“Diet Corner”

A FEASIBILITY STUDY

Presented/Proposal to

Prospective Business Partner

By:

Liezel A. Alberto

April 10, 2018

 CHAPTER I

Concept, Location and Design

A.THE CONCEPT

Diet Corner is a new restaurant designed to offer a

proper balance diet in a cool, friendly and serenity downtown
Tanauan Batangas City.

Diet Corner will be serving healthy, fresh, and fairly

priced meals prepared, meat and fishes and sold in the business
premises. The business will pride itself in the competent staff
comprised of fresh talents from colleges and others equipped
with the necessary experience with many of them coming with
experience from similar oppositions elsewhere.

The Name of the Enterprise

The name of the business is Diet Corner. Diet Corner

regular menus will be simple, but creatively prepared with
varying ingredients. We choose this name because everybody is
familiar with Diet Corner means.

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Vision

To be the universal trusted standard for healthy and

delicious dining outside the home ensuring that every customer
has a fresh, nutritious, affordable food.

Mission

To provide at a fair price- nutritional, well- prepared

meals; deliver the real taste and delicacy of good and healthier
food; encourage conscious lifestyle for better health and better
tomorrow for everyone.

B. Location of the project

The Health Corner will be located at Batangas,Tanauan
City.The chosen place is near school, hospital, offices and
churches.

Target Market

Our target market comprises the families, students,

government and private employees, travellers and health
conscious people. The minority of the market includes the
motorist and others.

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 CHAPTER II

Marketing Plan

I.MARKETING MIX
To attract customers and win their loyalty will be
enhanced by our marketing mix. The business will be promoting
healthy eating and this will be our brand identity. To achieve
the objective of a market study, it is essential to identify the
4p’s of marketing. Basically it is significant in dealing with
our customers such as the product that we offers, the price of
the product, promotion to be used and the place where we
established our business.

A. Product

 Description

Our main focus in the product strategy is the needs of our

target market and how to satisfy them by providing healthy high
quality of food. We will also be providing excellent fast service in
the restaurant, for take away, and for delivery in order to gain
customer satisfaction. Furthermore, our product will fit perfectly in
the product line of other restaurants that are located on
Batangas,Tanauan City since they are priced at about the same level.
Moreover, as for branding, we chose “Health Corner” to be our brand
name of the restaurant since it can show and point out clearly the
main benefits that our customers can expect, which is eating healthy
clean food. As for the brand familiarity, for the short run we want to
be able to reach brand preference with our customers against our
competitors, and for the long run we are aiming to reach brand
insistence especially with our target market. Moreover, as for

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our packaging strategy, we are going to make sure that our
deliveries are sent out in an excellent shape of packaging to
achieve efficiency and customer loyalty. As for the product life
cycle, we expect to enter the market at the growth stage.

MENU PRODUCTS

Healthy Hot Meals Salad

 HONEY GLAZE CHICKEN BBQ  HEATHY FRESH GARDEN SALAD
 OVEN ROASTED CHICKEN  TROPICAL SPECIAL
WINGS
 BONELESS BANGUS STEAK
 CHICKEN KEBAB
 SEASONAL TUNA STEAK
 MONGOLIAN VETETABLE
Uber Rich Sandwich Reboot Detox Juices
 TUNA MELT  POWER GLOW
 FISH FILLET  BEET IT
 CRISPY CHICKEN  SEXY FRUITY
 CHICKEN TERIYAKI  THE FLUSHER
 CHEESY CHIC’N MUSHROOM  SECRET A-PEAR
 MEAN GREEN

Fresh Fruit Blends

 FIBE RUP
 HIGH DETOXIFY
 IMMUNO BOOST
 PROTEIN EXTREME
 PINOY TROPICAL
 DEMOCRASHAKE

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B.PRICING

One of our goals is to create more revenue over time to

be able to pay for all the expenses and suppliers we need.
Moreover, in order for our restaurant to be in the market and
until we achieve awareness among our target market we will not
be gaining high profits. However, only for the short run, we
should be making enough profit to be able to pay our staff and
employees. To achieve brand preference and customer loyalty
among our competitors we will have our food delivery service
free of charge.

C. Promotional Mix

There will be vigorous promotional activities including

advertisement, gift vouchers to loyal customers, and terrific
days with special daily offers. Community services will also be
utilized fully to increase Health Corner’s publicity.

Marketing Strategy

Health Corner will initiate marketing programs that will

increase its publicity. All though radio and print mediums may
not be effective enough, the company will complement its
marketing medium with other creative ways. These include
sponsored community projects and events with much publicity of
Health Corner featured and distribution of menus downtown.

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Other initiatives will include sale of t-shirts and mugs with
Health Corner logo and images of healthy people. There will be
signage posters with variety vegetarian dishes along the avenues
from both directions towards the location of the business
premises.

D. Place /Location

Health Corner’s strategic location will enable access

to the target customers. The place will be accessible both by
pedestrians and an ambient and secure parking will be provided
free of charge to driving customers.

II. Target Consumer

The majority of our target market comprises the

families, students, government and private employees, travellers
and health conscious people. The minority of the market includes
the motorist and others.

III. Benefits of the Business to the Market

Our restaurant will be unique among other restaurants

because it will be the only restaurant that is focusing mainly
on healthy food. For that reason, the demand from our target
market will be high.

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 With this, we can contribute to a healthy life style
of the inhabitants of the town and promote good and healthy
eating habits of the consumer and furthermore there is a
possibility for our business to cater customer’s who would like
to have a diet program.

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 CHAPTER III

Financing

A detailed financial model has been developed and analyzed

the commercial viability of this project.

A. Financial Budget

The following requirements have been identified for operations

of the proposed Health Corner.

Table 3.1 Project Investment

This section will provide the total cost of the project.

ITEM Cost (Rs.)

