A FEASIBILITY STUDY ON

Presented to
Professor Gil Astrophel Orcena

Members:
DUMLAO, GERRY MAE D.
QUIAPO, AIREEN MATDA D.
BARUELO, PAMELA THALIA G.
UY, JUSTIN MATTHEW

CHAPTER 1
INTRODUCTION

Tea Business can be seen like mushrooms popping in of metropolis. It is

a thriving business most especially in highly urbanized cities. The
entrepreneurial activity we chose for our feasibility study is a tea house,
which is an establishment that primarily serves tea and other refreshments.
Teas have already been introduced to us for over four thousand years ago
but teas are now becoming more popular and more famous with the help of
the social media. It is beautiful to know that teenagers these days, in such an
early age, are now mostly focusing on being healthy and fit.
It is a planned business of Tea and Bread. Tea houses have different
ways on how to operate their business especially when it comes to the
culture of the location, for example in Asia and in Europe, but here in the
Philippines, we do not have a tea culture. Tea house is one of the trendiest
businesses here in the Philippines because tea house can offer cold
beverages for the dry season and hot beverages for the rainy season. Bubble
tea (or pearl milk tea) is very popular here in the Philippines.
With the primary product tea, where the name of the business came
from. A delicious, healthy drink for everyone.

CHAPTER 2
PROCEDURES IN UNDERTAKING THE ACTIVITY

2.1 Conceptualization of Entrepreneurial Activity

Tea shop can be seen like mushrooms popping in metropolis. It is a thriving
business most especially in highly urbanized cities. For that reason, our group has
decided to propose a business that utilizes tea as its primary product which is
supplemented by mouthwatering foods such as wheat bread, waffles, sandwiches
and fettuccine. However, this type of business will not just offer delicious and
appetizing goods, but might also serve as a growing need of people to relieve
stresses and anxiety through acquiring the products offered by the business.
2.2 Identification of Prospective Clients
Most likely college students, working employees, adults, and teenagers who
love to drink tea are the expected clients for this type of entrepreneurial business.
2.3 Location
Seeing that the clients are possibly be found in the University Belt along
Espana road, this place will be the perfect location for this business, where there are
big universities and numerous establishments.
2.4 Preparation of the needed materials and labor force
Labor force is truly essential this kind of business. One chef with two kitchen
assistants are enough for preparing the foods. Two waiter/waitress and two tellers
can shift in every 8 hours of operation. Also two security guards can shift in every 8
hours. Where the waiter/waitresses are the ones who will bring the orders to the
customers and are assigned for the sanitation of the running business. While the
tellers (cashiers) are just responsible for the payment processing. And lastly,
security guards who accountable in securing the safety of the establishment.

Materials needed for the business are the kitchen utensils, appliances,
furniture, materials, interior design elements and equipment needed for sanitation
and of course the ingredients which will be used in the business. These materials
are all available at the market. So it is easy for the business to acquire them all as
soon as possible. Interior design plays an important role for this type of business,
where it will provide a relaxing ambience with proper lighting plus well-modulated
music.

2.5 Cost Projection/ Estimation

The Cost Projection is Php 788,961.00.

CHAPTER 3

BENEFITS for THE CONSUMERS AND PRODUCERS

3.1 BENEFITS OF THE CONSUMERS

Location
The proposed location of the business establishment will be located
near the university belt, making it accessible to the consumers that will
most probably be students from different universities like University of
Santo Tomas, University of the East, Far Eastern university, and others, that
would have a short second walk away from the business establishment
Relaxation
There are different kinds of tea that have different effects in our body,
some would make us feel relaxed, and some would make us feel fresh.
During a hot day, our shop can make the consumers feel cool by offering
cold drinks, and make the consumers feel calm by offering a hot drink
during a cold or rainy day,
Amenities
Of course our business will offer air-conditioning systems and Wi-Fi.
Most business establishments are offering Wi-Fi, it has an advantage in a
way that the consumers can spend their time making their assignments or
work while eating or drinking at the tea house.
Fulfillment
Our business would offer an affordable price for our products that
would make the consumers feel fulfilled for their purchases. Most students
from different universities would have some food cravings that our business
can offer, giving them the satisfaction that they want.

