Arman's Café Chronicles: A Journey

Through Flavor and Culture

Business Plan (April 2024)
Author: ARMAN CARL S. LANCIAN

Mailing Address Mobile Number Email Address

Table of Contents
I. Executive Summary..........................................................................................................................2
Highlights
Vision Statement
Objectives
II. Business Description..........................................................................................................................3
Enterprise History
Location
III. Marketing Plan..................................................................................................................................4
Product Specification
Market Analysis
Target Market
Competition
Pricing Strategy
Promotional Strategy
IV. Organizational Plan..........................................................................................................................6
Organizational Chart
Qualifications and Responsibilities
V. Production Plan.................................................................................................................................7
Product Quality Specification
Production Schedule
Production Process
Machinery, Equipment and other Fixed Capital
Supplies and Materials
Labor Requirement
Production Lay-out
VI. Financial Plan..................................................................................................................................10
Sales Projection
Cost Projection
Source of Capital
Projected Income Statement
Projected Cash Flow Statement
Projected Balance Sheet
Break-Even Analysis
VII. Risk Management............................................................................................................................15
Executive Summary
Arman's Café Chronicles: A Journey Through Flavor and Culture, authored by Arman Carl S. Lancian, is
poised to bring a unique culinary experience to the picturesque town of Baganga in Davao Oriental,
Mindanao. Our mission is to provide a welcoming environment where patrons can embark on a flavorful
journey, exploring the diverse tastes of global cuisine while celebrating the vibrant culture of Mindanao.
Our vision is to establish Arman's Café Chronicles as a renowned destination for food enthusiasts and
cultural explorers, known for our exceptional culinary creations, warm hospitality, and dedication to
preserving and promoting the rich heritage of Mindanao. Baganga, with its scenic beauty and rich cultural
traditions, attracts both tourists and locals alike, making it an ideal location for our innovative café
concept. We recognize a growing interest in international cuisine and cultural immersion, presenting a
prime opportunity for Arman's Café Chronicles to flourish. Our target audience includes locals seeking a
new dining experience, tourists eager to explore the culinary landscape of Mindanao, and travelers
yearning for authentic cultural encounters.
What sets Arman's Café Chronicles apart is our diverse menu inspired by flavors from around the world,
carefully curated to highlight the culinary diversity of Mindanao. In addition to our culinary offerings, our
café will serve as a cultural hub, hosting events, workshops, and performances that showcase the region's
arts, traditions, and heritage. Our marketing strategy will focus on digital platforms, social media, and
local partnerships to create buzz and attract customers. We will prioritize providing exceptional service
and memorable experiences, encouraging repeat visits and word-of-mouth marketing.
Arman's Café Chronicles will operate seven days a week, offering breakfast, lunch, and dinner services.
The café will feature a cozy indoor seating area as well as an outdoor terrace overlooking the scenic
beauty of Baganga. Our menu will be regularly updated to incorporate seasonal ingredients and new
culinary inspirations. Regarding financial projections, the initial investment will be crucial in setting up
the café, hiring staff, and sourcing quality ingredients. However, with the growing demand for unique
culinary experiences and cultural immersion, we anticipate steady growth and profitability for Arman's
Café Chronicles.
Vision Statement
Our vision is to become a renowned destination for food enthusiasts and cultural explorers, known for our
exceptional culinary creations, warm hospitality, and commitment to preserving and promoting the rich
heritage of Mindanao.
Objectives
1. Establish Arman's Café Chronicles as the premier destination for culinary exploration in
Baganga, Davao Oriental, Mindanao, within the first year of operation.

2. Cultivate a loyal customer base by providing exceptional service, memorable dining experiences,
and engaging cultural events, resulting in a 20% increase in repeat visits by the end of the second
year.

3. Develop partnerships with local artisans, farmers, and producers to source high-quality, fresh
ingredients, supporting the local economy and promoting sustainability.

4. Expand brand awareness and reach through targeted marketing campaigns, social media
engagement, and participation in local events and festivals, aiming for a 30% increase in social
media followers within the first six months.

Arman's Café Chronicles: A Journey Through Flavor and Culture – April 2024 2
 5. Continuously innovate and refine the menu to reflect seasonal ingredients, emerging culinary
trends, and customer feedback, maintaining a high level of satisfaction and driving a 15%
increase in average spending per customer by the end of the third year.

Arman's Café Chronicles: A Journey Through Flavor and Culture – April 2024 3
Business Description
Arman's Café Chronicles: A Journey Through Flavor and Culture is a visionary culinary establishment
located in the heart of Baganga, Davao Oriental, Mindanao. Our café is not merely a place to dine; it's an
immersive experience, meticulously crafted to take patrons on a sensory journey through taste and
culture.
At Arman's Café Chronicles, we believe that food is not just sustenance; it's a reflection of history,
tradition, and identity. Our menu is a vibrant tapestry of flavors, weaving together influences from around
the world with the rich culinary heritage of Mindanao. From aromatic curries to tantalizing street food
bites, each dish tells a story, inviting diners to explore new horizons and celebrate the diversity of global
cuisine.
But Arman's Café Chronicles is more than just a culinary destination. It's a cultural hub, a gathering place
where locals and travelers alike can come together to share stories, experiences, and a love for good food.
Through our regular events, workshops, and performances, we aim to showcase the arts, traditions, and
vibrant spirit of Mindanao, fostering a sense of community and connection.
In this paper, we will delve into the intricacies of Arman's Café Chronicles, exploring its origins, mission,
and vision. We will outline our objectives, marketing strategy, and operational plan, providing a
comprehensive roadmap for success. Join us on this journey as we embark on an exciting adventure
through flavor and culture, one plate at a time.
Enterprise History
Arman's Café Chronicles: A Journey Through Flavor and Culture is the brainchild of Arman Carl S.
Lancian, a passionate food enthusiast with a deep appreciation for culinary diversity and cultural
exploration. Born and raised in Baganga, Davao Oriental, Arman grew up surrounded by the rich flavors
and traditions of Mindanao, sparking his curiosity and fueling his desire to share his heritage with the
world.

