“IBANG KLASENG KAPE PARA

SA IBANG KLASENG IKAW!”

 Introduction
o Manong Kape is a condo-grown coffee-making hobby turned into
business because of its necessity in our community. In a matter
of 6 months, without aid of marketing or physical store, our
hobby turned into business accumulated about 2000 to 3000
pesos in sale per day with about 6 hours of operation time. This
unexpected need for our product gave us the idea to open a
physical store in the heart of UBELT and also because we have a
target market in mind that could work with our product. Our
confidence with our product is absolute since it can overly
compete with its competitors who have their physical store in our
community. With the partnership that can make this expansion
work, we ought to make the best kind of growth possible since
we strategically picked the location and on how the marketing
will work.
 Value Proposition
o Manong Kape’s quality of coffee and non-coffee sets a standard
to modern coffee shop drinks. With our premium ingredients and
trained barista, we have given above satisfactory service to
customers in our community. Because of our growth in the recent
 weeks and months, we have set to open our physical store and
make do of talent for good and satisfying service.

o In order for the expansion to be successful, we ought to renovate

our chosen commercial space that is located in the compound of
“Gota De Leche”. The estimated floor area of this space is 120
sqm.

Since the target location of Manong Kape doesn’t have any

coffee shop along it, it set as a very profitable location for a
coffee shop business. Also, Gota De Leche compound have its
own parking lot that can be beneficial to customers who have
their own vehicle. We can also use this in attracting customers
who came to Manong Kape because of its instagramable
ambiance and aesthetic environment.

 Market Analysis
o Location and Nearby Establishments
 The target location for Manong Kape’s is very strategic.
With educational establishments, dormitories, commercial
buildings around it, there is a lot of customers to go
around. Shown below is the location and the nearby

establishment for Manong Kape:

 Notable nearby establishments to Manong Kape’s target
location includes review centers, schools, and dormitories.
Mainly the primary target consumer of Manong Kape’s
products is expected to be coming from UE Manila.

As per google UE Manila has approximately 35,000

undergraduates as of February 29, 2024. Shown below is
one of the entrances/exits to UE Manila:
 o Other notable establishments are listed below with its estimated
corresponding students.
 Prime Review Center – 800 to 1200 students
 Review Innovations – 4000 to 4500 students
 Excel First Review and Training Center Inc. – 1400 to 1800
students
 Megareview and Tutorial Center – 1000 to 1500 students
 FEU Group of Schools (FEU Manila and FEU Institute of
Technology) – estimated to be 55,000 students
 Demographics
o The primary target of Manong Kape are students from UE
Manila/FEU, reviewees from Review Innovations, Megareview and
Tutorial Center, Excel First Review Center, Prime Review Center,
Smart Edge Review, Alcorcon Review Center, and many more
review centers within UBELT that is walking distance to Manong
Kape. To strengthen our confidence with the location that we
have chosen, we have made a survey comprising of 738
respondents from the notable establishments listen above. Kindly
see the tabulated results indicated below:
Question Answer 1 Answer 2 Answer 3 Answer 4
Where are you most At home School Coffee Others
comfortable (212) (91) Shop (372) (63)
studying?
Where do you At home Mall Coffee Others
usually have your (147) (281) Shop (46)
free time? (264)
How much is your Above 500 300-500 300-200 Below
daily allowance? (336) (321) (52) 200
(29)
How much do you Above 200 150-200 130-150 Below
normally spend for (183) (312) (202) 130
a coffee/non-coffee (41)
of your choice
How many times do More than 3 3 times 2 times 1 time
you buy coffee in a times (183) (216) (91)
week? (248)
Best time to go to a Morning Afternoon Evening Anytime
coffee shop? (117) (308) (256) (57)
Why do you go to a The Their food Student- Others
coffee shop aside ambiance (163) friendly (103)
from their coffee? (264) environme
nt
(208)

From the respondents above:

 297 are from UE Manila
 112 are from FEU
 329 are from Various Review Centers

 Product or Service Details

o Currently Manong Kape is only offering coffee and non-coffee
products but we have venture to expand our menu since we
ought to go with a physical store.

