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Rice Coffee Proposal Sample Business Plan
Rice Coffee Proposal Sample Business Plan
Chapter 1
Introduction
People nowadays sleep late at night and wake up early in the morning because
they have responsibilities to fulfill. Some even tend to skip their breakfast when they are
rushing due to their hectic schedule. They would probably prefer to eat breakfast on their
way to their destination than to spend time eating at home. Because coffee is a beverage
that is known to keep one's self awake, the proponents decided to make a coffee out of
rice. People can buy and drink it in order to boost their energy.
Rice is used in many ways. Its grains can be a substitute for coffee beans. People
who are coffee lovers should not expect that the taste of the product is the same when
they use coffee beans. The name of the product does not ring a bell for those people who
haven’t gone to the northern part of our country. Rice coffee is popular in the
Rice coffee is healthier because of the benefits of rice including its ability to
provide fast and instant energy, regulate and improve bowel movements, stabilize blood
sugar levels, and slow down the aging process, while also providing an essential source
of vitamin B1 to the human body. Other benefits include its ability to boost skin health,
increase the metabolism, aid in digestion, reduce high blood pressure, help weight loss
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efforts, improve the immune system and provide protection against dysentery, cancer,
Milktea's and Frappe's are trend beverage to teenagers today. In order to catch the
attention of the target clients, the researchers are going to innovate the said product by
making it look like a frappe or float in the fast food chain. The edge of rice coffee
compared to the products of the coffee houses in San Fabian is that the product itself is
healthier and more affordable. This kind of business can be easily put up and manage
B. Product Description
Rice coffee is healthier and nutritious than the commercially available coffee
beans. The proponents choose this product because it is rare in our place and also because
of its health benefits. The researchers will offer the regular rice coffee, either hot or cold.
Moreover, the proponents decided to offer rice coffee shake and will innovate the product
The rice coffee can be plain or it can be added with milk and sugar. The process
of making the product is easy and efficient. The researchers will produce their own rice
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sustainable income on farmers’ cooperative in this town. The rice coffee traced its origin
in the early 1900s when Filipinos made it as an alternative to the high-priced coffee
beans. The first rice coffee was introduced to the market in Barangay BinacagBanna,
Ilocos Norte. This refreshing beverage has been enjoyed as a coffee substitute for
beverage has no caffeine, is gluten-free and has a very low calorie hit. (Lazaro, 2015)
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Chapter 2
Industry Profile
A. Industry Overview
Rice coffee is one of the products that can be seen as a pride of the North. This
product was originated from the province of Ilocos. It is a coffee that came from the
brewed of rice. It could be pure, mixed with creamer or even hot and cold.
Mention rice coffee to the country’s senior citizens, and it instantaneously opens
the floodgates of their memories to the hard times during World War II when they made
coffee out of rice. But in these times when coffee industry has the best products to offer,
B. Supply
San Fabian public market is the place where all of the raw materials will be
bought. It is because San Fabian is one of the producers of rice, which is the primary
The proponents will also build a good relationship with suppliers of raw materials
to minimize cost and strengthen the value delivery network and maintain the product
quality knowing that there are lots of competitors and new players in the market.
Though rice coffee is the only business that will be established in the location, a
lot of competitors may “join the fray”. Substitutes with cheaper prices may occur.
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C. Demand
Rice coffee is a kind of coffee that every millennial will love because this is the
trend nowadays. Also rice coffee is a healthy coffee, but this is the type of coffee that is
not popular in the market but quite popular in the mountainous region in the Philippines.
In other places they use rice coffee as a substitute for coffee beans because this
kind of coffee doesn't have caffeine that actual coffee has, and it helps treat an upset
stomach.
Filipinos usually have rice coffee as their morning brew instead of coffee bean,
one of the reasons is it tastes good than normal coffee and it also can be drunk by
children.
