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CHAPTER I

INTRODUCTION

A cafeteria is a restaurant in which patrons wait on themselves, carrying their food to

tables from counters where it is displayed and served. It is also a type of food service location

in which there is little or no waiting staff table service, whether a restaurant or within an

institution such as a large office building or school; a school dining location is also referred to

as a dining hall or canteen (in British English). Cafeterias are different from coffeehouses,

although that is the Spanish meaning of the English word.

Instead of table service, there are food-serving counters/stalls, either in a line or

allowing arbitrary walking paths. Customers take the food they require as they walk along,

placing it on a tray. In addition, there are often stations where customers order food and wait

while it is prepared, particularly for items such as hamburgers or tacos which must be served

hot and can be quickly prepared. Alternatively, the patron is given a number and the item is

brought to their table. For some food items and drinks, such as sodas, water, or the like,

customers collect an empty container, pay at the check-out, and fill the container after the

check-out. Free second servings are often allowed under this system. For legal purposes (and

the consumption patterns of customers), this system is rarely, if at all, used for alcoholic

beverages in the US.

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Statement of the Problem

The study entitled A Project Study on Establishing a Cafeteria at United Nations

Avenue, Manila was created and sought answers to the following questions:

Marketing Aspect

1. What is the potential target market of the cafeteria?

2. What marketing strategy should be adopted in order to achieve the success of the

business?

3. What pricing strategy will be used?

4. What is the uniqueness and exceptionality of the cafeteria among others?

Production and Technical Aspect

1. What are the machines and equipments that will be needed for the business?

2. Where exactly at United Nations Avenue will be the project should be located and

why is that place suitable for the proposed project?

3. Should we rent, buy or lease the place?

4. Where should we get the maintenance of our supply?

Organization and Management Aspect

1. Where should we get the human resource? What are the requirements for the

position?

2. What appropriate and effective form of organization will be used?

3. What are the benefits that will be given to the staffs?

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4. What are the policies and strategies that will be practiced all throughout the

business?

Financial Aspect

1. How much will be the total cost of the project?

2. What will be the primary financing of the business?

3. What financial strategies will be adopted for the feasibility growth of the business?

4. How long will it take to recover the capital used?

Objectives of the Study

The overall aim of this study was to collect valid and reliable information about the

proposed cafeteria. Within this theme, this research had a number of objectives. First, to be

able to know the opportunities and threats of the business. Second, to have a closer look at the

cafeteria industry in United Nations Avenue. Then, to determine the practicability of

establishing a cafeteria firm in United Nations Avenue. And also, to enumerate business

specifics for the propose cafeteria firm in United Nations Avenue. Lastly, to propose the

action to be taken; whether to establish a cafeteria firm or, not.

Significance of the Study

The main purpose of this study is to know if establishing a cafeteria firm at United

Nations Avenue will be successful or not. Thus, the result of this study will benefit the owner

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of the cafeteria. This study is significant because it will provide history and some essential

information about establishing a cafeteria firm at United Nations Avenue.

This study will serve as the basis for plans of action by the owner of the said cafeteria

with regard to the necessary actions for the improvement and development of the proposed

business.

Among the persons who will be directly or indirectly involved are the following:

This study will not only benefit the owner but also the entire business staffs as they set

the improvement and development of the cafeteria for the satisfaction and pleasure of their

consumers or customers.

The whole management will have a better understanding of the limitation; knowledge

about the proposed cafeteria will enable them to know why they should establish a cafeteria at

United Nations Avenue, Manila.

Furthermore, this study will serve as a model for future studies that has a close topic to

ours. Future researchers will benefit from this study, and it will provide them the facts needed

to compare their study during their respective time and usability.

Scope and Delimitations

The reason why this study is conducted is to know if establishing a cafeteria firm at

United Nations Avenue will be successful or not. The study considers the respondents

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personal information such as their name (optional), gender, age, civil status, source of income,

and daily allowance.

The researchers limited the study to 100 male and female who is located at United

Nations Avenue, Manila during the gathering of data. Each respondent was given a

questionnaire to answer. The respondents will be chosen randomly to avoid prejudice of their

perceptions and opinions.

In order to assure manageability of the collected data, the questionnaire only included

multiple choice items, scale, checklist and ranking or rating questions and did not include

open- ended response items.

Methodology

Research Design

Field research involves a range of well-defined, although variable, methods: informal


interviews, direct observation, participation in the life of the group, collective discussions,
analyses of personal documents produced within the group, self-analysis, results from
activities undertaken off- or on-line, and life-histories. Although the method generally is
characterized as qualitative research, it may and often does include quantitative dimensions.
Case method research involves laboratory controls and tools to ensure limiting outside factors
from affecting the particular study one is attempting to research. Field method research allows
the input of random variables in efforts to merely observe a particular variable across
numerous situations or backgrounds.

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Respondents

The respondents of this study consisted of people of are located in United Nations

Avenue, Manila during the research. They are the ones who are knowledgeable enough to

answer the problems posed in the present study. They answered the questionnaire that the

researchers gave them which supplies the information the researchers need.

The Variables

This study has two sets of variable, the dependent and independent variables. The

independent variable includes the respondents profile in terms of name (optional), gender,

age, civil status, source of income, and daily allowance. The dependent variable focuses on

the main problem of the study in terms of marketing aspect, production and technical aspect,

organization and management aspect and financial aspect.

Population and Sampling

A population commonly contains too many individuals to study conveniently, so an

investigation is often restricted to one or more samples drawn from it. The researchers agree

that they will have 0.05% of the approximately 1000 population as a sample which leads to 50

samples or respondents. In order to choose the respondents, the researchers used random

sampling. In this technique, each member of the population has an equally likely chance of

being selected.

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Research Instrument

The study used questionnaires as the main tool in evaluating the study. Questionnaires

have advantages over some other types of surveys in that they are cheap, do not require as

much effort from the questioner as verbal or telephone surveys, and often have standardized

answers that make it simple to compile data. It was created using suitable questions modified

from related research and individual questions formed by the researchers.

Research Procedure

All the questionnaires were personally given to relevant individuals to get their

responses. The data were tallied and recorded under each table after the analysis. Collected

data was organized and tabulated for the final statistical treatment and analysis.

Statistical Treatment of Data

Different statistical tools were used in analyzing the data gathered. Frequency counts

and percentage were used to analyze the data that were obtained from the

respondents.

In establishing the score distributions and averages of the data gathered, arithmetic

was used.

1. Percent

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100

Where :

= is the frequency

= is the respondents

2. Mean

Where:

= is the sum of the frequency

= is the total number of respondents

Review of Related Literature

A STUDY OF STUDENTS PERCEPTION ON CAFETERIA DESIGN IN UTM

CAMPUS (FOREIGN)

At present, designs of cafeteria in local campuses were adapted by a standard design.

However the building design itself failed to accommodate present issue such as overcrowd of

students during peak hours, inappropriate circulation or ventilation and so on. According to

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George Nelson , founders of American modernism stated that design is respond to social

change. The statement clearly addressed that a building should be design to adapt social

changes in years to come. By implying standard design of cafeteria in all local campuses at

various places does not consider it needs towards different students, places and changes .A

study on this cafeteria allows the researcher to understand the lack of functional spaces need

by UTM students for their campus cafeteria. Spaces were not only congested and lacks of

privacy during peak hours, students activities are mostly restricted due to the space provided

are mainly for eating only. The perception of the students also indicated what they prefer and

what might able to change in terms of the cafeteria design to provide a better cafeteria. The

most essential aspect to provide is the space program and its arrangement. The key thing to

provide a good cafeteria is firstly to provide different type of spaces, well function for

students social and physical activities instead of just a place for eating only. Spaces provided

are also needed to arrange with the consideration of students culture, the circulation to avoid

high congestion, privacy to avoid unnecessary noise and interruption as well as the faade

treatment that provide a well comfort cafeteria in terms of thermal comfort or green space.

