A Feasibility Study on the Establishment of Kkum Café in Regalado Avenue, Quezon City

Abstract

Kkum Café is a proposed coffee shop business to meet every K-Pop fan and coffee lover expectation, giving them satisfaction not only in the products offered but also in its services and store ambiance. “Kkum” in korean means “dream”. Kkum Café concept is unique with its 3D hall room where customers can watch Korean live shows like K-Pop awarding, comeback stage, concert, MTVs and other Korean films. Every K-Pop fan who will visit the coffee shop will experience the real feeling to meet or see their idols in person because of the service offered by the café. Kkum Café named their products based on Korean personality. The researchers conducted a survey using structured questionnaire. It was administered randomly to the 100 respondents in Daranciang Bldg., Regalado Ave. Quezon City. The survey questionnaire is based on acceptability of the marketing mix that includes product, price, place and promotion. The researchers used multiple choice and yes or no type of questions so that the respondents can easily answer the survey. Based on the survey, the highest rates on products are on frappe with 37% and macaroons with 40%. The price range of 50-100 pesos for drinks and 30-50 pesos for dessert were most favored with 60% and 35% acceptability rate, respectively. In terms of location, Daranciang Bldg. Regalado Avenue, North Fairview, Quezon City is found to be accessible according to the 82% of the respondents. The Proposed reward card promotion of Kkum Cafe is also highly favored by 82% of the respondents. Because the business is a general partnership, each of the owners’ proposed contribution is equally shared at 1,000,000 to raise an initial capital of 6,000,000. The projected overall expense of the café amounted to 2,498,380; therefore, the remaining 3,501,620 will be utilized for the other operating expenses of the cafe. The sales increase was projected at 2% interval based on the projected five-year financial statement. The researchers found out that this feasibility study needs to have wiser and more unique strategies in order to have a competitive advantage over the existing competitors. The café needs to have a well-organized management and back-up equipment to prevent untoward incidents or future problems particularly in the production aspect. Based on the overall result of this study, Kkum Café is feasible to compete in the market.