CAF PARADISE YOUR BEST BUDDY

BUSINESS DESCRIPTION
Caf Paradise is a coffee bar for coffee addicts, a dreamland to every person
who escape the busy and stressful life, a place of friendship and a reading
area all at the same time. Caf Paradise will offer the best coffee ever that
will be complimented with pastries and books including wifi where customers
can read and enjoy their stay and visit.
MISSION
The mission of the business is to offer the finest selection of coffees, satisfy
customers needs and wants for high quality of coffee, delicious and
nutritious pastries and excellent service and make its best effort to create a
unique place where customers can socialize with each other in a comfortable
and relaxing environment. We will be in the business of helping our
customers to relieve their daily stresses by providing piece of mind through
great ambience, convinient location, friendly customer service, and products
of consistently high quality.

VISION
The business vision is to be the Cafe preference for Tuguegarao Citys
shopping customers and students.

PRODUCTS AND SERVICES

The main activity of the company is the operation of a coffee shop. Business
activities include purchasing, storing, preparing, selling and serving pastries,
small salads and sandwiches to our valued customers. We expect to serve
3,500 and above customers dine-in and take-out per month.
Our main point of differentiation from other coffee shops in the area is that
we serve fresh, light and healty products each day as well as develop new
menu items to meet the changing needs and tastes of people who care
about what they drink and eat. The high quality of coffee that simply offers
good value for money at highly competitive prices.
The menu offerings will be supplemented by free books and magazines that
customers can read inside the coffee bar including browsing in the internet
through wifi. The menu of the coffee bar will be built around espresso-based
coffee drinks such as lattes, mochas, cappucinos, etc. Each of these coffee
beverages is based on a shot of espresso, which is prepared in the espresso
machine by forcing heated water through ground coffee at high pressure,
such espresso shots are combined with steamed milk and/or other additives
like cocoa, caramel, etc.

The coffee bar is open 24 hours from Sunday to Monday. The coffee bar
comfortably seats 36 persons.
The chart below outline the total market potential (in number of customers)
Market Analysis

Office workers
Students/Faculty
Teenagers
Others

START-UP BUDGET
MONTHLY EXPENSES
Salaries and wages
Rent/lease
Advertising & promotion
Delivery expense
Supplies
Telephone
Other utilities(electric, gas,etc.)
Insurance
Maintenance
Legal and Professional Costs
Miscellaneous
TOTAL

PROJECTED MONTHLY EXPENSES

70,000
10,000
5,000
1,000
50,000
1,000
30,000
500
5,000
20,000
5,000
P197,500.00

SALES ANALYSIS AND FORECAST

Our sales analysis has revealed that we can expect an average of 3500 and
above customers per month. Our sales forecast is based on an average
industry selling price of 85 to 120 per order depending on the size(i.e BabyP85.00, Mom- P100.00 and Dad- P120.00).

Our Sales Forecast by quarter is shown in the figure below.

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Quarter 1

Quarter 2

Quarter 3

Quarter 4

LOCATION
The location selected for the coffee bar concept is in Tuguegarao City
because of its great location with the highest number of shoppers and
students passing which is supported by a large and growing local population.
There are limited number of coffee bar within the area which successfully
operated. The outlook for the future of Tuguegarao City is exceptionally
positive and the most progressive area in Cagayan Valley.

TARGET MARKET
There is a substantial population growth in the area as residential
development continues and commercial development commences.
4

Caf Paradise customers are the passing shoppers and students of all ages
who enjoy a fine coffee (dine-in and take-out) and a healthy, value-for-money
pastries and salads. The majority of the general public in the shopping center
were families and young singles. The cafe will make it particularly easy for a
family and friends to enjoy a chat while drinking coffee.
Caf Paradise will cater to those who wants to get their daily cup of greattasting coffee in relaxing atmosphere. Such customers vary in age, altough
our location is close to the Universities where most of our clientele will be
students and faculty. Our market research shows that these are discerning
customers that gravitate towards better tasting coffee. Furthermore, a lot of
students consider coffee bars to be a convinient studying or meeting location
where they can read or meet with peers without necessity to pay cover
charges. For us, this will provide a unique possibility for building a loyal client
base.
OBJECTIVES
1.
2.
3.
4.

