JUAN KAPE

A Feasibility Study Presented to the

Strand of the Accountancy, Business and Management
Higher School ng UMak

By

Baribar, Abby
Bregias, Carl Joshua
Cordez, Vanessa Julia
Engada, Arlene
Espino, Kyla Mae
Evia, Rochelle
Lopena, Khaejae
Serrano, Ester Joy
Vicente, Raidenhile Mae
Introduction
Global History

According to Britannica (2021), café, also spelled cafe, small eating and drinking

establishment, historically a coffeehouse, usually featuring a limited menu; originally

these establishments served only coffee. The English term café, borrowed from the

French, derives ultimately from the Turkish kahve, meaning coffee.

The introduction of coffee and coffee drinking to Europe provided a much-needed

focus for the social activities of the sober. The first café is said to have opened in 1550

in Constantinople; during the 17th century cafés opened in Italy, France, Germany,

and England.

During the 200 years after the mid-17th century, the most famous coffeehouses

of Europe flourished in London as ready points for news, discussion, and faction.

Coffeehouse proprietors competed with each other for supplies of both Whig and Tory

newspapers; during this time the business of buying and selling insurance, ships,

stocks, commodities, and occasionally even slaves was disposed of in coffeehouses; a

man of letters, an actor, or an artist might perform or declaim for his coterie in his

favorite coffeehouse; and coffeehouses became informal stations for the collection and

distribution of packets and letters. By the 19th century, the daily newspaper and the

home post had displaced these functions.

About the same time, as painting and literature attest, the French café

and restaurant were at their zenith as gathering places for intellectuals and artists. The

wealthier gourmands among the intelligentsia might dine in Paris’s high-toned

restaurants, as Honoré de Balzac dined at the Véry, while the more modest café or

bistro harboured the “Bohemian” artists. The café continued to be an important social

institution in France throughout the 20th century.

During the late 20th century, as espresso and other specialty coffees became

popular in the United States, many restaurants specializing in coffee opened.

Local History

As stated in the Philippine Coffee Board’s official website (2021), the Philippines

is one of the few countries currently producing the four varieties of commercially-viable

Arabica, Robusta, Liberica, and Excelsa. Philippine Liberica is known locally as

Barako/Baraco, a coffee bean that produces a distinctively robust and powerful cup.

The bigger cherries and beans are a staple in the Philippine coffee scene, primarily

grown in the provinces of Batangas and Cavite.

The story of Philippine coffee is akin to a rich and aromatic brew, blending myth

with historical facts and presenting a colorful journey dating back to the 1700’s. One

famous myth relates how a Franciscan monk brought three gantas (approximately 2

kilos in weight) of Arabica beans to the country, planting them in his garden after which

the coffee trees were transplanted to other areas in the central island of Luzon.

While there is a lack of historical data tracing the actual details of when coffee

first came to the country, it has been surmised that Arab traders or Muslim settlers may

have brought the beans during their trade routes or pilgrimages.

 By the 1800s, coffee trees were already found in the northern city of Lipa,

Batangas and the province of Bulacan. Its propagation was encouraged by Augustinian

friars, who furthered the care and cultivation for these trees.

Coffee plantations flourished under Spanish colonial rule. As documented in the

book Twenty Years in the Philippines, Paul Proust de La Gironiere recounted his

agricultural efforts, that included coffee cultivation. In 1828, the Spanish Real Sociedad

Economica de Amigos del Pais de Pilipinas, offered a prize to anyone who would plant

and ripen sixty thousand square feet of coffee (equivalent to 6,000 coffee trees). M. de

La Gironiere transformed his property in Jala Jala, Rizal into a fertile plantation and won

the prize of a thousand pesos. His agricultural efforts encouraged other Spaniards to

follow suit and increased the cultivation of coffee.

By the mid-1850s, Batangas was exporting to America and Australia. When the

Suez Canal opened, a new export market opened in Europe that included Spain,

France and Great Britain. In 1876, the first Liberica coffee seedlings were planted in

Amadeo, Cavite, although Batangas still reigned as the primary coffee producer at this

time.

By 1886, the Philippines was reputed to be the fourth largest exporter of coffee

beans. A steep rise in coffee prices and coffee scarcity afforded Lipa a price advantage.

When the coffee rust hit Brazil, Africa, and Java, it became the only source of coffee

beans worldwide.
 The glory days of the Philippine coffee industry lasted until 1889, when insect

infestation and a wave of pest and diseases prompted wealthy land-owners to transform

their coffee plantations to sugarcane fields. When coffee rust hit in 1891, the remaining

Lipa coffee farmers abandoned this crop and shifted to alternative agricultural products.

