CHAPTER I

A. PURPOSE OF THE BUSINESS

A demand of high quality coffee products, service and training/simulation for

students of the Bachelor of Science Business Administration, wherein the academic and

administration provide a low operating cost of products and services and income and on the

job training, assessment and as a part of the curriculum, which will help generate funds for

the hotel and restaurant department in sponsoring for competitions, student activities and

maintenance of laboratory equipment will be the sole purpose of the study which will

benefit not only the students of IMAM ABDHULRAHMAN BIN FAISAL UNIVERSITY

but also the faculties, other employees and visitors of the University. Therefore, we are

proposing for a coffee shop or a café that will serve espresso coffee and other specialty

coffee product as a training/simulation room for BSBA students, which can cater good

quality coffee and pastry demands and needs of the students, faculties, and visitors of the

University which will be named as “YAAZ CAFE & RESTAURANT”.

B. SUMMARY

A survey was conducted on the 12’th of September 2023 wherein 100 respondents

were gathered from the employees and visitors were given a questionnaire about their

knowledge in coffee and willingness for a new experience here in Rarah Alkhobar Saudi

Arabia, we noticed that:

1. The need of an establishment wherein you could sit down and enjoy coffee &

dining.

1
 2. No option in coffee based drinks within the area.

3. There is a positive reaction of the introduction of espresso coffee in the area.

4. Most have not tried a cup of “real coffee”

5. Willing to pay a more expensive coffee rather than 3 in 1 coffee

Since the closest establishment which serves hot brewed coffee or tea is outside, we

the students proposed coffee shop that will evolved basing on the demand and needs of the

clienteles within the university. If proposed project will be approved, Imam Abdulrahman

Bin Faisal University as part of the On the Job Training of BSBA and HRM students,

simulation of bartending, demo showcase of bread and pastry, and service area for food and

beverage service program, and funding and support from the ADMINISTRATION in the

financial capital of the and to fill the needs for a higher accreditation requirement.

What is good about this coffee shop is that, BSBA students will run the

operation guided by a café manager which will be employed as staff of the university

overseeing the technical and non technical aspects of the café operation. Training of students

and introduction of the workplace is also part of its responsibility. And prepare the coffee

drinks in the absence of students: (semestral brake, enrollment, vacations). Along with the

manager will be 2 the custodial employee working in shift (AM and PM) to assist in the

preparation and maintenance of the working area, service and also perform the task of the

students in their absence.

This will also help the BSBA students to practice handling a business particularly in

a Café environment by managing the café, preparation of mise and place with the help of

manager and custodial to be hired. Since BSBA students will give their major share in the

operation of the Cafe Restaurant, it will be an advantage of the Cafe Restaurant to have a

2
minimal expense in the manpower because BSBA students will not be paid but they will

work in the Cafe Restaurant as a trainee/OJTs and could be used to show case products of

the BSBA in their laboratory..

CHAPTER II

THE BUSINESS

A. MISSION STATEMENT

Our mission is to provide locally competitive training skills for hotel and restaurant

management students; promote products and continuously grow through innovation and

dedication to excellence, to be in class above our competitors by providing personalized

service and excellent performance with upholding the Imam Abdulrahman Bin Faisal

University values.

B. OBJECTIVE

1. To provide a locally competitive students through hands on training and application

of academic knowledge in the industry.

2. To provide affordable and quality cup of coffee to the customers.

3. To educate the Imam Abdulrahman Bin Faisal University community of espresso

coffee.

4. To immerse the BSBA students in the working industry.

5. To support the hotel and restaurant management programs and activities

C. COMPETITIVE ADVANTAGES

3
 Among other establishments that offer coffee drinks to their customers are most

YAAS Café & Restaurant and full service coffee shops. YAAS Cafe & Restaurant’s direct

competitors will be other coffee shops located at University of Northwestern area and outside

business establishment. Food service establishments that offer coffee and a coffee shop

located beside the university The Stone House. YAAS Cafe & Restaurant will definitely be

one of the major competitors because of volume of clients and established marketing and

operational practices. However, despite of YAAS Cafe & Restaurant’s entrenched market

position, many customers favor smaller independent establishments that offer cozy

atmosphere and good coffee affordable prices. YAAZ CAFE & RESTAURANT is a good

example of such competition. We estimate that YAAS Cafe & Restaurant’s hold

approximately 35% market share in that neighborhood, YAAS Cafe & Restaurant’s appeals

25% of customer’s, with the remaining market shares split among other establishments.

YAAS Cafe & Restaurant will position itself as a unique coffee shop that not only offers the

best tasting coffee and pastries but also provide home-like cozy and comfortable

environment, which established corporate establishment’s lack. We will cater to customer’s

bodies and minds, which will help us grow our market shares in this competitive market.

