respondents.

Last is unemployed with 7% which is 7 respondents only.

Description Frequency Percentage

Twice a day 42 42%

Once a day 36 36%

3-4 times in a week 11 11%

Rarely 11 11%

Total 100 100%

Table 4, Classification of Respondents According to coffee intake

Based on our conducted survey, it shows that out of 100 respondents, there are 42

respondents who choose twice a day which represent 42%, followed by 36 respondents

who choose once a day which represents 36%. 11 respondents who choose 3-4 times in a

week which represent 11% and last 11 respondents who choose rarely which represent

11%.

Description Frequency Percentage

Chocolate Bliss Frothy Coffee 35 35%

Frothy Vanilla Cloud 24 24%

Hazelnut Haven Froth 22 22%

Toasted Coconut Cream Froth 19 19%

Total 100 100%

Table 5, Classification of Respondents According to Coffee Flavor

 Based on our conducted survey, it shows that out of 100 respondents, 35

respondents they want also a Chocolate Bliss Frothy Coffee flavor with represent of 35%,

followed by 24 respondents they want also a Frothy Vanilla Cloud flavor with represent

of 24%, followed by 22 respondents they want their coffee flavor to be Hazelnut Haven

Froth with represent of 22%, lastly the 19 respondents that choose the flavor of Toasted

Coconut Cream Froth with represent of 19%. The respondents are very familiar of the

coffee flavor which is good in our business.

Description Frequency Percentage

Twice a week 50 50%

Once a week 35 35%

Not often 15 15%

Total 100 100%

Table 6, Classification of Respondents According to Visiting a Coffee Shop

Based on the conducted survey, It shows that out of 100 respondents, there are 50

respondents visit coffee twice a week which represent 50%. Followed by Once a week

with the total of 35 respondent which represent 35%. Last is Not often with the total of

15% which is 15 respondents only.

Description Frequency Percentage

Coffee Shop 63 63%

Home 37 37%

Total 100 100%

Table 7, Classification of Respondents According to place of drinking Coffee

 Based on the conducted survey, it shows that out of 100 respondents, there are 63

respondents drinking coffee in coffee shop which represent 63%. Followed by in home

with the total of 37 respondent which represent 37%.

Description Frequency Percentage

Yes 96 96%

No 11 11%

Total 100 100%

Table 8, Classification of Respondents According to building a shop. If we well build a

coffee shop in Binalonan, Pangasinan would you go?

Based on our conducted survey, it shows that out of 100 respondents, 96

respondents choose YES which represent 96%, followed by 4 respondents choose NO

which represents 4%. Therefore, out of 100% respondents most of them are willing to go

in our coffee shop which is the Café Aromagic.

Description Frequency Percentage

50-100 51 51%

100-150 30 30%

150 above 19 19%

Total 100 100%

Table 9, Classification of Respondents According to how much money they will spend

Based on our conducted survey, it shows that out of 100 respondents, in terms of

pricing the product 51 respondents choose a Php 50-100.00 which is representing a 51%,
followed by 30 respondents they choose Php 100-150.00 which is representing a 30%,

followed by 19 respondents they choose Php 150 above which is representing a 19%

Therefore, the respondents want the product at affordable price and we will ensure that

our product is reasonable in their prices.

C. Market Competition

The café industry is quite competitive, with many cafés vying for customers attention

and loyalty. In this study on feasibility, we will explore the market competition faced by

Cafe Aromagic and evaluate its potential to thrive in this environment. By

comprehending the strengths and weaknesses of its competitors we can pinpoint

opportunities, for Cafe Aromagic to stand out and attract customers in a captivating

manner.

Direct Competitors

Café Aromagic direct competitors are 1822 Café, Brenalonan, Kwings Café,

Hebrews Café, GenZspot Café, Havens Brew and Hour Cafe

Indirect Competitors

Café Aromagic indirect Competitors are Tea2go, Milk Tea Project, Booba

Market Share

Market share is the percent of total sales in an industry generated by a particular

company. Market share is calculated by taking the company’s sales over the period and

dividing it by the total sales of the industry over the same period. This metric is used to

give a general idea of the size of a company concerning its market and its competitors.
 Figure 1, Market Share

The pie graph shows the market share of the three (7) major competitors of Café

Aromagic in Binalonan Pangasinan. 1822 Cafe got the highest market share with 21%

which means that they got the highest sales among the seven Coffee shop. While Haven

Café got 17 % of market share, which shows they are second in having the highest sales.

Brewnalonan Café and Kwing’s Café who got 16% of market share then genZspot Café

who got 13% in market share and Hour Café who got 9% in market share. Lastly the

Hebrews Café who got 8% in market share that completes the total of 100%. Based on

the results of pie graph, the market shares of the seven competitors are not far apart

which means that the competition among them is intense.

Product and Market Focus

The proposed business Cafe Aromagic, offers various and different goods. The

products include Frothy Vanilla Cloud, Hazelnut Haven, Toasted Coconut Cream, Aroma

Twist Croissant, Choco Charm Eclairs and Chocolate Bliss.

The market focus of Cafe Aromagic is on individuals who appreciate and enjoy a

variety of coffee and pastries. This may include coffee lovers, pastry Enthusiasts, and
individuals who seek a cozy and relaxing environment to enjoy their drinks. The cafe

aims to attract customers from different demographic groups, such as students,

professionals, and local residents, by offering a diverse menu and creating an inviting

atmosphere.

SWOT Analysis

The SWOT analysis is a tool, for evaluating the strengths, weaknesses,

opportunities and threats of Cafe Aromagic. By examining both external factors this

analysis will provide insights, into the feasibility and potential success of opening the

cafe.

STRENGTH WEAKNESS

 Quality products and service  Difficult to Maintain Cash Flow.

 Direct relationship with customer  Low Profit Margin.

 Creative and attractive product  Price Sensitive Market.

 Continuous sale  Costly Supplier.

 Located at the long highway near at  The Low Price of Competitors.

UEP, MEAB, JUAN G we customer  Newly open business

mostly walk by.  Not yet well known the coffee

 Convenience and relaxing environment shop

 Affordable product price that can be  Strong exist competitors

avail by student, teachers and lower

upper class

OPPORTUNITIES THREAT
  Open for small meetings and seminars.  Economic stability that affects the

 Provide and training students in the cost of raw materials ang

coffee industry. ingredients.

 Can implement a loyalty program.  Competitors is located nearby.

