Feasibility Study

I. Title of Business : Sprinkles Café and Snack Bar

This establishment shall cater the growing demand for variety of snack items among
Leyteño teens and adults.
Through Star Frappe and Cheapest Food Cart Franchise, it will offer different coffee mix
together with French Fries, Waffles and Street Foods.
II. Business Location: Leyte Poblacion, Province of Leyte.
The proposal site is along the highway, left side from Barangay Lemon to Naval, Biliran. This area
is between the two Secondary Schools, the Leyte Agro-Industrial School (LAIS) and Leyte National
High School (LNHS) both having more than one thousand enrollment. It is also near to the public
market, bus terminal, OCCCI, stores, Palawan, Mlhuiller and other business enterprises.
III. Business Proponent: Leonila Z. Astilla and Gellian Eve Z. Ong. Both are residents of Leyte Poblacion, government
employee of regular permanent status. The former is a Master Teacher II in LAIS, the latter is a Clerk IV of LGU.
IV. Rationale:
The previous administration has put the town and its constituents to greater awareness of
addressing the need of its populace through entrepreneurship.
K to 12 opens an opportunity for enterprising individuals to operate Income Generating Projects.
It has increased the enrollment of the two secondary schools in the poblacion in addition to the
Leyte Central School, business operators, personnel of the LGU, BLGU, BFP, PNP, and other
government and non-government agencies.
Leyteños regardless of age are fond of snacks. Though children and youths in school don’t have
income yet, parents are providing daily allowances for their children.
At present French Fries, Waffle and various coffee mix products are not yet sold in the place, thus
the proponents have finally decided to offer such.
With the financial assistance of the DBP and proper management of this business, it projects
future expansion in the municipalities thus giving employment opportunities for the needy.
Generally its existence benefits, the family, the people of the locality and the municipality.
V. Objectives:
General Objective:
To offer a wider variety of snack items in the market.
Specific Objective:
Generate a monthly Net income of ₱ 18,398.67

VI. Market Aspects of the Project

Leyte Poblacion Population

Agencies Enrollment/ no. of No. of households

personnel
*schools:
LAIS 1,025
LNHS 1,000 2,500
Leyte Central School 1,200
LGU & BLGU 150
Other agencies 40
Teachers 125
Total 3,545 2,500

The projected target is 2.5 percent (2.5%) of the total population daily except Saturdays and Sundays. These excludes
conferences, seminars and trainings wherein demand is expected to rise.

VII. Basic Assumptions

 A. Fixed Asset

a.1 House and Lot ₱ 900, 000.00

a.2 Renovation/ improvement, fixtures and furnitures 255, 000.00
Subtotal: ₱ 1,155,000.000

B. Franchise
b.1 Star Frappe ₱ 49,000.00

Various coffee mix, with 2 blenders, coffee maker and ice crusher, high end cart, trade name and
logo, shakes, frappe dispenser, ice box, 2 sets apron, hairnet plus products worth ₱ 10,000.00

b.2 Cheapest Food Cart 9 (3 n 1) ₱ 31,000.00

Ice scramble, French Fries and Waffle with menu board, Mini high end 3 n 1 cart, 3 sets equipment, 3
sets utensils, 3 sets crew uniform, plus products worth ₱ 3,000.00

Subtotal: ₱ 80,000.00
C. Equipment

c.1 Chest Freezer 1 unit ₱ 30,000.00

Subtotal: ₱ 30,000.00
Grand Total ₱ 1,265.000.00

D. Personnel

1 sales lady/server ₱ 5,000.00 / mo.

1 helper 2,000.00 / mo.

E. Tax / BIR 3 % of the net income

F. Interest on capital 10 % per annum

G. Loan term long term, 10 years

H. ROI 46.57 %

VIII. Budgetary Requirement

A. Fixed Asset
a.1 House and Lot ₱ 900.000.00
a.2 Renovation / improvement & furniture 255,000.00
Subtotal: ₱ 1,155,000.00
B. Costs of franchise
b.1 star frappe ₱ 49,000.00
Various coffee mix with 2 blenders, coffee maker, ice crusher, high end cart, trade name and logo,
shaker, frappé dispenser, ice box, 2 sets apron, visor hair net plus products worth ₱ 10,000.00
b.2 Cheapest Food Cart 9 (3 n 1) ₱ 31,000.00

Ice scramble, French Fries and Waffle with menu board, Mini high end 3 n 1 cart, 3 sets equipment, 3
sets utensils, 3 sets crew uniform, plus products worth ₱ 3,000.00

Subtotal: ₱ 80,000.00
C. Equipment

c.1 Chest Freezer 1 unit ₱ 30,000.00

Subtotal: ₱ 30,000.00
Grand Total ₱ 1,265.000.00

IX. Operating Expenses

Coffee mix ₱ 10,000.00

Waffle, French Fries & Ice Scramble ₱ 10,000.00
Street Foods ₱ 1,000.00
Soft Drinks ₱ 1,000.00
Personnel
 1 lady server ₱ 5,000.00
1 helper 2,000.00
Electric & Water Bill 5,000.00
Miscellaneous Expense 1,000.00
Total ₱ 36,000.00

X. Daily Project Sales

A. Ice Scramble (vanilla, classic, black frost flavor)
30 servings at ₱ 15.00 / serving . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ₱ 450.00

B. French Fries
b.1 medium 20 servings at ₱ 25.00 / serving . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500.00
b.2 large 10 servings at ₱ 30.00 / serving . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300. 00
b.3 with flavor (cheese or barbecue)
10 serving at ₱ 35.00.00 / serving . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 350.00

C. Waffle
c.1 Plain 30 servings at ₱ 15.00 / serving 450.00
c.2 choco or cheese 20 servings at ₱ 18.00 / serving 360.00

D. Street Foods
d.1 Fish Ball, 30 servings at ₱ 15.00 / serving 450.00

E. Soft Drinks 1 case 192.00

Total ₱ 3, 052.00

XI. Monthly Income

- For 20 school days (₱ 30,052.00) ₱ 61, 040.00
- For 10 non-school days (₱ 1,526.00
50% of daily income during school days) x 10 15,260.00
Total ₱ 76,300.00

XII. Financial Statement

Gross Income / Total Sale ₱ 76,300.00
Total Expenses ₱ 36.000.00
Net Income ₱ 18,078.54
Less 3% BIR (of the net income) ₱ 559.13
Monthly Amortization
₱ 10,829.00 interest +
10,833.33 ₱ 21,662.33