By: Mary Chienny Anne Hocosol Mari Sapinoso Federico Cancino Jr.

EXECUTIVE SUMMARY

TYPE OF BUSINESS
Name of the Enterprise The business will be named as The Rice Bistro, wherein the rice is the main ingredient of our product. The word bistro is a French word for a small restaurant which sells low priced food.

Location The business will be placed along Gen. Emilio Aguinaldo Highway near Land Transportation Office in Palico, City of Imus Cavite. We choose this location because the passersby, the students and the residents around the area are a big market for our product. The place is also surrounded by many establishments where we can reach more customers and wide market coverage. The students from Gen. Emilio Aguinaldo High School, DataCom and Cavite State University-Imus will be a big market for our product wherein they can truly afford to buy a satisfying meal thru dine in and take out.

The Product The Rice Bistro will sell mixed and topped from meat, seafood and vegetables. The Special Fried Rice will be positioned as our main product wherein the low budget customers will have the capacity to buy it and can be truly satisfied. Our product offerings will be divided into four other categories, namely: Veggie Topped Rice, Seafood Topped Rice, Breakfast Meals and Meat Topped Rice. The Proponents The Rice Bistro will be a partnership between Mary Chienny Anne M. Hocosol, Mari Sapinoso and Ferederico Cancino Jr. The partners will take charge of all the transactions and responsibilities of the enterprise. The partners will be handling the financing, marketing and the operation of the business.

MANAGEMENT, MARKETING AND FINANCIANG HIGHLIGHTS

Marketing Aspect Marketing aspect determines your customer and justify that the products will be patronized and the business itself has a place in the market. The target market of The Rice Bistro will be the students, residents and the passersby in the area which is Gen. Emilio Aguinaldo Highway near Land Transportation Office in Palico, City of Imus Cavite. Marketing aspect shows the demand and supply analysis and market projection based on the data gathered thru conducted survey. Marketing strategies like posting a tarpaulin around the area will be done.

MANAGEMENT ASPECT

The partnership type of organization will be adapted wherein the partners will contribute money, time skills and expertise to the success of the business. The proposed business will be owned and operated by: Mary Chienny Anne Hocosol, Mari Sapinoso and Federico Cancino. Each partner is expected to contribute an equal share of money and equal share in profits and losses. The business will hire a manager, two cook and two service crew which will be in-charge in the daily operation.

FINANCIAL ASPECT

The initial investment of The Rice Bistro is PhP 250,000.00 which came from the partners contribution. This aspect will determine if the study if feasible or not based on the computed financial statements.

SOCIO-ECONOMIC CONTRIBUTIONS
Business establishment contributes a lot to the growth and development of Philippine economy. The Rice Bistro will help to contribute additional earnings to the government by paying taxes. Through this, the government can have additional funds to provide building infrastructures, schools, hospitals and creating new projects for the benefit of the people in the community. The business will help to provide employment to a person who needs it. An employed person can help himself to provide for his family. By this, he can also help the government by paying income taxes.

MARKETING PLAN

PRODUCT / SERVICE TO SELL

The Rice Bistro will sell special mixed and topped rice with different toppings from meat, seafood and vegetables. The Special Fried Rice will be our main product wherein the low budget customers will have the capacity to buy it and can be truly satisfied. The special fried rice will be used for topped rice. The product offerings will be divided into four other categories with their corresponding toppings.

VEGGIE TOPPED RICE

Mushroom Veggie Tofu Veggie Vegetable only For people wants a healthy meal. The main ingredients will be mushroom and tofu which will act as meat and mixed together with vegetables such as broccoli, cabbage, bean sprouts and swamp cabbage leaves (kangkong).

BREAKFAST MEALS OR TAPSILOG MEALS

Hotdog with egg Chorizo with egg Tocino with egg Tapa with egg

This is for people who want a light meal for breakfast. In this category, the proponents incorporated the famous Tapsilog to make it very Filipino.

