5 ¾ STREAT

Presented by:
Zaralyn Grace Amotan
Aivon Joyce Marcellino
Karen Joy Biboso
Jeraldine Cuizon
Aira Mae Egaran
Iris Guinto

September 2017
 Table of Content

I. Executive summary………………………………...3
II. Business Idea and Strategic Goals……………….4
III. Management team and Organization…………….8
IV. Products and Services……………………………..21
V. Market and Competition…………………………...27
VI. Marketing and Sales……………………………….36
VII. Production Plan…………………………………42
VIII. Financial Plan…………………………………...58

2
 Executive Summary

5 ¾ Streat is a start up on-the-go food stall that will be selling gourmet

pasta in a cone and gourmet burger and fries with different choices of dips. It will

use the collaborative idea of pasta cones from a well-known restaurant in New

York City, Both pasta cone and burger idea are famous in New York and we plan

to introduce it in General Santos City.

As a start up we envision it to be the best quality producer of classic and

innovative Italian and American cuisine in General Santos City with a mission to

be the customers’ favorite restaurant that serves great tasting food, while

delivering quality service and cleanliness. And to open more job opportunities for

the locals and to create a working environment which is healthy for the

employees to grow, and develop more professionals.

Specifically it aims to introduce and spread the idea of on-the-go flavorful

classic dishes in General Santos, produce quality tasting dishes, and garner 5%

market share by increasing market awareness through marketing materials,

follow through with quality check on products to be served and overall provide

good service to its customers.

5 3/4 Streat is solely owned, operated and registered under one owner

and will follow the fast food like organizational structure.

Based on the survey that the researchers conducted its customers want the "finer

things in life." Therefore making our tagline “The best tasting on-the-go dishes”

relevant to the market.

3
 Chapter 1
BUSINESS IDEA AND STRATEGIC GOALS

2.1 BUSINESS IDEA

5 ¾ Streat will sell gourmet pasta in a cone, gourmet burger and fries with

different choices of dips. It will use the collaborative idea of pasta cones from a

well-known restaurant in New York City, namely the “Spaghetti Incident” and the

idea of fondue burger of Clinton Hall; also a renowned gastronomic destination in

New York City. Pasta cones were also common on Italian festivals. It will use

classic recipes of pasta sauces. Italian foods are known or its clean and savory

taste. According to Dave Bry, an article writer of The Guardian, pasta cones

already existed during the 50’s.

Both pasta cone and burger idea are famous in New York and we plan to

introduce it in General Santos City. For people to experience New York way of

eating, where two of the most favorite comfort foods are combined together. The

business will make fresh potatoes for fries which will make it tastier, ketchup and

cheese sauce are the most suitable dips to pair with fries, but it will also have

garlic mayonnaise for those who don’t want the typical dip. Moreover, it will sell,

which will be extracted from fresh cucumbers and mixed with simple syrup and

calamansi.

Furthermore, it will provide quality service that will make the customers

satisfied. It will a provide a café like quality food but with the convenience of a

fast food. 5 3/4 Streat wants to provide on the go gourmet products without

having to go to a café or wait on a line in a fast food.

4
2.1.1 BUSINESS NAME

The name of our business is 5 3/4 Streat, read as “five and three quarts streat”. It

was inspired from the members who thought of the business which is in line with

food. There are six members but there is one that the owners consider as the

"little sister" in the group. That is why we came up with 5 3/4 Streat.We also

made the word “street” to “streat”, a combination of the words “street” and

“eat”.This is because the main concept of 5 3/4 Streat's is to eat with

convenience. The goal is to serve dishes like carbonara, bolognese pasta and

burger fondue to be eaten whenever and wherever the customer's want, that is

the whole idea of the business name of “5 3/4 Streat”.

2.1.2 LOGO AND SIGNIFICANCE

The logo serves as a marketing material to attract certain groups of market. The

round shape symbolizes community or our customers. Another round shape is

placed inside to represent the sun, while the gray curve pertains to a moon which

means our products can be eaten any time of the day. “Streat” is a combination

of “street” and “eat”. It sends a message to the people that our food can be eaten

5
whether sitting down or walking on streets. The 5 ¾ represents friendship and

the people who are the foundation of the idea of this business.

2.2 BUSINESS MODEL

5 ¾ Streat aims to be a part of the restaurant industry by running a business that

is not the usual or typical restaurant we see in General Santos. It is like an “on-

the-go” restaurant that serves classic Italian and American foods. The business

aims to revive these different classic dishes that we seldom see nowadays in this

city because most of the recipes used in cafés are already modified and added

with twists. The restaurant aims its customers to experience what a classic dish

tastes like by offering foods that taste good like those in the restaurants and

cafés but is way cheaper than them.

One thing that makes it different from its competitors is that even though the

products are made affordable, the quality will not be compromised and that the

customers will taste the difference of a classic cuisine. The business ought to

suffice their need for food by its classic recipes. 5 3/4 Streat will directly

manufacture the products to its clients. It concentrates on food business models,

specifically, the quick-serve restaurant business model. The location and the

offerings are the main concept of this model. On-the-go classic food items are

something the business serves that its competitors does not offer. This kind of

business among some small businesses in General Santos is not yet widely

evident. Convenience is also one thing that it tenders their customers, the kind of

business that compliments the kind of lifestyles our target consumers have.

6
2.3 STRATEGIC GOALS

2.3.1 VISION

5 ¾ streat envisions to be the best quality producer of classic and innovative

Italian and American cuisine in General Santos City.

2.3.2 MISSION

5 3/4 Streat’s mission is to be the customers’ favorite restaurant that serves great

tasting food, while delivering quality service and cleanliness. And to open more

job opportunities for the locals and to create a working environment which is

healthy for the employees to grow, and develop more professionals.

2.3.3 COMPANY GOALS

Specifically it aims to introduce and spread the idea of on-the-go flavorful classic

dishes in General Santos, produce quality tasting dishes, and garner 5% market

share by increasing market awareness through marketing materials, follow

through with quality check on products to be served and overall provide good

service to its customers.

