NOTRE DAME OF DADIANGAS UNIVERSITY

Marist Avenue, General Santos City

Set the wheels in motion: A Feasibility Study on establishing Coffee

Truck Business in General Santos City.

A Feasibility Study presented to Joe Michael Jimenez, MBA

Business College, Notre Dame of Dadiangas University, General
Santos City

In partial fulfillment of the requirements for BBA 322 Feasibility

Study

Flores, Sephany P. Guerrero,

Jayshle Louise A. Tadena,
Harlan Vincent S. Tantamco,
John Vincent V.

March 2022
 Acknowledgment

The researchers would like to extend their deepest gratitude to the following whose

direct and indirect support, helped in putting the study to completion.

To the parents, who guided and supported the researcher's endeavours and for the

unending support and patience.

To the classmates and friends, who helped in inspiring each other along the way

and who shared joyous and stressful moments with the researchers.

To the respondents, who actively participated in the survey.

To Mr. Joe Michael Jimenez, MBA for showing his willingness, expertise, and

guidance in helping the researchers understand the purpose of this study before making the

business into reality.

Above all, to the Almighty God, for his unfailing grace and strength, and for giving

the researchers the wisdom they need to succeed.

The RESEARCHERS

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 TABLE OF CONTENTS

Acknowledgement ii
Table of Contents iii
List of Tables iv
List of Figures v
Chapter I 7
1.1 Name of the Firm 7
1.2 Location of the Firm 7
1.3 Brief Description of the Project 7
1.4 Project Summary 8
1.4.1 Market Feasibility 8
1.4.2 Technical Feasibility 9
1.4.3 Management Feasibility 10
1.4.4 Financial Feasibility 11
1.4.5 Socio-Economic Impact 12
Chapter II 13
2.1 The Industry 13
2.1.1 Brief Description of the Industry 13
2.1.2 Problems of the Industry 14
2.1.3 Prospects of the Industry 15
2.2 The Enterprise 15
2.2.1 Description of the Venture 16
2.2.2 Company Mission/Vision 17
2.2.3 Company Objectives 17
2.2.4 Company Seal/Logo 18
Chapter III 19
3.1 Target Market 19
3.2 Market Size and Trends 19
3.2.1 Market Share 20
3.2.2 Competition Status 22
3.3 Demand 23
3.3.1 Number of Consumers/Clients of the Product/Service 23
3.3.2 Projected Demand 23
3.4 Supply 24
3.4.1 Capacity of the Existing Players in the Industry 24
3.4.2 Projected Supply 24

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 3.5 Demand Analysis 25
3.6 Marketing Strategies/Programs 26
3.6.1 Product and Services’ Description and Use 26
3.6.2 Product Quality and Shelf Life 28
3.6.3 Product Style and Features 29
3.6.4 Product Packaging and Labeling 29
3.6.5 Pricing Strategies 31
3.6.6 Promotion Strategies 32
3.6.7 Placement Distribution Strategies 33
3.6.8 Distribution Channel 34
3.6.9 Warehousing and Storage 34
3.6.10 Launch Marketing Strategies 34
3.6.11 Customer Support Strategies 35
3.7 Major Players in the Industry 35
3.8 Key Success Factors 36
Chapter IV 38
4.1 Product/Service 38
4.1.1 Description 38
4.1.2 Production/Service Process 39
4.2 Production/ Service Schedule 39
4.3 Production Needs 40
4.3.1 Raw Materials 40
4.3.2 Machinery and Equipment 41
4.3.3 Facilities and Amenities 42
4.4 Location Criteria 43
4.5 Plant Location (Vicinity Map) 44
4.6 Plant Size and Layout 46
4.7 Utilities 46
4.8 Waste Disposal Management 47
4.9 Timeline of Event (Gantt Chart) 47
Chapter V 50
5.1 Form of Organization 50
5.2 Organizational Structure 51
5.3 Personnel Qualifications 51
5.4 Personnel Duties and Responsibilities 55
5.5 Personnel Salary Structure 57
5.6 Registration Requirements/Government Roles 58
Chapter VI 61
6.1 Total Project Cost 61
6.2 Sources of Financing 63

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 6.3 Financial Assumptions 63
6.4 Financial Statements 64
6.4.1 Projected Income Statements 64
6.4.2 Projected Cash Flow Statements 64
6.4.3 Projected Balance Sheets 65
6.5 Financial Statement Analysis 65
6.5.1 Liquidity Ratios 65
6.5.2 Profitability Ratios 66
6.5.3 Solvency Ratios 67
6.5.4 Activity Ratios 67
6.5.5 Payback Period 67
6.6 Schedules of Accounts 68
Chapter VII 71
7.1 Contribution to the Philippine Economy 71
7.2 Corporate Social Responsibilities 72
7.3 Environmental Initiatives 72
Chapter VIII 74
8.1 External Risks 74
8.2 Internal Risks 75
8.3 Contingency Plan 76
8.4 Exit Strategies 77
Chapter IX 79
BIBLIOGRAPHY 79
APPENDICES 82
APPENDIX A.1 LETTER FOR THE RESPONDENTS 82
APPENDIX A.2 SUPPLIER AGREEMENT 83
APPENDIX 1.3 PARTNER’S AGREEMENT 84
Curriculum Vitae 86

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 List of Tables
Tables Page

1 Projected Demand of the Product 23

2 Projected Supply of the Product 24

3 List of Product Rates 31

4 General Schedule 40

5 Working Schedule 40

6 Machinery and Equipment 41

7 Timeline of Event (Gantt Chart) 48

8 Salary Structure 58

9 Project Cost 61

10 Projected Income Statements 64

11 Projected Cash Flow Statement 64

12 Projected Balance Sheets 65

13 Liquidity Ratios 66

14 Profitability Ratios 66

15 Solvency Ratios 67

16 Activity Ratios 67

17 Payback Period 67

18 Contingency Plan 76

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 List of Figures
Figures Page

1 Company Logo 18

2 Market Size 20

3 Interest in Buying Coffee 21

4 Time of the Day 21

5 Frequency of Drinking 22

6 Source of Coffee 22

7 Product Packaging and Labeling 30

8 Distribution Channel 34

9 Production Process 39

10 Vicinity Map 45

11 Location Map 45

12 Plant Size and Layout 46

13 Organizational Chart 51

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 Chapter I

SUMMARY OF THE PROJECT

This chapter discusses the name of the firm, the locale of the proposed business, and a

brief description of the project. Moreover, it presents the components of the project

summary, which consists of market feasibility, technical feasibility, management feasibility,

financial feasibility, and the socio-economic impact of the proposed business.

1.1 Name of the Firm

The firm’s name communicates what the start-up is all about. The proposed business

is named The Club Keopi. It is a fellowship of coffee enthusiasts. The word 'Keopi' is a

Korean translation for coffee. It appeals not only to us but also to the kind of customers we

are trying to attract.

1.2 Location of the Firm

The Club Keopi will set its wheels in motion at the Oval Plaza, Plaza Heneral Santos,

and other streets in General Santos City, Philippines. The proposed location for the business

is considered the city's focal center during festivals, the busiest parks, a place to jog every

morning, evening walks and natters, and a breathing space for the Heneral. These locations

are suitable for The Club Keopi to serve its purpose of providing services to fuel the body

and soul of every Henerals.

1.3 Brief Description of the Project

The Club Keopi is part of the ever-growing coffee industry and coffee farmers have

grown coffee for hundreds of years. Coffee has become an integral part of us Filipinos. They

drink coffee during breakfast, afternoon, or even on special

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occasions. The most popular varieties of coffee are soluble coffee or single-serve coffee

blends. The proposed business falls under the category of the foodservice sector. This sector

serves food to people outside of their homes.

Many brick-and-mortar establishments have closed as a result of the pandemic. It

provides Club Keopi with the opportunity to create new possibilities to conduct the business

outside, in an open environment, rather than building a traditional brick-and-mortar cafe. The

Club Keopi is a coffee truck that will set its wheels in motion in the streets and parks in

General Santos City. It aims to provide high-quality coffee and other beverages at a very

affordable price.

1.4 Project Summary

This section summarizes the proposed business the market feasibility, technical

feasibility, management feasibility, financial feasibility and socio-economic impact.

1.4.1 Market Feasibility

Customers who bought this product are people who enjoy drinking coffee to fuel their

passion, relax, or consume caffeine. The business caters to all genders and religions who

wish to enjoy a unique flavour of coffee on the bustling streets of General Santos City. From

Arabica beans to Civet Coffee, the world's most costly coffee beans. According to a Kantar

Worldpanel Philippines report, Filipinos have changed from moderate to high coffee users.

Heavy drinkers buy and consume coffee goods three times per week, or 126 times per year.

In 2020, the Philippines consumed around 60-kilogram bags of coffee. This shows an

increase in coffee consumption over time. Our target market will be the

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barangays here in General Santos City which includes City Heights, Conel, Fatima,

Katangawan, Lagao, Ligaya, Mabuhay, and San Isidro which has a total population of

275,868 for our potential market. The proposed business created a survey showing that

64.3% of the population belongs to individuals aged 21-25 years old, 29.6% of the population

are from individuals aged from 15-20 years old, 2% of the population are from individuals

aged from 26-30 years old and 41-45 years old, and 1% of the population are aged 36-40

years old and 56 years old and above.

The business will be using the cost-plus pricing strategy that adds a mark-up to the

product's original unit cost to determine the final selling price. In The Club Keopi, we are

bound to add a 110% mark-up price to all our products.