SEAFOOD TOPPED RICE

Squid

& Mussel topped rice Shrimp and Squid topped rice Tuna topped rice

For people who are tired of eating the usual flavors, seafood topped rice will be one of the solutions. The squid, mussels and shrimp will be sauted in butter to give it a different flavor.

MEAT TOPPED RICE

Chicken Adobo Topped Rice Pork Barbeque Topped Rice Beef Steak (bistek tagalog) Topped Rice

The proponents have incorporated the famous Filipino dish such as adobo, barbeque and bistek tagalog to make every meal more enjoyable and exciting.

DIFFERENCE AMONG COMPETITORS

The products differ among the competitors because the proponents incorporated much of the Filipino dishes on every rice meals that you cant be seen on any fast food stalls. If you look at the idea of the other businesses which offers topped rice they do not usually incorporate Filipino dishes. Like, the Chowking Chao Fan which is adapted from the Chinese culture and the product of Rice in a Box which is also adapted from the other Asian countries.

The proposed business will be establish along Gen. Emilio Aguinaldo Highway, near Land and Transportation Office, Palico IV City of Imus, Cavite. The enterprise will acquire the ingredients, supplies and equipments that are needed in its daily operation. It will operate six (6) days a week, twelve (12) hours a day from seven (7 am) in the morning to seven (7 pm) in the evening. The business target market was mostly students which classes are from Monday to Saturday and will be the operating days of the business. The business will operate three hundred (300) days a year.

TARGET MARKET.

AREA COVERAGE

The business will be placed along Gen. Emilio Aguinaldo Highway near Land Transportation Office in Palico IV, City of Imus Cavite. The area is surrounded by many schools such as Gen. Emilio Aguinaldo National High School, Datacom, Imus Vocational School and Cavite State University Imus. It is also surrounded by many establishments such as banks, government offices, business enterprises and a residential area. The business will place along the highway which is very accessible for the passersby, customers and the target market.

CONSUMER / CUSTOMER

The business main target market will be the students from the surrounding schools high school to college. The budget meals will be truly afforded by the students. The residents and the passersby will be catered by the product from all age groups which belong to upper class, middle class and lower class groups.

PROJECTED POPULATION IN 5 YEARS

YEAR 0 1 2 3 4 POPULATION 12,008 12,488 12,988 13,508 14,048

14,610

PROJECTED ANNUAL DEMAND

Likes to eat mixed/top ped rice 87.75% Willing to try a new kind 90.75% Total Demand per Day 24% Will really Annual buy the Demand product (300 Days) 92.50%

Year

Projected Populatio n 12,488 12,988 13,508 14,048

2014
2015 2016 2017 2018

10,958
11,397 11,853 12,327 12,820

9,944
10,343 10,757 11,187 11,634

2,387
2,482 2,582 2,685 2,792

2,208
2,296 2,388 2,484 2,583

662,400
688,800 716,400 745,200 774,900

14,610

COMPETITORS PRODUCT PROFILE

Competitors Mc Donalds Price (Php) 50.00 110.00 Seating Capacity 130 Production/Day (per cup of rice) 180

7Eleven
Ministop Karenderia (3)

39.00 69.00
36.00 59.00 35.00 45.00

6
2 72

100
90 730

PROJECTED SUPPLIES
Competitors Average Capacity of Competitors 180 100 90 730 1,100 No. of Day in a Year Annual capacity

Mc Donalds
7 Eleven Ministop Karenderia (3) TOTAL

360
360 360 300

64,800
36,000 32,400 219,000 352,200

DEMAND AND SUPPLY GAP ANALYSIS

Year 2014 2015 2016 2017 2018 Demand 662,400 688,800 716,400 745,200 774,900 Supply 352,200 366,288 380,940 396,178 412,025 Gap 310,200 322,512 335,460 349,022 362,875 Percentage 53.17% 53.17% 53.17% 53.17% 53.17%

SUMMARY OF PROJECTED ANNUAL SALES IN PESOS

Year Market Total Sales per Day (PhP) Number of Days in Year Projected Annual Sales (PhP)

