POLYTECHNIC UNIVERSITY OF THE PHILIPPINES Taguig Campus General Santos Avenue, Upper Bicutan Taguig City
A Feasibility Study on “KALYE OCHO” A Feasibility Study on Street Food Kiosk
In Partial Fulfilment of the Requirements of Bachelor in Business Administration Major in Marketing Management
Presented to the Panelist of Oral Defense
Submitted to: Professor Aldrin P. Antivola
Submitted by: ACABO, Alfie J. ALMONTERO, Rachel Ann G. JUATCO, Jerald Angelo M. RICOHERMOSO, Mera Vernadeth P. VILLANUEVA, Loveleen A.
November 2010
FEASIBILITY STUDIES – KALYE OCHO
Republic of the Philippines Polytechnic University of the Philippines Taguig Campus Gen. Santos Ave., Bicutan, Taguig City Tel. No.: 837-5858 Endorsement Sheet
This feasibility study of Ms. Mera Vernadeth P. Ricohermoso, Ms. Loveleen A. Villanueva, Ms. Rachel Ann G. Almontero, Mr. Alfie J. Acabo and Mr. Jerald Angelo M. Juatco entitled “„KALYE OCHO‟ A Feasibility Study on Street Food Kiosk” submitted in partial fulfilment of the requirements for Degree in Bachelor in Business Administration is hereby endorsed for oral defense.
________________________ PROF. ALDRIN P. ANTIVOLA
Approval Sheet
Accepted and endorsed after having passed the oral defense satisfactory as indicated in the corresponding rating form by the undersigned.
______________________ PROF. JONATHAN MARQUEZ
______________________ MR. SYED AMED
Approved and accepted in the partial fulfilment of the requirements for the Degree of Bachelor in Business Administration, September 2010.
_______________________ DIR. AMELITA A. LAURENTE PUP Taguig Campus Directress
Polytechnic University of the Philippines
ii
FEASIBILITY STUDIES – KALYE OCHO
ACKNOWLEDGEMENT
First of all, we would like to express our deepest gratitude to our Professor Aldrin P. Antivola for giving us opportunity to make this stud y as part of our endless search for knowledge. Great thanks to our parents for all the love and support in doing this study. They made us successful by helping us in a big way for providing financial support, accommodation, and especially the strength and inspiration in accomplishment of everything we do. We want to acknowledge as well as all our respondents who spent some time and effort in cooperating for answering our questionnaires and to all the employees of Parañaque Municipal Hall, SEC, SSS, and DTI and other people who provide some assistance and information that we need in the study. We would also like to thank everyone who helped us even in a small way particularly our friends and classmates contributing to the success of this project. And above all, this study won’t be possible without the guidance and inspiration given by our Almighty God.
Polytechnic University of the Philippines
iii
FEASIBILITY STUDIES – KALYE OCHO
TABLE OF CONTENTS
Title Page...................................................................................................................................i Endorsement/ Approval Sheet ...............................................................................................ii Acknowledgement..................................................................................................................iii Table of Contents ...................................................................................................................iv List of Tables ..........................................................................................................................x List of Figures.........................................................................................................................xii Introduction............................................................................................................................xiv Kalye Ocho Logo....................................................................................................................xv
I.
Executive Summary
1
A. Name of the Business
1
B. Title of the Study
1
C. Store Location
1
D. Description of the Logo
2
E. Brief Description of the Project
3
F. General Objectives of the Business
3
G. Research and Methodology
4
G.1. Survey
4
G.2. Sloven‟s Formula
4
G.3. Sampling Techniques
5
G.4.Survey Questionnaire
5
G.5. Interview
5
G.6. Research
5
G.7. Mapping
6
G.8. Search of Internet, Books, and Libraries
7
H. Project Summary
9
H.1. Market Summary
9
H.2. Technical Summary
9
H.3. Management Summary
9
H.4. Financial Summary
10
Polytechnic University of the Philippines
iv
FEASIBILITY STUDIES – KALYE OCHO
II.
I. Operational Terms
10
J. Scope and Limitation
11
Market Study
12
Introduction
12
Objectives
12
A. Demand
13
A.1. Past Demand
13
A.1.1. For the Industry
13
A.1.2. For Every Products
14
A.2. Projected Demand
15
A.2.1. For the Industry
15
A.2.2. For Every Products
15
A.3. Market Segmentation B. Supply B.1. Past Supply
16 17 17
B.1.1. For the Industry
17
B.1.2. For Every Products
17
B.2. Projected Supply
18
B.2.1. For the Industry
18
B.2.2. For the Products
19
B.3. Competitors Analysis
20
C. Demand Supply Gap Analysis
21
D. Market Share Analysis
23
D.1. Projected Sales
25
E. Marketing Strategies
26
E.1. Product Strategies
26
E.2. Place Strategies
26
E.3. Pricing Strategies
26
E.4. Promotion
27
E.4.1. Poster
27
E.4.2. Website
28
E.4.3. Flyers
29
Polytechnic University of the Philippines
v
FEASIBILITY STUDIES – KALYE OCHO
E.4.4. Gift Certificates
III.
30
F. SWOT Analysis
30
Technical Study
31
Introduction
31
Objectives
32
A. Product Description
32
A.1. Product Pricing
34
A.2. Product Preparation Guide
35
A.2.1. Streetfoods
35
A.2.2. Drinks
43
A.2.3. Desserts
46
A.3. Time Motion Study
50
B. Business Process
50
C. Business Location
50
D.1. Vicinity Map
50
D.2. Floor Plan
51
D. Machineries and Equipment
53
E. Utensils
58
F. Furniture and Fixtures
64
G. Supplies
65
G.1. Office Supplies
65
G.2. Sanitary Supplies
67
H. Store Uniforms
71
I. Utilities Requirements
73
I.1. Electricity
73
I.2. Water Supply
73
I.3. Telecommunications
73
I.4. LPG
73
J. Waste Disposal Method
74
K. Direct Labor Requirements
74
K.1. Work Schedule
Polytechnic University of the Philippines
75
vi
FEASIBILITY STUDIES – KALYE OCHO
IV.
Management Study
76
Introduction
76
Objectives
76
A. Form of Ownership
76
B. Mission, Vision, Core Values
77
B.1. Vision
77
B.2. Mission
77
B.3. Core Values
77
C. Capitalization
78
D. Organizational Chart
78
E. Manpower Requirements
79
F. Employment Process
82
G. Legal Requirements
83
G.1. Municipality of Parañaque
83
G.2. BIR
83
G.3. SSS
83
G.4. DTI
83
G.5. SEC
83
G.6. FDA
83
H. Organizational Policies and Procedures
84
H.1. Employment
84
H.2. Classification of Employees
85
H.2.1. According to Rank
85
H.2.2. According to Status
85
H.3. Orientation
85
H.4. Personnel Records
86
H.5. Contracts of Employment
86
H.6. Work Schedule
86
H.7. Tune Keeping
86
H.8. Attendance and Punctuality
87
H.8.1. Attendance
87
H.8.2. Punctuality
88
Polytechnic University of the Philippines
vii
FEASIBILITY STUDIES – KALYE OCHO
H.9. Personnel Movement and Performance Evaluation
88
H.10. Separation from Service
88
H.10.1. Voluntary Resignation
88
H.10.2. Termination
89
H.11. Compensation and Benefits
89
H.11.1. Salaries and Wages
89
H.11.2. Overtime Pay
89
H.11.3. Cancelled Day-off/ Holiday Pay
89
H.11.4. 13th Month Pay
90
H.11.5. Paternity and Maternity Leave
90
H.11.6. SSS/PHIC/HDMF Benefits
90
H.11.7. Hospitalization Plan
90
H.11.8. Accident Insurance
91
H.11.9. Retirement Benefits
91
H.11.10. Bereavement Assistance
91
H.11.11. Other Incentives and Awards
91
I. Code of Ethics I.1. Hygiene and Sanitation
91
I.2. Arrival and Departure of Employees
92
I.3. Procedure for Notices/Bulletin Boards
92
I.4. Notice of Disciplinary Action
92
I.5. Code of Conduct
92
I.5.1. Kinds of Penalties
V.
91
92
H. Project Schedule Gantt Chart
94
Financial Study
95
Introduction
95
Objectives
95
Major Assumptions
96
Income Statement
97
Statement of Cash Flow
98
Balance Sheet
99
Statement of Changes in Partner‟s Equity
100
Polytechnic University of the Philippines
viii
FEASIBILITY STUDIES – KALYE OCHO
VI.
Financial Analysis
101
Economic Evaluation
105
Socio – Economic Study
106
Introduction
106
Objectives
106
A. Socio-Economic Contributions
106
A.1. Contribution to the Philippine Economy
106
A.2. Employment Generation
106
A.3. Environment Conservation
107
Appendices
108
Kalye Ocho Survey and Evaluation Sheet
108
Tally of Questionnaire
112
Other Tables
128
Recommendations
136
Findings
137
Bibliography
Polytechnic University of the Philippines
ix
FEASIBILITY STUDIES – KALYE OCHO
LIST OF TABLES
TABLE
PAGE
1
Past Demand for the Industry
13
2
Past Demand for the Products
14
3
Projected Demand for the Industry
15
4
Projected Demand for the Products
15
5
Past Supply for the Industry
17
6
Past Supply for the Products
17
7
Projected Supply for the Industry
19
8
Projected Supply for the Products
19
9
Competitors Products Analysis
21
10
Demand Supply Gap Analysis
22
11
Market Shares of Kalye Ocho
24
12
Projected Market Share
25
13
Projected Sales
25
14
Work Schedule
75
15
Offenses for the Workers
93
16
Customer‟s Profile
112
17
Respondent‟s Ages
113
18
Question #1 Statistics
114
19
Question #2 Statistics
115
20
Question #3 Statistics
116
21
Question #4 Statistics
117
22
Question #5 Statistics
118
23
Question #6 Statistics
119
24
Question #7 Statistics
120
25
Question #8 Statistics
121
Appendices
Polytechnic University of the Philippines
x
FEASIBILITY STUDIES – KALYE OCHO
26
Question #9 Statistics
122
27
Question #10 Statistics
123
28
Question #11 Statistics
124
29
Question #12 Statistics
125
30
Question #13 Statistics
126
31
Question #14 Statistics
127
Polytechnic University of the Philippines
xi
FEASIBILITY STUDIES – KALYE OCHO
LIST OF FIGURES
FIGURE
PAGE
1
Location of the Business
1
2
Location of the Business in the Establishment
2
3
Business Logo
2
4
Parañaque City Map
6
5
Breakdown of Markets
25
6
Kalye Ocho Poster
27
7
Kalye Ocho Unofficial Website
28
8
Kalye Ocho Flyer
29
9
Our Products
33
10
Adidas
35
11
Balut
36
12
Calamares
37
13
Chicken Skin
38
14
Fishball
39
15
Isaw
40
16
Kwek-kwek
41
17
Pork Barbeque
42
18
Iced Tea
43
19
Pineapple Juice
44
20
Sago‟t Gulaman
45
21
Halo-halo
46
22
Mais Con Yalo
47
23
Saging Con Yelo
48
24
Sorbetes
49
25
Vicinity of Paranaque
50
26
Floor Plan Measurements
51
27
Floor Plan Details
52
Polytechnic University of the Philippines
xii
FEASIBILITY STUDIES – KALYE OCHO
28
Uniforms for Male Crews
71
29
Uniforms for Female Crews
71
30
Uniforms for Male Store Managers
72
31
Uniforms for Female Store Managers
72
32
Organizational Chart
78
33
GANNT Chart
94
34
Question #1 Graph
114
35
Question #2 Graph
115
36
Question #3 Graph
116
37
Question #4 Graph
117
38
Question #5 Graph
118
39
Question #6 Graph
119
40
Question #7 Graph
120
41
Question #8 Graph
121
42
Question #9 Graph
122
43
Question #10 Graph
123
44
Question #11 Graph
124
45
Question #12 Graph
46
Question #13 Graph
Appendices
Polytechnic University of the Philippines
`
125 126
xiii
FEASIBILITY STUDIES – KALYE OCHO
INTRODUCTION
The growing street food sector in low-income countries offers easy access to inexpensive food as well as new job opportunities for urban residents. While this development is positive in many ways, it also presents new public health challenges for the urban population. Safe food hygiene is difficult to practice at street in settings where resources are scarce and surroundings are of low environmental and sanitary standards. Diarrheal diseases due to contaminated and unhygienic food are among the leading causes of illness and deaths in low-income countries and several outbreaks of disease have been attributed to the consumption of street food. Teenagers today are fond of trying new dishes regardless of knowing its safety and its content. Being so adventurous leads them to be unconscious on the foods they eat and the place where they buy it. Street foods are known because of its affordability and enchanting taste. However, because of unsafe practices such as inadequate storage, reheating of food before sale insufficient hand washing and inappropriate cleaning of cooking utensils, these foods become hazardous to our health. In accordance to this matter, the proponents of Kalye Ocho decided to come up with the idea of catering Filipino street foods such as kwek-kwek, balut, isaw, fishball, calamares, chicken skin, adidas, and pork barbeque in ways that taste and safety of the food will be assured. Considering factors such as aesthetics, methods of preparation, presentation of food, quality of the products, sanitary procedures and best service accommodation will be the key factors to attain customer’s trust and loyalty. Through quality management, customer’s satisfaction will be achieved.
Polytechnic University of the Philippines
xiv
FEASIBILITY STUDIES – KALYE OCHO
A FEASIBILITY STUDY ON STREETFOOD KIOSK
Polytechnic University of the Philippines
xv
FEASIBILITY STUDIES – KALYE OCHO
CHAPTER I EXECUTIVE SUMMARY
A. Name of the Business:
Kalye Ocho
The business proponents came up with the Kalye Ocho as the name of our business. “Kalye” as the Tagalog term for the word ”street” and “Ocho”, as the Spanish term for the number “eight” that represents the number of kinds of street foods we mainly served to our customers. Kalye Ocho can also be interpreted as one of the streets in a certain place that sets the perception to potential customers that our restaurant serves and offers street foods.
B. Title of the Study:
A Feasibility Study on Street Food Kiosk
C. Store Location
Figure 1 Location of the Business
Building B, Foodcourt, SM Bicutan, Dona Soledad Barangay Don Bosco, Paranaque City Location is one of the major factors to be considered in starting up a business. It must be assured that it is accessible to the target market. If location is later found to be incompatible to the situation as to give consideration to its target market, it
Polytechnic University of the Philippines
1
FEASIBILITY STUDIES – KALYE OCHO
may lead the company to failure. Right choice of location means reaching your target customers and you respond correctly to their market needs. Based on our survey, majority of the respondents chose mall as a place to locate our business. We’ve decided to put our business at SM Bicutan because we believed it would be very accessible to our target customers which are those ages 10-24 years. Surrounding the establishment are different high schools and colleges like AICS, Informatics, PUP-T, DASNHS, etc. SM Bicutan is considered to be a strategic location for business because it lies in the intersection between Paranaque and Taguig City. In that case, not only the residents of Paranaque City of the given age can be persuaded but the residents of Taguig City of the same age as well.
Figure 2 Location of the Business in the Establishment D. Description of the Logo
Figure 3 Business Logo
Polytechnic University of the Philippines
2
FEASIBILITY STUDIES – KALYE OCHO
Our business came up with this logo because we believed that it can reflect and represent our main business essence thoroughly. We chose Kwek- kwek, a Pinoy street food, in our logo for the reason that it emerged as the most popular and in-demand street foods based on our conducted survey. Also this street food served as the trademark of most of the Filipinos because it captures their taste preference. K8 is an acronym that stands for Kalye Ocho which is the name of our business. We came up with the colours Green and Orange as the primary colours of our logo, Orange that symbolizes deliciousness and Green that represents clean and nutritious street foods we cater. E. Brief description of the project The study is about a food kiosk catering street foods as its main dish. The objective of the proponents in making this business possible is to make an impression that usual Filipino street foods that we encounter can also be safe, sa voury and be complemented to other dishes. Our business wants to emphasize that aesthetics, appearances, presentation of food, personal trust and interaction with our customers are the most important parameters for assessing food safety as well as meeting our customer’s needs and wants. People in all walks of life can now have the perception that street foods are not just an alternative food if you want to be a spend thrift but rather these are also foods which will delight you and will give you satisfaction beyond your expectations.
F. General Objectives of the Business a) to be able to change the perception of people regarding safety and cleanliness of street foods, b) to increase the level of awareness of customers on the different ways that the street foods can be introduced from a simple and ordinary recipes to a nutritious, stylish and savoury dishes or cuisine, c) to line up with other competitors using our unique approach in catering street foods, d) to offer an affordable but delicious and a satisfying street foods.
