“A FEASIBILITY STUDY OF ESTABLISHING SIP-LICITY CAFE IN

BRGY. OCAMPO-RIVERA, JAEN, NUEVA ECIJA”

A FEASIBILITY STUDY

Presented to the College of Management and Accountancy

PHINMA-Araullo University

In partial Fulfillment of the Requirement for the Degree

BACHELOR OF SCIENCE IN BUSINESS ADMINISTRATION-

MARKETING MANAGEMENT

APOLONIO, CHARIS LUTAP, GILBERT

CAUZON, PRINCESS A. PANGILINAN, FLORENZ

DE GUZMAN, WENDIELYN P. RAVALO, JACKIE R.

DELA CRUZ, EMMANUEL REYES, MYRA E.

DELEÑA, LOVELY ROSE P. SAN JOSE, CATHERINE A.

ERESE, RONALYN D. TADEO, KAY CLARISSE D.

 CHAPTER I

THE PROBLEM AND ITS SETTING

INTRODUCTION

Coffee shops are rapidly expanding in this new era. The

arrival of this coffee shop has had an impact on young adults'

behavioral patterns. A number of factors, including price

perception, service quality and lifestyle, influence the

purchase of coffee in a variety of cafés.

As the cafe market continues to grow, many entrepreneurs

are considering opening their cafe businesses. Cafes have

long been an integral part of our culture, serving as a

meeting place for friends, inspiration for artists, and

resting places for those who wish to be alone. Cafes have

evolved over the last few years into more than a place to get

a cup of coffee; they've become a hub of creativity and

community.

In particular, coffee shops are becoming trendy for young

adults and Generation Z. They see them as a way to escape

home, work or school. Coffee shops are becoming more and more

popular due to the fact that coffee is part of Filipino

culture in terms of drinking and social interaction.

1
THE PROPOSED PROJECT

"Sip-licity Cafe" will be the name of the expected

business. Sip-licity Cafe creates a friendly and welcoming

environment by providing excellent customer service, high-

quality products, and a delightful dining experience and

creating a community of passionate customers and coffee

lovers. To help them refresh their minds, customers can come

and enjoy a peaceful place.

BUSINESS NAME AND LOGO

Figure 1: Business Logo

The word "Sip-licity" is a play on words, combining "sip"

with "simplicity." The color brown-themed design of the logo

represents the color of the coffee to make customers feel

warm, comfortable, and safe.

2
BUSINESS TAGLINE

“Sip better to feel better” is the business tagline which

means the coffee shop wants the customers to feel at ease in

every sip they take of the drinks offered in Sip-licity Cafe.

MISSION

To provide customer satisfaction by offering the best

coffee experience through strategic promotions, appealing

product displays, and efficient service.

VISION

To be the leading coffee shop in Nueva Ecija, offering

high-quality coffee and food with a commitment to providing

convenience to customer experience.

GOALS

 Build a good local reputation

 Attract regular customers

 To be a profitable Cafe business

OBJECTIVES

 Increase daily sales

 Prioritize customer satisfaction

 Improve service efficiency within the next three months

3
THE PROPOSED LOCATION

The proposed location is at Brgy. Ocampo-Rivera, Jaen,

Nueva Ecija. The rental space measures 18 square meters.

Figure 2: The Proposed Business Location

REVIEW OF RELATED LITERATURE

This section presents the different ideas, and concepts

of the different authors that are relevant to this study.

FOREIGN LITERATURE

According to Hernisa et al. 2023, "The Phenomenon of the

Rise of Coffee Shops after the Pandemic on Leisure and

Recreation Activities in the Renon Area (Case of SAGA Coffee

Visitor Motivation). "In Indonesia, coffee drinking has

become a lifestyle that is characterized by the growth of

coffee shops. The number of coffee shops in Indonesia is

growing very rapidly. There are many coffee shops in different

parts of the country in fairly proximity. The lifestyle of

4
the urban community, which likes to gather with friends,

family, relationships, and so on, is the reason for the rise

of this coffee shop. Different coffee shops offer a

comfortable and pleasant environment for visitors, by

providing unique accommodation interior designs, beautiful

paintings, music, coffee history, and even unique quotes that

can increase visitor interest. Therefore, the rise of coffee

shops after the pandemic made the industry thrive up to this

day.

According to Wiastuti, et al. (December 2020), “The

Coffee Shop Experience for All”. Coffee consumption exhibited

through cafés or coffee shops, is a resource for the

development of coffee-related tourism. Regarding attracting

more customers and offering a strong value proposition, coffee

shops must be accessible for all, barrier-free, and implement

the concept of accessible tourism. The results also identify

how each dimension of accessible tourism was implemented by

each coffee shop. Therefore, this study can contribute to the

quality improvement of the industry to ensure that coffee

shops can be accessed by everyone.

According to Belis (2024) "Coffee Consumption Statistics

US". The biggest coffee drinker in the United States is people

aged 60 and older. There is a high rate of 72% coffee

5
consumption in this age group. Due to the fact that they

usually live at a stage of their lives with stable incomes

which allow them to regularly purchase coffee, young adults

aged between 25 and 39 are particularly important for coffee

sales. Young adults aged 18-24 years are often seen as young

professionals who view coffee as a beverage and social or

work related activities. Therefore, they are likely to be

frequently go to coffee shops and becoming increasingly

interested in specialty coffees. By contrast, the consumer

age 13 to 18 years accounted for 37% of coffee consumers.

According to Tim Cooper (2021)"How much do coffee shop

owners make?". The raw material used will be cheap and can

make a gross margin of up to 95% on each cup of coffee or

tea. Which is much higher than the 60% that can usually get

from food. In order to generate a profitable turnover of

profits, cafés must aim for a gross margin of 75 % which means

selling everything 4 times the cost of materials and

ingredients.

According to Katherine Boyarsky (2024) "How to Make a

Coffee Shop Menu Pricing Strategy", with a markup of up to

80% or higher for every drink, coffee has some of the highest

markup in the hospitality industry. This markup covers the

6
direct cost and all associated indirect costs, including 80%

for preparing a cup of coffee.

LOCAL LITERATURE

According to an article in the Manila Bulletin of (2023).

Why, among Filipinos, a popular coffee shop chain is used as

their personal office? A coffee shop is used by some customers

as a place of work. Meetings, interviews, and socials are

also being done at the cafe. Due to the fact that cafes

invites a great ambiance to customers, they tend to consider

the place as their spot to get their tasks done.

According to Cuñado et al. (2020). Cafes mainly sell

refreshing drinks, snacks, and light meals, with coffee being

the main product. The cafe provides comfort for the diner

with a pleasant atmosphere and good interior, which

contributes to customer's experience.

According to Zabala et al. (2022), "Analysis of the

different caffeine product preferences among all age groups

within the Philippines". The characteristics of the coffee

lovers, two hundred twenty-three (223) or 73.8% are between

15-20 years old, while sixty-nine (69) or 22.8% are between

21-30 years old, age between 31-40 are six respondents which

is about 2%, the 41-50 years old are had four respondents

around 1.3%, lastly between the age 51-60 had only one

7
respondent. This shows that most coffee drinkers are teen

agers who are most likely will become the customers of a

coffee shop in the area.

CONCEPTUAL FRAMEWORK

A conceptual framework is an analytical tool with several

variations and contexts. A complete conceptual framework helps

the researchers assess the study's primary purpose and develop

appropriate research questions and methodology.

INPUT PROCESS OUTPUT

Demographic
Profile Distribution FEASIBILITY
Name (Optional) STUDY OF
of survey ESTABLISHING
1. Age SIP-LICITY
questionnaire CAFE IN
2. Location
BRGY.
Aspects of to gather and OCAMPO-
Feasibility Study: RIVERA,
analyze the
 Marketing Aspect
JAEN, NUEVA
 Management
ECIJA.
data.
Aspect
 Financial
aspects
 Technical
aspects
 Socio-economic
aspects

Figure 3: Conceptual Framework

This Figure shows the Conceptual Framework of the study. The

researchers used the IPO (Input-Process-Output) model. The input

8
elements wherein the age, Location, marketing, technical,

management, financial, and socioeconomic aspects are included in

the figure. In the process of the study includes interviews and

survey questionnaires to gather the information of the respondents.

Lastly, the output will serve as a result whether Sip-Licity Cafe

in Brgy. Ocampo-Rivera, Jaen Nueva Ecija is feasible.

STATEMENT OF THE PROBLEM

The general problem of this study is to determine the

viability and feasibility of establishing a coffee shop in

Brgy. Ocampo-Rivera, Jaen, Nueva Ecija.

Specifically, it also aims to answer the following questions:

1. What is the demographic profile of the respondents in

terms of:

1.1 Name (Optional)

1.2 Age

1.3 Location

2. How may the marketing aspect of the feasibility study

be described in terms of:

2.1 Market Description;

2.2 Descriptive Target Market;

2.3 Demand and Supply Analysis;

2.4 Product;

2.5 Pricing;

9
 2.6 Packaging;

2.7 Place;

2.8 SWOT Analysis;

2.9 Promotion; and

2.10 Projected Sales?

3. How may the management aspect of the feasibility study

be described in terms of:

3.1 Form of Business Organization;

3.2 Organizational Structure;

3.3 Legal Requirements; and

3.4 Company/Store Policies?

4. How may the financial aspect of the feasibility study

be described in terms of:

4.1 Assumptions;

4.2 Total Project Cost;

4.3 Source of Financing;

4.4 Projected Income Statement;

4.5 Projected Cash Flow Statement;

4.6 Projected Balance Sheet;

4.7 Statement of Changes in Equity;

4.8 Projected Sales;

4.9 Permits and Licenses;

4.10 Depreciation Schedule;

4.11 Rent Expense;

10
 4.12 Annual Income Tax Expense;

4.13 Financial Statement Analysis;

4.14 Payback Period;

4.15 Return on Investment; and

4.16 Break-even?

5. How may the technical aspect of the feasibility study

be described in terms of:

5.1 Operation System and Process;

5.2 Service;

5.3 Production Location;

5.4 Layout;

5.5 Machinery and Equipment;

5.6 Utilities and Other Operating Costs; and

5.7 Waste Management?

6. How may the socioeconomic aspect of the feasibility

study be described in terms of:

6.1 Internal Customer

6.2 External Customer

6.3 Government

6.4 Community

11
SCOPE AND DELIMITATION

This feasibility study is about establishing the Sip-

licity Café at Brgy. Ocampo Rivera, Jaen, Nueva Ecija and

focuses on the discussion of the important processes involved

in its establishment. It will focus on gathering data through

face-to-face survey questionnaires for the residents located

in Brgy. Dampulan, Ocampo-Rivera, San Roque, San Vicente, and

Santo Tomas South of Jaen, Nueva Ecija to measure the

feasibility of the proposed business and how the respondents

prefer it to be. Our target is ages 16 years old and above.

The study will be conducted in the 2nd semester of the school

year 2023-2024.

SIGNIFICANCE OF THE STUDY

This study is made to provide convenient, efficient, and

sustainable coffee shops for consumers. This study will

benefit the following entities:

Business Owner and Entrepreneur

This research can be a useful guide for owners on how

to meet customer needs and make necessary changes. It can

also be used as a basis for increasing sales and improving

business operations.

12
Customer

The existence and currents standing of Sip-licity will

be the awareness and allows to reach the people who are most

likely to be interested in your product or service.

Local Government of Jaen, Nueva Ecija

This will help the local government by creating job

opportunities and getting more money circulating in the

local economy.

Researchers

This will provide researchers with information on

business and allow them to use this study as a basis for their

work.

Future Researchers

With the success of this feasibility study, future

researchers can use this feasibility study as the source for

their research topic and as a recommendation.

DEFINITION OF TERMS

Below is the operational definition of the term used in

the study to facilitate the reader’s understanding of the

concepts and ideas presented herein.

13
Beverages: Beverages are any potable liquid, especially one

other than water, such as tea, coffee, beer, or milk.

Coffee: A beverage brewed from the roasted and ground seeds

of the tropical evergreen coffee plant.

Coffee Shop: A coffee shop is a kind of restaurant that sells

coffee, tea, cakes, and sometimes sandwiches and light meals.

Pastry: A sweet baked food made of dough, especially the

shortened paste used for pie crust and the like.

Peaceful: Peaceful relates to a state or time of peace.

Refresh: Refresh is to take refreshments, especially food or

drink.

Sip: Sip is a verb that means to take a small amount of liquid

into the mouth with the lips, or to drink repeatedly.

14
 CHAPTER II

RESEARCH METHODOLOGY

This chapter presented the research method, research

design, the locale of the study, and respondents of the study.

The research materials and instruments, and data gathering

procedure.

RESEARCH DESIGN

The researchers will use a descriptive and quantitative

method and apply them through the administration of survey

questionnaire and conducting key important interviews. This

method will allow the researcher to gather, classifying,

recording, analyzing, and interpreting the relevant data

accumulated from conducting surveys from the respondents.

This research typically involves a large sample size and uses

statistical analysis to make inferences about a population

based on the data collected.

15
LOCALE OF THE STUDY

The Sip-licity Cafe is located along the way at Brgy.

Ocampo-Rivera, Jaen, Nueva Ecija.

Figure 4: Map of Brgy. Ocampo-Rivera Jaen, Nueva Eija

16
 Figure 4.1: Vicinity Map of Jaen, Nueva Ecija

RESPONDENTS OF THE STUDY

The respondents of the study were the 5 chosen barangays

which include of Brgy. Dampulan, Brgy. Ocampo-Rivera, Brgy.

San Roque, Brgy. San Vicente, and Brgy. Santo Tomas South of

Jaen, Nueva Ecija. According to the Municipality of Jaen,

17
Nueva Ecija of the 2023 census, the five barangays have a

total population of 10,412, ages 16 years old and above. The

researchers selected these respondents to aid in the study's

better interpretation because of the huge population and the

location of the research, convenience stratified random

sampling was used by the researchers to choose respondents

easily. The potential respondents completed a checklist-style

survey questionnaire to assist the researchers in obtaining

accurate information regarding their preferences and to

foster a positive working relationship with the potential

client. The Raosoft application was used with a 5% margin of

error and 95% confidence level to obtain the 371 sample

respondents for the five barangays.

Barangays No. of No. of Percentage of

Population Respondents Distribution
Dampulan 3,664 131 35.31%
Ocampo-Rivera 707 25 6.74%
San Roque 1,251 44 11.86%
San Vicente 1,170 42 11.32%
Santo Tomas 3,620 129 34.77%
South
Total 10,412 371 100%
Source: Municipality of Jaen

Table 1: Based on the 2023 Census the Total Population of

Barangay’s at Jaen Ages 16 and above, Nueva Ecija for Year
2023

18
 Figure 5: Raosoft sample size calculator

MATERIALS AND INSTRUMENTS

The materials and instruments utilized in this study are

the measurement equipment used to gather, collect, measure,

and evaluate data about the research subjects. When conducting

the study, the researchers themselves served as the primary

instrument.

PRIMARY DATA

The primary data are the information acquired by the

researchers from the chosen respondents using the face-to-

face survey questionnaire.

19
  SURVEY QUESTIONNAIRE

The researcher used questionnaires to collect the

necessary data for the study. There are several

questions on the survey form.

 INTERVIEW

The researchers will be conducting an interview

with the residents of Brgy. Dampulan, Brgy. San

Roque, Brgy. Ocampo-Rivera, Brgy. San Vicente, and

Brgy. Santo Tomas South of Jaen, Nueva Ecija.

Addressing and providing for the necessities will

be the focus of the interview.

SECONDARY DATA

Gathering from the internet and related studies made on

the subject. The materials came from the internet and various

other sources.

20
DATA GATHERING PROCEDURE

REQUEST LETTER

APPROVAL OF QUESTIONNAIRE

DISTRIBUTION OF QUESTIONNAIRE

COLLECTION OF QUESTIONNAIRE

TABULATION, ANALYSIS AND PRESENTATION

OF DATA

Figure 6: Data Gathering Procedure Diagram

Step 1: The researchers are going to propose a letter asking

the population of residents in Brgy. Dampulan, Brgy. Ocampo-

Rivera, Brgy. San Roque, Brgy. San Vicente, and Brgy. Santo

Tomas South of Jaen, Nueva Ecija.

Step 2: The researchers formulated a survey questionnaire and

submitted it for the approval of feasibility adviser Mr.

Nepthaly Feliciano, MBA.

21
Step 3: The researchers will distribute a survey questionnaire

that contains two parts; The first part will be asking about

the data and information of the respondents. The second part

will consist of questions designed to determine the

respondent's preferences.

Step 4: The researchers will collect the questionnaire after

the respondents answered.

Step 5: The researchers will tabulate, analyze, and interpret

the gathered data for the final presentation.

DATA ANALYSIS AND TECHNIQUE

The following statistical tools were employed to treat

the data:

Frequency count- Frequency distribution, which was the

simplest form of presenting research data, it was used to

tabulate the frequent occurrences of the respondents’ answers

on the demographic profile.

Percentage Distribution- It was used to determine what

proportion of the respondents belongs to a specific category

in terms of their demographic data.

22
 Tally Sheet of Survey Questionnaire

This tally sheet of the survey supervises the

presentation, analysis, and interpretation of data gathered

by the researchers from the questionnaire distributed to the

respondents.

Profile of the Respondents

This section describes the profile of the respondents

according to the age and location of the respondents.

1. Age

Age Frequency Percentage

16-20 years old 88 23.72%

21-25 years old 143 38.54%
26-30 years old 68 18.33%
31-35 years old 37 19.97%
36-40 years old 29 7.82%
41 years old and 6 1.62%
above
Total: 371 100%
Table 2: Age of the Respondents

It can be seen in the table the demographic profile of

respondents in terms of their age. The result shows that of

over 371 total respondents, 88 or 23.72% of the respondents

are in age of 16-20 years old, 143 or 38.54% of the respondents

are in the age of 21-25 years old, 68 or 18.33% of the

23
respondents are in the age of 26-30 years old, 37 or 19.97%

of the respondents are in the age of 31-35 years old, while

the 29 or 7.82% of the respondents are in the age of 36-40

years old, and lastly 6 or 1.62% of the respondents are in

the age of 41 years old and above. In summary, the result

shows that most of the respondents are between the ages of 21

to 25 years old.

2. Location
Location Frequency Percentage

Brgy. Dampulan 131 35.31%

Brgy. Ocampo- 25 6.74%
Rivera
Brgy. San Roque 44 11.86%
Brgy. San Vicente 42 11.32%
Brgy. Santo Tomas 129 34.77%
South
Total: 371 100%
Table 3: Location of the Respondents

It can be seen in the table the demographic profile of

respondents in terms of their location. The result shows that

of over 371 total respondents, 131 or 35.31% of the

respondents are living in Brgy. Dampulan, 25 or 6.74% of the

respondents are living in Brgy. Ocampo-Rivera, 44 or 11.86%

of the respondents are living in Brgy. San Roque, while 42 or

11.32% of the respondents are living in Brgy. San Vicente,

and lastly 129 or 34.77% of the respondents are living in

24
Brgy. Santo Tomas South. In summary, most of the respondents

are living in Brgy. Dampulan.

Survey Questionnaire

This part presents the viability and feasibility of

establishing a coffee shop in Brgy. Ocampo-Rivera, Jaen, Nueva

Ecija, especially in terms of these aspects; Marketing Aspect,

Management Aspect, Financial aspects, technical aspects, and

Socio-economic aspects.

Question 1: Do you go to a coffee shop?

Choices Frequency Percentage

Yes 333 89.76%

No 38 10.24%
Total: 371 100%
Table 4

The table shows that over 371 respondents, 333 or 89.76%

of the respondents are buying coffee and 38 or 10.24% of the

respondents are not. In summary, the majority of the

respondents are buying coffee.

Question 2: How much are you willing to spend on a coffee

shop?

Choices Frequency Percentage

45-70 pesos 5 2%
71-95 pesos 6 2%
96-120 pesos 74 22%

25
 121-130 pesos 248 74%
Total: 333 100%
Table 5

The table shows that there were over 371 respondents.

The 333 respondents, the 5 or 2% are willing to spend 45-70

pesos on a coffee shop, 6 or 2% are willing to spend 71-95

pesos on a coffee shop, 74 or 22% are willing to spend 96-120

pesos on a coffee shop, and the 248 or 74% are willing to

spend 121-130 pesos on a coffee. In summary, most respondents'

replies range from 121 to 130 pesos, which they are willing

to spend on a coffee shop.

Question 3: How frequently do you visit a coffee shop?

Choices Frequency Percentage

Once a Week 93 27.93%

Once a Month 138 41.44%
Quarterly 95 28.53%
Semi-Annually 7 2.10%
Total: 333 100%
Table 6

The table shows that over 371 respondents. The 333

respondents, the 93 or 27.93% of the respondents are usually

going to a coffee shop once a week, 138 or 41.44% of the

respondents are usually going to a coffee shop once a month,

95 or 28.53% of the respondents are usually going to coffee

shop quarterly, and lastly, 7 or 2.10% of the respondents are

26
usually going to coffee shop semi-annually. In summary, most

of the respondents usually going to a coffee shop once a

month.

Question 4: What variety of drinks do you prefer?

Choices Frequency Percentage

Iced Coffee 183 54.95%

Hot Coffee 96 28.83%
Non-Coffee 54 16.22%
Total: 333 100%
Table 7
The table shows that over the 371 respondents. Of the

333 respondents, 183 or 54.95% of the respondents are drinking

iced coffee, 96 or 28.83% of the respondents are drinking hot

coffee, and 54 or 16.22% of the respondents are drinking non-

coffee. In summary, most of the respondents prefer to buy

iced coffee rather than hot coffee and non-coffee.

Question 5: What kind of iced coffee do you prefer?

Choices Frequency Percentage

Salted Caramel 25 11.36%

Caramel Macchiato 75 34.09%
Caramel Latte 48 21.82%
Mocha 32 14.55%
Cappuccino 40 18.18%
Total: 220 100%
Table 8

The table shows that there were over 371 respondents.

The 220 respondents prefer iced coffee, the 25 or 11.36% of

27
the respondents prefer Salted Caramel, 75 or 34.09% of the

respondents prefer Caramel Macchiato, 48 or 21.82% of the

respondents prefer Caramel Latte, 32 or 14.55% of the

respondents prefer Mocha, and the 40 or 18.18% of the

respondents prefer Cappuccino. In summary, most of the

respondents prefer Caramel Macchiato.

Question 6: What kind of hot coffee do you prefer?

Choices Frequency Percentage

Americano 22 21.57%
Caramel Macchiato 28 24.45%
Caramel Latte 27 26.47%
Cappuccino 25 24.51%
Total: 102 100%
Table 9

The table shows that there were over 371 respondents.

The 102 respondents prefer hot coffee, the 22 or 21.57% of

the respondents prefer Americano, 28 or 24.45% of the

respondents prefer Caramel Macchiato, 27 or 26.47% of the

respondents prefer Caramel Latte, and the 25 or 24.51% of the

respondents prefer Cappuccino. In summary, most of the

respondents prefer Caramel Macchiato.

Question 7: What kind of non-coffee do you prefer?

Choices Frequency Percentage

Chocolate Ice 19 29.23%

Strawberry Matcha 15 23.08%
Orange Yakult 13 20%

28
 Red Velvet 18 27.69%
Total: 65 100%
Table 10

The table shows that there were over 371 respondents.

The 65 respondents are preferring non-coffee, the 19 or 29.23%

of the respondents prefer Chocolate Ice, 15 or 23.08% of the

respondents prefer Strawberry Matcha, 13 or 20% of the

respondents prefer Orange Yakult, and the 18 or 27.69% of the

respondents prefer Red Velvet. In summary, most of the

respondents prefer Chocolate Ice.

Question 8: What do you most likely to buy alongside coffee?

Choices Frequency Percentage

Pastry 122 36.64%

Pasta 92 27.62%
Snacks 119 35.74%
Total: 333 100%
Table 11

The table shows that over the 371 respondents. The 333

respondents, the 122 or 36.64% of the respondents prefer

pastry alongside their coffee, 92 or 27.62% of the respondents

prefer pasta alongside their coffee, and lastly 119 or 35.75%

of the respondents prefer snacks alongside their coffee. In

summary, most of the respondents choose pastry alongside their

coffee.

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Question 9: What kind of pastry do you prefer?
Choices Frequency Percentage

Egg Pie 38 31.67%

Brownies 51 42.5%
Cinnamon Roll 31 25.83%
Total: 120 100%
Table 12

The table shows that there were over 371 respondents.

The 120 respondents prefer pastry, 38 or 31.67% of the

respondents prefer Egg Pie, 51 or 42.5% of the respondents

prefer Brownies, and 31 or 25.83% prefer Cinnamon Roll. In

summary, the majority of the respondents prefer brownies.

Question 10: What kind of pasta do you prefer?

Choices Frequency Percentage

Carbonara 61 67.03%
Macaroni Spaghetti 18 19.78%
Beef Lasagna 12 13.19%
Total: 91 100%
Table 13

The table shows that there were over 371 respondents. 91

respondents prefer pasta, 61 or 67.03% of the respondents

prefer Carbonara, 18 or 19.78% of the respondents prefer

Macaroni Spaghetti, and 12 or 13.19% of the respondents prefer

Beef Lasagna. In summary, most of the respondents prefer

Carbonara.

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Question 11: What kind of snacks do you prefer?
Choices Frequency Percentage

French Fries 72 57.6%

Nachos Overload 53 42.4%
Total: 125 100%
Table 14

The table shows that there were over 371 respondents.

The 125 respondents are preferring snacks, the 72 or 57.6% of

the respondents prefer French Fries, and the 53 or 42.4% of

the respondents prefer Nachos Overload. In summary, most of

the respondents prefer French Fries.

Question 12: What would attract you to try a new coffee shop?
(You can check more than one)

Choices Frequency Percentage

Taste of Coffee 229 42.6%

and Food
Excellent Service 127 23.7%
Cleanliness and 108 20.2%
Orderliness
Parking 72 13.4%
Total: 536 100%
Table 15
The table shows that over 371 respondents, the taste of

coffee and food is given priority by 229 or 42.6% of

respondents, and the majority answers of the respondents that

would attract them to try a new coffee shop. Moreover, 127 or

23.7% are those who prefer excellent service, 108 or 20.2%

are those who prefer cleanliness and orderliness, and 72 or

31
13.4% are those who prefer parking. Therefore, the majority

indicate that the taste of coffee and food is what would

attract them to try a new coffee shop.

Question 13: Where do you usually buy coffee?

Choices Frequency Percentage

Bonsai Garden Café 129 39%

PILYA Coffee 31 9%
Mood Café 21 6%
Pepito’s Kitchen 72 22%
Cafe
Urduja’s Café 80 24%
Total: 333 100%
Table 16

The table shows that over 371 respondents, 129 or 39% of

the respondents usually buy their coffee on Bonsai Garden

Café, 31 or 9% of the respondents usually buy their coffee on

PILYA Coffee, 21 or 6% of the respondents usually buy their

coffee on Mood Café, 72 or 22% of the respondents are usually

buying their coffee on Pepito’s Kitchen Cafe, and 80 or 24%

of the respondents are usually buying their coffee on Urduja’s

Café. In summary, most of the respondents usually buy their

coffee at Bonsai Garden Café.

32
Question 14: If we will establish Sip-licity Cafe here in
Brgy. Ocampo-Rivera, Jaen, Nueva Ecija, would you patronize
it?
Choices Frequency Percentage

Yes 361 97.30%

No 10 2.70%
Total: 371 100%
Table 17

The table shows that over 371 respondents, 361 or 97.30%

are those respondents who are willing to patronize the Sip-

licity Cafe, and 10 or 2.70% are those respondents who are

not willing to. This shows that most of the respondents are

willing to patronize the Sip-licity Cafe if we establish one.

33
 CHAPTER III

MARKETING ASPECT

This chapter supports the researchers in determining the

marketing aspects of the business. This chapter consists of

a market description, a description of the target market, a

marketing program, levels of sales, pricing, SWOT analysis,

promotion, and projected sales.

MARKET DESCRIPTION

The coffee shop market is a vibrant and competitive

segment of the food and beverage industry, characterized by

a diverse range of players catering to a variety of consumer

preferences. Coffee shops offer a welcoming and social

environment for customers to enjoy a variety of coffee-based

beverages, as well as light snacks and pastries.

DESCRIPTION OF TARGET MARKET

Demographic Profile of Respondents

Age 16 years old and above

Gender Male and Female

34
 Location (Geographic)

Region III
Province Nueva Ecija
Municipality Jaen
Zip Code 3109
The exact location where Brgy. Ocampo-rivera,
the business will be Jaen, Nueva Ecija
established.
Table 18: Description of Target Market

DEMAND AND SUPPLY

The evaluation of products and services served as the

foundation for variables influencing supply and demand. The

study of supply and demand assesses if there is an imbalance

between the supply and demand for a product or service.

DEMAND

This refers to the willingness and desire of consumers

to purchase specific products or services at specific

reasonable prices.

HISTORICAL POPULATION

YEAR POPULATION GROWTH RATE

2019 9,550 -

2020 9,644 0.98%

2021 9,941 3.07%

2022 10,204 2.64%

35
 2023 10,412 2.03%

Average Growth 8.72%

Rate
Total Average 2.18%
Growth Rate
Source: Municipality of Jaen, Nueva Ecija

Table 19: Historical Population Ages 16 years old and above

on Five (5) Barangays of Jaen, Nueva Ecija

The table shows the historical population and the growth

rate of the individual from ages 16 years old and above in

Jaen, Nueva Ecija in the year 2019-2023.

