Feasibility Study
Feasibility Study
Feasibility Study
Project Summary
The name of the firm is FéDi Café is a full-service studio coffee. The Studio features a full
service for photo backgrounds and working environment of not only the professional
photographers, models, beauty lovers but also the people who own cameras and love taking
pictures with moderate price. The coffee section of The Fédi features a coffeehouse with a
dessert bar, drinks and space for working and photographing. Our business model is the
combination of the coffee shop and the studio. It may not be new but there guarantee to be
unique and always renewing. Our project is called FéDi – Fé in “Café” and Di in “Studio”.
B. Location
The proposed location of the business outlet is in the MSU-Main Campus, Commercial
center, Marawi City, where most of the customers or buyers are of much.
The main product of the firm are different types of coffee drinks likes shakes or tea.
In the long run project will create a gradual innovation to boost the wants and needs of the
customers and so the customer and some around make known to near place. This project will
The project is confident enough and is optimistic on the projected market demand and
supply. The demand consumption of coffee shows the increasing state number which
General Information:
Loan purpose: used to operate the project acquisition of land, buildings, equipment and raw
F. Market feasibility
There are three textured of the products produced by the business. Coffee, Iced coffee and
Coffee shake. Those three kinds of coffee have its main divided ingredients which the
condiment’s presence signifies. The different volume of 12oz, 16oz, and 22oz indicates the
prices that were sold at (regular coffer) Php 90.00-Php180.00 and (special coffee) Php
G. Technical feasibility
The products constituents’ give good vibes and have source of vitamins at the same time,
which came from the different coffee flavor. The project starts its production operation from
the preparation of buildings and raw materials. There are various types of equipment and
H. Management feasibility
The types of business that the firm will assume is Partnership. The proposed project will hire
workers for both business outlet and Processing building where in the listed functions and
I. Financial feasibility
The Total Project Cost of this whole operation is Php 15,550,500,00. The amount of owner’s
equity is Php 8,500,000,00 which is 60% of the total Project cost and a 40% proposed loan of
Proposed loan: Php 7,050,500.00 with a 12% interest on the bank and a payback period of 5
years that is acceptable for recovery of the investment. Income tax will be imposed as 30% of
J. Socio-Economic feasibility
This project will serve as income-generating activity since the net income of the operation
gradually increases. The project give an open opportunities who are capable to work in the
said qualifications, which the nearby or unemployed had the chance to be a worker of the
Market Study
What makes it more attractive to enter into the coffee business is the low starting cost in
comparison with other businesses. The second thing that makes coffee business very
appealing is that even though it is food service and has the highest gnawing away rate than
any other business, it has a higher profit margin than say in a restaurant and this is an
According to Abrams & Kleiner (2003), coffee is also a very sexy business, and everyone
always wants to be associated with a certain coffee shop that frequently visit and always tell
their friends about. You would not find people exited like this about when talking about other
retail establishments that they may patronize. Coffee bars are so personal because they are
really the third place for many of us. They are relaxing places that people can even carry their
laptops to and finish off their office work or even meet friends at.
Besides the café market, the photo studio is also a new and potential market which less
focused on working in wedding and photography branch. This would be advantage for
matching a photo studio and a coffee shop to create the FéDi. With the creative design and
premium café quality, the FéDi will make its best effort to create a unique place where
customers can socialize with each other and take their dream photos in a comfortable and
beautiful environment while enjoying the best brewed drinks or coffee and photography
service in MSU-Main Campus, Commercial Center, Marawi City. We will be in the business
of helping our customers to memorize their moment by providing piece of mind through
great ambience, convenient location, friendly customer service, and products of consistently
high quality. The FéDi will invest its profits to increase the employee satisfaction while
Objective
- The FéDi’s has established three firm objectives expected to achieve in the next five
years:
- Become selected as the "Best Studio Coffee in the area" by the local photographer and
- Sales approaching and surpassing Php 8,000,000.00 by the end of the first year.
Mission
The FéDi will make its best effort to create a unique place where customers can socialize
with each other, take their dream photos in a comfortable and beautiful environment, and
enjoy the best brewed drinks or coffee and photography service in MSU-Main, Marawi City.
We will be in the business of helping our customers to memorize their moment by providing
piece of mind through great ambience, convenient location, friendly customer service, and
products of consistently high quality. The FéDi will invest its profit to increase the employee
Keys to success
- The greatest locations - visibility, high traffic pattern, and convenient access.
