Chapter 1

BACKGROUND OF THE STUDY

This chapter presents the introduction and purpose of the study, the history of the
project, the proponents, proposed name of business project, type of business
organization and the location of the proposed business or project.
Introduction
There are many businesses established in Pililla,Rizal to support the needs of
the people such as bakeries and convenience stores. why we want to establish
restaurant to Pililla, Rizal simply because there a lot Population on it and also we
visualize that if we are going to build a restaurant there it will be more successful and
ofcourse to have experience to compete to the competitors because there are some
restaurants established in Pililla.
The primary purpose of establishing restaurant is to satisfy the want of the
customer and also to earn profit, but the bottom line is to serve a customer and provide
meals that are fast or inexpensive, that have particular ethnic or nutritional styles, or that
are conveniently located. And every restaurant has one main purpose. The proponent
assures that the foods provided are fresh, healthy and in good quality.
History of the Project
The proposed project was conceptualized by the proponent. The business to be
established will be competing with other restaurants since it will offer products that
would satisfy the customers. Some seafoof restaurant business may not be totally easy
1

to meet the demands for valuable products and services in the locality but we can
provide additional supply in safety and health. Our Restaurant concept means creating
a brand identity for our client with an aim of getting the highest probability of success,
while creating a unique brand personality with its exquisite cuisine, feel-good ambiance,
efficient service delivery system and other incomparable features.
Project Proponents
The proponents of this project are Gilliane S.J Clemente, Bernadeth G. De Leon,
Bachelor of Science In Business Administration Major in Marketing of the University of
Rizal System, Pilillla Rizal.
Table 1
Proponents of the theB &G Restaurant
Name
Clemente,
Gilliane S.J

Citizenship

Address

Filipino

301 Natividad St.

San Pedro
Morong,Rizal

Types of
Parnership

% of Ownership

50%

General
Partnership

De Leon
Bernadeth G.

Filipino

10 M.L Quezon
Tanay, Rizal

Total

50%

100%

The proposed project of the proponents are the sole owner or sole proprietorship
type of business.
2

Types of Business Organization

Restaurants have very specific staffing needs, and their organizational structure
must be in line with those needs to function well. The size of the restaurant usually
determines the ultimate structurestaffers often take on more than one role in smaller
establishment, but restaurants typically have the same basic framework, regardless of
their size. The structure is designed to implement a system of responsibility and
accountability, with a clear chain of command.
Logo of the Business

Figu
re 1
Logo of B&G Restaurant
The color yellow that we been choose to title could mean a warm and happy
color which creates a sense of cheerfulness and playfulness. Psychologically, it is
optimistic, uplifting and illuminating, brightening people's spirits and the bright yellow is
used to grab the attention of people. The white chef hat figure on top of the logo
remains a symbol of authority and knowledge so that potential costumer can easily
identify and recognize the logo and the Red ribbon is a symbol of love. Red is a warm
and positive color, a very physical style which draws attention to itself and calls for
4

action to be taken.The large diamond shape placemat design that we made is to attract
the costumers and think that its unique and excitement to visit our restaurant and good
to visit with family and friends to eat at B&G Restaurant .We chose this concept
because it is unique and unlike other simple restaurant.
Location of the Project
The Establishment of B&G Restaurant Business will be located at National Road
Barangay HalayhayinPililla, Rizal. The proponents will rent a commercial land and build
the proposed business project.

Figure 2
Location of the Project
Project Location

Figure 3
Project Location
The Location is 3,500 per square meter therefor we have to build our restaurant
for 30square meter. The location is said to be strategic and ideal for the business for it is
free from hazard and disturbances such as factory, dumpsite and drainage.
Vision:
To be a popular restaurant in Pililla,Rizal.
Mission:
The establishment of B&G Restaurant provides the quality goods and services at
a reasonable cost.

Chapter 2
MANAGEMENT AND PERSONNEL FEASIBILITY
This chapter presents the organizational structure, management proposal,
management component and supporting professional firms, personal work force, the
salary structure of the Personnel and forms and business organization.

CM
h
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C
go
oe
kr

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C
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s
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e
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Figure 4
OrganizationalStructure of B&G Restaurant

Proposed Organizational Structure of B&G Restaurant

The proponents chose the functional structure because this kind of organizational
structure best suits a fun restaurant business that is part of a chain or franchise that

have a distinctive, deliberate and consistent themed image or band. This structure will
also allow the proponent pursue their strategies consistently.
Personnel Workforce
Table 2
Personnel Workforce and Job Qualification
Personnel

No. of employees
1

Manager

Waiter/Waitress

Chef/Cook

Job Description
- Organizing of
stock
ordering food
supplies and
equipment
inspection of
health and
safety
precautions
and solving
employee or
customer
problems.
-Provides
assistance to client/
customers through
taking and
placement of orders
-Responsible for
other services which
may be requested
by the
clients/customers
from time to time
- Oversees
and
participate in
the
preparation
and cooking
and serving
9

Qualification
Female. 20 26
years old.
Graduate of any
Business course.
Hardworking,
honest, highly
motivated and
oriented.
-with experience

- 18-35 years old at

least High School
graduates.
-Pleasing
personality

Have skills
in cooking
and
preparing
foods.
-Experience
on cook, and

of main
meals,
snacks. etc in
accordance
with specified
menus
- Have good
skills in
computation
- Maintain the
cleanliness of
plates, glass,
spoons/fork.
etc.