 Loyal returning customers.  Emerging customer needs and

 Introduce an app or QR menu for trends.

ordering.  Customer relationships and

 Attract new customers through special customer lifetime value.

offers.  Disaster and Calamities

 Develop an innovation culture for lots

of new ideas.

 Build stronger customer relationships.

 Unique coffee recipes and flavors.

Table 10, SWOT Analysis

D. MARKETING AND SALES STRATEGY

The following are our marketing strategies we use to be competitive and maintain our

business in the industry;

1. Digital Presence

We will use social media platforms, like Instagram, Facebook and Tiktok to showcase

the cafes atmosphere, delicious food and unique drinks. Make sure to share high quality

photos interact with your followers and organize promotions or giveaways to increase
brand visibility and attract new customers.

Figure 2, Facebook Page, Instagram Account and Tiktok Account

2. Loyalty Programs

Having a loyalty program, in place can be beneficial for attracting and keeping

customers. This may involve providing discounts, complimentary items or incentives

for visits or purchases, at Café Aromagic.

Figure 3, Café Aromagic Loyalty Card

3. Online Reviews and Referrals

It is crucial for any business to receive reviews and recommendations, through word

of mouth. Our strategy involves encouraging our customers to share their experiences by

leaving reviews on our website and social media platforms. Additionally, we will provide

incentives, like coffee or meals as a way to motivate our customers to help us promote

our café.
 4. Special Offers and Promotions

We plan to provide promotions and discounts in order to attract new customers and

keep our existing ones. This may involve giving first time customers a discount

highlighting seasonal menu items or implementing a loyalty program that rewards

customers after they make a number of purchases.

Figure 4, Café Aromagic Flyers

DISTRIBUTION STRATEGY

At Cafe Aromagic, our main goal is to provide our customers with a unique and

memorable dining experience through our high-quality food, warm atmosphere, and

exceptional service. To achieve this, we have developed a comprehensive distribution

strategy that focuses on delivering our products to our customers in the most convenient

and efficient ways possible.

1. In-house dining experience

The main distribution channel for Cafe Aromagic will be through in-house sales at

our cafe. Customers will be able to dine in and enjoy their meals or purchase our products

to-go. We will create a warm and welcoming atmosphere in our cafe to encourage
customers to spend time and savor our food and beverages.

2. Online ordering and delivery

In today's fast-paced world, we understand that many customers prefer the

convenience of online ordering and delivery. To cater to this demand, we have a user-

friendly website and mobile app where customers can easily browse our menu, place their

orders, and track their deliveries. We have also partnered with popular food delivery

services to expand our reach and cater to a larger customer base.

3. Drive Thru Experience

It will be through physical locations of Cafe Aromagic, strategically situated in highly

visible areas with high consumer traffic. These locations will feature a drive-thru window

to cater to customers on the go.

PRICING STRATEGY

Our pricing strategy is to price our product that affordable to every customer. To

cover the cost of our business, we use cost-plus pricing. The price of our business is not

competitive, but we can ensure that our coffee and pastries are good taste to customers.

The price is looking for good value to the customers. Our goal is to provide good quality

of product for a reasonable price.

Name of Dish Frothy Vanilla Cloud

Standard Yield 1 Serving
INGREDIENT UNIT OF UNIT COST PORTION TOTAL
MEASURE CURRENT SIZE COST
CURRENT
Milk 1000 ml 75 150ml 11.25
Brewed Coffee 500grams 60 85grams 10.2
Vanilla Extract 60ml 25 15ml 6.25
Sugar 750ml 80 30ml 3.2
Total Cost 30.9
Total Cost Per Serving 30.9
Cost Ratio 75% 41.2
Computed Price Per Serving 41.2
VAT 12% 4.94
Total Price Per Serving 41.32
Recommended Price Per Serving 50

Name of Dish Hazelnut Haven Froth

Standard Yield 1 Serving
INGREDIENT UNIT OF UNIT COST PORTION TOTAL
MEASURE CURRENT SIZE COST
CURRENT
Milk 1000 ml 75 150ml 11.25
Brewed Coffee 500grams 60 56.7grams 6.80
Hazelnut syrup 750ml 200 30ml 8
Crushed Hazelnut 250grams 100 14.18grams 5.67
Sugar 750ml 80 30ml 3.2

Total Cost 34.92

Total Cost Per Serving 34.92
Cost Ratio 75% 46.56
Computed Price Per Serving 46.56
VAT 12% 5.59
Total Price Per Serving 46.68
Recommended Price Per Serving 50

Name of Dish Toasted Coconut Cream Froth

Standard Yield 1 Serving
INGREDIENT UNIT OF UNIT COST PORTION TOTAL
MEASURE CURRENT SIZE COST
CURRENT
Coconut Milk 1000 ml 60 236.59ml 14.19
Brewed Coffee 500grams 60 31grams 3.72
Coconut syrup 750ml 150 50ml 10
Sugar 750ml 80 30ml 3.2
Vanilla Extract 60ml 25 5ml 2.08
Coconut Chips 250grams 60 14.18grams 3.40

Total Cost 36.59

Total Cost Per Serving 36.59
Cost Ratio 75% 48.79
Computed Price Per Serving 48.79
VAT 12% 5.85
Total Price Per Serving 48.91
Recommended Price Per Serving 55

Name of Dish Chocolate Bliss Frothy Coffee

Standard Yield 1 Serving
INGREDIENT UNIT OF UNIT COST PORTION TOTAL
MEASURE CURRENT SIZE COST
CURRENT
Brewed Coffee 500grams 60 40grams 4.8
Milk 1000ml 75 150ml 11.25
Chocolate syrup 1000ml 150 59ml 8.85
Cocoa Powder 500grams 90 30grams 5.4
Sugar 750ml 80 30ml 3.2

Total Cost 33.5

Total Cost Per Serving 33.5
Cost Ratio 75% 44.67
Computed Price Per Serving 44.67
VAT 12% 5.36
Total Price Per Serving 44.79
Recommended Price Per Serving 50

Name of Dish Aroma Twist Croissant

Standard Yield 20 Serving
INGREDIENT UNIT OF UNIT COST PORTION TOTAL
MEASURE CURRENT SIZE COST
CURRENT
All-purpose flour 1000grams 75 810grams 60.75
Milk 1000ml 110 510ml 56.1
Unsalted butter 500grams 275 450grams 247.5
Granulated Sugar 1000grams 96 50grams 4.8
Salt 50grams 20 15grams 6
Yeast 50grams 95 15grams 28.5
Egg 1pcs 9 1 9
Chocolate Bar 500grams 285 255grams 145.35
Total Cost 558
Total Cost Per Serving 27.9
Cost Ratio 45% 37.2
Computed Price Per Serving 37.2
VAT 12% 4.46
Total Price Per Serving 37.32
Recommended Price Per Serving 45