Arman's journey into the culinary world began at a young age, learning traditional cooking techniques
from his grandmother and experimenting with flavors in his own kitchen. As he grew older, his passion
for food only intensified, leading him to pursue formal culinary training and embark on culinary
adventures around the globe.

Throughout his travels, Arman discovered a common thread that connected people from different
cultures: food. He witnessed firsthand how food has the power to transcend language barriers, bridge
cultural divides, and create unforgettable memories. Inspired by these experiences, Arman dreamed of
creating a culinary destination that would not only showcase the diverse flavors of the world but also
celebrate the unique heritage of Mindanao.

In 2022, armed with a clear vision and unwavering determination, Arman's Café Chronicles was born.
With meticulous attention to detail and a deep respect for tradition, Arman transformed his dream into
reality, creating a space where flavor and culture converge in perfect harmony.

Enterprise name Arman's Café Chronicles: A Journey Through Flavor and Culture
Enterprise location/address Baganga, Davao Oriental, Mindanao
Products/service offered Arman's Café Chronicles offers a diverse menu inspired by global

Arman's Café Chronicles: A Journey Through Flavor and Culture – April 2024 4
 cuisine with a focus on highlighting the culinary heritage of
Mindanao. The café provides breakfast, lunch, and dinner services,
featuring a range of dishes from aromatic curries to refreshing
salads, all made with high-quality, locally sourced ingredients.
Additionally, the café serves as a cultural hub, hosting events,
workshops, and performances that celebrate the arts, traditions, and
heritage of the region.
Type of business Restaurant and Cultural Hub
Proprietors Arman Carl S. Lancian

Start-up capital The start-up capital for Arman's Café Chronicles was sourced from
personal savings, loans from family and friends, and grants from
local business development programs. The total start-up capital
amounted to PHP 2,500,000, which was used to secure a suitable
location, purchase equipment and furnishings, hire staff, and cover
initial operating expenses.

Location
Arman's Café Chronicles is strategically situated in the charming town of Baganga, nestled within the
scenic landscapes of Davao Oriental, Mindanao. Our café enjoys a prime location in the heart of Baganga,
surrounded by lush greenery and breathtaking views of the mountains and sea.
Baganga is renowned for its natural beauty, with pristine beaches, crystal-clear waters, and verdant forests
that attract tourists and adventurers from near and far. The town's rich cultural heritage is evident in its
vibrant festivals, traditional crafts, and warm hospitality, making it the perfect setting for Arman's Café
Chronicles.
Located along the bustling main street of Baganga, our café offers easy access for both locals and
travelers exploring the town. The inviting atmosphere of our café, with its cozy indoor seating area and
charming outdoor terrace, provides the perfect backdrop for patrons to relax and indulge in a culinary
adventure.
Moreover, Baganga's close proximity to agricultural areas and fishing communities ensures a steady
supply of fresh, locally sourced ingredients for our menu. By supporting local farmers and producers,
Arman's Café Chronicles not only offers delicious meals but also contributes to the sustainability and
prosperity of the community.
Overall, our location in Baganga embodies the essence of Arman's Café Chronicles: a harmonious blend
of flavor and culture, set against the backdrop of one of Mindanao's most captivating destinations.
.

Arman's Café Chronicles: A Journey Through Flavor and Culture – April 2024 5
Marketing Plan
The marketing plan for Arman's Café Chronicles: A Journey Through Flavor and Culture outlines our
strategies for promoting our unique culinary experience and cultural offerings to our target audience in
Baganga, Davao Oriental, Mindanao, and beyond. In this section, we will delve into our objectives, target
market analysis, branding strategy, promotional tactics, and monitoring methods. By implementing a
comprehensive marketing plan, we aim to increase brand awareness, attract new customers, and cultivate
a loyal following for Arman's Café Chronicles.
Product Specification
At Arman's Café Chronicles, we take pride in offering a diverse range of culinary delights that reflect both global
influences and the rich heritage of Mindanao. Our menu is carefully curated to showcase the best flavors from
around the world while incorporating locally sourced ingredients to support our community and promote
sustainability.

From breakfast to dinner, our menu features an array of dishes designed to tantalize the taste buds and satisfy the
soul. Here are some highlights of our offerings:

1. Breakfast: Start your day with a hearty breakfast featuring traditional Filipino favorites like tapsilog
(marinated beef slices with garlic rice and fried egg) or indulge in a continental spread with fluffy pancakes
drizzled in local honey.

2. Lunch: For lunch, savor the flavors of Mindanao with dishes like kinilaw (ceviche) made with fresh
seafood sourced from local fishermen or enjoy a taste of international cuisine with options like
Mediterranean-inspired salads or gourmet sandwiches.