Since Batangas was a major producer of coffee, this greatly affected national

coffee production. In two years, coffee production was reduced to 1/6 th its original

amount. By then, Brazil had regained its position as the world's leading producer of

coffee.

During the 1950s, the Philippine government, with the help of the Americans,

brought in a more resistant variety of coffee. It was also then that instant coffee was

being produced commercially, thus increasing the demand for beans. Because of

favorable market conditions, many farmers went back to growing coffee in the 1960s.

The sudden proliferation of coffee farms resulted in a surplus of beans around the

world, and for a while importation of coffee was banned in order to protect local coffee

producers.

When Brazil was hit by a frost in the 1970's, world market coffee prices soared.

The Philippines officially became a member of the International Coffee Organization

(ICO) in 1980.

Support for coffee production was scarce until the establishment of the Philippine

Coffee Board Inc. (PCBI) in 2002. This was a private sector-led group initially formed as
the National Coffee Development Board to improve coffee output. PCBI members

include the vast spectrum of the coffee sector from growers, millers, roasters, retailers,

local government to agricultural credit.

Since its establishment, PCBI has conducted several events a year including

farming courses, coffee shop seminars, trade shows, farm tours and an annual Coffee

Summit that continue its commitment to educate and inspire coffee farmers across the

archipelago.  In 2011, PCBI was invited to be a member of the ASEAN Coffee

Federation. It also became the In-country partner (ICP) for the Coffee Quality Institute in

2016.

With its archipelagic nature and tropical weather, the Philippines combines

climactic and soil conditions from lowlands to mountainous regions that are ideal for all

four varieties. Coffee trees can be found in the three main islands of Luzon, Visayas,

and Mindanao. The general harvest season lasts from October to March.
Executive Summary
Company’s Profile
The business operators of Juan Kape were friends and classmates in Senior

High School, they studied in Higher School ng UMak, under the academic track and the

strand of Accounting, Business and Management (ABM). Namely, they are Abby V.

Baribar and Vanessa Julia P. Cordez.

The idea to build a café business came up when one of the operators Ms. Abby

Baribar’s uncle crave for a “meryenda” one afternoon. He encouraged his niece to

invest in a cheap automatic drip coffee maker and sell coffee to their neighbors and the

rest is history. They now have their own café and their sales are progressing

unexpectedly well even though there is a pandemic ongoing. The disadvantage of their

business is that it still has only a couple of drinks and snacks in its menu. In order to

counter that disadvantage, from time to time (seasonal) they offer other varieties of

drinks and snacks fit for the weather.

The business' consumers are mainly students, teachers, professionals, etc. They

will find that “Juan Kape” café can cater to their needs and wants in any season they

currently are.

Company’s Name

“Juan Kape”

The name of this café is “Juan Kape.” It is a combination of two Filipino words.

The first word is “Juan” a common Filipino name for boys. Also, this word has the same
pronunciation as the word for number “one”, which can also be considered as “First or a

start”. The second word is “Kape” a Filipino word that means coffee. Although the café’s

name may sound common and plain, the meaning behind it is quite exquisite.

The combination of these words means “first coffee”, it emphasizes the goals of

the business; to be a café that uses only local and organic ingredients for the store’s

consumables. This objective is to help the country’s local producers and to promote that

the Philippines’ local produces is competent enough to be used in the café industry. The

next goal is to introduce to the public to support and patronize local goods first, before

imported goods. Such as consuming the coffee beans that the country’s local farmers

produce.

“Juan Kape” is a small traditional-Filipino themed café, which not only offers

coffee-related drinks, but also a variety of beverages such as; fruit smoothies and

seasonal drinks. The store will also sell bread and pastries that will surely be a great

pair for the drinks that are being offered. Due to the pandemic that the Philippines is

currently experiencing right now, the store’s management came into a conclusion to

provide a delivery service, to cater all its customer.

Tagline

“Kape for me, Kape for everyJUAN”

The team came up with this mantra, to emphasize the shop’s mission and to give

the public an idea on what to anticipate in terms of the shop’s products. The tagline
“Kape for me, Kape for everyJUAN” is a catchy phrase that will surely stay in the system

of those people who will read it. This mantra means a coffee for me and a coffee for

everyone. This aims to show the café’s mission; to provide coffee-related drinks and

organic beverages that are made from local ingredients. Juan Kape” aims to provide

quality products that are wallet-friendly, so that everybody can afford it.