To compute the Growth rate:

𝑃𝑟𝑒𝑠𝑒𝑛𝑡 𝑌𝑒𝑎𝑟 − 𝑃𝑟𝑒𝑣𝑖𝑜𝑢𝑠 𝑌𝑒𝑎𝑟

𝐺𝑅𝑂𝑊𝑇𝐻 𝑅𝐴𝑇𝐸 = 𝑋 100
𝑃𝑟𝑒𝑣𝑖𝑜𝑢𝑠 𝑌𝑒𝑎𝑟

PROJECTED DEMAND

YEAR TOTAL POPULATION

2024 10,639
2025 10,871
2026 11,108
2027 11,350
2028 11,597
Table 20: Projected Population

The table shows the projected population of our target

market for the next five years. The researchers used the

population from 2024 and then add by 2.18% which was the

average growth rate, and the formula applies for the next

36
five years (2024- 2028) a growth rate indicates an increasing

population, and the researchers got the market demand of the

Sip-Licity Cafe.

DEMAND ANALYSIS

YEAR POPULATION POTENTIAL EFFECTIVE DEMAND BY

DEMAND (Q1) DEMAND (Q14) FREQUENCY
89.76% 97.30%
2024 10,639 9,550 9,292 192,154

2025 10,871 9,758 9,495 196,343

2026 11,108 9,971 9,702 200,623

2027 11,350 10,188 9,914 204,997

2028 11,597 10,410 10,130 209,466

Table 21: Demand Analysis

The table shows the market demand and the demand

percentage of Question no. 1 and Question no. 14. Which the

researcher would be able to get the projected demand of Sip-

Licity Cafe for the next five (5) years.

Question no. 1 – Do you go to a coffee shop?

89.76% answered Yes.

Question no. 14 - If we will establish Sip-licity Cafe here

in Brgy. Ocampo-Rivera, Jaen, Nueva Ecija, would you patronize
it?
97.30% answered Yes.

37
 2024
MARKET FREQUENCY PERCENTAGE EFFECTIVE
DEMAND (Q3) DEMAND OF
FREQUENCY
9,292 Once a Week 27.93% 134,953
(52)
9,292 Once a Month 41.44% 46,207
(12)
9,292 Quarterly 28.53% 10,604
(4)
9,292 Semi- 2.10% 390
Annually (2)
TOTAL 100% 192,154
Table 22: Frequency of Demand for 2024

The table shows the demand for the year 2024. The

researcher multiplies the potential demand by frequency

question no.3, which is once a week, once a month, quarterly,

and semi-annually.

SUPPLY

Supply is a fundamental economic term that represents

the entire amount of a certain commodity or service that

customers have access to. Every organization has a supply

source that meets the demand for its product. The table below

contains a list of competitors.

LIST OF COMPETITORS

Bonsai Garden Café

Bonsai Garden Cafe has been in the coffee shop industry

for 1 year. The shop has a calming atmosphere as it is

38
surrounded by different kinds of plants, which is the concept

of their business, just as their business name represents.

Pepito’s Kitchen Café

The business is located at San Roque, Jaen, Nueva Ecija.

Pepito's Kitchen Cafe was established in early 2023. They

offer a wide variety of meals and drinks. But most of the

items on their menu are meals and bundle meals for families

or groups of friends.

Urduja’s Café

Urduja Cafe is located at Dampulan, Jaen, Nueva Ecija.

The shop has a good atmosphere, which can attract customers

and keep them here longer. They offer beverages such as

Coffee, Milk Tea, and other drinks.

Name of Address
Competitors
Bonsai Garden Café Brgy. Sapang,

Jaen, Nueva Ecija,

Philippines.

Pepito’s Kitchen Brgy. San Roque,

Café Jaen, Nueva Ecija,

Philippines.

39
 Urduja’s Café Brgy. Dampulan,

Jaen, Nueva Ecija,

Philippines.

Table 23: List of Competitors

PROJECTED SUPPLY

COMPETITORS SUPPLIES FOR 2024

DAILY WEEKLY MONTHLY YEARLY

Bonsai 100 700 2,800 33,600
Garden Café
Pepito’s 75 525 2,100 25,200
Kitchen
Café
Urduja’s 56 392 1,568 18,816
Café
TOTAL 231 1,617 6,468 77,616
Source: Competitors

Table 24: Estimated Supply of Existing Competitors

The table shows the number of customers daily, weekly,

monthly, and annually. It indicates the present customer in

the coffee shops in Jaen, Nueva Ecija. The information

gathered was collected using interviews and averages of the

daily customers. This was used by the researchers to calculate

the projected supply for the next five years.

Supply Weekly = Supply Daily X 7

Supply Monthly = Supply Weekly X 4

40
 Supply Annually = Supply Monthly X 12

YEAR ANNUALLY AVERAGE PROJECTED

SUPPLY GROWTH RATE ANNUAL SUPPLY
2.18%
2024 - - 77,616
2025 77,616 2.18% 79,308
2026 79,308 2.18% 81,037
2027 81,037 2.18% 82,804
2028 82,804 2.18% 84,609
Table 25: Projected Annual Supply

The table shows the projected annual supply for the next

five years of the competitors. The projected annual supply

was computed by adding the previous annual supply to the

average growth rate (2.18%), and the product will be added to

the annual supply.

DEMAND AND SUPPLY ANALYSIS

YEAR DEMAND SUPPLY GAP MARKET MARKET

SHARE SHARE
VALUE PERCENTAGE
2024 192,154 77,616 114,538 28,105 24.54%

2025 196,343 79,308 117,035 28,718 24.54%

2026 200,623 81,037 119,586 29,344 24.54%

2027 204,997 82,804 122,193 29,984 24.54%

2028 209,466 84,609 124,857 30,638 24.54%

Table 26: Demand and Supply

41
 The table above is about the Demand and Supply Analysis.

Which shows the Demand, Supply, Gap, Market Share Value and

Percentage of the year 2024-2028.

Gap = Projected Demand - Projected Supply

Market Share = 77 × 365 days

Market Share Percentage = Market Share / Gap

PROJECTED SALES

DAILY
AVERAGE PRICE DAILY ANNUALLY
CUSTOMER
120 77 9,240 3,372,600
TOTAL 9,240 3,372,600
Table 27: Projected Sales

The table shows the projected sales for daily and

annually. The projected customer of Sip-Licity Cafe was based

on its competitors.

COMPETITIVE ADVANTAGES

The researchers have decided to offer a cafe called Sip-

licity Cafe at an affordable price, good location, and skilled

baristas. Since the proposed business offers beverages and

food at affordable prices, the target market will be able to

enjoy an overall excellent experience. As the business will

be in an accessible location, it will be able to benefit from

a competitive advantage in the market. The visibility of the

42
store will make it more likely that customers are going to

try the Sip-licity Cafe.

SWOT ANALYSIS

STRENGTHS WEAKNESSES

 Affordable Price  No delivery service

 A Good Location  Small Capacity
 Skilled Baristas  New in the market

OPPORTUNITIES THREATS

 Collaboration with  High Competition

Local Supplier  Changing Customer
 Franchising Preference
 New product development

Table 28: SWOT Analysis

Strengths

Affordable Price

Offering products or services at an affordable price can

be a strength for a business, because it attracts a wider

range of customers, encourages repeat purchases, builds brand

loyalty, and often leads to increased sales volume.

A good location

A good location is a strength for a business because it

can attract more customers due to convenience, accessibility,

and visibility. Being situated in a noticeable location

43
increases foot traffic, enhances brand visibility, and can

lead to higher sales and profitability.

Skilled Baristas

The business employ well-trained baristas that always

prepare consistent and excellent cups of coffee.

Weaknesses

No Delivery Services

Without delivery services options, businesses may miss

out on potential customers who prefer or rely on delivery for

their purchases.

Small Capacity

It implies that the store can hold only a small number

of people/ customers at a time and has limited space for

seating.

New in the Market

Being new in the market can be a weakness for a business.

Because brand recognition and reputation it takes time to

develop, so new businesses may struggle to gain trust and

credibility from customers compared to established

competitors.

44
Opportunities

Collaboration with Local Supplier

Collaborating and supporting local suppliers may also

lead to mutually beneficial partnerships and networking

opportunities within the local business community.

Collaborating with local suppliers offers businesses

opportunities to improve efficiency, reputation, and

relationships while contributing to the growth of the local

economy.

Franchising

Franchising can enhance brand visibility and recognition

as the network expands, leading to increased consumer trust

and loyalty. It presents opportunities for businesses to grow,

expand into new markets, and build a strong brand presence.

New Product Development

New product development presents opportunities for

businesses to innovate, grow, and create value for both

customers and stakeholders.

45
Threats

High Competition

High competition often leads to increased rivalry among

existing competitors. companies compete aggressively for

market share, which can result in price wars, aggressive

marketing tactics, and innovation to stay ahead

Changing Customer Preference

Changing consumer preferences represent threats to

businesses that are slow or unable to adapt, highlighting the

importance of staying attuned to market dynamics and evolving

customer needs.

MARKETING PROGRAM

A marketing program is a structured and carefully

thought-out sequence of steps meant to achieve certain

marketing objectives. Which include calculated sales targets

meant to capitalize on Sip-licity Cafe's advantages and grow

the company from its current state. To increase sales and

foster a solid customer base, a company's use of marketing

tools needs to be carefully planned.

46
PRODUCT

Sip-licity Cafe is a coffee shop that offers a wide

variety of drinks such as hot coffee, iced coffee, non-coffee,

pasta, pastry, and snacks that our customers surely like.

Figure 7: Sip-Licity Cafe Menu

47
PACKAGING

Depending on the choice of beverage the customer makes,

the cup type will vary. For hot drinks, paper cups will be

used with the sizes of 8oz and 12oz. For cold or iced drinks,

plastic cups with the sizes of 16oz and 20oz.

Figure 8: Cup Design and Sizes for Dine-In and Take-Out

Figure 9: Cup Holder Box for Take-Out Orders

48
 Figure 10: Take-Out for Pastry, Pasta, and Snacks

PRICE

COST-PLUS PRICING

The Sip-licity Cafe use the cost-plus pricing method to

instantly determine whether the goods offered at the cafe is

profitable or not since this strategy record costs in detail

to ensure having a comprehensive understanding of the overall

costs. In this case, it will include the total cost of labor

and ingredients as well as the intended profit margin.

COMPETITIVE-BASED PRICING

The Sip-licity Cafe uses competitive-based pricing as

the price of the goods offered is based on competitors.

Competitive-based pricing means that this method continuously

monitors pricing and promotional strategies and adjusts

prices accordingly to remain competitive. It is likely that

competitors have carried out some price research, which will

49
benefit Siplicity Cafe and will put pressure on the market by

entering at a low price.

PRODUCT SIP-LICITY BONSAI URDUJA’S PEPITO’S

CAFE GARDEN CAFÉ KITCHEN
CAFÉ CAFÉ
HOT COFFEE 8oz 12oz 8oz 12oz 8oz 12oz 8oz 12oz
Americano 45 60 55 80 - 70 50 60
Caramel 80 95 65 89 - 99 85 95
Macchiato
Caramel Latte 65 80 60 85 - 109 70 90
Cappuccino 55 70 60 85 - 90 65 85
ICED COFFEE 16oz 20oz 16oz 20oz 16oz 20oz 16oz 20oz
Salted 85 100 85 100 - - 90 105
Caramel
Caramel 90 105 115 130 120 135 95 110
Macchiato
Caramel Latte 90 105 100 115 100 110 95 110
Mocha 75 90 110 125 115 130 85 100
Cappuccino 65 80 90 105 100 110 95 110
NON-COFFEE 16oz 20oz 16oz 20oz 16oz 20oz 16oz 20oz
Chocolate Ice 115 130 120 135 135 150 - -
Strawberry 110 125 115 130 115 125 - -
Matcha
Orange Yakult 65 80 75 90 - - 75 85
Redvelvet 100 115 105 120 110 125 95 105
PASTA
Carbonara 85 90 - 85
Macaroni
85 90 - 85
Spaghetti
Beef Lasagna 95 99 - 100
PASTRY
Egg Pie 45 45 - -
Brownies
75 85 - 80
(2pcs)
Cinnamon Roll 70 145 - -
SNACKS
French Fries 45 50 - 50
Nachos 110
115 - 115
Overload
Source: Competitors

Table 11: Price Lists of Competitors

50
PLACE

Sip-licity Cafe will be located at Ocampo-Rivera, Jaen,

Nueva Ecija. The location would be an advantage for the

business since it is near the road and far from its

competitors and it is used daily by people that can be

customers.

PROMOTION

Businesses should consider advertising as one of its

components. Possessing an eye-catching and strong

advertisement helps capture potential customers’ interest.

The sip-licity cafe would use the following advertisement:

Tarpaulin Advertising- The purpose of these marketing tactics

is to increase the exposure of the firm. It will be displayed

in public areas to draw in more potential clients. The 2x3-

foot tarpaulin would be affixed to the Ocampo-Rivera pole and

placed in front of the Sip-licity Cafe.

51
 Figure 11: Tarpaulin

Social Media Advertising- Online or digital advertising is

used by the younger generation. To draw in possible clients

who might see our posts on social media, we researchers set

up a Facebook page, an Instagram account, and a TikTok

account. This kind of advertising makes it easy to reach a

large audience while remaining inexpensive. The menu,

advertisements, and grand launch of Sip-licity Cafe will be

posted on these social media platforms. This kind of

advertising makes it easy to reach a large audience while

remaining inexpensive. The menu, advertisements, and grand

launch of Sip-licity Cafe will be posted on these social media

platforms.

52
 Figure 12: Facebook Page

Figure 13: Instagram Account

53
 Figure 14: TikTok Account

Pull-up banner - This is specifically defined in the business

world as the deliberate use of retractable banners as a

marketing strategy to advertise goods, services, occasions,

or brand messaging. The process includes creating and

showcasing eye-catching banners with captivating content to

draw in and immerse the intended audience. The objectives of

pull-up banner advertising are to raise brand awareness,

deliver important messages clearly, and stimulate consumer

interest in the products being promoted.

54
 Figure 15: Pull-Up Banner

Loyalty card - Loyalty card programs are used to promote

repeat business and client retention. Coffee shops can

strengthen their customer relationships by providing

incentives like discounts, freebies, or special benefits for

frequent visits or sales. In addition to raising customer

happiness, these incentives also foster engagement and

loyalty, which eventually raises the coffee shop's income and

customer lifetime value.

Figure 16: Loyalty Card

55
Opening Freebies – Sip-licity Café will give free tote bags

to the first 10 customers who purchase 300 pesos. This

activity only happens at the opening of Sip-Licity Cafe.

Figure 17: Tote Bag Opening Freebies

56
 CHAPTER IV

TECHNICAL ASPECT

The purpose of this chapter is to determine the technical

aspect of the proposed business which includes the product

description, the list of raw materials and their sources

needed, the machinery and equipment and waste management, and

other business-related requirements.

OPERATING SYSTEM AND PROCESS

Sip-Licity Cafe

OPENING DAYS TIME

Monday to Sunday 9:00 AM to 8:00 PM

Table 29: Business Schedule

Sip-licity Cafe is a coffee shop that is open from Monday

to Sunday, from 9:00 am to 8:00 pm. Staff prepare the café

early, ensuring cleanliness and stock. Customers are greeted

with freshly brewed coffee and an inviting atmosphere.

Baristas craft various beverages, while kitchen staff prepare

delicious pastries and light bites. As evening approaches,

the pace slows slightly, but the warm atmosphere continues to

beckon customers to relax until closing time at 8 pm, marking

the end of another day filled with simple joys.

57
PRODUCT DESCRIPTION

The business will offer different varieties of Coffee,

Non-Coffee, Pasta, Pastry, and Snacks. The full details of

all the products are illustrated below:

HOT COFFEE

PRODUCT DESCRIPTION

Americano A classic coffee beverage made

by diluting espresso with hot

water, resulting in a bold yet

smooth flavor profile.

Caramel Macchiato A beloved Italian coffee drink

consisting of equal parts

espresso, steamed milk, and

milk foam, often topped with a

sprinkle of cocoa powder or

cinnamon.

58
Caramel Latte An espresso-based drink with a

small amount of milk or milk

foam, creating a rich and

intense coffee flavor with a

hint of creaminess.

Cappuccino A sweet and indulgent coffee

beverage made with espresso,

steamed milk, and caramel

syrup, offering a perfect

balance of rich coffee flavor

and creamy sweetness.

Table 30: Hot Coffee

59
 ICED COFFEE

PRODUCT DESCRIPTION

Salted Caramel Iced Coffee A delightful blend of cold

brew coffee or espresso,

chilled milk, and a swirl of

salted caramel syrup,

creating a harmonious balance

of sweet and salty flavors

over ice.

Caramel Macchiato Iced Coffee A layered masterpiece

featuring cold milk poured

over ice, topped with shots

of espresso and a drizzle of

caramel syrup, resulting in a

visually stunning and

deliciously creamy beverage.

60
Caramel Latte Iced Coffee A refreshing twist on the

classic latte, combining

espresso, cold milk, and

caramel syrup over ice,

delivering a smooth and

satisfying coffee experience

with a hint of caramel

sweetness.

Mocha Iced Coffee A decadent treat blending

cold brew or espresso with

creamy milk and rich

chocolate syrup, offering a

luxurious and indulgent

coffee experience perfect for

any chocolate lover.

61
Cappuccino Iced Coffee A chilled version of the

traditional cappuccino,

featuring shots of espresso

layered with cold milk and a

dollop of milk foam over ice,

providing a refreshing take

on the beloved Italian coffee

classic.

Table 31: Iced Coffee

NON-COFFEE

PRODUCT DESCRIPTION

Chocolate Ice A delightful blend of rich,

creamy chocolate flavor

served over ice.

62
Strawberry Matcha A unique and refreshing

combination of antioxidant-

rich matcha green tea and the

sweet, tangy flavor of

strawberries.

Orange Yakult A refreshing and fruity

beverage made with sweet

orange flavor and the

probiotic goodness of Yakult,

creating a harmonious balance

of sweetness.

63
Red Velvet A decadent dessert-inspired

drink featuring the rich and

creamy flavor of red velvet

cake, often blended with milk

or cream and topped with

whipped cream and red velvet

cake crumbs, offering a

deliciously indulgent treat

reminiscent of the classic

dessert.

Table 32: Non-Coffee

PASTA

PRODUCT DESCRIPTION

Carbonara A classic Italian pasta dish

featuring spaghetti, or other

long noodles tossed in a

creamy sauce made with eggs,

cheese (usually Pecorino

Romano or Parmigiano-

Reggiano), pancetta or

guanciale (cured pork jowl),

and black pepper. The result

is a rich and indulgent pasta

64
 dish with a silky texture and

savory flavor.

Macaroni Spaghetti A beloved comfort food

consisting of cooked macaroni

pasta coated in a spaghetti

sauce, typically made with

grated cheese on top.

Beef Lasagna A hearty Italian dish made

with layers of wide, flat

pasta sheets, alternating

with rich meat sauce (ragù),

creamy béchamel sauce, and

grated cheese, usually

Parmigiano-Reggiano or

mozzarella. Baked until

golden and bubbly.

Table 33: Pasta

65
 PASTRY

PRODUCT DESCRIPTION

Egg Pie A delectable dessert

consisting of a flaky pastry

crust filled with a rich and

creamy custard made from

eggs, milk, sugar, and

vanilla. Baked to golden

perfection, egg pie is a

comforting and indulgent

treat enjoyed by many for its

smooth texture and delicate

sweetness.

Brownies A beloved chocolate dessert

characterized by its dense,

fudgy texture and rich

chocolate flavor. Brownies

are typically made with

ingredients like cocoa

powder, butter, sugar, eggs,

and flour, sometimes

including additions such as

nuts or chocolate chips.

66
Cinnamon Roll A sweet and aromatic pastry

consisting of a rolled dough

infused with cinnamon sugar,

then sliced into individual

rolls before being baked to

golden perfection. Cinnamon

rolls are often topped with a

rich cream cheese frosting or

glaze, adding an extra layer

of sweetness and indulgence

to this beloved breakfast or

dessert treat.

Table 34: Pastry

SNACKS

PRODUCT DESCRIPTION

French Fries Crispy, golden-brown potato

sticks seasoned with salt and

often served hot. These

classic snacks are beloved

for their irresistible

crunchy exterior and fluffy

interior. They're perfect for

67
 dipping in ketchup,

mayonnaise, or any other

preferred sauce.

Nachos Overload A tantalizing snack

consisting of crispy tortilla

chips topped with a generous

heap of melted cheese and a

variety of delicious

toppings, such as seasoned

ground beef, jalapeños, diced

tomatoes, onions, guacamole,

sour cream, and salsa.

Table 35: Snacks

PRODUCTION PROCESS

The Sip-Licity Cafe should include the following

ingredients and step-by-step procedures:

INGREDIENTS STEP-BY-STEP PROCEDURE OF AMERICANO HOT

COFFEE
 1-2 shots 1. Start by grinding your coffee beans to a
fine consistency, like what you would use
(about 1-2 for espresso.
2. Heat water in a kettle or pot until it
ounces per
reaches just below boiling point, around
200°F (93°C).
3. If you have an espresso machine, pull 1-
2 shots of espresso into your cup.

68
 shot) of 4. Pour the hot water directly into the cup
with the espresso shots. Start with about
Espresso 6-8 ounces of water, depending on how
strong you like your Americano.
 6-8 ounces
5. Use a spoon or stirring stick to mix the
of Hot espresso and hot water together
thoroughly.
water 6. Serve.

Table 36: Ingredients and Procedure in Making Americano Hot

Coffee

INGREDIENTS STEP-BY-STEP PROCEDURE OF CARAMEL

MACCHIATO HOT COFFEE
 1-2 shots 1. Collect espresso, milk, vanilla syrup,
(approximately caramel syrup, whipped cream, and
1-2 ounces per caramel drizzle.
shot) of 2. Brew 1-2 shots of espresso using an
Espresso espresso machine and set aside.
 6-8 ounces 3. Steam 6-8 ounces of milk until frothy
(adjust and hot.
according to 4. Pour 1-2 tablespoons of vanilla syrup
preference) of into a cup.
Milk 5. Add the steamed milk into the cup over
the vanilla syrup.
 1-2
6. Carefully pour the brewed espresso
tablespoons of
shots over the milk and syrup mixture.
Vanilla syrup
7. Drizzle 1-2 tablespoons of caramel
 1-2
syrup over the top of the drink.
tablespoons of
8. If desired, add a dollop of drizzle with
Caramel syrup
additional caramel syrup.
 Caramel
9. Serve
drizzle

Table 37: Ingredients and Procedure in Making Caramel

Macchiato Hot Coffee

69
 INGREDIENTS STEP-BY-STEP PROCEDURE OF CARAMEL LATTE
HOT COFFEE
 1-2 shots 1. Brew 1-2 shots of espresso using an
(about 1-2 espresso machine or alternative method.
ounces per 2. Steam 6-8 ounces of milk until it's
shot) Espresso frothy and hot.
 6-8 ounces 3. Pour 1-2 tablespoons of caramel syrup
(adjust into a cup.
according to 4. Pour the steamed milk into the cup
preference) of over the caramel syrup.
Milk 5. Carefully pour the brewed espresso
shots over the milk and syrup mixture.
 1-2
6. If desired, top with drizzle with
tablespoons of
additional caramel syrup for garnish.
Caramel syrup
7. Serve
 Caramel
drizzle

Table 38: Ingredients and Procedure in Making Caramel Latte

Hot Coffee

INGREDIENTS STEP-BY-STEP PROCEDURE OF CAPPUCCINO HOT

COFFEE
 1-2 shots 1. Start by brewing 1-2 shots of
(about 1-2 espresso using an espresso machine. If
ounces per you don't have an espresso machine, you
shot) of can use a Moka pot or a French press.
Espresso 2. Heat 6-8 ounces of milk in a saucepan
 6-8 ounces of or microwave until it's hot but not
Milk boiling. Alternatively, you can steam
the milk using a steam wand on an
 6-8 ounces of
espresso machine or a milk frother until
Milk foam
it reaches around 150-160°F (65-70°C).
 Cocoa powder
3. Froth the hot milk using a milk
or cinnamon
frother or steam wand until it develops
a creamy, frothy texture. Hold the
frother just beneath the surface of the
milk to incorporate air and create foam.
4. Pour the brewed espresso into a
preheated cup.

70
 5. Pour the frothed milk into the cup,
holding back the foam with a spoon to
control the amount of milk added. Aim
to fill the cup about halfway with milk.
6. Spoon the milk foam on top of the
espresso and milk mixture, creating a
layer of creamy foam.
7. If desired, sprinkle a pinch of cocoa
powder, cinnamon, or nutmeg on top of
the foam for added flavor and
decoration.
8. Serve

Table 39: Ingredients and Procedure in Making Cappuccino Hot

Coffee

INGREDIENTS STEP-BY-STEP PROCEDURE OF SALTED CARAMEL

ICED COFFEE
 8-12 ounce Cold 1. Brew a strong batch of cold brew
brew coffee coffee or brew regular coffee and let
 2-4 ounces it cool down to room temperature.
(adjust Alternatively, you can chill brewed
according to coffee in the refrigerator until cold.
preference) of 2. Fill a cup with ice cubes.
Milk or cream 3. Pour the cold brewed coffee or
chilled brewed coffee over the ice cubes
 1-2 tablespoons
until the glass is about 3/4 full.
of Caramel
4. Add 2-4 ounces of milk or cream to
syrup
the glass, leaving room for the caramel
 Pinch (to
syrup.
taste) of Sea
5. Drizzle 1-2 tablespoons of caramel
salt or kosher
syrup and caramel drizzle over the top
salt
of the coffee and milk mixture.
 Caramel Drizzle 6. Sprinkle a pinch of sea salt or
 Whipped cream kosher salt over the caramel syrup. This
 Ice cubes will enhance the flavor and create the
"salted caramel" taste.
7. Gently stir the mixture to
incorporate the flavors and dissolve
the caramel syrup and salt.

71
 8. Taste the Salted Caramel Iced Coffee
and adjust the sweetness and saltiness
according to your preference by adding
more caramel syrup or salt if needed.
9. Garnish with whipped cream and an
additional drizzle of caramel syrup for
extra indulgence.
10. Serve Salted Caramel Iced Coffee.

Table 40: Ingredients and Procedure in Making Salted Caramel

Iced Coffee

INGREDIENTS STEP-BY-STEP PROCEDURE OF CARAMEL

MACCHIATO ICED COFFEE
 1-2 shots 1. Start by brewing 1-2 shots of espresso
(about 1-2 using an espresso machine. Alternatively,
ounces per you can use strong brewed coffee. Allow
shot) of it to cool down to room temperature.
Espresso or 2. Fill a cup with ice cubes.
strong brewed 3. Pour 1-2 tablespoons of vanilla syrup
coffee into the glass over the ice cubes.
 6-8 ounces 4. Pour the brewed espresso or cooled
(adjust brewed coffee over the ice and vanilla
according to syrup.
preference) of 5. Pour 6-8 ounces of milk over the coffee
Milk mixture in the glass.
6. Drizzle 1-2 tablespoons of caramel
 1-2
syrup over the top of the milk.
tablespoons of
7. Gently stir the mixture to combine the
Vanilla syrup
flavors of the coffee, milk, vanilla
 1-2
syrup, and caramel syrup and add whipped
tablespoons of
cream on top.
Caramel syrup
8. Taste the Caramel Macchiato Iced
 Caramel Coffee and adjust the sweetness or add
Drizzle more caramel syrup if desired.
 Whipped Cream 9. Serve Caramel Macchiato Iced Coffee
 Ice cubes

Table 41: Ingredients and Procedure in Making Caramel

Macchiato Iced Coffee

72
 INGREDIENTS STEP-BY-STEP PROCEDURE OF CARAMEL LATTE
ICED COFFEE
 1 cup brewed 1. Start by brewing a cup of coffee
using your preferred method. You can use
coffee, a coffee maker, French press, or any
other method you like. Once brewed, let
chilled
it cool down to room temperature, then
refrigerate until chilled.
 1/2 cup milk
2. If you don't have store-bought
 2 tablespoons caramel syrup, you can make your own by
combining equal parts sugar and water
caramel syrup in a saucepan over medium heat. Stir
until the sugar dissolves, then let it
 1-2 cook without stirring until it turns a
golden amber color. Remove from heat and
tablespoons carefully stir in some cream. Let it
cool before using.
sugar or
3. In a cup, combine the chilled brewed
sweetener coffee, milk, caramel syrup, and sugar.
Stir well until everything is evenly
 Ice cubes mixed and the sugar is dissolved.
4. Fill the glass with ice cubes. You
 Whipped cream can adjust the amount of ice depending
on how strong you want your iced coffee
 Additional to be and how you like it.
5. If desired, top your Caramel Latte
caramel syrup
Iced Coffee with whipped cream and a
for drizzling drizzle of caramel syrup for extra
sweetness and flavor.
6. Give the drink a final stir, then
serve.

