132 Feasib
132 Feasib
132 Feasib
SITE ANALYSIS
A. Site Description
1. Size- Residents either of UPLB or LB
There are 14 Barangays in Los Banos. According to NSO, as of 2014, the
overall population of Los Banos is 109,210 with Barangay Mayondon having the
highest population of 17,440 followed by Batong Malake with 14,890 residents. In
UPLB specifically, there are 11,303 college students and 1,151 Faculty and staff.
In terms of employment status, according to BMIS (2010), 33.72% of the
population is employed while 23.96% is unemployed. The rest of 15.40% is
underemployed.
2. Boundaries
The town of Los Banos lies between the shore of Laguna de Bay and Mt.
Makiling. Its boundaries from North, South, East and West are Laguna Lake, Sto.
Tomas Batangas, Laguna de Bay and Bay Laguna, and Calamba Laguna,
respectively.
3. Topography survey
Banos has five main rivers namely: Dampalit, Saran, Pili, Mulawin and Maitim,
and all of these rivers connect to the Laguna Lake.
4. Drainage System- Structure which conveys rainwater or other water from their
point of origin point of disposal. This can be obtained from the City Hall.
Due to high elevation of Mt. Makiling, there is higher average rainfall that
penetrates the deepest surface of the ground. This occurrence now resulted to the
known Makiling spring which is the major water source of the town.
B. Site Evaluation
1. Visibility- Relative Ability to be seen
In general Los Baos is a well-known area, very accessible, and is relatively
visible. The area or Los Baos is visible because for one it can be easily accessed
by commuters and those with private vehicles. In a sense Los Baos is visible due
to its accessibility and that since many areas are already urban in nature some areas
are more easily seen than others. However there those areas that are not easily
visible such as those in forested areas because of difficult accessibility and the cover
of the area.
Next is the visibility for UPLB and the Institute of Human Nutrition and
Food. The Institute of Human Nutrition and Food is an institution under the College
of Human Ecology, which can be found at the University of the Philippines Los
Banos Campus in Los Banos Laguna. It is located beside the Department of Human
and Family Development Studies, which can aslo be found at the back of the
Physical Sciences Building.
2. Accessibility- The degree to which a product, devise or environment is available to
other people. Distance to offices, schools, bus terminals and competitors.
The accessibility of resources in Los Baos is good and in a sense
acceptable. Goods, product or services are readily available in Los Baos, for one
there are a lot of shops, stores, and supermarkets that cater to the needs of
consumers, for example Robinsons Supermarket located at Los Baos, and the
different stores that offer clothing and food which makes these items accessible in
different areas of the province.
Los Baos as a whole contains a lot of accessible areas and buildings, within
the province there are numerous provinces where people work, and that there are
several schools within the area, one in PICARD, two within the UPLB campus as
some examples, meaning that some areas are relatively near or schools are very
accessible in some areas. There few official bus stops or terminals in Los Baos.
All around the province and campus there are a lot of competitors since nowadays
many food establishments are being founded and can serve as competition in the
future, particularly when it is within the same area.
The Institute of Human Nutrition is easily accessible for the students under
its college, College of Human Ecology. The reason behind this is them being
students of the said college, they know their way around the location. In contrast,
the students of other colleges and non-students of the university, find it difficult to
locate the place because they do not know where the institute is located even if
directions are already given. The location of the institute is quite hidden and
surrounded by other buildings, which is why it is difficult to find. It usually takes a
second or third explanation to grasp the directions.
3. Transportation System
The type of transportation service include jeepney which is the most
common public utility vehicle, tricycle, cars, pedicabs for narrow streets, trolleys,
and non-motor and motor boats for fishing. These are used not only by passengers
but in transporting goods as well. In remote areas like Barangay Bagong Silang, the
residents use horses in delivering fresh produceand other resource (Consolidated
BMIS, 2010).
The available transportations that people can utilized to arrive at the
Institute of Human Nutrition and Food are the public utility vehicles. Various
locations have a variety of ways which can they arrive at the Institute of Human
Nutrition and Food at the College of Human Ecology - University of the Philippines
Los Banos. An example of which is if an individual arriving from the Metro Manila
area, then said individual can utilize buses with the destination of Sta. Cruz (UP
College), then disembark at the Caltex Gasoline Station in Los Banos parallel to
the Olivarez Plaza. From there the individual should ride on a jeepney with the
placard labelled UP College, Kaliwa. After this, disembark at the unloading
station in front of Edible Garden near the intersection going to the College of
Engineering and Technology (CEAT) and University Police Force (UPF). Proceed
to walk towards the road on the right leading to the UPF and parallel to it is a
pavement which is called the dirt road. Then you can locate the Institute of
Human Nutrition and Food because there is an arch in front of the institution. Figure
2 shows the public utility vehicles to be used and the landmarks that will be helpful.
Another example is when an individual arriving from Sta. Cruz. From Sta.
Cruz, the individual could ride a bus which has a destination of Cubao or LRT
Buendia, or a jeepney with a placard Calamba Crossing. Both of these public
utility vehicles can disembark at the Olivarez Plaza and repeat the direction of the
previous instruction.
M
A
N
IL
A
Olivarez Plaza
parallel to Caltex
Gasoline Station
Edible Garden
inside UPLB
campus
4. Availability of Utilities
1. Communication
The most common means of communication in the town is the
cellular phones. Both residential and commercial transactions make use of
such. There are also post offices, LBC and JRS for letters and packages.
Local and international communication is also made possible by internet,
two-way radio, radio and television.
2. Electricity and Fuel
MERALCO and NAPOCOR are the service providers of electricity
in Los Banos. MERALCO provides services to a population of 95.39%
residents while NAPOCOR provides services to UPLB campus. Other
sources of electricity include Biogas and Generator.
3. Water Source
The Laguna Water District is the major provider of water services.
Secondary sources include deep well, artesian well, creek, river, spring/free
flow and lake. Residential and commercial infrastructure have piped water
supply. There are also other facilities available in Laguna Water District
such as fire hydrants, deep well and reservoir. In the remote area
particularly, Bagiong Silang, the water comes from the spring.
consolidated by the Barangay Management Information System (BMIS) in 2010, the Labor Force
Participation Rate (LFPR) is 57.68% out of the Civil Labor Force (CLF) of 80,387 individuals.
The LFPR can be further subdivided into 14,722 (33.72%) employed, 12,387 (15.40%)
underemployed, and 19,263 (23.96%) unemployed individuals.
Statistics shows that the highest number of employed head of the household belongs to
Barangay Batong Malake where the projected establishment is located. In accordance to the BMIS
data about the monthly income of the head of the family in 2010, the highest number is 7,786
families with monthly income of PHP 5,000- PHP 9,999. According to the National Statistics
Coordination Board (NSCB) in 2007, this range is below the Poverty Threshold Level (Region
IV) of PHP 16,531.00. The generated annual income of the municipality increased from Fiscal
Year 2011 to 2014 with PHP 179,403,768,01 to PHP 213,850,000.00. The same is observed from
the Barangay Annual Income from 2013 to 2014 with PHP 54,355,208.88 to PHP 58,486,245.03.
