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A Feasibility Study On Establishment of Euphoria Café at Buenavista
A Feasibility Study On Establishment of Euphoria Café at Buenavista
NINO, SABLAYAN,
OCCIDENTAL MINDORO
RESEARCHERS:
MA. CRISTINA C. DELA CRUZ
CRISSHA MAY G. MACALALAD
ESTHEFANNY G. GONZALES
HANNA BEI GALAPON
JORANE A. DEL ROSARIO
JULIFE A. RIVERA
ANALYN LORENZO
GLADEMOR TARCENA
GRADE 12
Accountancy, Business and Management
LUCA PACIOLI
RICHARD GOUPIO
SUBJECT TEACHER
CHAPTER 1
INTRODUCTION
Nowadays, a lot of adults and teenagers need to have a coffee in their system due to the
late night works such as projects, school works and office works. Sometimes, people also
Our business can be very helpful not only to people who needs to be alert, awake, alive and
enthusiastic all the time, but also to people who search for relaxation and bonding times
together. We all know that coffee is a caffeine that acts as a central nervous system stimulant
that can boost one’s enthusiasm, thus making one active. But, coffee time can also help by
strengthening bonds among people who just want to talk and relax while having coffee.
As we all known, the economy of every country is based on small businesses. It’s the best
way to seek success at the beginning of your business life; moreover, it’s the way to fulfil
undertake attractive opportunities that represent the corner stone of shining life. We get the
chance to meet one of the inspiring investors who used to encourage youth people in business
field. He trusted as to start a feasibility study for a project that he is really concerning about.
The idea of the project is not new in the local market; the idea of the project is a traditional
coffee shop like some well-known coffee shops like Star Bucks, Caribou, Coffee Republic
and more.
population was 7,490 according to the 2020 census. This accounted for 8.09 percent of
According to the 2015 census, there are 59 youth dependents for every 100 working-age
population in Sto. Nino;6 aged/senior citizens for every 100 working-age population ; and 65
dependents (young and old-age) for every 100 working population overall. With median age
We assure that the people who manage the business are capable of handling a business.
General Objective
The general objective of the business of the proposed Euphoria Café is to determine
Specific Objective
To create jobs;
To create effective marketing strategies that will ensure that the business will be
To offer our guests service that is prompt, efficient, friendly, and relaxed.
To offer and serve the best coffee, and frappe in affordable price.
To help our customers relieve their daily stresses by providing peace of mind through
• Owners
- The objective of every business is to earn profit so the owners have the probability of
business success. To build a successful career the owners must have a great influence over
his/her employees. Managing the café and the employees is the responsibilities that bring the
• Government
The implementation of the business would raise more revenues for the government to use.
They would be able to profit from the business’s income tax and the income taxes of the
employees. The government would then have more budgets to execute their projects such as
• Community
- The proposed business would need man power to start off the services and to administer the
transactions of the business. Therefore, the business would need to employ people to do the
work. This would improve the standard of living for the employees
• Customers
- The customers will be the greatest beneficiaries of this this proposed business for they will
experience the best coffee and services while doing there paper works. Moreover, the café
brings peace, calmness and relaxing feelings that are well-fine for stress people.
D. SIGNIFICANCE OF THE STUDY
This study is aim to determine the influence of service quality and servicescape
that will affect customer satisfaction towards behavioral intentions in Euphoria Café.
Nowadays customers visit coffee shop not only for the quality of
the beverage, but mainly for self-ego. With the growing competition in coffee
industry, product is no longer the only element that plays important role in the
industry, meanwhile, other factors such as service quality and servicescape also play
marketers to understand which factors will have greater impact to attract customers.
The target market of the business are drip coffee drinkers, coffee shop lovers,
specialty coffee drinkers, and whole bean buyers in the area. And it will provide best
The business is located at Barangay Sto. Nino, Sablayan, Occidental Mindoro. The
proponents chose this site because it is near the target markets. The location is easy to find for
E. RESEARCH METHODOLOGY
Research method was used to determine the market viability of this cafe in its location.
The study was carried out through interviews and researchers and with a survey, done by
The market shares of each of the competitors of the business were estimated through
our questionnaire. We decided as one of the assumptions to determine our market share as the
average of the lowest three competitors ( Warlo Café, Kafe Point, Shamtea). The number we
got was 9% of the market.
