Entrep Final 1 5..

PIZZA DOUGHNUT
A Business Plan presented to the
COLLEGE OF BUSINESS AND ACCOUNTANCY
In Partial Fulfillment of the Requirements in
ENTREPRENEURIAL MANAGEMENT (BM111)
ALEA, RON CHRISTELO A.
ALMAREZ, RIA MARI CEDEZ B.
COLIYAT, ANALYN S.
COMIA, ELVIN JOSEPH M.
HERNANDEZ, MARY JOY R.
MAY 2018
ACKNOWLEDGMENT
The researchers would like to extend their deepest and sincerest gratitude to all
the persons who made significant contributions to the completion of this business plan.
To the professor, Mrs. Lileth Gonzales, for sharing her knowledge and guidance
for the completion of the business plan.
To the participants, for their unselfish participation and cooperation in answering
the questionnaires and for the providing the needed information in this business plan;
Above all, to Almighty God, for his immeasurable love and guidance He has
provided to the researchers to make this study possible.

EXECUTIVE SUMMARY
Pizza Doughnut is a company that is created to satisfy their customers that are
searching for something new in the market with different pizza toppings flavoured
doughnuts. The company is limited partnerships wherein the limited partners are only
limited to their respective contributed capital while the general partners, who are the
founders of the company, has overall control over the company. In order for the
company to be successful the company envisions itself to be the number one
recognized brand in the industry to serve the most delicious and unique pizza
doughnuts which will be accomplished by accommodating each customer in a special
way through high quality pizza doughnuts, service excellence and friendly atmosphere.
Pizza Doughnuts is proud to deliver its customers with a glimpse of the unique
taste of donuts covered with pizza toppings. The target markets of the company are
students, teenagers and adults, no age limit and mostly residing in Batangas City. For
the convenience of its customers the product will be sold inside malls where majority of
the customers go to. The company will abide with the different government approval
requirements and will assess the different costs that it will incur in the production of its
product. The profitability of the business will improve by enhancing its marketing
strategies that will satisfy its customers.
Costs of implementing the business will amount to Php1, 112, 360.00 which will
be composed of the expenses that will be used for the property, plant and equipment
and the production costs and period costs. This includes the direct materials consisting
of the ingredients that will be used for the finished product, direct labor which comprises
the salary of the employees, and manufacturing overhead which includes the
depreciation of the building, salary of supervisors and utilities expenses. In order to start
the business, the general partners will contribute Php146, 500.00 each to accommodate
the different expenses.
The company is aware that problems will be encountered in the operation of the
business and in order to avoid future problems the partners assessed the different
problems that they are most likely to encounter and the partners developed a plan in
order to solve the different problems that are assumed to happen. The partners made a
projection of its financial statements for the first 5 years of its operation so that they will
be able to see on what their possible financial statements will be. Pizza Doughnut has
expected a continuous growth and development and still intensifying to escalate to the
world of food and beverage industry. Hence, pd will work hard in the future to come up
with different strategies in order to serve customers thru a high quality of pizza
doughnuts.
CHAPTER 1
MANAGEMENT AND ORGANIZATION
1.1. Name, Address and Logo of the Business
1.1.1. Company Name: PIZZA DOUGHNUT
1.1.2. Company Address: 51 Onyx Road Mount View Park Subdivision,

Batangas
The partners have agreed that the company address is the home of the
partners, Ron Christelo A. Alea. The accessibility in Batangas is beneficial for the
distribution since the actual production is in Batangas City. The store is large to
provide adequate space for kitchen, display counters, customer seating, lavatory,
staff quarter, managers office, comfort room and stock room.
1.1.3. Company Logo
Figure 1.1 Company Logo

The brand name Pizza Doughnut was inspired by the pizza and doughnut where
the dough in the typical doughnut will be use and the toppings will be the different
flavors of pizza depending in the preference of the customer. There will be different
flavors of pizza doughnut such as ham and cheese, hawaiian, cheesy bacon, pepperoni
and meaty cheese.
1.2. Vision, Mission and Corporate Objectives

1.2.1. Vision
To be the number one recognized brand in the industry to serve the most delicious and
unique pizza doughnuts to our growing numbers of pizza doughnuts lovers in Batangas.
1.2.2. Mission
To accommodate each customer in a special way through high quality pizza doughnuts,
service excellence and friendly atmosphere.
1.2.3. Corporate Objectives
1.2.3.1. General Objective
 To increase market share in the food industry, increase its capital and interested
shareholders until it is registered as a public corporation.
1.2.3.2. Specific Objective
 Provide the City of Batangas an indulgence in a total quality experience.

 Delivery a unique, fresh and delicious pizza doughnut that will satisfy your
cravings.
 Stay committed to the community and the environment by using recycled
packaging and donating what we don’t sell
 Be the market leader in gourmet pizza doughnut and dessert hot spots in
Batangas City
1.3. General Partners
The general partners are:

PHONE
NAMES TITLE ADDRESSES NUMBERS
Ron Christelo A. Alea General 51 Onyx Road Mount 09561827906
Manager ViewPark Subdivision,
Batangas City
Ria Mari Cedez B. Sales #47 P. Zamora Street, 09652563054
Almarez Manager BatangasCity
Analyn S. Coliyat Production Purok 5#310Brgy. 09353714153
Manager SorosoroIbabaBatangas
City
Elvin Joseph M. Comia Regional 2235 Lead Street, 09566632824
Manager TwinvillaSubdivision,
KumintangIlayaBatangas
City
Mary Joy R. Hernandez Quality 051A-Right Manghinao 1 09154907352
Manager Bauan, Batangas
Table 1.1 List of General Partners
1.4. Management Team
Job Description
General Manager- shall be responsible for controlling, administering business

activities and operations.
Sales Manager- shall be responsible for selling products or services.

Quality manager- shall be responsible for all activities and tasks needed to maintain
a desired level of excellence.
Regional Manager- shall be responsible for operational practices of the store in the
area, making sure it runs smoothly.
Purchasing Manager- shall be responsible for buying gods or products as required of

the company.
Production Manager- shall be responsible for manufacturing products or services
Store Manager- shall be responsible for the day-to-day operations in the entire store
and the employees work within. Shall report to the Regional Department.
Staff – shall be responsible for serving customers in a store. Shall report to the Store
Manager.
Chef - shall be responsible for setting up the kitchen with cooking utensils and
equipment in baking pizza doughnuts in a store.
Job Specification
General Manager
 Graduate of any management course
 Excellent Oral and written communication skills
Sales Manager
 College graduate at least a Bachelor’s Degree in business, management or
related field
 Significant experience in the sales field
Quality manager
 College graduate of business management or similar fields.
 Has good social skills
Regional Manager
 College graduate of business management, restaurant and hospitality
management or similar fields
 On-the-job experience in the line of work is a must
Purchasing Manager
 Graduate of any four year degree course
 Has good social skills, and meticulous with product quality
Production Manager
 Good oral communication skills
Store Manager
 Good oral communication skils
Staff
 At least high school graduate
 With pleasing personality
 Good oral communication skills
Chef
 Graduate of Culinary course
 Advanced knowledge of culinary baking and pastry techniques
 Familiar with sanitation regulation
1.5. Organization Charts
General manager
Sales Manager Quality Manager Regional Manager Purchasing Manager Production Manager
Store Manager
Staff
Chef
Figure 1.2 Organizational Chart
1.6. Ownership, Capitalization and Compensation
1.6.1. Ownership
The business shall be owned by the general partners comprising it. The
limited partners shall only be limited to ownership of their respective contributed
capital.
Limited Partnership
A limited partnership structure is deal for the business. An initial pool of

resources money, equipment and labor shall be contributed by the founders of the
business who shall be the general partners. The general partners well elect among
them a manager that would supervise the overall operations and management of the
business. The business would open its doors to interested investors and capitalists,
which shall be treated as limited partners. If the company would become successful
and acquire a number of investors and of to expand, the business can shift from a
limited partnership to a registered public corporation in order to attract more
shareholders.
The limited partners are restricted only to the contribution of capital and checking
of the books and accounts. They cannot interfere with the direct management of the
business unless they become general partners, as provider under Philippine laws.
1.6.2. Partnership Agreement

The partnership of agreement made on July 2017 was between Ria Mari B.
Cedez B. Almarez, Ron Christelo A. Alea, Analyn S. Coliyat, Elvin Joseph M. Comia,
and Mary Joy R. Hernandez. The partnership agreement also include information about
the business itself such as name and business, terms, capital, profit and loss
distribution of partner, the partners’ responsibility and as well as other rules about the
limited partnership.
The complete copy of partnership agreement is attached in Appendix 1.
1.6.3. Code of Conduct