Name of Dish Choco Charm Eclairs

Standard Yield 24 pcs
INGREDIENT UNIT OF UNIT COST PORTION TOTAL
MEASURE CURRENT SIZE COST
CURRENT
Heavy Cream 946ml 125 473.18ml 62.52
Chocolate Chips 500grams 130 200grams 52
All-purpose flour 1000grams 45 240grams 10.8
Unsalted Butter 200grams 92 125grams 57.5
Salt 50 grams 20 2grams 0.8
Milk 1000ml 85 240ml 20.4
Powdered Sugar 450grams 45 25grams 2.5
Vanilla Extract 20ml 25 14.78ml 18.47
Egg 4pcs 32 4 32
Corn Syrup 500ml 45 14.78ml 1.33

Total Cost 258.32

Total Cost Per Serving 10.76
Cost Ratio 45%
Computed Price Per Serving
VAT 12%
Total Price Per Serving
Recommended Price Per Serving
Sales Forecast

A sales forecast is a depth report that predicts what a salesperson, team, or

company will sell weekly, monthly, and annually. Sales forecasts are typically

created using past performance data. Café aromagic hope to gain 5% increase in

sales revenue for the next 5 years.

The table shown the sales forecast of Café Aromagic illustrate the daily

sales, monthly sales, and annual sales forecast.

TARGET DAILY MONTHLY ANNUAL

ITEMS PRICE SALES TARGET SALES SALES
PER SALES
ITEM
Frothy Php50.00 13 Php Php Php
Vanilla Cloud 650.00 19,500.00 234,000.00
Hazelnut Php60.00 13 Php Php Php
Haven Froth 780.00 23,400.00 280,800.00
Toasted Php50.00 14 Php Php Php
Coconut 700.00 21,000.00 252,000.00
Cream Froth
Chocolate Php55.00 10 Php Php Php
Bliss Frothy 555.00 16,650.00 199,800.00
Coffee
Choco Charm Php 8 Php Php.00 Php .00
Eclair
Aroma Twist Php 15 Php Php.00 Php .00
Croissant
Total Monthly Php 00 Php .00 Php .00
Sales
Table 3, Daily Target sales of Café Aromagic

E. Business Mission and Vision

Mission

Café Aromagic mission is to become the go-to destination for coffee and tea

lovers, offering a unique and unforgettable sensory experience through a variety of

aromas and flavors.

Vision

5 Years from now we will be among the top 10 best coffee shop in the Pangasinan.

To become the foremost destination for sensory delight, and we'll make sure Aromagic

Cafe is remembered by following the trend.

Business Logo

Figure 5, Café Aromagic Logo

The logo is on the aroma cup symbolizing the delicious coffee you can smell. And

the cup you can smell and sip will leave a magical feeling you will feel. As you can see,

the sun and moon are used in the logo to represent the fact that our cafe is open from

sunrise till midnight and that we don't just serve you coffee or sell you coffee but also

provide you with magical experiences each and every day. The magic referred to in our

logo is the taste of our coffee. We will prove that with every sip you will be surprised by

its taste and you will come back so that you can give our cafe aromatic more than the

magical that we did not expect.

“Magical in every cup" our tagline suggests that Café Aromagic is not just a place
to get coffee but a destination where each cup of coffee is carefully crafted to be a

magical and enchanting experience. It conveys the idea that every detail, from the

selection of coffee beans to the brewing process, with a touch of magic we create a truly

delightful and memorable coffee experience for customers. So, to all our coffee lovers

there it's been a while, have a magical break.

 Chapter III

MANAGEMENT STUDY

Management study play a role, in helping organizations improve their performance.

By equipping leaders, with the knowledge and skills it enables them to make decisions

effectively manage resources and achieve organizational goals. Within management

studies important aspects include job analysis charts and employee compensation

schemes.

A. Job Analysis

Coffee shops are frequently hives of activity, and maintaining the smooth functioning

requires a staff of knowledgeable experts. Employing staff members who are enthusiastic

about creating coffee products, offering superior customer service, and maintaining a

clean and organized shop are crucial for coffee shop owners. By doing this, you can make

sure that your clients are content, your staff are pleased, and your business is successful.

Here are the following qualifications, duties and responsibilities of staffs needed in

Café Aromagic:

Manager- plays a crucial role in ensuring the cafe runs efficiently and responsible

implementing marketing strategies to attract and retain customers, such as advertising,

promotions, and social media engagement.

QUALIFICATIONS

 Any Bachelor's degree in BS Hospitality Management or Business Administration

 Knowledgeable of food health and safety and regulations

 Proven management experience in the hospitality industry.

  A food handler’s license.

 Knowledgeable of food health and safety regulations.

 Excellent organizational and the management skills.

 Effective communication skills.

DUTIES AND RESPONSIBILITIES

 Hiring, training, and scheduling employees, including baristas, servers, and

kitchen staff.

 Manage day to day operations of the café.

 Hire and on-board new wait staff and baristas.

 Coordinate with vendors and order supplies, as needed.

 Maintain updated records of daily, weekly, and monthly revenues and expenses.

 Add new menu items based on seasonality and customers preferences.

 Advise staff on the best ways to resolve issues with clients and deliver excellent

customer service.

Head Barista- managing the coffee preparation and service aspects of the establishment

and have a passion for coffee and a deep knowledge of different coffee brewing methods

and techniques. Responsible for ensuring the quality and consistency of coffee beverages.

QUALIFICATIONS

 Extensive experience in the coffee industry, with at least 5 years as a barista.

 Knowledge of coffee bean varieties, brewing methods, and latte art.

 Certification or training in coffee making and barista skills.

 Excellent customer service and communication skills.

  Strong leadership and management skills.

DUTIES AND RESPONSIBILITIES

 Training and mentoring other baristas to make sure they can create high-quality

coffee drinks and provide excellent customer service.

 Train and supervise other baristas to ensure quality and consistency in coffee

preparation.

 Create and maintain a welcoming environment for customers, encouraging them

to try new coffee drinks and interact with the staff.

 Keep up-to-date with the latest trends and techniques in coffee making.

 Work closely with the kitchen staff to ensure timely service of food and drinks.