300

18,483.00

300

5,544,900.00

2
3 4 5

312
324 337 350

19,673.00
21,470.00 22,943.00 24,792.00

300
300 300 300

5,901,900.00
6,441,000.00 6,882,900.00 7,437,600.00

OWN MARKETING PROGRAM / STRATEGIES

A tarpaulin which contains the information about the opening day and special promos will be provided and will be placed in the target areas (front of Gen. Emilio Aguinaldo National High School, Datacom, CVSU-Imus, Palico IV, Toll Bridge and LTO Office). The said tarpaulin will also be placed outside the food stall to be easily recognized by the people. A flier about the special promo information will be given for the passersby around the area. A page on social media website like Facebook will be made to reach people online about the product offered. This is also a medium to exchange comments, suggestions and feedback among customers.

PRODUCTION / OPERATION PLAN

LABOR REQUIREMENT

The proposed project will require two (2) cooks, two (2) service crews for its daily operation. They will be responsible in the orderliness of production and service, cleanliness of the food stall and in making of the product.

PLANT / FACTORY LOCATION

The proposed business will be located along Gen. Emilio Aguinaldo Highway near Land Transportation Office in Palico, City of Imus Cavite. The proponents choose this location because the passersby, the students and the residents around the area are a big market for our product. The place is surrounded by many establishments where we can reach more customers and wide market coverage. The location has four (4) main competitors who offer rice, but none of them offers the same kind of product such as mixed rice and topped rice. The location is a commercial area which will be available in building the establishment.

VICINITY MAP

PLANT LAYOUT

BACKVIEW

WASTE DISPOSAL SYSTEM

Waste that will be produced by the operation of the business includes plate leftovers, vegetables skin and excess, food wastes, plastic containers from supplies, canned containers, bottles, paper cups and box and other wastes. The food wastes which are biodegradable will be saved and will be given to people who raise animals such as dogs and pigs. In disposing wastes, a trash can will be provided inside and outside the stall and will be divided into nonbiodegradable and biodegradable waste. The accumulated waste will be disposed during the weekly garbage collection by the Local Government Unit of City of Imus. A pipeline will be installed in the kitchen and washing area that will be linked to the drainage system in the area.

QUALITY CONTROL SYSTEM

The business will hire a well experienced and hardworking employee, such as cook and service crew. These employees will undergo training to be assured of the following guidelines regarding quality control. The proponents will make sure to maintain cleanliness inside and outside of the food stall, especially the working and claiming area. The employees will be taught of the proper waste disposal system. The employees is required to maintain a good personal hygiene, well groomed, cutting of nails and using of cosmetics for service crew. The proponents will ensure employee awareness of safety and emergency procedures, maintain and utilize equipment and adequate store supplies.

PRODUCTION PER YEAR

Year 2014 Maximum Capacity per Day 300
312
324 337 350

Number of Days in a Year 300

Total Production per Year (in bowls) 90,000

2015
2016 2017 2018

300
300 300 300

93,600
97,200 101,100 105,000

TOTAL PRODUCTION COST

Year Market Total Production Cost per Day (PhP) Number of Production Days in Year Cost per Year (PhP)

1 2 3 4 5

300 312 324 337 350

12,325.56 13,170.41 14,135.49 15,142.62 16,199.03

300 300 300 300 300

3,697,668.00 3,951,123.00 4,240,647.00 4,542,786.00 4,859,709.00

ORGANIZATIONAL PLAN

LEGAL FORM OF BUSINESS

The organization of the business is a partnership type. By the articles of partnership, partners bind themselves to contribute money, time and expertise to the operation of the business. The partners will equally contribute money and divide the profits equally among themselves. The proposed business will be consisting of the following partners: Mary Chienny Anne M. Hocosol, Mari Sapinoso and Federico I. Cancino Jr.

MISSION

To provide delicious and affordable food and an excellent customer service for every customer to experience.

VISION

We envision being one of the big food chain that will make every hungry individual satisfied by bringing enjoyable food with our very own Filipino tastes.

