Documente Academic
Documente Profesional
Documente Cultură
1
1203302
PROJECT FEASIBILITY STUDY
AND EVALUATION
OKEY COFFEE
By
MISS ORACHORN PHOLPHASUK
ID 4931205207
TOURISM MANAGEMENT
SCHOOL OF MANAGEMENT
THIRD SEMESTER, 2009
MAE FAH LUANG UNIVERSITY
A
Preface
Content
Preface.............................................................................................................................A
Content.............................................................................................................................B
Appendix......................................................................................................................325
1
Chapter 1
Introduction
2
This chapter explains about overall of project. There are background and
significant, objective, benefit, activity and timework of our company. You can know
that why we do this project from this chapter.
Coffee originated in tropical Africa, from where it has since been introduced to
most tropical countries throughout the world. Coffee was introduced to Southeast Asia
and the West Indies in the 17th and 18th centuries.
Nowadays coffee consumption market is more expand that we can observe the
coffee products in the market which are coffee bean, ground coffee, instant coffee and
instant coffee canned and there are many coffee drink manufactures in Thailand which
are famous brand names, regular shops and instant coffee that sell in convenience shop
or store regular shop and etc. Prices of fresh coffee are higher than instant coffee that
sell with the feature of cans, bottles and plastics bag because the costs are expensive; it
is 10 to more hundred baht and they are better tastes. Thai Coffee Consumption Trend
in year 2009 was increased because it is good taste and high quality so the premium
coffee shop is spread in Thailand widely because Thai people change their behavior. In
each main regions of Thailand which are North, Central, Northern East and South, there
are many coffee shops that provide for public so the customers have many choices for
them. The famous coffee shops in Thailand are Starbucks, Black Canyon, Blue
Mountain, Suzuki, Gloria fasdf Jean's Coffees, Au Bon Pain, Cffee World, Doitung,
Wawee, Doi Chang and etcs. There are 2 type of market segmentation that foreign
brand name is 60% and Thai brand name is 40%. The main consumers of premium are
business man, tourists, officers and student that they have power to buy because they
almost of them are middle class and they want to consume the taste and quality of
coffee. They do not concern much with higher price.
Phuket
Getting to Phuket
By bus
Intercity and public bus is one of the cheapest ways to take you to Phuket. Buses
leave daily and directly to Phuket from Bangkok’s Southern Terminal Station. Both air-
conditioned and non air-conditioned buses are provided, and of course the price is
different. The overnight buses are the most popular choice since they are comfortable.
The approximate duration is 12-14 hours. For more information, call 0-2435-1199, 0-
2435-1200, 0-2434-7192, 0-2434-5557-8 or visit www.transport.co.th. There are also
buses leaving from Khaosarn Road, operated by some travel operators, and of course
4
the price will be different, probably higher. Suggest you to find out when you are
hanging around there.
By car
Going to Phuket by car is probably the most fun trip when this allows you to
stop at several beautiful places all the way along the trip and catch nice photos. Just
drive along Petchkasem Road (Highway No. 4), you will pass through Nakhon Pathom,
Ratchburi, Prachuab Kiri Khan, Chumporn, Ranong, Phang-nga, and cross Sarasin
Bridge and here there is… downtown Phuket. The total distance is 862 kms,
approximately 12 hours, but still several destinations to explore and enjoy. However, if
you are afraid of losing the way, a map is also recommended.
By train
Taking a train is also another cheapest way, but keep it in mind that there is in
fact no direct train commuting down to Phuket. Take the train at main Hua Lamphong
Train Station and get off at Surat Thani to take bus to Phuket. The overnight train is far
more comfortable than overnight buses. But pre-booking is advised several days in
advance. Check the train schedule with the State Railway of Thailand (Hua Lamphong
Train Station) at 1690, 0-2223-7010, 0-220-4444, 0-222-4334 and 0-2621-8701.
By air
Taking a flight down to Phuket is definitely the most convenient way when it
only takes approximately one hour (unless the flight is delayed). There are several
domestic flights operating daily and directly from Bangkok to Phuket at Phuket
International Airport – both regular price (bit high) and low cost, also depending on
seasons (low or high). We recommend you to compare the price between airlines for the
best deal. Check out the list below with contact details:
Phuket also offer direct flights to international destinations such as Kuala Lumpur,
Hong Kong, Penang, Singapore, Sydney, etc.
Karon Beach
Thing to Do
Different flavour from Kata. For a start, it’s more spread out. There’s a Buddhist
temple overlooking the road leading down to the beach, several up market hotels only a
few hundred metres from the sea, and a town centre that is friendly by day and
downright cheeky by night. The beach road itself, following the curving banana-shaped
coast is dotted with shops, eateries and a good selection of tailors. Karon is expanding,
but with caution. Building projects are kept well away from the beach and the byword is
‘discretion’. Like Kata, there are many dive shops to choose from if you wish to explore
the extraordinarily beautiful underwater world of the Andaman sea. By night, Karon’s
bars compete for the visitor’s attention in various ways: Loud music, atmospheric beach
bars, haute cuisine, expat haunts, they’re all there to draw you in if you feel like it.
Some visitors opt for the stroll along the beach road to Kata and back. It’s certainly a
fascinating vignette of Thai life. Like Kata, Karon nightlife lasts as long as you do.
Getting There
Karon are, roughly speaking, forty-five kilometres away from the airport,
depending on the route your driver chooses. This trip will take an hour and costs 500
baht by taxi. If you wish to take a taxi to Phuket Town, then clamber aboard a local bus
at the fresh market. ( A Song Taeuw, so called because of the "two bench" arrangement
used to seat passengers) The fare from Phuket will be 20 baht. Hiring a car from the
airport is also possible and, once arrived, you may want to rent a motorcycle in Karon
itself. There are many beautiful viewpoints above Karon that are only accessible to
either the extremely fit or to people who have their own locomotion.
The total population of Phuket is 335,913 people in year 2009 which the male
are 159,526 people and female are 176,387 people.
Figure 1.3: Number of Foreign Tourists between Year 2008 – 2009 in Phuket
1300000 1217303
1200000 1190032
1100000
1000000
900000
800000
700000
600000
500000
400000
300000
200000
100000
0
2008 2009
Finland
Singapore 6.47%, 48,699
Russia 6 .61%, 49,770
6.79%, 57,338 Australia
19.52%, 146,962
Germany
7.62%, 57,338
Korea
14.78%, 111,255
Sweden
14.43%, 108,582
Malaysia
8.09%, 60,867
China
7.63%, 57,454
England
8.06%, 6 0,690
11
Why this project should launch in the area that calls “Pearl of Andaman Sea” or
Phuket province because it is the very popular and famous place for tourist destination
in Thailand which there are Thai and foreign tourists who come to visits this provice
and the statistic graph show that the foreigners are more than Thai. From the pie chart, it
show that the most tourists who come to visit Phuket are from other country which are
Australia, Korea, Sweden, Malaysia, England and China and there are only few
domestic travelers. The information of Phuket Provincial Governor's Office show the
main income of population in Phuket is hotel and restaurant at 38.92 percents, Logistic
and Transportation is 14.12 percents and Retailer is 10.54 percents so the one good
point for this project is the tourists destination because there are high purchasing powers
in the market and we can sell in the high price because the land value is very expensive.
Our product is in the niche market because the premium coffee store businesses are in
Karon beach because there are low competitors which are very few direct competitors
and there are few non direct competitors such as sevens, regular shops and restaurants.
In addition although the political situation of Thailand is not stability which are Red
Shirts and Yellow Shirts but it is not effect to our business because Phuket Island has
international direct flights to this island and Somboon Jirayus, president of Phuket
Tourist Association, said on Sunday February 2010. Despite warnings by three major
tourist-providing countries warning their nationals from traveling to Thailand due to the
risk of civil unrest, tourism businesses in the southern resort of Phuket is booming with
no hotel room cancellations. From these reasons, allowing I interested to study the
possibility of Coffee store business in Phuket.
Operations April
Methods
08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
1. To study the
general
information of
coffee store
business in
Phuket.
2. To study
management
in coffee store
business.
3. To study
competition
analysis and
marketing
feasibility.
4. To study the
technical
process
for coffee
store business.
14
Operation May
Methods
25 26 27 28 29 30 01 02 03 04 05 06 07 08 09 10 11 12
5. To study
the
financial
feasibility
of coffee
store
business.
6. To study
and
analysis
risk of
coffee store
business in
Phuket.
7. To
Summary
the
feasibility
of coffee
store
business in
Phuket.
15
Chapter 2
Industry Profile
16
This chapter explains about the history and industry’s situation of all coffee
business in both Thailand and foreign market. As well as the detail of coffee business
brand name which fatuous and general product of coffee business in Thailand. We show
vision, mission, and strategy of company in this chapter.
Did you know coffee is the most consumed beverage in the world? How did
coffee get this ranking? What country first figured out coffee was safe for consumption?
When was the first drink of coffee prepared? Where did the first coffee shop come in
being? There are many questions about the starting point of drinking coffee. It has been
so long ago no one really knows all the facts. But, one thing is for sure, coffee is the
most consumed beverage on the planet.
It looks as if the first trace came out of Abyssinia and was also sporadically in
the vicinity of the Red Sea around seven hundred AD. Along with these people, other
Africans of the same period also have a history of using the coffee berry pulp for more
than one occasion like rituals and even for health.
Coffee began to get more attention when the Arabs began cultivating it in their
peninsulas around eleven hundred AD. It is speculated that trade ships brought the
coffee their way. The Arabs started making a drink that became quite popular called
gahwa--- meaning to prevent sleep. Roasting and boiling the bean was how they made
this drink. It became so popular among the Arabs that they made it their signature
Arabian wine and it was used a lot during rituals.
After the coffee bean was found to be a great wine and a medicine, someone
discovered in Arabia that you could also make a different dark, delicious drink out of
the beans, this happened somewhere around twelve hundred AD. After that it didn't take
long and everyone in Arabia was drinking coffee. Everywhere these people traveled the
17
coffee went with them. It made its way around to India, North Africa, the eastern
Mediterranean, and was then cultivated to a great extent in Yemen around fourteen
hundred AD. Other countries would have gladly welcomed these beans if only the
Arabs had let them. The Arabs killed the seed-germ making sure no one else could grow
the coffee if taken elsewhere. Heavily guarding their plants, Yemen is where the main
source of coffee stayed for several hundred years. Even with their efforts, the beans
were eventually smuggled out by pilgrims and travelers.
Around 1475 the first coffee shop opens in Constantinople called Kiv Han two
years after coffee was introduced to Turkey, in 1554 two coffee houses open there.
People came pouring in to socialize, listen to music, play games and of course drink
coffee. Some often called these places in Turkey the "school of the wise", because you
could learn so much by just visiting the coffee house and listening to conversations. In
the sixteen hundreds coffee enters Europe through the port of Venice. The Turkish
warriors also brought the drink to Balkans, Spain, and North Africa. Not too much later
the first coffee house opens in Italy.
There were plenty of people also trying to ban coffee. Such as Khair Beg a
governor of Mecca who was executed and Grand Vizir of the Ottoman Empire who
successfully closed down many coffee houses in Turkey. Thankfully not everyone
thought this way.
In the early sixteen hundreds coffee is presented to the New World by man
named John Smith. Later in that century, the first coffee house opens in England. Coffee
houses or "penny universities" charged a penny for admission and for a cup of coffee.
The word "TIPS" (for service) has it's origin from an English coffee house.
18
Early in the 17th century, Edward Lloyd's coffee house opens in England. The
Dutch became the first to commercially transport coffee. The first Parisian caf頯pens in
1713 and King Louis XIV is presented with a lovely coffee tree. Sugar is first used as
an addition to coffee in his court.
Coffee plants were introduced in the Americas for development. By close to the
end of the seventeen hundreds, 1,920 million plants are grown on the island.
Evidently the eighteen hundreds were spent trying to find better methods to make
coffee.
New methods to help brewing coffee start popping up everywhere. The first
commercial espresso machine is developed in Italy. Melitta Bentz makes a filter using
blotting paper. Dr. Ernest Lily manufactures the first automatic espresso machine. The
Nestle Company invents Nescafe instant coffee. Achilles Gaggia perfects the espresso
machine. Hills Bros. begins packing roasted coffee in vacuum tins eventually ending
local roasting shops and coffee mills. A Japanese-American chemist named Satori Kato
from Chicago invents the first soluble "instant" coffee.
German coffee importer Ludwig Roselius turns some ruined coffee beans over
to researchers, who perfected the process of removing caffeine from the beans without
destroying the flavor. He sells it under the name Sanka. Sanka is introduced in the
United States in 1923.
Prohibition goes into effect in United States. Coffee sales suddenly increase.
Brazil asked Nestle to help find a solution to their coffee surpluses so the Nestle
Company comes up with freeze-dried coffee. Nestle also made Nescafe and introduced
it to Switzerland.
Today the US imports 70 percent of the world's coffee crop. During W.W.II,
American soldiers were issued instant Maxwell House coffee in their ration kits. In
Italy, Achilles Gaggia perfects his espresso machine. The name Cappuccino comes from
the resemblance of its color to the robes of the monks of the Capuchin order. One week
before Woodstock, the Manson family murders coffee heiress Abigail Folger as she
visits with her friend Sharon Tate in the home of filmmaker Roman Polanski.
Starbucks opens its first store in Seattle's Pike Place public market in 1971. This
creates madness over fresh-roasted whole bean coffee. Coffee finally becomes the
world's most popular beverage. More than 450 billion cups are sold each year by 1995.
Coffee Today
For North Americans, the world's largest consumers, Seattle is the new spiritual
home of coffee. The wettest major city in the USA gave birth in the 1970s to a café or
'Latte' culture which swept the USA and has dramatically improved the general quality
of the coffee Americans drink. Today, any public place in the USA will have one or
more coffee carts, serving a variety of coffees, drinks and snacks. This new found
'coffee culture' has started to spread to the rest of the world. To those countries with
great coffee traditions of their own, such as Italy, Germany, and Scandinavia, added
new converts to the pleasures of good coffee. Today it is possible to find good coffee in
every major city of the world, from London to Sydney to Tokyo; tomorrow the world
will drink more and more importantly, better coffee.
Now in the 21st century we have many different styles, grinds, and flavors of
coffee. We have really come a long way even with our coffee making machines. There's
no sign of coffee consumption decreasing. Researchers are even finding many health
benefits to drinking coffee. Drink and enjoy!
The market for coffee chain retailers is growing every year. Despite the
economic downtown in recent year, coffee shop business has been a bright spot. While
hundreds of business in many categories are facing poor sales negatives balance sheet
and even bankruptcy, coffee chain continue to show strong growth.
21
The coffee culture had been buried deeply in many people life, where coffee is a
part of their life. Many of them need cups of coffee every morning to kick of their day.
But nowadays coffee does not only served in the morning but all day until midnight
where coffee needed as a boost of energy. People tend to walk in to the coffee shops for
all kind of cause nowadays. Coffee shops provide comfortable and cozy environment
and ambiance for the customers to sit back relax while sipping the hot coffee. Coffee
shops are now popular for whether businessmen to socialize, friends to meet up, serving
internet or event dating. Many of them prefer to consume on coffee and lighter meal
such as sandwich at a reasonable price as compare with heavy meal and more expensive
restaurant or alcoholic drinks in pub. Therefore there is huge potential market to be
penetrated.
The recent growth of the coffee shop industry has been phenomenal. Coffee is
now the largest food imported into the USA. More and more eager customers are
flocking to coffee shops, standing in line and paying premium prices. There really is
gold in those beans if we understand the business. However, there is some "insider
strategies" we'll need to implement if we want to cash in on this phenomenal growth
business opportunity. If we like the idea of earning significant money while meeting
people and being surrounded by great aromas and good coffee, this industry might be
our ticket. Although the specialty coffee business looks easy, appearances can be
deceiving. There are a few things first time operators MUST know (that their
competitors are in no hurry to share with them). This information can be the difference
between a "for lease" sign or a "we're hiring and expanding" sign in our coffee shops
window 9 months from now.
(Source: http://www. Coffeeshopprofits.com- Monday, 19 Apr 2010 )
Coffee in Thailand
Coffee has actually been grown and cultivated in Thailand for hundreds of years,
but the industry began to change in the 1960s. The reason for this is that Thailand was
reported to import eight times more coffee than it was actually exporting. Thailand
produces both Robusta and Arabica coffee beans, but 99% of the beans that are
22
produced in Thailand are Robusta. Another popular coffee trend in Thailand is bottled
coffee, which values at more than 4% of recent instant coffee sales in Thailand.
As far as the Thai coffee culture goes, it has been slowly growing since 2006.
Within many Thai coffee shops, you will be able to find iced Thai coffee, normally
served in a paper cup. This is also something that you can find sold by vendors on the
street, and it normally will be strongly brewed with sweet condensed milk. This is a
beverage easy to take with you on the go, and if you visit Thailand, it is a staple of the
culture.
One interesting thing to keep in mind about coffee on the rise in Thailand is that
Asian cultures are normally associated with tea drinking over the centuries. Since coffee
is becoming popular internationally, there are also many new coffee shops popping up,
including Starbucks, all over the globe. This is something directly affecting Asian
cultures, especially with the global brand of Starbucks at hand. Many Asians prefer
coffee from these commercial chains versus local vendors, especially since they are a
newer commodity.
Many people feel that the rise of the coffee culture in Thailand came from
23
coffee habits being brought back from travels to Europe or America. This also brought
new job opportunities to these countries with coffee cultivation and coffee franchises
opening.
Most of the coffee that you will find in Thailand is brewed, and the only
"instant" coffee is normally sold cold in cans. Thai coffee is something delicious that
you can easily make within your own home, and it is signified by the addition of sweet
cream and spices. Again, it is normally served iced, and it can be mixed with ground
cardamom, sweet condensed milk, and even sugar. Try this dark and sweet coffee that is
traditional to Thailand, and see for yourself if you like it!
1. Instant Coffee is produced for an easy way to make coffee cup at home that it is
the most consumption because it is very convenience and save.
2. Instant Coffee Canned is Business which produced in can or bottle features. It
is the most convenience and the customers concern in prices more quality.
24
3. Beans & Ground / Filter & Sachet business is very popular nowadays. The
consumer is the middle class and high class which there are 20% of population
of Thailand. Almost of consumers are people who have knowledge about quality
and taste of coffees.
For premium coffee consumers, the fresh coffee is very popular because they
concern in quality, taste of ground coffee and convenience and comfortable outlet.
One of the most popular ways to enjoy coffee in Thailand is cold or iced. Another
popular signature of coffee in Thailand is that it is made with chicory, cardamom, or
even condensed milk. Coffee is brewed in Thailand in a tall pot with a coffee sock or
coffee filter. You can also use the same method with a teapot, Turkish coffee maker, or
French Press. The bottom line is that the coffee should result in a rich and flavorful
brew that mixes well with sweet condensed milk.
Industry Size
The coffee industry includes 20,000 stores with combined revenue of $11
billion. Approximately 20 million people work in the coffee industry worldwide. The
coffee industry is very concentrated at the top and fragmented at the bottom with the top
50 companies taking up to 70% of the sales. Starbucks lead the way with over 16,680
stores worldwide; and Caribou Coffee a distant second, with nearly 500 corporate
owned stores and over 100 franchised outlets.
Competition
The general coffee industry is well developed and very competitive. A coffee
store operator will face competition not only from other coffee shops but also gas
stations, quick service and fast food restaurants, convenience stores, donut shops and
gourmet food stores. Franchises in the coffee shop industry allow the franchisee to take
25
advantage of a recognized name, a tried and tested system and benefit from the
efficiencies of the franchisor.
It may come as a surprise to many to learn that the most popular beverage
around the world is coffee. Every year coffee drinkers around the world drink and
access in excess 400,000,000,000 cups. Coffee sales statistics provide vital information
for the world economy. When it comes down to all the coffee that is harvested around
the world, only 20% of the harvested beans are classed as being high quality or
premium. There is no shortage of coffee growers as coffee consumption statistics
show throughout the world as more than 45 countries commercially grow the crop. It
certainly is a source of providing employment for many individuals throughout the
world for example in Brazil over 5 million people work within the coffee industry and
the majority of them are working at cultivating and harvesting of over 3 billion coffee
plants.
Out of all the various ways of being able to consume caffeine in the United
States alone 75% of the caffeine consumed comes from coffee. As far back as 1763,
Venice showed their appreciation of coffee by having over 200 coffee shops according
to coffee sales statistics. Coffee consumption statistics show there is no shortage in
Italy of places to find a good coffee brew as they currently have over 200,000 coffee
bars and more opening every day. Everyone knows that champagne is the ultimate
beverage to France but equal to this is espresso to Italy. Italy considers coffee and
espresso one and the same. According to the USDA by the end of December 2008 the
forecast was for 2008 and nine that there would probably be about 138.4 million bags of
world coffee production. This may seem like a lot but it's down by 2.2 million bags
compared to June 2008’s projection of 140.6 million bags For the last quarter of 2008
coffee sales statistics show the exports of coffee bags was down compared to the third
quarter was a 1.36 decrease but compared with a year ago for the same quarter the
26
exports were up by 4.9% US imports the last quarter of 2008 there was a decrease in
imports by 6% for the United States and for pricing the average price per pound of
roasting ground coffee went down by 10% by $.10 Naturally, coffee statistics vary
greatly from country to country some being more avid consumers than others. It doesn’t
matter which country sells the most or the least it’s important to the economy to know
where the world market stands regarding this commodity when it provides such a source
of livelihood and employment in every coffee growing country.
Coffee is consumed the most in the US. And Japan is ranked in 3rd place in
coffee consumption. Finland has the highest consumption rate per person followed by
Norlway and North American countries.In terms of individual coffee consumption,
Japan is ranked in 10th place.
Even in the recent economic climates, the coffee industry has proved to be very
resilient. This is seen in the National Coffee Association of U.S.A.’s 2009 National
Coffee Drinking Trends market-research survey. While many business are noting a
downturn in consumers, daily consumption of coffee beverages among consumers
remained consistent in 2009 with 54% of the overall American adult population
partaking. This information tells us that even through difficult economic times; people
of all ages are still consuming coffee.
28
Data from the Coffee Research Organization and the National Small Business
Development Support Center Clearinghouse show that coffee is the most popular
beverage in the world, with more than 400 billion cups consumed per day. Americans
alone, consume 400 million cups of coffee per day making the United States the leading
consumer of coffee in the world. That is translated into four and a half thousand cups of
coffee per second. Below is a graph for the consumption of coffee in America for the
years 2006, 2007 and 2008:
Asian Consumption
Coffee consumption has not yet attained its saturation level. In the 70's, not even
50% of households consumed coffee, imbibing tea as their main beverage. Now, 60% of
the Japanese households consume coffee; 40% consume tea. The potential for growth is
still there. Japan has become a major consumer of coffee and it seems this is one healthy
market for growth. While canned coffee first appeared on the shelves, originated by
Ueshima Coffee Corp.; almost every country worldwide is introducing iced and canned
coffees in the hopes that they may also enjoy Japan's success. I think that we are all well
aware that for the American culture, coffee drinking is key. Many of the coffee drinking
history and authenticity that we know today actually came from Europe, and just
recently, Asia is actually catching on to all of the trends. Right now currently,
Indonesia, China, and the Philippines are actually some of the biggest coffee drinkers in
all of Asia. In China, for example, roughly 1/3 of all adults are drinking coffee in corner
coffeehouses like Starbucks. The motivation behind the Asian coffee culture movement
is similar to that of the US in that most individuals are looking to spend time drinking
coffee as a social interaction with their groups of friends.