Location – 4801 King Faisal Ibn Abd Al Aziz, 7528, ‫حي‬, Al Khobar 34226

Manpower –Low overhead cost in labor wages because the BSBA will run the entire

operation with the help of a manager and custodial worker

Non Commercial Establishment – Also a laboratory for hotel and restaurant

management students, this can also be used as an assessment area for bartending

NC IV or also known as “Barista”

Price – Products priced at or lower than indirect competitors.

4
 SWOT ANALYSIS

The following SWOT analysis captures key strengths and weaknesses within the

company and describes the opportunities and threats facing the business.

Strengths

 CMC will be located at the center of the school where the customers mostly

walk by.

 Well trained employees with experiences in management in restaurant

establishment.

 No direct competitors

 Low overhead expenses

 Student and university involvement

 Supported by the university

 Non profit establishment

 Minimal operation input

 Convenience and relaxing environment

Weaknesses

 Academic calendar break and major holidays

 Limited menu

 The YAAS Cafe & Restaurant Coffee Shop's limited brand equity.

 A limited marketing budget to develop brand awareness.

5
Opportunity

 Abundant new prospects of coffee drinkers

 Provide and training students in the coffee industry

 A growing market with a significant percentage of the of the target market still

unaware of the YAAS Cafe & Restaurant Coffee shop.

 Increasing sales opportunities as people become familiar with the advantages of

the structured conversation system.

 The ability to lower variable costs through efficiency gains.

 Future expansions for an assessment venue

 Small meetings and seminar venue

Threats

 Economic stability which affects the cost of raw materials

 Outside factors which sells 5 peso coffee vendo machine

KEY SUCCESS FACTORS

 Store design that will be both visually attractive to customers, and designed for

fast and efficient operations.

 Employee training to insure the best coffee preparation techniques

 Marketing strategies aimed to build a solid base of loyal customers, as well as

maximizing the sales of high margin products, such as espresso drinks.

 Provide the best products and easy to recall to every customers so that it’s their

trademark for them to go back again in our business.

6
  Staff. Hire employees with a work experience and have a strong background

with the position that they want to fill up if they are fit to their job satisfaction.

 Product. They must be original recipe or menu with no copying of different

styles to the other business establishment.

 Service. Serve your customers very well and treat them properly. Because

customers always right. Be humble to every customers.

 Maintaining a cost of goods on foods at below 50%.

 Excellent customer service.

 Attracting customers who find value in the YAAS Cafe & Restaurant, Coffee

Shops offering and who will frequent the Shop regularly in order to meet like-

minded single people.

D. MARKETING STRATEGY

The main strategy is to educate and target the students in the coffee drinking

culture. With a low overhead cost with the help of OJT, a lower price can be presented to

attract more clients in the coffee shop. A concept that is unique and a strategy that can

separate the its competitors. Since the café has their loyal based customers which are the

students of IMAM ABDHULRAHMAN BIN FAISAL UNIVERSITY and its faculties, we

came up to an idea which is to establish a membership fee for those interested students and

faculties. Hotel and Restaurant Management (BSBA) students will be the key of success for

the coffee shop.

Product Strategy

7
 The café will launch new products through social media and offer its customers the

best tasting coffee beverages in the area. This will be achieved by using high quality

ingredients and strictly following preparation guidelines. The store layout, menu listings and

marketing activities will be focused on maximizing the sales or higher margin espresso

drinks. Along with the espresso drinks, brewed coffee and teas, as well as some refreshment

beverages, will be sold in the coffee shop. YAAS Cafe & Restaurant will also offer its

clients pastries, small salads and sandwiches.

Pricing Strategy

The café will have its products at a very low price consistently to maintain the

loyalty of our customers pricing will be in a medium basis, meaning it is between a lower

and higher price. It will be offer at a reasonable price especially to the customers. YAAS

Cafe & Restaurant, primarily utilizes coupons and discounts because we believe that the

most valuable customers demographic of daily coffee consumers is not influenced by

discount programs or coupon. Compared to our competitors YAAS Cafe & Restaurant

comparably priced. By offering a wide selection of both regular and gourmet coffee, we

believe that YAAS Cafe & Restaurant’s prices can appeal to even the most price sensitive

consumers.

Customer Service Strategy

Tie up with the university as a marketing tool to promote new HRM /BSBA

enrollee in the future. Many services are involving both actions of employees and customers,

which is essentially showed in the case of Coffee Shop. Strategically, service personnel are

8
important source of product differentiation. It is often challenging for café to differentiate

itself from similar business in benefit bundles it offers or delivery system. YAAS Cafe &

Restaurant recognized this problem. The strategies of YAAS Cafe & Restaurant are offering

customers with the friendly service. For instance, YAAS Cafe & Restaurant treat their

employees as their partner rather than employees. They provide their partner with three

months training, which educate them with the basic knowledge of YAAS Cafe & Restaurant

services skills and culture. The promotion training is also offered for staff self-development.

The management will record the names of their customers, personalized their service and

offer the service individually.

In YAAS Cafe & Restaurant case, customers have to stay in the actual process of

production in order to receive service, so their behavior and their reaction for the service

encounter will play important role. The nature of these interactions strongly influences the

customer’s perception of service quality.