Space Rental(Advance,Deposit) 40,000

Renovation, Design 15,000

Equipment & Machinery 20,000

Preliminary Expenses 15,000

 Grand Opening
 Flyers
 Business Permit

Working Capital 40,000

Total

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 Table 3.2: List of Furniture, Amenities and Utensils

Item Details Quantity Unit Price Total Price

Dining Table square 5 2000 10,000

Chairs(Standard 14”) 25 300

Kitchen Cutlery Set 2 2,500 5,000

Dinning Cutlery 35 150 5,250

Set(Silverwares,Chinawares
and Glassware’s)

Air Conditioner Split 1 15,500 15,000

Units

Portable Emergency Light 4 2,500 10,000

Counter Chairs 2 1,500 3,000

Office table and chair set 1 5,000 5,000

Waiting Chairs for Take 1 1,500 1,500

Away Customers

Total

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 Table 3.3: List of Equipment and Machine

Item Details Quantity Unit Price Total

Price

Deep well fryer(single valve 1 20,000 20,000

with two basket)

Soup container(2valve with 1 50,000.00 50,000.00

steel cabinet)

Potato Cutter (8mm) 1 3,000.00 3,000.00

Refrigerator 1 25,000.00 25,000.00

Microwave 1 10,000.00 10,000.00

Working tables 2 10,000.00 20,000.00

Keg racks and shelves 2 10,000.00 20,000.00

Hot plate for 1 33,000 33,000

burgers,kebab,sandwiches(30”x
22”)

Pillar(4.5 kg potato peeling 1 6,000.00 6,000.00

capacity

Total

Human Resource

The Basic consideration of the project is to provide good

quality service and to meet satisfaction of the target market.
Furthermore, in establishing this kind of business will help the
economy of Isabela.

Our business is a partnership in terms of ownership, which

is composed of 5 members, 8 members will have a different
capital according to their task.

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 Table 3.5: Salaries and Wages

Designation/Type Number Monthly Total Salary

Salary

Owner 2 20,000 40,000

Kitchen Supervisor 2 6,000 12,000

Cook 2 4,000 8,000

Servers 2 3,000 6,000

Cashier 1 6,000 6,000

Dishwasher/Cleaner 2 2,500 5,000

Total

Table 3.6 Utilities

The following table presents the assumed breakup of utilities on

a monthly basis:

Utility Monthly Charges

Electricity 5,000

Water 2,000

Gas 4,000

Telephone 2,000

Total 13,000

Account Receivables

All sales will be made strictly on cash basis. It is not

advisable to operate a restaurant on credit basis.

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Miscellaneous Outlet Expenses

A monthly figure Rs.6, 000(200 per day) is assumed to be

incurred for miscellaneous expenses which are expected to
increase at the rate of 10% per annum for the projected period.

Taxation
The business assumed to be run by the partnership of the
proponents. Therefore, tax rates applicable on the income of an
ordinary partnership which is taxable like corporation at 32%
rate according to the National Revenue Code, Section 20 and 24.

Machinery Maintenance
All machines require routine cleaning and maintenance after
every three months and an annual service which cost around 1% to
5% of the total cost depending upon the use of the machine
operator’s skill. We have assumed an average of 2.5% of the
depreciated cost as the annual maintenance cost.

B. Restaurant Sales Forecast

Since our business is just about to begin its operations and
there are no sales records, the best way to make projections is
to base on the 80 assumed number of customers.

The project number of covers depends on the seating capacity

of the establishment and the turnover rate.

C.INCOME STATEMENT

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 Health Corner
Projected YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Income
Statement

Revenue 10,015,200 11,517,480 13,245,102 15,231,867 17,516,647

Net Sales 10,015,200 11,517,480 13,245,102 15,231,867 17,516,647

Raw Material Cost 4,910,141 5,401,155 5,941,270 6,535,397 7,188,937

Utilities 624,000 686,400 755,040 830,544 913,598

Cost of Sales 6,608,141 7,268,955 7,995,850 8,795,435 9,674,979

Gross Profit 3,407,059 4,248,525 5,249,252 6,436,432 7,841,668

General
Administrative
and Selling
Expenses

Office and 72,000 79,200,00 87,120 95,932 105,415

miscellaneous

Amortization 10,000 10,000 10,000 10,000 10,000

Depreciation 281,625 253,463 228,116 205,305 184,774

Maintenance 21,758 19,582 17,624 15,861 14,275

expense

Subtotal 1,585,383 1,682,244 1,794,860 1,924,198 2,071,384

Operating 1,821,677 2,566,281 3,454,392 4,512,234 5,770,284

Income

Financial 357,889 298,344 229,228 149,001 55,878

Charges(15%
per annum)

Earnings 1,463,788 2,267,936 3,225,164 4,363,233 5,714,406

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Before taxes

Tax 365,947 566,984 806,291 1,090,808 1,428,602

Net Profit 1,097,841 1,700,952 2,418,873 3,272,425 4,285,805

Monthly Profit 91,487 141,746 201,573 272,702 357,150

After Tax

A. Strength and Weaknesses of Obtaining Loans

A bank loan is fixed amount of money for a fixed term

with regular fixed payments which includes the interest charged.
The advantages of bank loan are reliability, its reasonable cost
in comparison with other forms of finances and its ability to
tied to equipment life.

Bank loans area available to finance the purchase of

inventory as well as to obtain operating capital and funds for
business expansion. These loans are a time-honoured and reliable
method for financing small business, but bank loans often only
finance firms with substantial collateral and a long track
record, and the terms they offer are often very strict. Business
owners should weigh the advantages and disadvantages of bank
loans against the means finance

A. Basic Advantages of Bank Loans

A bank loans money to a business based on the value of the

business and its perceived ability to service the loan by making
payments on time and in full. Banks do not take any ownership
position in businesses. Bank personnel also do not get involved

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in any aspect of running a business to which a bank grants a
loan. Once a business borrower has paid off a loan, there is no
more obligation to or involvement with the bank lender unless
the borrower wishes to take out a subsequent loan.