1
Cashier
1

Dish Washer

food
preparation.

Knows how
to compute

-Know the proper

specifications
needed to sterilize
restaurant utensils.

1
Janitor

Maintain the
cleanliness of
the
restaurant.

-know how to clean

properly.

Table 3
Salary Structure of the Personnel of B&G Restaurant
Position
Manager
Waitress
Chef/ Cook
Cashier
Dish Washer
Janitor
Total

No. of Employee

Compensation

Monthly Salary

Yearly Salary

1
3
2
1
1
1
9

15,000
6,000
12,000
6,000
5,000
5,000

15,000
18,000
24,000
6,000
5,000
5,000

90,000
108,000
144,000
36,000
30,000
30,000
438,000

The table shows the salary Structure of the personnel of B&G Restaurant in
six months, the number of employees, compensation, monthly and the annual salary.

10

During the Pre-operational period

During the pre-operational period the persons concerned are the following:
Partners, Construction Worker.

During the operational period

The personnel must be qualified for the position. There are the persons which will make
the organizational structure.
Forms of Business Organizations
Since the proponent agreed to contribute for the capital to form the business, proponent
chooses the proponent itself. It is easy to form business profit and losses wil be
distributed only to the proponent.

11

Chapter 3
MARKETING FEASIBILITY
This chapter presents the market description, demand and supply, market
demand and supply gap analysis, marketing plans and sales projections.
Market Description
The target market of B&G Restaurant are the households in the towns of Pililla,
Rizal more particularly the barangays of Bagumbayan, Halayhayin, Hulo, Imatong,
Takungan and Wawa.
The total household population for the year 2012 is 4,677. Moreover, the socio
economic status was also considered in the study with the 2% annual growth rate
increase,based from the record given by the municipality of Pililla.
Table 4
Total Number of Household per Barangay for the Year 2012
Year

Household

Wawa

860

Imatong

154

Bagumbayan

1,678

Takungan

252

Halayhayin

1,733

Total

4,677

12

Table 5
Total Number of Household for the Last Five Years
Year

Household

2012

4,677

2013

4,771

2014

4,866

2015

4,963

2016

5,062

The table shows the number of household for the last five years. The population
has an annual increase of 2% as per record requested from the municipality.
Table 6
Total Number of Household for the Next Five Years
Year

Household

2017
2018

5,163
5,266

2019

5,371

2020
2021

5,478
5,588

The table presents the number of Household for the next five years. It shows an
increase of 2% every year.

Market Demand

13

Based from the survey made by proponents, only 85% are willing and able to
avail in the proposed business. Moreover, the potential clients revealed that they were
able to purchase an average of 5 as the number or frequency to avail the restaurant
service in a month.
Table 7
Demand of Service for the Last Five Years
Year

Population

85% Willing
and Able

No. of Purchase
(Year)

2012

4677

3975

238,527

2013

4771

4055

243,321

2014

4866

4136

248,166

2015

4963

4219

253,113

2016

5062

4303

258,162

Table presents the demand of service for the last five years. It shows an 85%
willing and able to avail in the proposed service with specific number or frequency of
purchase in a year.

Table 8

14

Demand of Service for the Next Five Years

Year

Population

85% Willing and

Able

No. of Purchase (Year)

2017

5163

4389

263,313

2018

5266

4476

268,566

2019

5371

4565

273,921

2020

5478

4656

279,378

2021

5588

4750

284,988

The table presents the demand of service for the next five years. It shows an
annual increase of 2%, using the growth rate of household population.
Market Supply
There are four (4) existing restaurant in the target market, namely: Bulawan
Restaurant, Aling Mameng, Tita Carmen and Daily Beans.
Table 8
Supply of Service for the Year 2016
Bulawan

AlingMameng

Tita Carmen

Daily Beans

Daily

Yearly

Daily

Yearly

Daily

Yearly

Daily

Yearly

200

7300
0

150

54750

100

3650
0

50

1825
0

TOTAL

182,500

Table presents the supply of service for the year 2016 where it shows the number
of purchase daily and yearly.

The data presented was revealed by the existing

restaurant service.

15

Table 9
Supply of Service for the Next Five Years
Year

Bulawan

AlingMameng

Tita

Daily Beans

Supply

2017

74460

55845

37230

18615

186,150

2018

75949

56962

37975

18987

189,873

2019

77468

58101

38734

19367

193,670

2020

79018

59263

39509

19754

197,544

2021

80598

60448

40299

20149

201,495

Table presents the supply of service for the next five years.As revealed by the
existing supplier of service, there is a 2% annual increase of purchase.
Table 11
Supply and Demand Gap Analysis
Demand
Year
2017
2018
2019
2020
2021

263,313
268,566
273,921
279,378
284,988

Supply
186,150
189,873
193,670
197,544
201,495

Gap

%
77,163
78,693
80,251
81,834
83,493

29
29
29
29
29

As seen from the table, there is a 29% gap that represents the unsatisfied
customers.