Students feedback allow us to understand what a student needs in a cafeteria. After analyzing

the data and findings of the research, architectural design issue faced by the cafeterias is able

to identify. In conclusion, the research conducted is to study the students perception towards

campus cafeteria From the data analysis and result findings, guidelines on how to design a

good campus cafeteria were formulated. The outcome of the guidelines is described as what

need to provide and how to provide to the students a good cafeteria in terms of architectural

aspect. The research is able to identify the factor to architectural problem on current campus

cafeteria and to what extend the perception of students towards it.

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Definition of Terms

Cafeteria. A restaurant in which the customers serve themselves or are served at a counter and

take the food to tables to eat.

Target Market. A group of customers towards which a business has decided to aim

its marketing efforts and ultimately its merchandise. A well-defined target market is the first

element to a marketing strategy.

Marketing Strategy. Is the fundamental goal of increasing sales and achieving a sustainable

competitive advantage.

Consumer. Is a person or organization, that uses economic services or commodities.

In economic systems consumers are utilities expressed in the decision to trade or not.

Pricing Strategy. A business can use a variety of pricing strategies when selling

a product or service.

Partnership. An arrangement where parties, known as partners, agree to cooperate to advance

their mutual interests.

Finance. A field that deals with the allocation of assets and liabilities over time under

conditions of certainty and uncertainty.

Feasibility. The state or degree of being easily or conveniently done.

Respondent. A person who replies to something, especially one supplying information for a

survey or questionnaire or responding to an advertisement.

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Questionnaires. A set of printed or written questions with a choice of answers, devised for the

purposes of a survey or statistical study.

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CHAPTER II

MARKETING ASPECT

This chapter will discuss all the marketing aspects of the cafeteria. The discussion will

include the industry profile, description and uses of the product, consumer behavior, demand

analysis, projected demand, supply analysis, projected supply, demand and supply

consolidation, other market consolidation, competitors, market share, purchases, projected

purchases, marketing strategy, promotional strategy, pricing strategy, cost per unit, selling

price and terms of sales.

Industry Profile

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.

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,

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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.

Description and Uses of the Product

Most people would agree that, like having a good taste, good nutrition food are

important to ones well-being, since many hours are spent bearing weight on them. Yet people

frequently buy delicious yet has low-nutrition meals depends on price, or other reasons, and

then keep eating it till they are lost interest, because they just eat the same food many times.

Bad nutrition can be prevented or reduced from buying healthy meals and proper

exercise. Our cafeteria also can protect us from direct contact on germs. Thats why as being

engage in this business, we are offering different meals that are suited to anybody.

Consumer Behavior

The cafeterias consumers are those individuals who make food decisions everyday

based on their need and wants. In short, the target market of the cafeteria is everyone because

everyone needs to eat. The researchers need to consider the factors that affect or contribute to

the buying behavior in order to satisfy the customers needs and wants and also to help them

identify the best marketing strategy to promote the business.

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The study of consumer behavior plays an important role in marketing which need to

study in how individuals, groups and organizations select, buy, use and dispose of goods,

services, idea or experiences to satisfy the needs and wants of the consumers. Factors that

may influence consumer purchase decisions are the cultural influences, social influences,

personal factors and psychological factors. Those of the factors are vital when using them to

apply as the marketing strategies. It affects peoples life in a way that their perspectives in my

buying habits and in decision making were changed. Also, consumer behavior shows how

consumers are motivated in buying preferences and how to come up with a better decision

strategies differ between products that differ in their level of importance or interest. As a

result, this impact will surely bring about certain changes in behaviors based on positive or

negative aspects of learning, which more explicitly, positive or negative experiences in a

situation that they will encounter in the market place.

Demand Analysis

Table 2.0 shows the target market of the proposed cafeteria. Based on the summary of

our survey results, we prefer that 22% of the total population is in the age bracket of 5-15

years old, 27% of the total population is in the age bracket of 16- 25 years old, 35% of the

total population is in the age bracket of 26- 35 years old, and 16% of the total population is in

the age bracket of 36 years old- above.

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Table 2.1

Profile Total Population % Equivalent

Students 37, 528 22% 8, 256

Workers 37, 528 27% 10, 133

Bystander 37, 528 35% 13, 135

Other Residences 37,528 16% 6, 004

Projected Demand

Projected demand is the activity of estimating the quantity of a product or service that

consumer will purchase. Demand forecasting may be used in making pricing decisions, in

assessing future capacity requirements or in making decisions or whether to enter a new

market.

Table 2.2.1

Year Population Growth Rate Total Population


(Students) (1.7% annually)

2015 8,256 140 8,396

2016 8,396 142 8,539

2017 8,539 144 8,683

2018 8, 683 146 8,829

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2019 8,829 148 8,977

Note: 22% of the total population is in the age bracket students

Table 2.2.2

Year Population Growth Rate Total Population


(Workers) (1.7% annually)

2015 10,113 172 10,285

2016 10,825 174 10,459

2017 10,459 176 10,635

2018 10,635 178 10,813

2019 10,813 180 10,993

Note: 27% of the total population is in the age bracket of workers

Table 2.2.3

Year Population Growth Rate Total Population


(Bystander) (1.7% annually)

2015 13,135 223 13,358

2016 13,358 225 13,583

2017 13,583 227 13,810

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2018 13,810 229 14,039

2019 14,039 231 14,270

Note: 35% of the total population is in the age bracket of bystander

Table 2.2.4

Year Population(Residences) Growth Rate Total Population


(1.7% annually)

2015 6,004 102 6,106

2016 6,106 104 6,210

2017 6,210 106 6,316

2018 6,316 108 6,424

2019 6,424 110 6,534

Note: 16% of the total population is in the age bracket of residences

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Supply Analysis

A detailed review of the inputs and outputs of a process that is employed to assess

how the available quantity of a product is affected by changes in demand, input factors by

changes in demand and production technique. Supply analysis is often used to make

key policy decisions by manufacturing business managers since it gives them insight into

how shifts in production are likely to influence market supply.

Table 2.3

Silogs:

Products 2015 2016 2017 2018 2019

Tapsilog 9,125 9,135 9,145 9,155 9,165

servings servings servings servings servings

Bangsilog 7,300 7,310 7,320 7,330 7,340

servings servings servings servings servings

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Chicksilog 7,300 7,310 7,320 7,330 7,340

servings servings servings servings servings

Hotsilog 5,415 5,425 5,435 5,445 5,455

servings servings servings servings servings

Liemposilog 5,475 5,581 5,588 5,591 5,598

servings servings servings servings servings

Porksilog 5,475 5,580 5,585 5,590 5,595

servings servings servings servings servings

Longsilog 3,653 3,758 3,759 3,763 3,768

servings servings servings servings servings

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Lugaw:

Products 2015 2016 2017 2018 2019

Lugaw Plain 10,950 10,950 10,950 10,950 10,990

servings servings servings servings servings

Lugaw with Egg 7, 300 7, 300 7, 300 7, 300 7,300

servings servings servings servings servings

Goto 10,950 10,950 10,950 10,950 10,990

servings servings servings servings servings

Goto with Egg 7, 300 7, 300 7, 300 7, 300 7,300

servings servings servings servings servings

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Beverages:

Products

Coke 8 oz. 10, 950 10, 950 10,950 10, 950 10,950

servings servings servings servings servings

Coke Litro 7,300 7,300 7,300 7,300 7,300

servings servings servings servings servings

Pepsi 8 oz. 20 7,300 7,300 7,300 7,300

servings servings servings servings servings

Pepsi Blue 8 oz. 5,475 5,475 5,475 5,475 5,475

servings servings servings servings servings

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Projected Supply

When population grow, the supporters of target market need to increase its supply to

satisfy the increasing needs of the customer by projecting supply. The projected supply for

five years increase year by year due to the increasing demand of the customers.

Table 2.4.