Based on the calculated values, there is an observable economic growth.
Based on the data on the land utilization of Los Banos in 2009, 14.92% of the total land
area is allocated for agriculture. The Comprehensive Land Use Plan of the municipality of Los
Baos aims to increase its utilization by 2020. A large amount of the total area for crops planted
in Los Baos is allocated for Coconut with 233.00 hectares. Evidently, numerous Buko Pie stands
are seen around the area. With regards to the data in livestocks raised and domesticated animal in
Los Baos, ducks have the most number with 22,187. It is apparent that numerous residents use
ducks as their major source of income. Hence, Agriculture is one of the major sources of income
in the municipality. The utilization of the lands for agriculture aims to increase the employment
rate for the municipality.
Also, the municipality capitalizes on its tourist sites and location. The tourist sites are
namely: tourist attractions, historical landmarks, museums, research and development and home
grown products. With the location, the makiling springs caused by Mount Makilings high
elevation resulted to numerous resorts around the area. Their current plan to ease the economic
status is through the improvement in tourism and the endorsement of Los Baos Therapeutic
Massage Center & Health Spa.
With infrastructure, all of the roads in the municipality are cemented. However, some of
the Barangay and Municipal roads are still unpaved. In 2010, P129.7 M was used for the purpose
of improvement and construction of roads, pathways, drainage system, school buildings and other
facilities. These improvements are signs of a growing economy.
As of 2014, there are 2,448 registered Businesses in the Los Baos based on the records of
the Municipality. Around the University of the Philippines Los Baos (UPLB) campus, there is an
evident increase in the number of establishments, including the newly opened Centro Mall, Casa
Bulgogi, Piknikan, etc. This increase suggests that opening a business around the area may be
lucrative.
C.
at the College of Human Ecology (CHE), particularly at the Institute of Human Nutrition and Food
(IHNF). Inside the university, there are various dormitories and housing programs that are
available for students, professors and employees of the university. For students, there are 11
available housing options. These housing options can be seen in Table 1 together with its capacity
and short description. The housing of the staff is located inside the campus. Employees may opt
to choose from the following: Apartment, Bungalow, Duplex and Two-Storey.
Table 1.0 Housing options for students within campus and its capacity
Name
Capacity
Medicine Four
(VetMed) Residence
Buildings
with
maximum capacity of
280 beds for men and
women
freshmen
and
upperclassmen.
Institute
56 Female Freshman
Upper
Agricultural
Training 30
freshmen
and
both
Residence Hall
There is also a hospital within the perimeter of UPLB namely, the University Health
Service (Infirmary). It has a 30- bed capacity that accommodates anyone who visits. There are
private schools inside the university namely the Maquiling School Inc. and Christian School Intl
(CSI) and The Learning Place. Maquiling School Inc. and CSI have students from pre-elementary
to high school while The Learning Place has only pre-elementary and elementary students. In
2014, Maquiling School Inc. had a total of 1275 students CSI had 1066 students and The Learning
Place had 111 students. All schools are composed of mainly elementary students. There are also
government learning centers in the university, namely, Day Care Laboratory UPLB Human
Ecology Family and Development Studies and Child Development Laboratory UPLB Human
Ecology Family and Development Studies. In 2014, the total number of students of both centers
are 84.
Other than the academic and research programs of UPLB, there are other agencies inside
the university with hundreds of employees. These are namely; Philippine Rice Research
Institute(PhilRice), Rural Economic Development and Renewable Energy Center, Regional
Training Program on Food and Nutrition Planning, Philippine Carabao Center, Microbiology and
Biotechnology Laboratories, National Crop Protection Center(NCPC), South East Asian Regional
Center for Graduate Studies and Research in Agriculture(SEARCA), Philippine Agrometeorology
Station, Forest Products and Research Development Institute, Department of Forest Products and
Paper Science, ASEAN Centre for Biodiversity and Ecosystems Research and Development
Bureau, Agricultural Training Institute Region IV-A, Boy Scouts of the Philippines Jamboree,
Commission on Audit (COA) UPLB, Credit and Development Cooperation, Local Government
Academy, Department of Interior and Local Government, University of the Philippines Provident
Fund and UPLB Foundation Inc.
There are two congregations found within the UPLB campus namely the United Church of
Christ in the Philippines (UCCP) Church among the Palms and the St. Therese of Child Jesus
Parish. There are four banks within the campus namely; Land Bank, Philippine National Bank
(PNB), Plantersbank and Veterans Bank. There are also lodging options for alumnis, guests and
groups available within campus namely; UPLB Executive Guest House, the UPLB Alumni Center,
Obdulia Sison Hall (formerly the Continuing Education Center) and SEARCA Hotel.
B. Visual Appeal and Attractions of the Area
Los Baos is known as the Special Science and Nature City of the Philippines having widevariety tourist and worthwhile spots to visit in. It is a place wherein people from other city spend
time to experience the thermal hot spring resorts whether may it be as public private that are
famous for this city because it has a green environment having free from pollution air and many
agricultural sites and farms.
There are more various natural attractions, museums, institutions and historical landmarks
around UPLB and Batong Malake that are visited by tourists and locals. Within the university, its
boundaries are as follows: Physical Sciences (PhySci) Building in front; Math Building at the back;
New College of Arts and Sciences (NCAS) Main, CAS College of Arts and Sciences Annex (CAS)
2 and Main CAS Building on its right and UPLB Police Force and Philippine National Bank (PNB)
on its left. Table 1 shows the various Attractions in Los Baos that is within the perimeter of UPLB
and Batong Malake as well as its distance from the location.
Table 1.1 Tourist Attractions within Batong Malake and its distance from IHNF
Name
Location
Nature Attractions
Makiling Botanic Gardens
UPLB
1.9 km
Mt. Makiling
Mt. Makiling
2.0 km
Mt. Makiling
3.2 km
Historical Landmark
Boy Scouts of the Philippines
Batong Malake
2.6 km
Batong Malake
Jamboree Camp
Tower
Batong Malake
Museums
Museum of Natural History
1.8 km
Rice World
IRRI
3.1 km
Batong Malake
1.9 km
LOCATION
DISTANCE
Grove, UPLB
Agapita, LB
UPLB
Lopez Avenue, Batong Malake
Vega Center
Centtro Mall, Lopez Avenue
Vega Center,
Vega Center,
Lopez Avenue, Batong Malake
Centtro Mall, Lopez Avenue
Lopez Avenue, Batong Malake
Lopez Avenue, Batong Malake
630m
1.7km
250m
750m
450m
750m
450m
452m
450m
750m
750m
2.1km
SEARCA Hotel
UPLB ICs Bar and Caf
Black n Brew
Jollibee
McDonalds
UPLB Chowking
UPLB KFC
SM Savemore
Star Commercial
Robinsons Supermarket
E. Labor Availability
The availability of labor is one important factor in a business for it to be successful. It is
depending on the efficiency and effectiveness of the workers when they work. In Los Banos, there
are many opportunities for the citizens to have jobs as the city launches and build new
establishments for its growth. Added to that, the unemployment rate of the citizens of the city (as
seen in Table.) is higher or same with those employed. Hence, the availability of labor for this
study is abundant. Also considering the number of those out of school youth can be used as a
supporting data for the availability of labor as those students has a tendency to find a job for them
to go back to school.