Process strategy

Process refers to the procedures or processes that are developed to ensure the

customer has a positive and memorable experience. When marketing products:

 Products are manufactured or purchased on time.

 Products deliver the required quality and performance levels.

 Sufficient stock is on hand to meet customer demand.

 Products reach the customer in a timely manner.

 Products reach the customers in good condition.

 The paperwork is accurate and timely.

9
When marketing services:

 Staff and trainees are available to perform the service when and where

required.

 Staff and trainees provide the service to the required performance level.

 Sufficient staff and trainees are available to perform the service.

E. TARGET MARKET

With very limited when it comes to market because it is located inside the

University, which means that the possible numbers of market of the cafe will depend on the

enrollment population of Imam Abdulrahman Bin Faisal University. However, it is somewhat

a good location because competitors are also limited and there is a very high profit margin

due to low overhead expenses. Employees and undergrads are potential target since they are

the most active market in coffee, therefore target the following markets:

 Students

 Academic Faculties

 Other employees

 Visitors

 Residences in the area

Market Segmentation

YAAS Café & Restaurant will focus its marketing activities on reaching the

University students, faculty, and staffs, people working in offices located close to the coffee

shop and on sophisticated teenagers. Our market research shows that these are the customers

group that are the most likely to buy gourmet coffee products. Since gourmet coffee

10
consumption is universal across different income, categories and mostly depends on the level

of higher education, proximity to the Imam Abdulrahman Bin Faisal University area will

provide access to the targeted customers audience.

F. COMMENCEMENT DATE

The café will be ready on the month of June 2022 for operation and but still the

decision lies on the Restaurant Management.

G. BUSINESS STRUCTURE

YAAZ CAFE & RESTAURANT is owned by the Mr. Jassim Hilal therefore, it is

registered as a corporation wherein they are equally sharing their resources and effort in

building the business and managed by the project proponents and by the Hotel and

Restaurant Management HRM /(BSBA) students as part of their laboratory to be integrated

with their curriculum in Food and Beverage Services (F&B) and Bartending Services as on-

the-job training and barista to cater the needs and wants of the customers into maximum

efficiency. It can also be used as an assessment center in the future for Bartending NC IV

(BARISTA).

H. ORGANIZATIONAL CHART

Jassim Hilal
PRESIDENT

VP for Administration VP for Finance

11
 Custodial Custodial
I. QUALIFICATIONS

MANAGER

 Must be a graduate of Hotel and Restaurant Management with working

experience of at least 2 years in managing service

 Trainings and certificate of Barista or TESDA NC4 Barista

 Excellent customer and training service skills

 Good communication skills

 Must have a strong planning and organizational skills

 Must be flexible

 Must have the ability to cope under pressure

 Good accounting skills

CUSTODIANS

 At least high school graduate with at least 5 months of working experience in

restaurant industry

 Must be flexible and have initiative

 Good communication skills

 Must have a training in barista and bartending

12
  Must be alert and active

 NC holder for bartending and barista

CHAPTER III

A. DESCRIPTION OF BUSINESS ACTIVITY

Coffee Shop serves coffees, teas, milk and snack, and aside from the laboratory

aspect of the café, the venue can also be used to hold small functions, meeting and seminar.

Small, local coffee shop can establish a solid reputation in their communities, attracting

large volumes of highly loyal, sometimes daily patrons. Marketing a coffee shop requires

more subtlety than other business, however, as these establishment is s noncommercial

establishment and serve as a training area for hotel and restaurant student which can

providers a highly social experience greatly reliant on word of mouth advertising and

personal invitations existing customers. YAAZ CAFE & RESTAURANT utilizes a focus

strategy on its market. By specifically primary segments they can cater specifically to their

need

Our target market are all people that they want to eat or to buy our products whether

dine in or take out in our business establishment, especially to the students and employees

of the Imam Abdulrahman Bin Faisal University. Whenever you are single, have partners or

have friends are always welcome to eat and enjoy the snacks and pastries that they want to

13
order.

YAAS Cafe & Restaurant Café target market includes professional and working

class citizens who will appreciate affordable, good quality coffee on their way to work.

Such Customers vary age, although our location is inside the University Area means that

most of our clientele will be college students and faculty. Our market research shows that

these are discerning customers that gravitate toward better tasting coffee. Furthermore, a lot

of college students considers coffee bars to be a convenient studying or meeting location,

where they can read or meet with peers without the necessity to pay cover charges. For us,

this will provide a unique possibility for building a loyal client base

The operation flow will follow the ISO process of the Maanagement, and as part of

the management, Only daily the operating expenses or petty cash will be endorsed to the

manager.

Instructors of Bartending, Bread and pastry, food and beverage can also have their

simulation within the premises. And as a business venture that aims to attract customers who

loves coffee. It is a coffee shop which offers excellent quality of espresso-based coffee and

pastries. It also offers good dining experience managed by the project proponents and

owned by the University Administrators.

