BUSINESS PLAN

For

Presented to:
Mr. Jumel Oliver T. Salva

Presented by:
Armas, Nhel Nichol
Abuan, Daisy
Ferrer, Fricksia Mae
Malaggay, Nevie Shanaia
San Jose, Laika Monique
San Antonio, Mayrose
Taoatao, Jessamine

May 17, 2022

I. EXECUTIVE SUMMARY

The proposed business will be named R&B (Rhythm and Brew) Cafe
wherein we offer genuinely unique products when it comes to great coffee with
different amazing flavored tea, coffee, and smoothies including locally made
pastries like bread and cookies. R&B Cafe envisions to be the best and most
well-known coffee shop in the city, serving coffee and foodservice products
while adhering to the guiding principles of integrity, quality, relationship, and
service. With a mission to provide our customers excellent service and highest
quality cafes and foods that are passionately created in a calm, pleasant, and
friendly environment.

R&B Cafe will be targeting tourists, working professionals, college students

and nearby residents. To achieve its goal we will establish marketing strategies
through Loyalty and Incentive Programs, Promotions and Advertising, Word of
Mouth Advertising And Social Media Advertising. R&B Cafe competitors will be
Siglo Brew, I Love Milktea and Starbucks and R&B Cafe will offer a wide range of
high-quality products enabling us to provide full service. Coffee flavors with
such varieties as espresso, mocha, caramelicious, white mocha, candy bar
latte, and brewed coffee. Complementing the coffee will be a smoothie line
including wild berry, strawberry, peach, mango, and lemonade. English teas will
be also available, as well as flavored teas. The simple pastry varieties will alter
with the seasons, but the mainstays will be cookies, buns, muffins, slices of
bread, scones, and rolls.

The proposed business is located at Tagaytay Picnic Grove designed with

an instagramable interior and pleasingly aesthetic exterior designs with great
ambiance. R&B Cafe will operate from 9:00am - 10:00pm, and business hours will
be 10:00 am - 9:00 pm. The shop space, which can range in size from kiosks of
less than 400 sq. feet to an indoor space upwards of 1000 sq. feet that could
comfortably support more than 50 guests at a time. Approximately 500 square
feet of outdoor patio space, with lockup racks for bicycles. R&B Cafe will invest
₱700,000 to cover the start-up expenses and assets needed plus deficient
spending in the early months.

The proposed business will start its operation in the year of 2023. R&B Cafe
will be hiring 12 employees composed of a Financial Manager, Marketing
Manager, Marketing Officer, Operations Manager, two Cashiers, two Baristas,
two Waiters and two Utility Workers. As part of our expansion plans, we have a
target of franchising our Cafe business in 5 years starting from the date of
commencement of business operations. Using the right strategies, we would
expand our operations through this channel to cover several regions across the
Philippines, and to offer products inside/outside of the area, and improve its
concept and theme.
 TABLE OF CONTENTS

Cover Page . . . . . . . . . . . 1

I. Executive Summary . . . . . . . . . 2

II. Business Description . . . . . . . . . 5

III. Market Analysis and Strategy . . . . . . . . 7

IV. Marketing and Sales Plan . . . . . . . . 9

V. Competitive Analysis . . . . . . . . 11

VI. Management and Organization Description . . . . . . 12

VII.Products and Services Description . . . . . . . 20

VIII. Operating Plan . . . . . . . . . 23

IX.Financial Projection and Needs . . . . . . . 25

X. Conclusion and Future Plans . . . . . . . . 27

XI. Exhibits and Appendices . . . . . . . . 28

II. BUSINESS DESCRIPTION

The name of our company Rhythm and Brew was taken from the main
concept of our service. Which is to serve a cup of coffee and other refreshing
beverages while our customers are vibing to their favorite playlist and relishing
the view that our coffee shop offers. Whilst at night time, we hold regular live
music performances by local artists to entertain our customers.

Our logo represents our identity as a distinctive yet powerful coffee house.
We use neutral colors such as white and different shades of brown. The logo
features a cup of coffee, coffee bean with sun rays above. It means that in
every cup of coffee that we serve, it aims to brighten up someone’s mood and
bring positivity to anyone who is having it. Other than that, we did not put too
many elements on the logo. Because we believe that our notable name and
rare logo design is already efficacious and convincing that doesn’t need
something else in order to be remembered.

