Baker Bros Feasibility Study
Baker Bros Feasibility Study
Baker Bros Feasibility Study
ENTREPRENEURSHIP DEPARTMENT
BakerBros
__________________
A Feasibility Study
Presented To The Faculty Of The Entrepreneurship Department
Asian Institute of Computer Studies
__________________
__________________
By
Jonvi Desuasido
Karl Royce Escoto
Justin Patrick Floria
Allan Loreto
Joshua Agasi Samson
March 2017
ASIAN INSTITUTE OF COMPUTER STUDIES
ENTREPRENEURSHIP DEPARTMENT
APPROVAL SHEET
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ACKNOWLEDGMENT
The proponents are delighted that this Feasibility Study has been accomplished
the best way they know how. Their deepest gratitude goes to the Almighty God for the
gift of wisdom, patience, endurance and physical strength. Without which this
Likewise, the proponents would like to thank the following people for their
T heir parents for their unending support, financial assistance and encouragement;
ensuring that this feasibility will be prepared according to the standards of the
department.
Ms. Nida R. Motoyama, who has greatly shared her knowledge and sustained
Ms. Sarah Floria, the Owner of Swirls & Twirls Cakes and Cupcakes, for
sharing pertinent information about the ins and outs of doing and managing a
confectionary store.
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EXECUTIVE SUMMARY
topping and decorations. The store will contain a comfortable seating area allowing
Entrepreneurship degree as a strong head start for the success of this business venture.
Key management positions will be handled by the owners themselves under the General
BakerBros will be located at Don Antonio Sports Center, Barangay Holy Spirit
Quezon City and a location providing extremely high visibility as well as direct entry and
furniture), availability of strong internet access, traffic situation and accessibility to the
target market.
BakerBros will be providing the community with high-end baked products made
customers with baking goods based on fine quality, supreme taste, and unique and
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positioned at a higher price point, but much affordable than the products from the leading
competitors.
To the community, the company will contribute in increasing the employment rate
To the environment, Bakerbros will ensure that the product and processes of the
company are environmental friendly and will not cause any hazard at all.
providing worry-free and secured purchasing option through its online store.
Financing of the project cost will depend on the cash capital contribution of the
annual increase of 10%. An estimated annual sale was computed based on sitting capacity
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TABLE OF CONTENTS
Title Page i
Approval Sheet ii
Acknowledgment iii
Executive Summary iv
Table of Contents vi
List of Tables vii
List of Figures vii
Chapter
3 MARKETING STUDY 32
Marketing mix 46
Competitors 46
Promotion and Advertising 44
vi
Title Heading – supplier 71
Raw Materials 69
5 SOCIO-ECONOMIC STUDY 81
Family 81
Government 81
Community 81
6 FINANCIAL STUDY 73
Project Cost 73
Income Statement 75
Balance Sheet 77
Statement of Cash Flow 76
Ratio Analysis 78
APPENDICES 83
Government Requirements 91
BIBLIOGRAPHY 99
LIST OF TABLES
1 Proponents 4
2 Capital Investment 5
3 Management Personnel 18
4 Management Personnel 19
5 Duties, Responsibilities and Minimum Qualification 21
6 Net Pay 29
6.1 Common Bases of Market Segmentation 33
7 BakerBros Market Segment 34
8 BakerBros Daily Demand Per Product 35
9 BakerBros Demand Projection Per Product 35
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10 Demand vs Supply 37
11 BakerBros Projected Sales Report on its 1st Year of Operation 38
12 Average Sales Per Product 38
13. Competitor’s Sales Report 40
14 Comparative Average Daily Sales of Competitors 40
15 Competitors Analysis 46
16 Pricing 48
17 Location Details 50
18 Office Equipment 57
19 Kitchen Equipment and Machineries 59
20 Restaurant Furniture and Equipment 62
21 Raw Materials 70
LIST OF FIGURES
1 Company Logo 3
2 Organization Chat 20
3 Administrative (Hiring Process) 30
4 Supply and Demand Analysis 37
5 BakerBros 5-year Plan 42
6 The Marketing Mix 46
6.1 Market Share 47
7 Location Map 50
8 Proposed Layout 51
9 Basic Ingredients and Common Procedures 65
10 Production Flow 66
11 Service Flow 67
11.1 Floor Plan 69
12 Packaging Supplier 73
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1
CHAPTER I
Introduction
The business will be named BakerBros, a short term for Baker Brothers. The
proponents are long-time friends since their 1st year in AICS and consider themselves to be
‘brothers’. Similarly, the confection store targets families, friends and ‘brothers’ as their
customers.