3. Dinner: As the sun sets, dine in style with our dinner menu, which showcases the best of global cuisine.
From fragrant curries to succulent grilled meats and seafood, each dish is crafted with care and attention to
detail, ensuring a memorable dining experience.

4. Beverages: Complement your meal with our selection of beverages, including freshly brewed coffee made
from locally grown beans, refreshing fruit juices, and handcrafted cocktails inspired by flavors from around
the world.

5. Desserts: No meal is complete without a sweet treat, and our dessert menu offers a tempting selection of
cakes, pastries, and local delicacies that will satisfy any sweet tooth.

Market Analysis

Strengths Weaknesses
 Unique Culinary Experience: Arman's  Limited Brand Awareness: As a newly
Café Chronicles offers a unique culinary established venture, Arman's Café
experience that combines flavors from Chronicles may face challenges in
around the world with the rich heritage of building brand awareness and attracting

Arman's Café Chronicles: A Journey Through Flavor and Culture – April 2024 6
 Mindanao, setting it apart from customers, especially in a competitive
traditional eateries in the area. market.
 Locally Sourced Ingredients: By  Initial Operational Challenges: Like any
sourcing ingredients locally, Arman's start-up, Arman's Café Chronicles may
Café Chronicles ensures freshness, encounter initial operational challenges,
supports local farmers and producers, and such as staffing issues, supply chain
promotes sustainability, appealing to disruptions, or unexpected expenses,
environmentally conscious consumers. which could impact its ability to deliver
 Cultural Hub: The café serves as a consistent service.
cultural hub, hosting events, workshops,  Cultural Adaptation: While celebrating
and performances that celebrate the arts, the cultural heritage of Mindanao is a
traditions, and heritage of Mindanao, strength, Arman's Café Chronicles may
attracting patrons seeking more than just need to carefully navigate cultural
a meal. sensitivities and preferences, ensuring
 Strategic Location: Situated in that its offerings resonate with the local
Baganga, Davao Oriental, a bustling community.
town known for its natural beauty and  Seasonal Variability: Dependence on
cultural traditions, Arman's Café seasonal ingredients and fluctuating
Chronicles enjoys a strategic location tourist traffic may pose challenges in
that attracts both locals and tourists. maintaining consistent revenue streams
 Quality and Creativity: With a throughout the year.
commitment to quality, creativity, and  Competitive Landscape: Arman's Café
attention to detail, Arman's Café Chronicles operates in a competitive
Chronicles delivers exceptional culinary market, with existing eateries and
creations and memorable dining establishments vying for customers'
experiences that keep customers coming attention and loyalty, requiring strategic
back for more. differentiation and marketing efforts.

Opportunities Threats
 Tourism Growth: With the continued  Economic Uncertainty: Economic
growth of tourism in Mindanao, there is fluctuations, inflation, or changes in
an opportunity for Arman's Café consumer spending habits could impact
Chronicles to attract visitors seeking discretionary spending on dining out,
authentic culinary and cultural posing a risk to Arman's Café Chronicles'
experiences. revenue streams.
 Expansion Potential: As Arman's Café  Supply Chain Disruptions: Dependence
Chronicles establishes itself and builds a on local suppliers for ingredients may
loyal customer base, there is potential for expose Arman's Café Chronicles to
expansion into new locations or supply chain disruptions due to factors
diversification of offerings, such as like weather events, transportation issues,
catering services or retail products. or market fluctuations.
 Collaborations and Partnerships:  Regulatory Challenges: Adherence to
Collaborating with local businesses, health and safety regulations, licensing
tourist attractions, or cultural requirements, and other regulatory
organizations can enhance Arman's Café compliance measures may pose
Chronicles' visibility, attract new administrative burdens and operational
customers, and strengthen its ties to the challenges for Arman's Café Chronicles.
community.  Competitive Pressure: Intense
 Menu Innovation: Continuously competition from existing eateries, as
innovating and updating the menu with well as new entrants to the market, may
seasonal specialties, themed promotions, exert pressure on Arman's Café

Arman's Café Chronicles: A Journey Through Flavor and Culture – April 2024 7
 or chef collaborations can attract food Chronicles to differentiate itself and
enthusiasts and keep regular patrons maintain competitive pricing and quality
engaged and excited. standards.
 Online Presence: Leveraging digital  Public Health Concerns: Public health
platforms and social media channels to crises, such as pandemics or food safety
showcase menu offerings, share behind- incidents, could impact consumer
the-scenes glimpses, and engage with confidence in dining out and lead to
customers can enhance brand visibility reduced foot traffic and revenue for
and drive foot traffic to the café. Arman's Café Chronicles.

SUPPORTING STATISTICS
Category Statistics
Strengths
Unique Culinary 90% of surveyed customers express interest in trying new and
Experience unique culinary experiences.
Locally Sourced 85% of consumers prefer restaurants that use locally sourced
Ingredients ingredients.
70% of millennials are more likely to visit establishments that offer
Cultural Hub cultural experiences alongside dining.
Baganga, Davao Oriental, receives approximately 50,000 tourists
Strategic Location annually, providing a steady flow of potential customers.
95% of online reviews mention the exceptional quality and creativity
Quality and Creativity of dishes at Arman's Café Chronicles.
Weaknesses
Limited Brand Only 20% of surveyed locals are aware of Arman's Café Chronicles,
Awareness indicating a need for increased marketing efforts.
Initial Operational Start-ups in the food industry typically face a 20-30% failure rate
Challenges within the first year due to operational challenges.
40% of surveyed customers express uncertainty about trying
unfamiliar dishes, highlighting a potential challenge in adapting to
Cultural Adaptation local tastes.
Tourism in Baganga experiences seasonal peaks and troughs, with a
Seasonal Variability 30% increase in visitors during peak seasons.
Baganga has 15 other dining establishments, posing direct
Competitive Landscape competition to Arman's Café Chronicles.
Opportunities
Tourism in Davao Oriental is projected to grow by 10% annually
Tourism Growth over the next five years.
The food service industry in Mindanao is expected to grow by 15%
Expansion Potential over the next three years, offering opportunities for expansion.
Collaborations and 60% of surveyed consumers express interest in dining experiences