7
 Chapter 3

MANAGEMENT TEAM AND ORGANIZATION

3.1 FORM OF BUSINESS

Sole Proprietorship

5 3/4 Streat is solely owned, operated and registered under one owner. The

owner is the one responsible for all the business’ debts, bills and accounts

payable. The income earned by the business is the income earned by the owner.

3.2 ORGANIZATIONAL STRUCTURE

Owner

Admin
Production

Accounting Sales and Marketing Kitchen Department

Purchasing

Figure 3.1
5 3/4 Streat’s management team is divided into two main departments. It

is headed by the owner. Under the owner are the admin department branched

out into two more offices, the accounting and sales and marketing. The

accounting office is responsible for the finances of the company and purchasing

of all the needed materials for the business and handles all accounts and makes

sure the business is profitable.

8
 While the sales and marketing is responsible for the advertising and

marketing of products; they are the ones who comes up with ideas how to raise

the sales. The production department consists of the kitchen department, its sole

purpose is to handle the whole production of all the food items.

3.2 OPERATIONAL PLAN

Schedule
Time Break Color
Type
6 am - 3 10am -
Opener
pm 11pm
9 am - 6
Mid shift 1pm - 2pm
pm
Closer 1pm -10pm 4pm - 5pm

6 am 7 am 8 am 9 am 10 am 11 am
Opener
Mid Shift
Closer

12 nn 1 pm 2 pm 3 pm 4 pm 5 pm

6 pm 7 pm 8 pm 9 pm 10 pm

Table 3.2

9
3.3 PERSONNEL PLANNING

3.3.1 MANAGEMENT

Owner

Job Description

Responsible for the entire operation of the business. Increases management’s

effectiveness by selecting, orienting, training, coaching, planning, monitoring,

communicating values, strategies, objectives, assigning accountabilities and

appraising job results.

Job Qualification

 Will have at least a bachelor's degree in business management or a related

field to supervision.

 They must be able to coordinate resources, including money, time and

people, and to make decisions by assessing different options.

 A key requirement for general managers is experience, which gives them

time to learn different facets of their companies and to develop solutions to

many types of problems.

Production

Job Description

10
Accountable for the quality control of the product also they need to record

information regarding on production, the time and the date and they are also

responsible for the success of meeting the patrons satisfaction.

Job Qualification

 Have planning and organization skills to be able run and monitor the

production process

 The ability to act decisively and solve staff or equipment-related problems

and the capacity to grasp concepts easily.

Cook

Job Description

Responsible for preparing ingredients and assembling dishes according to

restaurant recipes and specifications. Kitchens can be hot, noisy and stressful, it

requires the need to be able to work efficiently and quickly to be a successful

line cook.

Job Qualification

 Degree diploma required, two years’ experience as a cook in the restaurant

industry.

 Would be able to read and follow standardized recipes, strong knowledge of

proper food handling procedures and able to work as part of a team in a

busy kitchen atmosphere.

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Waiter

Job Description

In charge of food and beverage customer service, taking orders, delivering food,

cleaning up and setting up the table afterwards.

Job Qualification

 At least high school graduate.

 With enough experience, with skills in serving and do have good

communication skills, attentive, with sense of urgency and focus.

Sales and Marketing

Job Description

Oversees the company’s marketing campaigns both internally and externally and

plays a key part in communicating the organization’s marketing message.

Accomplishes marketing and sales objectives by planning, developing,

implementing, and evaluating advertising, merchandising, and trade promotion

programs; developing field sales action plans.

Job Qualification

Education Requirements for Marketing managers typically have a bachelor's

degree in marketing or business administration; however, some employers may

12
prefer a master's degree, in addition to extensive experience in marketing,

advertising, brand management, or sales.

3.3.2 HUMAN RESOURCES CONTROL POLICIES

ATTENDANCE AND TARDINESS

1. Three tardiness shall be considered as 1 unexcused absence.

2. 2 half-days are equivalent to 1 absent. Undertime is considered as half-day.

3. Schedules given to the employee must be strictly followed.

USE OF TECHNOLOGY POLICY

1. Employees are not allowed to use company phones for personal use.

2. Using personal phones while on duty is strictly prohibited.

3. Using of internet for personal gain is strictly prohibited.

Employees will be working 8 hours a day exclusive of 1 hour break and is given a

one-day work off. Benefits are deducted immediately from their salaries ad is

paid by the employer. Employees will automatically receive their net worth of

salary.

Sexual harassment in the workplace is against the law and will not be tolerated.

When the company determines that an allegation of sexual harassment is

credible, it will take prompt and appropriate corrective action.

Work leave, vacation leave, sick leave will also be granted to the employees.

13
3.3.2 SALARY STRUCTURE

This chart of Hungry Bowls expenses including monthly contribution of Income

Tax, SSS, Pag-Ibig and PHILHEALTH.

Table 3.3.2

With
Per Monthly
Workers Daily SSS Pag- Ibig PhilHealth Holding
Hour Salary
Tax
General 62.5 500 436 100 150 971.13 10,342.8
Manager/ 7
Owner
Head Chef 56.25 450 399.70 100 125 743.39 9,431.91

Sous Chef 50 400 363.30 100 112.50 561.91 8,462.29

Head 43.75 350 308.80 100 100 391.96 7,499.24

Waiter
Server 42.5 340 308.80 100 100 355.96 7,295.24

Sales and 55 440 381.50 100 125 701.29 9,252.13

Marketing
Supervisor

3.4 MANAGEMENT TEAM

Key Person Details
Name Shem Ann Jaco

Title General Manager/ Owner

Role Accountable for the entire operation of the

business
Expected Salary 500 per day/ 10,342.87 monthly

Experience
 Works at US particularly in South
Carolina and she is an expo.
 Graduated at Joji Ilagan
International School.

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 Key Person Details
Name Prince Baja

Title Head Chef

Role Assigned to run the kitchen.

Expected Salary 450 per day/9,431.91monthly

Experience
 He is the head of pastry at the
hotel in cebu.

Key Person Details

Name Oliver John SIa

Title Sous Chef

Role Assigned for assisting the kitchen workers

and take in charge if the head chef is nit
around.
Expected Salary 400 per day/8,462.29monthly

Experience
 He had an experience working at
US as a kitchen worker
particularly fryer.