B. Tax and Financial Planning Advantages

The interest on business bank loans is tax-deductible. In

addition, especially with fixed-rate loans, in which the
interest rate does not change during the course of a loan, loan
servicing payments remain the same throughout the life of the
loan. This makes it easy for businesses to budget and plan for
monthly loan payments. Even if the loan is an adjustable-rate
loan, business owners can use a simple spreadsheet to compute
future payments in the event of a change in rates.

C. Difficulties in Obtaining Loans

One of the greatest disadvantages to bank loans is that they are

very difficult to obtain unless a small business has a
substantial track record or valuable collateral such as real
estate. Banks are careful to lend only to businesses that can
clearly repay their loans, and they also make sure that they are
able to cover losses in the event of default. Business borrowers
can be required to provide personal guarantees, which mean the
borrower's personal assets can be seized in the event the
business fails and is unable to repay all or part of a loan.

D. Cost of Bank Loans

Interest rates for small-business loans from banks can be quite

high, and the amount of bank funding for which a business

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qualifies is often not sufficient to completely meet its needs.
The high interest rate for the funding a business does receive
often stunts its expansion, because the business needs to not
only service the loan but also deal with additional funding to
cover funds not provided by the bank. Loans guaranteed by the
U.S. Small Business Administration offer better terms than other
loans, but the requirements to qualify for these subsidized bank
loans are very strict.

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 CHAPTER IV

Legal and Tax Matters

A. Business Ownership

Partnership

The Diet Corner will be owned and managed by LIEZEL

A.ALBERTO and Prospective Business Partner.
Partnership is legally defined as “association of two or
more persons to carry as co-owners of a business for profit.

A partnership, as distinguished from a corporation, is

not a separate entity from the individual owners. The
partnership income tax is paid by the partnership, but the
profits and losses are divided among the partners, based on
their

Advantages of a Partnership

 Simply put, more than one owner of a business introduces

more money to help starting a business.
 There is a combination of talents, skills, and experience
with the involvement of new partners, which may help in
increasing the profits and cost-effectiveness of the
business.
 A partnership brings about better administration and
financial planning which is otherwise difficult in case of

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 a single owner of the business.

 It is easy to expand the business with new partners being

involved, since there is no hassle of managing the entire
business on one's own.

 All partners have an equal say in the matters of financial

management, which fosters them to work whole-heartedly for
the betterment of their company
 Post the payment of super tax to the government; the
profits made by the company are equally divided among the
partners. It is then that they can pay tax to the
government on the shares of profit they've received
 In case of a loss, partnership renders moral support, thus,
enabling for an even more insightful point of view.

 There is lesser room for rash decisions as the decision-

making process is the field of performance for all
partners.

Disadvantages of a Partnership

 Surprisingly, a partnership is not necessarily a legal

entity, and is identified only for the purpose of tax law.

 The existence of a partnership comes to an end with demise,

incapacity, lack of funds, or even retirement of a partner.
Moreover, dissolving a partnership is likely for partners
in case of discontent.

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  There are many instances when one partner is over-ruled by
another as every partner has an equal say in important
decisions.
 Even the simplest of arguments can, sometimes, turn into
major disagreements between partners. As a result, all
partners are bound by allegiance made by one, even if it’s
disagreeable by all.
 Even if one of the partners is responsible for loss, all
the partners are collectively liable for the aftermaths of
the company.
 It is forbidden for a partner to transfer a share or
segment of the company to outlanders without the approval
of other partners
 In case of unlimited liability partnership, partners could
lose all of their personal assets in case of bankruptcy.

B. Legal Aspect of the Business in Accordance to Government

Regulations.

The business should secure the following pertinent legal

documents:

1. Verify and reserve the name of the business with the

Securities and Exchange Commission;
2. Secure barangay clearance from the barangay office of
Batangas,Tanauan City;
3. Secure TIN number from the Bureau of Internal Revenue (BIR)
in order to identify applicable type of taxes and buy
special books of account;

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4. Pay annual community tax and obtain Community Tax
Certificate from the Municipal Treasure’s Office.
5. Obtain permit to operate from the Business Permits and
Licensing Office(BPLO)such as the following:

a. Sanitary Permit
b. Certificate of Portability
c. Fire Safety and Inspection Certificate
d. Mechanical Permit
e. Mayor’s Permit

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 CHAPTER VI

Food Purchasing

A.DIET CORNER PURCHASING SYSTEM

MENU Inventory Purchase Request/

(Par Stock) Specification

Purchase Order

Supplier

Delivery
Invoice
Par Stock Update Receiving

Payment
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B.DIET CORNER PURCHASE ORDER SLIP

PURCHASE ORDER

P.O No. Date

Supplier: Address:

Invoice number: Terms of payment:

Expected date to be delivered:

Quantity Unit Description of the Item Unit Total Remarks

Price
Price

All items are to be delivered directly at the receiving section,

accompanied by sales invoice or delivery receipt.

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Prepared by:

Signature:

Approved by:

(Purchasing Officer)

Conforme:

(Supplier)

Sample Purchase Order Slip

A. Par stocks and Recording System

A par stock is a set amount of stock inventory
that is stored behind that should be able to get through the
busiest days of the week without having to run to the stockroom

35
for more or rushing to the market. The most efficient food
operations use a par system. Once that par stock is set, stick
to it.

The following were considered by the proponents

in establishing a maximum par stock:

1. Ending Inventory

The ending inventory is the physical count of items

during the last inventory. Through this inventory, the
consumption of goods monthly would be monitored. From the
monthly consumption, the daily consumption can be computed by
using this formula:

Average Daily Usage or Minimum Daily Par= One Month Consumption

30 days

2. Lead Time

Lead time refers to the number of days or month before the

arrival/delivery of the imported goods. To compute for the Lead
Time Requirement, the formula below is being used:

Lead Time Requirement = Minimum Daily Par x

Number of days before Delivery

3. The Safety Stock

The safety stock is an arbitrary figure that is meant

to cover for unexpected increase in consumption of goods.