16

16%
28%
Bulawan

Aling mameng Tita Carmens Daily Beans

15%
G&B Restaurant Unsatisfied

7%

20%
14%
Figure 5

Market Share of Restaurant Service

The figure shows about the market share of the restaurant service which is 28%
for Bulawan Restaurant, 20% AlingMameng, 14% for TitaCarmens, 7% Daily Beans,
15% proposed share of B&G Restaurant, and the remaining 14% for the unsatisfied
customers with the total of 100%.

Table 12
General Marketing Practices
Name of the Business\Producers

Supply per Year

51,100
36,500
25,550
12,775
27,375

Bulawan Restaurant
Aling Mameng
Tita Carmens
Daily Beans
B&G Restaurant
17

Percentage
28%
20%
14%
7%
15%

29,200

Unsatified

16%

The table presents the amount supply per year of the B&G Restaurant and its
total percentage.
Market Plan
Price

Promotion
B&G Restaurant may have some proportional activities like reposting tarpaulin
and the proponent will give an extra discount.
B&G Restaurant

Customer

18

Chapter 4

PRODUCTION/ SERVICES FEASIBILITY

This chapter talks of the production process, production and services, project site
and lay out, building facilities, equipment, man power, waste disposal, product cost and
system and form design.
19

It is an assault to know what location is suit best for the project and if it is
convenient to the market. Make an environment that will not only beguile potential
customers. However, persuade them to use the service and create effective and
efficient flow of operation.
Production and Service Specification
The product and services that project offers will give satisfaction to the customer;
they will be relaxed by the scenery, while enjoying their meal. The proponent has
different kinds of foods that will suit the taste of the customers.

Product and Price

20

Garlic Rice (15.00)

Plain Rice (10.00)

Sizzling Pork Sisig (150.00) LechonKawali (225.00)

21

Grilled Pork (120.00)

Crispy Pata (480.00)

Sweet Sour Pork (145.00)

Beef Caldereta (325.00)

Pork Belly (325.00)

Kare-Kare (280.00)

Beed Tapa (225.00)NilagangBaka (220.00)

Roasted Chicken (275.00) Sizzling Chicken Sisig (150.00) ChickenTeriyaki(175.00)

Chicken Lollipop (160.00)

Grilled Pusit (135.00)

22

Grilled Bangus Belly(145.00)

Sizzling Squid (150.00)

Sizzling BangusSisig (145.00) SinigangnaHipon(325.00)

SinigangnaBangus (170.00) Fish Teriyaki (220.00)Chopsuey (175.00)

Pinakbet (120.00)

AdobongKangkong (145.00)

23

Leche Plan (29.00)

BukoPandan (25.00)

Bottled Softdrinks (30.00)

Fresh Fruits (95.00)

PANSIT BIHON Bilao

Small (250.00)

Medium(400.00)

Large (500.00)

Spagetti (50.00)

Palabok(50.00)

Macaroni Salad (35.00)

Egg Pie (20.00)

24

Figure 5

Service Process
The menus are presented to the customers and then the waiter will take the
customer`s order to give the same to the counter. The preparation of the food will be
done to the kitchen area. Only the fresh ingredients will be used to create the dishes.
The standard of sanitation will be strictly observed by the chef/Cook and the other crew
of the restaurant. The payment for the goods will be offered so the customers shall be
satisfied before they leave the restaurant. The waiter will give the bill at the request of
the customers then payment will be remitted to the cashier.

25

C
k
T
c
A
S
G
P
d
F
h
lv
D
g
in
y
a
p
r
e
m
o
t
s
u
w
f
b
B
Figure 6

Service Input

The services offered by the fast food are healthy, delicious foods and drinks

except alcoholic beverages because of some customers like students that are minor.

Raw Sea foods and meats will be ordered directly to the public market of Tanay

to ensure that they are fresh. The order of ingredients will be daily and will not be
stocked to the freezer to ensure that the foods to be prepared are fresh daily.

26

Table 12
Production Schedule
Product

Price
list

No. Of
orders/day

per year

Total
amount/
month

Total
Amount
/Year

10
15
120
150
225
480
145
325
280
325
225
220
275
175
160

Month
300
200
60
70
60
75
60
75
80
70
65
70
70
75
70

Plain rice
Garlic rice
Inihaw nababoy
Sizzling sisig
Lechon kawali
Crispy pata
Sweet pork
Pork belly
Kare-kare
Beef caldereta
Beef tapa
Nilagang Baka
Roasted Chicken
Teriyaki
Chicken Lolipop

1
1
1
1
1
1
1
1
1
1
1
1
1
1
1

3,000
3,000
7,200
10,500
13,500
36,000
8,700
24,375
22,400
22,750
14,625
15,400
19,250
13,125
11,200

36,000
36,000
86,400
126,000
162,000
432,000
104,400
292,500
268,800
273,000
175,500
184,800
231,000
157,500
134,400