3.2 BENEFITS OF THE PRODUCERS

Attraction from the consumers

Tea houses are one of the trendiest business in the Philippines, Having
the business established near the universities would attract a lot of
students from University of Santo Tomas, University of the East, Far Eastern
University, and others.

3.3 OTHER BENEFITS

Employment
The unemployment rate in the Philippines is really high, of course
establishing a business would help an unemployed to be employed, or also
help a student to pay his or her tuition by letting them work at the business.

CHAPTER 4
PRODUCTION ACTIVITY
4.1 Identification of the Production Activity
Initial Capital for the commencement of the entrepreneurial business
operation is shown at the project cost schedule.
4.2 Description of the Production Activity and Processing
Business operation will run with tea, as its main product. Sandwiches,
pastas, waffles and some other breads will supplement the tea, frappe and slush
drinks. The chef will all prepare the foods and products with the assistance of the
kitchen crews.
4.3 Discussion of the Production Function
PROJECT COST

Materials

Quantity

Market Price

Total Cost

Blenders
Tea and
Espresso
Machine
Baking Oven
Microwave Oven
Cash Register
Centralized- Airconditioning
Unit
Refrigerator
Speakers
TV monitors
Tables
Chairs
CCTVs
Wooden Rack
Building Fee
Cups
Plates
Spoon and Fork
Straw

6
2

900
26,000

Php 5,400.00
Php 52,000.00

2
1
2
3

11,500
10,000
13,000
70,000

Php 23,000.00
Php 10,000.00
Php 26,000.00
Php 210,000.00

1
4
2
20
60
8
4
1
100
100
100
150

58,500
2600
18,500
8,000
2,000
4,500
7,500
150,000
115
130
85
0.50

Php 58,000.00
Php 10,400.00
Php 37,000.00
Php 160,000.00
Php 120,000.00
Php 36,000.00
Php 30,000.00
Php 150,000.00
Php 11,500.00
Php 13,000.00
Php 8,500.00
Php 75.00

Saucers
100
20
Php 2,000.00
Ashtrays
50
20
Php 1,000.00
Display Trays
20
35
Php 700.00
Order Trays
15
45
Php 675.00
Other kitchen
Not applicable
1500
Php 1,500.00
utensils
Office
Not applicable
1000
Php 1,000.00
equipment
Ingredients
Not applicable
35,000
Php 35,000.00
Uniforms
27
500
Php 13,500.00
CDs
Not applicable
2000
Php 2,000.00
Other appliances
Not applicable
10,000
Php 10,000.00
WIFI
Not applicable
25,000
Php 25,000.00
Lighting units
Not applicable
10,000
Php 10,000.00
License Permits
Not applicable
10,000
Php 10,000.00
Miscellaneous
Not applicable
15,000
Php 15,000.00
Expenses
TOTAL
Php 788,961.000
TABLE 1. Project Cost
-Table 1 (Project Cost) shows all the expenses and overall cost needed for initial
investment of the business activity.

4.4 Identification and Discussion of the Projected Cost

Workers Salary
Position (Job)
Chef
Kitchen Assistant
Cashier
Waiter/Waitress
Security guards

Quantity
Monthly Salary
1
15,000.00
2
8,000.00
2
6,000.00
2
6,000.00
2
6,000.00
TOTAL
Table 2. Workers Salary

Total Salary
Php 15,000.00
Php 16,000.00
Php 12,000.00
Php 12,000.00
Php 12,000.00
Php 67,000.00

-Table 2 (Workers Salary) shows the monthly wages of the labor force and the total
salary given in to each job of an individual.

