Republic of the Philippines

Department of Education
REGION III
SCHOOLS DIVISION OF CABANATUAN CITY
SAN JOSEF NATIONAL HIGH SCHOOL

Accountancy Business Management

SY – 2021 – 2022

“Feasibility Study of Coffee Break Cakes”

Submitted by:

Maxin Grace Dela Paz

Justine Samson

Mikka Ella B. Galindez

Railey De Lara

Princess Niña Jorduela.

Christopher Ryan Canapi

Mary Joyce Cunanan

Megan Pangilinan

Gian reymarc A Esteban

Jenavee S. Espino

Janna Lorraine Enrile

ABSTRACT

The purpose of the study is to determine the feasibility of

opening a pastry shop selling different types and flavors of cakes

that can also come up with a drink, coffee can also encourage

customers to stay longer, in SM City Cabanatuan at Baranggay H.

Concepcion, Along Maharlika Highway,Cabanatuan city, Nueve Ecija.

Coffee Break Cakes is a store where you can eat varities of cakes

during your breaks to de-stress and rest in our comfortable place. The

study will first look at the literature regard to the business, then

follow the steps proposed to conduct a feasibility study of the

proposed business. The Datas will be gathered through the use of

online surveys.
Table of Contents

Abstract

CHAPTER 1

Background of the Study .........................................

Statement of the Problem ........................................

Conceptual Framework ............................................

Significance of the Study .......................................

Scope and Limitations of the Study...............................

Definition of Terms .............................................

CHAPTER 2 - REVIEW OF RELATED LITERATURE

Introduction about the RRL.......................................

Body......................................... ...................

Conclusion ......................................................

CHAPTER 3 – METHODOLOGY

Research Design .................................................

Research Locale .................................................

Sample and Sampling .............................................

Research Instrument .............................................

Date Gathering Procedure ........................................

Marketing Aspect ................................................

Management Aspect ...............................................

Technical Aspect ................................................

Financial Aspect ................................................

CHAPTER 1

BACKGROUND OF THE STUDY

The paper is to present a feasibility study for a pastry shop

selling different types of cakes and breads in SM Cabanatuan City,2nd

floor.

A Coffee Break Cakes is a type of business that sells different

kind of cakes and pastries to serve on our valued customers to give

them a delicious food and also a comfortable place where they can stay

and relax while taking a break from work.

The pandemic affected many people and also affect their mental

health, so we want to build this business to give food that can lessen

their stress and give them a comfortable place to relax while they

enjoy their food.

We are offering delicious and quality products as a treat for

their selves after a stressful work and before they dug into work

again.
STATEMENT OF THE PROBLEM

The purpose of the study is to determine the feasibility of

opening a pastry shop in SM City Cabanatuan. Data will be collected

through an online survey distributed to potential customers in

Cabanatuan City, Nueva Ecija.

The following questions will be answered after the completion of the

research:

1) Is the proposed location of the business can help to to gain

more profit?

2) Who are the competitors of the proposed business?

3) Will the proposed business be able to gain profit with the

proposed pricing and operation hours?

CONCEPTUAL FRAMEWORK

The study of comprises products and equipment, product process,

materials and labor, location and layout building in this area, it

discusses about how "Coffee Break Cakes" is produced and what are the

equipment and ingredients needed.

The marketing research looks at the overall state of the firm,

the competitive landscape, the target market, demand, promotion,

product, supply, price strategy, and packaging. This is about the

respondents filling out a structured questionnaire to determine the

findings and demand to know if the product has penetrated the target

market.

Financial study shows the capitalization, total expenses, income

statement, cash flow statement, return on investment, source of funds,

and total sales are all included in the financial analysis. This

section discusses whether the business is profitable or not, as well

as whether or not sales are increasing.

SIGNIFICANCE OF THE STUDY

The study will give the consumers a quality product and a place

to relax whenever they need a break from work.

This section will provide a various significances of the study

given.