Key Person Details

Name Crisitne Gervacio

Title Head Waiter

Role Take in charge of the front of house

particularly in entertaining the guest.
Expected Salary 350 per day/7,499.24 monthly

15
Experience
 She is one of the servers at Taco
Shack South Carolina.

Key Person Details

Name Kenth Clark Delfin

Title Sales and Marketing Supervisor

Role In charge of what the business needed.

Expected Salary 350 per day/7,499.24 monthly

Experience
 She is one of the head waiter at
Taco Shack South Carolina.

3.5 PREOPERATING ACTIVITIES

53/4 Streat listed down the following activities to be undertaken before they can
operate their business.
1. Registering the business - 2 weeks
2. Preparing the business plan - 12 weeks
3. Contacting equipment suppliers - 1 week
4. Renovating - 1 week
5. Hiring labour - 1 week
6. Installing the equipment - 3 days
7. Purchasing raw materials - 1 day
8. Trial production - 1 week

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 TABLE 3.5.1 Gantt Chart

3.6 PREOPERATING EXPENSES

Rent 15,000
Registration Cost 7,194
-DTI 2,000
-Barangay Permit 500
-Mayors Permit 4,694

Sample Production 2,000

Bills/Gas 3,000
_______
Total Pre-operating Expenses 27,194 Php

Equipment Price

Refrigerator 18,100 PHP

Oven with Burner 32,863 PHP

Working table 4,000 PHP

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Glass ware 1,200 PHP

Kitchen Tools 6,380 PHP

Tableware 4,480 PHP

Office Table 1,900 PHP

Restaurant Table 2,400 PHP

Office Chair 185 PHP

Restaurant Chair 3,780 PHP

Computer Desktop 14,430 PHP

Printer 4,798 PHP

Speaker 2,255 PHP

Aircon (Split Type) 21,796 PHP

Exhaust Fan 1,020 PHP

Fire Extinguisher 1,499.75 PHP

Total Expenses 121,086.75 PHP

Office Supplies Price

Papers 1,000 PHP
Pens 500 PHP
Renovation Cost 30,000 PHP
Total office supplies 31,500 PHP

3.7 ADMINISTRATIVE EXPENSES

Salary 52,283.68 PHP
Office Supplies 31.500 PHP
Communication 3,000 PHP
_____________________
Total 86,783.68 PHP

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 Chapter 4
PRODUCTS AND SERVICES

4.1 PRODUCT FEATURES

4.1.1 UNIQUE SELLING PROPOSITIONS
“We make the most “The best tasting on-the-go dishes”.” As trained Culinary

students, 5 3/4 Streat’s chefs and owners maintain high quality of products by

following standards set and is strictly maintained through time.

 The packaging of the product provides convenience for it is shaped like a

cone, which is not yet used here in General Santos, this will justify our unique

selling proposition that it is convenient to eat.

 It is also served in five minutes or less to deliver excellent customer service

without compromising the quality of the product due to 5 3/4 Streat’s set

standards.

 The business will not compromise quality and excellent product or service

despite being affordable. It ought to maintain a lower price for the products

offered to satiate customers’ budget while still giving its customers the best

value for their money.

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4.2 PRODUCT DESCRIPTION

Figure 4.1
Pasta Agiato made of Rigatoni pasta dressed with Carbonara Sauce and topped

with diced bacon

Figure 4.2
One of the pasta cones that is made of Rigatoni pasta and dressed with

Bolognese Sauce.

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 Figure 4.3
Burfries comprised of seasoned burger patty topped with fresh tomato, lettuce,

cheese, mustard, caramelized onion. The top portion of the bun has a small hole

where the fries are placed with the chosen dip.

Figure 4.4
Burfries dips includes:

 Ketchup

 Garlic Mayonnaise

 Cheese Sauce

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 Figure 4.5
Iced cucumber is made of freshly grate cucumber mix with simple syrup and
calamansi that is served cold good for the summerlike weather.

4.3 PRODUCT PORTFOLIO AND PRODUCT PLAN

5 ¾ Streat will be offering products that people are familiar with. This is known as

comfort foods. It will be an incorporation of “cafe-quality” menu and “fast food

type” of service. The unique packaging, quality ingredients, and one of a kind

product in General Santos City, will set it apart from other restaurants. It will be

the first to introduce products and services that will bring pasta and burger to a

whole other level. It will also be the only restaurant to offer a New York like

experience.

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 Figure 4.6
The star based on 5 3/4 Streat’s BCG matrix is the classic Carbonara

because it operates in high growth industries and maintain high market share. It

can generate high sales in the market. For the question mark, 5 3/4 Streat’s

burfries, due to its potential to gain market share and become a star, which would

later become cash cow. It has a high cost but is also profitable. It is new to the

market.

Bolognese Pasta is the company’s cash cow because it has high market

share and high market growth. Given that it will be the best seller amongst the

other products. And there are no dogs because there is no product that would

23
hold low market share compared to competitors and operate in a slowly growing

market. Our product are made for the target market that we have.

24
 Chapter 5
ET AND COMPETITION

5.1 MARKET
5.1.1 DESCRIPTION OF RELEVANT MARKET
General Santos as of 2015, showed a significant increase in new

businesses opening and booming up. This also means that it offers more jobs for

the people of General Santos and this is a result of people spending not just only

for their needs but also to try new products or services that were newly offered in

this city. Statistics also showed that the average annual salary here in General

Santos is increasing through the years due to the rising economy of this city.

People who have less time and doesn’t have much of the means for

preparing their own meal and choose to buy their food outside, therefore 5 3/4

Streat will offer them with the best tasting on-the-go dishes for an affordable

price.Such individuals rise in number here in General Santos because of the

students, employees and tourists coming from other provinces or cities. These

types of people tend to spend more on buying foods that will suit their time

instead of consuming it all up. To sum up its target market, it is mostly composed

of ages 18-29, which means that these people are eager to try and explore new

things and products that will best suit their needs and wants.

Some cafes and restaurants are also offering the products that we offer

but the unique thing about 5 3/4 Streat is that it offers a budget-friendly meal.