ORGANIZATIONAL STRUCTURE

The proposed business will have a total of five (5) employeesa manager, two (2) cooks and two (2) shop assistants. The business will adapt the line and staff type of organization where in the manager will have the direct supervision and control over his employees. The manager will be expected to handle proper recording of daily transactions. The two (2) cooks and two (2) shop assistants will be expected to perform all the duties and responsibilities in production to serve the customers.

Manager (1)

Cook (2)

Service Crew (2)

QUALIFICATIONS OF OFFICERS
Position No. of Employees Requirements Male or Female, 21-26 yrs. Old, College Level, Business Administration Strong leadership skills. Male or Female, 18-40 yrs. Old, High School Graduate With pleasing personality 1 year experience in cooking in any food stall

Manager

Cook

Service Crew

Male or Female, 18-40 yrs. Old. High School Graduate With pleasing personality Hardworking, knowledgeable in customer service

JOB DESCRIPTION
Position Job Description

Effectively manage employee turnover. Provide a positive working environment and handle employee issues appropriately and in a timely manner. Utilize labor management tools, including effective scheduling, to maximize productivity, profitability and margins. Encourage store employees to take ownership for their performance and career development plans; follow up on a regular basis.

Manager

Provide exceptional customer service and ensure the employees also provide the same level of service. Communicate, execute, and manage marketing and merchandising programs. Manage store revenue, including cash handling, deposit reconciliation and delivery of deposits to bank. Manage speed of service results, controls inventory that is used for service orders, and is responsible for the overall organization and appearance of the service center.

Inspect food preparation and serving areas to ensure observance of safe, sanitary food-handling practices.
Observe and test foods to determine if they have been cooked sufficiently, using methods such as tasting, smelling, or piercing them with utensils.

Cook

Weigh, measure, and mix ingredients according to recipes or personal judgment, using various kitchen utensils and equipment. Estimate expected food consumption; then requisition or purchase supplies, or procure food from storage.
Coordinate and supervise work of kitchen staff.

Service Crew

Assist in kitchen processes and ensure customers have an enjoyable customer service Taking orders, serving food and handling payments Clearing off and setting tables, stocking supplies, cleaning dishes and dropping off food, beverages and condiments Ensure to give the needs of the customers

Activity 1st 1. Preparation of feasibility study 2nd

Duration (In Month) 3rd 4th 5th

1.
1. 1.

Sourcing of funds
Site selection Development of prospective Procurement of furniture and fixtures

1.

1.

Registration of business Hiring of employees Promotion Start of operation

1. 1. 1.

ADMINISTRATIVE EXPENSES
Position Manager Monthly Salaries (PhP) 18,000.00 Annual Salaries (PhP) 216,000.00

Cook 1 Cook 2
Service Crew 1 Service Crew 2 TOTAL

12,000.00 12,000.00
9,600.00 9,600.00 57,600.00

132,000.00 132,000.00
105,600.00 105,600.00 691,200.00

FINANCIAL PLAN

The financial aspect of this study will determine the profitability and stability of the business. This aspect will show the results of financial position of the business This chapter will discuss the total project cost, sources of financing, projected cash flow, projected income statement, projected balance sheet, return on investment, payback periods, sales ratio, breakeven analysis and the list of assumptions used. It will also include the schedule of depreciation, expenses, salaries, salary deductions, administrative expenses and costs.

TOTAL PROJECT COST

FIXED CAPITAL ASSETS Equipment Furniture - Store Furniture - Office Leasehold Improvement Kitchen Utensils Total PRE-OPERATING EXPENSES Advertising Expenses Organizational Expenses Total WORKING CAPITAL Cash Raw Materials Packaging Supplies Prepaid Rent Office Supplies Total TOTAL PROJECT COST PhP 90,510.00 23,968.00 5,497.00 40,000.00 23,290.00 PhP183,265.00 2,900.00 6,180.00 PhP9,080.00 13,510.00 11,695.00 1,680.00 30,000.00 770.00 PhP57,655.00 P250,000.00

SOURCES OF FINANCING

The business requires a total project cost of PhP 250,000.00 which will be contributed by the partners equally. The partners will contribute an equal contribution percentage and will share the profit and losses equally.

