Dalubhasaan ng Lungsod ng Lucena

Brgy. Isabang Lucena City

ECOPONICS: AN AQUAPONICS-THEMED FARM AND RESTAURANT

An Undergraduate Study Presented to the Faculty of

Dalubhasaan ng Lungsod ng Lucena

In Partial Fulfillment of the Requirement of the Degree of

Bachelor of Science in Entrepreneurship

By:
Ana Maria Micaella M. De Mesa
Myra A. Diaz
Rocel V. Patron
 CHAPTER I

INTRODUCTION

A delectable taste of health in a plate. The tagline delineates the farm

and restaurant itself. Ecoponics is situated at Bocohan, Lucena City, is has Lot Area

of 36,797 square meters, it is a Farm and Restaurant that will develop a self-

sustaining farm through an aquaponics system, in order to lessen cost and in order

to provide customers harvests that are naturally grown without pesticides and the

like.

People nowadays are health conscious especially with what they eat and

with the surroundings they move in, that is why we conceptualized a study which

is not only for vegetarians or for health-conscious people but also for those who

want to enjoy and relax with their families, friends and loved ones and at the same

time it is affordable.

Aquaponics is the integration of recirculating aquaculture and hydroponics

in one production system. In an aquaponic unit, water from the fish tank cycles

through filters, plant grow beds and then back to the fish. In the filters, the fish

wastes is removed from the water, first using a mechanical filter that removes the

solid waste and then through a biofilter that processes the dissolved wastes. The bio

filter provides a location for bacteria to convert ammonia, which is toxic for fish,

into nitrate, a more accessible nutrient for plants. This process is called nitrification.
As the water (containing nitrate and other nutrients) travels through plant grow beds

the plants uptake these nutrients, and finally the water returns to the fish tank

purified. This process allows the fish, plants, and bacteria to thrive symbiotically

and to work together to create a healthy growing environment for each other,

provided that the system is properly balanced.

In aquaponics, the aquaculture effluent is diverted through plant beds and

not released to the environment, while at the same time the nutrients for the plants

are supplied from a sustainable, cost-effective and non-chemical source. This

integration removes some of the unsustainable factors of running aquaculture and

hydroponic systems independently. Beyond the benefits derived by this integration,

aquaponics has shown that its plant and fish productions are comparable with

hydroponics and recirculating aquaculture systems. Aquaponics can be more

productive and economically feasible in certain situations, especially where land

and water are limited. However, aquaponics is complicated and requires substantial

start-up costs. The increased production must compensate for the higher investment

costs needed to integrate the two systems. Before committing to a large or

expensive system, a full business plan considering economic, environmental, social

and logistical aspects should be conducted.

Although the production of fish and vegetables is the most visible output of

aquaponics units, it is essential to understand that aquaponics is the management of

a complete ecosystem that includes three major groups of organisms: fish, plants

and bacteria.

ECOPONICS is a farm and restaurant business which uses aquaponics as

concept. The said enterprise will produce fresh harvests that will serve as the

restaurants cuisine. It is both a farm and restaurant in one place. Harvests from the

farm will be naturally grown which is healthier than of other grown food like

vegetables, fishes and the like. Fresh harvests from the farm will be served at the

said restaurant. As additional income, excess harvests from the farm will be

supplied to potential markets in Lucena City. This is the perfect restaurant for those

people who are health conscious.

OBJECTIVES OF THE STUDY

This study aims to construct and develop a farm and restaurant in which

aquaponics cultivation will be used as concept and offers healthy cuisines.

Specifically, this study aims to:

1. To be able to conduct a research about aquaponics.

2. To be able to discuss an introduction about Ecoponics Farm and Restaurant

as a feasible business.

3. To be able to state information about the scope and limitations of the study.
OPERATIONAL DEFINITION OF TERMS

Aquaponics - it is the marriage of aquaculture (raising fish) and hydroponics (the

soil-less growing of plants) that grows fish and plants together in one

integrated system. The fish waste provides an organic food source for the

growing plants and the plants provide a natural filter for the water the fish

live in.

Hydroponics - is a subset of hydroculture, which is the growing of plants in a soil

less medium, or an aquatic based environment. Hydroponic growing uses

mineral nutrient solutions to feed the plants in water, without soil.

Aquaculture - also known as aquafarming, is the farming of fish, crustaceans,

mollusks, aquatic plants, algae, and other aquatic organisms.

SCOPE AND LIMITATIONS OF THE STUDY

This study of Ecoponics Farm and Restaurant is restricted in Lucena City

and will be based on management, marketing, technical, socioeconomic and

financial aspects of business. Respondents will be the locals of Lucena City,

specifically students, employed and unemployed with an age bracket of 10-80 years

old. The Ecoponics Farm and Restaurant will be operating as long as the business

gains profit, it will have a minimum capital of five million Pesos (5,000,000).
 CHAPTER II

MARKET STUDY

The market study will be the most essential part of the study. The process

of gathering, analyzing and interpreting information about a market, about a

product or service to be offered for sale in that market, and about the past, present

and potential customers for the product or service; research into the characteristics,

spending habits, location and needs of your business's target market, the industry

as a whole, and the particular competitors you face.

OBJECTIVES OF THE STUDY

1. To be able to conduct a survey about people who are interested in eating in

an aquaponics-themed restaurant.

2. To be able to calculate the needed population in order to identify the needed

respondents of the study.

3. To be able to illustrate or present the different analysis and findings about

the conducted survey.

4. To be able to discuss on how the researchers calculated its population, the

methods used in gathering data, and conclusions and recommendations.

METHODOLOGY

The research methodology describes how the researchers will gather the

necessary data that will be used in the study. It will discuss about the processes used

to collect information and data for the purpose of making business decisions.

Primary Data

The researchers have gathered data through the primary data using the

survey questionnaires given to the chosen respondents. The researchers computed

the number of needed respondents through Slovin Method. The population 222,624

was based from the Philippine Statistics Authority, ages 10-80 and above. A 5%

margin of error was used in case of miscalculations or change of circumstances.

The researchers arrived at a number of 400 respondents.

N
Slovin Formula: =
1+N 2

222,624
= N = Size of the target population
1+222,642(5%)2

= Respondents N = estimated sample size

e = desired margin of error

 Stratified Sampling Method was also used in order to get the number of

respondents needed in conducting the study. With this type of sampling, the

researchers divided the population into separate groups, called strata Employed,

Students and Unemployed. Then, a number of respondents for each stratum were

identified based on the prioritized target market. The table below illustrates the

needed number of respondents.

Wherein:

Total population: 400

No. of respondents / Total population (percentage)

= Percentage Rate

Solution:

Employed 250/400(100) = 62.50%

Students 100/400(100) = 25%

Unemployed 50/400(100) = 12.50%

Secondary Data

Aside from the survey, interviews were also conducted to aid in the

feasibility study. The researchers interviewed Mr. Andy Alquiros which is an owner

of an Aquaponics farm which is related to the said study. He discussed on how to

manage an aquaponics farm and restaurant which will serve as guide in conducting

this research. Mr. Andy Alquiros is also the owner of the restaurant; Giligans. He

gave the researchers some pointers and guidelines in managing a restaurant which

was a big help in conducting the study of Ecoponics. As the researchers discussed

about the feasibility study of Ecoponics to Mr. Andy Alquiros he said that it was

feasible and it was in fact what he wants to accomplish when he develops his farm,

not only to lessen his expenses but also to gain additional profit.

In addition to that, in the interview with Mr. Alquiros, he also added that he

knows someone who has already used aquaponics in growing plant produce and the

said produce is what he serves in the cuisine of his restaurant but the plant produce

are organically grown.

Another interviewee was Mr. Joselito the agriculturist of Mr. Andy

Alquiros, which explained all about constructing an aquaponics farm. The

researchers also conducted a farm visit which was the farm stated above; in which

the researches had observed on how to manage an aquaponics farm. Mr. Joselito

mentioned a lot of pointers in growing an aquaponics farm. One of it is where to

get the fish needed for the aquaponics system, the plants that can be grown using

the said system, how long does it take to harvest the vegetables (depending on its

variety) and the like.

DEMAND

The demand study will help the researchers to identify consumers which

will patronize the restaurants cuisine and the farms produce. Through the study

of demand, the researchers will easily distinguish potential customers of the said

business.

MAJOR CONSUMERS

The major consumers of Ecoponics Farm and Restaurant would be students

and employees residing at Lucena City with an age bracket of 10 years old up to 80

years old. The said market will mostly be health conscious but would still love to

be served with delicious food. All this without paying a premium and are only

willing to pay an amount between P50-P150 for the food they will purchase.

If there will be excess from farm produce, the business will be supplying to

those restaurants or businesses who are willing to avail the same vegetables as

Ecoponics.
 Purchase on Vegetable Demand
No
26%

Yes
74%

If there will be any excess of the produce of the farm, Ecoponics will supply

plant produce to potential market or consumers. The table above illustrates the

possible consumers or market of the excess of the farm produce.

PROJECTED DEMAND

The following data illustrated below are the results from the survey

conducted by the researchers which will provide accurate data for the succeeding

tables.

Interested in eating at an Aquaponics-Themed

Restaurant
No
14%

Yes
86%
 Out of 400 respondents, 344 or 86% preferred to eat in an Aquaponics-

themed restaurant. The market acceptability is 86% based on the figure above.

Frequency in eating in a restaurant

Twice a Month Once a Week
19% 23%

Once a Month
Twice a Week
32%
26%

Ecoponics Farm and Restaurant conducted a survey (from table above)

about frequency of a person eating in a restaurant. The researchers calculated the

frequency of purchase by the percentage of the respondents answers from the

survey as basis.
 Table 1

Frequency of Purchase

No. of Weeks/
No. of Time Frequency Percentage Annual
Months
Once a Week 52 92 23% 4784

Twice a Week 104 104 26% 10816

Once a Month 12 128 32% 1536

Twice a Month 24 76 19% 1824

TOTAL 400 100% 18960

Average Frequency of Purchase = Annual Frequency of Purchase / No. of

Respondents

= 18,960 / 400

= 47

Thus, the average of frequency on how often a person eats in a restaurant

according to survey is 47 times per person in a year (4 times a month). The

respondents were asked through distribution of questionnaires; who are interested

in eating in an Aquaponics-themed Restaurant.

 Table 2
Projected Population of Lucena City

Year 2018 2019 2020 2021 2022

Projected
222,642 228,452 234,414 240,532 246,809
Population

Ecoponics Farm and Restaurants target market are locals from Lucena

City, with a total population of 222,642 with an age bracket of 10 to 80 years old

and has an estimated growth rate of 2.61% according to the City Population Office

of Lucena City. (Table 2)

Table 3

Projected Demand of Ecoponics Farm and Restaurant

Year 1st 2nd 3rd 4th 5th

Population of Lucena City 222,642 228,453 234,416 240,534 246,812
Poverty Incidence 0.216 0.216 0.216 0.216 0.216
Gross Market Acceptability 86% 86% 86% 86% 86%
Target market 150,114 154,032 158,052 162,178 166,410
Frequency of Visits to restaurant 47 47 47 47 47
Total Demand 7,055,365 7,239,510 7,428,461 7,622,344 7,821,287

The data from the current table are based from the previous tables presented

above which arrived at the result of the projected demand.

SUPPLY

Supply pertains to the current suppliers which offers the same products or

services that provides the needs of the market, which serves as Ecoponics Farm

and Restaurants competitors. Competitors will be classified as direct and indirect.

COMPETITORS

Competitors are those who have the same business line. They may have

same products and services that a business offers. They can cause a business to

have loss but it can also help a business to grow and become more competitive.

Direct Competitor

Direct competition is a situation in which two or more businesses offer

products or services that are essentially the same; as such, the businesses are

competing for the same potential market.

Ecoponics Farm and Restaurants major competitor will be MJD Farm.