A. PRODUCT AND SERVICES

YAAZ CAFE & RESTAURANT offers hot and cold coffee, tea and snacks for the

client and it will be served to them by employees with respect to the customers at their

satisfaction. Espresso, brewed coffee coffees with such varieties such as mocha, candy bar,

latte and brewed coffee. Complementing the coffee will be a smoothie line including wild

14
berry, peach, strawberry and lemonade. Rounding out the simple menu line will be pastries.

The offering may vary with season ability but the primary line will muffins, bread, cookies,

scones and rolls. We are offering at a cheaper price.

PRODUCT DESCRIPTION

Quality of a product service is determined by the customer’s perception of the

degree and excellence of its characteristics. Quality is the key issue of the relationship

marketing which heavily influences the customer’s satisfaction. Most customers thinks that

YAAS Cafe & Restaurant coffee shop offers the same service and products quality as other

coffee shop do.

MENU DESCRIPTION

The names of the products are will be based on the standard recipe of the different

types of coffee so that the customers will not be confused and as part of education the public

of the types of coffee concoctions. Pastries and other products will supplied by the suppliers

of university. Some products are also produced by BSBA from their laboratory in bread and

pastries.

Espresso a short black coffee topped with natural crema (the

Holy Grail of espresso) poured to a length of 30ml and not

filling the cup.

Strong Espresso a double shot of coffee.

15
Short Black an espresso run longer until the cup is nearly full. Should have a dark layer of

cream.

Macchiato meaning stained or spotted (i.e. with milk). A serving of espresso stained with a

teaspoon of milk.

Cappuccino a full-bodied intense espresso topped with two kinds of

heated milk, steamed and frothed. Steamed milk is milk that has been

scalded –its volume is unchanged. Foamed milk is both heated and

aerated. The classic proportions are one-third espresso, one-third

steamed milk and one-third foamed milk.

Café Latte made with espresso and four parts steamed milk with no foam on top.

Vienna Coffee cup is filled two-thirds with espresso coffee and topped with whipped cream.

Mocha a cappuccino with chocolate mixed in by whipping with steam

Frappuccino is a trademark for a line of frozen coffee beverages sold by Starbucks. It

consists of coffee or other base ingredient (e.g., strawberries and cream), blended with ice

and other various ingredients, usually topped with whipped cream.

Milk tea refers to any form of beverage found in many cultures, containing some

combination of tea and milk.

16
MENU PRICING

17
18
19
 Espresso 55 pesos Café Latte 75 pesos

Strong Espresso 60 pesos Vienna Coffee 55 pesos

Short Black 55 pesos Frappuccino 70 pesos

Cappuccino 60 pesos Mocha 65 pesos

Macchiato 55 pesos Milk tea 65 pesos

CHAPTER IV
FINANCIAL ANALYSIS
A. Recipe Costing

Espresso

INGRIDIENTS AMOUNT TOTAL COST

Shot espresso coffee 1shot 3.00

Water 1 cup 0.30

3.30/serving

Yield: 1 serving
Computation:
3.30*400
100 = 13.2

Desired Food Cost of 400% Selling Price

= 13.2 = 55.00 (52.8)

Cappuccino

INGRIDIENTS AMOUNT TOTAL COST

Shot espresso coffee 1shot 3.00

Steamed milk ½ cup 7.50

Milk foam ½ cup 3.75

14.25/serving
20
 Yield: 1 serving
Computation:
14.25*400
100 = 57

Desired Food Cost of 400% Selling Price

= 57 = 60.00

Short Black

INGRIDIENTS AMOUNT TOTAL COST

Shot espresso coffee 1shot 3.00

Water 1 cup 0.30

3.30

Yield: 1 servings
Computation:
3.30*400
100 = 13.2

Desired Food Cost of 400% Selling Price

= 13.2 = 55.00 (52.8)

