Kidapawan City National High School

Roxas St, Kidapawan City, Cotabato

Bitter-Sweet Café
Start-Up Proposal
October 2022
Name of the Business: Bitter-Sweet Café

Name of the Proponents: Norolyn D. Tautuan

Kelly Precious G. Porcadilla
Ermie M. Calungsod
Noimei Purlas Jordan

Address: Purok 3,b Balindog, Kidapawan City

Telephone no. or Cellphone no. 09300677554

09507269446
09124434390

Email Address: Bitter-Sweetcafe0512@gmail.com

Date: November 4,2022

 Intoduction

Background of the Study

Everyone wants to be associated with a specific coffee shop that they frequent and always rave about because
coffee is also a highly seductive industry. Coffee shops are so intimate because for many of us, they are the third
place. You wouldn't find individuals as excited while talking about other retail outlets that they may frequent. People
can even bring their laptop to these pleasant locations to finish up office work or even just to meet up with friends.
(Abrams & Kleiner, 2003)
Bitter-Sweet café is dedicated to becoming the one-stop-shop for all local coffee addicts. It will serve as a place
for comfort and relaxation for anyone looking to slowly escape from the daily struggles of life.
As the need and popularity for gourmet coffee shop and other similar products continue to grow, Bitter-sweet
Café will continue to draw in local costumers to continue to build a returning customer base. Bitter-Sweet Café will
ensure that its customer have the most relaxing and overall best experience while they sip coffees, consume
delectable pastries, and enjoy the comfortable furniture and free internet access. Bitter-sweet will operate in a 1,500
square foot area around Purok 3, b Balindog Kidapawan City. This building has been secured through a 4-year lease
with negotiations to take place after 3 years if the lease is to be extended beyond the fourth year.
The owners have successfully put forward 9,990,000 with an extra 1,452,625 being put forward by local
investors and the rest of the funds are to be secured through First National Bank’s Commercial Loan Program. Bitter-
Sweet is expecting a sales revenue of about 17,257,185 in its first year, with revenue expected increase to
17,706,840 by its fourth year of operation.
Under the assumption that Bitter-Sweet Café will maintain a gross profit margin of 68% and a low expense
cost, it will see a growth in net profits rise about 4,774,085 to 5,810,500 in that same period.
Objectives:
1.1 Targets
Bitter-Sweet identified target objectives during its first year of operation are to:

 Maintain its goal of a 68% target operation

 Produce a profit by its second month of operation
 Customer retention
 Be identified as a rising star café shop around Kidapawan City

1.2 Keys to Success

 Effective target marketing
 Efficient and quality service
 A significant and complete understanding of all offered products

1.3 Mission Statement

Bitter-Sweet aims to create a unique and relaxing experience for all its customers while simultaneously
providing an array of different products ranging from coffee, espresso, pastries, and an arrangement of
other products.
 Methodology

1. Product Overview
Bitter-Sweet café will pride itself on offering not only the best coffee but also the best pastries in the local area.
All of our ingredients will be of the highest quality to ensure peak flavor and quality standards.
The products offered will include different forms of prepared coffee such as lattes, cappuccinos, and espressos,
as well as tea and other refreshments. Bitter-Sweet will also offer gourmets bakery products such as muffins,
donuts, cakes, and cookies. All of which will be used to help draw the customers in and to increase profits and overall
customer experience.

1.2. Product Description

Bitter-Sweet will be focusing on the needs of all customers with a build your own drink style of service. We will
be offering a large number of toppings and other items to include in the products to create the customer’s desired
taste. These toppings and other items will include things such as milk, caramel, whipped cream, a variety of coffee
creamers, vanilla extract, cinnamon, and other similar products.
All coffee will be made black with a basic coffee machine and the barista will then follow the desired orders of
the customers as to what they want in their drink. There will also be drink ideas on the menu to help customers who
are not experienced in the coffee world.

2. Market Segmentation

Bitter-Sweet will focus most of its marketing activity on the millennial generation, who, studies show, spend
the most on coffee and coffee products outside the home

As a result, we will try to focus a significant number of resources to try and draw college student from nearby
campuses to Bitter-Sweet to greatly increase our customer base.
 3. Target Market Segment Strategy
As the direct result of the millennial generation being considered the greatest spenders on coffee products
outside of the home, Bitter-Sweet will be focusing much of its market advertising on the local millennial generation.
This will include a large number of internet-based advertisements, including ads being placed on Facebook,
Instagram, YouTube, and other social media sites to draw in those seeing them.
Bitter-Sweet will also focus heavily on keeping in touch with its customers by creating an online presence
through sites such as Facebook, Instagram, and snapchat, as well as maintaining a blog about coffee and coffee
products. Bitter-Sweet also advertise healthier options for its products to help draw in millennials who as generation
are more concerned about living healthy lifestyle compared to other generation.

