HABBO HUB 3

Executive Summary
Habbo Hub is an all-in-one student-centered establishment which is a place to review and
accomplish scholastic works. The establishment specializes in providing student’s focus through
a solemn environment with easy access to the needs of the physical body like food, particularly
Krispy Kreme doughnuts, and a napping area. Habbo Hub shall fill an affordability niche not
presently available in Tuguegarao City in which the respondents retaliated positively when the
survey was administered within the locality. The foundation for the project feasibility study is a
combination of surveys and researches, upon which marketing strategies are built. The
establishment will be located at Sunrise Building, Mabini Street, Tuguegarao City.
Combined with the review area, Doughnuts and Coffee section, and Discussion rooms, we are
are looking forward that Habbo Hub will form the basis of a feasible and profitable venture.
And to make these things happen, we have incorporated these ideas to create a plan
especially on the technicalities regarding the materials to be acquired and used for the business,
the design of the actual positions of the areas that are to be placed, and the hiring of personnel to
man up the operation. We have also assimilated the materials that are needed with their prices
which will serve as their basis for the range of the budget and designs for the equipment to be
used and the floor plan for the feasibility of Habbo Hub. Study Nooks, Discussion Rooms,
Shower and Nap services were specified to know the process and daily routine for procurement
of materials and availability of services that will cater the needs of the customers.
Habbo Hub will be established with a start-up capital of P1.4M. The capital will be used
to purchase necessary machineries, inventories, equipment and some expenses incurred prior to
the start of the business such as legal requirements, prepaid rents, leasehold improvements. The
projected net income for its first year of operation is 112,180.96. Thereafter the net income will
increase to approximately 24% per year. With this trend the 1.4M start-up cost would be back
for the period of 4.13 years only. Simply stated, Habbo Hub is a profitable business and will
have a potential market share if establish.
Having said, Habbo Hub is a well furnish and planned project. With its advantageous
strength we will have a large share in the market. Also, the relationship to be built with our
suppliers and customers, will surely make this venture prosper and maintain its status quo in the
future.
 Marketing Aspect
INTRODUCTION
Habbo Hub is an all-in-one place to feed the brain (review), feed the soul (recreate) and
feed the stomach. The concept is mainly inspired by Manila’s unique cafeterias where you can
review while drinking coffee or tea. The company wants to empathize with whatever the
customer feels in connection with academics. With the facilities offered by Habbo Hub, as a sign
of respect and value for the customers, the management hopes they are providing the best quality
of service. We want to make sure that every service we provide bring honor to the customer’s
scholastic life. Primarily, the way we engage with our customers to do business responsibly
makes a connection that is fiduciary in relationship.
Habbo Hub is a place for students to review and do scholastic stuffs. Since a lot of
students cannot gain their focus in their respective houses, dorms or apartments, we want to cater
them at Habbo Hub. The business is located at Luna corner Taft Street, Tuguegarao City. We can
accommodate 30 to 40 individuals. Our target customers are, of course, the students. A large
portion of these students come from the college department. We want their review to be solemn
in order to digest everything in their mind. As to the food we would be offering, the people want
to have Krispy Kreme and beverages that would perfectly match the doughnuts.
As to the requirements of the LGU of Tuguegarao there are no restrictions to the target
market we can accommodate, as long as we are operating within the policies. Habbo Hub is
designed for every student especially those people with exams, requirements or thesis. The idea
of the Habbo Hub is to help them attain good grades and to meet deadlines.

I. OPPORTUNITY
A. CURRENT MARKET ANALYSIS
The market has employed a lot of strategies to cater the needs of people. It mainly
focuses on trends that could primarily affect the actions of consumers thus, increasing the
demand. Tuguegarao City has become one of the most visited places because of its sceneries,
delicacies and establishments. Constructions of malls added another reason for it to attract people
to come within the locality to explore foods and places which are unavailable in their own
particular places. It is mostly crowded of universities, shops, and residential areas where
students, employees and others usually spend their time for leisure and review purposes.
However, these shops catering the services they need are not open for the whole day
making current demand for review centers become rampant because of students reviewing not
only for exams but also as their daily routine not only during the day time because they usually
review or enjoy themselves for the rest of the day. Habbo Hub considers this factor as the main
reason of its establishment, to provide these targeted customers the convenience of providing a
hub which could help them learn their lessons with a conducive and appropriate atmosphere. It
also provides
ways for the students to ease their hardships by offering foods, facilities for rests, comforts and
educational purposes.

B. ANTICIPATED FUTURE MARKET POTENTIAL

Different kinds of businesses have become trending like coffee, laundry, and other do-it-
yourself shops which became a hit to customers knowing it’s a newly introduced business in
Tuguegarao City. Considering its main roads and highways, it became a haven for business
opportunities. Another business opportunity which became a hit is the establishment of review
centers for entrance examinations. Review centers become dull as it only involves equipment
solely used for study purposes. That is why Habbo Hub was created as an all-in-one
establishment incorporating study equipment, foods, napping and comfort areas which will
surely suit the taste and style of the targeted customers making the hub a place that surely meets
the demand not only of its targeted customers but also those who wants to spend their time for
leisure purposes. With this non-stop improvement with the locality, newly-introduced businesses
are also improving and become well-known where they accumulate large amount of sales. The
continuous growth of population will create a high demand of places where they can indulge and
at the same time do their office and school works.
GAP – with the thousands of students residing in the city, there is an increased demand of places
where they can study and make their requirements. This is shown by the increase of number of
coffee shops in the city. But the problem is that existing coffee shops are not conducive for
studying. Its environment is too noisy for most of the people go to coffee shops in groups.

C. DEMAND ANALYSIS
The proper analysis of demand is very much important in business decision making and it
help us in finding out the optimum quantities to be produced and supplied in the market. We
conducted a survey from 110 respondents, particularly students, for us to determine the needs
and wants of our target customers.
Results of our Survey:
1.

This shows that 98.2% are interested to go to Habbo Hub, a place wheren you can study
and have a rest from academic stress.
2.

The results show that 70% of the respondents will go to Habbo Hub 2-3 times a week, 8.2
% will go 4-5 times a week, 2.7% go every day, and 19.1% will go once a week. This shows that
majority of the respondents go to coffee shop and our business has a chance of being viable to
the market.
3.

The results show that 66.4% of the respondents would be willing to rent a fully air-
conditioned discussion room and 33.6% are not willing to rent. Since more than half of the
respondents answered yes, this result is enough for us to incorporate a discussion in our hub.

Based from the previous results who answered YES of the possible additional amenities
of our hub, the results show that 76.8% of the respondents are willing to pay 200-300 pesos,
4.9% are willing to pay 401-500 and 3.7% are willing to pay 301-400. This will help us on how
we will price our rooms and amenities based from the affordability of our customers.
.
4.

95.4% of the respondents want to have a napping area in case of overnight for a review or
project making. The results show that majority answered yes and that we will include a napping
area for those who wants to have an overnight in of hub.

5.

The results show that 92.7% want to have an overnight room to stay in with their group
mates and colleagues and 7.3% does not want to. This result is enough for us to include an
overnight room in our hub.
6.

The results show the 76.4% want to rent a locker in case they will stay in our hub and
23.6% does not want to. The result is enough for us to include a locker in our hub.

7.

The results show that 88.1% of the respondents want to take away their stress by
watching movies in our Home theater-like rooms. This means that our business has a big chance
of being patronized by our target customers due to the different facilities that our hub offered.
8.

The results show that 62.7% of the respondents want to have Krispy Kreme in our menu.
The results help us to choose what would be the best food that we will be serving to our target
customers.

11.

The results show that 99.1% want to have an Internet Connection in our hub, 88.2%
Clean Comfort Rooms, 85.5% Affordable Foods, 85.5% Air Conditioning Unit, 81.8% Tables
and Chairs, 53.6%, Television/Radios, and 47.3% for News Papers and Magazines. This shows
what are the necessary amenities needed by our target customers for them to be comfortable in
staying in our hub.
 HABBO HUB 10

12.