MJD Farm is considered as the main competitor of Ecoponics Farm and

Restaurant. The said competitor also has its own farm and restaurant, but what

makes MJD Farm and Ecoponics different is that MJD Farm produces organically

grown plants while Ecoponics produces naturally grown plants. Organic Food:

Organic food refers to items that are produced using organic means. Stringent

standards for organic food production, handling, and processing exist throughout
the world. Natural Food: Items are minimally synthesized. Stringent standards do

not exist for natural food products in many parts of the world.

Since MJD Farm is the only business establishment that offers almost the

same as Ecoponics, it serves as a competitive advantage.

Indirect Competitor

Indirect competition is the conflict between vendors whose products or

services are not the same but that could satisfy the same consumer need.

Locals from Lucena are known for being food lovers. There has been a great

number of restaurants and cafs at Lucena, be it fast-food chains, fine dining

restaurants, karinderyas and the like. Although the said competitors above may

not offer the same variety of cuisine as Ecoponics, the different restaurants and

cafes will be considered as competitors as it will cater the same consumer need

which is food.

When it comes to restaurants, cafs and other food establishments in

Lucena, there is definitely a lot to mention. But not all food establishments offer

healthy and nutritious food which is essential nowadays. There is a small restaurant

in Lucena which also offers vegetables and healthy food this restaurant is Sevillas

Veggies. Although it does not offer the exact same products and services as

Ecoponics, it is considered as an indirect competitor.

PRESENT SUPPLY

Gap analysis consists of defining the present state, the desired or `target'

state and hence the gap between them.

When it comes to restaurant or food industry, Lucena can be considered as

one of the Cities which has a lot of restaurants, it can be fast food chains, fine dining

restaurants, karinderyas and even street food and the like. Although the saturation

of restaurants in Lucena is getting higher, Ecoponics Farm and Restaurant has a

chance of being competitive when it comes to products and services offered. It

serves healthy and delicious food but in an affordable price rather than other

restaurants which also serves healthy and delicious food but has a higher price, that

is what makes Ecoponics unique.

DEMAND AND SUPPLY GAP

Although the saturation in the restaurant industry in Lucena City, entering

the food business is one of the latest trends and it is fast growing - based from

observation, the restaurants that tends to flourish the current market in Lucena City

are the following:

 Restaurant Criteria
Convenience Restaurant Concept
15% 14%

Dining
Price Environment
18% 14%

Food Quality
Service
20%
19%

The table above illustrates the criteria of people of which is at of most

importance. As illustrated at the pie chart, most respondents are concerned with the

food quality of a restaurant.

Food quality is at most important for people who are willing to avail a

product and service of a restaurant and next of course is their service. This

observation is consistent with the survey. With the said observation, Ecoponics

Farm and Restaurant will be focusing on the said criteria to fill in the need and

satisfy the customers so that there will be no hesitation for customers to come back

and avail the product and service. Hence, Ecoponics will be competitive despite the

saturation of restaurants in Lucena City.

Thus, despite a possible narrow demand and supply gap, there will always

be a room for competitive restaurants to niche in Lucena City.

MARKET SHARE

Market share represents the percentage of an industry or market's total sales

that is earned by a particular company over a specified time period. Market share

is calculated by taking the company's annual sales and dividing it by the total

demand of the industry over the same period. This metric is used to give a general

idea of the size of a company in relation to its market and its competitors.

Within the Restaurant Industry, Ecoponics will be targeting a 2.71% market

share from the total sales during its first year. In Lucena City, when there is a newly

opened restaurant, demand increases it is because of a customers curiosity. After

a while, when customers have experienced consuming its products and services,

demand suddenly decreases especially when customers are unsatisfied. Ecoponics

would like to maintain customer loyalty by satisfying their needs and expectations

like the food quality and service based on the survey conducted on which crieteria

would be most important to customers.

With the marketing strategies that will not only promote the restaurant but

change the perspective of the market from the notion that healthy food is expensive,

Ecoponics would like to promote healthy food but in an affordable price, there will

be an increase in customer demand as to the promotion of satisfying food cravings

but is healthy and affordable.

 Market Share

Restaurant Rate
Silangang Nayon 15%
Kamayan sa
15%
Palaisdaan
MJD Escape Farm 10%

Sevilla's Veggies 7%

Buddy's 7%

Antigua 7%

Hacienda Inn 6%

Dadbod 6%

Klassroom Delight 5%

Don Jaime 5%

La Barrida 5%

Caf Jungle 4%

Don Jaime 3.50%

Ecoponics Farm
2.71%
and Restaurant
Others 1.29%
TOTAL 100%
MARKETING STRATEGY

Ecoponics will advertise through word-of-mouth promotion, local media as

a marketing program wherein the business will create a Facebook page where the

researchers can post and update about the happenings.

a. Brand Logo

The business logo helps a business to be distinct from other businesses.

Ecoponics Farm and Restaurants logo has different connotations:

Ecoponics Farm and Restaurant being the name of the business.

Ecoponics came from the word Eco meaning Eco-friendly, since nowadays

being environmentally conscious is very important, and Ponics which came from

the word Aquaponics

which is the plant

growing system used by

the business. Green

Leaves and flowers

Symbolizes the plant produce of the farm and green being the color that depicts

health and youth. Last but not the least, the Blue Fish connotes the fish produce

of the farm and the color blue symbolizes water, calmness and relaxation.
 b. Product: Healthy but Affordable Food

Ecoponics is an aquaponics-themed farm and its produce will be used as

cuisines for the restaurant. Harvests from the farm like vegetables and fish produce

are naturally grown which ae perfect for health conscious customers. Additional

ingredients which are not harvested from the farm will be coming from other

suppliers like pork, poultry, salt, and the like. The said cuisines of the restaurant

will be freshly harvested from the naturally grown produce of the farm which is

healthy and delicious and at the same time is affordable. It is perfect for people who

are food lovers and the same time health conscious and doesnt need to worry about

the price.

Ecoponics Farm and Restaurants Menu consists of Salads, Sandwiches,

Soups, Main Courses, Dessert and Beverages. All of it consists Solo orders except

the Main Courses which also has Family orders for large number of customers.

Prices are affordable.

What makes Ecoponics unique is that it does not only serve scrumptious

meals, but it also gives good effect to a persons lifestyle because the ingredients

from the cuisines of the restaurant will be naturally grown and will be freshly served

to customers. The restaurant does not only cater food cravings but it also caters the

good health of its customers.

 c. Pricing

There seems to be a difference in pricing when it comes to pricing naturally

grown or fertilizer-free food when compared to the normal food that can be

bought from groceries, markets, etc. Nowadays, Fertilizer-free food may cost

expensive but has better effect to a persons health rather than paying for

inexpensive price for food but has a bad effect on a persons health.

Ecoponics Farm and Restaurants prices defies that notion. As seen in the

restaurants menu, the prices are affordable. As Ecoponics grows some of the

ingredients in its farm, it lessens the cost of the cuisines being served in the

restaurant as to compared to other restaurants that all their ingredients are being

supplied to them which add up to their cost which causes the prices of their cuisines

to be expensive.

With this, the menu prices have been based upon the survey from the

respondents affordability in consuming naturally grown food as seen on the next

page.
 Amount Willing to be Paid for Consuming Naturally
Grown Food
401-500
301-400 5%
5%
50-100
29%
201-300
18%

161-200
15%
151-160 101-150
1% 27%

Pricing will start from a range of P100 to P300 which can be affordable for

any customer. Cuisines from the restaurant will range from the prices stated above,

it will not only affect the customers budget but it will also have a good effect on a

customers health.

d. Place: The Farm and Restaurant

Ecoponics Farm and Restaurant will be located at Brgy. Bocohan, Lucena

City. Both farm and restaurant are located in one place. Ecoponics Farm and

Restaurant is not an ordinary restaurant that can be seen in the sidewalks. Even the

cuisines that are going to be introduced is not like what the other restaurants serve.
 e. Promotion / Advertising

Advertising and promotion will be essential in helping the business to be

recognized by potential customers. By this, it will help market the target consumers

of the business.

Ecoponics Farm and Restaurants promotion and advertisements will be

mostly coming from social media as it is the newest trends nowadays. Most people

nowadays are called netizens which are internet surfing almost 24/7, which can

easily be reached out by Ecoponics. The business can promote through facebook,

twitter, Instagram and the like. There will be posting of pictures of new products

and different updates of Ecoponics, different promotions, discounts, etc.

Signage, radio advertisements and flyers will also be distributed for

additional promotion and advertisements.

Ecoponics Farm and Restaurant will be creating a Facebook page wherein

the process on how the vegetables in the farm is being grown will be shown. The

process of Aquaponics will be discussed in order for people to understand that what

the restaurant will serve is naturally grown. Hence, prices of the cuisines are

inexpensive due to the supply of some ingredients in the restaurant will come from

the farm which will lessen the prices of the cuisines. That is why Ecoponics serves

healthy naturally grown food but is inexpensive compared to other restaurants.

Cost of Marketing Strategy

Illustrated below is the list of the different advertising and promotional

activities which Ecoponics will use in order to capture the attention of the market.

Quantity/ QUARTERLY
Unit Price Total Cost
Duration COST
Radio Broadcast 200.00 20 seconds 4,000.00
Brochures 20.00 80 1,600.00
Flyers 10.00 100 1,000.00
Tarpaulin 200.00 7 1,400.00
8,000.00 32,000.00

Ecoponics Farm and Restaurant will be doing promotional activities (as

listed above) quarterly (P32,000), especially for every special occasion for

example Christmas, New Year, Valentines Day and the like.

CONCLUSION

Based on the different data presented on this chapter, which is the market

study, the researchers have concluded that the study is in fact feasible. Since the

data gathered are accurate especially the ones with the result coming from the

survey and with the interview from a real-life entrepreneur which caters almost the

same business as Ecoponics Farm and Restaurant.

 CHAPTER III

TECHNICAL CONTENT

In the technical content of the study, all the technicalities, procedures,

constructions and the like are to be discussed. This chapter discusses the process of

production and services and the activities of the business. It also discusses the

machines and equipment needed for business operations. The plant layout and

geographical location are presented for the purpose of identifying the business

establishment.

OBJECTIVES

1. To be able to discuss the products and operating schedule of the business.

2. To be able to discuss the Aquaponics System and its benefits.

3. To be able to identify the machineries, equipment, furniture and fixtures

needed by the business and its repair and maintenance.

4. To be able to discuss the location of the business.

5. To be able to produce a layout of the farm and restaurant including the

greenhouse.

6. Tobe able to identify the produce of the farm including its menu.

7. To be able to identify the process of waste disposal of the study, together

with the safety and health management.

 AQUAPONICS TECHNOLOGY

Ecoponics Farm and Restaurant is catering naturally produced products.

The farm will be using a system called Aquaponics wherein waste from fish are

going to serve as fertilizers for the plants (vegetables), which will result to being

naturally grown. Insecticides, pesticides and other chemicals are not going to be

used.it

Aquaponics is the combination of recirculation aquaculture and

hydroponics. In aquaponics, you grow plants and fish together in one integrated

system. The fish waste provides a food source for the growing plants and the plants

provide a natural filter for the water the fish live in. This creates a sustainable

ecosystem where both plants and fish can thrive. Aquaponics is the ideal answer to

a fish farmers problem of disposing of nutrient rich water and a hydroponic

growers need for nutrient rich water.

Given the nature of recirculating aquaculture and hydroponics, the two

technologies combined in aquaponics, there are 2 consistent factors in all aquaponic

systems. (1) Fish are raised in tanks. (2) It is a soil-free growing system

Benefits of Aquaponics

1. Our proprietary system grows six times more per square foot than traditional

farming.
2. Aquaponics uses 90% less water than traditional farming.

3. With our system, we can grow any time of year, in any weather, anywhere

on the planet.

4. Because aquaponics recycles the water in the system, we can grow in

droughts and areas with little water.

5. Less pests to deal with since we are growing indoors.

6. Plants Grows Twice As Fast! Due to the naturally fortified water from the

fish.

7. For the commercial farmer, aquaponics produces two streams of income,

fish and veggies, rather than just one.

