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Acknowledgement

The success of this feasibility study would not have been achieved without the support
received from Mrs. Jennifer A. Mendoza, CPA, our Management Consultancy Services Adviser.
We thank you for the guidance and patience. We will remain forever indebted to you.
To our parents, thank you for your assistance and guidance throughout the duration of our
study.
To the other groups, thank you for being such a wonderful research associate. You guys just
know how to make things happen. And you really ensured a smooth ride for us.
Above all, thank you, Almighty Father for the unconditional love and endless blessings you
have bestowed upon us.
Lastly, we would like to thank the 98 respondents who gave us their time to answer the
questionnaires we had provided and giving us the information relevant in the conduct of our
feasibility study.
This was indeed a worthy study, and we hope that the outcome can be used as a reference
by future researchers. We also hope that the business can cascade into a great success.

The Researchers

PROJECT BACKGROUND AND


HISTORY

Project Background
Food dominates the life of the Filipinos, and that is undeniably true. People here just love to
eat. And at present, food doesnt seem to confine only the purpose of necessity anymore; food has
now become a basis of the Filipinos social life, thus, becoming a trend especially for the so-called
millennials not to forget to mention, them, growing up with the influence of social media. Filipinos
have always had a knack for something new, something different - so for the past years variety of
trends have entered the Filipino Food Industry, ranging from international franchise food concepts to
fast foods to food culture variations. Almost everything has become a sure hit. So despite the
dwindling economy in our country the food industry still manages to keep afloat and even manifest a
remarkable growth for the past five years.
Two of the most remarkable trends that have been buzzing in the Metro for quite some time
now are the emergence of Burger Shops and Ice Cream Parlors; and we are here to give Iriga, a taste
of these delights in one sitting - with a fully personalized twist.
Iceburg Diner will give its customers a dining experience they never had before- offering a
variety of Burger Menus and Ice Cream Mixes with a touch of different influences, flavors and sizes. We
will make sure that every penny spent will be worth the taste. And with an upscale and cozy
atmosphere We intend to provide a venue in which the customer can relax and at the same time enjoy
their leisure time whether alone, with the family or with the clique.
Here in Iceburg Diner, aside from the tasteful dishes that will be offered we will also let the
customers fully customize their burger experience for a more special eating. They can choose from the
variety of Burger ingredients that we have, from the buns to the patties, to the toppings and up to the
sauces, it is all in the customers call. Creativity and Diet is the limit. On the other hand,
complementing the savory relish of our Burgers, are the myriad of Ice Cream flavors that We offer. We
have thought of different sorts of mixes that will surely satisfy the customers sweet tooth cravings
whether of a child or of a young at heart. And just like what we offer on our burger, your Ice Cream is
also fully customizable. You can be your own Ice Cream artisan.
Iceburg Diner is to be located in the Everest plaza, one of the newest Commercial Building in
Iriga and a good location for trade, especially for a fast food chain because its a breath of fresh air
among the non-fast food chains that's already established there. Over the past five years, there has
been tremendous population growth in the whole City. Yearly, Irigas population is growing 1.8%
percent. To date, there are 113, 798 people in the citys vicinity and almost 53.6% of this population
lives in the urbanized section of the city. Moreover, 51.2% of this population is made up of young
adults, whose ages are between 0 and 19 years old. The latter will be our target market but we are not
limiting our service only to them. (iriga.gov.ph)
The hamburger industry nowadays is nothing like as it was before. Hamburger franchises have
spread their ways across the nation and continue to find innovative ways to turn their customers into
loyal burger-fanatics, same goes with the Ice Cream Parlors. Consumers are hungry for more ways to
"fit" quality food in their busy schedules. The demand for flavor variety, healthy alternatives,
accessibility and ordering options, and unique eating experience has always been a challenge for the
industry players all these we can offer. By providing the best food and service that can be offered,

our management team expects to reach an even broader market than what we used for our cash flow
projections.

Birth of the Burger


In the early 1200s, the Mongol army placed slabs of lamb and mutton under their horse
saddles as they rode into battle. After the meat was tenderized by the saddle and the back of the
horse, they would consume it raw, as if it were an uncooked beef patty. This strange but practical
method eventually developed into the creation of modern ground beef. Now that youve got ground
beef, you know what has to come next: the hamburger. Some believe that the hamburger came from a
meatball stand owner who flattened his meatballs between two slices of bread. He then called his new
on-the-go creation Charlies Hamburgers. Others believe that the hamburger originated from a hot
dog vendor who decided to substitute their hot dogs for beef, naming this invention the hamburger
after their location, Hamburg, New York. On the other hand, Texans believe that the burger was a
reincarnation of the breakfast patty - a beef sandwich squeezed between two slices of french toast and
garnished with glazed onions. Although all of these instances have hit hamburger history, it is still
uncertain which one of them is the true story behind the birth of the hamburger.
However, no matter how you slice it, the hamburger industry nowadays is nothing like as it was
before. Hamburger franchises have spread their ways across the nation and continue to find innovative
ways to turn their customers into loyal burger-fanatics. The hamburger industry is surely beefin up for
good.
One of the strongest reasons for the hamburgers longevity is its wide-spread appeal. The
burger is affordable, portable, and customizable; they can be served gourmet-style or as a rustic yet
classic to-go food. With this type of versatility, hamburger franchises - or any food franchise for that
matter - can easily adapt the hamburger concept to current economic settings All in all, the rising
teenage population and improving economic conditions have revitalized the fast food industry, and the
hamburger franchises are expected to be at the forefront of this expansion.