As for Promotion, we will be utilizing social media, especially since today is the

time when everyone else is using social media to inform themselves as to what is happening

around the community. The company will also use standalone tarpaulins to inform customers

about our products and services.

1.4.2 Technical Feasibility

This section explains the technicalities of the proposed business. The Club Keopi will

set its wheel in motion at General Santos City's Oval Plaza, Plaza Heneral Santos, and other

streets of General Santos City. Every Monday to Saturday, from 3:00 p.m. to 10:30 p.m., the

operation will take place. The raw materials will be locally distributed from the coffee

growers in South Cotabato and Digos, Davao Region. The proposed business lists several

criteria for finding a good location to attract customers.

The flow of the production process begins with the customer's order. Then the cashier

receives the payment, takes their name, and forwards the order to the

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barista. The barista will now prepare the product. Once finished, the coffee will now be

served to the customers.

The Club Keopi measures 8.4 x 24 feet in size and will occupy 170 square feet

when it opens. The machinery, facilities, utilities, and disposal management are recognized

by the proposed business to assure that the proposed business serves its purpose by

providing quality products and services. Lastly, the proposed business also determines the

timeline of the preparation for the completion of the project.

1.4.3 Management Feasibility

The proposed business chooses partnership as its form for business ownership. It

permits the proposed business to share in the profit and loss, to have a mutual contribution,

and bring out various skills and expertise. The organizational structure of the Club keopi

includes the (1) General Manager,(1) Marketing Manager,

(1) Operations Manager,(1) Finance Manager, (2) Barista, (1) Cook and (1) Assistant Cook.

The personnel is chosen under the qualifications set by the proposed business. The

roles and responsibilities are established for the personnel to efficiently work and deliver the

quality service the proposed business offers.

The proposed business can't operate without abiding by the government's legal

requirements. There are requirements that the government required for the Club Keopi to

operate; such as the Department of Labor and Employment (DOLE) Permit, Securities and

Exchange Commission (SEC) Certificate, Local Government Unit (LGU) Business Permit,

Barangay Clearance, Bureau of Internal Revenue (BIR) Certificate of Registration, Social

Security System (SSS) Certificate, and Philippine Health Insurance Corp. (PhilHealth).

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1.4.4 Financial Feasibility

The Club Keopi is a partnership between Ms. Sephany P. Flores, Ms. Jayshle Louise

A. Guerrero, Mr. Harlan Vincent S. Tadena, and Mr. John Vincent V. Tantamco. In March

2023, the venture will commence operations. The capital of the business, Php 1,200,000.00,

is accumulated from the contribution of the general partners. Each partner will grant Php

300,000.00 to fund the initial expenses of the start-up business. The business will utilize

equity financing from the personal savings of the founders.

The total project cost is Php 1,023,553.91. It comprises the payments for raw

materials, machinery and equipment, furniture and fixtures, legal documents, and vehicles.

The project cost is further broken down into specific categories and quantified using

approximate estimates of the said product. The remaining amount of Php 176,446.09 is listed

as cash for the beginning of the fiscal year.

As per the income statement, the sales are computed as demand multiplied by the

cost of a product. The net income for year 1 is minimal since the venture is still a start-up.

It is anticipated to increase its profits after establishing itself in the market. As for the cash

flow statement, the business will stay fluid throughout the period. It allows the enterprise to

invest or expand its operations elsewhere when the opportunity presents itself. The balance

sheet shows a stable trend from the year 2023 to the year 2027 indicating that the business

possesses financial stability. The proposed business has a payback period of 2.01 years.

The Club Keopi is a financially sound business endeavour. It does not necessitate a

significant amount of capital, and the company's growth is consistent. According to the

financial statements, the company is in good shape. The proposed venture is logically

related to current and projected plans for General Santos City's

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growth and development, and it is financially self-supporting ergo its funding and

execution are recommended.

1.4.5 Socio-Economic Impact

The Philippines is currently experiencing inflation as a result of a series of lockdowns

and limits, and as a result, 64 percent of households had a member lose their employment as

a result of the increased community quarantine due to COVID-19. Club Keopi will have a

significant economic impact. The company can assist the economy to keep operating despite

the epidemic by producing jobs that let people make money. By supporting other local

businesses and paying taxes, the company can help the economy keep going.

The company will seek a long-term supply to develop strategic partnerships with its

clients, establishing relationships and an atmosphere of trust and growth by addressing the

needs and demands of its customers. The company will also ensure that the community is

involved in its plans, as the more committed and dedicated the company is to the community,

the more prospective customers it will attract and the higher the customer retention rate.

The Club Keopi will utilize a Kraft Coffee Paper Cup Holder for Takeaway, a

wooden spoon and fork for pastries and sweets, and recyclable cups with cardboard sleeves

for both hot and cold beverages as part of its environmental activities. In addition, trash cans

will be placed outside and within the store to aid in maintaining the cleanliness of the area

and to help make the city and environment greener.

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 Chapter II

THE INDUSTRY AND THE ENTERPRISE

This chapter provides a comprehensive overview of the services, the major players,

and the capacity of the industry of The Club Keopi. Also, this presents the company’s

background, company’s mission and vision, objectives, and company’s seal/logo.

2.1 The Industry

This section presents the industry's brief description in which the proposed business is

involved, the problems, and the corresponding prospects.

2.1.1 Brief Description of the Industry

Over the last five years, the coffee business in the Philippines has expanded

dramatically. Starbucks, the national leader with P2.2 billion revenue in fiscal 2005. This is a

32% increase over Fiscal 2000. Starbucks’ profits from 10,000 retail units climbed to over

P6.6 billion in 2010. (BMI Research, 2017)

In 2015, the roast coffee industry in the Philippines was worth 262.30 million USD

(at retail prices). The coffee market in the Philippines predicts to hit 1.33 billion USD (in

retail prices) by 2025, expanding at a Compound Annual Growth Rate of

13.74 percent per year from 2020 to 2025. (William & Marshal Strategy, 2020)

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2.1.2 Problems of the Industry

The Club Keopi is part of the ever-growing coffee industry. Philippine farmers have

grown coffee for hundreds of years. The country has produced robust beans for decades, with

speciality arabica production making up a tiny percentage of the local coffee industry.

However, local coffee production is decreasing. These are the following problems of the

coffee industry:

1. Climate Change. Climate change is a substantial challenge in the coffee industry.

Rising temperatures and unpredictable weather affect the height at which coffee

grows. It causes issues during the harvesting and processing of coffee. The changing

of patterns of this rainfall has led to unpredictable harvests. Coffee ripens at different

times which means that pickers may mismanage it.

2. Supply Shortages. In 2018, the demand for coffee was considerably higher than

the local supply. The Philippines, as a whole, consumed 170,000 metric tons of coffee

but produced only 35,000. According to Nicholas Matti, the country can only yield 20

percent of the total market demand for coffee annually. There is a concerning gap

between the supply and demand of our local production of coffee.

3. Labour Shortages. To produce coffee, it needs suitable workers and farmers at

every step of the process. However, local farmers are becoming older and fewer.

Seeing their struggles, children from coffee-producing families often migrate to urban

areas to find better opportunities.

4. Price Fluctuations. Local producers cannot predict pricing trends due to unstable

fluctuations in the coffee market. The biggest concern is that they will not get enough

profit in return for their hard work. That is why farmers are now

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 converting coffee plantations to banana farms following the drop in the prices of

coffee.

2.1.3 Prospects of the Industry

Coffee is consumed daily by Filipinos of all socioeconomic backgrounds. In reality,

every Filipino consumes coffee during breakfast, in the afternoon, and occasionally for social

occasions to unwind and socialize with friends. Soluble coffee or single-serve coffee mixes

are the most popular types of coffee.

Coffee consumption has soared as a result, as has demand for it. According to one

industry participant, overall demand will be 65,000 tons in the longer term, expanding at a

three percent (3%) annual average. Others put Robusta demand at 100,000 tons, with another

12,000 tons for Arabica, Liberica, and Excelsa. The expected annual growth rate for the

industrial group is 10% to 13%. (Department of Agriculture, 2019)

The Club Keopi will endeavour to become the city's favoured coffee shop, providing

high-quality coffee and the best Filipino brand of service, which will aid in the business's

success. With this, the Club Keopi aspires to broaden its product offerings and provide a

wide range of services to its customers.

2.2 The Enterprise

This section contains the description of the venture, its mission, vision statement

primary objectives, and the company’s seal/logo.

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2.2.1 Description of the Venture

The Club Keopi is a retailer of locally produced coffee beans assembled in a truck

that moves around the streets and parks in General Santos City that embraces the touch of an

industrial-chic vibe that matches yours. The pandemic has caused many brick-and-mortar

businesses to close. It creates a new opportunity for Club Keopi to set the business outside,

with an open area instead of opening a regular brick-and-mortar cafe.

We are locally brewing in the heart of General Santos City that aims to fuel the

body and soul of every Henerals to keep going in life. The Club Keopi features a wide

selection of delectable coffee, tea, fruit ades, sandwiches, pastries, and other confections. The

Club Keopi hits the road from 3:00 PM to 10:30 PM. Limited outdoor tables and chairs are

available for customers who want to experience serenity.

Setting the wheels in motion enables us to meet our audience where they are, with the

flexibility to move our location based on the interest of our consumers (employees, students,

and millennials) who want to have a nice place to unwind and destress. We made sure that

our products were at a very affordable price that ranges from Php 20.00-165.00.