Logo

The café’s logo is influenced by a variety of ideas that represent the stores

product, goals, and the shop’s theme. First, the character or the person in the middle is

the representation of a male Filipino or “Juan”, also the character’s design from his

clothing and his accessories is a tradition outfit of a male Filipino. It can also stand for

the local coffee bean farmers. Second, the mug that the character is holding, it
represents that store’s main product which is a freshly brewed “kapeng barako” or pure

black coffee. Third, the colors that was used in the logo symbolizes the colors of the

Philippines National flag; which are blue, red, yellow and white, while the color brown

stands for the natural-skin color of Filipinos (kayumanggi) and the color of coffee. Lastly,

it can be sighted in the café’s logo the store’s name and its tagline.
Location
 All of us in the group gathered and

discussed our location for our future

business and the researchers decided to

build our future cafeteria on Taguig City

where the taxes rates are much lower

than the other neighboring cities. Our

decided location is located at the 34b

Champaca Street Western Bicutan Taguig

City and it is perfect to build for our future

cafeteria because it was near at the

hospital and it is in the middle of a market

that can passed by in so many people on

our cafeteria and it is a big apportunity

and Possible to gathered many customers

to come on our future cafeteria especially

to choose who's in the hospital like

doctors, nurse and visitors of the patients

that who want to relax and who wants to

take sip of a delicious hot coffee after their

work and that's a good opportunity to

easily grow or risen up our business.

Nature of Products Being Offered

Hangganan (COLD DRINK)

This drink is made with condensed milk mixed

with fresh milk and pure coffee. To finished it

up we added some ice to add the cooling

effect. This type of coffee is great with sweet

tooth people that are unable to suppress their

taste in the bitterness of coffee. The benefits of

coffee can improve energy and makes you

smarter.

Tapang ng Pinoy (Hot Drink)

This is well known to Philippines for their

love in their coffee. It is simply coffee

beans that is put in a grinder to make it

into a powder and after it was grinded just

put it in the filter and pour hot water on it.

That is how it’s made. People who work

and usually in the cold side of place are

the one who is in love with this kind of

coffee as it awakens you and gives strong or high caffeine that is good to energize your

body.

Alapaap (Hot Drink)

Dalgona belong to those who got easy recipe to make that

doesn’t need any professional tools to make. It is made with

a stick of coffee, milk and ice. The coffee stick must be

poured into a bowl and add sugar if that’s the preferred

taste. Meaning, optional. Then after adding that pour 3

spoonsful of water into it and bate it until it got the

caramelized texture on it. After it is done add milk in the cup

first and ice then the made coffee in the bater must be pour above the milk and that’s it.

This is good for young people who enjoys the looks to add to their social media as it

was the trend and at the same time, they can enjoy the foamy-texture of the drink.

Diyan Masalanta (Cold Drink)

This is a simple coffee that is mixed

with cocoa and a tablespoon of

sugar. This is a great way as well to

explore your taste buds and not

settle for a simple coffee. It adds

sweetness and at the same time it’s

still got the purpose of energizing the body. The nutrients that obtained

from coffee is potassium and rich in magnesium.

Dr
Hangganan (Cold Drink)

in
Petite- 100php, Grande- 145php,
Venti- 180php
Tapang ng Pinoy (Hot Drink)

ks
Petite -115php, Grande- 130php,
Venti- 150php
Alapaap (Hot Drink)
Petite- 110php, Grande- 130php,
Venti- 140php
Diyan Masalanta (Cold Drink)
 Petite- 85php, Grande- 105php,
Venti- 120php

Blanca y oscura de pan

The name of

this bread

means white

and dark in

spanish. This

is based from

the main flavor

of the bread which are condensed milk and dark chocolate. Blanca y

oscura de pan, is the shop's version of the popular french bread croissant.

This bread has the taste of sweetness from the milk combimed with the

slight bitterness of the dark chocolate, that will be perfect for the shop's

beverages.

Brioche Tsokolate tuppo

The name of this bread is a simple bread of chocolate but to give a little bit of

twist, the team will add more dark chocolate on the top of the bread. This pure

dark chocolate, will be able to create a salty and sweet taste. Perfect for the

Tavern's coffee, and for people that doesn't really have

a sweet tooth. This simple bread will have a fluffy interior texture and a crispy

outer crust in bottom.

Pane al Cocco

In Italian, this bread is known as Pan

de coco. This Pan de Coco, also

known as a "coconut bun," is a rich

soft roll filled with sweetened

shredded coconut meat. It is a

popular snack bread in the

Philippines. Summertime is best for the Tavern's Iced Coffee.

Keso Ensaymada

Ensaymada is well known in

the Philippines the

combination of the coffee and

the bread that perfect on the

tavern shop. This bread is made up full of grated cheese on the top of the bread

and melted butter inside. The flour that was used is all purposed mixed by a

white sugar, eggs and fresh milk to make it dough when it’s done start forming

the spiral Ensaymada shape by crossing the two opposite ends of the dough and

lastly put in the oven. Ensaymada is rich in vitamin A.