No. of Employed
No. Underemployed
No. of Unemployed
Anos
1,297
1,427
1,064
Bagong Silang
100
75
114
Bambang
524
706
2,590
Batong Malake
2,405
438
1031
Baybayin
307
193
203
Bayog
1,415
1662
1,462
Lalakay
910
824
1,701
Maahas
1,101
932
1,257
Malinta
438
757
1,430
Mayondon
1,390
3,382
2,660
San Antonio
1,386
1,037
1,446
Tadlac
758
834
2,699
Timugan
726
468
Tuntungin-Putho
1,965
120
1,138
TOTAL
14,722
12,387
19,263
% to Total
33.72
15.40
23.96
below 1,999
1,132
2,000-2,999
1,553
3,000-3,999
2,528
4,000-4,999
1,812
5,000-9,999
7,786
10,000-14,999
6,554
15,000-19,999
2,016
20,000 above
3,545
Barangay
Anos
443
Bagong Silang
57
Bambang
1,201
Batong Malake
559
Baybayin
63
Bayog
1,186
Lalakay
883
Maahas
645
Malinta
692
Mayondon
1,330
San Antonio
1,290
Tadlac
447
Timugan
544
Tuntungin-Putho
665
Total
10,005
V. MARKET ANALYSIS
(%)
Soup
Viand
(%)
Veget
able
(%)
Snack
(%)
Dess
ert
71
87
Karekare
84
Palab
ok
62
Sisig
64
Siniga
ngnaB
aboy
Bulalo
79
55
55
Nilaga
58
Spagh
etti
Lumpi
ang
Shang
hai
63
Fried
Chicken
Pinak
bet
Mong
gogis
ado
Ice
71
Crea
m
Lech 59
e flan
Halo- 43
halo
Bicol
Express
Chicken
Inasal
45
43
41
(%)
Frui
ts
(%)
Drinks
(%
)
Man
go
91
Sagot
Gulaman
68
Mel
on
Mix
ed
Frui
ts
51
Buko
Juice
Iced Tea
61
52
46
Price. According to the survey conducted, the target market are willing to spend Php 100 150
which is 54% of the total respondents followed by Php 150 200 for the buffet. This can be
reflected to the current employment status of the respondents. Majority of them, specifically 27
% of the total respondents usually spend Php 500 700 for food in weekly basis considering that
they are willing to dine in in the buffet once to twice a week.
Promotion. Since most of the food establishments publishes promotional materials online, it will
be considered. For sure, students and young professionals will be easier to know about the buffet
66
inside campus. A page in facebook and other social media sites may contain the directions on
how to get there a map and picture of the logo and the menu items to be served.
Place. The food service establishment will be built on the former student lounge building of the
College of Human Ecology, Institute of Human Nutrition and Food near the Bio Assay building
inside UPLB.
Product Positioning
The marketing strategy would basically include the brand name of the food service establishment
which is the first Buffet inside the UPLB campus. The promotion will be planned to appeal to the
students and faculty who particularly would want to experience buffet without having the hassle
of travelling a long distance. To communicate with the customers, publicity materials will be
used such as flyers and tarpaulin. Since it is located in the campus, the bulletin boards in each
college will be utilized given the permission. There will also be flyers on the vicinity of the
buffet area to reach out to customers outside the campus.
Competitive Positioning
The target customers will be defined as to determine the scope of the market. The competitive
advantage of the foodservice establishment is the type of food service itself which is a buffet.
The customers, particularly the students who have long breaks, enough to have a buffet and
given their want to eat larger quantity of food and wider variety of foods in a meal will mostly be
the customers. In line with the other food establishments, it is new since the target market will
have a chance to experience dining in a buffet at a lower price, still considering the types of food
they usually eat.
How to choose market wisely?
The place of the food service establishment is accessible to students and faculty inside campus. It
is not positioned in crowded market since it is the only food establishment offering buffet in the
specific area inside campus. Since the faculty of different colleges- specifically in IHNF,
students, and other young professionals are willing to experience the service, the marketability is
perceived as average to high.
Positioning Options
The FS will be having a positioning by product and services attributes. The eat-all-you-can with
affordability and accessibility features may be used. Considering that the target market prefer a
cozy place for dining in, the buffet cafeteria will be in between of having a classy look or themed
appearance of the interior. It may also be emphasized that the students and faculty and other
customers within LB will get to experience buffet of local cuisines without travelling far
distance.
B. Competitive Check
The location of the food establishment that is to be put up is at the Institute of Nutrition
and Food in the College of Human Ecology. There is a lot of competition inside and outside the
campus that serves offers various types of cuisines and services. Inside the campus, the
competitions are as follows: University Cafeteria (UCaf), Berris Cuisine, Students Union
Building, College Consumers Cooperative Canteen and the Food Stalls inside the Physical
Sciences Building (PhySci).
In the process of analysing the competition, 3 food establishments around the area were
interviewed. These establishments are namely, Bonitos Bar and Restaurant, Food Los Baos and
UCaf. The interview questionnaire can be seen in Figure 1. The entire interview transcript can be
seen in Appendix 1. There are various similarities and differences in the answers of the General
Manager or Supervisor of the establishments. With business hours, it is different for every
establishment. However, it was observed that establishments outside open and close at later hours
than the establishments inside the campus. Also, establishments outside operate during the
weekends. For the customers are loyal who are either students or professors of the university. The
products that are offered by all of the interviewed establishments are diverse with the presence of
all the food groups defined by the Food Exchange List. It can be observed that the average price
of the food offered from the establishments is Php 150. All of the establishments are practicing the
Informal Buying Method. Some of the products are acquired on supermarkets and wet markets
while others are from a supplier that delivers weekly. Their profitable products are emphasized in
their menu. There is no observable pattern on the best sellers of the various establishments. Among
the 3 establishment, 2 practice marketing strategies namely Bonitos and the UCaf. Since Bonitos
is a larger establishment compared to the UCaf, they are able to invest more on their marketing
strategies. Most of the establishments believe that their edge is the assurance that their products
are consistently of high quality. Among all the establishments, there are no evident plans for
expansion at the moment. In the case of Food Los Baos, the owner emphasized that they do not
plan to expand since running the business is very costly. They opt to invest on other business rather
than expanding. All of the establishments consider being able to serve to provide specific types of
service to people like giving a healthier option or providing a The cons are high operating cost,
staffing problems and breaks in between semesters.
The method that is usually used in competitive check is the analysis of the Strengths,
Weaknesses, Opportunities and Threats or the SWOT analysis. Considering that the various
competitions around the area, a SWOT Matrix was opted in order to maximize the customers. The
SWOT analysis can be seen in Table 1.