MONTHLY FIXED COST

Material
Cost
Building Fee
Php 150,000.00
Workers Salary
Php 67,000.00
TOTAL
Php 217,000.00
Table 3. Monthly Fixed Cost
-Table 3 (Monthly Fixed Cost) shows the constant expenses in every month of
operating the business. These expenses / costs will stay the same for each month of
the business. Fixed cost will be added into the variable cost to obtain the Total cost.
MONTHLY VARIABLE COST
Material
Ingredients
Electric Bill
Water Bill
Internet Connection Bill
Other expenses
TOTAL
TABLE 4. Monthly Variable

Cost
Php 25,000.00
Php 30,000.00
Php 10,000.00
Php 15,000.00
Php 5,000.00
Php 85,000.00
Cost

-Table 4 (Monthly Variable Cost) is assumed as constant on a monthly basis,

however variable cost is a changing value of expenses / cost. It will be assumed to
have the same values for each expenses from January to December.

TOTAL COST
Fixed Cost
Php 217,000.00

Variable Cost
Php 85,000.00
Table 5. Total Cost

Total Cost
Php 302,000.00

-Table 5 shows the total cost in each month. Total Cost is the sum of Fixed Cost AND
Variable Cost. Assuming that the Variable Expenses are all constant.

4.5 Profitability
Projected Month Revenue

Products
Regular Tea
Frappe (S)
Frappe (M)
Frappe (L)
Slush (S)
Slush (M)
Slush (L)
Pasta
Waffles
Other Bread

QuantityS
Price
Sales
1200
80
Php 96,000.00
2400
95
Php 228,000.00
1500
120
Php 180,000.00
850
145
Php 123,250.00
2200
90
Php 198,000.00
1300
110
Php 143,000.00
800
130
Php 104,000.00
2220
80
Php 177,00.00
1800
45
Php 81,000.00
1320
35
Php 46,200.00
TOTAL
Php 1,217,750.00
Table 6. Projected Monthly Revenue

-Table 6 (Projected Monthly Revenue) is again assumed as constant for a monthly

basis. The table shows the specific goods and products which the business offers.
With the quantity supplied multiplied by the price of each, revenue will be obtain.
Quantities in the table are automatically multiplied by 30 days for each month.
Summing all the sales of each products is the projected monthly revenue.

Monthly Projects Profits

Month

Monthly
Cost

Project
Cost

Total
Monthly
Cost

Monthly
Revenues

January

Decemb
er

Php
302,000.0
0

Php
788,961.
00

Php
1,090,961

Php
1,217,750.
00

Monthly Profits

Php 126,789.00

Table 7. Monthly Projects Costs

-Table 7 (Monthly Project Costs) shows the gained profit for every month of
operating the business. The sum of the monthly cost and project cost is the total
monthly cost, while the monthly revenue is the sales for each month. Subtracting
the Total monthly cost from the Monthly revenues , Monthly profits will be obtained.

MANAGERIAL PLAN
5.1 Objectives of the Entrepreneurial Activity
Tealicious aims to:

Seeks to provide a delicious tea world of flavor freshly brewed and

barely sweetened.
We seek to provide better-tasting, healthier teas the way nature and
their cultures of origin intended them to be.
We strive for relationships with our customers, employees, suppliers
and stakeholders which are as healthy.
To imparts many health benefits not found in tea-flavored drinks.
To become a cultural experience, from the genuine tastes to the
distinctive international art and information on the label

5.2 Organizational Plan

The business activity has two owners. Both two are the general managers.
However, the other role of one owner would be the researcher and the other one is
responsible for financial managing.
5.3 Business Strategy
Business establishment exterior design is beautify and pamphlets for the
business. And there would be a discount card for every 5000 pesos minimum of
purchase.
5.4 Pricing strategy
5.5 Environmental Plan
5.6 Policies and Provisions
Cleanliness must always maintained. Employees should do their job well.
5.7 Other aspects

PERSPECTIVE VIEWS

ENTRANCE

BUSINESS OPERATION (Morning)

BUSINESS OPERATION (NIGHT)