Though rice coffee does not provide the pleasure that you can get from other coffee, it
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Chapter 3
Company Profile
A. Business background
Coffee is one of the world’s most popular beverages, because of its high levels of
antioxidants and beneficial nutrients, and it’s also healthy. It has also been proven that
coffee may have health benefits. Studies show that coffee drinkers have a much lower
In order to enter the competitive market of coffee, the researchers will introduce
improved variants of coffee product that will satisfy the need of the consuming public
food options with high nutritive value. Through this, the researchers believe that the food
business will make its mark and gain a substantial share of the market for this kind of
food.
Rice Coffee is a beverage business that will promote the coffee industry in San
Fabian, Pangasinan. That quality refers to the satisfaction that the products provide,
evaporated milk and ice cream will also be offered and will serve as complement to the
product.
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B. Vision
To be a leader in innovation and build a coffee business that will serve as a stress
reliever to our consumers, and at the same time provide a friendly and comfortable
C. Mission
To provide healthy and nutritious rice coffee product and brewing excellent
• The Name
JMART’s Brewed Rice: Every Moment has its flavor. The researchers came up
with the name because BREWED stands for the process or procedure that coffee makers
do. While RICE represent the asset or main ingredients that we’ll going to brew.
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• The Logo
• The logo of the business reflects the readiness in offering a quality service to the
customer. The shake in the logo represents the main product of the business, JMART’s
stands for the initial names of the members, and it has the year where the business
established, and lastly, it has our tagline at the lower part of the logo.
• The Location
provide a competitive advantage and many opportunities to the business. The proponents
decided to locate this business in San Fabian, Pangasinan primarily for its strategic value.
The place has lots of opportunities wherein target buyers are the elementay, high school,
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Vicinity Map
Figure 1
Municipal
Hall
Sport
Center
East Central
Elementary
School
Evacuation
Center
Clinic
Archdiocesan
Senior High
Police Station
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E. The Product
• Rice Coffee
Coffee is an integral part of our system and it has been part of our history also. It
is served as a relieving beverage and is used by everyone. It has become vital in our
everyday lifestyle regardless of its type. That’s why the researchers think of an innovative
way on how to make this product in another style that will clearly click to the high
standards of consumers.
The researchers offered innovative kind of coffee that will satisfy the consumers
in terms of its add-ons in the coffee. The researchers can create an instant product that
will satisfy someone’s stomach and provide nutritious and delicious taste.
Sometimes, a steady demand is not enough to kick start and sustain a business.
Five years from now, the researchers of this project, foresee JMART’s Brewed Rice
➢ Specific Objectives
• JMART’s Brewed Rice will also become one of the leading local coffee
shops in the region to business casual, taking into account the mood of
consumers.
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enhance its flavor, to taste even better and better way to experience the
• Improvement of products and services that match the needs and wants of
customers
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PRE-OPERATING EXPENSES
H. Source of Funds
In order to have capital that will fund the business, four of the researchers’ parents
will contribute P17,500.00 each that will have a total of P70,000.00. These researchers
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Sales
Gross Profit
Gross Profit Margin =
Sales
P185,467.60
=
P475,500.00
= .39
There is a 39% gross profit. Thus for every P1.00 of sale, there is a 39 centavo profit.
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• Computation
P1,150.60
Selling price =
45
= 25.56
= (25.56) (1.7)
The researchers will offer add-ons for the product which are cookies and chocolate syrup.
There is a price for every add-ons. For cookies or chocolate syrup, it costs an additional of P5.00
from the original price. While for cookies and chocolate syrup, it costs an additional of P10.00
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Chapter 4
Competitor’s Profile
Little Bozz Coffee House opened last January 28, 2019. They usually opened at 10:00
A.M to 10:00 P.M. In a day, they have a capital of 10,000 a day and can produce 80
SWOT Analysis
Strengths:
Weaknesses:
Opportunities:
Threats:
There will come a time that the sales are high and low so there is a tendency
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A lot of competitors.