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 The proponents have set 10% safety stock to ensure the
availability of materials if ever the turnover rate increases.

In getting the exact number of the safety stock, this formula

was used:

Safety Stock=Minimum Par x Desired

Par Stock Percentage
To compute for the Maximum Par Stock, the proponents used the
formula below:

Maximum Par Stock = Minimum Par +

Safety Sock + LTR

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 CHAPTER VII

Food Production and Sanitation

A. Food Production System

CUSTOMER KITCHEN

Food
Customer order Ordering
System

Food Order

Receipt

Management Reports

Restaurant Manager

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B. Sanitation Practices

Food sanitation is the practice of following certain

rules and procedures to prevent contamination of food, keeping
it safe to eat. The term ‘food sanitation typically refers to
rules and procedures within the food industry.

Good Food Hygiene: The 4 Cs

Good food hygiene helps you to:

 Obey the law

 Reduce the risk of food poisoning among your customers
 Protect your business's reputation

Good food hygiene is all about controlling harmful bacteria,

which can cause serious illness. The four main things to
remember for good hygiene are:

 Cross-contamination(Chemical, Physical and Biological)

 Cleaning
 Chilling
 Cooking

These are known as the 4 Cs. They will help you prevent the most
common food safety problems.

Cross-contamination

Cross-contamination is when bacteria are spread between food,

surfaces or equipment. It is most likely to happen when raw food
touches (or drips onto) ready-to-eat food, equipment or
surfaces.

Cross-contamination is one of the most common causes of food

poisoning. Do the following things to avoid it:

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  Clean and disinfect work surfaces, chopping boards and
equipment thoroughly before you start preparing food and
after you have used them to prepare raw food.
 Use different equipment (including chopping boards and
knives) for raw meat/poultry and ready-to-eat food unless
they can be heat disinfected in, for example, a commercial
dishwasher.
 Wash your hands before preparing food.
 Wash your hands thoroughly after touching raw food.
 Keep raw and ready-to-eat food apart at all times,
including packaging material for ready-to-eat food.
 Store raw food below ready-to-eat food in the fridge. If
possible, use separate fridges for raw and ready-to-eat
food.
 Provide separate working areas, storage facilities,
clothing and staff for the handling of ready-to-eat food.
 Use separate machinery and equipment, such as vacuum
packing machines, slicers and mincers, for raw and ready-
to-eat food.
 Separate cleaning materials, including cloths, sponges and
mops, should be used in areas where ready-to-eat foods are
stored, handled and prepared.
 Make sure that your staff knows how to avoid cross-
contamination.


Cleaning

Effective cleaning gets rid of bacteria on hands, equipment

and surfaces. So it helps to stop harmful bacteria from
spreading onto food. You should do the following things:

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  Make sure that all your staff wash and dry their hands
thoroughly before handling food.
 Clean and disinfect food areas and equipment between
different tasks, especially after handling raw food.
 Clear and clean as you go. Clear away used equipment, spilt
food etc. as you work and clean work surfaces thoroughly.
 Use cleaning and disinfection products that are suitable
for the job, and follow the manufacturer’s instructions.
 Disinfection products should meet BS EN standards. Check
product labels for either of these codes: BS EN 1276 or BS
EN 13697.
 Do not let food waste build up.

Chilling

Chilling food properly helps to stop harmful bacteria from

growing. Some food needs to be kept chilled to keep it safe, for
example food with a ‘use by’ date, cooked dishes and other
ready-to-eat food such as prepared salads and desserts. It is
very important not to leave these types of food standing around
at room temperature. So, make sure you do the following things:

 Check chilled food on delivery to make sure it is cold

enough.
 Put food that needs to be kept chilled in the fridge
straight away.
 Cool cooked food as quickly as possible and then put it in
the fridge.
 Keep chilled food out of the fridge for the shortest time
possible during preparation.
 Check regularly that your fridge and display units are cold
enough.

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Cooking

Thorough cooking kills harmful bacteria in food. So it is

extremely important to make sure that food is cooked properly.
When cooking or reheating food, always check that it is steaming
hot all the way through.

It is especially important to make sure that you thoroughly cook

poultry, pork, rolled joints and products made from minced meat,
such as burgers and sausages. This is because there could be
bacteria in the middle of these types of products. They should
not be served pink or rare and should be steaming hot all the
way through. Whole cuts of beef and lamb, such as steaks,
cutlets and whole joints, can be served pink/rare as long as
they are fully sealed on the outside.

Personal Hygiene

Plays an important role in safe food handling practices.

Food handler’s equipment such as gloves, hairnets, and aprons
can only take cleanliness so far in the restaurant kitchen. In
fact, personal hygiene is very important in order to avoid
bringing in unnecessary germs, dirt, and debris. Texas food
handlers go through extensive online courses in order to fully
understand proper cleanliness in handling the food that will be
eaten by a restaurant consumer.

Personal hygiene practices in restaurants do not begin in

the restaurant kitchen but at home. For women, and even for men,
it is important to have well-groomed nails. Several restaurants
actually ban nail polish because the polish could chip off and
fall into the food. Nails should be generally clipped back in
order to avoid them breaking off in the kitchen and falling into
someone’s food.

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 Other personal hygiene practices include washing your
hands. As one of the most basic concepts in the process of
safely handling foods, its importance should not be minimized.
When you work towards your Texas food handler’s card you will
invariably learn the importance of simply washing your hands,
even when you use protective gloves. The act of washing your
hands with soap and water removes germs, bacteria, and dirt from
your skin, often dirt you would not even know was there. This
ultimately allows for a cleaner environment overall. Bacteria
that you washed off can no longer come into contact with the
surfaces and tools that could then be used on food.