8. Our aquaponics farm does NOT require farmland with fertile soil, or even

land with soil; aquaponics can be done just as successfully on sand, gravel,

or rocky surfaces, which could never be used as conventional farmland.

9. Water Conservation: Aquaponics uses 90% less water than traditional

farming. Water and nutrients are recycled in a closed-loop fashion which

conserves water.

10. Land Conservation: Our system grows six times more per square foot than

traditional farming.

11. Our fertilizer is from cold blooded fish which do not carry the E. coli or

Salmonella, unlike fertilizers from warm blooded animals.

12. Fish are the fastest converter of plant protein to animal protein.
 13. Fish have no growth hormones, no mercury, no antibiotics, No P.C.B.s

14. Our Plants have no antibiotics.

15. Produce tastes better than that purchased at the grocery store (because it is

not shipped and stored for extended periods of time).

LOCATION

Ecoponics Farm and Restaurant will be located at Brgy. Bocohan, Lucena

City along Quezon Eco Tourism Road and Pan-Philippine Highway. The location

is very accessible since it is along the highway. Any mode of land transportation

can easily access the route going to Ecoponics. An establishment near to it is Inigos

Sport Complex and along the Baptist Church.

BUILDING AND FACILITIES

Ecoponics Farm and Restaurant has a Lot area of 36,797 square meters. It

has a building cost of P14, 953,100 and the cost of land is P22, 078,200.

Construction of the greenhouse would be approximately 1 to 2 months of

construction and the restaurant will be finished within 6 months of construction as

estimated by the Architect. The greenhouse will be constructed first so that there

would be no delay in growing the plant produce of the farm. While the building is

being constructed, the plants are already being grown.

BUILDING SIZE AND LAYOUT

Ecoponics Farm and Restaurant has a lot area of 36,797 square meters.

1,275.31 square meters for the restaurant and 500 square meters for the farm and

the excess 1,775.31 square meters will be for parking and other purposes.

Ecoponics Restaurant Layout

The restaurant layout is a ground floor plan. It consists of a wide dining

area, an office, staff lounge, kitchen, storage area, comfort rooms, a bar area and an

inside garden for attraction. It has a capacity of up to 250 people.

Customers may be walk-in or through reservation. Reservations may be

through email or through phone. Payment will be received by the staff, it can be of

cash or credit.
 Harvests from the farm will be directly brought to the restaurant, wherein

staff from the kitchen will receive the supplies. Other ingredients (meat, poultry,

etc.) will be coming from other suppliers. The kitchen staff will be responsible for

cooking/making the cuisines.

Ecoponics Farm Layout

The aquaponics greenhouse layout consists of 500 square meters of land.

The greenhouse consists of 2 beds, 4 water tank, bamboo support, pipe lines and a

drainage or piping system. Transparent geomembrane sheet and grow out gravel.

Looking at the perspective, a greenhouse consists of 4 water tanks at the

middle which serve as the life support of the plants. It is filled with water and fish.
The 4 water tanks are connected with plastic pipelines including the 2 beds of gravel

which are all connected to the drainage system which filters the water that came

from plants.

The 4 water tanks are filled with water. Each has a certain number of fish

approximately 10-20 fish per tank. Fish from the tank leaves off waste. The so

called waste serve as the fertilizer of the plants. The water from the tanks travel

through the pipelines going to the beds of the gravel, and the plants sips the water

and the excess water then again travels through the pipes going to the filter. From

the filter, the water goes back to the water tanks. Fish from the tanks are fed by the

plants they fertilize (ex. Lettuce are fed to the tilapia) that is why it is considered

naturally grown. Then, the cycle continues.

The researchers would like to acknowledge Mr. Andy Alquiros for the Aquaponic

Layout.

PRODUCE AND OTHER INGREDIENTS

Ecoponics Farm and Restaurant will be harvesting from its farm. The

produce from the Aquaponic farm will serve as the ingredients of the restaurant.

It will also be having a supplier of meat, poultry and other ingredients

needed which are not available in the farm. The said other ingredients will be

delivered by the suppliers to Ecoponics.

 But the produce from the farm will not only be going to the restaurant, but

it will also be supplied to markets (if there are any excess harvests).

MACHINERY AND EQUIPMENT

Ecoponics Farm and Restaurant will be having different machinery and

equipment needed by the business, which will include furniture and fixtures,

kitchen equipment, kitchen wares, utensils and office equipment and supplies. The

total cost for all the equipment is P2, 076,773.00.

Ecoponics Farm Equipment

The equipment below are used for the construction of the Aquaponics Farm.

NAME OF
EQUIPMENT
IMAGE QUANTITY PRICE TOTAL PRICE

INCA Water Tank

USEEFUL LIFE: 16 50,000.00 800,000.00
15 YEARS

Water Pipes/ Piping

System
4 15,000.00 60,000.00
USEEFUL LIFE:
10 YEARS
 INCA Water Tank
USEEFUL LIFE: 16 50,000.00 800,000.00
15 YEARS

Water Pipes/ Piping

System
4 15,000.00 60,000.00
USEEFUL LIFE:
10 YEARS

Ecoponics Restaurant Supplies and Equipment

Illustrated below are the different furniture, fixtures, machinery and

equipment needed by the restaurant.

Dining Furniture The following furniture and fixtures will be used for the dining

area and beautification of the restaurant.

NAME OF
IMAGE QUANTITY PRICE TOTAL PRICE
FURNITURE

Bar Stool
USEFUL LIFE: 5 9 1,999.00 17,991.00
YEARS
 NAME OF
IMAGE QUANTITY PRICE TOTAL PRICE
FURNITURE

MyHomeLP Paola
2-seater Dining Set
(Capuccino) 12 4,499.00 53,988.00
USEFUL LIFE: 7
YEARS

Starter Dining Set 4

Seater
12 5,500.00 66,000.00
USEFUL LIFE: 7
YEARS

Dining table -- 8
seaters
6 24,000 144,000
USEFUL LIFE: 7
YEARS

Intercon Lindsay
Walnut 42x42
Round Dinette
14 15,412.35 215,772.90
Table
USEFUL LIFE: 7
YEARS

Round 4-Piece
Outdoor Folding
Table Set 12 18,194.33 218,331.96
USEFUL LIFE: 5
YEARS
Kitchen Equipment
The following equipment will be used for kitchen purposes.

NAME OF
IMAGE QUANTITY PRICE TOTAL PRICE
EQUIPMENT

Midea FP-
20RSS550LENV-T3
USEFUL LIFE: 7 1 44,995.00 44,995.00
YEARS

Cooking
Performance Group
60-CPGV-6B-24G-
S26 6 Burner 60
Gas Range with 24 3 74,000.00 222,000.00
Griddle and Two 26
1/2 Standard
Ovens USEFUL
LIFE: 5 YEARS

Stainless Steel
Counter USEFUL 1 20,000.00 20,000.00
LIFE: 7 YEARS
NAME OF KITCHEN
IMAGE QUANTITY PRICE TOTAL PRICE
UTENSILS

Drinking Glass (200 pcs.)

200 15.00 3,000.00
USEFUL LIFE: 10 YEARS

Cooking Utensils (5 sets)

5 250.00 1,250.00
USEFUL LIFE: 10 YEARS

Chopping Board (5pieces)

3 115.00 345.00
USEFUL LIFE: 7 YEARS
 NAME OF
IMAGE QUANTITY PRICE TOTAL PRICE
EQUIPMENT

Stainless Steel
Commercial
Kitchen Work Food
Prep Table 30 x 2 2,120.00 4,240.00
48
USEFUL LIFE: 7
YEARS

Vita-Mix 5086
Drink Machine
2 7,820.00 15,640.00
Advance USEFUL
LIFE: 5 YEARS

NAME OF
IMAGE QUANTITY PRICE TOTAL PRICE
KITCHEN

Calphalon SA14H
Simply Calphalon 14
Piece Nonstick
1 7,998.00 7,998.00
Cookware Set
USEFUL LIFE:
10 YEARS

Baking wares
USEFUL LIFE: 5 1 7,000.00 7,000.00
YEARS
NAME OF KITCHEN
IMAGE QUANTITY PRICE TOTAL PRICE
UTENSILS

Victorinox
Forschner 48891
Piece Fibrox Handle
2 1,999.00 3,998.00
Knife Block
USEFUL LIFE:
10 YEARS

Dinner Ware/Utensils

The following dinner ware and utensils will be used for dining purposes.

NAME OF DINNER
WARE/UTENSILS
IMAGE QUANTITY PRICE TOTAL PRICE

Royal Doulton
Maze Dinnerware
8 1,200.00 9,600.00
in Teal USEFUL
LIFE: 5 YEARS

Dragon 20-Piece
Flatware
10 520.00 5,200.00
USEFUL LIFE:
10 YEARS
Office Supplies and Equipment

The following supplies and equipment are going to be used at the office.

NAME OF OFFICE
EQUIPMENT
IMAGE QUANTITY PRICE TOTAL PRICE

LG HSN18ISM
2.0HP Smart
Inverter Split Type
Air Conditioner 1 34,199.00 34,199.00
(White)
USEFUL LIFE: 7
YEARS

AMD Richland 16-

6400K 3.9 GHZ
Desktop PC 4 9,150.00 36,600.00
USEFUL LIFE: 7
YEARS

Canon Pixma
Ip2770 USEFUL 2 2,495.00 4,990.00
LIFE: 5 YEARS

Change POS
System
USEFUL 2 23,500.00 47,000.00
LIFE: 5
YEARS
NAME OF OFFICE
EQUIPMENT
IMAGE QUANTITY PRICE TOTAL PRICE

Fiiling Cabinet
USEFUL LIFE: 7 1 1,300.00 1,300.00
YEARS

Office Chair
USEFUL LIFE: 7 4 1,200.00 4,800.00
YEARS

NAME OF OFFICE
IMAGE QUANTITY PRICE TOTAL PRICE
EQUIPMENT

Ergodynamic MFC
L Shaped Office
Desk Pedestal
4 1,500.00 6,000.00
140x140cm
USEFUL LIFE: 7
YEARS

First Aid Box

USEFUL LIFE: 9 1 720.00 720.00
YEARS
Cleaning Materials

The following materials are used for cleaning and disposal of garbage.

NAME OF CLEANING
EQUIPMENT
IMAGE QUANTITY PRICE TOTAL PRICE

YingWei 360
Rotating Magic
Floor Spinning
2 333.00 666.00
Microfiber Mop
USEFUL LIFE: 2
YEARS

Pink S/S Handle

Dustpan W/ Broom
724042 2 490.00 980.00
USEFUL LIFE: 2
YEARS

Foot pedal Side

wheel Garbage Bin
3 1,000.00 3,000.00
USEFUL LIFE: 3
YEARS

Wet Floor Signage

USEFUL LIFE: 5 4 360.00 1,440.00
YEARS
NAME OF CLEANING
EQUIPMENT
IMAGE QUANTITY PRICE TOTAL PRICE

Rags
USEFUL LIFE: 1 10 30.00 300.00
YEAR

Fire Extinguisher
Emergency Equipment
USEFUL LIFE: 3 2 499.00 998.00
It is used in case of fires.
YEARS

NAME OF
EQUIPMENT
IMAGE QUANTITY PRICE TOTAL PRICE

INCA Water Tank

Fire Extinguisher
USEEFUL LIFE: 16 50,000.00 800,000.00
USEFUL LIFE: 3 2 499.00 998.00
15 YEARS
YEARS

CONSTRUCTION SCHEDULE
INCA
Water Water Tank Farm and Restaurant will be having 9 months of construction,
Ecoponics
Pipes/ Piping
USEEFUL LIFE: 16 50,000.00 800,000.00
System
15 YEARS 4 15,000.00 60,000.00
from planning
USEEFUL LIFE: and Corporation formation up to the start of operation. Illustrated
10 YEARS
below are the different projects and activities

Water Pipes/ Piping

System
4 15,000.00 60,000.00
USEEFUL LIFE:
10 YEARS
 APRIL MAY JUNE JULY AUGUST S EPTEMBER OCTOBER NOVEMBER DECEMBER JANUARY
PROJECT/ACTIVITIES
1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4

Planning and
Corporation Formation
Completion of
Partnership
Requirements
Construction of
Restaurant

Construction of
Aquaponics Farm

Completion of Legal
Requirements

Purchasing of Furniture
& Fixtures

Purchasing of Kitchen
Equipment, dinner
Wares, & Utensils
Purchasing of Cleaning
Materials & Emergency
Equipment

Purchasing of Office
Equipment
Hiring ,Training &
Orientation of
Employees
Harvesting of Farm
Produce

Advertising &
Promotional Activities
before opening of
Ecoponics

Grand Opening of
Ecoponics Farm &
Restaurant ( start of
business operations)
CUSTOMER TRANSACTION PROCESS

A transaction process is a collection of linked tasks which find their end in

the delivery of a service or product to a client. It has also been defined as a set of

activities and tasks that, once completed, will accomplish an organizational goal.