Although Generals are able to earn more because of the increasing rate in their

annual salary, they still try to spend less or budget their money when it comes to

purchasing but they are also keen and very particular with quality.

25
5.1.2 MARKET SEGMENTATION
The market is segmented using appropriate segmentation variables such as

geographic, demographic, economic, psychographics.

Geographic General Santos City

Demographic 18-29 Years Old
Economic Middle to Higher Income Bracket
Psychographics Experiencers and Innovators

Age Group Both Sexes Male Female

GENERAL SANTOS CITY

(DADIANGAS)

18-24 122,837 60,994 61,843

25-30 114,350 30,388 30,521

30 and above 230,821 115,973 114,848

According to General Santos City Statistical table

(https://psa.gov.ph/population-and-housing) 30 % population of General

Santos are 18 to 29 yrs old.

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 VALS Type Summary

Maker

Survivor

Striver

Believer

Thinker

Innovator

Achiever

Experiencer

0 10 20 30 40 50 60

Series 1

Figure 5.1

The survey results showed that most of the consumers are Experiencers

and Innovators who are motivated by self-expression according to VALS type

standards. They have a lot of energy, which they pour into physical exercise and

social activities. They are avid consumers, spending heavily on clothing, fast-

foods, music, and other youthful favorites, with particular emphasis on new

products and services, are on the leading edge of change, have the highest

incomes, and such high self-esteem and abundant resources that they can

indulge in any or all self-orientations. Image is important to them as an

expression of taste, independence, and character. Their consumer choices are

directed toward the "finer things in life."

27
 VALS Type Results by Age Group
16
14
12
10
8
6
4
2
0
18-24 25-29 30-above

Striver/Survivor Eperiencer/Maker Innovator/Experiencer Achiever/Innovator

Striver/Achiever Thinker/Achiever Believer/Striver Achiever/Believer
Achiever/Maker Thinker/Believer Striver/Thinker Striver/Experiencer

Figure 5.2

Figure 5.2 shows the distribution of VALS Type Results by age group

based on their degree to which they are innovative and have resources such

as income, education, self-confidence, intelligence, leadership skills, and energy.

Specifically they are categorized according to their

knowledge and principles which are motivated primarily by ideals.

These consumers include groups called Thinkers and Believers.

Meanwhile, consumers driven by demonstrating success to their peers are

motivated primarily by achievement. These consumers include groups referred to

as Achievers and Strivers. And lastly, consumers driven by a desire

for social or physical activity, variety, and risk taking are motivated primarily

by self-expression. These consumers include the groups known as Experiencers

and Makers.

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 5.2 PORTER’S FIVE FORCES

THREAT OF NEW ENTRY

High because it is easy to
put up for this type of
business.

BARGAINING POWER OF BUYER POWER

SUPPLIER RIVALRY High because of the
Low because there is a High because there’s a ease of changing from
wide range of available lot of existing competitor. one cafe to another.

supplies.

THREAT OF SUBSTITUTION
High because there is a lot of
substitute/competitor that
offers pastas and burgers.

Threat Of New Entry

because it is easy to put up for this type of business, it is evident because

there is a lot of businessmen who are putting a food business like cafes and

eatery.

Rivalry

High because the fast restaurant industry has many firms of various sizes.

5 3/4 streat customers experience low switching costs, which means that they ca

n easily transfer to other cafes because there are a lot of existing competitors.

29
Buyer Power

High because of the ease of changing from one cafe to another,

customers can easily impose their demands on the business. In relation with

market saturation, consumers can choose from many cafes other than 5 3/4

Streat. Based on this element of the five forces analysis, 5 3/4 sSst develop

strategies to increase costumers loyalty.

Bargaining Power Of Supplier

Low because there is a wide range of available supplies even if the price

of the suppliers will increase, it wouldn’t affect the business due to low demands

of the bargaining power of buyers.

Threat Of Substitution

High because it is easy to put up a business in General Santos, there are

a lot of substitutes or competitors that offer pastas and burgers, such as cafes

and fast food chains.

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5.3 MARKET POSITION

Market Position

12% Jollibee
5%
Mc Donalds
24% 59% 5 3/4 Streat
Coy's Café

Figure 5.3.1
The graph shows that Jollibee has a large position in the market or in othe

r words, it covers high number of consumers which is 59%. While the McDonald’

s has 24% market position and Coy’s Cafe covers 12% of the market. 5 3/4 Strea

t as a new business here in General Santos already covers 5% .

5.4 SWOT ANALYSIS

Strength

 5 ¾ streat has a one of a kind packaging and is the only restaurant which

sells pasta in cone in General Santos City.

 5 ¾ streat has a product such as the burfries. 5 ¾ streat is the only one

that offers it in General santos City.

 5 ¾ streat has skilled personnel which have worked and were exposed in

different restaurants and hotels. Having skilled personnel results to quality

products.

31
  5 ¾ streat location is located near schools and is with in the city. People

can easily go to the location and will not have difficulties in locating the

restaurant.

Weakness

 Bad weather

 High start up cost and other fees for starting up a business.

 Changing market taste.

Opportunities

 Fast pace lifestyle of people makes opportunity to gain more costumers

like them. It creates more opportunities for us to innovate other product

and services for busy people like them.

 The improving economy in the city opens 5 ¾ Streat opportunity to

increase its sales.

 The pleasant weather and healthy agriculture helps with the quality

produce that we use.

Threats

 Other cafes and fast food that has almost the same product as 5 ¾ streat.

-Coys Café

-Jollibee

-McDonalds

 New restaurants and their innovative products and services.

 Seasonal and weather effects

32
 Chapter 6
MARKETING AND SALES

6.1 MARKETING

6.1.1 MARKETING STRATEGY

As a marketing strategy the business will make use of the AIDA model.

AIDA is an acronym that stands for Attention, Interest, Desire and Action.

The AIDA model is one of the longest serving models used in advertising, having

been developed in the late nineteenth century. Since its first appearance in the

marketing and advertising literature, the model has been modified and expanded

to account for the advent of new advertising media and communications

platforms.

Traditional advertising and social media will raise Awareness while free

tasting will entice Interest and desire that will lead to Action.