R&B Cafe is a coffee house located in Tagaytay Picnic Grove designed

with an instagramable interior and pleasingly aesthetic exterior designs with
great ambiance. The cafe offers amazing views, everyone can enjoy the
beautiful green mountain or the calm beach waves while enjoying a sip of their
coffee.

We proudly present our aesthetic products to customers and how food

can be pleasingly attractive to the eyes of the many. R&B Cafe is dedicated
and genuinely unique when it comes to great coffee with different amazing
flavored tea, coffee, and smoothies including locally made pastries like bread
and cookies because of the time and care dedicated to everything they offer.
 Our employees are all well-trained baristas that have the essential skill that
we need to make the best coffee we can offer, including espresso preparation,
latte art, as well as some of the more technical and scientific aspects of coffee
like water chemistry, coffee origins, and among others. Baristas and staff will
make sure that its customers have the most soothing and overall best
experience while sipping coffee, eating delectable pastries, and relaxing on the
comfortable furnishings.

R&B Cafe, fortunately, has a big space to accommodate a large group

of people that outstandingly caters to any age, color, or race. We created a
target market that would be the potential customers of the cafe, mostly
corporate employees and students. Our cafe has a soothing vibe and
ambiance that can make customers very relaxed while doing their desired
errands inside or outside the cafe. It is a sit-down cafe that includes a dining
area for customers to sit and enjoy their tea, coffee, smoothie, baked bread,
and cookies.

VISION

To be the best and most well-known coffee shop in the city, serving coffee
and foodservice products while adhering to the guiding principles of integrity,
quality, relationship, and service.

MISSION

To provide our customers excellent service and highest quality cafes and
foods that are passionately created in a calm, pleasant, and friendly
environment.
OBJECTIVES

● To hire staff that possessed the proper set of skills needed in R & B Cafe.
● To present an image of a comfortable and gratifying cafe in an attractive
and clean atmosphere.
● To provide a variety of products and services based on the preferences
and needs of our customers.

TASK AND ACTION PLANS

Task

● Staff training
● Plan the interior and exterior design of the establishment.
● Product development

Action
● Execute targeted employee training programs which are focused on the
aspect of customer service.
● Modern minimalism will be the style for both interior and exterior which will
allow us to weigh up simplicity and elegance. We will use neutral colors for
floors, furniture and paint for walls. The sign will be large enough to be
read from the street, and will be designed to promote the Café’s image.
● Develop new products in accordance with the customer's answered
survey.

III. MARKET ANALYSIS AND STRATEGY

TARGET MARKET
The R&B Cafe is meant for people who desire a sophisticated yet casual eating,
coffeehouse entertainment experience. A reason why our coffee house is
situated in a public park that is visited by numerous tourists for recreational
activities and family gatherings or bondings of friends. Therefore, it will appeal to
tourists, working professionals, college students and nearby residents.
● TOURISTS - Since the location of our coffee shop is considered as one of
the tourist attractions in Tagaytay, it is expected to be visited by tourists
may it be a solo traveler or a group of travelers such as families, circle of
friends, and couples will be one of the customers we aimed for.
● WORKING PROFESSIONALS - They can either hold meetings or visit R&B
Cafe during their breaks with their colleagues to have some coffee and
discuss work or anything they like to.
● COLLEGE STUDENTS - Students who don't have a space at home to study
peacefully, or just wanted to enjoy the comforts of our coffee shop’s
offerings. Aside from that, students don't only go to coffee shops to do
school work but going to coffee shops is another way that many students
socialize.
● NEARBY RESIDENTS - There are numerous other business professionals that
work and reside near Tagaytay Picnic Grove. There were law firms,
hospitals and insurance agencies that are within a few minutes away from
our location.