Polytechnic University of the Philippines
3
FEASIBILITY STUDIES – KALYE OCHO
G. Research and Methodology The proponents used different techniques in gathering information to support the study. G.1.
Survey The proponents conducted survey among 358 respondents to get their opinion
regarding street foods business. These 398 respondents were come from the present total population of Paranaque City and the proponents used the Sloven’s formula. The survey was distributed among all the teenagers’ residents of Paranaque City. It was used so that the proponents would be able to know the respondent’s perception and preference regarding to their proposed business. G.2.
Sloven’s Formula The group used the Sloven’s Formula to determine the needed number of
respondents.
Formula: n=
N
.
1+Ne2
Where: N = the number of people who qualify in the area of study e = margin of error which is 5% n = number of needed respondents
Solution:
N=
178,129
. = 399.10
1+ (178,129) (.05)2
Polytechnic University of the Philippines
4
FEASIBILITY STUDIES – KALYE OCHO
G.3.
Sampling Techniques
The researchers used the random sampling to gather information from the target market. Surveys and interviews are conducted to further the people’s demand regarding street food products by using a specific number of persons or respondents from different barangays within the locality. The group based the respondents from 0.23% of the total population in the area covered by the study. G.4.
Survey Questionnaire
In order to have an access on the pertinent information and gather important data about customer’s taste and preferences when it comes to street food products, the researchers agreed to use Questionnaires. In this process, we find it very easy and reliable. The researchers used the checklist format. Questions are made for the researchers to get their personal choice when it comes to street foods. By these questions, the researchers will be able to determine the demand of the product. The group provided 399 survey questionnaires which are all in English language. G.5.
Interview
The proponents interviewed relevant people in order to answer questions in addition to the information gathered by survey questionnaire. We interviewed managers of some establishments at SM Bicutan to determine the rental payments and the possible layout of the store offered by the management. G.6.
Research
The proponents used the information from different libraries and surf the internet as source of their research in order for them to gather information about the business, the location of the mall, and other information that can help the study.
Polytechnic University of the Philippines
5
FEASIBILITY STUDIES – KALYE OCHO
G.7.
Mapping
Figure 4 Parañaque City Map The study covered the whole city of Parañaque as the target market of the study as shown in Figure 4. The city is subdivided into sixteen (16) Barangays with two (2) districts. District II and I are composed of eight (8) Barangays each. The first district comprises of Barangays Baclaran, Tambo, Don Galo, and Sto. Niño, La Huerta, San Dionisio, Vitalez, and San Isidro while the second district consist of Barangays BF, San Antonio, Merville, Moonwalk, and San Martin de Porres, Sun Valley, Marcelo Green, and Don Bosco where the establishment of SM Bicutan is located.
Polytechnic University of the Philippines
6
FEASIBILITY STUDIES – KALYE OCHO
G.8.
Search of Internet, Books and Libraries
The proponents used the information from different libraries and surf the internet as source of their research i n order for them to gather information about the business, the location of the mall, and other information that can help the study.
Food is a basic necessity. The industry which deals with preparing food items/products refers to the food service industry. The food service industry is and will always
remain
in
high
demand
because
of
its
genre.
These
industries
include restaurants, fast foods, school and hospital cafeterias, catering operations, food carts and food trucks etc. Restaurants and fast foods mainly contribute to the food service industry. “Fast food” generally refers to the type of restaurants that sell quick, inexpensive take-out food. During a relatively brief period of time, the fast food industry has helped to transform not only diet, but also landscape, economy, workforce, and popular culture. The extraordinary growth of the fast food industry has been obsessed by fundamental changes in society. The whole experience of buying fast food has become so habitual, that it is now taken for granted, like brushing your teeth or stopping for a red light.
Restaurants and fast
foods are
meant
for
same
services
except
that restaurants offer a large menu including a variety of cuisines as compared to fast foods, which usually offers a small menu with quick service. Another difference between a restaurant and fast food is, restaurants offer meals that are cooked and prepared and is eaten at the premises while fast food usually is pre-cooked meals or serves meals that are cooked easily. Diners may eat it inside the store or they can order their food “to-go”. In fast foods you usually pay before eating unlike full service restaurants.
Polytechnic University of the Philippines
7
FEASIBILITY STUDIES – KALYE OCHO
Like every other country, the food industry has flourished very well in Philippines. Filipinos love to eat and that’s the reason why you will see a lot of restaurants and fast
foods restaurants scattered
in
the
cities.
These restaurants and fast foods can be local or international food chains. Filipino food and chefs are considered one of the best in the world. It is hardly surprising that Filipino food is often labeled as somewhat strange (like the “balut” for example) but in its own way, its food is a unique mixture of eastern and western cuisines and reflects the history of Philippines. The Filipino food includes dishes and cooking procedures from China, Spain, Mexico, United States, and more recently from further abroad. However, what makes them Filipino is the history and society that introduced and adapted them; the people who turned them to their tastes and accepted them into their homes and restaurants, and specially the harmonizing culture that combined them into modern Filipino fare. Some of the popular fast food chains of Philippines are Jollibee, McDonald, KFC, and Chowking, etc. and popular restaurants being Abe, Chelsea, Friday’s, Chili’s and a lot more.
Attracting a huge crowd to restaurants or fast foods require more than just good food. Though important, good food is only a part of the total dining experience. Equally important is believed to be the way people feel while in the restaurant. This physical and emotional response is a result of the atmosphere, the total environment to which customers are exposed. The proper atmosphere can make the food, service and whole dining experience seem better. For that reason a restaurant or a fast food must take care of the following to please its customers. This includes checking the cleanliness of the place and freshness of the food, guarded premises, parking area where people can park, ambiance and landscaping, building design, lighting, and even music. (http://manilareviews.com/2010/07/food-service-industry-philippines.html)
Polytechnic University of the Philippines
8
FEASIBILITY STUDIES – KALYE OCHO
H. Project Summary H.1.
Market Summary The market projection of this business is based on the surveys conducted and
other related information gathered within the vicinity of Paranaque. Projection of demand, supply, and sales for the first five years of operation is based on the different factors like the population growth, market acceptability, capacity to supply and other factors. This study is feasible because our target population are willing and capable of availing our products and services. We also consider factors like our competitors and prevailing prices of the suppliers that will affect our prices. Based on our demand supply analysis we found out that we can supply the available market based on our production capacity. H.2.
Technical Summary The products that we are going to offer are street foods with high demand and
nutritious for our customer. Our products are kwek-kwek, fishball, isaw, adidas, pork barbeque, chicken skin, balot and calamares, we also offer other products that will complement to our products sush as desserts (halo-halo, sorbets,mais con yelo and banana con yelo) French fries and drinks (sago’t gulaman, iced tea and pineapple juice). Machineries and equipment were enumerated as well as other supplies with their corresponding cost. The project is feasible based on the different aspect that we consider in operating this business. H.3.
Management Summary Kalye Ocho is a partnership form of business ownership which will handle the
management of the business. There is a store manager who is over all in charged for the day-to-day operation of the business. At the present, the business has the total of 11 employees and as the business grows new employees will be hired for the minor business operation. Through an organized organizational structure, there will be a smooth operation of the business and also based on the technical know how of the managers, therefore, this business is feasible in this aspect.
Polytechnic University of the Philippines
9
FEASIBILITY STUDIES – KALYE OCHO
H.4.
Financial Summary The initial investment of Kalye Ocho is P 4,000,000.00 which came from the
partner’s contribution to establish this business. There are no other sources of capital aside from our contribution. The return of asset will be .15 at first year and the payback period will be exactly 2.83. Therefore, our financial study is feasible. I. Operational Terms Kwek-kwek – Boiled chicken or quail eggs dipped in a flour-and-egg batter then fried Isaw – Barbecued chicken intestines on a skewer Balut – A popular Filipino street snack and is essentially a duck egg with a fetus inside Fish Ball – Balls formed from flaked fish or squid mixed with flour, deep fried Calamares – Flour-coated squid rings Chicken Skin – Deep-fried chicken skin breaded with flour Adidas – Grilled chicken feet Pork Barbeque – Skewered pork strips marinated in soy sauce and calamansi and grilled Frying – To cook in a hot vegetable oil in a shallow open pan Grilling – To broil the on an electric griller with a great heat Soda – Soft serving of drinks and desserts Packing – The process of assembling the foods in its container Dishwashing – To clean the tablewares and utensils by washing it using a dishwashing liquid and water
Polytechnic University of the Philippines
10
FEASIBILITY STUDIES – KALYE OCHO
J. Scope and Limitation The study will tackle the feasibility of a street food restaurant business that is located at the mall, also the acceptance of the present and potential customers, on how well they will respond to these foods served in restaurants that are usually found in the streets. The respondents are those only who belong to the age bracket 10-24 years old, teenagers, male and female who are residents of Paranaque City. The competitors that the firm will consider are those fast food restaurants which are located within the vicinity of Paranaque City.
Polytechnic University of the Philippines
11
FEASIBILITY STUDIES – KALYE OCHO
CHAPTER II MARKET STUDY
Marketing is a system of business activities designed to plan, price, promote and distribute want-satisfying goods and services to present and potential customers. It is considered as the lifeblood of every business transactions because it is a strategic way on how to cope up to the needs and wants of the costumers, finding opportunities regarding it, introduce and market the product, achieve customer’s loyalty and patronage. This aspect includes the following topics: demands, supply, demand and supply gap analysis, marketing programs and the projected sales. The objective of the proposed project is to delight the customers, not just by meeting their expectation but rather exceeding and going extra mile. Moreover, it’s about profita bility. Marketing aspect serves as the basis of the financial section through the projected demand. There can be no discussion of profitability or of the other aspects of the study; if in the first place, there is no demand or market. Every business is practically aspiring for productivity but practically in order to last in the business world the first thing to take into consideration is the target market. The costumers will be the key factor to achieve the objectives of the organization. Finding opportunities and spotting the right market are both important in establishing a business. Knowing customer’s demand and supplying them right products at reasonable prices. Objectives a. to analyze the market demand and supply of the business , b. to define the target customer of the business through market segmentation, c. to determine the marketing strategies to be applied in the business, d. to determine the feasibility of the business , e. to determine the range of the business, f. to analyze and understand the complexities of the restaurant business.
Polytechnic University of the Philippines
12
FEASIBILITY STUDIES – KALYE OCHO
A. Demand It is very essential to know the demand of our products in order to answer our customer needs and wants. Knowing the demand will help us to determine the trend for our products. Analyzing the demand thoroughly will give the projection of the total number of quantity of each product that we are going to produce daily, weekly, monthly and annually. A.1. Past Demand A.1.1. For the Industry Since there is no statistical data recorded in NSO and DTI regarding the demand for streetfoods, past demand is computed by getting the target population in Parañaque City for the year 2006 – 2010 multiplied by market acceptability which is obtained by getting the percentage of respondents who are willing to eat streetfoods in a kiosk with 83.46% and multiplied to the frequency of agreement or the times the customers avail the products annually. It increases annually based on the annual growth of population of Parañaque City by 2.94% and based on the percentage of every products on the survey, we distributed the annual past demand to get the past demand for every products.
Year
M.A.
Target
F.O.A.
Population
Annual Demand
2006
83.46
159,344
75
11,529,309
2007
83.46
164,029
75
11,868,261
2008
83.46
168,851
75
12,217,166
2009
83.46
173,819
75
12,576,336
2010
83.46
178,929
75
12,946,023
Table 1 Past Demand for the Industry Past demand for industry or the whole streetfoods is computed by getting the target market population times the frequency of agreement. It increases annually based on the annual growth of population of Parañaque City by 2.94%
Polytechnic University of the Philippines
13
FEASIBILITY STUDIES – KALYE OCHO
A.1.2. for Every Product Since we determined already the computation for the industry, past demand for every streetfoods that the respondents usually eat are computed to the percentage of each products answered by the respondents multiplied to the annual past demand of industry.
Street Foods
Balut
Adidas
Chicken Skin
Fishball
Isaw
(4.51)
(4.01)
(7.02)
(15.79)
(7.77)
2006
449,834
399,963
700,184
1,574,916
774,991
2007
463,060
411,723
720,771
1,621,222
797,777
2008
476,672
423,826
741,960
1,668,881
821,229
2009
490,697
436,296
763,719
1,717,983
845,391
2010
505,123
436,296
786,244
1,768,489
870,245
Total
2,385,386
449,122
3,712,949
8,351,491
4,109,633
Calamares
Kwek-kwek
Pork Barbeque
Total
(14.04)
(23.56)
(23.30)
2006
402,955
2,349,907
2,323,974
9,974,138
2007
414,803
2,418,998
2,392,303
10,267,395
2008
426,997
2,490,110
2,462,630
10,569,228
2009
439,560
2,563,375
2,535,068
10,880,199
2010
452,482
2,638,734
2,609,614
11,200,060
Total
2,136,797
12,461,124
9,860,959
52,891,020
Year
Street Foods
Year
Table 2 Past Demand for the Products
Polytechnic University of the Philippines
14
FEASIBILITY STUDIES – KALYE OCHO
A.2. Projected Demand
A.2.1. For the Industry The annual increase of demand for the years 2011 – 2015 is based on the annual population growth rate from 2006 – 2010 by 2.94%. The annual projected demand was obtained by multiplying the market acceptability which is 83.43 to target population and to the frequency of agreement. Based from the obtained demand, it was distributed again to every product in order to determine its demand. The projected demand for industry in 2011 – 2015 is as follows: Year
M.A.
2011 2012 2013 2014 2015
83.46 83.46 83.46 83.46 83.46
Target Population 184,189 189,604 195,178 200,916 206,822 Table 3
F.O.A. 75 75 75 75 75
Annual Demand 11,529,309 11,868,261 12,217,166 12,576,336 12,946,023
Projected Demand for the Industry A.2.2. For the Products It is computed by multiplying the projected annual demand of industry to the percentage of each product based on the survey. Projected Demand Street Foods
Balut
Adidas
Chicken Skin
Fishball
Isaw
(4.51)
(4.01)
(7.02)
(15.79)
(7.77)
2011
519,972
462,325
809,357
1,820,478
895,827
2012
535,259
475,917
833,152
1,873,998
922,164
2013
550,994
489,908
857,645
1,929,090
949,271
2014
567,193
504,311
882,859
1,985,803
977,181
2015
583,866
519,136
908,811
2,044,177
1,005,906
Total
2,757,284
4,451,597
4,291,824
9,653,546
4,750,349
Year
Polytechnic University of the Philippines
15
FEASIBILITY STUDIES – KALYE OCHO
Street Foods
Calamares
Kwek-kwek
Pork Barbeque
Total
(14.04)
(23.56)
(23.30)
2011
1,618,715
2,716,305
2,686,329
11,529,309
2012
1,666,304
2,796,162
2,765,305
11,868,261
2013
1,715,290
2,878,364
2,846,600
12,217,166
2014
1,765,718
2,962,985
2,930,286
12,576,336
2015
1,817,622
3,050,083
3,016,423
12,946,023
Total
8,583,649
14,403,899
14,244,943
61,137,095
Year
Table 4 Projected Demand for the Products
A.3. Market Segmentation A.3.1.
Geographic
Location
: SM Bicutan
Climate
: Wet & Dry
Barangay
: Don Bosco
Region
: NCR
City
: Paranaque City
Density of the Area
: Urban
A.3.2.
Demographic
Age
: 10-24 years old
Gender
: Male & Female
A.3.3.
Psychographic
Personality
: Curious
Lifestyle
: Outgoing, Adventurous
Polytechnic University of the Philippines
16
FEASIBILITY STUDIES – KALYE OCHO
B. Supply Based on the percentage of the population who already availed street foods from our survey questionnaire, we determined our past supply.
B.1. Past Supply It was multiplied from the percentage of purchases which is 79.70%to the target population and to the frequency of agreement. The increase in supply was also based in the growth rate of population. It was also distributed per product to know the past supply.