Table 1.SWOT Matrix of the proposed establishment
External/ Internal
Strengths
Weaknesses
The establishment will be The location of the
the first buffet within the
proposed establishment is
vicinity
hidden or not easily seen
For a buffet the prices in
The space inside the
the proposed
proposed establishment is
establishment are lower
limited
The managing team is
The proposed
composed of students
establishment is new and
majoring in Nutrition and
not yet established
Dietetics. Hence, it can be All of the members have
assured that they have
no experience in running
taken various courses
a restaurant
involving food service,
Members do not know
clinical nutrition and food
each other well yet and
safety.
are unaware of each
The team is provided with
others Strengths and
unlimited resources may
Weaknesses.
be used as they see fit.
Food pattern of each
The family business of
individual is unique
one of the managing
which may be difficult to
members is Pest control.
forecast. This may lead to
This means that the
either food wastage or
establishment will be
shortage.
regularly monitored for
High operational cost
pests.
because of the type of
The family business of
foodservice planned
one of the managing
which is conventional.
members is farming
Limited natural lighting
particularly rice and
at the location.
organic vegetables like
High food cost because
Pechay, Tomatoes and
menu is offered at
Okra. Hence, these
unlimited amounts. This
products can be sold to
is evident in the Financial
the establishment at a
Analysis of the proposed
lower price.
facility ( Chapter VI, Part
SO Strategies
Since members of the
group came from
different areas, they may
be able to produce
authentic regional
dishes.
Since the area is near
and accessible for many
students and
professionals with it
being in the center o the
campus and being the
first buffet in the area it
can entice people to eat
in the establishment
Since the establishment
is new it can pique the
W.O Strategies
The establishment can
target IHNF students,
staff, and other
professionals since they
are the ones who are
near the area of the
establishment
The establishment can
use the image of being
Fresh or New to entice
customers to eat in the
restaurant
Opportunities
The location of the
proposed establishment
are near the students and
professionals
Location is easily
accessible to students of
IHNF and other
neighboring colleges.
Since the establishment is
situated inside a
University, target market
is expected to be
knowledgeable about the
importance of food
quality.
The establishment may
utilize the investment of
the municipality on
curiosity of the
customers
The contact persons of
the members can be used
in the supply and
management of the
proposed establishment
Since the establishment
is new or fresh it has
little limitations
compared to other food
services
Contacts of the members
can also help reduce
initial costs in putting up
the establishment
Threats
S.T. strategies
W.T. strategies
The food costs of the
Even if there are many
The management can
proposed establishment
competitors in the area
look for quality but
are high which accounts
the establishment will be
cheaper supplies to
to 45% of the total sales.
the only buffet within the
control and reduce food
vicinity
costs
There are many food
establishments near the
Since the management
Employ resource/energy
area
are also students and
saving techniques to
from IHNF they have an
lessen operational costs
The proposed
insight on the spending
establishment is within
The establishment can
capacity of possible
the campus, thus it is
also accept OJTs to
customers
subjected to curfew
lessen labor costs
regulations
Offer promos or freebies
Do constant surveys or
to encourage customers
interviews to get a more
There are more
who usually eat in
established restaurants
accurate read on the
competitor
around the area.
spending capability and
establishments to eat in
eating patterns of
The student population,
the
restaurant
students
which is more than half of
the target market, is
budget constrained.
Expected decrease in sales
during summer.
Most of customers of the
interviewed established
restaurants are loyal.
Competitive Check
Owner/General Manager
Name of Establishment:
Type of foodservice:
Type of Customers:
Questions:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
The method of inventory that will be implemented will be both perpetual and physical
inventory. It will be done every after operation in the evening to ensure that there are enough
ingredients for the operation on the next morning. The stocks will be carefully checked by the
storeroom clerk or personnel in charge; and in cases there is a need to reorder or to re-fill the stock,
the next morning, the marketer will buy around the supermarkets.
4. Service Management
For the service, this establishment will acquire semi-formal buffet style wherein the service
is self-service while also, they can ask for the assistance of the waiter around the room. The waiter
can be asked to get water or any needed necessities of the customers to give good service.
The company will offer different set of Filipino dishes having a cycle menu, as well as
Filipino desserts and beverages. The buffet is expecting a 2.0 turn-over rate per service, hence
expecting that customers will be there for a long time. There will be no take-out service as the food
must be cleared first before leaving the establishment. Every time the customer will get another
plate, the former plate must be clear from leftovers to avoid food waste and loss. There will be a
50php fine if the customer cannot eat the remaining food in his/her plate. Also, paper straws will
be used to help in environmental campaigns.
The establishment will entertain bulk orders and small events catering to increase the profit
and marketing and publicity also of this company. Also, they can accommodate venue
reservations for any occasion like birthday parties, family reunions, church events, or even
corporate meetings for a small group of 10 to 30 people. Organization sponsorship will also be
considered as it may attract customers and activities around the campus from the student
organizations.
Operating hours will be from 10:00am to 2:00pm for the lunch buffet and will start again
from 5:00pm to 9:00pm for dinner buffet. The restaurant will only open from Mondays to Fridays.
5. Safety and Sanitation
First, all kitchen utensils and equipment must be clean and sanitized at all times. It must be
strict in implementing that all utensils must be washed with detergent and water followed by
sanitizing with use of disinfecting solution. It must be also free from any contamination of insects,
rodents and air; thus must be placed in a plate and utensils shelf after drying.
Next, in handling the food, all kitchen staff must wear proper and complete uniform
whenever inside the facility. They must wear hairnet to avoid hair and other contamination from
the face to reach the food, plastic gloves whenever touching the food to avoid contamination, face
mask and apron.
In preparing the food, it must be strictly, no cross contamination for the meat and
vegetables. Different chopping boards per food group will be provided having different set of
color; blue, red, yellow, and green.
For the flooring, it must be always clean and dry. A sanitizing solution must also be used
in cleaning the floor. Whenever there will be spill and smudges, personnel must be quickly tasked
or they must know to clean it right away to avoid slippery and accidents inside the kitchen. In the
dining, mopping must be done before the start of the service and in between service if needed and
must clean again after the service.
For the comfort rooms, it must stay clean and fragrant at all times. The employee in charge
must regularly clean and visit the comfort room to ensure its cleanliness. It would be very
unpleasant and might affect the dining experience of the customers if the room is dirty.
Lastly, posters and reminders must be posted around the kitchen and preparation area to
increase the awareness of each employee. Then, pest control services must also be availed to avoid
rodents, flies, insects and other animals that are prone to contamination to roam around the
facilities. Fire extinguishers will also be provided for safety.
It is very important to make sure that all staff are following these rules as the health and
safety of the customers depend on the people working behind the good food. It will be useless for
a high quality and standard food if sanitation will not be practiced and implemented.
B. Location and Size
The proposed food establishment of the group will be located within the campus of the
University of the Philippines Los Baos, Laguna, specifically it located at the Institute of Human
Nutrition and Food (IHNF), College of Human Ecology. The room for the establishment itself is
at the side of IHNF, near the pathway to the DHFDS of the College of Human Ecology. There are
many distinguishing land marks near the proposed establishment if one wishes to go there. Of
course there is the building on which it is built in, also known as the RGQ, the room is located at
the west side of the building.