The project feasibility may form the basis of an important investment decision and
in order to serve this objective, the document/study covers various aspects of project
management.
The products would be cakes, snacks, sweets, biscuits, bread and other sugar-free
confection items that will be uniquely BakerBros. To entice more dine-in customers,
BakerBros will also offer pasta, cold concoctions, hot and cold coffee, fruit shake, sundae
The proponents conceptualized this feasibility study because of the growing popularity
of confection products like cakes and cupcakes nowadays. It used to be that these
confection items can only be seen and enjoyed during special occasions such as birthdays
and weddings.
However, the recent years proved that cupcakes and other confection products have an
increasing demand, while cakes are fast becoming an item even in ordinary occasions.
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Furthermore, BakerBros will also introduce sugar-free confections for those health-
conscious customers.
We from BakerBros are positive that our products will be a hit to the masses not
just because eating sweets are a thing today or in other words trendy, but also because it is
in our culture. Based from our study, Filipinos are enticed about the idea of sweets
especially pastry, a thing passed from generation to generation starting from our Malay
ancestors.
foreign influences that made their mark in how baking developed in the Philippines, there
is no definitive answer really, to how it all began. What we do know, is the importance of
this wonderfully delicious art, and how it has since been vital in every Filipino’s life, that
is why here in BakerBros we give our one of a kind services to the fullest.
It is very difficult to put an exact date on when baking, cake making and
decorating began, although it is thought that the Babylonian’s taught the Egyptians the art
of baking. A painted panel of around 1175 BC, depicted the court bakery of Ramesses III,
illustrates the preparation of several types of cakes, as well some bread. There are also
indications that confectionery sweetened with sugar was on sale in Egypt around 700 BC.
cakes have a long history and were baked by the rich in the eighteenth century as Twelfth
Night cakes. A bean and a pea would be hidden and baked in the rich fruit mixture.
Whoever found the bean was crowned ‘king of the feast’ and the finder of the pea ‘queen
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of the feast’. But it is wedding cakes that have the longest tradition and the story of their
changing development the best illustrates the history of cake decorating as an art.
The BakerBros logo in the above figure symbolizes everything that the company
represents. The male image represents the masculinity of the proponents/investors, (all of
them are males). The image holding a tray of cupcakes highlights the product, as well as
it reinforces that even strong, muscled men can show their ‘sweet side’. The different
cupcakes represent the various confection products that the store will be offering. The
tagline meant to defy the norm that only women can love sweet products and the kitchen
is entirely a women’s domain. In totality, the logo is meant to capture the male market,
since women and children seems to be an automatic market for these types of products.
4
CHAPTER II
The Proponents
because the partners are all involved in the whole operations of the business. They
combined their knowledge and skills to manage the business. They share together to
contribute their money into a common fund with the intention of dividing profits among
themselves.
Table 1: Proponents
NAME ADDRESS
Jonvi Desuasido Ilang-ilang St., Batasan Hills, Brgy. Batasan, Quezon
City
Karl Royce Escoto Blk 5 Lot 5 Dona Isidora St., Don Antonio Heights,
Justin Patrick Floria Blk 5 Lot 167 Ph 1k-1 Kasiglahan Village, San Jose,
Rodriguez, Rizal
Allan Loreto #220 Don Faustino St., Don Antonio Heights,
Quezon City
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Partner Investment
CONTRIBUTION
(in Php)
Jonvi Desuasido P 1,500,000 20%
Karl Royce Escoto P 1,500,000 20%
Justin Patrick Floria P 1,500,000 20%
Allan Loreto P 1,500,000 20%
Joshua Agasi Samson P 1,500,000 20%
TOTAL P 7,500,000 100%
The main objective of the study is to prove that the business of interest to the
proponents is feasible and will be profitable. The proponents plan to: offer to the general
products that will be uniquely BakerBros; break away from the traditional ‘restaurant set-
up’ as a means to offer products. BakerBros will offer its confection products via e-store to
reach a much bigger market; ultimately, the BakerBros confection products will become a
Mission Statement
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BakerBros mission is to enrich the lives of our guests, our employees and owners.
We do this through superior quality confectionaries, legendary customer service, and sales
growth, cost controls and treating our employees like family. We believe that our
employees are our most important resource and our success depends upon creating and
time.
Vision Statement
Values Statement:
We deliver on our promises in accordance with quality standards and in support of our
company goals.
Customer-Oriented
We effectively foresee, understand and meet the needs of our customers ensuring
maximum satisfaction.
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Open
We are a company that is constantly and rapidly learning, adapting, developing and
We continuously improve our efficiency in every area and strive to create sustainable
added value for our stakeholders and enable our customers to obtain quality products at
reasonable prices.