MARKETING STRATEGY

The most important element of our marketing strategy is to connect our

superior quality products and services to the market. Our cafes, pastries,
desserts, other beverages and entertainment must sell themselves through the
marketing strategies that will be utilized by R&B Cafe:
● LOYALTY AND INCENTIVE PROGRAMS - Providing free products that
increase the value of freebies over time whenever customers spend
certain amounts.
● PROMOTIONS AND ADVERTISING - Couple sales promotions and
advertising from time to time to give our company a boost in new visits.
And since we also provide live music entertainment for our customers, we
can also invite local and well known artists to perform.
 ● WORD-OF-MOUTH ADVERTISING - Personal recommendations from our
regular customers will be helpful in convincing potential customers
because this basically means that the value of our products and services
surpass the expectations of our previous customers.
● SOCIAL MEDIA ADVERTISING - We will use social media platforms such as
Facebook, Twitter and Instagram to easily reach and connect with our
customers. Social media platforms will help us to stretch out to a larger
audience whenever we have announcements, promos and the like.

IV. MARKETING AND SALES PLAN

Seek what is trendy at the time! Sampling, with product selection and as
an innovator in the market by having unusual and interesting selections, we
would be giving customers the opportunity to try our products. Our marketing
ideas on the business would be:

● SOCIAL MEDIA ADVERTISING - Our coffee shop would use timely platforms
such as Facebook, Instagram and TikTok. We would showcase images
and videos of our drinks and pastries and use these channels to promote
any special deals and discounts we would be offering the public.
● REVIEWS - Sites like Facebook and Google Reviews are incredibly
beneficial to our coffee shop. They provide feedback about our
establishment that can bring new patrons to the business. They’re also an
excellent platform to showcase the brand and speak to customers
directly. Simply asking for reviews is a great way to create word of mouth
about our business.
● DISCOUNT PROGRAMS - Our coffee shop implements loyalty programs
and member discounts that entice customers to return again and again.
These programs drive revenue and increase customer loyalty.

A proper strategy entails developing a solid coffee shop marketing plan based
on extensive market research, making wise investments, and acting. This
strategy must be followed on a regular basis. Our customers are our core in the
business. We would provide them with their necessary needs and want to fall in
love on our business, here are some strategies we’ll be using:

● AESTHETIC COFFEE SHOP - The exterior and interior of our shop serves the
customer aesthetic, Instagram-worthy view. We make sure that these
views would be pleasing and have an eye-catching appeal to everyone.
This would ideally, lure people into stopping by for a cup of coffee, even if
they hadn't intended to originally but because they were attracted to
what they’ve seen.
● LEVEL UP BRANDING - A defined presence is absolutely necessary that sets
us apart from our potential competitors. Our coffee shop logo and colors
have a story behind that promotes specific values. Representing a strong
brand all customers recognize and respect. We gravitate towards our
dedication to what the customers see (and like) who we are, what we
believe in, and what we stand for as an organization.
● FREE WI-FI AT A PET-FRIENDLY COFFEE SHOP - A charming coffee shop can
quickly become everyone's favorite spot. All you need is a stable internet
connection, good coffee, and free Wi-Fi. We include a pet-friendly policy
and allow coffee drinkers to bring their furry friends with them. Our
customers can bring a pet, get some free Wi-Fi, and plug in a laptop if
needed.
● DIGITAL AND SOCIAL MEDIA - Our coffee shop would focus on creating a
community of customers. Creating our unique drink offerings, advertising
them on social media, and connect to our followers about our craft that
we do. We would increase our brand's reach by bringing our shop's vibe
to the content and sharing it with the community. We’ll post promotions
on social media and organize photo contests geared towards
user-generated content regarding the coffee shop.
● FOOD DELIVERY APPS - Joining food delivery apps such as Food Panda
and Grab is the easiest way to expand our reach beyond the
 neighborhood. This would create an opportunity for our coffee to be
available to people who want the convenience of delivery.

V. COMPETITIVE ANALYSIS

Rhythm & Brew Cafe is located near Tagaytay Picnic Grove, where there
are a lot of competitors, as we all know Tagaytay is known for its relaxing view,
cafes are very in demand in this place. Here are some of its competitors that we
consider:
● SIGLO BREW - this cafe offers original local coffee such as arabica,
robusta, liberica, and excelsa. Their method of serving their coffee is what
they call Pour-over coffee, this way it will make the coffee more tastier
and it has a lot of health benefits. They also serve other beverages such as
beer and juice.
● I LOVE MILKTEA - this milktea shop is located in Jeda’s Hotel in Tagaytay.
This shop is known for its delicious milk tea yet affordable prices.
● STARBUCKS - Starbucks in Tagaytay is one of the shop's most tourists visit in
tagaytay. Aside from its high quality coffee that they serve, tourists love to
see the view of Tagaytay.