Table 42: Ingredients and Procedure in Making Caramel Latte

Iced Coffee

INGREDIENTS STEP-BY-STEP PROCEDURE OF MOCHA ICED

COFFEE
 1 cup brewed 1. Start by brewing a cup of coffee
coffee, using your preferred method. Once
chilled brewed, let it cool down to room

73
 1/2 cup milk temperature, then refrigerate until
 2 chilled.
tablespoons 2. In a small bowl, mix the chocolate
chocolate syrup or cocoa powder with a bit of warm
syrup or water to create a smooth mixture. This
cocoa powder will ensure that the chocolate blends
well into the coffee.
 1-2
3. In a cup, combine the chilled brewed
tablespoons
coffee, milk, prepared mocha mix, and
sugar or
sugar. Stir well until everything is
sweetener
evenly mixed and the sugar is dissolved.
 Ice cubes
4. Fill the cup with ice cubes. Adjust
 Whipped the amount of ice based on your
cream preference for the strength and
 Chocolate temperature of the drink.
shavings or 5. If desired, top your Mocha Iced
cocoa powder Coffee with whipped cream for a creamy
texture and extra indulgence. You can
also sprinkle some chocolate shavings or
cocoa powder on top for garnish and added
flavor.
6. Serve Mocha Iced Coffee.

Table 43: Ingredients and Procedure in Making Mocha Iced

Coffee

INGREDIENTS STEP-BY-STEP PROCEDURE OF CAPPUCCINO ICED

COFFEE
 1 cup 1. Start by brewing a shot or two of
brewed espresso using your preferred method.
coffee, You can use an espresso machine, a Moka
chilled pot, or even instant espresso.
 1/2 cup 2. Let the espresso cool down to room
milk temperature. You can speed up this
process by placing the espresso in the
 2
refrigerator for a few minutes.
tablespoons
3. While the espresso is cooling, froth
vanilla syrup
some milk. You can use a milk frother, a
or vanilla
French press, or even just shake it
extract
vigorously in a sealed container until

74
 1-2 frothy. For a traditional cappuccino
tablespoons flavor, use whole milk. Alternatively,
sugar or you can use almond milk, soy milk, or any
sweetener other milk substitute.
 Ice cubes 4. Once the espresso is cooled and the
milk is frothed, pour the cooled espresso
 Whipped
into a glass filled with ice cubes. Then,
Cream
slowly pour the frothed milk over the
 Cocoa
espresso.
powder or
5. Spoon any remaining milk foam on top
cinnamon
of the iced coffee.
6. If desired, you can add flavorings
such as vanilla syrup, caramel syrup, or
chocolate syrup for added sweetness and
flavor.
7. Stir gently to combine all the
ingredients and serve immediately.
8. For an extra touch, you can garnish
your Cappuccino Iced Coffee with a
sprinkle of cocoa powder, cinnamon, or
chocolate shavings on top.

Table 44: Ingredients and Procedure in Making Cappuccino

Iced Coffee

INGREDIENTS STEP-BY-STEP PROCEDURE OF CHOCOLATE ICE

 2 cups 1. In a medium saucepan, whisk together
(480 ml) of the cocoa powder, sugar, and a pinch of
Milk salt until well combined.
 1/2 cup 2. Gradually pour in the milk while
(100 g) of whisking continuously to prevent lumps
sugar from forming.
3. Heat Mixture: Place the saucepan over
 1/4 cup
medium heat and bring the mixture to a
(25 g) of
gentle simmer, stirring frequently to
cocoa powder
prevent scorching.
 1 teaspoon
4. Once the mixture starts to simmer,
(5 ml) of
reduce the heat to low and continue
vanilla
cooking for about 5-7 minutes, stirring
extract

75
  Whipped constantly, until the mixture slightly
cream thickens and coats the back of a spoon.
5. Remove the saucepan from the heat and
 Ice cubes
let the mixture cool for a few minutes.
6. Stir in the vanilla extract until well
incorporated.
7. Allow the chocolate mixture to cool
to room temperature.
8. Once cooled, transfer the mixture to
a container and cover it with plastic
wrap or a lid. Place it in the
refrigerator to chill for at least 4
hours or until completely chilled.
9. After chilling, pour the chocolate
mixture into an ice cream maker and churn
according to the manufacturer's
instructions until it reaches a soft-
serve consistency.
10. You can serve the Chocolate Ice

Table 45: Ingredients and Procedure in Chocolate Ice

INGREDIENTS STEP-BY-STEP PROCEDURE OF STRAWBERRY

MATCHA
1 teaspoon 1. In a blender, combine the matcha
matcha powder powder and hot water. Blend until the
1 cup hot matcha is dissolved and frothy.
water 2. Add the strawberries to the blender
and blend until smooth.
 1/2 cup fresh
3. Taste the mixture and add honey or
or frozen
sweetener if desired, adjusting to your
strawberries
preference.
 1-2 teaspoons
4. If you prefer a colder drink, add
honey or
ice cubes and blend again until smooth.
sweetener of
5. Pour the strawberry matcha mixture
your choice
into glasses and serve.
 Ice cubes

Table 46: Ingredients and Procedure in Strawberry Matcha

76
 INGREDIENTS STEP-BY-STEP PROCEDURE OF ORANGE YAKULT
 1 cup or 240 1. Gather your ingredients - orange
ml of orange juice, Yakult, and ice cubes.
juice, 2. Place ice cubes in a glass to chill
freshly the drink.
squeezed or 3. Pour 1 cup (240 ml) of orange juice
store-bought into the glass with ice.
 1 bottle or 4. Open a bottle of Yakult (65 ml) and
65 ml of pour it over the orange juice in the
yakult, glass.
original 5. Use a spoon or stirrer to gently mix
flavor the Yakult and orange juice together.
6. Serve your Orange Yakult
 Ice Cubes

Table 47: Ingredients and Procedure in Orange Yakult

INGREDIENTS STEP-BY-STEP PROCEDURE OF RED VELVET

 1 cup (240 ml) 1. Gather all your ingredients - milk,
of milk, you chocolate syrup, red food coloring,
can use dairy vanilla extract, whipped cream, and red
or plant-based velvet cake crumbs (if using).
milk like 2. In a glass, combine 1 cup (240 ml) of
almond milk or milk with 2 tablespoons (30 ml) of
oat milk chocolate syrup. Stir well until the
 2 tablespoons chocolate syrup is fully incorporated
(30 ml) of into the milk.
Chocolate 3. Add 1-2 teaspoons (5-10 ml) of red
Syrup food coloring to the chocolate milk
mixture, depending on how deep you want
 1-2 teaspoons
the red color to be. Stir until the color
(5-10 ml) of
is evenly distributed throughout the
Red Food
drink.
Coloring,
4. Stir in 1/2 teaspoon (2.5 ml) of
adjust
vanilla extract to enhance the flavor of
according to
the drink.
desired color
5. Top with Whipped Cream: If desired,
intensity
top the Red Velvet drink with a generous
 1/2 teaspoon
dollop of whipped cream for added
(2.5 ml) of
creaminess and indulgence.
Vanilla
Extract

77
 For topping 6. Garnish with Red Velvet Cake Crumbs:
Whipped Cream Sprinkle some red velvet cake crumbs over
 For garnish the whipped cream for a decorative touch
Red Velvet and extra flavor reminiscent of red
Cake Crumbs velvet cake.
7. Serve your Red Velvet drink.

Table 48: Ingredients and Procedure in Red Velvet

INGREDIENTS STEP-BY-STEP PROCEDURE OF CARBONARA

 1 block of 1. To make the Cream Cheese Carbonara
Eden Cream Sauce: In a pan drizzle with oil, sauté
Cheese, cut the bacon and render the fat. Once
into cubes cooked, remove the bacon and set aside
 250g 2. Using the same pan, sauté garlic and
Spaghetti white onion until slightly caramelized.
Pasta 3. Add the ham and mushroom. Sauté for 3
minutes.
 2tbsp Oil
4. Add the All-Purpose Cream, 1 block of
 3 cloves of
Eden Cream Cheese, 3/4 of the crispy
garlic
bacon and the parmesan cheese.
 1/3 cup of 5. Season with salt and pepper. Simmer
onion for 3 minutes.
 1 cup of ham 6. Mix in the cooked spaghetti pasta and
 11/2 cup of fresh Basil. Mix just until
bacon incorporated.
 1 cup of all- 7. Transfer to a serving plate top with
purpose cream parmesan cheese and the remaining crispy
 salt and bacon. Ready to serve.
ground pepper
 mushroom
Table 49: Ingredients and Procedure in Carbonara

INGREDIENTS STEP-BY-STEP PROCEDURE OF MACARONI

SPAGHETTI
 2 cups 1. Cook the spaghetti and elbow macaroni
(about 200g) separately according to the package
of elbow instructions until al dente. Drain and
macaroni set aside.

78
 2 cups 2. In a large skillet or saucepan, sauté
spaghetti garlic and white onion until slightly
sauce caramelized.
 all-purpose 3. Pour all-purpose cream over medium
cream heat until warm but not boiling.
Gradually add the shredded cheese,
 2 cups
stirring constantly until the cheese is
(about 200g)
melted and the sauce is smooth. Season
of shredded
with salt and pepper to taste.
cheese
4. Pour the cheese sauce over the
(cheddar or
spaghetti and macaroni mixture in the
mozzarella
skillet. Stir until everything is evenly
work well)
coated with the cheese sauce.
 1/4 cup
5. Transfer the spaghetti macaroni to a
(about 30g)
serving dish or individual plates.
of grated
Sprinkle grated Parmesan cheese on top
Parmesan
and garnish with chopped fresh basil or
cheese
parsley if desired. Transfer to a serving
 Salt and plate top with parmesan cheese and the
pepper to remaining crispy bacon. Ready to serve.
taste
 8 ounces
(about 225g)
of spaghetti
 oil
 3 cloves of
garlic
 1/3 cup of
onion

Table 50: Ingredients and Procedure in Macaroni Spaghetti

INGREDIENTS STEP-BY-STEP PROCEDURE OF BEEF LASAGNA

1 pound 1. Cook the ground meat in a skillet
(450g) ground until browned and crumbly. Add the onion
beef and continue cooking until it's
1 onion, translucent. Stir in the canned tomato
diced products, half of the parsley, garlic,
basil, 1.5 teaspoons of salt, oregano,
and sugar.

79
2 cloves 2. Boil the lasagna noodles in lightly
garlic, salted water until they're al dente.
minced 3. Mix cottage cheese, Parmesan cheese,
 1 can (15 oz) eggs, the remaining parsley, the
tomato sauce remaining salt, and pepper in a bowl.
4. Layer the ingredients according to the
 1 can (14.5
recipe (starting with sauce and ending
oz) diced
with mozzarella) until the lasagna is
tomatoes
assembled.
2 teaspoons
5. Cover with foil and bake in the
Italian
preheated oven for about half an hour.
seasoning
Remove the foil and continue baking until
 Salt and the top is golden brown.
pepper to
taste
9 lasagna
noodles
 15 oz ricotta
cheese
1 ½ cups
shredded
mozzarella
cheese
 ½ cup grated
Parmesan
cheese
 1 egg

Table 51: Ingredients and Procedure in Beef Lasagna

INGREDIENTS STEP-BY-STEP PROCEDURE OF BEEF FRENCH

FRIES
 potatoes 1. Heat the oil in a deep fryer or a
 cups of oil large pot to 325°F (165°C).
(for frying) 2. Working in batches, carefully add the
potato sticks to the hot oil and fry for
 Salt
about 4-5 minutes, or until they are
(flavors) to
cooked through but not yet golden brown.
taste
3. Remove the fries from the oil using a
slotted spoon or spider strainer and

80
 place them on a paper towel-lined plate
to drain excess oil.
4. Increase the heat of the oil to 375°F
(190°C).
5. Once the oil is hot, return the
partially cooked fries to the oil in
batches and fry for an additional 2-3
minutes, or until they are golden brown
and crispy.
6. Again, remove the fries from the oil
and place them on a paper towel-lined
plate to drain excess oil.
7. Season the fries with salt while they
are still hot.
Table 52: Ingredients and Procedure in French Fries

INGREDIENTS STEP-BY-STEP PROCEDURE OF BEEF

NACHOS OVERLOAD
 2 tablespoons 1. Combine butter and annatto seeds
Butter in a pan. Gently heat for 3 minutes.
 1 tablespoon Strain the annatto seed out of the
Annatto Seeds pan. (5mins)
2. Stir in All Purpose Cream and
 1 All-Purpose
cheese. Simmer over low heat and mix
Cream
until smooth. (5mins)
 1/2 bar grated
3. Scatter nacho chips on a platter.
cheese
Drizzle cheese sauce on top.
 1 container Nachos Scatter onion, tomato, green chili,
chips scallion and bacon bits on top.
 1-piece red onion, Serve immediately. (2mins)
chopped 8.
 2 pieces tomato,
chopped
 1-piece green
finger chili,
seeded and biased
 1 stalk scallion,
sliced
 1/4 cup bacon bits

Table 52: Ingredients and Procedure Nachos Overload

81
QUANTIFICATION OF PRODUCTS

This aims to establish precise measurements and

quantities required for the recipe preparation, as well as to

determine the financial viability of offering each item on

the menu.

INGREDIENTS UNIT QUANTITY TOTAL NO. OF COST PER

COST COST SERVING SERVING
Coffee 700 per 2 kg 1,400 130(8OZ) 10.76(8oz)
Beans 1kg 110(12OZ) 12.72(12oz)
Cup 170 per 130 pcs 419 130(8OZ) 3.22(8OZ)
100 pcs (8OZ) 110(12OZ) 3.80(12OZ)
(8OZ) 110 pcs
180 per (12OZ)
100 pcs
(12OZ)
TOTAL 1,819 13.98(8OZ)
16.52(12OZ)
Table 53: Quantification of Americano Hot Coffee

INGREDIENTS UNIT QUANTITY TOTAL NO. OF COST PER

COST COST SERVING SERVING
Coffee 700 per 1.5 kg 1,050 130(8OZ) 8.07(8oz)
Beans 1kg 110(12OZ) 9.54(12oz)
Milk 100 per 4 L 400 130(8OZ) 3.07(8oz)
1 L 110(12OZ) 3.63(12oz)
Vanilla 485 per 2.25 L 1,455 130(8OZ) 11.19(8oz)
Syrup 750 ml 110(12OZ) 13.22(12oz)
Caramel 485 per 2.25 L 1,455 130(8OZ) 11.19(8oz)
Syrup 750 ml 110(12OZ) 13.22(12oz)
Caramel 210 per 2 kg 420 130(8OZ) 3.23(8oz)
Drizzle 1kg 110(12OZ) 3.81(12oz)
Cup 170 per 130 pcs 419 130(8OZ) 3.22 (8OZ)
100 pcs (8OZ) 110(12OZ) 3.80(12OZ)
(8OZ) 110 pcs
180 per (12OZ)
100 pcs
(12OZ)
TOTAL 1,819 39.97(8OZ)
47.22(12OZ)
Table 54: Quantification of Caramel Macchiato Hot Coffee

82
INGREDIENTS UNIT QUANTITY TOTAL NO. OF COST PER
COST COST SERVING SERVING
Coffee 700 per 1.5 kg 1,050 130(8OZ) 8.07(8oz)
Beans 1kg 110(12OZ) 9.54(12oz)
Milk 100 per 4 L 400 130(8OZ) 3.07(8oz)
1L 110(12OZ) 3.63(12oz)
Caramel 485 per 1.5 L 970 130(8OZ) 7.46(8oz)
Syrup 750 ml 110(12OZ) 8.81(12oz)
Caramel 210 per 2 kg 420 130(8OZ) 3.23(8oz)
Drizzle 1kg 110(12OZ) 3.81(12oz)
Cup 170 per 130 pcs 419 130(8OZ) 3.22 (8OZ)
100 pcs (8OZ) 110(12OZ) 3.80(12OZ)
(8OZ) 110 pcs
180 per (12OZ)
100 pcs
(12OZ)
TOTAL 1,819 25.05(8OZ)
29.59(12OZ)
Table 55: Quantification of Caramel Latte Hot Coffee

INGREDIENTS UNIT QUANTITY TOTAL NO. OF COST PER

COST COST SERVING SERVING
Coffee 700 per 2 kg 1,400 130(8OZ) 10.76(8oz)
Beans 1kg 110(12OZ) 12.72(12oz)
Milk 100 per 4 L 400 130(8OZ) 3.07(8oz)
1L 110(12OZ) 3.63(12oz)
Cocoa 380 per 2 kg 760 130(8OZ) 5.84(8oz)
Powder 1kg 110(12OZ) 6.90(12oz)
Cup 170 per 130 pcs 419 130(8OZ) 3.22(8OZ)
100 pcs (8OZ) 110(12OZ) 3.80(12OZ)
(8OZ) 110 pcs
180 per (12OZ)
100 pcs
(12OZ)
TOTAL 1,819 22.89(8OZ)
27.05(12OZ)
Table 56: Quantification of Cappuccino Hot Coffee

INGREDIENTS UNIT QUANTITY TOTAL NO. OF COST PER

COST COST SERVING SERVING
Coffee 700 per 1.5 kg 1,050 130(16OZ) 8.07(16OZ)
Beans 1kg 110(20OZ) 9.54(20OZ)
Milk 100 per 4 L 400 130(16OZ) 3.07(16OZ)
1L 110(20OZ) 3.63(20OZ)

83
 Caramel 485 per 1.5 L 970 130(16OZ) 7.46(16OZ)
Syrup 750 ml 110(20OZ) 8.81(20OZ)
Caramel 210 per 2 kg 420 130(16OZ) 3.23(16OZ)
Drizzle 1kg 110(20OZ) 3.81(20OZ)
Kosher Salt 435 per 1 kg 435 130(16OZ) 3.34(16OZ)
1kg 110(20OZ) 3.95(20OZ)
Whipped 620 per 2 kg 1,240 130(16OZ) 9.53(16OZ)
Cream 1kg 110(20OZ) 8.85(20OZ)
Cup 480 per 130 pcs 1,152 130(16OZ) 8.86(16OZ)
100 pcs (16OZ) 110(20OZ) 10.47(20OZ)
(16OZ) 110 pcs
500 per (20OZ)
100 pcs
(20OZ)
Straw 70 per 130 pcs 168 130(16OZ) 1.29(16OZ)
100 pcs (16OZ) 110(20OZ) 1.52(20OZ)
110 pcs
(20OZ)
TOTAL 5,835 44.90(16OZ)
53.07(20OZ)
Table 57: Quantification of Salted Caramel Iced Coffee

INGREDIENTS UNIT QUANTITY TOTAL NO. OF COST PER

COST COST SERVING SERVING
Coffee 700 per 1.5 kg 1,050 130(16OZ) 8.07(16OZ)
Beans 1kg 110(20OZ) 9.54(20OZ)
Milk 100 per 4 L 400 130(16OZ) 3.07(16OZ)
1L 110(20OZ) 3.63(20OZ)
Vanilla 485 per 1.5 L 970 130(16OZ) 7.46(16oz)
Syrup 750 ml 110(20OZ) 8.81(20oz)
Caramel 485 per 1.5 L 970 130(16OZ) 7.46(16OZ)
Syrup 750 ml 110(20OZ) 8.81(20OZ)
Caramel 210 per 2 kg 420 130(16OZ) 3.23(16OZ)
Drizzle 1kg 110(20OZ) 3.81(20OZ)
Whipped 620 per 2 kg 1,240 130(16OZ) 9.53(16OZ)
Cream 1kg 110(20OZ) 8.85(20OZ)
Cup 480 per 130 pcs 1,152 130(16OZ) 8.86(16OZ)
100 pcs (16OZ) 110(20OZ) 10.47(20OZ)
(16OZ) 110 pcs
500 per (20OZ)
100 pcs
(20OZ)
Straw 70 per 130 pcs 168 130(16OZ) 1.29(16OZ)
100 pcs (16OZ) 110(20OZ) 1.52(20OZ)
110 pcs
(20OZ)

84
 TOTAL 6,370 49(16OZ)
57.90(20OZ)
Table 58: Quantification of Caramel Macchiato Iced Coffee

INGREDIENTS UNIT QUANTITY TOTAL NO. OF COST PER

COST COST SERVING SERVING
Coffee 700 per 1.5 kg 1,050 130(16OZ) 8.07(16OZ)
Beans 1kg 110(20OZ) 9.54(20OZ)
Milk 100 per 4 L 400 130(16OZ) 3.07(16OZ)
1L 110(20OZ) 3.63(20OZ)
Caramel 485 per 1.5 L 970 130(16OZ) 7.46(16OZ)
Syrup 750 ml 110(20OZ) 8.81(20OZ)
Caramel 210 per 2 kg 420 130(16OZ) 3.23(16OZ)
Drizzle 1kg 110(20OZ) 3.81(20OZ)
Whipped 620 per 2 kg 1,240 130(16OZ) 9.53(16OZ)
Cream 1kg 110(20OZ) 8.85(20OZ)
Cup 480 per 130 pcs 1,152 130(16OZ) 8.86(16OZ)
100 pcs (16OZ) 110(20OZ) 10.47(20OZ)
(16OZ) 110 pcs
500 per (20OZ)
100 pcs
(20OZ)
Straw 70 per 130 pcs 168 130(16OZ) 1.29(16OZ)
100 pcs (16OZ) 110(20OZ) 1.52(20OZ)
110 pcs
(20OZ)
TOTAL 5,400 41.53(16OZ)
49.09(20OZ)
Table 59: Quantification of Caramel Latte Iced Coffee

INGREDIENTS UNIT QUANTITY TOTAL NO. OF COST PER

COST COST SERVING SERVING
Coffee 700 per 1.5 kg 1,050 130(16OZ) 8.07(16OZ)
Beans 1kg 110(20OZ) 9.54(20OZ)
Milk 100 per 4 L 400 130(16OZ) 3.07(16OZ)
1L 110(20OZ) 3.63(20OZ)
Chocolate 485 per 1.5 L 970 130(16OZ) 7.46(16OZ)
Syrup 750 ml 110(20OZ) 8.81(20OZ)
Cocoa 380 per 2 kg 760 130(16OZ) 5.84(16OZ)
Powder 1kg 110(20OZ) 6.90(20OZ)
Whipped 620 per 2 kg 1,240 130(16OZ) 9.53(16OZ)
Cream 1kg 110(20OZ) 8.85(20OZ)
Sugar 60 per 3 kg 180 130(16OZ) 1.38(16OZ)
1kg 110(20OZ) 1.63(20OZ)

85
 Cup 480 per 130 pcs 1,152 130(16OZ) 8.86(16OZ)
100 pcs (16OZ) 110(20OZ) 10.47(20OZ)
(16OZ) 110 pcs
500 per (20OZ)
100 pcs
(20OZ)
Straw 70 per 130 pcs 168 130(16OZ) 1.29(16OZ)
100 pcs (16OZ) 110(20OZ) 1.52(20OZ)
110 pcs
(20OZ)
TOTAL 5,920 45.53(16OZ)
53.81(20OZ)
Table 60: Quantification of Mocha Iced Coffee

INGREDIENTS UNIT QUANTITY TOTAL NO. OF COST PER

COST COST SERVING SERVING
Coffee 700 per 1.5 kg 1,050 130(16OZ) 8.07(16OZ)
Beans 1kg 110(20OZ) 9.54(20OZ)
Milk 100 per 4 L 400 130(8OZ) 3.07(8oz)
1L 110(12OZ) 3.63(12oz)
Cocoa 380 per 2 kg 760 130(8OZ) 5.84(8oz)
Powder 1kg 110(12OZ) 6.90(12oz)
Whipped 620 per 2 kg 1,240 130(16OZ) 9.53(16OZ)
Cream 1kg 110(20OZ) 8.85(20OZ)
Cup 480 per 130 pcs 1,152 130(16OZ) 8.86(16OZ)
100 pcs (16OZ) 110(20OZ) 10.47(20OZ)
(16OZ) 110 pcs
500 per (20OZ)
100 pcs
(20OZ)
Straw 70 per 130 pcs 168 130(16OZ) 1.29(16OZ)
100 pcs (16OZ) 110(20OZ) 1.52(20OZ)
110 pcs
(20OZ)
TOTAL 4,770 36.69(16OZ)
43.36(20OZ)
Table 61: Quantification of Cappuccino Iced Coffee

INGREDIENTS UNIT QUANTITY TOTAL NO. OF COST PER

COST COST SERVING SERVING
Milk 100 per 4 L 400 130(8OZ) 3.07(8oz)
1L 110(12OZ) 3.63(12oz)
Cocoa 380 per 2 kg 760 130(8OZ) 5.84(8oz)
Powder 1kg 110(12OZ) 6.90(12oz)

86
 Sugar 60 per 3 kg 180 130(16OZ) 1.38(16OZ)
1kg 110(20OZ) 1.63(20OZ)
Vanilla 550 per 1.5 L 1,100 130(16OZ) 8.46(16OZ)
Extract 750 ml 110(20OZ) 10.00(20OZ)
Whipped 620 per 2 kg 1,240 130(16OZ) 9.53(16OZ)
Cream 1kg 110(20OZ) 8.85(20OZ)
Cup 480 per 130 pcs 1,152 130(16OZ) 8.86(16OZ)
100 pcs (16OZ) 110(20OZ) 10.47(20OZ)
(16OZ) 110 pcs
500 per (20OZ)
100 pcs
(20OZ)
Straw 70 per 130 pcs 168 130(16OZ) 1.29(16OZ)
100 pcs (16OZ) 110(20OZ) 1.52(20OZ)
110 pcs
(20OZ)
TOTAL 5,000 38.46(16OZ)
45.45(20OZ)
Table 62: Quantification of Chocolate Ice

INGREDIENTS UNIT QUANTITY TOTAL NO. OF COST PER

COST COST SERVING SERVING
Matcha 1,200 1 kg 1,200 130(16OZ) 9.23(16OZ)
Powder per 1kg 110(20OZ) 10.90(20OZ)
Strawberry 80 per 6 480 130(16OZ) 3.69(16OZ)
pack 110(20OZ) 4.36(20OZ)
Honey 320 per 3kg 620 130(16OZ) 4.76(16OZ)
1.5kg 110(20OZ) 5.63(20OZ)
Cup 480 per 130 pcs 1,152 130(16OZ) 8.86(16OZ)
100 pcs (16OZ) 110(20OZ) 10.47(20OZ)
(16OZ) 110 pcs
500 per (20OZ)
100 pcs
(20OZ)
Straw 70 per 130 pcs 168 130(16OZ) 1.29(16OZ)
100 pcs (16OZ) 110(20OZ) 1.52(20OZ)
110 pcs
(20OZ)
TOTAL 3,620 27.84(16OZ)
32.90(20OZ)
Table 63: Quantification of Strawberry Matcha

87
INGREDIENTS UNIT QUANTITY TOTAL NO. OF COST PER
COST COST SERVING SERVING
Milk 100 per 4 L 400 130(8OZ) 3.07(8oz)
1L 110(12OZ) 3.63(12oz)
Chocolate 485 per 1.5 L 970 130(16OZ) 7.46(16OZ)
Syrup 750 ml 110(20OZ) 8.81(20OZ)
Vanilla 550 per 1.5 L 1,100 130(16OZ) 8.46(16OZ)
Extract 750 ml 110(20OZ) 10.00(20OZ)
Red Velvet 330 per 2 gr 660 130(16OZ) 5.07(16OZ)
Crumbles 250gr 110(20OZ) 6.00(20OZ)
Cup 480 per 130 pcs 1,152 130(16OZ) 8.86(16OZ)
100 pcs (16OZ) 110(20OZ) 10.47(20OZ)
(16OZ) 110 pcs
500 per (20OZ)
100 pcs
(20OZ)
Straw 70 per 130 pcs 168 130(16OZ) 1.29(16OZ)
100 pcs (16OZ) 110(20OZ) 1.52(20OZ)
110 pcs
(20OZ)
TOTAL 4,450 34.23(16OZ)
40.45(20OZ)
Table 64: Quantification of Red Velvet

INGREDIENTS UNIT QUANTITY TOTAL NO. OF COST PER

COST COST SERVING SERVING
Orange 230 per 2 kg 460 130(16OZ) 3.53(16OZ)
Powder 1kg 110(20OZ) 4.18(20OZ)
Yakult 45 per 5 225 130(16OZ) 1.73(16OZ)
pack 110(20OZ) 2.04(20OZ)
(5pcs)
Cup 480 per 130 pcs 1,152 130(16OZ) 8.86(16OZ)
100 pcs (16OZ) 110(20OZ) 10.47(20OZ)
(16OZ) 110 pcs
500 per (20OZ)
100 pcs
(20OZ)
Straw 70 per 130 pcs 168 130(16OZ) 1.29(16OZ)
100 pcs (16OZ) 110(20OZ) 1.52(20OZ)
110 pcs
(20OZ)
TOTAL 2,005 15.42(16OZ)
18.22(20OZ)
Table 65: Quantification of Orange Yakult

88
INGREDIENTS UNIT QUANTITY TOTAL NO. PER COST PER
COST COST SERVING SERVING
Spaghetti 70 per 8kg 560 130 4.30
Pasta 1kg
Cheese 153 per 860g 306 130 2.35
430g
Mushroom 57 per 800g 114 130 0.87
400g
Garlic 60 per 1/4 kg 15 130 0.11
1kg
Onion 55 per 1/4 kg 13 130 0.1
1kg
Ham 60 per 2 pack 120 130 0.92
1 pack
Bacon 350 per 1/2 kg 175 130 1.34
1kg
Salt 20 per 1 kg 20 130 0.15
1kg
All-purpose 70 per 1000ml 280 130 2.15
Cream 250ml
Pepper 27 per 100g 27 130 0.20
100g
Oil 80 per 1 L 80 130 0.61
1L
Packaging 50 per 130 216 130 1.66
30 pcs
Total 1,926 14.81
Table 66: Quantification of Carbonara