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Chapter 5
Market Feasibility
Vicinity Map
Figure 1
A. Location
Municipal
Hall
Sport
Center
East Central
Elementary
School
Evacuation
Center
municipality has a land area of 81.28 square kilometers or 31.38 square miles which
Police Station
constitutes 1.49% of Pangasinan's total area. Its population as determined by the 2015
Census was 83,025. This represented 2.81% of the total population of Pangasinan
Along the highway of San Fabian, you can see a lot of bundled coconuts or copra
trees as which planted by the town people of San Fabian, Pangasinan. Those green
colored big nuts or also known as coconuts is the proud assets of the people of San
Fabian.
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The town was name after Pope St. Fabian, Shell craft is a cottage industry in San
Fabian and tuyo (dried fish) is also sold there. The researchers believe that this will
generate a high demand for the product because of its population as well as the tourists
who regularly visit the place, for it is known as one of the favorite destinations in
On the other hand, consumers could easily find a product in substitute & what
business could offer in the competition. Several small businesses are also located there,
however, in order to enter the competitive market, the components must introduce
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B. Target Market
1 ARCHDIOCESAN 735 35 4 2
SCHOOL OF SAN
FABIAN (ASSF)
Total: 87
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• Casual Employees 27 1
TOTAL 22
Angio 3,227 16
Cayanga 4,586 23
Poblacion 4,002 20
Sobol 2,479 12
Tocok 2,104 11
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Nothing beats the fragrant smell of rice coffee whether at home, in school or in
coffee shops. The target market for our coffee shop includes drip coffee shop lovers, high
school students, and passersby, since they represent a large segment of the population.
Aside from they can afford our product, they are the best target market because coffee
Other target market will be those people who go to the church, and those people
who are bound to Baguio City and La Union. They can stop over and go to our coffee
shop, and the proponents found that the place is the feasible.
People who spend time in coffee shops where specialty drinks and regular cups of
coffee are available along with an inviting atmosphere, rather than coming in to grab only
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209
87
22
MARKET SHARE
The graph shows the market share of potential buyers in San Fabian. The most
numbered target market are the passersby with the market share of 209, next are the
students and teachers with the market share of 87 and lastly, the employees are the least
numbered with the market share of 22. The total market share of the potential buyers are
318.
C. Competitive Strategy
JMART’s Brewed Rice is the first rice coffee business in San Fabian that will
offer a new taste of coffee shake. This coffee substitute will give consumer a better way
to experience the classy theme like the commercial establishments and at the same time
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The management will be having their uniforms to have presentable looks during
their work hours. Another research that the proponents have made is to find the
consumers necessity, which refers to a need they have that must be met because of
varying reasons like new to the market and because it was nutritious.
The proponents are going to sell the product at less than 60 pesos to suit to the
customers’ budget. The shake will be price at 45 pesos .In fact, coffee business like Cafe
Tribu set their price with a minimum of P89.00 due to its rising cost of ingredients and
rentals. Because of this, the consumer will prefer to buy the product at lower price and
new taste with health benefits. The proponents designed their own strategy in delivering
As for its operation JMART”s Brewed Rice will be open from Mondays to
Sundays from 9:00 am to 30 days 9:00 pm knowing that many people love coffee, they
can buy it anytime they want. The proponents will also build a strong relationship among
its suppliers and customers. This can be achieved through the following:
With these basic strategies, products and services, the proponents are confident that the
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D. Marketing Strategy
Being a new entrant to the beverage industry, the proponents will introduce the
product that would indeed attract consumers. In the first day, the proponents will be
Next is that the product must be priced right for it to be salable at the desired
volume. The proponents will have to assure that the priced are affordable by consumers.
The proponents can also market the product through contact number, message on
Facebook if they want to order as well as the benefits they can gain by drinking rice
customers drinking at the place. For them to look clean and presentable they shall wear
shirt which have their logo and each employee must have their name. They shall also be
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Chapter 6
Management Feasibility
A. Organizational Structure
MANAGEMENT
PARTNER
• Roxanne C. Bornalo
LIMITED PARTNER /
LIMITED PARTNER
PRODUCTION STAFF
• Marcela A. Biala
• Jenifer Maure
• Jeriemyn Ungria
• Renalyn Rivo
• Angelica Lalata
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➢ Manager
Duties and Responsibilities
maintaining work systems, procedures and policies that enable and encourage of
optimum performance of its people and other sources within a business unit.
scenario.