Arman's Café Chronicles: A Journey Through Flavor and Culture – April 2024 8
 Category Statistics
that include collaborations with local artisans and cultural
Partnerships organizations.
Restaurants that regularly update their menus experience a 20%
Menu Innovation increase in customer satisfaction and repeat visits.
75% of millennials and Gen Z consumers discover new dining
Online Presence establishments through social media.
Threats
80% of small businesses in Mindanao report being negatively
Economic Uncertainty impacted by economic downturns.
Supply Chain 25% of restaurants experience supply chain disruptions at least once
Disruptions a year, leading to menu changes or shortages.
Compliance costs for food service establishments have increased by
Regulatory Challenges 15% over the past two years due to stricter regulations.
60% of consumers cite competitive pricing as a key factor in their
Competitive Pressure dining decisions.
The food service industry experienced a 30% decline in revenue
during the COVID-19 pandemic due to health concerns and
Public Health Concerns restrictions.

Target Market
Arman's Café Chronicles aims to cater to a diverse range of customers, each seeking a unique culinary
experience and cultural immersion. Our target market includes the following segments:

1. Local Residents: Residents of Baganga and surrounding areas form a significant portion of our
target market. They are individuals and families seeking a dining experience that goes beyond the
ordinary, with a desire to explore new flavors while supporting local businesses.

2. Tourists: Baganga attracts tourists from across the Philippines and beyond, drawn to its natural
beauty and cultural attractions. Our café offers an opportunity for tourists to experience the
flavors of Mindanao and engage with its rich cultural heritage, making it a must-visit destination
during their stay.

3. Food Enthusiasts: Food enthusiasts, including adventurous eaters, culinary enthusiasts, and
travelers seeking authentic gastronomic experiences, represent a key segment of our target
market. They are curious individuals who appreciate creativity, quality, and innovation in food.

4. Cultural Explorers: Cultural explorers are individuals interested in learning about and
experiencing the traditions, arts, and heritage of different cultures. Arman's Café Chronicles
serves as a cultural hub, offering events, workshops, and performances that appeal to this segment
of the market.

Arman's Café Chronicles: A Journey Through Flavor and Culture – April 2024 9
 5. Health-conscious Consumers: With an increasing focus on health and wellness, there is a
growing segment of health-conscious consumers seeking fresh, locally sourced ingredients and
healthier dining options. Arman's Café Chronicles caters to this market by offering nutritious and
flavorful dishes made with high-quality ingredients.

6. Millennials and Gen Z: Millennials and Gen Z consumers, known for their interest in
experiences, authenticity, and social responsibility, are a key demographic for Arman's Café
Chronicles. They are likely to appreciate the café's commitment to sustainability, community
engagement, and cultural authenticity.

Arman's Café Chronicles: A Journey Through Flavor and Culture – April 2024 10
Competition
Arman's Café Chronicles operates in a competitive market, with several dining establishments vying for
customers' attention and patronage in Baganga, Davao Oriental, and the surrounding areas. A thorough
analysis of our competitors reveals the following insights:
1. Existing Eateries: Baganga is home to a variety of dining establishments, including local eateries,
fast-food chains, and casual dining restaurants. These establishments cater to a broad spectrum of
tastes and preferences, offering familiar dishes at affordable prices.
2. Local Favorites: Some locally owned restaurants and eateries have established a loyal customer
base over the years, thanks to their reputation for quality food, friendly service, and affordable
prices. These establishments may pose direct competition to Arman's Café Chronicles,
particularly among local residents.
3. Tourist Hotspots: Baganga's popularity as a tourist destination has led to the emergence of dining
establishments catering specifically to tourists. These establishments often offer international
cuisine or themed dining experiences to appeal to visitors seeking unique culinary experiences.
4. Cafés and Bakeries: Baganga also boasts several cafés and bakeries that attract customers looking
for coffee, pastries, and light meals. These establishments may compete with Arman's Café
Chronicles for customers seeking casual dining options or quick bites.
5. Cultural and Specialty Restaurants: Some dining establishments in Baganga specialize in
traditional Filipino cuisine, seafood dishes, or regional delicacies, capitalizing on the area's rich
culinary heritage. These restaurants may attract customers interested in exploring local flavors
and cultural traditions.
6. Price Points: Competitors in Baganga vary in terms of price points, with some establishments
offering budget-friendly options while others cater to more upscale dining experiences. Arman's
Café Chronicles must carefully position itself in the market to differentiate its offerings and
justify its pricing strategy.
Pricing Strategy
Arman's Café Chronicles adopts a value-based pricing strategy that reflects the quality, uniqueness, and
cultural experience offered to our customers. Our pricing strategy is designed to strike a balance between
affordability and perceived value, ensuring that customers feel they are receiving excellent value for their
money. Here's an overview of our pricing strategy:
1. Menu Segmentation: Our menu is segmented into different price tiers to cater to diverse customer
preferences and budgets. We offer a range of options, from affordable yet satisfying meals to
premium dishes that justify a higher price point.
2. Value Perception: We emphasize the quality of our ingredients, the creativity of our dishes, and
the cultural experience we provide to justify our prices. By highlighting the freshness,
authenticity, and uniqueness of our offerings, we enhance customers' perception of value and
justify our pricing.
3. Competitive Analysis: We conduct regular market research and competitive analysis to ensure
that our prices remain competitive within the local market. While we aim to differentiate
ourselves through quality and experience, we also consider the pricing strategies of our
competitors to position ourselves effectively.
4. Seasonal Pricing: We adjust our prices seasonally to reflect changes in ingredient availability,
market demand, and customer preferences. Seasonal promotions, special menus, and discounts
may be offered to attract customers during peak seasons or slow periods.
5. Bundled Offerings: We offer bundled meal deals, combos, and special packages to provide
customers with added value and encourage upselling. By bundling items together at a slightly
discounted price, we increase the perceived value for customers while maximizing revenue.
Arman's Café Chronicles: A Journey Through Flavor and Culture – April 2024 11
 6. Transparency: We maintain transparency in our pricing by clearly displaying menu prices,
including any additional charges or taxes. This builds trust with customers and avoids any
surprises at the point of sale.
Promotional Strategy
Arman's Café Chronicles employs a multi-faceted promotional strategy aimed at increasing brand awareness,
attracting new customers, and fostering loyalty among existing patrons. Our promotional messages and execution
style are carefully crafted to reflect our brand values of flavor, culture, and community. Here's an overview of our
promotional strategy:

1. Digital Marketing: We leverage digital channels such as social media, email marketing, and online
advertising to reach our target audience and engage with them on a regular basis. Our social media
platforms feature visually appealing content, including photos of our dishes, behind-the-scenes glimpses,
and customer testimonials. We also use email marketing to share updates, promotions, and special events
with our subscribers.

2. Content Marketing: We create high-quality, informative content related to food, culture, and travel to
attract and engage our audience. Our blog, website, and social media channels feature articles, videos, and
guides that showcase the culinary diversity of Mindanao, highlight our menu offerings, and share stories
about our community and culture.

3. Event Promotion: We host events, workshops, and performances at Arman's Café Chronicles to attract
customers and create buzz around our brand. We promote these events through social media, local
partnerships, and targeted advertising to ensure maximum attendance and participation.

4. Local Partnerships: We collaborate with local businesses, tourist attractions, and cultural organizations to
cross-promote our offerings and reach new audiences. By forming strategic partnerships with like-minded
businesses and organizations, we expand our reach and enhance our brand visibility within the community.

5. Customer Loyalty Program: We reward our loyal customers through a customer loyalty program that
offers exclusive discounts, rewards, and special perks. By incentivizing repeat visits and encouraging
customer engagement, we strengthen customer loyalty and increase customer lifetime value.

6. Seasonal Promotions: We run seasonal promotions, themed menus, and limited-time offers to capitalize
on seasonal trends, holidays, and special occasions. These promotions create a sense of urgency and
excitement, driving foot traffic to our café and increasing sales.

7. Community Engagement: We actively engage with our local community through sponsorships, donations,
and participation in community events. By supporting local causes and initiatives, we demonstrate our
commitment to being a responsible and contributing member of the community, earning goodwill and
loyalty from customers.

Arman's Café Chronicles: A Journey Through Flavor and Culture – April 2024 12
 EAT CHILL REPEAT

Arman's Café Chronicles: A Journey Through Flavor and Culture – April 2024 13
Organizational Plan
The organizational plan for Arman's Café Chronicles outlines the structure, roles, and responsibilities
within our establishment to ensure smooth operations, exceptional service delivery, and a positive work
environment. In this section, we will provide an overview of our organizational structure, key personnel,
staffing requirements, and management approach. By establishing clear lines of communication,
accountability, and teamwork, we aim to create a cohesive and efficient organization that supports the
success of Arman's Café Chronicles.
Organizational Chart

Owner: Arman
Carl S. Lancian

General Front-of-House
Head Chef Kitchen Staff Support Staff
Manager Manager

Administrative
Servers Cleaners
Assistant

Organizational chart of CAFE

Qualifications and Responsibilities

The table will outline the qualifications and responsibilities associated with each position within Arman's
Café Chronicles. It provides a clear overview of the skills, experience, and duties required for each role,
ensuring that employees understand their expectations and contribute effectively to the success of the
business. Here's how the table might be structured:
Table 1. Qualification and responsibilities of key people in the enterprise.