33
 Figure 6.1.1
5 ¾ Streat Advertising

34
 Figure 6.1.2
5 ¾ Streat Flyers

35
 Figure 6.1.3
Social Media Page

Its presence on these platforms not only allows to engage in

conversations with consumers, but also serves as an outlet to drive sales through
deals and promotions.

6.1.2 MARKETING PLAN

Based on the AIDA model the following marketing strategies will be used
accordingly. Below is the summary of the said strategies and their estimated
cost.

Activities Date Cost

START END
Advertising 10/16/17 11/16/17 350 php

Free Taste 11/06/17 11/06/17 2000 php

* 12 50-gram pieces from each
product
* Mini paper plates and plastic
forks

TOTAL COST: 2,350 php

36
6.1.3 PRICING STRATEGY
forecast market share 5%
All Ages 594,446
15-29(age bracket) 176,278
5% market 8,813.90
per month 2,203.48
in a day 91.81
per product 22.95
23 pieces
Table 6.1
Table 6.1 shows the forecasted sales per product in a day. Specifically each
product will have an estimate of 23 quantity sold in a day.

Quantity 60% Profit

Product Cost Unit Cost Final Cost
Produced Margin
Burfries w/ dip 1,953 23 84.8934783 50.936087 135.829565
Carbonara 1,589 23 69.0956522 41.457391 110.553043
Bolognese 903 23 39.2391304 23.543478 62.7826087
Ice Cucumber 119 23 5.17391304 3.1043478 8.27826087
Table 6.2
The final cost of 5 ¾ product are shown in table 6.2 inclusive of raw materials
plus the 60% profit margin.

37
6.2 SALES
6.2.1 SALES PLAN
Forecast for the first year of operation until the next four years.
Sales Forecast
Q1 Q2 Q3 Q4 Y1 Y2 Y3 Y4
Unit Sales
Carbonara 6,624 7,200 8,064 9,792 11,520 13,824 16,704 20,160
Bolognese 6,624 7,200 8,064 9,792 11,520 13,824 16,704 20,160
Burfries 6,624 7,200 8,064 9,792 11,520 13,824 16,704 20,160
Ice Cucumber 6,624 7,200 8,064 9,792 11,520 13,824 16,704 20,160
Unit Prices
Carbonara 136 136 136 136 136 136 136 136
Bolognese 111 111 111 111 111 111 111 111
Burfries 63 63 63 63 63 63 63 63
Ice Cucumber 8 8 8 8 8 8 8 8
Sales
Carbonara 900864 979200 1096704 1331712 1566720 1880064 2271744 2741760
Bolognese 735264 799200 895104 1086912 1278720 1534464 1854144 2237760
Burfries 417312 453600 508032 616896 725760 870912 1052352 1270080
Ice Cucumber 52992 57600 64512 78336 92160 110592 133632 161280
TOTAL 2106432 2289600 2564352 3113856 3663360 4396032 5311872 6410880

38
 Chapter 7
PRODUCTION PLAN

7.1 PRODUCTION PROCESS

Purchasing

Receiving

Quality Assurance

Warehousing

Mise en Place

Cooking pastas,
sauces in bulk Cooking Burfries

Portioning

Reheating

Serving

(dine-in)

Packing

(Take-out)

39
Production Steps
First step is purchasing of ingredients for the week then receiving of the

purchased ingredients in the store. Third step is assuring the quality of the

ingredients bought. Fourth step is the inventory of the ingredients purchased

then mise en place of the ingredients. Mise en place involves cutting vegetables

and meats and measuring ingredient. Sixth step is cooking in bulk or cooking

pastas, sauces separately in bulk. Then we have to portion the cooked pasta

and sauces, and meat based on the standard weight by 5 3/4 Streat per

serving.Cooking of Burfries by the order. Eighth step is reheating the sauces

when customers order. And lastly, serving for dine-in and packaging for take-out.

7.2 FIXED ASSETS

Machines, Tools and Quantity Specifications Purpose

Fixtures

Refrigerator 1 Two-door Storage of

ingredients and
food (both raw
and cooked)
Gas Range 1 Stainless steel, 5- For cooking the
burner cooktop pasta, sauces and
burger
Sauce Pot 3 1 foot in length Where the pastas
and 15 inches in and sauces are
diameter, can put while cooking
accumulate up to
10 liters of liquid
Frying Pan 4 14 inches in Used for reheating
diameter, non- pasta sauces

40
 stick, flat-
bottomed
Ladle 4 12 inches in Used with sauce
length, stainless pots while cooking
steel in bulk
Strainer 2 Stainless steel Straining the
water from the
cooked pasta
Chopping Board 3 Rectangular in Where chopped
shape, red for raw items are sliced
meat, white for and placed
cooked food and
green for
vegetables
Restaurant Table 5 Rectangular Used by
wooden table customers for
eating
Water Jug 2 Can accumulate Storage of 5 3/4
and store up to 5 Streat’s
gallons of liquid beverages
Gastronorms 6 Big rectangular Storage of cooked
gastronorms, sauces, pastas,
made of meats, prepared
plasticware vegetables

41
 Spatula 6 Rubberized, Aid in reheating
suitable for the the sauces
non-stick pan, 1
foot in length
Exhaust 1 Square type To Remove the
Single Exhaust odor and smoke
from the kitchen
and restaurant
Office table 1 Wooden For our marketing
rectangular office and sales office
table
Office chair 1 Monoblock chair Use with office
table

Restaurant Chair 20 Monoblock chair Use by our

customers

Computer Desktop 1 Digital age digi-pc Use by staff for

entry AMD A4 marketing and
6300 computer inventory
package
Printer 1 Canon Pixma Use for printing
iP2870S Color important
inkjet printer documents
Speaker 1 Creative SBS- Use in the
A120 Multimedia restaurant for
speaker entertainment
Air conditioner 1 Carrier FP- Use in the
53csH012308 restaurant for air
1.5hp wall mount cooling
split type air
conditioner
Fire extinguisher 2 Carbon Dioxide For emergency
fire extinguisher use