LOCAL ENVIRONMENT

Tagaytay is a component city in Cavite province, divided into 34

Barangays. This city is one of the persistent places in the South due to its
excellent view, adding its overlook Taal Lake and cold weather. In the year 2020
census, there are 85,330 population of Tagaytay, with a density of 1,300
inhabitants per square kilometer or 3,400 inhabitants per square mile. Being a
second class city, Tagaytay is receiving more than Php20 million but not over
Php30 million. Traffic in Tagaytay has worsened because it is one of the top
tourist and local destinations. These encompass traffic through the
Tagaytay-Nasugbu Road, which incorporate a lot of vehicles coming from or
proceeding to the Sta. Rosa-Tagaytay Road. There are vehicles using the
Aguinaldo Highway. Traffic personnel appear helpless as they strive to be in
charge of the traffic movements.
Tagaytay wedding cafe, which is located in Terrace Hill Resort, is one of
the major employers that may affect some cafes, they cater cocktail parties,
wedding ceremonies, and even bridal showers.

COMPETITIVE STRATEGY

Cost leadership is our competitive strategy, Rhythm & Brew produces low
cost products with high quality products, services, and other offerings.
Compared to other cafes, we will lower the price of our products to make it
more affordable, especially as we are targeting students who are on a budget
to enjoy our products and services.

VI. MANAGEMENT AND ORGANIZATION DESCRIPTION

EMPLOYEE REQUIREMENTS, ROLES AND RESPONSIBILITIES
1. CEO
- Responsible for managing a company's overall operations. This includes
delegating and directing agendas, driving profitability, managing
company organizational structure, strategy, and communicating with the
board. A CEO has to make many of a company's biggest decisions while
simultaneously managing its overall resources and operations.
QUALIFICATIONS:
● Bachelor’s degree or master's degree in a relevant discipline or MBA
● Experience in a senior management position
● Knowledge of profit and loss, balance sheet and cash flow management,
and general finance and budgeting
● Ability to build consensus and relationships among executives, partners,
and the workforce
● Understanding of human resources and personnel management
● Ability to understand new issues quickly and make wise decisions
● Negotiation skills

2. FINANCIAL MANAGER
- Creates financial reports, direct investments, and devises plans and
strategies for a company's or organization's long-term financial benefit.
QUALIFICATIONS:
● Bachelor's degree in finance or accounting
● Excellent ability to problem solve along with solid analytical skills,
understanding of the business process, and systems optimization.
● Comfortable interacting with all levels of management in multiple areas.
● Strong knowledge of financial reporting
● Ability to review data and make relevant management decisions
● Strong financial system and business administration understanding
● Strong Excel skills
 3. MARKETING MANAGER
- Responsible for developing, implementing and executing strategic
marketing plans for an entire organization or lines of business and brands
within an organization in order to attract potential customers and retain
existing ones.
QUALIFICATIONS:
● Bachelor's degree in marketing, finance, business administration, or similar
● Proficiency in electronic marketing automation software such as HubSpot
Marketing
● Extensive knowledge of marketing strategies, channels, and branding
● Strong leadership, communication, and collaboration abilities
● Exceptional analytical and problem-solving skills
● Strong time management and organizational abilities

4. MARKETING OFFICER
- In charge of putting marketing strategies into action. Assisting the
marketing manager in overseeing the operations of the department.
Organizing and take part in marketing activities or events to increase
brand awareness
QUALIFICATIONS:
● Bachelor’s degree in marketing, communications or related
● Excellent interpersonal skills
● Solid knowledge of market research techniques
● Thorough knowledge of social media and web analytics
● Solid understanding of research techniques

5. OPERATIONS MANAGER
- Oversee operational activities at all organizational levels Their
responsibilities include hiring and training employees, as well as managing
quality assurance programs. An operations manager also plans process
improvements to ensure that everyone's tasks are completed on time.
QUALIFICATIONS:
● Bachelor’s degree in operations management or related field
● Ability to build consensus and relationships among managers, partners,
and employees
● Excellent communication skills
● Experience in management, operations, and leadership
● Solid understanding of financial management
● Understanding of general finance and budgeting, including profit and
loss, balance sheet, and cash-flow management