Mocha

INGRIDIENTS AMOUNT TOTAL COST

Milk 1 cups 15.00

Cocoa 1 tablespoons 0.68

Brown Sugar 1 tablespoons 0.70

Ground Coffee ½ tablespoon 0.59

Vanilla Extract ½ teaspoon 0.14

17.11/serving

Yield: 1 servings
Computation:
17.11*400

21
 100 = 59.86
Desired Food Cost of 400% Selling Price
= 59.86 = 65.00

Macchiato

INGRIDIENTS AMOUNT TOTAL COST

espresso 1 jigger 3.00

chocolate milk 1/3 cup 5.00

syrup 2 tablespoons 1.43

sugar 1 tablespoon 0.55

vanilla extract 1/4 teaspoon 0.07

10.05

Yield: 2 servings 8.86/2 servings = 5.03/serving

Computation:
5.03*350
100 = 20.12

Desired Food Cost of 350% Selling Price

= 20.12 = 55
Cafe Latte

INGRIDIENTS AMOUNT TOTAL COST

Milk 1 1/4 cups 18.75

Flavored syrup 2 tablespoons 2.10

Espresso 1 (1.5 fluid ounce) jigger 3.00

23.35/serving

Yield: 1 serving
Computation:
23.35*300
100 = 70.05

22
Desired Food Cost of 400% Selling Price
= 70.05 = 75.00

Frappuccino

INGRIDIENTS AMOUNT TOTAL COST

espresso 1 jigger 3.00

chocolate milk 1/3 cup 5.00

Flavored syrup 2 tablespoons 2.25

sugar 1 tablespoon 0.55

vanilla extract 1/4 teaspoon 0.07

ice cubes 3/4 cup 0.31

11.18

Yield: 2 servings 11.18/2 servings = 5.59/serving

Computation:
5.59*400
100 = 22.36

Desired Food Cost of 400% Selling Price

= 22.36 = 70

Milk tea

INGRIDIENTS AMOUNT TOTAL COST

Tea ½ cup 8.00

Milk ½ cup 7.50

Flavored syrup 2 tablespoons 2.10

ice cubes 1 cup 0.41

18.01/serving

23
 Yield: 1 serving
Computation:
18.01*350
100 = 63.04

Desired Food Cost of 350% Selling Price

= 63.04 = 70

Vienna coffee

INGRIDIENTS AMOUNT TOTAL COST

Espresso 1 (1.5 fluid ounce) jigger 3.00

Whipped Cream 1 tablespoon 0.74

3.74/serving

Yield: 1 serving
Computation:
3.74*400
100 = 14.96
Desired Food Cost of 400% Selling Price
= 14.96 = 55.00

B. Specification of Equipment

Here are following which is needed in the operation of the business. Cleaning and