The Pizza Doughnut business prescribes its certain responsibilities which Pizza
Doughnut has committed in Batangas. This code of business conduct specifies and
helps the implementation of the business by establishing certain non- negotiable
minimum standards of behavior in key areas.
The complete copy of Code of Conduct is attached in Appendix 2.
1.6.4. Capitalization
The initial capital of the business shall be Php732, 500.00 taken from Php146,
500.00 contributions from each of the five general partners.
1.6.5. Compensation
The following employees shall have their respective compensation:
General Manager- Php25, 000/month
Sales Manager- Php20, 000/month
Quality manager- Php20, 000/month
Regional Manager Php20, 000/month
Purchasing Manager Php20, 000/month
Production Manager Php20, 000/month
Store Manager- Php20, 000/month

CHAPTER 2
PRODUCT / SERVICE
2.1 Purpose of the Product

The primary purpose of the product is of course to satisfy the appetite of the
customers. To let people know that it is possible to combine foods into another product,
also to let them see the uniqueness when it comes to the product’s appearance and
taste. People nowadays were used in eating a normal bread, pizza or doughnut but as
they discover a pizza and doughnut combined as one, they will be curious because
combining two delicious foods would be so interesting.
2.2 Product Features
2.2.1 Product
Made out of flour, eggs, butter, vanilla extract, yeast, evaporated milk, sugar,
salt, pepper, garlic powder, all purpose cream, spaghetti sauce, tomato sauce, cheese
and its designated flavor.
Figure 2.1 Pizza doughnuts in Different variety of flavors

2.2.2 Packaging
It will be put inside a recycled colored cardboard that will be shaped as a square
container to make it attractive and appealing to the customers. Square shaped
container will be for solo orders and the rectangle shaped container will be for orders as
many as six. To make the container more attractive, we will put quotes on it that has the
rhymes of the word donut that will seek the attention of the customers and for it to look
pleasant.
Figure 2.2 Square cardboard packaging
Figure 2.3 Rectangle larger cardboard Packaging good for 6 pcs

2.3 Stage of Development
Pizza doughnut is currently in the Start-Up Stage of development. The company
is currently getting knowledge on the different things that will be needed to start up a
business. The company is already knowing the different permits that will be needed for
the business and also computing for the different expenses they will incur in terms of
materials such as the ingredients that will be used in making the finished product, direct
labor such as the salary of its employee, and manufacturing overhead such as the
expense in utilities. The company have already made their prototype for the business
and conducted their focus group discussion for their further plans for the development of
the company.
2.4 Future Research and Development

The company will expand their business by issuing value meals like a pizza
doughnut together with fries, carbonara, chicken, lasagna, nachos, spaghetti and
chicken fillet. They will also issue other drinks rather than soft drinks to combine with the
meal like milk shakes, juices, iced tea, green tea and frappe to let the customers choose
the best drink that will fit their meal. The company will also be coming up with an idea of
setting up tents or booths in institutions or universities and at selected spots in
downtown offering free doughnut samples in a variety of flavors. The company will also
give notice to its advertisements in social medias so that many customers can discover
them like facebook, twitter, instagram, etc. They will take note of their advertisements
and they will make sure that they can update it every time. In the future, the company
thinks that being unique with their product will be a big hit for their company. As of it
they will be coming up with an idea of interchanging or adding a prototype in their
company, but this time it will be interchanged. It will be a pizza like crust with the flavor
of the usual doughnuts like chocolates, mocha, strawberry, etc.
2.5 Product Limitations
Kids
 Maximum lifespan is 2 days.

 Costs are high because nowadays the expenses starts becoming higher and
higher.
 Distribution channels are limited
 Product supplies are subject to the availability of the ingredients.
Teenagers
higher.
Adults
higher.

2.6 Production
The company will outsource all of the major productions of its products. It has a
suppliers of dough that will provide the base of the – purchasing the other ingredients in
Batangas City, Batangas and Bauan, Batangas. The company will outsource most of its
materials in the following locations:
Cooking Oil ( per 1/10 gallon) Batangas City, Batangas
Flour (per 1/16kilo) Batangas City, Batangas
Eggs(per piece) Bauan, Batangas
Butter(per 1/8 piece) Batangas City, Batangas
Vanilla ( 1/8) Batangas City, Batangas
Yeast (per 1/16 kilos) Bauan, Batangas
Evaporated Milk (1/16 Batangas City, Batangas
Sugar ¼ Bauan, Batangas
Salt 1/16 Bauan, Batangas
Pepper (1/4) Bauan, Batangas
Garlic Powder Batangas City, Batangas
All Purpose Cream Batangas City, Batangas
Spaghetti sauce Batangas City, Batangas
Tomato Sauce Batangas City, Batangas
Cheese Bauan, Batangas
Pepperoni Bauan, Batangas

Pepperoni Flavor
Product (per pizza doughnut) Source Price
Cooking Oil ( per 1/10 gallon) Batangas City, Batangas Php1.14
Flour (per 1/16kilo) Batangas City, Batangas Php1.29
Eggs(per piece) Bauan, Batangas Php1.14
Butter(per 1/8 piece) Batangas City, Batangas Php0.91
Vanilla ( 1/8) Batangas City, Batangas Php0.37
Yeast (per 1/16 kilos) Bauan, Batangas Php0.14
Evaporated Milk (1/16 Batangas City, Batangas Php0.71
Sugar ¼ Bauan, Batangas Php0.29
Salt 1/16 Bauan, Batangas Php.94
Pepper (1/4) Bauan, Batangas Php 0.42
Garlic Powder Batangas City, Batangas Php 0.23
All Purpose Cream Batangas City, Batangas Php 1.51
Spaghetti sauce Batangas City, Batangas Php 2.4
Tomato Sauce Batangas City, Batangas Php1.71
Cheese Bauan, Batangas Php 1.4
Pepperoni Bauan, Batangas Php 2.09
Total cost per unit Php16.69
Table 2.1 Cost per unit

Hawaiian Flavor
Sugar ¼ Bauan, Batangas Php0.29
Tomato Sauce Batangas City, Batangas Php 1.71
Pineapple Batangas City, Batangas Php 1.37
Ham Batangas City, Batngas Php 3.26
Total cost per unit Php 18.58

Ham and Cheese Flavor
Sugar 1/4 Bauan, Batangas Php0.29
Ham Batangas City, Batangas Php 3.26

Meaty Cheese Flavor
Eden Cheese Bauan, Batangas Php 1.41
Meat Batangas City, Batangas Php 2.60

Cheesy Bacon Flavor
Bacon Batangas City, Batangas Php 3.2

Product Cost
The company will hire two employees who will be in charge of taking care and
looking out for the market stall that will be established. They will also be in charge of
making sure that the supplies are delivered on time. They will have a monthly
compensation of Php10, 500.00 each and another 5% bonus if they achieved quota in
sales.
The company will have a monthly budget of Php10, 500 for labor and Php73, 260
for raw materials and production of 5,250 pieces of pizza doughnut. The company will
ensure to give high quality products by getting their materials from leading suppliers in
the country
2.7 Manufacturing Process

Manufacturing process are the steps which raw materials are transformed into a
final product. These materials are then modified through through manufacturing process
to become a required part.
Description of the Process
1. Prepare all the materials that will be needed in the process. The materials to be
used are All purpose flour, brown sugar, vanilla extract, salt, strainer, measuring
cups, shaping tools, all-purpose cream milk, yeast, garlic powder, tomato sauce,
spaghetti sauce, ham, bacon, meat, pepperoni, vegetables, cheese, butter, egg,
and other mixing materials.
2. Place melted butter 85g in the bowl.
3. Place vanilla extract ½ Tsp.
4. Add 2 eggs in the bowl.