6. CASHIER
- Responsible for receiving payments and issuing receipts, gift-wrapping
packages and keeping track of all cash and credit transactions and
ensuring that prices are correct. They also assist customers by explaining or
recommending items, answering questions, and processing exchanges or
refunds.
QUALIFICATIONS:
● Ability to handle transactions accurately and responsibly
● Should be courteous and attentive to customers while they scan and
count items and collect payments
● Should be skilled multitaskers with basic math skills and computer skills
● Ability to stand, walk, lift heavy items, and work with other team members
in a fast-paced environment to provide excellent service
● Attention to detail
● Helpful, courteous approach to resolving complaints

7. BARISTA
- Baristas prepare and serve beverages like coffee and tea, as well as
foods like sandwiches, muffins, and cookies. They package coffee blends,
prepare coffee and tea, explain menu items to customers, clean, and
make every effort to keep customers comfortable and satisfied.
QUALIFICATIONS
● A high school diploma or equivalent
● Ability to read and speak English proficiently
● Strong ability to multitask
● Exceptional customer service and communication skills
● Training and willingness to continue learning about food and beverage
preparation.
● Experience in food and beverage preparation or customer service
preferred.

8. WAITER
- Responsible for greeting and seating guests, taking guest orders,
effectively communicating them to the kitchen, memorizing the menu,
and offering recommendations to upsell appetizers, desserts, or drinks
QUALIFICATIONS:
● Endurance to walk and stand for long hours
● Flexible work hours
● Ability to remain calm and professional with difficult customers
● Excellent interpersonal skills

9. UTILITY WORKER
- They are responsible for cleaning and maintaining company premises and
equipment. Their job is to maintain the upkeep of company facilities,
repair broken equipment, inspect finished projects, and comply with state
health and safety regulations.
QUALIFICATIONS:
● High school diploma or GED.
● Previous experience as a utility worker.
● Ability to read and interpret written work orders.
● Knowledge of cleaning equipment and techniques
OPERATION OF THE BUSINESS
The R&B Cafe will operate during 9:00am - 10:00pm, and business hours
will be 10:00 am - 9:00 pm.