The Service Script below shows the process of Ecoponics Farm and Restaurant in

transacting with its customers.

Restaurant staff
assists Customers As the kitchen
towards the waiter/waitress staff
Restaurant receptionist for assists accomplishes
staff greets available seats (if customers the order,
and assits the walk-in) and/or towards the waiter/waitress
customers. ask for the table serves it to the
reservation( if the customer
customer has
reservation)

Waiter/waitres Waiter/waitres
s presents the s serves water
After eating, Customer eats menu to to customers
customer asks the food Customers and gives the
for thr bill ordered orders to
(Customer
orders food) kitchen staff

Waiter/waitres
s thank and
Waiter/waitres Issues Receipt assists Waiter/waitre
s presents the to customer customer ss quickly
then gives a
bill then survey
towards the buss out the
receives information exit gets table and do
payment sheet survey another set-up
information
sheet
INFORMATION SYSTEM DATABASE

A Database is systematically organized or structured repository of indexed

information (usually as a group of linked data files) that allows easy retrieval,

updating, analysis, and output of data. Stored usually in a computer, this data could

be in the form of graphics, reports, scripts, tables, text, etc., representing almost

every kind of information.

The three most important things in the Ecoponics Farm and Restaurant are

Sales, Customers and Employees. Each are going to have its own database which

will easily provide information for Ecoponics.

Customer

Information System includes a database about customers which has a list

about the information about customers for example: address, email, phone numbers

and the like. There would also be a database about the business suppliers which

can also be essential in helping the employees work easier when looking for the

business suppliers profile. As a survey in the script

Sales

Another database is for the Sales of Ecoponics which can help to easily

monitor the profitability and sales of the business.

Employees

Employee management will include hiring of staff, which has a process of

submission of a resume, taking an exam; when passed an interview will be

conducted. When he/she passed the interview, there would still be a screening and

the last step to employment is the training of the qualified personnel. It will include

the distribution of uniforms, discussion of schedule, signing of contract and

monitoring of employee performance. And will keep records in a database for more

detailed and organized employee records.

UTILITIES AND SUPPLIER

Electricity

Electricity is one of the most necessary thing in a business operation.

Electricity is needed for different business operations, it is needed for different

machines and equipment, lights, etc. Ecoponics Farm and Restaurant will be having

electricity consumption from Meralco, located at Brgy. Gulang-Gulang Lucena

City.

Water Supply

Another necessity even for a business, especially for a restaurant is water.

Water supply will serve as for cleaning the whole restaurant, the dining area,
kitchen, comfort rooms and the like. It will also ensure customers that food is

bacteria-free. Water Supply will be provided by Quezon Metropolitan Water

District located at Ibabang Dupay Lucena City.

Telecommunications

Communication is also important in any business operation. Ecoponics will

be coordinating with PLDT located at Brgy. Gulang-Gulang, Lucena City. There

will be an installation of a land line and internet connection which is nowadays a

necessity with any kind of business operation.

SAFETY AND HEALTH MANAGEMENT

Ecoponics Farm and Restaurant will be coordinating with different

government institutions which will give certifications and accreditations when it

comes to health and safety. The business will comply with fire safety; proper fire

exits, different kinds of fire extinguishers, installation of automatic fire sprinklers

and the like. Regular check-up of machines and equipment is also necessary to

prevent fire.

Another is the compliance with health and sanitation; wherein products and

food are up to date. Cooking utensils, dinner ware, kitchen equipment are properly

cleaned and sanitized. Food preparation area are also cleaned and sanitized. Food
handlers are properly groomed and hygienic. Ecoponics will also comply with

proper waste disposal and monthly pest controls.

Illustrated below is the kitchen staff uniform. The hat or toque is needed to

cover the hair it also prevents sweat to fall onto the face. The aprons are worn for

hygienic as well as for identification purposes. White is intended to signify

cleanliness and is generally worn by highly visible head chefs. Aprons shield the

wearer's garments from food splatters and stains. The toque is a chef's hat that dates

back to the 16th century

Kitchen Staff Uniform

 Illustrated below are some things needed in a kitchen operation to maintain

hygiene and sanitation.

USED FOR KITCHEN HYGIENE & SANITATION

KOREAN STYLE MOUTH Prevents saliva or sweat

MASK from reaching the food

Prevents bare hands

PLASTIC GLOVES from touching food that
might carry bacteria

Needed to sanitize hands

before going to
HAND SANITIZER
workplace to prevent
carrying bacteria

Washing of hands is an
SOP for any restausant
establishment. Prevents
HAND SOAP
any virus or bacteria
from spreading in the
work place

Prevents hair from

KITCHEN HAIRNET falling into the food also
an SOP for restaurants
WASTE DISPOSAL

Ecoponics waste disposal will be managed properly. The restaurant will

follow the proper waste disposal management, separation of biodegradable from

non-biodegradable. And also, the restaurant management will be coordinating with

garbage truck collectors so the wastes will not be a problem and can be managed

properly.

CONCLUSIONS

The researchers therefore conclude that the study is feasible. Supporting and

accurate data are presented in this chapter that makes Ecoponics Farm and

Restaurant viable.
 CHAPTER IV

MANAGEMENT STUDY

This part of the study identifies the management of the business. It organizes

and coordinates the activities of a business in order to achieve defined objectives.

Management study also consists of the interlocking functions of creating corporate

policy and organizing, planning, controlling, and directing an organization's

resources in order to achieve the objectives of that policy.

OBJECTIVES

1. To be able to identify the type of business ownership, licenses needed by

the business and target date of approval.

2. To be able to illustrate the businesses organizational structure.

3. To be able to provide necessary manpower requirements.

4. To be able to identify employees compensation

5. To be able to state business organizational policies.

6. To be able to provide requirements for formalizing a partnership.

TYPE OF BUSINESS OWNERSHIP

Ecoponics Farm and Restaurant shall be classified as a corporation type of

business. All operations and concern regarding the business shall be discussed by

the stockholders.

In order to comply with the legalities and formalize the partnership, the

partners shall need the following licenses and permits:

Certificates issued
Security and Exchange Commission SEC Certificate
Department of Trade and Industry Ceftificate of Registration of Business Name
City Mayor's Office Mayors permit
Sanitary permit
Fire inspection permit
Health certification permit
Clearance Fee
Documentary stamp tax
Business Plate
Solid waste Management Fee
Barangay Hall Barangay permit
BIR Registration No.
Bureau of Internal Revenue Partnership's Tax Identification Number
Registration of books, invoices, and official receipt

The certificates and licenses listed above has a total cost of P10, 705.

Ecoponics Farm and Restaurants target date of approval is approximately 2 to 4

months before the start of the business operations. Security and Exchange

Commission, Department of Trade and Industry and Bureau of Internal Revenue

will be settled at Grand Central Lucena City. Permits that will be settled under City
Mayors Office will also be settled at Lucena City at the City Hall. Permits that will

also be settled at the Baranggay Hall will be settled at Baranggay Bocohan, Lucena

City.

ORGANIZATIONAL STRUCTURE

Ecoponics Farm and Restaurants employees are illustrated in hierarchical

position. The organizational structure of Ecoponics illustrate the business

management.
MANPOWER REQUIREMENTS

Stated below are the employees and staff of Ecoponics, for both restaurant

and farm along with their work classifications, qualifications and requirements

needed by the business. All employees of Ecoponics are going to be hired.

General Manager

Ecoponics Farm and Restaurants owners are also its general manager. As

the general manager, he sees to it that all aspects of the restaurant and park are

functioning effectively and efficiently. He/she establishes restaurant business plan

by surveying restaurant demand; consulting the market; identifying and analyzing

competitors. He/she also take part in preparing financial, marketing, sale projection,

analyses and estimates.

The General Manager controls purchases and inventory meeting with the

accountant; negotiating prices and contracts; developing preferred supplier lists;

reviewing and evaluating usage reports; analyzing variances and making corrective

actions. He/ she is also responsible for restaurant and bar human resource objectives

by recruiting, selecting, orienting, training, assigning, scheduling, coaching,

counseling, and disciplining management staff; communicating job expectations;

planning, monitoring, appraising, and reviewing job contributions; planning and

reviewing compensation actions; enforcing policies and procedures.

 The general manager also accomplishes goals by accepting ownership for

accomplishing new and different requests; exploring opportunities to add value to

job accomplishments and directs other employees and the business itself in

achieving the objectives.

Manager

The manager's role and job description are at a pay grade or job

classification level of the organization that integrates functions and departments for

implementation success. The manager who is responsible for a department

normally has directly reporting employees for whom he or she has leadership

responsibility.

The manager should at least have 1 to 2 years of experience in managing a

restaurant. Can either be a male or a female.

OPERATIONS DEPARTMENT (Restaurant Staff)

Kitchen Manager/ Head Chef

First and foremost the Kitchen Manager/Head Chef should have passion for

food, have an experience working in a professional kitchen and have an experience

of running his/her own section in a professional kitchen thus, leadership skill is also

essential. He/she is responsible for all operations involved inside the kitchen.

He/she makes sure that his/her staffs are trained on proper food preparation and
kitchen safety techniques. The Kitchen Manager/Head Chef primary duty is the

continued efficiency of the kitchen and production of consistent, quality food.

He/she also takes part in the creation of recipes and the preparation of advanced

items, while assigning less complicated tasks to assistant chefs and cooks.

The Kitchen manager/Head Chef, in addition, ensures that the restaurants

standards are upheld the food is prepared properly in correct proportions, and

served in the fastest time possible. He sees to it that the kitchen is cleaned on a

regular schedule, food is disposed of properly and that the kitchen meets sanitary

requirements. He also manages the stocks of food, controlling budget and keeping

accurate records. He also oversees health and hygiene procedures. He is also

responsible for recruiting, training and developing the kitchen staff.

The Kitchen Manager/Head Chef can either be male or female, a graduate

of Culinary Arts and should have at least 3 years meaningful experience.

Assistant Chef

Working closely with and reporting to the Head Chef and Assistant Chef

should be responsible for preparing food as directed by the head chef, plating the

dishes and ensures the quality of dishes. They are responsible for knowing how to

use different variety of techniques in preparing dishes he/she assigned to. The

position will be responsible for all aspects of the kitchen when the Head Chef is

absent.
 The Assistant Chef can either be male or female, a graduate of culinary arts

or have at least 2 years of experience.

Prep Cook

Prep cook is responsible for assisting in the preparation of ingredients such

as chopping vegetables, making salads, and putting together entrees and also

required for food service from a sanitary environment. Assists in all aspects of food

preparation and presentation as needed. The Prep Cook is responsible for setting up

work stations and ingredients, so food can be prepared according to recipe. This

position will be required to perform any other job-related duties as requested by

management. The responsibility also includes cleaning and sanitizing all

production equipment, surface areas for working and the whole kitchen areas as per

the cleaning schedules and procedures.

Prep cook should have some basic formal training from culinary arts school

or a vocational school. The prep cook can either be male or female.