INGREDIENTS UNIT QUANTITY TOTAL NO. PER COST PER

COST COST SERVING SERVING
Elbow 106 per 8kg 848 130 6.52
Macaroni 1kg
Spaghetti 126 per 1800g 252 130 1.93
Sauce 900g
Cheese 153 per 860g 306 130 2.35
430g
Garlic 60 per 1/4 kg 15 130 0.11
1kg
Onion 55 per 1/4 kg 13 130 0.1
1kg
Salt 20 per 1 kg 20 130 0.15
1kg
All-purpose 70 per 1000ml 280 130 2.15
Cream 250ml

89
 Pepper 27 per 100g 27 130 0.20
100g
Oil 80 per 1 L 80 130 0.61
1L
Packaging 50 per 130 216 130 1.66
30 pcs
Total 2,057 15.82
Table 67: Quantification of Macaroni Spaghetti

INGREDIENTS UNIT QUANTITY TOTAL NO. PER COST PER

COST COST SERVING SERVING
Beef 245 per 4kg 980 130 7.53
1kg
Lasagna 180 per 2000g 720 130 5.53
Pasta 500g
Tomato 120 per 1800g 240 130 1.84
Sauce 900g
Cheese 153 per 860g 306 130 2.35
430g
Garlic 60 per 1/4 kg 15 130 0.11
1kg
Onion 55 per 1/4 kg 13 130 0.1
1kg
Salt 20 per 1 kg 20 130 0.15
1kg
Egg 220 per 24 pcs 220 130 1.69
24 pcs
Pepper 27 per 100g 27 130 0.20
100g
Oil 80 per 1 L 80 130 0.61
1L
Packaging 50 per 130 216 130 1.66
30 pcs
Total 2,837 21.82
Table 68: Quantification of Beef Lasagna

INGREDIENTS UNIT QUANTITY TOTAL NO. OF COST PER

COST COST SERVING SERVING
Potato 115 per 3 kg 345 130 2.65
Fries 1kg
Oil 80 per 2 L 160 130 1.23
1L
Iodized 30 per 1 kg 30 130 0.23
Salt 1kg

90
 Cheese 299 per 1 kg 299 130 2.3
Powder 1kg
Barbeque 299 per 1 kg 299 130 2.3
Powder 1kg
Packaging 50 per 130 pcs 216 130 1.66
30 pcs
TOTAL 1,349 10.37
Table 69: Quantification of French Fries

INGREDIENTS UNIT QUANTITY TOTAL NO. PER COST PER

COST COST SERVING SERVING
Nachos 74 per 2000g 296 130 2.27
Chips 500g
Annatto 279 per 1kg 279 130 2.28
Seeds 1kg
All-purpose 70 per 1000ml 280 130 2.15
Cream 250ml
Cheese 153 per 860g 306 130 2.35
430g
Onion 55 per 1/4 kg 13 130 0.1
1kg
Tomato 35 per 1kg 35 130 0.26
1kg
Chili 3 per 2 10 pcs 15 130 0.11
pcs
Stalk 15 per 10 stems 30 130 0.23
Scallion 5stems
Bacon Bits 350 per 1/2 kg 175 130 1.34
1kg
Packaging 50 per 130 pcs 216 130 1.66
30 pcs
Total 1,645 12.65
Table 70: Quantification of Nachos Overload

INGREDIENTS UNIT QUANTITY TOTAL NO. PER COST PER

COST COST SERVING SERVING
Egg Pie 240 per 130 3,900 130 30
8 pcs
Packaging 50 per 130 216 130 1.66
30 pcs
Total 31.66
Source: Sweet Connection, Jaen, Nueva Eicja
Table 71: Quantification of Egg Pie

91
INGREDIENTS UNIT QUANTITY TOTAL NO. PER COST PER
COST COST SERVING SERVING
Brownies 210 per 260 4,550 130 35
12 pcs
Packaging 50 per 130 216 130 1.66
30 pcs
Total 36.66
Source: Sweet Connection, Jaen, Nueva Eicja
Table 72: Quantification of Brownies

INGREDIENTS UNIT QUANTITY TOTAL NO. PER COST PER

COST COST SERVING SERVING
Cinnamon 215 per 130 5,590 130 43
Roll 5 pcs
Packaging 50 per 130 216 130 1.66
30 pcs
Total 44.66
Source: Sweet Connection, Jaen, Nueva Eicja
Table 73: Quantification of Cinnamon Roll
PAYMENT PROCESS

The Sip-Licity Cafe makes payment options such as paying

through cash or g-cash. These payment methods facilitate

transactions and ensure a smooth exchange of value between

buyers and sellers.

CUSTOMER Payment Sip-Licity

through Cash Cafe
Figure 18: Payment Process of the Customer through Cash

92
 Payment
CUSTOMER Sip-Licity
through G-Cash
Cafe
Figure 19: Payment Process of the Customer through G-Cash

OPERATING SCHEDULE

This section illustrates the detailed schedule of Sip-

licity Café in Barangay Ocampo-Rivera, Jaen, Nueva Ecija.

From the time of the opening until the closing period of the

everyday operation. Sip-licity Café will operate seven days

a week, and it has three employees to provide better service

to its valued customers.

ACTIVITY
8:30 - 9:00 AM Preparation and Opening
9:00 AM - 8:00 PM Store Hours
8:00 – 9:00 PM INVENTORY AND CLEANING
THE STORE
8:00 PM CLOSING PERIOD
Table 74: Activity Schedule of Staff

BREAK TIME
STAFF 1 (Barista) 12:00 PM - 1:00 PM

STAFF 2 (Assistant Barista) 1:00 PM - 2:00 PM

STAFF 3 2:00 PM - 3:00 PM
(Owner/Manager/Cashier)
Table 75: Break Time of Staff

93
DISTRIBUTION CHANNEL

Figure 20: Distribution Channel of Sip-Licity Cafe

The figure shows the distribution channel of Sip-Licity

Cafe Business, wherein the proposed model involves direct

sales of the product to the end-user, who is the customer.

SELLING PROCESS

Figure 21: Selling Process

It shows the selling process of Sip-Licity Cafe involves

customer walk-in that begins in welcoming the customers. Once

the customers are greeted, the staff will take their orders,

and ask if there’s other concern about their order. After

finalizing the customer’s order, the payment is processed.

When their order is ready, the customer can enjoy their

coffee.

94
BUSINESS LOCATION

The location of the business is in Jaen, Nueva Ecija,

specifically in Brgy. Ocampo-Rivera, Jaen, Nueva Ecija.

Figure 22: Business Location

COFFEE SHOP LAYOUT

This image illustrates the production location of Sip-

Licity Cafe, with the size of 6 by 3 meters.

Figure 23: The Plant Layout of Sip-Licity Cafe.

95
Figure 24: Plant Layout

96
COFFEE SHOP LAYOUT

These were the images of the design layout in the

proposed business of Sip-Licity Cafe.

FRONT VIEW FRONT VIEW INTERIOR LAYOUT

RIGHT SIDE LEFT SIDE

Figure 25: Sip-Licity Layout

97
 RAW MATERIALS

RAW MATERIALS FUNCTION SUPPLIER QUANTITY UNIT PRICE

COST
COFFEE BEANS Coffee 14.5 kg 700 10,150
beans are per 1
used to kg
make
coffee.

MILK Neutralizes 40L 100 4,000

a lot of per L
the acidity
in the
coffee and
reduces
bitterness.
CARAMEL SYRUP It is an 8.25 L 485 5,335
ingredient per
used in 750 ml
caramel
macchiato
and caramel
latte.
VANILLA SYRUP An 3.75 L 485 2,425
TEAMART
ingredient per
used for 750 ml
coffee.

CHOCOLATE An 3 L 485 1,940

SYRUP ingredient per
used non- 750 ml
coffee
drinks and
for
drizzling.
HONEY Used to 3 kg 320 640
sweeten per
food or 1.5kg
drink.

98
WHIPPED CREAM Used to top 12 kg 620 7,440
on drinks. per
1kg

MATCHA Used for 1kg 1,200 1,200

Strawberry per 1
Matcha kg
drink.

RED VELVET Used for 2 g 330 660

CRUMBLES Red Velvet per
drink. 250 g

ORANGE POWDER Used for 2 kg 230 460

Orange per
Yakult 1kg
drink.

KOSHER SALT An TEAMART 2 kg 435 435

ingredient per
used for 1kg
Salted
Caramel
drink.
SUGAR Used to add 6 kg 60 per 360
sweetness. 1kg

Cheese Powder Used as a 1 kg 299 299

flavoring per 1
on Potato kg
Fries.

99
Barbeque Used as a 1 kg 299 299
Powder flavoring per 1
on Potato kg
Fries.

COCOA POWDER Used for 6 kg 380 2,280

sprinkling. per
1kg

STRAWBERRY Used for 6 80 per 480

Strawberry pack
Matcha
drink.

YAKULT Used for 5 45 per 225

Orange pack
Yakult (5pcs)
drink.
VANILLA An 3 L 550 2,200
EXTRACT ingredient per
used to add 750 ml
flavor BRGY.
JAEN,
NUEVA
CARAMEL Used for ECIJA 10 kg 210 2,100
DRIZZLE drizzling PUBLIC per
drinks. MARKET 1kg

SPAGHETTI An 8 kg 70 per 560

PASTA ingredient 1kg
used for
Carbonara.

ELBOW An 8 kg 106 848

MACARONI ingredient per
used for 1kg
Macaroni
Spaghetti.

100
LASAGNA PASTA An 2000g 180 720
ingredient per
used for 500g
Beef
Lasagna.
EGG Ingredient 24 pcs 220 220
of Beef per 24
Lasagna. pcs

ANNATTO SEEDS An 1 kg 279 279

ingredient per 1
used to kg
make Nachos
Overload.
GARLIC An ¾ kg 60 per 45
ingredient 1 kg
used for
sauteing.

ONION An BRGY. 1 kg 55 per 55

ingredient JAEN, 1kg
used for NUEVA
sauteing. ECIJA
PUBLIC
MUSHROOM An MARKET 800 g 57 per 114
ingredient 400g
used in
cooking
carbonara.
STALK SCALLION Used to 10 stems 15 per 30
make Nachos 5
Overload. stems

TOMATO Used to 1 kg 35 per 35

make Nachos 1kg
Overload.

TOMATO SAUCE One of the 1800 g 120 240

main per
ingredients 900 g
in making
pasta
dishes.

101
SPAGHETTI SAUCE One of the 1,800 g 126 252
main per
ingredients 900g
in making
pasta
dishes.
IODIZED SALT Used to 1 kg 30 per 30
season and 1 kg
taste.

SALT Used to 3 kg 20 per 60

season and 1 kg
taste.

PEPPER Used to BRGY. 300 g 27 per 81

season and JAEN, 100 g
taste. NUEVA
ECIJA
PUBLIC
MARKET
CHILI An 10 pcs 3 per 15
ingredient 2 pcs
used in
making
Nachos
Overload.
CHEESE An 3,440 g 153 1,224
ingredient per
used for 430g
pasta.
ALL-PURPOSE An 3 L 70 per 840
CREAM ingredient 250 ml
used for
pasta.

HAM An 2 pack 60 per 120

ingredient 1 pack
used for
pasta.

102
BACON An ½ kg 350 175
ingredient per
used for 1kg
pasta.

BACON BITS An ½ kg 350 175

ingredient per
used to 1kg
make Nachos
Overload.
GROUND BEEF An 4 kg 245 980
ingredient per 1
used to kg
cook Beef
Lasagna.
POTATO FRIES The main 3 kg 115 345
ingredient per 1
in cooking BRGY. kg
French JAEN,
Fries. NUEVA
ECIJA
NACHOS CHIPS The main PUBLIC 2000 g 74 per 296
ingredient MARKET 500 g
in making
Nachos
Overload.

OIL Used for 5 L 80 per 400

cooking 1 L
pasta.

TOTAL 51,067

Table 76: Raw Materials

103
 MACHINERY AND EQUIPMENT

DESCRIPTION FUNCTION SUPPLIER QUANTITY UNIT PRICE

COST
ESPRESSO MACHINE An 1 12,855 12,855
espresso
machine
is a
coffee
brewing
device
that TEAMART,
focuses on CABANATUA
espresso, N
using
steam and
pressure
to craft
highly
concentrat
ed shots.
COFFEE BEAN Coffee 1 2,690 2,690
GRINDER Bean
Grinder is
a machine
TEAMART,
that crush
CABANATUA
es coffee
N
beans to
make
coffee
powder.
OVEN Ovens are 1 3,480 3,480
used for
roasting,
cooking, TEAMART,
and CABANATUA
heating N
food.

104
ELECTRIC DEEP A deep 1 1,200 1,200
FRYER fryer
(also
referred
to as a
deep fat
fryer) is
a kitchen
appliance
used for TEAMART,
deep CABANATUA
frying. N
Deep
frying is
a method
of cooking
by
submerging
food into
oil at
high heat.
PORTABLE ICE A consumer 1 4,200 4,200
MAKER MACHINE device for
making
ice, found
inside a
home
freezer; a
stand-
TEAMART,
alone
CABANATUA
appliance
N
for making
ice, or an
industrial
machine
for making
ice on a
large
scale.
REFRIGERATOR It is used ADDESSA, 1 12,798 12,798
to keep GAPAN,
food cold NUEVA
and help ECIJA
food stay BRANCH
fresh
longer.

105
WATER DISPENSER A machine 1 2,298 2,298
that
ADDESSA,
dispenses
GAPAN,
and often
NUEVA
also cools
ECIJA
or heats
BRANCH
up water
with a
refrigerat
ion unit.
AIR-CONDITIONER Air- 1 17,399 17,399
conditione
rs return
the cooled ADDESSA,
air to GAPAN,
indoor NUEVA
space and ECIJA
transfer BRANCH
the
unwanted
heat and
humidity
outside.
TV Provides 1 24,016 24,016
news, ADDESSA,
informatio GAPAN,
n, and NUEVA
entertainm ECIJA
ent to BRANCH
people.

POS HARDWARE A point- 1 30,000 30,000

of-
sale (POS)
system is
Jr
a
Machine
computeriz
Shop,
ed system
Paco
with
Ramon
several
St.,Caban
key
atuan
components
,
including
POS

106
 hardware
and
software
used to
complete a
retail
transactio
n. The
merchant/e
mployee
calculates
the total
amount
owed by
the
customer,
may print
a bill if
needed,
and gives
customers
various
options to
make the
payment.
LAPTOP The laptop 1 30,000 30,000
is easy to
take, move
and set
up, while
also
fitting in
a smaller
Acer, SM
workspace,
Cabanatua
which is
n
great in
case any
employee
needs to
move to a
smaller
workstatio
n.

107
INDUCTION COOKER It makes 1 1,426 1,426
pots and ADDESSA,
pans heat GAPAN,
directly. NUEVA
ECIJA
BRANCH

FIRE A fire 1 2,000 2,000

EXTINGUISHER extinguish
er is a
handheld
active
fire
MILAGROS
protection
R.
device
LAGASCA –
usually
PROPRIETR
filled
ESS, San
with a dry
Roque
or wet
Sur,
chemical
Cabanatua
used to
n Nueva
extinguish
Ecija
or control
small
fires,
often in
emergencie
s.
SMOKE DETECTOR Smoke MILAGROS 1 1,000 1,000
detector R.
used to LAGASCA –
detect PROPRIETR
fires by ESS, San
sensing Roque
small Sur,
particles Cabanatua
in the n Nueva
air. Ecija
TOTAL COST 145,362
Figure 77: Machinery and Equipment

108
 KITCHEN TOOLS

DESCRIPTION FUNCTION SUPPLIER QUANTITY UNIT PRICE

COST
KNIFE Knife is 3 50 150
used to
cut, chop,
dice, PRINCE
slice, HYPEMARK
peel, etc. ET, JAEN
NUEVA
ECIJA

WOODEN SPATULA A wooden 2 90 180

spatula is
a kitchen
tool used
for PRINCE
stirring, HYPEMARK
turning, ET, JAEN
and NUEVA
scraping ECIJA
ingredient
s.
CHOPPING BOARD A chopping 1 170 170
board is a
kitchen
tool used
PRINCE
as a
HYPEMARK
surface
ET, JAEN
for foods
NUEVA
being cut
ECIJA
with
knives.
TRAY Trays are 2 450 900
used for
carrying
food and PRINCE
drinks, or HYPEMARK
for ET, JAEN
holding NUEVA
small ECIJA
items.

109
PITCHER A pitcher 6 59 354
is a
container
with a
PRINCE
spout used
HYPEMARK
for
ET, JAEN
storing
NUEVA
and
ECIJA
pouring
liquids.
DRINKING Drinking 20 20 400
GLASSES glasses
are used PRINCE
for HYPEMARK
holding ET, JAEN
drinking NUEVA
water. ECIJA
MEASURING It is used 1 SET 120 120
SPOON (SET) to measure (7pcs)
tiny
amounts of
liquid and PRINCE
dry HYPEMARK
components ET, JAEN
with NUEVA
measuring ECIJA
spoons.

MILK FROTHER A milk 1 155 155

frothier
is a
utensil
for making TEAMART,
milk CABANATU
froth, AN
typically
to be
added to
coffee.

110
LIQUID For syrup- 1 42 42
STAINLESS based
STIRRER drinks. TEAMART,
CABANATU
AN

SYRUP PUMPS Syrup 4 325 1,300

pumps
dispense
and
eliminate
the need
TEAMART,
for
CABANATU
measuring
AN
and
worrying
about
precise
quantities
.
CUP HOLDER To hold a 1 400 400
cup or
other TEAMART,
drinking CABANATU
cups. AN

ESPRESSO GLASS Measuring 1 67 67

CUP WOODEN cup is
HANDLE used to
TEAMART,
measure
CABANATU
the volume
AN
of liquid
ingredient
s.
SCISSOR Scissors 1 60 60
are a tool PRINCE
used for HYPEMARK
cutting ET, JAEN
various NUEVA
materials. ECIJA

111
CAN OPENER A can 1 96 96
opener is
used to PRINCE
open metal HYPEMARK
tin cans. ET, JAEN
NUEVA
ECIJA
FRYING PAN A frying 1 1,699 1,699
pan is
used for
PRINCE
frying,
HYPEMARK
searing,
ET, JAEN
and
NUEVA
browning
ECIJA
foods.
TONG Used to 2 80 160
grab onto
foods to
lift, PRINCE
toss, or HYPEMARK
serve them ET, JAEN
without NUEVA
hand ECIJA
contact.
SPOON AND FORK Spoons are 1 DOZEN 25 300
(1 DOZEN) used for (6 Spoon
scooping and 6
food while Fork)
PRINCE
forks for
HYPEMARK
poking and
ET, JAEN
splitting
NUEVA
food into
ECIJA
smaller
pieces.
PLATE A plate is 6 40 320
a broad,
mainly
PRINCE
flat
HYPEMARK
vessel on
ET, JAEN
which food
NUEVA
can be
ECIJA
served.

112
STRAINER It is used 2 90 180
to sift
tiny
materials
away from
larger
PRINCE
ingredient
HYPEMARK
s as well
ET, JAEN
as to
NUEVA
strain
ECIJA
liquids
from other
ingredient
s.
TOTAL COST 7,053
Figure 78: Kitchen Tools

SANITARY SUPPLIES

DESCRIPTION FUNCTION SUPPLIER QUANTITY UNIT PRICE

COST
APRON An apron is 2 130 520
worn to
protect
people’s
RCS,
clothes from
JAEN
kitchen dirt,
NUEVA
grease stains,
ECIJA
and exposure
to high
temperature.

FACEMASK A mask or 2 50 100

protective
covering for RCS,
the face or JAEN
part of the NUEVA
face. ECIJA

113
HAIRNET It is worn 12 15 180
to keep hair
contained.
RCS,
JAEN
NUEVA
ECIJA

POTHOLDER It is used to 3 sets 25 75

cover the hand
when holding
RCS,
hot kitchen
JAEN
cooking
NUEVA
equipment,
ECIJA
like pots and
pans.

CLEANING Cleaning towel 10 15 150

TOWEL is used for
cleaning up RCS,
spills and for JAEN
drying hands. NUEVA
ECIJA

TISSUE PAPER Tissue paper 2 bundle 120 240

is used for (10 pcs
sanitary RCS, each per
purposes like JAEN bundle)
to clean NUEVA
surfaces or ECIJA
even hands.

ALCOHOL Alcohol 2 liters 100 200

SANITIZER sanitizer is
used to RCS,
prevent the JAEN
spread of NUEVA
bacteria and ECIJA
infections.

114
DISPOSABLE Used for 1 pack 35 35
GLOVES handling (100
products to RCS, pcs)
avoid JAEN
contamination. NUEVA
ECIJA

DISHWASHING Dishwashing 2pcs 149 298

LIQUID liquid is used (475 ml)
to clean dirty RCS,
dishes. JAEN
NUEVA
ECIJA

SPONGE A sponge is a 6 5 30
cleaning aid
made of soft RCS,
material. JAEN
Typically used NUEVA
for cleaning ECIJA
impervious
surfaces.
DUSTPAN AND Broom is used 1 100 100
BROOM for sweeping
dirt on floors RCS,
and dustpan is JAEN
used for NUEVA
scooping it. ECIJA

SPIN MOP A spin mop is 1 200 200

a convenient
floor cleaning RCS,
tool. JAEN
NUEVA
ECIJA

115
GLASS WIPER Glass wiper is 1 84 84
used to remove
dirt off the RCS,
glass. JAEN
NUEVA
ECIJA

TRASH BIN Trash bin 2 149 298

serves as the
container to RCS,
keep garbage JAEN
in one place. NUEVA
ECIJA

GARBAGE BAG Garbage bags 10 pcs 38 38

can be used as roll
a liner for
trash cans or
bins, making RCS,
waste JAEN
collection and NUEVA
disposal more ECIJA
efficient and
hygienic.

TOTAL COST 2,548

Figure 79: Sanitary Supplies

FURNITURE AND FIXTURE

DESCRIPTION FUNCTION SUPPLIER QUANTITY UNIT PRICE

COST
LIGHT Coffee shop 1 1,299 1,299
lighting is ENG_Lighting,
one of the Balagtas
key factors Bulacan
in creating
a welcoming
atmosphere
and

116
 attracting
customers.
LIGHT Coffee shop 3 325 975
lighting is
one of the ENG_Lighting,
key factors Balagtas
in creating Bulacan
a welcoming
atmosphere
and
attracting
customers.
LIGHT Coffee shop 1 540 540
lighting is
one of the ENG_Lighting,
key factors Balagtas
in creating Bulacan
a welcoming
atmosphere
and
attracting
customers.
LIGHT Coffee shop 1 770 770
lighting is
one of the
key factors
in creating ENG_Lighting,
Balagtas
a welcoming Bulacan
atmosphere
and
attracting
customers.
LIGHT Coffee shop 1 670 670
lighting is ENG_Lighting,
one of the Balagtas
key factors Bulacan
in creating
a welcoming
atmosphere
and

117
 attracting
customers.
LIGHT Coffee shop 1 1,200 1,200
lighting is
one of the ENG_Lighting,
key factors Balagtas
in creating Bulacan
a welcoming
atmosphere
and
attracting
customers.
TABLE A table is 1 1,380 1,380
a piece of
furniture
that has a
Bar Tools,
flat top
Paranaque,
supported
Metro Manila
by four
legs, used
for putting
things on.
TABLE A table is 1 845 845
a piece of
furniture
that has a
Bar Tools,
flat top
Paranaque,
supported
Metro Manila
by four
legs, used
for putting
things on.
TABLE A table is 1 1,588 1,588
a piece of
furniture
that has a
Bar Tools,
flat top
Paranaque,
supported
Metro Manila
by four
legs, used
for putting
things on.

118
TABLES A table is 4 1,878 7,512
a piece of
furniture
that has a
Bar Tools,
flat top
Paranaque,
supported
Metro Manila
by four
legs, used
for putting
things on.
SOFA Sofa are 1 8,500 8,500
used for
seating and
pieces of
Cotton
art that
Candy’s Pit,
contribute
Pandi Bulacan
to the
overall
aesthetic
of a space.
SOFA Sofa are 1 17,000 17,000
used for
seating and
pieces of
Cotton
art that
Candy’s Pit,
contribute
Pandi Bulacan
to the
overall
aesthetic
of a space.
CHAIR Chairs are 4 354 1,416
used for
seating and
pieces of YaliHousehold
art that Store,
contribute Plaridel
to the Bulacan
overall
aesthetic
of a space.
CHAIR Chairs are 4 1,190 4,760
used for
YaliHousehold
seating and
Store,
pieces of
Plaridel
art that
Bulacan
contribute
to the

119
 overall
aesthetic
of a space.
WALL PLANT It brings 6 238 1,428
an
excellent
way to RCS, JAEN
bring life NUEVA ECIJA
into a
coffee
shop.
CABINET Use 1 1,340 1,340
shelving,
cabinets,
or drawers RCS, JAEN
to store NUEVA ECIJA
supplies,
cups, and
utensils.
DOOR MAT Eliminates 1 150 150
issues like
slipping on
the floor JAEN, PUBLIC
after it’s MARKET
been
raining
out.
CLOCK Used to 1 250 250
show what
time of day
it is. JAEN, PUBLIC
MARKET

CCTV A system 2 2,990 5,980

that sends
television
signals to
a limited
number of Tapo by Tp-
screens and link
is often
used in
shops and
public
places to

120
 prevent
crime.
SHOWCASE Used to 1 7,199 7,199
display
pastries
that a café TEAMART
is
offering.

MIRROR A polished 1 1,550 1,550

or smooth
surface
that forms RCS, JAEN
images by NUEVA ECIJA
reflection.

TOTAL COST 66,352

Figure 80: Furniture and Fixture

RENOVATION MATERIALS

DESCRIPTION FUNCTION SUPPLIER QUANTITY UNIT PRICE

COST
WALLPAPER Used in 11 rolls 110 1,210
interior (45cmX10m)
decoration Homesite
to cover Construction
the Supply, Jaen
interior Nueva Ecija
walls of
domestic
and public
buildings.
FLOOR TILES Floor tiles 31 pcs 230 7,130
offer a (60X60)
significant Homesite
impact on Construction
the Supply, Jaen
aesthetic Nueva Ecija
of a
certain
place.

121
WALL TILES Used as a 62 pcs 100 6,200
final Homesite (20X30)
surface Construction
finish. Supply, Jaen
Nueva Ecija

BATHROOM Protects 17 pcs 80 1,300

FLOOR TILES walls and Homesite (20X20)
floors from Construction
moisture. Supply, Jaen
Nueva Ecija

FAUCET Controls 1 450 450

the flow of
liquids, Homesite
usually Construction
water, in Supply, Jaen
places like Nueva Ecija
kitchens
and
bathrooms.

FAUCET Controls 1 450 450

the flow of
liquids, Homesite
usually Construction
water, in Supply, Jaen
places like Nueva Ecija
kitchens
and
bathrooms.
SINK Sink for 1 1,450 1,450
kitchen
used for Homesite
normally Construction
used for Supply, Jaen
washing Nueva Ecija
dishes,
vegetables,
etc.

122
SINK sink for 1 1,300 1,300
comfort
room used Homesite
for Construction
normally Supply, Jaen
used for Nueva Ecija
washing
hand and
etc.
TOILET A piece of 1 9,500 9,500
sanitary Homesite
hardware Construction
that Supply, Jaen
collects Nueva Ecija
human urine
and feces.
SLIDING Sliding 1 8,000 8,000
DOOR glass door
is used to
allow
natural
light to
Homesite
shine
Construction
through the
Supply, Jaen
coffee shop
Nueva Ecija
and it
makes the
customer to
see the
set-up of
coffee shot
outside.
DOOR FOR CR Door used 1 2,500 2,500
for comfort Homesite
room. Construction
Supply, Jaen
Nueva Ecija

TOTAL COST 39,490

Figure 81: Renovation Materials

123
 SHOP SUPPLIES

DESCRIPTION FUNCTION SUPPLIER QUANTITY UNIT PRICE

COST
BALLPEN Used in VARON 3 7 21
writing SCHOOL
important SUPPLY,
details or JAEN
documents. NUEVA
ECIJA
NOTEBOOK Used for 1 20 20
recording and VARON
references. SCHOOL
SUPPLY,
JAEN
NUEVA
ECIJA

TAPE It is used to 2 20 40
tighten the VARON
packaging of SCHOOL
the product. SUPPLY,
JAEN
NUEVA
ECIJA

TAPE DISPENSER Used to hold 1 70 70

and easily cut VARON
tape for SCHOOL
packaging. SUPPLY,
JAEN
NUEVA
ECIJA

MARKER Used to write 1 15 15

customer’s VARON
orders or SCHOOL
names. SUPPLY,
JAEN
NUEVA
ECIJA

124
COFFEE CUPS Packaging cup 960 170 1,622
for hot coffee per
drink. 100
pcs
(8oz)
TEAMART
180
per
100
pcs
(12oz)
COFFEE CUP Packaging cup 2,160 480 10,230
for iced per
coffee drink. 100
pcs
(16oz)
TEAMART
500
per
100
pcs
(20oz)
TAKE OUT BOX Carton box 650 50 per 833
used for take- 30 pcs
out orders.
TEAMART

TAKE OUT SLOT Carton box 500 240 4,800

HOLDER used for take- per 25
out orders. pcs
TEAMART

PAPER STRAW Paper straw 2,160 70 per 1,512

used for 100
drinks for pcs
both take out
and dine in.
TEAMART

TOTAL COST 19,163

Figure 82: Shop Supplies

125
 UNIFORMS

DESCRIPTION FUNTION SUPPLIER QUANTITY UNIT PRICE

COST
CREAM POLO For the neat 3 250 750
SHIRT and clean
look of the
staff/s. JAEN,

BLACK PANTS PUBLIC

For the neat 3 350 1,050
MARKET
and clean
look of the
staff/s.