B.1.1. For the Industry Year
Percentage of Purchases
Target Population
F.O.A
Annual Past Supply
2006
79.70
159,344
75
9,524,788
2007
79.70
164,029
75
9,804,833
2008
79.70
168,851
75
10,315,192
2009
79.70
173,819
75
10,390,031
2010
79.70
178,929
75
10,695,481
Table 5 Past Supply for the Industry B.1.2. For Every Products
Street Foods Balut
Adidas
Chicken Skin
Fishball
Isaw
Year 2006
429,568
381,944
668,640
1,503,964
740,076
2007
442,198
393,174
688,299
1,548,183
761,836
2008
465,215
413,639
724,126
1,628,769
801,490
2009
468,590
416,640
729,380
1,640,586
807,305
2010
482,366
428,888
750,823
1,688,816
831,039
Total
2,287,937
2,034,285
3,561,268
8,010,318
3,941,746
Polytechnic University of the Philippines
17
FEASIBILITY STUDIES – KALYE OCHO
Street Foods Calamares
Kwek-kwek
Pork Barbeque Total
Year 2006
1,337,280
2,244,040
2,219,276
9,524,788
2007
1,376,599
2,310,019
2,284,526
9,804,833
2008
1,448,253
2,430,259
2,403,439
10,315,192
2009
1,458,760
2,447,891
2,420,877
10,390,031
2010
1,501,646
2,519,855
2,492,047
10,695,481
Total
7,122,538
11,952,064
11,820,165
50,730,321
Table 6 Past Supply for the Products
B.2. Projected Supply The projected supply will help to determine the total satisfied market or the total number of customers who availed street foods for five years. It was obtained by percentage of purchases to the target population with 2.94% growth rate to the frequency of agreement and it was distributed per product to determine the total satisfied market for every product.
B.2.1. For the Industry Computation of projected supply for product is the same in past supply per product. It changed only in the target population based on the annual growth rate of 2.94%
Polytechnic University of the Philippines
18
FEASIBILITY STUDIES – KALYE OCHO
Year
Percentage of Purchases
Target Population
F.O.A
Annual Past Supply
2011
79.70
184,189
75
11,009,897
2012
79.70
189,604
75
11,333,578
2013
79.70
195,178
75
11,666,764
2014
79.70
200,916
75
12,009,753
2015
79.70
206,822
75
12,361,470
Table 7 Projected Supply for the Industry
B.2.2 For the Products
Street Foods
Balut
Adidas
Chicken Skin
Fishball
Isaw
2011
496,546
441,497
772,895
1,738,463
855,469
2012
511,144
454,476
795,617
1,789,571
880,619
2013
526,171
467,837
819,007
1,842,182
906,508
2014
541,640
481,591
843,085
1,896,340
933,158
2015
557,502
495,695
867,775
1,951,876
960,486
Total
2,633,003
2,341,096
4,098,379
9,218,432
4,536,240
Year
Polytechnic University of the Philippines
19
FEASIBILITY STUDIES – KALYE OCHO
Street Foods
Calamares
Kwek-kwek
Pork Barbeque
Total Supply
Year 2011
1,545,790
2,593,932
2,565,306
11,009,897
2012
1,591,234
2,670,191
2,640,724
11,333,576
2013
1,638,014
2,748,690
2,718,356,
11,666,765
2014
1,686,169
2,829,498
2,798,272
12,009,753
2015
1,735,550
2,912,362
2,880,223
12,361,470
Total
8,196,757
13,754,673
13,602,881
58,381,461
Table 8 Projected Supply for the Products
B.3. Competitors Analysis
The following are the competitors of the business: Mang Inasal(1) – Filipino type of restaurant catering chicken and pork barbeque as their main products. Zonyda(1) – Food stall located in hypermarket. It caters products like fishballs, kikiam, palamig, etc. Merienda Meal (SM Food Court) (1) – It caters kwek-kwek as well as pork barbeque. Streetfoods vendors (10) - There are lot of street vendors offering the same products that we cater such as chicken skin, kwek-kwek, isaw, pork barbeque, balut, fishball, adidas, and calamares.
Polytechnic University of the Philippines
20
FEASIBILITY STUDIES – KALYE OCHO
Zonyda
Mang
Merienda
Outside
Total
Annual
Inasal
Meals
Vendors
serving/
Supply/
day
pc
Products
In person
Fishball
400
-
-
3620
4020
1,467,300
146,730
Adidas
-
-
-
314
628
229,220
114,610
Chicken
-
-
-
2120
2120
773,800
128,966
Balut
-
-
25
240
265
96,725
96,725
Pork
-
117
32
380
529
193,085
193,085
Kwek-kwek -
-
250
4680
4930
1,799,450
449,862
Calamares
-
-
-
1130
1130
412,450
137,483
Isaw
-
-
-
610
610
222,650
111,325
14,232
5,680,914
1,378,786
Skin
Barbeque
Total
, Table 9 Competitors Products Analysis C. Demand Supply Gap Analysis This is necessary to determine Kalye Ocho’s market share. The gap or the unsatisfied market is obtained by subtracting the projected demand to the projected supply which shows the available market for street foods. It also shows the number of persons whom we need to supply to answer their demand for street foods. We now show the gap for every product using the data from projected demand and projected supply. Table 10 will show the demand, supply and gap per product as well as the overall total.
Polytechnic University of the Philippines
21
FEASIBILITY STUDIES – KALYE OCHO
Year
Demand
Supply
Gap
2011
11,529,309
11,009,897
519,412
2012
11,868,261
11,333,576
534,683
2013
12,217,166
11,666,765
550,402
2014
12,576,336
12,009,753
566,583
2015
12,946,023
12,361,470
584,553
Street Balut Foods Demand
Adidas Supply
Gap
Demand
Supply
Gap
Year 2011
519,972
496,546
23,426
462,325
441,497
20,828
2012
535,259
511,144
24,115
475,917
454,476
21,441
2013
550,994
526,171
24,823
489,908
467,837
22,071
2014
567,193
541,640
25,553
504,311
481,591
22,720
2015
583,866
557,502
26,364
519,136
495,695
23,441
Total
2,757,284
2,633,003
124,282
4,451,597
2,341,096
110,501
Supply
Gap
Street Chicken Skin Foods Demand
Fishball
Supply
Gap
Demand
Year 2011
809,357
772,895
36,462
1,820,478
1,738,463
82,015
2012
833,152
795,617
37,535
1,873,998
1,789,571
84,427
2013
857,645
819,007
38,638
1,929,090
1,842,182
86,908
2014
882,859
843,085
39,774
1,985,803
1,896,340
89,463
2015
908,811
867,775
41,036
2,044,177
1,951,876
92,301
Total
4,291,824
4,098,379
193,445
9,653,546
9,218,432
435,114
Polytechnic University of the Philippines
22
FEASIBILITY STUDIES – KALYE OCHO
Street Isaw Foods Demand
Calamares Supply
Gap
Demand
Supply
Gap
Year 2011
895,827
855,469
40,358
1,618,715
1,545,790
72,925
2012
922,164
880,619
41,545
1,666,304
1,591,234
75,070
2013
949,271
906,508
42,763
1,715,290
1,638,014
77,276
2014
977,181
933,158
44,023
1,765,718
1,686,169
79,549
2015
1,005,906
960,486
45,420
1,817,622
1,735,550
82,072
Total
4,750,349
4,536,240
214,109
8,583,649
8,196,757
386,892
Street
Kwek-kwek
Foods
Demand
Pork Barbeque Supply
Gap
Demand
Supply
Gap
Year 2011
2,716,305
2,593,932
122,373
2,686,329
2,565,306
121,023
2012
2,796,162
2,670,191
125,971
2,765,305
2,640,724
124,581
2013
2,878,364
2,748,690
129,674
2,846,600
2,718,356,
128,244
2014
2,962,985
2,829,498
133,487
2,930,286
2,798,272
132,014
2015
3,050,083
2,912,362
137,721
3,016,423
2,880,223
136,200
Total
14,403,899
13,754,673
649226
14,244,943
13,602,881 642062
Table 10 Demand Supply Gap Analysis
D. Market Share Analysis
Every business must determine their market share that will serve as basis of marketing strategies of the establishment. It will define the extent of market that we need to satisfy. Out of the total available market which is 4.72%, we made our capacity to supply based in our resources. We have 1 counter, 1 POS, 4 burners, and each product requires 12 minutes of preparation. Our store hours are just based to mall hours. And we
Polytechnic University of the Philippines
23
FEASIBILITY STUDIES – KALYE OCHO
got 220 persons as our capacity to supply per day and annually it is 80,300 which is 15.46% of the total available market as shown in the graph. Therefore market share is computed by dividing the capacity to supply to the available market. They all increase by 5% every year because of the promotional tactics provided by the business. Market Share of Kalye Ocho, 2011 – 2015 Street Foods Balut
Adidas
Chicken Skin
Fishball
Isaw
Year 2011
9,531
8,474
14,835
33,368
16,420
2012
9,811
8,723
15,271
34,349
16,903
2013
10,099
8,980
15,720
35,359
17,400
2014
10,396
9,244
16,182
36,399
17,911
2015
10,702
9,515
16,658
37,469
18,438
Total
50,539
44,936
78,666
176,944
87,072
Street Foods Calamares
Kwek-kwek
Pork Barbeque Total
Year 2011
29,670
49,788
49,239
211,325
2012
30,542
51,252
50,687
217,538
2013
31,440
52,759
52,177
223,934
2014
32,365
54,310
53,711
230,518
2015
33,316
55,906
58,289
240,293
Total
157,333
264,015
264,103
1,123,608
Table 11 Market Shares of Kalye Ocho
Polytechnic University of the Philippines
24
FEASIBILITY STUDIES – KALYE OCHO
Year
Projected Growth
Market Share
2011
5%
15.46%
2012
5%
16.23%
2013
5%
17.04%
2014
5%
17.89%
2015
5%
18.78%
Note: Capacity to supply annually: 80,300 persons Increase: 5% Table 12 Projected Market Share D.1. Projected Sales Projected sales where obtained by multiplying the price for solo meals and combo meals to our total servings per products. Our sales will increase by 5% based on our market share. Year
Growth Rate
Annual Sales
Monthly
Daily
2011
---
6,663,960
555,330
18,511
2012
5%
6,997,158
583,096.50
19,436.55
2013
5%
7,317,016
609,751.31
20,325.04
2014
5%
7,714,367
642,863.91
21,428.70
2015
5%
8,100,085
675,007.08
22,500.24
Table 13 Projected Sales
Figure 5 Breakdown of Markets
Polytechnic University of the Philippines
25
FEASIBILITY STUDIES – KALYE OCHO
E. Marketing Strategies E.1. Product Strategies Youth of today are fond of eating street foods. This will serve as the competitive advantage of of our business enable to penetrate to the market. The products of Kalye Ocho are as follow; Balut (4.51%), Adidas (4.01%), Chicken skin (7.02%), Fishball (15.79%), Isaw (7.77%), Calamares (14.04%), Kwek-kwek (23.56%) and Pork Barbeque (23.30%). The products will be cooked in its traditional way in able to maintain the original taste of these foods. But, presentation will be something different. Kalye Ocho wants to emphasize the importance of aesthetics, appearance and food preparation enable to attract customers as well as to achieve customers delight through safe and quality products. For takeout products it will be packed in a L.O plastic with disposable spoon and fork. E.2. Place Strategies Kalye Ocho will be located in the lower ground of SM Bicutan. Sm Bicutan is considered to be a strategic location for a business because it lies in the intersection of Parañaque and Taguig City. Though our scope is within Parañaque City there’s a possibility that people from Taguig City can also be our customers. Different high schools and universities such as AICS, DASNHS, PUPT, GCA , Goal Montessori etc. are all near SMBicutan. The location of the business will be accessible enough to meet the needs of our target market. Moreover, the place is also near Bicutan Market, People’s Market and other super markets where we can have easy access regarding the raw materials that we will be needed in regular operations and even on emergency operation. E.3. Pricing Strategies We used cost plus strategy in order to set the price of our products. The computation would be:
Purchase Cost + Operating Cost+ mark-up=Selling Cost
Polytechnic University of the Philippines
26
FEASIBILITY STUDIES – KALYE OCHO
E.4. Promotion Based on the responses on the survey, posters (32.58%), website (31.08%) and flyers (25.31%) are the top three advertising tools that our customers want us to use enable to reach them. E.4.1. Poster Posters will be placed in our store. The design of the poster can able to catch the attention of the customers because of the information provided as well as its aesthetic. Chosen colors are pleasing to the eye and will surely boost the interest of the customers to eat to our restaurant. Two (2) posters will be produced which are good for three (3) months. The computation would be: No. of pcs X Unit Price X No. of times per month 2
X
150
X
1
=
Php. 300.00
Figure 6 Kalye Ocho Poster
Polytechnic University of the Philippines
27
FEASIBILITY STUDIES – KALYE OCHO
E.4.2. Website We are now living in the modern world and surfing to the internet is one of the easiest ways to have quick access. The proponents will be using free website in order to reach wider range of possible customers. This will be of great help for them to know the concept behind Kalye Ocho. It will also provide good communication relations hip in ways that, we will be giving information and they will be giving comments and suggestions for product improvements and other concerns.
Figure 7 Kalye Ocho Unofficial Website www.wix.com/KalyeOcho/StreetfoodRestaurant
Polytechnic University of the Philippines
28
FEASIBILITY STUDIES – KALYE OCHO
E.4.3. Flyers Flyers can convey wide range of possible buyers for it can be brought to other places. The store will produce 200 flyers per day. These flyers will be distributed twice a week or eight (8) times in a month. Flyers will be given in the first three (3) months of the business until it will get its loyal customers The computation would be: No. of Pcs. X Unit Price X No. of times per month 200
X
8
X
8
=
Front
Php.12,800 Back
Figure 8 Kalye Ocho Flyer
Polytechnic University of the Philippines
29
FEASIBILITY STUDIES – KALYE OCHO
E.4.4. Gift Certificate Our store will be giving gift certificates worth fifty pesos (50.00) on the first day of operation of our business. The recipients of these certificates will be the first 100 customers of our store. F. SWOT Analysis Strengths The location of the business is accessible enough to meet our target market. The business will easily catch the interest of the customers for Filipinos are fond The restaurant has its unique characteristics in terms of foods being offered and other
features being presented
Kalye Ocho will provide alternative foods for those who want to be a spend thrift It provides modern communication tools including print ads and website that will enable to build a connection between the business and the customers Weaknesses The perception of some that street foods are unhealthy and unsafe Maintenance of special features of the store is quite costly. Opportunies Street foods are not normally presented in a typical restaurant and this will serve as an opportunity for the proponents to give a different impact or approach regarding the kinds of food we cater through safety and quality assurance The business would be the first restaurant that caters street foods in the location being chosen(SM Bicutan) Threats Well-known restaurants within the same vicinity will be the great competitors of the business. The business will be new in the market, it may easily have good market standing but it may encounter difficulty in terms of sustaining demand of the customers that may lead to its saturation point or declining stage.
Polytechnic University of the Philippines
30
FEASIBILITY STUDIES – KALYE OCHO
CHAPTER III TECHNICAL STUDY
After having determined the market size and area, product demand and growth, the potential and technical feasibility of the project may be analyzed. This stage deals with the allocation of resources that will be needed in order to satisfy the market. The technical soundness analysis will be considered complete if all pertinent technical aspect of the project have been taken into account in the analysis and if the planned construction or procurement conforms to accepted standards and practices. The estimated cost of the project should be as low as any other reasonably available alternate which would produce the intended results. The objective of this portion of the feasibility study is to determine to what extent the project meets the technical soundness criteria. Prior to projecting technical feasibility, the technical requirements of the project must be analyzed. This may be done by: A. Stating: The quantity and quality of products to be produced The specification of raw materials The supplies to be used The labor needed The utilities needed The waste disposal methods Transportation necessary Plant location Plant size and layout Machinery and equipments Production schedule Manufacturing process B. Providing estimates of total project cost and enumerating the major items of capital cost. C. Listing down in detail estimated production cost and overhead cost that will go into the operating of the proposed plan. D. Taking into consideration any majo r technological development in the industry which may affect the commercial or technical soundness of the project. Once the technical
Polytechnic University of the Philippines
31
FEASIBILITY STUDIES – KALYE OCHO
requirements have been prepared, the project proponent is ready to analyze technical feasibility. Objectives a. to identify the kind of service and variety of products the proposed business have including its description and procedure , b. to determine the process to be used in obtaining the products and how to distribute or deliver it to the market, c. to describe the geographical location of the business, d. to illustrate the store size and store layout of the business, e. to determine the supplies needed and all necessary machineries and equipments to be used in the operation of the business, f. to determine where to acquire the supplies a nd necessary utilities for the operation of the business, g. to define the human requirements and regulations of the business, h. to know the methods of waste disposal for the maintenance of the store. A. Product Description Kalye Ocho’s products are the top eight most in demand street foods in the Philippines. Based on the survey, majority of the respondents which is 37.09 % answered that they are aware regarding the safety and cleanliness of street foods. The image of these products is unhygienic because it is exposed on the different hazards especially physical hazards on the streets. The proponents would like to change this kind of perception by producing these street foods in a safe and clean manner. Standard sanitation procedures are the main consideration in producing a quality and safe products. And aside from that we would to emphasize that our products are nutritious.