maintaining of this equipment must be based on the lifespan of the item

Machineries and Equipment

Item Quantity Unit Price Total Price

Espresso Coffee Maker 1 180,000.00 180,000.00

POS System 1 15,000.00 15,000.00

Blender 1 2,500.00 2,500.00

Television 1 4,500.00 4,500.00

24
 Wi-Fi Router 1 1,500.00 1,500.00

TOTAL 203,900.00

Supplies per Week

Description Quantity Unit Price Total Price

Thermal Paper 2 23.00 46.00

Tissue Paper 3 packs 15.00 45.00

Cleaning Towel 2 8.00 16.00

Sponge and scrub 1 6.00 6.00

Dishwashing Liquid 1 bottle 12.00 12.00

Glass Cleaner 1 70.00 70.00

TOTAL 195.00

Supplies per Month

Description Quantity Unit Price Total Price

Thermal Paper 8 23.00 184.00

Tissue Paper 10 packs 15.00 150.00

Cleaning Towel 3 8.00 24.00

Sponge and scrub 2 6.00 12.00

Dishwashing Liquid 3 bottles 12.00 36.00

Glass Cleaner 2 70.00 140.00

TOTAL 546.00

25
Supplies per Year

Description Quantity Unit Price Total Price

Thermal Paper 90 23.00 2070.00

Tissue Paper 110 packs 15.00 1650.00

Pot Holder 6 5.00 30.00

Cleaning Towel 9 8.00 72.00

Sponge and scrub 6 6.00 36.00

Dishwashing Liquid 30 bottles 12.00 360.00

Glass Cleaner 5 70.00 350.00

Spin mop 1 510.00 510.00

TOTAL 5,078.00

Inventories

Weekly Monthly Yearly

Descrip Unit Quantit Total Quant Total Qty Total

tion Price y Price ity Price Price

Milk 63.00/L 2 126.00 16 1,008.00 160 10,080.00

Cocoa 309.00/ (2) 618.00 (5) 1,545.00 (50) 15,450.00

Powder 454g 454g 454g 454g

Brown 47.00/K 2 94.00 6 282.00 70 3,290.00

Sugar

Vanilla 139.00/ 1 139.00 2 278.00 10 1,390.00

26
Extract bottles bottle bottles bottles

White 55.00/K 3 165.00 8 440.00 80 4,400.00

Sugar

Syrup 100.00/ 2 bottle 200.00 4 400.00 48 4,800.00

(Chocol bottles each bottles bottles

ate,

Caramel

Chocola 120.00/ 3 360.00 10 1,200.00 50 6,000.00

te Bar 100g

Melon 100.00/K 2 200.00 8 800.00 48 4,800.00

Lime 120.00/K 2 240.00 8 960.00 48 5,760.00

Banana 30.00/K 2 60.00 8 240.00 48 1,440.00

Apple 65.00/K 2 130.00 8 520.00 48 3,120.00

Orange 65.00/K 2 130.00 8 520.00 48 3,120.00

Mango 100.00/K 2 200.00 8 800.00 48 4,800.00

Instant 260.00/

Coffee 200g (2) 200g 520.00 (8) 2,080.00 (96) 24,960.00

Granule 200g 200g

Strawbe 100.00/K 2 200.00 8 800.00 48 4,800.00

rries

Waterm 25.00/K 2 50.00 8 200.00 48 1,200.00

27
 elon

Plain 78.00/ (2) 350g 156.00 8 624.00 48 3,744.00

Yogurt 350g

Peanut 75.00/65 (1) 655g 75.00 (30) 225.00 (35) 2,625.00

Butter 5g 655g 655g

Honey 2,500/L 1L 2,500 1L 2,500.00 2 gal 16,000.00

8000/gal

Papaya 20.00/K 2 40.00 8 160.00 48 960.00

Honey 100.00/K 1 100.00 3 300.00 30 3,000.00

Dew

Melon

Vanilla 95.00/ (1) 350 95.00 (3) 285.00 (35) 3,325.00

Yogurt 350g g 350g 350g

Almond 780.00/K 1 780.00 2 1,560.00 20 15,600.00

Powdere 56.00/55 1 56.00 3 168.00 24 1,344.00

d Sugar 0g

Water 25.00/ 3 75.00 15 375.00 36 900.00

gal=20L

Salt 10.00/K 1 10.00 1 10.00 8 80.00

Caramel 100.00/2 1 100.00 2 200.00 22 2,200.00

Sauce 83g

Creamer 67.50/30 2 135.00 7 472.50 75 5,062.50

28
 0g

Chocola 360/gal 1 360.00 2 720.00 20.00 7,200.00

te Ice

Cream

Iced Tea 10.00/ 15 150.00 60 600.00 600 6,000.00

pack

Coffee

Bean 305.00/K 2 610.00 4 1,220.00 48 14,640.00

(Arabica

&

Robusta

Ice 20.00/K 4 80.00 16 320.00 192 3,840

Cubes

Straw 25.00/1 1 25.00 1 25.00 10 250.00

pack(100

pcs)

TOTAL 8,779.00 TOTAL 21,837.50 TOTAL 185,932.50

Kitchen Utensils

Description Quantity Unit Price Total Price

Measuring Cups 1 35.00 35.00

29
 Measuring Spoons 1 35.00 35.00

Measuring Glass 1 55.00 55.00

Weighing Scale 1 255.00 255.00

Spoon 15 15.00 225.00

Fork 15 15.00 225.00

Pastry Plates 15 20.00 300.00

Pitcher 3 65.00 195.00

Irish Coffee Glass 3 box (6 pcs) 150.00 (6 pcs/box) 450.00

Coffee Mugs 20 30.00 600.00

Hi ball Glass 2 box (6 pcs) 150.00 (6 pcs/box) 300.00

Glass (ordinary) 3 box (5pcs) 80.00 (5pcs/box) 240.00

Water Goblet 3 box (6 pcs) 80.00 (6 pcs/box) 240.00

TOTAL 3,155.00

Salary and Wages

The salaries are in minimum wage wherein the project proponents follow the

minimum rate as set by the MOL.

Employee Hour/ Day/ Salary/wages No. of Day/ Salary/wages

Position day week daily (SAR) Employ mont monthly

ees h (SAR)

Manager 8 7 350.00 1 30 10, 500.00

30
 Custodial 8 6 253.00 2 24 12,144.00

TOTAL 856.00 3 22,644.00

Building Cost

Equipment Price

Cements @ 120bags SAR25,200.00

Sand @ 12cum SAR1,560.00

Gravel @ 6cum SAR1,500.00

Back fill @ 38cum SAR4,940.00

Excavation @ 14cum SAR3,500.00

CHB Sand 4’’ @ 35pcs SAR1,750.00

PSB 10mm @ 80pcs SAR9,200.00

Tie wire @ 17kg SAR1,360.00

Tiles @ 700pcs SAR10,360.00

Tile Bounding @ 11bags SAR2,640.00

Colum Post 8’’x8’’@ 6 sets SAR9,000.00

Vertical stubs @ 560 SAR33.600.00

Horizontal stubs @ 420 SAR25,200.00

Hardiflex siding @ 31pcs SAR100.00

Discgride blade @ 2pcs SAR1,400.00

Circular Saw Blade @ 1pcs SAR2,000.00

Drill bits @ 5pcs SAR600.00

CWN @ 60kg SAR4,800.00

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 Cor g1 Sheet 4mm @ 30 LRT SAR1,800.00

Roof nail @ 2kgs SAR200.00

Gutter @ 1pcs SAR200.00

Flashing @ 3pcs SAR600.00

Blind riverts @ 100pcs SAR100.00

Drill bit (metal) @1pcs SAR70.00

Wood Framing @1lot SAR25,500.00

Wood Shingles 0.40mx0.40m @1294lot SAR19,410.00

Interior bar @1lot SAR10,000.00

Exterior bar @1lot SAR15,000.00

0.20mx0.20m wall tile @ 234pcs SAR11,700.00

0.20mx0.20m Unglazed floor @ 25pcs SAR1000.00

Cement mortar @ 1bag SAR250.00

White cement filter @5kgs SAR125.00

Rough-in @1lot SAR9,000.00

Fixture @ 1lot SAR8,000.00

Misc. Fees 1,000,000,00

Total SAR1,000,241,675

C. Commencement Capital

The financial cost will be provided by the University since it is owned and a part of

Imam Abdulrahman Bin Faisal University. Since it is just a renovation, there will be

minimal cost because the Student lounge are is still in a good condition.