 Maintain the cleanliness and organization of the coffee bar and the dining area.

Cashier - in charge of managing financial transactions with patrons. They are primarily

responsible for ringing up orders, taking payments, giving change, and maintaining the

accuracy and security of the cafe's cash register or point-of-sale system.

QUALIFICATIONS

 Knowledgeable regarding of Pos Machine

 Friendly and positive attitude.

 Excellent customer service.

 Excellent communication skills.

 Ability to make change.

 Basic Math skills.

DUTIES AND RESPONSIBILITIES

 Promote cafe items or specials to increase sales, such as suggesting add-ons or

upsizing drinks.

 Process sales transactions.

 Calculate the cost of products or services.

 Accept payments.

 Calculate and return change when required by the payment method.

 Maintain adequate change denominations in the cash drawer and request

additional change.

 Answer customer questions about products or services.

 Reconcile cash drawers and sales receipts.

 Repost issues with equipment.

Pastry Chef- responsible for preparing a wide variety of delicious desserts, pastries, and

sweet goods.

QUALIFICATIONS

 Culinary Degree: A degree in pastry arts or a related culinary field.

 Experience: Minimum of 2 years’ experience in a professional baking

environment.

 Creativity: Ability to create unique, eye-catching pastry designs.

 Time Management: Efficient time management skills to handle a busy kitchen

environment.
  Teamwork: Excellent teamwork and communication skills to ensure a harmonious

work environment.

DUTIES AND RESPONSIBILITIES

 Operating and managing the pastry section of the kitchen and liaising with the

executive and sous chefs to ensure a successful working environment.

 Preparing ingredients and handling baking and other kitchen equipment.

 Decorating pastries and desserts to ensure beautiful and tasteful presentation.

 Monitoring the stock of baking ingredients.

 Ordering new supplies, ingredients, and equipment for the pastry section, when

needed, and within budget.

Kitchen Staff-refers to those who work in a kitchen, frequently in hotels, restaurants, or

other food service organizations. They play a variety of jobs in the food preparation and

serving process, including chefs, cooks, sous chefs, dishwashers, and prep cooks.

QUALIFICATIONS

 Previous experience in a kitchen, even as a dishwasher or prep cook, is valuable.

 Understanding of food safety and sanitation regulations is crucial.

 Good knife skills, cooking techniques, and the ability to follow recipes accurately

are important.

DUTIES AND RESPONSIBILITIES

 Cutting, chopping, and prepping ingredients as per recipes and instructions.

  Adhering to food safety guidelines, maintaining cleanliness, and handling food

safely.

 Keeping track of ingredient levels, restocking, and informing the chef or manager

when supplies are low.

 Regularly cleaning and sanitizing workstations, utensils, and equipment.

 Collaborating with other kitchen staff to ensure smooth operations during service.

Service Crew – Greet customers and offers restaurant or café menus, answers questions

about menu offerings, processes food and drink order, carries food and drinks from

kitchen to tables, and prepares bills and process payments.

QUALIFICATIONS

 Highschool Diploma

 Attention to detail.

 Ability to multitask.

 Written and verbal communication.

 Customers service skills.

 Ability to work under pressure.

 Positive attitude.

DUTIES AND RESPONSIBILITIES

 Greeting guests and taking drink and food orders.

 Staying attentive to the needs of guests in the dining area.

 Delivering food from the kitchen to the guests.

  Ensuring the food order is made correctly by kitchen staff and looks presentable

for guests.

 Checking the quality and presentation of dishes before they are served.

B. Organization Structure

An organizational structure is a system that outlines how certain activities are

directed in order to achieve the goals of an organization. An organizational structure

details how certain activities are delegated toward achieving an organization’s goal. It

outlines an employee’s duties and obligations in a corporation.

Figure 7: Organizational Structure

 C. Employee Compensation Scheme

The compensation of the employee will be based on their position, day of work,

depend upon their performance. All wages and salaries will be in accordance with the

rules and guidelines of Labor Code

Salaries and Wages

All of the employee will receive their respective salaries as provided in their

contract of employment every end of the month. Salaries will be computed accordance

to their position and day of work, employees are assuming to receive a “minimum wage”

in exchange of their work that they complete.

Holiday Guidelines

Among the pre-identified Philippine holidays for the current fiscal year, the

company allows employees to elect thirteen (13) elective holidays to observe from among

the list of the regular and special non-working days. This provides employees the ability

to choose the holidays they would like to observe in line with their preference/life

situation. Failure to report to work on a non-elective holiday shall be considered an

absence. Details / guidelines are subject to changes and updates based on annually

released

SSS/Phil Health Benefits

Benefits under SSS/Phil Health Benefits will be granted in accordance with

applicable law. Implementation of producers relative to entitlement of said benefits

should be done in accordance with the regulations to be promulgated by the management.

13th Month Pay

13th month pay equivalent to 1-month base pay, based on service for the year; payout is

every November.

Compensation Scheme

Workers face one of two types of compensation schemes. Under both contracts,

workers are paid a fixed base wage plus additional pay based on performance after

reaching a productivity target.

Salaries will be computed accordance to their position and day of work, employees

are assuming to receive a “minimum wage” in exchange of their work that they complete.

