Chapter I

Description of the Study

1.1 Overview of the Study

Our feasibility study aims to assess the viability of establishing Café

Nebula in Kagawasan, Dimataling. This study will delve into various aspects

such as market analysis, financial projections, operational considerations,

and potential risks to determine the feasibility of this venture.

1.2 Background of the Study

The inception of Café Nebula in Kagawasan, Dimataling, stems from a

strategic analysis of the local market and vision to provide a distinctive

culinary experience that resonates with the community’s preferences and

aspirations. Situated in heart of Kagawasan, Dimataling, Café Nebula

aspires to become the go-to destination for residents and visitors seeking a

harmonious blend of premium coffee, delectable cuisine, and welcoming

atmosphere.

1.2.1 Market Analysis:

The decision to establish Café Nebula is underpinned by thorough

examination of prevailing market trends and consumer behaviors within the

local community. A burgeoning demand for specialty coffee and artisanal

dining experiences has emerged, driven by a discerning clientele seeking not

only exceptional taste but also a memorable ambiance. This trend aligns

seamlessly with Café Nebula’s mission to redefine the café landscape in

Kagawasan, Dimataling, by offering a curated selection of gourmet coffee

blends.

1.2.2 Regulatory and Environmental Factors:

Comply with legal mandates but also contribute positively to the local

ecosystem.

1.3 Objectives and Scope

General Objectives:

To assess the feasibility of studies establishing Café Nebula in

Kagawasan, Dimataling, as a viable business venture. Additionally, to

identify and analyse the key factors influencing the success and

sustainability of Café Nebula in the local market.

Specific Objectives:

 Market Analysis:

Conduct a comprehensive study of the local market in Kagwasan,

Dimataling, to understand consumer preferences, competitor

landscape, and demand for café offerings.

 Financial Projections:
 Develop detailed financial projections to estimate start-up costs,

operational expenses, revenue potential, and projected profitability

over a specified period.

 Operational Considerations:

Evaluate operational aspects such as suitable location options,

staffing requirements, menu offerings, supply chain logistics, and

infrastructure needs for Café Nebula.

 Regulatory Compliance:

Ensure compliance with local regulations, zoning requirements, health

and safety standards, and other legal obligations necessary for

establishing and operating Café Nebula in Kagawasan, Dimataling.

The Scope of this feasibility study encompasses all relevant factors and

objectives necessary to comprehensively evaluate the feasibility and viability

of the venture in Kagawasan, Dimataling.

 Chapter II

Market Feasibility (Survey)

2.1 Survey Design and Methodology

In this chapter, a survey is used as the main data collection

instrument to examine the commercial viability of Café Nebula in

Kagawasan, Dimataling. To determine the demand for the planned café, the

survey attempts to measure potential customers' interests, preferences, and

spending habits to assess the demand for the proposed café.

2.1.1 Target Audience

The target audience for the survey will be;

 Local community and Students (aged 18-35): Paper-based survey

distributed at Zamboanga del Sur Provincial Government College –

Dimataling.

2.1.2 Survey Channels

 Paper-Based Survey: A visually appealing and concise survey will be

printed in English for wider accessibility. Distribution partners will be

briefed on the survey's purpose and encouraged to promote

participation.
2.2 Survey Structure

Introductory Section:

 Thank participants for their time and participation.

 Briefly explain the purpose of the survey and assure anonymity.

 Indicate the estimated survey completion time (around 10 minutes).

Demographic Question:

 Age

 Gender

Coffee & Café Habits:

 What types of coffee drinks do you typically order? (Multiple choice

and open-ended options)

 What is your typical spending range for a coffee drink?

 What is your ideal café atmosphere? (Multiple choice and open-ended

options)

 What additional offerings would you like to see in a cafe (e.g., pastries,

snacks, Wi-Fi)?

Café Nebula Specific Questions:

 Have you heard of Café Nebula (pre-launch awareness assessment)?

 What aspects of the proposed Café Nebula concept (specialty coffee,

pastries, and ambiance) appeal to you? (Multiple choice and open-

ended options)
  What price range would you consider reasonable for coffee drinks and

pastries at Café Nebula?

 Would you be likely to visit Café Nebula regularly if it opened in

Kagawasan/Dimataling?

2.3 Data Analysis

Quantitative data will be analysed using descriptive statistics

(frequencies, percentages, and means) to understand overall trends and

preferences.
 Chapter III: Technical Feasibility

Respondents Demographics

Respondents

Due to a large number of people that may become the possible

costumers, the researchers got at least 50 respondents from the identified

research locale. Respondents were identified immediately after they showed

interest in buying coffee.

Colleges No. of respondents

Information System 15

Associate Computer Technology 15

Education 20

TOTAL 50

Table 1.1
Sex Distribution:

Sex Distributi on

GENDER
FEMALE
Male 30

MALE Female 20

0 5 10 15 20 25 30
Table 1.2

The results show that 50 of our respondents are 30 male and 20

female.