TOTAL COST 1,800

Figure 83: Employee Uniforms

COST
Machinery and Equipment 145,362
Kitchen Tools 7,053
Sanitary Supplies 2,548
Furniture and Fixture 66,352
Renovation Materials 39,490
Shop Supplies 19,163
Uniforms 1,800
Grand Total 281,768
Figure 84: Total Summary of Expenses

UTILITIES AND OTHER OPERATING COST

UTILITIES EXPENSE

MONTHLY ANNUALLY
Water Bill 800 9,600
Electricity Bill 5,000 60,000
Wi-Fi (Converge) 1,600 19,200
Total 7,400 88,800
Source: Competitors
Table 85: Utilities Expense

126
RENT EXPENSE
MONTHLY ANNUALLY
Rent 5,000 60,000
Total 5,000 60,000
Source: Mr. Marlon Bingcao, Owner
Table 86: Rent Expense
PROMOTIONAL EXPENSE
QUANTITY COST TOTAL COST
Tarpaulin 1 180 (2X3) 180
Pull-up 1 500 (2X5) 500
Banner
Loyalty Card 100 240 per 100 240
pcs
Tote Bag 10 120 1,200
Total 2,120
Source: inkmark digital print
Table 87: Promotional Expense
RENOVATION EXPENSE
QUANTITY DAYS COST TOTAL
MANPOWER 2 2 700/daily 2,800
(Floor tiles,
Bathroom wall
tiles, and
Wallpaper)
MANPOWER 1 1 700 700
(Lights)
MANPOWER 1 1 700 700
(Sink, faucet,
and toilet)
MANPOWER 1 1 700 700
(Sliding Door and
Door for CR)
MANPOWER 1 1 500 500
(Smoke Detector)
MANPOWER 2 1 700/daily 1,400
(Air-Condition)
TOTAL 6,800
Table 88: Renovation Expense

127
WASTE MANAGEMENT

Social responsibility is a standard practice for all

organizations. This is because a business can only make money

if its internal operations benefit its clients or the public.

As a result, we make it a point for our business to organize its

garbage disposal with the utmost seriousness and care, keeping

efficiency in mind. Hazardous or industrial trash is a service

provided to other businesses. The garbage collector picks up

this waste on a scheduled basis from the surrounding area. Prior

to the collection time, the waste is divided into non-

biodegradable and biodegradable elements.

128
 CHAPTER V

MANAGEMENT ASPECT

The purpose of this chapter is to determine the Management

aspect which includes the form of business organizations,

organizational structure, manpower requirements, Qualification

standards, manpower scheduling, legal requirements, and other

business operational requirements.

FORM OF BUSINESS ORGANIZATION

The Sip-Licity Cafe is a sole proprietorship form of

business organization, which is the most basic type of business

structure. A sole proprietorship is a business where one person

owns the entire business. The owner may hire staff to help with

everyday operations. The researchers chose this form of business

organization for the following reasons:

Full Management Control

The proprietor has complete control over all aspects of the

company's operation, which include production, sales, financing,

personnel and operations.

129
Minimal Requirements

Compared to other business organizations, sole

proprietorships typically have less paperwork and regulatory

requirements.

Simplified Tax

Sole proprietorships are subject to personal tax rates and

have lower compliance costs than partnerships and corporations.

Flexibility

Sole proprietors can make decisions quickly and adapt the

business to changing market conditions without needing to

consult partners or shareholders.

ORGANIZATIONAL STRUCTURE

Figure 26: Organizational Structure of Sip-Licity Cafe

130
 The hierarchy and positional arrangements within an

organization are shown in the figure. In the organizational

structure, the top level comprises the company's owner, followed

by the organization's employees. This structure helps define

reporting relationships and responsibilities. There will be two

staff, one barista, one assistant barista, and the owner of the

Sip-licity Cafe. There is no server because Sip-licity Cafe

offers self-service, through which the customer can claim their

orders, washing the dishes and the cleaning of the area can be

done by the assistant barista.

MANPOWER REQUIREMENTS

POSITION HOURS NUMBER OF PERSONNEL

Owner/Manager - 1

Assistant Barista 8 hours 1

Barista 8 hours 1

Table 89: Manpower Requirements of Sip-Licity Café

This table shows the position and duty hours of the

personnel in the business and the required number of each

personnel.

131
MANPOWER SCHEDULE

TIME 9: 10: 11: 12: 1:0 2:0 3:0 4:0 5:0 6:0 7:0
00 00 00 00 0 0 0 0 0 0 0
– - - - - - - - - - -
10 11: 12: 1:0 2:0 3:0 4:0 5:0 6:0 7:0 8:0
:0 00 00 0 0 0 0 0 0 0 0
0 AM AM PM PM PM PM PM PM PM PM
AM
POSITI
ON
OWNER/
MANAGE * * * * * * * * * *
R
BARIST
* * * * * * * *
A
ASST.
BARIST * * * * * * * *
A
Table 90: Manpower Morning Schedule

The Manpower Schedule of the staff and owner of Sip-Licity

Cafe Production Business. The Owner will start at 9:00 am – 8:00

pm with a 1-hour lunch break, the barista will start at 9:00 am

– 6:00 pm with a 1-hour lunch break, and the assistant barista

will start at 10:00 am – 7:00 pm with a 1-hour break. The table

provides a visual representation of the work hours for different

positions within the organization, helping to ensure that there

is adequate coverage throughout the day. The positions and their

respective work hours may vary depending on the organization's

needs and operational requirements.

132
 Day Off

Staff 1 (Barista) Wednesday

Staff 2 (Assistant Barista) Friday

Table 91: Day Off Schedule of Staff

Sip-Licity Cafe chose to have Wednesday and Friday off for

staff since it offers a well-balanced mix of break days during

the week at work. Restaurant employees may restore and keep a

healthy work-life balance.

COMPENSATION PACKAGE

POSITION HOURLY DAILY WEEKLY MONTHLY YEARLY

Staff 1 ₱ 62.50 ₱ 500 ₱ 3,000 ₱ 13,000 ₱ 156,000
(Barista)
Staff 2 ₱ 50.00 ₱ 400 ₱ 2,400 ₱ 10,400 ₱ 124,800
(Assistant
Barista)
Table 92: Employee Salary

The table shows the salary of staff daily, weekly, monthly

and yearly for the proposed business.

Job Gross SSS Phil Pag-ibig Net Net

Tittle Month health Month Annual
ly ly Salary
Salar ER EE EC ER EE ER EE Salar
y y
Staff ₱ 1,2 585 10 325 325 200 200 ₱ ₱
1 13,00 35 11,89 142,68
(Baris 0 0 0
ta)
Staff ₱ 997 472 10 260 260 200 200 ₱ ₱
2 10,40 .50 .50 9,467 113,61
0 .50 0

133
 (Asst.
Barist
a)
Total ₱ ₱ ₱
23,40 21,35 256,29
0 7.50 0
Table 93: Gross Monthly Salary and Annual Compensation Package

The table shows the gross monthly salary and annual

compensation package of the proposed business to the staff of
Sip-Licity Cafe.

1. Social Security System

Under the Republic Act No 8282 – Social Security Law, SSS,

also known as Social Security System, is a policy of the state

to establish, develop, and promote a sound and viable tax-exempt

social security system suitable to the needs of the people

throughout the Philippines which shall promote social justice

and provide meaningful protection to members and their

beneficiaries against the hazards of disability, sickness,

maternity, old age, death and other contingencies resulting in

loss of income and financial burden. Towards the end, the State

shall endeavor to extend social security protection to workers

and their beneficiaries.

In simple terms, SSS is like an insurance program mandated by

the government to all income earners or workers in the

Philippines. All income earning SSS members are required to

contribute monthly into the fund, the amount depends will depend

134
on their salary bracket. In exchange for the said monthly

contributions, members will enjoy insurance benefits such as

sickness, maternity, disability, retirement, death and funeral

and salary loan.

2. Phil Health

Phil Health is the name of the health insurance plan in place

for private employees in the Philippines. As of 2021, the monthly

contribution rate for the health insurance program is 3.5% of

the employee's basic salary. The monthly contribution is equally

divided between employee and employer. PHP 10,000 is the minimum

salary, and PHP 70,000 is the salary.

3. Pag-ibig

Pag-IBIG Fund members are set to enjoy doubled savings and

higher cash loan entitlements while continuing to have access

to affordable home loans, as the agency is set to increase the

nearly four-decade old mandatory monthly savings for both

members and their employers starting February 2024, officials

announced Wednesday (17 January).

Under the agency’s new rates, the monthly savings of Pag-

IBIG Fund members for both the employee’s share and the

employer’s counterpart shall increase to two hundred pesos

(P200) each from the current one hundred pesos (P100). This

135
follows the adjustment in the maximum monthly compensation to

be used in computing the required two percent (2%) employee

savings and two percent (2%) employer share for Pag-IBIG Fund

members, which shall now increase to ten thousand pesos (P10,000)

from the current five thousand pesos (P5,000).

POSITION 13th Month Pay

Staff 1 (Barista) ₱ 13,000
Staff 2 (Asst. Barista) ₱ 10,400
Total ₱ 23,400
Table 94: 13th Month Pay

The 13th-month pay is a testament to an employer's

recognition of their employees’ unwavering commitment and hard

work throughout the year. It’s a Special bonus often celebrated

during the holiday season that reflects gratitude for the

invaluable contributions made by the workforce. Calculating the

13th-month pay is a transparent process, typically based on

employee’s gross monthly salary.

DUTIES, RESPONSIBILITY AND QUALIFICATION STANDARD

The duties, responsibilities, and qualification standards

of the personnel in the organization were the following:

MANAGER/CASHIER

QUALIFICATION DUTIES AND RESPONSIBILITIES

136
 Bachelor's degree in  A manager's duties
Business Administration, include establishing a
Management, or a related vision for their teams
field. and establishing specific
 Prior experience in goals based on that
supervisory or managerial vision; ensuring that
roles. employees understand the

 Strong leadership vision and their role in

qualities, including the helping the team achieve

ability to inspire and its goals; encouraging

motivate teams. employees to contribute

to the team's success by
 Effective decision-making
offering praise and
and problem-solving
recognition; identifying
abilities.
obstacles and devising
 Several years of
solutions for overcoming
experience in the food and
them; and, once teams
beverage industry.
achieve their goals,
 Ability to handle
setting new ones in order
customer complaints and
to sustain productivity
resolve issues
and growth.
effectively.
 The cashier is
 Basic understanding of
responsible for the day-
financial principles,
to-day operations of the
including budgeting,
business. The cashier
forecasting, and
needs to manage cash
financial reporting.
flow, which includes
 Ability to manage cash
overseeing the production
flow, pricing, and cost
or delivery of goods and
management.
services, managing
inventory, and ensuring

137
  Proficiency in using business is running
Point of Sale (POS) smoothly.
systems.  Along with adhering to
 Competence in using store regulations and
scheduling and inventory procedures for security,
management software. inventory control, and

 Ability to process credit customer service, he or

card transactions and she also makes sure that

handle electronic all sales are

payments. appropriately recorded in

the point-of-sale system
 Commitment to learning
and handles customer
about the coffee shop’s
inquiries and complaints
products, including
in a professional manner.
different types of
coffee, beverages, and
food items.
 Staying updated with new
menu items and
promotions.

Table 95: Manager’s Qualification, Duties and Responsibilities

BARISTA

QUALIFICATION DUTIES AND RESPONSIBILITIES

 Must have 3 years’  Take orders, prepare
experience in food & drinks, and serve clients
beverage, hospitality or promptly. They also
retail industry. sanitize and disinfect
 Excellent communication their workspaces, dining
skills. rooms, and tools.

138
 Ability to work well  Brewing and serving
under pressure with high specialty coffee and
customer traffic. Taking espresso-based drinks,
initiative and working maintaining clean work
well independently. environments and
 Good food preparation equipment, extending a
skills and well organized warm welcome to
and able to prioritize customers, processing
tasks. transactions accurately,

 Prepare and serve a monitoring stock levels,

variety of coffee and collaborating with co-

espresso-based drinks to workers, and continuously

meet high-quality enhancing their craft and

standards. industry expertise.

 Ensure consistency in  Keeps the atmosphere

taste, presentation, and lively and friendly for

temperature of beverages. all the customers and

staff. It assists the
 Maintain cleanliness and
barista to make orders
organization of the
for customers.
coffee bar and equipment.
 Follow health and safety
guidelines to ensure a
clean and safe working
environment.
 Assist in monitoring and
managing inventory levels
of coffee beans, milk,
syrups, and other
supplies.

139
  Notify the manager of low
stock levels and assist
in restocking as needed.
 Flexible
Table 96: Barista’s Qualification, Duties and Responsibilities

ASSISTANT BARISTA

QUALIFICATION DUTIES AND RESPONSIBILITIES

 At least Senior High  Assisting the main
School diploma; relevant barista in making and
training is a plus. serving drinks, keeping
 Previous work experience the coffee bar clean and
as a Barista or Waiter. orderly, helping with

 Hands-on experience with inventory control,

brewing equipment. offering pleasant

customer service,
 Ability to gauge
processing transactions,
customers’ preferences.
and being familiar with
 Excellent communication
and following the shop's
skills.
policies and guidelines.
 Continuously learning
 A coffee bar attendant,
about coffee varieties,
brewing techniques, and overseas makes and serves
customer preferences to coffee and other drinks
enhance skills and
to patrons. Along with
knowledge.
 Adhering to Health and other baristas, they help
Safety Standards. take orders, prepare
 Assisting with Inventory.
drinks, and serve clients
 Customer Engagement.
promptly.

140
  They also sanitize and

disinfect their

workspaces, dining rooms,

and tools.

Table 97: Assistant Barista’s Qualification, Duties and

Responsibilities

Position Number of Personnel

Owner/Manager/Cashier 1

Staff 2

Total 3

Table 98: Number of Personnel in Sip-Licity Cafe Business

The table shows the position of the personnel in the

business and the required number of each personnel.

LEGAL REQUIREMENTS

Sip-Licity Cafe is required to register with different

legal authorities and pay corresponding fees for the said

registration. Thus, presented below are the lists of permits,

licenses, and registration expenses that the proposed business

will incur.

Department of Trade and The core objective of the

Industry (DTI) Department of Trade and

Industry (DTI) is to boost

141
 economic development by

promoting business, trade,

and industry through policies

that encourage investment,

job creation, innovation,

competitiveness, and fair-

trade practices.

Bureau of To ensure tax compliance and

Internal to be allowed to start

Revenue (BIR) business operations in the

first place, businesses need

to be

registered with the BIR.

MAYOR’S PERMIT It is official permission

from the local government,

obtained in fulfilling

business requirements that

allow the business to operate

within a specific area.

POLICE CLEARANCE Business background checks

are essential for employees

and sensitive roles to ensure

a safe work environment and

142
 prevent criminal activities

that could pose a risk to the

company or clients.

BARANGAY CLEARANCE A business must have a

barangay permit as it

signifies local

authorization, checks zoning

rules and ensures safety,

making sure that the business

follows the regulations.

Registering with Employers need to make sure

the SSS, employees have SSS, Pag-IBIG,

Phil Health, and and Phil Health due to the

Pag-IBIG Fund reason that these will help

them with retirement savings

and healthcare costs.

Sanitary Permit Official document issued by

the Department of Public

Health and Social Services

authorizing the

establishment to operate its

business.

Table 99: Illustrates the Legal Requirements for Expenses

143
 Sip-Licity Cafe conforms with all applicable legal

standards. When starting the company. The project's supporters

have consulted a representative about legal problems from Jaen,

Nueva Ecija City Hall's Business Permit and License department.

The representative provides an application for a business permit

and license, which must be completed along with other procedures

for the business to be legally recognized.

PROCESS OF LEGAL REQUIREMENTS

To register a business name at the Department of Trade and

Industry (DTI):

1. Visit DTI

2. Provide personal information

3. Select your business’ industry

4. Choose a unique business name (e.g., Sip-Licity Cafe)

5. Search if a business name is available or has passed the

criteria

6. Once the proposed name is passed, fill-in other required

Information

7. Pay registration fee

8. Acquire the DTI Certificate of Registration (COR)

144
To register a business with the Bureau of Internal Revenue (BIR):

1. Fill up the BIR Form 1901 – Application for registration for

sole proprietorship

2. Prepare the list of requirements as follows:

- Valid Government ID with name/address/birthdate or PRC ID

(if professional)

- Filled up and paid BIR Form 0605 – Annual Registration Fee of

P500.00

- Prepare the sample format of the receipts and/or invoices

you will use for sales

- DTI Certificate of Registration, if you will use a “Sip-Licity

Cafe”

3. Once you have completed all the requirement, submit to the

Regional District Office (RDO) where your business is located

4. Register your book of accounts and receipts/invoices

5. Claim your BIR Form 2023 – Certificate of Registration (COR)

To register your business in the Mayor’s Office:

1. Go to the municipal office where your business is located to

secure and fill-out the application form

145
2. Submit your completed application form together with the

following:

- Certificate of Business Registration from DTI

- Barangay Clearance Certificate

- Two (2) valid IDs

3. Pay the Mayor’s Permit Fee

4. Claim your Mayor’s Business Permit and Licenses

To register your business with Police Clearance:

1. Two pieces 2×2 ID photo.

2. Original and photocopy of barangay clearance.

3. Original copy of community tax certificate (CTC)

4. Valid ID with your current address.

5. Police clearance fee.

To register your business with Barangay:

1. Go to the barangay where your business is located to secure

and fill out the application form.

2. Submit your completed application form together with the

following:

- Certificate of Business Registration from DTI

146
- Two (2) valid government IDs

To register sanitary permit:

Most local government units’ direct applicants to each

office they need to visit. Once you reach the designated

department, here are the standard steps for processing your

certification.

Step 1: Complete the application form and submit it to the

Sanitation Office.

Step 2: Pay the accompanying fee.

- PHP300.00

Step 3: Submit all the sanitary permit requirements. A designated

officer will review and record all your documents.

Step 4: Wait for the sanitation officer to provide an

establishment inspection date.

Step 5: Complete all requirements and pass the inspection.

Step 6: Receive the sanitary permit.

147
 Expenses for Permits
Department of Trade and 500
Industry (DTI)
Bureau of Internal Revenue 500
(BIR)
MAYOR’S PERMIT 1,000
POLICE CLEARANCE 150
BARANGAY CLEARANCE 50
Sanitary Permit 300
TOTAL 2,500
Table 100: Expenses Permit

STORE POLICIES

Employer and worker's responsibilities are outlined in Sip-

Licity Cafe comprehensive policies and procedures covering areas

such as transparency, confidentiality, performance expectations,

and employment opportunities.

 During scheduled shifts, arrive on time, wear your uniform,

and be prepared for work.

 Uniform policies to maintain a professional appearance.

 Inform the manager or the owner about any changes in

personal contact information.

 All employees must adhere to strict hygiene standards,

including regular handwashing, the use of hairnets, and the

proper handling of food.

 The consequences for employees when they arrive at work

late, clearly in the policy of the company that should be

148
 followed, if the employee is late at work they will get a

deduction in their salary, and if the employee was absent

the workday will not be paid.

 Training requirements for employees on safety procedures,

including the use of fire extinguishers and first aid.

 Guidelines for greeting and serving customers with courtesy

and respect.

 Do not disclose any company and customers' information or

make negative comments to outsiders.

Figure 27: Proper Work Attire

149
 CHAPTER VI

FINANCIAL ASPECT

In this chapter, the researchers address the financial

aspect, which determines the profitability level of the project.

They make and discuss major assumptions, determine the amount

of capital required to finance the project, and identify the

sources of financing. This involves careful consideration of

investment needs, operational expenses, revenue projections, and

potential risks to ensure the financial viability and success

of the project.

A. FINANCIAL ASSUMPTIONS

The revenue and expenditure forecasts for the next five

years will be based on the assumptions presented. The assumptions

will cover a period of five-year projection from 2024-2028 and

will be using a calendar year.

1. Annual Operating Days

 The official opening date and start of the business will

be January 1, 2024 --- following a calendar-year.

 The business is VAT-registered since the Sales Revenue is

expected to be greater than P3,000,000 annually within the

5-year projection. The business will be subject to 12% Value

Added Tax.

150
2. Assets

 The company will rent, and all of the equipment, furniture

& fixtures and supplies will be purchased using company's

cash. Straight-line method will be used in computing the

depreciation of noncurrent assets.

 All sales are paid by customers. No Accounts Receivable

will be recorded in the transactions. Moreover, there would

also be no receivables or provision for doubtful accounts.

 Petty Cash Fund to be established is P15,000, to be used

for small expenses, while the rest of the cash is encouraged

to be invested in the bank for safeguarding and monitoring

purposes.

 Prepaid Rent payment covers 1-month rent advance, 2-month

rental deposit.

3. Liabilities

 Utilities Payable shown in the Balance Sheet represent the

utilities expense for the last month of the accounting

period, to be paid next month.

 Statutory Contribution Payables such as SSS, Philhealth and

PAGIBIG are remitted every month. Payables shown in the

Balance Sheet represent the contributions for the last

month of the accounting period, to be paid next month.

151
  VAT Payable shown in the Balance Sheet represents the last

quarter of the current period, to be paid on the next

accounting period.

 Income Tax Payable shown in the Balance Sheet represents

the last quarter of the current period, to be paid on the

next accounting period.

4. Equity

 The owner contributed a total of P800,000 as initial

investments.

 The owner can withdraw 75% of the annual net income.

5. Revenue/Sales

 Sales in units are based on the Demand and Supply Analysis.

 Selling Price is expected to increase by 6% annually,

rounded off to the nearest peso.

 Number of customers are expected to increase by 2% annually.

 Gross sales will be computed by multiplying the number of

customer with the average check per customer.

 All sales revenue will be paid in cash. (No accounts

receivable should be assumed)

6. Expenses

 Employees will be paid twice a month, every 15th and 30th

day of each month. Salaries expense is expected to increase

by 3% every year.

152
 All supplies acquired will be paid in cash, and are

increasing by 6% every year based on PSA's 2023 annual

average inflation rate

 Depreciation is calculated based on the fixed asset cost,

less salvage value and depreciated according to its

estimated useful life. The value of an asset is reduced

uniformly over each period until it reaches its salvage

value. Salvage value will be 5% of the cost of the fixed

asset.

 Rent and Utilities Expenses (Water and Electricity) will

be paid in cash monthly, and are increasing by 6% every

year based on PSA's 2023 annual average inflation rate

 Internet in Utilities Expenses will be paid in cash monthly,

and will remain constant annually.

 Rent Expense and Utilities Expense are to be allocated

equally between production and selling & admin expenses.

 Marketing Expense will be paid in cash, and will remain

constant annually.

 Uniform Expense will be paid in cash, and is only to be

paid on the initial year of the business.

153
7. Permits and Taxes

 Permits and licenses will be paid in cash annually (except

for items that are one-time payment), and remains constant

annually.

 As per TRAIN Law, Income Tax Rate for Sole Proprietorship

businesses is based on Graduated Tax Table effective

January 2023.

B. SOURCE OF FINANCING

Since the form of the business will be a Sole

Proprietorship, the source of financing was solely provided

by the prospective owner Wendielyn De Guzman.

154
C. TOTAL PROJECTED COST

SIP-LICITY CAFE
TOTAL PROJECT COST

Fixed Investment
Office Equipment 104,415.00
Furniture and Fixtures 66,352.00
Leasehold Improvement 46,290.00
Kitchen Equipment 40,947.00
TOTAL FIXED INVESTMENT 258,004.00

Initial Working Capital

Within the First Three Months of Business
Direct Materials Purchases (3 months) 331,935.50
Salaries Expense (3 months) 70,200.00
Employees Benefits (3 months) 9,712.50
Utilities Expense (3 months) 22,200.00
Packaging Supplies (3 months) 4,749.25
Kitchen Tools and Supplies 7,053.00
Office Supplies 166.00
Sanitary Supplies 2,548.00
TOTAL INITIAL WORKING CAPITAL 448,564.25

Pre-Operating Expense
Permits and Licenses Expense 2,500.00
Uniform Expense 1,800.00
Marketing Expense 2,120.00
Prepaid Rent 15,000.00
TOTAL PRE-OPERATING EXPENSE 21,420.00

Total 727,988.25
Add: Contingency Fund 72,011.75
TOTAL PROJECT COST 800,000.00

155
D. PROJECTED INCOME STATEMENT

SIP-LICITY CAFE
Statement of Financial Performance / Income Statement
For the Years Ended December 31, 2024 - 2028
Notes 2024 2025 2026 2027 2028
Sales 1 3,011,250.00 3,256,416.07 3,537,000.00 3,828,314.29 4,158,014.29
Less: Cost of Sales 2 1,636,763.86 1,748,390.85 1,869,006.28 1,998,146.16 2,137,084.78
Gross Income 1,374,486.14 1,508,025.22 1,667,993.72 1,830,168.12 2,020,929.50

Less: Selling and Administrative Expenses

Utilities Expense 3 44,400.00 46,488.00 48,701.28 51,047.36 53,534.20
Rent Expense 4 30,000.00 31,800.00 33,708.00 35,730.00 37,872.00
Depreciation - Office Equipment 5 19,838.85 19,838.85 19,838.85 19,838.85 19,838.85
Depreciation - Furniture and Fixtures 6 12,606.88 12,606.88 12,606.88 12,606.88 12,606.88
Depreciation - Leasehold Improvement 7 4,629.00 4,629.00 4,629.00 4,629.00 4,629.00
Office Supplies Expense 8 166.00 176.25 186.75 198.00 209.75
Sanitary Supplies Expense 9 2,548.00 2,701.00 2,863.00 3,034.50 3,216.75
Permits and Licenses Expense 10 2,500.00 2,000.00 2,000.00 2,000.00 2,000.00
Marketing Expense 11 2,120.00 2,120.00 2,120.00 2,120.00 2,120.00
Uniform Expense 12 1,800.00 - - - -
Total Selling and Administrative Expenses 120,608.73 122,359.98 126,653.76 131,204.59 136,027.43

Net Income Before Tax 1,253,877.41 1,385,665.24 1,541,339.96 1,698,963.54 1,884,902.08

Less: Income Tax (Graduated Tax Table) 13 215,969.35 248,916.31 287,834.99 327,240.88 373,725.52
Net Income After Tax 1,037,908.06 1,136,748.93 1,253,504.97 1,371,722.65 1,511,176.56

E. NOTES TO INCOME STATEMENT

Note 1 - Sales 2024 2025 2026 2027 2028

Estimated Number of Customers Annually 28,105 28,718 29,344 29,984 30,638
Multiply: Average Check per Customer 120.00 127.00 135.00 143.00 152.00
VATable Sales 3,372,600.00 3,647,186.00 3,961,440.00 4,287,712.00 4,656,976.00
Less: 12% Output Tax (Inclusive) 361,350.00 390,769.93 424,440.00 459,397.71 498,961.71
Sales 3,011,250.00 3,256,416.07 3,537,000.00 3,828,314.29 4,158,014.29

Note 2 - Cost of Sales 2024 2025 2026 2027 2028

Direct Materials (Schedule 1) 1,185,483.93 1,281,753.57 1,385,834.82 1,498,371.88 1,620,049.55
Add: DIRECT LABOR (Schedule 2) 343,050.00 352,956.60 363,712.50 374,191.00 384,962.10
Add: OVERHEAD (Schedule 3) 108,229.93 113,680.68 119,458.96 125,583.29 132,073.13
Cost of Sales 1,636,763.86 1,748,390.85 1,869,006.28 1,998,146.16 2,137,084.78

156
Note 3 - Utilities Expense 2024 2025 2026 2027 2028
Monthly Electricity 5,000.00 5,300.00 5,618.00 5,955.08 6,312.38
Monthly Water 800.00 848.00 898.88 952.81 1,009.98
Monthly Internet 1,600.00 1,600.00 1,600.00 1,600.00 1,600.00
Total Monthly Utilities 7,400.00 7,748.00 8,116.88 8,507.89 8,922.37
Multiply: Number of Months in a Year 12 12 12 12 12
Total Annual Utilities 88,800.00 92,976.00 97,402.56 102,094.71 107,068.40
Multiply: Allocated to Selling and Administrative 50.00% 50.00% 50.00% 50.00% 50.00%
Utilities Expense 44,400.00 46,488.00 48,701.28 51,047.36 53,534.20

Note 4 - Rent Expense 2024 2025 2026 2027 2028

Monthly Rent 5,000.00 5,300.00 5,618.00 5,955.00 6,312.00
Multiply: Number of Months in a Year 12 12 12 12 12
Total Annual Rent 60,000.00 63,600.00 67,416.00 71,460.00 75,744.00
Multiply by: Allocated to Selling and Administrative 50.00% 50.00% 50.00% 50.00% 50.00%
Rent Expense 30,000.00 31,800.00 33,708.00 35,730.00 37,872.00