Grilled pusit
Bangus belly
Sizzling squid

135
145
150

70
65
70

1
1
1

9,450
9,425
10,500

113,400
113,100
126,000

Bangu sisig
Sinigang na hipon
Sinigang na bangus
Fish teriyaki
Chopsuey
Pinakbet
Adobong kangkong
Leche plan
Buko pandan

145
325
170
220
175
120
145
29
60

80
70
65
70
65
60
70
150
200

1
1
1
1
1
1
1
1
1

11,600
22,750
11,050
15,400
11,375
7,200
10,150
4,350
12,000

139,200
273,000
132,600
184,800
136,500
86,400
121,800
52,200
144,000

27

Pansitbihon (Bilao) small

Pansitbihon (Bilao)
medium
Pansitbihon (Bilao) large
Spaggetti
Palabok
Macaroni salad
Egg pie
Bottled Softdrinks
Fresh fruits
Total
Total Cost of Sales

250
400

70
50

1
1

500
50
50
35
20
30
95

30
65
70
50
50
200
200
3,220

1
1
1
1
1
1
1
38,640

17,500
20,000

210,000
240,000

15,000
180,000
3,250
39,000
3,500
42,000
1,750
21,000
1,000
12,000
6,000
72,000
19,000
228,000
447,275
5,367,300
5,367,300.00

Table 13
Machineries and Equipmentof B&G Restaurant
Machineries and Equipment
ASSET

UNIT COST

QTY.

TOTAL AMOUNT

Refrigerator
Wall fan

14000
895

1
2

14000
1790

Exhaust Fan

1500

1500

Doble burner gas stove

755

755.00

Lpg
Jug/Coleman

1500
200

1,500.00
200.00

1
Food Shelf

5000

28

5,000.00

Basin

35

70.00

Fire Extinguisher

7000

7000

Frying Pan

250

600

Cooking Pot
Ladle

250
150

4
4

600
600

Sanshe
Spoon
Fork
Plate

150
90 (dozen)
90 (dozen)
20

4
3
3
40

360
225
300
6,000

Platito
Bowl
Glass
Mug
Pitcher Glass
Thermos
Takure
Chopping Board

10
15
10.00
10
80
250
200
110

40
40
40
40
5
1
1
4

100
1000
2,400
2,000
400
250
200
440

Knife Set
Tray
Strainer
Tissue Holder
TOTAL

300
15
100
10

1
10
2
6

300
150
200
60
48,000

Table 14
Furniture &Fixtures of B&G Restaurant

ASSET
Dining Table

Furniture and Fixtures

UNIT COST
QTY.
700

15

29

TOTAL AMOUNT
10,500.00

Monoblock

150

50

7,500

Television
wall clock

4000
150

1
1

4000
150.00

Fluorescent Lamp

50

200.00

Bucket

50

100

Taboo
Floor Map

20
25.00

2
2

40.00
50.00

Broom
Dust pan

150.00
20

2
2

300.00
40

Total

22,880.00

Table 15
Office Supplies

Supplies
Columnar
Calculator
Ballpen
Official Receipt

50
250
6
20 (1set)

2
2
5
2

Total

100
500
30
40
670

30

Water and waste disposal

Restaurant business would have definitely waste which will be thrown by the
workers of the establishment. Also if their wastes are not disposed properly it will cause
problems not only to the business but also to the society. The business should do its
share in the presentation and maintenance of the surroundings. The firm segregates the
left-over food and/or other garbage into wet and dry and put this in the garbage bags.
The company should go along with the latest developments regarding waste
disposal, which makes job easier and effective.

Manpower
Manpower must be consisting of a cashier who is responsible through the profit
of the eatery. Cook who will be responsible for preparing the food.Dishwasher who will
assist to wash the dishes, Waiter/waitress who will deliver the food to the customer,
Manager who can manage those who are eating.

31

Floor Plan of B&G Restaurant

Floor Plan
Figure 7

32

Perspective View
Figure 8

33

Side View (Left)

Figure 9

34

Side View (Right)

Figure 10

35

Back view
Figure 11

36

Chapter 5

Financial Feasibility
This Chapter presents the project cost, financiers, financial assumptions,
projected financial statements for the next five years and the analysis of the financial
statements.
Total Project Cost
The total investment of the Establishment of B&G Restaurant is900,000.

Table 16
Total Project Cost of B&G Restaurant
Total Project Cost
Land

105,000

Building

1,000,000

Supplies

670

Furniture And Fixtures

62,000

Machineries And Equipment

22,880

Organizational Cost

12,500

Miscellaneous

12,672

Salaries And Wages

438,000

Total Project Cost

2,091,722

Financial Assumption
In the operation of the business, partners have forseen the financial status.
The following are the assumptions made by the proponents of the study.

Sales will increase by 10%

37

 Total investment amounted to 1,500,000.

Supplies will increase 5% percent a year.
No withdrawals will be made by the owners for the first five years of
operation.

Utilities expense will increase 5% every year

VAT increases 30% every year

Depreciation expense, will use straight line method.

Financiers
The proposed project will have an initial of Php1,500,00that will come from the
personal fund of the partners.