To the customers- the researchers believed that the customers will

feel at ease in our shop while eating cakes and sipping drinks from

our menu. We will give them a total break after working for hours. The

staffs will serve them at their best.

To the researcher- by doing this study, the researcher will gain

skills and knowledge on building a business that they can use in the

future. This paper can help them enlighten with regards of the reality

of building a business as we walk towards the path of business world.

To the economy- this business can help individuals to have a job by

working in our shop. This can minimize the people who are jobless in

our country. We will be needing employees that can help us to serve

our customers.
This study aims to launch a business that can give consumers the

best foods they can eat when they are worn-out. This also aims to give

customers a place they can go to relax for a bit before continuing to

work.

SCOPE AND DELIMITATION

The study focused on determining the viability and profitability

of putting up a bakery shop in Maharlika highway, Cabanatuan city. The

study also focused on discussion of the five (5) major aspect of the

business. The marketing aspect, which highlighted the products to be

offered and its prices, target market and the promotional process and

service flow. The management and orientation aspect, which showed the

form of business organizations, the employees to be hired, and their

salaries to be received. The financial aspect which emphasizes the

performance and condition of our bakery for the incoming years.

Lastly, the socio-economic aspect which showed the benefit of the

business to the economy and the society. Thus, study was delimited

from the data where the researchers gathered from the respondents. In

making the research, a time frame proposal, indicating the sequence of

research phase and the time that will probably need for each phase can

help to organize the study.

DEFINITION OF TERMS

For a better comprehension on this feasibility study, the

following definitions of terms are provided:

Coffee Break Cakes-The name of the proposed business that the

researchers want to establish in (place of business).

Pastry shop - this is the proposed business that the researcher's want

to establish.

Feasibility- the study that researchers conducted the refers to an

analysis and evaluation of a proposed project to a determine if it is

technically feasible if it is possible within the estimated cost and

if it will be profitable.

Consumers- a person who purchases goods and services.

CHAPTER 2

REVIEW OF RELATED LITERATURE

INTRODUCTION ABOUT THE RRL

This chapter presents the related literatures and studies that

will focus on the demographic characteristics and consumers, the

business’ competitions and the site-selection for a start-up pastry

shop.

This will also offer the conceptual and practical definition of

terms that are important and related to our study.

BODY

A. Demographics characteristics

A younger customers may order a cake from a bakery, while

families may drop by for chocolate cake. Orders for vanilla cakes for

birthdays and other special events may come from high-income

households. The product mix and pricing strategy would depend on the

location and the competitive environment. For example, a bakery in an

upscale neighborhood may decide to offer more custom cakes in its

stores than birthday cake, which should mean higher margins but lower

volumes. In a working-class neighborhood, a bakery may offer more cake

and other items in the low end of the price range a custom cake. The

margin on each item may be less, but the bakery should generate high

profits if it sells enough items.

B. Competition

Nowadays, with the trend of globalization, the service industry

is becoming more competitive and complex. An analysis of the strength

and weakness of small and large enterprise of the bakery industry was

also carried out to reveal their competitive advantage and weakness.

Companies do not always have the ability to determine the selling

price of the product as desired because there are a number of

competitors offering a certain price of the product. This study looks

at the consumer demographics and their preferences for purchasing

offline or online. In order to building a strong relationship with

customers as well as maintaining customer satisfaction and loyalty,

which are crucial factors for any enterprise to grow sustainability.

C. Site selection for a start-up pastry shop

Your business location can have serious implications on your

ability to minimize costs, avoid risks, attract employees (and in

retail, customers), and grow.

However, business site selection is more complex than picking an

attractive lease in a buzzworthy zip code. Without the right process

in place, what looks good on paper may be bad for your business.

