A feasibility study for a Moonleaf Tea Shop franchise in Dan and Jean building, Tagaytay City

• Main Authors: Peil, Arvin, Peji, Dana
• Format: text
• Language: English
• Published: Animo Repository 2012
• Subjects: Tea; Cookery (Tea); Franchises (Retail trade); Moonleaf Tea Shop; Business Administration, Management, and Operations
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/9213
• Institution: De La Salle University

This feasibility study was designed to help the potential investor in setting up Moonleaf Tea Shop that offers variety of freshly-brewed tea in Dan & Jean Bldg, Olivarez Plaza, Barangay San Jose, Tagaytay City. This feasibility study gives an insight into various aspects of planning and setting up a tea shop as well as details in marketing and financial in order to facilitate the decision-making of the entrepreneur. Moonleaf tea drinks are made from freshly brewed and high-quality leaves imported from Taiwan. The tea is brewed, steeped and served in authentic no machines Taiwanese tradition. Adrian Adriano established Moonleaf Tea Shop in 2010, as a small shop located along Magiting St., UP Teachers Village in Diliman, Quezon City. Moonleaf Tea shop specializes in premium teas. They offer 30 different kinds of teas that are available hot or iced. Application Process in franchising Moonleaf tea shop is to call the contact number given in the Moonleaf tea shop and/or email Moonleaf tea shop with complete name, contact details and preferred schedule of meeting. The Demography proposed locations is in Region IV-A (CALABARZON), Cavite, Tagaytay City. The proposed location is at Dan & Jean Bldg, Olivarez Plaza, Barangay San Jose, Tagaytay City. This location was chosen considering that there is adequate parking, the lease is affordable, and the reputation of the neighbourhood will help draw out customer, since it is located beside a university, a hotel, a village, and a condominium. Franchising is a popular growth strategy for small business. Franchising is a business strategy a company may use in capturing market share, for getting and keeping costumers. The initial investment for single unit franchise is Php 1,656,500, it includes the initial franchise fee (Php 1,500,000.00), renovation cost (Php 110,000.00), and utilizes cost (Php 46,500.00). the renovation of the placewill take two weeks to finish. The rent requires one month advance and two months deposit, which totals to Php 46,500. A survey was formulated to determine the appeal of Moonleaf Tea Shop and milk tea to customers, and to have a basis in computing for the financial aspect of the project. We selected 665 respondents from the total population of 4,357. The figure 665 was obtained by using the Sampling Population Table. The survey was conducted through a 7-day period from June 28, 2012 to July 4, 2012 to randomly chosen passers-by within the 0.9 kilometer radius around Dan & Jean Bldg, Olivarez Plaza, Barangay San Jose, Tagaytay City. The interview with the franchise owner of Moonleaf Tea Shop – Paseo De Sta. Rosa was conducted on April 12 and 13, 2012. The project is found to be viable. The computed NPV is Php 1,910,901.97 with 44% IRR that is higher than its discount rate, which shows a positive return in business. The Initial investment would be recovered in 1.9 years.