5. Place ¼ cup of powdered sugar.
6. Add ¼ Tsp. of salt. (Do place directly on yeast).
7. Place all purpose flour 280g.

8. Sift the 280g all purpose flour.
9. Mix the ingredients
10. Combine the dry and liquid ingredients

11. Mix all the ingredients until the dough becomes solid.
12. Leave to rise at room temperature 2-3hrs and refrigerate overnight.
13. Cut the dough into circles forming the donuts

14. Prepare the frying pan and put a large amount of cooking oil for deep frying.
15. Deep Fry the dough with medium heat temperature.
16. In making the sauce, combine tomato paste, Italian sauce, garlic powder add
pepper salt to taste
17. Cook the other toppings depending on its flavor.
18. Put the sauce and toppings on the dough and put its finishing touches.
19. This is what the final product looks like after the process.
Pizza Doughnut should follow this procedure
Figure 2.4 Production Process
Lead Time: 11 hrs & 55 mins
2.8 Menu Item

Product Price
Hawaiian Toppings Doughnut P 35.00
Ham and Cheese Toppings Doughnut P 35.00
Meaty Cheese Toppings Doughnut P 30.00
Pepperoni Toppings Doughnut P 34.00

Cheesy Bacon Toppings Doughnut P 32.00
Coke (per cup) P 10.00
Royal (per cup) P 10.00
Sprite (per cup) P 10.00
Table 2.6 Selling Price per Product
2.9 Kiosk Design
Kiosk design is the main part of how your building will be built. Most of the
businessmen just pay for an architect to do it for them but it’s not bad to have a
knowledge doing this. You can already see the future of your business as you can see
its Kiosk. You can see how will it be formed and should be formed so that you can’t
meet your expectation you can let the workers see the kiosk for them to have a hint.
Figure 2.4 Pizza Doughnut’s Kiosk Design

2.10 Store Layout
In order to locate the place and building of the Pizza Doughnut, the restaurant
size and layout were properly designed. The building will be located at P. Zamora
Street, Batangas City. It has the best space to accommodate for all the materials,
equipment, furniture and fixtures, tools and supplies, machines and other possible
materials needed for the production of the restaurant.
The plant will provide all the possible workers and facilities needed in order to
operate and produce in its best capacity and high quality of product.
Figure 2.5 Restaurant Layout

2.11 Plant Location Map
A major concern of the proponent is selecting the proper plant location. It is also
difficult to select the perfect location of your business because of some factors that may
affect your decisions. One factor is the availability of financial resources, also the
accessibility and availability of the place and the presence of the basic utilities which
were required to operate the business
Figure 2.6 Location Map of the store
2.12 Environmental Impact
Sustainable Packaging
We are looking for opportunities to make improvements to our packaging that

make sense for the planet and for our business. We are evaluating our packaging on an
ongoing basis with suppliers and discuss opportunities to decrease the amount of
material in our packaging; increase the amount of recycled and/or certified material in
our packaging; and find packaging options that are recyclable, compostable, and
biodegradable or a combination of those.
2.13 Government Approvals

Like any other business, it has to secure necessary permits for the operations, but
since this line of business produces livelihood jobs for the local residents, government
agencies give incentives to the business owners and support the project.
Here are the necessary permits needed to start the operations of the business:
Procedure Cost
Verify availability of company

name with the SEC
Php40
Register partnership with SEC
- Filing fee for articles of

partnership
- Issuance fee
Php1000
- Bylaws fee
Php1510
Php470
Php2980
Obtain community tax certificate
Php500
Apply Barangay clearance
Php800
Mayor’s permit Php900
.2% capital license fee Php150000 x .2% + Php5000

2000
Retail business fee Php2000
Php7900
Buy special books of account Php400
Register for BIR Php615
Payment of documentary stamp P1 for every P200

taxes capital Php750
Print receipts and invoices

Php4000
Total Php14135
Table 2.6 Licensing fees

CHAPTER 3
MARKETING PLAN
3.1 Industry Profile
3.1.1 Current Size
According to Research Firm Technomic’s 2016 – Pizza Trend Report, the

consumption of pizza climbed to its highest level in the past four years. 41% of
consumers polled say they now eat pizza once a week, a big jump from 26% just two
years ago. According to Harris Poll, they found out that pizza is the number one favorite
comfort food earning twice as many votes as any other. On the other hand, in doughnut
industry, according to Research firm IBIS word the doughnut store industry is slated to
earn $11.6 Billion in revenue in 2012 but because of low consumer confidence and a
decline in personal disposable income the growth and revenue in the industry slowed
and decline in 2008 and 2009. In spite of the economic turndown, doughnut stores are
estimated to increase at an annual rate of 2.5%.
In the world today, about 5 billion pizzas are sold every year. According to the
statistic that has been calculated by statistical on the US census data and Simons
National Consumer Survey (NHCS) 195.18 billion doughnut was consumed. This figure
was projected to increase to 205.63 million in 2020.
3.1.2 Growth Potential
The country’s appetite for pizza and doughnut is continuing to grow and the
populations in the Philippines are fueling a boon in the fast food industry. There is a
potential growth in pizza doughnut- a combination of the dough of the doughnut with the
toppings of the flavors of pizza.
3.1.3 Geographic Location
Based on the preliminary results of the 2012 Census of Philippine and Industry
(CPBI) conducted nationwide, the Philippines had a total of 6,229 establishments that
are engaged in Accommodation and Food Service Activities. 71.9% of establishment
garnered was restaurants and mobile food service. Fast food stalls or restaurant that
serves doughnut are commonly located inside the malls or nearby the city that are
accessible by the people.
3.1.4 Industry Trends
There is currently trend or demanding Pizza doughnut. As we combed through

the numbers and reviewed, one of the leading and trailing trend in the year in the fast
food industry are pizza and doughnut. It became crystal clear that consumers want their
food as fast as they can get it.
3.1.5 Seasonality Factor
According to “The Economist” magazine, Fast food restaurants tend to fare better
during an economic downturn. Consumers living on a tight budget in a bad economy
often turn to fast food chains for inexpensive meals. However, the magazine notes that
a long-term recession makes even fast food restaurants vulnerable to profit losses if
consumers eat at home more often to save money.
3.1.6 Profit/Sales Characteristics
There is a potential profit or growth in pizza doughnut. Since pizza doughnut

belongs to the fast food industry. Nowadays, people are willing to spend for delicious
and convenient food.
3.1.7 Distribution Channels
Pizza doughnut shall be distributed in small kiosks or outlet space inside malls
either dine-in or take-out. Pizza Doughnut also offers delivery services from 10:00 am
and 2:00 pm.
3.2 Competition Profile
Kamboozia’s
Factors Dunkin’ Mister Donuts Happy Haus Patisserie by
Donuts Donuts Diane
Products Doughnuts Doughnuts Doughnut Baked Goods
Hot beverages Hot beverages Soft Drinks Doughnuts
Iced beverages Cold Water Soft Drinks
Soft Drinks Beverages
Water Soft Drinks
Doughnuts
Location 3 9 2 1
(Batangas City)
Target Market High Income High Income Middle Incom Low-Middle

Income
Market Share 20% 60% 13.33% 6.67%
Advertisement Social Media, Social Media, Social Media Social Media

TV, Radio, TV, Radio,
Newpaper, Newpaper,
Magazine, Magazine,
Billboard Billboard
Economies of High High Average Average
Scale
Table 3.1 Competition Profile
3.3 Customer Profile
The company’s target market is mostly composed of students, teenagers and adults, no
age limit and mostly residing in Batangas City.
Graph 3.1
It can be gleaned that the graph above showed that the majority of the
respondents who are willing to buy pizza doughnut are mostly college students.
Graph 3.2
In this portion, graph 3.3.2 shows the place where some of the respondents
situated. It revealed that majority of the respondents are residing from Batangas.
Graph 3.3
The graph above showed that age ranges 18-21 are interested in buying pizza
doughnut.
Graph 3.4
It can be gleaned that the graph above showed that the majority of the
respondents who are willing to buy pizza doughnut are mostly students that studying at
the University of Batangas.
3.4 Pricing Profile
Prices of pizza doughnut made of variety of flavors range at around P30 – P35 in
stalls or booths and P50 – P55 in stores inside malls. Considering the results in the
survey and the costs and expenses from the company’s operations.
Graph 3.5
3.5 Break-even analysis
Year 1 Year 2 Year 3 Year 4 Year 5

Fixed Costs 1,025,680.00 1,025,680.00 1,025,680.00 1,025,680.00 1,025,680.00
Selling Price – Pizza Doughnut 35.00 36.75 38.59 40.52 42.54
(Hawaiian)
(Ham and Cheese)
(Pepperoni)
(Bacon)
(Meaty Cheese)
Selling Price - Softdrinks 10.00 10.50 11.03 11.58 12.16
(Coke,Sprite,Royal)
Contribution Margin Ratio – Pizza 0.46 0.48 0.51 0.53 0.56

Doughnut (Hawaiian)
Doughnut (Ham and Cheese)
Doughnut (Pepperoni)
Contribution Margin Ratioe – Pizza 0.51 0.54 0.56 0.59 0.62
Doughnut (Bacon)
Doughnut (Meaty Cheese)
Contribution Margin Ratio - 0.30 0.32 0.33 0.35 0.36
Softdrinks (Coke,Sprite,Royal)
Break even volume - Pizza 62,465.29 65,588.55 68,867.98 72,311.38 75,926.95

Doughnut (Hawaiian)
Doughnut (Bacon)
Break even volume - Pizza 358,988.00 376,937.40 395,784.27 415,573.48
Doughnut (Coke, Sprite, Royal) 341,893.33
Break even sales - Pizza 2,229,739.13 2,123,561.08 2,022,439.12 1,926,132.50 1,834,411.90