Ice Cream Industry


On the other hand, Ice cream was introduced in the Philippines during the American
Occupation when refrigerators and other cooling devices were introduced. While American ice cream
was made with cow's milk, using the milk of the carabao, a kind of water buffalo, resulted in a cheaper
product which became known as "sorbetes." Both kinds of milk are widely used today. Coconut milk
and cassava flour are two other ingredients used that make sorbetes distinct from ice cream made in
other countries. Flavors also varied from the usual natural fruits such as mango, avocado, melon,
jackfruit, coconut and strawberry to flavors imitating commercial ice cream such as chocolate, cookies
and cream, cheese, mocha, ube, etc. The sorbetes industry competes with commercially available ice
cream from giant companies operating in the Philippines such as Arce Dairy, Magnolia, Nestl, and
Selecta, which also started peddling their product in the streets in more sanitized carts. (Wikipedia)
As early as a few years ago, most of the Philippines' ice cream came from the large fast
moving consumer goods companies that supplied just about every grocery & supermarket. These were

Nestle, Selecta-Walls, including local brands like Magnolia and Arce. Some supermarkets also carried a
limited range 9f Ben & Jerry's. In pocket outlets thrived the gelattos & ice cream artisans. Today, the
artisans are making a name for themselves with flavors like sea salt caramel, strawberry balsamic, and
blue cheese. Sebastian's, Dolce Vita, Carmen's Closet --- they and other ice cream artisans have
carved their own niche alongside the big player brands like Magnum, Kit Kat, and Whoppers. The local
ice cream known as "dirty ice cream" is enjoying a resurgence as well. Take it in a cone or stuffed in
pan de sal like a sandwich. At the rise of ice cream as a popular food, several ice cream parlors
became evident along every principal street and park.
Popularization of American food such as the ice cream (which were new for the 20th centuryFilipinos) tried to manifest their intentions of imparting their culture to the colonized population. Since
food embodies a lifestyle, by subscribing to what the colonizers introduced at that time, the lifestyle of
many Filipinos was gradually influenced and changed by the Americans. Nonetheless, no matter what
their intention was, we surely benefited from the flavors and delightful experience it served our taste
buds. (M. San Martin)

So far, there were no Burger Diner and Ice Cream Parlors established as one, yet, in Iriga
City.

Feasibility Study
AUTHORS:

Bachiller, Kevin G.
Lucena, Lea Sherelynne B.
Marinda, Raymond John
Neri, Princess Korine Dv.
Paz, Rustom
Turiano, Mary Anne I.

TITLE: ICEBURG
ORDERING PARTY:
Mrs. Jennifer A. Mendoza, CPA

Financial Possibilities
TRANSPORTATION COSTS

P300.00

PRINTING COSTS

P500.00

COST OF TOKENS AND SNACKS

P500.00

TOTAL

P1,300.00

Project Promoter and/ Initiator

NAME: Kevin G. Bachiller

NAME: Princess Korine Dv Neri

ADDRESS: San Juan, Nabua Cam. Sur

ADDRESS: Francia, Iriga City

CONTACT #: 09073530656

CONTACT #: 09052259962

ROLE: Researcher

ROLE: Researcher

NAME: Lea Sherelynne B. Lucea


ADDRESS: Antipolo Old, Nabua, Cam. Sur

NAME: Rustom Paz

CONTACT #: 09308118007

ADDRESS: San Nicolas, Iriga City

ROLE: Encoder

CONTACT #: 09159624162
ROLE: Researcher

NAME: Raymond John Marinda


ADDRESS: San Agustin Iriga City

NAME: Mary Anne I. Turiano

CONTACT #: 09499796213

ADDRESS: San Juan, Iriga City

ROLE: Researcher

CONTACT #: 0909041340
ROLE: Encoder

ECONOMIC ASPECT

DEMAND AND MARKET STUDY


A.

DATA ALTERNATIVE PROJECTION METHODS

Research shows that a market scope of our project is comprised of children,


teenagers and adults either from lower or upper class of families. Studies indicate
that most people spend their leisure through eating variety of foods such as burger
and ice cream.

We have defined some problems that should be addressed:


What is the demand for the service?
-

Find the demand through surveys

Who are the potential competitors?


-

Identify the competitors in the market

What is the cost of operation?


-

Calculate the costs that will be incurred in the normal operating cycle

Is the project profitable? If yes, how much?


-

Calculate the expected profit after deducting all the expected costs

The preceding problems must be properly discussed and all data and information
regarding the problems should be gathered and analyzed. These will help to have a
clear decision about the study of the project.