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The initial capital of the will be SAR 623,113.5

33
Total Project Cost

COST FACTORS AMOUNT

Construction Cost (Renovation) 241,675.00
 Interior design
 Exterior design
- Paving Bricks
- Tables and Chairs with
umbrella
- Others

Pre operating Expenses 2,000.00

 Recipe testing

Equipment and Machineries 207,055.00

 Espresso Coffee Maker
 POS System
 Bakery Case Refrigerated
 Blender
 Television
 Wi-Fi Router
 Kitchen equipment

Startup Cost 22,383.50

 Supplies per month
 Inventories per month

TOTAL INVESTMENT COST 623,113.5

Projected Income Statement

For June 13-19, 2016 (per week)

Sales 6,500.00

Cost of Sales (15%) 975.00

Gross Profit 5,525.00

Less: Operating Expenses

Supplies 195.00

Net Profit 5,330.00

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 Projected Income Statement

For June-July, 2016 (per month)

Sales 27,500.00

Cost of Sales (15%) 4,125.00

Gross Profit 23,375.00

Less: Operating Expenses

Supplies 546.00

Net Profit 22,829.00

Projected Income Statement

For June-May, ‘16-17 (per year)

Sales 900,000.00

Cost of Sales (15%) 135,000.00

Gross Profit 765,000.00

less: Operating Expenses

Supplies 5,078.00

Net Profit 759,922.00

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Income Statement forecast

Forecast Income Statement for Five (3) Years

2016 2017 2018

Sales 900,000.00 1,035,000.00 1,190,250.00

Costs of Sales 15% 135,000.00 155,250.00 178,537.50

Gross Profit 765,000.00 879,750.00 1,011,712.50

Less: Operating

Expenses

Supplies 5,078.00 5,585.80 6,423.67

Net Profit 759,922.00 880,914.20 1,005,288.83

Note: Increase in revenue for all the year is 15%.

Profit Sharing

University HRM departement

30%

70%

Seventy percent (70%) of the profit will be for the University Administrators for the

maintenance of the café and for the operating and other expenses of the café as well as the café’s

indirect expenses (electricity, water bills, etc.) Thirty percent (30%) will be for the BSBA

department and this will help them for their laboratory expenses and it will also serve as their

fund and it will use for academic purposes.

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 CHAPTER V

A. Licenses and Registrations

The YAAS Cafe & Restaurant Café is tied up with the business licenses and

registrations of Imam Abdulrahman Bin Faisal University.

B. Business Advisors

The YAAS Cafe & Restaurant Café business advisors of Imam Abdulrahman Bin

Faisal University.

Banker

JOSSIE BULUSAN
Vice President, Finance
Imam Abdulrahman Bin Faisal University

Lawyer

ATTY. ROBERT CAMARILLO

Assistant of the President
Imam Abdulrahman Bin Faisal University

Accountant

FEDINANAD QUIROGGA
Chief Accountant
Imam Abdulrahman Bin Faisal University

C. Industry Analysis

The YAAS Cafe & Restaurant Café is located inside Imam Abdulrahman Bin Faisal

University wherein the project proponents renovated the University Hostel with its indirect

competitor, the IMAM ABDHULRAHMAN BIN FAISAL UNIVERSITY Cafe Restaurant

in which they serve drinks and as well as foods. The YAAS Cafe & Restaurant Café has its

direct competitor which is Bon Appetea that is located outside/in front of the school where

in some student’s loves to go through and the Stone House.

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 The three major competitors of the coffee shop is not a hindrance to the future

operational success because based on the survey that we’ve conducted 85% of the

respondents would like having a coffee shop inside the University and majority of them has

visited a coffee shop and they often go. The YAAS Cafe & Restaurant Café has its market

which is the students especially young generations who loves coffee because they will be

our walking advertisers as well as the employees, graduates of the University and the

possible visitors of the University.

D. Key Success Factors

o Store design that will be both visually attractive to customers, and designed for

fast and efficient operations.

o Employee training to insure the best coffee preparation techniques

o Marketing strategies aimed to build a solid base of loyal customers, as well as

maximizing the sales of high margin products, such as espresso drinks.

o Provide the best products and easy to recall to every customers so that it’s their

trademark for them to go back again in our business.

o Staff. Hire employees with a work experience and have a strong background with

the position that they want to fill up if they are fit to their job satisfaction.

o Product. They must be original recipe or menu with no copying of different styles

to the other business establishment.

o Service. Serve your customers very well and treat them properly. Because

customers always right. Be humble to every customers.

o Maintaining a cost of goods on foods at below 50%.

o Excellent customer service.