Note 5 - Depreciation - Office Equipment 2024 2025 2026 2027 2028

Air-Conditioner 17,399.00 17,399.00 17,399.00 17,399.00 17,399.00
TV 24,016.00 24,016.00 24,016.00 24,016.00 24,016.00
POS Hardware 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00
Laptop 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00
Fire Extinguisher 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00
Smoke Detector 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00
TOTAL PRICE 104,415.00 104,415.00 104,415.00 104,415.00 104,415.00
Less: Salvage Value (5,220.75) (5,220.75) (5,220.75) (5,220.75) (5,220.75)
Depreciable Amount 99,194.25 99,194.25 99,194.25 99,194.25 99,194.25
Depreciation - Office Equipment 19,838.85 19,838.85 19,838.85 19,838.85 19,838.85

157
Note 6 - Depreciation - Furniture and Fixtures 2024 2025 2026 2027 2028
Light 1,299.00 1,299.00 1,299.00 1,299.00 1,299.00
Light 975.00 975.00 975.00 975.00 975.00
Light 540.00 540.00 540.00 540.00 540.00
Light 770.00 770.00 770.00 770.00 770.00
Light 670.00 670.00 670.00 670.00 670.00
Light 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00
Table 1,380.00 1,380.00 1,380.00 1,380.00 1,380.00
Table 845.00 845.00 845.00 845.00 845.00
Table 1,588.00 1,588.00 1,588.00 1,588.00 1,588.00
Tables 7,512.00 7,512.00 7,512.00 7,512.00 7,512.00
Sofa 8,500.00 8,500.00 8,500.00 8,500.00 8,500.00
Sofa 17,000.00 17,000.00 17,000.00 17,000.00 17,000.00
Chair 1,416.00 1,416.00 1,416.00 1,416.00 1,416.00
Chair 4,760.00 4,760.00 4,760.00 4,760.00 4,760.00
Wall Plant 1,428.00 1,428.00 1,428.00 1,428.00 1,428.00
Cabinet 1,340.00 1,340.00 1,340.00 1,340.00 1,340.00
Door Mat 150.00 150.00 150.00 150.00 150.00
Clock 250.00 250.00 250.00 250.00 250.00
Cctv 5,980.00 5,980.00 5,980.00 5,980.00 5,980.00
Showcase 7,199.00 7,199.00 7,199.00 7,199.00 7,199.00
Mirror 1,550.00 1,550.00 1,550.00 1,550.00 1,550.00
TOTAL PRICE 66,352.00 66,352.00 66,352.00 66,352.00 66,352.00
Less: Salvage Value (3,317.60) (3,317.60) (3,317.60) (3,317.60) (3,317.60)
Depreciable Amount 63,034.40 63,034.40 63,034.40 63,034.40 63,034.40
Depreciation - Furniture and Fixtures 12,606.88 12,606.88 12,606.88 12,606.88 12,606.88
Note 7 - Depreciation - Leasehold Improvement 2024 2025 2026 2027 2028
MATERIALS
Wallpaper 1,210.00 1,210.00 1,210.00 1,210.00 1,210.00
Floor Tiles 7,130.00 7,130.00 7,130.00 7,130.00 7,130.00
Wall Tiles 6,200.00 6,200.00 6,200.00 6,200.00 6,200.00
Bathroom Floor Tiles 1,300.00 1,300.00 1,300.00 1,300.00 1,300.00
Faucet 450.00 450.00 450.00 450.00 450.00
Faucet 450.00 450.00 450.00 450.00 450.00
Sink 1,450.00 1,450.00 1,450.00 1,450.00 1,450.00
Sink 1,300.00 1,300.00 1,300.00 1,300.00 1,300.00
Toilet 9,500.00 9,500.00 9,500.00 9,500.00 9,500.00
Sliding Door 8,000.00 8,000.00 8,000.00 8,000.00 8,000.00
Door For Cr 2,500.00 2,500.00 2,500.00 2,500.00 2,500.00
MANPOWER
(Floor tiles, Bathroom wall tiles, and Wallpaper) 2,800.00 2,800.00 2,800.00 2,800.00 2,800.00
(Lights) 700.00 700.00 700.00 700.00 700.00
(Sink, faucet, and toilet) 700.00 700.00 700.00 700.00 700.00
(Sliding Door and Door for CR) 700.00 700.00 700.00 700.00 700.00
(Smoke Detector) 500.00 500.00 500.00 500.00 500.00
(Air-Condition) 1,400.00 1,400.00 1,400.00 1,400.00 1,400.00
TOTAL PRICE 46,290.00 46,290.00 46,290.00 46,290.00 46,290.00
Less: Salvage Value - - - - -
Depreciable Amount 46,290.00 46,290.00 46,290.00 46,290.00 46,290.00
Depreciation - Leasehold Improvement 4,629.00 4,629.00 4,629.00 4,629.00 4,629.00

158
Note 8 - Office Supplies Expense 2024 2025 2026 2027 2028
Ballpen 21.00 22.25 23.50 25.00 26.50
Notebook 20.00 21.25 22.50 23.75 25.25
Tape 40.00 42.50 45.00 47.75 50.50
Tape Dispenser 70.00 74.25 78.75 83.50 88.50
Marker 15.00 16.00 17.00 18.00 19.00
Office Supplies Expense 166.00 176.25 186.75 198.00 209.75

Note 9 - Sanitary Supplies Expense 2024 2025 2026 2027 2028

Apron 520.00 551.25 584.25 619.25 656.50
Facemask 100.00 106.00 112.25 119.00 126.25
Hairnet 180.00 190.75 202.25 214.50 227.25
Potholder 75.00 79.50 84.25 89.25 94.50
Cleaning Towel 150.00 159.00 168.50 178.50 189.25
Tissue Paper 240.00 254.50 269.75 286.00 303.25
Alcohol Sanitizer 200.00 212.00 224.75 238.25 252.50
Disposable Gloves 35.00 37.00 39.25 41.50 44.00
Dishwashing Liquid 298.00 316.00 335.00 355.00 376.25
Sponge 30.00 31.75 33.75 35.75 38.00
Dustpan And Broom 100.00 106.00 112.25 119.00 126.25
Spin Mop 200.00 212.00 224.75 238.25 252.50
Glass Wiper 84.00 89.00 94.25 100.00 106.00
Trash Bin 298.00 316.00 335.00 355.00 376.25
Garbage Bag 38.00 40.25 42.75 45.25 48.00
Sanitary Supplies Expense 2,548.00 2,701.00 2,863.00 3,034.50 3,216.75

Note 10 - Permits and Licenses Expense 2024 2025 2026 2027 2028
Department of Trade and Industry (DTI) 500.00 - - - -
Bureau of Internal Revenue (BIR) 500.00 500.00 500.00 500.00 500.00
Mayor’s Permit 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00
Police Clearance 150.00 150.00 150.00 150.00 150.00
Barangay Clearance 50.00 50.00 50.00 50.00 50.00
Sanitary Permit 300.00 300.00 300.00 300.00 300.00
Permits and Licenses Expense 2,500.00 2,000.00 2,000.00 2,000.00 2,000.00

Note 11 - Marketing Expense 2024 2025 2026 2027 2028

Tarpaulin 180.00 180.00 180.00 180.00 180.00
Pull-up Banner 500.00 500.00 500.00 500.00 500.00
Loyalty Card 240.00 240.00 240.00 240.00 240.00
Tote Bag 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00
Marketing Expense 2,120.00 2,120.00 2,120.00 2,120.00 2,120.00

Note 12 - Uniform Expense 2024 2025 2026 2027 2028

Cream Polo Shirt 750.00 0.00 0.00 0.00 0.00
Black Pants 1,050.00 0.00 0.00 0.00 0.00
Uniform Expense 1,800.00 - - - -

159
Note 13 - Income Tax Expense 2024 2025 2026 2027 2028
Net Income Before Tax 1,253,877.41 1,385,665.24 1,541,339.96 1,698,963.54 1,884,902.08
Less: Minimum of Excess Over 800,000.00 800,000.00 800,000.00 800,000.00 800,000.00
Difference 453,877.41 585,665.24 741,339.96 898,963.54 1,084,902.08
Multiply: Percentage Bracket 25.00% 25.00% 25.00% 25.00% 25.00%
Running Balance 113,469.35 146,416.31 185,334.99 224,740.88 271,225.52
Add: Minimum Tax 102,500.00 102,500.00 102,500.00 102,500.00 102,500.00
Income Tax Expense 215,969.35 248,916.31 287,834.99 327,240.88 373,725.52

F. DIRECT MATERIAL PURCHASES

Schedule 1 - Direct Materials Purchases 2024 2025 2026 2027 2028

Coffee Beans 10,150.00 10,974.25 11,865.25 12,828.75 13,870.50
Milk 4,000.00 4,324.75 4,676.00 5,055.75 5,466.25
Caramel Syrup 5,335.00 5,768.25 6,236.75 6,743.25 7,290.75
Vanilla Syrup 2,425.00 2,622.00 2,835.00 3,065.25 3,314.25
Chocolate Syrup 1,940.00 2,097.50 2,267.75 2,452.00 2,651.00
Honey 640.00 692.00 748.25 809.00 874.75
Whipped Cream 7,440.00 8,044.25 8,697.50 9,403.75 10,167.25
Matcha 1,200.00 1,297.50 1,402.75 1,516.75 1,640.00
Red Velvet Crumbles 660.00 713.50 771.50 834.25 902.00
Orange Powder 460.00 497.25 537.75 581.50 628.75
Kosher Salt 435.00 470.25 508.50 549.75 594.50
Sugar 360.00 389.25 420.75 455.00 492.00
Cheese Powder 299.00 323.25 349.50 378.00 408.75
Barbeque Powder 299.00 323.25 349.50 378.00 408.75
Cocoa Powder 2,280.00 2,465.25 2,665.50 2,882.00 3,116.00
Strawberry 480.00 519.00 561.25 606.75 656.00
Yakult 225.00 243.25 263.00 284.25 307.25
Vanilla Extract 2,200.00 2,378.75 2,572.00 2,780.75 3,006.50
Caramel Drizzle 2,100.00 2,270.50 2,454.75 2,654.00 2,869.50
Spaghetti Pasta 560.00 605.50 654.75 708.00 765.50
Elbow Macaroni 848.00 916.75 991.25 1,071.75 1,158.75
Lasagna Pasta 720.00 778.50 841.75 910.00 984.00
Egg 220.00 237.75 257.00 277.75 300.25
Annatto Seeds 279.00 301.75 326.25 352.75 381.50
Garlic 45.00 48.75 52.75 57.00 61.75
Onion 55.00 59.50 64.25 69.50 75.25
Mushroom 114.00 123.25 133.25 144.00 155.75
Stalk Scallion 30.00 32.50 35.25 38.00 41.00
Tomato 35.00 37.75 40.75 44.00 47.50
Tomato Sauce 240.00 259.50 280.50 303.25 327.75
Spaghetti Sauce 252.00 272.50 294.75 318.75 344.75
Iodized Salt 30.00 32.50 35.25 38.00 41.00
Salt 60.00 64.75 70.00 75.75 82.00
Pepper 81.00 87.50 94.50 102.25 110.50
Chili 15.00 16.25 17.50 19.00 20.50
Cheese 1,224.00 1,323.50 1,431.00 1,547.25 1,673.00
All-Purpose Cream 840.00 908.25 982.00 1,061.75 1,148.00
Ham 120.00 129.75 140.25 151.75 164.00
Bacon 175.00 189.25 204.50 221.00 239.00
Bacon Bits 175.00 189.25 204.50 221.00 239.00

160
Ground Beef 980.00 1,059.50 1,145.50 1,238.50 1,339.00
Potato Fries 345.00 373.00 403.25 436.00 471.50
Nachos Chips 296.00 320.00 346.00 374.00 404.25
Oil 400.00 432.50 467.50 505.50 546.50
Cost of Raw Materials every 2 weeks 51,067.00 55,214.00 59,697.50 64,545.25 69,786.75
Multiply: Number of Frequency in a Year 26 26 26 26 26
VATable Purchases 1,327,742.00 1,435,564.00 1,552,135.00 1,678,176.50 1,814,455.50
Less: 12% Input Tax (Inclusive) 142,258.07 153,810.43 166,300.18 179,804.63 194,405.95
Direct Materials Purchases 1,185,483.93 1,281,753.57 1,385,834.82 1,498,371.88 1,620,049.55

G. COMPENSATION EXPENSE

Schedule 2 - Direct Labor 2024 2025 2026 2027 2028

Annual Salaries Expense 280,800.00 289,224.00 297,900.00 306,840.00 316,044.00
13th Month Pay 23,400.00 24,102.00 24,825.00 25,570.00 26,337.00
SSS and EC Premiums Expense - ER Share 27,030.00 27,600.00 28,740.00 29,310.00 29,880.00
PAGIBIG Premiums Expense - ER Share 4,800.00 4,800.00 4,800.00 4,800.00 4,800.00
Philhealth Premiums Expense - ER Share 7,020.00 7,230.60 7,447.50 7,671.00 7,901.10
Direct Labor 343,050.00 352,956.60 363,712.50 374,191.00 384,962.10

H. TOTAL OVERHEAD

Schedule 3 - Total Overhead 2024 2025 2026 2027 2028

Utilities Expense allocated for Production
Monthly Electricity 5,000.00 5,300.00 5,618.00 5,955.08 6,312.38
Monthly Water 800.00 848.00 898.88 952.81 1,009.98
Monthly Internet 1,600.00 1,600.00 1,600.00 1,600.00 1,600.00
Total Monthly Utilities 7,400.00 7,748.00 8,116.88 8,507.89 8,922.37
Multiply: Number of Months in a Year 12 12 12 12 12
Total Annual Utilities 88,800.00 92,976.00 97,402.56 102,094.71 107,068.40
Multiply: Allocated to Production 50.00% 50.00% 50.00% 50.00% 50.00%
Utilities Expense allocated for Production 44,400.00 46,488.00 48,701.28 51,047.36 53,534.20

Rent Expense allocated for Production

Monthly Rent 5,000.00 5,300.00 5,618.00 5,955.00 6,312.00
Multiply: Number of Months in a Year 12 12 12 12 12
Total Annual Rent 60,000.00 63,600.00 67,416.00 71,460.00 75,744.00
Multiply by: Allocated to Production 50.00% 50.00% 50.00% 50.00% 50.00%
Rent Expense allocated for Production 30,000.00 31,800.00 33,708.00 35,730.00 37,872.00

161
Store Packaging Supplies Expense
Coffee Cups 1,622.00 1,719.25 1,822.50 1,931.75 2,047.75
Coffee Cup 10,230.00 10,843.75 11,494.50 12,184.25 12,915.25
Take Out Box 833.00 883.00 936.00 992.25 1,051.75
Take Out Slot Holder 4,800.00 5,088.00 5,393.25 5,716.75 6,059.75
Paper Straw 1,512.00 1,602.75 1,699.00 1,801.00 1,909.00
Store Packaging Supplies Expense 18,997.00 20,136.75 21,345.25 22,626.00 23,983.50

Kitchen Tools and Supplies Expense

Knife 150.00 159.00 168.50 178.50 189.25
Wooden Spatula 180.00 190.75 202.25 214.50 227.25
Chopping Board 170.00 180.25 191.00 202.50 214.75
Tray 900.00 954.00 1,011.25 1,072.00 1,136.25
Pitcher 354.00 375.25 397.75 421.50 446.75
Drinking Glasses 400.00 424.00 449.50 476.50 505.00
Measuring Spoon 120.00 127.25 135.00 143.00 151.50
Milk Frother 155.00 164.25 174.00 184.50 195.50
Liquid Stainless Stirrer 42.00 44.50 47.25 50.00 53.00
Syrup Pumps 1,300.00 1,378.00 1,460.75 1,548.50 1,641.50
Cup Holder 400.00 424.00 449.50 476.50 505.00
Espresso Glass Cup Wooden Handle 67.00 71.00 75.25 79.75 84.50
Scissor 60.00 63.50 67.25 71.25 75.50
Can Opener 96.00 101.75 107.75 114.25 121.00
Frying Pan 1,699.00 1,801.00 1,909.00 2,023.50 2,145.00
Tong 160.00 169.50 179.75 190.50 202.00
Spoon And Fork 300.00 318.00 337.00 357.25 378.75
Plate 320.00 339.25 359.50 381.00 403.75
Strainer 180.00 190.75 202.25 214.50 227.25
Kitchen Tools and Supplies Expense 7,053.00 7,476.00 7,924.50 8,400.00 8,903.50

Depreciation - Kitchen Equipment

Espresso Machine 12,855.00 12,855.00 12,855.00 12,855.00 12,855.00
Coffee Bean Grinder 2,690.00 2,690.00 2,690.00 2,690.00 2,690.00
Oven 3,480.00 3,480.00 3,480.00 3,480.00 3,480.00
Electric Deep Fryer 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00
Portable Ice Maker Machine 4,200.00 4,200.00 4,200.00 4,200.00 4,200.00
Refrigerator 12,798.00 12,798.00 12,798.00 12,798.00 12,798.00
Water Dispenser 2,298.00 2,298.00 2,298.00 2,298.00 2,298.00
Induction Cooker 1,426.00 1,426.00 1,426.00 1,426.00 1,426.00
TOTAL PRICE 40,947.00 40,947.00 40,947.00 40,947.00 40,947.00
Less: Salvage Value (2,047.35) (2,047.35) (2,047.35) (2,047.35) (2,047.35)
Depreciable Amount 38,899.65 38,899.65 38,899.65 38,899.65 38,899.65
Depreciation - Kitchen Equipment 7,779.93 7,779.93 7,779.93 7,779.93 7,779.93

Utilities Expense allocated for Production 44,400.00 46,488.00 48,701.28 51,047.36 53,534.20
Rent Expense allocated for Production 30,000.00 31,800.00 33,708.00 35,730.00 37,872.00
Store Packaging Supplies Expense 18,997.00 20,136.75 21,345.25 22,626.00 23,983.50
Kitchen Tools and Supplies Expense 7,053.00 7,476.00 7,924.50 8,400.00 8,903.50
Depreciation - Kitchen Equipment 7,779.93 7,779.93 7,779.93 7,779.93 7,779.93
Total Overhead 108,229.93 113,680.68 119,458.96 125,583.29 132,073.13

162
I. PROJECTED BALANCE SHEET

SIP-LICITY CAFE
Statement Of Financial Position / Balance Sheet
December 31, 2024 - 2028

Notes Pre-Operating 2024 2025 2026 2027 2028

ASSETS
Current Assets:
Cash 14 526,996.00 958,204.04 1,299,964.36 1,673,893.77 2,077,184.14 2,518,600.01
Prepaid Rent 15 15,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00
Total Current Assets 541,996.00 968,204.04 1,309,964.36 1,683,893.77 2,087,184.14 2,528,600.01
Noncurrent Assets:
Office Equipment (Net) 16 104,415.00 84,576.15 64,737.30 44,898.45 25,059.60 5,220.75
Furniture and Fixtures (Net) 17 66,352.00 53,745.12 41,138.24 28,531.36 15,924.48 3,317.60
Leasehold Improvement (Net) 18 46,290.00 41,661.00 37,032.00 32,403.00 27,774.00 23,145.00
Kitchen Equipment (Net) 19 40,947.00 33,167.07 25,387.14 17,607.21 9,827.28 2,047.35
Total Non-current Assets 258,004.00 213,149.34 168,294.68 123,440.02 78,585.36 33,730.70
Total Assets 800,000.00 1,181,353.38 1,478,259.04 1,807,333.79 2,165,769.50 2,562,330.71

LIABILITIES AND EQUITY

Liabilities
Current Liabilities:
Utilities Payable 20 - 7,400.00 7,748.00 8,116.88 8,507.89 8,922.37
SSS and EC Premiums Payable 21 - 3,310.00 3,380.00 3,520.00 3,590.00 3,660.00
Philhealth Premiums Payable 22 - 1,170.00 1,205.10 1,241.25 1,278.50 1,316.85
PAG-IBIG Premiums Payable 23 - 800.00 800.00 800.00 800.00 800.00
VAT Payable 24 - 54,772.98 59,239.88 64,534.96 69,898.27 76,138.94
Income Tax Payable 25 - 53,992.34 62,229.08 71,958.75 81,810.22 93,431.38
Total Liabilities - 121,445.32 134,602.05 150,171.83 165,884.89 184,269.54
Owner's Equity
De Guzman, Capital 800,000.00 1,059,908.06 1,343,656.99 1,657,161.96 1,999,884.61 2,378,061.17
Total Owner's Equity 800,000.00 1,059,908.06 1,343,656.99 1,657,161.96 1,999,884.61 2,378,061.17

Total Liabilities and Equity 800,000.00 1,181,353.38 1,478,259.04 1,807,333.79 2,165,769.50 2,562,330.71

J. NOTES TO BALANCE SHEET

Note 14 - Cash 2024 2025 2026 2027 2028

Cash in Bank 943,204.04 1,284,964.36 1,658,893.77 2,062,184.14 2,503,600.01
Petty Cash 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00
Cash 958,204.04 1,299,964.36 1,673,893.77 2,077,184.14 2,518,600.01

Note 15 - Prepaid Rent Pre-Operating 2024 - 2028

1-month advance 5,000.00 -
2-month deposit 10,000.00 10,000.00
Prepaid Rent 15,000.00 10,000.00

163
Note 16 - Office Equipment (Net) 2024 2025 2026 2027 2028
Air-Conditioner 17,399.00 17,399.00 17,399.00 17,399.00 17,399.00
TV 24,016.00 24,016.00 24,016.00 24,016.00 24,016.00
POS Hardware 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00
Laptop 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00
Fire Extinguisher 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00
Smoke Detector 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00
TOTAL PRICE 104,415.00 104,415.00 104,415.00 104,415.00 104,415.00
Less: Accumulated Depreciation - 19,838.85 39,677.70 59,516.55 79,355.40
Less: Current Year's Depreciation 19,838.85 19,838.85 19,838.85 19,838.85 19,838.85
Office Equipment (Net) 84,576.15 64,737.30 44,898.45 25,059.60 5,220.75

Note 17 - Furniture and Fixtures (Net) 2024 2025 2026 2027 2028
Light 1,299.00 1,299.00 1,299.00 1,299.00 1,299.00
Light 975.00 975.00 975.00 975.00 975.00
Light 540.00 540.00 540.00 540.00 540.00
Light 770.00 770.00 770.00 770.00 770.00
Light 670.00 670.00 670.00 670.00 670.00
Light 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00
Table 1,380.00 1,380.00 1,380.00 1,380.00 1,380.00
Table 845.00 845.00 845.00 845.00 845.00
Table 1,588.00 1,588.00 1,588.00 1,588.00 1,588.00
Tables 7,512.00 7,512.00 7,512.00 7,512.00 7,512.00
Sofa 8,500.00 8,500.00 8,500.00 8,500.00 8,500.00
Sofa 17,000.00 17,000.00 17,000.00 17,000.00 17,000.00
Chair 1,416.00 1,416.00 1,416.00 1,416.00 1,416.00
Chair 4,760.00 4,760.00 4,760.00 4,760.00 4,760.00
Wall Plant 1,428.00 1,428.00 1,428.00 1,428.00 1,428.00
Cabinet 1,340.00 1,340.00 1,340.00 1,340.00 1,340.00
Door Mat 150.00 150.00 150.00 150.00 150.00
Clock 250.00 250.00 250.00 250.00 250.00
Cctv 5,980.00 5,980.00 5,980.00 5,980.00 5,980.00
Showcase 7,199.00 7,199.00 7,199.00 7,199.00 7,199.00
Mirror 1,550.00 1,550.00 1,550.00 1,550.00 1,550.00
TOTAL PRICE 66,352.00 66,352.00 66,352.00 66,352.00 66,352.00
Less: Accumulated Depreciation - 12,606.88 25,213.76 37,820.64 50,427.52
Less: Current Year's Depreciation 12,606.88 12,606.88 12,606.88 12,606.88 12,606.88
Furniture and Fixtures (Net) 53,745.12 41,138.24 28,531.36 15,924.48 3,317.60

164
Note 18 - Leasehold Improvement (Net) 2024 2025 2026 2027 2028
MATERIALS
Wallpaper 1,210.00 1,210.00 1,210.00 1,210.00 1,210.00
Floor Tiles 7,130.00 7,130.00 7,130.00 7,130.00 7,130.00
Wall Tiles 6,200.00 6,200.00 6,200.00 6,200.00 6,200.00
Bathroom Floor Tiles 1,300.00 1,300.00 1,300.00 1,300.00 1,300.00
Faucet 450.00 450.00 450.00 450.00 450.00
Faucet 450.00 450.00 450.00 450.00 450.00
Sink 1,450.00 1,450.00 1,450.00 1,450.00 1,450.00
Sink 1,300.00 1,300.00 1,300.00 1,300.00 1,300.00
Toilet 9,500.00 9,500.00 9,500.00 9,500.00 9,500.00
Sliding Door 8,000.00 8,000.00 8,000.00 8,000.00 8,000.00
Door For Cr 2,500.00 2,500.00 2,500.00 2,500.00 2,500.00
MANPOWER - - - - -
(Floor tiles, Bathroom wall tiles, and
2,800.00 2,800.00 2,800.00 2,800.00 2,800.00
Wallpaper)
(Lights) 700.00 700.00 700.00 700.00 700.00
(Sink, faucet, and toilet) 700.00 700.00 700.00 700.00 700.00
(Sliding Door and Door for CR) 700.00 700.00 700.00 700.00 700.00
(Smoke Detector) 500.00 500.00 500.00 500.00 500.00
(Air-Condition) 1,400.00 1,400.00 1,400.00 1,400.00 1,400.00
TOTAL PRICE 46,290.00 46,290.00 46,290.00 46,290.00 46,290.00
Less: Accumulated Depreciation - 4,629.00 9,258.00 13,887.00 18,516.00
Less: Current Year's Depreciation 4,629.00 4,629.00 4,629.00 4,629.00 4,629.00
Leasehold Improvement (Net) 41,661.00 37,032.00 32,403.00 27,774.00 23,145.00

Note 19 - Kitchen Equipment (Net) 2024 2025 2026 2027 2028

Espresso Machine 12,855.00 12,855.00 12,855.00 12,855.00 12,855.00
Coffee Bean Grinder 2,690.00 2,690.00 2,690.00 2,690.00 2,690.00
Oven 3,480.00 3,480.00 3,480.00 3,480.00 3,480.00
Electric Deep Fryer 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00
Portable Ice Maker Machine 4,200.00 4,200.00 4,200.00 4,200.00 4,200.00
Refrigerator 12,798.00 12,798.00 12,798.00 12,798.00 12,798.00
Water Dispenser 2,298.00 2,298.00 2,298.00 2,298.00 2,298.00
Induction Cooker 1,426.00 1,426.00 1,426.00 1,426.00 1,426.00
TOTAL PRICE 40,947.00 40,947.00 40,947.00 40,947.00 40,947.00
Less: Accumulated Depreciation - 7,779.93 15,559.86 23,339.79 31,119.72
Less: Current Year's Depreciation 7,779.93 7,779.93 7,779.93 7,779.93 7,779.93
Kitchen Equipment (Net) 33,167.07 25,387.14 17,607.21 9,827.28 2,047.35

165
Note 20 - Utilities Payable 2024 2025 2026 2027 2028
Monthly Electricity 5,000.00 5,300.00 5,618.00 5,955.08 6,312.38
Monthly Water 800.00 848.00 898.88 952.81 1,009.98
Monthly Internet 1,600.00 1,600.00 1,600.00 1,600.00 1,600.00
Utilities Payable 7,400.00 7,748.00 8,116.88 8,507.89 8,922.37

Note 21 - SSS and EC Premiums Payable 2024 2025 2026 2027 2028
SSS Employee's Share (Payroll) 1,057.50 1,080.00 1,125.00 1,147.50 1,170.00
SSS Employer's Share (Payroll) 2,232.50 2,280.00 2,375.00 2,422.50 2,470.00
EC Employer's Share (Payroll) 20.00 20.00 20.00 20.00 20.00
SSS and EC Premiums Payable 3,310.00 3,380.00 3,520.00 3,590.00 3,660.00

Note 22 - Philhealth Premiums Payable 2024 2025 2026 2027 2028

Employee's Share (Payroll) 585.00 602.55 620.63 639.25 658.43
Employer's Share (Payroll) 585.00 602.55 620.63 639.25 658.43
Philhealth Premiums Payable 1,170.00 1,205.10 1,241.25 1,278.50 1,316.85

Note 23 - PAGIBIG Premiums Payable 2024 2025 2026 2027 2028

Employee's Share (Payroll) 400.00 400.00 400.00 400.00 400.00
Employer's Share (Payroll) 400.00 400.00 400.00 400.00 400.00
PAGIBIG Premiums Payable 800.00 800.00 800.00 800.00 800.00

Note 24 - Income Tax Payable 2024 2025 2026 2027 2028

Income Tax of the Current Year 215,969.35 248,916.31 287,834.99 327,240.88 373,725.52
Income Tax from Previous Year - 53,992.34 62,229.08 71,958.75 81,810.22
Income Tax to Pay 215,969.35 302,908.65 350,064.07 399,199.63 455,535.74
Less: Portion Paid
*1st to 3rd quarter of the current year (161,977.01) (186,687.23) (215,876.24) (245,430.66) (280,294.14)
*Previous Year's Balance - (53,992.34) (62,229.08) (71,958.75) (81,810.22)
Total Payment (161,977.01) (240,679.57) (278,105.32) (317,389.41) (362,104.36)
Income Tax Payable 53,992.34 62,229.08 71,958.75 81,810.22 93,431.38