Table 17
Partners Capital Contribution

Name of Partner
GillianeS.j Clemente

% on Partnership
50%

Capital Distribution
750,000

50%
Bernadeth G. De Leon
Total

750,000
100%
1,500,000

The table presents the contribution of each partner. It can be seen that GillianeS.j
Clemente contributes 50%, and also Bernadeth G. De Leon will contribute 50%.

38

The distribution of profit and losses of the business will also be based on the
percentage of ownership of the partner. Hence, the partners will receive profit after a
year
Financial Statement
The financial statement presented by GillianeS.j Clemente and Bernadeth G. De
Leon such us income statement, balance sheet, cash flow statement and statement of
changes in owners equity for the next five years.
Establishment of B&G Restaurant
Pre-operating period
Table 18
Assets
Cash on hand
Total Current Asset

323,450.00

Land
Building
Machineries and equipment
Furniture and fixtures
Supplies
Total Non-Current Asset

105,000.00
1,000,000.00
22,880.00
62,000.00
670
1,176,550.00

Total Asset

1,500,000.00

Liabilities And Partnership Equity

GillianeS.j Clemente
Bernadeth G. Deleon
Total Liabilities and Partnership Equity

750,000.00
750,000.00
1,500,000.00

Table 19
Statement of pre-operating Cash flow
39

Cash Inflow
Beginning Balance
Add Sales
Cash Contributors
Total Cash Inflows
Cash out inflows
Organizational Expense
Furniture and fixture
Land
Building
Machineries and equipment
Miscellaneous
Salaries and wages
Supplies
Total cash outflows
Ending Cash Balance

1,500,000

1,500,000
12,500
62,000.00
105,000.00
1,000,000.00
22,880.00
12,672.00
438,000
670
1,653,722
153,722

The table shows the pre-operating balance sheet of B&G Restaurant.

40

Table 20
Establishment of B&G Restaurant
Projected Income Statement for the next Five-year
Net Income (10%)
Less: Cost of Sales
Gross Profit
Less: Operating Expense
Depreciation Expense
organizational expense
Utility Expense (5%)
Land
Building
Salaries and Wages (5%)
Office Supplies (5%)
Miscellaneous Expense (2%)
Advertising Expense (2%)
SSS Contribution
PhilHealth
Furniture and Fixtures
Machineries and Equipment
Total Operating Expense
Net Income before Interest and Taxes
Less: Income Tax Payable (30%)
Net Income after Interest and Taxes

2016
5,367,300.00

2017
5,904,030.00

2018
6,494,433.00

2019
7,143,876.30

2020
7,858,263.93

582,440.00
4,784,860.00

594,088.80
5,309,941.20

605,970.58
5,888,462.42

618,089.99
6,525,786.31

630,451.79
7,227,812.14

16,976.00
12,500.00
120,984.00
105,000.00
1,000,000.00

12,672.00
1,200.00
1,781.00
738.00

16,976.00
12,500.00
127,033.20
105,000.00
1,000,000.00
459,900.00
683.00
12,925.44
1,224.00
1,781.00
738.00

16,976.00
12,500.00
133,384.86
105,000.00
1,000,000.00
482,895.00
697.00
13,183.95
1,248.48
1,781.00
738.00

16,976.00
12,500.00
140,054.10
105,000.00
1,000,000.00
507,039.75
711.00
13,447.63
1,273.45
1,781.00
738.00

16,976.00
12,500.00
147,056.81
105,000.00
1,000,000.00
532,391.74
725.22
13,716.58
1,298.92
1,781.00
738.00

62,000
22,880

62,000
22,880

62,000
22,880

62,000
22,880

62,000
22,880

1,795,401.00

1,823,640.64

1,853,284.29

1,884,400.93

1,917,064.26

438,000.00
670.00

41

Table 21
Establishment of G&B Restaurant
Projected Statement of Cash Flows for the next Five-Years
2016
Beginning Cash Balance
Add Sales
Total cash Inflow
Less: Cash Outflows
Depreciation Expense
organizational expense
Utility Expense (5%)
Land
Building
Salaries and Wages (5%)
Office Supplies (5%)
Miscellaneous Expense (2%)
Advertising Expense (2%)
SSS Contribution
PhilHealth
Furniture and Fixtures
Machineries and Equipment
Income Tax
Total Cash OutFlows
Ending Cash Balance

2017
2,998,961.30

2018
6,039,948.19

2019
9,691,600.13

2020
13,805,023.58

5,690,750.00

5,904,030.00
8,902,991.30

6,494,433.00
12,534,381.19

7,143,876.30
16,835,476.43

7,858,263.93
21,663,287.51

16,976.00
12,500.00
120,984.00
105,000.00
1,000,000.00
438,000.00
670.00
12,672.00
750.00
1,781.00
738.00

16,976.00
12,500.00
120,984.00
105,000.00
1,000,000.00
459,900.00
703.50
12,925.44
765.00
1,781.00
738.00

16,976.00
12,500.00
120,984.00
105,000.00
1,000,000.00
274,666.00
738.68
13,183.95
780.00
1,781.00
738.00