Polytechnic University of the Philippines
32
FEASIBILITY STUDIES – KALYE OCHO
Figure 9 Our Products Polytechnic University of the Philippines
33
FEASIBILITY STUDIES – KALYE OCHO
Our products consist of different foods, drinks, side dishes, and desserts making a complete meal. Our main foods are streetfoods namely Kwek-kwek, Balut, Isaw, Fishballs, Calamares, Chicken Skin, Adidas and Pork Barbeque. It is sold individually by a specific number of pieces with one sauce and dip chosen by the customer and also can be served in a value meals with rice and drinks. The drinks of Kalye Ocho are Pineapple Juice, Iced Tea and Sago’t gulaman in 16oz. The desserts included are Halo -halo, Saging Con Yelo, Mais Con Yelo and Sorbetes which is available in sweet cone with two flavours to choose from (Ube and Cheese). Our Sauces and Dips are available into four kinds which are sweet, spicy, mayonnaise and vinegar. A.1. Product Pricing
Solo Orders
18
25
18
15
22
15
18
20
Combo Meals
35
42
39
35
42
39
35
42
Barbeque
Pork
Adidas
Skin
Chicken
Calamares
Fishballs
Isaw
Balut
Kwek-kwek
Streetfoods
Drinks Pineapple Juice
Iced tea
Sago’t Gulaman
18
18
18
Solo Order
Desserts and Side Dish Halo-halo
Solo Order
Polytechnic University of the Philippines
42
Saging
Mais Con
Con Yelo
Yelo
25
25
Sorbetes
15
34
FEASIBILITY STUDIES – KALYE OCHO
A.2. Product Preparation Guide A.2.1. Streetfoods
Figure 10 Adidas
Ingredients: (the quantity of the ingredients is according to number of streetfood(s) to be produced) 4pcs Chicken Feet Soy Sauce Vinegar Barbeque Sticks Water Oil Catsup Oyster Sauce Cooking procedure: 1. Wash the Chicken feet and cut the claws and trim off the hardened unwanted spot then nib the chicken feet with salt to clean it thoroughly then rinse it finally scald the chicken feet in hot boiled water for 5 minutes. 2. Put it in a tap water then remove the unwanted skin o f chicken feet. 3. Sauté the Chicken feet in onions, soy sauce, pepper and vinegar.
Polytechnic University of the Philippines
35
FEASIBILITY STUDIES – KALYE OCHO
Figure 11 Balut
Ingredients: (the quantity of the ingredients is according to number of streetfood(s) to be produced) 6 pieces balut, boiled 3 tbsp cornstarch 1 cup water 1 cup all-purpose flour 1/2 tsp salt 1/2 tsp ground black pepper 2 cups cooking oil Cooking procedure: 1. Put the cornstarch in a container and dredge the boiled chicken eggs. Set aside. 2. Combine all-purpose flour, salt, and pepper then mix thoroughly. 3. Dilute the annatto seeds in water until the reddish color comes out. Combine the liquid with the flour-salt-pepper mixture and mix thoroughly. 4. Put the boiled chicken eggs in the mixing bowl and coat with the batter. 5. Heat the pan and pour the cooking oil. 6. When the oil is hot enough, deep-fry the eggs until the coating is crispy. Use a serving spoon to scoop the eggs from the mixing bowl. 7. Remove the fried eggs from the pan and place in a serving plate. Polytechnic University of the Philippines
36
FEASIBILITY STUDIES – KALYE OCHO
Figure 12 Calamares
Ingredients: (the quantity of the ingredients is according to number of streetfood(s) to be produced) 1/2 lb large sized squid, cleaned and sliced into rings 3/4 cup all-purpose flour 1 piece raw egg, beaten 3/4 cup breadcrumbs 1 teaspoon salt 1/2 teaspoon ground black pepper 2 cups cooking oil Cooking procedure: 1. Combine squid, salt, and ground black pepper then mix well. Let stand for 10 minutes. 2. Heat a cooking pot the pour-in cooking oil. 3. Dredge the squid in flour then dip in beaten egg and roll over breadcrumbs. 4. When the oil is hot enough, deep-fry the squid until the color of the coating turns brown. Note: This should only take about 2 to 3 minutes in medium heat. Do not overcook the squid. 5. Remove the fried squid from the cooking pot and transfer in a plate lined with paper towels.
Polytechnic University of the Philippines
37
FEASIBILITY STUDIES – KALYE OCHO
Figure 13 Chicken Skin
Ingredients: (the quantity of the ingredients is according to number of streetfood(s) to be produced) 1kg Chicken Skin 1pack Chicken Breading 2 eggs 2 cups Cooking Oil Cooking procedure: 1. Wash the chicken skin and cut it into cubes. 2. Place the flavoured chicken breading in a bowl and dip the chicken skin 3. Heat the oil for deep fry in a deep frying pan until it turns golden brown for five minutes. 4. Remove and put in a serving plate
Polytechnic University of the Philippines
38
FEASIBILITY STUDIES – KALYE OCHO
Figure 14 Fishballs
Ingredients: (the quantity of the ingredients is according to number of streetfood(s) to be produced) 15 pieces boiled quail eggs 1 cup flour 3 tbsp cornstarch 1/2 cup water 1 tbsp anatto powder (pinulbos na atsuete) 1/2 tsp salt 1/2 tsp ground black pepper 2 cups cooking oil Cooking procedure: 1. Place the cornstarch in a container and dredge the boiled quail eggs. Set aside. 2. In a mixing bowl, combine flour, salt, and pepper then mix thoroughly. 3. Dilute the anatto powder in warm water then pour-in the mixing bowl with the other ingredients. Mix well. 4. Place all the quail eggs in the mixing bowl and coat with the batter. 5. Heat the pan and pour the cooking oil. 6. When the oil is hot enough, deep-fry the quail eggs by scooping them from the mixing bowl using a spoon. Make sure that each is coated with batter. 7. After a few minutes, remove the fried quail eggs from the pan and place in a serving plate. Polytechnic University of the Philippines
39
FEASIBILITY STUDIES – KALYE OCHO
Figure 15 Isaw
Ingredients: (the quantity of the ingredients is according to number of streetfood(s) to be produced) 1 lb chicken intestine (well cleaned) 1/2 cup vinegar 2 tbsp whole pepper corn 2 tbsp salt 4 to 6 pieces dried bay leaves 4 cups water Cooking procedure: 1. Pour the water in a cooking pot and bring to a boil. 2. Put-in the salt, whole pepper corn, and dried bay leaves. 3. Add the large intestines then simmer for a few minutes. 4. Add vinegar then simmer until the intestines are tender (about 30 minutes). Set aside until the temperature goes down. 5. Cut the intestines crosswise (about 1 inch in length). 6. Skewer the intestine (about 3 to 4 pieces per skewer). 7. Grill the intestine while basting with the mixture of cooking oil, banana catsup, and soy sauce.
Polytechnic University of the Philippines
40
FEASIBILITY STUDIES – KALYE OCHO
Figure 16 Kwek-kwek
Ingredients: (the quantity of the ingredients is according to number of streetfood(s) to be produced) 15 pieces boiled quail eggs 1 cup flour 3 tbsp cornstarch 1/2 cup water 1 tbsp anatto powder (pinulbos na atsuete) 1/2 tsp salt 1/2 tsp ground black pepper 2 cups cooking oil Cooking procedure: 1. Place the cornstarch in a container and dredge the boiled quail eggs. Set aside. 2. In a mixing bowl, combine flour, salt, and pepper then mix thoroughly. 3. Dilute the anatto powder in warm water then pour-in the mixing bowl with the other ingredients. Mix well. 4. Place all the quail eggs in the mixing bowl and coat with the batter. 5. Heat the pan and pour the cooking oil. 6. When the oil is hot enough, deep-fry the quail eggs by scooping them from the mixing bowl using a spoon. Make sure that each is coated with batter. 7. After a few minutes, remove the fried quail eggs from the pan and place in a serving plate. Polytechnic University of the Philippines
41
FEASIBILITY STUDIES – KALYE OCHO
Figure 17 Pork Barbeque Ingredients: (the quantity of the ingredients is according to number of streetfood(s) to be produced) 2 lbs pork, sliced 1/2 cup soy sauce Lemon juice from 1 piece lemon 1/2 cup banana ketchup 2 teaspoons salt 1 teaspoon ground black pepper 3 tablespoons brown sugar 8 cloves garlic, crushed and chopped Cooking procedure: 1. Combine pork, soy sauce, lemon juice, ketchup, salt, ground black pepper, brown sugar, and chopped garlic in a mixing bowl then mix the ingredients well. Make sure that all ingredients are properly distributed; using your hands in mixing the ingredients is recommended. 2. Marinate the pork in the mixture overnight. Make sure to refrigerate the marinade to avoid contamination. If in case you are so eager to grill right away, allow at least three hours for the meat to absorb the flavors. 3. Skewer the sliced pork using a bamboo skewer (this is also the same as the barbeque stick that we know). 4. Grill the pork until both sides are done. Use the leftover marinade as basting sauce. Try adding few tablespoons of soy sauce, ketchup, and a tablespoon of cooking oil to create the perfect basting sauce.
Polytechnic University of the Philippines
42
FEASIBILITY STUDIES – KALYE OCHO
A.2.2. Drinks
Figure 18 Iced Tea
Ingredients: (per serving) 360g tea powder 1l cold water 7l purified water Serving procedure: 1. Dissolve iced tea powder in 1 liter cold water. 2. Put the solution in the dispenser. 3. Add 7l of purified water. 4. Serve and enjoy.
Polytechnic University of the Philippines
43
FEASIBILITY STUDIES – KALYE OCHO
Figure 19 Pineapple Juice
Ingredients: (per serving) 1 can pineapple mixture 1l cold water 7l purified water Serving procedure: 1. Put 1 can of pineapple mixture in the dispenser. 2. Add 7l of purified. 3. Stir it well. 4. Make 22 glasses. 5. Serve and enjoy.
Polytechnic University of the Philippines
44
FEASIBILITY STUDIES – KALYE OCHO
Figure 20 Sago’t Gulaman
Ingredients: (per serving) 4 tablespoon sago 4 tablespoon gulaman 1 tablespoon Vanilla 3 tablespoon syrup 2 to 3 ice cubes Serving procedure: 1. For each serving put approximately 4 tablespoon of chilled sago and gulaman into a tall glass. 2. Add 1 tablespoon of Vanilla and 3 tablespoon of syrup or more according to taste and mix it well. 3. Add 2-3 ice cubes
Polytechnic University of the Philippines
45
FEASIBILITY STUDIES – KALYE OCHO
A.2.3. Desserts
Figure 21 Halo-halo Ingredients: (per serving)
1tablespoon: Pinipig
Nata
Beans
Ube
Langka
Macapuno
Kaong
Sugar
1 cup crushed ice ¼ cup evaporated milk 2 scoop ice cream (Ube and Cheese) Leche Flan Serving procedure: 1.
Combine the first eight ingredients.
2.
Add sugar.
3.
Filled with crushed ice.
4.
Put evaporated milk.
5.
Top with two scoops of ice cream and leche flan.
Polytechnic University of the Philippines
46
FEASIBILITY STUDIES – KALYE OCHO
Figure 22 Mais Con Yelo
Ingredients: (per serving)
½ cup corn 1 cup ice 3 tablespoon cornflakes ¼ cup milk 1 tablespoon sugar Serving procedure: 1.
Put corn inside the glass.
2.
Add shaved ice and milk.
3.
Put another layer of corn.
4.
Sprinkle with corn flakes.
Polytechnic University of the Philippines
47
FEASIBILITY STUDIES – KALYE OCHO
Figure 23 Saging Con Yelo
Ingredients: (per serving) 2pcs saba 1 tablespoon brown sugar 1 teaspoon banana essence 1 cup ice ¼ cup evaporated milk Serving procedure: 1. Cut the saba into ½ inch. 2. Put it into the serving bowl with the brown sugar and banana essence . 3. Add the cup of ice. 4. Add the evaporated milk and add the remaining saba on the the bowl.
Polytechnic University of the Philippines
48
FEASIBILITY STUDIES – KALYE OCHO
Figure 24 Sorbetes
Ingredients: Selecta Ice Cream Cone (sweet cone or ordinary cone) Serving: -
3 scoop of ice cream in a cone
Polytechnic University of the Philippines
49
FEASIBILITY STUDIES – KALYE OCHO
A.3. Time Motion Study Customer will go to the store, choose product and fall in line with the counter (50 sec) Counter will take the order(24 sec) Call the order, receive payment, and give change if any(25 sec) Product preparation (5 min) Assemble the order(1 min) B. Business Process The Kalye Ocho Fast food restaurant will be open during mall hours from 10:00 am in the morning to 9:00 pm in the evening. The personnel and assigned service crews for the opening must be at the store one (1) hour before the Fast food is about getting the customer’s orders to prepare the products being sold on that time. Then there is a set process for every order on the menu. The customers will fall in line to the counter to give orders then the service crew will take the orders. C. Business Location D.1. Vicinity Map
Figure 25 Vicinity of Paranaque
Polytechnic University of the Philippines
50
FEASIBILITY STUDIES – KALYE OCHO
D.2. Floor Plan
Figure 26 Floor Plan Measurements
The total area of our space in Sm Bicutan is measured 15 by 15 feet. The whole area is divided into two portions namely the production area and the counter area.
The Production Area, where the foods are processed and stored is composed of: Fry Area – where the Balut, Kwek-kwek, Chicken Skin, Fish Balls and Calamares are cooked. Grill Area – where the Pork Barbeque, Isaw, and Adidas are grilled. Soda Area – where the drinks and desserts are prepared Packing Area – where the foods are arranged and packed. Dishwashing Area – where the tablewares and kitchen utensils are cleaned. Storage – where the supplies and raw materials are stored.
Polytechnic University of the Philippines
51
FEASIBILITY STUDIES – KALYE OCHO
The Counter Area, where the transactions are made is consisting of: Food Display, where the products are shown. One Point of Sale Machine (POS) Mini workspace for record keeping made up of office equipment like computer, telephone, etc.
Figure 27 Floor Plan Details
Polytechnic University of the Philippines
52
FEASIBILITY STUDIES – KALYE OCHO
D. Machineries and Equipment
Description
Function
Used to input
Quantity
Unit
Total
Cost
Cost
1
16,200
16,200
1
15,500
15,500
1
2,699.00
2,699.00
sales and keep the money safe
POS System
Used to store and record data Computer Set
A secure space where money, val uables, records, and documents can be stored Vault
Polytechnic University of the Philippines
53
FEASIBILITY STUDIES – KALYE OCHO
Description
Function
Quantity
Unit
Total
Cost
Cost
1
500
500
1
10,245
10,245
12,652
12,652
1,250
1,250
For communication and business Telephone
transaction purposes
Stores perishable goods and use for cooling purposes Freezer
A cooling apparatus use to reduce the rate of
1
spoilage of foodstuffs Refrigerator
Used to grill barbeque, isaw,
1
adidas etc.
Polytechnic University of the Philippines
54
FEASIBILITY STUDIES – KALYE OCHO
Grill Description
Function
Quantity
Unit
Total
Cost
Cost
1
542
542
1
620
620
2
3,868
3,868
A device used to crushed ice for cold food servings Ice Crusher
Sucks hot air out of the kitchen to create proper ventilation
Exhaust Fan
Kitchen appliance designe d for the purpose of cooking food
Heavy Duty Burner
Polytechnic University of the Philippines
55
FEASIBILITY STUDIES – KALYE OCHO
Description
Function
Quantity
Unit
Total
Cost
Cost
1
249.00
249.00
1
2,261.00
2,261.00
758.00
758.00
A measuring instrument for determining the weight or mass of an object
Weighing scale
A kitchen appliance used for baking, broiling, roasting microwave oven
and heating food
An apparatus used in mixing flour and other
1
ingredients
Polytechnic University of the Philippines
56
FEASIBILITY STUDIES – KALYE OCHO
Flour Mixer Description
Function
Quantity
Unit
Total
Cost
Cost
1
2,095.00
2,095.00
1
2,410.00
2,410.00
A self-contained tabletop kitchen appliance for cooking rice
Rice Cooker
A device containing a fan that hangs above the stove or cook top in the kitchen used to remove smoke, odors, heat, and steam from the air Range Hood
Polytechnic University of the Philippines
57
FEASIBILITY STUDIES – KALYE OCHO
E. Utensils Description
Function
Quantity
Unit
Cost
Cost
A bowl- shaped kitchen utensil with holes in it Colander
2
260.00
520.00
use for draining.