Silogs: Tapsilog Bangsilog Chicksilog Hotsilog Liemposilog Porksilog Longsilog

2015 5,475 3,650 3,650 2,555 2,555 2,555 2,555

2016 5,480 3,655 3,655 2,560 2,560 2,560 2,560

2017 5,485 3,660 3,660 2,565 2,565 2,565 2,565

2018 5,490 3,665 3,665 2,570 2,570 2,570 2,570

2019 5,500 3,670 3,670 2,575 2,575 2,575 2,575

Lugaws: Lugaw Plain Lugaw with Egg Goto Goto with Egg

2015 7,300 3, 650 3,655 3, 650

2016 7,310 3,655 3,655 3,655

2017 7, 320 3,670 3,660 3,670

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2018 7,330 3,675 3,665 3,675

2019 7,340 3,680 3,670 3,680

Beverages: Coke Sakto Coke Litro Pepsi 8oz Pepsi Blue 8 oz

2015 5, 475 3,655 3,650 3, 650

2016 5,480 3,655 3,655 3,655

2017 5,490 3,660 3,660 3,670

2018 5,500 3,665 3,665 3,675

2019 5,510 3,670 3,670 3,680

Demand and Supply Consolidation

Table 2.5

Silogs: Demand Supply Gap

2015 38, 145 28, 550 9, 595

2016 38, 791 23, 030 15, 761

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2017 39,444 23, 065 16, 379

2018 40, 105 23, 100 17, 005

2019 40, 774 23,140 17, 634

Silogs: Demand Supply Gap

2015 38, 145 18, 255 19, 890

2016 38, 791 18, 275 20, 516

2017 39,444 18, 320 21, 124

2018 40, 105 18, 345 21, 760

2019 40, 774 18, 370 22, 404

Beverages: Demand Supply Gap

2015 38, 145 23,140 17, 634

2016 38, 791 23,140 17, 634

2017 39,444 23,140 17, 634

2018 40, 105 23,140 17, 634

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2019 40, 774 23,140 17, 634

Competitors

Any person or entity which is a rival against another. In business, a company in the

same industry or a similar industry which offers a similar product or service. The presence of

one or more competitors can reduce the prices of goods and services as the companies attempt

to gain a larger market share. Competition also requires companies to become more efficient

in order to reduce costs.

Direct Competitors: Indirect Competitors:

Gemas Lugawan Chowking

Olys Tapsihan Inasal Chicken Bacolod

Matys Iskul Buko

Ate Fes Kitchen Hot Chicks

Reymon Eatery Siomai House

Tapsilogan ni Mama Leng Hen Lin

Oyster Bar - The Pearl Manila

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Market Share

The percentage of an industry or market's total sales that is earned by a particular company

over a specified time period. Market share is calculated by taking the company's sales over the

period and dividing it by the total sales of the industry over the same period. This metric is used

to give a general idea of the size of a company to its market and its competitors.

Table 2.6

Restaurant Industry

Fine Dining Casual Dining Fast Food Cafes Bar and Pubs

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Purchases

Table 2.7

Silogs Rice Egg Hotdog Tapa Porkchop Tocino Longganisa Chicken Liempo

Lugaws Rice Egg Pork

Beverages Coke Coke Pepsi Pepsi Blue


Litro
8 oz 8oz 8 oz

Projected Purchases

Table 2.8

Silogs:

Raw Materials Price Quantity Total Price

Rice 1, 600 per sack 40 sacks 64, 000.00

Egg 60 per dozen 30 dozens 1, 800. 00

Hotdog 182 per kilo 30 kilos 5, 460. 00

Tapa 235 per kilo 50 kilos 11, 750. 00

Porkchop 182 per kilo 50 kilos 9, 100. 00

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Tocino 165 per kilo 30 kilos 4, 950. 00

Longganisa 140 per kilo 30 kilos 4, 200. 00

Chicken 160 per kilo 50 kilos 8, 000. 00

Liempo 180 per kilo 20 kilos 3, 600. 00

Total 112, 860. 00

Lugaws:

Raw Materials Price Quantity Total Price

Rice 1, 600. 00 per sack 5 sacks 8, 000.00

Egg 60 per dozen 10 dozens 600.00

Pork 175 per kilo 10 kilos 1, 750. 00

Total 10, 350. 00

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Beverages:

Raw Materials Price Quantity Total Price

Coke 8 oz. 6.65 per piece 100 pieces 665. 00

Coke Litro 17.35 per piece 50 pieces 867. 50

Pepsi 8 oz. 5.50 per piece 50 pieces 275.00

Pepsi Blue 8oz. 5.50 per piece 50 pieces 275. 00

Total 2, 082. 50

Total Projected Purchases = 125, 292. 50

Marketing Strategy

The first strategy is market penetrate. The cafeteria is committed to improving the

customer experience in ways they believe few in the industry have done. This business plan to

execute a broader marketing strategy, not simply to build name recognition and awareness but

also to build deeper relationships with the target customers whom they believe will help promote

the brand. The next strategy is market development. The expansion into Filipino has made them

subject to Filipino economic conditions, particularly currency exchange rate fluctuations and

political factors, either of which could have an adverse effect on the financial condition and

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results of operations. If the cafeteria, expands into other foreign markets, will be subject to other

foreign economic conditions and political factors including taxation.

Promotional Strategy

Proper promotion of goods can increase sales and lead to higher business profits.

Products can be promoted through a variety of methods, which typically fall into two categories.

Promotion can be based on a "push strategy," which utilizes promotional activities and

employees to establish product demand, or a "pull strategy," which encourages customer

purchases through advertisements. The most successful strategies tie the method of promotion to

the type of product for maximum sales and business impact. To reach the target customer group,

we use a mix of the following marketing methods: radio, billboards, social networking, television

and in-store sampling. Expect to continue to increase media impressions as they strive to build

deeper relationships with their customers. We believe marketing represents an opportunity to

create additional competitive advantage and brand awareness.

Pricing Strategy

A penetration pricing strategy is used as a loyalty-building or market-entry tool. The

penetration pricing strategy offers a high-quality product at a much lower than expected price.

This combination helps the business enter a new market even when strong competitors exist, and

it builds loyalty with new customers from the beginning. The penetration strategy can

dramatically increase the lifetime value of customers, because they're "hooked" with the

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outstanding first product offering and--assuming future products are just as high quality--they are

more willing to buy additional products from the company long into the future.

Cost per Unit

Table 2.9

Silogs:

Products Unit Cost

Tapsilog 35.00

Bangsilog 35.00

Chicksilog 35.00

Hotsilog 28.00

Liemposilog 42.00

Porksilog 35.00

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Longsilog 30.00

Lugaws:

Products Unit Cost

Lugaw Plain 4.00

Lugaw with Egg 9.00

Goto 11.00

Goto with Egg 16.00

Beverages:

Products Unit Cost

Coke 8 oz. 6.65

Coke Litro 17.35

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Pepsi 8 oz. 5.50

Pepsi Blue 8. oz 5.50

Selling Price

Table 2.10

Silogs:

Products Selling Price

Tapsilog 50.00

Bangsilog 50.00

Chicksilog 55.00

Hotsilog 35.00

Liemposilog 60.00

Porksilog 50.00

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Longsilog 40.00

Lugaws:

Products Selling Price

Lugaw Plain 10.00

Lugaw with Egg 16.00

Goto 20.00

Goto with Egg 26.00

Beverages:

Products Selling Price

Coke 8 oz. 8.00

Coke Litro 21.00

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Pepsi 8 oz. 8.00

Pepsi Blue 8. oz 8.00

Terms of Sales

I. Definitions
In this document the following words shall have the following meanings:
1. "Buyer" means the organization or person who buys Goods.
2. "Goods" means the articles to be supplied to the Buyer by the Seller;
3. "Intellectual Property Rights" means all patents, registered and unregistered
designs, copyright, trademarks, know-how and all other forms of intellectual
property wherever in the world enforceable;

II. General
1. These Terms and Conditions shall apply to sales of Goods by the Seller to the
Buyer to the exclusion of all other terms and conditions referred to, offered or
relied on by the Buyer whether in negotiation or at any stage in the dealings
between the parties, including any standard or printed terms tendered by the
Buyer, unless the Buyer specifically states in writing, separately from such
terms, that it wishes such terms to apply and this has been acknowledged by the
Seller in writing.
2. Any variation to these Terms and Conditions (including any special terms and
conditions agreed between the parties) shall be inapplicable unless agreed in
writing by the Seller.

