MEMBERS:

Guibao, Evangeline Pat S

Montejo, Kysha Marie

Neri, Myca

Pino, Princess

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 TABLE OF CONTENTS

CHAPTER 1: EXECUTIVE SUMMARY

1.1 Executive Summary3
1.2 Business Objective3
1.3 Mission Statement4
1.4 Guiding Principle4
1.5 Keys to Success4
CHAPTER 2: COMPANY DESCRIPTION
2.1 Company Description5
2.2 Ownership5
2.3 Legal Form5
2.4 Start-Up Summary5
2.5 Location and Facilities5
CHAPTER 3: Products/Services
3.1 Products/Services Description6
3.2 Competitive Comparison6
3.3 Product/Service Sourcing6
3.4 Pricing6
3.5 Future products/Services7
CHAPTER 4: MARKET ANALYSIS
4.1 Market Analysis Summary8
4.2 Main Competitors8-9
4.3 Target Market Segment9

4.4 Market Needs9

4.5 Positioning9

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 CHAPTER I

1.1 Executive Summary

The Cravings Cure Cafe will be a one of a kind coffee house / café located in Cebu City.
The Cravings Cure Cafe, aptly named for the aromatic brown liquid that will fill the cup, fills
the void of original cafes in the market area, stands out from its corporate peers with their
fast food concepts and fast services. Our business offers customer service with good quality
bread and pastries, hot coffee beverages and milk tea.

There are no televisions in the café. The background music is subtle and work from local
artists will hang on the walls. The café is well appointed with overstuffed leather chairs and
sofas. The café is reminiscent of times gone by yet is cutting edge technologically with WIFI
and state of the art espresso machines.

The Cravings Cure Cafe measures its financial success in terms of increased market share
and in earnings. This is a tremendous opportunity. The keys to success will be the ability to
offer quality gourmet coffees, take advantage of its small size, and reliance on an outstanding
barista staff.

In order to achieve these goals, the café will offer some the area’s finest gourmet beans from
local distributors. Because of its small size, the café can enjoy larger margins in the form of
lower overhead. The cafe will hand select baristas and offer salaries comparable to the
chains. In turn the baristas will be trained to cross-sell, and sell the higher margin products.

1.2 Business Objectives

The primary objectives of the business plan for Cravings Cure Café are below:

● To increase revenues P 36,000 or 5% in Year 2 and by P 73,000 or 10% by Year 3

● Achieve a profit margin of 5.2% in Year 2 and 6.90% by Year 3
● Be the Café of Choice in the Cebu City area and recipient of the Best Coffee House
Award

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1.3 Mission Statement

The Cravings Cure Café is committed to its products and employees which they believe
is the recipe for market success.

To provide our customers the world's best roasted coffees, pastries and milk tea with
excellent service at a price that is fair to the producers and our customers. Our commitment to
best practices towards customer service, our employees, the environment and our community
defines the Cravings Cure Café.

1.4 Guiding Principles

The Cravings Cure Café is committed to values such as excellence, passion, quality, integrity
and leadership which allow them to navigate challenges and provide for future opportunities.
These core beliefs start with their commitment to their products and their employees. The
Cravings Cure Cafe rewards excellence and cherishes loyalty. The café will work with its
employees to build strong businesses and a secure future.

1.5 Keys to Success

The Cravings Cure Cafe stands out from the competition. Below are their Keys to Success:
● Great Products – providing exemplary products at market prices will make customers
want to return again and again
● Hire Quality Baristas – Pay employees rates similar to the larger chains with
opportunities for long term careers and opportunities for advancement with long term
plans to open a second facility

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 CHAPTER II

2.1 Company Description

The Cravings Cure Cafe located in the Basement, Rustan's Supermarket, Ayala Center Cebu. The
café will serve gourmet coffees, espresso and drip coffee, lattes, and milk tea. The simple pastry
offerings may vary with seasonality but the primary line will be muffins, breads, cookies, scones,
and rolls. All pastries will be supplied daily by a local bakery.

2.2 Ownership

The Cravings Cure Cafe will be owned by Princess Pino, Evangeline Guibao, Myca Neri and
Kysha Montejo, a graduate of University of Cebu has an undergraduate degree in Hospitality
Management. During college we are trained how to open a business and this allowed us to learn
about business first hand and provided additional first-hand exposure to the food and beverage
industry.

2.3 Legal Form

The Cravings Cure Cafe will be formed as an Partnership wholly owned by Miss. Princess Pino,
Evangeline Guibao, Myca Neri and Kysha Montejo.

2.4 Start-Up Summary

The Cravings Cure Cafe will provide a friendly, comfortable atmosphere where the customer can
receive quality food, service and entertainment at a reasonable price. The coffee house will offer
a variety of choices to the customers. Coffee and tea of all sorts will be offered. Milk tea also
will be available. Cravings Cure Café will be divided into different areas. Some will have tables
and chairs, another will have large antique stuffed couches and chairs, The Rent is P 300,000 a
month with a three - five year lease available. The site consists of 1500 square feet of leased
space consisting of a dining room, a coffee bar, two restrooms, and a storage room in back. To be
used as a restaurant, this storefront needs to be plumbed and wired appropriately. Painting, new
floors, and countertops are also needed. A custom coffee bar needs to be built. With materials
bought on sale and volunteer labor. The cost to renovate will be P150,000. Other startup
expenses will be equipment, dishes, furniture, rent deposit, and marketing.