We strive to gain and maintain the justified trust of our employees, customers and
Sense of Belonging
We establish long-term and value-added relations with our employees, customers and
business partners.
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Teamwork
each other and make the most of our differences in knowledge, skills and experience
finalize marketing materials to be used for the soft and grand opening
because the partners are all involved in the whole operations of the business. They
combined their knowledge and skills to manage the business. They share together to
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contribute their money into a common fund with the intention of dividing profits among
themselves.
On Sharing Profits
A partnership agreement signed by owners will formally and legally document the
Each general partner has an equal right to participate in the management and
control of the business. Each will be given a specific position to manage as defined under
will be dealt with through a votation; wherein the course of action are decided by the
On Transferability
No one can become a member of the partnership without the consent of all partners.
However, a partner may assign his share of the profits and losses to another person by
Management Style
Among the three most popular management styles: Autocratic, Paternalistic and
Democratic, BakerBros will adapt the Democratic Management Style because the
Delegation of Responsibility
A democratic leader will delegate responsibility among members of his or her team
process of empowerment is the provision of the education and training required for
deliberation takes place when group decisions are being made. This indicates that
the group, make sure that the members are psychologically well and there is a
However, just like any management styles, Democratic Leadership has its own
weaknesses, which include the following: be given an Employees Handbook. Please refer
Aside from the handbook, all employees will be required to sign a Confidentiality
strategies including the list of BakerBros clients and suppliers. Please refer to Appendix D
staff development and has put in place a comprehensive Staff Development Program to
ensure that BakerBros staff will grow with the company. The result of the periodical
appraisal will be the basis of merit increase. The Appraisal will be divided into 2 parts.
The 1st part will measure staff’s performance vis-à-vis Key Performance Indicators, while
the 2nd part will measure staff’s Behavioral Competence. The purpose of this appraisal is
not undermining the capabilities of staff, but more importantly, staffs are appraised to
by the Admin and Operations Department. The Admin and Operations Department will be
that are heavy-duty and are considered to be of ‘industrial quality’. The equipment listed
below might be pricey but since they are durable. The lifespan of these items on the
1. Government Mandated
Covered employees are entitled to a package of benefits under the Social Security
and Employees' Compensation (EC) Programs in the event of death, disability, sickness,
maternity and old age. Self-employed and voluntary members also get the same benefits
Basically, the SSS provides for a replacement of income lost on account of the
aforementioned contingencies. The benefits under the Social Security Program are:
Sickness
Maternity
Disability
Retirement
Death
Funeral
b. Pag-IBIG
It’s a deplorable fact: A lot of Pag-IBIG Fund Members, especially the employees,
are not aware of the benefits they can derive from becoming (forcibly, since it is
mandatory) a member of the Pag-IBIG Fund. For some, getting a payroll deduction for
questions asked, no complaint unless the net salary is already far too low to even pay for
electric bill. After all, there must be some deductions to the salary just like Income Tax,
c. PHILHEALTH
PhilHealth have six major membership categories covering nearly the entire
population. Those who count under the "Formal" sector are workers employed by public
and private companies and other institutions. "Indigents" also called "Philhealth sa Masa"
are subsidized by National Government the National Household Targeting System for
have already paid premiums for 120 months of membership and are 60 or older. "Senior
Citizen" under RA 10645 that all citizen ages 60 years old above are eligible to have free
Earning Individuals, Organized Group, Filipino with Dual Citizenship, Naturalized Born
Citizen. Although treated separately, the Overseas Filipino Workers (OFW) program or
2. Company Benefits
a. Retirement pay
Upon the age of 60 years or more, the employee who has served at the
establishment for at least five years may be granted a retirement pay equivalent to at least
one-half month of salary for every year of service. A fraction of at least six months is
b. Overtime pay
equivalent to his regular wage plus at least 25% premium. Overtime pay for holiday or
rest day shall be paid an additional compensation from the rate of the first eight hours on a
holiday or rest day plus at least 30%. On a Special Non-Working day, or rest day, an
additional compensation of 30% premium will be paid in addition to the rate of the first
Applies to employees who work between 10:00 p.m. and 6:00 a.m. An additional
10% premium is applied for every hour at work. While sick leave and vacation leave
benefits are not specifically stated under the law, it stipulates that private employees are
allowed to provide employees a yearly Service Incentive Leave of five days with pay. This
applies to employees with work tenure of at least one year within the company.
d. Maternity Leave
Any pregnant woman employee who has worked with the company for at least six
months will be granted a maternity leave of at least two weeks prior to her due date
(expected date of delivery) and four weeks after normal delivery or miscarriage with full
pay based on her regular salary. A total of 60 days is granted for government employees,
and 60 to 80 days for employees in the private sector. The Maternity Leave benefit is
effective up to the first four deliveries of the woman employee working in the company.
e. Paternity Leave
The R.A No. 8187, or Paternity Leave Act of 1996, grants seven days of fully paid
leave to married fathers. This is effective up to the first four deliveries of the legitimate
spouse. Parental Leave for Solo Parents, or Solo Parenting Leave (SPL) Seven days leave.