Breads
Keso Ensaymada -50php
Pane al Cocco - 65php
Blanca y oscura de pan - 80php
Brioche Tsokolate tuppo - 75php
Size and Growth Trend of the Market
The importance of the business market that we should concentrate because it is

important to study the any kinds of market to know the top market that we should target.

Our main target market is the Young Adults because they are the ones who always go

to cafe shops. When regards to the age, 16 to 65 years old is the age we choose it's

because they are the ones who drink different kinds of beverages especially coffee.

They are the ones who always come out to buy. Concerning to the gender, there is no

gender choice, all genders are allowed. We also thought of putting breads like

cinnamon bread, donuts and cake for not only the beverages, we also partnered the

breads to beverages. Those in the cafe have different kinds of coffee but seasonal

drinks, tea, smoothies etc. The Direct Competitors are the places close to the business.

Based on our Group, we conducted a survey on 90 customers of the competitors. The

results states that many of the customers are from the outside of the area of Taguig

they are the buyers from other outsiders. They usually buy coffee, drinks, and shakes

and revisited the place because of the ambience. These customers usually buy their

products when working overtime, when studying and when traveling. In a situation in

pandemic, it can be delivered thru grab of food panda so that they do not come out and
at the same time our business income is considerable. Even if it's not a pandemic, sale

should still be considerable because it also needs to earn and grow the business. These

will be valuable for business to portray a good market and to obtain as much market to

them.

Financing Requirements and Services

PROJECTED COST (3 Months)

CAPITAL EXPENDITURES:

Store Equipment (Schedule 1) 86,950

Furniture and Fixtures (Schedule 2) 9,000

Rent Expense (Schedule 12) 72,000

TOTAL CAPITAL EXPENDITURES: 167,950

PRE-OPERATING EXPENSE

Advertising Expenses (Schedule 9) 19,270

Permits and Licenses (Schedule 6) 4,650

Promotional Expenses (Schedule 4) 2,500

TOTAL PRE-OPERATING EXPENSES 26,420

OPERATING EXPENSES

Store Supplies (Schedule 3) 14,670

Office Supplies (Schedule 5) 3,282

Salary Expenses (Schedule 7) 73,000

Employee Benefits (Schedule 8) 84,680

Utilities Expenses (Schedule 10) 64,900

Transportation Cost (Schedule 11) 6,000

TOTAL OPERATINGEXPENSE: 246,532

TOTAL PROJECTED COST: 440,902

Key Projections
"Juan Kape" is a small cafe that will be considerd as sole proprietorship type of

business. A sole proprietorship business means that there will be just one owner, The

reseachers decided on this to have a better and easy management to facilitate. The

owner of the cafe and also the one who will be the financer is Ms. Abby Baribar one of

the member of the research team, While the other member will fill in the position as the

staff.The Company will use local materials to make the product.The product is cheaper

than the other brand and also the shop is instagramable which will be trend to

everyone.The store is located at 34 Champaca Street Western Bicutan Taguig City,

because it is visible to the people who lives there, the competition between the shop's

rivals is not strong. Also, the area is near to a hospital, making the number of the store's

patronizers to go up.

Proposed Entry Strategy

The team will start the business with the promotional strategy by making a

webpage and a Facebook page that will be posting and notifying customers of sales,
promos, discounts, etc. Tarpaulins will be posted outside the store vicinity signifying the

different products and services that the business offers and benefits of each product

with its corresponding price.

Proposed Exit Strategy

In case that the proposed business declares bankruptcy, the group will turn it into

a smoothie shop. It will be easy to recover the money because it has the same product

line of Juan Kape. The equipment and machines will be sold and its gains will

be kept as an emergency fund.

Summary of the Feasibility

Marketing Plan - It addresses the target market, examines historical margins, and

displays and forecasts demand and supply for a specific product. It further

demonstrates the company's strategic advantage over its rivals as well as its marketing

strategy.

Management Plan - This segment discusses the management team, employees, and

the ownership structure of the company. It demonstrates how relevant the employee-

employer relationship is to the business, how they are intertwined, and how the higher

members' skills will contribute to the bottom line.

Operational Plan - In terms of company operations, this is the most important aspect. It

will demonstrate how each product is produced, production schedules, and how the

company determines product prices.

Financial Plan - The segment in which the company demonstrates how it plans to

finance itself for the next five years by forecasting expenses, income statement, balance

sheet, cash flow review, breakeven, and payback period. Also, a contingency plan in

case the company fails.

REGULATORY AND LEGAL ISSUES

DTI - for its operating business license and permit (exact location)

BIR - for taxation purposes

Business Plate

Mayor's Permit