The smell of the freshly brewed Arabica beans from our local distributors in South

Cotabato and Civet Coffee acquired in the Davao region will waft to their sense that beckons

to them as they pass by with us. Due to its small size, The Club Keopi can enjoy larger

margins in the form of lower overhead. We will hand-select baristas and offer salaries

comparable to other chains. In turn, the baristas will be trained to cross-sell and sell the

higher-margin products.

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 The Club Keopi has selected the partnership as its formal legal entity. This start-up

venture will be managed by Sephany P. Flores, Jayshle Louise A. Guerrero, Harlan Vincent

S. Tadena, and John Vincent V. Tantamco. It was founded in 2022 and offers affordable

products and services for customers that will surely encourage them to return on many

occasions.

2.2.2 Company Mission/Vision

This section exhibits the mission-vision statement and the objective of the company

that set direction in achieving its goal in this field of a business venture.

Mission Statement

The Club Keopi is the Premier Coffee truck in General Santos City for highly-driven

individuals earmarked for competitiveness. It aims to be the leading coffee truck in General

Santos City and Mindanao that offers excellent coffee products.

Vision Statement

The Club Keopi seeks to be the leading coffee truck in General Santos City, noted for

its high-quality coffee sourced locally across Mindanao, and set the bar for excellence in

service and the coffee industry.

2.2.3 Company Objectives

The following are Club Keopi’s objectives:

1. To serve the continually growing need of coffee shops where one can sit, sip and

relax in the City of General Santos;

2. To help micro-businesses with their local produce of coffee beans;

3. To keep the economy of General Santos City growing.

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2.2.4 Company Seal/Logo

Business Logo Design

Figure 1. Company Logo

The figure presented above presents the proposed business logo which depicts the

concept of the project.

Explanation of the Business Logo

We have made the logo very distinctive by using coffee palettes to emphasize that we

are in the coffee industry. The space between the beans stands for how we do our business: in

transit. We keep our location always on the move within the busy streets of General Santos

City. Our logo stands firmly in our tagline, "Fuelling Passion," The letter “C” was

intentionally dented to symbolize our beans, even only with the letter logos, “the club keopi”

will be distinctive to others mainly because of its unique letter “c”. It also symbolizes that our

enterprise helps keep our clients moving by fuelling their bodies and soul to keep going for

their passion.

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 Chapter III

MARKET STUDY

This chapter exemplifies the marketing study of the proposed business. It discusses

the target market, market size and trends, market share, and the competition status.

Furthermore, it explains the marketing strategies and programs including the products and

services offered, pricing strategies, promotion strategies, and distribution strategies. This

chapter contains important information regarding the purpose and essence of the study.

3.1 Target Market

The target market for The Club Keopi is the low-middle class to upper-class men and

women; specifically the Korean wave enthusiasts, students, employees, and other people

near the business’s vicinity who wanted to try and enjoy the business’ offerings.

Additionally, coffee lovers want to spend their free time in a warm and relaxing atmosphere

while savouring low-cost, high-quality beverages and pastries.

3.2 Market Size and Trends

The market size and trends refer to the total population in General Santos City and the

current status and trends in the target market. This would exemplify the actual number of

target consumers of the proposed project’s market. It projects the possible customers that

would primarily serve as the basis for possible sales and provides definite market

segmentation itself.

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 The population of the barangays nearby including Heights, Conel, Fatima,

Katangawan, Lagao, Ligaya, Mabuhay, and San Isidro are quantified. It sums up to a total

population of 275,868 for our potential market. The proposed business created a survey

showing that 64.3% of the population belongs to individuals aged 21-25 years old, 29.6% of

the population are from individuals aged from 15-20 years old, 2% of the population are from

individuals aged from 26-30 years old and 41-45 years old, and 1% of the population are

aged 36-40 years old and 56 years old and above.

Figure 2. Market Size of The Club Keopi

3.2.1 Market Share

The market share of the business is based on the population of the city. Our product

would generate profit in the busy streets of General Santos City. These markets consist of

low-middle to upper-class individuals whose expenditures are budget-driven, thus concluded

to be potential customers considering the budget-friendly price. The Club Keopi has an

estimated market share of people due to the number of coffee shops available in the city. It

equates to approximately 4.81% of the market. Furthermore, customers have different

preferences, and some would favour other existing markets in the local city that they

previously purchased.

Percentage of Market Share

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Total Population of the Market 275,868
X Interest in Buying Coffee 92.7%
X Time of the Day 32.9%
X Frequency of Drinking 40.2%
X Source of Coffee 39.2%
= 13,259 people
Market Share (13,259 / 275,868) 4.81%

Figure 3. Interest in Buying Coffee

Figure 4. Time of the Day

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 Figure 5. Frequency of Drinking

Figure 6. Source of Coffee

3.2.2 Competition Status

The Club Keopi is a competitive coffee shop in General Santos City, with a 4.81%

market share. The company is particularly advantageous since its site is movable: The Club

Keopi may be located anywhere there are a lot of people. The company is governed by coffee

enthusiasts who make coffee, which is a language that may be utilized within the company.

With this in mind, all coffee enthusiasts may joyfully converse about the field of coffee with

the various staff members. Furthermore, it is the city's only coffee shop that serves civet

coffee, which is the costliest coffee in the world.

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 The Club Keopi has a lax or low level of competition as there are almost no

businesses that are similar to it. Food trucks that serve coffee are currently not very popular

in the city, so this is a good opportunity for the business to stand out.

3.3 Demand

This section shows the number of consumers/clients of the product and service

(existing players for the past years), projected demand, and the amount of commodity that a

consumer is willing to purchase.

3.3.1 Number of Consumers/Clients of the Product/Service

The Club Keopi under the observance of the health and safety protocol of the IATF’s

Alert level 2 guidelines in General Santos City will only accommodate 70% of fully

vaccinated and unvaccinated individuals and minors who are below 18 but not younger than

9 years of age. However, limited outdoor tables and chairs for the outdoor dining with only

six (6) individuals.

3.3.2 Projected Demand

This section will provide details about the business's five-year demand projection.

Table 1. Projected Demand of the Product

Product 2023 2024 2025 2026 2027

Coffee 12960 13608 14289 15004 15755

Tea 2880 3024 3175 3334 3500

Fruit Ades 2880 3024 3175 3334 3500

Sandwiches 4320 4536 4763 5002 5252

Pasta 2880 3024 3175 3334 3500

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 Cheesecake 2880 3024 3175 3334 3500

Egg Tart 2880 3024 3175 3334 3500

Strawberry 2880 3024 3175 3334 3500

Shortcake

3.4 Supply

This section describes the capabilities of the industry's existing players, predicted

supply, as well as the number of items available to customers

3.4.1 Capacity of the Existing Players in the Industry

Despite the fact that there are many coffee shops businesses in the General Santos

City market, the capacity of the current participants in the sector, cannot meet the needs of

consumers who want to drink civet coffee at the desired location owing to a shortage of

stores that sell it, as well as the supply amount.

3.4.2 Projected Supply

Table 2. Projected Supply of the Product

PRODUCT DAILY WEEKLY MONTHLY YEARLY

Coffee 45 270 1080 12960

Tea 10 60 240 2880

Fruit ades 10 60 240 2880

Sandwiches 15 90 360 4320

Pasta 10 60 240 2880

Cheesecake 10 60 240 2880

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 Egg tart 10 60 240 2880

Strawberry shortcake 10 60 240 2880

TOTAL PRODUCTION 74 474 1896 22752

The table above shows that The Club Keopi’s capacity to produce a product daily up

to forty-five (45) cups of coffee daily, two hundred seventy cups of coffee weekly (270), one

thousand eighty (1080) cups of coffee monthly, and twelve thousand nine hundred sixty cups

(12960) of coffee yearly. The enterprise could also produce tea, fruit ades, and sandwiches

would be ten (10) daily, sixty (weekly), two hundred forty (240) monthly, and two thousand

(2880) monthly. In addition, cheesecake, egg tart, strawberry shortcake could also be sold ten

times (10) daily, sixty (60) times weekly, two hundred forty (240) times monthly, and two

thousand eight hundred eighty (2880) yearly.

3.5 Demand Analysis

The coffee truck will be located on the busy streets of General Santos City: offices,

parks, and hangout spots, which means that there will be numerous potential customers.

Having low-middle to upper-class consumers as the target customers gives the business more

chances of having more customers. Low-middle and upper-class consumers are often the

chief targets of consumer-focused enterprises because of their large size and discretionary

spending power (Low-middle-class Consumers: Values and Priorities). Based on the survey,

most people are interested in The Club Keopi, the proposed start-up business. There are no

existing coffee truck businesses in the city. Ergo, coffee shops are the major competitors of

the business. This coffee truck business will be moving from different locations to cater

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to multiple customers and garner more sales. It is made sure that it is affordable without

sacrificing the quality of the product.

3.6 Marketing Strategies/Programs

This section illustrates the proposed products and services, the product quality,

product packaging, and labeling, Pricing Strategies, Promotions Strategies,

Placement/Distribution Strategies, Launch Marketing Strategies, Customer Support

Strategies, and Customer Support Strategies

3.6.1 Product and Services’ Description and Use

The product line of the proposed business revolves around a wide selection of high-

quality coffee, tea, fruit ades, sandwiches, and pastries at a competitive price.