Waiter/waitresses

Waiter and waitresses would be responsible for assisting the customers,

greeting them and seating them according to their preferences. They present menus

to customers and answer questions about menu items, making recommendations

upon request and are the one who collect payments from customers. Check with
customers to ensure that they are enjoying their meals and take action to correct

any problems. Waiter/waitresses serve food and/or beverages to customers.

Remove dishes and glasses from tables or counter, and take them to kitchen for

cleaning.

Waiters/waitresses should have high school diploma or equivalent are

preferred. Excellent oral communication skills required. Positive interpersonal

required and can handle local language and English.

Dishwashers

The dishwashers are responsible for maintaining cleanliness and sanitation

standards for china, glassware, tableware, cooking utensils, etc. they should also be

knowledgeable in using machine and manual cleaning methods. They should also

ensure the dishwashing are is maintained as a clean safe and sanitary facility.

OPERATIONS DEPARTMENT (Farm Staff)

Agriculturist

The Agriculturist is the one who oversee the whole operation in the farm

(greenhouse). He/she is responsible in managing the duties and responsibilities of

the gardeners. Knowledgeable about the mechanics of aquaponics, will inspect to

ensure if repair and maintenance is needed. Ensure the quality and health of the
produce. They should be responsible in making the procedures, rules and

regulations in maintaining of every produce in the farm.

Agriculturists should be a graduate of agriculture and has a vast knowledge of

agriculture and fishery, male or female, have at least 3 years of experience in the

agriculture industry.

Gardeners

Gardeners should be responsible on the direct handling of the produce. They

ensure the health and quality of all produce. Gardeners would follow the procedures

made by the agriculturist. They are the one who would harvest produce if produce

matured enough.

Gardeners should be knowledgeable about agriculture and fishery

preferably had taken a vocational school. They should have at least 2 years of

experience in growing crops and fishery.

FINANCE & PURCHASING DEPARTMENT

Accountant

The accountant is responsible for the accounting and financial matters of

the business, for financial reports presentation and the verification of documents,

receipts and disbursements and management of cash flows. Duties also includes

reconciling orders and receipts, making food and supplies budget, manage the
payroll and vendor payments. Take charge with deposits, sales tax and weekly

reports.

The accountant should be a graduate of BS Accountancy, preferably a

Certified Public Accountant, male or female and should have a meaningful

experience of at least 2 years in accounting related job.

Cashier

Primary restaurant cashier duty is to process payment for beverage items

and food sales to foster customers satisfaction. Cashier handles cash and sales

transactions. He/she serves each visitor respectfully, swiftly and effectively during

his/her shift and may need to perform smaller tasks to assist other personnel in

quickly rounding up and closing the restaurant for the night.

Cashier should have a high school diploma with experience in related

position, as well as working knowledge in a similar role. Proficiency in using

computers, calculators and other machines required for transactions.

Driver

The driver is the one who will deliver the farm produce to specific retailers.

The driver should have knowledge in driving and has knowledge about different

places in Lucena. He is required to submit a drivers license and at least a high

school graduate.
SECURITY & MAINTENANCE DEPARTMENT

Maintenance Person

Maintenance persons are responsible for the overall maintenance of the

farm and the restaurant. He is responsible for the cleanliness of the restaurant, the

maintenance and repair of machines and equipment.

Maintenance person should have at least knowledge in fixing or repairing

machines, equipment, changing of lights and the like. He should be at least high

school graduate. Should have at least 2 years of experience in repairing any

equipment or machines.

Security Guard

The Security Guard is responsible for guarding and inspecting the whole

establishment. He can also help the maintenance person by any chance.

Security guards should come from an agency. He should also have

recommendations from old employer, good moral character and at least high school

graduate and at least have 2 years of experience.

Listed below are the requirements required by the employer:

1. Resume or Curriculum Vitae (CV)

2. PhilHealth ID

3. SSS ID

4. BIR ID

5. PAG-IBIG ID

6. NBI Clearance

7. Police Clearance

8. Baranggay Clearance

9. Medical Clearance

10. Certificate of Employment from previous employer (if any)

11. Good moral character (if any)

COMPENSATION

Ecoponics Farm and Restaurants shall be compensated depending on the number of hours they have worked for.

They will be having their benefits like PAG-IBIG, PHILHEALTH AND SSS. Increase in their compensation will be

depending on their performance and years of service. The General Managers or the owners, rather, shall be getting their

salary or compensation from the profit of the business as to the agreement of the partners.

Personnel No. of Employees Daily Rate Rest days No. of Working days Weekly Salary Monthly Salary Annual Salary
Gen. Manager 2 980.00 1 6 5,880.00 23,520.00 282,240.00
Manager 2 680.00 1 6 4,080.00 16,320.00 195,840.00
Head Chef 2 500.00 1 6 3,000.00 12,000.00 144,000.00
Asst. Chef 2 450.00 1 6 2,700.00 10,800.00 129,600.00
Prep Cook 2 400.00 1 6 2,400.00 9,600.00 115,200.00
Waiter/Waitress 6 376.00 1 6 2,256.00 9,024.00 108,288.00
Dishwasher 2 376.00 1 6 2,256.00 9,024.00 108,288.00
Accountant 2 450.00 1 6 2,700.00 10,800.00 129,600.00
Cashier 2 376.00 1 6 2,256.00 9,024.00 108,288.00
Agriculturist 2 400.00 1 6 2,400.00 9,600.00 115,200.00
Gardeners 4 360.00 1 6 2,160.00 8,640.00 103,680.00
Janitor/Janitress 2 360.00 1 6 2,160.00 8,640.00 103,680.00
Security Guard 2 360.00 1 6 2,160.00 8,640.00 103,680.00
Driver 2 360.00 1 6 2,160.00 8,640.00 103,680.00
Total 6,428.00 38,568.00 154,272.00 1,851,264.00
 EMPLOYEE CONTRIBUTIONS
SSS PAG-IBIG PHILHEALTH Withholding Tax Monthly Contribution Annual Conribution
581.30 470.40 287.50 3,461.95 4,801.15 57,613.80
581.30 326.40 200.00 1,719.83 2,827.53 33,930.30
436.00 240.00 150.00 710.25 1,536.25 18,435.00
363.30 216.00 125.00 440.68 1,144.98 13,739.70
345.20 192.00 112.50 - 649.70 7,796.40
327.00 180.48 112.50 - 619.98 7,439.76
327.00 180.48 112.50 - 619.98 7,439.76
363.30 216.00 125.00 440.68 1,144.98 13,739.70
327.00 180.48 112.50 - 619.98 7,439.76
345.20 192.00 112.50 - 649.70 7,796.40
308.80 172.80 100.00 - 581.60 6,979.20
308.80 172.80 100.00 - 581.60 6,979.20
308.80 172.80 100.00 - 581.60 6,979.20
308.80 172.80 100.00 - 581.60 6,979.20
5,231.80 3,085.44 1,850.00 6,773.38 16,940.62 203,287.38

1st Year 2nd Year 3rd Year 4th Year 5th Year
Salaries and Wages 1,851,264.00 1,869,776.64 1,888,474.41 1,907,359.15 1,926,432.74
13th Month Pay 154,272.00 155,814.72 157,372.87 158,946.60 160,536.06
Government Contribution 203,287.38 205,320.25 207,373.46 209,447.19 211,541.66
Total 2,208,823.38 2,230,911.61 2,253,220.73 2,275,752.94 2,298,510.47
OPERATING SCHEDULE

Restaurant

Ecoponics Restaurant will be operating seven (7) days a week, ten (10) to

twelve (12) hours per day including overtime. Working hours will be from 10:00am

to 10:00pm. Ecoponics will have a 360 day of operation. Employees will be having

shifts; morning and afternoon depending on their field of work. There is a different

schedule for those who work in the office.

Farm

Ecoponics Farm will be operating seven (7) days a week. The plants

(vegetables) will be monitored by the Agriculturist and the gardeners. Produce will

be harvested every three (3) months depending on the variety of the plants

(vegetables).

ORGANIZATIONAL POLICIES

Organizational policies are created to make an agreement between

employer and employee and partners to partners. By implementing the management

agreement and confidentiality agreement, it will not only protect the business

image and reputation, but it can also build trust, discipline, and integrity not only

for employees but also to owners.

Management Agreement

A Management Agreement shall be enforced between the general manager

and employees. The agreement shall contain all company policies and procedures

that should be observed at all times. The definition of grounds which could result

to the termination of the agreement is also stated in the contract.

Confidentiality Agreement

Ecoponics shall enforce the management, employees, and its partners to

sign a confidentiality contract where they should protect the restaurants recipes,

operating systems, policies and procedures.

Having a confidentiality agreement is necessary in protecting the

restaurants trade secrets and showing the stakeholders that the management takes

the business seriously.

CONCLUSIONS

The researchers therefore conclude that the study is feasible based from the

research conducted by the researchers as to how to manage a business as stated at

this whole chapter.

 CHAPTER V

FINANCIAL STUDIES

Financial analysis is the examination of a business from a variety of

perspectives in order to fully understand the greater financial situation and

determine how best to strengthen the business.A financial analysis looks at many

aspects of a business from its profitability and stability to its solvency and liquidity.

OBJECTIVES

1. To be able to discuss the different assumptions in the financial study.

2. To be able to present Ecoponics Financial Analysis.

3. To be able to illustrate the different Financial Statements of Ecoponics.

Major Assumptions and Notes to Financial Position

For Five Years Projection

1. Stockholder Registration and Information

The Corporation will be created by a written agreement and will comply

with the registration procedures of the Security and Exchange Commission,

Department of Trade and Industry. The business primary purpose is to give service

and earn profit from the Ecoponics Farm and Restaurant in our target market in

Lucena City, Quezon Province.

The business register office will be at Bocohan, Lucena City.

2. Cash

This account represents net cash flow. Daily sales and cash inflow will be

deposited to Company's bank account every end of the business operation day. Cash

on hand of P 360,000 will be handled by Ms. Rocel V. Patron, petty cash custodian

and cash in bank is estimated to earn interest at bank deposit rate of 0.12% per

annum. Interest income presented under other income is amounted to P16, 178 .00

in the first year. See Statement of cash Flow for the detailed cash activities for the

five-year projection.
 3. Fixed Assets

This account consist of:

Estimated Useful Depreciation Annual

List of equipment No. of Item Cost Total Cost Salvage Value
Life Rate Depreciation
Computer set 4 9,190.00 36,760.00 3,676.00 7 14% 5,251.43
Change POS System 2 23,500.00 47,000.00 4,700.00 5 20% 9,400.00
Printer 2 2,495.00 4,990.00 499.00 5 20% 998.00
Spoon and fork (dozen) 15 520.00 7,800.00 780.00 10 10% 780.00
Plates(set) 15 1,200.00 18,000.00 1,800.00 5 20% 3,600.00
Drinking Glass(pieces) 200 15.00 3,000.00 300.00 10 10% 300.00
Chopping Board 3 115.00 345.00 34.50 7 14% 49.29
Cooking Utensils 5 250.00 1,250.00 125.00 10 10% 125.00
Cookware Set 1 44,995.00 44,995.00 4,499.50 7 14% 6,427.86
Baking wares 1 34,199.00 34,199.00 3,419.90 7 14% 4,885.57
Handle Knife 1 900.00 900.00 90.00 5 20% 180.00
Refrigerator 3 74,000.00 222,000.00 22,200.00 5 20% 44,400.00
Air type Conditioner 1 20,000.00 20,000.00 2,000.00 7 14% 2,857.14
Water Dispenser 2 600.00 1,200.00 120.00 7 14% 171.43
Gas range w/starndard oven 3 2,500.00 7,500.00 750.00 7 14% 1,071.43
Stainless Steel Counter 2 7,820.00 15,640.00 1,564.00 5 20% 3,128.00
Stainless Steel Commercial 2 7,998.00 15,996.00 1,599.60 10 10% 1,599.60
Telephone 1 7,000.00 7,000.00 700.00 5 20% 1,400.00
Mixer 2 1,990.00 3,980.00 398.00 10 10% 398.00
Inca 16 50,000.00 800,000.00 80,000.00 15 7% 53,333.33
Piping System 4 15,000.00 60,000.00 6,000.00 10 10% 6,000.00
Wet Floor Signage 4 360.00 1,440.00 144.00 5 20% 288.00
Fire Extinguisher 2 499.00 998.00 99.80 5 20% 199.60
Total Equipment 1,354,993.00 146,843.68
 Estimated Useful Depreciation Annual
List of furniture and fixture No. of Item Cost Total Cost Salvage Value
Life Rate Depreciation
Office Table 4 1,500.00 6,000.00 600.00 7 14% 857.14
Office Chair 4 1,200.00 4,800.00 480.00 7 14% 685.71
Office Drawer 4 2,300.00 9,200.00 920.00 7 14% 1,314.29
Dining Set (4 seater) 12 5,500.00 66,000.00 6,600.00 7 14% 9,428.57
Dining Set (2 seater) 12 4,499.00 53,988.00 5,398.80 7 14% 7,712.57
Dining Set (8seater) 6 24,000.00 144,000.00 14,400.00 7 14% 20,571.43
Round Table (4 seater) 14 15,412.00 215,768.00 21,576.80 7 14% 30,824.00
Round folding table 12 18,194.00 218,328.00 21,832.80 5 20% 43,665.60
Bar stool 9 1,999.00 17,991.00 1,799.10 5 20% 3,598.20
Cabinet 1 1,300.00 1,300.00 130.00 5 20% 260.00
Total Furniture & Fixtures 737,375.00 118,917.51