Collect in-depth data to select top options:

 Access to major roads, highways, airports, and quality

infrastructure

 Zip code-by-zip code demographics on your talent- and customer-

pool, including education and household income

 Competition, including size, location, and average wages

 Finances: including utility and logistics costs, labor costs, tax

rates, and government tax incentives

 The local economy, including major industries, recent market

trends, and forecasts

 Environmental factors that could put your business, office, or

employees at risk in the short- and/or long-term—or influence

public policy, employee turnover, or operations

.
CONCLUSION
CHAPTER 3

METHODOLOGY

RESEARCH DESIGN

The study entitled a Coffee Break Cakes is a type of quantitative

study and will use descriptive research design. Descriptive research

in a type of strategy for obtaining information to systematically

describe a phenomenon, situation, or population. It also helps to

answer what, when, where, and how questions regarding on the research

problem. Researcher goal is to gain better understanding regarding on

this type of business most on this time that individuals are affected

of pandemic (COVID-19). In this study, the researchers will determine

on how we pursue this type of business-like Coffee Break Cakes.

RESEARCH LOCALE

The researchers floated the survey questionnaire around

Cabanatuan city, Nueva Ecija. The researcher will use an online survey

to distribute questionnaires. Links will be provided to the

respondents.

The respondents are from different places around Cabanatuan and

will be brief on what the research is about. Therefore, in the area

the researchers planned to have their business is in SM City

Cabanatuan.
SAMPLE AND SAMPLING

We utilize non-probability sampling since it is appropriate for

our business and allows us to select the sample quickly. We collect

data by polling a group of students and workers. The majority of those

polled enjoy coffee and cakes because having a place to study and work

is a really comfortable place to stay in the new normal. That is why

we chose a group of people at random to get information.

The sample size is anticipated to be 100 persons, students and

workers agree to have a comfortable environment to work and study, as

well as a room to relieve tension at school or work and collect data

on population samples.

RESEARCH INSTRUMENT

The researchers will use online surveys to collect data. This

will be used because it can gather data faster and safer during the

pandemic. It also saves so much time and the datas can be instantly

available and easily transferred into a specialized statistical

software or spreadsheets when more detailed analysis is needed.

Besides the respondents were the future customers which are gen z,
millennials, employees, and employers in the SM Cabanatuan that are

more inclined in social media. This online survey has questions that

include the age, gender ,civil status, highest educational attainment

and their average monthly income. The survey will also include a

question asking how often they eat pastries and their preference when

it comes to desserts. Online surveys are usually more accurate than

other methods. Since the respondents record their own answers, there

is no opportunity for an interviewer or facilitator to misinterpret a

response and there is a better chance that respondents will be fully

honest.

DATA GATHERING PROCEDURE

The researchers will use online survey to collect and gather data

from respondents. Links with questionnaire will be sent online for the

respondents. Online survey will be used because it is the safest way

to collect data during the pandemic. It will be much easier since the

target market is millennial who uses social media where the links will

be provided. The links will be sent and posted on social medias to

reach the respondents. The data thaw will be collected will be used by

the researchers to enhance and meet the wants or needs of the

potential customers.
The researchers will use online survey to collect and gather data

from respondents. Links with questionnaire will be sent online for the

respondents. Online survey will be used because it is the safest way

to collect data during the pandemic. It will be much easier since the

target market is millennial who uses social media where the links will

be provided.

The links with the questionnaire to be used will be tested for

its reliability and validity before it is to sent to the target

population. The links will be sent and posted on social medias to

reach the respondents. The data thaw will be collected will be used by

the researchers to enhance and meet the wants or needs of the

potential customers.

The respondents will be informed about the nature of the study.

The data will be secured to ensure the freedom of choice.

MARKETING ASPECT

Promotions and strategies - social media nowadays is among the

‘best possibilities available’ to an item to get in touch with

potential customers. Community social networking websites are the

method to interact socially. These new media win the believe of

customers by linking with them at a deeper level. Community online

marketing is the new mantra for several manufacturers since early a

season ago.