Become selected as the Best Coffee Bar in the Philippines;

Turn in profits from the first month and succeeding operations;
Maintain continuity of customer relationships;
Increase the number of customers and average sales size.

MARKETING STRATEGY
Product
Healthy and light meals are the key point of differentiation for the business
because the coffee bar has the capabilities and flexibility to develop new
menu to meet the changing needs and tastes of the customers.
Price
We propose to offer high quality food and services at a price comparative to
our major competitors. We will meet the market on price to retain market
share if we need to.our clientele have a medium to high disposable income
and seek high quality products and hood service, pricing will reflect the value
of our products and services.
Place
Customers access and purchase products and services through our batr
front. The location of the cafe is at the wsetern partof Tuguegarao City. It is
situated on the main area near the major supermarkets and universities.
Promotion
We will be undertaking a range of promotions of thye cafe. These promotions
will include offers of discounted meals and coffee, but will only run for two
weeks. We estimate that this will be sufficient time to allow a smooth
transition to ourselves as owners.

Our regular advertising will consist of shopfront, a frame advertising boards,

monthly newspaper advertising and a three monthly flyer drop in barangay
areas. As most of our business will be passing trade, shop front signages will
be bright and appealing. We will develop and offer a loyalty card scheme to
increase repeat business.Word of mouth advertising is very important and
the best advertising that we will be providing is the quality of our products
and
services.
Physical Evidence
The acfe is fully fitted out with table, chair and decor that projects the deisre
image of quality and value as well as aligns with CAFE PARADISE- YOUR
BEST BUDDY. This also applies to uniforms for the staff. The cleanliness of
the premise, tables and chairs will be mmaintained to a consistently high
standard at all times.

SALES STRATEGY
Two thousand flyers will be distributed in the adjacent neighborhood,
university campuses, malls and in selected office within two weeks prior to
the opening of the Cafe Paradise. . subsequently, free postcards with Cafe
Paradise endorsement will be printedto increase the company visibility
among the patrons.

STORE
Starbucks
Coffee Bean
Others
Caf Paradise

BRANCHES

Caf Paradise
Starbucks
Coffee Bean
Others

TARGET BUSINESS STORE PROPOSAL

1st-3rd Year
3 Stores nearby Universities and/or Business area
4th Year
3 Stores located in Luzon Area (Manila, Palawan and Baguio)
5th Year
3 Stores located in Visayas and Mindanao Area (Cebu, Cagayan De Oro and
Davao)
CAF PARADISE TREND FORECAST FOR FIVE YEARS
10
9
8
7
6

Cafe Paradise

Starbucks
Coffee Bean

Others

3
2
1
0
Year 1

Year 2

Year 3

Year 4

Year 5

SWOT ANALYSIS
STRENGTH
STRATEGY
Sales and Marketing- currently holds Maintain and grow market share by
market share in City
improving marketing and promotions
both within and outside Tuguegarao
City
Location is within the Universities Provide
quality products and
and Regional Centers
services to generate word of mouth
endorsements and repeat business
Skillsknowledge,
skills
and Train and develop stafeff to deliver
experience of owners/managers in superior quality of products and
running successful caf businesses
services
Financial- owners access to financial Fund training, marketing and develop
resources and strong cash flow from new menu items
operations
WEAKNESS
STRATEGY
7

Location- capacity due to floor space

Investigate the option of negotiating

acquisition of additional floor space
from other shops
OPPORTUNITY
STRATEGY
Economy- well positioned to take Expand marketing and promotion and
advantage of a strong economy, low maintain prices at current market
interest rates and high disposable levels
income
Social Patterns- Population growth Increase advertising and investigate
and increased standard of living
potential to increase floor space
Physical Factors- improved public Increase
advertising
in
the
transport and infastructure
surrounding areas to attract new
customers
THREATS
STRATEGY
Competitors- other coffee shops Providing good services to the
within the area
customers