2.5 Location and Facilities

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The Cravings Cure Cafe is located in the Basement, Rustan's Supermarket, Ayala Center Cebu,
Cebu Business Park, Cebu City The property is located in an excellent location.
CHAPTER III
3.1 Products/Services Descriptions

Cravings Cure Cafe primarily offers gourmet roasted coffees with such varieties such as
mocha, carmelicious, white mocha, candy bar latte, and brewed coffee. Complementing the
coffee will be a smoothie line including wild berry, strawberry, peach, mango and lemonade. We
also offer different flavors of milk tea like Black Milk Tea or Hong Kong Milk Tea, Taro, Thai,
Matcha, Honeydew, Strawberry, Brown Sugar Milk Tea or Tiger Milk Tea. Rounding out the
simple menu line will be pastries obtained with an outside supplier, freshly made and delivered
daily. The pastry offerings may vary with seasonality but the primary line will muffins, breads,
cookies, scones, and rolls.

3.2 Competitive Comparison

The research methodology is based on unique coffee shops/cafes in the greater metro area and
omits larger chains or franchises. The findings reveal 3 unique competitors.

COMPETITORS We have, They don’t They have, We don’t

FaB CaFFé Good service and affordable Good food quality, expensive
price price
Bubble Tea Station Good service, unique pastries Have better areas and good
and affordable price quality product
Coffee Prince Cebu Healthy bread and pastries Have a Korean food quality
and healthy beverages

3.3 Product/Service Sourcing

Cravings Cure Café has negotiated supplier agreements with several local food-service
wholesalers and coffee wholesalers that have a reputation for quality and reliability:
● Mean Beans Coffee Roasters
● Overland Park Brewers
● Healthy Harvest Bread Co.
● Mary’s Organics

3.5 Pricing

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Cravings Cure Café offers affordable prices of all those drinks and pastries. Prices range at
90-200 pesos.

3.4 Future Products/Services

Cravings Cure café which comprise the third largest market share in Cebu city, are often
overlooked in the coffee market. Coffeehouses traditionally have not been considered ‘kid’
friendly. To overcome this hurdle, the Cravings cure café has long term plans (5 years) to open a
2nd coffee shop: A combination of indoor play area / coffee bar. This concept allows parents and
caregivers an opportunity to meet and relax with other adults while the children can enjoy the
indoor playground amenities. Additional future services will include in-store sales for home
purchase as well as an online store.

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 CHAPTER IV

4.1 Market Analysis

Our business offers customer service with good quality bread and pastries, hot coffee
beverages and milk tea. Our product is healthy, sweet and delicious treats that satisfies the
cravings from the customers. In our business, we will make our bread and pastries with great
delightful, healthy and salubrious way. Our products are special made from its unique flavor
which is healthier for the customers’ cravings from our bread and pastries, coffee and milk tea.

It is more delightful especially when people these days, is craving on pastries which can
also perfectly combined with coffee and milk tea. For our product, in order for this to be trendy,
is to convince the customers to buy our healthy, sweet and delightful pastries, hot beverages and
milk tea, as we sell the product to the customers’ craving for more, so it means that the business
is eternally good and increasing. Surely the customers will delightfully satisfy our product
between its healthy, sweet and delicious taste, great service, great packaging, and its pleasurable
taste. While the customers prolonged for our product, this would help the business to grow.

In our business we also offer discounts in order for the customer to be loyal from us. For
the growth and chance of the business we have to perforate in more methods and see for high
demand of the products.

4.2 Main Competitors

FaB caFFe
JKR Ladies Dormitory, A Tormis St., Cebu City
6000 Cebu
https://ifranchise.ph/star-frappe-snack-bar-and-cafe-franchise/

This competitor operates from 30-40 square foot space. The café uses of trade name and
proprietary marks. In addition to serving a frappe, pizzas, burgers and rice meals along with
other beverages. They provide lower franchising cost than the others. The company is open
franchise nationwide. Their products are all in the menu. They have 10 service crew uniforms.
The broad offerings do not make this a true comp.

Bubble tea station

Cebu city, SM Seaside Cebu
https://www.pinoy-entrepreneur.com/2018/05/08/bubble-tea-station/

This competitor serves customers of all ages and sizes from 15-35 years old. The station was
established in 2011. The bubble tea station offers drink and other beverages. Bubble Tea Station
now has 8 branches brewing happiness for more than 7,000 people per week.

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Coffee Prince Cebu
Cebu City
https://www.iluvcebu.com/coffee-prince-cebu/

They offer free Wi-Fi. They have parking spot. In addition to serving a Korean coffee, beverages,
food, frappe and smoothie. Their restroom each cubicle was lined up with lights that changes
color and bead curtains are adorned along the cubicles. The exterior walls are painted blue with
beautiful sunflowers.

4.3 Target Market Segment

Despite the large amount of marketing and advertising diverted at the younger age groups. Our
business will not forget to provide some offering to the adult and senior market. Our business
will offer a unique experience for coffee and milk tea experts by offering a quiet and cozy yet
sophisticated café and a sense of requirement and peace. While other coffee shops cater to
convince with drive through or loud music venues late into the night. Cravings Cure Café will
stand apart from its competitors with its quiet yet soothing atmosphere, capturing a truly unique
and mush needed market niche.

4.4 Market Needs

Café shop customers, by nature, are looking for something specialty, that’s why they are willing
to pay so much for a cup of coffee, milk tea and together with pastries.

4.5 Positioning

The Cravings Cure Café shop will position itself as a local coffeehouse. By charging similar
prices as the large chains. The service and quality of the product will equivalent with the price.
The Cravings Cure Café is genuinely unique place to gather and meet friends, and enjoy coffee
facilities such as free WIFI, chess games, comfy overstuffed chairs, create a relaxing
environment. The market does not need a café offering fast food breakfasts or another after
hours.