III. Price and Payment


1. The price shall be the Recommended Retail Price less agreed discount, unless
otherwise agreed in writing between the parties. The price is exclusive of VAT
or any other applicable costs.

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IV. Description
Any description given or applied to the Goods is given by way of identification only
and the use of such description shall not constitute a sale by description. For the
avoidance of doubt, the Buyer hereby affirms that it does not in any way rely on any
description when entering into the contract.

V. Sample
Where a sample of the Goods is shown to and inspected by the Buyer, the parties
hereto accept that such a sample is representative in nature and the bulk of the order
may differ slightly as a result of the manufacturing process.
VI. Delivery
1. Unless otherwise agreed in writing, delivery of the Goods shall take place at the
address specified by the Buyer on, or as close as possible to the date required
by the Buyer. The Buyer shall make all arrangements necessary to take delivery
of the Goods whenever they are tendered for delivery.
2. If the Seller is unable to deliver the Goods because of actions or circumstances
under the control of the Buyer, then the Seller shall be entitled to place the
Goods in storage until such times as delivery may be effected and the Buyer
shall be liable for any expense associated with such storage.

VII. RISK
Risk in the Goods shall pass to the Buyer upon receipt of the goods. Where the Buyer
chooses to collect the Goods itself, risk will pass when the Goods are entrusted to it or
set aside for its collection, whichever happens first.

VIII. TITLE
Title in the Goods shall not pass to the Buyer until the Seller has been paid in full for
the Goods.

IX. RETURN OF UNUSED GOODS


1. All goods are sold on a firm sale basis, i.e. the Seller will not take back any
goods not required or sold by the Buyer, unless otherwise agreed, in which case
the following terms apply.

X. LIMITATION OF LIABILITY

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1. The Seller shall not be liable for any all loss or damage suffered by the Buyer
in excess of the contract price.
2. Nothing contained in these Terms and Conditions shall be construed so as to
limit or exclude the liability of the Seller for death or personal injury as a result
of the Seller's negligence or that of its employees or agents.

XI. INTELLECTUAL PROPERTY RIGHTS


All Intellectual Property Rights produced from or arising as a result of the performance
of this Agreement shall, so far as not already vested, become the absolute property of
the Seller, and the Buyer shall do all that is reasonably necessary to ensure that such
rights vest in the Seller by the execution of appropriate instruments or the making of
agreements with third parties.

XII. FORCE MAJEURE


The Seller shall not be liable for any delay or failure to perform any of its obligations if
the delay or failure results from events or circumstances outside its reasonable control,
including but not limited to acts of God, strikes, lock outs, accidents, war, fire,
breakdown of plant or machinery or shortage or unavailability of raw materials from a
natural source of supply, and the Seller shall be entitled to a reasonable extension of its
obligations. If the delay persists for such time as the Seller considers unreasonable, it
may, without liability on its part, terminate the contract.

XIII. RELATIONSHIP OF PARTIES


Nothing contained in these Terms and Conditions shall be construed as establishing or
implying any partnership or joint venture between the parties and nothing in these
Terms and Conditions shall be deemed to construe either of the parties as the agent of
the other.

XIV. ASSIGNMENT AND SUB-CONTRACTING


The contract between the Buyer and Seller for the sale of Goods shall not be assigned
or transferred, nor the performance of any obligation sub-contracted, in either case by
the Buyer, without the prior written consent of the Seller.

XV. WAIVER
The failure by either party to enforce at any time or for any period any one or more of
the Terms and Conditions herein shall not be a waiver of them or of the right at any
time subsequently to enforce all Terms and Conditions of this Agreement.
37
XVI. SEVERABILITY
If any term or provision of these Terms and Conditions is held invalid, illegal or
unenforceable for any reason by any court of competent jurisdiction such provision
shall be severed and the remainder of the provisions hereof shall continue in full force
and effect as if these Terms and Conditions had been agreed with the invalid, illegal or
unenforceable provision eliminated.

XVII. GOVERNING LAW AND JURISDICTION


This Agreement shall be governed by and construed in accordance with the laws of
England and the parties hereby submit to the exclusive jurisdiction of the courts.

38
CHAPTER III

PRODUCTION AND TECHNICAL ASPECT

Description of Operation/ Process

A cafeteria is a type of food service location in which there is little or no waiting staff

table service, whether a restaurant or within an institution such as a large office building or

school; a school dining location is also referred to as a dining hall or canteen Cafeterias are

different from coffeehouses, although that is the Spanish meaning of the English word.

Instead of table service, there are food-serving counters/stalls, either in a line or allowing

arbitrary walking paths. Customers take the food they require as they walk along, placing it on a

tray. In addition, there are often stations where customers order food and wait while it is

prepared, particularly for items such as hamburgers or tacos which must be served hot and can be

quickly prepared. Alternatively, the patron is given a number and the item is brought to their

table. For some food items and drinks, such as sodas, water, or the like, customers collect an

empty container, pay at the check-out, and fill the container after the check-out.

39
How to start a cafeteria: Figure 3.1

Write your business and marketing plans

Secure funding for your

Develop your logo, graphics, business cards, and all other promotional materials

Investigate several different storefront locations

Make changes to the decor, if desired

Purchase additional equipment required to run your cafe

Build your menu

Develop relationships with suppliers and distributors

Market and promote your cafe business

Hire and train your kitchen and waitstaff

Open for business when you are ready

Offer loyalty program

40
Designing Production Facilities

We contract many manufacturing companies to support our cafeteria. One of our main

manufacturers is the purefoods. We also get our meat products at Hymen Meat Supplies.

These are the steps in creating our porducts:

Tapsilog

Ingredients:

lb. beef tapa

1 cup sinangag (garlic fried rice)

1 piece fried egg (over easy)

Spiced vinegar (sinamak or pinakurat)

Instructions:

1. Arrange 1 cup sinangag, a quarter of the beef tapa, and piece of fried egg in a plate.

2. Serve with spiced vinegar and ketchup.

3. Share and enjoy!

Bangsilog

Ingredients:

of fried baby milk fish

1 cup sinangag (garlic fried rice)

1 piece fried egg (over easy)

41
Spiced vinegar (sinamak or pinakurat)

Instructions:

1. Arrange 1 cup sinangag, a half of fried baby milk fish, and piece of fried egg in a plate.

2. Serve with spiced vinegar and ketchup.

3. Share and enjoy!

Chicsilog

Ingredients:

Regular cut of fried chicken

1 cup sinangag (garlic fried rice)

1 piece fried egg (over easy)

Spiced vinegar (sinamak or pinakurat)

Instructions:

1. Arrange 1 cup sinangag, a regular cut of fried chicken, and piece of fried egg in a plate.

2. Serve with spiced vinegar and ketchup.

3. Share and enjoy!

Hotsilog

Ingredients:

2 piece of regular size hotdog

1 cup sinangag (garlic fried rice)

42
1 piece fried egg (over easy)

Spiced vinegar (sinamak or pinakurat)

Instructions:

1. Arrange 1 cup sinangag, two piece of regular size of hotdog, and piece of fried egg in a

plate.