EMPLOYEE TIME IN TIME OUT

Financial Manager 9:00AM 6:00PM

Marketing Manager 9:00AM 6:00PM

Marketing Officer 9:00AM 6:00PM

Operations Manager 1:00PM 10:00PM

Cashier (1) 9:00AM 6:00PM

Cashier (2) 1:00PM 10:00PM

Barista (1) 9:00AM 6:00PM

Barista (2) 1:00PM 10:00PM

Waiter (1) 9:00AM 6:00PM

Waiter (2) 1:00PM 10:00PM

Utility Worker (1) 9:00AM 6:00PM

Utility Worker (2) 1:00PM 10:00PM

BENEFITS OF THE EMPLOYEE

OVERTIME
- Overtime pay rates differ depending on whether the overtime work is
performed on a regular work day, a holiday, a rest day, or at night.
PREMIUM PAY
- Premium pay is given on non-working days (rest days/special holidays) like
All Saints Day and etc.
HOLIDAY PAY
- The Labor Code requires the payment of an employee’s daily basic wage
for all non working regular holidays like New Years Day, Maundy Thursday,
Good Friday, Araw ng Kagitingan, Labour Day, Indepence Day, National
Heroes Day, Eidl Fitr, Eidl Adha, Bonifacio Day, Christmas, and Rizal Day.
SERVICE INCENTIVE LEAVE
- Every employee with at least one (1) year of service is entitled to five (5)
days of paid Service Incentive Leave (SIL). SIL can be used for sick and
vacation leave. The unused SIL at the end of the year can be converted
into cash at the current salary rate. It is up to the employer to grant
additional vacation time.
MATERNITY LEAVE
- Each pregnant employee, whether married or not, is entitled to a
maternity leave benefit of 60 days for a normal delivery or miscarriage, or
78 days for a caesarean delivery, for up to four pregnancies.
SOLO PARENT LEAVE
- Employees who are solo parents are entitled to special leave under
Republic Act No. 8972. To be eligible for a solo-parent leave, the
employee must have worked for at least a year and have taken at least 7
working days of leave in the previous year.
13th MONTH PAY
- Every year, all rank-and-file employees are paid for the 13th month. This
benefit is required by law to be paid before December 24th. Employees
who resigned or were terminated from the company before the 13th
month pay was paid are still entitled to it in proportion to the length of
time they worked during that year. The 13th month pay must be at least
one-twelfth of the total basic salary earned by each employee during the
calendar year.
SEPARATION PAY
- Articles 283 and 284 of the Philippine labor code state that an employee
can claim separation pay if his contract is terminated for authorized
 reasons. Article 282 states that an employee who is fired for just cause
(neglect of duties, fraud, crime, etc.) is not entitled to separation pay.
RETIREMENT PAY
- Employees in the private sector may retire at any time between the ages
of 60 and 65, when retirement becomes mandatory, and must have
worked for the company for at least 5 years. For each year of service,
retirement pay must be at least half of a month's salary, and a fraction of
at least 6 months is thus considered one whole year.
GROSS BENEFITS & DE MINIMIS BENEFITS
- Employers frequently provide cash or in-kind compensation to employees
in order to reward and incentivize employee performance. Furthermore,
small-value compensations, known as De Minimis Benefits, are excluded
from the calculation of gross income. De Minimis Benefits are intended to
promote employee well-being and efficiency and are limited to
small-scale facilities or privileges. De minimis includes uniform and clothing
allowances, actual medical benefits, monetized unused vacation leave
credits, Christmas, special festivities, or special circumstances gifts, and
daily meal allowances during overtime work that do not exceed 25% of
the basic minimum wage.
SSS (Social Security System)
- Employees in the private sector are required by law to be covered by the
Social Security System (SSS). Both the employer and the employee make
monthly contributions to the SSS based on each employee's gross monthly
pay. SSS benefits, in turn, cover maternity, retirement, sickness, disability,
death, and pension benefits.
PHILHEALTH
- Medical coverage is mandatory and automatic for all SSS-covered
employees. Both the employer and the employee make equal monthly
contributions to PhilHealth.
HOME DEVELOPMENT MUTUAL FUND/ PAG-IBIG
- The Home Development Mutual Fund (HDMF), also known as the Pag-IBIG
Fund, is required of all employees who are covered by the Government
 - Service Insurance System (GSIS, for Filipino government employees) or the
Social Security System (SSS). The HDMF, established by Republic Act No.
9679, addresses two critical needs for Filipino workers by establishing a
national savings program and an affordable housing financing system.
Members of the HDMF benefit from savings, short-term loans, and access
to low-cost housing programs. The fund is funded by both the employee
and the employer.

VII. PRODUCTS AND DESCRIPTION

R&B (Rhythm & Brew) will have a wide range of high-quality products,
enabling us to provide full service. Coffee flavors with such varieties as espresso,
mocha, caramelicious, white mocha, candy bar latte, and brewed coffee.
Complementing the coffee will be a smoothie line including wild berry,
strawberry, peach, mango, and lemonade. English teas will be also available, as
well as flavored teas. There will also be juice, soda, and non-alcoholic
beverages available. Pastries obtained from an outside supplier, freshly made
and delivered daily, will round out the simple menu line. The simple pastry
varieties will alter with the seasons, but the mainstays will be cookies, buns,
muffins, slices of bread, scones, and rolls. A local bakery will provide all pastries
daily while the menu will be minimal and simple.

PRODUCT/SERVICE DESCRIPTION % OF SALES

Coffee and Espresso Brewed coffee and Out of 350 products

espresso-based coffee made for the first week
drinks such as mocha, of the operation, 71%
white mocha, candy bar are expected to be sold
latte, and caramelicious. since the coffee bean
These are combined and milk used were
with steam milk and/or carefully picked from
other additives like the best local roasters to
cocoa, caramel, etc., bring you a consistent
 and will be served hot or delicious taste.
with ice.

Smoothies Wildberry, strawberry, Out of 350 products

peach, mango, and made for the first week
lemonade are some of of the operation, 43% is
the flavors available. the percentage of the
expected sales for the
smoothies, having
mango flavor as the best
seller among all.