Doughnut (Hawaiian)
Break even sales - Pizza
Doughnut (Ham and Cheese) 2,011,137.25 1,915,368.81 1,824,160.78 1,737,295.98 1,654,567.60
Doughnut (Pepperoni) 2,011,137.25 1,915,368.81 1,824,160.78 1,737,295.98 1,654,567.60
Doughnut (Bacon) 2,011,137.25 1,915,368.81 1,824,160.78 1,737,295.98 1,654,567.60
Doughnut (Meaty Cheese) 2,051,360.00 1,953,676.19 1,860,643.99 1,772,041.90 1,687,658.95
Doughnut (Coke, Sprite, Royal) 3,418,933.33 3,256,126.98 3,101,073.32 2,953,403.16 2,812,764.91
3.6 Market Strategies
Marketing strategies of the company would take into consideration the results of
the survey done for the product, the cost involved in producing such and the going rate
of these products in the market.
FIRST YEAR MARKETING STRATEGY

January  Opening – Pizza Doughnuts will be giving free doughnuts to the first
100 patrons.
 A tent will be set up on the university campus and at select spots in
downtown offering free doughnut samples in a variety of flavors
 Advertisements in Social Media (e.g., Facebook, Instagram, and
Twitter)
February  For the first couple customer, Pizza doughnut will be giving a gift
card either spa, salon or massage therapy.
Twitter)
March  Pizza Doughnut will be giving 10% discount for graduating students.
Twitter)
April  We will also be offering P10 less the price of pizza doughnuts if
Facebook users “like” Pizza Doughnut group or follow us on Twitter.
 Distribution of customer loyalty cards wherein every purchase of one
box of a dozen of pizza doughnut is equal to one stamp and if you
collected 5 stamps, you will be given another free box of dozen of
pizza doughnut.
Twitter)
May  Advertisements in Social Media (e.g., Facebook, Instagram, and
Twitter)
June  Promotional vouchers will be distributed to local radio stations for
free doughnut packages.
 Distribution of customer loyalty cards wherein every purchase of one
pizza doughnut.
Twitter)
July  Distribution of customer loyalty cards wherein every purchase of one
pizza doughnut.
Twitter)
August  All customers who purchase a dozen doughnuts will be given a free
doughnut ring.
Twitter)
September  Creating various blogs and reviews can also be beneficial in
generating traffic for the business.
Twitter)
October  Pizza Doughnut will accept birthday parties and events. For children,
we will be offering temporary tattoos and balloons.
 All customers who purchase a dozen doughnuts will be given a free
doughnut ring.
Twitter)
November  All customers who purchase a dozen doughnuts will be given a free
doughnut ring.
Twitter)
December  All customers who purchase a dozen doughnuts will be given a free
doughnut ring.
 In Celebration of Christmas, Pizza Doughnut come up into Christmas
theme offering Christmas giveaways to their loyal customer.
 Giving away free tumblers and t-shirts for loyal customers with a total
of 10 stamps
 On-going Advertisements thru Social Media
YEAR MARKETING STRATEGY
2019  Pizza Doughnut will accept birthday parties and events.

 Promotional vouchers will be distributed to local radio stations for free doughnut
packages.
 All customers who purchase a dozen doughnuts will be given a free doughnut ring
 Creating various blogs and reviews can also be beneficial in generating traffic for
the business.
 Giving away free tumblers and t-shirts for loyal customers with a total of 10
stamps.
 Advertisements in Social Media (e.g., Facebook, Instagram, and Twitter)
packages.
the business.
stamps.
packages.
the business.
stamps.
packages.
the business.
stamps.
3.6.1 Product
Graph 3.6
Production would be done for all: pizza doughnut and beverages. Flavor of pizza
doughnuts would be Ham and Cheese, Hawaiian, Bacon, Pepperoni and Veggies. The
graph showed that the majority of the respondents preferred Hawaiian flavor compared
to other flavor.
3.6.2 Price
Graph 3.7
In order to create a loyal and strong customer base the company has tried to
maintain a fair pricing policy for all its products. To provide its customers ultimate
satisfaction the company has kept the pricing reasonable so that an average person can
easily buy from a Pizza Doughnut outlet without thinking about the expenses. Pricing of
the products would be ranging at around P30 – P35 in stalls or booths and P50 – P55 in
stores inside malls.
3.6.3 Place of Distribution
Products shall be distributed in small kiosks or outlet space inside malls. The
company’s first store would be set up at 51 Onyx Road Mount View Park Subdivision,
Batangas. The store will be visible to traffic as well as advertise our Logo on the Plaza
column. There is ample parking and the store is easily accessible for individuals walking
or driving.
The respondents have claimed that they are willing to order drinks and beverage
that will match the Pizza Doughnut and grab deliveries. We will cater to health-
conscious drink and beverages loving individuals ranging from children to adults. We
also will take telephone and online orders and offer delivery and catering services for
business meetings, parties, weddings, and events. Our delivery time clock is between
10:00 am and 2:00 pm. Pick up times are ready on the hour.
Graph 3.8
Special attention also needs to be given to the opening of Pizza Doughnut outlet
at strategically important locations to generate the maximum number of customers. It is
a given fact that easy accessibility of the outlets will help in attracting a
healthy customer base. Therefore, the outlets are located at places where a person can
quickly avail himself to a bite. As time passes and when it will be more widely spread,
franchising could be accepted and opening in a vast location such as malls
supermarket, airports and food courts.
3.6.4 Promotion
Promotion would initially be done through word-of-mouth and placement of

advertisements in popular internet sites (e.g., Facebook, Instagram, and Twitter). The
promotional strategy of the Pizza Doughnut includes posting through print media like
popular magazines and newspapers. The company shall explore promotion through
advertisement in magazines (e.g., Chalk, Candy,) upon expansion of the business. The
pink, violet and the color red in the logo of the company along with a chef have made it
a memorable one. It will also create catchy slogans that can be aired at television and
radios. Some of its famous slogans are Doughnut ever let go of me and Doughnut break
my heart. Create hype and awareness during our first year of operation and be able to
get early exposure to generate excitement, potentially even before the doors are open.
There will be several promotional items and events that will be implemented in order to
achieve initial awareness and continued participation in the community. Promotional
vouchers will be distributed to local radio stations for free doughnut packages. This is a
great way to get our name on the radio at the cost of a few dozen doughnuts. At the
store on the grand opening day, we will be giving free doughnuts to the first 100
patrons. We will also be offering half price doughnuts if Facebook users “like” Pizza
Doughnut group or follow us on Twitter. Also, all customers who purchase a dozen
doughnuts during the opening week we will be given a free doughnut ring. For children
we will be offering temporary tattoos and balloons. And accept birthday parties and
events. We are confident in our product and word of mouth is a great way for good
news to travel. We are hoping to create awareness and spread the word by providing
samples around the city. During the opening week, a tent will be set up on the university
campus and at select spots in downtown offering free doughnut samples in a variety of
flavors.
CHAPTER 4
OPERATING AND CONTROL SYSTEMS
4.1 Risk Analysis and Controls
In order to avoid future problems in operations, the company assessed the

following potential risks.
Since the company will be new to the industry, the first risk is that already well-
known brands will be chosen over the company’s product. Second, there is a risk that
there will be a shortage of supplies needed in the production of the pizza donut.
Third, since the store will be located in small kiosks the pricing of the product will
be affected which will affect the profitability of the company.
Fourth, changing tastes and preferences of customers is another problem that

will affect the operations of the company and should be acknowledged.
Fifth, customer service is a key component in the success of business and there
is a risk that the employee that will be hired is not motivated and approachable which
will affect the customer relationship of the company.
Lastly, there is a risk of unexpected breakdown of machines and equipment.
4.2 Salvaging Assets
The company addresses the following risks with the following solutions:
First the company will market its product in different forms such as flyers and
advertisements so that the store will be known. The company will have a competitive
edge through the uniqueness of the product and having great customer service.
Second in order to avoid the risk of shortage of supplies the company will
manage its supply chain management in order to plan ahead.
Third, the pricing of products will be strategized wherein the pricing expectation
of the customers and the company meets at an agreement so that the company will still
be able to profit while satisfying the customers.
Fourth, due to the changing tastes and preferences of customers the company
will develop other donuts that will cater to the tastes of its customers.
Fifth, the company will develop a hiring policy which will allow them to employ
motivated individuals that will contribute to the success of the business while keeping
the customers happy.
Lastly the company will establish a budget for the unexpected costs such as
repair and maintenance for machineries and equipment.
CHAPTER 5
FINANCIAL PLAN
1. ASSUMPTIONS:
A. Monthly Production (First Year 2018):
January – March: 15,750 pieces Pizza Doughnut, monthly inventory of 15% of monthly
production.
April-June and November- December (peak season) 23,625 pieces. Pizza Doughnut,
monthly inventory of 20% of monthly production.
July-October: 15,750 pieces. Pizza Doughnut, monthly inventory of 15% of monthly

production.
B. Annual Production (Years 2018, 2019, 2020 and 2021)
The Group assumed an annual increase of 5% demand for all flavors of Pizza
Doughnut and an increase of 3% for Beverages.
YEAR PIZZA DOUGHNUT SOFTDRINKS
2018 63000 57600

2019 81900 66240
2020 106470 76176
2021 138411 87602
Table 5.1 Annual Projected production
1. SELLING PRICE:
FIRST YEAR (2018):
Based on the survey results, buyers are willing to buy at a price range of
Php30.00-35.00 pesos for a delicious piece of Pizza Doughnut.
The following are the selling price of pizza doughnut depending on each
flavor chosen.
Selling Price – Pizza Doughnut (Hawaiian) 35.00 per piece

Selling Price – Pizza Doughnut (Ham and Cheese) 35.00 per piece
Selling Price – Pizza Doughnut (Pepperoni) 34.00 per piece
Selling Price – Pizza Doughnut (Bacon) 32.00 per piece
Selling Price – Pizza Doughnut (Meaty Cheese) 30.00 per piece
Selling Price - Soft drinks (Coke,Sprite,Royal) 10.00 per cup
Table 5.3 Selling Price Per Unit
An annual Increase in price and demand: 5% for all flavors of Pizza Doughnut.
2. DIRECT MATERIALS
Cooking Oil ( per 1/10 Batangas City, Batangas Php1.14

gallon)

Meat Bauan, Batangas Php 2.60
Bacon Bauan, Batangas Php 3.2
Ham Bauan, Batangas Php 6.52
Pineapple Bauan, Batangas Php 1.37
Pepperoni Bauan, Batangas Php 2.09
Table 5.4 Direct materials
3. DIRECT LABOR and OVERHEAD COST
Initial labor cost per piece of doughnut is at Php6. Overhead cost is at 5% of

Direct material cost.
Direct Labor Per Day Per Month

Units to be produced 175 5,250
Direct Labor hours per unit .2 6
Total direct labor hrs. needed 35 1,050
Direct Labor per hour 10 300
Total Cost of Labor 350.00 10,500.00
Table 5.5 Direct Labor
4. OPERATING EXPENSES
Professional Fee – 5,000

Advertising expense – 10% of sales
Salaries and wages of staffs that will man the kiosk – daily wage rate of 375
Rental fee – 20,000 monthly
Depreciation expense – straight-line amortization at 60 months
Utilities – 3% of sales
Miscellaneous – 5% of sales
5. CASH
Cash is maintained at 75,000 at the end of each period.
6. PAYABLES
Subcontractors for both suppliers of raw materials and labor requirements will be
paid on terms 50% down payment and 50% balance payable after 45 days. Pizza
Doughnut will also sub-contract the work themselves. Total startup costs will be
contributed by the owners and the remainder will be secured through a proposed bank
loan of monthly installment with 9% interest within 1 year.
7. CAPITAL CONTRIBUTION
The initial capital contribution of the partners is Php146, 500 pesos each and a
total of Php732, 500.
Capital Expenditure
QUANTITY COST per unit Total Cost

EQUIPMENT
Cooking Pan 4 350.00 1,400.00
Commercial Sinks 2 875.00 1,750.00
Tables and Chairs (Set of
1 table with 4 chairs) 1 1,980.00 19,800.00
Kitchen remodelling 60,000.00 60,000.00
Dinnerware and tools 15 set 15,000.00 15,000.00
Dishes, Plates and
Utensils 40 sets 500.00 20,000.00
Stove 4 1,000.00 4,000.00
Gas 2 1,000.00 2,000.00
Toilet bowl 2 3,650.00 7,300.00
Cash register 1 13,250.00 13,250.00
Refrigerator 1 14,600.00 14,600.00
Desktop 1 16,950.00 16,950.00
Speaker 2 6,150.00 6,150.00
Aircon 2 25,000.00 50,000.00
Softdrink dispenser 1 20,000.00 20,000.00
Heat lamps 5 3,500.00 17,500.00
Janitorial equipment 2 set 10,000.00 10,000.00
Foam, cups and lids 10 box 5,000.00 50,000.00
Disposable containers 10 box 5,000.00 50,000.00
Filing cabinet 1 2,000.00 2,000.00
Steam table 2 400.00 800.00
Fire extinguisher 1 1,700.00 1,700.00
Total 384,200.00
Depreciation expense - 5
years estimated useful life (76,840.00) 307,360.00
BUILDING 1,000,000.00
Depreciation expense - 5
years (200,000.00) 800,000.00
Office Supplies 5,000.00
TOTAL 1,112,360.00
2. FINANCIAL STATEMENTS
PIZZA DOUGHNUT
PROJECTED INCOME STATEMENT
FOR THE MONTHS ENDED JAN-JUNE, 2018
JANUARY FEBRUARY MARCH APRIL MAY JUNE

Sales – Pizza Doughnut
(Hawaiian) 36,750 36,750 36,750 47,775 47,775 47,775
Sales – Pizza Doughnut (Ham
and Cheese) 36,750 36,750 36,750 47,775 47,775 47,775
(Pepperoni) 35,700 35,700 35,700 46,410 46,410 46,410
Sales – Pizza Doughnut (Bacon) 33,600 33,600 33,600 43,680 43,680 43,680
Sales – Pizza Doughnut (Meaty
Cheese) 31,500 31,500 31,500 40,950 40,950 40,950
Sales - Softdrinks
(Coke,Sprite,Royal) 48,000 48,000 48,000 62,400 62,400 62,400
Net Sales 222,300 222,300 222,300 288,990 288,990 288,990
Cost of Goods Sold
Direct Materials 73,260 73,260 73,260 95,238 95,238 95,238
Direct Labor 31,500 31,500 31,500 40,950 40,950 40,950
Overhead cost (5% ofDM) 3,663 3,663 3,663 4,762 4,762 4,762
Total cost of Goods Sold 108,423 108,423 108,423 140,950 140,950 140,950
Gross Margin 113,877 113,877 113,877 148,040 148,040 148,040
OPERATING EXPENSES
Salaries and wages-partners 18,000 18,000 18,000 18,000 18,000 18,000
Salaries and wages-staff 10,500 10,500 10,500 10,500 10,500 10,500
Professional fee 5,000 5,000 5,000 5,000 5,000 5,000
Rental fee 20,000 20,000 20,000 20,000 20,000 20,000
Amortization (111) (111) (111) (111) (111) (111)
Advertising 22,230 22,230 22,230 28,899 28,899 28,899
Depreciation 6,403 6,403 6,403 6,403 6,403 6,403
Utilities 6,669 6,669 6,669 8,670 8,670 8,670
Preoperating expenses 3,000 3,000 3,000 3,000 3,000 3,000
Miscellaneous 11,115 11,115 11,115 14,450 14,450 14,450
Total 103,028 103,028 103,028 115,033 115,033 115,033
Operating Income 10,849 10,849 10,849 33,008 33,008 33,008

PIZZA DOUGHNUT
FOR THE MONTHS ENDED JULY-DECEMBER, 2018
JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER

(Hawaiian) 47,775 52,553 52,553 78,829 78,829 78,829
(Ham and Cheese) 47,775 52,553 52,553 78,829 78,829 78,829
(Pepperoni) 46,410 53,550 53,550 53,550 53,550 53,550
(Bacon) 43,680 50,400 50,400 50,400 50,400 50,400
(Meaty Cheese) 40,950 47,250 47,250 47,250 47,250 47,250
Sales - Softdrinks
(Coke,Sprite,Royal) 62,400 72,000 72,000 72,000 72,000 72,000
Net Sales 288,990 328,305 328,305 380,858 380,858 380,858
Cost of Goods Sold
Direct Materials 95,238 104,762 104,762 115,238 115,237 115,237

