KOLEHIYO NG SUBIC

WFI Compound, Wawandue, Subic

Zambales, Philippines

I. Executive Summary

Business Overview

Consumer interest in the coffee house business is sweeping the country. C&V Café
House will be a one-of-a-kind coffee house / café located in Olongapo City. With its wide range
of coffee and pastry goods, C&V Cafe House hopes to attract a regular and loyal client base.
C&V Cafe House will create a welcoming, pleasant environment in which customers may enjoy
high-quality cuisine, service, and entertainment at a fair price. Customers will have a range of
options at the coffee shop. Breakfast, lunch, and supper will be served at C&V Cafe House.
While the menu will be small and simple, the time and attention given to everything they will
serve makes C&V Cafe House truly unique when looking for quality coffee. Their exceptional
customer service will allow for customers coming back and allowing them to develop a strong
reputation with its clients.
C&V Cafe House will be operated as a Partnership. C&V Café House is a café business
managed by two partners. The partners will provide funding from their own savings, which will
cover start-up expenses and provide a financial cushion for the first months of operation.
Funding for the company comes from two major sources–owners’ investments. Two major
owners, Cathlyn Joyce Galang and Vanessa San Jose, have contributed ₱260,000 and ₱240,000
respectively, with a total amount of ₱500,000 which falls into the category of small business.
We are aware that coffee bars easily attract intellectuals and business people and we also
know that the shopping mall is one of the places where one can easily tie down these set of
people- especially. That is the reason why we have decided to start the first outlet of our coffee
shop in Olongapo City.
The mission of C&V Café House is dedicated to its food products and staff, believing
that this is the key for market success and will provide a higher quality light fare with the
emphasis on coffee-based products but affordable.
Our vision is to be the world's top cafe shop and provider of gourmet coffees and food
service goods by providing the guiding values of integrity, quality, service, and relationship.
These core beliefs start with their commitment to their products and their employees. The C&V
Café House rewards excellence and cherishes loyalty. The café will work with its employees to
build strong businesses and a secure future.
The business's goals are to make a good living and to establish a business and working
environment where both the client and the employee are treated with decency and respect.
KOLEHIYO NG SUBIC
WFI Compound, Wawandue, Subic
Zambales, Philippines

II. Description of Business

C&V Cafe House will be operated as a Partnership. C&V Café House is a café business
managed by two partners. The partners will provide funding from their own savings, which will
cover start-up expenses and provide a financial cushion for the first months of operation. We are
aware that coffee bars easily attract intellectuals and business people and we also know that the
shopping mall is one of the places where one can easily tie down these set of people- especially.
That is the reason why we have decided to start the first outlet of our coffee shop in Olongapo
City.
The appearance of the shop will also be vital; therefore, some consideration should be
given to appropriate fixtures and fittings. A laid-back vibe will be emphasized in the building's
interior design. The walls will have an eggshell white upper portion and a forest green lower
portion. Forest green carpeting will be used. Custom-made light oak will be used to make the
table and chairs. The chair covers will be comfortable and made of a forest green cloth with lots
of padding. The table tops will be laminate in a forest green marbleized finish.
The ability to linger is an obvious, yet important, component of the coffee shop's social
atmosphere. Typically served towards the conclusion of a meal, once a beverage has been
ordered in a coffee shop, customers are usually free to stay as long as they desire. The regulars
who come in and linger have a large impact on the social environment of the coffee shop.
Although the management's attitude may impact much of the drive for lingering, friendliness.
There are physical traits that contribute to the employees and clients, as well as other social
qualities to persistent behavior. Seating that is comfortable, seating that may be readily relocated
to provide room for talks or groups, sufficient lighting for reading and communicating with
people, as well as good environmental situations. Acoustics, music, fragrance, and vistas all
contribute to people staying and spending more time at coffee shops.

III.Market Analysis
Philippines coffee consumption has shown steady growth, with gourmet coffee having the
strongest growth. Coffee drinkers in the Olongapo City are among the most demanding ones.
They favor well-brewed gourmet coffee drinks and demand great service. Olongapo City, with
its liberal and outgoing populace, has traditionally been a great place for coffee establishments.
C&V Café House will strive to build a loyal customer base by offering a great tasting coffee in a
relaxing environment of its coffee shop.