Products

● Beverages

○ Coffee. Coffee is one of the most popular drinks in the world and it is the

second most traded commodity in the globe. It is a beverage brewed from

roasted coffee grounds. There are different brewing methods in preparing a

coffee such as the filtration method or the roasted coffee grounds extracted

with hot water.

○ Tea. Tea is a healthy beverage made from the infusion of leaves of the

evergreen Camellia sinensis. Antioxidant, anti-inflammatory, antibacterial,

anticarcinogenic, antihypertensive, neuroprotective, cholesterol-lowering, and

thermogenic effects are all present in tea.

○ Fruit Ades. Fruit ades is a refreshing fruit drink and is a good source of

antioxidants and Vitamin C which is beneficial to the body's immune

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 system. This refreshing fruit juice is typically made from orange, lime, and

lemon that will help you keep cool during hot days.

● Bites

○ Sandwiches. A sandwich is a food item consisting of a slice of meat,

cheese, or other food placed between two portions of bread. Other varieties of

toppings and sauces would be made available.

○ Pasta. Pasta is a traditional Italian dish prepared from dough made from

wheat and water that is extruded into various forms and cooked in boiling

water.

● Desserts

○ Cheesecake. A cheesecake is a sweet or salty dish made with a thick,

creamy filling of cheese, eggs, and sugar spread over a thinner crust and

topped with sweet or salty elements.

○ Egg Tart. Egg tarts are pastries with an outer pastry crust that is filled with

egg custard. Which is often manufactured in Hong Kong, Macau, and other

parts of Asia.

○ Strawberry Shortcake. A strawberry shortcake is a popular treat consisting

of a layered cake with strawberries on top.

Services

● Outdoor dining. Outdoor dining or al fresco dining are terms used to describe an

establishment that takes eating and drinking activities outside or in an open area.

● Take-out Service. For most people, the take-out or take-away food service is a

highly convenient and popular dining option. This type of service refers to prepared

food items to be consumed away from the place and it is highly

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 favoured to young customers and employees as it meets time-service demands. Take-

out allows the business to make the food faster and avoid huddles.

● Food Delivery Service. Food delivery service is the concept of ordering food from

a shop and the business prepares the food and sends it using a driver to the customer.

The Club Keopi will utilize an online food delivery marketplace or apps such as

Foodpanda, Grab, or Maxim.

3.6.2 Product Quality and Shelf

Life Product Quality

The proposed business assures to provide the customers the quality product and

service they deserve. The Club Keopi guarantees the finest coffee beans from our local

distributors all the way from South Cotabato and Digos, Davao Region.

In response to health and safety protocols during this pandemic. Social distancing will

be highly observed for our outdoor ding and all tables, chairs, and equipment will be

sanitized.

Shelf Life

For the coffee, the arabica bean, and civet coffee beans will be stored in a cool, dry

place in an airtight container away from heat and direct sunlight to last up to 6 to 9 months if

placed in a pantry, and 2 to 3 years if put into the freezer. Ingredients for beverages like tea

and fruit flavourings will be kept in an airtight container to last up to a year.

The desserts will be placed in the refrigerator to be chilled and preserve their quality

and taste. The egg tarts will only last for 1 to 3 days in the fridge. While cheesecakes will

last for 1 to 5 days (homemade) or 5 to 7 days ( store-bought) in

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the fridge. Meanwhile, the refrigerated shelf life of the strawberry shortcake will only last to

3 to 5 days. The same goes with the bites, all ingredients will be placed in the refrigerator to

preserve their quality. Cheese defending on its variety, if refrigerated, can last up to two to

four months time or six weeks time. Ingredients like fresh tomatoes, if covered with

perforated plastic, will last up to 7 days, and ketchup, mayonnaise, mustards for the sandwich

stays good for up to six months after opening. While the deli sliced hams for the stuffings, if

refrigerated, will last to 3 to 5 days and if kept into a freezer will stay up to 2 months.

3.6.3 Product Style and Features

Our customers are served wonderful and distinctive coffee tastes by Club Keopi. Our

beans are supplied locally from coffee growers in South Cotabato all the way up to the Civet

Coffee Farmers in Digos, Davao Region. Coffee, Tea, Fruit Ades, Sandwiches, Cheesecake,

Egg Tart, and Strawberry Shortcake will be available at the establishment. While the items

will be delicious, we have made certain that they would be healthful and nutritious.

3.6.4 Product Packaging and Labeling

The business values the environment thus, biodegradable and compostable eco-

friendly packaging and labeling are picked for the take-out orders which include the

following:

● Recyclable cups with cardboard sleeves for

both hot and cold beverages.

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 ● Wooden spoon and fork for pastries and

desserts.

● Clear glass coffee cups.

● Glass plates and silverware for dine-in

orders.

● Kraft Coffee Paper Cup Holder

for Takeaway

Figure 7. Product Packaging and Labeling

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3.6.5 Pricing Strategies

The Club Keopi will be employing cost-based pricing and customer value-based

pricing strategies. It implies that the production cost will highly be taken into consideration.

A fair rate of return for effort and risk in the form of markup is also added. Considering the

price range of our competitors, The Club Keopi will add a 110% markup based on the total

cost of the product. Another factor is how much the customers are willing to pay for the

product based on the perception of the value upon observing our products first-hand. The

price range of the products is relatively affordable, ranging from Php 20.00 to Php 165.00

only.

Table 3. List of Product Rates

Product Price Rates

Beverages:

Civet Coffee Php 165.00 / serving

Regular Brewed Coffee Php 75.00 / serving

Iced Coffee Php 110.00 / serving

Cafe Latte Php 100.00 / serving

Frappe (Chocolate, Vanilla, and Php 135.00 / serving

Caramel)

Cappuccino Php 105.00 / serving

Cafe Mocha Php 120.00 / serving

Cafe Americano Php 100.00 / serving

Hot Chocolate Php 90.00 / serving

Teas Php 75.00 / serving

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 Fruit Ades Php 95.00 / serving

Bites:

Sandwich Php 50.00 / serving

Carbonara Php 95.00 / serving

Spaghetti Php 95.00 / serving

Desserts:

Cheesecake Php 115.00 / slice

Egg Tart Php 65.00 / slice

Strawberry Shortcake Php 135.00 / slice

Add-Ons

Espresso Shot Php 30.00

Caramel Drizzle Php 20.00

Chocolate Powder Php 15.00

Matcha Powder Php 25.00

Whipped Cream Php 25.00

3.6.6 Promotion Strategies

One of the most significant aspects of marketing strategies that a business should

possess is promoting its products and services. The Club Keopi will utilize several marketing

platforms:

Verbal and Non-Verbal Strategy. The Club Keopi is located in a location with

great access to people, it is where effective communication becomes a very crucial part to

regale customers in explaining the qualities of the product. The proposed

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business will execute a verbal non-verbal form of strategy. Using verbal communication

enables the message to be relayed properly as well as making sure you're getting the right

message from the customers. Non-verbal communication, on the other hand, may include

gestures or body language to engage customers. In both ways, the proposed business will

benefit from having the ability to communicate clearly.

Social Media. Social media plays an integral part in our daily lives and can reach

and interact with customers in different locations. In the business environment, social media

is the most cost-efficient to market and establish brand awareness for the products and

services the business offers.

The Club Keopi will utilize a Facebook page, as it is the leading social media network

today and an Instagram account to expand its customer engagement, attract potential

investors, and identify the trends in today’s business. These social media platforms can turn

potential customers into actual customers.

Outdoor advertising. The Club Keopi will utilize standalone Tarpaulins as it will

help the proposed business to attract prospective customers even without the use of social

media.

3.6.7 Placement Distribution Strategies

The success of new coffee shops in General Santos City has risen dramatically over

the years. The number of coffee shops in the city has increased dramatically. In line with this,

the business will be using the Indirect Distribution Channel – specifically the One-Level

Channel – which entails that the products will be coming from retailers of coffees and

pastries and selling them to the buyers.

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3.6.8 Distribution Channel

The business will be using the one-level indirect channel because the business offers

products to the people, therefore, it will be indirectly rendered to the customers.

Figure 8. Distribution Channel of the Club Keopi

3.6.9 Warehousing and Storage

All coffee beans and raw materials require appropriate temperature and relative

humidity for their storage. The machinery and equipment are kept in place inside the truck.

Perishable items and add-ons are refrigerated to preserve the quality of the products. The

warehouse is located at Zone 25, JB Guerrero Compound, Yumang Street, General Santos

City. It also serves as the parking garage of the coffee truck.

3.6.10 Launch Marketing Strategies

During the grand opening of the proposed business, The Club Keopi, would hold a

ribbon-cutting ceremony to welcome new beginnings. The business would launch its

products and services by offering free drinks for the first 10 customers on the first day of

operations. Along with this, the business will utilize penetration pricing and offer to buy two

(2) products at a lower-fixed price limited only for its launch day.

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3.6.11 Customer Support Strategies

The product and service, as well as the physical environment, all contribute to

customer service and quality. Making tangible efforts to understand the customer's needs is

an important method for determining the success and survival of the proposed business in

today's competitive environment. This strategy has the ability to make potential customers

into long-term customers.

The following are the customer support strategies:

Discount. For every P500 worth of purchases, there will be a 15% discount and

every P300 worth of purchase has a 10% discount given to the valued customer.

Feedback Form. Completing this form by the customers is one way to find out

what they have to say about the business. It will assist the business in improving and

maintaining the services that its customers enjoy.