- The best design – beautiful, seasonal, and special background with wide range of
diversity.
- The best products – freshest materials, modern equipment, premium services, and
consistent flavors.
Chapter III
Technical Study
In a world of business there are many aspects that need to consider aiming to compete as a high
rate to other enterprises take risky efforts. In this present generation obsolete ones are now
outdated. Consumers in this present time to find a spectacular services and food or having
appetizers just to have a good balance of flavor. Enterprises nowadays develop, innovate, and
Products
Competing to recent developing business, the projects product will produce several flavors of
coffee and preparation that will be packed thru different volumes. This will be labelled with its
brand name, tag line, and location of the business outlet. The coffee shop serves customers foods
and drinks. Inside the store will be our friendly staff serving to every need for the customers to
enjoy the astonishing inside and outside views. The food will be simple but convenient for the
customers. For fast food, we have sandwiches, burgers, noodles and so on if customers would
Services
The business model is the combination of coffee store and studio, which can easily attract
customers in market segmentation. Customers could enjoy drinks in a beautiful view and take
great photos without going anywhere. More specially, the shop has rental clothing services such
as traditional clothes of neighbor countries like Hanbok, Kimono, etc. or the party dress, formal
dress, suit for men and women, etc. The second thing of our product and service is our studios.
The views at the coffee shop may not satisfy professional photographers, models, or beauty
lovers. Thus, for all of those who have cameras and love to take pictures, we will give them even
more beautiful backgrounds with many amazing services with reasonable price, of course.
Reasonable price
The store has competitive price and the FéDi’s desire is providing the best quality with the
The first option is that customers could buy drinks and have the right to take photos in some
The second one is customers could choose service pack of studio and be served free drinks.
Target customers
When people get married, they always want to have great photos for their weddings because they
are their wonderful memories which they desire to share with other people. We build customer
satisfaction by meeting their expectations. We provide high quality services in shooting and
editing photos. We also serve free drinks for the wedding combos.
Photographers
Our business model concentrates on relationships with many studios and photographers in Ho
Chi Minh City. With photographer, every photo is brainchild of them. We connect with them and
their customers to assure that we bring beautiful places for shooting. In order to get good
relationships, they'll get commissions on every customer while cooperating with us.
Beside the connection with studios and photographers, we also focus on the group of people
interested in art or design. We focus on social network and actively cultivating a "cool" image.
The coffee studio creates an emotional tie with customers. Such engagement starts with the
Young generation
Young people today love to take pictures in order to save their beautiful moments. We also have
rental costumes for those who are interested in taking special photos. Our business is creating the
“third place” to go to between their home and work environment by creating this unique and
relaxing place. We also try to create a place which is convenient to study or have group meetings
for students.
CHAPTER IV
The project’s propose to produce and supply commercial coffee products to fill the want and
interest of the customers and customers, and a business opportunity of nowadays it shows that
the demand of the product is continuously in increasing state. The proposed project aids other
individuals that has qualifying functions for the business and is capable of doing so. Its concern
is also to the developing condiments and appetizers of the province of Marawi City and Iligan
Form of Ownership
The type of ownership is this proposed project is Partnership. The owner has share of 60% for
total project cost, in which the proposed project would have a loan of 40% for thorough fund for
Project’s Organization
Sale Marketing in
charge
Processing Workers
Chapter V
Financial Study
Major Assumptions:
It is assumed that the selling price of the products will increase by 5% annually.
Owner will have a share of 60% for total project cost and a 40% loanable amount.
Income tax will be 30% of the net income throughout the operation.
Sources of Fund
The Total Project Cost of this whole operation is Php 15,550,500,00. The amount of owner’s
equity is Php 8,500,000,00 which is 60% of the total Project cost and a 40% proposed loan of
Proposed loan: Php 7,050,500.00 with a 12% interest on the bank and a payback period of 5
Chapter VI
Socio-Economic Study
The proposed FeDi Café will somehow give opportunities to the people nearby who are capable
and welling to work in the processing area where the project is being located. It is advantage to
those who are nearby and wants to have a stable work where their houses is convenient to them.
The effective and efficient management of the Fedi Café business will benefit the project through
the revenue generated. For the first ten years of project implementation somehow spreading this
condiment to those curious, interested, and coffee lover diners. In the long run process the