SWOT ANALYSIS

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KOLEHIYO NG SUBIC
WFI Compound, Wawandue, Subic
Zambales, Philippines

The SWOT analysis examines the café’s strengths and weaknesses that need to be addressed.
Further, this section examines the opportunities presented to Café as well as potential threats.
I. Strengths
 Based on its smaller size, the fact that it is not a franchise, the C&V Café House is a
unique coffee shop concept.
 The owners have firsthand experience, in operating and starting new restaurants.
 Handpicked baristas will bring professionalism and enthusiasm to the shop.
II. Weaknesses
 Franchises are the easiest way and often the safest conduit to start a café; the café
will not have the backing of one of these established entities.
 The C&V Café House has a minimal budget and is competing against larger and
more established coffeehouses for market share.
III. Opportunities
 The Olongapo City demographics support the need for a unique coffee shop.
 Additional opportunities to target the active and recently retired target market and
45 years+ age group.
IV. Threats
 Larger organizations. Larger organizations could possibly realize the
opportunities that can be found in the local region and begin entering the market.
While this is a threat, the founder believes that with strategic marketing,
community efforts and customer service, this threat can for the most part be
mitigated.
Market Segmentation
C&V Café House will focus its marketing activities on reaching the students and faculty,
people working in offices located close to the coffee bar and on sophisticated teenagers. Our
market research shows that these are the customer groups that are most likely to buy gourmet
coffee products. Since gourmet coffee consumption is universal across different income
categories and mostly depends on the level of higher education will provide access to the
targeted customer audience.
The table below outline the total population (in number of customers) in Olongapo City
year 2020.

Population in Olongapo City Number Percentage

Female 117,029 45%

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KOLEHIYO NG SUBIC
WFI Compound, Wawandue, Subic
Zambales, Philippines

Male 117,792 55%

Total 260,317 100%

Market Trends
If you are conversant with coffee business in the Philippines, you will quite agree that
coffee consumption has shown steady growth over the years and from all indication, the growth
is not going to plummet anytime soon. Coffee addicts would always go out of their way if
possible to stop by a coffee shop to have a hot cup of coffee. Typically, sales of coffee triple
during winter season and in most cases small coffee bars struggle to meet the demand for coffees
during this period. Over and above, those who run coffee shops don’t struggle to attract clients,
especially if they are well positioned.
However, the idea of the ideal and prosperous coffee shop isn’t just about being well
positioned; it is also about offering professional services that is able to cause an indifferent
potential customer into a repeat and loyal coffee consumer.

IV. Competitive Analysis

C&V Café House’s competitive edge is the relatively high level of competition in the
local area in this particular niche. Some of the competitors of café businesses located in
Olongapo City are Xtremely Xpresso Café and Starbucks.
Xtremely Xpresso Café’s mission is to impart the European impression by providing
excellent food and quality service for their customers at reasonable value. This is their number
one priority in which results will give their efforts a sense of purpose and meaning beyond their
basic financial goals. It offers an extensive menu for locals and visitors, alike. A collection of
moderately-priced Italian Fusion and American Fusion, complimented with a warm, friendly
welcome will satisfy that “night-out” you’ve always been promising yourself and family.
Starbucks’ mission is to inspire and nurture the human spirit – one person, one cup, and
one neighborhood at a time. Today, with more than 30,000 stores in more than 75 markets,
Starbucks is the premier roaster and retailer of specialty coffee in the world. And with every cup,
we strive to bring both our heritage and an exceptional experience to life. It has always been, and
will always be, about quality. Starbucks are passionate about ethically sourcing the finest coffee
beans, roasting them with great care, and improving the lives of people who grow them.
Starbucks care deeply about all of this; their work is never done.
C&V Café House offers several advantages over its competition. Those advantages are:
 Exceptional customer service and focus: The owners of C&V Café House pride themselves
to being on location every day and getting to know the majority of their clientele. They

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KOLEHIYO NG SUBIC
WFI Compound, Wawandue, Subic
Zambales, Philippines

believe when customers receive this type of individualized focus, the customers come
back.
 Fresh, local coffee: C&V Café House commits to only serving coffee roasted locally in
Olongapo City. The freshness and authentic taste help make the coffee offered
exceptional and superior to the competition.
 Tech Friendly locations: Free internet, multiple outlets for laptops and tablets, and a
digitalized menu and ordering system are benefits that their target clientele gravitate
towards.

V. Description of Organization
C&V Café House will be operated as Partnership. Private investors will be present. These
investors, however, will be silent investors with a three-year payback period. These investments
will be reimbursed in equal amounts twice a year, including interest. Overall management will be
the responsibility of the two partners.