Direct Labor 40,950 45,045 45,045 63,063 63,063 63,063
Overhead cost (5%
ofDM) 4,762 5,238 5,238 5,762 5,762 5,762
Total cost of Goods
Sold 140,950 155,045 155,045 184,063 184,062 184,062
Gross Margin 148,040 173,260 173,260 196,795 196,796 196,796
OPERATING EXPENSES
Salaries and wages-
partners 18,000 18,000 18,000 18,000 18,000 18,000
Salaries and wages-staff 10,500 10,500 10,500 10,500 10,500 10,500
Professional fee 5,000 5,000 5,000 5,000 5,000 5,000
Rental fee 20,000 20,000 20,000 20,000 20,000 20,000
Amortization (111) (111) (111) (111) (111) (111)
Advertising 28,899 32,831 32,831 38,086 38,086 38,086
Depreciation 6,403 6,403 6,403 6,403 6,403 6,403
Utilities 8,670 9,849 9,849 11,426 11,426 11,426
Pre-operating expenses 3,000 3,000 3,000 3,000 3,000 3,000
Miscellaneous 14,450 16,415 16,415 19,043 19,043 19,043
Total 115,033 122,109 122,109 131,569 131,569 131,569
Operating Income 33,008 51,151 51,151 65,226 65,227 65,227
PIZZA DOUGHNUT
PROJECTED BALANCE SHEET
FOR THE MONTHS ENDED JAN-JUNE, 2018
JANUARY FEBRUARY MARCH APRIL MAY JUNE

Cash 75,000 75,000 75,000 75,000 75,000 75,000
Inventories 47,619 47,619 47,619 57,143 57,143 57,143
Equipment 307,360 307,360 307,360 307,360 307,360 307,360
Office Supplies 5,000 5,000 5,000 5,000 5,000 5,000
Fixed Assets
Kiosk 125,000 125,000 125,000 125,000 125,000 125,000
Accumulated
(2,083) (4,167) (6,250) (8,333) (10,417) (12,500)
depreciation
Intangible Asset -
Patent and 20,000 20,000 20,000 20,000 20,000 20,000
trademark
Accumulated
(111) (222) (333) (444) (555) (666)
amortization
Building 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000
Accumulated
Depreciation
TOTAL ASSETS 1,377,785 1,375,590 1,373,396 1,380,725 1,378,531 1,376,337
Accounts
Payable-trade 36,630 36,630 36,630 54,945 54,945 54,945
Loans Payable 44,760 44,760 44,760 44,760 44,760 44,760
Total Liabilities 81,390 81,390 81,390 99,705 99,705 99,705
Partners' Capital
Partner's
732,500 732,500 732,500 732,500 732,500 732,500
Contribution
Cumulative
(586,210) (593,519) (574,111) (600,426) (.626,742)
Earnings 0
Net Earnings for
the period 10,849 10,849 10,849 33,008 33,008 33,008
Distributions
(47,515) (76,025) (104,534) (133,043)
declared (28,509) (38,012)
Total Partners'
1,296,395 1,294,200 1,292,006 1,281,020 1,278,826 1,276,632
Capital
Total Liabilities
and Partners' 1,377,785 1,375,590 1,373,396 1,380,725 1,378,531 1,376,337
Capital
PIZZA DOUGHNUT
FOR THE MONTHS ENDED JULY-DECEMBER 31, 2018
JUNE JULY AUGUST SEPT OCT NOV DEC 2018

Cash
75,000 75,000 75,000 75,000 75,000 75,000
75,000 75,000
Inventories
57,143 47,619 47,619 47,619 47,619 57,142
57,142 57,142
Equipment
307,360 307,360 307,360 307,360 307,360 307,360 307,360 307,360
Office Supplies 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000
Fixed Assets
Kiosk
125,000 125,000 125,000 125,000 125,000 125,000
125,000 125,000
Accumulated
(12,500) (14,583) (16,667) (18,750) (20,833) (22,917)
depreciation (25,000) (25,000)
Intangible Asset -
20,000 20,000 20,000 20,000 20,000 20,000
Patent and trademark 20,000 20,000
Accumulated
(666) (777) (888) (999) (1,110) (1,221)
amortization (1,332) (1,332)
Building
1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000
1,000,000 1,000,000
Accumulated
Depreciation (200,000) (200,000)
TOTAL ASSETS 1,376,337 1,364,619 1,362,424 1,360,230 1,358,036 1,365,364 1,363,170 1,363,170
Accounts Payable- 549,450

trade 54,945 36,630 36,630 36,630 54,945 54,945 54,945
Loans Payable 44,760 44,760 44,760 44,760 44,760 44,760 44,760 537,120
Total Liabilities 99,705 81,390 81,390 81,390 99,705 99,705 99,705 1,086,570
Partners' Capital
Partner's Contribution
732,500 732,500 732,500 732,500 732,500 732,500
732,500 732,500
Cumulative Earnings (626,742) (614,332) (564,662) 571,931 570,428 539,744 594,5680 0
Net Earnings for the
period 33,008 51,151 51,151 65,226 65,227 65,227 33,008 462,558
Distributions declared (133,043) (114,037) (66,522) (76,025) (95,031) (57,018) (114,037) (950,308)
Total Partners' 276,600
1,276,632 1,283,229 1,281,074 1,278,840 1,258,331 1,265,659 1,263,465
Capital
Total Liabilities and
1,376,337 1,364,619 1,362,464 1,360,230 1,358,036 1,365,364 1,363,170 1,363,170
Partners' Capital
PIZZA DOUGHNUT
FOR THE MONTHS ENDED 2018, 2019, 2020 and 2021
2018 2019 2020 2021 2022

642,941 883,584.63 1,279,935.45 1,949,158.85 3,113,085.13
(Hawaiian)
Sales – Pizza Doughnut (Ham
642,941 883,584.63 1,279,935.45 1,949,158.85 3,113,085.13
and Cheese)
560,490 771,498.00 1,150,439.66 1,715,508.56 2,689,311.95
(Pepperoni)
527,520 728,637.00 975,087.75 1,340,049.17 1,836,229.53
(Bacon)
494,550 685,776.00 919,368.45 1,267,614.08 1,694,981.11
(Meaty Cheese)
Sales - Softdrinks
753,600 1,077,648.00 1,400,942.40 1,986,791.04 2,582,828.35
(Coke,Sprite,Royal)
Net Sales 3,622,043 4,708,655.90 6,121,252.67 7,957,628.47 10,344,917.01
Cost of Goods Sold

Direct Materials 1,155,968 1,502,758.40 1,953,585.92 2,539,661.70 3,301,560.20
Direct Labor 537,579 698,852.70 908,508.51 1,181,061.06 1,535,379.38

Overhead cost (5% ofDM) 57,798 75,137.40 97,678.62 126,982.21 165,076.87
Total cost of Goods Sold 1,751,345 2,276,748.50 2,959,773.05 3,847,704.97 5,002,016.45
Gross Margin 1,870,697 2,431,906.10 3,161,477.93 4,109,921.31 5,342,897.70
OPERATING EXPENSES
Salaries and wages-partners 216,000 216,000.00 216,000.00 216,000.00 216,000.00
Salaries and wages-staff 126,000 135,000.00 135,000.00 135,000.00 135,000.00
Professional fee 60,000 60,000 60,000 60,000 60,000
Rental fee 240,000 312,000.00 312,000.00 312,000.00 312,000.00
Amortization 1,332 1,332.00 1,332.00 1,332.00 1,332.00
Advertising 362,204 470,865.20 612,124.76 795,762.19 1,034,490.84
Depreciation 76,840 76,840 76,840 76,840 76,840
Utilities 108,661 141,259.30 183,637.09 238,728.22 310,346.68
Preoperating expenses 36,000 0 0 0 0
Miscellaneous 181,102 235,432.60 306,062.38 397,881.09 517,245.42
Total 1,408,140 1,648,729.10 1,902,996.23 2,233,543.50 2,663,254.95
Operating Income 462,558 783,177.00 1,258,481.70 1,876,377.81 2,679,642.75

PIZZA DOUGHNUT
FOR THE YEAR ENDED 2018, 2019, 2020 and 2021
2018 2018 2019 2020 2021

Cash 75,000.00 75,000.00 75,000.00 75,000.00 75,000.00
Inventories 57,142.00 628,562.00 754,274.40 905,129.28 1,086,155.14
Equipment 307,360.00 307,360.00 307,360.00 307,360.00 307,360.00
Office Supplies 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00
Fixed Assets
Kiosk 125,000.00 125,000.00 125,000.00 125,000.00 125,000.00
Accumulated
(25,000.00) (50,000.00) (75,000.00) (100,000.00) (125,000.00)
depreciation
Intangible Asset -
20,000.00 20,000.00 20,000.00 20,000.00 20,000.00
Patent and trademark
Accumulated
(1,332.00) (2,664.00) (3,996.00) (5,328.00) (6,660.00)
amortization
Building 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00
Accumulated
(200,000.00) (200,000.00) (200,000.00) (200,000.00) (200,000.00)
Depreciation
TOTAL ASSETS 1,363,170.00 1,908,258.00 2,007,638.40 2,132,161.28 2,286,855.14
Accounts Payable-
549,450.00 824,175.00 1,236,262.50 1,854,393.75 2,781,590.63
trade
Loans Payable 537,120.00 0 0 0 0
Total Liabilities 1,086,570.00 824,175.00 1,236,262.50 1,854,393.75 2,781,590.63
Partners' Capital
Partner's Contribution 732,500.00 732,500.00 732,500.00 732,500.00 732,500.00
Cumulative Earnings 0 527,074.60 (785,259.86) (1,704,757.74) (3,006,192.78)
Net Earnings for the
494,407.50 777,229.35 1,238,497.76 1,838,146.68 2,617,690.29
period
Distributions declared (950,307.50) (952,720.95) (414,362.00) (588,121.41) (838,733.00)
Total Partners'
276,600.00 1,084,083.00 771,375.90 277,767.53 (494,735.49)
Capital
Total Liabilities and
1,363,170.00 1,908,258.00 2,007,638.40 2,132,161.28 2,286,855.14
Partners' Capital
PIZZA DOUGHNUT
PROJECTED CASH FLOWS
FOR THE YEAR DECEMBER 31,2018,2019,2020 and 2021
OPERATING ACTIVITIES 2018 2019 2020 2021 2022