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Personnel (Administrative)
BakerBros will be managed by the five (5) owners by holding key positions in the
company, namely:
General Manager
Finance Manager
Research & Development Manager
Marketing Manager, and
Operations and Admin Manager
Assignment for the position will be based on the skills and expertise of the individual
owners. Hands-on as they are, the owners, just like their staff, will report to work 6-days a
week.
BakerBros will be an innovative, as well as a very dynamic company. On the 1st few
months of operation BakerBros will operate on a limited capacity. The office hours and the
production area will work on a single shift only and may start from 8am and end at 5pm.
On the other hand, the dining section will operate on 2 shifts: 6am to 3pm and 3pm to
Position # of Personnel
Management Personnel 5
General Manager 1
Finance Manager 1
Marketing Manager 1
Administrative Personnel 4
Secretary 1
Office Staff 3
Production 6
Pastry Chef 1
Assistant Pastry Chef 1
Production Staff 4
Restaurant Staff 8
Servers 6
Security Guard 2
Company Driver 1
Generally, the 5 proponents of this feasibility will also be the investors / owners of
BakerBros. Each will hold one of the key management positions as laid-out in the Table of
Organization (Figure 4). However, in this documentation, these key management positions
is open to new hires, but only in the case when the investor holding the position opted to
resign as a management personnel. Thus, the minimum qualification for all management
GENERAL MANAGER
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FINANCE MANAGER
Duties & Responsibilities *Minimum Qualification
Responsible in keeping the Financial Must be a graduate of any 4-year
control structure are in place over the and interpersonal communication skills;
performance.
Responsible in benchmarking the
industry
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MARKETING MANAGER
Duties & Responsibilities *Minimum Qualification
Responsible in identifying new and Must be a graduate of any 4-year
submitting a comprehensive
PASTRY CHEF
Duties & Responsibilities Minimum Qualification
Responsible in creating delicious Senior high school diploma at minimum;
industry
PRODUCTION STAFF
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industry
27
RESTAURANT STAFF
and efficient food and beverage service certificate, associate's degree and
n
Salary
General 1 P35,000 P581.30 P437.50 P100 P33,881.20
Manager
R&D 1 P30,000 P581.30 P375 P100 P28,943.70
Manager
Finance 1 P30,000 P581.30 P375 P100 P28,943.70
Manager
Marketing 1 P30,000 P581.30 P375 P100 P28,943.70
Manager
Operation & 1 P30,000 P581.30 P375 P100 P28,943.70
Admin Manager
Office Staff 4 P15,000 P545.00 P187.50 P100 P14,167.50
Pastry Chef 1 P20,000 P581.30 P250 P100 P19,068.70
Assistant Chef 1 P17,000 P581.30 P212.50 P100 P16,106.20
Production Staff 3 P15,000 P545.00 P187.50 P100 P14,167.50
Restaurant Staff 6 P14,000 P508.70 P175 P100 P13,216.30
Security 2 P12,766 P472.30 P150 P100 P12,043.70
Personnel
Company 1 P13,000 P472.30 P162.50 P100 P12,265.20
Driver
The salary structure of BakerBros was based on the industry standard of high-end
restaurants. The salary noted for Management Personnel are separate from the profit that
will be equally divided among investors. It is only appropriate that the investors get a
the salary of each personnel, management level or otherwise, ensures that the financial
During the first few months of operation, the investors may opt to suspend their
Aside from their monthly salary and overtime pay, the employees are also entitled to 13 th
month pay as mandated by law and an additional yearly cash incentive, which will be
Forms
1) 8 hours. At BakerBros, all overtime rendered will be subject to prior approval by
the Leave Form – this form is used to document and monitor Leave Requests made
by the employees.
2) Over Time Form – this form is used to file for overtime or work hours in excess of
timeliness of staff. To ensure accuracy and data integrity, BakerBros will use
Biometric System to record the time In and Out of all personnel. Management
personnel will enjoy flexi-hours but must render at least 8 hours per day. While,
Pastry Chef and rank and file personnel will have a grace period of 15-minutes.
4) Reimbursement Form – a form to be used by BakerBros in compensating someone
was spent.