Our marketing strategy seeks to optimize our advantage of prime

location. We want customers to see us as part of their daily

experience, and a shop they can depend on for a quick rest after a

long day of working.

MANAGEMENT ASPECT
TECHNICAL ASPECT

Product Description

This cake is a delicious gift for a real cake lover, it is light

and fluffy. It melts in your mouth. It's a Filipino cake taste with

the twist as it has flavors of your choice chocolate,

cheese ,ube ,vanilla chiffon cake, strawberry, blue velvet and others

flavors. We made sure to use the best quality ingredients worth for

your money.

Product Process

Manufacture of Bread, Biscuit, Cake, Cookies, Muffins Baking is

a food cooking method that uses prolonged dry heat by convection,

rather than by thermal radiation. Heat is gradually transferred from

the surface of cakes, cookies and breads to their center.

We will mix the ingredients by using our equipment then cook it.

The mixture will depend on what type or flavor of cake the customer

wants.

Oven- An oven is a tool which is used to expose materials to a hot

environment. Ovens contain a hollow chamber and provide a means of

heating the chamber in a controlled way.

Refrigerator- A refrigerator, colloquially fridge, is a commercial and

home appliance consisting of a thermally insulated compartment and a

heat pump that transfers heat from its inside to its external

environment so that its inside is cooled to a temperature below the

room temperature.

Stand Mixer -is a kitchen device with a gear in the middle. It

automates the stirring, whisking, or beating process of food

preparation. It has a body that holds the mixer and lets it stand

alone.

Food Processor - is a kitchen appliance used to facilitate repetitive

tasks in the preparation of food.

Dough Mixer- is a specialized type of food mixer that is designed

primarily to prepare dense, heavy mixtures, such as bread and pizza

doughs. Unlike planetary mixers, dough mixers have a stationary shaft

and a moving bowl that goes around the fixed agitator. The movement of

the bowl allows for a more uniform distribution of the heavy dough.

Proofing Cabinet- Breads, donuts, and croissants need to rise before

they are put in the oven for baking. For this process, you’ll need

proofing cabinets, which create the ideal environment for yeast to

thrive and allow the dough to rise properly after it has been worked

into its final shape.

Baker’s Table- You need strong and sturdy tables to accomplish most of

your baking tasks, from hand-rolling, kneading, and cutting dough to

slicing, peeling, and chopping ingredients and decorating your cakes,

pastries, and other baked goods.

Oven Racks- useful for holding large quantities of full-size and half-

size sheet pans. Whether you need to put these in the refrigerator for

cooling, in the proofing cabinet for proofing, or in the oven for

baking, oven racks let you move and processes high volumes of food

items at once.

Display cases- allow you to attract customers with mouthwatering

displays of your food products while keeping the items at ideal

holding temperatures. Bakery display cases can be refrigerated, non-

refrigerated, or heated.

Drink Dispenser- is another useful piece of equipment to enhance your

front-of-house service. This is used to dispense pre-made drinks, such

as lemonade or ice tea. A refrigerated dispenser keeps your beverages

cool without diluting the flavor with ice.

Coffee Makers- Bakeries that serve coffee need standard coffee

brewers for making regular black coffee and an espresso machine or two

for making that thick, flavorful, and intense drink that is used for

plenty of espresso-based drinks, from flat whites to lattes and

cappuccinos.
FINANCIAL ASPECT

Financial feasibility focuses specifically on the financial

aspects of the study. It assesses the economic viability of a proposed

venture by evaluating the startup costs, operating expenses, cash flow

and making a forecast of future performance. The results from a

financial feasibility study determine whether the proposed project is

financially possible and make a projection on the rate of a return on

invested capital.

Maxin needs to have the initial capital of 150,000 for the

startup cost. This will cover all the materials and ingredients that

will be needed to open the business. But because Maxin can't provide

to cover all the expenses, her friends and family will contribute as a

financial backer.

Below are the cash flows and expenses for 5 years of running the

Coffee Break Cakes:

The pa