16,976.00
12,500.00
120,984.00
105,000.00
1,000,000.00
280,159.00
775.61
13,447.63
796.00
1,781.00
738.00

16,976.00
12,500.00
120,984.00
105,000.00
1,000,000.00
285,762.18
814.39
13,716.58
812.00
1,781.00
738.00

62,000
22,880

62,000
22,880

62,000
22,880

62,000
22,880

62,000
22,880

323,450.00
5,367,300.00

42

Table 22
Establishment of G&B Restaurant
Projected Balance Sheet for the Next Five-Years
Current Assets
Cash
Advertising Expense
Supplies Expense
TOTAL CURRENT ASSETS
Noncurrent assets
organizational expense
Furniture and Fixtures
Machineries and Equipment
Miscellaneous Expense
TOTAL NON CURRENT ASSETS
Total Assets
Less: Accumulated Depreciation
NET FIXED ASSET
LIABILITIES:
Income Tax Payable
Total Liabilities
Liabilities And Partnership Equity
gilianeclemente
Bernadeth De Leon
Total Partners Equity
Less: Drawings
Total liabilities and Owners Equity

2016

2017

2018

2019

2020

2,998,961.30
750.00
670.00
3,000,381.30

6,039,948.19
765.00
670.00
6,041,383.19

9,691,600.13
780.00
670.00
9,693,050.13

13,805,023.58
796.00
670.00
13,806,489.58

18,426,099.00
812.00
670.00
18,427,581.00

12,500.00

12,500.00

12,500.00

12,500.00

12,500.00

62,000
22,880
12,672.00
110,052.00
3,110,433.30
16,976.00
3,127,409.30

62,000
22,880
30,060.00
127,440.00
6,168,823.19
33,952.00
6,202,775.19

62,000
22,880
30,661.00
128,041.00
9,821,091.13
50,928.00
9,872,019.13

62,000
22,880
31,274.00
128,654.00
13,935,143.58
67,904.00
14,003,047.58

62,000
22,880
31,899.00
129,279.00
18,556,860.00
84,880.00
18,641,740.00

896,837.70
896,837.70

1,045,890.17
1,045,890.17

1,210,553.44
1,210,553.44

1,392,415.61
1,392,415.61

1,593,224.36
1,593,224.36

750,000.00
750,000.00
1,500,000.00
730,571.60

750,000.00
750,000.00
1,500,000.00
3,656,885.02

750,000.00
750,000.00
1,500,000.00
7,161,465.69

750,000.00
750,000.00
1,500,000.00
11,110,631.96

750,000.00
750,000.00
1,500,000.00
15,548,515.63

Table 23
43

Owners Equity

Capital Contribution
Add: Net Income
Total Capital
Capital Contribution
Add: Net Income
Total Capital
Capital Contribution
Add: Net Income
Total Capital
Capital Contribution
Add: Net Income
Total Capital
Capital Contribution
Add: Net Income
Total Capital

Clemente G, 50%
2017
750,000.00
1,046,310.65
1,796,310.65
2018
1,796,310.65
1,220,205.20
3,016,515.85
2019
3,016,515.85
1,412,312.35
4,428,828.19
2020
4,428,828.19
1,624,484.88
6,053,313.07
2021
6,053,313.07
1,858,761.76
7,912,074.83

44

De Leon B, 50%

Total

750,000.00
1,046,310.65
1,796,310.65

1,500,000.00
2,092,621.30
3,592,621.30

1,796,310.65
1,220,205.20
3,016,515.85

3,592,621.30
2,440,410.39
6,033,031.69

3,016,515.85
1,412,312.35
4,428,828.19

6,033,031.69
2,824,624.69
8,857,656.38

4,428,828.19
1,624,484.88
6,053,313.07

8,857,656.38
3,248,969.77
12,106,626.15

6,053,313.07
1,858,761.76
7,912,074.83

12,106,626.15
3,717,523.51
15,824,149.66

Schedule 1
Depreciation Expense
Items
List of Equipment

Price
62,000

Year of useful Life

5

Depreciation
12,400

List of Furniture
Total

22,880

4,576
Php.16,976

Schedule 2
Organizational Expense
BIR
Registration Fee
Documentary Stamp Tax
SUB TOTAL
Legal Aspect
Municipality and Barangay
Barangay Clearance
Community Tax Certificate
Local Tax
Mayors Permit Fee
Sanitation Permit
Fire and Inspection Fee
Health Certificate
Garbage
Police Clearance
Business Permit Plate
Sticker
SUB TOTAL
Bureau of Food and Drug
Processing Fee
Department of Trade and Industry
Registration Fee
Notary Fee
Verification Fee
SUBTOTAL
TOTAL

45

500.00
15.00
515.00
20.00
25
75
550
300
2000
50
100
700
100
80
4,000.00
5200.00
150.00
35.00
1675.00
12,500.00
1,675.00
Php.12,500.00

Schedule 3
Utility Expense
Schedule D :