Moving on to calculate the number of customers and days on the fact that we want to
establish our shop in Sto. Nino, Sablayan, Occidental Mindoro, we took the number of the
population in the three main areas Poblacion, Buenavista, and Sto. Nino, where we are
focused on the age groups between 18-24, 25-34, and 35-44 years that fit out assumption. We
multiply the total number of each of this age group by its weight from the age table we have
from the survey. As a final step, we multiply the total by the calculated market share and end
up with around 161 customers per month.
CHAPTER II
MARKETING STUDY
A. PRODUCT OFFERINGS
featuring a limited menu; originally these establishments served only coffee. Coffee house
provide a place to gather, work, and drink. Smart use of atmospherics can not only help to
attract more customers, but also create a space in which they will savor both their coffee and
their experience in the establishment. Major products sold by coffee shops include beverages
as well as complimentary food items. Beverages include brewed coffee and tea; espresso
drinks (cappuccinos, cafe lattes); cold blended beverages; bottled water; soft drinks; and
juices In order to sustain the development and growth of coffee shop industry, the business
B. TARGET MARKET
Some people in Sablayan, Occidental Mindoro believe that coffee is the first beverage
consumed in the morning and can be relied upon for energy to help them get through the day.
For some, the smell and taste of coffee are comforting. If you are deprived of sleep, having a
cup of your favorite brew can help you feel more relaxed and ready to be productive. In view
of this, the business comes up with the idea to offer unique and comforting coffee to its target
customers.
The target of the proposed business are the drip coffee drinkers, coffee shop lovers,
specialty coffee drinkers, and whole bean buyers in the area. The proponents will provide
EUPHORIA CAFÉ established at the chosen location which is Barangay Sto, Nino,
homes, market, carinderia, DENR office, Sports Complex and small sari- sari stores.
Although, there is other coffee shop nearby this competitor is not a threat for business
because consumers taste and personal income drive demand. The profitability of individual
companies depends on the ability to secure prime locations, drive store traffic, and deliver
high-quality products completely our cafe serve all of that qualifications. In addition, our
location is perfect because its near in Sablayan Sports complex which is advantageous to
notice.
D. MARKETING STRATEGIES
Since there are a lot of residents in Sto. Nino, Sablayan, Occidental Mindoro are students,
workers that needs place where they can study and work productively. From this, we come up
with the idea to put-up a cafe that brings a relaxing, healing and peaceful cafe to help them
In order to have a successful outcome of the business that we're going to build, the
proponents decides to conduct some effective strategies to attract the customers to visit and
buy our products by posting our business online stating the good benefits of it to people, we
will include there that our café offer a free Wi-Fi, quiet atmosphere inside of the café where
they can read books because our café has its own bookshelf, and it is also a perfect space to
PRODUCTS - The company offers a lot of variants and flavours in coffee. Coffee
Flat White, Coffee Latte, and Caramel Latte. Some of the ice blended products
offered by StressFree Café are: Cold Brew, vanilla sweet ice cream cold bree, ice
americano, iced latte and iced mocha. The StressFree Café also sells tea based drinks
like hot tea, matcha blend, lemon tea, ice thai tea, meals, and deserts. We will also be
launching new drink or food with a high of quality every two months.
PRICE - The products offered by StressFree café are priced at premium range
because of its brand value and high quality. Our company always believes that price is
secondary for any customer and focuses on delivering good quality products. The
company provides three variants in its beverages like small, regular and large. The
price is also directly proportional to the quantity ordered. The price of coffee also
varies according to the supplement added to coffee like extra chocolate, cream etc.
a website and Social media page for other information about our cafe. One of the most
priorities of this business to is to provide a good service and offer a healing menu to
the costumers.
PLACE - The business is located at Sto. Nino, Balud, Sablayan Occidental Mindoro,
near at Kriza Nhel’s Store that is a good place. A simple, plain and quite place to have
a soft spot and peace of mind. It has a great space that could still be utilized well.
Additional decorations and furniture will surely add appeal to the store.
CHAPTER III
TECHNICAL STUDY
A. Production Process
Stress Free Cafe is a coffee shop that serves hot and cold coffee, meal, snacks and
desserts in a cosy environment. It offers free WIFI access, electric socket for gadgets, and
books. If you are not a coffee drinker, the café also offers tea based drinks.
In addition, it will offer a lot of variants and flavours in coffee. We will also be
launching new drink or food with a high of quality every two months.