This shows a very high demand for Krispy Kreme in the city, as 93.7% are interested in
the said product.
13.

Majority wants to purchase Krispy Kreme in dozens, with 34% of the respondents
answered such choice. 28.3% wants to purchase in half dozens, 27.4% wants to purchase in
pieces while the others want in 2 or 4 dozens.
14.

The dominant choice of the respondents is once a week in their purchase of Krispy Kreme.
26.7 % would purchase 2 to 3 times a week and 17.8% would purchase everyday.

Demand Projections:
School Total Population Target % Distributio Projected
Customers n Customers
St. Paul University of the Philippines 3,000 1,600 3% 48
University of Saint Louis 4,000 1,600 43% 688
Tuguegarao
University of Cagayan Valley 2,000 1,600 3% 48
Cagayan State University 4,000 1,600 2% 32
Cagayan National High School, 3,000 1,600 49% 784
Tuguegarao City Science High
School and other schools within the
city
Total (Weekly) 16,000 10% 100% 1,600

Frequency of Visits:
Yes: 98.2% No: 1.8%
Alone: 82.7% In group: 17.3%
Frequency of Visits(per week) Percentage(%)
Everyday 2.7
4-5 days 8.2
2-3 days 70
 Once 19
Krispy Kreme:

Yes: 93.7% No: 6.3%

Quantity Percentage(%)
1 piece 27.4
½ Dozen 28.3
Dozen 34
2 Dozens 7.5
4 Dozens 2.8

Frequency of purchase Percentage(%)

Everyday 17.8
2-3 times 26.7
Once a week 55.4
`Rent-66.4% *Locker-76.4%
FREQUENCY OF VISITS

Every day:
Daily Monthly Annual
Study Nooks 35 980 11,760
Discussion Rooms 1 28 336
Lockers 26 728 8736

Study Nooks: Everyday=2.7%; Alone=82.71%

 Daily: 1600*.982*0.827*0.027=35
 Monthly: 35*4 weeks*7days= 980
 Annually: 980*12 months=11,760

Discussion Rooms: Everyday=2.7%; In group=17.3%; Rent=66.4%

 Daily: 1600*0.982*.027*.173*.664=4/8(maximum individuals)=1

 Monthly: 1*4 weeks*7days=28
 Annually: 28*12 months=336

Lockers: Locker=76.4%;
 Daily: 35*.764=26
 Monthly: 26*4 weeks*7days=728
 Annually: 728*12 months=8736
 4.5 Days a week
Everyday Monthly Annual
Study Nooks 106 1696 20352
Discussion Rooms 1 16 576
Lockers 80 1280 33216

Study Nooks: 4-5 days=8.2%; Alone=82.71%

 Everyday: 1600*0.982*.082*.8271=106
 Monthly: 106*4 days* 4 weeks= 1696
 Annually: 1696*12 months=20,352

Discussion Rooms: 4-5 days=8.2%; In groups=17.3%

 Daily: 1600*.982*.082*.173*0.664=14/8(maximum individuals)=1

 Monthly: 1*4 weeks*4days=16
 Annually: 48*12 months=576

Lockers: Locker=76.4%
 Daily: 106*.764=80
 Monthly: 80*4 weeks*4days=1,280
 Annually: 1,280*12 months=15,360

2-3 days a week

Daily Monthly Annual

Study Nooks 909 7272 87264
Discussion Rooms 15 120 1440
Lockers 694 5552 66624

Study Nooks: 2-3 days=70%; Alone=82.71%

 Daily: 1600*.982*.7*.8271=909
 Monthly: 909*4 weeks*2days=7272
 Annually: 7272*12 months=87264

Discussion Rooms: 2-3 days=70%; In groups=17.3%

 Daily: 1600*.982*.7*.173*0.664=126/8(maximum individuals)=15

 Monthly: 15*4 weeks*2days=120
 Annually: 120*1
 2 months=1440

Lockers: Locker=76.4%
 Daily: 909*.764=694
  Monthly: 694*4 weeks*2days=5552
 Annually: 5552*12 months=66624

Once a week

Daily Monthly Annual

Study Nooks 246 984 11808
Discussion Rooms 4 16 192
Lockers 187 748 8976

Study Nooks: Once=19%; Alone=82.71%

 Daily: 1600*.982*.19*.8271=246
 Monthly: 246*4 weeks=984
 Annually: 984*12 months=11808

Discussion Rooms: Once=19%; In groups=17.3%

 Daily: 1600*.982*.19*.173*.664=34/8(maximum individuals)=4

 Monthly: 4*4 weeks=16
 Annually: 16*12 months=192

Lockers: Locker=76.4%
 Daily: 246*.764=187
 Monthly: 187*4 weeks=748
 Annually: 748*12 months=8976

Krispy Kreme

Everyday
Daily Monthly Annually
1 piece 29 812 9744
½ dozen 30 840 10080
1 dozen 36 1008 12096

Everyday=17.8%; Yes=93.7%
Willing to buy: 1600*.937= 1499
Buyers: 1499*.178= 266

 1 pc=27.4%
 Daily: 266*.274*.4=29
 Monthly: 29*4 weeks*7 days=812
 Annually: 812*12 months=9,744
 ½ dozen=28.37%
 Daily: 266*.2837*.4=30
  Monthly: 30*4 weeks*7 days=840
 Annually: 840*12 months=10,080
 1 dozen=34%
 Daily: 266*.34*.4=36
 Monthly: 36*4 weeks*7 days=1,008
 Annually: 1008*12 months=12,096

2.3 times
Daily Monthly Annually
1 piece 43 344 4128
½ dozen 45 360 4320
1 dozen 54 432 5184

2-3 times=26.7%; Yes=93.7%

Willing to buy: 1600*.937= 1499
Buyers: 1499*.267= 400

1 pc=27.4%

 Daily: 400*.274*.4=43
 Monthly: 43*4 weeks*2 days=344
 Annually: 344*12 months=4,128
 ½ dozen=28.37%
 Daily: 400*.2837*.4=45
 Monthly: 45*4 weeks*2 days=360
 Annually: 360*12 months=4,320

 1 dozen=34%
 Daily: 400*.34*.4=54
 Monthly: 54*4 weeks*2 days=432
 Annually: 432*12 months=5,184

Once
Daily Monthly Annually
1 piece 90 360 4320
½ dozen 94 376 4512
1 dozen 112 448 5376
Once= 55.4%; Yes=93.7%
Willing to buy: 1600*.937= 1499
Buyers: 1499*.554= 830

 1 pc=27.4%
 Daily: 830*.274*.4=90
 Monthly: 90*4 weeks=360
 Annually: 360*12 months=4,320
 ½ dozen=28.37%
 Daily: 830*.2837*.4=94
 Monthly: 94*4 weeks=376
 Annually: 376*12 months=4,512
 1 dozen=34%
 Daily: 830*.34*.4=112
 Monthly: 112*4 weeks=448
 Annually: 448*12 months= 5,376

The projected monthly demands with the assumed multiplier for the projected demand for each
month is presented below.

Study Nooks

Month Computed Projected

Multiplier
Demand Demand
 January 10,392 0.7 7,274
February 10,392 0.75 7,794
March 10,392 0.75 7,794
April 10,392 0.7 7,274
May 10,392 0.8 8,314
June 10,392 0.4 4,157
July 10,392 0.4 4,157
August 10,392 0.7 7,274

September 10,392 0.8 8,314

October 10,392 0.75 7,794

November 10,392 0.8 8,314

December 10,392 0.8 8,314

TOTAL 86,773

Discussion Rooms

Month Computed Projected

Multiplier
Demand Demand

January 180 0.7 126

February 180 0.75 135
March 180 0.75 135
April 180 0.7 126
May 180 0.8 144
June 180 0.4 72
July 180 0.4 72
August 180 0.7 126

September 180 0.8 144

October 180 0.75 135

November 180 0.8 144

 December 180 0.8 144

TOTAL 1,503

Lockers

Month Computed Projected

Multiplier
Demand Demand

January 8,308 0.7 5,816

February 8,308 0.75 6,231
March 8,308 0.75 6,231
April 8,308 0.7 5,816
May 8,308 0.8 6,646
June 8,308 0.4 3,323
July 8,308 0.4 3,323
August 8,308 0.7 5,816

September 8,308 0.8 6,646

October 8,308 0.75 6,231

November 8,308 0.8 6,646

December 8,308 0.8 6,646

TOTAL 69,372

Krispy Kreme – 1 pc.