166
Note 25 - VAT Payable 2024 2025 2026 2027 2028
Net Sales, inclusive of VAT 3,372,600.00 3,647,186.00 3,961,440.00 4,287,712.00 4,656,976.00
Divided by: 1.12 1.12 1.12 1.12 1.12
Sales, net of VAT 3,011,250.00 3,256,416.07 3,537,000.00 3,828,314.29 4,158,014.29
Multiply: 12% 12.00% 12.00% 12.00% 12.00% 12.00%
Output Tax from Sales 361,350.00 390,769.93 424,440.00 459,397.71 498,961.71

Direct Materials, inclusive of VAT 1,327,742.00 1,435,564.00 1,552,135.00 1,678,176.50 1,814,455.50

Divided by: 1.12 1.12 1.12 1.12 1.12
Direct Materials, net of VAT 1,185,483.93 1,281,753.57 1,385,834.82 1,498,371.88 1,620,049.55
Multiply: 12% 12.00% 12.00% 12.00% 12.00% 12.00%
Input Tax from Purchases 142,258.07 153,810.43 166,300.18 179,804.63 194,405.95

Output Tax from Sales 361,350.00 390,769.93 424,440.00 459,397.71 498,961.71

Less: Input Tax from Purchases 142,258.07 153,810.43 166,300.18 179,804.63 194,405.95
Tax due for the Year 219,091.93 236,959.50 258,139.82 279,593.09 304,555.77

Business Tax due for the Year 219,091.93 236,959.50 258,139.82 279,593.09 304,555.77
Add: Payable from Previous Period - 54,772.98 59,239.88 64,534.96 69,898.27
Tax Due to Pay 219,091.93 291,732.48 317,379.70 344,128.04 374,454.04
Less: Portion Paid
*1st to 3rd quarter of the current year (164,318.95) (177,719.63) (193,604.87) (209,694.82) (228,416.83)
*Previous Year's Balance - (54,772.98) (59,239.88) (64,534.96) (69,898.27)
Total Payment (164,318.95) (232,492.61) (252,844.74) (274,229.77) (298,315.10)
VAT Payable 54,772.98 59,239.88 64,534.96 69,898.27 76,138.94

167
K. PROJECTED CASH FLOW STATEMENT
SIP-LICITY CAFE
Statement of Cash Flows
For the Years Ended December 31, 2024 - 2028

Pre-Operating 2024 2025 2026 2027 2028

Cash Flow From Operating Activities

Received From Customers - 3,372,600.00 3,647,186.00 3,961,440.00 4,287,712.00 4,656,976.00

Payment for Office Supplies - (166.00) (176.25) (186.75) (198.00) (209.75)
Payment for Sanitary Supplies - (2,548.00) (2,701.00) (2,863.00) (3,034.50) (3,216.75)
Payment for Kitchen Tools and Supplies - (7,053.00) (7,476.00) (7,924.50) (8,400.00) (8,903.50)
Payment for Store Packaging Supplies - (18,997.00) (20,136.75) (21,345.25) (22,626.00) (23,983.50)
Payment for Uniform - (1,800.00) - - - -
Payment for Direct Materials - (1,327,742.00) (1,435,564.00) (1,552,135.00) (1,678,176.50) (1,814,455.50)
Payment for Salaries - (256,290.00) (264,233.40) (272,152.50) (280,599.00) (289,302.90)
Payment for 13th Month Pay - (23,400.00) (24,102.00) (24,825.00) (25,570.00) (26,337.00)
Payment for Utilities Expense - (81,400.00) (92,628.00) (97,033.68) (101,703.70) (106,653.92)
Payment for Rent Expense - (55,000.00) (63,600.00) (67,416.00) (71,460.00) (75,744.00)
Payment for Prepaid Rent (15,000.00) - - - - -
Payment for SSS and EC Premiums - (36,410.00) (40,490.00) (42,100.00) (43,010.00) (43,850.00)
Payment for Philhealth Premiums - (12,870.00) (14,426.10) (14,858.85) (15,304.75) (15,763.85)
Payment for PAG-IBIG Premiums - (8,800.00) (9,600.00) (9,600.00) (9,600.00) (9,600.00)
Payment for Permits and Licenses - (2,500.00) (2,000.00) (2,000.00) (2,000.00) (2,000.00)
Payment for Marketing - (2,120.00) (2,120.00) (2,120.00) (2,120.00) (2,120.00)
Payment for VAT - (164,318.95) (232,492.61) (252,844.74) (274,229.77) (298,315.10)
Income Taxes Paid - (161,977.01) (240,679.57) (278,105.32) (317,389.41) (362,104.36)
Net Cash provided (used) by Operating activities (15,000.00) 1,209,208.04 1,194,760.32 1,313,929.41 1,432,290.37 1,574,415.87

Cash Flow from Investing Activities

Cash Paid For Office Equipment (104,415.00) - - - - -

Cash Paid For Furniture and Fixtures (66,352.00) - - - - -
Cash Paid For Leasehold Improvement (46,290.00) - - - - -
Cash Paid For Kitchen Equipment (40,947.00) - - - - -
Net Cash provided (used) by Investing Activities (258,004.00) - - - - -

Cash Flow from Financing Activities

Cash Received from Capital Contribution 800,000.00 - - - - -

Cash Withdrawals for Personal Use - (778,000.00) (853,000.00) (940,000.00) (1,029,000.00) (1,133,000.00)
Net Cash provided (used) by Financing Activities 800,000.00 (778,000.00) (853,000.00) (940,000.00) (1,029,000.00) (1,133,000.00)

Increase (Decrease) in Cash 526,996.00 431,208.04 341,760.32 373,929.41 403,290.37 441,415.87

Add: Beginning Balance - 526,996.00 958,204.04 1,299,964.36 1,673,893.77 2,077,184.14
Ending Cash Balance 526,996.00 958,204.04 1,299,964.36 1,673,893.77 2,077,184.14 2,518,600.01

168
L. STATEMENT OF CHANGE OF OWNER’S EQUITY

SIP-LICITY CAFE
Statement of Changes in Owner's Equity
For the Years Ended December 31, 2024 - 2028

2024 2025 2026 2027 2028

De Guzman, Capital - Beginning 800,000.00 1,059,908.06 1,343,656.99 1,657,161.96 1,999,884.61
Add: Net Income 1,037,908.06 1,136,748.93 1,253,504.97 1,371,722.65 1,511,176.56
Running Total 1,837,908.06 2,196,656.99 2,597,161.96 3,028,884.61 3,511,061.17
Less: Cash Withdrawals (778,000.00) (853,000.00) (940,000.00) (1,029,000.00) (1,133,000.00)
De Guzman, Capital - Ending 1,059,908.06 1,343,656.99 1,657,161.96 1,999,884.61 2,378,061.17

M. DEPRECIATION SCHEDULE

LESS: ESTIMATED
DEPRECIABLE ANNUAL
ITEMS TOTAL COSTS SALVAGE USEFUL LIFE IN
AMOUNT DEPRECIATION
VALUE YEARS
Office Equipment
Air-Conditioner 17,399.00 ₱869.95 ₱ 16,529.05 5 ₱3,305.81
TV 24,016.00 ₱1,200.80 ₱ 22,815.20 5 ₱4,563.04
POS Hardware 30,000.00 ₱1,500.00 ₱ 28,500.00 5 ₱5,700.00
Laptop 30,000.00 ₱1,500.00 ₱ 28,500.00 5 ₱5,700.00
Fire Extinguisher 2,000.00 ₱100.00 ₱ 1,900.00 5 ₱380.00
Smoke Detector 1,000.00 ₱50.00 ₱ 950.00 5 ₱190.00
TOTAL 104,415.00 5,220.75 99,194.25 19,838.85

Furniture and Fixtures

Light 1,299.00 ₱64.95 ₱ 1,234.05 5 ₱246.81
Light 975.00 ₱48.75 ₱ 926.25 5 ₱185.25
Light 540.00 ₱27.00 ₱ 513.00 5 ₱102.60
Light 770.00 ₱38.50 ₱ 731.50 5 ₱146.30
Light 670.00 ₱33.50 ₱ 636.50 5 ₱127.30
Light 1,200.00 ₱60.00 ₱ 1,140.00 5 ₱228.00
Table 1,380.00 ₱69.00 ₱ 1,311.00 5 ₱262.20
Table 845.00 ₱42.25 ₱ 802.75 5 ₱160.55
Table 1,588.00 ₱79.40 ₱ 1,508.60 5 ₱301.72
Tables 7,512.00 ₱375.60 ₱ 7,136.40 5 ₱1,427.28
Sofa 8,500.00 ₱425.00 ₱ 8,075.00 5 ₱1,615.00
Sofa 17,000.00 ₱850.00 ₱ 16,150.00 5 ₱3,230.00
Chair 1,416.00 ₱70.80 ₱ 1,345.20 5 169 ₱269.04
Chair 4,760.00 ₱238.00 ₱ 4,522.00 5 ₱904.40
Wall Plant 1,428.00 ₱71.40 ₱ 1,356.60 5 ₱271.32
 Fire Extinguisher 2,000.00 ₱100.00 ₱ 1,900.00 5 ₱380.00
Smoke Detector 1,000.00 ₱50.00 ₱ 950.00 5 ₱190.00
TOTAL 104,415.00 5,220.75 99,194.25 19,838.85

Furniture and Fixtures

Light 1,299.00 ₱64.95 ₱ 1,234.05 5 ₱246.81
Light 975.00 ₱48.75 ₱ 926.25 5 ₱185.25
Light 540.00 ₱27.00 ₱ 513.00 5 ₱102.60
Light 770.00 ₱38.50 ₱ 731.50 5 ₱146.30
Light 670.00 ₱33.50 ₱ 636.50 5 ₱127.30
Light 1,200.00 ₱60.00 ₱ 1,140.00 5 ₱228.00
Table 1,380.00 ₱69.00 ₱ 1,311.00 5 ₱262.20
Table 845.00 ₱42.25 ₱ 802.75 5 ₱160.55
Table 1,588.00 ₱79.40 ₱ 1,508.60 5 ₱301.72
Tables 7,512.00 ₱375.60 ₱ 7,136.40 5 ₱1,427.28
Sofa 8,500.00 ₱425.00 ₱ 8,075.00 5 ₱1,615.00
Sofa 17,000.00 ₱850.00 ₱ 16,150.00 5 ₱3,230.00
Chair 1,416.00 ₱70.80 ₱ 1,345.20 5 ₱269.04
Chair 4,760.00 ₱238.00 ₱ 4,522.00 5 ₱904.40
Wall Plant 1,428.00 ₱71.40 ₱ 1,356.60 5 ₱271.32
Cabinet 1,340.00 ₱67.00 ₱ 1,273.00 5 ₱254.60
Door Mat 150.00 ₱7.50 ₱ 142.50 5 ₱28.50
Clock 250.00 ₱12.50 ₱ 237.50 5 ₱47.50
Cctv 5,980.00 ₱299.00 ₱ 5,681.00 5 ₱1,136.20
Showcase 7,199.00 ₱359.95 ₱ 6,839.05 5 ₱1,367.81
Mirror 1,550.00 ₱77.50 ₱ 1,472.50 5 ₱294.50
TOTAL 66,352.00 3,317.60 63,034.40 12,606.88

Leasehold Improvement
MATERIALS
Wallpaper 1,210.00 ₱0.00 ₱ 1,210.00
Floor Tiles 7,130.00 ₱0.00 ₱ 7,130.00
Wall Tiles 6,200.00 ₱0.00 ₱ 6,200.00
Bathroom Floor Tiles 1,300.00 ₱0.00 ₱ 1,300.00
Faucet 450.00 ₱0.00 ₱ 450.00
Faucet 450.00 ₱0.00 ₱ 450.00 170

Sink 1,450.00 ₱0.00 ₱ 1,450.00

Sink 1,300.00 ₱0.00 ₱ 1,300.00
 Showcase 7,199.00 ₱359.95 ₱ 6,839.05 5 ₱1,367.81
Mirror 1,550.00 ₱77.50 ₱ 1,472.50 5 ₱294.50
TOTAL 66,352.00 3,317.60 63,034.40 12,606.88

Leasehold Improvement
MATERIALS
Wallpaper 1,210.00 ₱0.00 ₱ 1,210.00
Floor Tiles 7,130.00 ₱0.00 ₱ 7,130.00
Wall Tiles 6,200.00 ₱0.00 ₱ 6,200.00
Bathroom Floor Tiles 1,300.00 ₱0.00 ₱ 1,300.00
Faucet 450.00 ₱0.00 ₱ 450.00
Faucet 450.00 ₱0.00 ₱ 450.00
Sink 1,450.00 ₱0.00 ₱ 1,450.00
Sink 1,300.00 ₱0.00 ₱ 1,300.00
Toilet 9,500.00 ₱0.00 ₱ 9,500.00
Sliding Door 8,000.00 ₱0.00 ₱ 8,000.00
Door For Cr 2,500.00 ₱0.00 ₱ 2,500.00
MANPOWER
(Floor tiles, Bathroom wall tiles, and
2,800.00 ₱0.00 ₱ 2,800.00
Wallpaper)
(Lights) 700.00 ₱0.00 ₱ 700.00
(Sink, faucet, and toilet) 700.00 ₱0.00 ₱ 700.00
(Sliding Door and Door for CR) 700.00 ₱0.00 ₱ 700.00
(Smoke Detector) 500.00 ₱0.00 ₱ 500.00
(Air-Condition) 1,400.00 ₱0.00 ₱ 1,400.00
TOTAL 46,290.00 - 46,290.00 10 4,629.00

Kitchen Equipment
Espresso Machine 12,855.00 ₱642.75 ₱ 12,212.25 5 ₱2,442.45
Coffee Bean Grinder 2,690.00 ₱134.50 ₱ 2,555.50 5 ₱511.10
Oven 3,480.00 ₱174.00 ₱ 3,306.00 5 ₱661.20
Electric Deep Fryer 1,200.00 ₱60.00 ₱ 1,140.00 5 ₱228.00
Portable Ice Maker Machine 4,200.00 ₱210.00 ₱ 3,990.00 5 ₱798.00
Refrigerator 12,798.00 ₱639.90 ₱ 12,158.10 5 ₱2,431.62
Water Dispenser 2,298.00 ₱114.90 ₱ 2,183.10 5 ₱436.62
Induction Cooker 1,426.00 ₱71.30 ₱ 1,354.70 5 ₱270.94
TOTAL ₱40,947.00 ₱2,047.35 ₱38,899.65 ₱7,779.93

171
 N. GROSS MARGIN SCHEDULE

Cost of
Cost of Raw Gross Margin
Selling Price Packaging Direct Labor Overhead Cost Total Cost per Gross Margin
PRODUCTS Materials Per Ratio Per Mark Up%
Per Unit Materials Per Cost per Unit per Unit Unit per Unit
Unit Unit
Unit
HOT COFFEE
Americano (8oz) 45.00 10.76 3.22 8.63 2.72 25.33 19.67 43.70% 77.63%
Americano (12oz) 60.00 12.72 3.80 8.63 2.72 27.87 32.13 53.54% 115.25%
Caramel Macchiato (8oz) 80.00 36.75 3.22 8.63 2.72 51.32 28.68 35.84% 55.87%
Caramel Macchiato (12oz) 95.00 43.42 3.80 8.63 2.72 58.57 36.43 38.34% 62.19%
Caramel Latte (8oz) 65.00 21.83 3.22 8.63 2.72 36.40 28.60 43.99% 78.55%
Caramel Latte (12oz) 80.00 25.79 3.80 8.63 2.72 40.94 39.06 48.82% 95.39%
Cappuccino (8oz) 55.00 19.67 3.22 8.63 2.72 34.24 20.76 37.74% 60.61%
Cappuccino (12oz) 70.00 23.25 3.80 8.63 2.72 38.40 31.60 45.14% 82.27%
ICED COFFEE
Salted Caramel (16oz) 85.00 34.75 10.15 8.63 2.72 56.25 28.75 33.82% 51.10%
Salted Caramel (20oz) 100.00 41.08 11.99 8.63 2.72 64.42 35.58 35.58% 55.22%
Caramel Macchiato (16oz) 90.00 38.85 10.15 8.63 2.72 60.35 29.65 32.94% 49.12%
Caramel Macchiato (20oz) 105.00 45.91 11.99 8.63 2.72 69.25 35.75 34.04% 51.62%
Caramel Latte (16oz) 90.00 31.38 10.15 8.63 2.72 52.88 37.12 41.24% 70.18%
Caramel Latte (20oz) 105.00 37.10 11.99 8.63 2.72 60.44 44.56 42.43% 73.71%
Mocha (16oz) 75.00 35.38 10.15 8.63 2.72 56.88 18.12 24.15% 31.85%
Mocha (20oz) 90.00 41.82 11.99 8.63 2.72 65.16 24.84 27.60% 38.11%
Cappuccino (16oz) 65.00 26.54 10.15 8.63 2.72 48.04 16.96 26.09% 35.29%
Cappuccino (20oz) 80.00 31.37 11.99 8.63 2.72 54.71 25.29 31.61% 46.21%
NON-COFFEE
Chocolate Ice (16oz) 115.00 28.31 10.15 8.63 2.72 49.81 65.19 56.68% 130.86%
Chocolate Ice (20oz) 130.00 33.46 11.99 8.63 2.72 56.80 73.20 56.30% 128.86%
Strawberry Matcha (16oz) 110.00 17.69 10.15 8.63 2.72 39.19 70.81 64.37% 180.65%
Strawberry Matcha (20oz) 125.00 20.91 11.99 8.63 2.72 44.25 80.75 64.60% 182.46%
Orange Yakult (16oz) 65.00 5.27 10.15 8.63 2.72 26.77 38.23 58.81% 142.77%
Orange Yakult (20oz) 80.00 6.23 11.99 8.63 2.72 29.57 50.43 63.03% 170.51%
Red Velvet (16oz) 100.00 24.08 10.15 8.63 2.72 45.58 54.42 54.42% 119.37%
Red Velvet (20oz) 115.00 28.46 11.99 8.63 2.72 51.80 63.20 54.95% 121.99%
PASTA
Carbonara 85.00 13.15 1.66 8.63 2.72 26.16 58.84 69.22% 224.87%
Macaroni Spaghetti 85.00 14.16 1.66 8.63 2.72 27.17 57.83 68.03% 212.80%
Beef Lasagna 95.00 20.16 1.66 8.63 2.72 33.17 61.83 65.08% 186.37%
PASTRY
Egg Pie 45.00 30.00 1.66 8.63 2.72 43.01 1.99 4.41% 4.62%
Brownies 75.00 35.00 1.66 8.63 2.72 48.01 26.99 35.98% 56.20%
Cinnamon Roll 70.00 43.00 1.66 8.63 2.72 56.01 13.99 19.98% 24.97%
SNACKS
French Fries 45.00 8.71 1.66 8.63 2.72 21.72 23.28 51.72% 107.14%
Nachos Overload 110.00 10.99 1.66 8.63 2.72 24.00 86.00 78.18% 358.26%

172
O. PAYBACK PERIOD

Payback Period
Investment to be Expected Cash Flow Balance Payback in
Year
Recovered from Operations Remaining Years
0 - (800,000.00) 800,000.00
1 800,000.00 1,209,208.04 - 0.66
2 - 1,194,760.32 - -
3 - 1,313,929.41 - -
4 - 1,432,290.37 - -
5 - 1,574,415.87 - -

Payback Period is 0.66

P. RETURN ON INVESTMENT

Return on Investment
Net Income After Divided by: Initial
Year ROI
Tax Investment
Year 1 1,037,908.06 800,000.00 129.74%
Year 2 1,136,748.93 800,000.00 142.09%
Year 3 1,253,504.97 800,000.00 156.69%
Year 4 1,371,722.65 800,000.00 171.47%
Year 5 1,511,176.56 800,000.00 188.90%
ROI FOR 5 YEARS 788.88%
Q. NET PRESENT VALUE

Net Present Value

Expected Cash Present Value
Year Present Value
Flow Factor (6%)
Year 1 1,209,208.04 0.9434 1,140,762.30
Year 2 1,194,760.32 0.8900 1,063,332.43
Year 3 1,313,929.41 0.8396 1,103,200.47
Year 4 1,432,290.37 0.7921 1,134,508.12
Year 5 1,574,415.87 0.7473 1,176,495.13
TOTAL PRESENT VALUE 5,618,298.45
LESS: INVESTMENT (800,000.00)
NET PRESENT VALUE 4,818,298.45

173
R. PROFITABILITY INDEX

Profitability Index
Expected Cash Present Value
Year Present Value
Flow Factor (6%)
Year 1 1,209,208.04 0.9434 1,140,762.30
Year 2 1,194,760.32 0.8900 1,063,332.43
Year 3 1,313,929.41 0.8396 1,103,200.47
Year 4 1,432,290.37 0.7921 1,134,508.12
Year 5 1,574,415.87 0.7473 1,176,495.13
TOTAL PRESENT VALUE 5,618,298.45
DIVIDED BY: INVESTMENT 800,000.00
PROFITABILITY INDEX 7.02

S. INTERNAL RATE OF RETURN

Internal Rate of Return

Expected Cash PV Factor
Year Present Value
Flow in 152.21%
Year 1 1,209,208.04 0.3965 479,445.81
Year 2 1,194,760.32 0.1572 187,826.90
Year 3 1,313,929.41 0.0623 81,900.69
Year 4 1,432,290.37 0.0247 35,398.52
Year 5 1,574,415.87 0.0098 15,428.08
TOTAL 800,000.00
Less: Initial Investment (800,000.00)
NPV less Initial Investment 0

Internal Rate of Return 152.21%

174
T. FINANCIAL RATIO
FINANCIAL RATIOS
Formula 2024 2025 2026 2027 2028

I. LIQUIDITY RATIOS
Current Assets 968,204.04 1,309,964.36 1,683,893.77 2,087,184.14 2,528,600.01
Divided by: Current Liabilities 121,445.32 134,602.05 150,171.83 165,884.89 184,269.54
CURRENT RATIO 7.97 9.73 11.21 12.58 13.72

Current Assets 968,204.04 1,309,964.36 1,683,893.77 2,087,184.14 2,528,600.01

Less: Current Liabilities 121,445.32 134,602.05 150,171.83 165,884.89 184,269.54
WORKING CAPITAL 846,758.72 1,175,362.31 1,533,721.94 1,921,299.25 2,344,330.47

Cash + Short Term Investments + Net

958,204.04 1,299,964.36 1,673,893.77 2,077,184.14 2,518,600.01
Receivables
Divide by: Current Liabilities 121,445.32 134,602.05 150,171.83 165,884.89 184,269.54
QUICK RATIO 7.89 9.66 11.15 12.52 13.67

U. SOLVENCY RATIO

II. LEVERAGE / SOLVENCY RATIOS

Formula 2024 2025 2026 2027 2028
Total Liabilities 121,445.32 134,602.05 150,171.83 165,884.89 184,269.54
Divide by: Total Equity 1,059,908.06 1,343,656.99 1,657,161.96 1,999,884.61 2,378,061.17
DEBT-TO-EQUITY RATIO 0.11 0.10 0.09 0.08 0.08

Total Liabilities 121,445.32 134,602.05 150,171.83 165,884.89 184,269.54

Divide by: Total Assets 1,181,353.38 1,478,259.04 1,807,333.79 2,165,769.50 2,562,330.71
DEBT RATIO 0.10 0.09 0.08 0.08 0.07

Total Equity 1,059,908.06 1,343,656.99 1,657,161.96 1,999,884.61 2,378,061.17

Divide by: Total Assets 1,181,353.38 1,478,259.04 1,807,333.79 2,165,769.50 2,562,330.71
EQUITY RATIO 0.90 0.91 0.92 0.92 0.93
V. ACTIVITY RATIO

III. EFFICIENCY / ACTIVITY RATIOS

Formula 2024 2025 2026 2027 2028
Net Sales 3,011,250.00 3,256,416.07 3,537,000.00 3,828,314.29 4,158,014.29
Divide by: Average Total Assets 1,181,353.38 1,329,806.21 1,642,796.42 1,986,551.64 2,364,050.10
TOTAL ASSETS TURNOVER
2.55 2.45 2.15 1.93 1.76
RATIO

175
W. PROFITABILITY RATIO

IV. PROFITABILITY RATIOS

Formula 2024 2025 2026 2027 2028
Gross Income 1,374,486.14 1,508,025.22 1,667,993.72 1,830,168.12 2,020,929.50
Divide by: Net Sales 3,011,250.00 3,256,416.07 3,537,000.00 3,828,314.29 4,158,014.29
GROSS PROFIT RATIO 0.46 0.46 0.47 0.48 0.49

Net Income After Tax 1,037,908.06 1,136,748.93 1,253,504.97 1,371,722.65 1,511,176.56

Divide by: Net Sales 3,011,250.00 3,256,416.07 3,537,000.00 3,828,314.29 4,158,014.29
NET PROFIT RATIO 0.34 0.35 0.35 0.36 0.36

Net Income After Tax 1,037,908.06 1,136,748.93 1,253,504.97 1,371,722.65 1,511,176.56

Divide by: Average Total Assets 1,181,353.38 1,329,806.21 1,642,796.42 1,986,551.64 2,364,050.10
RETURN ON ASSETS RATIO 0.88 0.85 0.76 0.69 0.64

Net Income After Tax 1,037,908.06 1,136,748.93 1,253,504.97 1,371,722.65 1,511,176.56

Divide by: Average Total Equity 1,059,908.06 1,201,782.52 1,500,409.47 1,828,523.28 2,188,972.89
RETURN ON EQUITY 0.98 0.95 0.84 0.75 0.69

Operating Income 1,253,877.41 1,385,665.24 1,541,339.96 1,698,963.54 1,884,902.08

Divide by: Net Sales 3,011,250.00 3,256,416.07 3,537,000.00 3,828,314.29 4,158,014.29
RETURN ON SALES 0.42 0.43 0.44 0.44 0.45

176
X. BREAKEVEN ANALYSIS

CVP/Breakeven Analysis
Year 2024 2025 2026 2027 2028
Fixed Costs
Utilities Expense (Water and Internet) 28,800.00 29,376.00 29,986.56 30,633.75 31,319.78
Rent Expense 60,000.00 63,600.00 67,416.00 71,460.00 75,744.00
Kitchen Tools and Supplies Expense 7,053.00 7,476.00 7,924.50 8,400.00 8,903.50
Depreciation - Office Equipment 19,838.85 19,838.85 19,838.85 19,838.85 19,838.85
Depreciation - Furniture and Fixtures 12,606.88 12,606.88 12,606.88 12,606.88 12,606.88
Depreciation - Leasehold Improvement 4,629.00 4,629.00 4,629.00 4,629.00 4,629.00
Depreciation - Kitchen Equipment 7,779.93 7,779.93 7,779.93 7,779.93 7,779.93
Office Supplies Expense 166.00 176.25 186.75 198.00 209.75
Sanitary Supplies Expense 2,548.00 2,701.00 2,863.00 3,034.50 3,216.75
Permits and Licenses Expense 2,500.00 2,000.00 2,000.00 2,000.00 2,000.00
Marketing Expense 2,120.00 2,120.00 2,120.00 2,120.00 2,120.00
Uniform Expense 1,800.00 - - - -
TOTAL FIXED COSTS 149,841.66 152,303.91 157,351.47 162,700.91 168,368.44

Variable Cost (Fixed Expenses removed)

Direct Material Cost Per Unit 116.80 116.80 116.80 116.80 116.80
Direct Labor Cost Per Unit 33.80 32.16 30.65 29.17 27.75
Overhead Cost Per Unit 7.78 7.63 7.48 7.33 7.19
Total Variable Cost Per Unit 158.38 156.59 154.93 153.30 151.74

Average Selling Price per Unit 296.67 296.73 298.10 298.42 299.77
Less: Total Variable Cost Per Unit 158.38 156.59 154.93 153.30 151.74
Gross Margin Per Unit 138.30 140.14 143.17 145.12 148.03

Total Selling & Administrative Expenses 149,841.66 152,303.91 157,351.47 162,700.91 168,368.44
Divided by: Gross Margin Per Unit 138.30 140.14 143.17 145.12 148.03
Break Even In Units 1,083 1,087 1,099 1,121 1,137

Break Even In Units 1,083 1,087 1,099 1,121 1,137

Multiply: Average Selling Price 296.67 296.73 298.10 298.42 299.77
Break Even In Pesos 321,439.46 322,480.40 327,635.81 334,577.07 340,957.69

Y. PAYROLL SUMMARY

Annual Gross Pay

Position
2024 2025 2026 2027 2028
Barista 156,000.00 160,680.00 165,504.00 170,472.00 175,584.00
Asst. Barista 124,800.00 128,544.00 132,396.00 136,368.00 140,460.00
ANNUAL TOTAL 280,800.00 289,224.00 297,900.00 306,840.00 316,044.00