It has been seen in the past that most Asian countries lean toward tea drinking
versus coffee drinking, but Starbucks seems to be on the rise overseas and is drawing in
more and more Asians who are turning toward the love of coffee. When you compare
30
tastes and flavor profiles, Asians are actually drinking a lighter roast than their Western
counterparts and liking a sweeter taste. Cappuccinos are seen being ordered at least a
third of the time in Hong Kong, with a Mocha being the runner up in second place. As a
third option, most coffee drinkers in Asia are drinking regular coffee. It seems that most
Asian coffee drinkers are actually partial to corporate chains like Starbucks than the
other local coffee houses that have sprung up. Two of the most popular brands in the
Philippines to date are Starbucks and Seattle's Best, and some of this is speculated in the
fact that many Asians see celebrities in the media drinking from Starbucks. I'm sure
Starbucks is saying thank you!
One of the main reasons that Asian coffee culture has sprung up so quickly is
because many Asians were actually bringing back these ideas from visits to Europe and
America. It is obvious that America and Europe both have extremely strong coffee
cultures, and Asia is coming in a close second in having more and more coffee drinkers.
Currently, there are still many Asians who are making instant coffee, though there are
even more coffee houses and cafés that are beginning to open their doors for business
all over the region. I am happy to note that the love and taste that we all have for coffee
is something that is catching on worldwide as a notable fact and point of reference.
Coffee drinking is more than just using the caffeine to stay awake, but it is something
that is specific to each cultural taste and flavor profile, and it is amazing to learn how it
develops within each country. I give props to Asia for taking the time to implement
coffee styles and habits into their own countries, rivaling that of the American way.
Coffee drinking is something that can be celebrated and shared due to the fact it has a
rich and antiquated history that we can all learn from and share worldwide.
Coffee is one of the world's more important primary commodities. The coffee
producing belt includes approximately 70 countries worldwide and employs
approximately 20 million people. Information from the United States Department of
Agriculture shows us that the world coffee production in 2008/2009 is forecast at a
31
The Brazil Coffee House, for example, imports only select naturally processed
green coffee exclusively from growers in the Cerrado and South Minas region of Brazil.
The Brazil Coffee House franchises the option of owning and operating one of these
unique plantation style coffee stores.
Vietnam and Indonesia (12.6% and 4.59% of global production respectively) are
the two largest coffee producers in ASEAN, followed by Thailand and the Philippines
(0.65% and 0.55%). Malaysia, Cambodia, Laos and Myanmar also produce unique
32
Current buzz words in the coffee industry are ‘organic’, ‘shade grown’,
‘sustainable and fair-trade certified’. More and more Americans care about the
conditions of the people who produce the products that they buy and the dangers to the
environment. According to the Organic Trade association, the organic coffee market is
now a billion dollar industry.
To accommodate this trend, more coffee franchises have licensing agreements
with Transfair to offer Fair Trade Certified coffee. Kelly’s Coffee and Fudge Factory
Franchises offer a range of organic and fair-trade coffees and specialty espresso based
drinks. Seattle's Best Coffee offers a premium assortment of Fair Trade Certified and
certified organic coffees. They support Fair Trade, organic and responsible practices.
Dazbog Coffee Franchising LLC also offers a line Certified Organic Dazbog Coffee.
Dazbog Coffee Franchising LLC is ranked at 256 in the top 500 franchises for 2008 in
the USA by entrepreneur magazine. That is up from a ranking of 349 for the year
before.
“Twenty years ago I never would have thought the industry would get this big”
says Rick Kowalski, vice president of operations for “It’s a Grind Coffee House” (IAG
Coffee Franchise, LLC). “The direction we’re going in now is [toward] more organic
coffees as well as coffees where we develop a direct relationship with the growers. We
get involved with their ability to improve their quality of life. We’re helping them
develop clean water sources. That obviously helps everybody and the environment
included” IAG Coffee Franchise, LLC was recently ranked in the top 500 franchises in
the USA by Entrepreneur magazine for 2008. They offer franchises for the low initial
investment fee of $25,000 - $36,000.
Starbucks, the world’s biggest chain of coffee stores, is one of the largest buyers
of Fair Trade Certified coffee. In 2009, they plan to double their purchases of Fair
Trade Certified coffee to 40 million pounds, making the company the largest purchaser
33
of Fair Trade Certified coffee in the world. All of the espresso-based coffee used in its
European stores is Fair trade certified.
Starbucks does not offer franchises. In North America, the majority of stores are
Company-operated. As an exception, Starbucks may enter into licensing arrangements
with companies who provide access to real estate which would otherwise be unavailable
such as airport locations, national grocery chains, college and university campuses and
hospitals. Seattle's Best Coffee is a subsidiary of Starbucks and offers franchises to
operate a Seattle’s Best Coffee Café and/or Kiosk. The estimated initial investment for a
single unit franchise is between $164,500 and $317,000. As of May 2008 Seattle’s Best
Coffee has more than 540 cafes in the U.S. and 86 Seattle’s Best Coffee Express
34
espresso bars. In addition, Seattle’s Best Coffee is available across the U.S. in
supermarkets and at more than 3,900 foodservice locations, such as college campuses,
restaurants, hotels and cruise lines.
During the economic depression and fragile political stability of 2009, all
businesses suffered setbacks and many jobs were lost, even the coffee business. The
business growth was quite small when compared to the past 5 years. This could clearly
be seen from the smaller number of orders from hotels, restaurants, and food courts,
plus the regular customers were more conscious about their spending and most of them
started to reduce their coffee consumption. The businesses had to adjust their marketing
strategies to handle the situation and attract more customers. The strategies like
membership and promotions make the customers feel that their cup of coffee are more
valuable, thus, more enjoyable. After all, what they might need is a cup of excellent
coffee as the reward during the hard time. Even though there are some setbacks in Thai
coffee business, it is one of the businesses that are moving forward. It helps people taste
more variety of coffee and makes people realize about what they choose to drink. The
western style coffee like Espresso, Latte, Cappuccino, and coffee art is gaining its
popularity in Thailand, and cafés are being a part of city life as new café pops up every
day. These cafés become the third home, other than the offi ce and condo, for city
people, and push the coffee business this far, so it is interesting to see where this high
potential business will go on.
35
60000
50000
40000
Tons
30000
20000 Produce
0
47/48 48/49 49/50 50/51 51/52
Year
Source: Office of Agricultural Economics and Entrepeneurs
From the graph, we can see that there is an increase in demand from the
consumers. On the other hand, the businesses do not have the long term development to
produce enough coffee, so Thailand has to import coffee from oversea to match coffee
demand.
A factor that may cause this lack in supply may be from the high coffee produce
that flooded the market and caused the drop in coffee price a couple of years ago. This
price drop infl uenced the farmers to turn to other plants, and the government policy to
reduced coffee plantation in southern Thailand to produce more profi table plantssuch as
palm and rubber tree.
Importing high volume of coffee from oversea slows the development of Thai
coffee and makes Thai coffee more expensive. However, we still have to import the
oversea coffee because we have to consider the domestic demands as the main factor.
Mr. Weera Somboonwejchakarn, the president of VPP Progressive Ltd., and the
owner of Café D’Oro said, “There is a small limitation in Thai coffee production that
36
makes the world market not interested in it. We used to export 5% of total world coffee
10 years ago, but the produce in southern Thailand dropped, so we have to import
because the domestic supply doesn’t suffi ce the demand. And I don’t think there is
enough motivation for Thai coffee to compete in the world market.”
Rather than the production problem, Thai coffee also faces with the challenge in
the development of manufacturing processes. The quality of the coffee itself is good but
it lacks the production control system for planting the coffee trees, keeping the product
quality standard (GAT), pushing organic farming, to adding value to the product.
Therefore, it is important to make farmers realize that produce standard is more
important than the sale made.
AFTA
ASEAN Free Trade Area (AFTA) is aimed to attract foreign investment and
increase the potential of ASEAN products in world market by eliminating the taxes
between members. This can reduce the development gap and increases trades between
countries. However, the produces that are sensitive to tax reduction will be
exempted until 2010, and then the tax will be set to 0-5%.
Thai government is expected to reduce the coffee import tax to 5% and this will
widely affect Thai coffee market. A business can choose to introduce cheap, low quality
coffee to the market, or it can improve its product to premium grade by importing
quality raw ingredients to blend in and increase its price. Mr. Autsawin Kairasmi, CEO
of Banrie Coffee, said “The free trade will open up many opportunities for businesses.
They can choose to keep the same price and increase the value in other aspects such as
improving the services and decorate the café to create more relaxing atmosphere. In
addition, they can introduce new cheaper products like light, medium, and fancy
coffee”.
“The competition in coffee market is quite high. We need to develop and adjust
our products all the time to satisfy the customers as much as we can, including product
variety, and control the cost without losing the quality while maintaining the same
price”, Ms. Parichart Greenwood, marketing manager of GFA Cooperation (Thailand)
that own Coffee World Restaurant and Café franchise, also share the similar opinion.
37
“In the coffee wise developed countries, they will focus on the qualityof coffee and
import many different coffee beans to blend. They can create the best coffee by using the
best ingredients without having to worry about import tax. In contrast, we still have
import tax to worry about. The cost of importing green beans would decrease if the free
trade area is in place, and we can improve our coffee in an acceptable price to give the
customers the best” Mr. Witoon Sila-On, managing director of Bluecup coffee, added.
However, it would be diffi cult for the business to compete in the price war,
because AFTA will bring in more competition while Thai labour and coffee cost are
still high when comparing to the neighbours. The AFTA will bring in cheaper coffee
with the same quality, and would push Thai coffee to evolve from community grade to
premium grade coffee.
Mr. Meechai Amornpattanakul, chairman of Thai Barista Association and K2
executive said, "The farmers will be directly affected if they don’t improve the produce
quality. This improvement can be carried out easier if the farmers change their point of
view and discipline, because Thailand already have better public utility structure and
supporting institutes such as the Department of Agriculture and The Doi Tung Royal
Project".
AFTA also infl uence foreign coffee chain to invest because the raw ingredient
import cost is lower. The advantages in quality and international brand awareness will
be an excellent factor to attract foreign and domestic customers. This is another factor to
stress out the importance in improving the quality of Thai coffee to get the consumer’s
trust.
On the other hand, the consumers have to adapt themselves to the changes as
well. The consumers must take interest in where the coffee bean comes from, not just
worry about the caffeine level, because AFTA will allow low quality foreign coffee to
come in. These coffees may be kept wrongly and may contain OTA (Ochratoxin A)
which can cause cancer if consume.
38
The government should introduce clear policy to protect the consumers, and this
policy must focus on the safety of the consumers from OTA. For example, set the
limitation of defected coffee beans and contamination percentage in the imported
coffee. An agency should be introduced to inspect the low quality coffee from other
countries. This type of agency will set up the standards for businesses to comply with
and push our development to match with the world standard.
Moreover, the government should support and set up coffee farmer association
to keep the coffee standard, induce cooperation between farmers, and build up the
negotiation power directly to the farmers. “If the government has the fund to set up the
local coffee farmer association and help with the logistic, the farmers will be more effi
cient and create better produces. For example, the government can help with the
produce transportation and fuel cost in the northern mountainous areas where a lot of
coffee is grown. These areas are hard to access and have high transportation cost
which the farmers can’t afford, and sometimes the traders push the price down too far.
But with the government help, the farmers can transport their produces to the roasting
facility and increase their income”
Mr. Prawit Jitnarapong, Beantrepreneur and Black Canyon CEO suggested. Ms.
Sumolpin Chotikapookana, marketing and communication director of Starbucks Coffee
(Thailand) also said, “It is vital to see the importance in the farmers and the coffee
farmer community in order to get enough quality produces to suffi ce the consumer’s
demand. Starbucks has the project to support the northern Thai Arabica coffee farmers
under the name Muan Jaii Blend. We buy the produce at the higher than market price,
and some income from Muan Jaii coffee will go back to the farmers” Rather than rolling
out the policy to protect the consumers and supporting the manufacturing structure.
“The government units like Doi Kum and Doi Tung Royal Projects should represent
Thai coffee in a competition to get the foreign interest in our coffee, because
Thai coffees in world stage are, currently, private brands only”, Mr.
Autsawin added. Even though we can’t compete in the world market in the sense of
product quantity because there is not much suitable terrain for coffee plantation, but it is
39
still important to develop Thai coffee brand. We can push our coffee beans to compete
in the quality coffee market, especially the Arabica coffee beans grown in the northern
part of Thailand.
Mr. Meechai also emphasized that "This is the point that must be changed. The
government must not focus on the quantity of the produce, but focus on the profi t that
will go to the farmers instead. Farmers can produce large quantity of coffee beans and
still make a loss, but farmers can produce fewer coffee beans and make a profi t if they
focus on the quality. When we think about quality, we won’t take quantity into much
consideration, and the price will increase together with the quality"
The government should not consider coffee to be just a normal agricultural
produce because coffee has special characteristics. It blendsin with people lifestyle and
we can use the origin of the coffee to promote marketing like wine, which the origin and
the manufacturedyear are the factors that consumers pay special attention to. This is
becausethe coffee that grows in different area and time will offer its own unique
characteristics, unlike fruits where we can only say whichcountry it is from. Hence,
Thai coffee will have its own uniqueness to offer to the market and develop the lasting
coffee industry here if the government is ready to support.
In conclusion, the government needs to have a clear policy to lead the coffee
business, and every department such as the Ministry of Agriculture, Ministry of
Commerce, and Ministry of Industry must work together. The cooperation would ensure
the effi ciency of all processes to develop Thai coffee and the private businesses won’t
have to compete in the market by themselves like they are nowadays.
Despite all the setbacks and challenges, most of the entrepreneur believes that
this year the coffee business will grow more than last year. There are some indications
that the worst of the economic crisis had passed. Some companies in the auto industry
and property industry are bouncing back and paid out bonuses at the end of last year,
40
Mr. Witoon said “Most of the cafés use roasted ground coffee beans as they are,
obviously, better than instant coffee, so it is a growing market. It is up to Thai people
how much they are willing to spend on a cup of coffee. There are many grades of coffee
to choose from and the consumers are starting to improve their knowledge about coffee
and separate the taste”
There will be many factors that affect Thai coffee market in 2010 so we need to
adjust to these changes, “We can focus on the superior freshness over imported coffee
because imported coffee needs around 45 days to be shipped here and have the “best
before” age of 2 years. In contrast, Thai coffee is transported straight from northern
Thailand, measure the m oistness, and roast. The whole process takes about 25 days at
Banrie Coffee, so the difference in freshness is a lot and fresher coffee means more
aroma and better taste” , Mr. Autsawin explained.
In addition to the freshness advantage, Thai cafés can adjust to consumer’s taste
and trend quicker than the foreign coffee chains which need to refer to the policy from
oversea headquarter. For example, we can observe the changes in consumer behavior or
we can decorate the café to suit the target customers. If we use these advantages
together with market strategies, it would not be diffi cult for Thai market to compete in
the world stage. Mr. Meechai commented that, “Thai coffee has the potential to present
itself as quality coffee to the world. We only need to add marketing and create the
brand, because Thailand is well-known for its services. We can compete in the world
with our smiles and fresh ingredients, or sell Thai culture together with the coffee”
Ms. Sumolpin expressed Starbucks’ view as, “Thai coffee market is very competitive
and it is important for the customers to have faith in our brand. The customers now are
more careful and smarter at getting the most for their money. Although we have the
advantage on brand awareness, but if we don’t provide good product and service for
your money, then we fail to respond to your need”
42
These are some anticipations from important figures in Thai coffee business, and
only time can tell if the business can go in the expected direction. Nevertheless, Thai
coffee had been growing all these years and the Coffee T&I team thinks that there are
many opportunities for Thai coffee to develop and Thai cafés to grow. We can see this
in big cities where the existing cafés expanded and new cafés are opening. This is a
clear sign telling us that Thai coffee market is moving forward and will not stop
growing.
(Source: Coffee tea & I, Bimonthly Magazine Vol. 14 January – February 2010)
Latte Art
Latte art by definition is “milk art.” When it was first introduced, the idea
behind it was to create the ultimate experience for the consumer. Rich espresso, sweet
milk, finished off with a rosette or heart. The design intrigued the consumer while the
taste kept them coming back day after day. But today many baristas and cafes are only
getting half the picture.
If you look around the industry today, you’ll notice a disturbing trend: latte art is
being cheapened by good latte art. In fact, the baristas try to improve themselves and try
new things because customers love seeing the growth in their favorite barista and
watching the transformation. Instead, latte art is being cheapened by baristas putting a
heart on a drink that has an over extracted shot, or milk that is too hot.
43
100
90
80
70
60
50
40
30
20
10
0
Thailand Japan America
It shows that Thai people drink coffee more than 10 years ago that they
consumed only 50 cups per capita for a year.
Behavioral Consumer
From the research found that Thai coffee consumption is increased for each
year, considering from the sale increasing of instant coffee canned. There are 3 mains
for consumption:
3. Thirsty (15%)
45
The first, coffee shop is foreign franchises such as Starbucks Coffee which is
the biggest foreign franchise in Thailand, Suzuki Coffee, Gloria fasdf Jean’s Coffee and
Au Bon Pain Coffee.
According to a 2007 census, Thailand had 132 Starbuck cafes, with Bangkok
having the lion’s share at 72. While Black Canyon is major competitor to Starbucks in
Thailand; In Thailand, the service was very friendly but most of the Starbuck employees
had limited facility with English. They offered free WIFI and the customers can get
discount rate for 10 baht when they bring their own Starbuck glasses to buy coffee at
the stores.
The clientele at a typical Starbucks café was a mix of local business executives
and white-collar workers, the young University crowd with deep pockets along with
tourists and expats. For Thais, having a Cappuccino, an Iced Caramel Macchiato or any
one those fancy designer coffee drinks represents a real splurge as the prices are almost
the same as in the United States. Please consider that the standard of living and the
average salary is considerably higher in the USA, and the cost of one large cappuccino
($3.00 -3.40USD) will buy you a decent dinner at a local restaurant in Bangkok.
Apparently, having coffee at Starbucks confers a measure of status with the locals. Yes,
Starbucks is huge in Thailand - such is the way of the World.
Espresso
This is the very essence of coffee, in its most concentrated form. Starbucks®
espresso is rich and wonderfully caramel-like.
Caffè Americano
Despite the name, this is actually a European way to enjoy coffee: espresso with
hot water.
Caffè Latte
The traditional classic – steamed milk and espresso, lightly topped with foam. Try
it with a syrup of your choice (like vanilla, caramel or almond) for a special treat.
Cappuccino
Honoring a tradition that goes back generations, our skilled baristas carefully
pour hand-foamed milk over espresso.
Caffè Mocha
Delicious Starbucks® mocha chocolate, espresso, steamed milk and whipped
cream. No cold or sad day can resist its power.
Caramel Macchiato
A Starbucks original. Foamed milk marked with espresso and vanilla, then
topped with a distinctive caramel pattern. Sweet, buttery and intense.
Brewed Coffee
Every day, we serve one of our exquisite whole bean selections as fresh, hot
coffee. Signature blends, exotic country varieties, and decaf too.
Starbucks Card
A Starbucks store in your wallet! The Starbucks Card offers you the
convenience of treating yourself – or someone else – to your favorite Starbucks
beverages, food or merchandise, with one quick and easy payment method. It's the
perfect gift for holidays, birthdays, or just to say thanks. Starbucks Card is welcome in
so many places. Definitely all Starbucks coffee branches in Thailand. And the card is
48
also welcome in Starbucks Hong Kong, UK, Australia, Greece, Hawaii and more than
5,500 stores in North America and Canada.
(Source:http://www.aubonpainthailand.com, 2010)
The Second, foreign investors who built new brand coffee shop in Thailand are
Coffee world, Coffee Beans and etc. Coffee World is famous in this type of industry
and it is the third rank of favorite coffee shop that Thai customers want to drink coffee
in their store nowadays it has 60 stores in Thailand; in 1997 British investor was
launched Coffee World to offer consumer in Thailand which the first branch at ABAC
University. The target market is the students who have high income to the products,
then it expanded to Silom Road to serve the businessmen and officers and expanding to
Central, BigC and Lotus. Coffee World operates a variety of outlets, ranging from large
outlets of up to 160sqm to small kiosks of 25sqm.The outlets are designed to give the
look and feel of luxurious and comfortable living rooms. Coffee World constantly
innovates by frequently introducing new food and beverage creations. They use both
Thai Coffee and import coffee and the prices are between 45 – 65 Baht.
51
(Source:http://coffeeworld.com, 2010)
52
(Source:http://coffeebean.com, 2010 )
The Third, coffee shops own by Thai entrepreneurs or Thai brand name and
they also expand to the franchise such as Black Canyon Coffee, 94 Coffee, The Coffee
Maker, Wawee Coffee, Doitung Coffee, Doi Chang Coffee and Etc. There are small
entrepreneurs to big entrepreneurs.
The most successful in this type is Black Can You Coffee that is the largest and
most well known operator of franchised coffee houses in Thailand. The management
and every employee have as their goal to continually develop and improve the Black
Canyon Coffee brand. Their target markets are officer and family because they try to be
distinctive from competitors by serving foods.
Black Canyon now has more than 190 branches all around Thailand. Black
Canyon also operates kiosks under the "Black Canyon X'press" name in several stations
of Bangkok's elevated commuter train system (BTS Skytrain). Each year, Black Canyon
serves more than one million cups of coffee to Thais and foreigners visiting Thailand,
who appreciate the flavor and aroma of real coffee, and keep coming back for more.
53
(Source: www.94coffee.com,2010)
The forth that the coffee shop was launched by Thai entrepreneurs and they
cooperate with gas station in Thailand which they have contracts between coffee store
entrepreneurs and gas stations company such as Baan Rai Coffee and Café Amezon
which have contracts with PTT or Public Company Limited; The Group's principal
activity is the operation of petroleum business and it is big and well known company in
Thailand. Ban Rai coffee store contracted with PTT for many years and there are 70
branches with gas station; many people feel familiar when they visit PTT gas station but
now their businesses are terminated coffee store’s contract with PTT and political
problem with economics crisis so they close all coffee stores. Nowadays PTT opens
Café Amazon Premium which launch by PTT that they sell franchise for pump station
dealers and other people who want to do the coffee stores business.
Actually there are many coffee stores in Phuket but they are in downtown or
other place of Phuket but OKey Coffee will open at Karon Beach that the beach has low
competiotors of premium coffee store so this business is very interesting.
(Source: Survey by asking local people and restaurant in Karon beach by
Mr.Pattarapong; researcher, 17 Apr 2010)
(Source: Coffee tea & I, Bimonthly Magazine Vol. 13 November – December 2009)
There are main 3 types of products that almost of coffee stores are provided.
Beverages:
Hot Drinks
- Mocca is a variant of a caffè latte. Like a latte, it is typically one third espresso
and two thirds steamed milk, but a portion of chocolate is added.
- Caffee Latte is a coffee drink made with espresso and steamed milk.
Cold Drinks
Food:
Some of coffee store provide foods which are international and national foods.
Service:
Most of premium coffee stores provide Wi-Fi to customers to play internets.
2.4 Vision
To be, and be recognized as, the best premium coffee shop to enjoy and relax
near the beach and expanding a new branch at other beach in Phuket within 3 years, as
well as serve variety of good quality coffee cups and service mind.
.
63
2.5 Mission
OKey Coffee provides the best place to enjoy and relax on holiday or free time
for our customer that the customers can impress with variety of premium coffee cup and
other products near the beach in comfortable environment which we will serve with
service mind. We try to provide the happy time to our customers with good quality of
products because we select only good quality of raw materials and we also treat
employees’ welfare seriously, provide training and reward them to satisfying for good
performance because we seek for customer satisfaction and loyalty of our products
which can advertise with “Word of Mouth”, enough to keep the company financially
healthy for the short term. We believe in sustainability of coffee brewing industry and
adopt fair trade policy as a key to drive our business forward so we can expand a new
OKey Coffee branch to serve customers at other beach in Phuket.
2.6 Strategies
Premium Coffee Store is the business that it needs to develop products and
maintenance standard of services continuously so the premium coffee store business
should have good management systems which are human resource management, sale
and service systems, stock system and efficiency marketing otherwise it can affect to
high cost of production. Most of successful entrepreneur of this business use the
Information Technology System to control in each departments.