Near the back of the building is the Bio Assay building, at its left side or west side is
DHFDS. Another is the CDL or a child day care. Another noticeable building near the proposed
establishment is the Physical Sciences Building, Main Building of the College of Human Ecology,
and the University Police Force. Food establishments that are near the proposed establishment are
the University Caf, and the food kiosks at the Physical Sciences Building.
There also convenient roads that a person can take to go to the food establishment. One
well known road near the establishment is the Dirt Road which is the paved road at the front of
IHNF and DHFDS. Another is the road that starts from the Math Building that stops near the front
of the College of Human and Ecology Research and Extension, or near the Bio Assay Building.
Another road starts from the front of the St. Therese of the Child Jesus Parish and goes along the
CDL, DHFDS, and a garden at the left side, which will end near the University Police Force. If
one were to come from the outside by walking they can simply go to IHNF through the campus, if
they are within a jeep, they can go ride a jeep with a Kaliwa sign and go off the jeep near the
Physical Sciences Building as a landmark or the University Police Force.
Table
Lechon Kawali
Pinakbet
(Tagalog)
Chopping,
Table
Pork Sisig
Chopping,
Table
Chicken adobo
Stewing, Boiling
Table
Pork sinigang
Table
Kare-kare
Chopping,Stewing,
Boiling
Chopping,Stewing,
Boiling
Chopping, Stewing,
Boiling
Fried Tilapia
Frying
Table
Adobong Pusit
Stewing, Boiling
Table
Bulalo
Table
Table
EQUIPMENT NEEDS
Preparation Table, Induction
Cooker
Preparation Table, Induction
Cooker, Deep Fryer
Preparation Table, Induction
Cooker
Preparation Table, Induction
Cooker
Preparation Table, Induction
Cooker
Preparation Table, Induction
Cooker
Preparation Table, Induction
Cooker
Preparation Table, Induction
Cooker
Preparation Table, Induction
Cooker, Deep Fryer
Preparation Table, Induction
Cooker
Dinengdeng
Tinola
Ginataang
Kalabasa
Chopping,Stewing,
Boiling
Chopping,Stewing,
Boiling
Chopping,Sauting
Table
Table
Table
Adobong Pusit
Ginataang
Kalabasa
Dinengdeng
Pinakbet
(Tagalog)
Thursday
Pork sinigang
Lechon Kawali
Friday
Bicol Express
Chicken adobo
Fried Tilapia
Ginataang
Kalabasa
Adobong Pusit
Pinakbet
(Tagalog)
This is a 1-week sample cycle menu composing of all the viands offered by CHErinderia. It is
based on the distribution of 1 fish viand and 1 vegetable viand, and 2 meat viand either chicken
or pork. It is also based on the texture, food composition and taste of the viands; assuring that it
is well-balanced and palatable.
Bicol Express
Ingredient
Coconut Milk
Pork Belly
Shrimp Paste
Garlic
Thai chili or Serrano
pepper
Onion
Oil
Salt
Pepper
Total(PHP)
Lechon Kawali
Amount
3 cups
0.90 kg
1 kg
124.95 g
30 g
Unit Cost(PHP)
Php 20/ cup
160/kg
Php100/kg
50/kg
Php 40/kg
Total Cost(PHP)
499.8
1,199.52
100
6.25
10
0.83 kg
249 mL
20.825 g
20.825 g
Php 40/kg
49.5/L
Php 16/30 g
16/30 g
33.32
12.37
10.41
10. 41
1,882.08
Ingredient
Pork belly
Salt
Pepper Corn
Bay Leaves
Oil
Total(PHP)
Pinakbet (Tagalog)
Ingredient
Pork
Egg plant
Bitter melon
Squash
Tomato
Onion
Ginger
Garlic
Okra
String beans
Shrimp Paste
Oil
Salt
Pepper
Total(PHP)
Pork Sisig
Ingredient
Pig ears
Pork Belly
Onion
Soy Sauce
Black pepper
,Ground
Ginger
Garlic
Calamansi
mayonnaise
Salt
Total(PHP)
Chicken adobo
Ingredient
Chicken
Garlic
Amount
0.90 kg
250 g
250g
42 pieces
5.92 L
Unit Cost(PHP)
160/kg
16/30 g
16/30g
Php 2/piece
Php49.5/L
Total Cost(PHP)
1,199.52
125
125
84
293.04
1,826.56
Amount
0.11 kg
1.25 kg
1.25 kg
1.25 kg
1.25
2.5
187. 5 g
375 g
3.125 kg
3.125 kg
kg
0.5625
31.25 g
31.25 g
Unit Cost(PHP)
Php 160/kg
Php 35/kg
40/kg
Php 35/kg
30/kg
Php 40/kg
20/kg
50/kg
Php 30/kg
Php 30/kg
100/kg
49.5/L
16/30 g
16/30 g
Total Cost(PHP)
220
43.75
50
43.75
37.5
100
3.75
18.75
93.75
93.75
75
27.84
15.625
15.625
839.09
Amount
3.74 kg
5.66 kg
0.833 kg
374.85 mL
20.825 g
Unit Cost(PHP)
Php 140/kg
Php 160/kg
Php 40/kg
14.50/500 ml
16/30 g
Total Cost(PHP)
523.6
905.6
33.32
10.87
10.4125
0.833 kg
20. 825 g
0.58
374.84 mL
41.46 g
Amount
12.5 kg
375 g
Php 20/kg
80/40 g
Php 35/kg
72/220 ml
6.75/150g
Unit Cost(PHP)
125/kg
50/kg
16.66
41.65
20.3
123.70
1.86
1,696.97
Total Cost(PHP)
1,562.50
18.25
Bay Leaves
Vinegar
Soy Sauce
Pepper Corn
Total(PHP)
62 pcs
750 mL
1481.25
12.5T (187.5g)
5/pack
13/350ml
15/350ml
16/30g
31
27.86
63.48
100
1,803.59
Pork sinigang
Ingredient
Pork belly
Spinach(kangkong)
Fish sauce
String beans
Tomato
Chilli
Oil
Onion
Taro
Total(PHP)
Amount
8.3 kg
8 bundles
373.5 ml
8 bundles(2 kg)
17 pcs.
25 pcs.
124.5g
8 pcs.
17 pcs.
Unit Cost(PHP)
160/kg
15/ bundle
18/350 ml
30/kg
30/kg
40/kg
145/L
40/kg
30/kg
Total Cost(PHP)
1,328
120
19.21
60
42.5
10
18.05
40
60
1,697.76
Bulalo
Ingredient
Beef shank
Cabbage
Pechay
Corn
Pepper corn
Green onion
Total(PHP)
Amount
12.5 kg
2187.5 kg
13 bundles
37.5 pcs.
25T (375g)
118.5 g
Unit Cost(PHP)
130/kg
30/kg
40/kg
50/kg
16/30kg
20/kg
Total Cost(PHP)
1,625
65.63
130
56.25
200
2.37
2,079.25
Kare-kare
Ingredient
Pechay
String beans
Eggplant
Peanut
Shrimp paste
Butter
Anato seeds
Garlic
Onion
Total(PHP)
Amount
8 bundles
8 bundles
33 pcs.