Emp. Name Monthly Hourly Gross Gross Pay

Number Basic Rate Rate Pay

0000- Manzano, Trixie Ann 18,000.00 86.26 9,000.00 9,000.00

ABC001

Total Confi 18,000.00 9,000.00 9,000.00

0118- Bagni, Abegail 12,000.00 57.51 6,000.00 6,000.00

ABC022

0716- Abrin Kate 12,000.00 57.51 6,000.00 6,000.00

ABC011

0612- Tingco, Rosalinda 12,000.00 57.51 6,000.00 6,000.00

ABC031

0718- Uzbiztondo, 11,250.00 53.91 5,625.00 5,625.00

ABC031 Engilbert

0000- Alzate, Roger 11,250.00 53.91 5,625.00 5,625.00

ABC045

0000- Espinoza, Angeline 11,250.00 53.91 5,625.00 5,625.00

ABC046

0618- Oliveras, Andrea 11,250.00 53.91 5,625.00 5,625.00

ABC029

0117- Fabro, Zayin 11,250.00 53.91 5,625.00 5,625.00

ABC014

Total Non-Confi. 92,250.00 - 46,125.00 46,125.00

Grand Total 110,250.00 55,125.00 55,125.00

Table 11 Salary of Management Staffs

 Mon Tue Wed Thurs Fri Satur Sun

Café 10:00am 10:00am 10:00am 10:00am 10:00am 10:00am

Manager -7:00pm -7:00pm -7:00pm -7:00pm -7:00pm -7:00pm

Head 10:00am 10:00am 10:00am 10:00am 10:00am 10:00am

Barista -7:00pm -7:00pm -7:00pm -7:00pm -7:00pm -7:00pm

Pastry 10:00am 10:00am 10:00am 10:00am 10:00am 10:00am

Chef -7:00pm -7:00pm -7:00pm -7:00pm -7:00pm -7:00pm

Barista 10:00am 10:00am 10:00am 10:00am 10:00am 10:00am

-7:00pm -7:00pm -7:00pm -7:00pm -7:00pm -7:00pm

Cashier 10:00am 10:00am 10:00am 10:00am 10:00am 10:00am

-7:00pm -7:00pm -7:00pm -7:00pm -7:00pm -7:00pm

Cashier 10:00am 10:00am 10:00am 10:00am 10:00am 10:00am

-7:00pm -7:00pm -7:00pm -7:00pm -7:00pm -7:00pm

Kitchen 10:00am 10:00am 10:00am 10:00am 10:00am 10:00am

staff -7:00pm -7:00pm -7:00pm -7:00pm -7:00pm -7:00pm

Kitchen 10:00am 10:00am 10:00am 10:00am 10:00am 10:00am

staff -7:00pm -7:00pm -7:00pm -7:00pm -7:00pm -7:00pm

Service 10:00am 10:00am 10:00am 10:00am 10:00am 10:00am

Crew -7:00pm -7:00pm -7:00pm -7:00pm -7:00pm -7:00pm

Table 12 Schedule of the Staff

*All the red marks on the working schedule means closed

Uniform

MANAGER STAFF

Waste Disposal

Waste disposal is including the activities and actions required to manage waste

from its inception to its disposal. This includes the collection, treatment and

disposal of waste together with monitoring and regulation of the waste management

process. The advantage of waste disposal is it keeps our environment clean and

fresh.

Café Aromagic will follow the proper waste disposal by using the

biodegradable and non-biodegradable disposal. We are responsible for whatever

trash or waste our business produces for we believe that simple mistake and

unethical doing of the people inside of the organization will reflect to the company

itself.

Coffee Shop Rules and Policies

In order to allow each guest or customer to experience the best use of coffee

shop facilities without causing undue strain or excessive cost of operation the

coffee shop management encourages everyone to observe and abide with the

following.

A. Business Hour- Our business hours are 10 am to 7 pm, Mondays to

Sundays with their specific day off

B. Standard Delivery- Expect the delivery of most orders of the Cup and

Beans within 30 minutes after placing the order.

C. WIFI/ Internet use- By using the coffee shop’s WIFI/ internet access the

customer agrees and / or accepts the rules of Café Aromagic. Each guest

shall be allowed to use the WIFI password to only one electronic device.

Sharing WIFI password is not allowed.

D. Use of the coffee shop’s electrical outlet- Prolonged plugging for more

than one hour of any electronic device is generally not allowed.

E. No bringing in of outside food/ drinks- Food and drinks purchased

outside of the coffee shop or hotel shall not be allowed to be brought

inside the coffee shop area.

F. Liquor/ Smoking- Liquor and or any kind of alcoholic beverages are not

allowed inside the coffee shop. Smoking is likewise not allowed inside the

coffee shop.

G. Parking/ Unattended Vehicles- Parking for coffee shop is allowed in

front of the Café Aromagic and shall be first come first serve.

H. Proper behavior/conduct- Guest are advise to observe proper and orderly

conduct inside the coffee shop. Placing or putting their legs or feet on the

chair or table is prohibited.

 Chapter IV

TECHNICAL STUDY

In this section we will discuss the specifications, for the facilities, such, as their

size and quantity. We will also cover the list of materials needed to produce the product

well as the procedures involved in creating top notch goods and services and the floor

plan perspective.

Name Cost/Unit Quantity Total

(PHP)

Air pots 2,600 1 2,600

Espresso Machine 200,000 1 200,000

Coffee Grinder 15,000 1 15,000

Espresso stamp 690 3 2,070

Frothing Pitchers 524 5 2,620

Milk frother 7,500 1 7,500

Coffee and 30 5 150

Beverage Labeling

Display case 5,299 1 5,299

Refrigerator 27,999 1 27,999

Aprons 120 8 960

Gas Burner with 18,523 1 18,523

Oven

Kitchen Exhaust 10,000 1 10,000

Fan

Air condition 28,899 1 28,899

20,000 2 40,000

POS Machine

Total 361,620

Table 13, Coffee shop store facilities and Equipment

Name Quantity Unit Cost Total

Unit

(PHP)
Coffee 10 pcs 200 2,000

Containers

Coffee Mug 25 pcs 390 9,500

Espresso Cups 10 pcs 38 380

Disposable 500 pcs 250 1,250

Paper Cup

Mixing Bowl 5 pcs 150 750

Measu 3 set 109 327

ring Spoon

Measuring Cup 3 set 300 900

Plates 25 pcs 70 1,750

Spatula 5 pcs 60 300

25 set 150 3,750

Spoon and Fork

20 pcs 140 2,800

Saucier

Total 23,707

Table 14, Coffee shop store Utensils

 Name Cost/Unit Quantity Total

(PHP)

Table 5,500 12 66,000

Chairs 1,100 40 44,000

7,300 1 7,300

Long Table

Couch 16,700 1 16,700

Storage Cabinet 11,000 1 11,000

 6,799 3 20,397

Shelf Organizer

Total

165,397

Table 15, Coffee Shop furniture’s and fixtures

Name Cost/Unit Total

(PHP) Quantity

Ballpen 10.00 10 80.00

Carbon Receipts 130.00 1 130.00

paper

Log Book 250.00 1 250.00

Scissors 100.00 1 100.00

Coupon 200 1 200

Total 13 760

Table 16, Coffee Shop Office Supplies

Name Unit Of Cost Quantity Total

Php
Floor mat 250.00 1 250.00

Sweep broom and 230.00 1 230.00

Dustpan

Trash Bin 100.00 5 500.00

Plants 333.00 3 1,000.00

Alcohol 350.00 500 ml 350.00

Tissue Roll 2 ply 500 48 rolls 500.00

Handwash Soap 150.00 3 450.00

Cleaning C loth 50 5 250.00

Dishwashing 200.00 1 200.00

Liquid

Small Paper Bag 500.00 1,600 pcs 500.00

Total 4,230.00

Table 17, Coffee shop Cleaning Tools

 Total Cost/ Total Cost/

Utilities Sources Price Month Year

Electricity PANELCO 10,000 10,000 120,000

Telephone 1,500 1,500 18,000

with PLDT

Internet

Water BIWAD 500 500 6,000

Rent 30,000 30,000 360,000

Total 504,000

Table 18, Coffee shop Utilities

Plant Location and Size.