Partners
As partners, Cathlyn Joyce Galang and Vanessa San Jose brings to C&V Café House an
extensive and varied background. They are both Certified Public Accountants and both have
professional experience in terms in managing and any financial related in business.
(1) General Manager
Qualifications

 This position is currently vacant. The role requires at least three years of restaurant
experience, with at least one of those years in a supervisory capacity. A bachelor's
degree in hotel and restaurant management is preferable. The candidate for this
position will be required to submit a resume and verifiable references. The partners
will interview and employ the individual.
Job Description
 The general manager will report directly to the owner They will be in charge of
overseeing the whole team. They will order supplies, keep inventory, handle client
complaints, and schedule employees in collaboration with the owner. Other
responsibilities would include maintaining enough employee coverage for all shifts
and reporting to the owner.

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KOLEHIYO NG SUBIC
WFI Compound, Wawandue, Subic
Zambales, Philippines

(2) Baristas
Qualifications

 Previous work experience as a Barista or Waiter/Waitress

 Hands-on experience with brewing equipment
 Knowledge of sanitation regulations
 Flexibility to work various shifts
 Basic math skills
 Ability to gauge customers’ preferences
 Excellent communication skills
 High school diploma; relevant training is a plus

Job Description
 A barista is a professional who prepares and serves coffee, tea, and other specialty
drinks. They are in charge of receiving orders and payments from customers. They
also clean and disinfect their work areas, seating places, and tools.

(3) Back of House / Kitchen Staff

Qualifications

 The role requires at least five years of restaurant experience, with at least two of
those years in work in a kitchen staff bachelor's degree in culinary arts is preferable.
The candidate for this position will be required to submit a resume and verifiable
references. The partners will interview and employ the individual.

Job Description
 Kitchen staff report directly to the Store Manager or Back of House Supervisor,
and are responsible for the preparation and creation of all baked  goods,
sandwiches, salads, and other foods within the shop. 

Rate per hour Salary per day Monthly Salary Annual Salary
General Manager ₱ 150 ₱ 1,500 ₱ 36,000 ₱ 432,000
Baristas ₱ 56.60 ₱453.00 ₱ 13,590 ₱ 167,400
Kitchen Staff ₱ 56.60 ₱453.00 ₱ 13,590 ₱ 167,400

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KOLEHIYO NG SUBIC
WFI Compound, Wawandue, Subic
Zambales, Philippines

VI. Description of Product/Services

Customers will have a variety of options at the cafe. All varieties of coffee and tea will be
available. Espresso, latte, americano, black coffee and machiato are among the coffee options.
The teas will include flavored and English varietals.
Food servers will distribute the product in the café. Except for some baked goods, the
meals will be prepared on-site. Croissants, donuts, and other baked goods will be available for
breakfast. A selection of cold soups will be available in the summer. A wide variety of snacks
will also be available at C&V Café House.

VII. Marketing Plan

Marketing Strategy of C&V Café House analyses the brand with the marketing mix
framework which covers the 4Ps (Product, Price, Place, Promotion). There are several marketing
strategies like product innovation, pricing approach, promotion planning etc. These business
strategies, based on C&V Café House marketing mix, help the brand succeed in the market.

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KOLEHIYO NG SUBIC
WFI Compound, Wawandue, Subic
Zambales, Philippines

Brand & Value Proposition

C&V Café House will offer the unique value proposition to its clientele:
 Convenient locations located in technology hubs and business parks in Austin.
 Technology-friendly shops that accompany its exceptional customer service.
 Delicious and well-crafted coffee beverages and baked goods.

C&V Café House Product Strategy

C&V Café House is one of the most popular coffee chain outlets globally. C&V Café
House sells coffee, beverages & snacks as its main product offering in its marketing mix. The
company offers a lot of variants and flavors in coffee. Most famous offering of C&V Café House
are: Cappuccino, Latte, Flat white, Americano, Mocha, Expresso etc. Some of the ice blended
products offered by costa coffee are: coffee cream, Mocha cream Frostino, Lemonade etc. The
product offered by costa coffee is the main driver in company’s business strategy as it uses a pull
strategy to gather more customers and be liked by them. The company believes in giving wow
moments to its customers with its main product coffee.