“OKey Coffee” is the new business that will launch at Karon beach in Phuket,
64
it is also new entry in the market so we need to plan the good strategies for our business.
According to vision of our company is “To be, and be recognized as, the best premium
coffee shop to enjoy and relax near the beach and expanding a new branch at other
beach in Phuket within 5 years, as well as serve variety of good quality coffee cups and
service mind”, our business need to growth by increasing sales and profits, especially
focus to create growth within the organization so we adopt growth strategy for our
business which is horizontal concentric growth strategy by internal development
because we need to expand our business to the new market in Phuket with in 3 years.
are many tourists there, especially foreign tourists. There are few competitors in Karon
because it has few premium coffee stores so it is good opportunity for our business.
OKey Coffee aim to open the best premium coffee store near the beach in Phuket and
we want to expand a new branch into the new market within 3 years so we need to focus
on our products and service, especially our place is very important because it is our
unique and it can attractive our target group. We focus only the place that near the
beach which the customers can impress our products with beautiful view of blue beach,
fresh atmosphere and good decoration. We also provide the different of products or
variety of menus for our customers that they are different from competitors and
providing the high quality of services which we concern with service mind so our
customers satisfy and brand loyalty with our products and services; customer
satisfaction can create word of mouth so we can keep forward for new market.
The functional level strategy will give the detail of the strategy for each function
of OKey Coffee that represent in the function of marketing, production and service,
organization, management information system, and financial and accounting.
Marketing strategy
- Create branding, logo and slogan to increase brand image, and making customer
to remember easily
66
- Focused on products and services that are variety and high quality or proving
best value of products and services. The clean and save is also important.
- Create unique packages for attractive the customers
- Create new menus for monthly, high season or peak season
- Free Wi - Fi
Price strategy
Place strategy
- Locating on convenient place which near the beach and crowded of people so it
can be more attractive customer than competitor.
Promotion strategy
Financial strategy
- Loan money from investor in Dubai 100% and paying high interest rate follow
The Thai Civil and Commercial Law, this is the cost of turnover for business
- Recruit expert financial personal for financial statements to systematic, clear,
and accurate in every month and improving the accounting system and finance
in standard form
- Financial evaluate systematic and controlling within organization
- Discipline with financial, savings and non credits
- Focus on training employees for high quality of service, such as there is training
teamwork, customer service skill, persuasion talking, action and manners, and
good personality service to customer, training about ethic and etc.
- Training employees to remember the customers and their menus
- Divide work, and assign appropriate position to employee
- Tracking task and evaluate performance of employee
- Motivation employees by rewards or bonuses
- Providing Social Welfare for employees
68
Chapter 3
Marketing
Feasibility Study
69
Political Factors
Bath Area
204 Phuket
181 Pranakornsriayuthaya
180 Chachengsao
178 Rayong
171 Chiangmai
169 Kanchanaburi
168 Petchaburi
164 Prachaubkirikhan
162 Trang
161 songkla
154 Mahasaracram
72
Poonsri concluded that the last seminar about this had indicated that 0% tax
agreements made between ASEAN members including Thailand, Malaysia, Indonesia,
Philippines, Brunei and Singapore, would be advantageous for trading between
Thailand and ASEAN countries. It’s estimated that there could be approximately 25%
growth in business in this region.
In addition, there was a commitment that the member countries must let ASEAN
investors hold 70% of stock in hospitality business by 2015 and adjust the laws
hindering investors to do business in such countries, especially by letting foreigners
hold 51% of shares in all hospitality businesses.
Therefore DTN has been holding seminars around Thailand to make people
understand and adjust their way of doing business, following the world economic
situation and listen to their opinions before integrating it into Thailand’s economic
strategy.
75
AFTA
ASEAN Free Trade Area (AFTA) is aimed to attract foreign investment and
increase the potential of ASEAN products in world market by eliminating the taxes
between members. This can reduce the development gap and increases trades between
countries. However, the produces that are sensitive to tax reduction will be exempted
until 2010, and then the tax will be set to 0-5%.
Thai government is expected to reduce the coffee import tax to 5% and this will
widely affect Thai coffee market. A business can choose to introduce cheap, low quality
coffee to the market, or it can improve its product to premium grade by importing
quality raw ingredients to blend in and increase its price. Mr. Autsawin Kairasmi, CEO
of Banrie Coffee, said “The free trade will open up many opportunities for businesses.
They can choose to keep the same price and increase the value in other aspects such as
improving the services and decorate the café to create more relaxing atmosphere. In
addition, they can introduce new cheaper products like light, medium, and fancy
coffee”.
“The competition in coffee market is quite high. We need to develop and adjust
our products all the time to satisfy the customers as much as we can, including product
variety, and control the cost without losing the quality while maintaining the same
price”, Ms. Parichart Greenwood, marketing manager of GFA Cooperation (Thailand)
that own Coffee World Restaurant and Café franchise, also share the similar opinion.
“In the coffee wise developed countries, they will focus on the qualityof coffee and
import many different coffee beans to blend. They can create the best coffee by using the
best ingredients without having to worry about import tax. In contrast, we still have
import tax to worry about. The cost of importing green beans would decrease if the free
trade area is in place, and we can improve our coffee in an acceptable price to give the
customers the best” Mr. Witoon Sila-On, managing director of Bluecup coffee, added.
However, it would be difficult for the business to compete in the price war, because
AFTA will bring in more competition while Thai labour and coffee cost are still high
when comparing to the neighbours. The AFTA will bring in cheaper coffee with the
76
same quality, and would push Thai coffee to evolve from community grade to premium
grade coffee.
Mr. Meechai Amornpattanakul, chairman of Thai Barista Association and K2
executive said, "The farmers will be directly affected if they don’t improve the produce
quality. This improvement can be carried out easier if the farmers change their point of
view and discipline, because Thailand already have better public utility structure and
supporting institutes such as the Department of Agriculture and The Doi Tung Royal
Project".
AFTA also influence foreign coffee chain to invest because the raw ingredient
import cost is lower. The advantages in quality and international brand awareness will
be an excellent factor to attract foreign and domestic customers. This is another factor to
stress out the importance in improving the quality of Thai coffee to get the consumer’s
trust.
On the other hand, the consumers have to adapt themselves to the changes as
well. The consumers must take interest in where the coffee bean comes from, not just
worry about the caffeine level, because AFTA will allow low quality foreign coffee to
come in. These coffees may be kept wrongly and may contain OTA (Ochratoxin A)
which can cause cancer if consume.
The government should introduce clear policy to protect the consumers, and this
policy must focus on the safety of the consumers from OTA. For example, set the
limitation of defected coffee beans and contamination percentage in the imported
coffee. An agency should be introduced to inspect the low quality coffee from other
countries. This type of agency will set up the standards for businesses to comply with
and push our development to match with the world standard.
Moreover, the government should support and set up coffee farmer association
to keep the coffee standard, induce cooperation between farmers, and build up the
negotiation power directly to the farmers. “If the government has the fund to set up the
local coffee farmer association and help with the logistic, the farmers will be more effi
77
cient and create better produces. For example, the government can help with the
produce transportation and fuel cost in the northern mountainous areas where a lot of
coffee is grown. These areas are hard to access and have high transportation cost
which the farmers can’t afford, and sometimes the traders push the price down too far.
But with the government help, the farmers can transport their produces to the roasting
facility and increase their income”
Mr. Prawit Jitnarapong, Beantrepreneur and Black Canyon CEO suggested. Ms.
Sumolpin Chotikapookana, marketing and communication director of Starbucks Coffee
(Thailand) also said, “It is vital to see the importance in the farmers and the coffee
farmer community in order to get enough quality produces to suffi ce the consumer’s
demand. Starbucks has the project to support the northern Thai Arabica coffee farmers
under the name Muan Jaii Blend. We buy the produce at the higher than market price,
and some income from Muan Jaii coffee will go back to the farmers” Rather than rolling
out the policy to protect the consumers and supporting the manufacturing structure.
“The government units like Doi Kum and Doi Tung Royal Projects should represent
Thai coffee in a competition to get the foreign interest in our coffee, because
Thai coffees in world stage are, currently, private brands only”, Mr.
Autsawin added. Even though we can’t compete in the world market in the sense of
product quantity because there is not much suitable terrain for coffee plantation, but it is
still important to develop Thai coffee brand. We can push our coffee beans to compete
in the quality coffee market, especially the Arabica coffee beans grown in the northern
part of Thailand.
Mr. Meechai also emphasized that "This is the point that must be changed. The
government must not focus on the quantity of the produce, but focus on the profi t that
will go to the farmers instead. Farmers can produce large quantity of coffee beans and
still make a loss, but farmers can produce fewer coffee beans and make a profi t if they
focus on the quality. When we think about quality, we won’t take quantity into much
consideration, and the price will increase together with the quality"
The government should not consider coffee to be just a normal agricultural
produce because coffee has special characteristics. It blendsin with people lifestyle and
we can use the origin of the coffee to promote marketing like wine, which the origin and
the manufacturedyear are the factors that consumers pay special attention to. This is
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becausethe coffee that grows in different area and time will offer its own unique
characteristics, unlike fruits where we can only say whichcountry it is from. Hence,
Thai coffee will have its own uniqueness to offer to the market and develop the lasting
coffee industry here if the government is ready to support.
In conclusion, the government needs to have a clear policy to lead the coffee
business, and every department such as the Ministry of Agriculture, Ministry of
Commerce, and Ministry of Industry must work together. The cooperation would ensure
the effi ciency of all processes to develop Thai coffee and the private businesses won’t
have to compete in the market by themselves like they are nowadays.
(Source: Coffee tea & I, Bimonthly Magazine Vol. 14 January – February 2010)
Economy Factors
Table 3.2: Major Assumptions and Economic Projections of 2009 and 2010
(As of March 2010)
Exogenous Variables
5) Exchange Rate (Baht per U.S. 34.3 33.0 32.5 31.5 – 33.5
dollar)
6) Repurchase Rate (Policy Rate) at 1.25 1.50 1.50 1.25 – 1.75
year-end (percent y-o-y)
7) Fiscal-Year Pubic Expenditure 2.47 2.55 2.59 2.55 – 2.63
(Trillion Baht)
Projections
dollar)
- Percentage of GDP 7.7 3.3 2.4 1.9 – 2.9
8) Headline Inflation (percent y-o-y) -0.9 3.4 4.0 3.5 – 4.5
Core Inflation (percent y-o-y) 0.3 1.5 1.5 1.0 – 2.0
9) Unemployment Rate (percentage of 1.5 1.3 1.3 1.0 – 1.5
total labor force)
1. Economic Growth
The Thai economy in 2010 is forecasted to grow at 4.5 percent per year (or
within the range of 4.0 – 5.0 percent per year), an improvement from December 2009
projection of 3.5 percent per year. The main positive factors attributing to this growth is
from the stellar recovery of major trading partners’ economy, especially those in Asia
which has a better growth potential than others. This leads to the rebound of growth of
export volume of goods and services being projected at 9.7 percent per year (or within
the range of 9.2 – 10.2). Domestic spending, in addition, accelerates especially private
consumption which is expected to grow at 4.3 percent per year (or within the range of
3.8 – 4.8 percent per year). The positive factors of this recovery are higher farm income
following global agricultural price, better household income from overall economic
recovery, and a drop in unemployment rate to its normal level. Private investment in
2010 is expected to speed up from the low base with low policy interest rate. This
would support private investment to grow further at the rate of 8.2 percent per year (or
within the range of 7.7 – 8.7 percent per year). Furthermore, public spending plays an
important role in supporting the Thai economy to unceasingly grow. To be more
specific, public capital expenditure under the “Stronger Thailand 2012” project would
help public investment grow at the increasing rate of 6.8 percent per year (or within the
range of 6.3 – 7.3 percent per year). Public consumption, on the other hand, is expected
to grow at 4.2 percent per year (or within the range of 3.7 – 4.7 percent per year).
Import volume of goods and services is expected to expedite its growth rate to 18.9
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percent per year (or within the range of 18.4 – 19.4 percent per year) with the recovery
of domestic spending and more manufacturing of export goods.
2. Economic Stability
Others
31.27 % Hotel and
Restaurant
38.92%
Construction,
5.15% Wholesaler
and Retailer Logistic and
10.54% Transportatio
n 14.12%
Positive Factors: this factor effect the economic growth of Phuket which is
travel festival because it is the high season, including at beginning period of this month
is New Year Festival so there are more Thai and foreign tourists who visit to celebrate
festival in Phuket. It affect to increase tourist and consumption growth.
Negative Factors: this factor is the threats for economic growth which is the
uncertainty of political and although global economic trend to recovery, we need to
follow up continuously. Oil prices change to increase continuously, result to the
confidence of investors and consumers.
Forecasting to Phuket economic performance in next month will be better
because it is the travel festival, including there is the good news of global economic
situation that it adjusts to be better. In addition there are more governmental
investments and increasing of inflation rate with laying value added taxes so they affect
to economic perspective is better.
Service and Tourism: growth that it considers to tourist number who travel
through Phuket International Airport and its growth is 33.36 percents. Both domestic
and international flights are increased and the tourists who entry to port of entry is also
grown to 48.17 percents because they are travel festival and New Year Festival.
Agriculture: contraction that it considers to the contraction of rubber quantity
at 51.68 percents, when compare with last year in the same period. Because of it has
more rain at this period so the rubber planters can rubber tap decreasingly and the
rubber price is growth at 98.87 continuously, resulting from decreasing of rubber
quantity and including rubber speculation at agricultural future exchange.
Fishery: contraction that it considers to aquatic animal quantity and the
contract value of aquatic animal between 21.24 and 16.75, when compare with last year
at the same period respectively. Because of non local fishing boats are gradual go back
so the number of fishing boat is decreased.
Industry: slow down that it considers to electrical used quantity in factory
which is growth at 12.75 percents, when compare with last year in the same period
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respectively. But considering from number of factory and register cost, it will be slow
down at 0.92 percents respectively.
Private Consumption: growth that it considers from laying value added taxes
increasingly, when compare with last year in the same period at 14.87 percents. In
addition quantity of electrical used from household is adjusted to be better at 12.92
percents and including car and motorcycle registrations adjust to be better respectively.
Investment: growth, considering from cost added of entrepreneurs cost and
value of new cost. Number of entrepreneurs who come to register growth at 45.72,
38.36 and 24.24, when compare with last year in the same period respectively and
entrepreneur cost of close down is also contraction.
Government Expenditure: contraction, expenditure amount of government
fund contract at 44.93, when compare with last year in the same time. Government
Expenditure of investments are contract, although expenditures are growth, there are
few growth when comparing with other.
During the economic depression and fragile political stability of 2009, all businesses
suffered setbacks and many jobs were lost, even the coffee business. The business
growth was quite small when compared to the past 5 years. This could clearly be seen
from the smaller number of orders from hotels, restaurants, and food courts, plus the
regular customers were more conscious about their spending and most of them started to
reduce their coffee consumption. The businesses had to adjust their marketing strategies
to handle the situation and attract more customers. The strategies like membership and
promotions make the customers feel that their cup of coffee are more valuable, thus,
more enjoyable. After all, what they might need is a cup of excellent coffee as the
reward during the hard time. Even though there are some setbacks in Thai coffee
business, it is one of the businesses that are moving forward. It helps people taste
more variety of coffee and makes people realize about what they choose to drink. The
western style coffee like Espresso, Latte, Cappuccino, and coffee art is gaining its
popularity in Thailand, and cafés are being a part of city life as new café pops up every
day. These cafés become the third home, other than the offi ce and condo, for city
people, and push the coffee business this far, so it is interesting to see where this high
potential business will go on.
A factor that may cause this lack in supply may be from the high coffee produce
that flooded the market and caused the drop in coffee price a couple of years ago. This
price drop infl uenced the farmers to turn to other plants, and the government policy to
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reduced coffee plantation in southern Thailand to produce more profi table plantssuch as
palm and rubber tree.
Importing high volume of coffee from oversea slows the development of Thai
coffee and makes Thai coffee more expensive. However, we still have to import the
oversea coffee because we have to consider the domestic demands as the main factor.
Mr. Weera Somboonwejchakarn, the president of VPP Progressive Ltd., and the
owner of Café D’Oro said, “There is a small limitation in Thai coffee production that
makes the world market not interested in it. We used to export 5% of total world coffee
10 years ago, but the produce in southern Thailand dropped, so we have to import
because the domestic supply doesn’t suffi ce the demand. And I don’t think there is
enough motivation for Thai coffee to compete in the world market.”
Rather than the production problem, Thai coffee also faces with the challenge in
the development of manufacturing processes. The quality of the coffee itself is good but
it lacks the production control system for planting the coffee trees, keeping the product
quality standard (GAT), pushing organic farming, to adding value to the product.
Therefore, it is important to make farmers realize that produce standard is more
important than the sale made.
Despite all the setbacks and challenges, most of the entrepreneur believes that
this year the coffee business will grow more than last year. There are some indications
that the worst of the economic crisis had passed. Some companies in the auto industry
and property industry are bouncing back and paid out bonuses at the end of last year,
so the food industry is expected to catch on to the recovery as well. “I believe
that all the opportunities for coffee business to grow are still open. Thailand has good
produce and manufacturing processes, plus our café management is as good as the
foreign coffee chains. The investment from the foreign chains would not scare us. If we
have strong principle, we can keep our customers and lead Thai coffee businesses to
grow”, Mr. Weeradej stated. Ms. Parichart commented that, “The competition this year
is expected to rise with the expansion in some segments of the market like the instant
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coffee and coffee for health conscious consumers. This causes premium coffee business
to concentrate more in marketing, and find new strategies to effectively reach our target
customers and increase the market share”.
This growth expectation influence the coffee chains to plan their expansion and
started the location war, especially in the petrol station where the cost is lower than
shopping mall and the café can open for 24 hours. The petrol stations in focus are the
ones on main roads to reach large number of customers. “The shopping malls are
slowing down their expansion so Black Canyon turns to petrol stations, and now has
more than 40 petrol station cafes. These cafés attract customers who don’t like
shopping malls to come and try new coffee, which is the strategy to give the target
market the easier way to get to our coffee”, Mr. Prawit added. Beside the plan to open
new cafés, many coffee chains plan to expand their target customers to attract the 18-25
years old customers. Previously, the only target customers are the working adults, but
now the business sees the potential in the young adults as their lifestyles involve coffee
every day. For instance, they may want a morning coffee before class, or a cup of coffee
at night to keep them up and study longer. Coffee chain like Bluecup changes its logo
and packages to look more contemporary, while Café D’Oro changes the café
decorations and setup trips and photo activities to get the new target customers
involvement as the strategy for attracting the new customers. The overall of Thai coffee
market in this year seems to develop especially in the premium segment, despite the
large instant coffee segment value which is double the premium market value, but
doesn’t gain much growth. The growth in premium segment would be the result of the
consumer behavior that tends quality coffee and western style coffee, plus factors that
will push Thai coffee to be premium product.
Mr. Witoon said “Most of the cafés use roasted ground coffee beans as they are,
obviously, better than instant coffee, so it is a growing market. It is up to Thai people
how much they are willing to spend on a cup of coffee. There are many grades of coffee
to choose from and the consumers are starting to improve their knowledge about coffee
and separate the taste”
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There will be many factors that affect Thai coffee market in 2010 so we need to
adjust to these changes, “We can focus on the superior freshness over imported coffee
because imported coffee needs around 45 days to be shipped here and have the “best
before” age of 2 years. In contrast, Thai coffee is transported straight from northern
Thailand, measure the m oistness, and roast. The whole process takes about 25 days at
Banrie Coffee, so the difference in freshness is a lot and fresher coffee means more
aroma and better taste” , Mr. Autsawin explained.
In addition to the freshness advantage, Thai cafés can adjust to consumer’s taste
and trend quicker than the foreign coffee chains which need to refer to the policy from
oversea headquarter. For example, we can observe the changes in consumer behavior or
we can decorate the café to suit the target customers. If we use these advantages
together with market strategies, it would not be diffi cult for Thai market to compete in
the world stage. Mr. Meechai commented that, “Thai coffee has the potential to present
itself as quality coffee to the world. We only need to add marketing and create the
brand, because Thailand is well-known for its services. We can compete in the world
with our smiles and fresh ingredients, or sell Thai culture together with the coffee”
Ms. Sumolpin expressed Starbucks’ view as, “Thai coffee market is very competitive
and it is important for the customers to have faith in our brand. The customers now are
more careful and smarter at getting the most for their money. Although we have the
advantage on brand awareness, but if we don’t provide good product and service for
your money, then we fail to respond to your need”
These are some anticipations from important figures in Thai coffee business, and
only time can tell if the business can go in the expected direction. Nevertheless, Thai
coffee had been growing all these years and the Coffee T&I team thinks that there are
many opportunities for Thai coffee to develop and Thai cafés to grow. We can see this
in big cities where the existing cafés expanded and new cafés are opening. This is a
clear sign telling us that Thai coffee market is moving forward and will not stop
growing.
(Source: Coffee tea & I, Bimonthly Magazine Vol. 14 January – February 2010)
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Climate
Roughly on the same latitude as Central America, Phuket’s climate is a lot easier
going than say, Costa Rica’s. The average temperature is 28 degrees Celsius and varies
from 22 degrees to 35 degrees depending on the time of year. One thing you can depend
on, however, is that it’s always humid on this island. From November to April the skies
are generally clear and a fresh northeasterly breeze sweeps through the region, making
yachting, scuba diving and a host of other water sports instantly accessible. From May
until October Phuket is a lot wetter, due to westerly monsoons, but it doesn’t rain all
day every day. For this reason, Phuket’s rainy season can sometimes be a misnomer.
There is a mini-summer in June/July when the island is perhaps at its most idyllic with
quiet beaches and glorious weather for three or more weeks.
Geography
A central mountain range forms the backbone of the island. The highest point is
529 metres. Much of the rest of the island is given over to rubber and pineapple
plantations. The West Coast is studded with truly beautiful beaches from where you can
witness spectacular sunsets whereas prawn farms, mangrove forests and yachting
facilities dominate the East side of the island. If there is one word that has been used to
describe Phuket it is "Verdant". The island positively bursts with green plants, crops,
trees and shrubbery. There is the Khao Phra Taew National Park in the northwest of the
island where wild animals live in their natural habitat and Phuket is no more than two
hours away from some of the most unspoiled jungle in Asia: at Khao Sok National Park.
32 smaller islands - almost all easily accessible by boat - surround Phuket, affording a
rich choice of day trips and scuba/snorkeling sites.
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History
Since early times Phuket has been a melting pot of races and ethnic beliefs. The
early populations were made up of hunters and gatherers. When trade routes opened and
people began to travel more freely the island hosted a multitude of nationalities. Sub
continental Indians, Arabs, Malay and Mokken sea nomads all arrived to make their
cultural mark but with the advent of tin mining in the 18th century the demography of
the island changed radically. Hokkien Chinese migrants from Penang, seeking
employment in the tin industry, arrived in large numbers and subsequently intermarried
with locals, adding a persuasive Chinese hue to the multi ethnic mix on the island. At
this point Phuket Town became the island’s capital and centre of administration,
superseding Thalang. With the recent decline of the tin industry many mines were
abandoned, leaving ugly scars and craters on the landscape. Happily, many of these
eyesores have been converted and assimilated into golf courses and hotel grounds. The
result is quite spectacular and a triumph for local environmentalists. In the early
eighties, tourism replaced tin mining and rubber as the island’s major industry.
For historians, the best place to see architectural evidence of Phuket’s 18th and 19th
century melting pot and financial boom is Phuket Town itself, with its Sino-Portugese
style buildings. Whole streets of this mode of architecture exist downtown and exotic
rubber and tin-financed mansions are to be found ensconced in the rapidly growing
suburbs of this sprawling provincial capital. Phuket Town may not be the prettiest sight
but it’s certainly the place to check out the recent history of this island.