Juice All juice will be made Out of 350 products

from fresh fruits. made for the first week
of the operation, 79% of
them will be expected
to be sold since all juices
were made from fresh
fruits.

Teas English and flavored Out of 350 products

teas. Hot or ice blended. made for the first week
of the operation, 91% of
them will be expected
to be sold since teas are
all premium and organic
loose leaf teas.

Soda Sparkling spring water, Out of 350 products

flavoring, and ice. made for the first week
Blended or on the rocks. of the operation, 60% of
it is expected to be sold
since the sodas we offer
range from usual to most
unusual colas from
around the world.

Cakes The perfect companion Out of 350 products

 for a good cup of made for the first week
coffee are sweet snacks. of operation, 57% of it is
Offering various slices of expected to be sold
cake for customers that since we offer a variety
are craving something of cakes such as red
sweet. velvet, cheesecake, and
carrot cake.

Bread A truly delicious bread Out of 350 products

entirely milled from made for the first week
whole wheat grains and of the operation, 57% of
flour. it is expected to be sold
since the bread is all
tasty and freshly made
like our classic banana
bread.

Muffins A variety of flavors and Out of 350 products

toppings will all be made for the first week
available. of the operation, 100%
of it is expected to be
sold since we offer a
wide variety of muffins
such as
Apple-Cinnamon
Muffins, and Berrylicious
Blueberry Muffins,
Cornbread Muffins,
Honey Muffins, Triple
Chocolate Chunk
Muffins and more.

Cookies Each cookie is baked or Out of 350 products

cooked with chocolate made for the first week
chips. of the operation, 89% is
the percentage of the
expected sale of the
cookies, having a
 contrasting texture and
flavors straight from the
oven perfect for snacks
and bites.

Milktea It is very refreshing with Milk Tea products were

healthy ingredients such expected to be sold out
as milk and tea. 100% for the first week of
the cafe operation since
it is popular among
youngsters and can be
attributed as a
convenient drink.

We are passionate about our products at R&B (Rhythm & Brew), and we intend
to consistently serve the best quality product by
● Purchasing premium beans and snacks while ensuring their freshness.
● Using a high-end product machine and other related equipment.
● Providing professional training to baristas and staff.

Our underlying philosophy in product selection is to choose lines that will provide
our customers with consistent quality, competitive prices, and product
satisfaction. Not only are our products important to us, but so is our service.

VIII. OPERATING PLAN

FACILITIES

● The shop space, which can range in size from kiosks of less than 400 sq.
feet to an indoor space upwards of 1000 sq. feet that could comfortably
support more than 50 guests at a time.
● Well-maintained building in an excellent location.
● Approximately 500 square feet of outdoor patio space, with lockup racks
for bicycles.
 ● The building owner will be is responsible for trash collection, recycling, pest
control, and security
● Utilities (water, electricity, gas, internet, phone) are estimated to be PhP
17,500 per month

STAFFING

● We will have two shifts in our café, each with two staff members. When it’s
peak hour during lunch, there will be night shift coming in to cover the
morning shift (five staff members during peak hour).
● Having two cashiers, baristas, waiters and utility workers on a shift means
there is always a person available in case of someone calling in sick or an
emergency.
● We will also make sure that everyone is clear on their tasks beforehand to
avoid confusion on staff members, for example starting their afternoon
shift can be instructed to focus on bussing tables and stocking fridges
while the others make drinks to keep service running smoothly without too
many people behind the bar.
● To ensure staff loyalty we will also read up on some local labor laws and
make sure that we comply with them. And will give staff members
adequate time between shifts, an appropriate number of hours per week,
and the correct rate of pay for any overtime.

EQUIPMENT
The following equipment will be purchased:
● Espresso Machine (15,000)
● Coffee maker - 100 cups (₱68,800)
● Coffee grinder (₱10,500)
● Tea maker (₱3,299)
● Counter area equipment (counter top, sink, ice machine, etc.) (₱55,000)
● Furnitures (tables and chairs) (₱50,000)
● Serving area equipment (plates, glasses, cups, flatware) (₱25,000)
 ● Store equipment (cash register, signage) (₱17,999)
● Office equipment (PC, fax/printer, file cabinets, table, chair) (₱41,669)
● Food service equipment (microwave, refrigerator, blender)(₱81,500)
● Storage hardware (bins, utensil rack, shelves)(₱15,000)
● Other miscellaneous expenses (₱20,000)
Maintenance contracts for the equipment will be negotiated with local vendors.