177
 SSS Premiums (EE - Share)
Position
2024 2025 2026 2027 2028
Barista 7,020.00 7,290.00 7,560.00 7,560.00 7,830.00
Asst. Barista 5,670.00 5,670.00 5,940.00 6,210.00 6,210.00
ANNUAL TOTAL 12,690.00 12,960.00 13,500.00 13,770.00 14,040.00

PAGIBIG Premiums (EE - Share)

Position
2024 2025 2026 2027 2028
Barista 2,400.00 2,400.00 2,400.00 2,400.00 2,400.00
Asst. Barista 2,400.00 2,400.00 2,400.00 2,400.00 2,400.00
ANNUAL TOTAL 4,800.00 4,800.00 4,800.00 4,800.00 4,800.00

Philhealth Premiums (EE - Share)

Position
2024 2025 2026 2027 2028
Barista 3,900.00 4,017.00 4,137.60 4,261.80 4,389.60
Asst. Barista 3,120.00 3,213.60 3,309.90 3,409.20 3,511.50
ANNUAL TOTAL 7,020.00 7,230.60 7,447.50 7,671.00 7,901.10

Annual Net Pay (Gross Pay less Deductions)

Position
2024 2025 2026 2027 2028
Barista 142,680.00 146,973.00 151,406.40 156,250.20 160,964.40
Asst. Barista 113,610.00 117,260.40 120,746.10 124,348.80 128,338.50
ANNUAL TOTAL 256,290.00 264,233.40 272,152.50 280,599.00 289,302.90

Total Annual Compensation (Net Pay + 13th Month Pay)

Position
2024 2025 2026 2027 2028
Barista 155,680.00 160,363.00 165,198.40 170,456.20 175,596.40
Asst. Barista 124,010.00 127,972.40 131,779.10 135,712.80 140,043.50
ANNUAL TOTAL 279,690.00 288,335.40 296,977.50 306,169.00 315,639.90

178
 13th Month Pay
Position
2024 2025 2026 2027 2028
Barista 13,000.00 13,390.00 13,792.00 14,206.00 14,632.00
Asst. Barista 10,400.00 10,712.00 11,033.00 11,364.00 11,705.00
ANNUAL TOTAL 23,400.00 24,102.00 24,825.00 25,570.00 26,337.00

SSS and EC Premiums (ER - Share)

Position
2024 2025 2026 2027 2028
Barista 14,940.00 15,510.00 16,080.00 16,080.00 16,650.00
Asst. Barista 12,090.00 12,090.00 12,660.00 13,230.00 13,230.00
ANNUAL TOTAL 27,030.00 27,600.00 28,740.00 29,310.00 29,880.00

PAGIBIG Premiums (ER - Share)

Position
2024 2025 2026 2027 2028
Barista 2,400.00 2,400.00 2,400.00 2,400.00 2,400.00
Asst. Barista 2,400.00 2,400.00 2,400.00 2,400.00 2,400.00
ANNUAL TOTAL 4,800.00 4,800.00 4,800.00 4,800.00 4,800.00

Philhealth Premiums (ER - Share)

Position
2024 2025 2026 2027 2028
Barista 3,900.00 4,017.00 4,137.60 4,261.80 4,389.60
Asst. Barista 3,120.00 3,213.60 3,309.90 3,409.20 3,511.50
ANNUAL TOTAL 7,020.00 7,230.60 7,447.50 7,671.00 7,901.10

Total Employer's Share (SSS & EC + PAG IBIG + PHILHEALTH)

Position
2024 2025 2026 2027 2028
Barista 21,240.00 21,927.00 22,617.60 22,741.80 23,439.60
Asst. Barista 17,610.00 17,703.60 18,369.90 19,039.20 19,141.50
ANNUAL TOTAL 38,850.00 39,630.60 40,987.50 41,781.00 42,581.10

179
Z. PAYROLLS

2024 PAYROLL

2024 Payroll
EMPLOYEE'S SHARE
Monthly Gross Less: Less: Total Less: Annual Pay Add: 13th Total Annual
Position Less: SSS Taxable Pay Net Pay
Pay PAGIBIG PhilHealth Deductions Withholding Tax (Net Pay x 12) Month Pay Compensation
Selling and Administrative
Manager - - - - - - - - - - -
MONTHLY SUBTOTAL - - - - - - - -
ANNUAL SUBTOTAL - - - - - - - - - - -

Production (Direct Labor)

Barista 13,000.00 585.00 200.00 325.00 1,110.00 11,890.00 - 11,890.00 142,680.00 13,000.00 155,680.00
Asst. Barista 10,400.00 472.50 200.00 260.00 932.50 9,467.50 - 9,467.50 113,610.00 10,400.00 124,010.00
MONTHLY SUBTOTAL 23,400.00 1,057.50 400.00 585.00 2,042.50 21,357.50 - 21,357.50
ANNUAL SUBTOTAL 280,800.00 12,690.00 4,800.00 7,020.00 24,510.00 256,290.00 - 256,290.00 256,290.00 23,400.00 279,690.00

MONTHLY TOTAL 23,400.00 1,057.50 400.00 585.00 2,042.50 21,357.50 - 21,357.50

ANNUAL TOTAL 280,800.00 12,690.00 4,800.00 7,020.00 24,510.00 256,290.00 - 256,290.00 256,290.00 23,400.00 279,690.00

EMPLOYER'S SHARE
Position SSS EC PAG-IBIG Phil Health Total
Selling and Administrative
Manager - - - - -
MONTHLY SUBTOTAL - - - - -
ANNUAL SUBTOTAL - - - - -

Production (Direct Labor)

Barista 1,235.00 10.00 200.00 325.00 1,770.00
Asst. Barista 997.50 10.00 200.00 260.00 1,467.50
MONTHLY SUBTOTAL 2,232.50 20.00 400.00 585.00 3,237.50
ANNUAL SUBTOTAL 26,790.00 240.00 4,800.00 7,020.00 38,850.00

MONTHLY TOTAL 2,232.50 20.00 400.00 585.00 3,237.50

ANNUAL TOTAL 26,790.00 240.00 4,800.00 7,020.00 38,850.00

Selling and
Total Salaries Direct Labor 2024
Administrative
Salaries Expense - 280,800.00 280,800.00
Employer's Contributions - 38,850.00 38,850.00
13th Month Pay - 23,400.00 23,400.00
Annual Total - 343,050.00 343,050.00

180
 Monthly Gross Less: Employee's Contributions
Position Net Pay
Pay SSS PAGIBIG PhilHealth
Barista 13,000.00 585.00 200.00 325.00 11,890.00
Asst. Barista 10,400.00 472.50 200.00 260.00 9,467.50
MONTHLY TOTAL 23,400.00 1,057.50 400.00 585.00 21,357.50
ANNUAL TOTAL 280,800.00 12,690.00 4,800.00 7,020.00 256,290.00

Employer's Contributions
Position Total
SSS EC PAG-IBIG Phil Health
Barista 1,235.00 10.00 200.00 325.00 1,770.00
Asst. Barista 997.50 10.00 200.00 260.00 1,467.50
MONTHLY TOTAL 2,232.50 20.00 400.00 585.00 3,237.50
ANNUAL TOTAL 26,790.00 240.00 4,800.00 7,020.00 38,850.00

2025 PAYROLL

2025 Payroll
EMPLOYEE'S SHARE
Monthly Gross Less: Less: Total Less: Annual Pay Add: 13th Total Annual
Position Less: SSS Taxable Pay Net Pay
Pay PAGIBIG PhilHealth Deductions Withholding Tax (Net Pay x 12) Month Pay Compensation
Selling and Administrative
Manager - - - - - - - - - - -
MONTHLY SUBTOTAL - - - - - - - -
ANNUAL SUBTOTAL - - - - - - - - - - -

Production (Direct Labor)

Barista 13,390.00 607.50 200.00 334.75 1,142.25 12,247.75 - 12,247.75 146,973.00 13,390.00 160,363.00
Asst. Barista 10,712.00 472.50 200.00 267.80 940.30 9,771.70 - 9,771.70 117,260.40 10,712.00 127,972.40
MONTHLY SUBTOTAL 24,102.00 1,080.00 400.00 602.55 2,082.55 22,019.45 - 22,019.45
ANNUAL SUBTOTAL 289,224.00 12,960.00 4,800.00 7,230.60 24,990.60 264,233.40 - 264,233.40 264,233.40 24,102.00 288,335.40

MONTHLY TOTAL 24,102.00 1,080.00 400.00 602.55 2,082.55 22,019.45 - 22,019.45

ANNUAL TOTAL 289,224.00 12,960.00 4,800.00 7,230.60 24,990.60 264,233.40 - 264,233.40 264,233.40 24,102.00 288,335.40

EMPLOYER'S SHARE
Position SSS EC PAG-IBIG Phil Health Total
Selling and Administrative
Manager - - - - -
MONTHLY SUBTOTAL - - - - -
ANNUAL SUBTOTAL - - - - -

Production (Direct Labor)

Barista 1,282.50 10.00 200.00 334.75 1,827.25
Asst. Barista 997.50 10.00 200.00 267.80 1,475.30
MONTHLY SUBTOTAL 2,280.00 20.00 400.00 602.55 3,302.55
ANNUAL SUBTOTAL 27,360.00 240.00 4,800.00 7,230.60 39,630.60

MONTHLY TOTAL 2,280.00 20.00 400.00 602.55 3,302.55

ANNUAL TOTAL 27,360.00 240.00 4,800.00 7,230.60 39,630.60

181
 Selling and
Total Salaries Direct Labor 2025
Administrative
Salaries Expense - 289,224.00 289,224.00
Employer's Contributions - 39,630.60 39,630.60
13th Month Pay - 24,102.00 24,102.00
Annual Total - 352,956.60 352,956.60

Monthly Gross Less: Employee's Contributions

Position Net Pay
Pay SSS PAGIBIG PhilHealth
Barista 13,390.00 607.50 200.00 334.75 12,247.75
Asst. Barista 10,712.00 472.50 200.00 267.80 9,771.70
MONTHLY TOTAL 24,102.00 1,080.00 400.00 602.55 22,019.45
ANNUAL TOTAL 289,224.00 12,960.00 4,800.00 7,230.60 264,233.40

Employer's Contributions
Position Total
SSS EC PAG-IBIG Phil Health
Barista 1,282.50 10.00 200.00 334.75 1,827.25
Asst. Barista 997.50 10.00 200.00 267.80 1,475.30
MONTHLY TOTAL 2,280.00 20.00 400.00 602.55 3,302.55
ANNUAL TOTAL 27,360.00 240.00 4,800.00 7,230.60 39,630.60

2026 PAYROLL

2026 Payroll
EMPLOYEE'S SHARE
Monthly Gross Less: Less: Total Less: Annual Pay Add: 13th Total Annual
Position Less: SSS Taxable Pay Net Pay
Pay PAGIBIG PhilHealth Deductions Withholding Tax (Net Pay x 12) Month Pay Compensation
Selling and Administrative
Manager - - - - - - - - - - -
MONTHLY SUBTOTAL - - - - - - - -
ANNUAL SUBTOTAL - - - - - - - - - - -

Production (Direct Labor)

Barista 13,792.00 630.00 200.00 344.80 1,174.80 12,617.20 - 12,617.20 151,406.40 13,792.00 165,198.40
Asst. Barista 11,033.00 495.00 200.00 275.83 970.83 10,062.18 - 10,062.18 120,746.10 11,033.00 131,779.10
MONTHLY SUBTOTAL 24,825.00 1,125.00 400.00 620.63 2,145.63 22,679.38 - 22,679.38
ANNUAL SUBTOTAL 297,900.00 13,500.00 4,800.00 7,447.50 25,747.50 272,152.50 - 272,152.50 272,152.50 24,825.00 296,977.50

MONTHLY TOTAL 24,825.00 1,125.00 400.00 620.63 2,145.63 22,679.38 - 22,679.38

ANNUAL TOTAL 297,900.00 13,500.00 4,800.00 7,447.50 25,747.50 272,152.50 - 272,152.50 272,152.50 24,825.00 296,977.50

182
 EMPLOYER'S SHARE
Position SSS EC PAG-IBIG Phil Health Total
Selling and Administrative
Manager - - - - -
MONTHLY SUBTOTAL - - - - -
ANNUAL SUBTOTAL - - - - -

Production (Direct Labor)

Barista 1,330.00
Selling and 10.00 200.00 344.80 1,884.80
Total Salaries
Asst. Barista 1,045.00 Direct Labor
10.00 200.00 2027275.83 1,530.83
Administrative
MONTHLY SUBTOTAL
Salaries Expense 2,375.00 - 20.00 400.00
320,820.00 620.63
320,820.00 3,415.63
ANNUAL SUBTOTAL 28,500.00 240.00 4,800.00 7,447.50 40,987.50
Employer's Contributions - 43,840.50 43,840.50
13th Month Pay
MONTHLY TOTAL 2,375.00 - 20.00 26,735.00
400.00 26,735.00
620.63 3,415.63
Annual
ANNUALTotal
TOTAL 28,500.00 -240.00 391,395.50
4,800.00 391,395.50
7,447.50 40,987.50

Selling and
Total Salaries Direct Labor 2026
Administrative
Salaries Expense - 297,900.00 297,900.00
Employer's Contributions - 40,987.50 40,987.50
13th Month Pay - 24,825.00 24,825.00
Annual Total - 363,712.50 363,712.50

Monthly Gross Less: Employee's Contributions

Position Net Pay
Pay SSS PAGIBIG PhilHealth
Barista 13,792.00 630.00 200.00 344.80 12,617.20
Asst. Barista 11,033.00 495.00 200.00 275.83 10,062.18
MONTHLY TOTAL 24,825.00 1,125.00 400.00 620.63 22,679.38
ANNUAL TOTAL 297,900.00 13,500.00 4,800.00 7,447.50 272,152.50

Employer's Contributions
Position Total
SSS EC PAG-IBIG Phil Health
Barista 1,330.00 10.00 200.00 344.80 1,884.80
Asst. Barista 1,045.00 10.00 200.00 275.83 1,530.83
MONTHLY TOTAL 2,375.00 20.00 400.00 620.63 3,415.63
ANNUAL TOTAL 28,500.00 240.00 4,800.00 7,447.50 40,987.50

183
 2027 PAYROLL
2027 Payroll
EMPLOYEE'S SHARE
Monthly Gross Less: Less: Total Less: Annual Pay Add: 13th Total Annual
Position Less: SSS Taxable Pay Net Pay
Pay PAGIBIG PhilHealth Deductions Withholding Tax (Net Pay x 12) Month Pay Compensation
Selling and Administrative
Manager - - - - - - - - - - -
MONTHLY SUBTOTAL - - - - - - - -
ANNUAL SUBTOTAL - - - - - - - - - - -

Production (Direct Labor)

Barista 14,206.00 630.00 200.00 355.15 1,185.15 13,020.85 - 13,020.85 156,250.20 14,206.00 170,456.20
Asst. Barista 11,364.00 517.50 200.00 284.10 1,001.60 10,362.40 - 10,362.40 124,348.80 11,364.00 135,712.80
MONTHLY SUBTOTAL 25,570.00 1,147.50 400.00 639.25 2,186.75 23,383.25 - 23,383.25
ANNUAL SUBTOTAL 306,840.00 13,770.00 4,800.00 7,671.00 26,241.00 280,599.00 - 280,599.00 280,599.00 25,570.00 306,169.00

MONTHLY TOTAL 25,570.00 1,147.50 400.00 639.25 2,186.75 23,383.25 - 23,383.25

ANNUAL TOTAL 306,840.00 13,770.00 4,800.00 7,671.00 26,241.00 280,599.00 - 280,599.00 280,599.00 25,570.00 306,169.00

EMPLOYER'S SHARE
Position SSS EC PAG-IBIG Phil Health Total
Selling and Administrative
Manager - - - - -
MONTHLY SUBTOTAL - - - - -
ANNUAL SUBTOTAL - - - - -

Production (Direct Labor)

Barista 1,330.00 10.00 200.00 355.15 1,895.15
Asst. Barista 1,092.50 10.00 200.00 284.10 1,586.60
MONTHLY SUBTOTAL 2,422.50 20.00 400.00 639.25 3,481.75
ANNUAL SUBTOTAL 29,070.00 240.00 4,800.00 7,671.00 41,781.00

MONTHLY TOTAL 2,422.50 20.00 400.00 639.25 3,481.75

ANNUAL TOTAL 29,070.00 240.00 4,800.00 7,671.00 41,781.00

Selling and
Total Salaries Direct Labor 2027
Administrative
Salaries Expense - 306,840.00 306,840.00
Employer's Contributions - 41,781.00 41,781.00
13th Month Pay - 25,570.00 25,570.00
Annual Total - 374,191.00 374,191.00

Monthly Gross Less: Employee's Contributions

Position Net Pay
Pay SSS PAGIBIG PhilHealth
Barista 14,206.00 630.00 200.00 355.15 13,020.85
Asst. Barista 11,364.00 517.50 200.00 284.10 10,362.40
MONTHLY TOTAL 25,570.00 1,147.50 400.00 639.25 23,383.25
ANNUAL TOTAL 306,840.00 13,770.00 4,800.00 7,671.00 280,599.00
184
 Employer's Contributions
Position Total
SSS EC PAG-IBIG Phil Health
Barista 1,330.00 10.00 200.00 355.15 1,895.15
Asst. Barista 1,092.50 10.00 200.00 284.10 1,586.60
MONTHLY TOTAL 2,422.50 20.00 400.00 639.25 3,481.75
ANNUAL TOTAL 29,070.00 240.00 4,800.00 7,671.00 41,781.00

2028 PAYROLL

2028 Payroll
EMPLOYEE'S SHARE
Monthly Gross Less: Less: Total Less: Annual Pay Add: 13th Total Annual
Position Less: SSS Taxable Pay Net Pay
Pay PAGIBIG PhilHealth Deductions Withholding Tax (Net Pay x 12) Month Pay Compensation
Selling and Administrative
Manager - - - - - - - - - - -
MONTHLY SUBTOTAL - - - - - - - -
ANNUAL SUBTOTAL - - - - - - - - - - -

Production (Direct Labor)

Barista 14,632.00 652.50 200.00 365.80 1,218.30 13,413.70 - 13,413.70 160,964.40 14,632.00 175,596.40
Asst. Barista 11,705.00 517.50 200.00 292.63 1,010.13 10,694.88 - 10,694.88 128,338.50 11,705.00 140,043.50
MONTHLY SUBTOTAL 26,337.00 1,170.00 400.00 658.43 2,228.43 24,108.58 - 24,108.58
ANNUAL SUBTOTAL 316,044.00 14,040.00 4,800.00 7,901.10 26,741.10 289,302.90 - 289,302.90 289,302.90 26,337.00 315,639.90

MONTHLY TOTAL 26,337.00 1,170.00 400.00 658.43 2,228.43 24,108.58 - 24,108.58

ANNUAL TOTAL 316,044.00 14,040.00 4,800.00 7,901.10 26,741.10 289,302.90 - 289,302.90 289,302.90 26,337.00 315,639.90

EMPLOYER'S SHARE
Position SSS EC PAG-IBIG Phil Health Total
Selling and Administrative
Manager - - - - -
MONTHLY SUBTOTAL - - - - -
ANNUAL SUBTOTAL - - - - -

Production (Direct Labor)

Barista 1,377.50 10.00 200.00 365.80 1,953.30
Asst. Barista 1,092.50 10.00 200.00 292.63 1,595.13
MONTHLY SUBTOTAL 2,470.00 20.00 400.00 658.43 3,548.43
ANNUAL SUBTOTAL 29,640.00 240.00 4,800.00 7,901.10 42,581.10

MONTHLY TOTAL 2,470.00 20.00 400.00 658.43 3,548.43

ANNUAL TOTAL 29,640.00 240.00 4,800.00 7,901.10 42,581.10

185
 Selling and
Total Salaries Direct Labor 2028
Administrative
Salaries Expense - 316,044.00 316,044.00
Employer's Contributions - 42,581.10 42,581.10
13th Month Pay - 26,337.00 26,337.00
Annual Total - 384,962.10 384,962.10

Monthly Gross Less: Employee's Contributions

Position Net Pay
Pay SSS PAGIBIG PhilHealth
Barista 14,632.00 652.50 200.00 365.80 13,413.70
Asst. Barista 11,705.00 517.50 200.00 292.63 10,694.88
MONTHLY TOTAL 26,337.00 1,170.00 400.00 658.43 24,108.58
ANNUAL TOTAL 316,044.00 14,040.00 4,800.00 7,901.10 289,302.90

Employer's Contributions
Position Total
SSS EC PAG-IBIG Phil Health
Barista 1,377.50 10.00 200.00 365.80 1,953.30
Asst. Barista 1,092.50 10.00 200.00 292.63 1,595.13
MONTHLY TOTAL 2,470.00 20.00 400.00 658.43 3,548.43
ANNUAL TOTAL 29,640.00 240.00 4,800.00 7,901.10 42,581.10

186
 CHAPTER VII

SOCIO-ECONOMIC ASPECT

This chapter demonstrates how the study would affect and

how it would benefit society. Socio-economics the internal

employee, external consumer, government, and community.

INTERNAL CUSTOMER- Employees who work in the business will be

given training and skill development opportunities to enhance

the employees’ professional growth and employability. Sip-licity

Cafe would be given compensation based on their specific work

and would also receive benefits and incentives.

EXTERNAL CUSTOMER- Once Sip-licity Cafe is established, it will

be able to provide customers with access to high-quality products

at affordable prices. It will also provide convenience and a

satisfying experience for customers.

GOVERNMENT- Sip-licity Cafe may raise taxes for the

government, as businesses can benefit from government taxation

to fund public-service infrastructure.

COMMUNITY- Businesses will contribute to the community by

providing jobs and generating revenues. Generally, this leads

to healthy levels of employment here in Jaen, Nueva Ecija.

187
 CHAPTER VII

CONCLUSIONS AND RECOMMENDATIONS

CONCLUSION

Based on the results of the study, the following conclusions

are drawn:

1. According to the data, the majority of respondents are very

interested in trying the products offered at the Sip-licity

Cafe. This implies that there is a potential market for these

products in the areas of Barangay Dampulan, Ocampo-Rivera,

San Roque, San Vicente and Santo Tomas South, Jaen, Nueva

Ecija which are prepared to buy them at certain prices.

2. The proposed business appears to be accessible and convenient,

because of its location which lies on the way.

3. The business operates as a sole proprietorship, making it

easy to manage and less paperwork.

4. The proposed project can contribute to the social and economic

development of the Jaen, Nueva Ecija Community.

5. In terms of finances, the business will generate a high return

on investment; that is to say, it will be profitable.

188
RECOMMENDATION

1. The researchers recommend that the same study should be

carried out by future researchers, due to the profitability

of the business.

2. The researchers recommend that future entrepreneurs choose

sole proprietorship as their business organization because it

retains full control of the business activities and is easy

to access, which makes them an ideal choice for owners who

prioritize independence.

3. To be able to cope with and accommodate more customers, the

researchers recommend that future researchers locate their

business in a spacious place.

4. Make sure that the details about the price of materials,

equipment, furniture, and other expenses are accurate to

determine whether the proposed business is feasible or not.

5. The researchers recommend an expansion of the menu. Increase

the number of drinks and foods for customers to try to keep

them coming to the shop since new items on the menu can appeal

to customers and broaden their choices when they buy.

189
 SURVEY QUESTIONNAIRE ON A FEASIBILITY STUDY OF ESTABLISHING A

SIP-LICITY CAFE IN BRGY. OCAMPO-RIVERA, JAEN, NUEVA ECIJA

I. Demographic Profile

NAME(Optional):

AGE: □ 16-20 years old □ 31-35 years old

□ 21-25 years old □ 36-40 years old
□ 26-30 years old □ 41 years old and above

LOCATION: □ Brgy. Dampulan □ Brgy. San Vicente

□ Brgy. Ocampo-Rivera □ Brgy. Santo Tomas South

□ Brgy. San Roque

Direction: Put a check (✔) on the box for the choice of your
answer to the following questions:
1. Do you go to a coffee shop?

□ YES □ NO

If your answer is No, proceed to number 14.

If your answer is Yes, proceed to number 2.
2. How much are you willing to spend on a coffee shop?

□ 45-70 □ 96-120
□ 71-95 □ 121-130
3. How frequently do you visit a coffee shop?

□ Once a week □ Quarterly

□ Once a month □ Semi-Annually

190
4. What variety of drinks do you prefer?

□ Iced Coffee (Americano, Caramel Macchiato, Caramel

Latte, and Cappuccino)

□ Hot Coffee (Salted Caramel, Caramel Macchiato, Caramel

Latte, Mocha, and Cappuccino)

□ Non-Coffee (Chocolate Ice, Strawberry Matcha, Orange

Yakult, and Red Velvet)

If your answer is Iced Coffee, proceed to number 3.

If your answer is Hot Coffee, proceed to number 4.
If your answer is Non-Coffee, proceed to number 5.

5. What kind of iced coffee do you prefer? (You can check more
than one)
□ Salted Caramel □ Caramel Latte □ Cappuccino

□ Caramel Macchiato □ Mocha

If done, proceed to number 6.

6. What kind of hot coffee do you prefer? (You can check more
than one)
□ Americano □ Caramel Latte
□ Caramel Macchiato □ Cappuccino
If done, proceed to number 6.

7. What kind of non-coffee do you prefer? (You can check more

than one)
□ Chocolate Ice □ Orange Yakult
□ Strawberry Matcha □ Red Velvet
If done, proceed to number 6.

8. What do you most likely to buy alongside coffee?

□ Pastry (Egg Pie, Brownies, and Cinnamon Roll)

□ Pasta (Carbonara, Macaroni Spaghetti, and Beef Lasagna)

□ Snacks (Fries and Nachos Overload)

If your answer is Pastry, proceed to number 7.

190
 If your answer is Pasta, proceed to number 8.
If your answer is Snacks, proceed to number 9.

9. What kind of pastry do you prefer? (You can check more than
one)
□ Egg Pie □ Brownies □
Cinnamon Roll
If done, proceed to number 10.

10. What kind of pasta do you prefer? (You can check more
than one)
□ Carbonara □Macaroni Spaghetti □
Beef Lasagna
If done, proceed to number 10.
11. What kind of snacks do you prefer? (You can check more
than one)

□ French Fries □ Nachos Overload

If done, proceed to number 10.

12. What would attract you to try a new coffee shop? (You can
check more than one)

□ Taste of coffee and food

□ Excellent service
□ Cleanliness and Orderliness
□ Parking
□ Other: ____________
13. Where do you usually buy coffee?

□ Bonsai Garden Cafe □ Pepito’s Kitchen Cafe

□ PILYA Coffee □ Urduja’s Café
□ Mood Cafe □ Others:______________
14. If we will establish □
Sip-licity Cafe here in Brgy.
Ocampo-Rivera, Jaen, Nueva Ecija, would you patronize it?

□ YES
□ NO
191
 INTERVIEW GUIDE QUESTIONNAIRE FOR COMPETITORS

Name of Owner:

1. What is the name of your business?

________________________
2. How many years have you been in the coffee shop industry?
______
3. What are the permits that your business has? ______________
4. What time is your opening and closing time? _______________
5. How much does your coffee usually cost?
___________________
6. How many customers do you usually have daily? _____________
7. How many employees do you have?
___________________________
8. What is the average salary of your employee? ______________
9. How much do you earn in a day? ____________________________
10. How much do you pay for electricity and water bills?
_________________________________________________________
11. Who are your most frequent customers? What age bracket are
your most frequent customers belonging to, 16-20, 21-25,
26-30, 31-35, 36-40, and 41 and above years old?
_________________________________________________________

192
 APPENDIX I

Dear Respondent,

Greetings!

We are the 3rd Year Bachelor of Science in Business

Administration Major in Marketing Management students currently

conducting a study entitled "A Feasibility Study of Establishing

Sip-licity Cafe in Brgy. Ocampo-Rivera, Jaen, Nueva Ecija".

We will highly appreciate the time you may allot us upon

conducting our survey. Your response to this letter is crucial

in providing the necessary information for our study to help us

achieve the factual result.

We would like your time to answer our questionnaire. We

assure you that all data and information will be kept

confidential, only for academic purposes. Your cooperation will

be greatly appreciated. We are hoping for your kind approval

and support regarding this undertaking. Thank you for your

consideration.

Respectfully,

Researchers

193
 APPENDIX II

May 6, 2024

Ramon Ladapan
Municipality of Jaen
Nueva Ecija

Sir,

Greetings!
Greetings, we, the third -year college students from the
Bachelor of Science in Business Administration Major in
Marketing Management at PHINMA Araullo University, are currently
conducting a business feasibility study entitled "A Feasibility
Study of Establishing Sip-Licity Cafe in Brgy. Ocampo-Rivera,
Jaen, Nueva Ecija" in partial fulfilment of the requirement for
the degree of Bachelor of Science in Business Administration
Major in Marketing Management.

In connection with this, the researchers would like to ask

your good office to provide statistical data on the population
of the barangay from 2019 to 2022. Rest assured that the data
that we gather will remain confidential and will be used for
academic purposes only. Your approval to conduct this study will
be greatly appreciated.

Thank you so much. I hope for your positive response.

Respectfully yours,

Lovely Rose P. Deleña

Researchers Representative

Nepthaly San Jose Feliciano

Feasibility Study Adviser

194
APPENDIX III

195
APPENDIX IV

196
APPENDIX V

197
 APPENDIX VI

SURVEY INTERVIEW

198
 APPENDIX VII

COMPETITORS INTERVIEW

199
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