5) Invoice Form – The invoice form is commercial document issued to be issued by
quantities, and agreed prices for BakerBros products and services. Payment terms
CHAPTER III
MARKETING STUDY
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satisfy the needs, wants and expectations of the ‘would be’ customers of BakerBros. This
chapter will detail the following, target market vis-à-vis the various market segments
present in the area, analysis of the demand and supply of BakerBros products, general
sales.
City, a highly-dense urban area. However, the proponents are not only targeting customers
from the immediate vicinity of the confection store. As mentioned, BakerBros products
will be offered and made accessible through the use of e-store in order to capture a much a
bigger market. Likewise, part of the plan of BakerBros is to be the supplier of confection
products of hotel chains and high-end restaurants. With the intensive product development
of ‘sugar-free’ confection products, the proponents are also aiming for the endorsement
Demographically, BakerBros will not limit its market based on the usual market
segmentation of age, marital status, gender, religion and occupation. Never the less, the
proponents of this project were able to establish that income and lifestyle can determine
Market Segmentation
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There is no specific way to segment a market. Even big companies use different
segmentation variables and approach to find the best way to identify their market.
33
identifying the age bracket of would-be market), BakerBros utilizes the different aspects
34
able to ensure that the marketing and positioning strategies will be to advantage of
BakerBros.
Demand
There are no existing studies documented to establish the general demand for
expected to grow from mere store visits to e-store purchase. In line with this, store
The projections used in the table below were derived from the analysis
2 of the
To get the Demand Per Product, the average daily sales of the competitors were
used. Please note that a mark down of 20% was pegged since the company is not yet
Formula:
Demand Per Product = Average Daily Sales Per Product of Competitors – 20%
initiatives of the company. The 10% mark-up projected is conservative considering the
30%++ attained by the top 2 players in the market (refer to Table 10).
Supply
Specialty stores like Chocolate Lovers (P. Tuazon, QC) and All About Baking (Quezon
Avenue, QC) offer wholesale high-end confection ingredients. Purchase of ingredients can
be done at their respective stores or they can be ordered online and then picked up later.
For companies with established credit lines, the items can be delivered free-of-charge. In
addition, long-time local stores in Quiapo, such as Killion and New Sin Kian Heng can
also address bulk orders. In fact, Goldilocks and Red Ribbon order their supplies from
New Sin Kian Heng. In line with this, it is safe to say that because there are established
suppliers of raw materials and ingredients, it would be easy for BakerBros to supply even
the increasing demand of its customers. To establish the target number of products or
supply that the BakerBros production area should meet, the Admin and Operations group,
together with the Finance Department will monitor and rigorously document the daily
sales of BakerBros to be able to determine which product should be produced more and in
what quantity should the production for each product be maintained. In a nutshell, the
proponents used the demand data presented in the previous page to determine if the initial
2
manpower of BakerBros can produce the projected requirement. Under the Staff Count,
the specific personnel to handle the preparation of a particular product has been identified.
37
Whereas, under Staff Capacity, the minimum number a particular staff can
prepare/produce has been based from an interview with Swirls & Twirls’ Pastry Chef (QC)
Based on the chart presented, the initial manpower of BakerBros can produce
almost twice the volume of the projected demand. As mentioned previously, manpower
requirement of Production Staff shall increase depending on the actual demand of products
in the future.
The figure below presents the cumulative sales of Red Ribbon, Goldilocks and
Starbucks in all of their store outlets. These figures were used to compute for the average
2
sales per outlet and the average increase in sales. The data were used to project the store
sales of BakerBros.
Table 11: BakerBros Projected Sales Report on its 1st Year of Operation
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Note that in the assumption of sales, the projected 2018 sale of BakerBros is lower
by 12 to 14% from its top 2 competitors. However, as a result of the marketing strategies
of the company, the annual sale is expected to increase conservatively by 10% annually.
Competitive Position
For the purpose of securing the intellectual property of BakerBros, the government
recipes
Understanding the Market
To be able to have a clearer picture of the future demands of BakerBros, the proponents
gathered information from its biggest competitors, namely Red Ribbon and Goldilocks.
www.jolibee.com.ph/downloads/repub/2014/annual_2014.pdf
www.goldilocks.com.ph/business-opportunities
The source of the annual competitor’s reports even provided the details pertaining
to the price range of the popular products as well as the average number of items sold per
product.
The data in the tables presented above have been the key information used by the
proponents in projecting the future demand, capacity requirement and sales projection of
BakerBros.
Marketing Strategy
Well-known bakeshops have print, TV and radio advertisements that are carefully
spread out the entire year. But in terms of frequency and volume, most ads are being aired
Local bakery doesn’t usually engage in marketing activity. While, restaurants normally
have leaflets, well-budgeted signage, tarpaulins and posters as part of their opening
practice.