Used primarily to measure the volume of liquid or bulk solid cooking
2
54.00
108.00
1
39.00
39.00
ingredients such as flour and sugar
Measuring Cup
Used to grate foods into fine strips or crumbs
Grater
Polytechnic University of the Philippines
58
FEASIBILITY STUDIES – KALYE OCHO
Description
Function
Quantity
Unit
Cost
Cost
A filter to retain larger pieces while small pieces
2
40.00
80.00
1
250.00
250.00
2
89.00
178.00
and liquid pass Strainer
through
A kitchen utensil design to fry, to sear, and to sautè and food Frying Pan
A kitchen utensil used as a surface on which to cut or slice things Chopping Board
Polytechnic University of the Philippines
59
FEASIBILITY STUDIES – KALYE OCHO
Description
Function
Quantity
Unit
Cost
Cost
A kitchen tools used to cut different kinds of
1
100.00
100.00
23.00
69.00
39.00
117.00
foods Kitchen Knives Set
A kitchen tool for
3
handling food items on a grill
Tong
Used in food preparation to measure, mix, stir
3 dozen each
and toss Spoon and Fork
ingredients; primary utensil used for eating
Polytechnic University of the Philippines
60
FEASIBILITY STUDIES – KALYE OCHO
Description
Function
Quantity
Unit
Cost
Cost
A hard-held tool that is used for lifting, flipping or
3
35.00
105.00
2 dozen
96.00
192.00
spreading Spatula
substances
A round vessel that is open at the top; used chiefly for holding food or Bowl
liquids
A broad, mainly flat vessel on
144.00
432.00
which food is served
3 dozen
Plate
Polytechnic University of the Philippines
61
FEASIBILITY STUDIES – KALYE OCHO
Description
Function
Quantity
Unit
Cost
Cost
An open metal, ceramic, or plastic container with
2
45.00
90.00
1
39.75
39.75
sloping sides, Basin
typically used for holding water or washing
Food preparation utensil used to slice peeled, hardEgg Slicer
boiled eggs quickly and evenly
Polytechnic University of the Philippines
62
FEASIBILITY STUDIES – KALYE OCHO
Description
Function
Quantity
Unit
Cost
Cost
Used to hold water for drinking purposes
3
49.00
147.00
2
360.00
720.00
2
450.00
900.00
Pitcher
Deep dish used both in the oven and as a serving vessel Casserole
Kitchen appliance used for deep-frying
Deep Fryer
Polytechnic University of the Philippines
63
FEASIBILITY STUDIES – KALYE OCHO
Description
Function
Quantity
Unit
Cost
Cost
It has sharp metal edges that cut perfectly round
2
30.00
60.00
Quantity
Unit
Cost
balls from even Ice Cream Scooper
the hardest ice cream
F. Furniture and Fixtures Description
Function
Cost
Generally comfortable and adjustable 1
300.00
600.00
3
325.00
975.00
type of chair that is designed for use at a desk in Office chair
an office
For better ambiance
Fluorescent Light
Polytechnic University of the Philippines
64
FEASIBILITY STUDIES – KALYE OCHO
Description
Function
Quantity
Unit
Cost
Cost
Built-in furniture installed in many kitchens for storage of food,
1
2,460.00
2,460.00
Quantity
Unit
Cost
cooking Kitchen Cabinet
equipment, and often silverware and dishes for table service
G. Supplies
G.1. Office Supplies Description
Function
Cost
Used in writing important details or documents 3
5.00
15.00
Ballpen
Polytechnic University of the Philippines
65
FEASIBILITY STUDIES – KALYE OCHO
Description
Function
Quantity
Unit
Cost
Cost
Used for computation
Calculator
2
50.00
100.00
1
45.50
45.50
Used for recording and reference purposes Logbook
Used to compile files
1
29.75
29.75
Stapler
Used for stapler
3boxes
5.75
17.25
Staple wire
Polytechnic University of the Philippines
66
FEASIBILITY STUDIES – KALYE OCHO
Description
Function
Quantity
Unit
Cost
Cost
Used to provide receipt to the customers
5
32.00
160.00
1ream
232.00
232.00
Quantity
Unit
Total
Cost
Cost
10.00
50.00
Thermal paper
Used for documentation purposes
Bond paper
G.2. Sanitary Supplies
Description
Function
A piece of textile used to hold hot kitchen Pot Holder
Polytechnic University of the Philippines
equipment like
5
pots and pans
67
FEASIBILITY STUDIES – KALYE OCHO
Description
Function
Quantity
Unit
Cost
Cost
Used to dry hands and for sanitation purposes
5
10.00
50.00
12
8.00
96.00
2
25.00
50.00
Cleaning towel
Used to scrub plates and utensils.
Sponge and Scrub
Used to clean plates and other utensils
Dishwashing Liquid
Polytechnic University of the Philippines
68
FEASIBILITY STUDIES – KALYE OCHO
Description
Function
Quantity
Unit
Cost
Cost
Used to wipe wet floor
1
95.00
1
45.00
1
45.00
95.00
Mop
Used to sweep the floor 45.00
Broom
Used to collect dust and waste 45.00
Dust pan
Polytechnic University of the Philippines
69
FEASIBILITY STUDIES – KALYE OCHO
Description
Function
Quantity
Unit
Cost
Cost
Disinfectant use to maintain the cleanliness of the hands before and
1
125.00
125.00
8
24.00
192.00
after eating Hand Sanitizer
For sanitary purposes
Tissue paper
Polytechnic University of the Philippines
70
FEASIBILITY STUDIES – KALYE OCHO
H. Store Uniforms
Figure 28 Uniforms for Male Crews
Figure 29 Uniforms for Female Crews
Polytechnic University of the Philippines
71
FEASIBILITY STUDIES – KALYE OCHO
Figure 30 Uniforms for Male Store Managers
Figure 31 Uniforms for Female Store Managers
The uniforms will be worn during store hours. The uniform for employees costs P580 while the uniform for the store manager costs P700 both will be deducted from their own salaries.
Polytechnic University of the Philippines
72
FEASIBILITY STUDIES – KALYE OCHO
I. Utilities Requirements I.1.Electricity It is one of the primary utility requirements of a restaurant business. Kalye Ocho will greatly need this for its proper and smooth operations and for the busi ness to carry out their special features such as the videoke. This will also set the atmosphere of the restaurant for its proper lighting and ambience. The store electricity will be provided by the SM Bicutan management for it is included at their monthly rental payment of the restaurant. I.2. Water Supply As the restaurant executes its operations, it needs a good water supply in order for them to continuously do their job and tasks. A good water supply can able them to perform tasks such as cleansing the raw materials, as an ingredients to the dishes and cleansing of the kitchen utensils, machines, and equipment, and the overall store to ensure safety of the customers. Water Supply payment will also be provided by the SM Bicutan Management included in the monthly rental fee. I.3. Telecommunications Telecommunications is a form of communication that is said to be indespensible to the duration of a business of Kalye Ocho, as one of newest in the market, need these so called telecommunications in order to have a clear and proper negotiation with suppliers and
especially
with
the
customers
regarding
their
feedbacks,
suggestions,
recommendation and other customer concerns that can might help and contribute to the business growth, development and profitability. I.4. LPG This is very essential to our business because all of our products require LPG for efficient production. This will be available in various dealers in Parañaque.
Polytechnic University of the Philippines
73
FEASIBILITY STUDIES – KALYE OCHO
J. Waste Disposal Method Our customers are always our priority. We would like to give them a one hundred percent satisfaction and the maintenance of cleanliness in all areas of our store is included in the customer requirements. So, Kalye Ocho encourages all the members of the organization especially we are in the food industry to strictly comply with the set of standards in cleanliness specifically with the proper disposal of waste. Kalye Ocho will provide two big trash bins in the kitchen area with cover and proper label for segregation will be observed to assure the safety on the preparation of our products. There will be one small trash bin in the counter area as well as in the office. And there will also two big trash bins in the dining area with cover and proper label for segregation for the dining crew to easily clean all the tables after our customer goes out. The accumulated garbage per day will be collected by the utility man of SM Supermalls. This kind of system will be continually observed in our day to day operation. K. Direct Labor Requirements People are considered to be the lifeblood of any business organization. They are very important for the business to operate effectively and efficiently. Kalye Ocho will need a full time employee. In our operation, we need a total number of manpower in our restaurant, nine (9) for opening shift and eleven (11) for the closing shift. They are the ones who will perform the functions of following positions: Manager
1
Service Crew
2
Kitchen Steward
8
Total Number
11
Note: The five managers are the partners of the business. They are the ones who will perform the managerial and supervisory functions of the business.
Polytechnic University of the Philippines
74
FEASIBILITY STUDIES – KALYE OCHO
K.1. Work Schedule Store Hours: 10:00am to 9:00pm Hours of Operation: 13 hours of operation 21 Employees are needed in daily operation
Legend: RD = Rest Day OP = Opening (9 – 3pm) MS = Mid Shift (11 – 5pm) CL = Closing (3 – 9pm) BT (15mins)
Employees
Mon
Tue
Wed
Thu
Fri
Sat
Sun
Store
OP-CL
RD
OP-CL
OP-CL
OP-CL
OP-CL
OP-CL
Grill 1
RD
OP-CL
CL
OP
CL
OP
CL
Grill 2
OP-CL
RD
OP
CL
OP
CL
OP
Bartender
OP
OP-CL
RD
CL
OP
CL
OP
CL
RD
OP-CL
OP
CL
OP
CL
Fry 1
RD
OP
OP
OP
OP
OP
OR
Fry 2
OP
RD
CL
CL
OP
OP
OP
Fry 3
CL
CL
RD
CL
CL
CL
CL
Fry 4
CL
CL
CL
RD
CL
CL
CL
Cashier 1
RD
OP
OP
OP
OP
OP
OP
Cashier 2
OP
RD
CL
CL
OP
OP
OP
Total
8
6
9
10
11
11
11
Manager
1 Bartender 2
Table 14 Work Schedule
Polytechnic University of the Philippines
75
FEASIBILITY STUDIES – KALYE OCHO
CHAPTER IV MANAGEMENT STUDY
Management is one of the important aspects in establishing a business. It is the performance of conceiving and achieving desired results by means of group effort consisting of utilizing human talents and resources. Therefore, management is considered as the force that runs an enterprise and is responsible for its success or failure. The overall implementation plan is discussed in the organization and management study. This aspect includes a study of the officers and key personnel, basic consideration in forming the organization, form of ownership, organizational chart and project schedule. The objective of the management aspect of a feasibility study is to determine the option effectiveness of the organizational setup and the qualifications of the individuals who will make up the organization. This aspect will determine the successful realization of the project study. Objectives: The study will cover different issues, actions and ideas on how the researchers will manage their business. The following objectives will clear what this all about. a) to determine the form of the proposed business, b) to analyze the organization and management aspect of the business , c) to introduce or present the exact capitalization of the business, d) to identify requirements and qualification, duties and responsibilities and salaries and benefits of the business manpower, e) to illustrate and clearly discuss the flow of authority and the policies that will serve as guide of the entire business. A.
Form of Ownership The type of business is a partnership. It is to be registered with the Securities and
Exchange Commission (SEC) for the contract called articles of co-partnership. By the contract of partnership, two or more persons bind themselves to contribute money, property and industry with the intension of dividing the profits among themselves. Kalye Ocho as partnership will be registered with the different government agencies as Securities and Exchange Commission (SEC), Department of Trade and Industry (DTI),
Polytechnic University of the Philippines
76
FEASIBILITY STUDIES – KALYE OCHO
Business Permit and Licensing Office of Paranaque (BPLO), Bureau of Internal Revenue (BIR) and Social Security System (SSS). The project will have its full blast after it has complied with all the necessary documents and technical requirements needed to operate and engage in this type of business. The pre-operating capital for this business will be P800,000 each partners total of P4,000,000. B.
Vision, Mission, Core Values
B.1.
Vision
To be the first and the largest restaurant in the Philippines to cater street foods heading towards product innovation, quality management and 100% customer satisfaction.
B.2.
Mission
We shall: Commit ourselves in building customer loyalty and confidence by innovating and emphasizing the highest level of safety and quality in product management. Cultivate resources to provide community services through employment and sponsorships. Strictly implement the policy of observing the highest quality of standard to ensure the hazard-free environment. B.3.
Core Values
T – eamwork – Working out together to achieve common goal. E – xcellence – Giving our best in every situation we encounter. C – ustomer Service Oriented – Giving focus to our customers. H – ospitality – Providing friendly service. N – eutrality – Making every situation at its balance. O – rderliness– Systematic and organized procedures
Polytechnic University of the Philippines
77
FEASIBILITY STUDIES – KALYE OCHO
C.
Capitalization
Partners
Type of Partner
Capital
Souces of Capital
Mera Vernadeth Ricohermoso
Industrialist-Capitalist
800,000
Cash Payments from Rentals and Personal Savings
Loveleen Villanueva
Industrialist-Capitalist
800,000
Retirement of Family Member and Personal Savings
Rachel Almontero
Industrialist-Capitalist
800,000
Personal Savings
Alfie Acabo
Capitalist
800,000
Sale of Land
Jerald Angelo Juatco
Capitalist
800,000
Cash from parents and Personal Savings
D.
Organizational Chart
Figure 32 Organizational Chart
Polytechnic University of the Philippines
78
FEASIBILITY STUDIES – KALYE OCHO
Our business chose the functional type of organization. This is one of the most commonly used type of organizational structure which all activities in the firm are group together according to certain functions like production, marketing, service and administrative. This is the best structure that will fit to our over-all operation. This is quite complex but effective and efficient for every partners and employees of the organization since the work is divided into specialized functions. There is also a direct flow of authority but may associate or collaborate to other managers for the betterment of the business and there is also a mutual relationship between them. The specialists must be consulted before any decision is taken no matter relating to his specialized area. The managers can totally focus on his tasks and can perform managerial activities well.
This type of structure can be applicable for a long time as long as it fits in the business since it offers a greater scope for expansion as compare to line type of organization. It does not face the problem of limited capabilities of a few line of managers facilitates better control and supervision in the business firm. Despite of the disadvantages of this type which are the confusion and conflict in roles and responsibilities, it still our choice for it can supervise a large number of subordinates while in line type, it can only supervise a limited number of subordinates and this is more efficient in accomplishing task and there is teamwork and cooperation of all members of the organization. We used it as our consideration in choosing our organizational structure is the size of our business.
E.
Manpower Requirements It is very vital in all business organization to know their manpower requirements to operate systematically and effectively at all times. It will help also to determine the capacity or capabilities of the employees to fit in the flow of business as well as to have a clear duties and responsibilities. Having standard qualifications in hiring and selecting, the employee will establish efficient business operations.
Polytechnic University of the Philippines
79
FEASIBILITY STUDIES – KALYE OCHO
Position
Store Manager
Job Description
Job Specification
Responsible for the
College graduate of as
overall supervision of
4-year Management
all other managers and
degree
subordinates.
At least 2 years of
Responsible for the
managerial experience
administration of all
and has a higher
the management
degree of academic
functions – planning,
preparation
organizing, controlling
With pleasing
and directing
personality
Handles the
24-25 years old, male
implementation of the
or female
policies, rules and
Highly intelligent and
regulations throughout
ve4ry good in decision
the organization.
making
Monitors the
Creative and
performance of his
imaginative
subordinates.
Hardworking and good
Responsible for the
in handling people
overall ongoing
Good communicative
production operations
skills
including inventory control, scheduling, documentation, equipment maintenance, calibration, shipping, and Quality Control/Food Safety Inspection
Polytechnic University of the Philippines
80
FEASIBILITY STUDIES – KALYE OCHO
Kitchen Steward
Ensures the quality
College graduate of
of products and all
4-year course in
the food standards
Accountancy or any
are met
related course
Responsible for the
At least 1 year
cleanliness of all
working experience
the kitchen tools
related in handling
and equipments
money
Ensures the
22-30 years old,
maximum level of
male or female
performance of the
Good
machines and
communication
equipments
skills
Minimizes the
Computer literate,
wastage of raw
knowledge in
materials in
accounting software
production
is advantage
Responsible for the safety of food and elimination of hazardous elements
Counter/Cashier
Polytechnic University of the Philippines
Greet customers
At least high school
politely at all times
graduate
Performs the seven
18-21 years old,
key steps in every
male
transactions with
With working
the customers
experience in any
Ensures good
fast food or
customer relations
restaurant
by giving friendly
Hardworking and
service to them
with high level of
81
FEASIBILITY STUDIES – KALYE OCHO
Counter/Cashier
Handles
work discipline
(Continuation)
money/sales
Fast in
properly
accomplishing task
Eliminate loss of
and can do multi-
the store by
tasking
accurately receiving payment and giving of change
F.