Loyalty Program. This strategy will encourage repeat purchases from their existing

and new customers. The Club Keopi will give a stamp card to every customer's purchase and

they will receive one free drink if they can purchase 10 different beverages within a month.

The assigned barista will mark these cards, registered to their names, in every purchase of the

customers. By presenting the stamp card they can avail the free drink (any of their choice).

3.7 Major Players in the Industry

The Club Keopi, a moving Coffee Shop in the busy streets of General Santos City, is

in direct competition with the major key players of the coffee industry in the city with Jacobs

Breadnuts being in the top, followed by Cafe Amore, Cafe Santi, Workstation, Cafe Firenzo,

and Blue Coffee are the leading local industry participants in General Santos City.

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3.8 Key Success Factors

The following are the important elements that The Club Keopi will possess to

compete in its target markets and to survive in today's competitive environment.:

Customers. Customers are considered the bloodline of every business and the one

who drives the revenue. Without them, the proposed business won’t exist at all. The Club

Keopi’s success will depend on its customers as they are the main reason for our existence

and why we operate.

Good Location. Location plays an important role in the coffee truck business.

Good location visibility and accessibility help you to attract and gain more customers.

Management. The management helps the proposed business to achieve its goal and

objectives. They provide a sense of direction, better utilization of resources, and assure that

everyone is working in line with the business mission and vision.

Marketing Strategy. A good marketing strategy is a very foundation to identify

the strengths and weaknesses of the proposed business. The business would not be able to

sell without marketing efforts. The Club Keopi will utilize cost-efficient strategies to market

our product like the use of Social Media and Verbal and Non-Verbal Cues.

People. Every business is comprised of people who work for it and are considered

the most important asset that determines the business's success. The people who work for the

business are the one who executes the work to provide goods and services. Their expertise

and skills will be beneficial to the company. Therefore, the management of the proposed

business should understand their needs and provide ways to improve their performance.

Quality of Products and Services. A high-quality product is the very foundation

of customer loyalty, customer satisfaction, repeat purchases, and

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recommendation. When a product or service is top tier, even if the price is expensive,

customers will always come back. The quality of the product affects the establishment of

reputation in the customer product and helps the proposed business to avoid certain risks and

costs of replacing faulty products.

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 Chapter IV

TECHNICAL STUDY

This chapter illustrates the production process, production schedule, production

needs, location criteria, plant location, plant size, and plant layout. Furthermore, it includes

the utilities needed, waste disposal management, and the timeline of events of the proposed

venture.

4.1 Product/Service

This section presents the overall appeal of the products and services being proposed.

4.1.1 Description

The Club Keopi is a coffee truck that will be locally brewing in the Oval Plaza, Plaza

Heneral Santos, and other streets in General Santos City, Philippines. The operation will start

at 3:00 PM to 10:30 PM. Limited outdoor tables and chairs are available for customers who

want to experience serenity.

The Club Keopi will offer high-quality coffee and other non-coffee beverages such as

tea, fruit ades, sandwiches, and pastries. In line with this, Arabica coffee from our local

distributors in South Cotabato and Civet Coffee acquired in the Davao region is the main

product that businesses offer that aims to fuel the body and soul of every Henerals to keep

going in life.

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4.1.2 Production/Service Process

This section shows the process involved in making the products of the proposed venture.

Various coffee products will be served according to the preferences of the customers. The

illustration below shows the production process.

Figure 9. Production Process

4.2 Production/ Service Schedule

The number of customers that the business needs to fulfill both walk-ins and take-out

orders determines the number of products that will be produced. On the other hand, the

desserts such as cakes will be obtained straight from a supplier and will be served in the

coffee truck. The business will be open six (6) days a week – Monday to Saturday.

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 Table 4. General Schedule

Time Activity
3:00 pm to 10:30 pm Operating/ Business Hours

Table 5. Working Schedule

Time Activity
2:00 pm - 3:00 pm Attendance (Time-in) and Preparation
Time
3:00 pm Opening Time
3:00 pm -10:30 pm Working Hours
6:00 pm - 6:30 pm Break
10:30 pm - 11:00 pm Cleaning and Closing Time

4.3 Production Needs

This section shows the raw materials, machinery, and equipment necessary in the

production which ensures its quality and safety. Furthermore, it includes the different

facilities and amenities used in the production and services.

4.3.1 Raw Materials

The inputs or services to produce its finished goods are raw materials. These are

manufactured, processed, or combined to make coffee. Raw materials are outsourced locally

across the coffee growers in South Cotabato up to the Civet Coffee Farmers in Digos, Davao

Region. The following are the raw materials for The Club Keopi:

● Coffee Beans ● Whipped Cream

● Milk ● Natural Flavorings

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 ● Sugar ● Chocolate Shavings
● Syrups ● Caramel Drizzle
● Eggs ● Matcha Shavings
● Fruits ● Ice
● Preservatives ● Salt

4.3.2 Machinery and Equipment

Table 6. Machinery and Equipment of The Club Keopi

MACHINERIES AND QUANTITY AMOUNT TOTAL COST

EQUIPMENT

Funnel 1 300 300

Mixing Bowl 5 325 1,625

Measuring spoon 5 90 360

Range 1 25,000 25,000

Regular Coffee Grinder 1 3,600 3,600

Blenders 1 2,500 2,500

Hot Water Dispenser 1 1,300 1,300

Refrigerator 1 21,000 21,000

Chestnut Freezer 1 15,000 15,000

Computer System 1 21,000 20,000

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 Retail System Software 1 7,500 7,500

POS Printer 1 3,000 3,000

Espresso Tampers 3 399 1,197

Condiments Bottles 1 350 350

Cup, Lid, and Straw 2 250 500

Organizers

Coffee Equipment 2 600 1,200

Cleaners and Coffee

Pot Cleaners

Glass Storage racks 1 1,200 1,200

CCTV Camera Set 1 14,000 14,000

TOTAL COST Php 119,632

The list of machines and equipment required for The Club Keopi's functioning is shown

in the table above. These items can help to improve the quality of The Club Keopi's products,

which is one of the elements in client retention. Finally, the company will purchase 1-4

amounts of this equipment and supplies to ensure effective and smooth functioning.

4.3.3 Facilities and Amenities

The facilities and amenities are used by the proposed business to serve its

purpose. The following are the facilities and amenities of the Club Keopi:

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 Counter Area. This is where the customers can place their orders and pay for

them.

Production Area. This is where customers’ orders will be prepared in a sanitary

manner.

Preparation Area. This is where the finished products will be assembled to fulfill

customer orders. To avoid disorderly preparations, it is separated from the production area.

Dining Area. It is mainly composed of tables and chairs that are available for

customers to use for dining.

Service Bar Area. It is a portable table or counter that customers can utilize to

enjoy their food and beverages. It can be used as an additional table and chair. It is positioned

just in front of the food truck, beside the counter area.

Free Wi-Fi. For easy access to social media sites, the business will provide free Wi-

Fi for the customers.

Availability in Food Delivery Apps. The products of the business will be made

available through food delivery apps for the convenience of the customers.

4.4 Location Criteria

A good location can be a determinant of the business's long-term performance and

this factor should never be overlooked.

The following are the factors that the business should take into consideration:

Population Base. A growing population equates to greater demand for products

and services. There must be enough individuals who regularly pass or visit the area. The

proposed business will roam around the streets and parks in General

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Santos City. The Oval Plaza and the Plaza Heneral is a places where individuals, skaters,

BMX riders, dancers, and joggers coincide.

Legal Requirements of the Area. In finding a good location for the proposed

business you need to consider some legal prerequisites such as the city’s street vending

regulation, rent, and health and safety requirements.

Accessibility. Accessibility is easy to access your products and services by your

current and potential consumers referred to as accessibility. It enables the business to be

responsive and reachable to society. Therefore, the business must be easy to find.

Visibility. Visibility creates an opportunity for the proposed business to engage and

create a conversation with potential customers. The ability of the business to be exposed

opens the opportunity to influence the pattern and decision-making of the customers.

Security. The location must ensure the safety of its customers, staff, and the

business itself to avoid liabilities and be prepared to take precautions to potential risk.

Competition. The proximity of other competing establishments is another factor

that every business should take into consideration. However, if the business has something

unique or new to offer it would lessen the rising competition.

4.5 Plant Location (Vicinity Map)

This section contains information needed in which area the proposed business will be

established. The figures given below show the location and vicinity map of the proposed

business.

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Figure 10. Vicinity Map

Figure 11. Location Map

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4.6 Plant Size and Layout

This section shows the proposed layout and the size of The Club Keopi. The

illustration below presents the different allocation of areas of the business operation such as

the outside area where there are tables and chairs, the curbside dining, and the kitchen area.

The Club Keopi’s dimension is 8.4 x 24 feet and will occupy 170 square feet once it operates.

Figure 12. Plant Size and Layout

4.7 Utilities

Utilities are essential services that provide basic amenities to conduct business

operations. These are the utilities necessary in running the business:

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 1. Electricity. In making coffee, drip makers, grinders, and blenders need electricity.

The coffee truck requires electricity to power these machineries, equipment, and

lights.

2. Fuel. Our unique selling point is our coffee truck - to move from one location to

another. Gasoline lights up the engine that allows the business to execute this

purpose.

3. Water. A necessary ingredient of coffee is water. Water must be present as it also

helps maintain the cleanliness of the truck.

4. Internet Access. Some customers go to coffee shops to avail their free internet

access. A good internet connection attracts students to visit the business.