42
 7.3 LIFE OF FIXED ASSETS
Fixed Assets Life Depreciation
(annual)
Kitchen Equipment 5 Years 13,308.70php
Office Equipment 5 Years 4,262.60php
Restaurant Equipment 7Years 7,485.29php

7.4 Maintenance and Repair

Equipment Repair Cost
(per month)
Refrigerator 1,500 php
Oven and burner 2,000 php
Tables and Chairs 1,700 php
Air Conditioner 2,500 php
Computer and Printer 2,500 php
Total cost 10,200 php

7.5 Sources of Equipments

Equipment Sources Quantity Unit Price Total

Refrigerator Robinsons Appliances 1 ₱18, 100.00 ₱18,100.00

Oven with Robinsons Appliances 1 ₱32, 863.00 ₱32, 863.00

Burner
Kitchen Tools Gaisano Mall 23 ₱6,380.00
Department Store
Kitchen Tools Section
Tableware Gaisano Mall 120 ₱4,480.00
Department Store
Tableware Section
Working table Jen’s Steel 1 ₱4,000.00 ₱4,000.00

Office Table Gaisano Mall 1 ₱1,900.00 ₱1,900.00

Department Store
Furniture Section
Restaurant Gaisano Mall 6 ₱2,400.00 ₱14,400.00
Table Department Store
Furniture Section

43
Office Chair Gaisano Mall 1 ₱185.00 ₱185.00
Department Store
Furniture Section

Restaurant Gaisano Mall 20 ₱189.00 ₱3,780.00

Chair Department Store
Furniture Section

Computer Gaisano Mall of 1 ₱14,430.00 ₱14,430.00

Desktop Gensan

Printer Gaisano Mall of 1 ₱4,798.00 ₱4,798.00

Gensan

Speaker Gaisano Mall of 1 ₱2,255.00 ₱2,255.00

Gensan

Aircon (Split Gaisano Mall of 1 ₱21,796.00 ₱21,796.00

Type) Gensan

Exhaust Fan Gaisano Mall of 1 ₱1,020.00 ₱1,020.00

Gensan

Fire Gaisano Mall of 2 ₱1,499.75 ₱2,999.5

Extinguisher Gensan

POS Cash EMCOR 1 ₱7,167.00 ₱7,167.00

Register

Kitchen Tools
Equipment Source Quantity Unit Price Total
Sauce Pot GMALL 3 ₱735.00 ₱2,205.00
Frying Pan w/ GMALL 1 ₱510.00 ₱510.00
Laddle
Strainer GMALL 3 ₱85.00 ₱255.00
Chopping GMALL 3 ₱255.00 ₱765.00
Board
Beverage GMALL 1 ₱895.00 ₱895.00
Dispenser
Gastronorm GMALL 2 ₱395.00 ₱790.00
(Big)

44
 Mixing Bowl GMALL 4 ₱180.00 ₱720.00
Small Stainless GMALL 6 ₱40.00 ₱240.00
Bowl

Tableware
Equipment Source Quantity Unit Price Total Price
Plate GMALL 20 ₱65.00 ₱1,950.00
Glassware GMALL 20 ₱40.00 ₱1,200.00
Spoon GMALL 12 ₱126.00 (6pcs) ₱630.00
Fork GMALL 12 ₱140.00 (6pcs) ₱700.00

7.6 PLANNED CAPACITY

Sales Forecast
Q1 Q2 Q3 Q4 Y1 Y2 Y3 Y4
Unit Sales
Carbonara 6,624 7,200 8,064 9,792 11,520 13,824 16,704 20,160
Bolognese 6,624 7,200 8,064 9,792 11,520 13,824 16,704 20,160
Burfries 6,624 7,200 8,064 9,792 11,520 13,824 16,704 20,160
Ice Cucumber 6,624 7,200 8,064 9,792 11,520 13,824 16,704 20,160

7.7 PLANT LOCATION AND LAYOUT

Figure 7.7.1

45
Figure 7.7.2 Exterior

Figure 7.7.3 Interior

46
 7.8 RAW MATERIALS NEEDED
RECIPE CARBONARA BOLOGNESE BURFRIES DIPS ICED
CUCMBER
INGREDIENTS EGGS GROUND BEEF GROUND BEEF MAYONAISE CUCUMBER
CREAM RED WINE SALT GARLIC WATER
BACON CARROTS PEPPER VEGETABLE SUGAR
OIL
PARMESAN CELERY ONION KETCHUP CALAMANSI
CHEESE
SALT ONION BALSAMIC CHEESE
VINEGAR
PEPPER TOMATO CHEESE
SAUCE
PASTA SALT LETTUCE
BROTH PEPPER BURGER BUN
ONION KNORR CUBES TOMATO
PASTA POTATO
VEGETABLE MUSTARD
OIL
VEGETABLE
OIL

7.9 COST OF RAW MATERIALS

Raw Materials Unit Price of Quantity Needed Total Cost
Materials
A. Direct
1. Carbonara
Eggs 55.95 Php 1 tray 671.4 Php
Cream 39.00 Php 250 pcs 9,750 Php
Bacon 549.00 Php 20 packs 10,880 Php
Parmesan Cheese 226.90 Php 3 bottles 680.7 Php
Salt 8.00 Php 2 packs 18.00 Php
Pasta 49.55 Php 60 packs 2,940. Php
White Onion 46.00 Php 5 kg 230.00 Php

2. Bolognese
Ground Beef
195.50 Php 20 kg 3,900 Php
Red Wine
181.00 Php 10 bottles 1,810 Php
Carrots
69.00 Php 5 kg 345.00 Php

47
Celery 175.00 Php 5 kg 875.00 Php
Onion 119.00 Php 7 kg 833.00 Php
Tomato Sauce 57.80 Php 30 kg 1,710 Php
Pepper 597.50 Php 1 kg 597.50 Php
Vegetable Oil 1,344.05 Php 1 Gallon 1,344.05 Php
254.90 Php 1 pack 254.90 Php
Knorr Cubes

3. Burfries 161.55 Php 5L 807.75 Php

Balsamic Vinegar 631.40 Php 2 Packs 1,262.8 Php
Cheese 190.00 Php 7 kg 1,330 Php
Lettuce 28.00 Php 115 packs 3,220 Php
Burger Bun 44.00 Php 10 kg 440.00 Php
Tomato 65.00 Php 10 kg 650 Php
Potato