As part of its marketing strategy, the store of BakerBros will be specially designed
to capture middle to high-end market. The dining restaurant will have a modern design
outside, yet the interior will have a Victorian touch. Dinners can enjoy the following:
In its 1st year of operation, part of the marketing initiatives of the company is to
ensure that BakerBros’ will have strong presence in popular social media sites such as
Facebook and Twitter. These are avenues for free and paid advertising. On its succeeding
year and as the company grows, BakerBros can also launch a tri-media campaign.
participate in trade fairs, cooking shows and call center job fairs.
The company will also invite Confectionery Chef and trusted food bloggers to
visit, dine for free and write food reviews for BakerBros.
Posters and tarpaulins can also be strategically placed near the places that the
target market are usually frequenting and if possible, in their work places.
In its store operation, BakerBros will offer and sell regular products with above
standard product presentation. On the management side, the first year of BakerBros will
can endure and safe keep the BakerBros confection even on a long travel.
Please note however that BakerBros will continue to develop and innovate products to
3
remain competitive. Product Development will be spearheaded by Research and
Development and Pastry Chef. Since the Pastry Chef will be involved in a highly critical
activity
Year 2 – Branding
It’s expected that in BakerBros second year of operation, most of the products have
already been developed. In this case, the company can focus on Branding, which will be
spearheaded by the Research and Development and the Marketing Manager. The Branding
Develop Branding strategies that is anchored not solely in ‘selling a product’ but
part of the Branding activity will still include development of company policies
experience.
Acquiring customer feedback in a form of a survey.
44
At the onset of its operation, BakerBros will be active in social media and will use
free advertising on Facebook, Twitter and other networking site to promote BakerBros.
However, on its third year of operation, the company is expected to recoup from its initial
investment and have the financial capability to launch a tri-media campaign. The
By this time, the company should focus on creating an efficient e-store business.
This part of the business plan is geared towards embracing and serving a much larger
Partnering with a reliable freight and forwarding companies to handle the delivery
of BakerBros products
Development of e-store guidelines
Creating an efficient and customer friendly e-store with the help of a reliable
vendor
Inclusion of the e-store in the company’s website
Open Visa, Mastercard and Paypal accounts for on-line banking
In this leg the company has already established itself in terms of its e-store and
delivery services. As such, the company can already go international, which means:
Tapping the OFWs. They may place their order via e-store and pay thru on-line
banking for BakerBros confection products that will be delivered to their friends 3
billboards along airports and POEA, social media sites and TV ads for TFC and
Pinoy TV.
Marketing Mix
Competitor Analysis
Table 15: Competitor
47
Analysis
Market Share
The Market Share was derived from the Competitor Analysis performed by the
the Cake industry generates a total of P64 million in average annual store sales. The pie
Pricing Strategy
49
The business owner will first calculate the cost of production based on the
ingredients used then will use a straight mark-up computation, which is common to all
cakes and pastry shop, by adding 150% to 200% mark up. After which, the amount will be
compared with the prices of similar products being offered by competitors. Adjustments
will be made to make sure that BakerBros prices will stay competitive.
CHAPTER IV
4
PRODUCTION AND TECHNICAL STUDY
This study discusses about the process of production and the activities of the
business. It also identifies the machineries and equipment used in production and other
aspects pertaining to bringing the raw materials into a finished product ready for selling.
The layout of the production area is also presented for the purpose of further identifying
the business operation. Likewise, flowcharts of the various production processes are also
included in this document. The list of machineries, tools and equipment are enumerated
Location
The BakerBros office and production site will be co-located for easy monitoring. This is
deemed to be the best option for start-up business since all of the owners will be able to
perform their duties and responsibilities, as well as monitor the daily operation of the store
and the production area. More importantly, most of the owners also live nearby.
The shop will have a sizeable posh and comfortable dining facility to accommodate
customers; it will also house a pick-up area for bulk orders. The location will also have a
BakerBros was chosen because of its accessibility to its target market. Likewise, the
customers will not be inconvenienced since the road leading to the shop is not congested
Product
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cakes, cupcakes, pastries, biscuits, bread and sugar-free confections. All products will be
Aside from offering on-line store where customers can place and pay for their
Muffins
A delicious combination of a 4
flavourful pumpkin muffin with a
cream cheese filling
o Mocha Muffin
o Apple Crisp
o Fruit Tart
o No Bake Cheesecake
o Date Squares
o Nanaimo Bars
o Brownies
o Lemon Bars
Shortbread Cookies
o Scottish Shortbread
o Chocolate Shortbread
o Alfajores
o Raspberry Shortbread
o French Baguette
o Doughnuts
o Soft Pretzels
The quality of the product is an integral part of any business. For that reason,
BakerBros will use multiple methods to ensure product quality. All confectionary products
will be made from scratch with fresh ingredients. The production team will ensure that
baking procedures will be followed and any expired products will be disposed of properly.