Café Aromagic will be set on the Mc Arthur Canarvacanan

Binalonan, Pangasinan beside the HBI Hardware and University of

Eastern Binalonan with the size of 238 square meters. The rental fee is

35,000 pesos. All operational activities are held here in the area.
Floor Plan and Perspective
Perspective View

Front View
Side View

Interior
 Vicinity Map

Figure 8: Vicinity Map

Capital Investment

The capital investment will be from the 9 (nine) owners namely: Abrin, Kate

Hylene P, Alzate, Roger S., Bagni, Abegail B., Espinoza, Angeline M., Fabro, Zayin,

Manzano, Trixie Ann L., Oliveras, Andrea, Tingco, Rosalinda and Urbiztondo, Engilbert

The capital investment budget will be Php.6,300,000.00 (Six million three hundred

thousand pesos) the capital is to the nine owners Trixie Manzano will share 2,500,000,

RosalindaTingco, Kate Hylene Abrin and Abegail Bagni will share 600,000 and Roger

Alzate, Angeline Espinoza, Zayin Fabro, Andrea Oliveras, Engilbert Uzbiztondo will

share 400,000. The capital covers all the expenses including the land, building and

equipment’s.
 BILL OF MATERIALS
Scope of Works

Item Description Qty Unit Cost Total Cost

I Mobilization 1 LS 5000 5000

Sub Total P 5000

II Concrete and Masonry Works And

Formworks, Scaffolding
Portland 470 bags 230 108100
Cement
Sand 15 cu.m. 650 9750

Gravel 28 cu.m. 750 21000

4"CHB 2285 pcs 9 20565

Ordinary Plywood 112 pcs 320 35840

(1/4)
2”2” Wood Frame 1,06 bd.ft 75 79875
5
Lumber 2"x2"x10 2378 bd.ft 70 166460
ft
Lumber 2"x 3"x14 811 bd.ft 150 121650
ft
Sub Total P 544,340

III STEEL AND REINFORCEMENT WORKS

10 mm Dia. Bar x 458 pcs 150 68700

6m
12 mm Dia. Bar x 15 pcs 200 3000
6m
16 mm Dia. Bar x 68 pcs 350 23800
6m
25 mm Dia. Bar x 82 pcs 900 73800
6m
#16 - G.I Tie Wire 32 kg 70 2240

Sub Total P 171,540

IV EARTHWORKS

Excavation 49 cu.m. 350 17150

Backfill and Compaction 44 cu.m. 300 13200

Sub Total P 30,350

V ROOFING WORKS

32" x 9' Corrugated G.I she 16 pcs 1100 17600

32" x 8' Corrugated G.I she 16 pcs 1000 16000

32" x 7' Corrugated G.I she 16 pcs 800 12800

32" x 5' Corrugated G.I she 16 pcs 600 9600

2" x 4' C Purlins 20 pcs 600 12000

2" x 8' Rafter 25 pcs 1250 31250

2" x 6' Facia Board 13 pcs 1100 14300

G.I Rivets 7 kg 0

G.I Washers 19 kg 0

Sub Total P 113,550

VI CEILING WORKS

Gypsum Board Ceiling Pan 25 pcs 500 12500

G.I. Metal Furring Studs a 50 pcs 400 20000

Gypsum Putty 40 kg 55 2200

 P 34,700
Sub Total
VII PLUMBING FIXTURES AND
INSTALLATIONS
Lavatory 1 pcs 1500 1500

Faucet 2 Pcs 100 200

Valve 2 Pcs 300 300

Floor Drain 1 Pcs 100 100

Kitchen Sink 1 pcs 1600 1600

Water Closet 1 Pcs 1250 2500

90 deg. Elbow 4 pcs 100 400

45 deg. Elbow 2 Pcs 100 200

Reducer Tee 1 Pcs 100 100

PVP PIPE (Complete 2 Pcs 150 300

System)
PPR PIPE (6m) 3 pcs 150 450

Tee 8 pcs 100 800

Sub Total P 7,200

VIII ELECTRICAL WORKS

Pin light 10 Pcs 200 2000

Wall Lamp 2 Pcs 300 600

Incandescent Lamp 12 Pcs 200 2400

Utility Box 15 Pcs 30 450

Receptable with screw 17 Pcs 50 850

Fuse Box 1 Pcs 0 0

Convenience Outlet 14 Pcs 150 2100

 Switch Outlet 1 gang 13 Pcs 100 300

Switch Outlet 2 gang 5 Pcs 150 750

Circuit Breaker 1 Pcs 1000 1000

Aircon Outlet 3 Pcs 300 900

Water Heater 2 Pcs 800 1600

LO Conduits 50 Meters 20 1000

LO Wires 150 Meters 30 4500

CO conduits 47 Meters 125 5875

CO Wires 141 Meters 30 4230

Sub Total P 28,555

IX DOORS ANSD WINDOW

Main Door (Panel Type) 1 Pcs 6500 6500

Doors (Flush Type) 3 Pcs 2500 7500

Toilet Door (PVC Type) 1 Pcs 1500 1500

Doorknob 4 Pcs 250 1000

Sliding Windows 1 Pcs 4500 4500

Sub Total P 21,500

X PAINTING WORKS

Surface Primer 10 Gal. 1000 10000

Neutralizer 2 Lit. 200 400

Acrylic Roof Shield Pain 4 Gal. 950 3800

Wood Primer 2 Gal. 200 400

Quick Drying Enamel 2 Gal. 1000 2000

 Paint Thinner 0.5 Gal. 150 75

Sub Total P 16,675

XII WALL

Glass Wall 7 Pcs 15000 105,000

Sub Total P 105,000

TOTAL MATERIAL COST P1,078,410

LABOR COST (35% of material cost) P 377,443.5

Total Construction Cost P 1,455,853,5

Table 19, Material Expenses

Table 20, Work Duration

 CHAPTER V
FINANCIAL STUDY
Building a financial plan can be the most intimidating part of writing your

feasibility study. It's also one of the most vital. Business that has a full financial

plan in place more prepared to pitch to investors, receive funding, and achieve long

term success. A financial plan is simple an overview of your current business

financials and projections for growth. Think of any documents that represent your

current monetary situation and the projections being your future expectations.

