Lyceum of the Philippines University Cavite

College of Business and Administration

KAPE PASTE

A Business Plan Submitted

In Partial Fulfillment of the Requirements

in Principles of Business Operation 2

Submitted to:

Mrs. Jonna C. Macapanas, LCB, MBA

Professor, PBON02B

Submitted by:

De Vera, Vinz Cathlee D.

De Villa, Jewel Rey M.

Emelo, Althea G.

June 2023
I. Title of the Business: Kape Paste

II. Objectives:

Kape Paste has poured its own drive and commitment across the summit of its intimate

triumph. To ascertain reality, the business firm has aimed the following objectives:

 to be the most anticipated coffee shop around the outskirts of the community serving the

indulgent coffee taste accompanied by the art of book and literary fondness;

 to brew a peculiar taste of local coffee sensation within the society;

 to dole out a cathartic feeling of satisfaction for the irresistible cravings of all the coffee

lovers bypassing around;

 to handover book lovers a quality time with their preferred books on a free basis;

 to reacquaint the vast dominion of native coffee cultivated by our dear local coffee

farmers in the country;

 to embark the finest recipe of original homemade bread delicacy perfectly paired with

coffee;

 to appreciate our homemade coffee;

 to reenergize the dormancy of one’s spirit and drive;

 to establish a soothing establishment as the poignant stopover for those who seek for

comfort and convenience away from the busy world, and;

study room for a multiple market communities.

III. Vision:

Kape Paste is a haven for all the market which is deeply rooted in sipping a plethora of

coffee variants. It aims to skyrocket the leaderboard as to be the no. 1 leading coffee shop

business existing in the city/ municipality outsmarting the big-time competition on the marketing

field along the coffee industry. With the continuous progress it gradually partakes, Kape Paste

never skips an eye to grab a luminous opportunity to extend its enterprise across the province,

regions, or better yet, serving coffee taste nationwide. Meanwhile, Kape Paste also visions to

expand its business by dealing transactions overseas. The enterprise is open for potential

exportation of its merchandise with the initiative to introduce the Filipino culture emblem by

means of its coffee. Furthermore, the enterprise signifies its chivalrous hope for the citizens to

finally patronize the highly standardized yet underrated local coffee beans nourished by our

dignified fellowmen here in the Philippines. For due time, the society will nod a head for a

considerable ‘taste’ of coffee preference.

IV. Mission:

Kape Paste, similar to any other existing businesses, was built to generate a grossing

current of cash flow statement, and the utmost return of investment for the benefit of the

stockholders. It focuses on the accumulation of ample monetary repercussions which can

acquire 30% increase on its sales for the 1 month since its launch. This is to pool funds for the
st

extensive growth and expansion of the business, which can be actuated by designating franchises

in separate outlets nationwide. However, it does not merely rely on internal pleasure but rather to

fill the dripping gap of the absence of coffee shops nowadays. The business has targeted to

amend the abysmal disappearance of both book and coffee lovers in a mutual venue. Our

ergonomic location and excellent customer service should summon a steady repeat customer

base. Once more, the business is in keen service of delivering a local coffee taste for the

Filipinos who nowadays often neglect and underappreciate it. It is more of reliving the coffee

aroma that tastes like home, feels like home. Furthermore, this establishment shall set a

meaningful hangout canteen for those who have clandestine meetings, want a silent sanctuary

where they can read, study, drink, and eat at the same time, and for those who want to take a

break and restart their life by availing a ‘me’ time with their coffee. For a central point, the

business sculpts itself as a minute enterprise that awakens the spirit of somebody’s dormant

passion- it all stamps a difference.

V. Introduction:

For the first quarter of 2023, coffee (green coffee beans) production was estimated at 9.42

thousand metric tons, edging up by 1.3 percent from its output for the same quarter of 2022 of

9.30 thousand metric tons, according to the latest data garnered by Philippine Statistics

Authority (PSA). As a matter of fact, the market is expected to grow annually by 5.69% (CAGR