Net Income 494,407.50 777,229.35 1,238,497.76 1,838,146.68 2,617,690.29
Add: Non -cash expenses
Amortization (24,999.96) (24,999.96) (24,999.96) (24,999.96) (24,999.96)
(Increase)/Decrease in
571,420.00 125,712.40 150,854.88 181,025.86
Inventories 9,524.00
Increase in Liabilities 18,315 (262,395.00) 412,087.50 618,131.25 927,196.88
Payments to
staff/employees 378,000 378,000 378,000 378,000 378,000
Depreciation – equipment (5,000.00) (5,000.00) (5,000.00) (5,000.00) (5,000.00)
Payments to suppliers 1,074,920.96 (281,533.44) (1,509,935.70) (2,167,011.44) (3,035,180.07)
Depreciation – Building (200,000) (200,000) (200,000) (200,000) (200,000)
Cash provided by
operations 1,745,167.50 952,720.95 414,362.00 588,121.41 838,733.00
INVESTING ACTIVITIES
Purchase of equipment (307,360.00) 0 0 0 0
Investment in Building (1,000,000.00) 0 0 0 0
Patent and trademark (20,000.00) 0 0 0 0
Fixed Assets (125,000.00) 0 0 0 0
Cash used by investing
activities (1,452,360.00) 0 0 0 0
FINANCING ACTIVITIES
Capital contribution
146500 732,500.00
Distribution (950,307.50) (952,720.95) (414,362.00) (588,121.41) (838,733.00)
Cash used by financing
activities (217,807.50) (952,720.95) (414,362.00) (588,121.41) (838,733.00)
Net increase/ decrease in
cash 75,000.00 0 0 0 0
Cash, beginning 0 75,000 75,000 75,000 75,000
Cash end 75,000 75,000 75,000 75,000 75,000
5.1 Financial Ratio Analysis
Profitability Ratios
1. Gross Margin 51.227 51.227 51.227 51.227 51.227

2. Operating Margin 13.479 16.3 19.98 22.81 24.987
3. Net Margin 13.479 16.3 19.98 22.81 24.987
4. Return on Assets 36.269 40.73 61.689 86.21 114.467
5. Return on Equity 37.164 40.020 32.388 26.459 21.829
6. Return on Investment 37.164 44.942 55.088 62.891 68.894
Efficiency/turnover Ratios
1. Inventory turnover 31 4 4 4 5
Break-even Analysis
Year 1 Year 2 Year 3 Year 4 Year 5

Fixed Costs 1,025,680.00 1,025,680.00 1,025,680.00 1,025,680.00 1,025,680.00
(Hawaiian)
(Ham and Cheese)
(Pepperoni)
(Bacon)
(Meaty Cheese)
Selling Price - Softdrinks 10.00 10.50 11.03 11.58 12.16
(Coke,Sprite,Royal)

Doughnut (Hawaiian)
Contribution Margin Ratioe – Pizza 0.51 0.54 0.56 0.59 0.62
Doughnut (Bacon)
Contribution Margin Ratio - 0.30 0.32 0.33 0.35 0.36
Softdrinks (Coke,Sprite,Royal)

Doughnut (Hawaiian)
Doughnut (Bacon)
Break even volume - Pizza 358,988.00 376,937.40 395,784.27 415,573.48
Doughnut (Coke, Sprite, Royal) 341,893.33
Break even sales - Pizza 2,229,739.13 2,123,561.08 2,022,439.12 1,926,132.50 1,834,411.90

Doughnut (Hawaiian)
Doughnut (Ham and Cheese) 2,011,137.25 1,915,368.81 1,824,160.78 1,737,295.98 1,654,567.60
Doughnut (Pepperoni) 2,011,137.25 1,915,368.81 1,824,160.78 1,737,295.98 1,654,567.60
Doughnut (Bacon) 2,011,137.25 1,915,368.81 1,824,160.78 1,737,295.98 1,654,567.60
Doughnut (Meaty Cheese) 2,051,360.00 1,953,676.19 1,860,643.99 1,772,041.90 1,687,658.95
Doughnut (Coke, Sprite, Royal) 3,418,933.33 3,256,126.98 3,101,073.32 2,953,403.16 2,812,764.91
Appendix 1
Code of Conduct
 Maintain the highest standards of business conduct by using only legal and
ethical means in all business activity.
 Actively promote and encourage the highest level of integrity within the specialty
food trade.
 Cooperate in every reasonable and proper way with other Association Members
and work with them toward the advancement of the specialty food trade.
 Be fair, equitable and respectful to employer(s), employees, associates,

competitors, customers, the public, and all business or professional relationships.
 Adhere to honesty in advertising and in all representations to the public

concerning specialty food products we manufacture, import, distribute and/or sell.
 Treat all customers and suppliers honestly, fairly and objectively.

Commit to the development and use of the highest standards and practices for
the marketing and sale of specialty food products.
 Observe all applicable state, federal, foreign or international laws and regulations
pertaining to the production, processing, labeling, handling, importing,
distributing, promoting and selling of specialty food products.
 Provide a safe working environment.
 Restrict employment to those ages/job positions mandated by the requirements

of the Fair Labor Standards Act.
 Avoid knowingly dealing with those who use any forced labor, whether in the
form of prison labor, indentured labor, bonded labor or otherwise exploitative
working conditions.
 Avoid any unfair or deceptive practice and always present our products and
services in an honest and forthright manner.
 Be responsive to and available for customers before, during and after the sale.
 Provide proper, fair and reasonable service to customers including, but not
limited to, after-sales service in accordance with best industry practices.
 Refrain from discriminatory practices in dealing with our employees, providers
and customers.
 Respect the rights of others concerning their intellectual property such as

patents, copyrights, trademarks and trade secrets and, if any innocent breach
occurs, promptly address and rectify any such breach.
 Comply with all laws concerning antitrust and competition and all laws that
prohibit restraints of trade, predatory economic activities and unfair or unethical
business practices.
 Recognize that other Members will compete for business within lawful,
reasonable and customary practice.
 Never engage in any legally improper communication or agreements with

competitors.
 Never comment on a competitor’s product without a good faith basis or need for
such statements.
 Never make false statements about competitors.
 Comply with all applicable antitrust and other laws regarding agreements with
competitors to: fix prices or other sales terms; divide or assign sales territories,
customers or product lines; or coordinate bids and agreements with customers to
fix their resale prices.
 Make a full and frank disclosure to customers of all material terms of any
agreement with them.
 Comply in good faith with contractual obligations.
 Maintain adequate commercial general and product liability insurance, to provide

for Specialty Food Association as an additional named insured, and to provide
Specialty Food Association with evidence of such insurance on request.
 Support the Association by taking an active role in Specialty Food
 Association activities and promoting the Association to the food industry at large.
 Represent Specialty Food Association, its positions, policies and fellow Members
in a positive, constructive and professional manner.
 Conduct business in our countries of operation in accordance with any applicable
trade restrictions, export controls or anti-boycott laws and regulations imposed by
such countries.
 Avoid agreeing, in any contracts or other documents, to any boycott terms,

conditions or language that would violate any U.S. federal or state law or
regulations.
 Never pay any bribe, kickback or other corrupt payment in any form directly or
indirectly to or for anyone for the purpose of obtaining or retaining business or
obtaining any other favorable action, nor offer or extend any gift or entertainment
that is illegal, known to be in violation of the rules of the recipient’s organization,
or likely to result in a feeling or expectation of personal obligation on the part of
the recipient.
 Submit any and all disputes with Specialty Food Association, or with any
Specialty Food Association member, to binding arbitration and non-binding
mediation administered by the American Arbitration Association under its
Commercial Rules.
 Any arbitration or mediation with Specialty Food Association as a party shall