 Financial Projections
o With the investment of 1.5-2 million, we ought to give 25% to
30% ownership of Manong Kape to our receiving partner.
o Below is the list of average price per cup and food vs its
corresponding average selling price as per careful estimate:
Food or Drink Ingredient cost Selling Price
Coffee ₱71.50 ₱140.00
Non-coffee ₱63.75 ₱140.00
Croffle Sandwich ₱55.00 ₱150.00
Croissant Sandwich ₱50.00 ₱140.00
French Toast ₱35.00 ₱80.00
Carbonara ₱75.00 ₱150.00
Spaghetti ₱80.00 ₱160.00
Pinoy Spiral Pasta ₱80.00 ₱160.00
Cakes ₱500.00 ₱900.00

o The target number of cups/drink to be served per day for the

initial month is 150 and 30% of that is estimated to order food.
For a 12-hour operation, the target number of orders for drinks is
 estimated to be 12.5 cups per hour. Indicated below is the
sample computation for a 12-hour operation, 8AM to 8PM.
Item Average Target No. of Estimated Gross
Selling Price Items per Day Sale per item
Coffee ₱140.00 80 ₱11,200.00
Non-Coffee ₱140.00 70 ₱9,800.00
Food – 30% ₱145.00 45 ₱6,375.00
(3 out of 10
customers)
Estimated Target Gross Sale per Day ₱27,375.00
Estimated Target Gross Sale per Week (6-day ₱164,250.00
workweek)
Estimated Target Gross Sale per Month (4 weeks) ₱657,000.00

o The projected increase in sales per month is 5%. Shown below is

the target gross sale per month as per 5% increase.
Month Target Monthly Gross Target No. of
Sale Cups
1 ₱657,000.00 150
2 ₱689,900.00 158
3 ₱724,400.00 166
4 ₱760,500.00 174
5 ₱798,600.00 183
6 ₱838,600.00 192
7 ₱880,500.00 202
8 ₱924,500.00 212
9 ₱970,700.00 222
10 ₱1,019,300.00 233
11 ₱1,070,200.00 245
12 ₱1,123,700.00 260

o For the Initial month’s estimated expenses, we include the

ingredients & packaging, rental, machine maintenance,
employee’s salary, utilities, and accidental operational cost.
Item Estimated Monthly Cost
Ingredients & packaging (with 20% ₱313,200.00
buffer)
Rental ₱50,000.00
Machine Maintenance ₱2,000.00
Employees (3 to 4) ₱35,000.00
Utilities (Electricity, Water, Internet) ₱25,000.00
Total ₱425,200.00
 Note: Ingredients, packaging, and utilities are variable cost on
this since we projected an increase in sales of 5% per month.

o Shown below is the estimated net sales per month up to 2 years

of operation:
Month Target Monthly Partner’s Estimated
Net Sale Return per Month (25% of Net
Sales)
1 ₱235,200.00 ₱58,850.00
2 ₱252,770.00 ₱63,192.50
3 ₱271,008.50 ₱67,752.13
4 ₱290,158.93 ₱72,539.73
5 ₱310,266.87 ₱77,566.73
6 ₱331,380.21 ₱82,845.05
7 ₱353,549.23 ₱88,387.31
8 ₱376,826.69 ₱94,206.67
9 ₱401,268.02 ₱100,317.01
10 ₱426,931.42 ₱106,732.86
11 ₱453,877.99 ₱113,469.50
12 ₱482,171.89 ₱120,542.97
Estimated Total for 12 Months ₱1,046,402.44
Operation
Estimated Total for 24 Months ₱3,192,998.60
Operation

 Rental Terms
o As per meeting with the lessor, they are willing to increase rent
pricing to a maximum of 5% every 2-year contract. Increase in
rent every renewal can be waived as per request of the lessee
and approval of the lessor. Contract is renewable and years of
stay can be changed as per lessor-lessee agreement.
 Building’s Structural Integrity and Permitting
o All building plans and documents needed for business permitting
will be provided by the lessor. As per the building’s structural
integrity, all supporting documents of its functionality and
business-ready nature will be provided by the lessor.
 Team
o Barista/Cashier
o Marketing/Public Relations
o Cook and Barista/Server
o Cashier/Server
 o Dishwasher (If we go from disposable utensils/cups/plates to
glasswares)
Note: For cleaning and sanitary concerns, the team will take turns in making
sure that Manong Kape is comfortable at its highest.