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 o Attracting customers who find value in the YAAS Cafe & Restaurant, Coffee

Shops offering and who will frequent the Shop regularly in order to meet like-

minded single people.

E. Competitive Environment/ Competitive Analysis

Among other establishments that offer coffee drinks to their customers are most

YAAS Cafe & Restaurant’s limited and full service coffee shops. YAAS Cafe & Restaurant’s

direct competitors will be other coffee shops located at University of Northwestern area. A

food service establishments that offers coffee. YAAS Cafe & Restaurant will definitely be

one of the major competitors because of its strong financial position and established

marketing and operational practices. However, despite of YAAS Cafe & Restaurant’s

entrenched market position, many customers favor smaller, independent establishments that

offer cozy atmosphere and good coffee affordable prices. YAAZ CAFE & RESTAURANT is

a good example of such competition. We estimate that YAAS Cafe & Restaurant’s hold

approximately 35% market share in that neighborhood, YAAS Cafe & Restaurant’s appeals

25% of customer’s, with the remaining market shares split among other establishments.

YAAS Cafe & Restaurant will position itself as a unique coffee shop that not only offers the

best tasting coffee and pastries but also provide home-like cozy and comfortable

environment, which established corporate establishment’s lack. We will cater to customer’s

bodies and minds, which will help us grow our market shares in this competitive market.

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Competitors SWOT analysis

Indirect
Strength Weakness Opportunity Threat
Competitors

Stone House Well-known Very expensive Accessible location Located near

prices of products of our target markets Imam

not for students Abdulrahman

Bin Faisal

University

Bon Appetea Well-known Limited space for Accessible location Located near

customers of our target markets Imam

Abdulrahman

Bin Faisal

University

Joe 10’s Well-known Too expensive food Location wise Changing

Coffee items market tastes

City Cup Café Well-known No parking area Along high way Intense

competition

Tea Well-known Limited space for Near the church Increasing

Generation customers number of

competition

F. Market Segmentation

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 Geographic

YAAZ CAFE & RESTAURANT is located inside Imam Abdulrahman Bin Faisal

University at the IMAM ABDHULRAHMAN BIN FAISAL UNIVERSITY. They have a

huge number of enrollees and employees.

Demographic

The customers of the café are the Imam Abdulrahman Bin Faisal University

students, employees, graduates and possible visitors of the University. There will be no age

limit because we will not just be offering coffees and teas but we will be offering varieties of

pastries and smoothies.

Anticipated Percantage of NWU

Population
0.8

0.7
70%
0.6

0.5
Percentage

0.4

0.3

0.2
20%
0.1
10%
0
Students Faculty Other Employees

Psychographic

The coffee shop is open and it suits all levels of the society from the high class

(white collar jobs/professionals), to average and down to below average depending on their

41
product choice and prices are in moderate range.

Behavioral

Coffee shops are very popular nowadays this is because it is already part of our

lives to drink coffee anytime of the day. Coffee gives extra relaxation to the customers and a

time to think YAAS Cafe & Restaurant will provide the best products to the target market to

promote brand loyalty.

Marketing Research Findings

During the initial phases of the marketing plan development, several focus groups

were held to gain insight into a variety of likely customers. These focus groups provided

useful insight into the decision making process of these customers. An additional source of

dynamic market research is a feedback system based on a suggestion card system. The

suggestion card has several statements that patrons are asked to rate in term of given scale.

There are also several open ended questions that allow the customers to freely offer

constructive criticism or praise. The YAAS Cafe & Restaurant will offer coffee beverages,

teas, chocolate drink, milk, and snack. Hard implementation of policy and reasonable

suggestion will be audited in order to improve their service offerings as well as show their

committed to the customers that their suggestion is valued.

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 CHAPTER VI

A. DEFINITION OF TERMS

Espresso a short black coffee topped with natural crema (the Holy Grail of

espresso) poured to a length of 30ml and not filling the cup.

Strong Espresso a double shot of coffee.

Short Black an espresso run longer until the cup is nearly full. Should have a dark

layer of cream.

Macchiato meaning stained or spotted (i.e. with milk). A serving of espresso

stained with a teaspoon of milk.

Cappuccino a full-bodied intense espresso topped with two kinds of heated milk,

steamed and frothed. Steamed milk is milk that has been scalded –its volume is unchanged.

Foamed milk is both heated and aerated. The classic proportions are one-third espresso, one-

third steamed milk and one-third foamed milk.

Café Latte made with espresso and four parts steamed milk with no foam on top.

Vienna Coffee cup is filled two-thirds with espresso coffee and topped with

whipped cream.

Mocha a cappuccino with chocolate mixed in by whipping with steam

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 Frappuccino is a trademark for a line of frozen coffee beverages sold by Starbucks.

It consists of coffee or other base ingredient (e.g., strawberries and cream), blended with ice

and other various ingredients, usually topped with whipped cream.

Milk tea refers to any form of beverage found in many cultures, containing some

combination of tea and milk.

A. PERSPECTIVE VIEW

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