2023-2025). This implies a long-term increase in coffee consumption over the years.
Undoubtedly, this could be a great opportunity to initiate a coffee shop here in our local

community. Introducing, Kape Paste, the newest offer in the flabbergasting dimension of the

coffee industry. Kape Paste is a go-to coffee shop establishment wherein delivering the highest

quality of local coffee is in our foremost priority. Basically, it is close to a custom café that we

have already seen on such places. Nevertheless, its product differentiator is that the coffee it

merchandises is the original coffee beans cultivated in our own country. Perhaps, it is our time to

love our own! Consequently, we plan to serve our target market (i.e. the students and/or the

youth) the grandest and the most stupendous coffee experience that they are desperately

searching for on the lengthiest span ever. We, Vinz Cathlee D. De Vera, Jewel Rey M. De Villa,

and Althea G. Emelo, as the owners of Kape Paste, issue assurance of applaudable customer

service, and delectable food offerings and beverages. Our menu urges the market to patronize

more of what’s our local area is truly proud of. Our team is ought to pave the way of introducing

the coffee beans freshly harvested from the highest plains of the Philippines. From the direct

analysis of our conducted market research, we fathom the notion that gourmet coffee wins the

heart of most customers of diverse demographics. Hence, we kept an eye focused on

merchandising gourmet coffee (Arabica beans) that was cultivated locally by our own sedulous

farmers (although more of these were also served). Aside from the drinks, we pair this coffee

with Filipino bread and pastries such as ensaymada, pandesal, monay, Spanish bread, and pan

de coco, among others to maintain the Filipino spirit hovering around the store. To elevate the

limits, we will designate books of all types (e.g. magazines, novels, educational books, comics,

newspapers) for them to fully feel that they are the main character of that moment. Not only that

but also we placed breaking rapid Wi-Fi outlets on the coffee house for those who are in their

meetings or those who need it for academic purposes. For the interiors, we will display books
scattered around the room; some hang on the wall, and others were kept on the shelves.

Ornamental plants such as monstera, snake plant, and dieffenbachia will also be observed beside

every corner of the room. Over and above, we estimate a seating capacity for about 25-40

persons simultaneously. For those who cannot afford to personally visit the store, our company

assigns a delivery rider to hand them their favorite coffee with a minimal effort. For great

measures, Kape Paste clings to the attainment of its purpose of letting its customers have their

break while sipping warm coffee with bread accompanied by it, and to wake up not only their

physical body but their sleeping drive and passion to get through with their dreams. Whenever

we feel so dull and weary, perhaps it could merely be wiped off by a single coffee. When life

gives you an insulting whip, always thwack it with a single sip.

VI. Executive Summary:

It is within our consciousness that coffee is a superb body booster that energizes our

sleeping physiological cognition, with the help of a chemical substance named ‘caffeine’. This

truly slaps our dormancy stamping an impulsive stimulus to kick start the day. In the

contemporary era, we are all bewildered about the conformity of coffee as our ‘wake-up

stimulator’ of our physical body. However, something is still at its hollow point. Now that we

have a coffee that wakes up our physiological body, have we ever thought about a coffee that

wakes up our inner spirit- a coffee that reminds us what we used to fight for and why we choose

to fight in the first place? A coffee that hugs us tightly after a long tiring day? Kape Paste is a

perfect fortress for everyone out there from where convenience simmered with tasteful

satisfaction is located. It is a fantabulous coffee house that serves one of a kind coffee experience
from the roasted local coffee beans cultivated by our finest farmers in the country. Consequently,

these beans are delicately brewed to concoct a preferable taste that you will surely look for time

and time again! Moreover, the company primarily aims to introduce the Filipino-made coffee

that is often undermined by many at this time and age. In addition, the coffee house wherein

located near a school institution, is designed to be the ‘spontaneous hangout canteen’ of each

individual who planned to meet, study, or merely recreate. Financially speaking, the store

expects a 30% increase in its sales for the first month since its launch. The business, on one

hand, also visions itself to create a multitudinous set of branches and franchises nationwide and

to export its goods all over the continents. At the end of each period, Kape Paste aspires to instill

the value of embracing our own products than any other foreign commodities that are

comparatively more loved by everyone. As a Filipinos, part of our culture is to sip a cup of

coffee whenever we want. Hence, accepting our own harvested coffee is signifying the dying

culture we Filipinos used to conserve. On the other hand, the 2000 square meter establishment

offers a variety of menus whereas gourmet coffee may be their best seller. Apart from this,

homemade recipes for Filipino pastries are also sold. The prices of the aforesaid premises span

for as low as Php. 9.80- 84.00 only. For the management section, a total of nine (9) workers are

needed to create a balance designation of work labor: 3 (three) baristas, one (1) full-time, two