Employment Process Applicants will be passing an application form or resume with 2x2 colored photo to the administrative manager. The administrative will analyze the contents of the resume and will call the applicant for the initial examination if interpreted to be satisfactory. The manager will provide an initial exam which contains basic and abstract questions. If the applicant passed the initial exam, he will be provided a reviewer containing the menu of Kalye ocho as well as their corresponding descriptions. The applicant will be asked to return after three days for three final exam based on the reviewer provided. If the applicant passed the final exam, he will be immediately interviewed for final screening. After the final interview, if passed, will be given the list of requirements to be complied for a specific period of time. After compliance of all the requirements, the applicant will be scheduled for orientation together with the other applicants. After the applicants are oriented, they will be trained for one week regarding the operations of the business applying the basic principles of the company.
Polytechnic University of the Philippines
82
FEASIBILITY STUDIES – KALYE OCHO
G.
Legal Requirements G.1. Municipality of Parañaque Business Permit Barangay Business Clearance Lease Contract Locational Clearance Picture of Establishment Fire Clearance Sanitary Permit G.2. BIR 2316 Form 1702 Form 1903 Form 1907 Form G.3. SSS R-5 R-1 R-1A G.4. DTI Application for Partnership Business Name Registration Form G.5. SEC Articles of Partnership Registration Data Sheet G.6. FDA Petition to open a food establishment RA 3720 Checklist for food establishment
Polytechnic University of the Philippines
83
FEASIBILITY STUDIES – KALYE OCHO
H.
Organizational Policies and Procedures Discipline is the primary concern of the organization for the attainment of the
productivity and efficiency that will lead to the organizational and personal growth. All of the employees as well as the general partners are expected to behave ethically at all times. H.1.
Employment
It is the company’s policy to select applicants based on the following factors: Mental aptitude Social skills Physical fitness Strength and weaknesses Experience As such only applicants who passed the qualifying examinations, series of interviews, medical examinations and background investigations shall be considered for employment. H.1.1. Employment Requirements a. 2 pieces 2x2 pictures b. 2 pieces 1x1 pictures c. NSO Authenticated Birth Certificate d. NBI and Police Clearance e. SSS Number f. TIN Number g. Drug test h. Medical examination i. Barangay Clearance j.
Working Permit
k. Health Card
Polytechnic University of the Philippines
84
FEASIBILITY STUDIES – KALYE OCHO
H.2.
Classification of Employees
G.2.1. According to Rank a. Managerial Employee – One who is vested with powers or prerogatives to lay down and execute management policies and/or hire, transfer, suspend, lay off, recall, discharge, assign or discipline employees. b. Supervisory Employees – One, who, in the interest of the employer, effectively recommend such managerial actions if the exercise of such authority is not merely routinary or clerical in nature but requires the use
of
independent judgment. c. Rank-and-file employee – all other employees not falling within any of the above definitions. G.2.2. According to Status a. Contractual or Seasonal – An employee is hired for a specified period of time under an agreement prior to or at the time of employment. b. Probationary – an employee is hired on a probationary basis for a period not to exceed six (6) months. c. An employee is hired on a regular status upon satisfactory completion of the probationary period and upon satisfaction of the criteria necessary for appointment as regular status. The company reserves the right to amend the above classification or create sub classifications as the circumstances of the business may require. H.3.
Orientation
All newly hired employees regardless of classification of rank and status must undergo on orientation and indoctrination as to the Company’s vision, mission, policies, rules and regulations, duties and responsibilities and menu familiarization.
Polytechnic University of the Philippines
85
FEASIBILITY STUDIES – KALYE OCHO
H.4.
Personnel Records
It is the responsibility of the company to update and maintain personnel records. It should contain the following document and records: Resume with 2x2 colored photo Test results Interview impressions Mayor’s permit and health certificate (to be renewed every cale ndar year) Transcript of records TIN,SSS,PHIC,HDMF numbers Employment contracts Performance Evaluation forms Certificate of trainings attended Leave and violation records Others If there are changes in an employer’s personal data such as residence address, civil status, dependents, etc, a report should be made for updating purposes. Withholding information and failure to report will result in willful breach of trust wherein continuance of service will be questioned.
H.5.
Contracts of Employment
All employees shall duly sign, execute and deliver the corresponding Contract of Employment. All employees shall there after be issued a company identification card, which must be worn at all times during working hours.
H.6.
Work Schedule
It is the policy of the company to provide appropriate work hours without violating the mandated rest days. As such, the company requires all employees to follow the six (6) hours working shift, including one-hour break assigned to them.
H.7.
Tune Keeping
The Kalye Ocho Points Of Sales system is the official time indicator. All employees are required to use the POS system to accurately record times of arrival and departure.
Polytechnic University of the Philippines
86
FEASIBILITY STUDIES – KALYE OCHO
Swipe cards will be issued to the employees on the first day of work. Swipe card will be used to register the time of arrival, break and departure on the basis for payroll. Employees should swipe out before taking their meal breaks and swipe in after taking their meal breaks. Employees who forget to swipe in or out shall be charged as AWOL for the entire shift. H.8.
Attendance and Punctuality
Attendance and punctuality are important qualities that the company expects from its employees. They are the factors that determine an employee’s efficiency and reliability. His presence is necessary for the smooth flow of work at the start of the business hours.
H.8.1. Attendance Every employee shall ask written permission from the Store Manager or
Department
Head, before taking the leave of absence. a. Unscheduled Absences Employees must file an application for absence for at least one (1) week ahead to Store Manager or Department Head b. If employee incurred sickness and cannot report for work, he must call his supervisor or manager at least two (2) hours before his duty. If no calls were received on the day of his absence or his call came in late, this will be considered as AWOL. Upon return to work, he must file an absence slip with medical certificate attached for signature and approval of Store Manager or Supervisor c. Emergency Leave If employees must go on emergency leave, he must file an absence slip immediately. Attached to the absence slip must be documents justifying his reason for going on emergency leave. An employee who is absent from work without written approval is subject to penalties. An employee who is absent without official leave for five consecutive days is considered to have abandoned his work and therefore subject to outright dismissal from the company.
Polytechnic University of the Philippines
87
FEASIBILITY STUDIES – KALYE OCHO
Undertime is allowed on a case-to-case basis and only if approved by the Store Manager. Undertime hours shall be automatically deducted from the salary of the employees concerned. H.8.2. Punctuality It is the policy of the company to discourage tardiness as this affects the morale of the punctual employees as well as the operations of the business. Tardiness shall mean coming to work past the required starting time. It also means failure to go back in the workplace immediately after break periods. Heavy traffic, oversleeping , personal reasons, etc. do not constitute justification for late arrivals. Only three (3) tardiness are allowed within one month. In excess of this, an employee is subject to disciplinary action. Arrival in the workplace two hours after scheduled time will be sufficient ground to consider an employee as absent for half day. Tardiness shall be chargeable directly against basic pay. H.9. Personnel Movement and Performance Evaluation It is management’s prerogative to assign, transfer, reclassify, promote or demote its employees accordingly based on merit and performance. Thus, employees are continuously evaluated as to their performance, work attitude, productivity, honesty and diligence and may be served as bases for management’s decisions on personnel movement. Performance evaluation shall be done to every employee on his 3rd, 4th, and 5th month. For regular employees, performance evaluation shall be done twice a year every May and November of a calendar year. H.10. Separation from Service
H.10.1. Voluntary Resignation In case an employee intends to resign, he/she must give a one-month prior notice to the management and must comply with all the clearance requirements; otherwise the employee shall forfeit whatever remaining compensation due to him.
Polytechnic University of the Philippines
88
FEASIBILITY STUDIES – KALYE OCHO
H.10.2. Termination In all cases involving a termination of an employee’s service from the company, appropriate notice of termination shall be furnished to the employee subject to clearances of all accountabilities. As a matter of policy, terminated employees are not qualified for reinstatement. H.11. Compensation and Benefits H.11.1. Salaries and Wages All employees shall receive their respective salaries or wages as provided in their Contracts of employment every 15 th and last day of the month. Cut-off for payroll computation is every 10th and 25th of the month. H.11.2. Overtime Pay Employees may be required to work beyond their shift or even on rest days due to work requirements. Every effort should be made to avoid unnecessary overtime work and to keep work within reasonable limits. All overtime work should have prior written approval from the Store Manager. Every employee should file their overtime slips within the pay-period to be compensated. No overtime slip, no overtime pay. H.11.3. Cancelled Day-off/Holiday Pay Every employee shall be provided with a rest period of twenty-four (24) hours after every six (6) consecutive normal working days. The following shall be considered regular holidays: New Year’s Day
-
January 01
Maundy Thursday
-
movable date
Good Friday
-
movable date
Araw ng Kagitingan
-
April 09
Labor Day
-
May 01
Independence Day
-
June 12
National Heroes Day
-
last Sunday of August
Ramadan
-
movable date
Bonifacio Day
-
November 30
Polytechnic University of the Philippines
89
FEASIBILITY STUDIES – KALYE OCHO
Christmas Day
-
December 25
Rizal Day
-
December 30
The following shall be considered special holidays: All Saints Day
-
November 01
Last day of the Year
-
December 31
Work performed on a regular holiday shall be compensated with an additional compensation equivalent to 100% of his regular salary. Work performed on an employee’s rest days or on a special holiday shall be paid an additional compensation of 30% of his regular salary. H.11.4. 13th Month Pay The 13th month pay of an employee which shall be equivalent to 1/12 of his basic salary earned within a calendar year shall be given not later than December 24 of each year.
H.11.5. Paternity and Maternity Leave Paternity and maternity leave benefits as provided by law shall be given to every employee entitled thereto, upon complying with all the requirements of the company and
upon proper
verification by the
Company’s
duly authorized
representatives. H.11.6. SSS/PHIC/HDMF Benefits Benefits under SSS/PHIC/HDMF law shall be granted in accordance with applicable laws. Implementation of procedures relative to entitlement of said benefits should be done in accordance with the regulations to be promulgated by the management. H.11.7. Hospitalization Plan Regular employees shall be provided with hospitalization plan with a respectable Health Maintenance Organization under terms and conditions to be solely decided by the company.
Polytechnic University of the Philippines
90
FEASIBILITY STUDIES – KALYE OCHO
H.11.8. Accident Insurance Regular employees are enrolled by the Company under a reputable Insurance Organization. Any accident incurred whether work-related or not shall be compensated by this Insurance firm. This plan shall be on employer-employee participating basis. H.11.9. Retirement Benefits Retirement pay benefits as provided by law shall be given to all qualified employees upon their retirement from the company. H.11.10. Bereavement Assistance If an immediate family member of a regular employee passed away, he shall be given a financial assistance of P5000.00 upon complying with all the requirements of the company and verification by its authorized representative.
H.11.11. Other Incentives and Awards Awards and certificates of recognition, such as Crew of the Month, Best in Attendance, Most Punctual Employee, Model Employee of the Year and the like shall be given the discretion of management. I.
Code of Ethics
I.1. Hygiene and Sanitation All employees must observe must observe the highest standard of hygiene and sanitation. Employees must be well-groomed and continue with their work, wearing clean and proper attire. For this purpose, the tem “well-groomed” shall mean proper haircut, cut fingernails, use deodorant, and clean and regularly washed hands. For this purpose, the term “clean and proper attire” shall likewise include newly-washed and properly-ironed attire, no excessive dirt on clothes and shoes, and proper and complete company uniform worn properly.
Polytechnic University of the Philippines
91
FEASIBILITY STUDIES – KALYE OCHO
I.2. Arrival and Departure of Employees All employees regardless of status and rank, must submit all personal belongings for inspection upon entering the company premises. Inspection will include a tickler which shall list all contents of his bag, down to the smallest detail. All personal belongings are restricted within the locker area while the employee s on-duty. It is strictly prohibited to bring in any personal belongings based on the tickler as well as body frisking. If found questionable items in his possession, this shall be reported to the manager on-duty immediately for proper action. I.3. Procedure for Notices/Bulletin Boards
Management shall post all notices, announcements and memoranda of general application on the bulletin board. Ignorance is not an excuse and it is incumbent on each employee to regularly check the bulletin boards for new notices, announcements or memoranda. No employee is allowed to post or remove any document on the bulletin board without the prior permission from the management. I.4. Notice of Disciplinary Action In accordance with the due process requirements of the Labor code, as amended, all employees found or reported to have committed a violation of the company rules and regulations shall be given a written notice to explain, and shall be given the opportunity to explain why no disciplinary action should be imposed against him. Thereafter, any disciplinary action to be imposed by the management shall again be indicated in writing and duly furnished to the affected employee. I.5. Code of Conduct Without in any limiting the prerogative of the company to amend, modify, revoke, or add to the ff. List of offenses, the following acts and mere attempts to commit such acts, even if unsuccessful, shall warrant the corresponding disciplinary actions.
Polytechnic University of the Philippines
92
FEASIBILITY STUDIES – KALYE OCHO
I.5.1. Kinds of Penalties Employees are subject to penalties according to their violations made during their employment. Written Report of Warning (WR) It is the notice calling all the attention to the offense and warning the offenses against repetition of such violation in the future. Suspension (3D/6D/9D) If a worker has commited offense for the second or third time, he is subject to suspension. He will be detached from the organization with the designated period of time without payment. Termination (TR) Termination will be given to employees who have committed a major offense. The employee will be dishonourably separated from the organization.
Offenses
WR
3D
6D
9D
TR
* Tardiness
1st
2nd
3rd
4th
5th
* Absence without leave
1st
2nd
3rd
4th
5th
* Loitering or unauthorized leaving of post
1st
2nd
3rd
4th
5th
* Extending break period
1st
2nd
3rd
4th
5th
* Unauthorized use of company time for
1st
2nd
3rd
4th
5th
1st
2nd
3rd
personal pursuit * Insubordinate or disobedience to superior * Negligence or carelessness
1st
2nd
3rd
4th
5th
* Unauthorized use or misuse of company
1st
2nd
3rd
4th
5th
1st
2nd
3rd
4th
1st
2nd
9D
TR
property * Willful destruction of company properties 1st
* Discourtesy towards consumers, suppliers,
2nd
superiors and co-workers * Using profane language or obscene language to superiors Offenses
Polytechnic University of the Philippines
WR
3D
6D
93
FEASIBILITY STUDIES – KALYE OCHO
1st
* Stealing or attempting to steal properties of the company or of the co-workers * Failure to comply with company rules and
1st
2nd
3rd
4th
1st
2nd
3rd
4th
standards on security & safety and Health & Sanitation * Failure to comply with health, security and safety requirements of the company 1st
* Immortality or scandalous acts Table 15 Offenses for the Workers
H. Project Schedule Gantt Chart Month July
August
September
October
Activities 1
2
3
4
1
2
3
4
1
2
3
4
1
2
3
4
Processing of Legal Requirements Processing the Lease of Contract Purchasing and installation of Equipments Hiring and Training of Personnel Preparing all the Operation Materials Business Operation Proper Figure 33 GANNT Chart
Polytechnic University of the Philippines
94
FEASIBILITY STUDIES – KALYE OCHO
CHAPTER V FINANCIAL STUDY
The financial aspect of the project feasibility study quantifies the results of the marketing, technical, management, taxation and legal phase of the project study and expresses in peso terms the possible outcome of operating the project. The major parts of the financial study are: Statements of assumptions; Possible sources of outside financing, if the capital requirements cannot be met entirely by the proponents; Projected financial statements; Details of various amounts contained in the projected financial statements; and Analysis of the financial projections
Basically, project studies consist of the skillful coordination of the various information on all the factors in the form of financial projections. It covers all the factors that are pertinent to an intended venture having established the e xistence of a sample market and the feasibility of the production facilities to supply this market, the investigation should move on the study of finance cost. What remains is to study the result of the market and technical studies.
I. Objectives a. to make a realistic, complete, and conservative estimate of the total cost to put up a project of its capital requirements, b. to determine the amount of capital financing available and borrowings needed, including possible source and terms, c. to make complete, safe, and realistic projections of operating cost and revenues, d. to determine whether the project will be able to pay its total debt with a reasonable margin of safety, e. to determine the necessary financial arrangements to insure that the project will have the cash it needs when required, f. To determine the company’s earning performance and the soundness and liquidity of its financial positions.
Polytechnic University of the Philippines
95
FEASIBILITY STUDIES – KALYE OCHO
Major Assumptions: Sales increase by 5% every year. Depreciation method used is a straight line method. VAT paid is for 11 months (January to February) and VAT for December is paid on the 25th of January of the subsequent year as stated in the NIRC. Withholding tax on salaries is payable on April 15 of the subsequent year. Income Tax for the current year is payable on April 15 of the subsequent year. Salaries increase by .5% every year. Utilities expense is paid as it comes due . Administrative and Selling expense increase 5% per year.