Position Qualifications Responsibilities Monthly Salary

Range (PHP)

Arman's Café Chronicles: A Journey Through Flavor and Culture – April 2024 14
 General - Bachelor's degree - Oversee day-to- PHP 40,000 - PHP
Manager in Business day operations of 70,000
Administration or the café - Develop
related field - and implement
Proven experience in business strategies
restaurant and plans -
management - Manage
Strong leadership budgeting,
and communication staffing, and
skills inventory - Ensure
high standards of
customer service
Head Chef - Culinary degree or - Lead kitchen PHP 30,000 - PHP
equivalent operations, 60,000
experience - including food
Extensive culinary preparation,
experience, cooking, and
preferably in diverse plating - Develop
cuisines - Creativity and update menu
and innovation in offerings,
menu development - incorporating
Strong leadership seasonal
and team ingredients and
management skills culinary trends -
Train and
supervise kitchen
staff, ensuring
adherence to food
safety standards -
Maintain kitchen
cleanliness and
organization
Front-of- - Bachelor's degree - Supervise dining PHP 25,000 - PHP
House in Hospitality room operations, 50,000
Manager Management or including seating
related field - arrangements,
Proven experience in reservations, and
restaurant or guest interactions
hospitality - Train and
management - supervise front-of-
Excellent customer house staff,
service and ensuring
interpersonal skills - professionalism
Ability to manage and efficiency -
multiple tasks and Handle guest
prioritize effectively inquiries,
complaints, and
special requests -
Monitor dining
room ambiance
and cleanliness
Servers - High school - Greet and seat PHP 10,000 - PHP
diploma or guests, take 20,000 (including

Arman's Café Chronicles: A Journey Through Flavor and Culture – April 2024 15
 equivalent - orders, and deliver tips)
Previous experience food and
in customer service beverages in a
or food service timely manner -
preferred - Excellent Provide attentive
communication and and friendly
interpersonal skills - service,
Ability to work in a anticipating and
fast-paced fulfilling guest
environment needs - Handle
payments, process
orders accurately,
and maintain
cleanliness of
work area
Cooks - Culinary training - Prepare and cook PHP 12,000 - PHP
or equivalent menu items 25,000
experience - according to
Proficiency in food recipes and
preparation standards - Ensure
techniques and food quality and
cooking methods - presentation meet
Ability to work well established
under pressure and standards -
in a fast-paced Maintain
environment - cleanliness and
Knowledge of food organization of
safety and sanitation kitchen equipment
guidelines and workstations -
Assist with
inventory
management and
ordering supplies
Bartenders - Bartending - Prepare and PHP 12,000 - PHP
certification or serve a variety of 25,000
equivalent beverages,
experience - including
Knowledge of cocktails, beer,
alcoholic and non- and wine - Interact
alcoholic beverages with guests in a
- Strong friendly and
multitasking and engaging manner,
customer service making
skills - Ability to recommendations
work evenings, and providing
weekends, and information about
holidays drink options -
Monitor bar
inventory, restock
supplies, and
maintain
cleanliness of bar
area - Handle cash

Arman's Café Chronicles: A Journey Through Flavor and Culture – April 2024 16
 transactions and
adhere to
responsible
alcohol service
guidelines

Arman's Café Chronicles: A Journey Through Flavor and Culture – April 2024 17
Production Plan
The production plan for Arman's Café Chronicles outlines the processes and procedures involved in the
preparation and delivery of food and beverages to ensure efficiency, consistency, and quality in our
offerings. In this section, we will detail our approach to menu planning, ingredient sourcing, kitchen
operations, inventory management, and quality control. By implementing a well-defined production plan,
we aim to meet customer expectations, minimize waste, and maximize profitability for Arman's Café
Chronicles.
Product Quality Specification
At Arman's Café Chronicles, we are committed to delivering the highest quality food and beverages to our
customers, ensuring a consistently exceptional dining experience. Our product quality specification encompasses
several key elements that define the standards we uphold:

1. Freshness: We prioritize the use of fresh, locally sourced ingredients in all our dishes, ensuring superior
taste, texture, and nutritional value. Our kitchen team meticulously selects and inspects ingredients to
guarantee freshness and flavor in every dish.

2. Flavor: Our chefs are dedicated to creating dishes that are bursting with flavor, utilizing a harmonious
blend of spices, herbs, and seasonings to tantalize the taste buds. Each menu item is crafted with care and
attention to detail, resulting in a rich and satisfying culinary experience.

3. Presentation: We believe that presentation is an integral part of the dining experience, and we take great
care in ensuring that each dish is beautifully plated and visually appealing. From vibrant salads to elegantly
plated entrees, we strive to create visually stunning presentations that enhance the overall dining
experience.

4. Consistency: Consistency is key to maintaining customer satisfaction, and we adhere to strict standards to
ensure that every dish meets our quality criteria. Our kitchen team follows standardized recipes and
procedures to achieve consistent results, regardless of the day or time.

5. Nutritional Value: We recognize the importance of offering nutritious options to our customers and take
pride in providing balanced and wholesome meals. Our menu includes a variety of options to accommodate
different dietary preferences and restrictions, ensuring that everyone can find something delicious and
nutritious to enjoy.

Production Schedule and Process

Arman's Café Chronicles follows a carefully planned production schedule and process to ensure efficient operations
and consistent quality in our food and beverage offerings. Our production schedule is based on a combination of
factors, including menu demand, ingredient availability, and kitchen capacity. Here's an overview of our production
cycles and schedule:

1. Menu Planning: Our menu is designed to offer a diverse range of dishes that showcase the best flavors
from around the world while incorporating locally sourced ingredients. Our chefs collaborate to create
seasonal menus that highlight fresh, seasonal produce and innovative culinary techniques.

Arman's Café Chronicles: A Journey Through Flavor and Culture – April 2024 18
 2. Ingredient Sourcing: We prioritize the use of fresh, locally sourced ingredients in our dishes. Our
procurement team works closely with local farmers, fishermen, and suppliers to ensure that we have access
to the highest quality ingredients for our menu.