(2) part-time, one (1) delivery rider, two (2) counter attendants, one (1) dishwasher, and two (2)

waiters/waitresses. Nonetheless, as the owners of the café, we may function as the managers of

these departments as well. Subsequently, the initial investment for this business to be realized is

projected to be Php.73,890.00. Likewise, the business is expecting a gross flow of sales

amounting to Php.5, 838.00 with Php.3, 720.00 as its expected daily expenses. From this, the net

income per day of Kape Paste is equivalent to Php. 2, 118.00. Going over, the cost of equipment
will be deducted from the net capital. Such equipment are the following: regular coffee grinder,

coffee brewers, decanters, airpots, satellite servers, frappe and smoothie blenders, rolling pin,

mixing bowl, chef’s knives, baking pan, and more. On the same lane, raw materials such as ice,

coffee beans, soy milk, granulated white sugar, ground coffee, flour, eggs, lard, yeast, and sugar,

among others are also taken from the investment. Lastly, to create brand awareness, the business

may use of its social media accounts on the Internet since everybody is hooked on browsing on

it. To flare up the excitement, other promos similar to name coding, book equivalents, and

receipt collection are given incentives. On a final note, Kape Paste definitely wants only the best

for its customers. Hence, keen implementations of business ethics and sanitary measures are

strictly overviewed by every personnel within the company to ensure a high-quality standard of

goods and services. Perhaps, it is the absolute time for our own local coffee to dominate the

country, and the world. With the purpose of pushing our local products to the limelight, merely a

sip of coffee is a punch of a might. In the name of our wailing motherland, we used to conserve

and to hone. Perhaps, the better claim we shall do is to love our own!

VII. Departments/Sections:

A. Management Section

1. Manager: For a smooth-flowing operation, Kape Paste requires a financial

manager, operations manager, marketing manager, and production manager. To reduce the cost

of salaries, Vinz Cathlee De Vera, Jewel Rey De Villa, and Althea Emelo might each be given

the job of financial manager, operations and production manager, and marketing manager,

respectively.
 2. Workers: The manpower needed in the business is the following: 3 (three)

baristas, one (1) full-time, two (2) part-time, one (1) delivery rider, two (2) counter attendants,

one (1) dishwasher, and two (2) waiters/waitresses, for a total of 9 workers aside from the

manager/s.

B. Marketing Section:

1. Product Description: According to the beforehand analysis, gourmet coffee

tops the market research. Our own version of gourmet coffee is dark to light brown in color,

dependent on the level of bitterness or sweetness the customer wants. Among this range,

bitterness or creaminess of the coffee are neither exaggerated nor overweening. It flourishes an

astounding flowery, nutty and herby aroma in a porcelain or glass cup. Frappe smoothie, only

optional, may be seen atop the coffee. Add-ons such as malt, nuts, berries, chocolate, cookies,

and cream are able to purchase for the enhancement of one’s coffee experience. For the bread

and pastries, we assure that they were all freshly baked, hot, light brownish in color, and much

crunchy. In addition, they are tender and moist in texture. Consequently, their shapes are neither

big nor small enough to partake. If one desires to cut them into bite-size pieces, bread knives,

and forks are available in the store; just only ask for the assistance of the authorized personnel

inside. For overall specifications, all are delicately brewed and baked under careful process and

circumstances of the blessed hands.

2. Price: The price of the coffee offered in the store, ranging from 49-84 pesos,

varies according to the type of drinks and their sizes. Gourmet coffee of 8 ounces is priced as 49

pesos. Meanwhile, for the 10 ounces, its cost drops to about 63 pesos. Also, eighty-four (84)

pesos is equivalent to 15 ounces. For the prices of the bread, 9.80-28 pesos were highly
anticipated. For as low as Php. 9.80 (3 pandesal) up to Php. 28.00 (Sponge cake), you are all

covered. For the types of payment, we accept cash, credit cards, G-cash, and PayPal modules.