Month Computed Projected

Multiplier
Demand Demand

January 3,274 0.7 2,292

 February 3,274 0.75 2,455
March 3,274 0.75 2,455
April 3,274 0.7 2,292
May 3,274 0.8 2,619
June 3,274 0.4 1,309
July 3,274 0.4 1,309
August 3,274 0.7 2,292

September 3,274 0.8 2,619

October 3,274 0.75 2,455

November 3,274 0.8 2,619

December 3,274 0.8 2,619

TOTAL 3,274 27,335

Krispy Kreme – ½ dozen

Month Computed Projected

Multiplier
Demand Demand

January 2,656 0.7 1,859

February 2,656 0.75 1,992
March 2,656 0.75 1,992
April 2,656 0.7 1,859
May 2,656 0.8 2,125
June 2,656 0.4 1,062
July 2,656 0.4 1,062
August 2,656 0.7 1,859

September 2,656 0.8 2,125

October 2,656 0.75 1,992

November 2,656 0.8 2,125

December 2,656 0.8 2,125

TOTAL 2,656 22,178

Krispy Kreme- 1 dozen

 HABBO HUB 20

Month Computed Projected

Multiplier
Demand Demand

January 4,054 0.7 2,838

February 4,054 0.75 3,041
March 4,054 0.75 3,041
April 4,054 0.7 2,838
May 4,054 0.8 3,244
June 4,054 0.4 1,622
July 4,054 0.4 1,622
August 4,054 0.7 2,838

September 4,054 0.8 3,244

October 4,054 0.75 3,041

November 4,054 0.8 3,244

December 4,054 0.8 3,244

TOTAL 4,054 33,854

D. SUPPLY ANALYSIS
 MATERIAL PLANNING

Habbo Hub anticipates the rapid change of demand level which affects the prices and supply
of materials that will be used. And as a precaution, the hub plans the purchasing of perishable
goods few days before their actual delivery and sale to customers considering their shelf life.
These are purchased in batches to avoid overstocks to avoid unnecessary additional costs since
our main food supplier is not within the locality. Orders are conducted carefully to ensure that
these goods are served in its good condition. The orders are conducted by forecasting the
possible events that will happen along the way. This helps the hub to operate effectively by cost
minimization and profit maximization.
Furniture and fixtures
Furniture include tables, couches and chairs for the review and napping areas will be
outsourced within the locality. Fixtures include lightings that will be customized through the use
of recycled materials for napping areas. Review areas will include lamps and light bulbs that will
light the whole area 24/7 without power interruptions. These will also be outsourced within the
locality.
Foods (Doughnuts)
The Doughnuts will be purchased through bulk orders from a Krispy Kreme outlet
Drinks
Coffees and juices will be produced within by the employees; soft drinks include Coca
Cola, Sprite and Royal which will also be purchased through bulk orders for the direct sellers
within the locality.
Utilities and Lockers
The different utilities and lockers that will be used in the comfort, shower and locker rooms
will also be outsourced within the locality.
 PROCUREMENT

To attain the planned activities, the different actions specified during the planning will be
communicated to the suppliers beforehand to avoid understocks which will cause a decline on
sales for a particular day. The hub will also monitor prices in order to anticipate possible price
hikes from suppliers and automatically resolve problems arising from it. This will help in
avoiding threats like losses and shifting of customers to other similar establishment with similar
type of business. The hub will also maintain a good consumer-supplier relationship in order for it
to avail possible discounts and on-time deliveries. This will help the hub to operate efficiently
and effectively.

 PURCHASING AND WAREHOUSING

As the hub does mainly involve itself in directly purchasing doughnuts from an outlet,
purchasing will be done in batches which is carefully decided and will be sold on a first-in, first-
out basis. These will be stocked on a fridge separately from other beverages offered by the hub.
This will ensure that the goods are of good condition and will be consumed before the goods
reach its expiration.

 DISTRIBUTION

The hub also maintains its good customer relationship by providing a high-quality service
and products. This is attained through keeping the goods three days after its delivery up to the
day it is served to customers. Any leftovers will be discarded from the products that will be sold
in order for the customers to keep buying quality goods offered. Other services include unlimited
coffees, shower and napping services that will surely attract customers. These services are also
complemented by the no-brownout policy which will also make the customers have his hassle-
free review continuously.
  FEEDBACK

We will post a freedom wall within the establishment as a way of asking the customers how
well they were satisfied with our service and with what particular service they like the most. This
helps the hub to know what are the services that are already good and what are those that needed
to be improved or eliminate.

II. INDUSTRY

a. COMPETITION ASSESSMENT
Nowadays, putting up a business is not that easy not because of the too many requirements,
but because of the rampage competition which is currently going on. In doing so, there is always
an implicit risk to undertake and sometimes it is hard to control or eradicate. Our business,
Habbo Hub, is a review hub open at 24/7 primarily to the students and to other customers as
well. It is a unique hub and considered to be the first one in the city. It offers review areas and a
different variety of coffee and cold drinks. In addition to that, we will be selling Krispy Kreme
Doughnuts which will also be the first in the region. Because of the uniqueness of the hub, it is
expected that the hub will have a strong competitive advantage, for it is a first of its kind in the
city. Despite of the rareness of the business, existing cafes and other establishments which their
nature is quite similar may dominate the market.
1. Infinitea, I love milktea and 8th avenue are located near Habbo Hub that carries all the
substitute products. These are cafes already known for its good service. They serve coffee mixes,
refreshing and tasty milk tea drinks and dessert foods.
2. Mcdo and Dunkin Donut also provide coffees and food that will satisfy our customers. But
even if these cafés and establishments exist, Habbo Hub serves the needed service by students,
which are not addressed by these cafés. This service is to provide a quiet place, conducive for
learning. These cafés are known to be very noisy places, which makes it not conducive for
learning.
Habbo hub has a unique product compared to other competitors and the price of our service
will be affordable to our beloved customers. That is what Habbo Hub aims to provide, which is
considered as its competitive advantage. Based on the survey conducted, 98% of the respondents
are willing to go in our cafe. If we can satisfy these customers with our unique services and
products, it is estimated that we will have a name in the industry.

b. MARKET SHARE
With the growing number of students in different universities in connection with the new
education system, we came up with this proposal in order to cater the needs of students in
relation to their academic discipline. Since this project is new in the market, no establishments
have already built their reputation and we have no basis for further improvement or
development. It requires a lot of studies in order to coincide with what the people in the
locality needs, especially, it is
important to match our prices with the mass demand of the people. All of these are possible to do
so by limiting expenses and by building good relationship and connection primarily to the
prospect customers and to our suppliers. In establishing the name and building the trust of the
people to our business, we plan to price our products and services that would be very cost-
effective, then, once the business is established and built its name, we will determine how the
customers will react with an increase in price of the products. In order for us to gain a high
market share, we will be placing a feedback box in order to know the comments and suggestions
of the customers. With that move, we are bringing the customer closer to us through their
responses. The environment for the reviewees would be the highlight of this project, the main
objective is for the students to enrich their selves academically and to meet the demands of the
different courses they are in.