2. Serve with spiced vinegar and ketchup.

3. Share and enjoy!

Liemposilog

Ingredients:

Regular cut of fried liempo

1 cup sinangag (garlic fried rice)

1 piece fried egg (over easy)

Spiced vinegar (sinamak or pinakurat)

Instructions:

1. Arrange 1 cup sinangag, a regular cut of fried liempo, and piece of fried egg in a plate.

2. Serve with spiced vinegar and ketchup.

3. Share and enjoy!

43
Ingredients:

Regular cut of fried pork

1 cup sinangag (garlic fried rice)

1 piece fried egg (over easy)

Spiced vinegar (sinamak or pinakurat)

Instructions:

1. Arrange 1 cup sinangag, a regular cut of fried pork, and piece of fried egg in a plate.

2. Serve with spiced vinegar and ketchup.

3. Share and enjoy!

Longsilog

Ingredients:

2 piece of skinless longanisa

1 cup sinangag (garlic fried rice)

1 piece fried egg (over easy)

Spiced vinegar (sinamak or pinakurat)

Instructions:

4. Arrange 1 cup sinangag, two piece of skinless longanisa and piece of fried egg in a plate.

5. Serve with spiced vinegar and ketchup.

6. Share and enjoy!

44
Profile of Plant Location Figure 3.2

United Nations Avenue is a major thoroughfare in Manila, Philippines. A commercial,

residential and industrial artery, the avenue runs east-west through the near-center of the city

linking Ermita and Rizal Park with the eastern districts. It is home to the World Health

Organization Western Pacific headquarters.

U.N. Avenue begins at a fork in Quirino Avenue Extension and Paz Mendoza Guazon

Street, just west of Pandacan. It continues through the area of Tanque and Isla de Provisor in

northern Paco district passing several rows of warehouses and a few institutional buildings. West

of Taft Avenue lies busy Ermita district with a mix of hotels, offices and hospital

buildings. Roxas Boulevard lies at its western terminus.

45
This place has so many points of interest:

Araullo High School

Asilo de San Vicente de Paul

Bayview Hotel

Insurance Commission

Khalsa Diwan Sikh Temple

Manila Doctors Hospital

Manila Police District Headquarters

Medical Center Manila

National Bureau of Investigation

Philam Life Building and Theater

Philippine Bible Society

Philtrust Bank Building

Pope Pius XII Catholic Center

Times Plaza

Unilever Philippines

Waterfront Manila Pavilion Hotel and Casino

World Health Organization Western Pacific Regional Office

46
Plant Layout

The plant layout is tactically designed to support the smooth process of the proposed

business. The display area is a place where all finished products that are ready to sell are being

displayed. There would be a business office area which will cater to business related

transactions. The cafeteria will be the place for the customer to purchase the products of our

silogs.

Figure 3.3

Cafeteria/Store

This is a proposed perspective view of our cafeteria. This is where our products

will be displayed and with a relaxing design which promotes a green and healthy lifestyle

that our product endures to our customers.

47
Figure 3.4

Office

Figure 3.5

This is proposed perspective view

design of where the manager will

be in office.

48
Cooking Area

Figure 3.6

This is the proposed perspective view

design of where the products will be

produced and be done

Property Plant and Equipment

Chair. A seat, especially for one person, usually having four legs for support and a rest for the

back and often having rests for the arms.

Table. An article of furniture consisting of a flat, slab like top supported on one or more legs or

other supports

Spoon. A utensil for use in eating, stirring, measuring, ladling, etc., consisting of a small,

shallow bowl with a handle.

Fork. The flesh of hogs used as food.

49
Fire extinguisher. A portable device that discharges a jet of water, foam, gas, or other material to

extinguish a fire.

Trash can. A container for the disposal of dry waste matter.

Refrigerator. An appliance or compartment that is artificially kept cool and used to store food

and drink. Modern refrigerators generally make use of the cooling effect produced when a

volatile liquid is forced to evaporate in a sealed system in which it can be condensed back to

liquid outside the refrigerator.

Hand washing sink. A sink also sinker, washbowl, hand basin and wash basin) is a bowl-shaped

plumbing fixture used for washing hands, for dishwashing or other purposes. Sinks generally

have taps (faucets) that supply hot and cold water and may include a spray feature to be used for

faster rinsing.

Mixer. A machine or device for mixing things, especially an electrical appliance for mixing

foods.

Flat top grill. Is a cooking appliance that resembles a griddle but performs differently because the

heating element is circular rather than straight (side to side). This heating technology creates an

extremely hot and even cooking surface, as heat spreads in a radial fashion over the surface.

Microwave. An electromagnetic wave with a wavelength in the range 0.0010.3 m, shorter than

that of a normal radio wave but longer than those of infrared radiation. Microwaves are used in

radar, in communications, and for heating in microwave ovens and in various industrial

processes.

50
Trays. A flat, shallow container or receptacle made of wood, metal, etc., usually with slightly

raised edges, used for carrying, holding, or displaying articles of food, glass, china, etc.

Burner range. A kitchen stove, usually called a stove (especially but not only in US English),

range, cooker, or oven is a kitchen appliance designed for the purpose of cooking food. Kitchen

stoves rely on the application of direct heat for the cooking process and may also contain an

oven, used for baking.

Pots. a container, typically rounded or cylindrical and of ceramic ware or metal, used for storage

or cooking.

Pans. a broad, shallow container of metal, usually having sides flaring outward toward the top,

used in various forms for frying, baking, washing, etc.

Air conditioning. A system or process for controlling the temperature, humidity, and sometimes

the purity of the air in an interior, as of an office, theater, laboratory, or house, especially one

capable of cooling.

Cash register. A business machine that indicates to customers the amounts of individual sales,

has a money drawer from which to make change, records and totals receipts, and may

automatically calculate the change due.

Knife. An instrument for cutting, consisting essentially of a thin, sharp-edged, metal blade fitted

with a handle.

Placemats. A small mat beneath a place setting at a dining table.

Napkin. A square piece of cloth or paper used at a meal to wipe the fingers or lips and to protect

garments, or to serve food on.

51
Table vase. An open container, as of glass or porcelain, used for holding flowers or for

ornamentation.

First aid kit. A first aid kit is a collection of supplies and equipment for use in giving first aid,

and can be put together for the purpose by an individual or organization or purchased complete.

Floor buffer. A floor buffer or rotary floor machine is an electrical floor scrubber that is used to

clean and maintain non-carpeted floors, such as hardwood, marble, tile or linoleum. It is also

known as a floor polisher or burnisher if it is a high speed floor buffer with a pad that rotates at

over 1000 RPM.

Brooms. A long-handled brush of bristles or twigs used for sweeping.

Wet floor signs. Is used to warn people about wet floors and so prevent them from slipping and

falling. Businesses often place such warnings to avoid negligence charges brought by people on

their property.

Floor mats. Is a generic term for a piece of fabric or flat material, generally placed on a floor or

other flat surface, which serves a range of purposes including: providing a regular or flat surface,

such as a mousepad.

52
Property plant and Equipment

Chair Table

Fork Spoon

53
Microwave Trashcan

Refrigerator Mixer

Fire Extinguisher Sink

54
Pots Pans

Flower Vase Knives

Air Conditioner Trays

Placemat Floor mat

55
Floor Buffer Wet Floor Sign

Flat Top Grill Cash Register

56
Napkin Broom

Internal Control

Our cafeteria ensures you that you can get the good quality of products that you avail. We

give a 100% effort in our every customer. Our products also give you the taste that you want,

especially our main dish which is the tapsilog. This cafeteria is established not because we need

income, but also to make new set of friends. We set the layout of our store as a simple yet has a

neatness that will make you feel comfortable. Entering our store will turn your bad mood to be

blissful one because of the clean and green ambiance.

Our employees were surely an educated people who come with a degree of cooking or

serving. We hired people who has a dignity in their own selves and has a pleasing personality

that will attract the customer to eat in our cafeteria. Our HR hires only those who had at least 6

months experience in this field. We are so strict in the qualification so that we can give the

service that any customer expects. The pleasure of our customers is our main concern.

57
Quality Control

Quality control areas. In a cafeteria, there are many areas in which quality is involved.

There is the quality of purchased products, materials, and ingredients. These include all kinds of

food products everything from raw fruits, vegetables and meats to products of a bakery such as

pies, rolls, bread, and cakes. There are also cleaning and maintenance supplies. There is the

problem of damage caused to products during shipment, unloading, and unpacking. These are

returned for credit. Quality of employee performance also has top priority. Without high quality

products meat, vegetables, fruits, bakery goods, canned goods, etc. not even the best person

can produce high quality food. Quality performance applies to everyone: chefs, cooks, assistants,

dish-washers, janitors, handymen, waiters, waitresses, servers, hostesses, counterpersons,

cashiers, bartenders, busboys, busgirls, and anyone else who works anywhere in the cafeteria.