3. Selling Location: We decided to locate the store, Kape Paste, in a place where

our target market usually roams. Since our target market is the student, professionals, and the

young at heart, we decided to establish it nearby school. We believe that a scholastic institution

is our perfect option to forecast a greater return of investment and profit accumulation. School,

without a doubt, despite of its significant purposes, is indeed perplexing, exhausting and stressful

to deal with on more than eight hours a day and five days a week. After classes, many will plan

to hang out and prefer to take a break from everything by visiting the store. On the other hand,

when students have no time to take their breakfast, Kape Paste is the right venue where they can

fill their ailing stomach with impeccably served delicacies early in the morning. Moreover, not

only the students, staffs and faculty members will benefit from the store, too. Over and above,

the coffee house is a 2000 square meter room for lease incorporating its indoor and outdoor

capacity.

4. Promotional Activity: Despite from the fact that we are the newest challenger

in the inclusive industry, we will never be discouraged of creating brand awareness on both the

mass and the target market along with the prominent and benchmarked brands around. To

promote the business, we might use our social media accounts wherein we believe that the

millennials, as our target market, incur a lengthy time of browsing in the social media compared

to the traditional print media. We will take this golden opportunity of mass exposure to the

general public. Pleasing videos and montage, and well-created images are our task to disseminate

on the platform. We make use of the “Fear-appeal method” whereas we let them realize the

problem and advertise our product as the solution to the further predicament. After all, nothing
will be severely lost if we display posters and tarpaulins on the street walls for side promotion

and will act as a constant reminder that our shop exists- that we are ready to cater their needs.

Furthermore, fun and unique promotional activities await for our loyal customers. With 10

receipts collected from the shop, they will be given a free smoothie. In addition, name letter

coding is also implemented to entice customer purchase pattern. For a day, a letter that

corresponds to the first letter of the customer’s name gives them cash discount on a single

purchase of any product exclusive for that day. Suppose that the coded letter is “R”, all the

customers having the first letter of the code are gifted with 30% discount (e.g. Ruchelle, Raven,

Romelo). The random code is released every Fridays of the month. Lastly, if you donate 3 books

to the shop, you will get a free purchase of goods for 2 weeks! Every day, you will get an

allowance of maximum Php. 200.00 of all products, bread and beverages.

C. Finance Section:

1. Capital Amount: For the materials and equipment needed, it could cost a total

of Php. 56,890.00. On the meantime, the cost for supplies from both coffee (Php. 10,000.00) and

from the bread (Php. 7,000.00) is amounted into Php. 17,000.00. Altogether, the net capital

amount of Kape Paste is summed up as Php.73,890.00.

2. Expected Daily Sales: The total expected daily sales of Kape Paste is amounted

to Php.5, 838.00.

3. Expected Daily Expenses: The total expected daily expenses of Kape Paste is

amounted to Php.3, 720.00.

4. Income per Day: The net income per day of Kape Paste is equivalent to Php. 2,

118.00.
Projected Daily Revenue

Kape Paste

Type Cost Mark-up Selling Projected Total Cost Projected

per (40%) Price Volume Sold Revenue

Unit (Daily)

Gourmet (8 35.00 14.00 49.00 40 1,400.00 1,960.00

oz.)

Gourmet 45.00 18.00 63.00 30 1,350.00 1, 890.00

(10 oz.)

Gourmet 60.00 24.00 84.00 20 750.00 1, 680.00

(15 oz.)

Pandesal 7.00 2.80 9.80 20 140.00 196.00

Sponge 20.00 8.00 28.00 4 80.00 112.00

Cake

D. Production Section:
 1. Equipment: Kape Paste will never function foremost with the absence of such

necessary paraphernalia. The following equipment are those primary machineries for the coffee

house’s rearmost function: regular coffee grinder, coffee brewers, decanters, airpots, satellite

servers, frappe and smoothie blenders, iced tea dispensers, reach-in refrigerator, display case,

compartment sink, frothing pitchers, measuring cups and spoons, syrup pumps, silverware,

utensils, plates, microwave oven, measuring cups and spoons, wooden spoons, rubber spatula,

pastry brush, whisk, kitchen scissors, rolling pin, mixing bowl, chef’s knives, and baking pan.

2. Materials: Kape Paste serves nothing but the best for its dear guests and clients

by means of dispensing high-quality products critically assessed and manufactured from raw

materials to an end product. The following are the needed raw materials for the production

process: ice, coffee beans, soy milk, granulated white sugar, ground coffee, water, chocolate,

nutmeg, vanilla syrup, caramel syrup, coffee flavors, jigger brewed espresso, flour, eggs, lard,

yeast,, sugar and cream.