Keeping hands, nails, clothes, and even hair clean will

help to keep a clean kitchen for professional food handlers.
Personal hygiene is the first step in maintaining a clean work
environment and keeping patrons safe from food borne illnesses
or food poisoning. Health departments and health codes
repeatedly look to personal hygiene practices in restaurants to
determine if the proper food handling procedures are being
followed.

Cleaning

Establishments and equipment should be kept in an appropriate

state of repair and condition to:

1. Facilitate all sanitation procedures;

2. Function as intended, particularly at critical steps;
3. Prevent contamination of food, e.g. from metal shards,
flaking plaster, debris and chemicals;

Cleaning should remove food residues and dirt that may be a

source of contamination. The necessary cleaning methods and
43
materials will depend on the nature of the food business.
Disinfection may be necessary after cleaning. Cleaning chemicals
should be handled and used carefully and in accordance with
manufacturers’ instructions and stored, where necessary,
separated from food, in clearly identified containers to avoid
the risk of contaminating food.

Cleaning can be carried out by the separate or the combined

use of physical methods, such as heat, scrubbing, turbulent
flow, vacuum cleaning or other methods that avoid the use of
water, and chemical methods using detergents, alkalis or acids.
Cleaning procedures will involve, where appropriate:

1. Removing gross debris from surfaces;

2. Applying a detergent solution to loosen soil and bacterial
film and hold them in solution or suspension;
3. Rinsing with water to remove loosened soil and residues of
detergent;
4. Dry cleaning or other appropriate methods for removing and
collecting residues and debris;
5. Where necessary, disinfection with subsequent rinsing
unless the manufacturers’ instructions indicate on
scientific basis that rinsing is not required;

Cleaning and disinfection programs should ensure that all

parts of the establishment are appropriately clean, and should
include the cleaning of cleaning equipment.

1. Cleaning and disinfection programs should be continually

and effectively monitored for their suitability and
effectiveness and, where necessary, documented. Where
written cleaning programs are used, they should specify:
2. areas, items of equipment and utensils to be cleaned;

44
 3. responsibility for particular tasks;
4. method and frequency of cleaning;
5. monitoring arrangements;

Where appropriate, programs should be drawn up in consultation

with relevant specialist expert advisors.

Sanitation systems should be monitored for effectiveness,

periodically verified by means such as audit pre-operational
inspections or, where appropriate, microbiological sampling of
environment and food contact surfaces, and regularly reviewed
and adapted to reflect changed circumstances.

All food contact surfaces should be adequately and

routinely cleaned and disinfected. Cleaning and disinfection
belong to the most important operations in today’s food
industries.

The cleaning and disinfection process can be divided into

clearly distinct operations. However, these are linked firmly
together in that the final result will not be acceptable unless
all processes are carried out correctly.

Cleaning Procedure

The various steps included in a complete cycle are outlined

below:

1. Remove food products, clear the area of bins, containers,

etc.,
2. Dismantle equipment to expose surfaces to be cleaned;

45
 3. Remove small equipment, parts and fittings to be cleaned
into a specified area;
4. Sensitive installations to protect them against water etc;
5. Clear the area, machines and equipment of food residues by
flushing with water (cold or hot) and by using brushes,
brooms, etc.,
6. Apply the cleaning agent and use mechanical energy (e.g.
pressure or brushes) as required;
7. Rinse thoroughly with water to completely remove the
cleaning agent after the appropriate contact time (residues
may completely inhibit the effect of disinfection);
8. Control of cleaning;
9. Disinfect with chemical disinfectants or heat;
10. Rinse the disinfection chemicals off with water after
the appropriate contact time. This final rinse is not
needed for some compounds e.g. H2O2 based formulations that
decompose rapidly;
11. After the final rinse, reassemble equipment and allow
to dry;
12. Control of cleaning and disinfection;
13. In some cases it would be good practice to re-
disinfect (e.g. with hot water or low levels of chlorine)
just before production starts;

Cleaning

In the preparatory phase, the processing area is cleared of

remaining products, spills, containers and other loose items.
Machines, conveyors, etc. are dismantled so that all locations
where microorganisms can accumulate become accessible for
cleaning and disinfection. Electrical installations and other

46
sensitive systems should be protected against water and the
chemicals used.

AVOID starting the cleaning operation by splashing water (using

the pressure hose) on floors and machinery before all food
products are removed.

Before use of the cleaning agent, a gross food debris removal

procedure should be carried out by brushing, scraping or similar
action. All surfaces should be further prepared for the use of
cleaning agents by a pre-rinse activity, preferably with cold
water so as not to coagulate the proteins. Hot water may be used
to remove fat or sugars in cases where protein is not present in
significant amounts. Completion of the preparatory work should
be checked and recorded, as with any other process to ensure the
quality of the complete cycle of cleaning and disinfection.
Cleaning is undertaken to remove all undesirable materials (food
residues, microorganisms, scales, grease, etc.) from the
surfaces of the plant and the process equipment, leaving
surfaces clean, as determined by sight and touch and with no
residues from cleaning agents. Microorganisms present will
either be incorporated in the various materials or attached to
the surfaces as biofilms. The latter will not be removed
completely by cleaning, but experience has shown that a majority
of the microorganisms will be removed. However, there will still
be some left to be inactivated during the disinfection. Bacteria
in biofilm can be up to 1,000 times more resistant to common
disinfectants compared to when in the Free State. The
effectiveness of a cleaning procedure in general depends upon:

1. the type and amounts of debris to be removed;

2. the chemical and physic-chemical properties of the cleaning
agent (such as acid or alkali strength, surface activity,

47
 etc.) at the concentration, temperature and exposure time
used;
3. the mechanical energy applied e.g. turbulence of cleaning
solutions in pipes, stirring effect, impact of water jet
“elbow-grease”, etc.;
4. the condition of the surface to be cleaned;