Age Distribution:

AGE NO. OF RESPONDENTS PERCENT

18 years old 15 30%
19 years old 14 28%
20 years old 10 20%
21 years old 2 4%
22 years old 2 4%
23 years old 3 6%
24 years old 2 4%
27 years old 1 2%
38 years old 1 2%

TOTAL 50 100%

Table 1.3
 Age Distribution
60 35.00%
30.00% 50 30.00%
50 28.00%
25.00%
40
20.00% 20.00%
30
15.00%
20 15 14 10.00%
10
10 6.00% 5.00%
2 4.00% 2 4.00% 3 2 4.00% 1 2.00% 1 2.00%
0 0.00%
18 19 20 21 22 23 24 27 38 TOTAL
years years years years years years years years years
old old old old old old old old old

No OF RESPONDENTS PERCENT

The results show that over 30% of our respondents are 18 years of
aged.

Demand Study

1. What qualities or features do you look for when choosing a coffee shop

in Barangay Kagawasan?

18
17
18
16 Respondents’ Answer
14
12
9 A. Convenient location 9
10 8
8 B. Cozy ambiance 8
6
4
C. Variety of menu options 18
2
0
D. Friendly customer service 17

Table 1.4
 The result shows that over 18 of the respondents chose a variety of

menu options while 17 of the respondents chose friendly customer service

this result implies that our product will be viable to the target consumers

who are looking for qualities when choosing coffee shops.

2. Are you interested in trying unique or specialty coffee blends?

45
30 42 Respondents’ Answer
15 6 2
0 A. Yes, I enjoy exploring unique
42
blends

B. No, I prefer classic coffee options 6

C. None of the above 2

Table 1.5

The result shows that over 42 of the respondents enjoy exploring

unique blends while 6 respondents prefer a classic coffee options and 2

none of the above. The result implies that our product has a big chance that

to be patronized by the consumers based on the result.

 3. Are you more likely to support a coffee brand that contributes to local

initiatives?

50
40
30 45
20
10 3 2
0
A. Yes, I appreciate brands B. No, it doesn't impact C. None of the above
supporting local initiatives my choice

Respondents’ Answer

A. Yes, I appreciate brands supporting local

45
initiatives

B. No, it doesn't impact my choice 3

C. None of the above 2

Table 1.6

The result shows that over 45 respondents appreciate brands

supporting local initiatives while 3 respondents don’t impact their choice. By

these results, we are confident that our products will be patronized by the

consumers.
 4. What factors influence your decision to try a new coffee brand?

32
35
30
25
20
12
15
6
10
5
0
A. Positive reviews from B. Promotions and C. Environmentally
friends or online discounts friendly practices

Respondents’ Answer

A. Positive reviews from friends or online 6

B. Promotions and discounts 12

C. Environmentally friendly practices 32

Table 1.7

The result shows that over 32 respondents influence in

environmentally friendly practices while 12 respondents like promotions and

discounts and 6 respondents finds positive reviews from their friends or

online. These results gave us the perspective on how will we handle the

following factors that will affect the product operation based on the

respondents' responses.
 5. What specific features or services do you expect from a coffee shop

that would make you a regular customer?

18
16
14
12
10 18 17
8
6 9
7
4
2
0
A. Consistent high- B. Free Wi-Fi C. Comfortable D. Affordable price
quality coffee seating and
ambiance

Respondents’ Answer

A. Consistent high-quality coffee 18

B. Free Wi-Fi 17

C. Comfortable seating and ambiance 7

D. Affordable price 9

Table 1.8

The result shows that over 18 respondents expect a consistent high-

quality coffee and 17 respondents like free Wi-Fi and 7 respondents want

affordable prices while 7 respondents like comfortable seating and

ambiance. These results imply that Café Nebula has the chance of being

viable to the market due to the respondents’ response of what they expect to

make them regular customers.

 Chapter IV

Organization Feasibility

Marketing

Market Analysis

 Conducting a thorough analysis of the coffee market in Barangay

Kagawasan, Dimataling, including:
 Demographics of potential customers
 Competitor analysis: Identifying existing coffee shops and their
offerings, strengths, and weaknesses
 Market trends and consumer preferences

Marketing Strategies

Developing comprehensive marketing strategies to effectively reach and

attract target customers, including:

 Branding: Establishing Cafe Nebula's unique brand identity and value

proposition
 Promotion: Planning promotional activities, advertising campaigns,
and social media strategies
 Pricing: Determining pricing strategies that are competitive yet
profitable

Branding and Positioning

Defining Cafe Nebula's brand image and positioning in the local market,
focusing on:

 Brand personality and values

 Differentiation from competitors
 Creating a memorable customer experience
Finance