The goal of quality performance is to give the customer good quality food at an

affordable or reasonable price. To reach this goal means:

1. Giving the customer what he or she wants.

2. Serving the customer with a minimum amount of delay: waiting to be seated, waiting to

have order taken, waiting to receive food, waiting for a bill.

3. Serving the customer with good quality food and beverage.

4. Serving the customer with the consideration and courtesy

5. Listening politely to any customer complaint and resolving it immediately.

6. Listening to customers questions carefully and answering courteously

58
CHAPTER IV

ORGANIZATION AND MANAGEMENT ASPECT

This chapter describes the form of business organization that is best suited for the proposed

subject, the organizational structure, the number of personnel needed, their qualifications, their

compensation, and the proposed time table before the project is implemented.

Type of Organization

A partnership is an arrangement where parties, known as partners, agree to cooperate to

advance their mutual interests. The partners in a partnership may be

individuals, businesses, interest-based organizations, schools, governments or combinations

thereof.

Partnerships exist within, and across, sectors. Non-profit, religious, and political

organizations may partner together to increase the likelihood of each achieving their mission and

to amplify their reach. In what is usually called an alliance, governments may partner to achieve

their national interests, sometimes against allied governments holding contrary interests, as

occurred during World War II and the Cold War. In education, accrediting agencies increasingly

evaluate schools by the level and quality of their partnerships with other schools and a variety of

other entities across societal sectors. Some partnerships occur at personal levels, such as when

59
two or more individuals agree to domicile together, while other partnerships are not only

personal, but private, known only to the involved parties.

Organization Structure

Organization Structure determines how the roles, power and responsibilities are assigned,

controlled, and coordinated, and how information flows between the different levels of

management or it also allows the expressed allocation of responsibilities for different functions

and processes to different entities such as the branch, department, workgroup and individual.

President

VP Marketing VP Finance

Position Staffs Position Staffs


Servers Dishwashers
Line Cooks Prep

60
Personnel and Laborer Components

Job Analysis

Job analysis is a process to identify and determine in detail the particular job duties and

requirements and the relative importance of these duties for a given job.

Any business cannot totally operate and attain stability without personnel and laborers

involve. Their performance and attitude is of great importance in the operation of the business.

This part of management aspect will discuss the organizations personnel and employees within

their corresponding qualifications.

Table 4.1

Position No. of personnel

Owner One(1)

Bookkeeper One(1)

General Manager One(1)

Servers Two(2)

Line Cooks Two(2)

Dish Washers Two(2)

Duties and Responsibilities

President (Owner)

Facilitate accomplishments of the associations strategic goals and objectives

Serve as the principal contact with the vice president and staff

61
Acquire sufficient resources for the organizations operations and to finance the product
and services

Determine the organizations mission and purpose

Bookkeeper

Monitor and analyze monthly operating results against budget

Recruit, train, supervise, and evaluate department staff

Manage the preparation of all financial reports

Design, establish, and maintain an organizational structure to effectively accomplish the


departments goals and objectives

General Manager

Organizational design, recruitment and staffing, compensation, training and development,


performance management. Employee relations and communications.

Assist management in organizational design and staffing structures, source and recruit
quality candidates. Establish processes and tools to improve the recruitment processes as
wel as train others

Communicate with customers any special needs

Schedule weekly line up meetings with the drivers team

Handle any driver needs and issues, communicating back any issues with the manager

Servers

Ability to work under pressure

Ability to serve customers on time

Ability to work with a pleasing personality

Line Cooks

Ability to cook food in order to achieve the satisfaction of the customers.

62
Cook food based on the customers taste and preferences.

Dishwashers

Wash dishes immediately

Compensation Scheme/Salary/Wages

Wage is associated with employees compensation based on the number of hours worked

multiplied an hourly rate of pay. On the other hand, salary is best associated with employee

compensation quoted on an annual basis. Compensation is what you pay someone to entice them

to continue to do work for the company. It includes benefits, perks, allowances, etc. you have to

balance with these cost against what your employee perceives as their value, and that varies by

employee. You have to measure compensation levels against other employees in the company.

The compensation to be adopted will include the basic salary, transportation allowance less

Pag-Ibig Premium, PhilHealth Premium, SSS Premium and add the 13th month pay to be given

before December 24 every year for each employee.

SSS Contribution

Republic Act No.8282, otherwise known as Social security act of 1997, refers to the social

security system in the Philippines that is initiated, developed and promoted by its government. The

social security system is aimed at providing protection for the SSS member against socially

recognized hazard conditions, such as sickness disability, maternity, old age and death, or other

such contingencies not stated but resulted in loss of income or result to a financial burden.

63
The employee and his/her employer(s) are to contribute for the social security benefits of

the said employee in accordance to the given schedule by the Philippine Social Security System.

Monthly employee contribution depends on the employees actual monthly salary.

Pag-Ibig /HDMF Contribution

The Home Development Mutual Fund (HDMF), popularly known as Pag-IBIG

Fund (Pagtutulungan sa Kinabukasan: Ikaw, Bangko, Industriya at Gobyerno), was created by

virtue of Presidential Decree No. 1530 on June 11, 1978. To provide its members with adequate

housing through an effective savings scheme, Pag-IBIG Fund harnesses these four sectors of

Philippine society: financial institutions, the industrial sector, the government, and the Filipino

people. The Fund was created to address two of the nation's basic concerns: (a) the generation of

savings and (b) providing shelter for Filipino workers.

The employees contribution is 2% of his/her salary if the salary is P1,500 above while 1%

if below P1,500.

PhilHealth Contribution

PhilHealth or the Philippine Health Insurance Corporation is a tax-exempt, government

owned and controlled corporation (GOCC) tasked to provide universal health coverage to its

members.

PhilHealth was a creation of the National Health Insurance Act of 1995 or Republic Act

7875, a law signed by President Fidel V. Ramos on February 14, 1995 which

64
mandates a sustainable national health insurance program in the Philippines. PhilHealth was then

instituted as an attached unit to the Department of Health (DOH). Prior to the creation of

PhilHealth, a comprehensive nationwide medical care program was administered by the Philippine

Medical Care Commission (PMCC) or Medicare. Upon the signing of RA 7875 into law,

PhilHealth replaced Medicare and took over the administration of the social health insurance in

the Philippines starting in 1997. In 2013, PhilHealth claims that it has achieved near-universal

coverage with 81% or 81 million Filipinos registered as a PhilHealth member.

All Filipinos, regardless if residing in the Philippines or in other countries working as

Overseas Filipinos, are eligible to become a PhilHealth member. Actually, even foreign nationals

who are staying in the Philippines are qualified to enroll in PhilHealth. PhilHealth members who

are employed in the government or private sectors pay a premium based on their monthly

salary. The contribution is around 2.5% of the salary base. The total amount is shared equally by

both the employer and the employee. The total monthly premium, depending on the employees

monthly salary, is shown below.

13th Month Pay

The 13th month pay is a form of monetary benefit equivalent to the monthly basic

compensation received by an employee, computed pro-rata according to the number of months

within a year that the employee has rendered service to the employer. All establishments regardless

of the number of employees are required to pay their rank-and-file employees the 13th month pay.

All rank-and-file employees regardless of the nature of their employment, and irrespective of the

65
methods by which they are paid, provided they worked for at least one month during the calendar

year.

The 13th month pay is computed based on 1/12 of the total basic salary of an employee

within a calendar year, or basic monthly salary for the whole year divided by 12 months. The 13th

month pay should be paid not later than December 24 of each year.

Partnership Officer Profile Qualification

Professional Skills and Resume

General Partners

An arrangement by which partners conducting a business jointly have unlimited liability, which

means their personal assets are liable to the partnership's obligations. Since all partners have

unlimited liability, even innocent partners can be held responsible when another partner commits

inappropriate or illegal actions.