• Sales Personnel
Requirements
- Senior High Graduate, undergraduate and college students with good moral
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- Well - groomed
- Congenial person
- Good follower
• Production Personnel
They are responsible to help each other for producing innovative shake
through their hard work to promote our product and not disclosing any
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B. Manpower Requirements
and skill in making shake. The insights and information shared by the
Manager greatly helped the proponents in innovating the product. Shake will
The equipment that will be used to make the shake is Nutri – Bullet
and container. Two Nutri – bullet will be use, one in the production area, and
the other one will be us in location. The container will be used for storage of
raw materials for shake such as grind rice, evaporated milk, sugar, and ice
cream.
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Chapter 7
Financial Feasibility
A. Statement of Assumption
Rice coffee gets 66.67% for the students in San Fabian while 93.33% for the passersby
and 90% for the employees. The sales forecast for this study was based on survey results.
The data analysis considered the buying frequency of an individual per week.
respondents are willing to buy rice coffee shake thus, approximately 83.33% of the
respondents are the potential customers of rice coffee shake in the town of San Fabian.
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CLASSIC
The researchers assume that 35% of the potential buyers of the product,
particularly the classic flavor of rice coffee shake, will be the expected sales of JMART’s
Brewed Rice Coffee on the 1st year of operation and will be increased by 5% on the
subsequent years.
Justification:
low price.
The researchers assume the 25% of the potential buyers will be the expected sales
of JMART’s Brewed Rice Coffee on its 1st year of operation and will be increased by 5%
Justification:
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CREAM-O COOKIES
The researchers assume that 20% of the potential buyers will be the expected
sales of JMART’s Brewed Rice Coffee on its 1 st year of operation and will be increased
Justification:
CHOCOLATE SYRUP
The researchers assume that 20% of the potential buyers will be the expected
sales of JMART’s Brewed Rice Coffee on its 1st year of operation and will be increased
Justification:
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B. Assumption on Expenses
FIXED COSTS
• Utilities Expense for the first year of operation and a 5% increase in subsequent
years.
• Advertising Expense for the first year is Php 1,250 and a 5% increase for the
following years.
• Transportation Expense for the first year is about Php 16,800.00 and will be
• Salaries Expense (2 part-time employees Php 35/hr) will also increase 5% for
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C. Assets
• All Utilities Expense for the year will be paid during the year.
• Purchases of raw materials will be made every day and paid accordingly.
• No additional investment.
• Partnership withdrawals will be 50% of net income and will start at 2 nd year of
operation.
D. Assumption on Cost
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• Utensils cost assumption in First Year of operation. The total cost of utensils is
Php 3,722.00.
Kitchen Wares
Cleaning Utensils
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Paper Products
Crew Uniform
• Taxes and Licenses comprises other percentage tax and annual registration fee.
Rent expense is included in taxes and licenses because the location of the business
is owned by government.
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E. Financial Statements
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OWNER'S
EQUITY
Roxanne, Capital 393,024.15 590,198.84 797,256.77
Marcela, Capital 393,024.15 590,198.84 797,256.77
Renalyn, Capital 393,024.15 590,198.84 797,256.77
Jenifer, Capital 393,024.15 590,198.83 797,256.76
TOTAL OWNER'S
EQUITY P1,572,096.60 P2,360,795.35 P3,189,027.07
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Chapter 9
Socio-economic Impact
firms expand their operations. In a food industry, innovations amplified and there was a
tremendous change in lifestyle of people. From the different parts of San Fabian Market,
that a number of coffee shops increased and existing coffee shops franchises.
The business will provide benefits to San Fabian town and also for the people
living in this place. This benefit will redound to their family. It will provide jobs that can
help to lessen the number of unemployed individual. In addition, it will contribute to the
municipal and to the people by paying the taxes from to the business. It can also be the
home of visitors and might be consider as pride of San Fabian. The business will be a big
help to the suppliers because this will give them sales in their own business. The
proponents will also provide a new set of taste in regards to drinks that will surely give
satisfaction and benefits in our body. Lastly, rice coffee shop will provide a friendly,
comfortable atmosphere where the customer can receive quality refreshment, service and
Business plays a vital role in the economic development and wealth of a country.
