Introduction of a Feasibility Study About Coffee Shop

CHAPTER I

INTRODUCTION

Food and beverage business is one of the most lucrative and profitable business with a high potential expansion and growth especially if the owner have already the knowledge to run a business.  According to Statistics Canada, the food and beverage sector comprises “establishments primarily engaged in preparing meals, snacks and beverages, to customer order, for immediate consumption on and off the premises” (Government of Canada, 2012). This sector is commonly known to tourism professionals by its initials as F&B. The food and beverage industry grew out of simple origins: as people travelled from their homes, going on a business trip, they often had a need or desire to eat or drink. As the interests of the public became more diverse, so too did the offerings of the food and beverage sector.

Today, coffee is known worldwide and has ranked second to oil in terms of global demand. About 25 million people worldwide, mostly small farmers, depend on coffee farming for livelihood. Based on 2013 figures of the International Coffee Organization (ICO), 145 million bags (@60 kg/bag) of coffee were produced by exporting countries valued at US $ 21 billion. Around 34% of the total produce came from Brazil, followed by Vietnam and Indonesia, with 18% and 8% contributions, respectively. The Philippine coffee production accounted for less than one percent (1%).

We all know that Batangas is known for its balisong, different delicacies, beaches and diving spots and most especially, the Taal Volcano which is one of the smallest active volcano in the world. But then, there is one product that all Batangueños are truly proud of, for its great aroma and perfect match with the native delicacies and the benefits that can receive from a bean called the Kapeng Barako. According to juankakanin.wordpress.com, Kapeng Barako is a variety of coffee grown in the Philippines, most particular in the provinces of Batangas and Cavite. Kapeng Barako belongs to the species of Coffea Liberica. Barako is Filipino term associated with the image of a tough man. Barako assumingly takes the term given to a wild boar or what we called baboy ramo. And maybe that is the reason, our local coffee is called barako is that it is extreme, strong, pungent, and well liked by wild boar. 

According to wow.batangas.com, Lipa became the fourth largest coffee producer in the world in 1880s, with production adequate to cover the shortage of coffee beans from Brazil, the top producer, which was then hit with coffee rust. This paved the way to a period of great prosperity for Lipa and the golden years of coffee in the country. Lipa was the first Coffee Capital of the Philippines.

In addition, the coffee industry and barako identity of Batangas will be revived and found only if we start drinking kapeng barako ourselves and create the demand to push coffee farmers to start growing again. This will involve a huge information campaign and a necessary culture change, and will require collaboration between the farmers, the local and provincial government, and us barakos.

Coffee shop is an establishment which primarily serves prepared coffee or other hot and cold beverages. It partakes some of the idea of a bar, and some of the characteristics of a restaurant, but totally unlike from a cafeteria. Coffee houses focus on providing coffee and tea as well as light snacks. According to Rodriguez, Ma. Cecilia (2016), Kapeng Barako from the Batangas region is now gaining popularity among consumers, mainly for its unique, authentic, and traditional appeal.

Nowadays, a lot of coffee shops are being established around Batangas City. There’s a huge competition in this kind of business. Merely, coffee shop is one of the easy to establish business because there’s no need to occupy an extensive space.

Many people are urging to put up a business like coffee shops, and this study will tackle first their success indicators and their preparation in putting up a business who wishes to establish a coffee shop, this paper will help them a lot.

Statement of the Problem

The study aims to identify the problems of the researchers. In order to gather information, the researchers formulate the following questions that can be used to a solution to solve the problem. Specifically, this study aims to answer the following questions:

1. Who will be the prospective target market of the proposal in terms of:

1. Age
2. Sex
3. Income for employed and allowances for students
4. Religion

1. What are the edges of Kape Ala Eh among the others?
2. How many employees will the business are accepting?
3. How much capital is needed to establish the business?
4. What would be the demand of the Kape Ala Eh?
5. What strategies and techniques would be used in order to advertise the business?

Scope and Limitation of the Study

        This study entitled Kape Ala Eh will cover how feasible to establish a coffee shop in Batangas City despite of having a lot of coffee shops around the said location. The aspects looked into were the qualifications of the researchers, their methods and strategies, facilities forms, problems and proposed solutions to problems.

         Doing this kind of study is limited only to a research covering the effectiveness in putting up a coffee shop and the marketing strategies applied to their establishment and the impact of this strategies to their business targets and on how the strategies work with their compete on the industry.