Figure 1
START
ACCEPTS PAYMENTS
E N D
LIST OF PRODUCTS OF THE PRODUCED BUSINESS
Hot Beverages
ristretto 12
doppio 20
cappuccino 33
café latte 33
espresso machiatto 26
café Americano 15
Café Mocha 52
Super Cappuccino 50
Caramel Macchiato 52
Signature Chocolate 40
Iced Cappuccino 39
Iced Americano 23
Iced Chocolate 55
Blended Drinks
Mocha Frappuccino 95
Macadamia Mocha Frappe 95
Caramel Frappuccino 95
Coffee Frappuccino 59
Chocolate Cream 85
Caramel Cream 85
Vanilla Cream 95
Brewed Coffee 33
B. Machinery, Equipment, Furniture and Fixtures
Table 1.1
Table 1.2
TOTAL: 26,790
C. Building
The proponents will rent the residential land owned by Liwayway Contreras located at
Balud, Sto. Nino, Sablayan, Occidental Mindoro amounting to Php 1,500.00 monthly and
amounting Php18,000.00 annually. The proponents agreed to finish the completion of internal
and external part of the building and it has an estimated cost of Php 150,000.00. The building
D. Floor Plan
Our area measures 880 square feet. Our area is enough to display all the necessary
F. Capacity/Scheduling
Store Lay-Out
accommodate 2 to 3 personnel.
Location Map
MONTHLY ANNUAL
PARTICULAR SOURCE USES
COST COST
Total: 83,988.00
H. Waste Management
All waste collected in the area will be properly disposed of in the trash bins provided by
the proposed business. The waste will be collected on a daily basis by government garbage
trucks.
CHAPTER IV
ORGANIZATIONAL AND MANAGEMENT STUDY
The partnership in this business is between two (2) persons. They are a senior high
school friends that would combine their money and properties to raise the capital
requirements of the business. The partners will own the planned business and will fund it
with their own money. The proponents would also offer their ideas and comments in order to
learn more about the collaboration and help it succeed. The production and marketing of the
The proposed business, in contrast to the authoritarian method, will utilize a democratic
decision-making style in which everyone has the opportunity to submit ideas to the decision.
The following organizational structure will be used by the company. The organizational
Figure 4.1
Manager
Cashier
Barista
C. PERSONNEL REQUIREMENTS
CASHIER
-female /male
-single /married
-High school diploma coupled with experience in related positions, as well as working
knowledge in a similar role
-Proficiency in using computers, calculator, and other machines required for transactions
-Outstanding customer relation skills and ability to ensure a customer priority culture
-Ability to work with flexibility in a continuous schedule of day, nights, holidays, and
weekends.
BARISTA
-Female /male
-single /married
-Barista Requirements:
-Training and willingness to continue learning about food and beverage preparation.
-Availability to work around peak hours, including nights, early mornings, weekends, and
holidays.
The personnel will have the following duties and responsibilities. The tasks assigned to every
Cashier
Barista
Give customers drink menus and answer their questions regarding ingredients
Take orders while paying attention to details (e.g. preferences of coffee blend, dairy
and sugar ratios)
Prepare beverages following recipes
Serve beverages and prepared food, like cookies, pastries and muffins
Receive and process payments (cash and credit cards)
Keep the bar area clean
Maintain stock of clean mugs and plates
Check if brewing equipment operates properly
E. COMPENSATION PACKAGE
POSITION MONTHLY SALARY ANNUAL SALARY
Manager 6,900.00 82,800.00
Cashier 6,000.00 72,000.00
Barista 7,200.00 86,400.00
Fringe Benefits
PHILHEALTH
POSITION MONTHLY SALARY SSS ( annual) ( annual) TOTAL
CHAPTER V
FINANCIAL STUDY
A. Major Assumptions
The following assumptions are used in preparing the projected financial statements of
the business.
yearly.
B. Capital Requirements
WORKING CAPITAL
Inventory Php 118,588.00
Salaries & Wages 20,100
1,429.5
SSS & Philhealth Contribution 0
6,999.
Utilities 00
1,000.0
Advertising Expense 0
1,500.0
Rent Expense 0
3,500.0
Permits & Licenses 0
150,000.
Renovation Expense 00
500.0
Miscellaneous Expense 0
C. Source of Fund
The capital required in putting up the business will come from the personal savings of
the partners. Php236, 106.75 will be contributed by each partner to gain a total of
Php472, 213.50.