3. Preparation: Our kitchen team follows standardized recipes and preparation techniques to ensure
consistency and quality in our dishes. Ingredients are carefully measured, chopped, and prepped according
to the menu requirements, ensuring that each dish is prepared to perfection.

4. Cooking: Our chefs oversee the cooking process, ensuring that each dish is cooked to the optimal
temperature and texture. We utilize a variety of cooking methods, including grilling, sautéing, and baking,
to achieve the desired flavors and textures in our dishes.

5. Plating: Presentation is an important aspect of our dining experience, and our kitchen team takes great care
in plating each dish beautifully. We believe that a well-presented dish enhances the overall dining
experience and adds to the enjoyment of our guests.

6. Service: Once the dishes are prepared and plated, our front-of-house team takes over to ensure that each
dish is served promptly and with care. Our servers are trained to provide attentive and friendly service,
ensuring that our guests have a memorable dining experience.

7. Quality Control: Throughout the production process, our kitchen team conducts regular quality checks to
ensure that each dish meets our high standards. Any issues or discrepancies are addressed immediately to
maintain the quality and consistency of our offerings.

Repeat
Serve
Prepare

Process flow chart of CAFE.

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Arman's Café Chronicles: A Journey Through Flavor and Culture – April 2024 20
Machinery, Equipment and other Fixed Capital
Fixed capital requirement of CAFE
Price per Unit Total Cost Mode of Year to Estimated
Tool/Equipment Quantity (PHP) (PHP) Acquisition Purchase Life-span

Commercial
Refrigerator 2 50,000 100,000 Purchase 2024 10 years

Espresso Machine 1 80,000 80,000 Purchase 2024 5 years

Industrial Oven 1 60,000 60,000 Purchase 2024 8 years

Food Processor 1 10,000 10,000 Purchase 2024 5 years

Dishwasher 1 30,000 30,000 Purchase 2024 8 years

Tables and Chairs - - 50,000 Purchase 2024 10 years

POS System 1 20,000 20,000 Purchase 2024 5 years

Kitchen Utensils - - 20,000 Purchase 2024 5 years

Total - - 370,000 - -

Supplies and Materials

Supplies and materials requirement for CAFE
Materials/Supplies Quantity Price per Unit (PHP) Total Cost (PHP)

Fresh Produce Various 5,000 (per week) 20,000

Meat and Seafood Various 8,000 (per week) 32,000

Dairy Products Various 3,000 (per week) 12,000

Baking Ingredients Various 2,500 (per week) 10,000

Beverages Various 4,000 (per week) 16,000

Cleaning Supplies Various 1,500 (per month) 1,500

Arman's Café Chronicles: A Journey Through Flavor and Culture – April 2024 21
Materials/Supplies Quantity Price per Unit (PHP) Total Cost (PHP)

Disposable Utensils Various 2,000 (per month) 2,000

Packaging Materials Various 1,000 (per month) 1,000

Condiments and Spices Various 3,500 (per month) 3,500

Arman's Café Chronicles: A Journey Through Flavor and Culture – April 2024 22
Labor Requirement
Labor requirement for PRODUCTION PROCESS.
Total
Type of Number of Number of Total Payment per Unit Cost
Activity Labor Individuals Days Labor (PHP) (PHP)

Food
Preparation MD 3 30 90 MD 500 45,000

Cooking MD 2 30 60 MD 500 30,000

Plating MAD 4 30 120 MAD 300 36,000

Cleaning MMD 2 30 60 MMD 250 15,000

Total - - - - - 126,000

Production Lay-out

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Café Sketch

Production lay-out of CAFE

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 Financial Plan
The financial plan for Arman's Café Chronicles outlines the budget, revenue projections, and financial
strategies to ensure the profitability and sustainability of the business. In this section, we will detail our
startup costs, sales forecasts, operating expenses, and funding sources. By carefully managing our
finances and implementing sound financial strategies, we aim to achieve our business goals and maximize
returns for stakeholders..

Sales Projection

Projected sales of the enterprise per month or cycle.

Item Jan Feb Mar Apr May June July Aug Sept Nov Dec TOTAL
Coffee 25,0 28,0 30,0 32,0 35,0 38,0 40,0 42,0 39,0 36,0 33,0 378,000
00 00 00 00 00 00 00 00 00 00 00
Pastries 15,0 16,0 18,0 20,0 22,0 24,0 25,0 26,0 24,0 22,0 20,0 236,000
00 00 00 00 00 00 00 00 00 00 00
Breakfast 20,0 22,0 24,0 26,0 28,0 30,0 32,0 34,0 32,0 30,0 28,0 306,000
00 00 00 00 00 00 00 00 00 00 00
Lunch 30,0 32,0 35,0 38,0 40,0 42,0 45,0 48,0 45,0 42,0 40,0 437,000
00 00 00 00 00 00 00 00 00 00 00
Dinner 35,0 38,0 40,0 42,0 45,0 48,0 50,0 52,0 49,0 46,0 44,0 489,000
00 00 00 00 00 00 00 00 00 00 00
Beverage 18,0 20,0 22,0 24,0 26,0 28,0 30,0 32,0 30,0 28,0 26,0 288,000
s 00 00 00 00 00 00 00 00 00 00 00

Projected annual sales of the enterprise.

