Assignment task:
Situation:
A New 80-room hotel will open on November 2022 along Jupiter St, in between "pardon my French bar" and KFC. The hotel will be called Bel-Ami, since the location is in Bel-Air, Makati. On the ground floor will be the reception area where guest will register to check in. About 7 meters from the reception area, on the same floor is a space for a "Starbucks style coffee shop to serve coffee and pastries. The area is 40 square meters and the rent is P1,800 per square meter (2 months advance + 3 months) deposit) plus 12% of gross sales. The owner, Mr. David Chua is offering you the space to put up a coffee shop since he fancies the smell of brewed coffee flowing into the reception area.
Question 1: How much investment do you need to start the business? What do you need to be able to start the business?
Question 2: What are the prices of your products?
Question 3: What are my expected monthly expenses (Labor, electricity, cost of goods, etc) and expected monthly sales (how many cups of coffee and pastries) to be profitable?