Year 1

Utilities
Telephone
Light
Water
Total

40382
50,400
30,202
120,984

Year 2

Year 3

Year 4

Year 5

40382
50,400
30,202
120,984

40382
50,400
30,202
120,984

40382
50,400
30,202
120,984

40382
50,400
30,202
120,984

Schedule 4
Salaries Expense
Position

No. of

Compensatio

Monthly

Yearly

Manager
Waitress
Chef/ Cook
Cashier
Dish Washer
Janitor
Total

Employee
1
3
2
1
1
1
9

n
15,000
6,000
12,000
6,000
5,000
5,000

Salary
15,000
18,000
24,000
6,000
5,000
5,000

Salary
90,000
108,000
144,000
36,000
30,000
30,000
438,000

Schedule 5
Miscellaneous Expense
Expense
Transportation
Total

Monthly
960
Php.960.00

Yearly
12,672
Php.12,672.00

Schedule 6
Advertising and Promotion
Item

Unit Cost

Qty
46

Total

Tarpaulin
Flyers
Total

350
5

2
100

700
500
Php.1,200.00

Schedule 7
SSS Contribution and Philhealth Contribution
Position

No. of
Employee

Manager
Waitress
Chef/ Cook
Cashier
Dish Washer
Janitor
Total

1
3
2
1
1
1

Salary

SSS
Contribution

15,000
6,000
12,000
6,000
5,000
5,000

Philhealth

545
218
436
218
182
182
1,781

188
100
150
100
100
100
738

Financial Analysis
Ratio Analysis expresses the relationship among selected items of financial
statements.
Table 24
Gross Profit Margin
Gross Sales
Sales
Gross Profit
Margin

2016
4,784,860.0
0
5,367,300.0
0

2017
5,309,941.2
0
5,904,030.0
0

2018
5,888,462.4
2
6,494,433.0
0

2019
6,525,786.3
1
7,143,876.3
0

2020
7,227,812.1
4
7,858,263.9
3

0.89

0.90

0.91

0.91

0.92

The table shows the gross profit margin of B&G Restaurant. It shows that there
are almost 89-92% of sales remaining througout the year.

47

Table 25
Operating Profit Margin
Operating Income
Sales
Operating Profit
Margin

2016
2,989,459.0
0
5,367,300.0
0

2017
3,486,300.5
6
5,904,030.0
0

2018
4,035,178.1
3
6,494,433.0
0

2019
4,641,385.3
8
7,143,876.3
0

2020
5,310,747.8
8
7,858,263.9
3

0.56

0.59

0.62

0.65

0.68

The table shows the operating profit margin of B&G Restaurant. . It shows that
there are almost 48-61% of sales remaining after all the operating cost and expenses
are deducted throughout the year.Table 26
Net Profit Margin
Net Profit
Sales
Operating Profit
Margin

2016
2,092,621.3
0
5,367,300.0
0

2017
2,440,410.3
9
5,904,030.0
0

2018
2,824,624.6
9
6,494,433.0
0

2019
3,248,969.7
7
7,143,876.3
0

2020
3,717,523.5
1
7,858,263.9
3

0.39

0.41

0.43

0.45

0.47

The table shows the operating profit margin of B&G Restaurant. . It shows that
there are almost 33-43% of sales remaining after all the operating cost and expenses
including interests and taxes have been deducted throughout the year.

Table 27
Return on Assets
Net Profit
Total Investment
ROA/ROI

2016
2,092,621.3
0
1,500,000.0
0
0.72

2017
2,440,410.3
9
1,500,000.0
0
0.61

2018
2,824,624.6
9
1,500,000.0
0
0.53

2019
3,248,969.7
7
1,500,000.0
0
0.46

2020
3,717,523.51
1,500,000.00
0.40

The table shows the operating profit margin of B&G Restaurant. . It shows that
there are almost 45-84% to generate its profit with its used assets throughout the year.

Table 28
48

Return on Equity
Net Profit
Total Owners
Equity
ROE

2016
2,092,621.3
0
1,500,000.0
0
0.72

2017
2,440,410.3
9
1,500,000.0
0
0.61

2018
2,824,624.6
9
1,500,000.0
0
0.53

2019
3,248,969.7
7
1,500,000.0
0
0.46

2020
3,717,523.5
1
1,500,000.0
0
0.40

The table shows the operating profit margin of B&G Restaurant. . It shows that
there are almost 45-84% to generate its profit with its used assets throughout the year.