We will be conducting a short market study through distributions of survey


questionnaires to potential customers in order for us to identify their needs and
make the business properly run. The resulting data that will be gathered with the
survey will become our bases for our actions.
Our survey will be targeting the existing customers of an existing establishment
because we believe that all the information that we need will be provided by the
latter. The information needed can be, but not limited to the following:
A.
Information about how much people will spend, how often and their buying
behavior.
B.

Information about the quality and preference of the customer.

MARKET SURVEY
Market surveys are important to find out the existence of the demand for a
product and its viability. The calculation of market size and value should not be
assumed to represent the scale of production that would be expected. The
existence of competitors should be considered most especially by a newly formed
business and find out the estimated proportion of the total market that the business
can reasonably have.
There will always be an unending competition in the business world. Competitors
must be taken into account because they can bring adversity if they are overlooked.
Competitors may take the form of your business but sometimes they can also be
producing different product compared to your business, that is why examination of
competitors must be comprehensive and it should not just be limited to
establishments producing or doing the same business as you are or planning to be.
SWOT analysis will be of great help in assessing the competitors market
penetration. It will help us to assess the Strength, Weaknesses, Opportunities and
Threats in the market of an existing competitor. As a result, we will be able to
compare our potential product to the branded competitors.

B. TARGET SEGMENTATION
The University of Saint Anthony Registrar Office showed that it has a
population of 6,052 in s/y 2015-2016. From this population, 45.69% are
College students (age ranging 18 years old above), which happens to be our
primary target market.

Type (Age)
Percentage
Grade School (14 below)
20.09%
High School (15-17)
34.22%
College (18 and above)
45.69%
Table Market Segmentation

Numerical Value
1,216
2,071
2,765

TARGET MARKET SEGMENT STRATEGY

Our success will be based on our ability to become known within the
community. We must focus on the specific market segments whose needs
match our offerings. Focusing on targeted segments is the key to our future.
Therefore, the focus and marketing message will be the services offered.
Once the message is developed, it will be communicated and fulfilled.

Students (College, High School and Elementary Pupils)


For a variety of reasons, students are an attractive segment. They
are looking for a place to relax and at the same time socialize. Students are
included in the segment of 7 up to 21 years old and up. Our purpose is not
only to give them a comfortable place but also provide them a good food and
friendly atmosphere for their satisfaction.
Working/Married Couples/Parents
Another segment of our business includes working couples. The strategy
for this kind of segment is word-of-mouth approach where we will the
community do its job in spreading the word about our business.
Potential Customers (70 Respondents)

Residence
Riga
Nabua
Baao
Bato
Buhi
Albay
Total

No. of Respondents
Percentage
46
46.94%
33
33.67%
9
9.18%
4
4.08%
5
5.10%
1
1.20%
98
100%
Table 1- Respondents as to residence

Age
No. of Respondents
Grade School (14 below)
0
High School (15-17)
20
College (18 and above)
78
Total
98
Table 2- Respondents as to age

Percentage
0%
20.41%
79.59%
100%

Gender
Male
Female
Total

No. of Respondents
56
42
98
Table 3- Respondents as to gender

Percentage
57.14%
42.86%
100%

Status
Student
Already working
Married
Out of school
Total

No. of Respondents
82
7
7
2
98
Table 4- Status of Respondents

Percentage
83.67%
7.14%
7.14%
2.04%
100%

Frequency
Everyday
Every other day
Once a week
Once a month
Seldom
Total

No. of Respondents
0
13
46
23
16
98
Table 5- Frequency of visit to diner

Percentage
0%
13.26%
46.94%
23.47%
16.33%
100%

Answer
No. of Respondents
Percentage
Weekdays
40
40.82%
Saturdays
28
28.57%
Sundays
30
30.61%
Total
98
100%
Table 6- Respondents who mostly eat on a diner in a days of the week
Answer
Yes
No
Total
Amount
50-60

No. of Respondents
Percentage
90
91.84%
8
8.16%
98
100%
Table 7- Respondents who like Burger
No. of Respondents
67

Percentage
68.36%

61-70
10
71-80
6
81-90
4
91-100
3
101 and up
8
Total
98
Table 8- Amount willing to spend for Burger
Answer
Yes
No
Total

10.20%
6.12%
4.08%
3.06%
8.16%
100%

No. of Respondents
Percentage
95
96.94%
3
3.06%
98
100%
Table 9- Respondents who like Ice Cream

Answer
No. of Respondents
Percentage
Yes
68
69.39%
No
9
9.18%
Depends on the kind
21
21.43%
Total
98
100%
Table 10- Respondents who like toppings in Ice Cream
Amount
No. of Respondents
Percentage
30-40
81
82.65%
41-50
3
3.06%
51-60
1
1.02%
61-70
4
4.08%
71-80
2
2.04%
81 and up
7
7.14%
Total
98
100%
Table 11- Amount willing to spend for an Ice Cream

The respondents had written down their perfect partner for their
burger and it turned out that Fries is the best choice of our respondents.
Following by the Pasta, Salad and Chips, Onion Rings and Others are close
second to sixth, respectively.

Others; 2%

Chips; 12%

Pasta; 24%

Salad; 13%

Fries; 43%

Onion Rings; 7%

Chart 1- Ranking of Best alongside of Burger

Respondents had also choose their favorite flavor for their Ice
Cream and it results that Chocolate flavored is the first favorite of our
respondents. Secondly by the Nuts flavored followed by the Coffee flavored,
Fruit flavored and lastly by Others (includes cookies and cream, chili
flavored, vanilla and mocha).

Chocolate Flavored
Coffee Flavored
Fruit Flavored
Nuts Flavored
Others

Chart 2- Ranking of Flavors (Ice Cream)

With regards to the purchase decision making, the respondents ranked from
1-5 (5 represents the least) the most Important attribute that affect to their
purchase. As the results, Amount of food are the lowest percentage, It means
that the amount is the most important for the respondents to their buying
decisions.

Speed; 23%

Variety; 20%

Location; 23%

Atmosphere; 19%

Amount; 14%

Chart 3- Ranking of Purchase Decision Making


Based on the above information, our Target Market will be coming
mainly from the population of students which garnered 82 tallies out of 98
respondents. Married got 7 respondents, Already Working got 7 respondents
and a population in the Out of school has 2 respondents.

Target Market

Students
Already Working
Married
Out of School

Chart 4- Target Market

FOOD SERVICE BUSINESS ANALYSIS


Focusing on targeted segments is the primary key towards a companys
future. Therefore marketing messages will be focused on products we offer. We will
develop our message, communicate it, and fulfill our commitment to excellence.
Iceburg is part of the Food Service Center Industry, which includes
everything from High-End Restaurants to small ones which offer traditional &
international cuisines, Fast Food Chains, Caterers and the likes. Our business plan
falls under the category of fast food restaurants, but our establishment will provide
products that are both unique and trendy without affecting its quality and taste. The
proponents will try to connect the line between people from all walks of life by
offering products that are applicable to all sectors of the community. Therefore, we
need employees which can handle people of all ages, and also with the child care
credentials to be able to satisfy parents that are conscious when it comes to the
safety of their children.

COMPETITION AND BUYING PATTERSNS


Price, product quality, ease of service, business location and coziness,
certification and business reputation, these are critical success factors in the food
service industry. Our establishment will be competing well in the defined market by
offering competitive prices, trendy yet high quality products, fast and excellent food
service, a cozy business place, highly qualified staffs, and by maintaining excellent
reputation with the community.
Fast food chains that are already established and known in the area, small
and independent Big Mac Types of business will serve as competitors for Iceburg
which could lure in our potential customers.
Existing Fast Food Chains
Jollibee is Iceburgs worthiest adversary. Aside from the fact that it is an
already established brand it is extremely popular to children, and this is quite risky
for our establishment. However, Iceburg will offer products that are both unique
trendy and social media ready products.
Small, Independently Owned Big Mac Type Businesses
Big Mac Types, which include Big Mac itself, Angel Burger and the likes, will
also serve as competitors. Iceburg will ensure the quality of the patties and buns we
offer as well as ensuring the safety and cleanliness of the foods we offer. Aside from
it we will provide a place that is both cozy and is complete with Wi-Fi connections
which will attract more customers.

COMPETITIVE EDGE
Iceburgs services will be positioned to provide customer with a unique and
trendy food experience:

Charge a premium price (per industry standards) but not exceed


what our target market could bear
Obtain all appropriate licenses and certifications
Set high standards when it comes to hiring through thorough
pre-hiring background screenings which will be performed on all
individuals before they were hired for employment.
Innovative and unique customer relations.
The personal touch in a family friendly atmosphere that only
Iceburg can provide.

MARKETING STRATEGY
In the context of the marketing mix, promotion represents the various
aspects of marketing communication, which is, communicating information about
our business with the goal of generating positive customer response. Advertisement
and promotion forms a major role to attract customers to patronize our business
and the variety of foods we offer.
The proponents has decided to make use of organized gimmicks in
promoting our business to the market.
The companys marketing strategy is focused on establishing our brand and
promoting our image through a variety of marketing channels. This is an overview
of our general marketing strategy which includes:
Public Relations. As owners, we will promote our business and its benefits to the
community through the mass media. We will have articles to be publicized on local
magazines and newspapers as well as rotational airing on local radio stations and
television programming. Potential media outlets include:

DWEB FM 99.9
Vision Cable TV Network
USANT FM

Brochures. A brochure will be designed to communicate our presence, the


products we offer, and the clients we serve in the community.
Flyers. Flyers will be designed to be posted and distributed for a wider span of
promotion, these will be distributed around downtown areas to call potential
customers attention regarding our business opening. Flyers will also be posted in
community locations such as those which involve voluminous traffic of consumers
within our target market, such as:

LCC Department Store


Saint Anthony de Padua
University Gates

Events. Special events, including our grand opening and special holiday parties,
will be promoted to increase our presence and popularity on the community and to
attract first timers and infrequent visitors and customers.
Internet and the Social Media. Aside from the use of the mass media as a
communication and marketing channel, the immense coverage of the internet as
well as the popularity of social media will also be used for promoting our business
as well as connecting with our valued customers. A special website will be created
to accommodate both suggestions and complaints from our clients and customers.
Aside from it promotional activities, such as special offerings and the likes will also

be posted on our website and social media pages. Among the most popular social
media which we will be using for promoting our brand includes:

Facebook
Twitter
Instagram
Tumblr

STRATEGY AND IMPLEMENTATION


Our services will be positioned to provide our customers with a one of a kind
food experience.
Thus, our pricing strategy will be to charge our customer with prices in the
most affordable way we can as per industry standards.
The following subtopics will present our sales strategy, pricing strategy, daily
customer projections and promotion strategy.
Iceburg will also work towards establishing community involvement programs
that will demonstrate how the business can contribute to a better quality of
community life. These include using our facilities to promote philanthropic acts like
fund raising activities organized by civic groups to raise funds for the less fortunate
sector of the community.
COMPETITIVE EDGE
The quality standards that our business will set, our location, the facilities we
offer, the uniqueness and quality of the products we offer will make it difficult for
our competitors to enter and survive in the market area.
Our research shows that opportunity tends to exist in providing high-quality
of service in a family-oriented business environment. Here we can offer competitive
prices to our customers and still be highly profitable in this demanding market.
There are several factors based on the lifestyles of the people around the area to be
considered in order for our business establishment to be accepted and for it to be
able to survive in the long run.

To be highly profitable, but still be able to provide affordable yet high


quality products and services.
Provide a one of a kind food experience to our customers from all walks
of life.
Cool and trendy yet delicious menus.
Exciting work environment.

MARKETING STRATEGY
Our target market will be broad, coming from different age level, people from
all walks of life, and whether residents of the area or not. This is why our marketing
plan started with the construction phase; by keeping in mind that, if it looks
unique, trendy and cool people will come. Thus, the main factor to our business
success is simply that people can enjoy themselves in our premises by giving them
the freedom to choose the presentation of their burgers as well as the liberality of
letting them select the flavors of ice cream they wanted. But for purposes of
estimation and forecasting we will limit our market to student with an age bracket of
0-30.
Our full-time public relations officer or sales manager is a vital part of our
management team, by assuring that customers satisfaction is provided and to be
able to gather information from the public about the quality of service they most
desire. This can provide our company with the means to stay in touch with the
community and be fully ready in meeting their demands.

PROMOTION STRATEGY
Iceburgs first means in promoting our business establishment is through
Word of Mouth.
Word of Mouth advertisement serves as the cheapest form of promotional
activity which will not cost a business a single penny at all. But this medium can be
both helpful and destructive.
Another cheap form of advertisement is through the use of the internet as
well as popular social media sites. Aside from the well-known fact that promoting on
social medias costs nothing we will be able to promote our business to a wide range
of users which are all potential customers.
Our last means of promoting our brand is through the use of the mass media,
like airing our advertisement to local radio stations.

Advertising
Getting our positioning message to the public, a unique way to enjoy your
burgers and ice creams, a place where you can change your eating habit from a
boring and dull one to extremely cool and fun.

Footage and Picture Backgrounds


The interior design of our business place as well as the uniqueness and cool
presentation of the food we offer makes our entire business social media ready.
Brochures
Brochures will be used to inform the general public of the products we offer.
Customer Rewards
We will provide specialized offers and reward to avid and regular customers,
which includes discounts, freebies or tokens. This will be our way of giving back to
them for patronizing our business.

SALES STRATEGY
The proponents strategy is simple; they intend to succeed by giving
customers a combination of a new and appealing business arrangement in a
competitive environment with excellent customer service. Our marketing strategies
are designed to attract both critics and initial customers into the business.
We will ensure to provide our customers with the best value of service and
food quality on every penny they will be spending. Our customers will get what their
moneys worth. Our marketing team will ensure the effectiveness of our marketing
program. By doing this we can expect an even broader market.
Our sales strategy is set on the very basics of business, that is to be able to
please our customers give them what they came for, meet their expectations and
demand, then they will start to patronize Iceburg and they can even encourage new
customers.

SALES FORECAST
Sales as per targeted population
Using our minimal targeted market population of 6,052, we can now compute our
yearly targeted income goals:

Our computed daily customers was calculated through the


information we derived from the questionnaires we have distributed

Frequency

Percentag
e(a)

Everyday
Every other
day
Once a week
Once a
month
Seldom
Total

Targeted
Customers
C= (a x b)

0%
13.26%

Targeted
Populatio
n
(b)
6,052
6,052

Daily Customers

0
803

803/15= 54

46.94%
23.47%

6,052
6,052

2,841
1,420

2841/4/7=101
1420/30=47

16.33%
100%

6,052

988
6,052

988/45= 22
224 customers

The amounts that our daily customers are going to spend for our
burgers were based from:

Amount

Daily
Customers
(b)
224

Customers
Preference
C= a x b
153

Customers

50-60

Percenta
ge
(a)
68.36%

61-70

10.20%

224

22

50% Sliders

71-80

6.12%

224

14

81-90

4.08%

224

50% Regular
Burger
Regular Burger

91-100

3.06%

224

Regular Burger

101 and up

8.16%

224

19

Customized
Burger

Total

100%

Sliders

The amounts that our daily customers are going to spend for our side dishes
were based from:

Percentage
French fries
Onion Rings
Chips
Salad
Pasta
Others
TOTAL

43.00%
6.00%
11.50
12.50%
24.00%
3.00%
100%

Daily
Customers
224
224
224
224
224
224

Customers
that will order
96
13
26
28
54
7

Sales from Ice Cream was set to be at 44.64% of our daily customers
(224 x 44.64%= 99.9936 or 100 persons)

Our sales forecast in five years is shown below:


Year 1
RECEIPTS:
Sliders

Year 2

Customized
Burger (Beef)

P
3,610,8
00
P
1,224,0
00
P
945,000

P
3,886,61
2.5
P
1,317,33
0
P1,017,0
56.25

Customized
Burger (Chicken)

P208,80
0

P
224,721

Pasta

P
874,800

Onion Rings

P
140,400
1,238,4
00
1,080,0
00

P
941,503.
5
P151,105
.5
P1,332,8
28
P
1,162,35
0

Regular Burger

French Fries
Ice cream

TOTAL Receipts

P
9,322,2
00

P
10,033,506.
75

Year 3

Year 4

Year 5

P
4,182,966.
7
P
1,417,776.
4
P
1,094,606.
79
P
241,855.9
8
1,013,293.
14

P4,501,917.91

4,845,189.
16

P 1,525,881.86

1,642,230.
36

P 1,178,070.557

1,267,898.
44

260,297.49

280,145.1
784

1,090,556.74

1,173,711.
70

162,627.2
9
1,434,456.
14
1,250,979.
19

175,027.62

188,373.4
8
1,661,550.
72
1,449,026.
79

1,543,833.42
1,346,366.35

P
10,798,56
1.64

P
11,621,951.9
6

P
12,508,125
.8

Production Program
Iceburg will be operating seven days a week on a twelve (12) hour basis from
9:00 a.m to 9:00 p.m. We have gathered that our prospective customers usually eat
out on weekdays and most likely to eat out also on weekends.
Here is the list of Burgers, Ice cream mixes and other menus that we offer:

The Burger Menus and Mixes that we offer are not limited to the above list. We are
planning to expand every year depending on the demand of our target market.
Our establishment will be observing the regulations set forth by the City of Iriga
including the regulations about proper waste disposals and air pollution. As to abide
with the no plastic rule in Iriga we tend to minimize our plastic usage by using
washable utensils more than disposable ones which we are going to use only on
take-outs. Proper segregation of wastes will, of course, be observed.

Plant Capacity
The total area of our establishment is. This will comprise (3) Round Tables
with (4) Round Chairs each, (2) Long Tables with (2) Long Chairs on each side, (1)
Counter, (1) Storage Room, (1) Working Area, (1) Comfort Room, (1) Office.
Location and Site
Being in the right business situs is a crucial ingredient in a businesses
success, it is a massive factor that is considered when starting a business and it is
vital to get it correct the first time, otherwise, risk of business failure heightens.
It is surprising what can attract a business. A location that offers high income
residents is good for high end retail. Communities with colleges and secondary
schools can help provide part-time clerks and office staff. That is why it is rather
essential that the composition of the surrounding community is to be understood,
business owners and managers should always perform due diligence including a
study of the communitys demographics before deciding on where to put up.
Therefore, without a demographic analysis, the business will not truly understand all
the benefits and offerings of the area as well as the competitive environment of a
location tested and proven.
Business locations are often characterized by their push pull effects. Push
factors of a commercial location include elements that impact the operation of the
enterprise. These might include factors that increase the cost of goods like higher

wages, presence of competitors, availability of communication and Internet as well


as access to transport. These push characteristics deserve serious consideration
before committing to a property.
Generally, pull factors are easier to digest. Pull factors include areas where
labor is less expensive, an expanding consumer base, government incentives, good
transport options, excellent communications and excellent parking. These factors
pull businesses and clientele to the same destination. (How important is location for
business success? Clark Howes)

With these aspects considered, a project feasibility study can surely assist in
the determination of a highly feasible market and strategic business location, thus,
eliminating risks of faulty business settlement which can have an obvious
detrimental effect on the venture. Through the use of a proven and thorough
methodology of site inspection, field works, competition analysis and geodemographic and geo-socioeconomic-lifestyle analysis combined with our project
experience, knowledge and research and the performance of existing Burger
franchises and Ice cream parlor the settlement will not only serve the business per
se but also the customers and the employees the right way, the most profitable
way.
Iceburg will register its business in the city government of Iriga where it will
operate. The business will comply with the requirements needed to legalize its
operation. The business will ensure to complete all the requirements and pay taxes
of its operation.
The establishment of this business is expected to not only provide Irigueos
with an avenue for a more special eating but also to provide socio-economic
benefits through the contribution or revenues remitted to the local government as
well as to provide employment to people possessing skills but are unemployed.
Hiring them will help the nation to decrease the number of unemployment. Also,
these employees will continuously improve, share and develop more their skills and
knowledge.

Geography
Iriga City, a third class city in the province of Camarines Sur, Philippines is
located 400 kilometers (250mi) southeast of Manila, and about 61kilometers (38mi)
north of Legazipi. It is bounded by the town of Buhi in the east, by the municipalities
of Baao, Nabua and Bato in the west, by the province of Albay in the south, and by
the Municipalities of Ocampo and Sangay in the north. The City of Iriga has a total
population of 105, 919 according to the National Population Census. The city
population accounts 2.87% of the total provincial population of Camarines Sur.

Road Network
A small central bus terminal was constructed in the city center to accommodate
buses, shuttles and jeepneys going to manila and neighboring cities. For the city of
Iriga, transportation is very much important because of (1) its strategic location and
membership in the Legazpi-Nabua-Naga- growth corridor; and (2) preferred
development strategy of agro-industrial commerce and tourism. Thus, enhancement
of the city transport system would play crucial role in the attainment of the desired
development.

Power and Electricity


The strategic location of Iriga city along the Luzon grid makes it an ample recipient
of power supply from NAPOCOR. Within the city itself, the Camarines Sur Electric
Cooperative (CASURECO) as the exclusive provider retails supply of electricity. All
barangays within the city are already energized both in urban and rural barangays.

Telecommunication
Iriga City is served with several nationally operating telecom companies: Digitel,
Bayantel, PLDT, Smart, Globe and Sun Cellular maintain major operations in the city.
All of them offer phone and internet services. A few local cable TV operators
dominate the cable TV market. Iriga city is also the center of communications, they
are GMA TV 13 Iriga, Solar News Channel 190 and ABS-CBN Corp. 2 also proposed to
construct a relay station in the city probably on a UHF channel is also planned to set
up a 10 KW UHF relay station here.

Cost Estimate
Based upon the concept plans, a preliminary cost estimate will be developed that
includes all cash outlays required until opening to the public. These costs include:

Renovation
Purchase and installation of furniture, fixtures and other equipment
Start-up inventory and Prepaid Deposits
Soft Costs

The renovation cost estimate will need to be developed in conjunction with a


local general contractor to assure that it reflects local building costs.
Based upon the market analysis, project concept plans and cost estimate, pricing
recommendations and attendance and per capita spending projections will be made
for each category of attendance and a three or five year operating financial pro
forma projections will be prepared detailing probable revenue, expenses, profits,
cash flow, EBITDA and return on investment. The projections will detail expenditures
by revenue and expense category. These projections will be run based upon the
estimates of the projects cost and proposed financing structure (owner equity and
loans).
Our proprietary financial model clearly details all the underlying assumptions
that drive the pro forma attendance and financial projections. This allows you to
evaluate the reasonableness of the conclusions. We believe this is very important to
you as our client, as you are the person who has to make the business decision of
whether or not to proceed.
When the initial capital requirements have been met, securing of necessary permits
and licenses will begin in order of priority, such as securing permits for business
operation and others. While the redesigning of facilities is ongoing, canvassing of
major equipment, facilities and supplies will go hand in hand.
Before the commencement of operation the business must comply with the
following requirements:
1. Barangay Clearance from where the business is located.

2.
3.
4.
5.

Sanitary Permit from the City Health Office of Iriga


Business Name from Department of Trade and Industry
Community Tax Certificate Cedula
Mayors Permit which is issued by the Mayors Office upon proper
requisite of different permits, is complied.
6. Bureau of Internal Revenue for the Tax certificate.
The table below shows the cost of legal permits needed in order to start the
business such as mayors permit, sanitary, garbage and clearance fees, BIR and DTI
fee.

Legal Costs
Particulars
Fire inspection Fee
Mayors Permit
Sanitary Fee
Garbage Fee
Clearance Fee
BIR
DTI
Zoning Clearance
Total

Amount
P
100.00
300.00
150.00
100.00
80.00
850.00
700.00
80.00
P
2,360.00

Utilities
The supply of water, electricity and payment of the space tent will be used in the
production site for the usage at water and electricity.
Description
Space rent
Electricity
Utilities (water, telephone,
internet)
Total

Amount per Month


P
10,000.00
6,000.00
2,999.00

Amount per Year


P
120,000.00
72,000.00

P
17,000.00

P
204,000.00

23,988.00

MATERIALS AND INPUTS

MACHINE

PRICE

IMAGE
(NOTE: Actual unit
may vary from
pictures shown.)

DESCRIPTION/SPECIFICATION

- Item Number: HGG-751B


- 2-basket fryer with lid
- Dimension: 1060700970
Gas griddle
with gas
fryer with
disassembled
shelf

- Heat Flux (Kw/h) : 13.5

P
25,600

- Strong stainless steel body with splash


guard.
- Thick steel plate for heat retention, heat
uniform.
- Energy saving and safety.