4. Competition
The city of Kidapawan is a fairly competitive area when it comes coffee sales and consumption offering over
two dozen separate coffee shops in the city which holds a population of about 160,791 people.
The main competitors will be sweet café Shop and Cozy Café Shop, as both are chain companies with massive
resources and fantastic brand name recognition. However, recent studies have shown that a great percentage of the
population is beginning to prefer smaller shops, especially when they are shopping locally.
To make a name in the already establish market, Bitter-Sweet will have a grand opening sale offering discounts on
our products to help bring on the local population. We will then offer several coupons that will help minimize customer
retention.

5. Management Summary
The majority of bitter-sweet is owned by Ms. Norolyn D. Tautuan who has a bachelor’s degree in Business
Management from the University of Southern Mindanao. She has years of experience overseeing projects similar to
this one and will be in charge of conducting management training.
A professional experienced manager will be hired to oversee all café operations and will be paid a salary of
1,888,412.50 yearly. The manager will be also in charge of hiring two full-time baristas to help café operation. The
manager will be in charge of hiring any additional staff as well, the salaries of which will be discussed with ownership.
Management will be responsible for all café operations, employee management, inventory operations, ordering
supplies, and working with ownership to create a marketing strategy.

6. Financial Plan
Bitter-Sweet plans to capitalize on the need for a relaxing environment and as escape from the harsh
Kidapawan winter and Kidapawan warm summer. The owners have provided the company with sufficient funds to
serve as start-up capital, and management will aim to provide a returning customer base to keep cash flow
consistent. That within 18 months will see its profits double. Bitter-Sweet will also aim to maintain a 68% measure of
gross margin during that same period.
 7. Projected Cash Flow
Over the first three years of operations, bitter-sweet is anticipating its net profit to increase from 12,783,100.00
in the first year to approximately 18,303,075.00 in the third year. This will be done through customer retention,
effective marketing schemes, and overall effective management.

8. Break-even Analysis
Bitter-Sweet are expected to see an average monthly cost of about 726,312.50 That, combined with its
average margin of about 68%, Mugs will require about 987,785.00 monthly to break even in terms of equaling all of
its expenses. Based on current projections, Bitter-Sweet should have no issues reaching this goal one opening.

9. Cost and Expenses

Bitter-Sweet will experience about 726,312.50 in monthly expenses. These expenses will consist of employee
salaries, product cost, building rent, utility, and equipment costs, as well as marketing costs.
 Swot Analysis

1. Strength
 Location
Since bitter-sweet is situated next to a college campus and a popular crossing in Kidapawan City, it is convenient
and easy to draw clients, especially from the millennial generation, who make up our target market.
The coffee shop has two floors; The first floor is the coffee shop, and the second story is a bookstore and library
for students and professionals who wish to concentrate on finishing their tasks and unfinished business. This
generally attracts customers who wants to feel the relaxation and comfort that they wanted to feel when entering a
certain coffee shop.

 Human Resources
Members in core-team are creative, energetic, active, and flexible. leaders have experiences in business
administration, especially in marketing and technology field. the team-culture is solution-oriented.in other words, the
responsibility is an important characteristics of each member

 Variety in Design
The interiors of coffee shops are decorated with various aesthetic elements, making them ideal backdrops for
selfies and other photos that may be posted on Facebook, Instagram, or other social media platforms.

 Service
The company strategy combines a coffee shop and a library, which will draw in professionals and students who
want to concentrate on their tasks and unfinished work. The employees are kind and courteous, and they provide
excellent customer service.

2. Weakness
The equipment, materials, and facilities must be purchased with a large initial investment. Additionally, the money
is utilized to pay for furnishings, rentals, and interior designs.
Furthermore, the potential for consumer complaints regarding food costs

3. Opportunities
The proximity of the company to a public school and a university makes it easier to draw in the millennial
generation, who the company targets as customers.
 4. threats
 Competitors

. Many of our rivals in the area, including sweet cafe and cozy cafe, have been in operation for a lot
longer than bitter-sweet. Our rivals are more experienced, but their prices are much higher, and their
styles are less varied and inventive than bitter-sweet.

Conclusions

The 68% goal operation will be aimed in the initial years of the business operation, in conclusion. Moreover, the
coffee shop will have an easier time being known due of its prime location, especially during school hours.
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