c. SWOT ANALYSIS
Strengths Weaknesses
• Selling Krispy Kreme Doughnuts, first of its • Serving only one kind of food, which is
kind in the region. Krispy Kreme Doughnuts, giving customers
• Provides an environment that is very only one choice of food.
conducive for studying. • Offering limited number of discussion
• 24/7 operations rooms and study nooks (in cases of very high
• No Brownout Policy demand)
• It is located near universities and colleges
around Tuguegarao City for them to come
over quickly and easily.
• The only place in the city, as well as the
region, to provide nap pods in a napping area
as well as study nooks where you can freely
charge devices.
• Introduces the “Human Alarm Clock”
service for those who want to nap.
Opportunities Threats
• To further increase the variety of the food • Existence of different cafés in the city, like
the hub is offering. Infinitea and I love Milktea.
• To further expand the operations of the hub • Threat of Security, as a result of its 24/7
by making the hub bigger. operations
• To franchise directly a Krispy Kreme Fresh
Shop or Kiosk, which can significantly reduce
the selling price of the doughnuts.
• To further open Habbo Hub Branches in
other key cities in the region namely,
Cauayan and Santiago.
 III. MARKET
The City of Tuguegarao is now emerging as one of the major cities in northern Luzon.
This is shown by its numerous constructions, large commercial districts, and the presence of
different schools and universities. In fact, in the most recent National Statistics Office (NSO)
Census, Tuguegarao is the most populous and most densely populated city in Cagayan Valley
(Region 2). With the great number of students and businessmen residing in the city, it is
therefore important to study the market including the changing trends to be ahead of potential
competitors and gain customers.
A. MARKET SEGMENTATION
The idea of the Habbo Hub is to help them attain good grades and to meet deadlines.
Habbo Hub is primarily a study place for loners or even for groups, serving quality food and
drinks at a reasonable price. One of its distinguishing products is Krispy Kreme Doughnuts,
which is a first of its kind in the region. It aims to provide a quiet and good place for those who
want to study alone as well as to provide a place conducive for meaningful discussions for
groups. The discussion rooms can also be used for business presentations.
The following are our target segments of the market:
Students – our primary target market. Specifically, it aims to capture the market of High
School, College and Graduate School students of:
a. University of Saint Louis
b. Saint Paul University Philippines
c. Cagayan State University
d. University of Cagayan Valley
e. Tuguegarao City Science High School
f. Cagayan National High School
g. Other High Schools, Colleges and Universities
The market for students is potentially big because of the presence of the major
universities and high schools in the city. They may just want to study alone, or to make their
respective researches or theses. It is the perfect place for all-nighters who want to study or finish
their requirements as they eat our delicious food and take a sip of our cold or hot drinks.
 B. MARKETING PLAN AND STRATEGY (MARKETING MIX)
 Product and Services
Habbo Hub has 3 unique products to offer, and these are the following:
1. Food – it mainly sells Krispy Kreme Doughnuts, which would be the first store to
sell in the whole region. It pairs the delicious Krispy Kreme Doughnuts with a
variety of blends of Coffee, Fruit Juices and Canned Sodas.
2. Study Nook and Discussion Rooms – it offers study nooks which can
accommodate a maximum of 2 all-nighters. Each study nook is provided with an
extension cord, where the customers can charge their devices. It also offers
discussion rooms primarily intended for group all-nighters. These discussion
rooms are sound-proof, well-ventilated and lighted. Both study nooks and
discussion rooms are Wi-Fi zones. Study nook includes Napping Area – a special
offering of Habbo Hub which provides a quiet and comfortable napping area for
those all-nighters who want to take a break from what they are doing. It provides a
“Human Alarm Clock” wherein the customer fills-out the alarm clock form. The
staff will then wake up the customer based on the alarm clock form.
3. Lockers- To keep safe all the valuables of those customers staying in Habbo Hub.
4. Printing- For the convenience of the customer in order for them not to go out to
print their materials, we are offering printing services.
 Price
Most of our customers will be students that’s why we offer our service at the lowest price
possible. We will offer rate per hour and rate per day which is inclusive of unlimited coffee,
juice, Wi-Fi, power outlet and napping service where in you’ll get as much as 80% when you get
the per day service.

 Place
Habbo Hub shall be located in the commercial building (currently under construction,
near its finish) at Luna corner Taft streets, Tuguegarao City. This location is just walkable
meters away from University of Saint Louis, Saint Paul University Philippines and Tuguegarao
City Science High School. It can be reached by students of Cagayan National High School,
Cagayan State University and University of Cagayan Valley through a 3-5-minute tricycle ride,
depending on traffic conditions.

 Promotion
Habbo hub's objective is to help students academically by giving them the right place to
study and peaceful environment to let them focus on their subjects and to meet the deadlines of
their projects. The following marketing strategies will be used in order for the business to reach
wider area of customers.
Website and other social medias like Instagram, Facebook and Twitter:
Internet has been an integral part of our lives and it is one of the fastest and easiest ways
to get information. The proponents shall be using social media accounts and free website in order
to
reach wider range of customer. This will help customers to know better the idea of Habbo Hub.
We will be giving data and customers are allowed to give suggestions and comments for
improvements.
Flyers
We will make sure that our flyer will stand out and make sure to highlight our main message in
order to attract customers. The store will distribute 300 flyers a month for three months.

Word of Mouth
The best promotion of business is the word of mouth in which customers are broadcasting the
satisfaction and happiness they get whenever they go to Habbo hub. Every time a customer
makes recommendation, the business will gain reputation.

School Caravan
Tuguegarao has been known for having diligent students and Habbo hub wants to provide an
intellectual place for them. Since most of our customers are students, we will advertise our
business to schools. We will ensure that the main purpose will be delivered which is to help
students to improve their studying skills. We will provide good quality content by sharing our
service and supplying information which will encourage schools to try our business.
 Technical Aspect
I. PRODUCTS, SERVICES AND ITS PROCESS
 Products
Krispy Kreme
You can eat KK without 10% mark up
going to Manila anymore
because KK is now in
Habbo Hub. We offer
different donuts that are
perfect for studying.

Coffee
Coffee is life when you are Unlimited: napping
student for you to get service, wi-fi, review
energized and to help you service, shower services
increase the capacity to and unli-coffee/ unli-
study. You can blend your juice/1 soda in can
own coffee with different -P70/hr
flavor.

Juice Unlimited: napping

We offer different flavors service, wi-fi, review
like grapes, apple, service, shower services
pineapple, mango etc. and unli-coffee/ unli-
juice/1 soda in can
-P70/hr

Soda Unlimited: napping

We offer soda for those service, wi-fi, review
customers who liked service, shower services
them. and unli-coffee/ unli-
juice/1 soda in can
-P70/hr
 Services

Review Service Unlimited: napping

Reviewing with service, wi-fi, review
unlimited coffee, juice, service, shower
wi-fi , socket and services and unli-
napping area. coffee/ unli-juice/1
soda in can
-P70/hr

Discussion room
A room that can Php 200/hour with
accommodate at least unlimited: coffee,
5 persons who want to juice, napping and wi-
have a meeting or fi. Max 12 spax
group discussion. It
has a white board,
projector and its own
air conditioned unit. It
also offers unli coffe
and internet.
Napping Service Unlimited: napping
Napping after studying service, wi-fi, review
is the best feeling. You service, shower
can sleep without services and unli-
feeling guilty because coffee/ unli-juice/1
you can now choose soda in can
how long will you -P70/hr
sleep. When it is time
someone will wake
you up.
Printing Service Black & White
When you are already Short – Php 1
rushing your thesis Long -- Php 2
and assignments, we Colored
offer you printing Short & Long– starts
services at an at Php3
affordable price.
 Shower Service
With a low price, you Inclusive of the fee
can now avail our for customers staying
shower service where overnight
towel and shower kit
are already provided.

Locker Service
It is useful especially Php 2 per hour
to those who want to
have an overnight in
our business.