Responsibilities of General Partners.

- As a general partner, you are entitled to an equal share of the partnership's profits, unless

otherwise specified by your partnership agreement. You are also entitled to full disclosure by

your partners of anything they do on behalf of the partnership and you have the right to withhold

your consent to any such dealings.

- All partners have equal legal liability.

- Further many states hold the partners in a general partnership jointly and severally liable. This

means that each partner is liable not only for their own actions, but the actions of the other

66
partners.

- Can legally bind the business

Since our business is newly open we are appointed employees for a certain position such as the

President, Vice President for Finance, Vice President for Marketing, Humane Resources and

Operations, Automotive Maintenance, Dispatch Manager up to Drivers has their job

specification and they will have an orientation about their work.

Job Title: President (Owner)

Qualifications:

- Masters & Doctorate degree.

- 10-15 years of related industry experience.

- Able to cope in any changes & pressure.

- At least 30 years old

Job Title: Bookkeeper

Qualifications:

- 10 years of progressive experience.

- Relevant industry experience desirable.

- Bachelor's degree, MBA desirable (with solid academic standing).

67
- Proven track record in the management of company operations, finance, and quality

assurance.

Job Title: General Manager

Qualifications:

- 10 to 15 years of progressive operational and managerial experience.

- Relevant industry experience desirable.

- Bachelor's degree, graduate in a management course.

- Proven track record in the management.

Job Title: Server

Qualifications:

- Bachelors Degree

- At least has 2 years of experience in Food and Beverage industry.

- Proven track record in the serving foods.

Job Title: Line Cook

Qualifications:

68
- Bachelors Degree

- At least has 2 years of experience in Food and Beverage industry.

- Proven track record in the serving foods.

Job Title: Dish Washers

Qualifications:

- 18-25 years old.

- At least a high school graduate

Projected Timetable

Table 4.2

Proposed Activities Duration / Months

Preparation of the Feasibility Study 3 months

Fund Acquisition 2 months

Registration and Securing of License and 2 months


Permit

Purchase of units and equipment for the 2 months


proposed business

Advertisement and Promotion 2 months

Hiring and training of personnel 2 months

Start of Business Operation

69
Table 4.3

GANTT chart

Months

Proposed 1 2 3 4 5 6 7 8 9 10 11

Activities

Preparation of
the Feasibility
study

Fund Acquisition

Registration and
Securing of
License and
Permit

Advertisement
and Promotion

Purchase of units
and equipment
for the proposed
business

Hiring Of

Personnel

70
CHAPTER V

FINANCIAL ASPECT

This chapter discusses the financial aspects of the study, in order for a business plan to

understand it needs money to start. To determine whether the future industry will remain profitable

through the existence of competitors and unfavorable economic condition, the researchers have to

project a five year financial statement.

This chapter includes the source of funds, balance sheet, income statement, cost of goods

sold and cost of sales.

Capital Requirements

These are the amount of money required in order to start and operate a medium- sized taxi

industry.

Raw Materials Table 5.1

Price # of unit

Rice 1, 600 per sack 40 sacks 64,000.00

Egg 60 per dozen 30 dozens 1,800.00

Hotdog 182 per kilo 30 kilos 5,460.00

Tapa 235 per kilo 50 kilos 11,750.00

71
Porkchop 182 per kilo 50 kilos 9,100.00

Tocino 165 per kilo 30 kilos 4,950.00

Longganisa 140 per kilo 30 kilos 4,200.00

Chicken 160 per kilo 50 kilos 8,000.00

Liempo 180 per kilo 20 kilos 3,600.00

Total 112,860.00

Furniture & Fixtures Table 5.2

Price # of unit Total

Table 2,199 8 17,592

Chair 100 32 3,200

Cash Register 1500 1 1,500

Refrigerator 7,200 1 7,200

Freezer 12,899 1 12,899

Air Conditioners 6,999 2 6,999

Electric fan 1,483 4 1,483

Managers Chair 1,800 1 1,800

TOTAL: 50 52,673

72
Equipments Table 5.3

Price # of unit Total

Computer 13,700 1 13,700

Trays 250 6 1,500

Forks 40 36 1,440

Spoons 40 36 1,440

Knives 4,500 1 4,500

Tumblers 60 12 720

Table Napkins 400 4 1,600

Straws 50 1 50

Hairnet 190 4 760

Aprons 50 4 200

Rice Cooker 1,300 1 1,300

Fire Extinguisher 1,500 2 3,000

Trash Can 2,750 1 2,750

Mixer 3,490 1 3,490

Microwave 2,900 1 2,900

Sink 2,000 2 4,000

Pans 1,200 4 4,800

Flower Vase 180 1 180

Pots 1,200 4 2,400

First Aid Kit 1,500 1 1,500

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Wet Floor Sign 650 2 1,300

TOTAL: 125 53,530

Sources of Financing

Financing is needed to start a business and ramp it up to profitability. There are several sources

to consider when looking for start-up financing but first you need to consider how much money

you need and when you will need it. The financial needs of a business will vary according to the

type and size of the business. In our case, the sources of our financing come from the partners of

the business and from the loan payable from the bank

Sources of financing Amount

Equity 100,000

Bank Loan 400,000

Capital Contribution of partners

Partners contribution

Gautane, Gil Igan 100,000

Laurca, Christine Joy 100,000

74
Lacsina, Marco Angelo 100,000

Gonio, Robert Miko 100,000

Total 400,000

Basic Assumption

1. Selling Price of UN Cafeteria Express

Table 5.5

Silogs:

UN Cafeteria Express Price List

Tapsilog 50.00

Bangsilog 50.00

Chicksilog 55.00

Hotsilog 35.00

Liemposilog 60.00

Porksilog 50.00

Longsilog 40.00

75
Lugaws:

UN Cafeteria Express Price List

Lugaw Plain 10.00

Lugaw with Egg 16.00

Goto 20.00

Goto with Egg 26.00

Beverages:

UN Cafeteria Express Price List

Coke Sakto 8.00

Coke Litro 21.00

Pepsi 8 oz 8.00

76
Pepsi Blue 8.00

2. Sales demand increases 6.8% annually.

3. Raw materials increase 5% annually.

4. Depreciation expense is computed in a straight line basis with an estimated useful life of

5 years.

5. 50% of net income will be distributed after 5 years.

Operating Expenses

An operating expense is an on-going cost for running a product, business or system. It is a

day to day expense such as sales and administration, or research and development. In short this is

the money the business spend in order to turn inventory into throughput.

Operating Expense for a month

License and Permit Expense P2,500


Utilities Expense
Water P2,000
Electricity P5,833
Salaries and Wages Expense
President P20,000
VP Finance P16,000
VP Marketing P16,000
Servers P14,000

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Cooks P14,000
Dishwashers P14,000
Depreciation Expense P4,389
Raw Materials P9,405
Taxes P5,000
Total Operating Expense for a month P123,127

Operating Expense for a year

License and Permit Expense P30,000


Utilities Expense
Water P24,000
Electricity P70,000
Salaries and Wages Expense
President P240,000
VP Finance P192,000
VP Marketing P192,000
Servers P168,000
Cooks P168,000
Dishwashers P168,000
Depreciation Expense P52,673
Raw Materials P112,860
Taxes P60,000
Total Operating Expense for a year P1,477,533

Operating Expense for 5 years

License and Permit Expense P150,000


Utilities Expense
Water P120,000

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Electricity P350,000
Salaries and Wages Expense
President P1,200,000
VP Finance P960,000
VP Marketing P960,000
Servers P840,000
Cooks P840,000
Dishwashers P840,000
Depreciation Expense P263,365
Raw Materials P564,300
Taxes P300,000
Total Operating Expense for 5 years P7,387,665

Schedule of Salaries

2015 2016 2017 2018 2019

15th 30th 15th 30th 15th 30th 15th 30th 15th 30th
days days days days days days days days days days

President 10,000 10,000 10,000 10,000 10,000 10,000 11,000 11,000 11,000 11,000

VP 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000
Finance

VP 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000
Marketing

Servers 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000

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Cooks 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000

Dish 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000

washers

The schedule of salary will be on the 15th days of the month and every 30th days of the

month. The employees are allowed to get their salary in advance if need arise but at the time of

giving their salary, their respected value will be deducted and also the compensation scheme.