Polytechnic University of the Philippines
96
FEASIBILITY STUDIES – KALYE OCHO
Polytechnic University of the Philippines
97
FEASIBILITY STUDIES – KALYE OCHO
Polytechnic University of the Philippines
98
FEASIBILITY STUDIES – KALYE OCHO
Polytechnic University of the Philippines
99
FEASIBILITY STUDIES – KALYE OCHO
Polytechnic University of the Philippines
100
FEASIBILITY STUDIES – KALYE OCHO
Polytechnic University of the Philippines
101
FEASIBILITY STUDIES – KALYE OCHO
Polytechnic University of the Philippines
102
FEASIBILITY STUDIES – KALYE OCHO
Polytechnic University of the Philippines
103
FEASIBILITY STUDIES – KALYE OCHO
Polytechnic University of the Philippines
104
FEASIBILITY STUDIES – KALYE OCHO
Part II. Economic Evaluation
Payback Period
Partners’ Initial Investment to the Company
P 4,000,000.00
**Annual Net Cash Flow from Operation
P 1,840,310.28
Year
Net Cash Flow
Counted Year(s)
0 1
(P 4,000,000.00)
--------------------------------1
2 3 Payback Period
1,840,310.28 1,840,310.28 1,520,930.84 -----
1 0.83 2.83(2 years and 10 months)
** Average amount for 5 years
Polytechnic University of the Philippines
105
FEASIBILITY STUDIES – KALYE OCHO
CHAPTER VI SOCIO-ECONOMIC STUDY
The socio-economic impact of this study will clearly state its relevance to the external aspect of the business. Objectives: a) to determine the contributions of the business to the Philippine economy, b) to describe the benefits of the business to its community, c) to ensure the active participation in the maintenance of cleanliness in the environment. A. Socio-Economic Contributions
A.1.
Contribution to the Philippine Economy Every business establishment will be of great help for the growth and
development of the Philippine economy. These will only be possible if every firm will be responsible enough to perform their duties and obligations to their customers, community and of course to the government. Kalye Ocho will definitely contribute additional earnings to our government by means of paying right taxes. Through this, the government can able to perform its functions well including continuous support and assistance to the business industry, providing projects for the community such as building infrastructures, public schools and hospitals, strengthening arm forces for the security and protection of the countrymen and other indispensable projects that will benefit the people. A.2.
Employment Generation The business will provide job opportunities to many individuals most especially
to those people who have great passion in food preparation. Every society wants all i ts qualified members to be gainfully employed. When individuals are employed they are able to raise their children support them through school, provide hem with decent homes, acquire medical services whenever needed and contribute to government income through the payment of income taxes. Kalye Ocho will help to lessen rate of
Polytechnic University of the Philippines
106
FEASIBILITY STUDIES – KALYE OCHO
unemployment and number of poor people. The eradication of poverty will help to solve social problems like crimes, juvenile delinquency and malnutrition. A.3.
Environment Conservation Kalye Ocho will be sensitive enough to our environment by means of assuring
that the processes involve in the business operations will be environmental friendly. Moreover, the firm will apply the principle of Corporate Social Responsibility (CSR). The business will observe proper waste disposal in order to maintain cleanliness and orderliness. This will also help to lessen pollution that causes different diseases and health problems to many Filipinos. The business proponents will allocate enough budgets to sustain the execution of waste management in its operation. Furthermore, Kalye Ocho will give a different insight regarding the foods we cater - street foods. The goal of the business is to educate the people most especially youngsters that through suitable handling and presentation of these foods, contamination and insanitation will be avoided.
Polytechnic University of the Philippines
107
FEASIBILITY STUDIES – KALYE OCHO
APPENDICES KALYE OCHO SURVEY AND EVALUATION SHEET
Dear Customers, We, the proponents of Kalye Ocho, a kiosk catering street foods are conducting a survey for us to provide quality products and services that will fit your needs and wants. We need your help in filling up this questionnaire.
I. Personal Information Name:_________________________ Gender:_______________________ Age:__________________________
II. Direction: Answer the following questions by putting a checkmark on the space provided that correspond your answer. 1. Where do you usually eat when you’re not at home? ( ) Fine Dining ( ) Casual Dining ( ) Fast Food ( ) Eatery
2. How often do you eat street foods? ( ) Daily ( ) Weekly ( ) Monthly ( ) Yearly ( ) Not at All
Polytechnic University of the Philippines
108
FEASIBILITY STUDIES – KALYE OCHO
3. What kind of street foods do you usually eat? ( ) Adidas ( ) Balut ( ) Calamares ( ) Chicken Skin ( ) Fish Ball ( ) Isaw ( ) Kwek-kwek ( ) Pork Barbeque
4. How aware are you regarding the safety and cleanliness of these street foods? ( ) Very Much Aware ( ) Much Aware ( ) Aware ( ) Not Much Aware ( ) Not Aware At All
5. How willing are you to eat in a restaurant catering street foods as their main dish? ( ) Very Much Willing ( ) Much Willing ( ) Willing ( ) Not Much Willing ( ) Not Willing At All
6. In what way do you want these street foods to be served? ( ) In Soup ( ) In Noodles ( ) In Viand
Polytechnic University of the Philippines
109
FEASIBILITY STUDIES – KALYE OCHO
7. What beverages do you prefer? ( ) Buko Juice ( ) Buko Pandan ( ) Iced Tea ( ) Pineapple Juice ( ) Sago’t Gulaman
8. What desserts do you prefer? ( ) Banana Con Yelo ( ) Halo-halo ( ) Mais Con Yelo ( ) Minatamis na Saging ( ) Sorbetes ( ) Turon
9. How much do you usually spend for food in a restaurant? ( ) 201 and above ( ) 151-200 ( ) 101-150 ( ) 76-100 ( ) 51-75 ( ) 50 and below
10. What other features are you willing to spend with in a restaurant? ( ) LCD Computers with Internet ( ) LCD Television ( ) Videoke
Polytechnic University of the Philippines
110
FEASIBILITY STUDIES – KALYE OCHO
11. How do you want us to reach you? ( ) Billboard ( ) Flyers ( ) Posters ( ) Transit Media ( ) Website
12. In what location do you want our business to be established? ( ) Mall ( ) Park ( ) School Vicinity ( ) Subdivision
13. Have you tried eating street foods such as Kwek-kwek, Fishball, Adidas, Calamares, Isaw, Pork Barbeque, Chicken Skin and Balut? ( ) Yes ( ) No
14. How many servings of the following street foods can you eat per day? (1 – 5) Kwek-kwek (12 pcs)
_____
Fishball (12 pcs)
_____
Adidas (4 pcs)
_____
Calamares (6 pcs)
_____
Balut (2 pcs)
_____
Pork Barbeque (1 pc)
_____
Isaw (3 pcs)
_____
Chicken Skin (10 pcs)
_____
Polytechnic University of the Philippines
111
FEASIBILITY STUDIES – KALYE OCHO
Sample Size determination The group used the Sloven’s Formula to determine the needed number of respondents. (formula) Where: N = the number of people who qualify in the area of study e = margin of error which is 5% n = number of needed respondents Sampling Design The researchers used the stratified random sampling to gather information from the target market. Surveys and interviews are conducted to further the people’s demand regarding street food products by using a specific number of persons or respondents from eight barangays within the locality. The group based the respondents from 0.23% of the total population in the area covered by the study. In order to have an access on the pertinent information and gather important data about customer’s taste and preferences when it comes to street food products, the researchers agreed to use Questionnaires. In this process, we find it very easy and reliable. The researchers used the checklist format. Questions are made for the researchers to get their personal choice when it comes to street foods. By these questions, the researchers will be able to determine the demand of the product. The group provided 399 survey questionnaires which are all in English la nguage.
Tally of Questionnaire The questions are answerable through choosing their answers on the multiple choices. Customers Profile: Gender
# of Respondents
Percentage (% )
Male
143
35.84
Female
256
64.16
Total
399
100
Table 16 Customer’s Profile Polytechnic University of the Philippines
112
FEASIBILITY STUDIES – KALYE OCHO
Age: Age Group
Population
Distribution
Under 1
14,465
2.47
01-04
55,402
9.46
05-09
61,024
10.42
10-14
53,352
9.11
15-19
56,456
9.64
20-24
64,011
10.93
25-29
58,623
10.01
30-34
51, 302
8.76
35 -39
42,635
7.28
40-44
37,072
6.33
45-49
28,638
4.89
50-54
22,079
3.77
55-59
13,118
2.24
60-64
11,011
1.89
65-69
6,969
1.19
70-74
4,392
0.75
75-79
2,577
0.44
80-over
2,518
0.43
Total
585,644
100
Based on the 2007 National Census Table 17 Respondent’s Ages
Polytechnic University of the Philippines
113
FEASIBILITY STUDIES – KALYE OCHO
1) Where do you usually eat when you’re not at home?
# of Respondents
Percentage (% )
Fine dining
16
4.02
Casual Fine dining
43
10.80
Fast Food
218
54.64
Eatery
122
30.65
Total
399
100
Table 18 Question#1 Statistics 250 200 150 # of R es pondents
100
P erc entage (% ) 50 0 F ine dining
C as ual F as t F ood E atery F ine dining
Figure 34 Question#1 Graph
Most of the respondents usually eat in fast food restaurants when they’re not at home. There are 218 respondents for fast food which is 54.64% of the 399 total respondents, followed by eatery with 122 which is 30.65%, casual fine dining with 43 which is 10.80% and last is fine dining with only 16 which is 4.02%.
Polytechnic University of the Philippines
114
FEASIBILITY STUDIES – KALYE OCHO
2) How often do you eat street foods?
# of Respondents
Percentage (% )
Daily
58
14.54
Weekly
135
33.84
Monthly
165
41.35
Occasionally
19
4.76
Not at All
22
5.51
Total
399
100
Table 19 Question#2 Statistics
180 160 140 120 100 80 60 40 20 0
# of R es pondents
tA tA No
na io as
O
cc
ll
lly
y M on
th l
lky ee W
Da
ily
P erc entage (% )
Figure 35 Question#2 Graph
Result shows that majority of the respondents consisting of 41.35% (165) eat street foods monthly. Others are weekly that is composed of 33.84% (135), daily with 14.54% (58), Not At All with 5.51% (22), and occasionally with 4.76% (19).
Polytechnic University of the Philippines
115
FEASIBILITY STUDIES – KALYE OCHO
3) What kind of street foods do you usually eat? # of Respondents
Percentage (% )
Adidas
16
4.01
Balut
18
4.51
Calamares
56
14.04
Chicken Skin
28
7.02
Fish Ball
63
15.79
Isaw
31
7.77
Kwek-Kwek
94
23.56
Pork Barbeque
93
23.3
Total
399
100
Table 20 Question#3 Statistics
# of R es pondents
Sk in Fi sh Ba ll K w Is a P o ek - w Kw rk B a ek rb eq ue
ar es
en ick
Ch
Ca
la
m
lu
t
P erc entage (% )
Ba
Ad
id a
s
100 90 80 70 60 50 40 30 20 10 0
Figure 36 Question#3 Graph
Results show that among the eight given street foods, Kwek-kwek has the greatest demand from the respondents. It has the demand of 94 composing 23.56% of the total demand. Next are Fishball (15.79%), calamares (14.04%), Isaw (7.77), Balut (4.51%), Chicken skin (7.02%), Pork Barbeque (23.3%), and Adidas (4.01%)
Polytechnic University of the Philippines
116
FEASIBILITY STUDIES – KALYE OCHO
4) How aware are you regarding the safety and cleanliness of these street foods?
# of Respondents
Percentage (% )
Very Much Aware
107
26.82
Much Aware
103
25.82
Aware
148
37.09
Not Much Aware
37
9.27
Not Aware At All
4
1.0
Total
399
100
Table 21 Question#4 Statistics
160 140 120 100 80
# of R es pondents
60
P erc entage (% )
40 20 0 V ery Muc h A ware
Muc h A ware
A ware
Not Muc h A ware
Not A ware A t A ll
Figure 37 Question#4 Graph
Based on the results, majority of the respondents are moderately aware of the safety and cleanliness of street foods garnering 37.09% of the total response. Others are Very Much Aware consisting 26.82%, Much Aware with 25.82%, Not Much Aware with 9.27, and Not aware At All with 1.0%.
Polytechnic University of the Philippines
117
FEASIBILITY STUDIES – KALYE OCHO
5) How willing are you to eat in a restaurant catering street foods as their main dish?
# of Respondents
Percentage (% )
Very Much willing
65
16.29
Much Willing
94
23.56
Willing
174
43.61
Not Much Willing
55
13.78
Not Willing At All
11
2.78
Total
399
100 Table 22
Question#5 Statistics
180 160 140 120 100 80 60 40 20
# of R es pondents P erc entage (% )
0 V ery Muc h willing
Muc h W illing
W illing
Not Muc h W illing
Not W illing A t A ll
Figure 38 Question#5 Graph
43.61% of the respondents are willing to eat in a restaurant catering street foods, while 23.56% are much willing. Others are Very Much Willing composed of 16.29%, Not Much Willing of 13.78%, and still others are Not Willing At All of 2.78%.
Polytechnic University of the Philippines
118
FEASIBILITY STUDIES – KALYE OCHO
6) In what way do you want these street foods to be served?
# of Respondents
Percentage (% )
In Soup
18
4.51
In Noodles
61
15.29
In Viand
68
17.04
In Traditional way
252
63.16
Total
399
100 Table 23
Question#6 Statistics
300 250 200 150
# of R es pondents
100
P erc entage (% )
50 0 In S oup In Noodles In V iand
In Traditional way
Figure 39 Question#6 Graph
Majority of the respondents which is 63.16% prefer traditional way of cooking street foods, followed by 17.04% who prefer to be in viand, 15.29% in noodles and 4.51% to be in soup.
Polytechnic University of the Philippines
119
FEASIBILITY STUDIES – KALYE OCHO
7.) What beverages do you prefer? # of Respondents
Percentage (% )
Buko Juice
54
13.53
Buko Pandan
23
5.76
Iced Tea
125
31.33
Pineapple Juice
101
25.31
Sago’t Gulaman
96
24.06
Total
399
100 Table 24
Question#7 Statistics
140 120 100 80 60 # of R es pondents
40
P erc entage (% )
20
an
e
a
Ju
ul am
ic
Te
le
ed
o' ag S
ea in P
tG
pp
Ic
o uk B
B
uk
P
o
an
Ju
da
ic e
n
0
Figure 40 Question#7 Graph
According to the result, Iced Tea has the highest demand with 31.33% of the overall responses. Next from the highest is Pineapple Juice with 25.31%, followed by Sago’t Gulaman with 24.06%, Buko Juice with 13.53%, and finally Buko Pandan with 5.76%
Polytechnic University of the Philippines
120
FEASIBILITY STUDIES – KALYE OCHO
8.) What desserts do you prefer? # of Respondents
Percentage (% )
Banana Con Yelo
49
12.28
Halo-halo
162
40.6
Mais Con Yelo
64
16.04
Minatamis na Saging
16
4.01
Sorbetes
87
21.8
Turon
21
5.26
Total
399
100 Table 25
Question#8 Statistics
180 160 140 120 100 80 60 40 20 0
# of R es pondents
n ro Tu
te s or be
S
ag
ta m
is
s
C
na
S
on
Ye
in
g
lo
lo ha o-
H
al M ai
M in a
B
an
an
a
C
on
Y
el o
5.26
Figure 41 Question#8 Graph
Results shows that among the desserts given, Halo-halo has the highest demand with 40.6%, next is Sorbetes with 21.8%, followed by Mais Con Yelo with 16.04%, Banana Con Yelo with 12.28%, Turon with 5.26% and lastly Minatamis na Saging with 4.01%.
Polytechnic University of the Philippines
121
FEASIBILITY STUDIES – KALYE OCHO
9.) How much do you usually spend for food in a restaurant?
# of Respondents
Percentage (% )
201 & above
47
11.78
151-200
32
8.02
101-150
56
14.04
76-100
103
25.81
51-75
87
21.8
50 & below
74
18.55
Total
399
100 Table 26
Question#9 Statistics
120 100 80 60 # of R es pondents
40
P erc entage (% )
20
lo w
5 -7 50
&
be
51
76
-1 0
0
0 15 110
20 115
20
1
&
ab
ov
0
e
0
Figure 42 Question#9 Graph
Majority of the respondents which is 25.81% are willing to spend Þ76-100 in a restaurant. Next is Þ51-75 with 21.8% and Þ50-below with 18.55%. Others are willing to spend Þ101150 with 14.04%, Þ201-above with 11.78% and Þ151-200 with 8.02%.
Polytechnic University of the Philippines
122
FEASIBILITY STUDIES – KALYE OCHO
10.) What other features are you willing to spend with in a restaurant?