Major Assumptions

• All transactions are paid in cash basis and all amounts are in Philippine

pesos

• Cost of Service/cost of sales/cost of goods sold will increase by 3% per year

to cover inflation.

• Supplies will be replenished on a yearly basis and the cost will increase by

3% per year

• Salaries of employees will remain constant for the next 5 years.

• SSS, Phil health, Pag-ibig premiums will be paid on a monthly basis.

• Depreciation expense is computed using straight line depreciation method.

Assets' useful life is 10 years.

• Long-term assets will not have any salvage value

• Income tax rate is pegged at 30%

• 50 % of the net income will be withdrawn by the partners every year.

• Taxes withheld for the month of December will be remitted on the

following year (January).

 • Sales revenue will increase by 5% due to increase in pricing of the

product/service

Start-up Costs and Funds

The General Partners will invest their own personal savings amounting to

PHP 6,300,000.00 each in the form of cash and personal loans for a total of

ordinary share capital of PHP 6,300,000.00. Indicated below are the names of the

partners, their respective contributions and number of shares owned.

Partners No. of shares owned Capital

Abrin, Kate Hylene P 1 600,000

Alzate, Roger S. 1 400,000

Bagni, Abegail B. 1 600,000

Espinoza, Angeline M. 1 400,000

Fabro, Zayin 1 400,000

Manzano, Trixie Ann L. 1 2,500,000

Oliveras, Andrea 1 400,000

Tingco, Rosalinda 1 600,000

Urbiztondo, Engilbert 1 400,000

TOTAL 6,300,000

Table 21, Start-up Costs and Funds.

 CAFÉ AROMAGIC

FINANCIAL RATIOS

2023 2024 2025 2026 2027

Return of Investment

Net Income 872,506 895,945 1,070,101 1,259,462 1,465,287

Investment 6,300,000 6,300,000 6,300,000 6,300,000 6,300,000

ROI 0.14 0.14 0.17 0.20 0.23

Payback Period 0.14 0.40 0.67 0.95 1.30

Investment 6,300,000 6,300,000 6,300,000 6,300,000 6,300,000

Cumm. Cash Flow 871,596 2,532,602 4,195,165 6,007,801 8,173,527

Rate Of Return of Assets

Net Income 872,506 895,945 1,070,101 1,259,462 1,465,287

Total Asset 3,310,786 5,069,786 6,028,386 7,028,386 8,269,326

ROA 0.26 0.18 0.18 0.18 0.18

Total Current Asset

Current Asset 1,561,186 2,680,186 3,638,786 4,639,015 5,879,726

Total Asset 3,310,786 5,069,786 6,028,386 7,028,386 8,269,326

Table 22, Projected Financial ratios

 CAFÉ AROMAGIC

INCOME STATEMENT

2023 2024 2025 2026 2027

Gross Revenue 6,002,780 6,483,002 7,001,643 7,561,774 8,166,716

Less: Sale Tax 780,361 780,361 842,790 910,214 983,031

NET SALES 5,222,419 5,702,614 6,158,852 6,651,560 7,183,685

Total Revenue 5,222,419 5,702,614 6,158,852 6,651,560 7,183,685

Cost of Sales 1,749,908 1,910,385 2,063,216 2,228,273 2,406,535

GROSS PROFIT 3,472,908 3,792,256 4,095,637 4,423,288 4,777,151

Labor 716,625 741,707 767,667 794,535 822,344

Telephone 30,000 31,050 32,137 33,262 34,426

Supplies 35,000 36,225 37,493 38,805 40,163

Utilities- Light &power 120,000 124,200 128,547 146,351 151,473

- Water 21,600 22,356 23,138 23,948 24,786

Repair & Maintenance 132,000 136,620 141,402 146,351 151,473

Proffesional Fee 80,000 82,800 85,698 88,697 91,802

Total Semi Variable 418,600 433,251 448,415 464,109 480,353

Total Controllable Cost 1,135,225 1,174,958 1,216,081 1,258,644 1,302,697

MNGR.CONTRIBUTION 2,337,683 2,617,298 2,879,555 3,164,643 3,474,454

PROFIT

Marketing 180,000 186,300 192,821 199,569 206,554

Depreciation & 437,400 597,400 597,400 597,400 597,400

Amozataztion

Rent 360,000 360,000 360,000 360,000 360,000

Taxes & Rent 23,846 44,514 48,075 51,921 56,075

Insurances 75,000 81,000 87,480 94,478 102,037

Bank Charges 25,000 27,000 29,160 31,493 34,012

Miscellaneous 50,000 54,000 58,320 62,986 68,024

Total Fixed Costs 473,846 506,514 523,035 540,878 560,148

Total Operating Expenses 2,226,471 2,465,172 2,529,337 2,596,419 2,666,799

UNIT CONTRIBUTION 1,246,438 1,327,085 1,566,300 1,826,797 2,110,352

(LOSS)

Interest Expenses - 33,014 26,309 19,295 11,960

Net Income 1,246,438 1,294,071 1,539,991 1,807,501 2,098,392

Income Tax Effect 373,931 398,125 469,890 548,039 633,106

NET OPERATING 872,506 895,945 1,070,101 1,259,462 2,098,392

PROFIT

Depreciation 437,400 597,400 597,400 597,400 597,400

OPERATING CASH 1,309,906 1,493,345 1,667,501 1,856,862 2,062,687

FLOWS

Table 23, Projected Income Statement

CAFÉ AROMAGIC
BALANCE SHEET
2023 2024 2025 2026 2027

Asset

Current Assets:

Cash and cash equivqlents 871,596 1,663,006 2,532,159 3,475,641 4,697,886

Inventory 479,590 867,180 926,627 968,373 1,011,840

Prepared Expenses 210,000 150,000 180,000 195,000 170,000

Total Current Assets 1,561,186 2,680,186 3,638,786 4,639,015 5,879,726

Propertyand equipment 2,187,000 2,987,000 2,987,000 2,987,000 2,987,000

Accumulated (437,400) (597,400) (597,400) (597,400) (597,400)