take place in New York, New York, Any arbitration or mediation between
Specialty Food Association Members in which Specialty Food Association is not
a party shall take place at the AAA office nearest to Respondent’s principal place
of business.
 No party may be required to attend more than one day of mediation. Specialty
Food Association Members may modify this broad arbitration clause in
agreements into which they may enter with one another, if they do so in a writing
signed by each party.
 In the event a member does not renew its membership or its membership is
terminated, its obligation hereunder to mediate and arbitrate disputes with
Specialty Food Association Members during such member’s period of
membership shall survive termination or expiration of its membership for a period
of six (6) years.
 Act in a manner consistent with, and make every effort to uphold this code of
ethics.
Appendix 2
PARTNERSHIP AGREEMENT
This PARTNERSHIP AGREEMENT is made on JUNE 2017 between Ria Mari B. Cedez
B. Almarez, Ron Christelo A. Alea, Analyn S. Coliyat, Elvin Joseph M. Comia, and Mary
Joy R. Hernandez.
1. NAME AND BUSINESS. The parties hereby form a partnership under the name of
Pizza Doughnut to conduct a Food and Beverage Services. The principal office of the
business shall be in 51 Onyx Road Mount View Park Subdivision.
2. TERM. The partnership shall begin on JULY 2017, and shall continue until terminated
as herein provided.
3. CAPITAL. The capital of the partnership shall be contributed in cash by the partners
as follows: A separate capital account shall be maintained for each partner. Neither
partner shall withdraw any part of his capital account. Upon the demand of either
partner, the capital accounts of the partners shall be maintained at all times in the
proportions in which the partners share in the profits and losses of the partnership.
4. PROFIT AND LOSS. The net profits of the partnership shall be divided equally
between the partners and the net losses shall be borne equally by them. A separate
income account shall be maintained for each partner. Partnership profits and losses
shall be charged or credited to the separate income account of each partner. If a partner
has no credit balance in his income account, losses shall be charged to his capital
account.
5. SALARIES AND DRAWINGS. Neither partner shall receive any salary for services
rendered to the partnership. Each partner may, from time to time, withdraw the credit
balance in his income account.
6. INTEREST. No interest shall be paid on the initial contributions to the capital of the
partnership or on any subsequent contributions of capital.
7. MANAGEMENT DUTIES AND RESTRICTIONS. The partners shall have equal rights
in the management of the partnership business, and each partner shall devote his entire
time to the conduct of the business. Without the consent of the other partner neither
partner shall on behalf of the partnership borrow or lend money, or make, deliver, or
accept any commercial paper, or execute any mortgage,
security agreement, bond, or lease, or purchase or contract to purchase, or sell or
contract to sell any property for or
of the partnership other than the type of property bought and sold in the regular course
of its business.
8. BANKING. All funds of the partnership shall be deposited in its name in such
checking account or accounts as shall be designated by the partners. All withdrawals
are to be made upon checks signed by either partner.
9. BOOKS. The partnership books shall be maintained at the principal office of the
partnership, and each partner shall at all times have access thereto. The books shall be
kept on a calendar year basis, commencing January 1 and ending December 31, and
shall be closed and balanced at the end of each fiscal year. An audit shall be made as
of the closing date.
10. VOLUNTARY TERMINATION. The partnership may be dissolved at any time by

agreement of the partners, in which event the partners shall proceed with reasonable
promptness to liquidate the business of the partnership. The partnership name shall be
sold with the other assets of the business. The assets of the partnership business shall
be used and distributed in the following order: (a) to pay or provide for the payment of
all partnership liabilities and liquidating expenses and obligations; (b) to equalize the
income accounts of the partners; (c) to discharge the balance of the income accounts of
the partners; (d) to equalize the capital accounts of the partners; and (e) to discharge
the balance of the capital accounts of the partners.
11. DEATH. Upon the death of either partner, the surviving partner shall have the right
either to purchase the interest of the decedent in the partnership or to terminate and
liquidate the partnership business. If the surviving partner elects to purchase the
decedent's interest, he shall serve notice in writing of such election, within three months
after the death of the decedent, upon the executor or administrator of the decedent, or,
if at the time of such election no legal representative has been appointed, upon any one
of the known legal heirs of the decedent at the last-known address of such heir. (a) If
the surviving partner elects to purchase the interest of the decedent in the partnership,
the purchase price shall be equal to the decedent's capital account as at the date of his
death plus the decedent's income account as at the end of the prior fiscal year,
increased by his share of partnership profits or decreased by his share of partnership
losses for the period from the beginning of the fiscal year in which his death occurred
until the end of the calendar month in which his death occurred, and decreased by
withdrawals charged to his income account during such period. No allowance shall be
made for goodwill, trade name, patents, or other intangible assets, except as those
assets have been reflected on the partnership books immediately prior to the decedent's
death; but the survivor shall nevertheless be entitled to use the trade name of the
partnership. (b) Except as herein otherwise stated, the procedure as to liquidation and
distribution of the assets of the partnership business shall be the same as stated in
paragraph 10 with reference to voluntary termination.
12. ARBITRATION. Any controversy or claim arising out of or relating to this

Agreement, or the breach hereof, shall be settled by arbitration in accordance with the
rules, then obtaining, of the American Arbitration Association, and judgment upon the
award rendered may be entered in any court having jurisdiction thereof.
Executed this 31st day of July, 2017 in Batangas City, Batangas, Philippines.
_________________________________
Almarez, Ria Mari Cedez B.
_________________________________
Alea, Ron Christelo A.
_________________________________
Coliyat, Analyn S.
_________________________________
Comia,Elvin Joseph M.
_________________________________
Hernandez, Mary Joy R.

Entrep Final 1 5..

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Entrep Final 1 5..

Uploaded by

Copyright:

Available Formats

PIZZA DOUGHNUT

A Business Plan presented to the

COLLEGE OF BUSINESS AND ACCOUNTANCY

In Partial Fulfillment of the Requirements in

ENTREPRENEURIAL MANAGEMENT (BM111)

ALEA, RON CHRISTELO A.

ALMAREZ, RIA MARI CEDEZ B.

COMIA, ELVIN JOSEPH M.

HERNANDEZ, MARY JOY R.

for the completion of the business plan.

To the participants, for their unselfish participation and cooperation in answering

provided to the researchers to make this study possible.

MANAGEMENT AND ORGANIZATION

1.1. Name, Address and Logo of the Business

1.1.1. Company Name: PIZZA DOUGHNUT

1.1.2. Company Address: 51 Onyx Road Mount View Park Subdivision,

Figure 1.1 Company Logo

1.2. Vision, Mission and Corporate Objectives

1.2.3. Corporate Objectives

1.2.3.1. General Objective

 Provide the City of Batangas an indulgence in a total quality experience.

The general partners are:

1.4. Management Team

General Manager- shall be responsible for controlling, administering business

Sales Manager- shall be responsible for selling products or services.

Purchasing Manager- shall be responsible for buying gods or products as required of

Production Manager- shall be responsible for manufacturing products or services

Figure 1.2 Organizational Chart

1.6. Ownership, Capitalization and Compensation

A limited partnership structure is deal for the business. An initial pool of

1.6.2. Partnership Agreement

The complete copy of partnership agreement is attached in Appendix 1.

1.6.3. Code of Conduct

The complete copy of Code of Conduct is attached in Appendix 2.

General Manager- Php25, 000/month

Sales Manager- Php20, 000/month

Quality manager- Php20, 000/month

Regional Manager Php20, 000/month

Purchasing Manager Php20, 000/month

Production Manager Php20, 000/month

Store Manager- Php20, 000/month

2.1 Purpose of the Product

2.2 Product Features

Figure 2.1 Pizza doughnuts in Different variety of flavors

Figure 2.2 Square cardboard packaging

Figure 2.3 Rectangle larger cardboard Packaging good for 6 pcs

2.4 Future Research and Development

2.5 Product Limitations

 Maximum lifespan is 2 days.

 Distribution channels are limited

 Product supplies are subject to the availability of the ingredients.

 Maximum lifespan is 2 days.

 Distribution channels are limited

 Product supplies are subject to the availability of the ingredients.

 Maximum lifespan is 2 days.

 Distribution channels are limited

 Product supplies are subject to the availability of the ingredients.

Cooking Oil ( per 1/10 gallon) Batangas City, Batangas

Flour (per 1/16kilo) Batangas City, Batangas

Eggs(per piece) Bauan, Batangas

Butter(per 1/8 piece) Batangas City, Batangas

Vanilla ( 1/8) Batangas City, Batangas

Yeast (per 1/16 kilos) Bauan, Batangas