# of Respondents
Percentage (% )
112
28.07
LCD Television
75
18.8
Videoke
212
53.13
Total
399
100
LCD Computers w/ internet
Table 27 Question#10 Statistics
250 200 150 # of R es pondents
100
P erc entage (% ) 50 0 LC D L C D Televis ion C omputers w/ internet
V ideoke
Figure 43 Question#10 Graph
Regarding the additional features, majority prefers Videoke with 53.13% and followed by LCD Computer with internet with 28.07%. Other prefers LCD Television consisting 18.8% of the overall.
Polytechnic University of the Philippines
123
FEASIBILITY STUDIES – KALYE OCHO
11.) How do you want us to reach you?
# of Respondents
Percentage (% )
Billboard
27
6.77
Flyers
101
25.31
Posters
130
32.58
Transit Media
17
4.26
Website
124
31.08
Total
399
100 Table 28
Question#11 Statistics
140 120 100 80 # of R es pondents
60
P erc entage (% )
40 20 0 B illboard F lyers
P os ters Trans it W ebs ite Media
Figure 44 Question#11 Graph
Result shows that majority of the respondents prefer Posters as our way of promotion with 32.58%, next is Website with 31.08%, Flyers with 25.31%, Billboard with 6.67% and Transit Media with 4.26%.
Polytechnic University of the Philippines
124
FEASIBILITY STUDIES – KALYE OCHO
12.) In what location do you want our business to be established?
# of Respondents
Percentage (% )
Mall
238
59.65
Park
30
7.52
School Vicinity
127
31.83
Subdivision
4
1.0
Total
399
100
Table 29 Question#12 Statistics
250 200 150 100
# of R es pondents
50
P erc entage (% )
on di ub S
S
ch
oo
lV
ic
vi si
in ity
ar k P
M al
l
0
Figure 45 Question#12 Graph
With regards to the location of the business, majority chose Mall with 59.65% of the total percentage of the respondents. It is followed by School Vicinity with 31.83%, Park with 7.52% and finally Subdivision with 1.0%.
Polytechnic University of the Philippines
125
FEASIBILITY STUDIES – KALYE OCHO
13.) Have you tried eating street foods such as Kwek-kwek, Fishball. Adidas. Calamares, Isaw, Pork Barbeque, Chicken Skin and Balut?
# of Respondents
Percentage (% )
YES
318
79.70
NO
78
19.55
Others
3
1 Table 30
Question#13 Statistics
Figure 46 Question#13 Graph
Majority of the respondents had already tried eating street foods such as Kwek-kwek, Fishball. Adidas. Calamares, Isaw, Pork Barbeque, Chicken Skin and Balut with a 79.70% of the total population while 19.55% of them answered they did not.
Polytechnic University of the Philippines
126
FEASIBILITY STUDIES – KALYE OCHO
14.) How many servings of the following street foods can you eat?
Street foods
# of
1
2
3
4
5
Total
18
32
17
4
2
73
2
Fishball(12pcs)
16
28
11
3
1
59
2
Adidas(4pcs)
23
19
6
---
2
50
1
Calamares(6pcs)
19
24
---
---
---
43
2
Balut(2pcs)
12
7
---
---
---
19
1
Pork Bbq(1stick)
21
29
2
1
1
54
2
Isaw(3sticks)
14
10
4
5
1
34
1
11
22
6
4
3
46
2
Kwekkwek(12pcs)
Serving
Chicken skin(10pcs)
Table 31 Question #14 Statistics
Polytechnic University of the Philippines
127
FEASIBILITY STUDIES – KALYE OCHO
Wages and Salaries Direct Labor
#
Store Manager
1
96.25
Kitchen Steward
8
Service Crew
2
Total
11
Rate/Hr
# of hr/day
Daily
Monthly
Annual
Salary
Salary
Salary
8
770
20,020
240,240
50.50
8
3,232
84,032
1,008,384
50.50
8
4,808
21,008
252,096
8,810
125,060
1,500,720
Note: There are 26 working days in every month. Witholding Taxes Direct Labor
Monthly Salary
Store Manager
20,020
2,921.75
35,061.00
1
35,061.00
Kitchen Steward
84,032
809.13
9,709.56
8
77,676.48
Service Crew
21,008
809.13
9,709.56
2
19,419.12
Total
125,060
11
132,156.60
Monthly WHT
Annual
#
Total Annual
WHT
WHT
13th Month Pay Xmas Cash
Individual 13th mo.
Gift
pay
20,020
1,000
21,020
21,020
8
10,504
500
11,004
88,032
Service Crew
2
10,504
500
11,004
22,008
Total
11
Direct Labor
#
Store Manager
1
Kitchen Steward
Monthly Salary
Polytechnic University of the Philippines
Total
131,060
128
FEASIBILITY STUDIES – KALYE OCHO
Direct Labor
#
Store Manager
1
20,020
1,000
Kitchen Steward
8
10,504
Service Crew
2
10,504
Total
11
Individual
SSS
Pag-Ibig
Total
500
100
19,200
6,000
2,000
800
105,600
1,500
500
200
26,400
8,500
3,000
1,100
151,200
Monthly Salary
Phil Health
5 – year Computation of Salary Year
Annual Salary Expense
2011
1,500,720
2012
1,575,756
2013
1,654,543.80
2014
1,737,270.99
2015
1,824,134.54
Note: Salary Expense increases 5% yearly 5 – year Computation of Electricity Consumption Year
Daily
Monthly
Annual Electric Expense
2011
114
3,420
41,040
2012
119.7
3,591
43,092
2013
125.68
3,770.4
45,244.8
2014
131.96
3,958.8
47,505.6
2015
138.55
4,156.5
49,878
Polytechnic University of the Philippines
129
FEASIBILITY STUDIES – KALYE OCHO
5 – year Computation of Telephone Consumption Year
Min. Charge
EVAT (12% )
Allowance
Monthly
Annual
for Long
Charge
Charge
Distance 2011
1,200
144
500
1,844
22,128
2012
1,260
151.2
550
1,961.2
23,534.4
2013
1,323
158.76
605
2086.76
25,041.12
2014
1,389.15
166.7
665.5
2,221.35
26,656.2
2015
1,458.61
175.03
732.05
2,365.69
28,388.28
5-year Computation of Water Year
# cu.m
Amt./cu.m
used/mo
Monthly
Annual
consumption
Consumption
2011
121
10
1,210
14,520
2012
127
10.5
1,333.5
16,002.24
2013
133
11.03
1,466.99
17,603.88
2014
139
11.58
1,609.62
19,315.44
2015
145
12.16
1,763.2
21,158.4
Year
# of
Price/Tank
Monthly
Annual
Consumption
Consumption
Tank/month 2011
2
510
1,020
12,240
2012
3
530
1,590
19,080
2013
4
540
2,160
25,920
2014
5
550
2,750
33,000
2015
6
560
3,360
40,320
Polytechnic University of the Philippines
130
FEASIBILITY STUDIES – KALYE OCHO
Expenses
Yearly
Monthly
Daily
Cost/Product
Wages and salaries Electricity
1,500,720
125,060
4,168.67
1.71
41,040
3,420
114.00
0.05
Telephone
22,128
1,844
61.47
0.03
Water
14,520
1,210
40.33
0.02
Lpg
12,240
1,020
34.00
0.02
Promotional expense Utensils
9,050
754.17
25.14
0.01
607.55
50.63
1.69
0.001
Machineries and equipments Furniture and fixtures Rental
14,113.80
1,176.50
39.21
0.02
807
67.25
2.24
0.001
240,000
20,000
666.67
0.27
Sanitary
748
62.33
2.08
0.001
Office
767.50
63.96
2.13
0.001
Repairs and
24,000
2,000
66.67
0.03
Taxes and licenses
8,620
718.33
23.94
0.01
Total
1,889,361.80
156,426.82
5,248.24
2.16
Daily Expense
₌
maintenance
Operating cost=
Overall servings Of all products Purchases Year 2011 2012 2013 2014 2015
Daily 12,240.68 12,852.71 13,495.35 14,170.12 14,878.62
Polytechnic University of the Philippines
5,248.24
₌
2.16
2,430
Monthly 367,220.4 385,581.4 404,860.5 425,103.5 446,358.6
Annual 4,406,645 4,626,977.3 4,858,326.2 5,101,242.5 5,356,303.6
131
FEASIBILITY STUDIES – KALYE OCHO
Inventory Year
Daily
Monthly
Annual
2011
2,539.86
76,195.80
914,349.60
2012
2,666.85
80,005.59
960,067.08
2013
2,800.19
84,005.77
1,008,069.30
2014
2,940.20
88,205.99
1,058,471.80
2015
3,087.21
42,616.30
1,111,395.50
Comparison of our Price list to our Competitor’s Price List Products Kalye Ocho Competitor’s Price List (Solo) Price List Zonyda Mang Inasal Merienda Meals Kwek-kwek 18 (5 pcs.) ----12(4pcs) Fishball 15 (12pcs) 15(10pcs) ----Adidas 18 (4pcs) ------Chicken skin 18(10pcs) ------Balut 25(2pcs) ----15(1pc) Isaw 18(3sticks) ------Calamares 22(6pcs) ------Pork Bbq 20(1stick) --42(1stick) 25(1stick) Halo-halo 42 --59 --Mais con yelo 25 --42 --Banana con 25 --42 --yelo Sorbets 15/cone --10/cone --Iced tea 18/glass --35/glass --(medium) Pineapple 18/glass 20 ----juice (medium) Sago’t 18/glass 10 ----gulaman (medium)
Polytechnic University of the Philippines
Streetfood Vendors 10(4pcs) 10(8pcs) 8(2pcs) 5(3pcs) 10(1pc) 5(1pc/stick) 3(1pc) 15(1stick) 25 15 15 10/cone --5/small cup 5/small cup
132
FEASIBILITY STUDIES – KALYE OCHO
Price Computation Solo Purchase Operating Product Selling Cost Cost Cost Price w/out VAT Kwek8.6 2.16 10.76 15.84 kwek Fishball 5.76 2.16 7.92 13.2 Adidas Chicken skin Pork Bbq Balut Isaw Calamares Halo-halo Mais con yelo Banana con yelo Sorbets Iced tea Pineapple juice Sago’t gulaman
Selling Price w/ VAT
% Markup
# of Orders
Sales
18.00
32.07
63
1134
15.00
40
630
4.46 8.80
2.16 2.16
6.62 10.96
15.84 15.84
18. 00 18.00
58.21 30.81
42 11 19
198 342
7.60 18.62 6.69 13.92 32.19 12.18
2.16 2.16 2.16 2.16 2.16 2.16
9.76 20.78 8.85 16.08 34.35 14.34
17.6 22 15.84 19 .36 3 6.96 22
20.00 25.00 18.00 22.00 42.00 25.00
44.55 5.55 44.13 16.94 7.06 34.82
62 12 21 36 40 16
1240 300 378 792 1680 400
7.91
2.16
10.07
22
25.00
54.23
12
300
8. 33 3.07 6.13
2.16 2.16 2.16
10.49 5.23 8.29
13.2 15.84 15.84
15.00 18.00 18.00
20.53 66.98 47.66
21 3 67
31 5 1494 1206
3.61
2.16
5.77
15.84
18.00
63.57
63
1134
% of Markup
# of Orders
Sales
26.60
42
1638
Combo
Product Cost
Rice
Drinks
Price
Kwekkwek Fishball Adidas Chicken skin Pork Bbq Balut Isaw Calamares
10.76
8
6.43
25.19
7.92 6.62 10.96
8 8 8
6.43 6.43 6.43
22.39 21.05 25.39
30.8 30. 8 34.32
35 35 39
27.31 31.66 26.02
15 4 7
980 245 507
9.76 20.78 8.85 16.08
8 8 8 8
6.43 6.43 6.43 6.43
24.19 35.21 23. 28 30.51
36.96 36.96 30.8 36.96
42 42 35 42
34.55 4.73 24.42 17.45
22 5 7 14
1722 336 490 1050
Polytechnic University of the Philippines
Selling Selling Price Price w/out w/ VAT VAT 34.32 39
133
FEASIBILITY STUDIES – KALYE OCHO
Purchases Raw
Qty
Materials Quail
Purchase
Cost
Qty
60.00
37.50
Cost 350/pcs
900
325
40 pcs
25
Lapu-lapu
2 kilo
280
½
100.00
Squid
5kilo
300
3kl
100.00
Chicken
3 kilo
180
1½
Pork
4 kilo
660
4
Chicken
2kilo
120
½
3 kilo
180
1kl
Balut
30pcs
810
26
Carrot
¼ kilo
20
¼
Spring
1 bundle
10
---
Flour
6 kilo
252
Egg
12 pcs.
48
Food
1 pack
10
Pepper
1 kg
20
Magic
12pcs
Oil Chicken
eggs
skin
feet Chicken intestine 10pcs
4
90.00
36
5½
1 KL
½
42.00
21
6
24pcs
6
16.00
24
½ pck
½
5.00
5
¼
¼
¾
5.00
15
30
8
2 pcs
4
5.00
10
32 L
3060
28/L
16 L
8L
15.30
765
5 pack
50
4
1 pck
1
10.00
10
Catsup
3L
147.50
1L
2L
2L
18.33
98.33
Soy sauce
3.55L
50.50
1.5
2L
2.05
28.00
85.18
Vinegar
3.55L
45.50
1.5
2L
2.05
26.00
26.27
Bbq. Stick
1 Bundle
20
155
15pcs
45
9.5
4.50
Oyster S.
3.55L
409.50
1.5
1.5L
2.05
204.75
236.47
onion
color
sarap
breeding
Polytechnic University of the Philippines
134
FEASIBILITY STUDIES – KALYE OCHO
Sugar
5kilo
158.00
3K
½ KL
2K
16.00
63.20
Iced tea
3 packs
109.50
---
1 can
120
---
Gulaman
6 cups
42
---
Sago
6 cups
36
---
Vanilla
90ml
94.10
2ml
78
88ml
81.47
91.91
Sweet
3 cans
162
2½
1 pack
82
¼
½
¾
41
61.50
Saging
15 pcs
37.50
Evap
7 cans
157.50
6½
½
½
33.75
11.25
Leche flan
3 llanera
60
Mongo
1 jar
68.50
½
½
½
34.25
11.25
Ice cube
5 24 pcs
75
Cone
1 gallon
48.00
19
5pcs
10.00
10
Selecta
1 jar
190.00
19
¼
47.50
140
Kaong
1 jar
99.00
½
½
49.50
49.50
Beans
1 jar
89.50
½
½
44.75
44.75
Nata
1 jar
84.50
½
½
42.25
42.25
Langka
1 jar
137.50
½
½
68.75
68.75
Macapuno
1 jar
137.50
½
½
35
68.75
pinipig
20 packs
75.00
½
½
510
17.5
Rice
50kilos
1020.00
½
½
Ube
50 kilos
174.00
½
½
powder Pineapple mixture
½ can
27
corn Corn flakes
7.5 34.25
ice cream
Silling
10.00
418.20 87
120.00 87
labuyo
Polytechnic University of the Philippines
135
FEASIBILITY STUDIES – KALYE OCHO Recommendations
Name of Panelist
1. Mr. Syed Amed
Comments
The proponents of Kalye Ocho must include all the data needed in the Financial Study You have a very big rental expense
2. Prof. Jonathan Marquez
You must have a breakdown of your daily, monthly and annual sales as well as your expenses Your prices are very high
Actions have Taken by the Proponents We analyzed again our market. We adjust our expenses because we change our business from a restaurant to a kiosk. We made a breakdown of our daily sales and daily expenses. We include all other information that we used in analyzing our business
Your location is inappropriate because We made a competitor’s price of your very high rental analysis for our price expense. Just locate it in the available stalls to become competitive. or kiosk in a mall. 3. Prof. Aldrin Antivola
You need to change your location to minimize your expenses.
Our pre-operating capital has less by 700,000 each per partner. we have 4,000,000.00
You must base your price in your competitors. Your lists of prices are not competitive.
Polytechnic University of the Philippines
136
FEASIBILITY STUDIES – KALYE OCHO
Feasibility Findings
After studying all the aspect of the business from mark -up to management, we found out that the business is feasible because of the following reasons:
The business has great market acceptability, (83.16%) of the total population are willing to eat and avail the product at the same time. The location o the business is accessible enough to meet a wider range of possible customers. Products being offered are known and loved by the youth most especially from ages 16-19 years old having 58.67% of the total population. The business will have competitive advantage in terms of the products being sold because street foods are usually eaten along the streets. The difference between our business and street food vendors is that we assure food safety as well as food quality. Prices of the products are affordable enough to meet customer’s purchasing power at the same time can cover up proponent’s expenses that will result to net profit. Raw materials needed for food preparation can easily assure because ingredients are nearby market or super markets. The business requires big pre operating capital but can able to penetrate to the market and have good market standing that will boost the sales of the business.
Polytechnic University of the Philippines
137