Financial Projections

Forecasting the financial performance of Cafe Nebula, including:

 Sales projections: Estimated revenues based on market analysis and

sales strategies
 Expense forecasts: Anticipated costs of goods sold, operating
expenses, and overhead
 Profitability analysis: Projected gross profit margins and net income

Budgeting

Developing a detailed budget plan for Cafe Nebula's startup and ongoing
operations, covering:

 Startup costs: Initial investment required for equipment, supplies,

leasehold improvements, etc.
 Operating expenses: Monthly expenses such as rent, utilities, payroll,
marketing, and inventory

Funding Sources

Exploring potential sources of funding to finance Cafe Nebula's startup and

operating costs, including:

 Owner's contributions: Initial investment from partners

 Loans: Securing loans from financial institutions or government
programs
 Investments: Seeking additional funding from investors or partners
Human Resources

Staffing Plan

Determining the staffing needs of Cafe Nebula and developing a staffing plan
that includes:

 Roles and responsibilities: Defining job roles and responsibilities for

various positions
 Recruitment: Strategies for recruiting and hiring qualified employees

Training and Development

Planning for employee training and development to ensure a skilled and

motivated workforce, including:

Training programs: Providing initial and ongoing training programs for

employees

Career development: Opportunities for career growth and advancement

within the organization.

Organizational Structure

Establishing an organizational structure for Cafe Nebula to facilitate efficient

operations and clear communication, including:

 Hierarchical structure: Defining reporting relationships and lines of

authority
 Communication channels: Establishing formal channels for
communication and decision-making.
 Chapter V
Financial Stability

Financial Analysis

5.1 INVESTMENT CAPITAL

Since the business is a Partnership, the owners shall put up the

initial investment for the business from their savings. The said contributions

would be used for buying the equipment, materials, tools, and setting up of

the store.

Partners Contributions

Alajeño, Capital ₧ 50,000.00

Macadatar, Capital ₧ 50,000.00

Saytas, Capital ₧ 50,000.00

Tombo, Capital ₧ 50,000.00

Geromo, Capital ₧ 50,000.00

Purisima, Capital ₧ 50,000.00

TOTAL ₧ 300,000.00
 5.2 Projected Income Statement

Café Nebula (Rise & Shine)

Projected Income Statement

For the year ended
December 31, 2024 to 2028

2024 2025 2026 2027 2028

Sales ₧1,605,750.00 ₧1,766,325.00 ₧1,942,957.50 ₧2,137,250.00 ₧2,350,975.00

Less: Cost of Goods Sold ₧1,152,000.00 ₧1,213,200.00 ₧1,280,520.00 ₧1,354,572.00 ₧1,436,029.20

Gross Profit ₧453,750.00 ₧553,125.00 ₧662,437.50 ₧782,678.00 ₧914,945.80

Less: Operating Expense

Rent Expense ₧24,000.00 ₧24,720.00 ₧25,461.60 ₧26,225.45 ₧27,012.21

Utilities Expense ₧36,000.00 ₧37,080.00 ₧38,192.40 ₧39,338.17 ₧40,518.32

Advertising Expense ₧14,400.00 ₧14,688.00 ₧14,981.76 ₧15,281.40 ₧15,587.02

Miscellaneous Expense ₧30,000.00 ₧30,600.00 ₧31,212.00 ₧31,836.24 ₧32,472.96

Total Operational Expenses ₧104,400.00 ₧107,088.00 ₧109,845.76 ₧112,681.26 ₧115,590.52

Net Income ₧349,350.00 ₧446,037.00 ₧552,589.74 ₧669,996.74 ₧799,355.28

 5.3 Projected Statement of Cash Flows

Café Nebula (Rise & Shine)

Projected Statement of Cash Flow

For the year ended

December 31, 2024 to 2028

2024 2025 2026 2027 2028

Cash Inflows

Cash, Beg ₧617,235.00 ₧1,063,272.00 ₧1,615,861.74 ₧2,285,858.48

Partner’s Contribution ₧300,000.00

Sales ₧1,605,750.00 ₧1,766,325.00 ₧1,942,957.50 ₧2,137,250.00 ₧2,350,975.00

Total Cash Inflows ₧1,905,750.00 ₧2,383,560.00 ₧3,006,229.50 ₧3,753,111.74 ₧4,636,833.48

Less: Cash Outflows

Purchased of fixed assets ₧32,115.00

Purchased of raw materials ₧612,000.00 ₧673,200.00 ₧740,520.00 ₧814,572.00 ₧896,029.20