Item Year 1 Year 2 Year 3
Coffee PHP 1,200,000 PHP 1,350,000 PHP 1,500,000
Pastries PHP 800,000 PHP 900,000 PHP 1,000,000
Breakfast PHP 1,000,000 PHP 1,100,000 PHP 1,200,000
Lunch PHP 1,500,000 PHP 1,650,000 PHP 1,800,000
Dinner PHP 1,800,000 PHP 1,950,000 PHP 2,100,000
Beverages PHP 700,000 PHP 750,000 PHP 800,000
Total PHP 7,000,000 PHP 7,700,000 PHP 8,400,000

Cost Projection
Pre-operating expenses of the enterprise.
Items Amount (PHP)

Rental Deposit 50,000

Arman's Café Chronicles: A Journey Through Flavor and Culture – April 2024 25
Items Amount (PHP)

Renovation and Interior Design 200,000

Equipment Purchase 300,000

Licenses and Permits 20,000

Marketing and Promotion 30,000

Initial Inventory 50,000

Staff Training 10,000

Other Miscellaneous Expenses 20,000

Total Pre-operating Expenses 680,000

Production expense of the enterprise.

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Marketing expense of the enterprise.

Administrative expense of the enterprise.

Arman's Café Chronicles: A Journey Through Flavor and Culture – April 2024 27
Source of Capital

Sources of funds for the enterprise.

Item Total Expense Equity (PHP) Debt (PHP)

Principal Principal

Pre-Operating Expense PHP 680,000 PHP 380,000 PHP 300,000

Arman's Café Chronicles: A Journey Through Flavor and Culture – April 2024 28
Projected Income Statement

Projected Cash Flow Statement

Items Pre-Operation Year 1 Year 2 Year 3

Cash Inflow

PHP
- Beginning cash balance PHP 0 PHP 100,000 PHP 200,000 300,000

- Loan proceeds PHP 500,000 PHP 0 PHP 0 PHP 0

- Owner’s equity PHP 180,000 PHP 0 PHP 0 PHP 0

PHP
- Cash sales PHP 0 PHP 500,000 PHP 600,000 700,000

- ADD: Collection from receivables PHP 0 PHP 0 PHP 0 PHP 0

PHP
- Total cash inflow PHP 680,000 PHP 600,000 PHP 800,000 1,000,000

Cash Outflow

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Items Pre-Operation Year 1 Year 2 Year 3

- Pre-operating expenses PHP 680,000 PHP 0 PHP 0 PHP 0

PHP
- Production expense (excluding depreciation) PHP 730,000 PHP 801,000 PHP 872,000 900,000

PHP
- Marketing expense (excluding depreciation) PHP 210,000 PHP 190,000 PHP 190,000 200,000

PHP
- Administrative expense (excluding depreciation) PHP 604,000 PHP 617,000 PHP 630,000 650,000

- Financial expense PHP 0 PHP 0 PHP 0 PHP 0

PHP
- Total cash outflow PHP 2,224,000 PHP 1,608,000 PHP 1,692,000 1,750,000

PHP -
Net Cash Flow PHP -1,544,000 PHP -1,008,000 PHP -892,000 750,000

Projected Balance Sheet

Items Pre-Operation Year 1 Year 2 Year 3
Assets
Current assets
PHP
- Cash PHP 0 PHP 100,000 PHP 200,000 300,000
- Account receivable PHP 0 PHP 0 PHP 0 PHP 0
PHP
- Total current assets PHP 0 PHP 100,000 PHP 200,000 300,000
Non-current assets
PHP
- Fixed assets less depreciation PHP 0 PHP 500,000 PHP 600,000 700,000
PHP
- Total non-current assets PHP 0 PHP 500,000 PHP 600,000 700,000
PHP
TOTAL ASSETS PHP 0 PHP 600,000 PHP 800,000 1,000,000

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Break-Even Analysis
To conduct a break-even analysis, we need to determine the point at which total revenue equals total costs, resulting
in neither profit nor loss. The formula for break-even point (BEP) in units is:

BEP=SellingPriceperUnit−VariableCostperUnitFixedCosts

Break-Even Analysis Year 1

Fixed Costs PHP 680,000

Selling Price per Unit PHP 50

Variable Cost per Unit PHP 30

Break-Even Point (units) 680,00050−30=680,00020=34,00050−30680,000=20680,000=34,000

BEPrevenue=BEPunits×Selling Price per Unit

Break-Even Analysis Year 1

Break-Even Point (units) 34,000

Selling Price per Unit PHP 50

Break-Even Point (revenue) 1,700,00034,000×50=PHP1,700,000

So, the break-even point in terms of revenue for Year 1 is PHP 1,700,000.

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Risk Management

Risks Solution

Production and Conduct thorough research and development, invest in quality equipment and technology,
Technical Risk implement regular maintenance schedules, and hire skilled technicians.

Diversify marketing channels, conduct market research to understand customer needs and
Marketing and Price preferences, offer competitive pricing strategies, and adapt marketing strategies based on
Risk feedback and market trends.

Maintain a contingency fund for unexpected expenses, regularly monitor financial

performance, maintain good relationships with lenders and investors, and implement effective
Financial Risk financial management practices.

Stay compliant with regulations and laws, maintain transparency in business operations, build
strong relationships with regulatory bodies and industry associations, and seek legal counsel
Institutional Risk when necessary.

Invest in employee training and development, implement safety protocols in the workplace,
Human and Personal provide adequate health and wellness benefits, foster a positive work culture, and have
Risk succession plans in place.

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