C&V Café House Price/Pricing Strategy

C&V Café House has a diverse price offering in its marketing mix, though it is
influenced by competition and is slightly premium.
The products offered by C&V Café House are priced at premium range because of its
brand value and high quality. C&V Café House always believes that price is secondary for any
customer and focuses on delivering good quality products. The company provides two variants in
its beverages like small and large. The price is also directly proportional to the quantity ordered.
The price of coffee also varies according to the supplement added to coffee like extra chocolate,
cream etc. The pandemic impacted the sales as stores were shut down, but were later opened for
takeaways.

C&V Café House Place Strategy

C&V Café House outlet is mainly targeted at upper middle class and rich people. Its
outlet can be found mainly in the house of one of the owners located near shopping malls. where
there is high footfall. C&V Café House also modifies its menu according to the location in which
it operates to gain more customer base. The C&V Café House website also allows its users to
place orders online which can be delivered via a delivery partner in that region.

C&V Café House Promotions Strategy

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KOLEHIYO NG SUBIC
WFI Compound, Wawandue, Subic
Zambales, Philippines

C&V Café House is a premium brand which does not rely much on advertisement on TV,
print media etc. The most important marketing strategy followed by the business is to get word
of mouth publicity from its customers as the brand C&V Café House not just provides coffee but
also the experience. Also, as a part of its promotional strategy of new products the business
provides free samples to its customers to get the review about product and increase it purchase
intention. C&V Café House also focuses on digital media to promote its campaigns and connect
to its customers. Also, C&V Café House uses its logo on the cups that are served to the
customers.

Target Market
When it comes to selling coffee, there is a wide range of people that consume coffee and
we don’t intend to place restrictions on the type of customers that we intend attracting to our
coffee bar. The C&V Café House will appeal to working professionals in the building and
surrounding area. Members of this market segment dine out or purchase coffee-based drinks on a
regular and often daily basis. Professionals over the age of 25 make up the majority of the market
category.

Market Needs
Our primary customer's needs are not currently being satisfied in the space that is already
occupied. These requirements include a casual upmarket setting that promotes relaxation,
indulgence, and an escape from the daily grind, as well as offering a great product at an
accessible price. Lunch options will be distinctive and reasonably priced. Our primary clientele
is well-educated and eager to try new things. Keeping the menu choices "fresh" will continue to
be a struggle for the company. Segments of the target demographic frequently dine out and visit
coffee shops. They like comfortable, cheap locations and return to destinations that provide
familiar landscape with fresh twists.

VIII. Sales Plan

We will be offering counter service in a professionally designed, cozy, inviting interior
space. Interior seating will be a mix of smaller individual tables for intimacy, and longer, bench-
style ones for larger groups. We intend to be open from 6:30 a.m. – 9:00 p.m. on weekdays, and
7:00 a.m. – 9:00 p.m. on weekends. In addition to cash, credit, and debit, we also will be
accepting Gcash for purchases.

Sales Strategy

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KOLEHIYO NG SUBIC
WFI Compound, Wawandue, Subic
Zambales, Philippines

The trained baristas will handle the sales transactions. To speed up the customer service, at
least two employees will be servicing clients–while one employee prepares the customer’s order,
the other one will take care of the sales transaction. All sales data logged on the computerized
point-of-sale terminal will later be analyzed for marketing, Cost of Sale, and volume purposes.
In order to build up its client base, C&V Café House will use banners, fliers, postcards and
other advertising, utilize customer referrals and cross-promotions with other businesses in the
community. At the same time, we will use customer retention programs like drink punch-cards to
make sure the customers are coming back and spending more at the coffee bar.
Sales tactics
Servers will always ask the customer if they want added items, i.e. specialty coffee, soup
with the sandwich, appetizers, and dessert. This will not only increase sales for the business but
will also increase the amount of money the server makes. Most people tip according to a
percentage of the check. The higher the check the greater the tip. The server can control their
own income.
All tables also will have "table tents" or advertisements. The tents will describe upcoming
events. Also, pictures and descriptions of items for sale, such as micro-brewed beers, desserts,
etc., will be on the tents. The menus will provide detailed descriptions of the items available,
including a section describing the different types of beers available. For example, the chili beer.

Sales Programs
 Internet Coupons – As customers come into the store, they will ask if they’d like to put
their name on the internet mailing list. Once added, these customers will receive special
“internet only” solicitations for discounts and specials, as well as a calendar of events.
 Community Based Programs – C&V Café House will partner with community
organizations, schools, and churches to provide unique offerings which strengthen the
community and provide sales for the store.
 Direct Mailing – C&V Café House will periodically mail special product offerings to
people in the 2200 zip code. This promotion will also be used to announce the Grand
Opening of C&V Café House.