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Chapter 9
opportunity for everyone who is willing to put up this kind of business. After gathering
all necessary information about the coffee industry, the proponents conclude that the
proposed business is feasible. As discussed in the study, JMARTS Brewed rice will offer
coffee shake that comes with four flavors; classic and with toppings which are crashed
Each partner shall contribute Php 17,500.00. This will cover all necessary
expenses. Net income for the first year through third year is as to P1, 502,096.60, P1,
year to year basis. This will result to a higher net income and a fast growing business. In
order to accomplish this and to be able to meet the goals of the proponents, target
consumers shall also be considered in a way that they can get from the product. By
enhancing the customer relations and the productivity of the business, the proponents
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Appendices
Target Market
26.66% Price
30%
Yes Taste
No 66.67% Quality
70%
Yes
No 66.67%
86.67% Cream-O Cookies
Chocolate Syrup
Cream-O Cookies and Chocolate Syrup
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30
23.34%
40
50.00%
26.66% 45
Other Amount
66.67%
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1. Rice coffee has lots of 2. What factors do you 3. Will you add toppings
benefits, if it its going to be a consider in buying on your shake?
shake, will you buy it? drinks?
10% 10.00%
Price Yes
Yes 13.33%
20%
Taste No
No 66.67%
70% Quality
90%
4. What toppings will you 5. How much is your daily 6. How many times you
add on your shake? budget for food? buy shake per week?
26.67% 6.67%
50-150
56.66% 20% pesos 10% 1x
16.67% 30
10% 40
50.00%
45
23.33%
Other Amount
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1. Rice coffee has lots of 2. What factors do you 3. Will you add toppings
benefits, if it its going to be a consider in buying on your shake?
shake, will you buy it? drinks?
6.67% 6.67%
Price Yes
Yes 26.66% 100.00%
Taste No
No 66.67%
93% Quality
4. What toppings will you 5. How much is your daily 6. How many times you
add on your shake? budget for food? buy shake per week?
30.00% 13.33%
66.67% 3.33%
46.67% 10%
1x
20-70 pesos
2x
23.33% 100 pesos 26.67%
86.67% 3x
Cream-O Cookies 150 pesos
50% 4x
Chocolate Syrup
Cream-O Cookies and Chocolate Syrup
16.67% 30
43.33% 40
13.33%
45
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Category Range
Passersby P 20 – P 150.00
Front View
RICE COFFEE
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SURVEY FORM
Name:
Name of School:
Age:
1. Rice coffee has lots of benefits, if it is going to be a shake, will you buy it?
Yes
No
2. What factors do you consider in buying drinks?
Price
Taste
Quality
3. Will you add toppings on your shake?
Yes
No
4. What toppings will you add on your shake?
Cream-O Cookies
Chocolate Syrup
Cookies and Chocolate Syrup
5. How much is your daily budget for food?
___________________
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Name:
Type of Passersby:
Age:
1. Rice coffee has lots of benefits, if it is going to be a shake, will you buy it?
Yes
No
2. What factors do you consider in buying drinks?
Price
Taste
Quality
3. Will you add toppings on your shake?
Yes
No
4. What toppings will you add on your shake?
Cream-O Cookies
Chocolate Syrup
Cookies and Chocolate Syrup
5. How much is your daily budget for food?
___________________
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Name:
Type of Employee:
Age:
1. Rice coffee has lots of benefits, if it is going to be a shake, will you buy it?
Yes
No
2. What factors do you consider in buying drinks?
Price
Taste
Quality
3. Will you add toppings on your shake?
Yes
No
4. What toppings will you add on your shake?
Cream-O Cookies
Chocolate Syrup
Cookies and Chocolate Syrup
5. How much is your daily budget for food?
___________________
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