 Suppliers

Suppliers Address Contact Number

Mariton Grocery Tuguegarao City (078) 844 3357
The Original Northern Coffee Quezon City 0916 348 0282
Bean
Krispy Kreme Quezon City 0998 960 3059
 HABBO HUB 30

 Work Schedules

1. Managers, Cashiers and Servers

Employee Monday Tuesday Wednesday Thursday Friday Saturday Sunday
Manager D D D A A - -
Cashier 1 A A A - - A A
Cashier 2 - - N N N N N
Cashier 3 - - - D D D D
Server 1 N N - D D D D
Server 2 N N - - D D D
Server 3 - - N N N N N
Server 4 A A A - - A A
Server 5 D D D A A - -

Shifts for Cashiers and Servers:

 Day Shift ( D) - 7:00 AM to 3:00 PM

 Afternoon Shift (A) - 3:00 PM to 11:00 PM
 Night Shift (N) - 11:00PM to 7:00 AM
Shifts for Cashiers and Servers:

 Day Shift ( D) - 7:00 AM to 4:00 PM

 Afternoon Shift (A) - 3:00 PM to 12:00 AM

2. Guards
Employee Monday Tuesday Wednesday Thursday Friday Saturday Sunday
Guard 1 D D -* D D D -*
Guard 2 A -* A A A -* A
Guard 3 -* N N N -* N N
*The building where the Habbo Hub is located provides 24/7 security. Habbo Hub cares for their
employees, so it is right to give them rest days.
Shifts for Guards:

 Day Shift ( D) - 7:00 AM to 3:00 PM

 Afternoon Shift (A) - 3:00 PM to 11:00 PM
 Night Shift (N) - 11:00PM to 7:00 AM
 
Pro • Habbo Hub will buy its
cess Krispy Kreme doughnut
directly to the distributors
available in bulk then store
it immediately, provided it
will not perish to insure the
availability of the product
to the costumer.
• Beverages such as Juice
and Coke will be
purchased directly to
Mariton Grocery located
SUPPLIERS within the City only.
• Coffee beans will be
purchase at The Original
Northern Coffee Bean in
Quezon • Habbo Hub receiving
City. department review
and checks if
purchased quantity is
correct, and if there is
RECEIVING any defects regarding
the products.
DEPARTMENT • Payments of the said
purchases will also be
done upon receiving
the items.
• Products for the
merchandising aspect
Habbo Hub of the business will be
stored here, while the
Sevice Area services will be
rendered in their
designated area in the
space/building itself.
Food House | • These are
Napping Area | the
Discussion Room services
| Locker Vault offered by
our
business.
Cashier • Costumers will pay their
dues in the cashier as an
exchange for the foods,
beverages and services
rendered onto them.
II. FURNITURES, FIXTURES AND EQUIPMENTS
Model Price per Quantity Supplier
unit
Window- P12,500 2 Emcor
Type Air LG LA080TC Philippines
Conditioner WINDOW
TYPE AIR
CONDITIONER

Split-type LG HS-12IST P26,600 3 Emcor

Air 1.5HP Smart Philippines
conditioner Inverter Split
Type Air
Conditioner

Printer P6,880 1 Emcor

Brother DCP- Philippines
J105 Multi-
Function Printer

Thermal Cordya Thermal P1,500 1 Lazada

Printer Printer

Projector P2,300 2
Unic UC28 Mini
Portable
Projector
Blender P6,000 2
Philips 800W 2L

Power Blender

HR2096/01

Coffe Maker P1,280 1

Oster 3301
Coffee Maker

Refrigerator P26,000 1
Whirlpool WIN
852 GS Two
Door
Refrigerator
[Link].

Chiller P14,950 1
Fujidenzo Su-45
A 4.5 [Link].
Chiller

Heater P6,200 1
Electrolux Allure

EWE351GX-DW 3.5

kw Singlepoint

Instant Water Heater

Lockers Ofix 18-door P9,000 1 Ofix
Steel Locker

Bean bags P2,050 6 Wayfair

Philippines

Bar Stools P2,000 6 Blims

Furniture

Dining P1,500 12 Blims

Chairs Furniture
Dining P2,300 6 Blims
Tables Furniture

Conference P5,650 1 Blims

Tables Furniture

P2,600 4 Blims
Furniture

Conference P1,600 20 Blims

Chairs Furniture

Hanging Geometric P1,900 2 Destination

Lights Pendant Lights Lighting
 Retro Cone Mini P2,000 6 Destination
Pendant Light Lighting

Ceiling P450 15 Destination

Lights Flushmount Lighting
Light with White
Glass

P2,780 1 Destination
Lighting

P2,340 2 Destination
Lighting

Wall Lights P560 4 Destination

Lighting
Extensions Omni Universal P399 6 Ace
Outlet Extension Hardware
Cord

Blinds P2,600 10 Lowes

Philippines

Napping P1,000 5 Amazon

Pillows

Bulletin P400 1 eBay

Board
III. PLANT, LOCATION, SIZE AND LAY-OUT

Actual Picture of the Under Construction Building, which is the proposed location of Habbo Hub

Location of Habbo Hub

The business is strategically located in the reconstructed building of Sunshine’s Bed and
Breakfast within Mabini Street beside of the Veterans Bank. It is the ideal location of the business
because it is near to the universities and school within the city like University of St. Louis Tuguegarao,
St. Paul University of the Philippines, Tuguegarao City Science High School, Cagayan State University,
and more, and malls like the SM Tuguegarao Downtown, Mall of the Valley, and Primark Mall which is a
perfect place to market our products and services.
6.00
 HABBO HUB 40

IV. Utilities

UTILITIES MONTHLY EXPENSE ANNUAL EXPENSE

Rent 60,000 720,000
Water 3,000 36,000
Electricity 15,000 180,000
Internet Connection 4,000 48,000
TOTAL 82,000 984,000

V. Waste Disposal

In order to comply with the proper sanitation and hygiene as prescribed by the
government and the Department of Health as to proper waste management for food and
beverage establishments, we put a garbage bin in every corner of our space, we are also
segregating our garbage into two classes-- Biodegradable and Non-Biodegradable and is both
properly disposed and also, we see to it that our Schedule of Disposal of Wastes is properly
followed .The collection of garbage by the garbage truck is scheduled everyday of the week
at 3-5 in the morning.

Financial Aspect
I. FINANCIAL ASSUMPTIONS
1. Sales Volume

Only 10% of the target population in the demand analysis will go to Habbo-hub weekly.
Sales will increase by 2% per year and purchases will also increase 2% per year. In the services,
it assumed that a customer will only stay in Habbo Hub at an average time of 1 hour. So 1
individual nook customer and 1 group that rents a Discussion Room will only stay for 1 hour.

 Study Nooks – 8,673

 Discussion Room – 1,503
 Locker – 69,372
 Krispy Kreme
 Per Piece – 27,335
 ½ Dozen – 22,178
 Per Dozen – 33,854

2. Tax Rates

As a sole proprietor business, the progressive tax rates will be use. The 12 percent Value
Added Tax will also apply for the purchases and sales in the business.
3. Selling Price and Charging Fees
 Study Nooks – P 70/head
 Discussion Room – P 200/ hour
 Locker – P 2/ day
 Krispy Kreme
 Per Piece – P 60
 ½ Dozen – P 350
 Per Dozen – P 470

4. Sources of Financing
Funding the business comes from the owner’s investment of cash.

5. Labor and Management Compensation

 Servers – P 380/day
 Cashiers – P 380/day
 Guards – P 500/day
 Manager – P16,000/month

6. Initial Capital Requirement – P 1,327,823 or approximately P 1,400,000

 Start-up Expenses – P 86,219
Marketing and Promotion Expenses – P 10,000
Prepaid Rent Expense – P 60,000
Business Licenses and Permits – P4,660
DTI Registration – P315
Mayor’s Permit – P2,504
Fire Safety and Inspection Fee – P1,340
BIR Registration - P500
Other Start-up Expenses includes internet and utility installation and deposits – P6,900

 Start-up Assets – P 1,241,604

Operating Capital (Salaries of Employees and Cash Reserves) – P 520,200
Salaries of Employees for 2 months – P 213,600
Cash Reserves for the first three months of operation – P 306,600
Start-up Inventory – P 99,600
Donuts – P 62,000
Coffee Beans – P 20,000
Beverages (coke and juices) – P 9,600
Retail Supplies (coffee cups, napkins, bond papers, cleaning, etc.) – P 8,000
Machineries – P 302,604
Furniture and Fixtures – P144,950
Leasehold Improvements – P 174,250
7. Accounting Policies

a. Method of Depreciation

The business will use straight line depreciation in depreciating their fixed assets. The
following are the useful life of the assets of the business:

 Computer, Printers and Projectors – 5 years

 Machineries – 5 years
 Leasehold Improvement – 10 years
 Furniture and Fittings (including electrical fittings) – 10 years

b. Inventory Valuation

The business will use First-In, First-Out method since the business is dealing with
perishable goods. The maximum storing days of donuts is 3 days and 2 months for the coffee
beans.
Ending inventory is equivalent to 10% of the total goods available for coffee beans, coke
and juices.

c. Leasehold Improvement

The leasehold improvement is amortized over the useful life of the improvements. This
includes the interior design of the building like the walls, doors, glass wall partition, paints,
ceiling, etc.