Gas Stove

P 6,105

LPG

P1,200

Ignition mode : Auto Ignition


Burner : 4 Burner
Body : Glass
Warranty : 2 year
Dimensions : Breadth
Brand : Pigeon
SUPC: SDL470156951

Net Weight: 22 kg

Airconditioner

P
31,998

Performance
Energy Efficiency
EER (Cooling, Btu/W)9.23
EER (Cooling, W/W)
2.71
Moisture Removal (l/hr)
2.4
Noise Level
Indoor High/Low
41 / 33dBA
Outdoor High
52dBA

Chest Freezer

P 19,950

STORAGE CAPACITY 298 liters / 10.5


cuft.
VOLTAGE
220 - 240V
FREQUENCY
50 - 60Hz
INTERIOR
White Coating
Aluminum Aluminum Interior
REFRIGERANT
HFC - 134a
TYPE
Top Open
Chest Freezer
DIMENSION (W x D x H)
1098x 584 x
932mm
GROSS WEIGHT
62kg
CLIMATE CLASS
Tropical
KEY LOCK
Yes

Refrigerator

P 28, 498

GE GMV100BAYRATop Freezer
238 Liters

P 11,997

32 inches
Home Dashboard
Premium Content
Yes
App Store
Yes
Full Web Browser
Smart Share Plus
Yes
Skype Ready
Smart Phone Remote Support Yes

LG TV

3.0

Yes
Yes

Style:
Hot Rod Chevie
Model:
Hot Rod
Material:
Vinyl
Country/Region of Manufacture:
United States

Diner Booth
Set

P 41, 960

Round Tables

P 8,305

Weights & Dimensions


Table: 40.5" H x 36" W x 36" D
Overall Product Weight: 46lbs

P 2290

Vintage Retro Style


Adjustable Seat Height from 23.5 to
31.75 inch
15.75 inches padded vinyl 360 degrees
swivel seat
Weight 330 lbs

Stool

Ceramic
Plates

Digital
Weighing
Scale

P 50
each

Material: ceramic/porcelain
Color: natural
Eco-friendly
Dimensions:
30.5 x 10.5 x 2.5cm
33 x 10.5 x 2.5cm
38.5 x 13 x 3cm
41 x 13 x 3cm
48.5 x 13 x 3cm

P 350

Material: Engineering Plastic


Battery operated
4-Digit LCD display
Multiple weighing units like g/oz
With plastic cover to use as load
protector and item tray
Special Features: Auto calibration, Low
battery indication, Over load limit hint,
Auto Power Off
5 kg capacity with 1 gm accuracy

Lime Glass

P 20
each

Spoon and
Fork

P 39.95
each

Ice Cream
Scooper

Food
Processor

Blender

P 600
(set of 2)

Material: Soda Lime Glass


Capacity 14oz / 400ml
Fizzup Laser Etching Technology
Dishwasher-Safe
Resistant to Sudden Temperature
Change

Stainless
Silver

Material:Stainless Steel
Color: Silver
Scoop Extra Deep:6cm
Length: 23.5cm
Size:23.5x6cm/9.25x2.36Inch
Weight:252g

P 3,195

Body material:Brushed aluminium


metal
Bowl material:Plastic
Colour:Silver
Size (cm):38.7H x 21.3W x 21.9D
Speed:Variable + Pulse
ThermoResist glass blender:Yes
Wattage:1000W
Weight:5.4kg

P 2,390

Juicer Extractor
220V-60Hz
500W
Built-in safety lock
Overheating protection
Easy to use

Kitchenware

Packaging
for To Gos

P 2,606
(set)

Hand Held Grater, Wine Bottle Opener,


Can Opener, Measuring Cups, Peeler,
Slotted Spoon, Pasta Spoon, Spoon,
Steak Knives, Utility Knife, Ice Cream
Scoop, Multipurpose Kitchen Shears,
Cutting Board, Slicer, Strainer

P 3,200
(set)

Paper Cups
Burger Clamshell Boxes
French Fries Holders
Burger Wrapper
Brown Bags
Plastic Spoons
Straws

Cost of Investment on is as follows: (in Pesos)


Gas Griddle with Gas Fryer
Air Conditioner
Gas Burner
LPG
Chest Freezer
Refrigerator
LG TV
Cash Register Machine
Diner Booth Set
Round Table
Stool
Ceramic Plates
Digital Weighing Scale

2
2
10
50
2

25,600.00
31,998.00
6,105.00
1,200.00
19,950.00
22,599.00
11,997.00
15, 400.00
83,920.00
16,610.00
22,900.00
2,500.00
700.00

Lime Glassware
Spoon
Fork
Ice Cream Scooper
Food Processor
Blender
Kitchenware
Packaging for To Gos
Total

50
50
50
2
set
set

1,000.00
1,997.90
1,997.90
600.00
3,195.00
2,390.00
2,606.00
3,200.00
P 278,465.80

SOCIAL DESIRABILITY ASPECT


The business enterprise is deemed to be a great contributor in raising
revenues for the government for its functions. This is in the form of income tax,
permits, licenses, and other regulatory fees. Iceburg is ergonomically designed at
the customers comfort, therefore making it wholly beneficial to the society.
Unemployment rate will be lessened because it will provide job opportunities to
those who are unemployed. Through this, the Introduction of Iceburg to the society
will attain desirability and acceptance from the public.