8 cups (1896g)
118.5 g
118.5 g
118.5 g
8.3T (124.5 g)
8.3 pcs. (300 g)
Unit Cost(PHP)
40/kg
30/kg
35/kg
30/kg
89/jar
75/bottle
10/50g
50/kg
40/kg
Total Cost(PHP)
80
60
115.5
56.88
30.13
25.39
23.7
6.23
20
417.83
Fried Tilapia
Ingredient
Tilapia
Amount
8.75 kg
Unit Cost(PHP)
85/kg
Total Cost(PHP)
743.75
Salt
Cooking Oil
Total(PHP)
1.25 g
3L
6.75/g
49.5/L
8.43
148.5
900.68
Adobong Pusit
Ingredient
Squid
Onion
Tomato
Soy sauce
Vinegar
Garlic
Sugar
Oil
Total(PHP)
Amount
7.5 kg
0.42 kg
kg
1L
1L
208 g
41.65
83.3 mL
Unit Cost(PHP)
200/kg
40/kg
30/kg
14.50/500 ml
10.50/350 ml
50/kg
42/kg
49.5/L
Total Cost(PHP)
1,516.09
16.66
15
29
30
10.41
1.74
4.12
1,623.02
Dinengdeng
Ingredient
Milk Fish
Malunggay
Okra
Sitaw
Ampalaya
Bagoong
Ginger
Tomato
Onion
Total(PHP)
Amount
6 kg
25
37.5
12.5 bundle
7 kg
562.5
437.5
kg
625
Unit Cost(PHP)
100/kg
5/bundle
5/bundle
5/bundle
40/kg
10/100 g
20/kg
30/kg
40/kg
Total Cost(PHP)
600
125
187.5
62.5
280
56.25
8.75
22.5
25
1,367.5
Tinola
Ingredient
Whole Chicken
Green Papaya
Garlic
Onion
Ginger
Fish sauce
Malunggay
Total(PHP)
EP Weight
8.125 kg
3 kg
93.75 g
312.5 g
217.75 g
187.5 mL
12.5 bundles
Unit Cost(PHP)
110/kg
20/kg
50/kg
40/kg
20/kg
10/375 ml
5/bundle
Total Cost(PHP)
893.75
60
4.7
12.5
2.375
5
62.5
1,040.825
Amount
8.75 kg
12.5 bundles
3.125 kg
Unit Cost(PHP)
35/kg
5/bundle
160/kg
Total Cost(PHP)
306.25
62.5
500
Ginataang Kalabasa
Ingredient
Squash
String Beans
Pork
Fish sauce
Coconut Milk
Garlic
Onion
Cooking oil
Pork broth cube
Sili
Total(PHP)
375 ml
4.44 L
0.625 kg
0.625 kg
0.375 L
12.5 pcs
125 g
Dish
Bicol Express
Lechon Kawali
Pinakbet (Tagalog)
Pork Sisig
Chicken Adobo
Pork Sinigang
Bulalo
Kare-kare
Fried Tilapia
Adobong Pusit
Dinengdeng
Tinola
Ginataang Kalabasa
Total
Average Cost
10/375 ml
15/0.474 L
50/kg
40/kg
92.75/L
5/pc
34/kg
10
140.51
31.25
25
34.6
62.5
4.25
1,176.86
D. Staffing
Employment Process and Organizational Structure
The employment process and the hiring that will be used in the proposed establishment
will be done by direct hiring for ease of acquiring employees in the initial phase of the food
establishment. The announcements regarding job availabilities will be announced through several
means such as through social media, posters, fliers, and even through word of mouth. When a
person expresses a desire to apply for the available jobs he/she will be referred to the restaurant
manager for passing the resume, and after a week or two have an initial interview with the
restaurant manager and either the head cook and dining head. After the initial interview, if the
applicant passes he/she will be asked to return for a final interview.
Figure 1 shows the organizational structure of the establishment and available job
openings. The requirements for each position available in the proposed food establishment are
given in Table 1, along with the responsibilities entailed in the position that a person wishes to
apply in.
RESTAURANT OWNER
MANAGER
HEAD COOK
HEAD WAITER/SERVER
KITCHEN CREW
SERVICE CREW
Table 1. Job Descriptions and Requirements of the Employees in the Proposed Food
Establishment.
Job Title
Restaurant Owners
Job Description
The person who makes the
decisions in the
establishments operations and
may even participate in its
supervision
Job Qualifications
Restaurant Manager
Head Waiter/Server
Food Servers(1-2)
Head Chef
The applicants for the job will also be asked to pass several requirements after
passing the final interview to the restaurant manager. The applicant will be asked to submit the
following requirements:
1. Resume with a recent 2x2 Picture
2. Birth Certificate
3. Barangay Clearance
4. Police and NBI Clearance
5. School Credentials or a Transcript of Records
6. Employment Credentials/ Proof of Employment
7. Medical Certificate
Training Process
When the applicant is accepted in the position he/she applied in he/she will be asked
to undergo a period of training. The training period of the new employees has a duration of 6
months. After 6 months of training the trainee will be assessed on whether he/she will be promoted
to a regular employee. Trainees will have a salary but will not have the same benefits as those of
the regular employees.
The daily salaries of the employees and their respective benefits are listed below in
(Table 2).
Table 2. Salaries and Benefits of Regular Employees of the Proposed Establishment
Position
Salary Range
Restaurant Manager
Head chef
Head Waiter/Crew
Benefits
Pag-ibig, SSS, PhilHealth,
Travel Allowance during
training seminars, Food
Allowance
Pag-ibig, SSS, PhilHealth, ,
Food Allowance
Pag-ibig, SSS, PhilHealth, ,
Food Allowance
Pag-ibig, SSS, PhilHealth, ,
Food Allowance
Disciplinary Actions
Any employee whose actions will be against the rules and values that the establishment has
set and detrimental to its reputation, he/she will be subjected to disciplinary actions. Depending on
the degree or how serious and how many times the offense was done/repeated the offense is there
will be different degrees of disciplinary actions.
Examples of actions that may incite disciplinary actions are poor work ethic, stealing or
theft, violence, and any form of harassment, among many others.
1. Verbal Warning
2. Written Warning
3. Suspension
4. Termination
Employee Evaluation
Employee evaluation will be done to determine the quality of work and service rendered
by the employee to the customers. It will help in finding out and making sure on whether or not
the employees are doing the set standards of the food establishment. This will also be helpful on
what things the employee may improve on. A sample employee evaluation sheet is shown in Table
3.
Name:
Employee Number:
Name of Job/Job Specification:
Scale: 1- Disagree
2- Neither Agree or Disagree
Grade
1. Does the employee come to
work on time?
2. Does the employee do what
is required of his/her job?
3. Does the employee do
his/her job as efficiently as
possible?