II. FINANCIAL STATEMENTS

1. Statements of Comprehensive Income
Habbo Hub
Projected Statement of Comprehensive Income

Notes 2018 2019 2020

Service Income 1 1,081,110.00 1,102,732.20 1,124,786.84
Sales 2 25,313,780.00 25,820,055.60 26,336,456.71
Total Revenue from Operations 26,394,890.00 26,922,787.80 27,461,243.56
Cost of Sales 3 23,805,280.00 24,196,600.80 24,658,988.02
Gross Income 2,589,610.00 2,726,187.00 2,802,255.54
Other Income 4 24,000.00 24,000.00 24,000.00
Total Income 2,613,610.00 2,750,187.00 2,826,255.54
Expenses:
Depreciation Expense 5 92,440.80 92,440.80 92,440.80
Salaries Expense 6 1,281,600.00 1,281,600.00 1,281,600.00
Suppies Expense 7 96,000.00 96,000.00 96,000.00
Advertising Expense 8 10,000.00 10,000.00 10,000.00
Utilities Expense 9 984,000.00 984,000.00 984,000.00
Other Expenses 10 16,218.00 - -
Income before tax 133,351.20 286,146.20 362,214.74
Income Tax Expense 21,170.24 60,843.86 83,664.42
Net Income 112,180.96 225,302.34 278,550.32
 2. Statement of Cash Flow

Habbo Hub
Statement of Cash Flow
2018 2019 2020
Operating Activities:
Cash Received 1 26,418,890.00 26,946,787.80 27,485,243.56
Cash Payment 2 23,591,640.00 23,896,600.80 24,358,988.02
Salaries Paid 1,281,600.00 1,281,600.00 1,281,600.00
Supplies 96,000.00 96,000.00 96,000.00
Advertising 10,000.00 10,000.00 10,000.00
Utilities 3 978,000.00 984,000.00 984,000.00
Freight-in 300,000.00 300,000.00 300,000.00
Other Expenses 4 16,218.00 - -
Income Tax Paid - 21,170.240 60,843.860

Net Cash Provided by Operating Activities 145,432.00 357,416.76 393,811.68

Investing Activities:
Purchase Airconditioning Units 5 104,800.00
Purchase Printing Equipment 6 6,880.00
Purchase of Projector 4,600.00
Purchase of Blender 12,000.00
Purchase of Coffee Maker 1,280.00
Purchase of Refrigerator 26,000.00
Purchase of Chiller 14,950.00
Purchase of Heater 6,200.00
Purchase of Lockers 9,000.00
Purchase of Bean Bag 12,300.00
Purchase of Bar Stool 12,000.00
Purchase of Dining Chair 18,000.00
Purchase of Dining Table 13,800.00
Purchase of Conference Table 7 16,050.00
Purchase of Conference Chair 32,000.00
Purchase of Extensions 2,394.00
Purchase of Blinds 26,000.00
Purchase of Napping Pillows 5,000.00
Purchase of Bulletin Board 800.00
Purchase of Cash Register 11,500.00
Purchase Vacuum Cleaner 5,000.00
Purchase Regrigerated Curved Glass 8 73,000.00
Purchase of CCTV 22,000.00
Purchase of Speaker 9 12,000.00
Leasehold Improvement 174,250.00

Net Cash Provided by Investing Activities 621,804.00

Financing Activities:
Initial Investment 1,400,000.00

Net Cash Provided by Investing Activities 1,400,000.00

Increase in Cash 923,628.00 357,416.76 393,811.68

Balance 923,628.00 1,281,044.76 1,674,856.44
3. Statement of Financial Position
Habbo Hub
Projected Statement of Financial Position
As of December 31, 2018
Assets Note Liabilities Note
Current Assets Utilities Payable 66,000.00 7
Cash 923,628.00 1 Income Tax Payable 21,170.24 8
Drinks and Coffee Beans 86,360.00 2 Total Liabilities 87,170.24
Prepaid Rent 60,000.00 3 Owner's Equity 1,512,180.96 9
Total Current Assets 1,069,988.00
Non Current Assets
Furnitures and Fixtures 130,455.00 4
Machineries 242,083.20 5
Leasehold Improvement 156,825.00 6
Total Non Current Assets 529,363.20

TOTAL ASSETS 1,599,351.20 TOTAL LIABILITIES AND OWNER'S EQUITY 1,599,351.20

Habbo Hub
Projected Statement of Financial Position
As of December 31, 2019
Assets Note Liabilities Note
Current Assets Utilities Payable 66,000.00 7
Cash 1,281,044.76 1 Income Tax Payable 60,843.86 8
Drinks and Coffee Beans 86,360.00 2 Total Liabilities 126,843.86
Prepaid Rent 60,000.00 3 Owner's Equity 1,737,483.30 9
Total Current Assets 1,427,404.76
Non Current Assets
Furnitures and Fixtures 115,960.00 4
Machineries 181,562.40 5
Leasehold Improvement 139,400.00 6
Total Non Current Assets 436,922.40

TOTAL ASSETS 1,864,327.16 TOTAL LIABILITIES AND OWNER'S EQUITY 1,864,327.16

Habbo Hub
Projected Statement of Financial Position
As of December 31, 2020
Assets Note Liabilities Note
Current Assets Utilities Payable 66,000.00 7
Cash 1,674,856.44 1 Income Tax Payable 83,664.42 8
Drinks and Coffee Beans 86,360.00 2 Total Liabilities 149,664.42
Prepaid Rent 60,000.00 3 Owner's Equity 2,016,033.62 9
Total Current Assets 1,821,216.44
Non Current Assets
Furnitures and Fixtures 101,465.00 4
Machineries 121,041.60 5
Leasehold Improvement 121,975.00 6
Total Non Current Assets 344,481.60

TOTAL ASSETS 2,165,698.04 TOTAL LIABILITIES AND OWNER'S EQUITY 2,165,698.04

4. Statement of Owner’s Equity

Habbo Hub
Projected Statement of Owner's Equity
2018 2019 2020
Beginning Capital 1,400,000 1,512,180.96 1,737,483.30
Net Income 112,180.96 225,302.34 278,550.32
Drawings - - -
Ending Balance 1,512,180.96 1,737,483.30 2,016,033.62

5. Notes to Financial Statements

Notes to Financial Statements - Statement of Comprehensive Income

Note 1 Service Fees 2018 2019 2020

Study Nooks 8673 607,110.00 619,252.20 631,637.24
Discussion Room 1503 300,600.00 306,612.00 312,744.24
Lockers 69372 138,744.00 141,518.88 144,349.26
1,081,110.00 1,102,732.20 1,124,786.84
Selling Price Total
1 pc 27,335 60.00 1,640,100.00
½ 22,178 350.00 7,762,300.00
1 dozen 33,854 470.00 15,911,380.00
TOTAL 25,313,780.00
Note2 Sales 2018 2019 2020
Krispy Kreme 25,313,780.00 25,820,055.60 26,336,456.71
Note 3 Cost of Sales
Soda
2018 2019 2020
Beginning Inv 3,000.00 23,340.00 23,340.00
Purchases 230,400.00 210,060.00 210,060.00
Goods Available for Sale 233,400.00 233,400.00 233,400.00
Cogs 210,060.00 210,060.00 210,060.00
Inv end 23,340.00 23,340.00 23,340.00