Direct Labor ₧540,000.00 ₧540,000.00 ₧540,000.00 ₧540,000.00 ₧540,000.00

Rent Expense ₧24,000.00 ₧24,720.00 ₧25,461.60 ₧26,225.45 ₧27,012.21

Utilities Expense ₧36,000.00 ₧37,080.00 ₧38,192.40 ₧39,338.17 ₧40,518.32

Advertising Expense ₧14,400.00 ₧14,688.00 ₧14,981.76 ₧15,281.40 ₧15,587.02

Miscellaneous Expense ₧30,000.00 ₧30,600.00 ₧31,212.00 ₧31,836.24 ₧32,472.96

Total Operating Expenses ₧1,288,515.00 ₧1,320,288.00 ₧1,390,367.76 ₧1,467,253.26 ₧1,551,619.71

Cash Balance, End ₧617,235.00 ₧1,063,272.00 ₧1,615,861.74 ₧2,285,858.48 ₧3,085,213.76

5.3 Projected Balance Sheet

 Café Nebula (Rise & Shine)

Projected Balance Sheet

For the year ended
December 31, 2024 to 2028
ASSETS 2024 2025 2026 2027 2028
Current Assets
Cash ₧617,235.00 ₧1,063,272.00 ₧1,615,861.74 ₧2,285,858.48 ₧3,085,213.76

Total Current Assets ₧617,235.00 ₧1,063,272.00 ₧1,615,861.74 ₧2,285,858.48 ₧3,085,213.76

Non-Current Assets
Office Equipment ₧28,600.00 ₧28,600.00 ₧28,600.00 ₧28,600.00 ₧28,600.00
Tools/Machinery ₧3,515.00 ₧3,515.00 ₧3,515.00 ₧3,515.00 ₧3,515.00

Total Non-Current Assets ₧32,115.00 ₧32,115.00 ₧32,115.00 ₧32,115.00 ₧32,115.00

TOTAL ASSETS ₧649,350.00 ₧1,095,387.00 ₧1,647,976.74 ₧2,317,973.48 ₧3,117,328.76

LIABILITIES
Current Liabilities

OWNER’S EQUITY

Partner’s Contribution ₧300,000.00 ₧649,350.00 ₧1,063,272.00 ₧1,615,861.74 ₧2,285,858.48

Net Income ₧349,350.00 ₧446,037.00 ₧552,589.74 ₧669,996.74 ₧799,355.28

TOTAL LIABILITIES AND

OWNER’S EQUITY ₧649,350.00 ₧1,095,387.00 ₧1,647,976.74 ₧2,317,973.48 ₧3,117,328.76
Return on Investment

YEAR PERCENT

2024 53.73%

2025 40.72%

2026 33.53%

2027 28.90%

2028 25.64%

YEAR PERCENT

2024 53.73%

2025 40.72%

2026 33.53%

2027 28.90%

2028 25.64%

YEAR PERCENT

2024 21.76%

2025 25.25%

2026 28.44%
 2027 31.35%

2028 34%
Net Income Sales Ratio
 Chapter VI: Conclusion/Summary

Conclusion

After conducting a comprehensive feasibility study, it is evident that Café

Nebula holds significant promise for success in the vibrant community of
Kagawasan, Dimataling. The study findings have provided valuable insights
into various aspects of the proposed venture, enabling a thorough
evaluation of its feasibility across market, technical, financial, and
organizational dimensions.

Market Feasibility:

Through diligent market research and survey analysis, we have identified a

strong demand for Café Nebula's offerings among the local community and
student population. The survey results revealed a keen interest in specialty
coffee blends, a preference for café atmospheres conducive to relaxation and
socialization, and a willingness to support brands that contribute to local
initiatives.

Technical Feasibility:

The technical feasibility assessment highlighted the practical aspects of

establishing Café Nebula, including the suitability of its proposed location,
the availability of necessary infrastructure, and the operational capabilities
required for delivering high-quality coffee and exceptional customer service.
By leveraging demographic data and survey insights, we have gained
confidence in the café's ability to meet the diverse needs of its target
audience.

Financial Feasibility:

Financial projections indicate promising revenue potential for Café Nebula,

with projected income statements, cash flows, and balance sheets
demonstrating steady growth and positive returns over the forecast period.
The investment capital provided by the partners, coupled with prudent
financial management practices, positions Café Nebula for sustainable
profitability and long-term success.

Organizational Feasibility:

The organizational feasibility analysis assessed the marketing, finance, and

human resource aspects of Café Nebula's proposed operations. By aligning
marketing strategies with consumer preferences, implementing sound
financial planning and budgeting practices, and recruiting a skilled and
dedicated team, Café Nebula is well-equipped to establish a strong presence
in the local market and achieve operational excellence.

Overall Feasibility:

In conclusion, the feasibility study affirms Café Nebula's strong potential for
success as a thriving coffee destination in Kagawasan, Dimataling. The
convergence of favourable market conditions, robust technical capabilities,
sound financial projections, and effective organizational readiness positions
Café Nebula as a viable and compelling investment opportunity.