Building 14,953,100.00 14,953,100.00 1,495,310.00 20 5% 747,655.00

 Net book value of fixed assets are computed as follows:

COST DEPRECIATION NET BOOK VALUE

Equipment Furniture& Building Total Equipment Furniture& Building Accummulated Equipment Furniture&Building Total
Fixtures Fixtures Depreciation Fixtures
Beginning, Year 1 1,208,149.32 618,457.49 14,205,445.00 1,826,606.81
Additions/Depreciation 1,354,993.00 737,375.00 14,953,100.00 17,045,468.00 146,843.68 118,917.51 747,655.00 1,013,416.19
Disposal
Ending, Year 1 1,354,993.00 737,375.00 14,953,100.00 17,045,468.00 146,843.68 118,917.51 747,655.00 1,013,416.19 1,208,149.32 618,457.49 14,205,445.00 1,826,606.81
Beginning, Year 2 1,354,993.00 737,375.00 14,953,100.00 17,045,468.00 146,843.68 118,917.51 747,655.00 1,013,416.19 1,208,149.32 618,457.49 14,205,445.00 1,826,606.81
Additions/Depreciation 146,843.68 118,917.51 747,655.00 1,013,416.19 146,843.68 118,917.51 747,655.00 265,761.19
Disposal
Ending, Year 2 1,354,993.00 737,375.00 14,953,100.00 17,045,468.00 293,687.35 237,835.03 1,495,310.00 2,026,832.38 1,061,305.65 499,539.97 13,457,790.00 1,560,845.62
Beginning, Year 3 1,354,993.00 737,375.00 14,953,100.00 17,045,468.00 293,687.35 237,835.03 1,495,310.00 2,026,832.38 1,061,305.65 499,539.97 13,457,790.00 1,560,845.62
Additions/Depreciation 146,843.68 118,917.51 747,655.00 1,013,416.19 146,843.68 118,917.51 747,655.00 265,761.19
Disposal
Ending, Year 3 1,354,993.00 737,375.00 14,953,100.00 17,045,468.00 440,531.03 356,752.54 2,242,965.00 3,040,248.57 914,461.97 380,622.46 12,710,135.00 1,295,084.43
Beginning, Year 4 1,354,993.00 737,375.00 14,953,100.00 17,045,468.00 440,531.03 356,752.54 2,242,965.00 3,040,248.57 914,461.97 380,622.46 12,710,135.00 1,295,084.43
Additions/Depreciation 146,843.68 118,917.51 747,655.00 1,013,416.19 146,843.68 118,917.51 747,655.00 265,761.19
Disposal
Ending, Year 4 1,354,993.00 737,375.00 14,953,100.00 17,045,468.00 587,374.70 475,670.06 2,990,620.00 4,053,664.76 767,618.30 261,704.94 11,962,480.00 1,029,323.24
Beginning, Year 5 1,354,993.00 737,375.00 14,953,100.00 17,045,468.00 587,374.70 475,670.06 2,990,620.00 4,053,664.76 767,618.30 261,704.94 11,962,480.00 1,029,323.24
Additions/Depreciation 146,843.68 118,917.51 747,655.00 1,013,416.19 146,843.68 118,917.51 747,655.00 265,761.19
Disposal
Ending, Year 5 1,354,993.00 737,375.00 14,953,100.00 17,045,468.00 734,218.38 594,587.57 3,738,275.00 5,067,080.95 620,774.62 142,787.43 11,214,825.00 763,562.05
 Fixed assets of the company are stated at historical cost less accumulated

depreciation and any accumulated impairment losses. At its initial recognition,

historical cost includes expenditure that is directly attributable to bringing the asset

to the location and condition necessary for it to be capable of operating in the

manner intended by management.

The depreciation method that the Company used is straight-line

computation. Salvage value is ten percent (10%) of the purchase cost of the

equipment and furniture and fixtures except for the monoblocs . The depreciation

expense of equipment and furniture and fixtures is booked under cost of sales and

operating expenses, respectively.

4. Accrued Expenses

This account pertains to accrued expense at the end of the accounting

period. All expenses are expected to be paid 30 days after the billing statement date.

This consist of the following:

1st Year 2nd Year 3rd Year 4th Year 5th Year
Utility Expense 276,000 289,800 304,290 319,505 335,480
Telecommunication 21,600 22,680 23,814 25,005 26,255
297,600 312,480 328,104 344,509 361,735
 5. Stockholders' Capital

This account pertains to stockholders' agreement regarding capital

contribution and withdrawals. The stockholders of the corporation are Ms. Ana

Maria Micaella De Mesa , Ms. Myra Diaz and Ms. Rocel Patron, agreed to

contribute equally for the total projected cost amounting to P40,000,000.00 (P

13,333,333.33 per partner). Each partners also agreed to have P 100,000.00

withdrawals starting in the fourth year of the company's operation.

6. Sales

WEEKLY SALES MONTHLY SALES ANNUAL SALES

288,370.00 1,153,480.00 13,841,760.00

 PURCHASES PURCHASES SALES
ECOPONICS FARM AND RESTAURANT MENU SALES (Monday-Friday) WEEKLY SALES
(Monday-Friday) (SAT & SUN) (SAT&SUN)
SOLO FAMILY SOLO FAMILY SOLO FAMILY SOLO FAMILY SOLO FAMILY
SALADS
Mango and Spinach Salad with War 80 5 2000 7 1120 3120
Bacon Potato Salad 75 3 1125 4 600 1725
Shrimp and Lettuce Salad with Anchovy 90 7 3150 6 1080 4230
SANDWICHES 17
Grilled Ham and Cream 60 7 2100 6 720 2820
Bacon and Egg Club 55 4 1100 5 550 1650
Fish Fillet Sandwich 60 4 1200 6 720 1920
SOUP 17
Mushroom Soup 40 9 1800 7 560 2360
Nido Soup 50 6 1500 10 1000 2500
MAIN COURSE
Chicken/Cod Fish Dippers 150 335 28 9 21000 15075 31 14 9300 9380 54755
Tilapia Sweet Sour with Pineapple 140 330 27 12 18900 19800 28 15 7840 9900 56440
Sinigang Pork/Bangus 130 285 30 14 19500 19950 25 16 6500 9120 55070
Grilled Pork/Chicken/Tilapia 130 260 17 11 11050 14300 19 12 4940 6240 36530
Torta Congreho 120 250 10 7 6000 8750 15 12 3600 6000 24350
DESSERT
Quick Tiramissu with Chocolate 70 7 2450 6 840 3290
Fruit Salad 80 14 5600 17 2720 8320
Leche Flan 60 9 2700 11 1320 4020
BEVERAGES
Avocado Smoothie 70 15 5250 28 3920 9170
Mango Smoothie 80 17 6800 27 4320 11120
Lemonade/Pineapple/Calamansi Juice 30 28 4200 13 780 4980
288,370.00

PROBABILITY OF ESTIMATED CUSTOMERS AND ESTIMATED CUSTOMERS AND

MENU CLASSIFICATIONS
CUSTOMER PURCHASE PER DAY (MON-FRI) PURCHASE (SAT & SUN)
SALAD 5% 15 17
SANDWICHES 5% 15 17
SOUP 5% 15 17
MAIN COURSE 55% 165 187
DESSERT 10% 30 34
BEVERAGES 20% 60 68
100% 300 340
 7. Cost of Sales

This account consists of:

1st Year 2nd Year 3rd Year 4th Year 5th Year
Supplies 95,100.00 99,855.00 104,847.75 110,090.14 115,594.64
LPG Gas 25,380.00 25,380.00 25,380.00 25,380.00 25,380.00
Seedlings/Fingerlings 44,000.00 46,200.00 48,510.00 50,935.50 53,482.28
Raw Materials 2,766,120.00 2,904,426.00 3,049,647.30 3,202,129.67 3,362,236.15
Personnel 388,200.00 392,082.00 396,002.82 399,962.85 403,962.48
Depreciation 1,013,416.19 1,013,416.19 1,013,416.19 1,013,416.19 1,013,416.19

Freight In: 3,000.00 3,030.00 3,060.30 3,090.90 3,121.81

TOTAL 4,335,216.19 4,484,389.19 4,640,864.36 4,805,005.24 4,977,193.55

*Estimated monthly purchasing cost of Liquefied petroleum gas (LPG) is P 705.00 and the restaurant

will consume three (3) LPG's per month.

Monthly projected cost of raw materials:
Raw Materials Quantity Unit Cost Monthly Cost Annual Cost
Chicken (kls.) 250 110 27,500.00 330,000.00
Chicken Breast (kls.) 70 120 8,400.00 100,800.00
Bread Crumbs (kls.) 10 108 1,080.00 12,960.00
Egg (tray) 75 120 9,000.00 108,000.00
Flour (sack) 1 1300 1,300.00 15,600.00
Salt(kls.) 25 7 175.00 2,100.00
Mayonnaise (galloon) 5 750 3,750.00 45,000.00
Sweet and Sour sauce 20 110 2,200.00 26,400.00
Cornstarch (kls) 10 250 2,500.00 30,000.00
Bell pepper(kls) 6 180 1,080.00 12,960.00
Carrots (kls) 35 60 2,100.00 25,200.00
Pineapple Chunks (can) 150 35 5,250.00 63,000.00
Pork (kls) 300 180 54,000.00 648,000.00
White Sugar (kls) 25 52 1,300.00 15,600.00
Vinegar (liter) 10 32 320.00 3,840.00
Oil (galloon) 15 270 4,050.00 48,600.00
Garlic (kls) 25 120 3,000.00 36,000.00
Radish (kls) 10 55 550.00 6,600.00
green chili (kls) 5 150 750.00 9,000.00
Pepper (kls.) 2 280 560.00 6,720.00
Onions (kls) 25 120 3,000.00 36,000.00
Kangkong (bundle) 5 80 400.00 4,800.00
Sinigang mix (sachet) 100 11 1,100.00 13,200.00
Atsara(bottle) 12 120 1,440.00 17,280.00
Ground pork (kls) 30 157 4,710.00 56,520.00
Cabbage (kls) 15 80 1,200.00 14,400.00
Graham(packs) 15 43 645.00 7,740.00
Condensed Milk 75 28 2,100.00 25,200.00
All Purpose Cream 30 40 1,200.00 14,400.00
Chocolate Syrup 8 150 1,200.00 14,400.00
Fruit cocktail 30 175 5,250.00 63,000.00
Evaporated Milk 25 26 650.00 7,800.00
Vanilla 10 62 620.00 7,440.00
Fresh Mango (kls.) 50 75 3,750.00 45,000.00
Avocado (kls.) 40 25 1,000.00 12,000.00
Pineapple Juice(can) 20 65 1,300.00 15,600.00
Fresh Lemon (kls) 25 180 4,500.00 54,000.00
Calamansi (kls) 25 50 1,250.00 15,000.00
Spinach (kls) 7 230 1,610.00 19,320.00
Peanuts (kls) 5 80 400.00 4,800.00
Bacon (kls) 15 120 1,800.00 21,600.00
Potato (kls) 25 70 1,750.00 21,000.00
Shrimp(kls) 60 350 21,000.00 252,000.00
Anchovies (kls.) 5 70 350.00 4,200.00
Ham (kls) 30 250 7,500.00 90,000.00
Loaf Bread 60 45 2,700.00 32,400.00
Cheese(bar) 10 168 1,680.00 20,160.00
Tartar sauce(bottle) 5 140 700.00 8,400.00
Buns 50 200 10,000.00 120,000.00
Mushroom(can) 30 48 1,440.00 17,280.00
Cream of Mushroom 15 60 900.00 10,800.00
Rice 7 1900 13,300.00 159,600.00
Chicharon(packs) 20 60 1,200.00 14,400.00
Total 230,510.00 2,766,120.00
Monthly Projected Cost of Seedlings and Fingerlings:

Seedlings Unit Cost Monthly Cost Annual Cost

Lettuce (per seeds) 1360 1.50 2040 24480
Tomatoes (per packs) 16 35 560 6720
Total 2,600.00 31,200.00

Fingerlings Unit Cost Quarterly Cost Annual Cost

Codfish 400 2.00 800 3200
Tilapia 800 2.00 1600 6400
Bangus 400 2.00 800 3200
Total 3,200.00 12,800.00
 8. Personnel

Personnel No. of Employees Hours per Day Daily Rate Rest days No. of Working days Weekly Salary Monthly Salary Annual Salary
Gen. Manager 2 8 980.00 1 6 5,880.00 23,520.00 282,240.00
Manager 2 8 680.00 1 6 4,080.00 16,320.00 195,840.00
Head Chef 2 8 500.00 1 6 3,000.00 12,000.00 144,000.00
Asst. Chef 2 8 450.00 1 6 2,700.00 10,800.00 129,600.00
Prep Cook 2 8 400.00 1 6 2,400.00 9,600.00 115,200.00
Waiter/Waitress 6 8 376.00 1 6 2,256.00 9,024.00 108,288.00
Dishwasher 2 8 376.00 1 6 2,256.00 9,024.00 108,288.00
Accountant 2 8 450.00 1 6 2,700.00 10,800.00 129,600.00
Cashier 2 8 376.00 1 6 2,256.00 9,024.00 108,288.00
Agriculturist 2 8 400.00 1 6 2,400.00 9,600.00 115,200.00
Gardeners 4 8 360.00 1 6 2,160.00 8,640.00 103,680.00
Janitor/Janitress 2 8 360.00 1 6 2,160.00 8,640.00 103,680.00
Security Guard 2 8 360.00 1 6 2,160.00 8,640.00 103,680.00
Driver 2 8 360.00 1 6 2,160.00 8,640.00 103,680.00
Total 6,428.00 38,568.00 154,272.00 1,851,264.00
 EMPLOYEE CONTRIBUTIONS
Personnel SSS PAG-IBIG PHILHEALTH Withholding Tax Monthly Contribution Annual Conribution
Gen. Manager 581.30 470.40 287.50 3,461.95 4,801.15 57,613.80
Manager 581.30 326.40 200.00 1,719.83 2,827.53 33,930.30
Head Chef 436.00 240.00 150.00 710.25 1,536.25 18,435.00
Asst. Chef 363.30 216.00 125.00 440.68 1,144.98 13,739.70
Prep Cook 345.20 192.00 112.50 - 649.70 7,796.40
Waiter/Waitress 327.00 180.48 112.50 - 619.98 7,439.76
Dishwasher 327.00 180.48 112.50 - 619.98 7,439.76
Accountant 363.30 216.00 125.00 440.68 1,144.98 13,739.70
Cashier 327.00 180.48 112.50 - 619.98 7,439.76
Agriculturist 345.20 192.00 112.50 - 649.70 7,796.40
Gardeners 308.80 172.80 100.00 - 581.60 6,979.20
Janitor/Janitress 308.80 172.80 100.00 - 581.60 6,979.20
Security Guard 308.80 172.80 100.00 - 581.60 6,979.20
Driver 308.80 172.80 100.00 - 581.60 6,979.20
Total 5,231.80 3,085.44 1,850.00 6,773.38 16,940.62 203,287.38

The personnel cost consist of :

1st Year 2nd Year 3rd Year 4th Year 5th Year
Salaries and Wages 1,851,264.00 1,869,776.64 1,888,474.41 1,907,359.15 1,926,432.74
13th Month Pay 154,272.00 155,814.72 157,372.87 158,946.60 160,536.06
Government Contribution 203,287.38 205,320.25 207,373.46 209,447.19 211,541.66
Total 2,208,823.38 2,230,911.61 2,253,220.73 2,275,752.94 2,298,510.47
 9. Transportation Expense

This accounts pertains to company's freight out and travelling expenses

during buying of materials, supplies and other company's business transactions

amounting to P60, 000 per year (P 5,000 per month). It is expected to increase ten

percent (10%) every year.

10. Utility Expense

This account pertains to estimated annual electricity consumption of the

company amounting to P 156, 000.00 (P 13,000. 00 per month) and water

consumption amounting to P 120,000.00 (P 10,000. 00 per month). It is expected

to increase five percent (5%) every year.

11. Taxes and Licenses

This account consists of:

Certificates issued
Security and Exchange Commission SEC Certificate 3,200
Department of Trade and Industry Ceftificate of Registration of Business Name 215
City Mayor's Office Mayors permit 2,000
Sanitary permit 300
Fire inspection permit 50
Health certification permit 1,000
Clearance Fee 1,040
Documentary stamp tax 15
Business Plate 95
Solid waste Management Fee 1,500
Barangay Hall Barangay permit 250
BIR Registration No. 600
Bureau of Internal Revenue Partnership's Tax Identification Number 40
Registration of books, invoices, and official receipt 400
10,705
 12. Insurance Expense

This account pertains to insurance of the business facility and equipment of

the company. Estimated insurance expense is P 35,000.00 and expected to increase

five percent (5%) every year.

13. Telecommunication

This accounts pertains to companys' communication expenses. Projected

amount to incur for the first year is P 21, 600. 00 (P 1,800. 00 per month) and

expected to increase in five percent (5%) every 3 years.

 14. Supplies

Kitchen Supplies
Item Unit Quantity Cost Total Cost Annual Cost
Sponge pcs 5 10.00 50.00 600.00
Garbage Bag roll 2 55.00 110.00 1,320.00
Dishwashing liquid bottles 5 50.00 250.00 3,000.00
Sanitary hand liquid soap bottles 3 70.00 210.00 2,520.00
Total 620.00 7,440.00

Office Supplies
Item Unit Quantity Cost Total Cost Annual Cost
Folders pcs. 10 3.00 30.00 360.00
Stapler pcs. 2 102.00 204.00 2,448.00
Envelope pcs. 20 2.00 40.00 480.00
Bond Paper (short) pcs. 150 1.00 150.00 1,800.00
Bond Paper (long) pcs. 150 1.00 150.00 1,800.00
Ballpen pcs. 10 5.00 50.00 600.00
Correction Tape pcs. 5 25.00 125.00 1,500.00
Alcohol pcs. 15 74.00 1,110.00 13,320.00
Logbook pcs. 2 95.00 190.00 2,280.00
Staples box. 2 30.00 60.00 720.00
Garbage Bag roll 2 55.00 110.00 1,320.00
Total 2,219.00 26,628.00
 Cleaning Supplies
Item Unit Quantity Cost Total Cost Annual Cost
Broom pcs. 4 60.00 240.00 2,880.00
Floor Mop pcs. 2 333.00 666.00 7,992.00
Garbage Bin pcs. 3 1,000.00 3,000.00 36,000.00
Rags pcs. 10 30.00 300.00 3,600.00
Dustpan pcs. 2 50.00 100.00 1,200.00
First Aid kit pcs. 1 720.00 720.00 8,640.00
Toilet Brush pcs. 2 30.00 60.00 720.00
Total 5,086.00 61,032.00

Total Supplies 95,100.00

15. Advertising Expense

This account is pertains to projected cost of advertising expense as follows:

Quantity/ QUARTERLY
Unit Price Total Cost
Duration COST
Radio Broadcast 200.00 20 seconds 4,000.00
Brochures 20.00 80 1,600.00
Flyers 10.00 100 1,000.00
Tarpaulin 200.00 7 1,400.00
8,000.00 32,000.00
 16. Repairs and Maintenance

This accounts pertains to expected repairs and maintenance of the

companys' store and fixed assets. Projected amount that will incur for the first year

is P 50, 000. 00 and expected to increase in five percent (5%) every year.

17. Income Taxes

Tax rate and tax based used for the co-partnership is 30% of net taxable

income under the National Internal Revenue Code of the Philippines.

18. Miscellaneous Expense

This accounts pertains to unforeseen cost and computed based on the total

corporate expenses multiply to five percent (5%) every year.

ECOPONICS FARM AND RESTAURANT
Total Projected Cost
(in Philippine Peso)

Fixed Asset
Land 22,078,200.00
Building 14,953,100.00
Equipment 1,354,993.00
Furniture and Fixture 737,375.00
Total Fixed Asset 39,123,668.00

Current Asset
Raw Materials 230,510.00
Seedlings/Fingerlings 11,000.00
Kithchen Supplies 1,860.00
Office Supplies 6,657.00
Cleaning Supplies 15,258.00
Total Current Asset 243,370.00

Working Capital
Personnel Cost 184,068.62
Taxes and Licenses 10,705.00
Utility Expense 23,000.00
Transportation expense 15,000.00
Adverstisement 32,000.00
Telecommunication 5,400.00
Repairs and Maintenance 50,000.00
Miscellaneous Expense 312,788.38
Total Working Capital 632,962.00

TOTAL PROJECTED COST 40,000,000.00

ECOPONICS FARM AND RESTAURANT
Statement of Financial Position
(In Philippine Peso)

Notes Pre-Operating 1st Year 2nd Year 3rd Year 4th Year 5th Year

ASSETS
Current Assets
Cash 2 611,047.00 7,327,015.29 14,394,580.83 22,409,901.83 31,474,612.40 41,701,442.29
Kitchen Supplies 1,860.00 1,860.00 1,953.00 2,050.65 2,153.18 2,260.84
Office Supplies 6,657.00 6,657.00 6,989.85 7,339.34 7,706.31 8,091.63
Cleaning Supplies 14 15,258.00 15,258.00 16,020.90 16,821.95 17,663.04 18,546.19
Seedlings/Fingerlings 6 11,000.00 11,000.00 11,550.00 12,127.50 12,733.88 13,370.57
Raw Materials 6 230,510.00 230,510.00 242,035.50 254,137.28 266,844.14 280,186.35
Total Current Asset 876,332.00 7,592,300.29 14,673,130.08 22,702,378.54 31,781,712.95 42,023,897.87
Non-Current Assets
Land 22,078,200.00 22,078,200.00 22,078,200.00 22,078,200.00 22,078,200.00 22,078,200.00
Buiding 14,953,100.00 14,205,445.00 13,457,790.00 12,710,135.00 11,962,480.00 11,214,825.00
Equipment 3 1,354,993.00 1,208,149.32 1,061,305.65 914,461.97 767,618.30 620,774.62
Furniture & Fixtures 3 737,375.00 618,457.49 499,539.97 380,622.46 261,704.94 142,787.43
Total Non-Current Asset 39,123,668.00 38,110,251.81 37,096,835.62 36,083,419.43 35,070,003.24 34,056,587.05

