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Feasibility Study of Establishing Cindy

Feasibility Study of Establishing Cindy

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Published by: hisoneandonly on Jul 06, 2010
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05/25/2012

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Feasibility Study of Establishing Cindy’s Fast Food Branch Along Plaza of Balanga,Bataan1. General Objectives1.1. Description of the Business Project
The proposed business will need a two-storey building in a 2,000 square-meter lot with a parking space at the rear. The customer will drive in the left entrance greeted by thewater-sprinkled Indian trees partly shielding the establishment from the fumes comingfrom the busy street. Embraced by the multi-colored lights, the trees will set thecosmopolitan setting to a rustic atmosphere. The building will be constructed to hide thestockroom complementing the architectural masterpiece. The smoothly cemented exit passing through the well-manicured lawn will draw sights of satisfaction from thecustomers.The state-of-the-art tables, chairs and utensils will enhance the customers feeling thatthey are in a five-star hotel. Very affordable, the food will enthrall every customer tocome and savor the food over the widely spaced tables on the immaculately marbledfloor. The electronically flushing system of the restrooms will motivate the customers toforce their friends and relatives to frequent this new Cindy’s Branch at the heart of theBalanga.
1.2. Project Time Table
All minor details considered, the project will start serving the five thousand targeted dailycustomers within five months. The contractors will complete the fence and theframework of the building in the first month. They will finish the walls and the floors inthe second month. They will install the electrical and the air conditioning units in thethird month. After the first and second layer coating, they will complete the final paintingin the fourth month and finally they will landscape and plant balled-trees in the fifthmonth. As the project will be in progress, the company will busy the facilities to be used.
1.3. Management of the Business
With three managers alternately scheduled on the eight hour duty to man the 95crew inthe 24 hour service, the business will surely satisfy the customers, propelling profit tosoar.The personnel will make a customer feel that he is the only one served amidst thequeuing multitude. The high wage given by the company and, likewise, the humanetreatment of the superiors will inspire the crew to render machine-precise service.
2. Product and Market Aspects2.1 Market Outcome
 
A variety of expensive fireworks commence the business to attract the children, students, parents, and professionals. This opening blast will have been advertised a month before.The initial big crowd from the different districts of the province will keep growing toactualize the management’s vision that this Cindy Branch will be the most profitableamong the food chains in the City.
2.2 Market and Selling Price
The customers can order from a variety of choices in the counter staffed with beautifuland handsome ever-smiling crew. The waiters will serve the orders in the well-crafted,smoke free dining areas with both oriental and western motifs to fit their number andtheir tastes. These areas will enhance customer privacy as the customers enjoy eatingwhile talking about the gossips of the town, or as they engage in a highly intellectualcalisthenics about a hot political issue. The area will also conduce lovers to cement their relationship with their soul-penetrating interlocked gazes that only lovers could fathom,as they savor their food.
3. Technical Aspect3.1 Location Factor
At the center of Balanga Plaza, this food center will surely draw customers from thecross-section of society. The following factors will back-up the company’s foresight:
3.1.1 Topography
The 2,000 square-meter lot does not need labeling because the area is already flat and it islocated in high location. No matter how strong the typhoon will be, the rains will notflood the area. The customers will not be drawn away from enjoying the services of Cindys.
3.1.2 Cost of Land
The fertile business venture will cheapen the current P20,000 per square meter piece of land. The forty five million peso worth of property will double after only three years of operation.
3.1.3 Security
The place will be safe. Secretly installed cameras will monitor every move to ensure thesecurity of the customers. Four security guards simultaneously assigned to the area willguarantee the safety of the clients. This will be backed up by policemen assigned at theoutpost nearby.
3.2 Size and Layout of the Building
 
To maximize the 40 x 50 meter land area, the engineers will erect the 20 x 30 meter  proposed two storey building, leaving five meters at both sides and 18 meters fronting thestreet. Only two meters will be left at the back of the building. This will ventilate theestablishment.
3.3 Equipment
The Bataan Builders will construct the building. This construction company will usemodern building equipment like a cement mixer, caterpillar, automatic digging drill, andother state of the art construction materials.
4. Project Cost4.1 The Land and the Building
This project will cost about P 45,000,000.00 which is roughly broken into the following:Cost of 2,000 meter lot – P 40,000,000.00Cost of 2 storey building – P 4,000,000.00Accessories and Equipments – P 1,000,000.00Total Cost – 
P 45,000,000.00
The 45 million pesos worth of land is the biggest of the capital investment but it is worthit because unlike the other expenses, the land value will appreciate through the years. Thecontract with the Bataan Builders for the proposed two-storey building is P 4,000,000.This includes materials and labor. With the five-month paying scheme, Cindy will pay P800,000 every month until the last month. The food center will need P 1,000,000 for theimported accessories like tables, chairs and other needs.
4.2 Franchise
The food center will pay the current P 1,000,000 Cindy franchise.
4.3 Sources of Financing
The proprietor will put in P 5,000,000. The remaining P 40,000,000 will be borrowedfrom the bank.
5. Business Operation5.1 Revenues
With 50 thousand monthly net income target from about five thousand daily customers,the proposed branch projects the following net income by month and years:

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