Religion
Culture
Thais are proud of their rich culture, and rightly so. It’s a mixture of easy going
Buddhism with strong roots in familial obligations yet is never imposing to the outsider.
This is one of the reasons why Thailand is so attractive to foreigners. Thais, you’ll soon
notice, are easy going people. One of the central beliefs in Thai culture is the
importance in having fun: Sanuk. No wonder then that Thailand has long been called
"The Land of Smiles." Tellingly, one of the worst comments one could possibly make
about a work mate, a boss or anyone for that matter in Thailand is: "He’s such a serious
person." A smile, therefore, goes a long way in this country.
Thais have different taboos from the west. For example: Visitors should not
touch Thai people’s heads, it being the highest part of the body. Contrariwise the feet,
being the lowest part, are not to be raised above, or pointed at objects or people. Open
anger and extreme emotion is also frowned upon. A favourite Thai expression in times
of stress is: "Jai yen, jai yen." Meaning: "Keep a cool head/heart - don’t lose face by
losing your temper." Elders should always be treated with extreme respect. The wai – a
closed palm greeting should be used when greeting elder people or anyone in a position
of authority. Simply close palms, prayer-like and place them, fingers-upward, under
your chin. A slight bow at the same time will do wonders. Do not wai people of a lower
social bracket than yourself. It will only confuse and muddle things. If a waitress, a
hotel clerk or a child wais to you, simply smile and nod back. Despite the complexity of
correct social behaviour in Thailand the visitor is readily forgiven for his/her gaffes. It’s
all part of that famous Thai hopitality.
1300000 1217303
1200000 1190032
1100000
1000000
900000
800000
700000
600000
500000
400000
300000
200000
100000
0
2008 2009
The number of tourists is the important factors for our business because our
main target group is foreign tourists. In year 2008 the total number of foreign tourists is
1,217,503 and there are 1,190,032 tourists in 2009, we will see the number of tourists is
decreased to 2.26%. While there are 8,389 flights to Phuket in 2008 and there are 8,219
flights in 2009 which the flight in year 2009 is decreased to 2.03%. They do not affect
our business much because the trend of tourism in 2010 is in high level because there
are too many foreign tourists come to visit phuket and the number of reservation for
accommodations are 79.82%.
The number of reservation for accommodations are high because there are many
festivals and event in Phuket for each years which is very interesting.
Phuket is one of the most popular tourist destinations in Thailand. It is also the
largest island in the country. Various festivals and events in Phuket are organized
throughout the year. Some festivals are so popular that they have become tourist
95
attractions in Phuket. The Phuket festivals highlight the multi religious and multi
cultural society of the island. The list below will give you a fair idea about the number
and nature of Phuket festivals and events.
Celebrate New Year's Day of Chinese New, the New Year Chinese which is match on
the 1st of China's first month or the 2nd, 3rd on Lunar, rituals have all 3 days.
• The first day is 29th of Month 12 of Chinese; there are food preparation and
offering it for the next day. Make a spirit offering Pay respect to god.
• Day two is 30th of months 12 of China, there is God offering 2 period, the
morning pay homage to the god, and fatherhood on afternoon. Then will be dining
together in families and giving hongbao to children.
• The third day is the 1st day of 1st month 1 of the Chinese. People will dress a
new set for a fortune to pay homage at their shrine. Today is considered a day trip,
may visit other local relatives. It is no working, no say anything obscene or no any
admonishment or rebuke each other.
To welcome and thanks God that help and protect the human. It begins after
midnight on the 8th 0f March 8 of Chinese, or the starting time on the 9th of the 1st
months. The important thing are 2 sugarcane, both sweet and meat food.
A month, Chinese belief that Hell are considered to permit the wraith come out
to get the fathers of each family's the annual merit which be paying homage on the 15th
of March 7th, The Chinese will has a “PaiPou” or decorated offering wraith and spirit
96
with a dessert, and carved fruits as a animals, also with “Hung Guu” or dessert turtle red
powder made from glutinous rice, with soy shake or made from wheat flour without
nucleus, symbol to long live.
The Po-Tor
The Phuket Chinese Festival will have the ceremony on China's months 7th or
on Thai's months 9 by offering the fathers and Holy Spirit with a sacrifice made with
flour waffle is a large like a small / big red paint. The Chinese believe that turtle is so
old stand by begging turtles to renew themselves and thus holds great merit.
It pays respect to god with the Waiprajan dessert called “Tong Chew Pear” and
also with snazzy dessert on the Lunar 15th of Months 8th of Chinese.
Vegetarian traditions
Set ourselve on precept, pay the hearts clean, no meat consumption for 9 days
which starting on the Lunar 1st of the Months 9, every night of March 9 or aroung
September to October. It is the tradition that Chinese residents in Phuket to take a long
97
time since photochemical protest in 2368 B.E. There will be many such rituals
ceremony, invite God to fire walking, exorcise, and warriors farewell etc. This festival
is one of the most event which has been featured in Faith and sequin both Thai and
foreigners.
Leeway Traditions
By group of fishermen at Rawai Beach & Baan Sapam, there will be a Leeway
on Lunar 13th of month 6th. For the fishermen at Koh Sirae start on Lunar 14th of
month 6th, and fishermen at LeamKa (northern Phuket) will start on Lunar 15th of
month 6th. For the Lunar Month of 11th there will ne the tradition like Loy Krating Day
in Thai's tradition as ceremony exorcise with building boats from wood ,barber, nails, a
wood doll, put bad things into the boat and then to float to bring the sad misfortune that
troubles away with the sea. And then dance around the ship which song is known
“Rong-ngeng”.
A Thai belief that hell is let wraith and that spirit come out to get the fathers of
each family's the annual merit which be paying homage, review the merits and measures
for the many kind of dessert : Laa, Tien, Tontai, Tom ect. Time match on back lunar 8th
of Month 10th and also again on back lunar 15th of Month 10th.
It is the annual set on 13th March to celebrate of two heroine, there will be any
activities to remember the bravery of this two heroine that have protected Thalang City
from Enemy at that time.
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To make merit and invite Monk to prayer, then release turtles into the sea at
NaiYang Beach Natural Park. It is anual on 13th of April (SongKran Day).
Seafood Festival
In May every year, there will be the Seafood Festival to promote The Phuket
SeaFood to another, persuade the tourist to visit Phuket in rainy season. There will be a
lot of activities, the parade contest, The SeaFood Shops, the each Local Food
demonstrate, and the cultural shows from each different local.
5st December of every year, there will be the Royal Cup sailing competition
which it has started since 2530 B.E, to Honor of His Majesty, the King's 60 year
anniversary, the continue till now as every year. There are many inter sailboat to join
competition the King's Cup.
(Source: Phuket Provincial Governor's Office, 28 Apr 2010)
Phuket Tourism
This is very important factors that influence our business forward because the
main target group of our business is tourists. A tropical paradise, Phuket has a bit of
everything that promises to make a holiday to this beautiful province memorable for the
whole life. Phuket tourism is not just about beaches, though of course the beaches of
Phuket rank highest in the tourist attractions of Phuket. A trip to Phuket can reveal
several other attractive spots of the province to the tourists. These include dense tropical
forests which provide a safe haven to several species of flora and fauna. Among the
wild animals, you might have an occasional glimpse of rare species of reptiles. If you
have a passion for wild life then get ready to explore the forests of Phuket and
rediscover nature in her splendid form. Phuket has much to offer, from mangrove
forests to brilliant sunset as you visit Laem Phromthep, the island's southernmost point.
Like the rest of Thailand, Phuket also is famous for preserving her rich historical
and cultural heritage. While on a trip to Phuket make sure you do not miss out on the
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various historical and cultural attractions of Phuket. If you have interest in history or
archaeology, visit Phuket to experience the brilliance of old Sino-Portuguese
architecture. Discover the many facets of Phuket tourism with a trip to this island. The
mixed cultural charm would surely inject the feel of pleasure into your mind.
Low – High season is affected our business because the number of tourists
depend on high and low seasons. There are 3 seasons for travel in Phuket which are:
Low Season is 01 May to 31 October in each year which there are few of
tourists .
well above the 635,060 for January 2008, when Phuket hummed along in the middle of
a then-record high season.
At peak times lately, with multiple flights arriving or departing, Phuket airport
has seemed to be bursting at the seams, with queues of passengers sometimes extending
back 50 metres from the main terminal entrance scanner. A massive increase in the
number of flights appears the prime force driving the resurgence of the island as a
holiday destination for international and domestic travellers alike. January's total of
4524 flights represented a 30.49 percent increase on the same period in the previous
year. That figure also even soars well above the 4155 flights recorded in January 2008,
before the economic dip set in. Biggest increase of all came among international
passengers, up by 40.60 percent on January 2009.
While Thailand suffered heavy losses to tourist numbers early last year after the
December 2008 occupation and blockade at Suvarnabhumi airport, Phuket's numbers
dropped, but not to disastrous levels. Comparisons with the record January of 2008
establish that the 2010 bounce is genuine, not just a statistical aberration based on a low
January 2009 figure. The turnaround is backed by reports from Phuket resort managers,
who have been pleasantly surprised at the speed and the strength of Phuket's recovery.
Ashleigh Brayshaw, Director of Marketing Communications at Sheraton Grande
Laguna, said: ''It has been a great start to the year. The meetings segment is also very
strong.'' She said figures were healthy across all the brands at the large Laguna Phuket
destination resort, usually a bellwether for the island's top-end market. The surge back
to prominence, similar in many ways to the island's quick recovery after the 2004
tsunami, seems to be a product of several factors: Substantial discounting and special
packages at resorts has made the island top value again for tourists. Direct flights to
Phuket are up, to the point where the airport no longer has space for additional
overnight airline parking. Charter flights have increased rapidly, with the Tourism
Authority of Thailand scoring successes on road trip presentations, especially in China.
Budget airlines, led by AirAsia creating an island hub and Jetstar out of Australia, have
seized on Phuket's geographical advantage and rapidly opened new region-wide routes.
Pundits still say it will be early 2011 before Asia's tourism market fully recovers
from the worldwide economic downturn, yet Phuket suddenly appears to be the tourism
industry's upturn pathfinder. Even if people are still paying less to get to Phuket and
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spending on average about 20 percent less when they get here, all indications are that
Phuket is literally off to a flying start to 2010. In the full year 2009, Phuket
international arrivals and departures were down by 4.91 percent, with the domestic side
compensating a little by increasing 5.04 percent. Goods being flown in also reflect the
massive 2010 rebound, increasing year on year for January by 52.83 percent, with
international cargo flights more than doubling. Thailand's quirky politics, though,
remain unpredictable. Yet it appears travellers are prepared to take the country's
increasingly settled appearance since the Asean red-shirt resort invasion of April 2009
at face value, as a sign that it's time to return. The figures for the period from October
2009 to January 2010 also reflect a pronounced return to normal, with the number of
arrivals and departures rising to 2,436,570 in that period, up by 27.48 percent on the
previous comparable period. January's surge in international traffic has been
exceptional, but in the October-January period, domestic travel to Phuket has also
strongly improved by 35.15 percent.
Resort managers predict that February will be just as potent, with the Chinese
New Year-Valentine's Day peak around February 14 likely to bring figures to rival the
2009 Christmas-New Year. Phuket Bike Week in April, running into the Thai New Year
at Songkran, is also expected to close out a high season in which Phuket tourism
impressively turned around its fortunes.
Natural Disaster
Technology Factors
Technology Equipments
La Marzocco’s is the most famous and the best quality of coffee brewing machine
brand in Italy. Most of barista around the world select this brand because the World
Barista Championship (WBC) use machine of this brand in competition and Starbuck
coffee and Gloria Jean’s also use machine of this brand to serve the high quality coffee
cup. Setting the bar higher, Featuring PID temperature controls, solid-state relays, pre-
heating system and adjustable steam flow. The GB/5 takes temperature stability to a
new level, electronically monitoring all machine functions. Saturated brewing groups
and dual boiler-technology inside. Ideal for the most classic & elegant cafés.
functions: brewing of espresso and steam production. A large draw on power to produce
steam can jeopardise the thermal stability in single-boiler machines. This can mean over
or under-extracted coffee. La Marzocco has a dedicated boiler for each of these
functions: therefore it uses two boilers, completely separate one from the other, so that
they can both be working at the same time without interfering with each other. The
coffee boiler contains a large quantity of water at an optimal temperature, kept
constantly under control by a precision thermostat which ensures a maximum
temperature variation between one coffee and the next of less than ± 1° C, while other
manufacturers' machines with a single boiler rely on less suitable pressure gauges to
regulate even the most important parameter, the temperature.
Finally, among the La Marzocco machines, those with the PID system ensure a
temperature variation between one coffee and the next of even less than ± 0.5° C, an
out-and-out record in the field. La Marzocco's steam boiler is also by far more efficient
given that it does not contain heat exchangers. The steam pressure can, in fact, be
adjusted at whatever level required, without detracting from the coffee brewing
temperature, thus enabling the perfect preparation of milk-based drinks.
Coffee Grinder
Compak K6 Grinder, attractive coffee grinder for heavy duty use. Grinds and
dispenses approx 7g of espresso coffee per dispense. The grinder built for the
professional barista who demands a perfect grind with performance and agility.
Excellent feature,production capacity and price ratio. Has a continuos micrometrical
regulation system and an aluminium dispenser with a buit-in coffee press. In addition it
was used by WBC for Thailand Barista Champion Competition in 2008.
Blender
The Legendary Performer, for years the Smoother has set the standard in
blending frozen drinks. The Smoother is still the choice of many of the world's leading
beverage retailers. No blending chore is too tough for the Smoother. The Smoother was
designed with you in mind. There is no need to purchase a different machine if you
change the layout of your counter. The Smoother combines power with intelligence and
beauty. In addition Starbuck also use this brand so it is very popular in Thailand.
If you're a veteran retailer, you know the problem: Your inventory doesn't match
your tallies. Sales are going unrecorded. Your staff is spending far too much time
chasing mistakes instead of tending to customers. Something is seriously wrong, and
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you're just not sure what the problem is. These and other snafus suggest that it's time
that your business did away with its cash registers and stepped up to a point-of-sale
(POS) system. A POS system is a computer software and hardware network that records
sales as they're occurring; it solves a variety of operational and record-keeping
headaches.
In a coffee shop, like any business establishment, it's important to keep records
of all transactions so we need to find the POS system for our coffee shop. POS Systems
need to keep track of our inventory and ingredients, analyze profit and loss margins,
determine our top-selling items, and record employee hours and wages. With this
Coffee Point of Sale System we can easily sell and redeem gift cards and implement
loyalty plans to attract new customers and to turn existing customers into regulars.
Figure 3.9: Coffee Shop POS Systems and Coffee Shop Software
Wi-Fi Hotspot
Internet Service
Competitor Analysis
Because of OKey Coffee is located at Karon Beach and targeting the tourists
who are visited there so the competitor analysis is analyzing the coffee entrepreneurs
which are both direct and indirect competitors in Karon Beach. For the premium coffee
store business, it has very low competition. There is only one which is the direct
competitors in the market. Almost of coffee products can find in Seven-Elevens,
Minimarts and restaurants which are instant coffee; plastic packages and instant canned
coffee; can and bottle package so it does not fresh good quality of coffee and there are
not variety of products for the customers who visit the beach.
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Ice-cream
115
Internet
(Source: Andaman Coffee Co. Branch 3, 210/4 Karon Road, Karon, Muang, Phuket
83100, 03 May 2010)
Andaman Coffee Co. is the strong competitor in the market because there are 3
branches in Phuket which the branch one and two are located on Kata beach; the beach
next to Karon beach and the branch three is located on Karon which is our competitor so
they can attract the customers to buy their products because this brand name is well
know in the this area. They serve their products and service to customers who have
more purchasing power. They seek out the Arabica coffee beans that the products of
Andaman Coffee Co. are good quality. There are main menu of coffee such as Espresso,
cappuccino, latte and etc and they also have their own menu but there are not much.
They are agreeable from customer even though it is not a big brand, it does not have a
big fame all over our country, but it is well known for tourists there. According to
Karon beach, it may have less choice for the customers because there is only one
premium coffee store there. Andaman coffee store that is similar to Starbucks, but does
not quite have the same touch. It also provides internet café and printing to customers.
They always provide a comprehensive service to the customer satisfactions. The
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products are not much variety. The package of this store is present with their logo on the
packages such as coffee plastic glass and toothpick set.
Prices
The Andaman Coffee products and service are all set in western prices, so it's
not cheap because the premium coffee market in Karon Beach is dominated by them
and almost of their customers are foreigners. The prices also were increased by added
land value because it is in front of the beach so the customers pay higher prices due to
the lack of competition. Especially internet café price are not attractive the customers
that they charge only high price without concern with the customers who play for long
times.
Place
(Source: Andaman Coffee Co. Branch 3, 210/4 Karon Road, Karon, Muang, Phuket
83100, 03 May 2010)
The Andaman Coffee Co. is dominated niche market at Karon beach. It open
10.00 AM – 9.30 PM and this store is smaller than branch one and two but this store is
located in front of the beach which is the tourism place so the customers can see and
convenience but it is not located in the crowded place because the crowded place of
Karon beach is in Karon Traffic Circle. It is opposite our shop that it is on the way to
Kata beach but our shop is on the way to Patong beach and it is in Karon Traffic Circle
area, but it is not so far from our store. The inside decoration is colorful modern style
with green and orange tone color. They provide sofas and international magazines and
there is out door atmosphere as well.
Free Wi –Fi
Ice cream
Customers can get discount when order ice cream more 1 scope
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(Source: Andaman Coffee Co. Branch 3, 210/4 Karon Road, Karon, Muang, Phuket
83100, 03 May 2010)
Actually the premium coffee store always provide free Wi – Fi and some of
them limit times to use because protecting the customers who use for long time that the
store may waste of electric costs and there are not have seats for new customers so the
business can not get lot of profits. The Andaman coffee provides only 15 minutes that it
is very few times so it looks not attractive the customers who want to play for free Wi –
Fi but the point card promotion is very interesting because it can show the royalty of
their customers for products and it is the good way to motivate customers to buy. In
addition they do advertising via an internet such as their own website (It is not update
anymore) and face book.
Staff Uniform
The staffs of Andaman Coffee Co. wear the uniforms which have company logo
on their grey shirts with black long pants. When customers come, the staffs always say
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greeting and they always say “Thank you” when customers leave the store. This
promotion can make the customers feel impressive and satisfy with their service.
The convenience store and minimart in Karon beach are indirect competitors of
our company because they also provide coffee and other beverages. Their products are
general which there are in the market. The quality of product is different from premium
coffee because they are not fresh so the taste of premium coffee is better. Coffee
products are not premium coffee but they are instant coffee that they are instant coffee;
the customers need to brew before drinking and instant coffee canned; the coffee
already brewed. It is the convenience way for customers because they can be easy to
find this kind of coffee in the market. The prices are cheaper than premium coffee. They
are big company and famous brand names which have advertising via television, news
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papers and magazines such as Nescafe of Nestle and Birdy. In addition they also
provide variety of beverages that the customers have many choices for them.
Restaurant
There are many restaurants in Karon beach that provide coffee for their
customers but their products are not premium coffee because they are instant coffee.
They also provide other beverages such as energy drink, orange juice, coconut and etc
which there are variety of choice for customers. The prices are expensive that are the
same our product because it is in restaurant but there are less choice for customers and
lower quality.
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This is also indirect competitors of our company because they provide beverage
that they are alternative for customers. They also sell coffee that brewing the instant
coffee or it is original Thai style. The products are normal so the prices are cheaper. The
customer can be convenience to see because there are many shops beside the road.
Almost of them do not have any attractive promotion because it is low cost and easy to
sell. The customers do not concern on quality much.
Customer Analysis
Amount of Tourist
From graph, we can see that the amounts of foreign tourist arrivals to Phuket are
more than Thai tourists. There are foreign tourists more a million per year while there
are Thai tourists less than half million.
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Thai Tourist
Gender
Male 38%
Female 62%
0 10 20 30 40 50 60 70
The research tells that there are 62 percents of Thai tourists are women and 38
percents are men.
Age
43% 25 - 34
57% Other
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Most ages are between 25 -34 years old (43%) and others are 57 percents.
Revenue
Less Than
28% or Equal
49,999 baht
72% Other
The revenues are less than or equal to 49,999 baht (72%) and others are 28
percents.
128
Figure 3.23: Factors to Choose the Coffee Shop for Thai People
Taste
Atm osphere
Qu ick Service
Variety of Products
Reasonable Price
Comfortable and Meeting
Brand Reliability
Convenien ce
Bakery an d Foo d
Promotion
0 1 2 3 4 5 6 7 8 9 10
The factors that influence Thai tourists to choose the coffee shop are taste of
coffee, atmosphere at the shop, quick service, variety of products, reasonable price of
product, the comfortable and suitable for meeting, brand reliability, convenience to buy
such as they are near office or on the way to home, taste of bakery and food and
attractive promotion. They are the reasons why Thai tourists choose coffee to their
drink.
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Foreign Tourist
63% 17%
Europe
Asia
Australia
North America
Other
South Africa
1%
3% 4% 12%
From graph the most number of tourists who come to travel at Phuket in year
2009 is European countries which there are 764,980 tourists (63%). Second there are
198,967 tourists (17%) that is very different from Europe. Third there are 147,915
tourists (12%) from Australia. Fourth there are 41,823 tourists (4%) from North
America Fifth there are only 5,561 tourists (1%) from South Africa and there are 30,786
tourists (3%) from other.
Figure 3.25: Top Ten Coutry of Foreign Tourists Year 2009 in Phuket
Finland
Singapore 6.47%, 48,699
Russia 6 .61%, 49,770
6.79%, 57,338 Australia
19.52%, 146,962
Germany
From
7.62%, 57,338 the most number of tourists who come to travel in Phuket in year 2009
separate by country which are Australia, Sweden, UK, Germany, Russia, Finland,
Korea
Denmark, France, Japan and USA. In addition it is high season on October last year
14.78%, 111,255
Sweden
14.43%, 108,582
Malaysia
8.09%, 60,867
China
7.63%, 57,454
England
8.06%, 6 0,690
From the most number of tourists who come to travel in Phuket in year 2009
separate by country which are Australia, Sweden, UK, Germany, Russia, Finland,
Denmark, France, Japan and USA. In addition it is high season on October last year
found that there are tourists increase to 20 percents.
Gender
Male 60%
Female 40%
0 10 20 30 40 50 60 70
On the other hand almost of foreign tourists in Phuket are men (60%) and there
are 40 percents of women.
Age
20%
25 - 54
Other
80%
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Most age between 25 – 54 years old (80%) and others are 20 percents.
Revenue
The revenues are 50,000 baht up (62.5%) and there are 37 percents of others.
133
100 88.24%
90
69.84%
80
67.74%
70 63.08%
57.41%
60
50
40
30
20
10
0
North Europe Other China, Japan
America Taiwan and
Hong Kong
There are 72.21 percents of foreign tourists who ever have drunk coffee in
Thailand. The tourists from North America are the first (88.24%), second are from
Europe (69.84%), and third are China, Taiwan and Hong Kong (63.08). The less
number is from Japan (57.41%) and there are 67.74 percents of other countries.
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48
47 46.3%
46
45
44 43.6%
43
42
41
40
Yes No
There are 43.6 percents who like to drink coffee but they do not realize on
important of coffee. In the other hand there are 46.3 who realize on important of coffee
because they need to drink for health in daily life.
135
100
90
80
70
52.6%
60
50
25.6%
40
18.2%
30
20
10
There are 56.2 percents of foreign tourists who do not realize on type of coffee
bean but there are 18.2 percents that like Arabica Bean that there is the highest amount
when comparing with other coffee beans which there are 25.6 percents.