PARTNERS CONTRIBUTION
Partners Mary Chienny Anne M. Hocosol Mari Sapinoso Initial Investment 83,333.33 Profit and Losses 33.33%

83,333.33 83,333.33
PhP250,000.00

33.33% 33.33%
100%

Federico Cancino Jr.

TOTAL

THE RICE BISTRO STATEMENT OF CASH FLOW

Year 1 Cash In-flow from Operating Activities Net Profit Add: Depreciation expenses Less: Prepaid rent Net Cash provided by Operating Activities Cash Out-flow from Investment Activities Machineries & Equipment Furniture -Store Furniture - Office Leasehold Improvement Net Cash from investment activities Cash Flow from Financing Activities Proceeds from Partner Withdrawals of Partners Net Cash from Financing Activities Net Cash Cash at the Beginning of Period Cash at the End of Period

Year 2

Year 3

Year 4

Year 5

378,924.32 0.00 30,000.00 348,924.32

414,000.62 26,662.50

537,023.63 26,662.51

606,542.03 26,662.51

736,874.39 26,662.51

440,663.12

563,686.14

633,204.54

763,536.90

90,510.00 23,968.00 5,497.00 40,000.00 159,975.00

250,000.00 113,677.30 136,322.70 124,200.19 (124,200.19) 161,107.09 (161,107.09) 181,962.61 (181,962.61) 221,062.32 (221,062.32)

325,272.03 0.00 325,272.03

316,462.94 325,272.03 641,734.96

402,579.05 641,734.96 1,044,314.01

451,241.93 1,044,314.01 1,495,555.94

542,474.58 1,495,555.94 2,038,030.52

THE RICE BISTRO STATEMENT OF PROJECTED INCOME

Note Sales Less: Cost of Sales Gross Profit Less: Operating and Administrative Expenses Selling Expenses

2014 5,267,411.00 4,533,330.87 734,080.13

2015 5,632,101.00 4,846,747.47 785,353.53

2016 6,119,240.00 5,153,348.91 965,891.09

2017 6,538,913.00 5,472,492.89 1,066,420.11

2018 7,065,560.00 5,807,998.52 1,257,561.48

2,900.00

2,987.00

3,076.61

3,168.90

3,263.99

Administrative Expenses Total Operating Expenses Income Before Tax

Income Taxes (30%) Net Income

189,859.67
192,759.67 541,320.46 162,396.14 378,924.32

190,937.07
193,924.07 591,429.46 177,428.84 414,000.62

195,637.87
198,714.48 767,176.61 230,152.98 537,023.63

196,762.60
199,931.50 866,488.61 259,946.58 606,542.03

201,619.79
204,883.78 1,052,677.70 315,803.31 736,874.39

THE RICE BISTRO STATEMENT OF FINANCIAL POSITION

PROJECTED STATEMENT OF FINANCIAL POSITION Note Assets Current Assets Cash Inventories 325,272.03 13,375.00 770.00 30,000.00 369,417.03 641,734.96 13,776.25 793.10 30,000.00 686,304.31 1,044,314.01 14,189.54 816.89 30,000.00 1,089,320.45 1,495,555.94 14,615.23 841.40 30,000.00 1,541,012.57 2,038,030.52 15,053.69 866.64 30,000.00 2,083,950.86 Year 1 Year 2 Year 3 Year 4 Year 5

Office Supplies Prepaid Rent Total Current Assets Non-Current Assets Machinerie s & Equipment Furniture Store Furnitures - Office Leasehold Improvement Total NonCurrent Assets Total Assets

90,510.00 23,968.00 5,497.00 40,000.00 159,975.00 529,392.03

75,425.00 19,973.33 4,580.83 33,333.33 133,312.50 819,616.81

60,340.00 15,978.67 3,664.66 26,666.66 106,649.99 1,195,970.44

45,255.00 11,984.00 2,748.49 19,999.99 79,987.49 1,621,000.06

30,170.00 7,989.33 1,832.32 13,333.32 53,324.98 2,137,275.84

Liabilities and Owner's Equity Liabilities Current Liabilities Accounts Payable 14,145.00 14,569.35 15,006.43 15,456.63 15,920.33