Cofee bean
2018 2019 2020
Beginning Inv 20,000.00 42,000.00 42,000.00
Purchases 400,000.00 378,000.00 378,000.00
Goods Available for Sale 420,000.00 420,000.00 420,000.00
Cogs 378,000.00 378,000.00 378,000.00
Inv end 42,000.00 42,000.00 42,000.00
 Juice
2018 2019 2020
Beginning Inv 2,000.00 17,480.00 17,480.00
Purchases 172,800.00 157,320.00 157,320.00
Goods Available for Sale 174,800.00 174,800.00 174,800.00
Cogs 157,320.00 157,320.00 157,320.00
Inv end 17,480.00 17,480.00 17,480.00

Sugar
2018 2019 2020
Beginning Inv 2,000.00 1,200.00 1,200.00
Purchases 10,000.00 10,800.00 10,800.00
Goods Available for Sale 12,000.00 12,000.00 12,000.00
Cogs 10,800.00 10,800.00 10,800.00
Inv end 1,200.00 1,200.00 1,200.00

Creamer
2018 2019 2020
Beginning Inv 2,600.00 2,340.00 2,340.00
Purchases 20,800.00 21,060.00 21,060.00
Goods Available for Sale 23,400.00 23,400.00 23,400.00
Cogs 21,060.00 21,060.00 21,060.00
Inv end 2,340.00 2,340.00 2,340.00

Total pieces Cost Total

566,651.00 40.00 22,666,040.00
2018 2019 2020
Beginning Inventory 91,600.00 86,360.00 86,360.00
Freight In 300,000.00 300,000.00 300,000.00
Purchases 23,500,040.00 23,896,600.80 24,358,988.02
Goods Available For Sale 23,891,640.00 24,282,960.80 24,745,348.02
Cost of Sales 23,805,280.00 24,196,600.80 24,658,988.02
Ending Inventory 86,360.00 86,360.00 86,360.00
Note 4 Other Income
Monthly Annually
Printing Services 2000 24000
Note 5 Depreciation Expense
Cost Years Depreciation
Equipment 309,104.00 5 60,520.80
Furniture and Fixture 144,950.00 10 14,495.00
Leasehold Improvement 152,250.00 10 17,425.00
Total 606,304.00 92,440.80
Note 6 Salaries Expense
Employees No. Wage (per day) Days of work Annually
Guard 3 500 5 360,000.00
Servers 5 380 5 456,000.00
Cashier 3 380 5 273,600.00
Manager 1 16000 5 192,000.00
1,281,600.00
Note 7 Supplies Expense
Monthly Annually
8000 96,000.00
Note 8 Advertising expense
Annually
10,000.00
Note 9 Utilities Expense

Rent Expense 720,000.00

Water Expense 36,000.00
Electricity 180,000.00
Internet Connection 48,000.00
Total 984,000.00
Note 10 Other Expenses
Taxes and Licenses 9,318.00
Other Start Up Expenses 6,900.00
Total 16,218.00

Notes to Financial Statements - Cash Flow

1 Service Income 1,081,110.00 1,102,732.20 1,124,786.84
Sales 25,313,780.00 25,820,055.60 26,336,456.71
Other Income 24,000.00 24,000.00 24,000.00
26,418,890.00 26,946,787.80 27,485,243.56
2 2018 2019 2020
Start-up Inventory 91,600.00
Purchases 23,500,040.00 23,896,600.80 24,358,988.02
Cash Payment 23,591,640.00 23,896,600.80 24,358,988.02
2018 2019 2020
3 Rent 720,000.00 720,000.00 720,000.00
Water 36,000.00 36,000.00 36,000.00
Electricity 180,000.00 180,000.00 180,000.00
Internet Connection 48,000.00 48,000.00 48,000.00
Prepaid Rent 60,000.00
1,044,000.00 984,000.00 984,000.00
4 Business Licenses and Permits 4,659.00
DTI Registration – P315 315.00
Mayor’s Permit 2,504.00
Fire Safety and Inspection Fee 1,340.00
BIR Registration 500.00
Other Start-up Expenses 6,900.00
16,218.00
5 Purchase Airconditioning Units Number of Units Price Per Unit
Window-Type Air Conditioner 2.00 12,500.00 25,000.00
Split-type Air conditioner 3.00 26,600.00 79,800.00
104,800.00
6 Purchase Printing Equipment Number of Units Price Per Unit
Brother Printer 1.00 6880 6,880.00

6,880.00
7 Purchase of Conference Table
1.00 5650 5,650.00
4.00 2600 10,400.00
16,050.00
8 Purchase Regrigerated Curved Glas Number of Units Price Per Unit
2.00 36500 73,000.00
9 Purchase of Speaker Number of Units Price Per Unit
2.00 6000 12,000.00
 Notes to Financial Statements - Statement of Financial Position Year 1
Note 1- Cash and Cash Equivalents
Cash on Hand 923,628.00
Total cash and cash equivalents 923,628.00
Note 2- Drinks and Coffee Beans Coke Coffee Bean Juice Creamer Sugar
Beginning Inv 3000 20000 2000 2,600.00 2,000.00
Purchases 230400 400000 172800 20,800.00 10,000.00
Goods Available for Sale 233400 420000 174800 23400 12000
Cogs 210060 378000 157320 21060 10800
Inv end 23340 42000 17480 2340 1200
Note 3- Prepaid Expense
Prepaid Rent 60,000.00
Total prepaid expenses 60,000.00
Note 4- Furniture and fixtures Cost Quantity Total Cost
Ofix 18-door Steel Locker 9,000.00 1.00 9,000.00
Bean bags 2,050.00 6.00 12,300.00
Bar Stools 2,000.00 6.00 12,000.00
Dining Chairs 1,500.00 12.00 18,000.00
Dining Tables 2,300.00 6.00 13,800.00
Conference Tables 5,650.00 1.00 5,650.00
Conference Tables 2,600.00 4.00 10,400.00
Conference Chairs 1,600.00 20.00 32,000.00
Blinds 2,600.00 10.00 26,000.00
Napping Pillows 1,000.00 5.00 5,000.00
Bulletin Board 400.00 2.00 800.00
Total 144,950.00
Accumulated Depreciation 14,495.00
Carrying Amount 130,455.00
Note 5 - Machineries
Cost Quantity Total Cost
LG LA080TC Window Type Airconditioner 12,500.00 2.00 25,000.00
LG HS-12IST 1.5HP Smart Inverter Split Type Air Con 26,600.00 3.00 79,800.00
Brother DCP-J105 Multi-Function Printer 6,880.00 1.00 6,880.00
Unic UC28 Mini Portable Projector 2,300.00 2.00 4,600.00
Philips 800W 2L Power Blender HR2096/01 6,000.00 2.00 12,000.00
Oster 3301 Coffee Maker 1,280.00 1.00 1,280.00
Whirlpool WIN 852 GS Two Door Refrigerator 8.5cu. 26,000.00 1.00 26,000.00
Fujidenzo Su-45 A 4.5 [Link]. Chiller 14,950.00 1.00 14,950.00
Electrolux Allure EWE351GX-DW 3.5 kw Singlepoint I 6,200.00 1.00 6,200.00
Omni Universal Outlet Extension Cord 399.00 6.00 2,394.00
Cash Register 11,500.00 1.00 11,500.00
Vacuum Cleaner 5,000.00 1.00 5,000.00
Refrigerted Curved Glass Display 36,500.00 2.00 73,000.00
CCTV 22,000.00 1.00 22,000.00
Speakers 6,000.00 2.00 12,000.00
Total 302,604.00
Accumulated Depreciation 60,520.80
Carrying Amount 242,083.20
Note 6 - Leasehold Improvements
Total Cost
Hanging Lights 15,800.00
Ceiling Lights 14,210.00
Wall Lights 2,240.00
Remodeling Cost 142,000.00
TOTAL 174,250.00
Accumulated Depreciation 17,425.00
Carrying Amount 156,825.00
Note 7 - Utilities Payable
Water Expense 3,000
Electricity 15,000
Internet Connection 48000
TOTAL 66,000
Note 8- Income Tax Payable
Income Tax Payable 21,170.24
Note 9 - Owner's Equity
Beginning Capital 1,400,000.00
Net Income 112,180.96
Ending Capital 1,512,180.96
 Notes to Financial Statements - Statement of Financial Position Year 2