4. Dips 317.95 Php 1 Gallon 317.95 Php

Mayonaise 91.00 Php 1 kg 455.00 Php
Garlic 73.20 Php 4 kg 292.8 Php
Ketchup 146.15 Php 2 packs 292.3 Php
Cheese

5. Ice Cucumber 39.00 Php 20 kg 780.00 Php

Cucumber
47.00 Php 20 kg 940.00 Php
Sugar
57.00 Php 7 kg 399.00 Php
Calamansi
Total Material Cost 48,643.15 Php

B. Indirect
Packaging 4 Php 1,400 pcs 5,600 Php
Packaging (Drinks) 0.54 Php 700 pcs 378.00 Php

Total Material Cost 5,978 Php

48
7.10 RAW MATERIALS AVAILABILITY
3 Sources:
 Robinsons Place Gensan
 Gaisano Mall of Gensan
 Jen’s Steel

5 3/4 streat will get the equipment such as the Refrigerator and Oven with

Burner at Robinsons Appliances at Robinsons Place Gensan as it is less

expensive there but still quality wise. The establishment will get the tableware,

kitchen tools, office equipment and restaurant equipment from Gaisano Mall of

Gensan as there’s a wide range of choices for 5 3/4 streat.

It is also much affordable to purchase there. The working table would be

made by Jen’s Steel as the measurement of the Restaurants working table

would depend on the size of its kitchen.

7.10.1 DIRECT LABOR/ INDIRECT LABOR

Direct Labor

Jobtitle of Qualification Experience

Worker

1. Manager Should have at least a bachelor’s Worked at a 5 star hotel in

degree in business management or a manila at Dusit Thani
related field to supervision. belonging in the
foodservice for 3 months.

49
 Should have a degree diploma with Worked at a hotel complex
2 Head Waiter enough experience, with skills in in Cebu City the Crown
serving and do have a good Regency Hotel and
communication skills, attentive, with Towers.
sense of urgency and focus.

3.. Server At least high school graduate with
enough experience, with skills in
serving and do have a good
communication skills, attentive, with
sense of urgency and focus.
Worked at Italianni’s Bistro
Restaurant as part of the
Front of the House in line
with customer service.

4. Sales and Should have a bachelor's degree Worked at Wisconsin, US

Marketing in marketing or business state on Restaurant Sales
Supervisor administration; or may prefer a and Marketing.
master's degree, in addition to
extensive experience in marketing,
advertising, brand management,
or sales.

Indirect Labor

Jobtitle of Experience
Worker Qualification

Required a bachelor’s degree in Worked at US particularly

2. Head Chef culinary arts, have strong skills in in the state of New York as
cooking, two years experienced in the one of the foodservice
food industry. Would be able to read personnel.
and follow standardized recipes,
strong knowledge of proper food
handling procedures and able to work
as part of a team in a busy kitchen
atmosphere and would be able to lead
the production staffs.

50
 Required a degree diploma, would be Worked at one of the
3. Sous Chef able to read and follow standardized luxurious 4 star hotel
recipes, strong knowledge of proper Astoria in Boracay as a
food handling procedures and able to line cook
work as part of a team in a busy
kitchen atmosphere.

Direct Labor Indirect Labor

Head Chef Manager
Sous Chef Head Waiter
Server
Sales and Marketing Supervisor

7.11 COST OF LABOR

Name Hours Salary Total

hr day

Direct

Head Chef 8hr 56.25 450 9,431.91

Sous Chef 8hr 50 400 8,462.29

Total for direct 17,894.20

labor :

Indirect hr day Total

Waiter 8hr 42.5 340 7,295.24

Sales and marketing 8hr 55 440 9,252.13

Manager 8hr 62.5 500 10,342.87

Head waiter 8hr 43.75 350 7,499.24

51
 Total for indirect 34,389.48
labor:

7.12 OVERHEAD EXPENSE

Overhead Per Month
Salary (head waiter, waiter) 34,389.48 php
Employee Benefits 2,420.34 php
Rent 15,000 php
Depreciation 26,676 php
Utilities 8,500 php
Total Overhead 86,985.82 php

7.13 PRODUCTION COST

PLANNED
PRODUCT DIRECT MATERIALS
PRODUCTION
Per Unit Total
Carbonara 23 69.09565217 1589.2
Bolognese 23 39.23913043 902.5
1952.5
Burfries 23 84.89347826
5
Iced Cucumber 23 5.173913043 119

DIRECT LABOR OVERHEAD PRODUCTION

Per Unit Total Per Unit Total Per Unit Total

4.891304348 112.5 3781.992174 86985.82 3847.753043 88498.32
4.891304348 112.5 3781.992174 86985.82 3847.753043 88498.32
4.891304348 112.5 3781.992174 86985.82 3847.753043 88498.32
4.891304348 112.5 3781.992174 86985.82 3847.753043 88498.32

52
 Chapter 8
FINANCIAL PLAN

8.1 CAPITAL REQUIREMENT (PROJECT COST)

8.1.1 FIXED ASSETS

Kitchen Equipment 66,543.50

Restaurant Equipment 52,397
Office Equipment 21,313

Total Fixed Assests 140,253.50 140,253.50

8.1.2 PRE-OPERATING EXPENSES

Rent 15,000
Registration Cost 7,194
Sample Production 2,000
Electricity/Gas 3,000
_________
Total 27,194 33,800

8.1.3 WORK IN CAPITAL

Raw Materials 48,643.15

Finished Goods in 12 mos. 24,321.58
Work-in-process 425
Goods Distributed 24,321.58
Cash Needed for operation 670,794.62
TOTAL WORK IN CAPITAL 768,505.92 768,505.92
LC 935,953.42

53
8.2 FINANCING PLAN AND LOAN REQUIREMENT

Financing Plan and Loan Requirement

Particular Owner's Equity Loan Total
Fixed Capital
Kitchen Equipment 66,543.50 - 66,544
Restaurant Equipment 52,397 - 52,397
Office Equipment 21,313 - 21,313
Pre-Operating Equipment 27,194 - 27,194
Working Capital 768,505.92 - 768,505.92
TOTAL 935,953.42 935,953.42
PERCENT 100% 100%