IX. Funding Details

The start-up expenses include an estimated ₱52,500 consisting of several items:
 Legal expenses for obtaining licenses and permits as well as the accounting services
totaling ₱15,000.

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KOLEHIYO NG SUBIC
WFI Compound, Wawandue, Subic
Zambales, Philippines

 Insurance (general liability, workers’ compensation and property casualty) coverage at a

total premium of ₱7,500.
 Premises remodeling in the amount of ₱10,000.
 Other start-up expenses including website (₱4,000) and phone and utility deposits
(₱3,500).
 Marketing promotion expenses for the grand opening of C&V Café House in the amount
of ₱3,500 and as well as flyer printing (2,000 flyers at ₱2.00 per copy) for the total
amount of ₱4,000.
 Consultants’ fees of ₱5,000 paid to ABC Espresso Services for the help with setting up
the coffee bar.
These expenses will be incurred before launch, so they take their place in our financial
projections as negative retained earnings of ₱43,500 at the end of the month before we begin.
That number shows up in the balance sheet.

The required start-up assets of ₱447,500 include:

 Cash in bank in the total amount of ₱304,100, which includes enough to cover employees and
owner’s salaries for the first two months and cash reserves for the first three months of operation.
 Start-up inventory of ₱28,300, which includes:
 Coffee beans (12 regular brands and five decaffeinated brands) – ₱12,000
 Coffee filters, baked goods, salads, sandwiches, tea, beverages, etc. – ₱10,900
 Retail supplies (napkins, coffee bags, cleaning, etc.) – ₱3,860
 Office supplies – ₱1,540
 Equipment for the total amount of approximately ₱115,100:
 Espresso machine – ₱12,000
 Coffee maker – ₱6,500
 Coffee grinder – ₱4,000
 Food service equipment (microwave, toasters, dishwasher, refrigerator, blender, etc.)
– ₱30,000
 Storage hardware (bins, utensil rack, shelves, food case) – ₱5,750
 Counter area equipment (counter top, sink, ice machine, etc.) – ₱21,500
 Serving area equipment (plates, glasses, flatware) – ₱4,000
 Store equipment (cash register, security, ventilation, signage) – ₱13,750
 Office equipment (PC, fax/printer, phone, furniture, file cabinets) – ₱12,600
 Other miscellaneous expenses – ₱5,000

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KOLEHIYO NG SUBIC
WFI Compound, Wawandue, Subic
Zambales, Philippines

Sources of Funds
Funding for the company comes from two major sources–owners’ investments. Two major
owners, Cathlyn Joyce Galang and Vanessa San Jose, have contributed ₱260,000 and ₱240,000
respectively, with a total amount of ₱500,000.

X. Financial Projection
Financial Statements
 Projected Statement of Comprehensive Income

C&V Café House

Projected Statement of Comprehensive Income
2023 2024 2025
Revenue ₱ 1,891,200 ₱ 2,105,000 ₱ 2,675,540
Expenses 1,107,080 1,305,750 1,568,880
Net Income ₱ 784,120 ₱ 799,250 ₱ 1,106,660

 Historical Analysis

C&V Café House

Projected Statement of Comprehensive Income - Analysis
2023 – 2024
2024 2023 Increase/Decrease Percentage (%)
Revenue ₱ 2,105,000 ₱ 1,891,200 ₱ 213,800 0.11304991539
Expenses 1,305,750 1,107,080 198,670 0.17945405932
Net Income ₱ 799,250 ₱ 784,120 ₱ 15,130 0.01929551599

For the year 2023-2024 having an increase in revenue with a percentage of 11%, in expenses
with a percentage 17% and 20% increase net income.

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KOLEHIYO NG SUBIC
WFI Compound, Wawandue, Subic
Zambales, Philippines

C&V Café House

Projected Statement of Comprehensive Income - Analysis
2024 – 2025
2025 2024 Increase/Decrease Percentage (%)
Revenue ₱ 2,675,540 ₱ 2,105,000 ₱ 570,540 0.27104038004
Expenses 1,568,880 1,305,750 263,130 0.2015163699
Net Income ₱ 1,106,660 ₱ 799,250 ₱ 307,410 0.38462308414

For the year 2024-2025 having an increase in revenue with a percentage of 27%, in expenses
with a percentage 20% and 38% increase net income.

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