3-Agree
Comment
The management team believes that first impression lasts and with that, they should be able
to build good impression towards the customers in order to build loyalty. Quality service will
encourage customers to dine in frequently. Also, quality product of course will be one of the
restaurants strategies. The team will ensure that in a low price, quality product will still be served
that will ensure customers satisfaction.
Word-of-mouth will also be one of the target marketing strategies of the team. With this,
the restaurant should build a good reputation in order to gain this cost-less but very efficient
technique.
The buffet restaurant can also have tie-ups with organizations or institutions in conducting
their orientations, activities or meetings. The team can also provide sponsorship tie-ups in events,
which will be a way for the restaurants publicity, by providing discount coupons or gift checks to
draw customers in dining in.
Overall, customers satisfaction in terms of quality food and service will be the priority
marketing strategy of the team. Once customers are satisfied with the food and service of the
resturant, this will ensure their loyalty.
F. FINANCIAL ANALYSIS
A. CAPITAL INVESTMENT
Based on the Financial Analysis, the total capital to be invested for the facility is P
1,061,889. The breakdown of expenses for the Construction Cost, Equipment and Utensils, Preoperating expenses, Working Capital is specified in Table 1. In the process of obtaining the capital,
each member of team will be investing P 280,000 in order to come up with the amount P
1,960,000.00 to start the business. This amount is only a rough estimate and any excess will be
returned to the investors in equal shares. The type of ownership will be sole proprietorship that is
to be named after the leader of the team, Ezekiel Macatula. Since the contribution for the starting
Capital is equal among member, the division of monthly net profit will also be equal.
Table 1. Total Capital Investment for Cherinderia.
Construction Cost
Renovation Cost (professional fees,
construction labor cost and materials)
Engineer
1,029,056
P 15,600
Interior designer
Architect
Construction workers (e.g Painters)
Materials (e.g Paint, Interior Design)
Furnitures and Fixtures (Lighting, Table,
Chairs)
Buffer (12% of total Construction Cost)
Equipment and Utensils
Dining and Kitchen Equipment
Utensils (beverage ware, tableware, kitchen
utensils)
Pre-operating Expenses
Recipe Testing
Training Expenses (Manual & Training
materials)
Pre-opening Marketing Expenses
Permits
Business Permit
5,000.00
Building Permit
7,555.00
City tax (25% of capital investment)
Working Capital (estimated 3 % of estimated
start-up cost)
TOTAL CAPITAL INVESTMENT
P 20,000
P 25,000
P 66,200
P 300,000
P 492,000
P 110,256
P 363,590
P 10,000
P 5,000
P 10,000
P 12,555
P 265,472.25
P 7,964.17
P 1,718,367.42
The computed construction cost resulted to the amount P 1,718,367.42 since the wall around the
RGQ will be demolished in order to provide a larger space for the dining area. Evidently, the
current painting of the RGQ is not suitable for the festive theme of the restaurant so an ample
amount of money is to be allotted for its improvement. Since the menu is composed of native
dishes that does not require high end and costly equipment, the amount P 363,590 will be
sufficient. The same goes with the Equipment and Utensils since the menu is composed of solely
viand and rice. For the pre-operating expenses, more money is to be invested for the training of
staff and the development of recipes compared with the Marketing and Promotion. This is because
all of the members of the team are from the field of Nutrition and would like to ensure the quality
of food to be served. A working capital of 3% will be allotted as the working Capital. In order to
ensure that the starting of the operation is properly authorized, specific permits is to be filed and
paid for at the municipal hall. This is to ensure that the operation will run smoothly and will be in
accordance to the safety standards of the Municipality. The specific permits and the total amount
allotted for these permits can be seen in Figure 1.
For Permits:
Business Permit:
City / Municipality:
Regional:
National:
Registration Cost:
BIR Fee:
TOTAL
Building Permit:
Sanitary permit fee:
Garbage collection fee:
Health clearance:
Plumbing inspection fee:
Electrical Inspection fee:
Building permit-Filing fee:
TOTAL
P 500.00
1,000.00
2,000.00
1, 000.00
500.00
P 5,000.00
P 900.00
2,500.00
905.00
1,500.00
850.00
500.00
P 7,155.00
Figure 1.List of permits required by the Municipality of Los Baos and its corresponding
fees.
B. FOOD COST
The specific cost incurred in the preparation of the menu can be seen in Part C of Chapter VI.
It was decided that a cycle menu be formulated for variety of menu items. Hence, the daily food
cost will be different depending on the menu cycle of the day. So, for the purpose of the financial
analysis, the average of the total cost of each menu item was calculated and multiplied to 4 (number
of menu items daily) for a rough estimate of the daily food cost.
Table 2. List of menu items in the buffet and its corresponding recipe costs.
Dish
Bicol Express
LechonKawali
Pinakbet (Tagalog)
Pork Sisig
Chicken Adobo
Pork Sinigang
Bulalo
Kare-karengGulay
Fried Tilapia
AdobongPusit
Dinengdeng
Tinola
GinataangKalabasa
Total
Average Cost
900.68
1,623.02
1,367.5
1,040.825
1,176.86
18,352. 015
P 1,411.69
Food Sales:
Buffet
Others
Total
3,120,000
220,584
3,340,584
400,870
2,939,714
1,535, 557.92
C. LABOR COST
Employee Salary Schedule
Assuming that there are only 104 working days, the following salary schedule will be
followed.
Table 4. List of employees and its corresponding salary
Position
Supervising
Manager
Waiters (1)
Cook (2)
Food servers and
Kitchen Helpers(1)
Cashier
Total
Rate
Monthly
Monthly Cost
7,830
Annual Cost
93,960
P 250/ hour
P 300/ day
P 250/ day
5,000
12,000
5,000
60,000
144,000
60,000
P30/hour
4,800
34,630
57,600
P 415,000
1. The Manager and the Cook will be receiving benefits provided in the Labor Code of the
Philippines
2. PhilHealth Contribution of P 200 x 2= P 400 x 12= P 4800
Given the buffet type of food service, minimal manpower in terms of delivery of food on the
customers tables is needed. Thus, only one waiter will be hired. For the food servers. and kitchen
helpers, they will be ensuring the food in the buffet counters as well as wash used plates. Also,
two cooks were hired since the menu items are simple native dishes and only four menu items are
to be prepared daily. The salary, on the other hand is in accordance to the minimum wage in Laguna
where the foodservice is situated.
Sales Forecast
Table 8. Sales forecast of the first year of operation of Cherinderia.
Meal
No. Of
Seats
Turnover
No. Of
Covers
Average
Check
Estimated
Annual
Projected Annual
Daily Sales Operating days
Sales
Lunch
50
50
230
(P)
11,500
104
(P)
1,196,000
Dinner
Total
50
100
1
2
50
100
230
230
11,500
23,000
104
104
1,196,000
2,392,000
For the sales forecast, it is assumed that the total seating capacity is 50 during lunch and dinner.
The operating hours is during 10 am- 2 pm during lunch time and 6pm-9pm during dinner time.
The type of service is Cafeteria Service. The turnover rate is important in the calculation of the
daily sales. Since the type of service is buffet with menu items that are assumed to be unlimited in
quantity, it is expected that the customers will be maximizing the operating hours of the facility.