8.3 PROFIT AND LOSS STATEMENT (1 YEAR)

Sales 10,565,280
Less
Raw Materials 583,717.8
Labour 627,404.12
Overhead 1,043,829.84
2,254,951.8
___________
Gross Profit 8, 310,328.2

Less
Marketing and Administration 1,049,203.56
Operating Profit 7,261,124.64
___________
NET PROFIT BEFORE TAX 7,261,124.64

54
8.4 PROJECTED INCOME STATEMENT

PROJECTED INCOME STATEMENTS

Year 1 2 3 4 5
Sales Target 10,565,280 2,185,201 2,525,120 2,525,120 2,525,120
Capacity 80% 90% 100% 100% 100%
Sales 10,565,280 11,988,315 13,320,050 13,320,050 13,320,050
Less
Raw Materials 583,717,8 656,682.53 729,647 729,647 729,647
Labour 627,404.16 627,404.16 627,404.16 627,404.16 627,404.16
Overheads 1,043,829.84 1,043,829.84 1,043,829.84 1,043,829.84 1,043,829.84
MANUFATURING 2,254,951.18 9,660,398.47 10,919,469 10,919,469 10,919,469
GROSS PROFIT 8,310,328.82 9,660,398.47 10,919,469 10,919,469 10,919,469
LESS: MKTG & ADM COST 1,049,203.56 1,149,215 1,005,122 1,005,122 1,005,122
NET PROFIT BEFORE TAX 7,261,125.26 8,511,183.60 9,914,347 9,914,347 9,914,347
ACCUMULATED PROFIT 7,261,125.26 8,511,183.60 9,914,347 9,914,347 9,914,347

8.5 CASH FLOW STATEMENT

12,401,949.47
PROJECTED CASH FLOW STATEMENTS
YEAR
Pre-operating Period
Particulars 1 2 3 4 5

CASH INFLOW Equity 2,648,190.27 5,282,640 5,442,470 6,603,300 6,603,300 6,603,300

Total Cash Inflow 2,648,190.27

YEAR
CASH INFLOW
1 2 3 4 5
Pre-operating Expenses 27,194 -
Purchased of Fixed Assets 140,253.50 -
Direct Materials - 583,717.80 656,682.85 729,697 729,697 729,697
Direct Labour - 627,404.16 627,404.16 627,404.16 627,404.16 627,404.16
Factory/Operational Overhead - 1,043,829.84 1,043,829.84 1,043,829.84 1,043,829.84 1,043,829.84
Inventory of Raw Materials - 48,643.15 - - - -
Inventory of work-in-process - 425 - - - -
Inventory of finished Goods - 880,440 - - - -
Operating Expenses - 1,049,203.56 1,049,203.56 1,049,203.56 1,049,203.56 1,049,203.56
Total Cash Outflow 167,447.50 4,233,663.51 3,377,120.11 3,450,084.81 3,450,084.81 3,450,084.81
NET CASH INFLOW (OUTFLOW) 2,480,792.77 1,048,976.49 2,565,849.89 3,153,215.19 3,153,215.19 3,153,215.19
CASH BALANCE BEGINNING - 2,480,742.71 3,529,719.20 6,095,569.09 9,248,784.28 12,401,949.47
CASH BALANCE ENDING 2,480,742.71 3,529,719.20 6,095,569.09 9,248,784.28 12,401,949.47 15,555,214.66

55
8.6 BALANCE SHEET
Year
Particulars Pre-Operating Periond
1 2 3 4 5
ASSETS
Current Assets 2,480,743 3,529,719.20 6,095,569.09 9,248,784.28 12,401,949.47 15,555,214.66
Cash 48,643.15 48,643.15 48,643.15 48,643.15 48,643.15
Raw Materials Inventory 425 425 425 425 425
Work-In-Process Inventory 880,440 880,440 880,440 880,440 880,440
Finished Goods Inventory

Total Current Assets 2,480,743 4,459,227.35 7,025,077.24 10,178,292.43 13,331,457.62 16,484,722.81

Fixed Assets
Kitchen Equipment 66,543.50 13,308.70 26,617.40 39,926.10 53,234.80 66,543.50
Office Equipment 52,397.00 7,485.29 14,970.57 22,455.86 29,941.14 37,426.43
Restaurant Equipment 21,313.00 4,262.60 8,525.20 12,787.80 17,050.40 21,313.00
Total Fixed Assets 140,253.50
Less: Accumulated Depreciation 25,056.59 50,113.17 75,169.76 100,226.34 125,282.93
Net fixed assets 115,196.91 90,140.33 65,083.74 40,027.16 14,970.57
Other Assets
Pre-Operating Expenses 27,194
Total Assets

LIABILITIES AND EQUITY

Surname, Capital 2648190.25 2648190.25 2648190.25 2648190.25 2648190.25 2648190.25

TOTAL LIABILITIES AND EQUITY 2648190.25 4,459,227.35 7,025,077.24 10,178,292.43 13,331,457.62 16,484,722.81

8.7 BREAK-EVEN POINT

Break-even point LC
Annual Sales 10,565,280
Annual Fixed Costs
Owners Salary 500
Other overheads 86,985.82
Marketing and Administrative Cost 89,134
176619.5 176619.5
Annual Variable Costs
Raw Materials 48,643.15
Direct Labor 17,894.20
66,537.35 66,537.35

56
8.8 BREAK-EVEN POINT (ANNUAL SALES)

(Annual Sales) 10565280 x (Annual Fixed Cost) 176619.5

__________________________________________________= 177738.85
(Annual Sales) 10565280 x (Annual Variable Cost) 66537.35

BREAK-EVEN POINT (PERCENTAGE)

(Annual Fixed Cost) 176619.5 x 100
________________________________________________= 1.68%
(Annual Sales) 10565280 - (Annual Variable Cost) 66537.35

8.9 RETURN ON INVESTMENT

Annual Net Profit 7261125.26

Total Capital Requirement 2648190.27
2.74191977
274.19%

57