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100
90
80
70
55.8%
60
50 25.8%
40
18.4%
30
20
10
Premium Coffee or Instant Coffee or Both
Fresh Coffee Instant Coffee
Canned
Taste
14.4
Iced Coffee
The first favorite taste for coffee drinking of foreign tourist is putting milk and
sugar (47.9) and second there are 24.1 percents for black coffee. Third there are 14.4
which is iced coffee.
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Price
Figure 3.34: Price and Packing Satisfaction of Foreigners for Coffee in Thailand
45 41.6
40 33.7
35 55 - 120
30 24.7 Baht
25 25 -35 Baht
20
15 10 -20 Baht
10
5
0
Coffee Cup Coffee Mug Instant Coffee
Cup
Almost of foreigners choose the coffee that brewing cup by cup which prices are
between 55 – 120 baht for a cup (41.6%) and second is coffee mug which price 25 – 35
baht for a cup (33.7). Third is instant coffee cup which price are between 10 – 20 baht
for a cup (24.7)
Popular Place
Restaurant or
Second
Coffee Shop at
Hotel
General
Third Restaurant
The first popular place for foreigners is coffee shop or coffee outlet and second
is restaurant or coffee shop at hotel. Third is general restaurant.
First Restaurant or
Coffee Shop at
Hotel
Coffee Shop or
Second
Coffee Outlet
General Shop
Third
0 1 2 3 4
The most satisfaction place for foreigner is restaurant or coffee shop at hotel.
Second is coffee outlet or coffee store and third is the general shop that sells variety of
beverages.
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Decoration
60 55.7
50
40
33.5
30
20 10.8
10
0
Classic Modern Other
The most favorite decoration of the foreign tourists is classic style, secondary
style is modern and third is other styles which in a few.
First
Price
Second
Atmosphere in the
Shop and
Third Convenience to buy
Service
Forth
Variety of Product
0 1 2 3 4 5
141
The foreigner satisfaction for coffee business in Thailand is middle level which
there is average 3.43 scores from 5. The most influence factors of foreigner satisfaction
is price and second it is atmosphere in the shop and convenience to buy the product.
Third it is service which the entrepreneurs provide to them. Forth it is variety of
products.
First
Giving Own
Coffee
Information
Second Giving Own
Coffee Equipment
Information
0 1 2 3 4
The less two influence factors of foreigner satisfaction which the first is giving
own coffee information of the entrepreneur and second is giving own coffee equipment
information.
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Nationality Satisfaction
First
North America
Eropean Country,
Secondr
China, Taiwan and
Hong Kong
Other
Third
First
Eastern Country
Western Country
Second
The most foreigner satisfactions who work in Thailand, the information show
that the Eastern country is more satisfied than Western country.
Company Analysis
OKey coffee provides good variety of coffee and other products and services
which can make the customer to enjoy and be happy when they visit our outlet. Our
company prides to serve premium Arabica from Doi Chaang Coffee that is world class
coffee and the best coffee in the world because it is accepted from international country
such as Italy, Canada, China and etc. Doi Chaang Coffee is a single-origin, premium
Arabica. It is certified organic, forest canopy grown, hand picked, fresh water
processed, sun dried, hand sorted and freshly roasted to ensure the highest possible
quality for each cup of Doi Chaang Coffee. Naturally low in caffeine, it has a complex
and flavourful profile which is enhanced and released through detailed cultivating,
processing and roasting methods. For this reason we can sure that our every cup of
coffees are high quality. In addition we use world class machine from Italy which is the
best coffee machine provider and we also use other equipments which are high
technology for our store. We make sure that the prices of our products and service are
reasonable for the customers so the customers will be satisfaction with our products and
services because we have studied this very well. We also find the best place to complete
our high quality of products and services and it can be competitive with our
competitors. We have the good promotions that can be attractive our customers to
purchase our products services so we believe that our company will be beyond our
competitors.
SWOT Analysis
The following SWOT analysis captures the key strengths and weaknesses within
the company, and describes the opportunities and threats facing OKey Coffee.
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Strengths
Weaknesses
- New brand
- Brewing cup by cup is slow; 3 minutes : 1 cup so lose of sale opportunity
- The maintenance of machine is waste of time for production.
Opportunities
- Most of foreigners drink fresh coffee and premium coffee is also popular now.
- There are good quality raw material resources in Thailand.
- OKey coffee is located on tourist destination so high and peak seasons can gain lot
revenues.
- There are only one direct competitor so it is low competitions and we can be easy to
entry in the niche market
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Threats
Because of nowadays the premium coffee business is very popular and the
market is more expand so it can attract the new competitor entry into the business that
both Thai entrepreneurs and foreign entrepreneurs get into for the market share of this
business. The target markets of premium coffee are middle class up by divided in to:
-Business zone, Department Store and Tourist Destination and the big dominant
market share of premium coffee in Thailand are:
• Foreign Chain such as Starbucks, Au Bon Pain, Gloria Jeans and UCC
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The plastic glass is industry productions which there are many suppliers in
Thailand so the Bargaining Power of Suppliers are low because our company can order
from other suppliers which providing lower prices.
There are many products that can take place premium coffee which maybe
instant coffee and energy drink that they are easy or convenience to buy in the market.
STP is the marketing’s tools for accessing to the customer in common using,
that including of Segment market, Target market, and Positioning.
OKey Coffee will focus its marketing activities on reaching foreign and Thai
tourists who come to visit the Karon. Our market research shows that these are the
customer groups that are most likely to buy premium coffee products that most of them
are foreigners. Since premium coffee consumption is universal across different income
categories and behavior to drink coffee in Thailand. The chart below outlines the total
market potential (in number of customers) of OKey Coffee drinkers in Karon beach.
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10%
Foreign Tourist
Local People
10%
OKey coffee divide target group into 3 groups which are foreign tourist, Thai
tourist and local people. OKey Coffee cater to people who want to get their daily cup of
great-tasting coffee and food or variety of products in a relaxing atmosphere. Such
customers vary in age, although our location on Karon beach and it is in front of the
beach means that most of our clientele will be travelers who visit there and local people.
For us, this will provide a unique possibility for building a loyal client base.
Main customer of OKey coffee is foreign tourists who stay at Karon beach that
most of them are male and they ever drunk coffee in Thailand and the satisfaction of
them are in middle level so this mean most foreigner like coffee in Thailand. There are
80 percents which are very high number and they have high revenue which are more
50,000 baht per month so the potential is high purchasing power to pay for products and
services with medium to high price that they can pay at prices between 50 – 120 baht.
Most of them like to drink premium coffee at the coffee outlet or coffee shop which
have good atmosphere, good service and variety of products. Most of them like
decoration in classic style.
Secondary customers are Thai tourists who visit on Karon beach. Most
of them are female. The revenues are less than or eaqual to 49,999 per month. They also
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concern on taste of coffee ,atmosphere and variety of service and premium coffee are
popular in Thailand now so Thai people are more consume premium coffee and local
people which are officers and people who work on the beach so OKey coffee can get
income from local people in low season.
☺OKey Coffee
Reasonable Price
Convenience NOT
Classic
☻Andaman Coffee
NOT
OKey coffee position on variety of products and services with reasonable price
according to customer wants and needs. OKey coffee’s products and services are high
quality to serve the customers in classic decoration store at convenience place for
complete in the customers relax time. Our store can serve the products to meet the wants
and needs of customers with their friends and family. The position of our products and
services are beyond our competitor like Andaman Coffee because they are not variety of
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products and services and the prices are expensive. OKey coffee also locates at
convenient place which the Andaman coffee is not.
The Marketing Mix model (also known as the 4 P’s). There is Product, Price,
Place (distribution) and Promotion. These four P's are the parameters that the marketing
manager can control, subject to the internal and external constraints of the marketing
environment. The goal is to make decisions that center the four P's on the customers in
the target market in order to create perceived value and generate a positive response.
OKey Coffee marketing strategy will be focused at getting new customers,
retaining the existing customers, getting customers to spend more and come back more
often. Establishing a loyal customer base is of a paramount importance since such
customer core will not only generate most of the sales but also will provide favorable
referrals.
Branding Strategy; we use the word “OKey” which means OKey Coffee store as
our brand which they are OKey in products, OKey in price and OKey in place. The
word OKey is easy to remember so the customer will imagine to OKey coffee when
they want to drink good taste of coffee with reasonable price at convenient place.
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Logo
It is simple but it is unique itself and easy to remember. It can present about our
finest coffee store and feeling to everyone who drinks our coffee and other products.
When customers see this logo, they can smile and feel well. The objective below the
brand OKey is a fantastic smile which would make our customers feel happy. It also
expresses the uniqueness of Thailand as it’s known as the land of smile.
Our slogan, this phrase would make the customers remember our brand more
easily because it is just only a short word and also has a good meaning. Every time that
our customers see or hear the slogan, they would feel happy because they know that
they will not be lonely anymore.
OKey Coffee is provided the variety of products and services to meet the
customer needs with the good training of our staffs to make the customer satisfaction.
OKey coffee concern on clean and save because it can create the customer reliability.
There are more choices for the customers than competitor such as secondhand books,
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foods that the competitors do not provide to the customers. In addition there will be new
products or special product in high or peak season for increase in prices and sales. We
need to think that the products should be balance in sale because if some of products
hold back other, we should not sell because we will lose some of income.
Our packaging is also classic as our shop because OKey coffee is the new
business so the packaging should be attract the customers
Product
Core Products
- Coffee; Iced Beverage, Hot Beverage, Blend Beverage
- Tea
- Juice
- Smoothie
- Non Iced Beverage
- Food
Supporting Products
Service
- Internet
- Free Wi Fi that do not limited time use for customer who bring computer
by giving password
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OKey coffee estimated production cost of raw material plus operation cost and
added land value then setting reasonable price for our target group. We will set in
different prices that they depend on costs. Our price will set more threefold from cost on
core products and some of supporting products. Some supporting products set in the
general price.
OKey coffee store sets reasonable prices to meet the customer needs and wants
which the prices are medium. We will set the price on products that the competitor does
not have quite high prices such as foods and own menu of our company.
We will set the price are quite cheaper than competitors on some menu which
Setting different prices of product that they are low cost raw material which competitors
sell in high prices but we are sell low price such as Andaman Coffee sell Thai Tea 95
baht but we sell in 75 baht because it is very low cost.
The price of the same menu with competitor that we do not set in expensive than
them and we will set same price on some menus. To increase price on popular menus in
high and peak season but they are not over competitor. To discount some menus of
beverage in low season or Green season for attract more customer.
154
OKey coffee store is located at the beach Karon Traffic Circle which is the main
road or commerce zone in the beach and there are crowded of tourists who walk on or
shopping there from day time to night time because there are supermarkets, mini marts
and restaurants. The area is made up entirely of photo labs, pharmacies, banks and
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tailors and more tailors and more bars than Las Vegas, although with more modest
prices.
In addition there are guest house and hotels around there. Especially OKey
coffee is opposite Phuket Karon Corner Inn Hotel which this hotel do not have break
fast for their guest so they can come to visit our shop because we provide foods and
beverages. Our shop is in front of the beach which is on the convenient building
because there are shopping place in the first floor so the customers are easy to get our
shop at the second floor. There are in door and out door atmosphere for customer. There
are comfortable warm lighting, coffee bar, sofa, private space and international selection
of variety magazine, you can enjoy out door atmosphere as well which customer can see
the beach from our store. From these reasons OKey coffee can be more attractive
customer than competitor.
To changing new one of products that there are accidents by customer wrongs
such as coffee cups are split or broken. It will lead the business to good standard and it
can be “Word of Mouth” which is the good promotion.
Advertising Strategy
- Face books that is the good channel to introduce our business on global
and we can exchange idea with customers and people who are interested in coffee and
Free.
These can present image, brand name and logo of company quickly and clearly
so customers are easy and understand about products and services. We will do public
relation such as donating box because this can promote good image of company.
Staff Uniform
This strategy the same of competitors that the staffs need to wear OKey Coffee
uniforms because when customers come, the staffs always say greeting and they always
say “Thank you” when customers leave the store. This promotion can make the
customers feel impressive and satisfy with their service.
Our company located at Karon beach in Phuket. As we know there are three
seasons in Phuket which are:
Low Season is 01 May to 31 October in each year which there are less tourists.
From research of our competitor and entrepreneurs there, we can estimate sale of our
company in this period:
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This period our sale may not less than high season and peak period or our sale
will be stable.
We will launch OKey Coffee business on January, 2011 which is in high season
and peak period because there are many tourists or many demands so we can easy to sell
our products more low season. We may not get the profits on first month because we are
ne entry into the market so the customer may not know our products so they do not
much purchasing our products. Although we have to use a lot of money for investment
such as building rental, equipment, raw material, salaries, tools, interior decoration cost
etc. but we think that we can make profit later when our product enter market for year
two or three which are 2012 and 2013.
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*** We assume the sale forecast on very low volume in the period when
compare with total sale of competitors and real situation because our project can be safe
that when we are operated our project and it can show the feasibility so the project will
be survive.
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Year 2011
Sale Volume
Products and Service Per Month Price Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Beverage 75 775 780 785 785 790 785 790 795 795 800 1,085 1,550 10,515
Food 150 620 625 630 630 620 625 610 620 625 630 775 930 7,940
Coffee Bean 150 5 7 7 7 5 5 4 6 7 6 9 10 78
Bakery 75 465 470 475 480 460 465 470 470 475 485 495 620 5,830
Ice Cream 50 620 630 800 1050 450 460 465 460 465 475 600 900 7,375
Secondhand Book 180 155 155 157 160 140 140 155 150 160 160 175 180 1,887
Internet Service 100 186 130 140 150 124 128 125 129 135 140 145 170 1,640
Year 2011
Total Sale
Products and Service Per Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Percent
Beverage 58,125 58,500 58,875 58,875 59,250 58,875 59,250 59,625 59,625 60,000 81,375 116,250 788,625 24 %
Food 93,000 93,750 94,500 94,500 93,000 93,750 91,500 93,000 93,750 94,500 116,250 139,500 1,191,000 36.7 %
Coffee Bean 750 1,050 1,050 1,050 750 750 600 900 1,050 900 1,350 1,500 11,700 0.3 %
Bakery 34,875 35,250 35,625 36,000 34,500 34,875 35,250 35,250 35,625 36,375 37,125 46,500 437,250 13 %
Ice Cream 31,000 31,500 40,000 52,500 22,500 23,000 23,250 23,000 23,250 23,750 30,000 45,000 368,750 11 %
Secondhand Book 27,900 27,900 28,260 28,800 25,200 25,200 27,900 27,000 28,800 28,800 31,500 32,400 339,660 10 %
Internet Service 12,400 13,000 14,000 15,000 12,400 12,800 12,500 12,900 13,500 14,000 14,500 17,000 164,000 5%
Total 258,050 260,950 272,310 286,725 247600 249,250 250,250 251,675 255,600 258,325 312,100 398,150 3,300,985 100 %
162
Price (Baht)
Month
163
Baverage
Food
Coffee Bean
Bakery
Ice Cream
Secondhand Book
Intenet
164
Year 2012
Sale Volume
Products and Service Per Month Price Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Beverage 75 2,480 2,010 2,100 2,200 800 790 750 765 795 800 1,800 2,850 18,140
Food 150 1,200 1,000 900 1,000 700 600 590 700 780 800 1,000 1,550 10,820
Coffee Bean 150 12 9 8 10 5 5 4 5 6 8 12 18 102
Bakery 75 775 700 720 750 500 520 485 470 475 600 750 800 7,545
Ice Cream 50 950 850 800 1,100 450 400 465 460 465 500 900 950 8,290
Secondhand Book 180 250 220 190 200 150 155 165 150 175 180 250 300 2,385
Internet Service 100 500 460 450 480 200 250 300 320 300 400 500 580 4,740
Year 2012
Total Sale
Products and Service Per Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Percent
Month
Beverage 186,000 150,750 157,500 165,000 60,000 59,250 56,250 57,375 59,625 60,000 135,000 213,750 1,360,500 28 %
Food 180,000 150,000 135,000 150,000 105,000 90,000 88,500 105,000 117,000 120,000 150,000 232,500 1,623,000 33 %
Coffee Bean 1,800 1,350 1,200 1,500 750 750 600 750 900 1,200 1,800 2,700 15,300 0.4 %
Bakery 58,125 52,500 54,000 56,250 37,500 39,000 36,375 35,250 35,625 45,000 56,250 60,000 565,875 12 %
Ice Cream 47,500 42,500 40,000 55,000 22,500 20,000 23,250 23,000 23,250 25,000 45,000 47,500 414,500 8%
Secondhand Book 45,000 39,600 34,200 36,000 27,000 27,900 29,700 27,000 31,500 32,400 45,000 54,000 429,300 8.6 %
Internet Service 50,000 46,000 45,000 48,000 20,000 25,000 30,000 32,000 30,000 40,000 50,000 58,000 474,000 10 %
Total 568,425 482,700 466,900 511,750 272,750 261,900 264,675 280,375 297,900 323,600 483,050 668,450 4,882,475 100 %
165
Price (Baht)
Month
10%
28%
8.9%
Beverage
Food
8% Coffee Bean
Bakery
Ice Cream
12% Secondhand Book
Internet
0.4% 33%
167
Year 2013
Sale Volume
Products and Service Per Month Price Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Beverage 75 3,100 2,800 2,900 3,000 1,000 800 750 770 800 800 2,500 3,100 22,320
Food 150 1,500 1,250 1,000 1,300 750 680 590 680 800 830 1,300 1,550 12,230
Coffee Bean 150 24 18 12 15 6 7 8 9 11 12 20 28 170
Bakery 75 1,000 900 850 900 500 590 550 470 500 600 1,000 1,100 8,960
Ice Cream 50 1,200 1,100 1,000 1,150 500 450 465 460 465 500 1,000 1,250 9,540
Secondhand Book 180 300 250 200 230 150 155 165 150 175 180 280 330 2,565
Internet Service - 3 cases 100 930 850 800 900 300 250 300 320 300 400 600 900 6,850
Year 2013
Total Sale
Products and Service Per Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Percent
Month
Beverage 232,500 210,000 217,500 225,000 75,000 60,000 56,250 57,750 60,000 60,000 187,500 232,500 1,674,000 28.5 %
Food 225,000 187,500 150,000 195,000 112,500 102,000 88,500 102,000 120,000 124,500 195,000 232,500 1,834,500 31%
Coffee Bean 3,600 2,700 1,800 2,250 900 1,050 1,200 1,350 1,650 1,800 3,000 4,200 25,500 0.5%
Bakery 75,000 67,500 63,750 67,500 37,500 44,250 41,250 35,250 37,500 45,000 75,000 82,500 672,000 11.8%
Ice Cream 60,000 55000 50000 57500 25000 22500 23250 23000 23250 25000 50000 62500 477,000 11.2%
Secondhand Book 54,000 45,000 36000 41400 27000 27900 29700 27000 31500 32400 50400 59400 461,700 7.8%
Internet Service 93,000 85,000 80,000 90,000 30,000 25,000 30,000 32,000 30,000 40,000 60,000 90,000 685,000 12.2%
Total 743,100 652,700 599,050 678,650 307,900 282,700 270,150 278,350 303,900 382,700 620,900 763,600 5,883,700 100 %
168
Price (Baht)
Month
12.2%
7.8%
28.5%
Beverage
Food
Coffee Bean
8.2%
Bakery
Ice Cream
Secondhand Book
11.8% Internet
0.5% 31%
169
7,000,000
5,883,700
6,000,000
4,882,475
5,000,000
3,300,985
4,000,000
Baht
3,000,000
2,000,000
1,000,000
0
Year 1 Year 2 Year 2
8,750
10,000
8,000 6,000 6,000
6,000
Baht
4,000
2,000
0
Year 1 Year 2 Year 2 Year 3
172
The market forecast is an important thing that we should the feasibility to sell
product or service in that market because this can point us to know that this business
should launch or not. From sale forecast in 2011 – 2013 of our company we found that
our products can sell at high volumes on high season and very high on peak period
because there are many tourist visit there which are Christmas and New Year and the sale
are less and stable volumes on low season. Although on low season our sale will be less
but from the environment analysis of Phuket, we found that there are many festival in
each year so there are tourist visit there continuously.
We forecast our sale will be increase continuously and it will be stable after
because the customer will know our products more and because of our promotion strategy
they will impress with our products and service so our business will keep walking with
word of month of our customers and OKey Coffee will growth step by step.
173
Chapter 4
Technical
Feasibility Study
174
This Chapter explains about the technical analysis that including product
characteristic, Location and building, the product and service process thought the
management analysis as well as the overall about cost.
Cultivation
Doi Chaang Coffee is naturally cultivated and processed in the remote Doi
Chang Village of Northern Thailand. Rich fertile soil, high elevations and ample
rainfall make Doi Chang Village one of the premium coffee growing regions of the
world. We naturally cultivate a variety of Arabica plants under a canopy of sun-filtered
plum, peach, pear and macadamia nut trees in altitudes between 1200 and 1600 metres
above sea level. The fallen leaves from our various fruit and nut trees create nutritious
mulch for our coffee plants, providing a subtle fruit and nutty taste to our coffee. The
shade and high altitudes slow the growth of our coffee cherries, creating a more
complex, dense and intensely flavoured bean.
Harvesting
Our cherry flowers begin to bloom in February and the cherry fruit is ready for
harvesting from November to March. Selectively hand picking only our ripe cherries
ensures minimal damage to our plants and that only our best cherries are processed.
This labour intensive traditional processing method washes and flushes the bean
from its fruit. Although time consuming, the wet-method helps maintain the inherent
qualities of our beans.
176
Extraction
First, we pre-wash our cherries in a tank of fresh spring water where all our ripe
cherries will sink to the bottom and any unripe cherries will float to the top and be
removed. Second, we remove the skin and pulp by putting our cherries through a
pulping machine. Third, our beans are fermented in water for 48 hours to remove the
mucilage layer and allow a series of chemical reactions to occur which enhance our
coffee's aromatic and flavour qualities. Finally, we thoroughly hand wash our beans
with fresh flowing spring water to remove all traces of the mucilage and prepare the
beans for drying. All the mucilage and fermented byproducts will be recycled as
fertilizer for the coffee plants.
Drying
This final stage of processing is done just prior to roasting. Our coffee beans are
removed from the final parchment layer with the use of a hulling machine. The coffee
beans are initially sorted and graded by shaking the beans through different sized sieves
and then hand selected to ensure only the finest grade beans are roasted.
Price: 50 Baht
Price: 60 Baht
Price: 75 Baht
Price: 75 Baht
Price: 75 Baht
179
Price: 50 Baht
180
Iced coffee is a cold version of a hot favorite. Purists make it with cold-drip
coffee, by pouring hot coffee over ice. Sometimes, espresso drinks prepared with cold
milk and then iced will also be called "iced coffees." Iced coffee may be flavored,
sweetened and/or topped. Blended menus are also provided. A favorite summer drink,
frappé is a cool refresher on a hot day for coffee lovers. It's easy to make using instant
coffee (decaf or full octane), and while it can be whipped, the traditional version is
shaken ... never stirred.
Table 4.2: Iced Beverage: Iced and Blended Coffee/ Non Coffee
Menu Price
Iced - Coffee
85 Baht
OKey Iced-Espresso
80 Baht
181
OKey Iced-Cappuccino
80 Baht
OKey Iced-Mocha
80 Baht
80 Baht
95 Baht
95 Baht
90 Baht
182
105 Baht
OKey Frappe
105 Baht
OKey Vanilalla
95 Baht
OKey Mocha
90 Baht
OKey Tiramisu
105 Baht
183
OKey Iced
Chocolate
95 Baht
105 Baht
True teas (like green or black teas) are caffeine-containing infusions from the
leaves of a particular type of camellia plant, but our coffeehouse include "herbal teas,"
which come from other plants and are usually caffeine free. Herbal teas (also called
"tisanes" or "herbal infusions") are things like mint, chamomile, rooibos and ginger.
We provide in to cup and pot which are:
Since 1706, Twinings has been at the forefront of the tea trade. Customers in
more than 100 countries enjoy Twinings products, and not just the popular traditional
favorites: Twinings now includes products such as fruit and herbal infusions, aromatic
teas, and iced teas. These fresh flavors reflect a worldwide trend toward a healthier and
more varied lifestyle. The new flavors are as successful as the traditional ones, because
Twinings prepares them using skills acquired through three centuries of experience.
After quenching thirsts for so many generations, no one knows better than Twinings
184
how to deliver a drink that's in perfect condition. Although British-based, and still
operating in England, Twinings also has plants in North Carolina and Calcutta, India.
Success in the competitive worldwide tea market was confirmed in 1972 (and again in
1977) when Twinings became the first tea company to win a Queen's Award for Export.
• Earl Grey
Earl Grey tea was named after Charles Grey, the second earl in his line. He was
Prime Minister to King William IV in the early 19th century. The legend is that the Earl
was given the recipe by a Chinese mandarin with whom he was friends, and whose life
he had saved. Earl Grey is a blend of Indian and Ceylon teas. The tea gets its unusual
flavor from oil of BERGAMOT. Bergamot is a small acidic orange. The latest research
indicates that the Bergamot orange is a cross between the sweet or pear lemon (Citrus
Limetta) and the Seville or sour orange (Citrus Aurantium). The sour orange is native to
southern Vietnam, hence the Chinese connection. This tea has a light refreshing taste,
and can be served hot with or without milk or sugar. It can be used to make iced tea.
• English Breakfast
• Peppermint
For hundreds of years people have enjoyed herbal infusions. Peppermint tea
has been a favorite because of its distinctively refreshing aroma and taste.
185
Peppermint tea is naturally caffeine free and may be served anytime of the day.
Twinings Herb Teas are enjoyed for their light and delicate taste as well as their
relaxing and reviving properties. Twinings teas are blended in England.
Fair Trade certified. Choice Organic Earl Grey with Lavender owes its
flavorful foundation to the selected organic teas from India & Ceylon. These are
blended with Bergamot, A Mediterranean citrus, and then enhanced with the lightest
touch of lavender blossoms. the quintessential afternoon tea. Choice Organic Teas
are certified as organically grown by an independent third party. Every aspect of the
cultivation, handling and packaging is carefully inspected to insure the integrity of
this product from the gardens of origin to your cup. Choice Organic Teas come from
garden tended by traditional methods, without the use of chemicals. Conscious
practice of top soil management and weed control create a balanced environment to
alleviate any agricultural problems. Through diligent care of the environment, our
growers produce exceptional teas and herbs. Fair Trade guarantees fair wages for
workers, improving their opportunities for better healthcare, hosing and education.
By choosing Fair Trade tea, you are directly contributing to the livelihood of tea
growing communities. This Fair Trade tea is independently certified by TransFair
USA. USDA organic. Certified organic by QAI, Inc. The tea bags in this package
are made with unbleached natural fibers. A special environmentally-safe, high
barrier envelope protects the freshness and flavor of the tea.
• Darjeeling
Darjeeling tea is from the Darjeeling region of India, in the foothills of the
Himalayas. Darjeeling tea has a distinct, but delicate flavor, and is often referred to
as the Champagne of Teas. Darjeeling is great in the afternoon or as an elegant
accompaniment with lunch. Twinings tea is blended in England.
• Formosa Oolong
This auction is for a Vintage Twinings Formosa Oolong Tea from London
England. This is in good condition and comes from a smoke and pet free home.
Please check out my other vintage auctions along with another Twinings
(Blackcurrant ~NEW~) Tea and store items up on ebay this week. Thanks for
looking!
• Herbal Lemon
Twinings Lemon Twist herbal tea. Let me tell you that we're really missing
out because even the herbal tea blends are better than they are here.
Faithful readers also know that herbal tea has been a struggle over here. They're
usually some sweet, rosehip hibiscus mess with no character but that's not the case
with Twinings Lemon Twist. This tea has just the right mix of these ingredients:
18.7% lemon grass, and 18.7% lemon peel along with other herbs to give it the
glorious glow necessary to really be by appointment to her majesty Queen Elizabeth
II as the packaging says. If you find it, buy it.
There are two styles of Thai iced tea: with or without milk. Tea with milk is
called cha yen. Tea without milk is called cha dum yen.
Juice
Popular types include orange, apple, pineapple, grape, carrot and grapefruit.
They may be in single-serving bottles or poured from a larger container.
- Orange
- Pine apple
- Apple
- Carrot
- Coconut
Smoothie
Smoothies are usually a mixture of some kind of dairy (such as ice cream, milk
or yogurt) or a milk alternative (like soymilk) with fruit (either fresh or as a fruit
concentrate). Common fruit flavors include banana, strawberry, mango, peach and
mixed berry. Smoothies are occasionally topped with whipped cream or flavored syrup.
Sometimes, coffeehouses will replace fruit with coffee or espresso and add extra
flavors, like candy bars or flavored syrups.
- Orange
- Strawberry
- Pineapple
- Kiwi
- Banana
188
Food
Green Chicken Curry (With Rice) Green Chicken Curry it a favored dish
from Central Thailand, and visitors to Thailand
love it because it not too spicy and easy on the
palet. A good meal for an evening dinner, here it is
cooked with chicken legs but you can use chicken
breast instead if preferred. I recommend corn fed
chicken, it has much more flavour and a softer
texture.
Fried Rice with pork/sea food Simple local Thai food "Thai Fried
Rice with Prawns or Pork" or "Khao Pad
Goong" because quick and easy meal for
all to enjoy. Beautiful thing about fried
rice is that you can substitute prawns with
virtually anything in your pantry;
Price: 130/ 150 Baht
vegetables, beef, chicken or even plain.
Stuffed Omelet (With Rice) One of delicious dishes in Thailand that isn't
spicy is "stuffed omelet" or "khai yat sai" in Thai.
It is a little tricky making the egg envelope. It
works best with a big wok and a gas flame. In the
ingredients pictured below, you can see carrots,
onion, minced pork, tomato, coconut milk, 4 eggs
and peas in the middle.
Price: 135 Baht
Seafood/ Pork in Gravy Stir-fried noodle Seafood with Gravy
Sauce
Stir-fried noodle in Gravy Suce of
your Choice Pork, Chicken, Beef, Seafood
with Vegetable
Price: 150/ 135 Baht
Stir-fried pork with holy basil(With One of the most famous Thai dishes
Rice) around the world is this one, stir-fried pork
fried with chili and holy basil. You don’t have
to use minced pork, as variations include
chicken or beef. In Thai it is called moo pat
ga-prao. The last part refers to the basil. It is
quite simple to cook and the result is very
Price: 135 Baht delicious.
Massaman Curry (With Rice) Massaman is the Thai word for "Muslim",
which is the community to heartily thank for this
concoction of coconut milk, potatoes, roasted
peanuts, bay leaves, sugar, cinnamon, and tamarind
sauce. The meat of choice is often beef or chicken,
but because it's been embraced by the Buddhists,
Price: 150 Baht pork can also be found.
190
Tuna Sandwich
his grilled tuna sandwich is made
with rye bread, celery, onion, and
mayonnaise.
Coffee Bean
Ego coffee 250 gram Doi Chaang Coffee is a grade B Arabica. It is certified
organic, forest canopy grown, hand picked, fresh water processed, sun dried, hand
sorted and freshly roasted to ensure the highest possible quality for each cup of Doi
Chaang Coffee. Naturally low in caffeine, it has a complex and flavourful profile which
is enhanced and released through detailed cultivating, processing and roasting methods.
The Pluto Ice Cream Company Ltd. was established in 2001 at Phi Phi Island.
From the beginning we used Carpigiani's machines: Labotronic 28/42 and Pastomaster
60 because we were aiming at a high quality product. It was obvious in our opinion that
all ingredients must be of the highest quality. We used Italian ingredients from the most
important Italian brands and - under the supervision of master Italian ice-cream experts
- we arranged recipes to enable our ice-creams to become acknowledged as the best
quality ones produced in Thailand.
In 2003 we bought more Carpigiani's machines (Labo 40/60 and Pastomaster 30)
and we began to obtain wholesale customers. In 2004 we came to the conclusion that
our main business should be the wholesale market and moved our production lab to
Phuket City, in the meantime we improved our sale outlets in Phi Phi reaching a total of
4 shops. Our decision of moving the machinery to Phuket proved a great idea because at
the end of 2004 the Tsunami totally destroyed the shops in Phi Phi.
Italian Gelato
Ice-cream is a delicious and nourishing food but to obtain the best result
advanced technological equipment is necessary, able to produce an ice-cream perfect for
the palate, but most important of all, hygienically safe. Pluto Ice Cream is extremely
experienced in this area guaranteeing results by using machines and equipment
produced by undisputed world leader in this sector: Carpigiani SPA in Bologna.
The process begins whit the pasteurization of individual fresh product (milk,
eggs, cream) which establishes the mixture that must then become ice-cream. In every
type of food bacteria are presents in a natural form. These multiply very quickly in a
temperature of between 15-20 °C and 50-60 °C. Below or above this temperature,
however, the bacterial proliferation is considerably slowed down. The aim of
pasteurization is to abolish the presence of bacteria in ice-cream.
During this phase the mixture is brought to a temperature of between 65 and 85
°C (depending on the ingredients the ice-cream is composed of) and then rapidly cooled
to a temperature of approximately 4 °C.
Parallel to the pasteurization of the ingredients, when the mixture is at a
195
• shaking
• cooling
• admitting air into the mixture.
It is during this phase that the mixture solidifies forming a solid paste which kept in
continuous movement, englobing air and increasing volume developing into artisan
gelato.
The main difference between artisan gelato and industrial ice-cream is the way
in which air becomes incorporated in the mixture. In artisan gelato air is englobed in a
natural way during the stirring phase, thanks to the movement of the mixture during the
freezing stage.
On the other hand, in industrial ice-cream, air is insufflated in large quantities
into the mixture through a pump. This process of production allows the ice-cram to
double its volume (this is the reason that industrial ice-cream is sold according to
196
volume and not weight!) with the same procedure soft ice-cream, or American ice-
cream, appears softer and more voluminous regarding artisan gelato, even if its
organoleptic characteristics result of an inferior quality.
Varieties
SORBETTO
The sorbetto is a preparation composed of water, sugar, fruit juice and/or pulp
and infusions, to which milk or liqueur may be added by request.
197
GELATO
The base of fruit or cream is used with different ingredients added depending on
the two versions. The fruit version is made with milk and cream, sugar and fresh fruit;
the cream version however is prepared with milk, cream, egg yolk and sugar. Specific
ingredients are then added (chocolate, vanilla, pistachio, hazelnuts, etc.) that grant their
own characteristic taste to the gelato.
SEMIFREDDO
TARTUFO
* Creamy, in which the outer layer consists of chocolate gelato, pistachio or nuts
and the core is made of chocolate cream. Another variety exists with the addition
of crisp biscuit to the outer layer;
* Fruity in which the outer layer consists of lemon gelato, lemoncello or
strawberry and the core is a base of lemon cream or strawberry cream.
198
CASSATA SICILIANA
TIRAMISÙ
A layer of Savoiardo biscuit soaked with Illy coffee, covered with mascarpone
cream, topped with cocoa powder are the components of this splendid well-known
Italian dessert.
SOYA GELATO
This product is manufactured substituting milk and cream from animal origin
with soya milk. This gelato, produced in various flavours, is particularly directed
towards those who:
There are many advantages to Soya Gelato: the low quantity of calories
compared to traditional gelato, the added fat is of vegetable origin therefore rich in
unsaturated fatty acids and absolutely absent of cholesterol and the sugar content is of a
low percentage and doesn't include lactose.
From January 2010 we will be taking advantage of our new premises by further
expanding our range of our products, introducing new flavors (eg more typically Italian
variations) and new items (Semifreddo single portion cakes and ice cream). We are also
increasing our staff numbers to offer these new services to our clients.
199
Our shop select premium Italian Gelato Ice Cream because it is the international
tastes which is appropriate with our main customer. We will choose the taste that the
customers like but in the beginning we will choose general taste and next we will add
more tastes.
Bakery
1. Brownie Banoffee
2. Choc Special
3. Mocha Almond Praline
4. Black Forest
5. White Choc Mousse Cake
6. Dark Choc Mousse Cake
CHEESE CAKE
CHOCOLATE CAKE
1. Soft Choc
2. Choc Special
3. Crazy Oreo
4. Black Forest
5. Black Vanilla Cake
6. White Choc Mousse Cake
7. Dark Choc Mousse Cake
8. Oreo Mousse Cake
1. Brownie Banoffee
2. Orange Cake
3. Lemon Cake
4. Orange Mousse Cake
5. Blueberry Cream Cake
6. Strawberry Cream Cake
COFFEE CAKE
TEA CAKE
1. Orange Roll
2. Lemon Roll
3. Mocha Roll
4. Blueberry Roll
5. Strawberry Roll
6. Chocolate Roll
Cookie
We will cooperate with Apple Book in Karon Beach which is the biggest
secondhand book in Karon beach and it is also wholesaler. We will buy the book from
this shop and sell in the same price. First time we will order 300 units which is:
Life Time
Most coffee machines are simple devices that include a reservoir for water, a
heating element for heating the water and keeping the water warm, tubing for carrying
the water from the reservoir to the drip maker, which flows into the coffee pot and a
warming plate. You simply fill the reservoir with water, the water then heats and flows
through its tubing and coffee of your choice into the pot after you switch it on.
Depending on your needs of accessories, everything else is extra options, such as milk
frothers and wands for whipping.
Depending on the type of gourmet coffee you prefer, the amount of time, you
plan in making coffee and your budget will determine your decision of which type of
coffee machine is best for your personal, business, dorm room, entertainment or RV and
camping needs. While considering the type of coffee machine you plan to purchase, you
should also consider any accessories or gadgets you might find useful when making a
nice steaming cup of coffee or a cold cup of coffee. Coffee machines also come in a
wide variety of styles and colors to match your decor and lifestyle.
• Espresso machine
• Cappuccino machine
• Coffee pods
• Roasting machines
• Grinders
You will want a coffee machine that offers easy cleaning to lengthen the lifetime
of your coffee machine no matter which type of coffee machine you select. Make sure
you follow all the instructions of the manufacturer.
are either, steam, piston, pump or air pressure driven. They are available for stove or
counter top, which range from automatic to semi and super-automatic.
Coffee pods are those single serving that are self contained and placed inside a
coffee machine or a coffee pod machine designed especially for the use of coffee pods,
using a pressurized brewing system, are quite popular. You can make your own coffee
pods or purchase them.
Roasting machines and coffee grinders are wonderful for creating your very own
special blends to enjoy by yourself or with your friends and loved ones, at home, office,
camping or anywhere else you want to relax. They come with various means of
functioning so you can make a great cup of coffee any time you get ready.
Some of the most common problems that might cause a coffee maker to quit
working are, a bad on and off switch or power cord, clogging within the tubing,
especially with calcium. The power cord and switch are replaceable, or simply replace
the coffee machine with a new one, and running some clear vinegar through the coffee
machine helps to cut down on calcium build-ups. However, at times the temperature
sensors or heating element may give out, when this happens it is best just to replace
your coffee machine. Perhaps at that time even consider a few extra options with your
new coffee machine.
Coffee Recipe
OKey Espresso
A single shot of espresso topped with 1-2 tablespoons of foamed milk right in
the espresso cup.
OKey Americano
OKey Cappucino
Traditionally prepared with 1/3 espresso, 1/3 steamed milk and 1/3 foam in a
small cup typically 4-6 ounces in capacity. Cappuccino can be garnished with a light
sprinkle of ground chocolate, cocoa powder, cinnamon, nutmeg or vanilla powder. For
flavored cappuccino, simply add some quality coffee syrup such as Monin to taste.
OKey Macchiato
Ingredients
Directions
Pour each shot of espresso into a mug. To each mug, add 1/4 cup of the heavy cream
and 1/4 cup of the chocolate liqueur. Top each mug with a dollop of whipped cream and
a sprinkling of cocoa powder.
Whipped Cream:
Using an electric mixer, whip the cream in a large bowl until soft peaks form.
Add the vanilla and the sugar and continue to beat until it reaches the consistency of
whipped cream.
The macchia is the little 'spot' of crèma being left on top of the milk to clearly
distinguish that is a latte macchiato and not a cafè latte, where the espresso traditionally
has been added before the milk, hence having no "mark".
• "Latte macchiato" can be correctly used to describe the Starbucks drink branded
as a "caramel macchiato". This drink is made by combining vanilla flavored
syrup with steamed milk and then pouring the espresso on top of the milk, then
topping it all off with caramel sauce.
• Other flavors are made using a similar method with a different flavored sauce
topping. The sauce then melts from the heat of the espresso directly under it and
seeps down into the drink.
OKey Mocha
Mix 1/3 part espresso to 2/3 part steamed milk, after dissolving cocoa or
chocolate syrup with the milk to taste.
OKey Latte
Ingredient
Mothod
In a large airtight container, mix ingredients together well until even colored and
no streaks remain. Cover tightly in a snap top container and keep away from humidity.
Store a plastic 1/4 or 1/3 measuring cup in the container for convenient measuring. To
prepare, measure out 1/4 or 1/3 cup of the mix and stir into 1 cup boiling water. Makes
many servings and keeps indefinitely. Variation: For extra rich hot chocolate, add 1/4
cup ground chocolate powder or unsweetened cocoa.
INGREDIENTS
INSTRUCTIONS
1. Combine milk and cream in a small saucepan over medium heat and cook until
simmering, about 4 minutes.
2. Add chocolate and whisk until completely melted, about 2 minutes. Whisk in
caramel sauce until incorporated. Serve immediately.
Ingredients
• 1 cup milk
• 1 teaspoon vanilla extract
• 2 tablespoons white sugar
210
Directions
1. In a large mug, stir together the milk, vanilla and sugar. Heat in the microwave
on full power for 1 minute and 30 seconds. Stir in nutmeg, and serve hot.
Ingredients
Directions
1. In sealable jar, combine instant coffee, sugar and warm water. Cover the jar and
shake until it is foamy. Pour into a glass full of ice. Fill the glass with milk.
Adjust to taste if necessary.
Mix a single espresso shot (cooled) with 2-3 teaspoons cocoa, 1/2 t vanilla
extract and 1-cup cold milk. Pour over ice in a tall glass and top with whipped cream.
Ingredients
• 3 ounces espresso
• 6 to 8 ice cubes
• 3 to 4 ounces whole milk
• 3 to 4 ounces milk froth, steamed and foamed
Directions
Using an espresso bean grinder, grind some espresso beans to make 1 tablespoon of
ground coffee. Using a commercial espresso machine, put the 1 tablespoon of ground
coffee into the portafilter (the cupped handle) and tamp the grounds lightly. Insert the
portafilter into the machine and place your glass or cup underneath. Set the machine for
a double shot and turn it on to extract the espresso, which should be a thick golden
brown crema. Add 6 to 8 ice cubes to a mixing glass and pour the espresso over the
cubes. Stir to bring the temperature down. Using a spoon or strainer, strain the cooled
espresso into a serving glass, leaving the ice behind (if desired, ice can be included or
added later). Add the cold milk to the cooled espresso in the serving glass. Using the
steam wand of the espresso machine, steam the whole milk so that a tight, small-bubble,
microfoam is created. Using a spoon, add only the tight microfoam (about 3 to 4 ounces
or an amount equal to the other parts) to the milk and espresso. Serve without any
garnishes so as not to mask the delightful flavors. Serve immediately.
212
OKey Mocha
Ingredients
Directions
Stir chocolate syrup into hot coffee until melted. Transfer to a blender, add half and
half and ice cubes, and blend at high speed for 2 to 3 minutes. Serve immediately in a
tall, cold glass.
Ingredients
Directions
Combine the espresso, flavored simple syrup, and milk in a small pitcher. Fill each
of the mason jars with crushed ice. Pour the latte mixture over the ice and serve
immediately.
213
Instructions
1. Combine ice, coffee, and sugar in a blender, blending until well-blended and
smooth.
2. Add syrup and blend.
3. Pour into large glass.
4. Add whipped cream for garnish.
Ingredient
4 cupschilled coffee
4 tbspinstant chocolate milk
1 1/2 cups milk
1/2 cup whipped cream
4 scoops vanilla ice cream
Pour chilled coffee, milk, and instant chocolate milk powder into a blender. Mix
together. Add whipped cream and ice cream, and blend together at 'frappe' setting. Pour
into a coffee mug. Garnish with whipped cream, nutmeg, cinnamon, or chocolate
shavings.
214
OKey Vanilla
Place everything in a blender, blend well, pour into a tall glass, over more ice
cubes if you like, and serve with a straw.
** The easiest way to measure out small liquid quantities is to use eye droppers type
dispensers. I keep my old bottles of tinctures with their eye droppers for using in other
applications, such as a recipe like this! You can purchase eye dropper dispensers at
many natural food stores or herb stores (if they don't carry them in stock, ask if they can
order a few for you - they're great to have around).
OKey Tiramisu
Combine all ingredients in a blender and blend until desired. Top with whipped
cream and white chocolate shavings :)
Ingredients
• 2 tablespoons cocoa
• 2 teaspoons cornflour
• 1/4 cup sugar
• 2 cups milk
Directions
1. 1 In a saucepan combine first 3 ingredients with a small bit of the milk, to form
a lump free paste.
2. 2 Add rest of the milk and bring to boil,.
3. 3 Remove and let cool.
4. 4 Refrigerate until chilled.
5. 5 Serve in a large glass with ice cream and whipped cream sprinkled with grated
chocolate.
6. 6 Can easily be double, tripled, etc.
Thai Tea is a real favorite in Thailand. When you buy Thai Tea on the street,
you normally get it in a small plastic bag with a straw. Since it's very easy to make it
just like you find in Thailand, you can avoid paying $3.50 to Starbucks.
1-2tablespoonsThai tea
1 tablespoon sweet condensed milk
1 tablespoon sugar
216
1 teaspoon milk
1 cup hot water
Add sugar and sweet condensed milk to a glass or cup. Put one tablespoon of
Thai tea to a tea sock. Place the tea sock directly above the glass. Pour hot water into the
tea sock. Set the tea sock aside. Stir until the sugar and sweet condensed milk are
dissolved. Add ice and top the tea with milk.
1-2tablespoonsThai tea
2 tablespoonssugar
1 cup hot water
Add sugar to a glass or cup. Put one tablespoon of Thai tea to a tea sock. Place
the tea sock directly above the glass. Pour hot water into the tea sock. Set the tea sock
aside. Stir until all the sugar is dissolved. Add ice.
Food Recipe
Ingredients
• 40 g bean sprouts
• 2 green onions, sliced
• 2 tablespoons chopped peanuts
Directions
- Place the rice stick noodles in a bowl and cover with boiling water.
- Add the eggs, swirl, stir gently and cook until just set.
- Add the remaining oil, ginger and chilli to the wok and cook for 1
minute.
- Add the prawns and cook for 3 minutes or till they start to turn pinkish.
- Add the noodles, lemon juice, fish sauce and sugar and cook for another
3 minutes.
Ingredients
Direction
1. Wash and clean prawns by remove its shell except shell at tail for
beautification.
2. Clean straw mushroom and cut it to 4 pieces of half up to its size.
3. Boil chicken rib soup then put lemongrass, galangal and prawn. Wait until
prawns are cooked about 4 minutes then put straw mushroom, kaffir lime leaves
and fish sauce. Put it down from the stove.
4. Seasoning with lemon juice and pound chili bird.
5. Decorated with chopped coriander and serve with warm rice.
Ingredients :
Direction :
Ingredients
• 1 (6 ounce) boneless pork loin chop, cut into 1/2 inch pieces
• 1/4 cup finely chopped carrot
• 1/4 cup chopped fresh broccoli
• 1/4 cup frozen peas
• 1 green onion, chopped
• 1 tablespoon butter
• 1 egg, beaten
• 1 cup cold, cooked long-grain rice
• 4 1/2 teaspoons reduced-sodium soy sauce
• 1/8 teaspoon garlic powder
• 1/8 teaspoon ground ginger
Directions
In a large skillet, saute the pork, carrot, broccoli, peas and onion in butter until
pork is no longer pink. Remove from skillet and set aside. In same skillet, cook and stir
egg over medium heat until completely set. Stir in the rice, soy sauce, garlic powder,
ginger and pork mixture; heat through.
Ingredients
- 1 Small Onion
- To taste Salt
- A pinch Ajinomoto
- 4 Cups Water
- 4 Tbsp Cooking Oil
- 1 Tsp Soya Sauce
Direction
1. Use uncooked frozen shrimp without tail and head. Chop French beans. Peel
and cut carrot into 1.5 inch long thin strips. Chop onion and green chili finely.
2. Wash and soak rice in four cups of water for one hour.
3. Cook rice till almost done but not fully.
4. Heat oil and fry onion, grated ginger and green chili lightly. Add carrot and
beans and cook for three minutes.
5. Add shrimp and cook for two minutes, add cooked rice and salt. Fry for
fifteen minutes with stirring. Add Soya sauce and ajinomoto. Mix well. Serve hot.
Stuffed Omelet
Ingredients
- 2 eggs
- 4-5 tbsp. diced mushrooms, green peppers or cooked vegetables
- 1 onion finely chopped
- dash of grated cheese
- dash of pepper
- salt to taste
Direction
Ingredients
• 1 lb boneless chicken thighs, coarsely chopped, or cut into small bite-size pieces
• 4-6 cloves garlic, finely chopped
• 2-3 shallots, thinly sliced (or substitute with 1/2 cup sliced onion)
• 2-3 tbsp peanut oil for stir-frying
• 2 tsp black soy sauce (the semi-sweet kind, siew dohm)
• 1-2 tbsp Thai fish sauce (nam bplah), to taste (Golden Boy brand is
recommended)
• 1 cup fresh Thai holy basil (bai gka-prow), or substitute with: 1/4 cup dried
holy basil, soaked to soften plus 1/2 to 1 cup fresh Thai sweet basil (bai horapa)
• 2 small kaffir lime leaves (bai ma-gkrood), very finely slivered (optional)
• 5-10 Thai chillies (prik kee noo), chopped and pounded with a mortar and
pestle; or 2-3 fresh jalapeno or fresno peppers, cut into large slivers
• Dash of ground white pepper
Preparation
Prepare the ingredients as indicated. Leave the fresh basil leaves whole; the flowers
may also be used. The dried holy basil will soften when soaked in tap water for 10-15
223
minutes. Pull off and discard the hard stems. Drain. Heat a wok until the surface is
smoking hot. Swirl in the oil to coat the wok surface. Wait a few seconds for the oil to
heat, then stir in the garlic, followed a few seconds later with shallots. Stir another few
seconds before adding the chicken. Stir-fry a minute or two, or until most of the chicken
has started to change color on the outside and is no longer pink. Toss in the chillies,
slivered kaffir lime leaves and reconstituted dried holy basil (if using). Sprinkle black
soy sauce over the mixture and stir-fry another 15-20 seconds. Then add fresh basil
leaves and fish sauce to taste. Stir and mix well. Stir-fry another half a minute, or until
the basil is wilted and the chicken is cooked through. Sprinkle with white pepper. Stir
and transfer to a serving dish, or spoon directly over individual plates of plain steamed
rice.
Massaman Curry
Ingredients (serves 4)
Method
1. Heat oil in a large saucepan over medium-high heat until hot. Add beef. Cook,
stirring constantly, until evenly browned. Transfer to a plate. Add 2 tablespoons
coconut cream to pan. Cook over medium heat for 20 seconds or until hot. Add
curry paste. Cook for 1 minute or until aromatic.
2. Return beef and juices to pan. Add coconut milk, stock, peanuts, potatoes,
cinnamon stick, bay leaves, cardamom pods, sugar, tamarind concentrate, fish
sauce and remaining coconut cream. Stir to combine.
3. Reduce heat to low. Cover and simmer, stirring occasionally, for 1 1/2 to 2 hours
or until beef is tender. Serve with rice.
American Braakfast
Ingredients
1 ½ lb ground pork
¾ tsp salt
½ tsp freshly ground pepper
1 tsp dried sage
1 tsp dried marjoram
Direction
1) In a large bowl, combine the pork, salt, pepper, sage and marjoram and mix well with
a fork. Knead the sausage into a large ball. (Taste for seasoning by pinching off an
olive-size piece of sausage and placing it in a small nonstick skillet. Cook the small
piece over medium heat, turning often, until it's no longer pink in the center, 3 to 5
minutes. Taste, then add additional salt, pepper or herbs to the sausage mixture as
desired.)
225
2) Cover the bowl with plastic wrap and chill the uncooked sausage mixture for 1 hour.
Using your hands, form the meat into 24 uniform balls, then flatten each into a patty.
3) Place 8 of the patties in a large nonstick skillet and cook over medium heat until
browned and cooked through, about 5 minutes per side. Drain on paper towels, repeat
with the remaining patties and serve.
1. Step 2: Sausages
We start with our sausages. Quality is crucial here - go for ones with a high
percentage of pork and natural ingredients.
They'll take the longest to cook of all our ingredients, around 12 minutes, with
regular turning required. They make a lovely, reassuring sizzle as they fry.
226
2. Step 3: Mushrooms
Wash and slice the mushrooms. Add them to some preheated vegetable oil in a
separate frying pan, then stir and toss them on a gentle heat for about 5 minutes.
After that, consign them to a warm plate until the rest of the fry-up is finished,
which won't be long now. Because things are really starting to hot up.
3. Step 4: Bacon
Bacon next; when the sausages have been frying for 8 minutes, add the rashers
to the same pan and turn them every minute or two.
As soon as your bacon's under way, the baked beans go on the stove. They
require a gentle heat and plenty of stirring.
5. Step 6: Eggs
While you keep an eye on all that sizzling and bubbling, replenish the other
frying pan with oil and put it on a medium heat in readiness for the eggs.
Keep turning the bacon and stirring the beans; then crack one egg... and two,
into the empty frying pan. Transfer it to the hottest plate on the stove if
necessary - keep stirring those beans! And we're nearly done.
The final touch is to get your spatula and splash hot oil over the eggs until the
yolks go opaque. This is a sure sign that they're cooked properly.
6. Step 7: Serve
Add it all to the plate with the mushrooms on and get ready for the Full English
experience.
Try a little tomato ketchup or brown sauce for the finishing touch to the perfect
fried breakfast.
Ingredients
Method
Tuna Sandwich
Ingredients:
Ingredients
Directions
1. Bring a large pot of lightly salted water to a boil. Add pasta and cook for 5 to 8
minutes or until al dente. Drain.
2. Heat olive oil in a large skillet over medium heat. Add chicken pieces, and cook,
stirring until browned on the outside. Stir in the garlic, basil, Cajun seasoning,
salt, and pepper, then mix in the tomatoes. Cook until tomatoes are semi soft,
229
and chicken is cooked through. Toss with pasta, and serve with crumbled feta
cheese on top.
Ingredients
Directions
Heat olive oil in a large skillet over medium-high heat. Add beef, pork, onion,
green pepper, and garlic and sauté until browned, about 10 minutes. With a slotted
spoon to drain off the fat, place the sautéed ingredients in a 4 quart saucepan. Add the
remaining ingredients and mix well. Slowly bring to a boil, reduce heat, cover, and
simmer for 2 hours.
230
Ingredients:
Preparation:
1. Pour spaghetti sauce into a heavy saucepan. Heat over medium heat until just
starting to bubble around the edges.
2. Add cream. Reduce heat to medium-low and let simmer 15 minutes.
3. Stir in cheese.
4. To make a chiffonade, roll stack a few fresh basil leaves on top of each other.
Roll up tightly like a cigar. Slice from the short end to make strips. Sprinkle on
top of pasta for garnish.
When the customer entry to our shop, the staff will say greeting with good
welcome, then customer can order the favorite menus which we provide to them. We
sure that our staffs can provide high quality of good service when the customer entry to
our store because we have to train our staff well and we are focus on the service mind
that we want the customer impress with everything of our shop because it can cause
word of mount to gain our customer and they will come back to visit our shop again and
again.
There are Internet Café which are 3 computer cases and Free Wi – Fi for our
customers that they can enjoy with their searching. The internet café fee:
4.1.3 Location
OKey Coffee is located on Karon Beach, Patak Road, T. Karon, Muang District
and it is also in front of the beach and near Karon Circle Traffic which it is the main
road of the beach. There are many tourists there. Our coffee store is on right hand side
of Karon Circle traffic which are the orange building on corner. It is on the way to
Patong beach and it is very easy to see.
OKey coffee rent the Green Room of building which front width 10 M, long 5
M. It is on the second floor of the building. The price is 20,000 Baht per month which
this price set by the Karon Municipality of Phuket because this building is own by
government.
236
We provide out side atmosphere to impress the view of the beach for our
customer that there are 8 chairs like mini bar a long shop 10 M, sitting in front of the
beach so the customer will enjoy to drink our coffee with good surrounding. There are
237
black broad that write about our introducing menus or special information of our store
for customers.
This is our counter bar zone that there are coffee equipment, ice cream freezer,
bakery display cabinet and chair to provide the customers.
4.1.5 Machine/Tools/Equipment
(Source: http://
www.phuketbranches.com)
Plug • Size 3M
Television - Size 32
Computer Table
• Size 80x60x75 cm
more)
• Snapshot button for capturing photos
• Universal clip fits notebooks, LCD or CRT
monitors
• 6-foot cable length
• Compatible with Microsoft Windows XP (SP2
or higher), Windows Vista, or Windows 7 (32
& 64-bit)
• Warranty 3 months
Price 999 baht
Black Board
(Source: http://www.hillkoff.com)
Versatility
The Blendtec Smoother ™ was designed with you in
mind. No need to purchase a different machine if you
change the layout of your counter. Put the Blendtec
Smoother ™ anywhere it's versatile.
Footprint Dimensions
Above-counter placement: 9"w X 9"d X 17"h
In-counter placement: 9"w X 9"d X 11" h
(Source: http://www.hillkoff.com)
Pitcher: TIAMO PITCHER
- Capacity : 700 cc
- Material : Stainless Steel and Milk Frothing
(Source: http://www.hillkoff.com)
Tamper Hanger
(Source: http://www.hillkoff.com)
252
(Source: http://www.hillkoff.com)
(Source: http://www.hillkoff.com)
Cooking and Frothing Thermometers
- Frothing thermometers 24 V
- 10 minutes frothing
(Source: http://www.hillkoff.com)
253
(Source: http://www.hillkoff.com)
(Source: http://www.hillkoff.com)
Grinder Cleaning Brush
(Source: http://www.hillkoff.com)
Cafiza Espresso Machine Cleaner
Powder
254
(Source: http://www.hillkoff.com)
Checker
- Size: 20 Oz
Size: 20 onz - Material: Stan less
Material: Stand less
(Source: http://www.hillkoff.com)
255
(Source: http://www.hillkoff.com)
Milk Jigger
- Size: Small
PRICE: 90 Baht
(Source: http://www.hillkoff.com)
Cocoa Mill
- Size: 296 ML (10 Oz)
Size: 20 onz - Height: 10 cm
PRICE: 145 Baht - Material: Stan less
(Source: http://www.hillkoff.com)
Sugar Sprinkle
Material: Stand less
Size: 20 onz
Material: Stand less
(Source: http://www.hillkoff.com)
256
Sprinkle
PRICE: 35 Baht
(Source: http://www.hillkoff.com)
Topping Bottle
Size: 700 ML
Size: 20 onz
Material: Stand less
Material: Plastic – Grade A
PRICE: 30 Baht
(Source: http://www.hillkoff.com)
Topping Bottle
Size: 1 – 2 Oz
Size: 20 onz
Material: Stand less
PRICE: 70 Baht
(Source: http://www.hillkoff.com)
Coffee Bean Spoon
Size: 7 g
Size: 20 onz
Material: Stand less
PRICE: 50 Baht
(Source: http://www.hillkoff.com)
257
Size: 8 g
Size: 20 onz
Material: Stand less
(Source: http://www.hillkoff.com)
Size: 20 onz
Material: Stand less
PRICE: 49 Baht
(Source: http://www.hillkoff.com)
Tea Spoon
Size: 20 onz
Material: Stand less
PRICE: 25 Baht
(Source: http://www.hillkoff.com)
Coffee Spoon - Width: 2.5
- Length: 11.6
- 12 units (pack)
PRICE: 720 Baht
258
Syrup Pump
(Source: http://www.hillkoff.com)
Size: 20 onz
Mat: Stand less
PRICE: 80 Baht
(Source: http://www.hillkoff.com)
Straw Box
- Size: Standard
Size: 20 onz
- Material: Wood
Mat: Stand less
PRICE: 850 Baht
(Source: http://www.hillkoff.com)
(Source: http://www.sairungdesign.com)
259
Coffee Cup
- Height: 7.8 cm
- Width: 8.5 cm / 15 cm
Size: 20 onz
- Water Goblet 248 ml
Mat: Stand less
PRICE: 50 Baht
(Source: http://www.sairungdesign.com)
Iced Beverage
- Height: 15 cm
- Width: 7.55 cm
Size: 20 onz
- Water Goblet 14 Oz (405 ml)
Mat: Stand les
PRICE: 30 Baht
(Source: http://www.sairungdesign.com)
Smoothie Glass
Or Fruit Juice
- Height: 16.6 cm
- Width: 6.4 cm
- Water Goblet 15 Oz (425 ml)
Size: 20 onz
PRICE: 115 Baht
(Source: http://www.sairungdesign.com)
(Source:http://www.mr-stainless.net)
260
0
266
(Source:
http://www.biggelato.plazathai.com)
Ice-Cream Dipper
- Size: 20/ 70 g/ 4 Oz
Size: 20 onz
PRICE: 300 Baht
(Source:
http://www.biggelato.plazathai.com)
267
Size: 20 onz
PRICE: 173 Baht
(Source:
http://www.biggelato.plazathai.com)
Size: 20 onz
PRICE: 48 Baht
(Source:
http://www.biggelato.plazathai.com)
Sunday Glass
Size: 20 onz
PRICE: 678 Baht
per Deozen
(Source:
http://www.biggelato.plazathai.com)
268
Size: 20 onz
PRICE: 58 Baht
(Source:
http://www.biggelato.plazathai.com)
Kitchen
- Width 30 cm
Pot: Zebra
- Contain 9.2 liter
- Deep 3 inch
Price 68 baht
- Thick: 1 mm
Dessert Fork: Zebra
- Long: 13.5 cm
Price 41 baht
272
Spade: Zebra
Price 78 baht
- Width: 7 inch (17 cm)
Bowl: Zebra
Gas Stove:
OTTO
(Source: http://www.biggelato.plazathai.com)
(Source:
http://www.hillkoff.com)
Dessert Dish
PRICE: 45 Baht
274
Toilet
Price:
2,500 Baht
services and related information between the point of origin and the point of
consumption in order to meet customer & legal requirements. A professional working in
the field of logistics management is called a logistician.
Actually the Doi Chang Coffee Company is in Chiang Rai which is in the north
of Thailand but nowadays There are the distributors in northern part and central part that
are in Bangkok and they sell in the same price and after I contact to the company about
the logistic, they tell to order from Bangkok because the distance is nearer than Chiang
Rai and it can save cost so our company will order from Bangkok
Coffee bean and Ego coffee bean, we order from Doi Chang Coffee Original
Company Limited, Branch 2 39/545 Moo 13, Ladprao Wanghin Raod, Ladprao
Bangkok 10230.
The logistic cost is free because we order more than 10 Kilograms so we do not
pay for any fees. This is the way of logistic of our company:
Ice cream, we order from Pluto, premium Italian gelato ice cream that it is at
34/58 Sakdidet Road, Moo 1, T. Vichit, A. Muang, Phuket 83000.
278
Cost of utilities
Advertisement’s Tax
Rental Rate
- The rental rate is 20,000 Baht per month and prepaid rental free is 1 year
that there are 240,000 Baht
Billboard of Company
The logo cost design of OKey Coffee is 2, 500 Baht. The logo of our company
is classic style that it is unique with coffee bean and name of our company which it
makes our customer to remember easily and it is the image of real Arabica of OKay
Coffee. The billboard cost of our company is 5,000 Baht.
Billboard tax
We need to pay billboard at Karon Municipality, No. 1 Kata Road, T. Karon, Muang
Phuket 83100. Telephone no. 667-633-0189
39 1 7,095 7,095
Printer
40 1 120,000 120,000
Coffee Shop POS Systems and
Coffee Shop Software
41 - - 25,000
Other Coffee Equipments
Total 749,082
4.3.2 Depreciation
Investment Amount Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Design/ Decoration/ 380,000 3,167 3,167 3,167 3,167 3,167 3,167 3,167 3,167 3,167 3,167 3,167 3,167 38,000
Painting/ Counter/
Equipment Setting
Service and Others
Tools and
Equipments
Kitchen Tools 60,450 1,008 1,008 1,008 1,008 1,008 1,008 1,008 1,008 1,008 1,008 1,008 1,008 12,090
and
Equipments
Toilet Tools 14,224 237 237 237 237 237 237 237 237 237 237 237 237 2,845
and
Equipments
Total 1,535,460 23,152 23,152 23,152 23,152 23,152 23,152 23,152 23,152 23,152 23,152 23,152 23,152 277,829
Investment Amount Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Design/ Decoration/ 380,000 3,167 3,167 3,167 3,167 3,167 3,167 3,167 3,167 3,167 3,167 3,167 3,167 38,000
Painting/ Counter/
Equipment Setting
Service and Others
Coffee Brewing 460,000 7,667 7,667 7,667 7,667 7,667 7,667 7,667 7,667 7,667 7,667 7,667 7,667 92,000
Machine
Coffee Grinder 29,000 483 483 483 483 483 483 483 483 483 483 483 483 5,800
Blender 50,000 833 833 833 833 833 833 833 833 833 833 833 833 10,000
POS System 133,694 2,228 2,228 2,228 2,228 2,228 2,228 2,228 2,228 2,228 2,228 2,228 2,228 26,739
Other Coffee 76,388 1,273 1,273 1,273 1,273 1,273 1,273 1,273 1,273 1,273 1,273 1,273 1,273 15,278
Equipments
and Tools
Ice Cream 48,611 810 810 810 810 810 810 810 810 810 810 810 810 9,722
Tools and
Equipments
Kitchen Tools 60,450 1,008 1,008 1,008 1,008 1,008 1,008 1,008 1,008 1,008 1,008 1,008 1,008 12,090
and
Equipments
Toilet Tools 14,224 237 237 237 237 237 237 237 237 237 237 237 237 2,845
and
Equipments
Total 1,535,460 23,152 23,152 23,152 23,152 23,152 23,152 23,152 23,152 23,152 23,152 23,152 23,152 277,829
293
Investment Amount Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Design/ Decoration/ 380,000 3,167 3,167 3,167 3,167 3,167 3,167 3,167 3,167 3,167 3,167 3,167 3,167 38,000
Painting/ Counter/
Equipment Setting
Service and Others
Kitchen Tools 60,450 1,008 1,008 1,008 1,008 1,008 1,008 1,008 1,008 1,008 1,008 1,008 1,008 12,090
and
Equipments
Toilet Tools 14,224 237 237 237 237 237 237 237 237 237 237 237 237 2,845
and
Equipments
Total 1,535,460 23,152 23,152 23,152 23,152 23,152 23,152 23,152 23,152 23,152 23,152 23,152 23,152 277,829
295
- Vanilla
- Hazel Nuts
- Butter Scotch Caramel
- Blue Culacao
- Caramel
- Macadamia Nut
- French Vanilla
- Cinnamon
- Toast Hazelnut
- Peppermint
- Rum
- English Toffee
- White Chocolate
297
7 45/ 450 g
Black Thai Tea
15 Tea
• Earl Grey 155/ 1 box 25
bags
• English Breakfast
• Peppermint
• Earl Grey Lavender
• Darjeeling
• Formosa Oolong
• Herbal Lemon
16 Orange
20 - 25 baht / kg
299
18 Strawberry 145/ kg
22 Carrot 30/ kg
24 Ice 2/kg
PRICE: 22 Baht
(Source: http://www.hillkoff.com)
- 100 pieces
Size: 20 onz
Mat: Stand less
PRICE: 20 Baht
(Source: http://www.hillkoff.com)
301
PRICE: 30 Baht
(Source: http://www.hillkoff.com)
Size: 20 onz
Mat: Stand less
PRICE: 40 Baht
(Source: http://www.hillkoff.com)
Hot Cover
Size: 20 onz
PRICE: 55 Baht
(Source: http://www.hillkoff.com)
- Size: 8 Oz / 50 pieces
Size: 20 onz
PRICE: 60 Baht
(Source: http://www.hillkoff.com)
302
Iced Cup
Size: 16 Oz / 50 pieces
Size: 20 onz
Mat: Stand less
PRICE: 85 Baht
(Source: http://www.hillkoff.com)
Coffee Filter Paper
- 100 pieces
Size: 20 onz
Mat: Stand less
PRICE: 85 Baht
(Source: http://www.hillkoff.com)
Cafiza Espresso Machine Cleaner Cafiza™ Espresso Machine Cleaner
Powder Powder for cleaning group heads and filters on
you espresso machine.
- Concentrated formula eliminates residue in
group heads, valves, and lines.
- Integral to the daily back-flush regimen.
- Foam and solubility balanced for optimal
rinsing.
PRICE: 750 Baht - NSF certified for metal compatibility and
safety.
(Source: http://www.hillkoff.com) - Available online in 20 oz. containers.
- Size: 566 g.
Dishwashing Liquid
PRICE: 27 Baht
303
Pen: Laser
Sale forecast per day x cost of product x 30 = Product operating cost of each
month
304
Year 2011
Sale Volume
Products and Service Per Month Cost Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Beverage 26.25 775 780 785 785 790 785 790 795 795 800 1,085 1,550 10,515
Food 60 620 625 630 630 620 625 610 620 625 630 775 930 7,940
Coffee Bean 90 5 7 7 7 5 5 4 6 7 6 9 10 78
Bakery 90 465 470 475 480 460 465 470 470 475 485 495 620 5,830
Ice Cream 25 620 630 800 1050 450 460 465 460 465 475 600 900 7,375
Secondhand Book 90 155 155 157 160 140 140 155 150 160 160 175 180 1,887
Internet Service 25 186 130 140 150 124 128 125 129 135 140 145 170 1,640
Year 2011
Operating Cost
Products and Service Per Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Beverage 20,345 20,475 20,606 20,606 20,737 20,606 20,737 20,868 20,868 21,000 28481 40,687 276,016
Food 37,200 37,500 37,800 37,800 37,200 37,500 36,600 37,200 37,500 37,800 46,500 55,800 476,400
Coffee Bean 450 630 630 630 450 450 360 540 630 540 810 900 7,020
Bakery 41,850 42,300 42,750 43,200 41,400 41,850 42,300 42,300 42,750 43650 44,550 55,800 524,700
Ice Cream 15,500 15,750 20,000 26,250 11,250 11,500 11,625 11,500 11,625 11,875 15,000 22,500 184,375
Secondhand Book 13,950 13,950 14,130 14,400 12,600 12,600 13,950 13,500 14,400 14,400 15,750 16,200 169,830
Internet Service 4,650 3,250 3,500 3,750 3,100 3,200 3,125 3,225 3,375 3,500 3,625 4,250 42,550
Total 133,945 133,855 139,416 146,636 126,737 127,706 128,697 129,133 131,148 132,765 154,716 196,137 1,680,891
305
Year 2012
Sale Volume
Products and Service Per Month Cost Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Beverage 26.25 2,480 2,010 2,100 2,200 800 790 750 765 795 800 1,800 2,850 18,140
Food 60 1,200 1,000 900 1,000 700 600 590 700 780 800 1,000 1,550 10,820
Coffee Bean 90 12 9 8 10 5 5 4 5 6 8 12 18 102
Bakery 90 775 700 720 750 500 520 485 470 475 600 750 800 7,545
Ice Cream 25 950 850 800 1,100 450 400 465 460 465 500 900 950 8,290
Secondhand Book 90 250 220 190 200 150 155 165 150 175 180 250 300 2,385
Internet Service 25 500 460 450 480 200 250 300 320 300 400 500 580 4,740
Year 2012
Total Operation Cost
Products and Service Per Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Beverage 65,100 52,763 55,125 57,750 21,000 20,738 19,688 20,081 20,869 21,000 47,250 74,813 476,177
Food 72,000 60,000 54,000 60,000 42,000 36,000 35,400 42,000 46,800 48,000 60,000 93,000 649,200
Coffee Bean 1,080 810 720 900 450 450 360 450 540 720 1,080 1,620 9,180
Bakery 69,750 63,000 64,800 67,500 45,000 46,800 43,650 42,300 42,750 54,000 67,500 72,000 679,050
Ice Cream 23,750 21,250 20,000 27,500 11,250 10,000 11,625 11,500 11,625 12,500 22,500 23,750 207,250
Secondhand Book 22,500 19,800 17,100 18,000 13,500 13,950 14,850 13,500 15,750 16,200 22,500 27,000 214,650
Internet Service 12,500 11,500 11,250 12,000 5,000 6,250 7,500 8,000 7,500 10,000 12,500 14,500 118,500
Total 266,680 229,123 222,995 243,650 138,200 134,188 133,073 137,831 145,834 162,420 233,330 306,683 2,354,007
306
Year 2013
Sale Volume
Products and Service Per Month Cost Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Beverage 26.25 3,100 2,800 2,900 3,000 1,000 800 750 770 800 800 2,500 3,100 22,320
Food 60 1,500 1,250 1,000 1,300 750 680 590 680 800 830 1,300 1,550 12,230
Coffee Bean 90 24 18 12 15 6 7 8 9 11 12 20 28 170
Bakery 90 1,000 900 850 900 500 590 550 470 500 600 1,000 1,100 8,960
Ice Cream 25 1,200 1,100 1,000 1,150 500 450 465 460 465 500 1,000 1,250 9,540
Secondhand Book 90 300 250 200 230 150 155 165 150 175 180 280 330 2,565
Internet Service - 3 cases 25 930 850 800 900 300 250 300 320 300 400 600 900 6,850
Year 2013
Operating Cost
Products and Service Per Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Beverage 81,375 73,500 76,125 78,750 26,250 21,000 19,688 20,212 21,000 21,000 65,625 81,375 585,900
Food 90,000 75,000 60,000 78,000 45,000 40,800 35,400 40,800 48,000 49,800 78,000 93,000 733,800
Coffee Bean 2,160 1,620 1,080 1,350 540 630 720 810 990 1,080 1,800 2,520 15,300
Bakery 90,000 81,000 76,500 81,000 45,000 53,100 49,500 42,300 45,000 54,000 90,000 99,000 806,400
Ice Cream 30,000 27,500 25,000 28,750 12,500 11,250 11,625 11,500 11,625 12,500 25,000 31,250 238,500
Secondhand Book 27,000 22,500 18,000 20,700 13,500 13,950 14,850 13,500 15,750 16,200 25,200 29,700 230,850
Internet Service 23,250 21,250 20,000 22,500 7,500 6,250 7,500 8,000 7,500 10,000 15,000 22,500 171,250
Total 343,785 302,370 276,705 311,050 150,290 146,980 139,283 137,122 149,865 164,580 300,625 359,345 2,782,000
307
Staff Recruiting
Management Staff:
- Manager
- Cashier
Kitchen Staff:
- Chef
- Barista
- Service Staff (Waiter and Waitress)
Operating Hours
4.6.2 Bonus
4.6.6 Telephone
4.6.7 Internet
- The shirt prices is 220 per a pieces and our staff will get 3 shirt for each
one so there are 6 staff of our store we need to make 18 shirt. We will give to them
every 2 years.
- Total of shirt staff is 3,960 Baht per 2 year
311
Year 2011
Organization Expense
Organization Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Expense
Salary 52,500 52,500 52,500 52,500 52,500 52,500 52,500 52,500 52,500 52,500 52,500 52,500 630,000
Bonus 7,600 7,600
Electric Supply 6,000 6,300 6,300 6,300 6,500 6,500 6,500 6,500 6,500 6,500 7,000 7,000 77,900
Water Supply 400 480 480 480 480 480 480 480 480 480 530 550 5,800
Drinking Water 1,500 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,800 1,800 19,500
Telephone 500 400 400 400 400 400 400 400 400 400 450 600 5,150
Internet 690 690 690 690 690 690 690 690 690 690 690 690 8,280
Staff Shirt 3,960 3,960
Total 65,550 61,970 61,970 61,970 62,170 62,170 62,170 62,170 62,170 62,170 62,970 70,740 758,190
312
Year 2012
Organization Expense
Organization Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Expense
Salary 52,500 52,500 52,500 52,500 52,500 52,500 52,500 52,500 52,500 52,500 52,500 52,500 630,000
Bonus 7,600 7,600
Electric Supply 7,200 7,200 7,200 7,200 6,800 6,800 6,800 6,800 6,600 6,700 7,500 8,000 84,800
Water Supply 520 520 520 520 500 500 500 500 500 500 570 650 6,300
Drinking Water 1,900 1,800 1,800 1,800 1,700 1,700 1,700 1,700 1,700 1,700 2,000 2,200 21,700
Telephone 500 400 400 400 400 400 400 400 400 400 550 600 5,250
Internet 690 690 690 690 690 690 690 690 690 690 690 690 8,280
Staff Shirt
Total 63,310 63,110 63,110 63,110 62,590 62,590 62,590 62,590 62,390 62,490 63,810 72,240 763,930
313
Year 2013
Organization Expense
Organization Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Expense
Salary 52,500 52,500 52,500 52,500 52,500 52,500 52,500 52,500 52,500 52,500 52,500 52,500 630,000
Bonus 7,600 7,600
Electric Supply 9,300 8,500 8,500 8,500 7,500 7,500 7,500 7,500 7,500 7,500 8,900 9,700 98,400
Water Supply 700 600 600 600 550 500 550 550 550 550 680 750 7,180
Drinking Water 2,300 2,000 2,000 2,000 1,700 1,700 1,700 1,700 1,700 1,800 2,200 2,500 23,300
Telephone 600 550 550 550 500 500 500 500 500 500 550 700 6,500
Internet 690 690 690 690 690 690 690 690 690 690 690 690 8,280
Staff Shirt 3,960 3,960
Total 70,050 64,840 64,840 64,840 63,440 63,390 63,440 63,440 63,440 63,540 65,520 74,440 785,220
314
Chapter 5
Financial Analysis
315
Chapter 7
Summary
325
Thailand coffee consumption is worth more than 4,000 million baht (US$130
million) in 2007, with an annual growth rate of 25% so hundreds of new coffee shops,
both chains and non-chains, are open every year, reflecting a continued increase in
demand for new coffee machine equipment and supplies. Thailand Coffee, Tea &
Drinks 2010 and Thailand Bakery & Ice Cream 2010 are currently the BEST and
LARGEST coffee bakery & ice cream show in the country, signifying a golden
opportunity for manufacturers/distributors of equipment and supplies for coffee, tea,
drinks, bakery, and ice cream wishing to penetrate the 80 million people market (66
million Thais and 14 million tourists). Thailand Coffee, Tea and Drinks 2010 and
Thailand Bakery & Ice Cream 2010 aims to attract more than 30,000 buyers from all
over Thailand and neighboring countries to meet entrepreneur. More than US$100,000
(three million baht) marketing and promotion budget is set to draw buyers. The show is
well supported by both local and regional trade publications, thus ensuring publicity to
the target group. Full supports from Thailand Barista Association and related
government agencies. A comprehensive coffee and bakery activities i.e. National
Thailand Barista Championship, Bakery Competition. We can see many opportunities
why this project should launch this project.
From my study of project feasibility study and evaluation that show me many
things for the feasibility because the premium coffee is low costs but it can provide high
profits and high demand of consumption, this is the reason why many new coffee shop
available almost on every corner in Thailand’s larger cities and chief tourist
destinations. Obviously, the world’s big players are now here, but a number of local
coffee shop chains have also emerged.
From my survey of the market for this project is very interesting because the
premium coffee is very boom and the study of PEST analysis cab support our business
well and there are very low competitions in the market so it is not so difficult to entry in
the market for our business. We need study competitors very well that what is their
SWOT and analysis to adapt with our business beyond than them. The technical
analysis can make me to know how to do for investment and how much the cost that we
need to prepare. The chapter five is show the circle financial of this project.
326
Appendix
Company Limited
Registration
327
Company Limited
Is that kind of company which is formed with a capital divided into egual shares,
the liability of the shareholders being limited to the amount unpaid on the shares
respectively held by them.
2. When the Memorandum has been registered, shall perform the following :
(1). Every promoter manage to reserve and buy all the shares
(2). When all the shares are reserved, the promoters must with out delay
hold a general meeting of subscribers which shall be called the statutory meeting.
3. Meeting agenda.
5. The directors shall the reupon cause the promoters and subscribers to pay forth with
upon each share payable in money such amount, not less than twenty-five percen of the
share's value .
329
6. When the collection of share’s price is complete, the authorized director shall prepare
the request for the registration of company’s establishment and submit to the registrar.
Regarding the submission for registration, the authorized director shall sign the
name on the request and must submit to register within 3 months from the date of
company statutory meeting. If not registered within the specified period, the company
statutory meeting shall be void and if would like to register to establish the company,
shall arrange the meeting for persons who reserve to buy the shares again.
(1) Shall have the persons reserve to buy all the shares that the company
can be registered.
(2) Arrange the meeting to establish the company to consider various
affairs according to the Civil and Commercial Code, section 1108, and all the persons
who start up the company and all the persons who reserve to buy the shares shall attend
the meeting, and all of them shall agree in the affairs in the meeting.
(3) Persons who start up the company assign all the affairs to the
director.
(4) The director call the person who reserves to buy the shares to pay the
shares according to the Civil and Commercial Code, section 1110, section 2 and such
share’s price has already been paid.
Registration
In case that the company limited agrees to modify or change any registered
transactions or the shareholders would like to liquidate the business, shall request for
the registration of the modification / change of such transactions or registration of the
company’s liquidation at the company and partnership registration office that the head
office of the company is located on.
The registration to establish and modify any transactions shall be performed according
to the method and criteria specified by the law and the government’s rules.
company’s name, the persons who start up the company or company’s director shall
request for verifying and reserving the company’s name to confide that such name is not
duplicated or similar to other names pervious registered. Upon reserving the name, shall
request for the registration of memorandum of association within 30 days by reserving
the name in person or via internet at www.dbd.go.th .
(2) Purchase the request and form from the Department of Business
Development or any of 7 business development office or provincial business
development office or download from internet from www.dbd.go.th .
(3) Prepare the request for registration and other attachments to the
registrar for consideration.
(4) Pay the fee according to the officer’s order
(5) If aiming to issue the certificate of registered transactions, shall
submit the request and pay the fee to the officers.
(6) Receive the certificate of registration.
2. Steps for registering partnership and company via internet (see the steps in
partnership)
Criteria of Signing the Signature on the Request for Registration
(1) The signature in the request and the attachments, the person shall sign
by him / herself.
(2) The signature in the request, the person shall sign in front of the
registrar and demonstrate the ID card to the registrar for verification.
In case that the person cannot sign the name in front of the registrar, the person who
request shall sign the name in front of the following person :
2.1 In case of signing in the country
(1) Administration Officer or Senior Police in the area of the person who
requests.
(2) Member of Thai BAR or
(3) Other persons as notified by the central registrar are
- Certified Public Account
- Committee member or officer of the Thai chamber of commerce or
provincial chamber of commerce who can certify the signature of persons who request
332
for the registration of partnership / company with the head office located in the province
that the Chamber is located according to the notification of the Central Partnership
Registration Office.
2.2 In case of signing in foreign countries
(1) Authorized officer of the Thai embassy or consulate, or head of the
office under the Minister of Commerce responsible for the operations in any country or
other officers authorized to perform on behalf of such abovementioned person
(2) Person who can completely certify according to the law of that
country and
(3) 2 Reliable persons who can certify in front of the registrar that the
signature is such person’s signature.
Duties of Company
(1) The company limited must prepare the financial statement once a
month in every 12 months and at least one auditor shall audit to propose to the ordinary
shareholder’s meeting to approve the financial statement within 4 months from the
closing date, and submit the financial statement to the business information service
office, department of business development, or any provincial business development
office within 1 month from the date of financial statement’s approval although such
businesses have not yet been started or have not ceased temporarily; otherwise, they
shall have the fine penalty of no more than 50,000 Baht.
(2) The director shall prepare the copy of list of all shareholders’ names
that are holding the share at the time of the annual shareholders’ meeting and the list of
persons who are not the shareholders from the date of the last shareholders’ meeting and
submit to the department of business development or any provincial business
development office within 14 days from the date of the meeting; otherwise, they shall
have the fine penalty of no more than 10,000 Baht.
(3) Must arrange the annual shareholders’ meeting within 6 months from
the juristic person’s registration date, and arrange the next meeting of at least one time
for every 12 months; otherwise, they shall have the fine penalty of no more than 20,000
Baht.
333
The invitation for the shareholders’ meeting shall be advertised on the local newspaper
for at least one time of at least 7 days before the meeting date, and shall send via reply
mail to every shareholder named in the company’s registration for at least 7 days before
the meeting date, except the invitation for the shareholders’ meeting to vote for the
extraordinary resolution shall be sent for at least 14 days before the meeting date.
(4) Must prepare share certificate to the company’s shareholders;
otherwise, they shall have the fine penalty of no more than 10,000 Baht.
(5) Must prepare the book of shareholders’ registration of the company;
otherwise, they shall have the fine penalty of no more than 20,000 Baht.
(6) Any companies that relocate the location of head office must request
for the registration to the registrar; otherwise, they shall have the fine penalty of no
more than 20,000 Baht.
In case that the juristic person does not submit the yearly financial statement as
specified by the law, such juristic person has offense, and the managing director or
authorized director on behalf of the juristic person shall also have the offense too.
Businesses that the Law specifies the period of time of submitting the registration
Appendix
Corporate Income
Tax
338
1. Taxable Person
Corporate income tax is levied on both Thai and foreign companies. A Thai
company means a company incorporated under the law of Thailand. Thai company is
subject to tax in Thailand on its worldwide net profit at the end of each accounting
period (12 months). A foreign company means a company incorporated under foreign
law. Generally, a foreign company is treated as carrying on business in Thailand if it has
an office, a branch or any other place of business in Thailand or has an employee, agent,
representative or go-between for carrying on business in Thailand. A foreign company
carrying on business in Thailand is subject to CIT only for net profit arising from or in
consequence of business carried on in Thailand, at the end of each accounting period.
However, a foreign company engaged in international transport is subject to tax on its
gross receipts. When a foreign company disposes its profit out of Thailand, such profit
will be subject to tax on the sum disposed. Profit also means any sum set aside out of
profits as well as any sum which may be regarded as profit.
A foreign company, not carrying on business in Thailand but deriving certain types
of income from Thailand, such as service fees, interests, dividends, rents, professional
fees, is subject to corporate income tax on the gross amount received. It is collected in
the form of withholding tax by which the payer of income shall deduct the tax from the
income at the rate shown in 3 (Tax Rates).
339
2. Tax Calculation
3. Taxes, except for Corporate Income Tax and Value Added Tax paid to the Thai
government;
4. Net losses carried forward from the last five accounting periods;
5. Bad debts;
340
10. Further tax deduction for donations made to public education institutions, and
also for any expenses used for the maintenance of public parks, public
playgrounds, and/or sports grounds;
11. Depreciation : Provided that in no case shall the deduction exceed the following
percentage of cost as shown below. However, if a company adopts an accounting
method, which the depreciation rates vary from year to year, the company is
allowed to do so provided that the number of years over which an asset
depreciated shall not be less than 100 divided by the percentage prescribed below.
Depreciation
Types of Assets
Rates
1. Building
depreciated
1.2 Temporary building at the rate in
1.1
initial
allowance of
25% on the
date of
acquisition
and the
residual shall
be
depreciated
at the rate in
1.1
100 %
initial
5.4 passenger car or bus with no more than 10 passengers allowance of
capacity 40% on the
date of
acquisition
and the
residual can
343
be
depreciated
at the rate in
5
initial
allowance of
40% on the
date of
acquisition
and the
residual can
be
depreciated
at the rate in
5
depreciated
at the rate in
5 but the
depreciable
valve is
limited to
one million
baht
depreciated
over 3 years
initial
allowance of
7. Computer programmes
40% on the
date of
7.1 SMEs*
acquisition
and the
residual can
be
depreciated
7.2 other business
over 3 years
depreciated
over 3 years
* SMEs refer to any Thai companies with fixed assets less than 200
million baht and number of employee not exceeding 200 people.
3. Tax Rates
The corporate income tax rate in Thailand is 30% on net profit. However, the
rates vary depending on types of taxpayers.
Notes:
1 A small company refers to any company with paid-up capital less than 5
million baht at the end of each accounting period.
2 The reduced rate applies for currently listed companies for 3 accounting periods
from 2008-2010.
3 The reduced rate applies for newly listed companies for 3 accounting periods
from 2008-2010
4. Withholding Tax
Certain types of income paid to companies are subject to withholding tax at source.
The withholding tax rates depend on the types of income and the tax status of the
recipient. The payer of income is required to file the return (Form CIT 53) and submit
the amount of tax withheld to the District Revenue Offices within seven days of the
following month in which the payment is made. The tax withheld will be credited
against final tax liability of the taxpayer. The following are the withholding tax rates on
some important types of income.
1. Dividends 10 %
2. Interest1 1%
3. Royalties2 3%
4. Advertising Fees 2%
6. Prizes 5%
Notes:
1. Tax will be withheld on interest paid to associations or foundations at the rate of
10%.
3. Government agencies are required to withhold tax at the rate of 1% on all types of
income paid to companies.
348
Thai and foreign companies carrying on business in Thailand are required to file
their tax returns (Form CIT 50) within one hundred and fifty (150) days from the
closing date of their accounting periods. Tax payment must be submitted together with
the tax returns. Any company disposing funds representing profits out of Thailand is
also required to pay tax on the sum so disposed within seven days from the disposal
date (Form CIT 54).
In addition to the annual tax payment, any company subject to CIT on net profits is
also required to make tax prepayment (Form CIT 51). A company is obliged to estimate
its annual net profit as well as its tax liability and pay half of the estimated tax amount
within two months after the end of the first six months of its accounting period. The
prepaid tax is creditable against its annual tax liability.
Appendix
Labor Cost
350
Labor Costs
Notes: Bonus conditions vary from business to business, although one to two
months extra salary a year is closest to the average. These figures are based on the
results of a survey of BOI-promoted companies, conducted in August 2009.
IT Positions*
Years of
IT
Job Description Baht US$
Experience
25,000 - 719.99 -
2-3
35,000 1,077.98
Web Application Developer/ Software Engineer/
35,000 - 1,077.98 -
Programmer (NET, XML, Java, J2EE, C++, 3 - 5
50,000+ 1,439.97+
MySQL, PHP, OO tools, etc.)
50,000 - 1,439.97 -
5 - 7+
60,000+ 1,727.97+
35,000 - 1,077.98 -
3-5
50,000 1,439.97
AS/400 Programmer
50,000 - 1,439.97 -
5 - 7+
60,000 1,727.97
27,000 - 777.58 -
2-3
35,000 1,077.98
Database Developer (Oracle PL/ SQL, SQL- 35,000 - 1,077.98 -
3-5
Server, etc.) 45,000 1,295.97
40,000 - 1,151.98 -
5 - 7+
55,000+ 1,583.97+
55,000 - 1,583.97 -
DBA (Oracle, SQL-Server) 5 - 7+
70,000 2,015.96
70,000 - 2,015.96 -
Applications Development Manager 8 - 10+
85,000+ 2,447.95+
80,000 - 2,303.96 -
- with CMM / CMMI experience 8 - 10+
100,000+ 2,879.94+
100,000 - 2,879.94 -
Solutions Architect / System Architect 10+
120,000+ 3,455.93+
27,000 - 777.58 -
Helpdesk / Technical Support 3-5
35,000 1,077.98
40,000 - 1,151.98 -
Software Tester 5-7
60,000 1,727.97
100,000 - 2,879.94 -
Software Quality Assurance Manager 10+
135,000+ 3,887.92+
55,000 - 1,583.97 -
ERP / CRM / Data Warehouse Implementation 5 - 7
70,000 2,015.96
Consultant
70,000 - 2,015.96 -
(SAP, Oracle, Siebel, SAS, DataStage, etc.) 7 - 10+
120,000+ 3,455.93+
353
32,000 - 921.58 -
3-5
System Engineer / System Administrator with 40,000 1,151.98
vendor certifications (MCSE, SCSA, etc.) 38,000 - 1,094.38 -
5 - 7+
50,000+ 1,439.97
120,000 - 3,455.93 -
Data Center Manager 10 - 15
150,000 4,319.92
90,000 - 2,591.95 -
Project Manager, with certifications (PMP, etc.) 10 - 12+
150,000 4,319.92
150,000 - 4,319.92 -
Project Director / Program Director 15+
180,000 5,183.90
354
160,000 - 4,607.91 -
IT Director 15+
200,000+ 5,759.89+
Notes: IT salaries assume staff with at least reasonable command of English (or
better, for the more senior jobs). If the English proficiency is not strong, salaries
may be slightly lower.Source:
(Source: 2009, 2010 ISM Technology Recruitment Ltd. Q3, 2009, www.ismtech.net)
Overtime Regulations
Baht Area
206 Bangkok and Samut Prakan
Nakorn Pratom, Nonthaburi, Pathum Thani and Samut
205
Sakhon
204 Phuket
184 Chonburi and Saraburi
181 Ayutthaya
180 Chachoengsao
178 Rayong
173 Nakhon Ratchasima, Pang-nga and Ranong
171 Chiang Mai
170 Krabi, Prachinburi and Lopburi
169 Kanchanaburi
168 Petchaburi
167 Chantaburi and Ratchaburi
165 Singhaburi and Angthong
164 Prachaub Khiri Khan
163 Loei, Samut Songcram and Sa Kaeo
162 Trang
161 Songkhla
356
Most national holidays and festivals are of a religious nature and serve to evoke a sense
of devotion to the monarchy, the religion, and the nation. Some are celebrated by the
lunar calendar and thus vary in date from year to year, while others are celebrated
according to the solar calendar. Bank Holidays for 2009 are:
January
January 1 (Thursday) - New Year’s Day
January 2 (Friday) - Additional holiday granted by government
February
February 9 (Monday) – Makha Bucha Day
April
April 6 (Monday) – Chakri Day
357
May
May 1 (Friday) – National Labour Day
May 5 (Tuesday) – Coronation Day
May 8 (Friday) – Visakha Bucha Day
July
July 1 (Wednesday) – Mid-year Closing (Bank Holiday but not a public holiday)
July 7 (Tuesday) – Asahna Bucha Day
August
August 12 (Wednesday) – H.M. Queen’s Birthday
October
October 23 (Friday) – Chulalongkorn Day (Rama V Day)
December
December 7 (Monday) – Substitution day for H.M. King’s Birthday (which is on
Saturday, December 5)
December 10 (Thursday) – Constitution Day
December 31 (Thursday) – New Year’s Eve