Some surfaces, e.g. corroded steel and aluminum galvanized

metal cannot be cleaned easily which means that disinfection
also becomes very inefficient. The same applies to other
surfaces, e.g. wood, rubber, etc. The preferred material is high
quality stainless steel. The types of residues to be removed in
food plants, will mainly be the following:

1. Organic matter, such as protein, fat and carbohydrate.

These are most effectively removed by strong alkaline
detergents (especially caustic soda, NaOH);
2. Inorganic matter, such as salts of calcium and other
metals. In beer stone, milk stone, etc. salts are encrusted
with protein residues. These are most effectively removed
by an acid cleaning agent;
3. Biofilms, formed by bacteria, molds, yeast and algae can be
removed by cleaning agents that are effective against
organic matter;

Most cleaning agents work faster and more effectively at

higher temperatures, so it can be profitable to clean at a high
temperature. Cleaning is often carried out at 60-80°C in areas
where it pays, energy-wise, to use such high temperatures. Water
is used as a solvent for all cleaning and sterilizing agents and
also for intermediate rinses and the final rinse of equipment.
The chemical and microbiological quality of the water is
important for the efficiency of the cleaning procedures as

48
already described in a previous section of this Chapter. In
principle, water used for cleaning must be potable. Hard water
contains a large amount of calcium and magnesium ions. When the
water is heated, any calcium and magnesium salts will
precipitate as insoluble salts. Also, some cleaning agents,
especially alkalis, can precipitate calcium and magnesium salts.
Apart from reducing the effectiveness of detergents hard water
leads to the formation of deposits or scales. Scales are not
only unsightly but objectionable for several reasons:

1. They harbor and protect microorganisms;

2. They reduce the rate of heat exchange on heat exchange
surfaces. This could lead to under-processing, under-
pasteurization or under-sterilization;
3. Presence of scales tends to increase corrosion;

The formation of scales can be reduced by addition of

chelating and sequestering agents, which bind calcium and
magnesium in insoluble complexes. However, it is advisable to
prevent precipitations by softening the water before it is used
for cleaning. Softening can be effectively achieved by ion
exchange, in which the calcium and magnesium ions are replaced
by sodium ions, the salts of which are soluble. A modern, and
more costly, method of softening water is by means of reverse
osmosis. To be effective, a suitable detergent or cleaning agent
must be applied. The ideal detergent would be characterized by
the following properties:

1. It possesses sufficient chemical power to dissolve the

material to be removed;
2. It has a surface tension low enough to penetrate into
cracks and crevices; it should be able to disperse the
loosened debris and hold it in suspension;

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 3. If used with hard water, it should possess water softening
and calcium salt dissolving properties to prevent
precipitation and build-up of scale on surfaces;
4. It rinses freely from the plant, leaving this clean and
free from residues, which could harm the products and
affect sterilization negatively;
5. It does not cause corrosion or other deterioration of the
plant. It is recommended always to check by consulting the
supplier of machines, etc.;
6. It is not hazardous for the operator;
7. It is compatible with the cleaning procedure being used,
whether manual or mechanical;
8. If solid, it should be easily soluble in water and its
concentration easily checked;
9. It complies with legal requirements concerning safety and
health as well as biodegradability;
10. It is reasonably economical to use;

A detergent with all these characteristics does not exist. So

one must, for each individual cleaning operation, select a
compromise by choosing a usable cleaning agent and water
treatment additives so that the combined detergent has the
properties that are most important for the procedure concerned.
All cleaning methods, including foams and soaks, require
sufficient contact time to fully loosen and suspend soils. A
moderately alkaline detergent, which is normally used in plants
processing high protein foods such as fish, will typically
require 10-15 minutes to fully loosen most processing soils.

Disinfection

Traditionally, the terms “disinfection” and “disinfectants”

are used to describe procedures and agents used in food

50
industries to ensure a microbiologically acceptable standard of
hygiene. The desirable plant disinfectant would be characterized
by the following properties:

1. It has sufficient anti-microbial effect to kill the

microorganisms present in the available time and should
have a sufficiently low surface tension to ensure good
penetration into pores and cracks;
2. It rinses freely from the plant, leaving this clean and
free from residues which could harm the products;
3. It does not lead to development of resistant strains or any
surviving microorganisms;
4. It does not cause corrosion or other deterioration of the
plant. It is recommended that the suppliers of machines
etc. be asked before chlorine or other aggressive
disinfectant are used;
5. It is not hazardous to the operator;
6. It is compatible with the disinfection procedure being
used, whether manual or mechanical;
7. If solid, it should be easily soluble in water;
8. Its concentration is easily checked;
9. It is stable for extended storage periods;
10. It complies with legal requirements concerning safety
and health as well as biodegradability;
11. It is reasonably economical in use;
12. It will often be necessary to combine disinfectants
with additives in order to obtain the required properties;
the following are among the most widely used disinfectants
and shall be described briefly;

51
Monitoring of cleaning and disinfection

Effective cleaning is a prerequisite for an efficient

disinfection. This indicates the importance of controlling
cleaning. The most important control is sensory (visual, touch,
smell) inspection to demonstrate:

1. That all cleaned surfaces are visibly clean;

2. That all surfaces, by feeling, are free from food residues,
scales and other materials and, by smelling, free from
undesirable odors;

Further, the concentrations and pH-values of cleaning agents,

the temperatures, if hot cleaning is used, and the contact times
should be monitored and registered. pH measurements, or similar
testing, of rinse water may be used to ensure that the cleaning
agent is removed so that it will not interfere with the
disinfectant. These controls are all rapid and allow immediate
decisions to be made as to whether cleaning should be repeated,
partly or completely, or to proceed to the process of
disinfection. All actions shall be registered as part of the
Quality System. At this stage, microbiological control serves no
real purpose. Firstly biofilms and surviving microorganisms are
likely to be present and secondly, reliable rapid methods are
not available. Control of disinfection will be the final control
of the complete cycle of cleaning and disinfection. Provided
cleaning has been controlled effectively as described above,
control of disinfection will be effective when the following
conditions are met:

1. Control of time and temperature conditions for disinfection

by heat;
2. Control of active concentrations of chemical disinfectant;

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 3. Control that all surfaces to be disinfected are covered by
the disinfectant;
4. Control of contact time;

The above controls should be documented and the observations

reported and registered as required in standard Quality Systems.
Microbiological testing and control serve the purpose of
verification. Various techniques are available, but none are
ideal and they are not “real time” methods. “Real time” methods
are highly desirable for control of cleaning and disinfection.
Methods (bacterial counting) that require overnight incubation
are too late to correct critical situations. However, if
conducted at regular intervals and planned to cover all critical
points, useful information from microbiological control can be
accumulated with time. Various methods are used and shall be
mentioned briefly.

1. Swab testing; this is the most usual technique and one of

the better ones; by use of a sterile swab of cotton-wool,
part of the disinfected surface is swabbed, and the
bacteria now on the swab are transferred to a diluents for
determination of colony forming units in standard agar
substrates; swabs are especially useful in places where
other control methods can only be used with difficulty i.e.
pockets, valves, etc.;
2. Final rinse water; membrane filtration of rinse water and
incubation on agar substrate is a very sensitive technique
for control of CIP systems as well as other cleaning and
disinfection systems, where a rinse can be applied;
3. Direct surface plates; in these methods petri dishes or
contact slides with selective or general purpose agar media
are applied to the surface to be examined, followed by

53
 incubation and counting of colony forming units; these
techniques can only be applied to flat surfaces, which is a
limiting factor;
4. Bioluminometric assay of ATP; this is almost a “real time”
method giving the answer within minutes. It is very
sensitive and can be combined with swabbing for collection
of microorganisms from surfaces; the method is rather non-
specific, and it may not be able to distinguish between
microorganisms and food residues; however, if applied under
defined conditions it may prove useful and superior to the
conventional methods because it provides the answer in

Waste Management

Suitable provision must be made for removal and storage of

waste. Waste must not be allowed to accumulate in food
handling, food storage, and other working areas and the
adjoining environment except so far as in unavoidable for the
proper function.

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 CHAPTER VIII
Planning and Equipping Restaurant

A. Planning the Restaurant

Opening a restaurant takes careful planning, beginning with

finding the perfect location and deciding on a concept and menu.
Researching the competition and finding financing are also
essential elements of opening a restaurant. Deciding to rent,
build or buy are also important decisions that must be made
before you open a restaurant

The kitchen is the heart of your restaurant, where your

menu comes to life. It’s where food is prepared, cooked and
plated. It is also where the dirty dishes are brought, where
food is stored and where all your utensils, dishes and cooking
equipment are housed. Unlike home, where it’s just you and your
family, a restaurant kitchen has dozens of people in and out of
it on any given shift, so it’s important to be organized. A
place for everything and everything in its place. This not only
saves time during the busy rushes, it helps keep the kitchen.

The proponents of Health Corner have considered the following

principles:

1. Select the Main Concept

A clear and concise concept helps potential customers
understand what you are about quickly and makes marketing
and promotion easier.
2. Choose a Location
Select a location that is close to your main targeted
customers, and make sure that they can easily find parking
nearby.

55
3. Hire a Chef
The chef you select will have an important role in
developing the menu and in the day to day operation of the
restaurant. Pick a chef who is experienced and organized,
and with whom you get along.
4. Develop the Menu

The next step is to put together the menu in

conjunction with your chef. The menu should flow from the
restaurant’s main concept. It should be simple.

5. Develop a Supplier Base

Once you have the menu pegged, find suppliers for your
main ingredients.

6. Prepare a Budget and Cash Flow Projection

Restaurants operate on a very thin margin and

successful restaurant owners know what their cash flow position
is at all times. Project out your sales and expenses for the
next 12 months, and ensure that the business follows the plan
each month.

7. Advertise

You can advertise your establishment in many ways,

but a grand opening is an opportunity to get potential customers
to come and sample the menu, and for the local media to cover
the event.

8. Staff the Restaurant

You may developed your restaurant’s concept, but your

serving staff caries the message. Spend time and money to seek
out engaged, articulate wait staff members who will dazzle your
customers.

56
9. Furnish the Restaurant

Furnishing and equipping the kitchen and front of house

thoughtfully enhances both the functionally and theme of the
restaurant. The placement of tables and chairs will ensure that
you can seat the largest number of people comfortably.

B.EQUIPPING the KITCHEN

List and inventory of kitchen supplies and equipment

are mentioned in Chapter III

C. Kitchen Lay-Out

(See Appendices for the kitchen lay-out)

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 CHAPTER IX
Restaurant Operation and Control

A. Front-of-the-House Operations

The term “Front of the House” refers to any

location within the restaurant that allows customers. This
includes the dining room, bar, even the rest rooms. Management
of the front of the house includes customer service, training
staff, designing the dining room and bar, and planning
restaurant promotions. Understanding how the front of the house
operates is important to overall success of any restaurant.

Stocking the Front of the House

The front of the house is only area that customers see and
it should reflect the theme or concept of your restaurant. It
should be designed efficiently, balancing ambience with seating
capacity. Certain pieces of front the house equipment are also
important in running an efficient restaurant. A well-stocked
wait station will have everything that servers and hosts need to
provide excellent service, while seating you choose, with help
maximize the layout of the dining room, along with the dining
room, rest rooms and waiting areas are other areas to think
about when planning a restaurant dining room.