Table 29
Payback Period of B&G Restaurant
Total Project Cost
Ave. Annual Cash Flow
Payback Period

2,091,722
33,456,838.15
0.06

The table shows the return on equity of B&G Restaurant. It shows the computed
payback period is 0.06 multiplied by the no. of operation. The result will be 8 months,
the total project costs will return to the proponents.
Chapter 6
TAXATION AND LEGAL ASPECT

Taxation is the process or means by sovereign through its law making body,
raises income to defray the necessary expenses of the government.
Taxation is a means by which government finance their expenditure by imposing
charges on citizens and corporate entities. It is the power of the government in which a
governing authority accumulates revenue by levying a charge on its citizens economic
activity.
Taxes are levied from persons, properties and rights. Moreover, as per business
organization is concerned, tax rates also may vary. Business organization are levied at
49

different rates and based on the different categories on tax schedule on their income
during the year.
Government use taxation to encourage or discourage certain economic
decisions. They gave the right to collect taxes from people under its authority that will
support the government activity from the country needs and support the continuance of
its operation.
Taxation
Persons engaging in business as partners in a general professional partnership
shall be liable for income tax in their separate the legal capacities, purpose of
computing the distributive share of the partner, the net income of the partnership. Every
one of the member of the business shall report as a gross income in his return, the
distributive share in the next income of the business of the partnership whether actually
constructively received.
A partnership as such is subject to income tax for the purpose of furnishing
information as to the share of the partnership that each partner shall include in his
individual return.
The owner of the partnership is automatically pay taxes impose on machines and
the owners or partnership can legally reduce tax liability by using its available cash
investment in order to increase resources.
Legal Aspects Affecting the Business

50

Any business must conform the government laws, rules and regulations to
ensure that its operation. Before operation of the business the owner must secure the
following:
1. Bureau of Internal Revenue (BIR) The BIR will issue the business a tax payer
identification number (TIN) an authority that prints official receipts that register your
accounting books and software
2. Barangay Business Permit to ensure the barangay clearance to operate a business
3. Mayors Municipal Business Permit The Municipality of City Hall Office process the
business permit which includes; Sanitary Permit, Fire Safety, Inspection Certificate,
Garbage Permit, Plumbing Permit and Electrical Permit.

The Establishment of B&G Restaurant in Pililla Rizal

Organizational Cost
Table 29
Taxation
BIR
Registration Fee
Documentary Stamp Tax
SUB TOTAL
Legal Aspect
Municipality and Barangay
Barangay Clearance
Community Tax Certificate
Local Tax
Mayors Permit Fee
Sanitation Permit
Fire and Inspection Fee

Amount
500.00
15.00
515.00

20.00
25
75
550
300
2000
51

Health Certificate
50
Garbage
100
Police Clearance
700
Business Permit Plate
100
Sticker
80
SUB TOTAL
4,000.00
Bureau of Food and Drug
Processing Fee
5200.00
Department of Trade and Industry
150.00
Registration Fee
35.00
Notary Fee
1675.00
Verification Fee
12,500.00
SUBTOTAL
1,675.00
TOTAL
12,500.00
Show the annual cost of permit fees and license to operate the business
with the total amounting to P12,500.00

52

Chapter 7
Project Implementation and Time Table

This chapter indicates proposed project time table, the period covered by the actual operation it also focused the
future plans and proponents.

Table 30
Project Implementation and Time Table
This chapter presents the pre operating phase that includes the schedule of activities and time frame.
Gannt Chart for the whole Cycle

Activity

july

aug.

sep.

Months
oct.
nov. de
c

Conducting Feasibility Study

Acquisition Of The
Equipment
Construction Of Building
Hiring Of Personnel
Purchasing Of Equipment
Starts Normal Operation

53

Jan
.

Feb.

april
march

May.

June

On the First month of July the Proponents Conducted a Project identification on

what will be there proposed project. This includes Brain Storming and Sharing of Ideas
on what this should be considered in conduct feasibility study.
On the month of August, The proponents started feasibility study by collecting
ideas from the target customers of their project this process continued until the month of
September.
On the month of September, The proponents are focused on preparing
investments and search for business allocation site. The capital of the business is to
use for the acquisition of equipment and materials, installation of furniture and
equipment, and the possible expenses, the location of the business is one of the
Factors to be considered by the proponents to be able to got more customers. The
location must be reachable and accessible anytime
On the Month of October, they started to work out the legal registration of the
business proposed the financial preparations for initial inventories. Legal registrations
are needed to legalized the business and the financial preparations is prepared to be
able to be determine the necessary expenses.
On the month of December, the proponents focused on purchasing of
equipments and new materials and hiring of employees, the equipment and new
material. The Equipment to be used in productions are checked for its quality. In hiring
of employees, the proponent considered skills and capacity of applicants.
The market of the Business and first month of operations of the business will be
on December marketing to customers help the business to grow and have more
customers.

54

Chapter 8
CONCLUSION
This chapter represent the projected problem drawn by proponents, its
recommendation and the conclusion of the study.
Perceived Problems
With regards to the feasibility and viability of putting up a B&G Restaurant in
Barangay Pililla Rizal.
Following are the perceived problems;
1. With the new established B&G Restaurant in this place, people might hesitate to
avail the business services.
2. Disagreement among the employees and the management.
3. Customers that are difficult to deal with.
4. Continuous increase in the price of raw materials.

Conclusion:
The proponents concluded based on the research they conducted that a
Restaurant Business is feasible provided that a proper combination of production
technical, management and marketing strategies is applied.

55

Recommendations:
To eliminate the effects of problem perceive by the proponents they recommend
the following solutions.

The proponents will prepare a very convincing proposal and presentation

regarding the inventors to invest in the project proposal

Quality of foods and services will continuously improve to satisfy the customers

and to give them more than what they expected.

Good human relationship.

56