The average check is based on the assumption that a customer will be dining in the buffet that will
cost PHP 200 and will purchase additional food items exclusive from the buffet, namely ice cream
and soft drinks. The operating days of 104 days is based on the decision that operating during
weekends will not be lucrative because there are less students and professors staying in the campus
where the buffet is situated.
PROFIT AND LOSS STATEMENT
Estimated Gross Sales
Less: Value Added Tax (VAT) 12%
Net Sales
Less: Food and Beverage Cost (46%)
Gross Profit
Controllable expenses:
Labor Cost
Payroll
Employee Benefits
Utilities: Energy & Water (3%)
Advertising & Sales promotion
Repairs & Maintenance
General & Supplies (paper, etc.)
Depreciation
Equipment
Utensils
Funitures and Fixtures
P 3,340,584.00
- 400,870.08
2,939,713.92
-1,535, 557.92
1,404,156.00
P 415,000.00
P 4,800
P 94,409.52
P 24,000 (P 2,000/mo.)
P 34,800 (P 2,900/mo.)
P 34,800 (P 2,900/mo.)
P 98,400.00
P 1,866.67
P 71,598.00
P 779,674.19
P 624,481.81
The estimated food sales come from the computation of the total revenue in Table 5. For the
net sales, it was computed from the gross sales less the operating cost such as utilities, marketing
expenses and expenses other than the labor cost and food cost.
COMPUTATION OF TOTAL REVENUE
Table 5. Breakdown of the total revenue
Food Sales:
Buffet (93% of Sales)
Others (6% of Sales)
Total
Less VAT(12%)
P 3,120,000
P 220,584
P 3,340,584
P 400,870
P 2,939,713.92
1st Year
P 415,000.00
4,800.00
24,000.00
94,409.52
2nd Year
P 415,000.00
4,800.00
24,000.00
109,429.27
3rd Year
P 415,000.00
4,800.00
24,000.00
120,372.18
34,800.00
34,800.00
17,183.67
34,800.00
34,800.00
17,183.67
34,800.00
34,800.00
17,183.67
98,400.00
1,866.67
98,400.00
1,866.67
98,400.00
1,866.67
71,598.00
P 779,674.19
71,598.00
P 811,877.61
71,598.00
P 822,820.52
On the first year of operation, the amount of money incurred during the opening and pre-opening
is excluded from the calculation since it is assumed that the money allocated for it is included in
the capital budget. The budget allocation for the succeeding years will be the same since it assumed
to be effective. Evident increase in food and operating cost is with the assumption of increase in
profit, hence increase in customers.
Table7. Projected Income Statement for the first two years of operation
1st year
P 3,340,584.00
400,870
2,939,713.92
1,535,557.90
2nd year
P 3,647,642.40
437,717.08
3,209,925.32
1,677,915.50
3rd year
P 4,012,406.00
481,488.72
3,530,917.28
1,845,706.76
Gross Sales
Less: VAT (12%)
Net Sales
Less: Food and
Beverage Cost (46%)
Less: Expenses
P 779,674.19
811,877.61
822,820.52
Taxable Income
624,481.83
720,972.21
862,390.01
Less: Taxes (25% of
156,120.46
216,509.25
215, 597.50
taxable income)
Net Profit
P 468,361.37
P 504, 462. 96
P 646, 792.51
*A 10% increase on the profits of the succeeding years of operations was assumed.
It is assumed that there will be a 10% percent increase in profit for both the 2 nd and 3rd year
due to effective marketing strategies, loyal customers and good quality of food. With the increase
in volume of food entails increase in both food and operating costs. The food cost for the
succeeding years of operation is based on the calculated food cost for the first year which is 46%.
E. Return on Investment (ROI)
The return of investment is computed below. It will now determine the level of profitability
of the proposed business concept.
P 1,718,367.42
P 468,361.37
P 1,250,006.05
504, 462. 96
P 745,543.09
646, 792.51
Based on the calculation for the Return of Investment, the proposed facility proves to be
very feasible with positive values from the first to third year. However, with the type of food
service facility planned, making a conservative estimation would be problematic. Nonetheless,
even with possible over or under estimation of the ROI, the facility still proves to be feasible. In
order to ensure that the calculations will hold true, the budget for marketing will be maximized.
The quality of food will be ensured because most of the marketing strategies proposed rely on
customer loyalty. Moreover, energy will be conserved so that the allotted percentage of the total
sales for energy will suffice.
F. PAYBACK PERIOD
P 1,718,367.42
P 468,361.37
= 3.7 years
P 1,250,006.05
504, 462. 96
P 745,543.09
646, 792.51
G. Equipment
Description
Holding cabinet
Reference: globalindustrial.com
Reference: globalindustrial.com
Reference: globalindustrial.com
Preparation table
Reference: globalindustrial.com
2 compartment Sink
Reference: globalindustrial.com
Reference: globalindustrial.com
Ingredients Storage
Source: amazon.com
Range
H. Layout Design
1. Layout Description and Analysis
Dry storage
Preparation area
Cold storage
CR
Cook area
Dishwashing
Production area
DINING AREA
This area is located next to the door going to the dining area where the service is done. On the
other direction of the dining area door is the dishwashing area for cleaning and sanitation of all
the utensils used by the customers. The different work areas were located considering the
efficiency of workflow.
2. Site Perspective
both artificial and real bamboos are to be used. Also, some other plants are to be features such as
niyog for the center table where the foods are prepared. For the lights, it will be set as yellow for
a feeling of being in a province but with elegance. Basically, colors of nature are to be seen
inside. The figures below shows how the food establishment will likely to become inside and
out.
different principles. For the kitchen, the flow of material and personnel was taken into
consideration as to the most important principle followed by the principles of simplicity and
space efficacy. The measurement ( 21 ft x 18 ft ) of the kitchen is almost one thirds of the
whole area.
The dining area was designed using the guidelines in space allowances and relationships
for a cafeteria service establishment. Tables and chairs were positioned considering those
criteria. There are three tables for six persons, five tables for four persons, and six tables for two
persons which is equivalent to 50 persons capacity of Cherinderia.(For the detailed floor plan
and work-flow, see attached pages)
5.Model
The logo symbolizes the festive food culture in the Philippines. Distorted bandiritas were
place under the name of the food establishment, Cherinderia. The colors used for the name were
read and orange which are psychologically entices the customers to eat here.
VII. CONCLUSIONS
After evaluating and studying the proposed concept, it can therefore be concluded that the
study is feasible. Basing on the market survey conducted, the prospected targets of this
establishment which are students and professors around the UPLB campus agreed to the need of
this type of foodservice business at the chosen location. A buffet-style carinderia will be a gamechanger concept for the foodservice competition on Los Baos Laguna. It is not the perfect concept
or idea that can be imagined but with the intensive analysis of data and careful planning of the
researchers, it is ready to compete with nearby food establishments. Given the costing
computation, in years of time; it will have a profit capable of improving the proposed concept.
With continued passion and determination of the researchers of this study, this concept will surely
push through.