4.8 Waste Disposal Management

The Club Keopi promotes the segregation of wastes as its focal waste disposal

management. Implementing and promoting this program can lead to the three Rs - Reduce,

Reuse, and Recycle. The Club Keopi also discourages single-use plastics and employs paper

cups and bags as a take-out container. Wastes are collected every week and disposed of in the

proper landfills to maintain the cleanliness of the surroundings.

4.9 Timeline of Event (Gantt Chart)

The Gantt chart presents the proposed business pre-operational activities. The

preparation of the proposed business will serve as a roadmap for the well-ordered completion

of the project.

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 Table 7. Timeline of Events at Pre-Operating Stage

Pre-operating Activities Month

1 2 3 4 5 6 7 8 9 10 11 12
Business Plan Preparation
Formation of Business

Sourcing of Funds
Licensing of Business
Construction of the Coffee
Truck and Facilities
Acquisition of Equipment

Hiring of Employees

Job Training

Promotional Activities

The Club Keopi have allotted one month to begin the business preparation to identify

its goal, objectives, target market, business location, and the feasibility of the proposed

business. The next following month will be allotted for the formation of the business where

important documentation is filed, drafted, and signed by the proprietors. The next step that

the proposed business will take is the sourcing of funds where the owners will find their

source of capital, bank procedures to loans, prospective investors, and this will be the time to

gather up enough funds for the proposed business. A two-month allocation will be allocated

for the legal procedures for the proposed business which involves the application for the DTI,

License to operate, BIR, and FDA. During the process for the legal procedures, the proposed

business will start the construction of the coffee truck. The construction of the coffee truck

will begin while the application for the legal needs of the business is still being processed, as

well as the acquisition of necessary equipment to be built concurrently

4
with the truck’s development. After the construction of the coffee truck, the next activity

would be the hiring of the employees followed by the job training of the hired employees.

The training will include learning about the necessary skills that employees should possess,

attending self-discipline seminars, and receiving instructions regarding the restrictions in the

workplace. Lastly, before the business operates, marketing methods will be implemented in

order to popularize the business by boosting its social media profiles.

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 Chapter V
ORGANIZATION AND MANAGEMENT STUDY

This chapter explains the form of organization and organizational structure of the

proposed business. Furthermore, it identifies the personnel qualifications, personnel duties

and responsibilities, personnel salary structure, and government roles and registration

requirements present in the proposal.

5.1 Form of Organization

The proposed business has chosen partnership as its formal legal entity. The

formation was instituted by a mere agreement of the partners. In a contract of partnership,

two or more individuals contribute money, property, or industry to a common fund, with the

intention of dividing the profit among themselves (Ballada, 2015). Forming a partnership

brings out combines the knowledge and skills of the partners that will be beneficial to the

proposed business. In line with this, it provides greater financial capability and flexibility in

terms of decision-making.

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5.2 Organizational Structure

Figure 13. Organizational Chart of the Club Keopi

The organizational structure of the Club keopi presented above includes the

(1) General Manager,(1) Marketing Manager, (1) Operations Manager,(1) Finance

Manager, (2) Barista, (1) Cook and (1) Assistant Cook.

5.3 Personnel Qualifications

This section shows the qualifications each person should possess, their roles and

responsibilities, and the salary structure. A qualified worker is someone who has the

necessary skills, knowledge, and ability to execute the job's main functions. The following

are the qualifications which every employee must possess:

General Manager

● Male/Female;

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 ● 21-35 years of age;

● A college graduate of a four (4) year course in Business Administration or other

related courses in business;

● With at least one (1) year experience in food service management;

● Has the expertise in business communication and project management;

● Proficient in all Microsoft Office applications;

● Excellent leadership, management, and organizational skills;

● A holder of Professional Driver’s License and Government-issued ID

Marketing Manager

● Male/Female;21-35 years of age;

● A college graduate of a four (4) year course in Business Administration major in

Marketing Management other related courses in business;

● Excellent in both written and oral skillsHas the expertise in developing marketing

plans and campaigns;

● Can take photos and videos;

● Has the ability to deliver create ideas;Has the ability to use social media

platforms like Facebook, Instagram, Twitter, etc.; and

● A holder of Professional Driver’s License and Government-issued ID

Operations Manager

● Male/Female;

● 21-35 years of age;

● A college graduate of a four (4) year course in Business Administration or other

related courses in business;

● With at least one (1) year experience in food service management;

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 ● Has the expertise in negotiating and consultative sales skills;

● Knowledgeable on customer experience;

● Effective communication and writing skills; and

● A holder of Professional Driver’s License and Government-issued ID

Finance Manager

● Male/Female;

● 21-40 years of age;

● A college graduate of a four (4) year course in Business Administration major in

Accountancy or other related courses in business;

● With at least two (2) years experience in the financial sector;

● Has expertise in accounting or financial procedures;

● Proficient in all Microsoft Office applications and finance software;

● Highly organized; and

● A holder of Professional Driver’s License and Government-issued ID

Barista

● Male/Female;

● 21-35 years of age;

● College graduate of a four (4) year course in Food and Beverage Services

Management or other related courses or NC II Food and beverage Services passer;

● Must be professionally trained in preparing different types of coffee and blended

drinks;With at least one (1) year experience in food and drink preparation;

● Must be residing in General Santos City;

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 ● and A holder of Professional Driver’s License and Government-issued ID

Cook

● Male/Female;

● 21-35 years of age;

● College graduate of a four (4) year course in Food and Beverage Services

Management or other related courses or NC II Food and beverage Services passer;

● With at least two (2) years experience in the food industry;

● Can prepare meals;

● Has in-depth understanding of food health and safety regulations;

● Must be residing in General Santos City; and

● A holder of Professional Driver’s License and Government-issued ID

Assistant Cook

● Male/Female;

● 21-35 years of age;

● NC II Food and Beverage Services passer;

● With at least two (1) year experience in food operations;

● Can prepare meals;

● Has in-depth understanding of food health and safety regulations;

● Must be residing in General Santos City; and

● A holder of Professional Driver’s License and Government-issued ID

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5.4 Personnel Duties and Responsibilities

This section presents the duties and responsibilities of each person. These roles and

responsibilities help the proposed business to simplify its hiring processes. If these roles and

responsibilities are clearly defined, it enables the employees to be efficient and avoids

confusion. The following are the duties and responsibilities of each personnel:

General Manager

● Facilitates Business Planning and Budget;

● Ensures the sales target of the business;

● Monitors daily business operations;

● Drives the coffee truck;

● Hires qualified employees;

● Formulates strategic vision; and

● Allocates resources to sustain competitive strategies

Marketing Manager

● Executes marketing programs;

● Analyze customer trends;

● Creates brand awareness through various social media platforms;

● Organizes programs aligned with the business objectives;

● Serves as liaison between advertising agencies;

● Coordinates cater events for interested customers; and

● Map’s out potential target customers;

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Operations Manager

● Manages day-to-day operations;

● Builds excellent relationships with customers and the wider public;

● Assures all operations are carried out in a cost-effective manner;

● Drives the coffee truck;

● Negotiates with the local distributors;

● Train and supervise employees;

● Coordinates with the general manager; and

● Find ways to improve customer service;

Finance Manager

● Maintains confidentiality;

● Analyzes the business financial statements;

● Executes budgets, credit, and cost analysis;

● Analyzes sales, expenses, tax rates, and future earnings;

● Evaluate the economic performance of companies and industries to invest

Barista

● Prepares high-quality beverages in accordance with the business standards;

● Delivers excellent service to customers;

● Ensures the cleanliness to the preparation area and dining area;

● Observes CLAYGO or “Clean as you go” policy;

● Follows general health and safety guidelines;

● Drives the coffee truck;

● Greets customers and presents the menu;

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 ● Maintains clean dishes, wares, and coffee mugs;

● Responsible for taking orders and payment; and

● Operates the cash register

Cook

● Cooks and prepares foods for customers;

● Monitors and orders ingredients needed for the production;

● May take orders and payment;

● Ensures the cleanliness to the preparation area and dining area;

● Drives the coffee truck;

● Maintains clean dishes, wares, and coffee mugs;

● Follows general health and safety guidelines; and

● May operate the cash register

Assistant cook

● Assisting the Cook in food preparation activities, such as cleaning, cutting,

chopping and peeling food ingredients;

● Serves food and drinks to limited dine-in customers;

● Arrange table setting and maintain the dining area clean;

● Carry dirty plates, glasses, and silverware to the kitchen for cleaning;

● Maintains clean dishes, wares, and coffee mugs;

● Buys food ingredients ;

5.5 Personnel Salary Structure

This section depicts the salary structure of the personnel of the Club Keopi. The

proposed business uses the hourly rate method for the computation of the

5
salary. The hourly rate signifies the wage an employee receives for each hour worked.

Table 8. Salary Structure of the Club Keopi (In Peso)

The table presented above shows the salaries to be received by the personnel of the

Club Keopi every month which includes deductions coming from PhilHealth, SSS, and Pag-

ibig Fund.

5.6 Registration Requirements/Government Roles

Depending on the type of business, the Club Keopi needs to register with a number of

government authorities. The following are the government roles and registration

requirements in establishing the proposed business:

Barangay Clearance. The proposed business will set its wheels in motion in other

streets in General Santos city aside from the Oval Plaza and Plaza Heneral. Therefore,

complying with a barangay clearance implies that the proposed business adheres to the local

government's regulations.