58
Operation Process

Offering the Menu/

Placing the
Taking order/
Guest/Customer order to the
Settlement of the Kitchen
Bill

Repeat Guest

Bidding goodbye Bussing Out/Clearing Serving the

to customer the table Order

A. Back-of-the House Operation

The back-of-the house is usually called the heat of the

operation and the center of production. Task being performed
include the following:

1. Food Production
2. Food quality and cost control
3. Dishwashing
4. Labour cost control
5. Back-of-the house cleaning
6. Pest control

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 CHAPTER X

Restaurant Management

Management principles are guidelines for the decisions and

actions of managers. They were derived through observation and
analysis of events faced in actual practice.

The principles of management are the essential underlying

factors that form the foundation of successful management.
According to (Henri Fayol (1841-1925) in his book General and
Industrial Management (1916), there are fourteen ‘principles of
management’. These can be used to initiate and aid the processes
of change, organization, decision making, skill management and
the overall view of the management function.

The proponents have adopted the following principles:

Division of Work

The specialization of workforce according to the skills of

a person, creating specific personal and professional
development within the labor force and therefore increasing
productivity; leads to specialization which increases the
efficiency of labor. By separating a small part of work, the
workers speed and accuracy in its performance increase. This
principle is applicable to both technical as well as managerial
work.

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Authority and Responsibility

Authority means the rights of a superior to give enhance

order to his subordinates; responsibility means obligation for
performance. This principle suggests that there must be parity
between authority and responsibility. They are co-existent and
to go together, and are two sides of the same coin.

Discipline

Discipline refers to obedience, proper conduct in relation

to others, respect of authority etc. It is essential for the
smooth functioning of all organizations.

Unity of Command

This principle state that every subordinate should receive

orders and be accountable to one and only one superior. If an
employee receives orders from more than one superior, it is
likely to create confusion and conflict. Unity of Command also
makes it easier to fix responsibility for mistakes.

Unity of Direction

All those working in the same line of activity must

understand and pursue the same objectives. All related
activities should be put under one group, there should be one
plan of action for them, and they should under the control of
one manager. It seeks to ensure unity of action, focusing of
efforts and coordination of strength.

Subordination of Individual Interest

The management must put aside personal considerations

and put company objectives first. Therefore the interest of

61
goals of the organization must prevail over the personal
interest of individuals.

Remuneration

Workers must be paid sufficiently as this is a chief

motivation of employees and therefore greatly influences
productivity. The quantum and methods of remuneration payable
should be fair, reasonable and rewarding of effort.

Initiative

Using the initiative of employees can add strength and new

ideas to an organization.

Stability of Tenure of Personnel

The period of service should not be too short and employees

should not be removed from positions frequently. An employee
cannot render useful service if he is removed before he becomes
accustomed to the work assigned to him.

Esprit de Corps

This refers to the need of managers to ensure and develop

morale in the workplace; individually and communally. Team
spirit helps develop an atmosphere of mutual trust and
understanding.

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A. Recruiting and Staffing

Rules of Recruitment:

1. There is a detailed set of job specification that

describes the desired qualifications for each position.

2. Selection is based on the job specifications and not

simply left to the discretion of the manager.

3. All employees are required to have the necessary pre-

employment such as:

 Barangay and Police Clearance

 Health Card/Certificate
 SSS,Phil Health and TIN number etc.,

Restaurant Staffing

Hiring a staff requires specific knowledge of each job

within the restaurant. From front of the house wait staff, to
back of the house kitchen staff, each person needs to be the
best at their job, in order for a restaurant to run smoothly.

Competencies of a Restaurant Staff

1. Relational

They should be able to deal with customer tactfully and

sincerely.

2. Service-Oriented

Employees are genuinely enjoying serving the guest.

63
 3. Action-Oriented

Employees should be able to anticipate the customer needs

and are able to react to certain circumstances as a problem
arises.

B. Job Description and Specification

1. Job Description: Restaurant Manager

Basic Function: Plans, organizes, directs and controls the

delivery of service in all outlets, guestrooms and banquet and
sees to it that policies and standards are complied with.

2. Job Description: Cook

Basic Function: He is in charge in preparing and cooking

food for the customer.

3. Job Description: Cashier

Basic Duty: Issue Receipts to the customer, compute and

record totals of transactions.

4. Job Description: Waiter

Basic function: Takes and serves order according to

prescribed standards of service.

5. Job Description: Busboy

Basic function: Assist waiter in mis-en –place preparation.

6. Job Description: Dishwasher/Steward

Basic Function: Responsible for washing/cleaning,

sanitizing and proper storage of utensils, glass wares, etc.

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C. Employee Training and Development

Training programs should be routinely reviewed and updated

where necessary systems should be in place to ensure that food
handlers remain aware of all procedures necessary to maintain
the safety and suitability of food.

D. General Policies and Rules and Regulations

1. Business Policies
 Staff should be on time according to their schedule
specified by owners.
 Staff should log-in/out at the log book to monitor their
attendance.
 Observe cleanliness and proper hygiene while working
 Typically, full time employees will be scheduled to work
eight (8) hours a day, seven (7) days a week.
 Meal period are usually of one-hour duration and 30 minutes
break time is unpaid.
 Staff must ask permission to the head personnel if they
need to leave the cafe for any reasons.
 Personal items should be left in designated areas.

2. Business Rules and Regulations

 The business has established rules and regulations that all
staff regardless of the status of employment and nature of
work they perform, are expected to observe at all times.
 Our rules and regulations are meant to be observing for the
smooth flow of the business. When we break the rule, the

65
 business is affected and we cause our staff and business
certain inconvenience.

3. Disciplinary action
 Verbal warning-a warning given by one of the owners.
 Written warning- a written notice given to staff for having
committed break of a rule, with a warning to repetition of
the offense is dealt with higher offense. Written warning
places staff under observation from date receiving of such
warning.
 Termination-Separation from the service of a staff for a
cause of serious violation but due process or any further
contravention of any rules or regulations.

ORGANIZATIONAL CHART OF DIET CORNER

Restaurant Manager

Waiter/Busboy Cashier Cook Dishwasher

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