In terms of cleanliness and sanitation, the production team will be required to observe
proper dress code to and they will keep the production area sanitized and orderly at all
times.
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Innovations will also be part of BakerBros offerings. One way in which this will be
achieved is by creating new flavors, designs and frostings. Each month, BakerBros will 5
present new offerings. This will allow the business to assess and test saleability of new
products and have an understanding of what the customer wants. The Executive Chef and
the Research Department will be in charge in determining the special product of the
month.
Machinery
As a start-up business, BakerBros invested in kitchen equipment and machineries
that are heavy-duty and are considered to be of ‘industrial quality’. The equipment
listed on the next page might be pricey but since they are durable. The lifespan of
UNIT TOTAL
ITEM USES QUANTITY
COST PRICE
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reports
office staff
confidential documents
Desk Manager
staff
and conferences
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UNIT TOTAL
ITEM USES QUANTITY
COST PRICE
consistent
High Speed
Ice Cream
Machine
Freezers
COST PRICE
Hand Mixer For mixing small 3
dough
Dishwasher For washing baking 1 P 114,000 P 114,000
pans
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products
Silver Wares
concoctions
chocolate drinks
COST PRICE
P 64,000
(including
sales monthly
maintenance
fee)
various products
various products
restaurant
of the facility,
personnel and
customers
Package = P15,614
4 Addl. Camera =
P4,000 each
To keep the employees and customers safe, all personnel of BakerBros are
encouraged to practice safety precaution for handling heavy equipment and materials.
Only trained personnel will be allowed to use and handle heavy equipment..
Implement operational and safety guidelines for machinery and equipment.
Proper tagging or pulling out of defective equipment.
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Each product has a unique preparation and baking procedure. However, the most
basic ingredients and general procedure for all products are shown in the figures below:
5
65
To be able to establish control in the restaurant area, the following procedure has been
established:
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Initially, all products of BakerBros shall be produced at 101 Ground Floor, Don
Store Layout
BakerBros. Store area will house all the finished products of the shop. This will also be
the restaurant area where customers may dine and enjoy the products and the posh
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ambiance. The Office area will house the executive and administrative personnel of the
company. While, the biggest area will be allotted for the production of all the products of
BakerBros.
Structure
The location doesn’t require a full scale construction as it is already ready for
occupancy. Minimal cost will be allotted for the renovation of the store to fit into the
BakerBros business location was also selected for its expansion opportunity. The
pantry can be transferred to the 2nd floor, while the restaurant/store can be expanded to be
*The floor area is 750 square foot (1st floor) and 500 square foot (2nd floor).
BakerBros will offer a variety of confectionary products that use a number of high quality
sounding and would use imported ingredients, the suppliers listed above have these
ingredients. This will ensure availability of the ingredients throughout the year.
Key Suppliers
The location of plant and the restaurant is strategically located near its major suppliers,
namely:
The great thing about the chosen suppliers is that they accept online orders and also offer
delivery service for bulk orders. As verified with them, all key ingredients required by
BakerBros are available all throughout the year since these suppliers are major suppliers
too by other big cake stores, namely Goldilocks and Red Ribbon.
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Packaging Materials
Utilities
Electricity – must see to see to it that the electric cables, fuse box, as well as the
generator system are heavy duty and can support the high voltage operational
Waste Disposal
Just like in any restaurant or bakery business, proper sanitation is very important. To
ensure safety of the ingredients from pests and rodents, regular fogging and pest control
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activity will be observed. In terms of waste disposal, proper segregation will be strictly
Glass
Paper
Plastic
Food
waste
(Bio)
Cans &
Metals
Non-
Biodegra
dable
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CHAPTER V 6 59
FINANCIAL STUDY
This chapter discusses the probability of success with respect to the soundness of
the financial aspect of the business plan. To determine the financial stability of
BakerBros, a five year plan is presented below which includes the sources of funds,
PROJECT COST
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SOURCE OF FUNDING
6
OWNERS CAPITAL INVESTMENT % CONTRIBUTION
(in Php)
Jonvi Desuasido P 1,500,000 20%
Karl Royce Escoto P 1,500,000 20%
Justin Patrick Floria P 1,500,000 20%
Allan Loreto P 1,500,000 20%
Joshua Agasi Samson P 1,500,000 20%
TOTAL P 7,500,000 100%
FINANCIAL ASSUMPTIONS
All financial data were presented using PESO as the currency denomination.