Bureau of Internal Revenue (BIR) Certificate of Registration. For tax

purposes, every business must be registered with the BIR to receive its own tax identification

number (TIN), as well as the ability to generate receipts, invoices, and other documents.

5
 Department of Labor and Employment (DOLE) Permit. In this case, the

proposed business consists of five (5) or more employees, therefore, it is advised to be

registered with the Department of Labor to ensure that they are complying with labor laws

and to ensure the safety and welfare of its employees.

Food and Drug Administration. The FDA has the authority to approve certain

ingredients before they are used in foods and beverages. Those include food additives, such

as substances added intentionally to food, and color additives.

Local Government. Every business, regardless of its legal form, must get a

mayor's permit or municipal license from the city or municipality where it is located. These

permits are required to verify if certain standards and criteria are met.

Securities and Exchange Commission (SEC) Registration. Partnerships and

corporations, unlike sole proprietorships, are obliged to register to the Securities and

Exchange Commission (SEC). The public instrument must be recorded with the SEC if the

partnership capital is Php 3,000 or more in money or property (Ballada,2015). The purpose

of this registration is to set a condition regarding the issuance of the license to operate and to

ensure that tax liabilities will not be evaded.

SSS, PhilHealth, and the Pag-IBIG Fund registration. The Social Security

System (SSS) is a social insurance program that collects employees' monthly contributions to

protect employees and their families in the event of disability, illness, old age, death, or other

events that render them unable to continue working. Philhealth, on the other hand, in this

time of the pandemic, health care is important. The first step for the proposed business is to

ensure that its employees are registered to provide social health insurance coverage.

Lastly, Pag-IBIG Fund

5
provides housing loans to the public and private sector employees, as well as self-employed

individuals who apply.

6
 Chapter VI

FINANCIAL STUDY

6.1 Total Project Cost

The table below shows the total funds needed to complete the project as well as the

budget allocation of funds arranged under its importance. These are the expenditures made or

estimated to be made to finish the project. The business will further expand and diversify

which means additional funds will be needed.

Table 9. Project Cost of the Club Keopi

6
6
6.2 Sources of Financing

The Club Keopi has a total capitalization of PHP 1,200,000.00. The source of

financing for the proposed business is equity financing. It will be accumulated by

contributing PHP 300,000 from each general partner of the venture. The Club Keopi’s start-

up costs will cover the customized coffee truck package, coffee machinery and equipment,

and other supplies necessary for business operations. The capitalization will also cover the

first month's expenses of the business.

6.3 Financial Assumptions

• All transactions are on a cash basis. The business will utilize equity financing.

• Sales and raw materials will increase by 10% and 5% yearly. Cost of Goods Sold is the

quotient of Annual Sales and Markup Percentage (110%).

• Baristas will be working for 8 hours/day. Employees will have a salary increase every

two (2) years.

• SSS, HDMF, and PHIC Contribution will stay the same during the five (5) years.

• Employees will earn based on the average salary of their respective positions in the

Philippines. Overtime and Holiday pay are discouraged by the employer.

• Machinery has a useful life of ten (10) years. Salvage Value is 20% of the acquisition

cost.

• Utilities, repairs, and advertising expenses will increase 5% annually. The annual tax rate

is at 30%.

6
6.4 Financial Statements

Financial Statements are a set of reports that detail a company’s financial

performance, financial status, and cash flows. The proposed business delivers projected

financial statements to account for the business’ operations.

6.4.1 Projected Income Statements

Table 10. Projected Income Statements of the Club Keopi

6.4.2 Projected Cash Flow Statements

Table 11. Projected Cash Flow Statements of the Club Keopi

6
6.4.3 Projected Balance Sheets

Table 12. Projected Balance Sheets of the Club Keopi

6.5 Financial Statement Analysis

This section presents the proposed business' ratio analysis. The payback period, as

well as the liquidity, profitability, solvency, and activity ratios, are indicated in this portion.

A financial statement analysis evaluates a company's performance through a company's

balance sheet, income statement, or statement of cash flows.

6.5.1 Liquidity Ratios

These ratios refer to a company’s ability to pay its current bills and expenses. It

relates to the availability of cash and other assets to cover accounts payable, short-term debt,

and other liabilities. Simply put, it measures how quickly an asset can be converted to cash.

6
 Table 13. Liquidity Ratios

6.5.2 Profitability Ratios

These ratios show the combined effects of liquidity, asset management, and debt

management on operating results. It measures the income of the company for a while. It also

tests the proposed business management’s operating effectiveness.

Table 14. Profitability Ratios

6.5.3 Solvency Ratios

These ratios measure the company’s ability to meet the obligations created by its

long-term debt. It indicates whether a company's cash flow is sufficient to meet its long-term

liabilities and thus, is a measure of its financial health.

6
 Table 15. Solvency Ratios of the Club Keopi

6.5.4 Activity Ratios

These ratios indicate how efficiently a company is leveraging the assets on its balance

sheet to generate revenues and cash, which is key to its operational fluidity and overall fiscal

health.

Table 16. Activity Ratios of the Club Keopi

6.5.5 Payback Period

The term payback period refers to the time it takes to recoup the cost of an

investment. Simply put, the payback period is the length of time an investment reaches a

break-even point.

Table 17. Payback Period of the Club Keopi

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6.6 Schedules of Accounts

Note 1: Schedule of Net Revenue

Note 2: Schedule of Salaries Expense

6
Note 3: Schedule of SSS, HDMF, PHIC Contribution

Note 4: Schedule of Utilities Expense

Note 5: Schedule of Repair Expense

6
 Note 6: Schedule of Advertising Expense

Note 7: Schedule of Depreciation Expense

Note 8: Schedule of Miscellaneous Expense

7
 Chapter VII

SOCIO-ECONOMIC STUDY

This chapter will discuss the contribution of the business to the Philippine economy,

its corporate social responsibilities, and environmental initiatives.

7.1 Contribution to the Philippine Economy

As a result of the spread of Covid-19, which has resulted in a series of lockdowns and

limits, the Philippines is now and indefinitely in an economic crisis.

According to Statista (a German organization specialized in market and consumer

statistics), 64 percent of households had a member who lost their job as a result of the

enhanced community quarantine (ECQ) that was enforced in the Philippines on March 16,

2020, because of the coronavirus disease (COVID-19).

As a consequence of a series of lockdowns and constraints, the Philippines is

currently facing inflationary status, and at a time when everyone is innovating, there is a need

for entrepreneurs to establish enterprises that could assist the government to deal with the

economic crisis.

The Club Keopi has the potential to make a major economic impact. By creating

employment that allows people to earn money, the enterprise can alleviate the current

economic crisis. Individuals will gain from The Club Keopi by having a steady source of

income, and it could also help the economy. The expenditure of capital, as the firm operates

and grows, The Club Keopi will infuse cash into the community, therefore supporting other

local enterprises. Furthermore, because

7
companies must pay taxes, The Club Keopi will contribute revenue to government

expenditures to help mitigate the economic crisis.

7.2 Corporate Social Responsibilities

The Club Keopi's first Corporate Social Responsibility is to hunt for a sustainable

supply. The fundamental objective of sustainable sourcing is to establish long-term

partnerships with suppliers and consumers. Customers, according to Club Keopi, are critical

to the company's growth. Similarly, The Club Keopi wants to form strategic partnerships

with its clients, establishing relationships and an atmosphere of trust and growth by meeting

the requirements and demands of its consumers.

Secondly, the Club Keopi will make certain that the company is involved in the

community. The company should be dedicated to adding value to the society and

environment in which it operates. The more involved and devoted the business is to the

community, the more prospective consumers it will attract and the more customer retention it

will bring.

7.3 Environmental Initiatives

The Club Keopi is a mobile coffee shop that roams the streets of General Santos City

with the objective of "fueling desire." The company sells a broad range of coffees, from

Arabica beans from South Cotabato to the most expensive coffee in the world, which can be

found in Digos, Davao Region. To decrease the use of plastics, the firm will use a Kraft

Coffee Paper Cup Holder for Takeaway, a wooden

7
spoon and fork for pastries and sweets, and recyclable cups with cardboard sleeves for both

hot and cold beverages.

To avoid impeding the city's waste disposal process during collection, the firm will

put trash containers outside and within the store, segregating biodegradable from non-

biodegradable garbage.

In addition, as we wanted to save energy, the enterprise will let the customers practice

the concept of “ClayGo” wherein, the customers will place their leftovers inside the trash

bins that can be found within the area.

As a new firm, the following strategies should be implemented to protect the

environment. The Club Keopi is not exclusively concerned with generating a profit; rather,

The Club Keopi wishes for a cleaner and greener pasture in our city and environment.

7
 Chapter VIII
KEY RISKS

This Chapter provides a comprehensive picture of the risks that could have a direct

impact on the business, including external and internal risks, contingency plans, and exit

strategies.

8.1 External Risks

External risk refers to economic events that occur outside of a company’s control or

that they cannot predict. The following are the corresponding external risks for the business:

Economic Risk. It refers to the macroeconomic conditions that will have an impact

on a company’s investment prospects. It includes exchange rate changes, a shift in

government policy, political instability or the imposition of economic penalties.

The business will be closely monitoring the price increase of key materials such as

coffee beans, gasoline, raw materials and packing materials. As well as the shift in

government policy especially when it comes to new tax laws.