D. Sales Forecast
The results derive from the survey were used in the estimation of the sales and the
Visiting 3.93 4
Market Share 9% 9%
Price- the price that we forecasted was calculated from the survey figures. We had
five price categories in the survey (0-100, 101-300, 301-500, 501-700, 701-900), and
as the first step we calculated the average price of each of this categories ranges. Then
we multiplied each of the price averages of each the categories with its weights that
we have obtained from the survey and the result was rounded up to Php 275.
Visiting – we followed the same manner of price calculations to get the number of
estimate our market share if we entered the local market. The market shares of each of
decided as one of the assumptions to determine our market share as the average of the
lowest three competitors we have ( warlo café, kafe point, shamtea). The number we
Moving on, to calculate the number of customers and based on the fact that we want
to establish our shop in Sto. Nino, Sablayan, Occidental Mindoro, we took the number
of population in three main areas Poblacion, BUenavista, and Sto, Nino; where we
focused of the age groups between 18-24, 25-34, and 35-44 years that fit out
assumption. We multiply the total number of each of this age group by its weight
from the age table we have from the survey. As a final step, we multiply the total by
the calculated market share and end up with around 161 customers per month.
Depreciation
Economic
Particular Quantity Unit Cost Total Cost Depreciation
Useful Life
Equipments & Machineries:
Furniture& Fixtures:
Book Shelf 15 1 Php3,900.00 Php3,900.00 Php260.00
3,300.0 16,500 1,100.
Table and chair set
15 5 0 .00 00
4,900.0 326.6
Table Bar Set 15 1 0 4,900.00 7
533.3
Display case 15 1 8,000.00 8,000.00 3
Total: Php14,998.80
year, thereby arriving at the concerns net income or deficit with in the period, together with
disbursement for a given operating period or fiscal year, taking for granted the accrual
concept in accounting.
The cash budget is also used to estimate future loans or financing needs optimize the
Balance sheet or statement of Financial Position shows the assets derived by the
project from corresponding liabilities and equities. It is an overall picture of firm`s financial
Furthermore, it shows the major changes brought about by the project`s operations
EUPHORIA CAFÉ
Projected Income Statement
For the Year Ended December 31, 2023-2025
2023 2024 2019
Sales Php 2,125,200.00 Php2,337,720.00 Php2,571,492.00
EUPHORIA CAFÉ
Projected Cash Flow
For the Year Ended December 31, 2023- 2025
2023 2024 2025
CASH FLOW
Sales Php 2,125,200.00 Php2,337,720.00 Php2,571,492.00
Cash Investment 472,213.50 661,098.90 925,538.46
Total Cash Inflow Php2,597,413.50 Php2,998,818.90 Php3,497,030.46
OPERATING EXPENSES:
Cost of Sales 398,475.00 518,017.50 568,823.05
Salaries Expense 241,200.00 265,320.00 291,852.00
SSS & Philhealth Contribution 17, 154.00 18,869.40 20,756.34
Utilities 83,988.00 92,386.80 101,625.48
Advertising Expense 12,000.00 13,200.00 14,520.00
Rent Expense 18,000.00 18,000.00 18,000.00
Permits & Licenses 3,500.00 3,500.00 3,500.00
Miscellaneous Expense 6,000.00 6,600.00 7,260.00
Tax Expenses 212,520.00 233,772.00 257,149.20
CASH BALANCE: Php1,285,979.50 Php1,829,153.20 Php2,213,544.39
CHAPTER VI
A. SUMMARY OF FINDINGS
The proposed EUPHORIA CAFE is determined its feasibility and viability in Barangay
Due to the earnings generated by the firm, the owners gain from the project. They also
improved their knowledge and abilities in order to effectively compete against their
competition. The business's implementation aids the government by raising its assets, which
are derived from various taxes and allowances paid by the firm throughout its pre-operation
to its normal operation. This increases municipal assets, which may then be used to advance
the municipality's development. Qualified individuals who wish to establish this firm will
have the possibility to obtain a better career or source of income. Furthermore, the
community's unemployment rate will be reduced. The customers get benefit from the
business for they will not go to several coffee shop/ cafe to purchase their cravings. The
products they are looking for will be offered by the proposed business.
B. CONCLUSION
Concluded that Euporia Cafè that would be established in Barangay Sto.Niño Sablayan
Occidental Mindoro is Feasible and viable and e it can be seen in the data we've been
collected.
C. RECOMMENDATION
The proprietors highly recommend the structure of the said business as soon as
possible. After 2 or 4 years of the operation the partners also decided to provide more
products for the development of the proposed business. The proponents are aiming towards
the achievements of the organisation.