Note 1- Cash and Cash Equivalents

Cash on Hand 1,281,044.76
Total cash and cash equivalents 1,281,044.76
Note 2- Drinks and Coffee Beans Coke Coffee Bean Juice Creamer Sugar
Beginning Inv 23340 42000 17480 2340 1200
Purchases 210060 378000 157320 21060 10800
Goods Available for Sale 233400 420000 174800 23400 12000
Cogs 210060 378000 157320 21060 10800
Inv end 23340 42000 17480 2340 1200
Note 3- Prepaid Expense
Prepaid Rent 60,000.00
Total prepaid expenses 60,000.00
Note 4- Furniture and fixtures Cost Quantity Total Cost
Ofix 18-door Steel Locker 9,000.00 1.00 9,000.00
Bean bags 2,050.00 6.00 12,300.00
Bar Stools 2,000.00 6.00 12,000.00
Dining Chairs 1,500.00 12.00 18,000.00
Dining Tables 2,300.00 6.00 13,800.00
Conference Tables 5,650.00 1.00 5,650.00
Conference Tables 2,600.00 4.00 10,400.00
Conference Chairs 1,600.00 20.00 32,000.00
Blinds 2,600.00 10.00 26,000.00
Napping Pillows 1,000.00 5.00 5,000.00
Bulletin Board 400.00 2.00 800.00
Total 144,950.00
Accumulated Depreciation 28,990.00
Carrying Amount 115,960.00
Note 5 - Machineries
Cost Quantity Total Cost
LG LA080TC Window Type Airconditioner 12,500.00 2.00 25,000.00
LG HS-12IST 1.5HP Smart Inverter Split Type Air Co 26,600.00 3.00 79,800.00
Brother DCP-J105 Multi-Function Printer 6,880.00 1.00 6,880.00
Unic UC28 Mini Portable Projector 2,300.00 2.00 4,600.00
Philips 800W 2L Power Blender HR2096/01 6,000.00 2.00 12,000.00
Oster 3301 Coffee Maker 1,280.00 1.00 1,280.00
Whirlpool WIN 852 GS Two Door Refrigerator 8.5c 26,000.00 1.00 26,000.00
Fujidenzo Su-45 A 4.5 [Link]. Chiller 14,950.00 1.00 14,950.00
Electrolux Allure EWE351GX-DW 3.5 kw Singlepoin 6,200.00 1.00 6,200.00
Omni Universal Outlet Extension Cord 399.00 6.00 2,394.00
Cash Register 11,500.00 1.00 11,500.00
Vacuum Cleaner 5,000.00 1.00 5,000.00
Refrigerted Curved Glass Display 36,500.00 2.00 73,000.00
CCTV 22,000.00 1.00 22,000.00
Speakers 6,000.00 2.00 12,000.00
Total 302,604.00
Accumulated Depreciation 121,041.60
Carrying Amount 181,562.40
Note 6 - Leasehold Improvements cost
Hanging Lights 15,800.00
Ceiling Lights 14,210.00
Wall Lights 2,240.00
Remodeling Cost 142,000.00
TOTAL 174,250.00
Accumulated Depreciation 34,850.00
Carrying Amount 139,400.00
Note 7 - Utilities Payable
Water Expense 3,000
Electricity 15,000
Internet Connection 48000
TOTAL 66,000
Note 8- Income Tax Payable
Income Tax Payable 60843.86
Note 9 - Owner's Equity
Beginning Capital 1,512,180.96
Net Income 225,302.34
Ending Capital 1,737,483.30
 HABBO HUB 50

Notes to Financial Statements - Statement of Financial Position Year 3

Note 1- Cash and Cash Equivalents

Cash on Hand 1,674,856.44
Total cash and cash equivalents 1,674,856.44
Note 2- Drinks and Coffee Beans Coke Coffee Bean Juice Creamer Sugar
Beginning Inv 23340 42000 17480 2340 1200
Purchases 210060 378000 157320 21060 10800
Goods Available for Sale 233400 420000 174800 23400 12000
Cogs 210060 378000 157320 21060 10800
Inv end 23340 42000 17480 2340 1200
Note 3- Prepaid Expense
Prepaid Rent 60000
Total prepaid expenses 60000
Note 4- Furniture and fixtures Cost Quantity Total Cost
Ofix 18-door Steel Locker 9,000.00 1.00 9,000.00
Bean bags 2,050.00 6.00 12,300.00
Bar Stools 2,000.00 6.00 12,000.00
Dining Chairs 1,500.00 12.00 18,000.00
Dining Tables 2,300.00 6.00 13,800.00
Conference Tables 5,650.00 1.00 5,650.00
Conference Tables 2,600.00 4.00 10,400.00
Conference Chairs 1,600.00 20.00 32,000.00
Blinds 2,600.00 10.00 26,000.00
Napping Pillows 1,000.00 5.00 5,000.00
Bulletin Board 400.00 2.00 800.00
Total 144,950.00
Accumulated Depreciation 43,485.00
Carrying Amount 101,465.00
Note 5 - Machineries
Cost Quantity Total Cost
LG LA080TC Window Type Airconditione 12,500.00 2.00 25,000.00
LG HS-12IST 1.5HP Smart Inverter Split T 26,600.00 3.00 79,800.00
Brother DCP-J105 Multi-Function Printer 6,880.00 1.00 6,880.00
Unic UC28 Mini Portable Projector 2,300.00 2.00 4,600.00
Philips 800W 2L Power Blender HR2096/ 6,000.00 2.00 12,000.00
Oster 3301 Coffee Maker 1,280.00 1.00 1,280.00
Whirlpool WIN 852 GS Two Door Refrige 26,000.00 1.00 26,000.00
Fujidenzo Su-45 A 4.5 [Link]. Chiller 14,950.00 1.00 14,950.00
Electrolux Allure EWE351GX-DW 3.5 kw 6,200.00 1.00 6,200.00
Omni Universal Outlet Extension Cord 399.00 6.00 2,394.00
Cash Register 11,500.00 1.00 11,500.00
Vacuum Cleaner 5,000.00 1.00 5,000.00
Refrigerted Curved Glass Display 36,500.00 2.00 73,000.00
CCTV 22,000.00 1.00 22,000.00
Speakers 6,000.00 2.00 12,000.00
Total 302,604.00
Accumulated Depreciation 181,562.40
Carrying Amount 121,041.60
Note 6 - Leasehold Improvements
Hanging Lights 15,800.00
Ceiling Lights 14,210.00
Wall Lights 2,240.00
Remodeling Cost 142,000.00
Total 174,250.00
Accumulated Depreciation 52,275.00
Carrying Amount 121,975.00
Note 7 - Utilities Payable
Water Expense 3,000
Electricity 15,000
Internet Connection 48000
TOTAL 66,000
Note 8- Income Tax Payable
Income Tax Payable 83664.422
Note 9 - Owner's Capital
Beginning Capital 1737483.3
Net Income 278550.32
Ending Capital 2,016,033.62

Appendices

Year Net Cash flow Cash to date Payback Period

 HABBO HUB 51
1 204,621.76 204,621.76 1
2 317,743.13 522,364.89 1
3 370,991.12 893,356.01 1
4 437,843.20 1,331,199.21 1
5 520,739.78 1,400,000.00 0.13
Total 4.13 years

(1,400,000) - (1,3991,199.21) = 0.13

520,739.78