Natural Risk. It refers to the natural disasters that disrupt routine business

operations. Heavy rain might have a direct impact on the business because it solely functions

as a food truck and not as an establishment where people may stay longer even when it’s

raining. Another concern is the supply of coffee beans during extended droughts or when

heavy rain causes slope erosion and landslides.

7
 Political Risk. It’s the chance that a business would suffer as a result of a country’s

instability or political change. Some significant factors are commodity price volatility,

liquidity crises, and sectoral downturns.

The political risk to local businesses in General Santos City is low hence, The Club

Keopi will be unaffected. To avoid any interference to its operations, the business will keep

an eye on commodity price fluctuations.

8.2 Internal Risks

These are risks posed by the business that occurs in the usual course of operations.

Unlike external risks, internal risks can be predicted and so avoided or managed. The

following are the corresponding internal risks for the business.

Legal Risk. It is a form of compliance risk that arises when a corporation fails to

obey the rules set forth by the government. Failure to comply might result in costly lawsuits

and a terrible reputation for the business. To avoid tarnishing its name and ensure a smooth

operation, The Club Keopi will guarantee that all standards are met.

Financial Risk. It occurs when a business doesn’t perform debt management or

financial planning tasks. Market fluctuations or losses might threaten the business’s financial

standing. In line with this, The Club Keopi made sure that the budget was well-planned in

order to prevent damaging the business’s financial situation.

7
 Human Risk. This risk is totally dependent on the employees’ performance. It is

their failure to carry out their basic responsibilities at work. It can also be caused by factors

that employees have no control over, such as health concerns or deliberate behaviors such as

theft or fraud. The Club Keopi will ensure that its employees’ qualifications are at par and

that these newly employed staff are able to be taught before starting work. Employees are the

most vital part of a business, failing to hire qualified staff can risk the entire operation.

8.3 Contingency Plan

This section will provide The Club Keopi’s detailed response to specific risks that the

business may experience in its operations. This plan’s goal is to establish the recovery

method that will be used to restore the company’s vital business functions.

Table 18. Contingency Plan

Risk Probability Preparation Response

Low coffee bean High Ensure extra bags of Coffee orders
supply due to coffee beans on should be limited
natural disasters. hand, as well as a and other
backup coffee bean beverages should
provider. be available and
offered.
Customers who
agree to settle for
other beverages
will receive a
complimentary
sandwich.
Heavy rain during High Tables for dine-in The business will
operations customers are only accept

7
 prepared with take-out orders.
umbrellas to protect
them from the heat
of the sun and light
rain.
Absenteeism Moderate Employees can Employees who
submit their leave fail to file their
requests using the leave and are
proper procedure set absent without a
by the business. valid reason will
face disciplinary
action.
Price increase of Moderate To prevent losing Products that are
raw materials money, the pricing available will have
of the products will to be limited to
have to be raised. those that are
regularly ordered.
Customers’ least
favorite products
would be made
unavailable in order
to cut costs.
Changes in Low The business will The Club Keopi
government policy be prepared to will analyze the
comply with new new policy before
government implementing it by
policies. modifying its
operations and
informing its staff.

8.4 Exit Strategies

The Club Keopi will consider two exit strategies which are: the Merger and

Acquisition as well as the Liquidation and Close. The Merger and Acquisition refer to a

company combining with another or being purchased by a larger corporation. This technique

is beneficial to the business since it avoids the need to liquidate the company and allows it to

develop and become more well-known. On the other hand, The Club Keopi also considers

the Liquidation and Close technique, in which the

7
partners must sell the asset and distribute the proceeds to their respective colleagues based

on their investment percentages. This way, both the owners and their employees will be able

to file a claim for any unpaid salaries.

7
 Chapter IX

BIBLIOGRAPH

Ballada, CPA, CBE ,MBA, W. (2015). Partnership and Corporation Accounting (19th ed.,

Ser. 2015 issue). Domdane Publisher and Made Easy Books.

Online Sources

Distribution channel. Corporate Finance Institute. (2022, February 9). Retrieved March 8,

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hannel/#:~:text=2.,Indirect%20distribution%20channels&text=The%20one%2 Dlevel

%20channel%20entails,it%20to%20the%20end%20buyers

Dti.gov.ph. (n.d.). Retrieved March 6, 2022, from

https://www.dti.gov.ph/negosyo/business-registration-and-permits/

General Santos. PhilAtlas. (n.d.). Retrieved March 7, 2022, from

https://www.philatlas.com/mindanao/r12/general-santos.html

Hayat, Khizar & Iqbal, Hira & Malik, Uzma & Bilal, Uzma & Mushtaq, Sobia. (2013). Tea

and Its Consumption: Benefits and Risks. Critical reviews in food science and

nutrition. 55. 10.1080/10408398.2012.678949.

How much are my SSS, Philhealth, HDMF and Pag-ibig deductions? How Much are My

SSS, Philhealth, HDMF and Pag-Ibig Deductions? (n.d.). Retrieved March 6, 2022,

from https://payrollhero.ph/deductions

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MarketResearch.com. (2020b, October 1). MarketResearch.Com. Retrieved March 2,

2022, from

https://www.marketresearch.com/Williams-Marshall-Strategy-v4196/Philippine s-

Roast-Coffee-Impact-COVID-13626409/

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composition, and application of coffee and its industrial residues. Food and

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Technical Education and Skills Development Authority. (2017). FEASIBILITY STUDY

FOR TWC CAFÉ JUANA.

Https://Twc.Tesda.Gov.Ph/Index.Php?page=links&linksID=3. Retrieved March 2,

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%20STUDY%20FOR%20TWC%20CAFE%20JUANA%20(1).pdf

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8
 APPENDICES

APPENDIX A.1

LETTER FOR THE RESPONDENTS

8
 APPENDIX A.2

SUPPLIER AGREEMENT

8
 APPENDIX A.3

PARTNER’S AGREEMENT

8
8
 Curriculum Vitae

I. Personal Background
Name: Flores, Sephany P.
Date of Birth: February 27, 2000
Birth Place: General Santos City
Nationality: Filipino
Civil Status: Single
Gender: Female
Cellphone Number: 09958866263
Religion: Roman Catholic
Address: Blk. 16, Lot 3, Agan Centro Subdivision, Brgy. Lagao, General Santos
City, South Cotabato, 9500.
Email address: sephanyflores@gmail.com

II. Educational Attainment

Primary UCCP-Pag-Ibig Christian School of Lagao, Inc.
Prk. Bayanihan, Brgy. San Isidro, General Santos City
2007 - 2013

Secondary Notre Dame of Dadiangas University - Integrated Basic

Education Department
San Pablo St., Brgy. Lagao, General Santos City
2013 - 2019

Tertiary Notre Dame of Dadiangas University

Marist Avenue, General Santos City
2019 - Present

8
 Curriculum Vitae

I. Personal Background
Name:Guerrero, Jayshle Louise Asuncion
Date of Birth: September 13, 2000
Birth Place: General Santos City
Nationality: Filipino
Civil Status: Single
Gender: Female
Cellphone Number: 0906-864-4886
Religion: Roman Catholic
Address: Blk 5 Lot 8, VS Homes Subdivision, Barangay San Isidro, General
Santos City.
Email address: guerrerojayshlelouise@gmail.com

II. Educational Attainment

Primary SPED Integrated School
Quezon Avenue, General Santos City
2008-2010
Maranatha Christian School
Tiongson St, General Santos City
2011-2012

Secondary: The Heritage Academy of the Philippines Guinto

St. PurokMalakas, General Santos City 2012 –
2017

Notre Dame of Dadiangas University

Marist Avenue, General Santos City
2017 – 2019

Tertiary: Notre Dame of Dadiangas University

Marist Avenue, General Santos City
2019 – present

8
 Curriculum Vitae

I. Personal Background
Name: Tadena, Harlan Vincent S.
Date of Birth: May 28, 2001
Birth Place: Tupi, South Cotabato
Nationality: Filipino
Civil Status: Single
Gender: Male
Cellphone Number: 0939-934-1455
Religion: Roman Catholic
Address: #88 Salinda Street, Lagao, General Santos City, 9500 Email
address: HVTADENA@GMAIL.COM

II. Educational Attainment

Primary Better Educational System & Training School
Poblacion, Tupi, South Cotabato
2007 - 2013

Secondary Tupi National High School

AH26, Poblacion, Tupi, South Cotabato
2013 - 2017

The College of Arts & Sciences of Asia & the Pacific

L2C5A Marcos Highway, Pasig City
2017 - 2018

Joji Ilagan International School of Hotel & Tourism Management

Leon Llido Street, City Heights, General Santos Cit
2018 -2019

Tertiary: Notre Dame of Dadiangas University

Marist Avenue, General Santos City
2019 – present

8
 Curriculum Vitae

I. Personal Background
Name: Tantamco, John Vincent Velayo
Date of Birth: February 29, 2000
Birth Place: General Santos City
Nationality: Filipino
Civil Status: Single
Gender: Male
Cellphone Number: 0956-679-5680
Religion: Roman Catholic
Address: Blk 6 Lot 14, Las Villas de Dadiangas Subdivision, Barangay City
Heights, General Santos City
Email address: tantamcoj@gmail.com

II. Educational Attainment

Primary Notre Dame Siena-College General Santos City
NLSA Rd, Purok Masagana, General Santos City
2006-2012

Secondary: Notre Dame Siena-College of General Santos City NLSA

Rd, Purok Masagana, General Santos City 2012 – 2019

Tertiary: Notre Dame of Dadiangas University

Marist Avenue, General Santos City
2019 – present