Table 5.6

Schedule of Fringe Benefits

The following benefits given are the mandatory or compulsory benefits that must be given

to employees who are covered by the Labor Code of the Philippines

Table 5.7

Fringe Benefits For Managerial For Employees

1. Christmas Bonus

2. Health Benefits

3. Social Security Benefits

4. Sick Leave

5. Holiday Pay

6. Overtime Pay

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7. 13th Month Pay

Financial Statements

A financial statement (or financial report) is a formal record of the financial activities of a

business, person, or other entity.

Relevant financial information is presented in a structured manner and in a form easy to

understand. They typically include basic financial statements, accompanied by a management

discussion and analysis.

Income Statement

U.N CAFETERIA EXPRESS


Projected Income Statement
For the year ended December 31, 2015

Sales 1,704,630
Less: Cost of Goods Sold (112,860)
Gross Income: 1,591,770

Less: Operating Expense


License and Permit Expense 30,000
Utilities Expense 94,000
Water 24,000
Electricity 70,000

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Salaries and Wages Expense 1,128,000
Depreciation Expense 52,673
Total Operational Expense (1,477,533)
Taxable Income 114,237
Less: Income Tax 22,847
Net Income 91,390

Balance Sheet

U.N CAFETERIA EXPRESS


Projected Balance Sheet
For the year ended December 31, 2015

Asset:
Current Assets
Cash 182,327
Total Current Assets 182,327

Non-Current Assets
Land 240,000
Furniture & Fixtures 52,673
Equipment 116,390

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Total Non- Current Assets 409,063
Total Assets 591,390

Liabilities:
Accounts Payable 100,000

Equity:
Partners Capital 400,000
Net Income 91,390
Total: 591,390

Cash flow

U.N CAFETERIA EXPRESS


Projected Cash flow
For the year ended December 31, 2015

Cash Inflow
Cash, Beg
Sales 1,704,630
Partners Contribution 400,000
Total Cash Inflows 2,104,630
Less: Cash Outflow

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Furnitures & Fixtures 52,673
Raw Materials 112,860
Equipment 53,530
Salary and Wages 1,128,000
Utilities 94,000
License and Permit 30,000
Income Tax 22,847
Total Operating Expenses (1,493,910)
Cash Balance, End 610,720

Financial Ratio

Profit Margin 91,390


1,704,630
= 5%

Return on Investment 91,390


400,000
= 0.23

Return on Total Asset 1,704,630


591,390
= 2.88

Return on Equity 1,704,630

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591,390
= 2.88

Fixed Asset Turnover 1,591,770


52,673
= 30.22

Total Asset Turnover 1,591,770


591,390
= 2.69

Solvency

Debt Ratio 100,000


591,390
= 16%

Equity Ratio 491,390


591,390
= 83%
CHAPTER VI

POTENTIAL PROBLEMS

Cafeteria business is a good venture to make a living, however one is required to invest

effort and determination because this business is prone to risk and accident. Also, you require

driving skills and proper knowledge on the road. Before you achieve success status in taxicab

business, you may possibly encounter various potential problems during your road to success.

Here is some list of problems that you may encounter:

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1. Regulation and control system the slow pace at which regulatory system is being

implemented could be a problem in cafeteria business. Moreover, corruption in the

issuing of permits to operate is another hindrance you may face.

2. Food price the high or fluctuating price of veggies and meat in the Philippines are now

the major deterrents to this business because it may affect the income of the workers.

3. Service service is the ability to get a order efficiently. The lack of stands in areas metro

Manila or during peak times is a constant problem.

4. Employee professionalism the quality of employees is frequently noted as uneven, at

best. There will always be employees of varied skills levels. Impolite workers are another

consideration in the business because customers with undesirable experience will

remember the name of the cafeteria, not the employee.

5. Cafeteria appearance (inside and out) the importance of this is to provide convenience

to customers. You need to maintain the appearance of your place and it requires funding

too.

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CHAPTER VII

SOCIAL DESIRABILITY

UN Cafeteria Express is a great place to eat, combining an intriguing atmosphere with

excellent, interesting food. The mission is not only to have great tasting food, but have efficient

and friendly service because customer satisfaction is a must. We want to be the cafeteria choice

for all families and singles, young and old, male or female. Employee welfare will be equally

important to our success. Everyone will be treated fairly and with the utmost respect. We want

our employees to feel a part of the success of UN Cafeteria Express. Happy employees make

happy guests.

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We will combine menu variety, atmosphere, ambiance, and a friendly staff to create a

sense of 'place' in order to reach our goal of over all value in the dining experience. We want fair

profits for the owners, and a rewarding place to work for the employees.

CHAPTER VIII

FINDINGS AND RECOMMENDATION

The Findings and Recommendations of the study is categorized according to the four

function of management as follows:

Findings and Recommendation

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Marketing Aspect

The targets market both primarily and secondary will surely avail our services since our location

is very accessible and we offer high quality to customers. In the first year of operation, we served

the target market almost 1% of the total industry. Despite of the keen competition in the market

of the restaurant industry our business still gains the revenue capable of financing the operation

for the next succeeding year.

Organization and Management Aspect

The project study of restaurant industry will be organized as partnership. The duties and

responsibilities of the personnel have been properly defined in the organizational set-up of the

proposed project, which will be relayed to all concerned.

Product and Technical Aspect

U.N. Cafeteria Express 250 square meters located at YIC building, United Nations Avenue,

Manila. Its location is very much conductive to encourage customers to enter the shop.

Financial Aspect

The financial analysis shows positive ratios project valuation and favorable cost volume profit

analysis. Profitability, Solvency, and Operational Efficiency shows positive output.

Recommendation

Acquire additional branches in the coming years in order to increase the level of service that can
89
be offer to the market, and to increase the market share. For that reason it is also recommended

to expand the garage area to accommodate the additional units.

CHAPTER IX

SUMMARY

UN Cafeteria Express is our projected business which intends to serve, assure and attain

high satisfaction from our target customers whom are business man, employees and middle ages.

The said business will be located at United Nations Avenue, Manila. This place is selected for to

the reason that United Nations Avenue is a busy place. Convenience and accessibility is also a

factor that is included to the decision of the selected place

In terms of form organization, the researchers prefer partnership. This will be composed

of 4 partners who turn out to be researchers also. They agree to bind themselves to contribute

money, property as well as industry with the common intention of dividing the profit among
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themselves. In terms of contribution, each partner will contribute P100,000 in order to serve as

one foundation financing in operating the business actions. On other hand, in case of profit

sharing, every one of them agrees to divide the profit equally.

Product to be offered will be the silogs menu, different varieties of lugaws and beverages.

To be able to attract possible consumer, creating this offered will be considered as one of

marketing strategy which particularly includes quality, customer service and any succeeding

after-sales service. In order to cover the overall cost in the production, penetration pricing will be

used as our pricing strategy the idea is that the business will be able to raise awareness.

Organizational structure will include President, VP Finance, VP Marketing, Servers,

Cooks and Dishwashers. This has been made simply in order to effectively communicate from

top personnel up to bottom.

The researchers therefore conclude that through our competitive marketing, promotional

and pricing strategies, this study will come out to be competently and successfully operational

and result that this study is feasible.

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BIBLIOGRAPHY

Online References:

www.wikipedia.org

www.bplans.com

www.slideshare.net

www.brighthubpm.com

www.projectmanagementdocs.com

www.smallbusiness.chron.com

www.scribd.com

www.surveygizmo.com

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www.philgovinfo.com.ph

www.businessplans.org

www.yellow-pages.com.ph

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