Total Liabilities Partner's Capital

14,145.00

14,569.35

15,006.43

15,456.63

15,920.33

Partners' Contribution, beginning Add: Net Income

250,000.00 378,924.32 628,924.32

515,247.03 414,000.62 929,247.65 124,200.19 805,047.46 819,616.81

805,047.46 537,023.63 1,342,071.09 161,107.09 1,180,964.00 1,195,970.44

1,180,964.00 606,542.03 1,787,506.03 181,962.61 1,605,543.42 1,621,000.05

1,605,543.42 736,874.39 2,342,417.81 221,062.32 2,121,355.49 2,137,275.83

Less: Partners' Withdrawal Total Capital Total Liabilities and Owner's Equity

113,677.30 515,247.03 529,392.03

RETURN OF INVESTMENT
Year 1 Year 2 Year 3 Year 4 Year 5 Beginning Investment Add: Equity, Ending 250,000.00 515,247.03 805,047.46 1,180,964.00 1,605,543.42

515,247.03

805,047.46

1,180,964.00

1,605,543.42

2,121,355.49

Total:

765,247.03

1,320,294.49

1,986,011.47

2,786,507.43

3,726,898.92

Divide by:

Average Equity

382,623.51

660,147.25

993,005.73

1,393,253.71

1,863,449.46

Net Income

378,924.32

414,000.62

537,023.63

606,542.03

736,874.39

Divide: Average Equity Return on Investment

382,623.51

660,147.25

993,005.73

1,393,253.71

1,863,449.46

0.990332039

0.62713376

0.54080617

0.435342122

0.395435672

PAYBACK PERIOD
Months Investment 250,000.00

Less: Net Income for Year 1

378,924.32

12

Difference

128,924.32

Divide by Net Income for Year 1

378,924.32

4.082851885 Payback Period

Net Income

378,924.32

Divided by: Payback Period

4.082851885

92,808.74

Income per Month

SALES RATIO
Year 1 Year 2 Year 3 Year 4 Year 5

Gross Profit

734,080.13

785,353.53

965,891.09

1,066,420.11 1,257,561.48

Divide by Net Sales

5,267,411.00

5,632,101.00

6,119,240.00

6,538,913.00

7,065,560.00

Sales Ratio

13.94%

13.94%

15.78%

16.31%

17.80%

BREAK EVEN POINT

Year 1 Capacity per Day Number of Days in a Year Target Supply per Year 300 300 90,000 Year 2 312 300 93,600 Year 3 324 300 97,200 Year 4 337 300 101,100 Year 5 350 300 105,000

Variable Cost Divide by: Cost per Unit Variable Costper Unit

4,533,330.8 4,846,747.4 5,153,348.9 5,472,492.8 5,807,998.5 7 7 1 9 2 90,000 93,600 97,200 101,100 105,000
50.370343 51.78149006 53.0179929 54.12950435 55.31427162

Fixed Cost Variable Cost per Unit Break-even in terms of Unit Sales

1,019,682.2 1,081,023.6 1,103,112.1 1,125,268.1 1,149,145.7 7 7 4 3 6 50.370343 51.7814900 53.0179929 54.1295043 55.3142716 6 5 2 20,243.70 20,876.64 20,806.37 20,788.44 20,774.85

LIST OF ASSUMPTIONS USED

Sales Annual increase of 3% based on the inflation growth rate of the Philippines. Price Annual increase in price is based on 3% inflation growth rate of the country. Cost of Raw Materials Annual increase of raw materials is based on the inflation rate Rent Expense Rent expense will have 3% increased every two years. Depreciation Method for Machineries and Equipment, Store Furniture, Office Furniture and Leasehold Improvement machineries, equipments and furniture will have six years of useful life. There will be 2% annual increase on the following:
Utilities Expense Salaries Taxes and Licenses Advertising Expenses Repairs and Maintenance Office Supplies

The partners will have annual drawings 30% from the net income