Projection of 5-year annual sales is presented with 10% increase in sales revenue
Cost of sales increased by 5% per year
Rental is pegged at P35,000 per month with a 3-month deposit
Income Tax Rate is 30%
Depreciation expense is computed in a straight line basis with the estimated useful
life of:
o Equipment = 7 years
o Tools and Utensils = 5 years
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Income Statement
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Statement of Cash Flow
Balance Sheet
Where:
CA = Current Assets
CL = Current Liabilities
Where:
I = Inventory
A. Profitability
Total Assets Turnover
Where:
NPAT = Net Profit After Taxes
TI = Total Investment
CHAPTER VI
Although BakerBros plans to start small in terms of capital investment, the proponents
are aware of the business’ impact on the socio-economic development of the community
forms of taxes and government fees. Likewise, being a law abiding company, BakerBros
will also subject its employees to standard government taxes. Bakerbors will contribute
The business is expected to hire 18 employees. And, as the business grows, the
influx of customers to the BakerBros shop will also drive infrastructure improvement, at
only transact with suppliers with the same business etiquette and values. Bakerbros will
see to it that all its processes and the products it will use and produce are all
environmental friendly.
Since BakerBros is a company that will utilize the power of internet for its online
store, the company can help provide the customers with worry-free and secured
purchasing option through digital means that will be secured by the leading financial
82
security software available in the market, furthermore the BakerBros will be focusing on
gradually improving the overall technology state of BakerBros by scouring the market
APPENDICES
Schedule of Computation
Schedule 1 – SALES
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Formula:
Formula:
76
85
Schedule 4 – UTILITIES
*presented in PHP
86
Schedule 5 – PRE-OPERATING
DEPRECIATION
*presented in PHP
87
Schedule 7 – DEPRECIATION
Pre-Operating Expense
Note:
At 12 Months
10 Directional Signages will be placed along Commonwealth to help customers
locate BakerBros
Daily Facebook Ads will be placed with a budget of 1,000 per day equivalent to
months
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Appendix A – Images
DISPOSAL SYSTEM
PACKAGING
8
91
Appendix A – Permits
Business Permit
Sanitary Permit
92
93
DTI
94
Appendix C – Forms
Invoice
98
Reimbursement Form
99
BIBLIOGRAPHY
1. Internet Sources
www.jolibee.com.ph/downloads/repub/2014/annual_2014.pdf
www.goldilocks.com.ph/business-opportunities
https://www.philhealth.gov.ph/benefits/
http://www.pagibigfinancing.com/articles/2010/benefit-of-becoming-pag-
ibig-fund-members/
https://www.sss.gov.ph/sss/appmanager/pages.jsp?page=ssbenefits
https://www.ecomparemo.com/info/heres-a-full-list-of-mandatory-benefits-
for-regular-employees-in-the-philippines/
2. Books
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Jonvi Desuasido
#245 Ilang-Ilang St. Batasan Hills, Quezon City
#09983144688
desuasido123@gmail.com
Objectives:
Personal Information:
Educational Attainment:
Experience:
OJT- Maynilad
180 hours completed as a encoder
(October 10, 2016 – November 16, 2016 )
Skills:
Good Communication
Computer Literate
Can work flexible and Multi-tasking
Character Reference:
Jonvi Desuasido
Applicant Signature
102
Objectives:
Personal Information:
Educational Attainment:
Experience:
OJT- Maynilad
180 hours completed as a encoder
(October 10, 2016 – November 16, 2016 )
Skills:
Good Communication
Computer Literate
Can work flexible and Multi-tasking
Character Reference:
Objectives:
To be a part of a stable organization where I can hone my skills, contribute ideas and grow with
the company.
Personal Information:
Educational Attainment:
Experience:
Skills:
Basic knowledge in Microsoft Office applications such as Word, Excel and Powerpoint.
Basic knowledge in drafting business correspondences and reports.
Character Reference:
Allan S. Loreto
#220 Don Faustino St. Don Antonio Hts. Diliman Quezon City
Mobile #: 0907289483
Objectives:
Personal Information:
Educational Attainment:
Experience:
107
Skills:
Good Communication
Computer Literate
Can work flexible and Multi-tasking
Character Reference:
Allan S. Loreto
Applicant Signature
108
Objectives:
Personal Information:
Educational Attainment:
Experience:
Seminars/Training attended:
NCIII Bookkeeping
TESDA Passer March 20, 201 ,Ma’am Marjorie De Vera
Skills:
Character Reference: