“A GLIMPSE OF HEAVEN IN EVERY SIP & BITE”

A Proposed Business Plan

In Partial Fulfillment of the Requirements in

APPLIED ENTREPRENEURSHIP

Submitted by:

#16 Faith Dianne Go

#17 Fatima Gorres

#23 Rayne Quizon

#25 Abigail Relacion

#33 Mary Vito

#35 Jacquelyn Yu

ABM 12

April 5,2019

Submitted to:

Ms. Tonie Rose Tagulao

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TABLE OF CONTENTS

I. Executive Summary Page 1

II. Situational Analysis Page 2

III. Management and Operations Page 7

IV. Financials Page 8

V. Appendices Page 10

- Business Model Canvas Page 11

- Visual Representations of the Product/ Service Page 12

- Product/ Service Prices Page 14

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I. EXECUTIVE SUMMARY

SWEET STREET CAFÉ - It’s “a glimpse of heaven in every sip and bite”.

VISION

To be recognized as the leading cake pop and coffee company in the market.

MISSION

We would achieve this goal by:

- purchasing the best quality ingredients in the market, without compromising its

health benefits, safety, and cost/price

- providing good quality products that are not only delicious but also affordable.

CORE VALUES

Embracing local ingredients High standards of hygiene

Good quality and consistency Satisfaction

Environmental Responsibility

It will be the first café or food stall inside Saint Theresa’s College of Cebu to incorporate both cake pops and coffee as their main products, that will cater to students, teachers and non-teaching staff. Individually, both cake pops and coffee products are being sold commercially, both in the café’s physical store and in its online promotional platform. This business is a partnership of six (6) ABM 12 students and will have an estimated PHP 9,000 start-up capital. The business will get 100% of the estimated cost and capital from the six members.

Aside from cost, conceptualization, promotions and selling, an issue that the company would be cautious of would be sanitation and the consistency of food quality. The cake pops and coffee that the café will be selling are highly perishable, thus its ingredients would, in general, have a shelf-life of about three days to a week. Customers can rest assured that Sweet Street staff and management will do its utmost to achieve high quality food preparation and servicing.

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II. SITUATIONAL ANALYSIS

Business Description

Sweet Street Café is a food and services business and will offer six different variations of “Street Pops”, the café’s cake pops, and three different variations of “Street Coffee”, from the café’s coffee selections. Aside from a physical store or stall located in St Theresa’s College of Cebu, an online platform will also be available for customers to purchase the café’s products and read more about the Sweet Street Café company through several social media account, such as Facebook, Twitter, and Instagram.

Sweet Street Café is an independent start-up business composed of six (6) founding members who share a passion for creating affordable and delicious desserts and drinks. The business is a collaborative concept of Faith Go, Mary Vito, Jacquelyn Yu, Abigail Relacion, Rayne Quizon and Fatima Gorres. The café focuses on food creativity, satisfaction, affordability, accessibility, and convenience.

Sweet Street Café would initially launch their operations on the grounds of St. Theresa’s College of Cebu for the business implementation and simulation project from April 8 th to 12th of 2019. The café will specifically be in "Bora-bora", or in front of the Grade 3 steps of the said institution ,wherein there would be a mini market. The area would mostly give us access to students from Grade School Departments, Junior High School, College, and the teachers of Saint Theresa’s College of Cebu. Other customer segments will include school visitors or guests entering the Mango gate and online customers.

SWOT Analysis

This SWOT analysis provides the café with an opportunity to examine the internal strengths and weaknesses that it must address. It also allows the café to examine the opportunities presented, as well as potential threats.

Strengths

● Competent and friendly staff. The Sweet Street Café made sure that their employees are knowledgeable about their own assigned task and very friendly and approachable as well. They are instructed to give the customers a smile everyday.

● Local ingredients. Sweet Street Café makes use of Filipino made products to promote local brands that are not only affordable but has high quality.

● Online ordering services. What makes Sweet Street Café unique is the ordering process which takes place online. Customers can browse through our website to check our our products, and can order online to have them delivered by our delivery staff. This would be a practical choice for those customers who are in a hurry.

● Clear Vision of the Market Need. The café is clearly aware of what the market needs in terms of sweets and drinks. With the cafe’s affordable and delicious cake pops and

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coffee, a number of customers will surely check the store out and purchase the products of the Sweet Street Café.

Weaknesses

● Limited Variety of Products. The café only serves six different cake pop designs and three different coffee selections. With the limited supply of products, customers might opt to go to other stores and cafés to purchase other goods that are not being sold in our café.

● Prices of Ingredients. With the unstable market in the Philippines, food and drink ingredients may be susceptible to change with or without prior notice. This is also due to other factors such as seasons and the ever increasing inflation rate.

● Perishable Ingredients. Since Sweet Street Café offers food and drinks, the shell life of these ingredients would not be very long. That is why, the financial head of the café should provide the proper budget and ideal amount of ingredients to be bought in order to refrain from food and drink surplus.

Opportunities

● More Variety of Products. Since the Sweet Street Café only serves cake pops and coffee, more products will be added in the future such as cakes, pastries, and juices. These will attract more customers who would want these specific products at a reasonable price.

● Do-It-Yourself Cake Pops. One aspect that the café could take advantage of would be customer empowerment. Through this way, customers will have the choice to design their own cake pops the way they want it to, at a specific price. This will give the customers power to choose and be satisfied with their chosen products.

Threats

● Sanitation and Hygiene. Since Sweet Street Café would mostly deal with food and drink preparation every day, it is important to take the proper measures to ensure that the products are made properly and sanitarily. The café would need to ensure that all of the staff should wash their hands and wear the proper clothing to refrain from contaminating the products.

● Equipment Malfunction. Sweet Street Café will make use of food and drink making equipment most of the time and with that, the equipment must be updated and should be working properly. Instances may happen that the equipment will get broken, thus slowing the work-time and lessening the outputs to be produced.

● Fire Hazards. Working in the kitchen can be very dangerous if a fire happens. This would cause a loss of our equipment and possibly injuring a staff member or a customer in the process.

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● Competition. At this moment, the Sweet Street Café is the only one selling cake pops and coffee at the same time. Future competitors might appear in the future and might interfere with the flow of our business.

● Delivery delays and accidents. When a delay occurs during a delivery, the customer will automatically have PHP 40 off their delivery.

With these challenges in mind, Sweet Street Café will closely monitor other stores that sell similar products and services. Kitchen SOPs will be implemented before the soft-opening, and the members will have to read and study about proper sanitation and hygiene in restaurants, cafés, and other food establishments to refrain from incidents concerning the quality of our products.

Service & Product Description

Sweet Street Café is a café that provides food and beverages, specializing in local coffee selections and cake pops. It provides an affordable price for students, teachers, and staff, as well as supplies cake pops for special orders made through the social media accounts. Some of the available cake pops and coffee based drinks that the cafe are offering are listed below:

Selection of decadent cake pops:

Premium cake pop (unicorn head and face design) Idol Cake Pop (different pop culture trends on top of the cake pops) Sprinkles Cake Pop Mini Hearts Cake Po Bundles

Philippine grown coffee selection

Affogato Street (with different toppings) Dark Chocolate Mocha (Dark Alley) Milk Chocolate Mocha (Milky Way)

There are different toppings, colors, and designs that are available for the cake pops wherein the customers would have an option which design to choose from. The customers may also request a certain design that they want for the cake pops, which can be done prior to the curriculum convention. Along with the different options for the design of the pre-ordered cake pops the customers will have the option as well what they want for the DIY/handcrafted packaging that comes with their order. The pre-ordered cake pops can also be delivered to them through our delivery or the customers can get their orders directly from the physical store.

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Sweet Street Business Model

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III. MARKET ANALYSIS

Target Market and Segmentation

Sweet Street Café caters to two (2) different major market segments namely direct and online customers on-campus. Customers who visit the store and have “face to face” encounters with its employees are what we call our direct customers. Sweet Street’s target along this market segment falls on the grade school department, junior high school department, and college department. All of these individuals are students from Saint Theresa’s College of Cebu.

On the other hand, customers who prefer convenience, browse and order through the café’s social media accounts such as Instagram or Facebook are what we call the café’s online customers, which is also part of the café’s market segment. The target market falls anywhere between the ages of the three departments. This extremely wide range of ages is due to the fact that when you say online pastry shop, it appeals to a variety of people including children.

Competitive Analysis

Over the years, the Theresian community grows to be busier and busier. With sleepless nights, normalized and hectic schedules all around, the demand for a caffeine fix and decadent sweet cravings to relieve some stress has grown over time. In St. Theresa’s College of Cebu’s canteens, coffee and sweet treats are available for sale in almost all the concessionaires and this what makes the competition strong when it comes to selling these kinds of products. Sweet Street Café possess a differentiated edge in the product line of sweet snacks and beverages since it will be the only stall to sell six (5) different kinds of cake pops, two (2) flavors of iced coffee and one (1) kind of Affogato ice cream.

Currently there are six (6) competitors all in all that are present in the school canteen for the Sweet Street Café business. The six (6) stalls in the canteen namely Chowline, Snack Time, Crunch Chicken, 3B’s, MK Burgeran, and Butterfly Food bar are considered as competitors of the business because they sell pastries and beverages. In which: five (5) out of six (6) stalls sell caffeinated drinks and other substitutes.

These five concessionaires (Chowline, Snack Time, Crunch Chicken, 3B’s, and Butterfly Food Bar) in the canteen that sells caffeinated drinks or beverages are the direct competitors of Sweet Street Café. They are industry competitors of the business because they sell products that are similar to one of the products Sweet Street Café offers which is an iced coffee drink. They are also considered as a competition because these concessionaires are well known already by the Theresian community and a lot of the products that they sell are very cheap.

The competitors of the business mostly just sells instant coffee or pre-packed ready to drink coffee for 12-20 php. What gives Sweet Street Café an edge with this high level of competition inside St. Theresa’s College of Cebu is that the business offers what many would call a “luxury” experience in terms of its availability. The mocha iced coffee gives a good break from the usual instant powdered coffee by only using premium roast freeze-dried coffee with a

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delicious milk or dark chocolate mix that gives a smooth and rich caffeine experience for only 38 php.

Moreover, four (4) out of six (6) stalls in the canteen sell a variant of sweet treats like cakes, brownies, cookies, and donuts. Mostly pre-packed, bought from grocery stores, or from prominent brands like Moshi Manju and Dunkin Donut. These four (4) stalls are considered as substitute and generic competition to the Sweet Street Café because they sell products such as bread, brownies, donuts, cakes, and munchkins that can replace the cake pops that the business offers. With our gathered data, only Chowline sells home baked cakes and brownies for 15-20 php, which is the closest product competition to the cake pops Sweet Street Café offers. No one sells cake pops in the canteen which the business can consider as a direct competitor. But despite that, the competition still remains high as many substitute products are readily available.

In order to remain competitive, Sweet Street has to be at par with the market price range, and also take into consideration consumer financial capability and willingness to buy our product. Also, what gives Sweet Street Cafe it’s edge is home baked authenticity, only using quality products and guaranteed satisfaction. It is a break from the same products being presented to students and staff on a daily basis.

Within the ABM 12 class, there are six (6) businesses that would sell products during the curriculum convention. Five (5) of these businesses including Sweet Street Café would be selling food and beverages and one (1) would be doing a merchandising business. The four food businesses that would be present in the Tapukan food market would be considered as generic competitors of the Sweet Street Café. Specifically they are the Pick Which, Snacktisfaction, Kix and Chix.

Tsaya, which is a milktea business, can be considered a subsitute competitor of the café since the milktea that they offer for 80 php can replace the iced coffee and ice cream that the café offers. This business would be the greatest competitor for the café because a lot of students would like to purchase milk tea since it is the current trend. It would be a challenge to go against this business because Tsaya and Sweet Street Café are both in the same location, which is Tapokan.

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IV. MARKETING PLAN

Sweet Street Café has four (4) main strategies. The first strategy focuses on attracting acquisitive customers by providing a friendly environment, Sweet Street Café hopes to educate and train a loyal customer by providing loyalty cards. The second strategy for having retentive customers would be discounts through promo sticker card. For every five (5) stickers the customer would be able to enjoy a 30% off for coffee based drinks. The third strategy would entail a special bouquet of cake pops as a product enhancement move to attract both retentive and acquisition customers. The fourth strategy would be an accessible and aesthetically pleasing physical store wherein customers would feel comfortable and have an unforgettable experience in the café.

For full distribution Sweet Street Cafe will be located in front of the grade three steps. This specific area was chosen for various reasons, including:

* “Tapokan” Administrators’ decision

* Heavy traffic of customers

* It is located at the middle of all departments

Moreover, Sweet Street Café will use traditional and digital advertising as its main source of promotion such as word of mouth, flyers, posters, social media advertising, and radio advertising. These advertisements will help build customer awareness. Sweet Street Café’s main avenue of distribution is its own physical store where the customers can buy and experience the products and other services that the café is offering. Sweet Street Café will also be accepting pre-orders through its social media accounts and will also be delivering both food and drinks around Saint Theresa’s College of Cebu, upon request for an additional delivery fee of Php5.00.

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V. OPERATIONS PLAN

Management Team

The organizational structure starts with the six (6) founding members. Faith Go as the operational manager of the business, she overviews the entire physical store and its daily operations and also she assures the business vision and mission and goals in the company is acquired. Mary Vito as the finance officer, handles the company’s financial aspects in terms of the entire operations of the café. Jacquelyn Yu and Abigail Relacion as the marketing officers of the café, handle the social media pages and come up with different events and amnesties that the business can have. Rayne Quizon is the human resource head. Fatima Gorres is the head chef of the café, all the recipes, techniques and quality control of the baked goods are headed by her.

Due to limitations in manpower the six (6) members will as well perform other operational duties such as a barista, dishwasher, and cashier. The barista is the who will be making the coffee based beverages. The cashier will stay at the front desk and be the one who will be receiving the payments at the physical store. The dishwasher is the one who will be washing all dishes that had been used in the preparation of making of the product as well the as the utilities and dining ware that the customers used. Lastly, a member will be the bookkeeper as well who will be responsible in the movement of the money in the business

Production & Delivery

The goal of The Sweet Street Café is to have a team of committed associates who empower each other so that the customer's expectations can be exceeded. The café will be needing full time staff to operate the business and these are the cashier, barista, dishwasher, bookkeeper, assistant baker, and delivery person (which will be all the six members). It is the cafés long-term goal to be the preferred employer within the niche of the beverage and pastry distribution industry.

The daily operations will be characterized by the following:

● The café will have competent staff who will address the customers’ needs in a proper and efficient way. A cashier desk, which will be always staffed, will be placed beside the cake pop and coffee selections in order for the customers to pay for their orders. The six (6) members who have a duty as well in the daily operations of the business will also be situated all over the café in order to answer the customers’ questions and other inquiries regarding the products and services the café offers.

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● Day-to-day activities will include: Opening the store at 8am; the members will arrange the chairs and tables before entering the kitchen; Designated chefs will produce the cake pops/ready the ingredients for the products; Actual selling hours; Closing the shop at 5pm; Cleaning up the store; and Checking the inventory and auditing.

● Sweet Street Café offers online ordering and delivery services that are not only reliable but safe and secure. Sweet Street Café online team will be the ones to monitor all the online orders and transactions, and will also deliver the orders to the respective location

VI. FINANCIAL PLANThis business plan by Sweet Street Café is prepared for the purpose of preparing for the

four (4) days selling period or business simulation that would be happening on April 8, 10,11,and 12, 2019. The needed total capital for the start-up would be PHP 9,000. This amount is needed to cover expenses during the start-up days and the rest of the following selling days. The total needed start-up capital amount would be equally divided among the six (6) members. Capital contributions of PHP 1,500 will come from each of the six (6) members: Faith Go, Mary Vito, Jacquelyn Yu, Rayne Quizon, Abigail Relacion and Fatima Gorres.

Projected Expenses

EXPENSES ESTIMATED COSTS

Advertisements (posters and banner) Php 120.00

Utilities (power and water) 50.00

Decorations and other set-up expenses 750.00

Uniform 200.00

Cleaning materials (rags) 10.00

Inventory supplies (coffee, powdered sugar, eggs, cake mix, chocolate powder) 800.00

Other supplies (straws, tissues, toothpick, paper cups, paper bag, coffee stirrer) 500.00

Cake pop dryer 50.00

Ice box 40.00

Total Projected Start Up Expenses PHP 2, 520.00

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Sales Forecast – 4 Day Selling

UNIT SALESUnit Price

Day 1 Day 2 Day 3 Day 4

Qty (Apr 8) Qty (Apr 10) Qty (Apr 11) Qty (Apr 12)

Affogato Street P35/ cup 8 pcs P 280.00 12 pcs P 420.00 15 pcs P 525.00 16 pcs P 560.00

Dark Alley P38/ cup 20 pcs 760.00 30 pcs 1,140.00 40pcs 1,520.00 45 pcs 1,710.00

Milky Way P38/ cup 15 pcs P 570.00 18 pcs P 684.00 20 pcs P 760.00 25 pcs P 950.00

Custom Chars. P18/ pc. 23 pcs 414.00 30 pcs 540.00 35 pcs 630.00 40 pcs 720.00

Unicorn Head P40/ pc. 5 pcs 200.00 7 pcs 280.00 9 pcs 360.00 11 pcs 440.00

Unicorn Face P35/ pc. 5 pcs 175.00 7 pcs 245.00 9 pcs 315.00 11 pcs 385.00

Pastel colored P18/ pc. 12 pcs 216.00 17 pcs 306.00 22 pcs 396.00 27 pcs 486.00

Mini Hearts P18/ pc. 12 pcs 216.00 17 pcs 306.00 22 pcs 396.00 27 pcs 486.00

Bundle P77/ pc 3 pcs 231.00 4 p 385.00 8 pcs 616.00 10 pcs 770.00

4 pieces set P77/ pc 1 pc 77.00 1 pc 77.00 2 pcs 154.00 3 pcs 231.00

TOTAL ₱ 3,155.00 ₱ 4,383.00 ₱ 5,672.00 ₱ 6,758.00

Appendices to contain:

Appendix A – Menu/ Product Price list

Appendix B – Digital product prototype (Product pictures)

Appendix C – Service Blue print (if applicable)

Appendix D – digital homepage/ Mobile app process screenshots (if applicable)

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