Depreciation

Total Assets 3,310,786 5,069,786 6,028,277 379,721 322,159

Liabilities and sharehoders equity

Accounts payable 179,100 257,155 286,613 170,043 100,146

Accountts Expenses 50,000 35,000 40,000 50,000 55,000

Current Portion of Long 145,959 152,664 159,678 167,013

Total Current Liabilities 229,100 438,114 479,277 379,721 322,159

Long Term Debt _ 654,041 501,377 341,699 174,686

Total Liabilities 229,100 1,092,155 980,654 721,420 496,845

Shareholders equity

Common Stocks 100,000 100,000 100,000 100,000 100,000

Equity, Beg 2,109,180 - - - -

Retained Earnings 2872,506 3,877,631 4,947,732 6,207,195 7,672,481

Total Shareholders 3,081,686 3,977,631 5,047,732 6,307,195 7,772,481

equity

Total Liabilities and 3,310,786 5,069,786 6,028,3866 7,028,615 8,269,326

Shareholders equity

Table 24, Projected Balance Sheet Statement

CAFÉ AROMAGIC
STATEMENT OF CASH FLOW
2023 2024 2025 2026 2027

Cash Flows from Operating Activities

Net Earning 872,506 895,945 1,070,101 1,259,462 1,465,287

Adjustments to reconcile net earnings to net cash provided by operating activities

Depreciation and 437,400 597,400 597,400 597,400 597,400

Amortization

Changes in operating assets and liabilities:

Inventory (770,410) (387,591) (59,446) (41,746) (43,467)

Prepaid Expenses (210,000) (60,000) 30,000 (15,000) 25,000

Accounts Payable 179,100 78,055 29,458 (116,569) (69,898)

Accrued Expenses 50,000 15,000 5,000 10,000 5,000

Net cash provided 558,596 1,228,809 1,612,513 1,693,547 1,979,322

by operating

activities

Cash flows from 2,187,000 1,058,427 597,400 597,400 597,400

investing activities:

Purchases of

property and

equipment

Net cash used in 2,187,000 1,058,427 597,400 597,400 597,400

investing activities

Cash flows from financing activities:

Proceeds from long- - 800,000 - - -

term debt`

Repayments of long- - (178,973) (178,973) (178,973) (178,973)

term debt

Repayments of - - 33,014 26,309 19,295

short-term debt

Net cash provided - 621,027 (145,959) (152,664) (159,678)

by financing

activities

Cash and cash 2,500,000 871,596 1,663,006 2,532,159 3,475,641

equivalents at

beginning of year

Cash and cash 871,596 1,663,006 2,532,159 3,475,641 4,697,886

equivalents at end

of year

Table 25, Projected Cash Flow Statement

 CHAPTER VI

SOCIO- ECONOMIC STUDY

Cafe Aromagic is a proposed coffee shop situated in a commercial. The cafe aims to

provide customers with high-quality coffee and a relaxing atmosphere where they can

enjoy their drinks and socialize with friends. This feasibility study will evaluate the

economic and social viability of the cafe by analyzing factors such as employees,

customers, the environment, and the government

EMPLOYEE

The success of any business greatly depends on its employees. In the case of Cafe

Aromagic, it is crucial to have a well-trained and motivated team to ensure the delivery of

excellent customer service and quality products. The cafe will have a staff of 9

employees. Most of the employees and laborers in Binalonan were residents, thus they

will profit from the revenue they make to cover their living expenses.

CUSTOMERS

Consumers are the soul of every business, and the cafe's ability to attract in and

keep loyal customers will be key to its success. The target market for Cafe Aromagic

includes office workers, students, and tourists visiting the city. The location of the cafe in

a busy commercial area and its proximity to offices and educational institutions make it

an ideal spot for these target customers.

ENVIRONMENT

The environment is an important factor to consider in the feasibility of any project. Cafe

Aromagic strives to promote an eco-friendly environment by using sustainable practices

in its operations. These practices include using recyclable materials, proper waste

management, and sourcing coffee beans from suppliers who engage in ethical and

sustainable practices.

GOVERNMENT

The government's role in the feasibility of Cafe Aromagic is crucial, as it has the

power to create an enabling environment for businesses to thrive. One of the main areas

where the government can support the cafe is through the provision of necessary licenses

and permits. The process of obtaining these permits can be time-consuming and

expensive, which can affect the project's feasibility.

Additionally, the government's policies on labor, taxation, and food safety

regulations can also impact the cafe's operations. Therefore, it is essential to ensure

compliance with all government regulations to avoid any legal issues that may hinder the

cafe's success.
 CHAPTER VII

SUMMARY AND CONCLUSION

Aromagic Cafe, a quaint coffee shop located at McArthur. Highway,

Canarvacanan, Binalonan Pangasinan has been a delightful addition to the local coffee

scene. Aromagic Cafe will operate partnership, Aromagic Cafe will provide our

customers yhe world`sbest coffees with excellent service at a price that is fair to the cafee

and our customers, Aromagic Cafe interior design focuses on cozy and aesthetic to keep

up with trend and to attract customers. Our shop is 238 sqm with drive thru. The

advertising promotion we haave flyers and accounts on tiktok, facebook, and instagram.

The Aromagic Cafe will rent We`ve looked at the cafe`s succes over the last year,

including its special offerings, client feedback and fin ancials. Because of its distinctive

aromatic coffe bleends, inviting atmosphere, and warm service. Aromagic Cafe has

swiftly developed a loyal following of patrons. Revenue at the cafe has consistenlly risen,

a sign of its rising notoriety.

However, there is still room for growth and progress in terms of up holding

consistent quality and expanding the menu. Apart from the food and drink, the

atmosphere in cafe is what sets it apart. The staff are friendly and attentive, always ready

to strike up a conversation or recommend their favorite menu items. Whether it`s a quick

pit stop for your daily caffeine fix or a place to relax and connect with friends, our coffee

shop provides a welcoming haven for coffe connoisseurs and casual drinkers alike.
Conclusion

The conclusion of Cafe Aromagic Business Feasibility by analyzing the

competitor, operational aspects, marketings aspects and financial aspects, can be

concluded that Cafe Aromagic business is profitable and therefore feasible to operated.

This feasibility study is useful for the next generation of students and the investors, and

company management to improve our economy. One of the most important aspects of

starting a business is choosing the right location, along with having reliable sources of

product supply to meet the expanding consumer demand. The partnership business

structure is the best suitable for restaurants. To start up Café Aromagic, the adequate

amount is Php 6,300,000. Furthermore, that this study, which includes time and motion

studies, provide consistency in tastes and manufacturing efficiency. Additionally, the café

will gain from creating a unique product range and offering a characteristic flavor for

some of its beverages.