SUPPLIES

● We have negotiated an agreement with Coffeellera to supply coffee

beans that we need.
● Our cakes, breads, muffins and cookies will be supplied by our chosen
local shop which is the Tous les Jours.
● Retail supplies (napkins, coffee bags, cleaning material, etc.) as well as
the Office supplies will be ordered and supplied on a daily basis at IKEA.

IX. FINANCIAL PROJECTION AND NEEDS

FINANCIAL NEEDS

We will invest ₱700,000 to cover the start-up expenses and assets needed
plus deficient spending in the early months.

The start-up expenses of ₱95,500 include:

ITEM AMOUNT

Legal fees for acquiring licenses and permits, as well as ₱10,500

accounting services

Insurance (general liability, workers’ compensation and ₱55,000

property casualty)

Other start-up expenses ₱30,000

The required start-up assets of ₱543,082 include:

● Cash in the bank with an amount of ₱100,000 for employees and owner’s
salaries for the first month.

● Start-up inventory of ₱75,000 which includes:

ITEM AMOUNT

Coffee beans ₱15,000

Baked goods and beverages ₱25,000

Retail supplies (napkins, coffee bags, cleaning material, etc.) ₱20,000

Office supplies ₱15,000

● Equipment for the total amount of ₱428,082:

ITEM AMOUNT

Espresso machine - Cups per brew: 15 ₱39,315

Coffee maker - 100 cups ₱68,800

Coffee grinder ₱10,500

Tea maker ₱3,299

Food service equipment (microwave, refrigerator, blender) ₱81,500

Storage hardware (bins, utensil rack, shelves) ₱15,000

Counter area equipment (counter top, sink, ice machine, ₱55,000

etc.)

Furnitures (tables and chairs) ₱50,000

Serving area equipment (plates, glasses, cups, flatware) ₱25,000

Store equipment (cash register, signage) ₱17,999

Office equipment (PC, fax/printer, file cabinets, table, chair) ₱41,669

Other miscellaneous expenses ₱20,000

X. CONCLUSION AND FUTURE PLANS

CONCLUSION

The proposed business will be a great progress, because we provide

genuinely unique products in a fast-paced environment. Skilled and flexible
employees that are able and qualified to manage and assist the business. The
availability of materials and equipment of the establishment are present.
Location wise for the proposed business is very upright since the place of the
said establishment is very accessible and is the best spot for tourism
enhancement. The proposed business would boost Tourism, encouraging
people to visit sites that are near to the establishment, thus giving additional
options for consumers. Establishment would be a place of enrichment and will
uphold the culture of the locality by serving the product itself. Proposed business
will inspire and nurture the human spirit by supporting the local suppliers and
providing opportunities for employment.

FUTURE PLANS

● Put up other branches in other places or areas in the Philippines after

gaining a name in the Industry.
● Add new products and services to the establishments for the customers to
have more choices to choose from.
● Continue to train and improve the skills of the employees to sustain their
excellent service to the customers
 ● Continue to innovate the facilities and services in tune with current trends
and forge joint ventures in the future be it with a local partner, foreign
companies.
● R&B Cafe will do business with the community and make them as the
prime advertisers of the business.
● R&B Cafe will always continue to put quality first to serve the best.

XI. EXHIBITS AND APPENDICES

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REFERENCES:

Dayanan (2022) Salary compensation and benefits in the Philippines.

https://www.dayananconsulting.com/payroll-salary-compensation-benefits-phili
ppines/

Ingram, D. (2019). Coffee shop marketing strategies. Retrieved from

https://smallbusiness.chron.com/coffee-shop-marketing-strategies-10413

Revel Systems. (2021, March 16). Coffee Shop Marketing Plan: Strategies For Your
Business. Revel System Blog. Retrieved from
https://blog.revelsystems.com/coffee-shop-marketing-plan/