TOTAL ASSETS 40,000,000.00 45,702,552.10 51,769,965.70 58,785,797.97 66,851,716.19 76,080,484.92

LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES
Current Liabilities
Accrued Expense 4 - 24,800.00 26,040.00 27,342.00 28,709.10 30,144.56
Income Tax Payable - 549,459.88 640,222.59 740,782.54 852,129.06 975,431.84
Total Liabilities 574,259.88 666,262.59 768,124.54 880,838.16 1,005,576.39

STOCKHOLDERS' EQUITY
Share Capital 40,000,000.00 40,000,000.00 40,000,000.00 40,000,000.00 40,000,000.00 40,000,000.00
Retained Earnings 5,128,292.22 11,103,703.11 18,017,673.44 25,970,878.03 35,074,908.53
Total Stockholders' Equity 45,128,292.22 51,103,703.11 58,017,673.44 65,970,878.03 75,074,908.53

TOTAL LIABILITIES &

40,000,000.00
STOCKHOLDERS' EQUITY 45,702,552.11 51,769,965.71 58,785,797.97 66,851,716.19 76,080,484.92
ECOPONICS FARM AND RESTAURANT
Statement of Cash Flow
For Five-year Projection
(in Philippine Peso)

Pre-Operating 1st Year 2nd Year 3rd Year 4th Year 5th Year
CASH FLOW FROM OPERATING ACTIVITIES
Net income before tax 5,128,292.22 5,975,410.89 6,913,970.33 7,953,204.59 9,104,030.50
Add : Depreciation 1,013,416.19 1,013,416.19 1,013,416.19 1,013,416.19 1,013,416.19
Increase in Income Tax Payable 549,459.88 90,762.71 100,559.94 111,346.53 123,302.78
Increase in Accrued Expenses 24,800.00 1,240.00 1,302.00 1,367.10 1,435.46
Increase in Raw Materials (230,510.00) (11,525.50) (12,101.78) (12,706.86) (13,342.21)
Increase in Kitchen Supplies (1,860.00) - (93.00) (97.65) (102.53) (107.66)
Increase in Office Supplies (6,657.00) - (332.85) (349.49) (366.97) (385.32)
Increase in Cleaning Supplies (15,258.00) - (762.90) (801.05) (841.10) (883.15)
Increase in Seedlings/Fingerlings (11,000.00) (550.00) (577.50) (606.38) (636.69)
Net cash provided by operating activities (265,285.00) 6,715,968.30 7,067,565.54 8,015,321.00 9,064,710.57 10,226,829.90
Cash Flow from Investing Activities
Acquisition of equipment (1,354,993.00)
Acquisition of Building (14,953,100.00)
Acquisition of Land (22,078,200.00)
Acquisition of Furniture and Fixtures (737,375.00)
Net cash used in Investing Activities (39,123,668.00)

CASH FLOW FROM FINANCING ACTIVITIES

Initial partners investment 40,000,000.00
Partners withdrawal (300,000.00) (300,000.00)
Net cash provided by (used in) financing activities
40,000,000.00 (300,000.00) (300,000.00)
NET CHANGE IN CASH 611,047.00 6,715,968.30 7,067,565.54 8,015,321.00 8,764,710.57 9,926,829.90
CASH BALANCE, BEGINNING OF THE YEAR - 611,047.00 7,327,015.29 14,394,580.83 22,409,901.83 31,474,612.40
CASH, END OF THE YEAR 611,047.00 7,327,015.29 14,394,580.83 22,409,901.83 31,474,612.40 41,701,442.29
ECOPONICS FARM AND RESTAURANT
Statement of Comprehensive Income
In Five-year Projection
(in Philippine Peso)

Notes 1st Year 2nd Year 3rd Year 4th Year 5th Year
SALES 6 13,841,760.00 15,225,936.00 16,748,529.60 18,423,382.56 20,265,720.82
COST OF SALES 7 4,335,216.19 4,484,389.19 4,640,864.36 4,805,005.24 4,977,193.55
GROSS INCOME 9,506,543.81 10,741,546.81 12,107,665.24 13,618,377.32 15,288,527.27

General & Administrative Expenses

Personnel cost 8 1,820,623.38 1,838,829.61 1,857,217.91 1,875,790.09 1,894,547.99

Transportation 9 15,000.00 15,150.00 15,301.50 15,454.52 15,609.06
Utility Expenses 10 23,000.00 24,150.00 25,357.50 26,625.38 27,956.64
Taxes and Licenses 11 10,705.00 11,240.25 11,802.26 12,392.38 13,011.99
Insurance 12 35,000.00 36,750.00 38,587.50 40,516.88 42,542.72
Telecommunications 13 5,400.00 5,400.00 5,400.00 5,670.00 5,670.00
Advertisement 15 32,000.00 32,320.00 32,643.20 32,969.63 33,299.33
Repairs and Maintenance 16 50,000.00 52,500.00 55,125.00 57,881.25 60,775.31
Employer's Contributions:
SSS 8 129,458.40 129,458.40 129,458.40 129,458.40 129,458.40
Pag-ibig 8 37,025.28 37,025.28 37,025.28 37,025.28 37,025.28
PhilHealth 8 22,200.00 22,422.00 22,646.22 22,872.68 22,872.68
Total General and Administrative
Expenses 2,180,412.06 2,205,245.54 2,230,564.77 2,256,656.47 2,282,769.41

1st Year 2nd Year 3rd Year 4th Year 5th Year

NET INCOME BEFORE TAX 7,326,131.75 8,536,301.27 9,877,100.47 11,361,720.84 13,005,757.86

PROVISION FOR INCOME TAX 2,197,839.52 2,560,890.38 2,963,130.14 3,408,516.25 3,901,727.36
TOTAL COMPREHENSIVE
INCOME 5,128,292.22 5,975,410.89 6,913,970.33 7,953,204.59 9,104,030.50
ECOPONICS FARM AND RESTAURANT
Financial Analysis
For Five-year Projection

1st Year 2nd Year 3rd Year 4th Year 5th Year
TEST OF PROFITABILITY
Net profit margin 37% 39% 41% 43% 45%
Operating profit margin 53% 56% 59% 62% 64%
Gross profit margin 69% 71% 72% 74% 75%
Return on owner's investment 13% 13% 14% 14% 14%
Return on net operating profit 16% 16% 17% 17% 17%
Asset turnover 30% 29% 28% 28% 27%
Return on assets 11% 12% 12% 12% 12%

TEST OF CAPITAL INVESTMENT

Payback period in years 7.80
ECOPONICS FARM AND RESTAURANT
Statements of Changes in Stockholders' Capital
For Five-year Projection
(in Philippine Peso)

De Mesa Diaz Patron

Beginning capital, first year 13,333,333.33 13,333,333.33 13,333,333.33 40,000,000.0

Add: Share in profit for the year 1,709,430.74 1,709,430.74 1,709,430.74
Less: Withdrawals
ENDING CAPITAL, FIRST YEAR 15,042,764.07 15,042,764.07 15,042,764.07

Beginning capital, second year 15,042,764.07 15,042,764.07 15,042,764.07 45,128,292.21

Add: Share in profit for the year 1,991,803.63 1,991,803.63 1,991,803.63
Less: Withdrawals
ENDING CAPITAL, SECOND YEAR 17,034,567.70 17,034,567.70 17,034,567.70

Beginning capital, third year 17,034,567.70 17,034,567.70 17,034,567.70 51,103,703.10

Add: Share in profit for the year 2,304,656.78 2,304,656.78 2,304,656.78
Less: Withdrawals
ENDING CAPITAL, THIRD YEAR 19,339,224.48 19,339,224.48 19,339,224.48

Beginning capital, fourth year 19,339,224.48 19,339,224.48 19,339,224.48 58,017,673.43

Add: Share in profit for the year 2,651,068.20 2,651,068.20 2,651,068.20
Less: Withdrawals (100,000.00) (100,000.00) (100,000.00)
ENDING CAPITAL, FOURTH YEAR 21,890,292.67 21,890,292.67 21,890,292.67

Beginning capital, fifth year 21,890,292.67 21,890,292.67 21,890,292.67 65,670,878.02

Add: Share in profit for the year 3,034,676.83 3,034,676.83 3,034,676.83
Less: Withdrawals (100,000.00) (100,000.00) (100,000.00)
ENDING CAPITAL, FIFTH YEAR 24,824,969.51 24,824,969.51 24,824,969.51

See accompanying assumptions and notes to financial statements

CONCLUSION

According to the financial studies stated, discussed and illustrated above,

the researchers therefore conclude that the financial analyses are feasible.
 CHAPTER VI

SOCIO-ECONOMIC STUDY

Ecoponics is a restaurant and a farm together in one location. Ecoponics

tends to help the society by doing its part by contributing in the improvement of the

Philippine economy like generating employment, especially to Filipinos and by

paying taxes and other contributions needed to fulfill the business obligation as

part of the requirement of the law.

OBJECTIVES

1. To be able to identify Ecoponics contribution to the Philippine economy.

2. To be able to explain on how Ecoponics can help generate employment in

the Philippines.

CONTRIBUTION TO THE PHILIPPINE ECONOMY

Ecoponics has a contribution to the Philippine economy by paying business

taxes and business permits required by the government. Taxes form part of the

government revenues that help to support the needs of the public. They also

contribute to the promotion of agricultural products.

EMPLOYMENT GENERATION

The proposed business will employ people who have knowledge about

farming, agriculture, operating a restaurant, cooking and the like. Employment will
depend upon the qualifications needed by the said business. The said employees

will receive fair compensation according to their qualifications and performance.

Salaries are based on minimum wage set by the government.

They maintain or increase the quality of life for farm families and workers

by providing employment.

SOCIAL DESIRABILITY

The purpose of putting up the business is not just to generate profit but to

give social and economic benefits that it can provide. Ecoponics will help

customers to practice healthy lifestyle by serving healthy harvests. Food from the

restaurant will be coming from the farm which is naturally grown, meaning no

chemicals, insecticides or pesticides will be used. By this, healthy lifestyle will be

practiced.

COMMUNITY CONTRIBUTION

Ecoponics Farm and Restaurant would like to contribute to the society,

especially those who own piggeries. After operation hours, there would be so called

nabubulok or lino which will be disposed and be given to piggeries. It will not

only benefit Ecoponics waste disposal, but also those piggeries where there will

be no need for them to buy feeds for their pigs.

CONCLUSION

The researchers conclude that based from the Socio-Economic Study, the

study is therefore feasible based from the content of this chapter.

 CHAPTER VII

CONCLUSIONS AND RECOMMENDATIONS

This is to present the interpretations given by the researchers of the

significance of the findings of Ecoponics Farm and Restaurant, along with

recommendations for action. These recommendations will be based on the research,

survey or findings and on any other relevant information available to the

researchers.

CONCLUSIONS

After a thorough and careful study about constructing a farm using an

aquaponics system as a method of growing plants, the researchers can say that it

can really be an alternative and natural way of growing plants especially for those

people who are health conscious.

In addition to the statement above, the researchers would like to conclude

that Ecoponics Farm and Restaurant has a competitive edge when it comes to

pricing. Ecoponics will be offering delicious and healthy cuisines at an affordable

price, unlike other businesses with the same concept which serves healthy food

but in an expensive price.

The researchers therefore conclude that Ecoponics Farm and Restaurant is

feasible and viable according to the sources mentioned above.

RECOMMENDATIONS

Ecoponics Farm and Restaurant being feasible and viable, there are still

things to consider, the following are additional information that is needed to be

studied or researched:

1. In using aquaponics as a system of growing plants, scrutinize other plants

that can be grown through the method of aquaponics.

2. Research about the other types of fish that can be used in the aquaponics

system.

3. Focus in the hiring and put a high standard for choosing a chef and an

agriculturist, since these personnel are the ones which has the power to serve

food with the highest quality expected by consumers.

4. Construction of the business is also necessary to be focused on in order to

achieve desired output.